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25600.0 | 2018-03-22 00:00:00 UTC | Health Care Sector Update for 03/22/2018: ABBV,SNGX,RETA,AVDL | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-03222018-abbvsngxretaavdl-2018-03-22 | nan | nan | Top Health Care Stocks
JNJ -2.87%
PFE -1.92%
ABT -2.21%
MRK -0.95%
AMGN -2.79%
Health care stocks fell into another deep hole today, including a more than 2.2% decline for the NYSE Health Care Index in recent trade. Also today, shares of health care companies in the S&P 500 were down over 2.8% as a group while the Nasdaq Biotechnology index was losing 2.1% this afternoon.
Among health care stocks moving on news:
- AbbVie ( ABBV ) slumped Thursday, falling 15% on the way to a $95.52 a share session low, after the pharmaceuticals company said it won't seek accelerated approval for its Rova-T drug candidate as a potential treatment for patients with third-line relapsed or refractory small cell lung cancer following consultations with the U.S. Food and Drug Administration. Rova-T produced a magnitude of effects across multiple parameters during a single-arm Phase II trial, the company said, including an investigator-assessed 29% overall response rate while an independent review committee found an objective response rate of 16% with an overall survival median of 5.6 months. "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," chief scientific officer Mike Severino said, later adding AbbVie remains "committed to developing Rova-T for the treatment of patients with small cell lung cancer."
Results showed an
In other sector news:
+ Soligenix ( SNGX ) rallied Thursday, jumping out to an 87% gain to a session high of $3.70 a share soon after heading out of the gate, after European regulators designated the biopharmaceutical company's recombinant modified ricin toxin A-chain subunit as an orphan drug for the prevention of ricin poisoning. Subunit is the active ingredient in RiVax, which previously received orphan drug designation from the U.S. Food and Drug Administration.
+ Reata Pharma ( RETA ) was back on positive ground, recovering from a more than 1% late-morning decline, despite the early-stage biopharmaceutical company reported positive top-line data from Phase II testing of its bardoxolone methyl drug candidate to treat pulmonary hypertension in patients with interstitial lung disease. Patients in the active arm showed significant improvement after 16 weeks in the distance they could walk in six minutes from their baseline levels. The trial also did not identify any safety signals.
+ Avadel Pharmaceuticals ( AVDL ) reached a session high of $7.30 a share Thursday, rising more than 3%, after saying it promoted Gregory Divis to the newly created role of chief operating officer. Divis has been chief commercial officer at Avadel since joining the drugmaker in January 2017 and previously was CEO at Lumara Health, a pharmaceutical company focused on women's health, between 2010 to 2014.
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 ) slumped Thursday, falling 15% on the way to a $95.52 a share session low, after the pharmaceuticals company said it won't seek accelerated approval for its Rova-T drug candidate as a potential treatment for patients with third-line relapsed or refractory small cell lung cancer following consultations with the U.S. Food and Drug Administration. "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," chief scientific officer Mike Severino said, later adding AbbVie remains "committed to developing Rova-T for the treatment of patients with small cell lung cancer." Results showed an In other sector news: + Soligenix ( SNGX ) rallied Thursday, jumping out to an 87% gain to a session high of $3.70 a share soon after heading out of the gate, after European regulators designated the biopharmaceutical company's recombinant modified ricin toxin A-chain subunit as an orphan drug for the prevention of ricin poisoning. | "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," chief scientific officer Mike Severino said, later adding AbbVie remains "committed to developing Rova-T for the treatment of patients with small cell lung cancer." Among health care stocks moving on news: - AbbVie ( ABBV ) slumped Thursday, falling 15% on the way to a $95.52 a share session low, after the pharmaceuticals company said it won't seek accelerated approval for its Rova-T drug candidate as a potential treatment for patients with third-line relapsed or refractory small cell lung cancer following consultations with the U.S. Food and Drug Administration. Also today, shares of health care companies in the S&P 500 were down over 2.8% as a group while the Nasdaq Biotechnology index was losing 2.1% this afternoon. | Among health care stocks moving on news: - AbbVie ( ABBV ) slumped Thursday, falling 15% on the way to a $95.52 a share session low, after the pharmaceuticals company said it won't seek accelerated approval for its Rova-T drug candidate as a potential treatment for patients with third-line relapsed or refractory small cell lung cancer following consultations with the U.S. Food and Drug Administration. "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," chief scientific officer Mike Severino said, later adding AbbVie remains "committed to developing Rova-T for the treatment of patients with small cell lung cancer." Results showed an In other sector news: + Soligenix ( SNGX ) rallied Thursday, jumping out to an 87% gain to a session high of $3.70 a share soon after heading out of the gate, after European regulators designated the biopharmaceutical company's recombinant modified ricin toxin A-chain subunit as an orphan drug for the prevention of ricin poisoning. | Among health care stocks moving on news: - AbbVie ( ABBV ) slumped Thursday, falling 15% on the way to a $95.52 a share session low, after the pharmaceuticals company said it won't seek accelerated approval for its Rova-T drug candidate as a potential treatment for patients with third-line relapsed or refractory small cell lung cancer following consultations with the U.S. Food and Drug Administration. "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," chief scientific officer Mike Severino said, later adding AbbVie remains "committed to developing Rova-T for the treatment of patients with small cell lung cancer." Top Health Care Stocks |
25601.0 | 2018-03-22 00:00:00 UTC | AbbVie (ABBV) Shares Cross 4% Yield Mark | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-shares-cross-4-yield-mark-2018-03-22 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $3.84), with the stock changing hands as low as $95.52 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF ( SPY ) back on 12/31/1999 - you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
ABBV makes up 6.95% of the First Trust Nasdaq Pharmaceuticals ETF (Symbol: FTXH)
ABBV has been growing its dividend for more than 20 years consecutively. For more dividend growth stocks view our Dividend Aristocrats List on Dividend Channel.
Click here to find out which 9 other dividend stocks just recently went on sale »
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. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $3.84), with the stock changing hands as low as $95.52 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $3.84), with the stock changing hands as low as $95.52 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $3.84), with the stock changing hands as low as $95.52 on the day. AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. | AbbVie Inc (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 4% mark based on its quarterly dividend (annualized to $3.84), with the stock changing hands as low as $95.52 on the day. In the case of AbbVie Inc, looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield. |
25602.0 | 2018-03-22 00:00:00 UTC | What Happened in the Stock Market Today | ABBV | https://www.nasdaq.com/articles/what-happened-stock-market-today-2018-03-22 | nan | nan | Worries over trade had stock investors on the run Thursday. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) closed near their lows for the day with large losses.
Today's stock market
Data source: Yahoo! Finance.
The sole bright spot in the market was the utility sector, as bonds rallied in a flight to safety. The Utilities Select SPDR ETF (NYSEMKT: XLU) rose 0.4%. The drop in long-term interest rates pummeled the financial sector, with the SPDR S&P Bank ETF (NYSEMKT: KBE) slumping 3.7%.
As for individual stocks, Guess? (NYSE: GES) reported strong holiday sales and AbbVie (NYSE: ABBV) announced disappointing results from a trial of an important pipeline drug.
Guess? trounces sales and profit forecasts
Premium jeans retailer Guess? reported sales in its holiday quarter that blew away analyst expectations and the stock soared 28.3%. Sales increased 17.5% to $792 million, while analysts were expecting $756 million. Adjusted earnings per share rose 44% to $0.62, compared with the consensus forecast of $0.54.
The company continued to see weakness in its sales in the Americas, but strong growth in Europe and Asia more than compensated. Sales in Americas retail fell 7.2% in constant currency with a decline in comparable sales of 5%, while wholesale grew 0.9%. But Europe sales increased 24.1% in constant currency, and Asian sales boomed 33.1%. Gross margin improved 210 basis points from the period last year to 37.2%. Looking forward, the company forecast EPS for the current year to be $0.86 to $0.98, significantly above the $0.85 analysts have been expecting.
"I am pleased to report that the overall results of the fourth quarter finished above the high-end of our expectations, with higher sales, higher adjusted operating profit and higher adjusted earnings per share, said CEO Victor Herrero in the press release.
Investors applauded those results and the outlook for the year.
AbbVie sinks on weak cancer trial results
Shares of pharma giant AbbVie plummeted 12.8% after the company announced disappointing results from a cancer drug trial and stated that it will not seek accelerated approval of the drug, meaning that AbbVie will likely not see revenue from it in 2018, as previously expected.
The trial was a phase 2 test of rovalpituzumab tesirine, or Rova-T, in patients with relapsed/refractory small cell lung cancer that have already had two prior lines of treatment and whose tumors express high levels of a protein called DLL3. Twenty-nine percent of the patients in the study experienced tumor shrinkage, with an objective response rate -- meaning the proportion of patients with a confirmed response at least four weeks after the initial determination -- of only 16%. The median overall survival was 5.6 months. The numbers were weak enough for AbbVie to abandon plans for accelerated approval.
AbbVie has made a big bet on the platform that produced this drug, which targets cancer stem cells, a small subset of cancer cells that fuel the growth and spread of tumors. The drug came to AbbVie following its pricey $9.8 billion 2016 purchase of Stemcentryx, and the company has had high expectations for Rova-T despite some skepticism by observers and a low response rate in a phase 1 trial. AbbVie has said it thinks Rova-T could have the potential for $5 billion in peak revenue, and could be used to fight a wide variety of cancers, including metastatic melanoma and glioblastoma multiforme, as well as some prostate, pancreatic and colorectal cancers. Rova-T is in two other phase 3 studies for lung cancer, so this trial is not the death knell for the drug, but the setback is significant, and investors reacted accordingly.
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Jim Crumly owns shares of AbbVie. The Motley Fool is short shares of Guess. The Motley Fool recommends Guess. 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. | The drug came to AbbVie following its pricey $9.8 billion 2016 purchase of Stemcentryx, and the company has had high expectations for Rova-T despite some skepticism by observers and a low response rate in a phase 1 trial. (NYSE: GES) reported strong holiday sales and AbbVie (NYSE: ABBV) announced disappointing results from a trial of an important pipeline drug. AbbVie sinks on weak cancer trial results Shares of pharma giant AbbVie plummeted 12.8% after the company announced disappointing results from a cancer drug trial and stated that it will not seek accelerated approval of the drug, meaning that AbbVie will likely not see revenue from it in 2018, as previously expected. | (NYSE: GES) reported strong holiday sales and AbbVie (NYSE: ABBV) announced disappointing results from a trial of an important pipeline drug. AbbVie sinks on weak cancer trial results Shares of pharma giant AbbVie plummeted 12.8% after the company announced disappointing results from a cancer drug trial and stated that it will not seek accelerated approval of the drug, meaning that AbbVie will likely not see revenue from it in 2018, as previously expected. The numbers were weak enough for AbbVie to abandon plans for accelerated approval. | AbbVie sinks on weak cancer trial results Shares of pharma giant AbbVie plummeted 12.8% after the company announced disappointing results from a cancer drug trial and stated that it will not seek accelerated approval of the drug, meaning that AbbVie will likely not see revenue from it in 2018, as previously expected. (NYSE: GES) reported strong holiday sales and AbbVie (NYSE: ABBV) announced disappointing results from a trial of an important pipeline drug. The numbers were weak enough for AbbVie to abandon plans for accelerated approval. | AbbVie sinks on weak cancer trial results Shares of pharma giant AbbVie plummeted 12.8% after the company announced disappointing results from a cancer drug trial and stated that it will not seek accelerated approval of the drug, meaning that AbbVie will likely not see revenue from it in 2018, as previously expected. (NYSE: GES) reported strong holiday sales and AbbVie (NYSE: ABBV) announced disappointing results from a trial of an important pipeline drug. The numbers were weak enough for AbbVie to abandon plans for accelerated approval. |
25603.0 | 2018-03-21 00:00:00 UTC | iShares Core S&P Total U.S. Stock Market ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-core-sp-total-us-stock-market-etf-experiences-big-inflow-2018-03-21 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $81.1 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 212,650,000 to 213,950,000). Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.4%, Oracle Corp (Symbol: ORCL) is up about 0.6%, and Texas Instruments Inc. (Symbol: TXN) is up by about 0.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $52.93 per share, with $65.40 as the 52 week high point - that compares with a last trade of $62.40. 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 had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.4%, Oracle Corp (Symbol: ORCL) is up about 0.6%, and Texas Instruments Inc. (Symbol: TXN) is up by about 0.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $52.93 per share, with $65.40 as the 52 week high point - that compares with a last trade of $62.40. 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 ITOT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.4%, Oracle Corp (Symbol: ORCL) is up about 0.6%, and Texas Instruments Inc. (Symbol: TXN) is up by about 0.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $52.93 per share, with $65.40 as the 52 week high point - that compares with a last trade of $62.40. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.4%, Oracle Corp (Symbol: ORCL) is up about 0.6%, and Texas Instruments Inc. (Symbol: TXN) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $81.1 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 212,650,000 to 213,950,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $52.93 per share, with $65.40 as the 52 week high point - that compares with a last trade of $62.40. | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.4%, Oracle Corp (Symbol: ORCL) is up about 0.6%, and Texas Instruments Inc. (Symbol: TXN) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $81.1 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 212,650,000 to 213,950,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $52.93 per share, with $65.40 as the 52 week high point - that compares with a last trade of $62.40. |
25604.0 | 2018-03-20 00:00:00 UTC | 3 Healthcare Stocks Hedge Funds Like the Most | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-hedge-funds-most-2018-03-20 | nan | nan | Healthcare represents nearly one-fifth the U.S. economy. And demand for healthcare products and services is growing. You might think that there would be plenty of healthcare stocks are popular with hedge funds.
Personal finance website WalletHub ranked the top 25 most popular stocks owned by hedge funds in the fourth quarter of 2017 based on SEC filings. Interestingly, only three were healthcare stocks -- UnitedHealth Group (NYSE: UNH) , Johnson & Johnson (NYSE: JNJ) , and AbbVie (NYSE: ABBV) . Here's what makes these three stocks so well liked.
UnitedHealth Group
UnitedHealth Group was the most popular healthcare stock among hedge funds, ranking No. 10 on the WalletHub list. The company ranks higher on a couple of other lists, though: UnitedHealth Group is the largest health insurer in the U.S., and the company operates the country's third-largest pharmacy benefits manager (PBM).
The stock performed quite well in 2017, with UnitedHealth Group's 38% gain handily beating the market. All of the company's business segments posted solid revenue growth last year , especially its OptumHealth unit, which provides care delivery, care management, wellness and consumer engagement, and health financial services.
UnitedHealth Group's future looks good as well. U.S. tax reform puts the company in great shape to increase revenue and earnings in 2018. With the likelihood of a full repeal of Obamacare unlikely after failed attempts last year, the company's Medicaid business seems secure. UnitedHealth Group's continued expansion into areas outside of health insurance and PBM services also should create new growth opportunities.
Johnson & Johnson
Johnson & Johnson came in No. 16 on the list of most popular stocks among hedge funds. J&J is the largest healthcare company in the world, with a market cap of close to $350 billion. The company operates through three business segments -- consumer healthcare, medical devices, and pharmaceuticals.
Although Johnson & Johnson stock's performance wasn't as impressive as UnitedHealth Group's was in the past year, the healthcare giant still achieved a nice 21% gain in 2017. A primary key to J&J's success was making acquisitions. The company bought Abbott Labs ' medical optics business and Swiss drugmaker Actelion Pharmaceuticals last year, both of which contributed to increased revenue.
One thing that hedge funds and ordinary investors alike love about Johnson & Johnson is its huge cash flow. The healthcare giant practically mints money , generating free cash flow of nearly $17.8 billion over the last 12 months. J&J uses its cash flow to reward shareholders through dividends and share buybacks, as well as invest internally and externally to fuel more growth.
AbbVie
AbbVie took the No. 21 spot among the most popular stocks owned by hedge funds. However, the big pharma was the only healthcare stock on WalletHub's list that hedge funds actually increased their stakes in during the fourth quarter.
Buying more shares in AbbVie was a smart thing to do. The stock soared 54% in 2017 and is up 16% so far this year. One big factor driving AbbVie stock higher is that its top-selling drug Humira appears to be safe from biosimilar competition in the U.S., thanks to a deal made with Amgen last year.
But while AbbVie still relies heavily on Humira, the company has several other up-and-coming products. Sales for cancer drug Imbruvica and hepatitis C drug Mayvret are rising quickly. With its strong current products and a deep pipeline, AbbVie should be able to grow earnings by 17% on average annually over the next few years.
Best pick
I like all three of healthcare stocks overall. However, I think the best pick right now is AbbVie.
If you're focused on growth, AbbVie claims the best growth prospects of the healthcare stocks ranked in the top 25 most popular stocks for hedge funds. If you like solid dividends, AbbVie takes the top honor in that category as well, with a dividend yield well above J&J's and UnitedHealth Group's. Value-oriented investors should also like AbbVie's valuation metrics that are more attractive than the other two healthcare stocks.
AbbVie CFO Bill Chase recently stated that the company has "a growth story that will be the envy of the industry." I agree. And I would add that AbbVie also has a dividend story and a valuation story that should be the envy of not only the pharmaceutical industry, but also the healthcare sector as a whole. There's a good reason why hedge funds like AbbVie -- and why other investors should like it also.
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Keith Speights owns shares of AbbVie. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One big factor driving AbbVie stock higher is that its top-selling drug Humira appears to be safe from biosimilar competition in the U.S., thanks to a deal made with Amgen last year. Interestingly, only three were healthcare stocks -- UnitedHealth Group (NYSE: UNH) , Johnson & Johnson (NYSE: JNJ) , and AbbVie (NYSE: ABBV) . AbbVie AbbVie took the No. | Interestingly, only three were healthcare stocks -- UnitedHealth Group (NYSE: UNH) , Johnson & Johnson (NYSE: JNJ) , and AbbVie (NYSE: ABBV) . AbbVie AbbVie took the No. Buying more shares in AbbVie was a smart thing to do. | Interestingly, only three were healthcare stocks -- UnitedHealth Group (NYSE: UNH) , Johnson & Johnson (NYSE: JNJ) , and AbbVie (NYSE: ABBV) . If you're focused on growth, AbbVie claims the best growth prospects of the healthcare stocks ranked in the top 25 most popular stocks for hedge funds. AbbVie AbbVie took the No. | AbbVie AbbVie took the No. Interestingly, only three were healthcare stocks -- UnitedHealth Group (NYSE: UNH) , Johnson & Johnson (NYSE: JNJ) , and AbbVie (NYSE: ABBV) . Buying more shares in AbbVie was a smart thing to do. |
25605.0 | 2018-03-19 00:00:00 UTC | J&J Gets $2.1B Offer for LifeScan Diabetes Device Unit | ABBV | https://www.nasdaq.com/articles/jj-gets-%242.1b-offer-for-lifescan-diabetes-device-unit-2018-03-19 | nan | nan | Johnson & JohnsonJNJ announced that it has received a binding offer of approximately $2.1 billion from a private equity firm, Platinum Equity, for its LifeScan diabetes device unit. The LifeScan unit makes blood glucose monitoring products and generated revenues of $1.5 billion last year.
J&J stock has declined 3.8% this year so far, which compares unfavorably with a gain of 1.2% recorded by the industry .
Sales in J&J's Diabetes Care franchise declined 9.7% in 2017 to $1.6 billion due to price decline and competitive pressure.
J&J has been evaluating potential strategic options for its Diabetes Care Units specifically, LifeScan, Animas Corporation, and Calibra Medical since early last year. In fact, in October, J&J announced that it will close operations of its Animas Corporation diabetes care unit and exit its insulin pump business. Animas will stop manufacturing Animas Vibe and OneTouch Ping insulin pumps. J&J said that per a deal with medical device maker, Medtronic, Inc. MDT , patients using an Animas insulin pump will be offered the option to transfer to a Medtronic pump.
J&J carries a Zacks Rank #3 (Hold). Better-ranked large-cap pharma stocks include AbbVie, Inc. ABBV and Pfizer Inc. PFE , both with a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
AbbVie's earnings per share estimates have moved up 14% for 2018 and almost 10% for 2019 in the last 60 days. Shares of the company have shot up 18.4% this year.
Pfizer's earnings per share estimates have moved up 6.9% for 2018 and 5.9% for 2019 in the last 60 days. Share price of the company has increased 2.5% in the past 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. | Better-ranked large-cap pharma stocks include AbbVie, Inc. ABBV and Pfizer Inc. PFE , both with a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up 14% for 2018 and almost 10% for 2019 in the last 60 days. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Medtronic Public Limited Company (MDT): 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 Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Medtronic Public Limited Company (MDT): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked large-cap pharma stocks include AbbVie, Inc. ABBV and Pfizer Inc. PFE , both with a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up 14% for 2018 and almost 10% for 2019 in the last 60 days. | Better-ranked large-cap pharma stocks include AbbVie, Inc. ABBV and Pfizer Inc. PFE , both with a Zacks Rank #2 (Buy). Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Medtronic Public Limited Company (MDT): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie's earnings per share estimates have moved up 14% for 2018 and almost 10% for 2019 in the last 60 days. | Better-ranked large-cap pharma stocks include AbbVie, Inc. ABBV and Pfizer Inc. PFE , both with a Zacks Rank #2 (Buy). AbbVie's earnings per share estimates have moved up 14% for 2018 and almost 10% for 2019 in the last 60 days. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Medtronic Public Limited Company (MDT): Free Stock Analysis Report To read this article on Zacks.com click here. |
25606.0 | 2018-03-16 00:00:00 UTC | Why Multiple Sclerosis is a Promising but Risky Space? | ABBV | https://www.nasdaq.com/articles/why-multiple-sclerosis-is-a-promising-but-risky-space-2018-03-16 | nan | nan | The Multiple Sclerosis (MS) space hit the headlines once again following biotech bigwig, Biogen BIIB and partner AbbVie's ABBV decision to withdraw their jointly owned MS drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. Both companies decided to withdraw the drug on grounds of the complex and evolving benefit/risk profile of Zinbryta, given the limited number of patients treated.
In November 2017, the European Medicines Agency (EMA) concluded its review of Zinbryta. The review found that unpredictable and potentially fatal immune-mediated liver injury can occur during treatment with Zinbryta and for up to 6 months after stopping treatment. In clinical trials, 1.7% of patients receiving Zinbryta had a serious liver reaction.
Given the complexity of the market, MS drugs have a long history of serious side effects, making it a risky therapeutic area. An autoimmune inflammatory disease of the centrol nervous system, MS disrupts the normal functioning of the brain, optic nerves and spinal cord through inflammation and tissue loss. There are three types of MS widely known to affect adults - relapsing-remitting MS (RRMS), secondary progressive MS (SPMS) and primary progressive MS (PPMS).
The market for MS changed drastically with the introduction of oral formulations which are mostly preferred than injections. While there a variety of drugs available for MS, they come with their own set of risks mostly.
Biogen is a dominant player in the MS market with drugs like Avonex, Tysabri, Tecfidera, Plegridy and Zinbryta. However, the company has been under the scrutiny for pricing of MS drugs in 2017. Earlier, the emergence of progressive multifocal leukoencephalopathy (PML) cases, a type of brain infection, associated with the use of Tysabri and Tecfidera had marred the prospects of MS drugs. The FDA thereafter updated the label of Tecfidera. Nevertheless, the company is a name to reckon with in the MS market.
Earlier, the FDA also issued a warning against Novartis' NVS Gilenya for PML. The drug was recently granted Breakthrough Therapy designation to Gilenya for the treatment of children and adolescents 10 years of age or older with relapsing MS. The drug is already approved for the same among adults. Novartis has another MS drug in its portfolio, Glatopa, a generic version of Copaxone 20 mg. Sandoz, the company's generic arm, recently won FDA approval for a generic version of Copaxone 40mg.
Israel-based Teva Pharmceuticals TEVA has long been in the MS market through its widely used drug Copaxone which is facing stiff competition for the last few years.
Meanwhile, in the past, seizures were known side-effects of another MS drug, Ampyra. Seizure risk was seen to increase with higher blood levels of the drug. As a result, the FDA had to update Ampyra's label to clarify recommendations that kidney function should be checked in patients before starting Ampyra and monitored at least annually while Ampyra treatment continues.
Nevertheless, the risks associated with the drugs have not deterred newer entrants which claim better formulations with lesser side effects. Consequently, the market has become too crowded.
In March 2017, the FDA approved Roche's (RHHBY) Ocrevus to treat adults with relapsing forms of MS and primary progressive multiple sclerosis. However, there were questions if Ocrevus was a new innovation or a reformulation of Roche's older drug Rituxan. The drug sales aren't that impressive yet either.
The FDA recently issued Refusal to File letter to Celgene's CELG New Drug Application (NDA) for ozanimod, which is in development for the treatment of patients with relapsing forms of multiple sclerosis. The FDA determined that the nonclinical and clinical pharmacology sections in the NDA were insufficient to permit a complete review. Hence, the company is now gearing up to meet the FDA and determine the future course of action. While there haven't been any safety issues reports, the delay will definitely open up avenues for competition.
Given that so much is happening in this space, we expect investors to remain glued for further updates.
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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 Multiple Sclerosis (MS) space hit the headlines once again following biotech bigwig, Biogen BIIB and partner AbbVie's ABBV decision to withdraw their jointly owned MS drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. An autoimmune inflammatory disease of the centrol nervous system, MS disrupts the normal functioning of the brain, optic nerves and spinal cord through inflammation and tissue loss. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. The Multiple Sclerosis (MS) space hit the headlines once again following biotech bigwig, Biogen BIIB and partner AbbVie's ABBV decision to withdraw their jointly owned MS drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. Novartis has another MS drug in its portfolio, Glatopa, a generic version of Copaxone 20 mg. Sandoz, the company's generic arm, recently won FDA approval for a generic version of Copaxone 40mg. | The Multiple Sclerosis (MS) space hit the headlines once again following biotech bigwig, Biogen BIIB and partner AbbVie's ABBV decision to withdraw their jointly owned MS drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. There are three types of MS widely known to affect adults - relapsing-remitting MS (RRMS), secondary progressive MS (SPMS) and primary progressive MS (PPMS). | The Multiple Sclerosis (MS) space hit the headlines once again following biotech bigwig, Biogen BIIB and partner AbbVie's ABBV decision to withdraw their jointly owned MS drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. In clinical trials, 1.7% of patients receiving Zinbryta had a serious liver reaction. |
25607.0 | 2018-03-16 00:00:00 UTC | Pharma Stock Roundup: ABBV's Elagolix Meets Study Goal, MRK's Keytruda in Focus | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-abbvs-elagolix-meets-study-goal-mrks-keytruda-in-focus-2018-03-16 | nan | nan | This week was a relatively light one as far as developments in the pharma sector were concerned. The key highlights were priority review for Merck's MRK Keytruda for advanced cervical cancer, delay in final data from AstraZeneca's AZN key lung cancer study, success of AbbVie's ABBV another late stage study and breakthrough therapy designation for J&J's JNJ cancer candidate.
Recap of the Week's Most Important Stories
AstraZeneca Delays Final Data from MYSTIC Study: The final overall survival data from AstraZeneca's pivotal phase III MYSTIC study on Imfinzi in the first-line lung cancer indication has been delayed to the second half of this year. The data was previously expected to be presented in the first half of 2018. In July last year, the study failed to meet the primary endpoint of progression-free-survival. (Read More: AstraZeneca's Final Data From Key Lung Cancer Study Delayed )
Merck's Keytruda Gets Priority Review for Another Indication: Merck's supplemental filing looking to expand the label of its anti-PD-1 therapy, Keytruda, to treat advanced cervical cancer, has been accepted for priority review by the FDA. A decision is expected on Jun 28. This is the 14th regulatory submission for Keytruda accepted by the FDA. (Read More: Merck's Keytruda Gets Priority Review for Cervical Cancer )
AbbVie Second Late-Stage Study on Elagolix Meets Endpoints: AbbVie and Neurocrine Biosciences' second of the two pivotal phase III studies on pipeline candidate, elagolix met the primary endpoint. The ELARIS UF-II study was evaluating elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. Data from the study demonstrated that elagolix, in combination with low-dose add-back therapy, reduced heavy menstrual bleeding in 76.2% of women with uterine fibroids compared with 10.1% in placebo at month six. (Read More: AbbVie's Uterine Fibroids Candidate Succeeds in Phase III ).
Top-line data from the first study of elagolix in uterine fibroids was announced in February. This study also met the primary endpoint. (Read More: Abbvie's Uterine Fibrosis Candidate Meets Goal in Study )
J&J's Cancer Candidate Gets Breakthrough Therapy Designation: J&J's late-stage pipeline candidate, erdafitinib gained breakthrough therapy designation from the FDA for the treatment of urothelial cancer, a type of bladder cancer. (Read More: J&J's Erdafitinib Gets Breakthrough Therapy Status )
The NYSE ARCA Pharmaceutical Index was up a marginal 0.1% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here is how the seven major stocks performed:
While Merck emerged as the biggest gainer (1.8%) in the last five trading sessions, Glaxo's GSK shares declined the most (1.6%).
In the last six months, while AstraZeneca has gained 7.2%, Merck declined 14.8%.
(See the last pharma stock roundup here: MRK Signs New Cancer Deal, DERM's Acne Candidate Fails )
What's Next in the Pharma World?
Watch out for regulatory and pipeline news from pharma stocks.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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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 key highlights were priority review for Merck's MRK Keytruda for advanced cervical cancer, delay in final data from AstraZeneca's AZN key lung cancer study, success of AbbVie's ABBV another late stage study and breakthrough therapy designation for J&J's JNJ cancer candidate. (Read More: Merck's Keytruda Gets Priority Review for Cervical Cancer ) AbbVie Second Late-Stage Study on Elagolix Meets Endpoints: AbbVie and Neurocrine Biosciences' second of the two pivotal phase III studies on pipeline candidate, elagolix met the primary endpoint. (Read More: AbbVie's Uterine Fibroids Candidate Succeeds in Phase III ). | The key highlights were priority review for Merck's MRK Keytruda for advanced cervical cancer, delay in final data from AstraZeneca's AZN key lung cancer study, success of AbbVie's ABBV another late stage study and breakthrough therapy designation for J&J's JNJ cancer candidate. (Read More: Abbvie's Uterine Fibrosis Candidate Meets Goal in Study ) J&J's Cancer Candidate Gets Breakthrough Therapy Designation: J&J's late-stage pipeline candidate, erdafitinib gained breakthrough therapy designation from the FDA for the treatment of urothelial cancer, a type of bladder cancer. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | The key highlights were priority review for Merck's MRK Keytruda for advanced cervical cancer, delay in final data from AstraZeneca's AZN key lung cancer study, success of AbbVie's ABBV another late stage study and breakthrough therapy designation for J&J's JNJ cancer candidate. (Read More: Merck's Keytruda Gets Priority Review for Cervical Cancer ) AbbVie Second Late-Stage Study on Elagolix Meets Endpoints: AbbVie and Neurocrine Biosciences' second of the two pivotal phase III studies on pipeline candidate, elagolix met the primary endpoint. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | (Read More: Merck's Keytruda Gets Priority Review for Cervical Cancer ) AbbVie Second Late-Stage Study on Elagolix Meets Endpoints: AbbVie and Neurocrine Biosciences' second of the two pivotal phase III studies on pipeline candidate, elagolix met the primary endpoint. The key highlights were priority review for Merck's MRK Keytruda for advanced cervical cancer, delay in final data from AstraZeneca's AZN key lung cancer study, success of AbbVie's ABBV another late stage study and breakthrough therapy designation for J&J's JNJ cancer candidate. (Read More: AbbVie's Uterine Fibroids Candidate Succeeds in Phase III ). |
25608.0 | 2018-03-16 00:00:00 UTC | 5 Must-See Quotes From AbbVie's Management | ABBV | https://www.nasdaq.com/articles/5-must-see-quotes-abbvies-management-2018-03-16 | nan | nan | What's the best big pharma stock on the market right now? The prize has to go to AbbVie (NYSE: ABBV) . The stock soared 54% last year and is up more than 20% so far in 2018.
Everything seems to be going AbbVie's way lately, which makes it really easy for the company's executives when they field questions at major conferences. That was the case for AbbVie CFO Bill Chase and Vice President of Scientific Affairs Scott Brun at the Barclays Global Healthcare Conference on Thursday. Here are five must-see quotes from AbbVie's executives.
1. You're "not going to see anything catastrophic" with Humira
Without question, the most important factor driving AbbVie stock higher last year was the removal of uncertainty about the fate of Humira. The autoimmune disease drug has been at risk of competition from biosimilars, with potential rivals challenging AbbVie's remaining patents for Humira. That put the company in a precarious position, since Humira generates 65% of AbbVie's total revenue.
But a deal with Amgen (NASDAQ: AMGN) in 2017 went a long way to calm fears about Humira's future. AbbVie CFO Bill Chase said that the Amgen agreement and positive decisions by the U.S. Patent and Trademark Office have helped the market "come to the conclusion that this product [Humira] is durable." He added that you're "not going to see anything catastrophic" happen with Humira sales.
Under the terms of its agreement with AbbVie, Amgen won't be able to market its biosimilar to Humira until early 2023. However, the big biotech will launch its biosimilar in Europe in the fourth quarter of this year. Chase said AbbVie expects around a 15% to 20% decline in European sales for Humira over the next couple of years.
2. "Hep C has been a crazy ride"
When asked about AbbVie's hepatitis C virus (HCV) franchise, Chase responded that "hep C has been a crazy ride for all of us." AbbVie launched HCV drug Viekira in 2016. However, Viekira faced strong competition from Gilead Sciences ' (NASDAQ: GILD) HCV products. In addition, the number of patient starts for HCV drugs was plunging due to so many patients being cured by Gilead's first HCV drugs, Sovaldi and Harvoni.
But AbbVie launched Mavyret last year and priced the drug attractively. Even Gilead now acknowledges that the HCV market has boiled down to a head-to-head battle between it and AbbVie. Chase seemed to agree with that assessment, stating that "the market is defined." He said AbbVie expects the opportunities for Mavyret to "develop positively."
3. The pipeline has "almost an embarrassment of riches"
Last year, market research firm EvaluatePharma ranked AbbVie's pipeline No. 3 in the entire biopharmaceutical industry. Chase thinks very highly of AbbVie's pipeline as well, saying that it has "almost an embarrassment of riches."
He noted that AbbVie expects seven new product or major new indication launches over the next 18 months. One of these launches that should be imminent is for elagolix in managing endometriosis with associated pain. Chase stated that "even in a worst-case scenario, [elagolix] is clearly a $1 billion plus asset."
In addition to elagolix, Chase and Brun highlighted a couple of other key pipeline candidates. Cancer drug Rova-T, gained with the acquisition of Stemcentrx in 2016, is a very promising late-stage cancer drug. Upadacitinib is in late-stage studies targeting treatment of rheumatoid arthritis and psoriasis.
4. "Don't expect anything major" when it comes to deals
Will AbbVie make more acquisitions in 2018? Perhaps, but Chase said not to "expect anything major." He added, "Running out and buying something of size doesn't make sense."
The reality is that AbbVie's current product lineup, featuring Humira, Imbruvica, Mavyret, and Venclexta, along with its deep and diverse pipeline, puts the company in a position where it doesn't need to add much right now. Chase stated that any business development activities would focus on earlier-stage assets. Brun noted that's "exactly what we've been doing," citing a recent licensing deal with Voyager Therapeutics as an example.
5. "We have a growth story that will be the envy of the industry"
Chase claimed that with the combination of Humira and a strong pipeline, AbbVie has "a growth story that will be the envy of the industry." Was he right? I think so.
The deal with Amgen provided assurance that Humira will keep chugging along. New potential blockbusters like Mavyret and elagolix will fuel growth. And Chase's statements about AbbVie's pipeline aren't exaggerations. It's really that good. AbbVie is the best big pharma stock on the market right now -- and I don't see that status changing anytime soon.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That was the case for AbbVie CFO Bill Chase and Vice President of Scientific Affairs Scott Brun at the Barclays Global Healthcare Conference on Thursday. AbbVie CFO Bill Chase said that the Amgen agreement and positive decisions by the U.S. Patent and Trademark Office have helped the market "come to the conclusion that this product [Humira] is durable." The reality is that AbbVie's current product lineup, featuring Humira, Imbruvica, Mavyret, and Venclexta, along with its deep and diverse pipeline, puts the company in a position where it doesn't need to add much right now. | AbbVie CFO Bill Chase said that the Amgen agreement and positive decisions by the U.S. Patent and Trademark Office have helped the market "come to the conclusion that this product [Humira] is durable." AbbVie launched HCV drug Viekira in 2016. The prize has to go to AbbVie (NYSE: ABBV) . | You're "not going to see anything catastrophic" with Humira Without question, the most important factor driving AbbVie stock higher last year was the removal of uncertainty about the fate of Humira. AbbVie CFO Bill Chase said that the Amgen agreement and positive decisions by the U.S. Patent and Trademark Office have helped the market "come to the conclusion that this product [Humira] is durable." "We have a growth story that will be the envy of the industry" Chase claimed that with the combination of Humira and a strong pipeline, AbbVie has "a growth story that will be the envy of the industry." | Everything seems to be going AbbVie's way lately, which makes it really easy for the company's executives when they field questions at major conferences. AbbVie launched HCV drug Viekira in 2016. "Don't expect anything major" when it comes to deals Will AbbVie make more acquisitions in 2018? |
25609.0 | 2018-03-15 00:00:00 UTC | 7 Things Vertex Pharmaceuticals' CEO Just Said That Will Probably Make You Want to Buy the Stock | ABBV | https://www.nasdaq.com/articles/7-things-vertex-pharmaceuticals-ceo-just-said-will-probably-make-you-want-buy-stock-2018 | nan | nan | Vertex Pharmaceuticals (NASDAQ: VRTX) achieved something in 2017 that few stocks did: It more than doubled. At the beginning of this year, I picked Vertex as one of the top big biotech stocks to buy . That pick has looked good so far. Vertex is off to a great start in 2018, with a year-to-date gain of more than 15%.
But is it too late to buy this hot biotech stock now? I don't think so, especially after listening to Jeff Leiden, Vertex's CEO, speak on Wednesday at the Cowen healthcare conference. Here are seven things Leiden said that just might make you want to buy the stock.
1. Completing the journey in cystic fibrosis is only a matter of execution
Vertex enjoys a monopoly in the cystic fibrosis (CF) market with three drugs -- Kalydeco, Orkambi, and recently approved Symdeko. The company's goal over the next couple of years or so is to provide effective treatments for 90% of CF patients. Leiden used the phrase "complete the journey in CF" to describe this goal. And he said that it's "now a matter of execution and is no longer a matter of science, biology, or medicine."
Is that view overly confident? Not really. Vertex announced great results from phase 2 clinical studies of several triple-drug combinations in treating CF. The biotech has already initiated a couple of late-stage studies of one of those triple-drug combos and plans to start a late-stage study of another combo by mid-year.
Two of the components of the triple-drug combos are tezecaftor and ivacaftor. Kalydeco (ivacaftor) and Symdeko (tezecaftor/ivacaftor and ivacaftor) are on the market and have been proven to work in the real world. The earlier studies show pretty convincing evidence that the addition of Vertex's selected third components -- VX-659 and VX-445 -- were safe and effective in a clinical setting. What that means for investors is that the risks for the late-stage studies is lower than that of many clinical studies. That doesn't mean there's no risk of failure, but -- as Leiden said -- it primarily comes down to execution.
2. Vertex's first-mover advantage is huge
Vertex isn't the only drugmaker in the CF space. Galapagos (NASDAQ: GLPG) and AbbVie (NYSE: ABBV) are developing a triple-drug combo as well. However, Vertex has a clear head start over its rivals.
When asked about how big Vertex's competitive advantage might be if it is successful in launching a triple-drug combo by the end of 2018, Leiden mentioned three things. First, he said that Vertex already knows where all the CF patients are as a result of its previous efforts. Second, he pointed to the rapid adoption of Orkambi, a powerful new therapy. Third, he noted that the company encountered challenges getting patients in clinical trials to switch from Kalydeco to add tezecaftor.
Put Leiden's responses together, and you have a scenario where Vertex will be able to quickly line up CF patients once its triple-drug combos launch. But with CF patients resistant to switching from a therapy that works for them, a similar triple-drug combo from Galapagos and AbbVie could have a hard time gaining market traction following Vertex's launch.
3. Intellectual property protection is simple -- and solid
What about patents expiring? Leiden stated that Vertex's intellectual property (IP) is "pretty simple." The biotech's IP protection is also pretty solid.
With products that consist of multiple components, the product is protected through the last expiration of any of its component drugs. Leiden said this means Vertex's next-generation correctors for CF will enjoy IP protection through the 2030s.
4. Newer CF drugs should be more profitable
Vertex is generating profits from its current drugs, but its newer drugs should be even more profitable. Why? The company pays tiered royalties for Kalydeco, Orkambi, and Symdeko in the high single digits to low teens to Cystic Fibrosis Foundation Therapeutics Incorporated (CFFT). However, Leiden mentioned that Vertex renegotiated its agreement with CFFT for triple-drug combos. The company will pay royalties in the low- to mid-single digits on these new drugs.
5. It's only a question of when, not if, remaining reimbursement deals in Europe will be finalized
Vertex has already won approval for Orkambi in Europe. But actually being able to market a new drug in Europe requires negotiating reimbursement deals country by country. Vertex made significant progress last year with reimbursement deals in Ireland and Italy, but discussions with a couple of big countries -- France and the U.K. -- are still in progress.
Leiden said that he's confident that the deals will be finalized, but that it's just a question of timing. Vertex already has around 1,000 patients in France using Orkambi, although the biotech hasn't recognized any revenue yet. As for the U.K., Leiden said that the company hopes to secure a portfolio agreement that provides for reimbursement for any new CF drug, not just Orkambi. The bottom line is that Vertex should have a couple of significant markets open up in the not-too-distant future.
6. Only one or two pipeline programs need to be successful
What's in store for Vertex beyond treating CF? Leiden said that the company intends to develop and market transformative medicines for serious diseases that "smell and look a lot like CF." He specifically pointed to three opportunities -- sickle cell disease, pain, and alpha-1 antitrypsin (AAT) deficiency -- but stated the company has around 10 different indications that it was targeting in addition to CF.
Vertex is working with CRISPR Therapeutics to use the CRISPR-Cas9 gene-editing approach in treating sickle cell disease. Leiden said that he's "excited about sickle cell" and thinks there could potentially be a cure for the disease.
Here's the great thing about Vertex's pipeline outside of CF: Any program would be a multi-billion-dollar franchise by itself. Leiden stated that "all of them don't have to work, half of them don't have to work." All it takes for Vertex to generate tremendous growth is for one or two of its pipeline programs to be successful.
7. A nice problem to have
Leiden noted that Vertex now "has a nice problem of accumulating cash very rapidly." At the end of 2017, that nice problem translated to over $2 billion in cash, cash equivalents, and marketable securities.
Vertex plans to use its cash to supplement its internal innovation efforts. However, Leiden said the company would also look to make business development deals. The biotech is most likely, according to Leiden, to target "something that really moves the needle" in CF, new technology platforms (especially gene therapy), and deals to supplement its early-stage pipeline.
Any real problems?
Are there any real problems aside from the fake one of making a lot of cash? Probably the least attractive thing about Vertex is that the stock is expensive. Shares currently trade at 38 times expected earnings.
However, remember that those expected earnings only look out to the year ahead. Vertex's triple-drug combos won't hit the market until after then (assuming all goes well). Its pipeline efforts beyond CF are also further in the future. Any business development deals probably wouldn't generate a return until years from now as well.
Jeff Leiden is definitely looking at the long term. That's what you want from a CEO. And that's what you want to do as an investor. Over the long run, I think this biotech stock will continue to be a big winner.
10 stocks we like better than Vertex Pharmaceuticals
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Keith Speights owns shares of AbbVie. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But with CF patients resistant to switching from a therapy that works for them, a similar triple-drug combo from Galapagos and AbbVie could have a hard time gaining market traction following Vertex's launch. Galapagos (NASDAQ: GLPG) and AbbVie (NYSE: ABBV) are developing a triple-drug combo as well. *Stock Advisor returns as of March 5, 2018 Keith Speights owns shares of AbbVie. | Galapagos (NASDAQ: GLPG) and AbbVie (NYSE: ABBV) are developing a triple-drug combo as well. But with CF patients resistant to switching from a therapy that works for them, a similar triple-drug combo from Galapagos and AbbVie could have a hard time gaining market traction following Vertex's launch. *Stock Advisor returns as of March 5, 2018 Keith Speights owns shares of AbbVie. | But with CF patients resistant to switching from a therapy that works for them, a similar triple-drug combo from Galapagos and AbbVie could have a hard time gaining market traction following Vertex's launch. Galapagos (NASDAQ: GLPG) and AbbVie (NYSE: ABBV) are developing a triple-drug combo as well. *Stock Advisor returns as of March 5, 2018 Keith Speights owns shares of AbbVie. | Galapagos (NASDAQ: GLPG) and AbbVie (NYSE: ABBV) are developing a triple-drug combo as well. But with CF patients resistant to switching from a therapy that works for them, a similar triple-drug combo from Galapagos and AbbVie could have a hard time gaining market traction following Vertex's launch. *Stock Advisor returns as of March 5, 2018 Keith Speights owns shares of AbbVie. |
25610.0 | 2018-03-15 00:00:00 UTC | Zacks Market Edge Highlights: Scotts Miracle-Gro, GW Pharmaceuticals, Innovative Industrial Properties and AbbVie | ABBV | https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-scotts-miracle-gro-gw-pharmaceuticals-innovative-industrial | nan | nan | For Immediate Release
Chicago, IL - March 15, 2018 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/295632/the-best-marijuana-stocks-right-now )
The Best Marijuana Stocks Right Now
Welcome to Episode #123 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by David Bartosiak, the Editor of Zacks Surprise Trader, Momentum Trader and Blockchain Innovators newsletters, to discuss one of their favorite topics: marijuana stocks.
On Jan 17, 2017, Tracey and Dave first explored the marijuana investment options in the podcast titled " Can You Get Rich Off Marijuana Stocks? "
Back in early 2017, the investment pickings were slim.
Have things changed in 2018?
Maturing of the Pot Stock Industry
Demand remains high for "pot stocks." For that reason, several marijuana ETFs have now launched and more businesses are looking for ways to get a foothold in the industry.
In addition to the stocks they talked about last year, Tracey and Dave also found several more investing options.
They focused on those that are traded on the US exchanges and have, or soon will have, Zacks Rank. That means some stocks that trade on the Pink Sheets, like Aurora Cannabis (ACBFF) for example, are not high on their list even though it has a $4.4 billion market cap.
5 Stocks that get you into the Marijuana Trade
1. The Scotts Miracle-Gro Company SMG making potting soil specifically for growing marijuana. While it was a stock mentioned on the 2017 podcast, its performance hasn't been that great. Shares have fallen 2.3% in that time.
2. GW PharmaceuticalsGWPH is a British biopharmaceutical company that is developing cannabis medicines. It's lead product is in development to treat rare and catastrophic forms of childhood on-set epilepsy. It's expected to lose $8.95 per share in fiscal 2018 and another $6.12 in fiscal 2019. Shares are up just 1% since the January 2017 podcast.
3. Innovative Industrial PropertiesIIPR is a REIT that manages free-standing properties for growing licensed medical-use cannabis. These facilities are operated by state licensed growers. It has buildings in New York, Maryland, Minnesota and just acquired a site in Arizona which has a long-term lease. Earnings are expected to be $0.19 in 2017 and $1.32 in 2018. It has paid out a distribution in 2017. Shares are up 44% since the Jan 17, 2017 podcast.
4. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. Marinol is approved for chemotherapy induced nausea and vomiting and anorexia. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8.
5. Cronos Group listed on the NASDAQ exchange on Feb 27, 2018. This Canadian based company cultivates medical marijuana companies and owns 100% of Peace Naturals, 100% of Original BC and 21.5% of Whistler Medical Marijuana Company. It doesn't yet have a Zacks Rank. Stay tuned.
There are other biopharmaceuticals that are in the development stages of cannabis-based therapies and treatments. Additionally, some of the large food and beverage companies are looking for ways to invest in cannabis food and drink products.
What other stocks could be marijuana investments in 2018?
Listen to the podcast to find out.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast . You can also catch her on Twitter at @TraceyRyniec .
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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
GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report
Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report
Innovative Industrial Properties, Inc. (IIPR): 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. | AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8. | AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report To read this article on Zacks.com click here. |
25611.0 | 2018-03-14 00:00:00 UTC | AbbVie's Uterine Fibroids Candidate Succeeds in Phase III | ABBV | https://www.nasdaq.com/articles/abbvies-uterine-fibroids-candidate-succeeds-in-phase-iii-2018-03-14 | nan | nan | AbbVieABBV and partner Neurocrine Biosciences announced that the second of the two pivotal phase III studies evaluating its pipeline candidate, elagolix uterine fibroids, met the primary endpoint. AbbVie is looking to get elagolix approved as an oral medicine for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids.
Elagolix is already under review in the United States for management of endometriosis with associated pain.
AbbVie's shares have increased more than 1% on Mar 13, following the news release. Moreover, so far this year, AbbVie's share price has increased 24.5%, comparing favorably with a gain of 0.5% recorded by the industry .
Coming back to the latest release, data from the phase III ELARIS UF-II (M12-817) study demonstrated that elagolix, in combination with low-dose add-back therapy, reduced heavy menstrual bleeding in 76.2% of women with uterine fibroids compared with 10.1% in placebo at month six. The safety profile of the candidate was also found to be consistent with the first phase III study (ELARIS UF-I) results. The study met its secondary endpoints as well. Data from the ELARIS UF-II study will support regulatory submissions for elagolix for the aforementioned indication.
Note that, positive top-line data from the first phase III ELARIS UF-I study were announced in February 2018. This study also met the primary endpoints.
Per the company's press release, uterine fibroid affects around 20-80% of women by age 50. Out of them, 25% may experience symptoms such as heavy menstrual bleeding, painful periods, vaginal bleeding at times other than menstruation and anemia. At present, there are limited non-surgical treatment options for women suffering from the disease. Uterine fibroid is currently managed with oral contraceptives, progestins and GnRH agonists. Many of these medicines are not specifically indicated for the treatment of uterine fibroid. Hence, approval of the candidate will provide the company access to patients who are in need of an additional treatment option to apprehend the disease.
Meanwhile, pharma company Allergan AGN also has a pipeline candidate, ulipristal acetate, in its portfolio which is being evaluated for treatment of uterine fibroids. It might be the first oral treatment to hit the market, as it is under review in the United States with a response expected from the regulatory agency in August 2018.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank & Key Picks
AbbVie carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the health care sector are Regeneron Pharmaceuticals, Inc. REGN and Ligand Pharmaceuticals Incorporated LGND . While Regeneron sports a Zacks Rank #1 (Strong Buy), Ligand holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Regeneron's earnings per share estimates have moved up from $17.02 to $18.68 and from $20.29 to $21.60 for 2018 and 2019, respectively, in the last 60 days. The company pulled off a positive earnings surprise in three of the last four quarters with an average beat of 9.15%.
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 30 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 65.8% over a year.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
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
Allergan plc (AGN): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Ligand Pharmaceuticals Incorporated (LGND): 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. | AbbVieABBV and partner Neurocrine Biosciences announced that the second of the two pivotal phase III studies evaluating its pipeline candidate, elagolix uterine fibroids, met the primary endpoint. AbbVie is looking to get elagolix approved as an oral medicine for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. AbbVie's shares have increased more than 1% on Mar 13, following the news release. | AbbVieABBV and partner Neurocrine Biosciences announced that the second of the two pivotal phase III studies evaluating its pipeline candidate, elagolix uterine fibroids, met the primary endpoint. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #2 (Buy). Click to get this free report Allergan plc (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): 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 #2 (Buy). Click to get this free report Allergan plc (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV and partner Neurocrine Biosciences announced that the second of the two pivotal phase III studies evaluating its pipeline candidate, elagolix uterine fibroids, met the primary endpoint. | AbbVieABBV and partner Neurocrine Biosciences announced that the second of the two pivotal phase III studies evaluating its pipeline candidate, elagolix uterine fibroids, met the primary endpoint. AbbVie's shares have increased more than 1% on Mar 13, following the news release. AbbVie is looking to get elagolix approved as an oral medicine for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. |
25612.0 | 2018-03-14 00:00:00 UTC | The Best Marijuana Stocks Right Now | ABBV | https://www.nasdaq.com/articles/best-marijuana-stocks-right-now-2018-03-14 | nan | nan | (0: 20 ) - Where To Invest With Pot Stocks
(2: 30 ) - 2017 Stock Pick Update: ACBFF, GWPH, SMG, IIPR
(8: 00 ) - Top Picks For 2018: ABBV, CRON, STZ, INSY, CARA
(16: 10 ) - Risk and Rewards of Buying Pot Stocks
(19: 40 ) - Episode Roundup: Podcast@Zacks.com
It is getting easier to buy stocks that do business in the emerging cannibis industry. Tracey and Dave explore all the options.
Description:
Welcome to Episode #123 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by David Bartosiak, the Editor of Zacks Surprise Trader, Momentum Trader and Blockchain Innovators newsletters, to discuss one of their favorite topics: marijuana stocks.
On Jan 17, 2017, Tracey and Dave first explored the marijuana investment options in the podcast titled " Can You Get Rich Off Marijuana Stocks? "
Back in early 2017, the investment pickings were slim.
Have things changed in 2018?
Maturing of the Pot Stock Industry
Demand remains high for "pot stocks." For that reason, several marijuana ETFs have now launched and more businesses are looking for ways to get a foothold in the industry.
In addition to the stocks they talked about last year, Tracey and Dave also found several more investing options.
They focused on those that are traded on the US exchanges and have, or soon will have, Zacks Rank. That means some stocks that trade on the Pink Sheets, like Aurora Cannabis (ACBFF) for example, are not high on their list even though it has a $4.4 billion market cap.
5 Stocks that get you into the Marijuana Trade
1. The Scotts Miracle-Gro CompanySMG making potting soil specifically for growing marijuana. While it was a stock mentioned on the 2017 podcast, its performance hasn't been that great. Shares have fallen 2.3% in that time.
2. GW PharmaceuticalsGWPH is a British biopharmaceutical company that is developing cannabis medicines. It's lead product is in development to treat rare and catastrophic forms of childhood on-set epilepsy. It's expected to lose $8.95 per share in fiscal 2018 and another $6.12 in fiscal 2019. Shares are up just 1% since the January 2017 podcast.
3. Innovative Industrial PropertiesIIPR is a REIT that manages free-standing properties for growing licensed medical-use cannabis. These facilities are operated by state licensed growers. It has buildings in New York, Maryland, Minnesota and just acquired a site in Arizona which has a long-term lease. Earnings are expected to be $0.19 in 2017 and $1.32 in 2018. It has paid out a distribution in 2017. Shares are up 44% since the Jan 17, 2017 podcast.
4. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. Marinol is approved for chemotherapy induced nausea and vomiting and anorexia. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8.
5. Cronos GroupCRON listed on the NASDAQ exchange on Feb 27, 2018. This Canadian based company cultivates medical marijuana companies and owns 100% of Peace Naturals, 100% of Original BC and 21.5% of Whistler Medical Marijuana Company. It doesn't yet have a Zacks Rank. Stay tuned.
There are other biopharmaceuticals that are in the development stages of cannabis-based therapies and treatments. Additionally, some of the large food and beverage companies are looking for ways to invest in cannabis food and drink products.
What other stocks could be marijuana investments in 2018?
Listen to the podcast to find out.
Don't Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
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
GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report
Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report
Innovative Industrial Properties, Inc. (IIPR): 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. | (0: 20 ) - Where To Invest With Pot Stocks (2: 30 ) - 2017 Stock Pick Update: ACBFF, GWPH, SMG, IIPR (8: 00 ) - Top Picks For 2018: ABBV, CRON, STZ, INSY, CARA (16: 10 ) - Risk and Rewards of Buying Pot Stocks (19: 40 ) - Episode Roundup: Podcast@Zacks.com It is getting easier to buy stocks that do business in the emerging cannibis industry. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8. | (0: 20 ) - Where To Invest With Pot Stocks (2: 30 ) - 2017 Stock Pick Update: ACBFF, GWPH, SMG, IIPR (8: 00 ) - Top Picks For 2018: ABBV, CRON, STZ, INSY, CARA (16: 10 ) - Risk and Rewards of Buying Pot Stocks (19: 40 ) - Episode Roundup: Podcast@Zacks.com It is getting easier to buy stocks that do business in the emerging cannibis industry. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. | (0: 20 ) - Where To Invest With Pot Stocks (2: 30 ) - 2017 Stock Pick Update: ACBFF, GWPH, SMG, IIPR (8: 00 ) - Top Picks For 2018: ABBV, CRON, STZ, INSY, CARA (16: 10 ) - Risk and Rewards of Buying Pot Stocks (19: 40 ) - Episode Roundup: Podcast@Zacks.com It is getting easier to buy stocks that do business in the emerging cannibis industry. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. | AbbVieABBV is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. (0: 20 ) - Where To Invest With Pot Stocks (2: 30 ) - 2017 Stock Pick Update: ACBFF, GWPH, SMG, IIPR (8: 00 ) - Top Picks For 2018: ABBV, CRON, STZ, INSY, CARA (16: 10 ) - Risk and Rewards of Buying Pot Stocks (19: 40 ) - Episode Roundup: Podcast@Zacks.com It is getting easier to buy stocks that do business in the emerging cannibis industry. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8. |
25613.0 | 2018-03-13 00:00:00 UTC | VHT, ABBV, BMY, DHR: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/vht-abbv-bmy-dhr-etf-outflow-alert-2018-03-13 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $48.7 million dollar outflow -- that's a 0.6% decrease week over week (from 46,154,984 to 45,855,745). Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is up about 2.3%, Bristol-Myers Squibb Co. (Symbol: BMY) is up about 0.3%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average:
Looking at the chart above, VHT's low point in its 52 week range is $135.4001 per share, with $171.30 as the 52 week high point - that compares with a last trade of $163.59. 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 VHT, in trading today AbbVie Inc (Symbol: ABBV) is up about 2.3%, Bristol-Myers Squibb Co. (Symbol: BMY) is up about 0.3%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $135.4001 per share, with $171.30 as the 52 week high point - that compares with a last trade of $163.59. 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 VHT, in trading today AbbVie Inc (Symbol: ABBV) is up about 2.3%, Bristol-Myers Squibb Co. (Symbol: BMY) is up about 0.3%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $135.4001 per share, with $171.30 as the 52 week high point - that compares with a last trade of $163.59. 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 VHT, in trading today AbbVie Inc (Symbol: ABBV) is up about 2.3%, Bristol-Myers Squibb Co. (Symbol: BMY) is up about 0.3%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $48.7 million dollar outflow -- that's a 0.6% decrease week over week (from 46,154,984 to 45,855,745). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $135.4001 per share, with $171.30 as the 52 week high point - that compares with a last trade of $163.59. | Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is up about 2.3%, Bristol-Myers Squibb Co. (Symbol: BMY) is up about 0.3%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $135.4001 per share, with $171.30 as the 52 week high point - that compares with a last trade of $163.59. 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). |
25614.0 | 2018-03-13 00:00:00 UTC | Broadcom Can't Buy Qualcomm, But You Can | ABBV | https://www.nasdaq.com/articles/broadcom-cant-buy-qualcomm-you-can-2018-03-13 | nan | nan | For those of us not obsessed with porn stars and Russia investigations, the big news yesterday was the intervention by the White House to block the proposed takeover of Qualcomm (QCOM) by Broadcom (AVGO). The hostile takeover bid had, as these things tend to do, become extremely contentious, but is now over due to a ruling by President Trump that the deal would potentially damage national security.
The ultimate decision was made by President Trump, but the deciding factor was a review by the Committee on Foreign Investment in the U.S. (CFIUS). As a result, Broadcom cannot now buy Qualcomm, but the fact remains that they saw they saw substantial value in the stock, so maybe you should.
Of course, it is never quite that simple, but failed takeovers often indicate value in the target company that is understood by a company in the industry but not priced in by the market. Even after you factor in the inevitable synergies of such a deal, Broadcom obviously saw value in QCOM at or above the current price. That is in part because Qualcomm has been, in the eyes of many, underperforming for a while.
However, history shows that when that is the case a hostile takeover bid can be a wonderful motivation for a Board to make some positive changes, and the target stock often does well in the following months.
As an example, back in 2014 when the pharmaceutical industry was in an M&A frenzy and inversions were all the rage, a proposed takeover of the U.K. firm Shire PLC (SHPG) by AbbVie (ABBV) fell apart. As a result, SHPG dropped dramatically, but, as I pointed out at the time, the value beyond the benefits of inversion that AbbVie saw in Shire didn’t go away. That is why SHPG did this over the next nine months.
There is already evidence that the takeover bid has refocused the existing board at Qualcomm and improved the company’s prospects. They have become more aggressive about their own potential takeover of NXP (NXPI), for example, and made a few other moves that improve the prospects for growth in the business.
There is still the matter of their dispute with Apple (AAPL) over licensing fees, but, as this Seeking Alpha piece by Mark Hibben points out, a dispassionate view of the agreement makes that look like a standard licensing deal, so an eventual ruling in Qualcomm’s favor is the most likely outcome.
The beauty of buying QCOM at a discount as the deal collapses, however, is that you do not need a complete win on the Apple dispute or a massively successful deal with NXP to make the trade make sense. The current price reflects the risk inherent in both situations but also the relative underperformance to this point, and as a result the trailing P/E (after adjustments for one-off charges) on the stock is around fifteen as compared to the S&P 500’s multiple of over twenty-five.
In other words, bad news is priced in at these levels and QCOM therefore represents rare value in what is currently a rapidly growing industry. Trump’s decision yesterday means that Broadcom can’t buy Qualcomm, but, given the inherent value and possibility of good news in the near future, maybe you should.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As an example, back in 2014 when the pharmaceutical industry was in an M&A frenzy and inversions were all the rage, a proposed takeover of the U.K. firm Shire PLC (SHPG) by AbbVie (ABBV) fell apart. As a result, SHPG dropped dramatically, but, as I pointed out at the time, the value beyond the benefits of inversion that AbbVie saw in Shire didn’t go away. For those of us not obsessed with porn stars and Russia investigations, the big news yesterday was the intervention by the White House to block the proposed takeover of Qualcomm (QCOM) by Broadcom (AVGO). | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. As an example, back in 2014 when the pharmaceutical industry was in an M&A frenzy and inversions were all the rage, a proposed takeover of the U.K. firm Shire PLC (SHPG) by AbbVie (ABBV) fell apart. As a result, SHPG dropped dramatically, but, as I pointed out at the time, the value beyond the benefits of inversion that AbbVie saw in Shire didn’t go away. | As an example, back in 2014 when the pharmaceutical industry was in an M&A frenzy and inversions were all the rage, a proposed takeover of the U.K. firm Shire PLC (SHPG) by AbbVie (ABBV) fell apart. As a result, SHPG dropped dramatically, but, as I pointed out at the time, the value beyond the benefits of inversion that AbbVie saw in Shire didn’t go away. For those of us not obsessed with porn stars and Russia investigations, the big news yesterday was the intervention by the White House to block the proposed takeover of Qualcomm (QCOM) by Broadcom (AVGO). | As an example, back in 2014 when the pharmaceutical industry was in an M&A frenzy and inversions were all the rage, a proposed takeover of the U.K. firm Shire PLC (SHPG) by AbbVie (ABBV) fell apart. As a result, SHPG dropped dramatically, but, as I pointed out at the time, the value beyond the benefits of inversion that AbbVie saw in Shire didn’t go away. Even after you factor in the inevitable synergies of such a deal, Broadcom obviously saw value in QCOM at or above the current price. |
25615.0 | 2018-03-13 00:00:00 UTC | Health Care Sector Update for 03/13/2018: ABBV, BLCM, EPZM, MRK | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-03132018-abbv-blcm-epzm-mrk-2018-03-13 | nan | nan | Top Health-care stocks:
JNJ: +0.3%
PFE: +0.3%
ABT: flat
MRK: flat
AMGN: flat
Health care shares were mostly higher ahead of the bell on Tuesday.
Expected movers:
- Bellicum Pharma ( BLCM ): reports low rates of cancer recurrence in AML patients treated with BPX-501
- AbbVie ( ABBV ): phase 3 study of Elagolix in women with uterine fibroids meets primary endpoint
- Epizyme ( EPZM ): reports narrower-than-expected Q4 loss
Other news:
- Merck ( MRK ): US FDA grants priority review for Keytruda as cervical cancer treatment
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. | Expected movers: - Bellicum Pharma ( BLCM ): reports low rates of cancer recurrence in AML patients treated with BPX-501 - AbbVie ( ABBV ): phase 3 study of Elagolix in women with uterine fibroids meets primary endpoint - Epizyme ( EPZM ): reports narrower-than-expected Q4 loss Other news: - Merck ( MRK ): US FDA grants priority review for Keytruda as cervical cancer treatment The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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. | Expected movers: - Bellicum Pharma ( BLCM ): reports low rates of cancer recurrence in AML patients treated with BPX-501 - AbbVie ( ABBV ): phase 3 study of Elagolix in women with uterine fibroids meets primary endpoint - Epizyme ( EPZM ): reports narrower-than-expected Q4 loss Other news: - Merck ( MRK ): US FDA grants priority review for Keytruda as cervical cancer treatment The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ABT: flat MRK: flat AMGN: flat Health care shares were mostly higher ahead of the bell on Tuesday. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Expected movers: - Bellicum Pharma ( BLCM ): reports low rates of cancer recurrence in AML patients treated with BPX-501 - AbbVie ( ABBV ): phase 3 study of Elagolix in women with uterine fibroids meets primary endpoint - Epizyme ( EPZM ): reports narrower-than-expected Q4 loss Other news: - Merck ( MRK ): US FDA grants priority review for Keytruda as cervical cancer treatment The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. | Expected movers: - Bellicum Pharma ( BLCM ): reports low rates of cancer recurrence in AML patients treated with BPX-501 - AbbVie ( ABBV ): phase 3 study of Elagolix in women with uterine fibroids meets primary endpoint - Epizyme ( EPZM ): reports narrower-than-expected Q4 loss Other news: - Merck ( MRK ): US FDA grants priority review for Keytruda as cervical cancer treatment The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Top Health-care stocks: ABT: flat MRK: flat AMGN: flat Health care shares were mostly higher ahead of the bell on Tuesday. |
25616.0 | 2018-03-13 00:00:00 UTC | Health Care Sector Update for 03/13/2018: ABBV,NBIX,EPZM,BLCM,MRK | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-03132018-abbvnbixepzmblcmmrk-2018-03-13 | nan | nan | Top Health Care Stocks
JNJ +1.41%
PFE +0.29%
ABT -0.72%
MRK -0.24%
AMGN +0.16%
Health care stocks still were ending on positive ground Tuesday, with the NYSE Health Care Index hanging on to a nearly 0.1% gain in recent trade. Also today, shares of health care companies in the S&P 500 were up a little more than 0.1% as a group while the Nasdaq Biotechnology index was losing nearly 0.8% in recent trade.
Among health care stocks moving on news:
+ AbbVie ( ABBV ) was higher in late Tuesday trading, climbing almost 3% to a session high of $121.45 a share, after the biopharmaceuticals company, together with Neurocrine Biosciences ( NBIX ), said its elagolix drug candidate met its primary endpoint during the second of two Phase III clinical trials, reducing heavy menstrual bleeding in 76.2% of women with uterine fibroids six months after treatment. The study also met all of its secondary endpoints, the company said, adding the results were consistent with the other late-stage study of elagolix announced in February. Uterine fibroids are the most common type of abnormal growth in women's pelvis, affecting up to 80% of all women by their 50th birthday.
In other sector news:
+ Bellicum Pharmaceuticals ( BLCM ) still was hanging on to a moderate gain Tuesday afternoon, falling back from a more than 8% rise earlier in the session that followed itr releasing interim clinical data showing its BPX-501 T cells appear to contribute to a durable anti-leukemic effect in older patients with acute myeloid leukemia. BPX-501 is an adjunct T cell therapy incorporating CaspaCIDe administered after haploidentical hematopoietic stem cell transplant (haplo-HSCT) for the treatment of hematologic cancers and inherited blood diseases. The study enrolled 38 pediatric patients with acute myeloid leukemia who received haplo-HSCT followed by treatment with BPX-501. One year after their treatments, 91.5% of the patients were demonstrating relapse-free survival and an overall survival rate of 97.3% per share compared with previously reported one-year survival rates in luekemia patients undergoing alternate-donor HSCT between 60% to 80%.
- Merck ( MRK ) was edging lower Tuesday afternoon, giving back a nearly 1% gain earlier that followed the company saying the U.S. Food and Drug Administration has granted a priority review for its Keytruda oncology drug as a potential treatment for cervical cancer with disease progression on or after chemotherapy. The agency is scheduled to issue its decision on the added indication by June 28.
- Epizyme ( EPZM ) was lower Tuesday afternoon, reversing a nearly 2% advance to a 33-month high of $21.40 a share, that followed the oncology drugmaker reporting a smaller Q4 net loss than Wall Street was expecting. Net loss was $0.52 per share during the three months ended Dec. 31, improving on a $0.60 per share net loss during the same quarter in 2016 and beating the Capital IQ consensus by $0.05 per share. Epizyme had no revenue during the quarter, as expected. The company expects its existing cash, cash equivalents and marketable securities on Dec. 31 will fund its planned operational costs into the July-to-September period in 2019.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 higher in late Tuesday trading, climbing almost 3% to a session high of $121.45 a share, after the biopharmaceuticals company, together with Neurocrine Biosciences ( NBIX ), said its elagolix drug candidate met its primary endpoint during the second of two Phase III clinical trials, reducing heavy menstrual bleeding in 76.2% of women with uterine fibroids six months after treatment. In other sector news: + Bellicum Pharmaceuticals ( BLCM ) still was hanging on to a moderate gain Tuesday afternoon, falling back from a more than 8% rise earlier in the session that followed itr releasing interim clinical data showing its BPX-501 T cells appear to contribute to a durable anti-leukemic effect in older patients with acute myeloid leukemia. - Epizyme ( EPZM ) was lower Tuesday afternoon, reversing a nearly 2% advance to a 33-month high of $21.40 a share, that followed the oncology drugmaker reporting a smaller Q4 net loss than Wall Street was expecting. | Among health care stocks moving on news: + AbbVie ( ABBV ) was higher in late Tuesday trading, climbing almost 3% to a session high of $121.45 a share, after the biopharmaceuticals company, together with Neurocrine Biosciences ( NBIX ), said its elagolix drug candidate met its primary endpoint during the second of two Phase III clinical trials, reducing heavy menstrual bleeding in 76.2% of women with uterine fibroids six months after treatment. Health care stocks still were ending on positive ground Tuesday, with the NYSE Health Care Index hanging on to a nearly 0.1% gain in recent trade. - Merck ( MRK ) was edging lower Tuesday afternoon, giving back a nearly 1% gain earlier that followed the company saying the U.S. Food and Drug Administration has granted a priority review for its Keytruda oncology drug as a potential treatment for cervical cancer with disease progression on or after chemotherapy. | Among health care stocks moving on news: + AbbVie ( ABBV ) was higher in late Tuesday trading, climbing almost 3% to a session high of $121.45 a share, after the biopharmaceuticals company, together with Neurocrine Biosciences ( NBIX ), said its elagolix drug candidate met its primary endpoint during the second of two Phase III clinical trials, reducing heavy menstrual bleeding in 76.2% of women with uterine fibroids six months after treatment. Health care stocks still were ending on positive ground Tuesday, with the NYSE Health Care Index hanging on to a nearly 0.1% gain in recent trade. - Merck ( MRK ) was edging lower Tuesday afternoon, giving back a nearly 1% gain earlier that followed the company saying the U.S. Food and Drug Administration has granted a priority review for its Keytruda oncology drug as a potential treatment for cervical cancer with disease progression on or after chemotherapy. | Among health care stocks moving on news: + AbbVie ( ABBV ) was higher in late Tuesday trading, climbing almost 3% to a session high of $121.45 a share, after the biopharmaceuticals company, together with Neurocrine Biosciences ( NBIX ), said its elagolix drug candidate met its primary endpoint during the second of two Phase III clinical trials, reducing heavy menstrual bleeding in 76.2% of women with uterine fibroids six months after treatment. In other sector news: + Bellicum Pharmaceuticals ( BLCM ) still was hanging on to a moderate gain Tuesday afternoon, falling back from a more than 8% rise earlier in the session that followed itr releasing interim clinical data showing its BPX-501 T cells appear to contribute to a durable anti-leukemic effect in older patients with acute myeloid leukemia. - Epizyme ( EPZM ) was lower Tuesday afternoon, reversing a nearly 2% advance to a 33-month high of $21.40 a share, that followed the oncology drugmaker reporting a smaller Q4 net loss than Wall Street was expecting. |
25617.0 | 2018-03-13 00:00:00 UTC | Is This AbbVie's Next Blockbuster Drug? | ABBV | https://www.nasdaq.com/articles/abbvies-next-blockbuster-drug-2018-03-13 | nan | nan | AbbVie 's (NYSE: ABBV) elagolix has taken another leap toward billion-dollar blockbuster sales status. An FDA decision on elagolix use in endometriosis patients is anticipated soon, and on Tuesday, AbbVie management unveiled data from trials evaluating it in uterine fibroids. If the FDA give the go-ahead for elagoix in endometriosis, and eventually expands its label to include uterine fibroids, the treatent could become the pharmaceutical giant's next top-seller.
Awaiting a decision
AbbVie acquired global rights to elagolix from Neurocrine Biosciences (NASDAQ: NBIX) in 2010, when it had just successfully completed a phase 2b trial in endometriosis. At the time, AbbVie handed Neurocrine $75 million in upfront cash, and agreed to pay up to $500 million in additional milestones, plus royalties on sales.
Elagolix is an inhibitor of gonadotropin-releasing hormone (GnRH) that partially suppresses estrogen to maintain it in the low to normal range. This partial suppression feature allows it to reduce the pain associated with endometriosis without the adverse side effects such as significant bone loss that can result from estrogen suppression.
In September 2017, AbbVie submitted elagolix for FDA approval following phase 3 trials showing it reduces three types of endometriosis-associated pain: daily menstrual pelvic pain, non-menstrual pelvic pain, and painful intercourse. The FDA granted the application a priority review, which shortens its target review period to six months from the usual 10. As a result, a decision is expected from regulators in the second quarter. If approved, elagolix would become the first new treatment approved for endometriosis-associated pain in over a decade.
A bigger patient population
About 1 in 10 women suffer from endometriosis during their reproductive years, so an approval could generate annual sales well into the 9-figures. Elagolix's total market opportunity could be even bigger than that: AbbVie released positive data for the drug from the first of two uterine fibroid trials on Feb. 21, and on Tuesday, it reported positive data from the second.
In the first trial, 68.5% of patients receiving elagolix plus low-dose hormone therapy saw reduced heavy menstrual bleeding versus just 8.7% of patients taking a placebo. Results from the second trial were similar, with 76.2% of patients responding to elagolix versus just 10.1% of patients responding to placebo.
Uterine fibroids have been found to occur in as many as 80% of women by age 50, and while they're often asymptomatic, they can cause pain and heavy bleeding in about 25% of patients. Currently, there are limited non-surgical treatment options available, so an approval in this indication would be welcome.
Tapping into a major market opportunity
AbbVie is putting serious weight into its efforts to develop new drugs that could cushion it against the possible revenue threat from biosimilars to Humira, which accounts for about 65% of its $28.2 billion in annual sales. Humira's EU patents expire later this year, and in the wake of a U.S. patent decision last fall, it's likely that biosimilars to Humira will go on sale domestically in 2023.
Overall, industry watchers think elagolix could contribute about $1.2 billion to annual sales in 2022. If those estimates are correct, then it could be a key contributor to the company's post-Humira success.
10 stocks we like better than AbbVie
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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. | Awaiting a decision AbbVie acquired global rights to elagolix from Neurocrine Biosciences (NASDAQ: NBIX) in 2010, when it had just successfully completed a phase 2b trial in endometriosis. Tapping into a major market opportunity AbbVie is putting serious weight into its efforts to develop new drugs that could cushion it against the possible revenue threat from biosimilars to Humira, which accounts for about 65% of its $28.2 billion in annual sales. AbbVie 's (NYSE: ABBV) elagolix has taken another leap toward billion-dollar blockbuster sales status. | In September 2017, AbbVie submitted elagolix for FDA approval following phase 3 trials showing it reduces three types of endometriosis-associated pain: daily menstrual pelvic pain, non-menstrual pelvic pain, and painful intercourse. AbbVie 's (NYSE: ABBV) elagolix has taken another leap toward billion-dollar blockbuster sales status. An FDA decision on elagolix use in endometriosis patients is anticipated soon, and on Tuesday, AbbVie management unveiled data from trials evaluating it in uterine fibroids. | An FDA decision on elagolix use in endometriosis patients is anticipated soon, and on Tuesday, AbbVie management unveiled data from trials evaluating it in uterine fibroids. In September 2017, AbbVie submitted elagolix for FDA approval following phase 3 trials showing it reduces three types of endometriosis-associated pain: daily menstrual pelvic pain, non-menstrual pelvic pain, and painful intercourse. Elagolix's total market opportunity could be even bigger than that: AbbVie released positive data for the drug from the first of two uterine fibroid trials on Feb. 21, and on Tuesday, it reported positive data from the second. | An FDA decision on elagolix use in endometriosis patients is anticipated soon, and on Tuesday, AbbVie management unveiled data from trials evaluating it in uterine fibroids. AbbVie 's (NYSE: ABBV) elagolix has taken another leap toward billion-dollar blockbuster sales status. Awaiting a decision AbbVie acquired global rights to elagolix from Neurocrine Biosciences (NASDAQ: NBIX) in 2010, when it had just successfully completed a phase 2b trial in endometriosis. |
25618.0 | 2018-03-12 00:00:00 UTC | The 1 Big Risk That Every Drugmaker Fears | ABBV | https://www.nasdaq.com/articles/1-big-risk-every-drugmaker-fears-2018-03-12 | nan | nan | Drug safety trumps efficacy, regardless of how successful a drug is in treating a condition. This makes picking the right drug target and drug design critical.
In this clip from The Motley Fool's Industry Focus: Healthcare podcast, host Kristine Harjes and contributor Todd Campbell discuss how safety plays a role in corporate strategy and competitive battles using Gilead Sciences ' (NASDAQ: GILD) face-off against Johnson & Johnson (NYSE: JNJ) and AbbVie Inc . (NYSE: ABBV) in cancer as an example.
A full transcript follows the video.
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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, the Motley Fool Stock Advisor, has tripled the market.*
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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 7, 2018.
Kristine Harjes: Let's turn to our second factor of competition, which is safety.
Todd Campbell: Safety is interesting. You're looking at it and saying, I want to build a drug that works better as far as efficacy is concerned, but it doesn't really do me any good if I pick the wrong target or I use a mechanism of action that isn't going to be safe. If I launch a drug that I think is going to be competitive because it delivers solid efficacy, but then safety signals show up, it's basically going to collapse the commercial opportunity of that drug.
Thinking about a good example for our listeners, turning back to Gilead Sciences, they actually had a drug that wasn't nearly as successful as their hep C franchise, and that's Zydelig, which is a drug for chronic lymphocytic leukemia. That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica.
Harjes: Yeah. These two were fierce competitors with one another. They were both targeting the same unmet need. It was an enormous, multi-billion-dollar indication. They were hoping that they'd be able to expand these drugs into earlier lines and potentially other cancers. But, neither drug was perfect. Safety ended up being a huge differentiator between the two of them. In March 2016, Zydelig's expansion trials had to be halted, which caused Gilead to have to discontinue the further development of this drug and add a black box warning, which is the FDA's most severe warning, on the label for the drug itself. And it just decimated Zydelig's commercial opportunity.
Campbell: Yeah. I remember thinking in 2013, before this drug launched, I was writing that Zydelig could be a blockbuster drug, it could have billion-dollar potential, this is a multibillion-dollar opportunity especially if you can move it up into earlier and earlier lines of treatment. But, when all was said and done, Zydelig's mechanism of action was inhibiting something called PI3K-delta, vs. Imbruvica's mechanism of action inhibiting the BtK protein, and BtK turned out to be safer. There were, unfortunately, some very sad fatalities caused in the trials evaluating Zydelig, and I think as a result, they had to shutter of the development. And Zydelig, while it's still on the market today because there are some patients that could still respond well to it, it's basically a niche drug. This was once going to be a billion-dollar blockbuster, and I think last year, the sales were maybe $150 million.
Harjes: Versus Imbruvica's sales, which were $2.5 billion in 2017. Something that I really want to emphasize here is, you have to consider the doctors' perspective. From that perspective, safety actually matters even more than efficacy. Think for a second about the Hippocratic Oath, to do no harm to your patients. So, even the most well-intentioned doctor is going to care more about avoiding bad outcomes than missing out on the best possible outcome and using a slightly more effective but maybe more dangerous drug. I think it's the logical choice every time to go for the safer drug. So, it really does matter. And labeling is also super important. That black box warning that I talked about, that's a blemish. Even if the black box is just to maybe narrow the patient pool slightly, having it on there is something that makes doctors very jittery and a little bit more hesitant to prescribe drugs that have some sort of safety hiccups.
Campbell: Kristine, that made me think, as investors, whenever we see a press release that comes out touting this great efficacy, I always, and you probably do, too, scan down about halfway and start looking for adverse events. I think that's a good reminder to all of our listeners that, when they're looking through phase 3 or phase 2 trial data, you want to not just focus on that efficacy. You want to go down there and look, were there any -- I'm most interested, Kristine, and you probably are, too, with the severe adverse events. That's grade 3 or higher events. And of all of them, I'm really interested in what's happening with liver toxicity. Those are some of the things, if you're trying to figure out, will this drug be better than the other drug, absent to head to head comparison, those are a couple things to take a look at.
Harjes: Yep. And one small tip for listeners that are trying to dig into these details, you'll sometimes see these adverse events referred to as SAE or AE, the acronym for severe adverse event and adverse event. If you're CTRL+F searching through any press releases and you're not finding anything when you spell out the words, try the acronym.
Campbell: Kristine, before we jump, one more point to follow on the back of that. It's important to remember that the safety hurdle will differ depending on the indication. You're going to have a slightly different safety hurdle for someone who has, say, late-stage cancer with very few treatment options versus, say, toenail fungus.
Harjes: Yeah, absolutely. And even in different lines of the same indication, it's a little bit more acceptable to have a questionable side effect profile if you're later down the line in treatment and patients have fewer options left.
Kristine Harjes owns shares of Gilead Sciences and Johnson & Johnson. 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 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. | In this clip from The Motley Fool's Industry Focus: Healthcare podcast, host Kristine Harjes and contributor Todd Campbell discuss how safety plays a role in corporate strategy and competitive battles using Gilead Sciences ' (NASDAQ: GILD) face-off against Johnson & Johnson (NYSE: JNJ) and AbbVie Inc . (NYSE: ABBV) in cancer as an example. That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. | In this clip from The Motley Fool's Industry Focus: Healthcare podcast, host Kristine Harjes and contributor Todd Campbell discuss how safety plays a role in corporate strategy and competitive battles using Gilead Sciences ' (NASDAQ: GILD) face-off against Johnson & Johnson (NYSE: JNJ) and AbbVie Inc . (NYSE: ABBV) in cancer as an example. That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. | In this clip from The Motley Fool's Industry Focus: Healthcare podcast, host Kristine Harjes and contributor Todd Campbell discuss how safety plays a role in corporate strategy and competitive battles using Gilead Sciences ' (NASDAQ: GILD) face-off against Johnson & Johnson (NYSE: JNJ) and AbbVie Inc . (NYSE: ABBV) in cancer as an example. That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. | That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. In this clip from The Motley Fool's Industry Focus: Healthcare podcast, host Kristine Harjes and contributor Todd Campbell discuss how safety plays a role in corporate strategy and competitive battles using Gilead Sciences ' (NASDAQ: GILD) face-off against Johnson & Johnson (NYSE: JNJ) and AbbVie Inc . (NYSE: ABBV) in cancer as an example. |
25619.0 | 2018-03-12 00:00:00 UTC | How Pricing Can Be Vital to a Drugmaker's Profitability | ABBV | https://www.nasdaq.com/articles/how-pricing-can-be-vital-drugmakers-profitability-2018-03-12 | nan | nan | Game-changing efficacy and safety will undeniably allow any drugmaker to dominate an indication, but when drugs match up nicely to each other, price can be the key differentiator.
In this clip from The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes and Motley Fool contributor Todd Campbell discuss pricing strategies used by companies to rack up revenue for investors using the hepatitis C brawl between Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) as an example.
A full transcript follows the video.
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This video was recorded on March 7, 2018.
Kristine Harjes: Our third factor of competition that we wanted to talk about today is price. This one is, I think, slightly less obvious than the others, and in particular it needs to be balanced with the other two, meaning efficacy and safety, because price alone isn't going to cut it if you have a drug like, say, Sovaldi. Sovaldi was able to price itself very high compared to what was on the market because it knocked it out of the park on safety and efficacy. But, as it turns out, that wasn't the end of the story. Eventually it did face competition from other hepatitis C drugs in this next generation wave of more safe and more effective drugs, based on price.
Todd Campbell: Right, AbbVie and Merck , both of them. And you can imagine, Kristine, being in the war room of these C-suites trying to figure this out, because they're looking at this and saying, we know we're going up against Sovaldi and Harvoni, which are incredibly efficacious drugs with solid safety profiles. We think we can match or at least come up similarly to them on those two things. So then, how do we differentiate to make sure that we're able to win the market share away from them? And the next logical choice, then, would be on price. Can I battle on price? Can I undercut them, still make a nice profit for my investors, and capture a bulk of the market share?
Harjes: One strategic way that companies can do this is by negotiating directly with the PBMs to get preferred access to their formularies, which essentially blocks out your competition, if your drug is listed on, say, Express Scripts' preferred formulary and your competition isn't.
Campbell: Right. And that's why the Viekira Pak, which was AbbVie's first hepatitis C drug, when that came out, I think it won approval at the end of 2014, maybe launched in 2015. When they won approval, what they decided to do is, we can't necessarily beat Gilead's drugs on these other things like efficacy and safety. But what we can do is offer a bargain-basement price to Express Scripts, and basically get all of the business that way. And that's exactly what ended up happening. I think Sovaldi was priced at $84,000 for the treatment, I think Harvoni was $94,000, and Viekira Pak's wholesale acquisition cost came in around $83,500, but their net cost was probably much, much lower than that. And of course, that then forces Gilead to have to compete on price and lower their prices. And then when Merck's drug came out, compete again. And then, fast-forward to 2017 with AbbVie's most recent drug that just launched, and I think that drug is priced at less than $30,000 for an eight-week course of treatment.
Harjes: And this is why, when you're looking at Gilead Sciences' results, you see hepatitis C sales falling off a cliff. Not only are they treating patients and curing them, which effectively makes your market smaller and smaller, but this price battle has made margins so tight for all of these companies that the market is not nearly the size that it once was.
Campbell: Right, a smaller market. And then, of course, competing on price to try and maintain market share, driving down the revenue on the unit volume that you are driving out the door. I think, from an investor's standpoint, you're looking at it and you have to recognize that drugs aren't your normal thing. When you're looking at this industry and investing in this industry for the first time, one of the things you have to realize right out of the gate is, this isn't like building a widget and saying, "I'm building a widget and then I'm going to mark it up 15%, and that's going to be my profit margin." 90% of the drugs are going to fail in your clinical trials, so you need to not only price for the cost to produce that drug once it wins approval, but you need to absorb the cost on all your failed drugs, and you need to price it to be able to fund future development of whatever the next innovative treatment is that you're going to launch.
Harjes: And, of course, all the way, you have to be battling the public outcry about drug pricing. So, for sure, this is something that drug makers and doctors, payers, pretty much everybody in this country, is thinking about, is drug pricing.
Kristine Harjes owns shares of Gilead Sciences. Todd Campbell 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. | In this clip from The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes and Motley Fool contributor Todd Campbell discuss pricing strategies used by companies to rack up revenue for investors using the hepatitis C brawl between Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) as an example. Todd Campbell: Right, AbbVie and Merck , both of them. And that's why the Viekira Pak, which was AbbVie's first hepatitis C drug, when that came out, I think it won approval at the end of 2014, maybe launched in 2015. | In this clip from The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes and Motley Fool contributor Todd Campbell discuss pricing strategies used by companies to rack up revenue for investors using the hepatitis C brawl between Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) as an example. Todd Campbell: Right, AbbVie and Merck , both of them. And that's why the Viekira Pak, which was AbbVie's first hepatitis C drug, when that came out, I think it won approval at the end of 2014, maybe launched in 2015. | In this clip from The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes and Motley Fool contributor Todd Campbell discuss pricing strategies used by companies to rack up revenue for investors using the hepatitis C brawl between Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) as an example. And then, fast-forward to 2017 with AbbVie's most recent drug that just launched, and I think that drug is priced at less than $30,000 for an eight-week course of treatment. Todd Campbell: Right, AbbVie and Merck , both of them. | And that's why the Viekira Pak, which was AbbVie's first hepatitis C drug, when that came out, I think it won approval at the end of 2014, maybe launched in 2015. And then, fast-forward to 2017 with AbbVie's most recent drug that just launched, and I think that drug is priced at less than $30,000 for an eight-week course of treatment. In this clip from The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes and Motley Fool contributor Todd Campbell discuss pricing strategies used by companies to rack up revenue for investors using the hepatitis C brawl between Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) as an example. |
25620.0 | 2018-03-10 00:00:00 UTC | 3 Dividend Stocks That Are Perfect for Retirement | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-are-perfect-retirement-2018-03-10 | nan | nan | If you're retired, you want to own dividend stocks that have long track records of consistent, growing dividends. No retiree wants to take undue risk on dividend stocks that haven't yet proven themselves.
Here's why three of our Foolish investors think AbbVie (NYSE: ABBV) , General Mills (NYSE: GIS) , and Enbridge (NYSE: ENB) are dividend stocks that are perfect for retirement.
Taking the risk out of drug discovery
Rich Duprey(AbbVie): Drugmaker AbbVie still counts on rheumatoid arthritis therapy Humira for the bulk of its revenue. The treatment represented $18.4 billion in 2017, or 65% of AbbVie's $28.2 billion in net revenue. However, patent protection expired here in the U.S. in 2016, and the drugmaker will lose protection in the EU in October. If generics hit the market, AbbVie will likely see revenue plunge, although the drugmaker is constantly researching new indications for the therapy.
What makes the the company especially attractive is the fact it has a robust pipeline of drugs that could easily take up the slack. AbbVie's next leading treatment is Imbruvica, which has the potential to become one of the top five cancer drugs on the market, while two cancer drugs (Rova-T and Veliparib) and an autoimmune-disease drug (ABT-494) could bring substantial revenue when they eventually launch.
AbbVie also pays a dividend of $3.84 per share that currently yields around 3.2%. It can also be considered a Dividend Aristocrat if you include the period it was part of Abbott Labs before it was spun off in 2013. That would give it a 26-year track record of raising payouts, making it a perfect investment for retirement.
A beaten-down food stock
Tim Green(General Mills): Shares of packaged food stocks have had a rough few years. General Mills, known for brands like Betty Crocker, Cheerios, Pillsbury, and Yoplait, is no exception. General Mills stock has lost about 29% of its value since peaking in mid-2016. Sluggish sales, aging brands, and a consumer shift toward more natural foods are all putting pressure on the stock price.
General Mills is working to adapt, acquiring brands that focus on natural ingredients, such as Larabar in 2008, Annie's in 2014, and Blue Buffalo Pet Productsearlier this year . General Mills still has plenty of work to do to reposition its portfolio, but you can't say it's not trying.
Earnings growth will most likely be sluggish for a while, but that doesn't change the fact that General Mills is a solid dividend stock. Shares currently yield about 3.8%, and the dividend has been paid uninterrupted for 119 years. With a track record like that, there's little reason to believe that the company can't adapt. The only question is how long it will take.
About to enter an elite dividend class
Matt DiLallo (Enbridge): Canadian oil pipeline giant Enbridge has been paying dividends to its investors for more than 64 years. Even better, the company has increased the payout for the last 23, which puts it just a couple of years shy of entering the elite ranks of the Dividend Aristocrats . The company fully expects to join that group, since it has already announced its intentions to increase the dividend by 10% in both 2019 and 2020 .
With its latest increase, Enbridge's stock yields an impressive 6.8%, which like the company's outlook shows, is both sustainable and heading higher. Several factors support this view. First, the company's financials are on solid ground, since 96% of its earnings come from stable sources like fee-based contracts. Furthermore, the company has an investment-grade credit rating and only pays out about 65% of its cash flow to support the dividend.
Those last two factors provide Enbridge with the financial flexibility to invest in high-return growth projects that will increase cash flow. Currently, the company has 22 billion Canadian dollars' ($17 billion) worth of expansions under way, which should fuel 10% annual growth in cash flow per share through 2020, fully supporting its dividend growth outlook. That visible growth, combined with the company's rock-solid financial position, makes Enbridge the perfect dividend stock for retirement.
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*Stock Advisor returns as of March 5, 2018
Matthew DiLallo owns shares of Enbridge. Rich Duprey has no position in any of the stocks mentioned. Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool is short shares of General Mills. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why three of our Foolish investors think AbbVie (NYSE: ABBV) , General Mills (NYSE: GIS) , and Enbridge (NYSE: ENB) are dividend stocks that are perfect for retirement. Taking the risk out of drug discovery Rich Duprey(AbbVie): Drugmaker AbbVie still counts on rheumatoid arthritis therapy Humira for the bulk of its revenue. The treatment represented $18.4 billion in 2017, or 65% of AbbVie's $28.2 billion in net revenue. | Here's why three of our Foolish investors think AbbVie (NYSE: ABBV) , General Mills (NYSE: GIS) , and Enbridge (NYSE: ENB) are dividend stocks that are perfect for retirement. Taking the risk out of drug discovery Rich Duprey(AbbVie): Drugmaker AbbVie still counts on rheumatoid arthritis therapy Humira for the bulk of its revenue. The treatment represented $18.4 billion in 2017, or 65% of AbbVie's $28.2 billion in net revenue. | Here's why three of our Foolish investors think AbbVie (NYSE: ABBV) , General Mills (NYSE: GIS) , and Enbridge (NYSE: ENB) are dividend stocks that are perfect for retirement. Taking the risk out of drug discovery Rich Duprey(AbbVie): Drugmaker AbbVie still counts on rheumatoid arthritis therapy Humira for the bulk of its revenue. The treatment represented $18.4 billion in 2017, or 65% of AbbVie's $28.2 billion in net revenue. | Here's why three of our Foolish investors think AbbVie (NYSE: ABBV) , General Mills (NYSE: GIS) , and Enbridge (NYSE: ENB) are dividend stocks that are perfect for retirement. Taking the risk out of drug discovery Rich Duprey(AbbVie): Drugmaker AbbVie still counts on rheumatoid arthritis therapy Humira for the bulk of its revenue. The treatment represented $18.4 billion in 2017, or 65% of AbbVie's $28.2 billion in net revenue. |
25621.0 | 2018-03-10 00:00:00 UTC | How Biopharmas Battle for Billions | ABBV | https://www.nasdaq.com/articles/how-biopharmas-battle-billions-2018-03-10 | nan | nan | Billion-dollar blockbuster status is the holy grail of drug development; however, 90% of clinical trials fail and only a few drugs achieve this milestone. How do drugmakers overcome the odds?
In this episode of The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes is joined by Motley Fool contributor Todd Campbell to discuss how efficacy, safety, price, and convenience affect sales at top companies, including Gilead Sciences (NASDAQ: GILD) , AbbVie (NYSE: ABBV) , and Bristol-Myers Squibb (NYSE: BMY) .
A full transcript follows the video.
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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, the Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 5, 2018
The author(s) may have a position in any stocks mentioned.
This video was recorded on March 7, 2018.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. Today is March 7, 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! How are you today? Happy Wednesday!
Harjes: I'm doing great. Are you familiar with The Motley Fool tradition of Foolympics?
Campbell: No, tell me about them!
Harjes: OK. Every other year, The Fool runs its own version of the Olympics. We're divided up into teams, we name ourselves a country, and we participate in a variety of different physical and mental competitions. That's what we're in the midst of right now here at Fool HQ. And given that competition is a core value here at The Motley Fool, it gets super heated. You know what today's topic is, Todd. Does it make sense why it was top-of-mind?
Campbell: Absolutely. I'm excited for today's show, Kristine, because we get to take off our lab coats, our science hats that we usually wear, and put on our C-suite suits and our CEO hats.
Harjes: Yes. We're here today to talk about competition. When multiple drugs are competing for the same patients, how do you differentiate one from another, and how can you tell which one will ultimately end up winning the largest patient share? We took a look at the different ways we've seen drugs compete in real life, and we broke them down into four primary factors of competition. We'll dive into each one of them and give an example or two. First, let's take a look at what's at stake here.
Campbell: There's so much at stake. We've talked to listeners over the course of the last few years about different problems and challenges that have to be overcome by these companies that are developing these new drugs. First, you have patent protection. You have a capped, limited period of time that your product is going to be on the market, earning money. Somebody could come out and out-innovate you. And there's a tremendous amount of money at stake, $330 billion spent on prescription drugs. When you think about the fact that 90% of drugs that go into clinical trials end up failing and ending up in the dustbin, you want to make sure that the 10% that do cross the finish line are as successful as they possibly can be.
Harjes: We spend so much time on this show talking about drugs that haven't even hit the market yet and discussing the clinical trials and the data coming out of them. I'm looking forward today to looking a little bit farther down the timeline at what happens when these drugs are on the market. You hit the nail on the head that they only have so much time in which they'll generate money. These businesses are looking to grab as much market share as they possibly can in order to recoup their investment and also in order to further their R&D spending for drugs to come out in the future.
The very first factor to dig into is a no-brainer. This one is efficacy. How well does the drug work?
Campbell: Right. Can we build a better mousetrap than whatever the standard of care currently is for that indication? Can we reshape or revolutionize that indication so that we capture all of the money that's potentially up for grabs? Kristine, just in going through and thinking about how to discuss this with our listeners, I think you'll probably agree that the best example of efficacy and disruption in recent memory is Gilead Sciences and what it did in hepatitis C.
Harjes: Absolutely. When Gilead won approval for its hepatitis C drug Sovaldi in 2014, that was a complete game-changer. Previously, patients were looking at drugs that were just not very good at all. They were mostly effective, and they were a pain. But Gilead came out with Sovaldi, and it totally changed the game, with cure rates of upward of 90%. With that, it ate everybody's lunch. There were no other reasonable competitors at that point.
Campbell: Right, you had these old-style treatments for decades that included Ribavirin and Peginterferon. I think the functional cure rates of taking those over the course of very long treatment periods was only 50%, it was like a coin flip. Then, in 2011, Vertex got approved a drug called Incivek, which at the time was game-changing. But even then, the functional cure rate was only about 80%. So, when Gilead Sciences came out with Sovaldi, and later in the year Harvoni in 2014, and was able to increase those functional cure rates above 90%, it was game-changing.
I think, you look at this and you think back, how Gilead Sciences got to that point. Think about all of the people who were up in arms about how much money Gilead Sciences paid to get its hands on the drug that would eventually become Sovaldi. A lot of people were scratching their heads about that. Again, they did the numbers and they were looking at this saying, "If we can do this and we can come up with a functional cure rate efficacy that's really so much better than anything that's currently out there, well, then it could be a huge drug." And sure enough, these were huge drugs.
Harjes: Yeah. This drug ended up making Gilead Sciences so much money. It basically changed what the story behind Gilead Sciences was. This went from a company that was really just about HIV and added an entire blockbuster franchise.
Campbell: Yeah. At one point, I think they were close to doing $20 billion in annualized sales just from hepatitis C. That's pretty remarkable. It goes to show that, front and center on the minds of anyone involved in this business isn't just the idea of making money, but it's also this whole idea of, if we can disrupt by creating something that really, really works well, this much better drug that will, by the nature of it, end up being successful on its own.
Harjes: Gilead Sciences in hepatitis C is a pretty obvious example. But it's worth pointing out that there's a little bit of nuance here. For, example, you see pretty frequently two different drugs competing in the same market, and one will claim that in its trials, it had, say, a 90% cure rate, vs. the other one only had 80%. Unless you actually have a head-to-head trial, it can sometimes be hard to tell whether the one drug actually is better. That all comes down to trial design. Do you want to dive into that a little bit?
Campbell: Yeah. I'm so happy that you brought that up. I think it's important to remember. Obviously, we have different hurdles of efficacy to clear that we can actually categorize, how good is this drug, really? If you're comparing it to the easiest hurdle, which is a placebo, so, I'm doing nothing vs. taking this drug, well, that tells me something, but it doesn't necessarily tell me that this option is better than, say, the current standard of care. Unless, of course, you do a study that actually compares the two of them head to head, we don't know that.
The other thing, too, that I think investors have to remember is, you can demonstrate efficacy in multiple ways. We've talked about this on the show before with surrogate endpoints vs. the actual overall survival. So, using, say, response rate vs. overall survival, or progression-free survival. I'm talking mostly about cancer drugs here, but you could also look at it in autoimmune disease and say, what's the hurdle that we're actually trying to achieve to show that our Phase III trial pans out? I think investors have to be cognizant of that.
Harjes: Absolutely. So, that's efficacy. Let's turn to our second factor of competition, which is safety.
Campbell: Safety is interesting. You're looking at it and saying, I want to build a drug that works better as far as efficacy is concerned, but it doesn't really do me any good if I pick the wrong target or I use a mechanism of action that isn't going to be safe. If I launch a drug that I think is going to be competitive because it delivers solid efficacy, but then safety signals show up, it's basically going to collapse the commercial opportunity of that drug.
Thinking about a good example for our listeners, turning back to Gilead Sciences, they actually had a drug that wasn't nearly as successful as their hep C franchise, and that's Zydelig, which is a drug for chronic lymphocytic leukemia. That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica.
Harjes: Yeah. These two were fierce competitors with one another. They were both targeting the same unmet need. It was an enormous, multi-billion-dollar indication. They were hoping that they'd be able to expand these drugs into earlier lines and potentially other cancers. But, neither drug was perfect. Safety ended up being a huge differentiator between the two of them. In March 2016, Zydelig's expansion trials had to be halted, which caused Gilead to have to discontinue the further development of this drug and add a black box warning, which is the FDA's most severe warning, on the label for the drug itself. And it just decimated Zydelig's commercial opportunity.
Campbell: Yeah. I remember thinking in 2013, before this drug launched, I was writing that Zydelig could be a blockbuster drug, it could have billion-dollar potential, this is a multibillion-dollar opportunity especially if you can move it up into earlier and earlier lines of treatment. But, when all was said and done, Zydelig's mechanism of action was inhibiting something called PI3K-delta, vs. Imbruvica's mechanism of action inhibiting the BtK protein, and BtK turned out to be safer. There were, unfortunately, some very sad fatalities caused in the trials evaluating Zydelig, and I think as a result, they had to shutter of the development. And Zydelig, while it's still on the market today because there are some patients that could still respond well to it, it's basically a niche drug. This was once going to be a billion-dollar blockbuster, and I think last year, the sales were maybe $150 million.
Harjes: Versus Imbruvica's sales, which were $2.5 billion in 2017. Something that I really want to emphasize here is, you have to consider the doctors' perspective. From that perspective, safety actually matters even more than efficacy. Think for a second about the Hippocratic Oath, to do no harm to your patients. So, even the most well-intentioned doctor is going to care more about avoiding bad outcomes than missing out on the best possible outcome and using a slightly more effective but maybe more dangerous drug. I think it's the logical choice every time to go for the safer drug. So, it really does matter. And labeling is also super important. That black box warning that I talked about, that's a blemish. Even if the black box is just to maybe narrow the patient pool slightly, having it on there is something that makes doctors very jittery and a little bit more hesitant to prescribe drugs that have some sort of safety hiccups.
Campbell: Kristine, that made me think, as investors, whenever we see a press release that comes out touting this great efficacy, I always, and you probably do, too, scan down about halfway and start looking for adverse events. I think that's a good reminder to all of our listeners that, when they're looking through phase 3 or phase 2 trial data, you want to not just focus on that efficacy. You want to go down there and look, were there any -- I'm most interested, Kristine, and you probably are, too, with the severe adverse events. That's grade 3 or higher events. And of all of them, I'm really interested in what's happening with liver toxicity. Those are some of the things, if you're trying to figure out, will this drug be better than the other drug, absent to head to head comparison, those are a couple things to take a look at.
Harjes: Yep. And one small tip for listeners that are trying to dig into these details, you'll sometimes see these adverse events referred to as SAE or AE, the acronym for severe adverse event and adverse event. If you're CTRL+F searching through any press releases and you're not finding anything when you spell out the words, try the acronym.
Campbell: Kristine, before we jump, one more point to follow on the back of that. It's important to remember that the safety hurdle will differ depending on the indication. You're going to have a slightly different safety hurdle for someone who has, say, late-stage cancer with very few treatment options versus, say, toenail fungus.
Harjes: Yeah, absolutely. And even in different lines of the same indication, it's a little bit more acceptable to have a questionable side effect profile if you're later down the line in treatment and patients have fewer options left.
Our third factor of competition that we wanted to talk about today is price. This one is, I think, slightly less obvious than the others, and in particular it needs to be balanced with the other two, meaning efficacy and safety, because price alone isn't going to cut it if you have a drug like, say, Sovaldi. Sovaldi was able to price itself very high compared to what was on the market because it knocked it out of the park on safety and efficacy. But, as it turns out, that wasn't the end of the story. Eventually it did face competition from other hepatitis C drugs in this next generation wave of more safe and more effective drugs, based on price.
Campbell: Right, AbbVie and Merck , both of them. And you can imagine, Kristine, being in the war room of these C-suites trying to figure this out, because they're looking at this and saying, we know we're going up against Sovaldi and Harvoni, which are incredibly efficacious drugs with solid safety profiles. We think we can match or at least come up similarly to them on those two things. So then, how do we differentiate to make sure that we're able to win the market share away from them? And the next logical choice, then, would be on price. Can I battle on price? Can I undercut them, still make a nice profit for my investors, and capture a bulk of the market share?
Harjes: One strategic way that companies can do this is by negotiating directly with the PBMs to get preferred access to their formularies, which essentially blocks out your competition, if your drug is listed on, say, Express Scripts' preferred formulary and your competition isn't.
Campbell: Right. And that's why the Viekira Pak, which was AbbVie's first hepatitis C drug, when that came out, I think it won approval at the end of 2014, maybe launched in 2015. When they won approval, what they decided to do is, we can't necessarily beat Gilead's drugs on these other things like efficacy and safety. But what we can do is offer a bargain-basement price to Express Scripts, and basically get all of the business that way. And that's exactly what ended up happening. I think Sovaldi was priced at $84,000 for the treatment, I think Harvoni was $94,000, and Viekira Pak's wholesale acquisition cost came in around $83,500, but their net cost was probably much, much lower than that. And of course, that then forces Gilead to have to compete on price and lower their prices. And then when Merck's drug came out, compete again. And then, fast forward to 2017 with AbbVie's most recent drug that just launched, and I think that drug is priced at less than $30,000 for an eight-week course of treatment.
Harjes: And this is why, when you're looking at Gilead Sciences' results, you see hepatitis C sales falling off a cliff. Not only are they treating patients and curing them, which effectively makes your market smaller and smaller, but this price battle has made margins so tight for all of these companies that the market is not nearly the size that it once was.
Campbell: Right, a smaller market. And then, of course, competing on price to try and maintain market share, driving down the revenue on the unit volume that you are driving out the door. I think, from an investor's standpoint, you're looking at it and you have to recognize that drugs aren't your normal thing. When you're looking at this industry and investing in this industry for the first time, one of the things you have to realize right out of the gate is, this isn't like building a widget and saying, "I'm building a widget and then I'm going to mark it up 15%, and that's going to be my profit margin." 90% of the drugs are going to fail in your clinical trials, so you need to not only price for the cost to produce that drug once it wins approval, but you need to absorb the cost on all your failed drugs, and you need to price it to be able to fund future development of whatever the next innovative treatment is that you're going to launch.
Harjes: And of course, all the way, you have to be battling the public outcry about drug pricing. So, for sure, this is something that drug makers and doctors, payers, pretty much everybody in this country, is thinking about, is drug pricing.
But, our fourth and final factor of competition is one that I don't think is really thought about as much, and this is the convenience factor.
Campbell: Right. And it actually dovetails into these other things pretty well. If you can make a drug more convenient to take -- and you can define convenience as, say, the dosing schedule is more favorable, or the time to take the drug, if it's an infusion drug, shrinks. Then, maybe you can eliminate some of the side effects that come along with taking the drug, and possibly carve out some costs that are associated with it. I was thinking this past week; you and I were talking before the show about what we're seeing going on right now in the ongoing battle for market share among PD-1 cancer treatments. That's been an absolute brawl since these drugs won approval in 2014. Bristol-Myers' Opdivo and Merck & Co's Keytruda.
Harjes: I'm so glad that we're talking about the PD-1 battle in an episode about competition, because this has been one of the most interesting brawls to watch over the past many years. Before we dive into the PD-1 battle, I do want to go back and emphasize the point that you made about convenience being a factor that plays into all of the other three that we talked about, efficacy, safety and price. You were completely right about safety lowering that side effect profile. Price, I also agree, if you're treating people less often, then you're bringing down all sorts of costs, from the direct costs to even less direct costs like time spent in a hospital or fewer office visits, even something like fewer disposables for whatever is used in the delivery of the drug itself.
I'll also add one more, which is how it plays into efficacy. Real life adherence is kind of tough. And sometimes you'll find, in the actual data for a drug that's on the market, it's not as effective as it was in trials. And a huge part of that is because people aren't good at following directions. So, if a drug is completely burdensome to take on the prescribed schedule, people might not be very good at following that schedule, and that can minimize the efficacy of the drug itself. If you can make it more convenient to take, you're decreasing the chance that non-compliance is going to mess with your efficacy.
Campbell: Absolutely. That's an awesome point, Kristine!
Harjes: All that being said, PD-1s. I'm going to kick it to you for this one, Todd.
Campbell: OK. It's probably important to have a little background on what PD-1s are. We've talked about it in the past. It's a checkpoint protein. In immune systems, on T cells, what oftentimes can happen with cancer is, they'll hijack a mechanism that basically flips a switch on that PD-1 protein and tells the T-cell, "Don't attack me, I'm a healthy cell." So, by inhibiting these PD-1s, what they do is inhibit the activity of PD-1, they basically remove or eliminate the ability for the cancer cell to hijack that mechanism.
Harjes: Yeah. Bristol and Merck had been neck-and-neck in developing these two types of drugs for quite a while. Eventually, it came to look like Keytruda was probably pulling ahead, specifically in first-line lung cancer, which is an enormous indication. We're now waiting for some interim data to see if maybe Opdivo can catch up here.
One way in which Opdivo was able to get some pretty good results recently was just yesterday when the FDA approved a four-week dosing for Opdivo. Previously, it had been dosed every two weeks. So, going from every two weeks to every four weeks is doubling the convenience, essentially. For reference, Keytruda is dosed every three weeks. This will be for a majority of its approved indications, and that includes melanoma and second-line lung cancer and bladder cancer. Right now, it's the only PD-1 drug, and there are a lot of them out there besides just the two that we're talking about, that's approved for a four-week dosing schedule.
Campbell: Yeah. This is really a fascinating development. People are going to have to watch the next couple of quarters to see whether or not Opdivo starts to get back some of its mojo. You mentioned that Keytruda had won approval in first-line use in non-small lung cancer. That basically caused sales of Keytruda to skyrocket. And Opdivo sales in the U.S. have pretty much flatlined since then because you're using Keytruda now ahead of Opdivo, you're using Keytruda in the first-line setting and Opdivo isn't used in the first line setting. So, right now, Bristol-Myers' management is saying, how do we make sure that we sure up the market share that we do have in these later lines of treatment until we know that we can actually compete in the first line? And there's opportunity that they're exploring to be able to do that, but that's not approved yet.
So, you look at it and say, if I can make this more convenient to the cancer infusion centers where these are being dosed, maybe I can make sure that I'm solidifying my relationship with those places and this drug continues to get used instead of Keytruda. That will be very interesting, to see how this plays out over the next couple of quarters. As you mentioned, Opdivo was every two weeks, and it was a one-hour infusion. Now, it can be either every two weeks or every four weeks for a half-hour infusion. Now, that infusion time matches Keytruda. But like you mentioned, the four-week dosing schedule is better than Keytruda's three-week.
Harjes: Yeah. If you look at the incentives from the perspective of these infusion centers, this looks pretty favorable, that you have drugs that take the same amount of time to do the infusion, but one of them now has to be done less frequently. That's a good thing. Some analysts are saying that this could help it expand this into the maintenance and adjuvant therapy settings. This is yet another example in this ferocious battle between Keytruda and Opdivo, where one drug is largely ahead and the other one starts to catch up. It's really just been fascinating to watch.
I believe we did an entire episode on this battle about a year ago, if I'm remembering the timeline correctly. Any listeners that are interested in some of the details about the development of these two drugs and how the situation came to be the way it is today, shoot us a note at industryfocus@fool.com and I'd be happy to send that episode along.
Campbell: Yeah. One final takeaway, too, from my end, as to why we're spending time talking about this, Opdivo's sales in the fourth quarter alone were $1.36 billion. Keytruda's in the fourth quarter were $1.3 billion. So, they are literally neck and neck.
Harjes: But the growth rates are totally different, as you alluded to earlier. Opdivo's Q4 sales were only up 4% year over year, vs. Keytruda's, which were up 169%. So, for two nominal numbers that are fairly similar, the growth rates are totally different. But this battle is clearly not over.
We are wrapping up for today. I hope you guys enjoyed this episode on competition and wish me some luck in the Foolympics. We're going through the end of this week. Currently, my country is in first place. I'm very excited, hoping to keep it that way. As always, 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 the marvelous Austin Morgan. For Todd Campbell, I'm Kristine Harjes. Thanks for listening and Fool on!
Kristine Harjes owns shares of Gilead Sciences and Johnson & Johnson. Todd Campbell owns shares of 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. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this episode of The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes is joined by Motley Fool contributor Todd Campbell to discuss how efficacy, safety, price, and convenience affect sales at top companies, including Gilead Sciences (NASDAQ: GILD) , AbbVie (NYSE: ABBV) , and Bristol-Myers Squibb (NYSE: BMY) . That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. Campbell: Right, AbbVie and Merck , both of them. | In this episode of The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes is joined by Motley Fool contributor Todd Campbell to discuss how efficacy, safety, price, and convenience affect sales at top companies, including Gilead Sciences (NASDAQ: GILD) , AbbVie (NYSE: ABBV) , and Bristol-Myers Squibb (NYSE: BMY) . That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. Campbell: Right, AbbVie and Merck , both of them. | In this episode of The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes is joined by Motley Fool contributor Todd Campbell to discuss how efficacy, safety, price, and convenience affect sales at top companies, including Gilead Sciences (NASDAQ: GILD) , AbbVie (NYSE: ABBV) , and Bristol-Myers Squibb (NYSE: BMY) . That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. Campbell: Right, AbbVie and Merck , both of them. | In this episode of The Motley Fool's Industry Focus: Healthcare , host Kristine Harjes is joined by Motley Fool contributor Todd Campbell to discuss how efficacy, safety, price, and convenience affect sales at top companies, including Gilead Sciences (NASDAQ: GILD) , AbbVie (NYSE: ABBV) , and Bristol-Myers Squibb (NYSE: BMY) . That won approval in 2004, around the same time as another competing drug in the same indication from Johnson & Johnson and AbbVie, which we've talked about on the show before, called Imbruvica. Campbell: Right, AbbVie and Merck , both of them. |
25622.0 | 2018-03-09 00:00:00 UTC | Zacks Value Investor Highlights: Diageo, Mylan, Sony, AbbVie and Walgreens | ABBV | https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-diageo-mylan-sony-abbvie-and-walgreens-2018-03-09 | nan | nan | For Immediate Release
Chicago, IL - March 9, 2018 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
( https://www.zacks.com/stock/news/294965/want-to-be-a-buy-and-hold-investor-3-strategies )
Want to Be a Buy-and-Hold Investor? 3 Strategies
Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don't know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors who do have the guts, buy and hold investing can pay off with big returns.
3 Strategies for Buy and Hold Investing
1. Start Young. The longer you have to invest, the more you'll reap the rewards of compounding.
2. Diversify. Don't just buy one stock or even two. What if one of them is a Bear Stearns or a Wachovia? Spread out your risk.
3. Don't Get Fancy. You don't need the latest fad stock or biotech wonder. Stick with the basics. Buy companies that have solid fundamentals and strong brands.
Stocks to Buy for a Buy and Hold Portfolio Today
When you read about successful buy and hold investors, they're almost always invested in companies you've heard of.
Therefore, Tracey screened for big cap companies, with Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold), which also had a value component of a P/E under the average of the S&P 500 which is about 17.5.
1. Diageo PLCDEO isn't technically a value stock. It has a forward P/E of 20. But it's expected to grow earnings by 18% in fiscal 2018. The maker of Guinness, Baileys and Johnnie Walker also pays a dividend currently yielding a healthy 2.6%.
2. Mylan N.V.MYL is dirt cheap. This drug company trades with a forward P/E of just 7.8. It also has earnings growth which is expected to be 17.1% in 2018.
3. SonySNE is big in entertainment but is also moving into the self-driving car market as it's working on the sensors. It's a value stock, with a forward P/E of 13.1. Sony also pays a dividend, currently yielding 0.3%.
4. AbbVieABBV is a rare growth and value stock. This biopharmaceutical has a forward P/E of 15.4 yet is expected to grow earnings by 33.9% in 2018. As an extra bonus, shareholders also get a dividend yielding 2.5%.
5. Walgreens BootsWBA has pulled back off its highs so it's cheaper than in January 2018. It trades with a forward P/E of 12.2. It's closing on the Rite Aid deal in 2018 which will add another 1600 stores. Earnings are expected to rise 13.5% in fiscal 2018.
What else should you know about being a buy and hold investor?
Find out in this week's podcast.
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
Sony Corp Ord (SNE): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Mylan N.V. (MYL): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report
To read this article on Zacks.com click 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. | AbbVieABBV is a rare growth and value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV is a rare growth and value stock. For Immediate Release Chicago, IL - March 9, 2018 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVieABBV is a rare growth and value stock. 3 Strategies Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. | AbbVieABBV is a rare growth and value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. 3 Strategies Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. |
25623.0 | 2018-03-09 00:00:00 UTC | Is Big Pharma Using Corporate Tax Savings to Lower Drug Costs? | ABBV | https://www.nasdaq.com/articles/is-big-pharma-using-corporate-tax-savings-to-lower-drug-costs-2018-03-09 | nan | nan | With the passing of the new tax bill, the corporate tax rate has come down from 35% to 21% which is likely to boosts profit margins. Moreover, the cash repatriation window allowed in the bill will help companies to bring in cash stashed in foreign locations at a one-time tax rate of 10%, leaving these companies with extra spending power.
Most big pharma companies discussed their plans to use the extra cash they save from the new tax bill at their fourth-quarter conference calls. The extra cash will mostly be invested in capital expenditures, products/pipeline, in-licensing or acquisition deals or rewarding shareholders through higher dividends and share buybacks. However, the majority of companies did not mention any effort regarding lowering of prescription drug costs.
Last week, Senator Tina Smith in letters to five big pharma companies, expressed concern about how big pharma companies plan to used billions of dollars they will save from the tax cut offered under the tax bill passed in December 2017. She is concerned about the fact that the companies are favoring investors instead of using the savings to bring down prescription drug costs. Major life-saving drugs which are protected by patents are steeply priced. Thus, making these drugs affordable will help consumers, as it will lower their medical costs.
The Senator has sent letters to CEOs of Pfizer Inc. PFE , Merck & Co., Inc. MRK , Johnson & Johnson JNJ , AbbVie Inc. ABBV and Abbott Laboratories ABT to provide the details of how they intend to utilize major savings from the tax overhaul.
The prices of major prescription drugs have skyrocketed over the past years, pinching hard U.S. citizens as their medical bills have soared. Moreover, the government also has to pay higher costs for the drugs that are covered under Medicare. The concern of the senator is thus justified. A move to restrict the use of tax savings for boosting shareholders will be a welcome move for consumers.
Moreover, large players from every other industry have similar plans, which have undercut President Donald Trump's plans to create jobs and boost wages.
Senator Smith is also working toward making cheaper generic drugs available in the market faster by introducing a new legislation, as reported by KDAL .
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
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Pfizer Inc. (PFE): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
Merck & Company, Inc. (MRK): Free Stock Analysis Report
AbbVie Inc. (ABBV): 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. | The Senator has sent letters to CEOs of Pfizer Inc. PFE , Merck & Co., Inc. MRK , Johnson & Johnson JNJ , AbbVie Inc. ABBV and Abbott Laboratories ABT to provide the details of how they intend to utilize major savings from the tax overhaul. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Most big pharma companies discussed their plans to use the extra cash they save from the new tax bill at their fourth-quarter conference calls. | The Senator has sent letters to CEOs of Pfizer Inc. PFE , Merck & Co., Inc. MRK , Johnson & Johnson JNJ , AbbVie Inc. ABBV and Abbott Laboratories ABT to provide the details of how they intend to utilize major savings from the tax overhaul. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Large Cap Pharmaceuticals Industry 5YR % Return Large Cap Pharmaceuticals Industry 5YR % Return Don't Even Think About Buying Bitcoin Until You Read This The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The Senator has sent letters to CEOs of Pfizer Inc. PFE , Merck & Co., Inc. MRK , Johnson & Johnson JNJ , AbbVie Inc. ABBV and Abbott Laboratories ABT to provide the details of how they intend to utilize major savings from the tax overhaul. Last week, Senator Tina Smith in letters to five big pharma companies, expressed concern about how big pharma companies plan to used billions of dollars they will save from the tax cut offered under the tax bill passed in December 2017. | The Senator has sent letters to CEOs of Pfizer Inc. PFE , Merck & Co., Inc. MRK , Johnson & Johnson JNJ , AbbVie Inc. ABBV and Abbott Laboratories ABT to provide the details of how they intend to utilize major savings from the tax overhaul. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Last week, Senator Tina Smith in letters to five big pharma companies, expressed concern about how big pharma companies plan to used billions of dollars they will save from the tax cut offered under the tax bill passed in December 2017. |
25624.0 | 2018-03-08 00:00:00 UTC | Want to be a Buy and Hold Investor? 3 Strategies | ABBV | https://www.nasdaq.com/articles/want-be-buy-and-hold-investor-3-strategies-2018-03-08 | nan | nan | (0: 30 ) - Buy and Hold Value Investing
(3: 30 ) - Examples of Successful Long Term Retail Investors
(7: 35 ) - Buy and Hold Strategies
(11: 45 ) - Tracey's Top Stock Picks
(17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA
Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don't know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors who do have the guts, buy and hold investing can pay off with big returns.
3 Strategies for Buy and Hold Investing
1. Start Young. The longer you have to invest, the more you'll reap the rewards of compounding.
2. Diversify. Don't just buy one stock or even two. What if one of them is a Bear Stearns or a Wachovia? Spread out your risk.
3. Don't Get Fancy. You don't need the latest fad stock or biotech wonder. Stick with the basics. Buy companies that have solid fundamentals and strong brands.
Stocks to Buy for a Buy and Hold Portfolio Today
When you read about successful buy and hold investors, they're almost always invested in companies you've heard of.
Therefore, Tracey screened for big cap companies, with Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold), which also had a value component of a P/E under the average of the S&P 500 which is about 17.5.
1. Diageo PLC DEO isn't technically a value stock. It has a forward P/E of 20. But it's expected to grow earnings by 18% in fiscal 2018. The maker of Guinness, Baileys and Johnnie Walker also pays a dividend currently yielding a healthy 2.6%.
2. Mylan N.V. MYL is dirt cheap. This drug company trades with a forward P/E of just 7.8. It also has earnings growth which is expected to be 17.1% in 2018.
3. Sony SNE is big in entertainment but is also moving into the self-driving car market as it's working on the sensors. It's a value stock, with a forward P/E of 13.1. Sony also pays a dividend, currently yielding 0.3%.
4. AbbVie ABBV is a rare growth and value stock. This biopharmaceutical has a forward P/E of 15.4 yet is expected to grow earnings by 33.9% in 2018. As an extra bonus, shareholders also get a dividend yielding 2.5%.
5. Walgreens Boots WBA has pulled back off its highs so it's cheaper than in January 2018. It trades with a forward P/E of 12.2. It's closing on the Rite Aid deal in 2018 which will add another 1600 stores. Earnings are expected to rise 13.5% in fiscal 2018.
What else should you know about being a buy and hold investor?
Find out in this week's podcast.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
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
Sony Corp Ord (SNE): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Mylan N.V. (MYL): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): 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. | (0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. AbbVie ABBV is a rare growth and value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. | (0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV is a rare growth and value stock. | (0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV is a rare growth and value stock. | (0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. AbbVie ABBV is a rare growth and value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. |
25625.0 | 2018-03-08 00:00:00 UTC | Want to be a Buy and Hold Investor? 3 Strategies | ABBV | https://www.nasdaq.com/articles/want-be-buy-and-hold-investor-3-strategies-2018-03-08-0 | nan | nan | Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don't know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors who do have the guts, buy and hold investing can pay off with big returns.
3 Strategies for Buy and Hold Investing
1. Start Young. The longer you have to invest, the more you'll reap the rewards of compounding.
2. Diversify. Don't just buy one stock or even two. What if one of them is a Bear Stearns or a Wachovia? Spread out your risk.
3. Don't Get Fancy. You don't need the latest fad stock or biotech wonder. Stick with the basics. Buy companies that have solid fundamentals and strong brands.
Stocks to Buy for a Buy and Hold Portfolio Today
When you read about successful buy and hold investors, they're almost always invested in companies you've heard of.
Therefore, Tracey screened for big cap companies, with Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold), which also had a value component of a P/E under the average of the S&P 500 which is about 17.5.
1. Diageo PLC DEO isn't technically a value stock. It has a forward P/E of 20. But it's expected to grow earnings by 18% in fiscal 2018. The maker of Guinness, Baileys and Johnnie Walker also pays a dividend currently yielding a healthy 2.6%.
2. Mylan N.V. MYL is dirt cheap. This drug company trades with a forward P/E of just 7.8. It also has earnings growth which is expected to be 17.1% in 2018.
3. Sony SNE is big in entertainment but is also moving into the self-driving car market as it's working on the sensors. It's a value stock, with a forward P/E of 13.1. Sony also pays a dividend, currently yielding 0.3%.
4. AbbVie ABBV is a rare growth and value stock. This biopharmaceutical has a forward P/E of 15.4 yet is expected to grow earnings by 33.9% in 2018. As an extra bonus, shareholders also get a dividend yielding 2.5%.
5. Walgreens Boots WBA has pulled back off its highs so it's cheaper than in January 2018. It trades with a forward P/E of 12.2. It's closing on the Rite Aid deal in 2018 which will add another 1600 stores. Earnings are expected to rise 13.5% in fiscal 2018.
What else should you know about being a buy and hold investor?
Find out in this week's podcast.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
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
Sony Corp Ord (SNE): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Mylan N.V. (MYL): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): 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 ABBV is a rare growth and value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Breaking News: Cryptocurrencies Now Bigger than Visa The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV is a rare growth and value stock. Stocks to Buy for a Buy and Hold Portfolio Today When you read about successful buy and hold investors, they're almost always invested in companies you've heard of. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV is a rare growth and value stock. But for those investors who do have the guts, buy and hold investing can pay off with big returns. | AbbVie ABBV is a rare growth and value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Do you want to be a buy and hold investor but just don't know where to start? |
25626.0 | 2018-03-08 00:00:00 UTC | Biotech Stock Round Up: Regeneron Submits sBLA, Biogen to Withdraw Zinbryta | ABBV | https://www.nasdaq.com/articles/biotech-stock-round-up%3A-regeneron-submits-sbla-biogen-to-withdraw-zinbryta-2018-03-08 | nan | nan | Key highlights of the week include FDA's acceptance of Regeneron/Sanofi's Dupixent sBLA for asthma, Biogen/AbbVie's decision to withdraw multiple sclerosis drug, Zinbryta, due to risk of liver failure and Celgene's completion of Juno acquisition.
Recap of the Week's Most Important Stories
Regeneron/Sanofi's Dupixent sBLA for Asthma Accepted by FDA : Regeneron REGN and partner Sanofi (SNY) announced that the FDA has accepted for review the supplemental Biologics License Application (sBLA) of Dupixent (dupilumab) as an add-on maintenance treatment in adults and adolescents (12 years of age or older) with moderate-to-severe asthma. The FDA has set a target action date of Oct 20, 2018 per the Prescription Drug User Fee Act. The sBLA was supported by results from the three pivotal trials from the LIBERTY ASTHMA clinical development program. Sanofi and Regeneron are studying dupilumab in a broad range of clinical development programs for diseases driven by Type 2 inflammation, including pediatric atopic dermatitis (phase III), nasal polyps (phase III) and eosinophilic esophagitis (phase III).
(Read more: FDA Accepts Regeneron/Sanofi's Dupixent sBLA for Asthma)
Regeneron is a Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today's Zacks #1 Rank stocks here .
Biogen/AbbVie To Withdraw Zinbryta : Biogen BIIB and partner AbbVie ABBV announced that both the companies will withdraw multiple sclerosis drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. Both companies decided to withdraw the drug on grounds of the complex and evolving benefit/risk profile of Zinbryta, given the limited number of patients being treated. The drug is currently available in Europe and United States, Switzerland, Canada and Australia. While AbbVie distributes Zinbryta in the United States, Biogen distributes the drug in ex-U.S. markets. The European regulatory authorities provisionally restricted the use of Zinbryta in adult patients with highly active relapsing disease despite a full and adequate course of treatment with at least one DMT or with rapidly evolving severe relapsing MS who are unsuitable for treatment with other DMTs following the report of a case of fatal fulminant liver failure, as well as four cases of serious liver injury.
Gilead Reports New Data on Biktarvy : Gilead GILD announced encouraging results at 48 weeks from a phase III study (Study 1961) among 470 virologically suppressed adult women with HIV infection at the International Workshop on HIV and Women and at the 2018 Conference on Retroviruses and Opportunistic Infections ("CROI") in Boston (Poster 2539). Biktarvy was found to be statistically non-inferior to regimens containing a bPI or boosted elvitegravir and demonstrated no treatment-emergent resistance at 48 weeks in the ongoing study. Biktarvy, Gilead's latest triple therapy, was approved by the FDA in February 2018 as a complete regimen for the treatment of HIV-1 infection in adults who have no antiretroviral treatment history.
(Read more: Gilead Announces Positive Data on New HIV Therapy Biktarvy)
Celgene Completes Juno Acquisition : Celgene Corporation CELG announced that it has completed the previously-announced acquisition of Juno Therapeutics, Inc for $9 billion Juno focuses on the development of CAR (chimeric antigen receptor) T and TCR (T cell receptor) therapeutics with a promising pipeline evaluating multiple targets and cancer indications. The acquisition will add JCAR017 (lisocabtagene maraleucel; liso-cel) to Celgene's lymphoma pipeline. JCAR017 is a best-in-class CD19-directed CAR-T currently in a pivotal program for relapsed and/or refractory diffuse large B-cell lymphoma (DLBCL). The candidate is expected to obtain regulatory approval in the United States in 2019 with potential global peak sales of approximately $3 billion.
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
The NASDAQ Biotechnology Index gained 4.52% over the last five trading sessions. Among major biotech stocks, Regeneron gained 3.93%. Over the last six months, Celgene lost 36.4% while Vertex gained 6.7% (see the last biotech stock roundup here: Biotech Stock Round Up: Celgene Suffers Setback, Gilead Teams Up with Sangamo) .
What's Next in the Biotech World?
Stay tuned for more regulatory and pipeline updates.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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Sanofi (SNY): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Celgene Corporation (CELG): Free Stock Analysis Report
Biogen Inc. (BIIB): 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. | Key highlights of the week include FDA's acceptance of Regeneron/Sanofi's Dupixent sBLA for asthma, Biogen/AbbVie's decision to withdraw multiple sclerosis drug, Zinbryta, due to risk of liver failure and Celgene's completion of Juno acquisition. Biogen/AbbVie To Withdraw Zinbryta : Biogen BIIB and partner AbbVie ABBV announced that both the companies will withdraw multiple sclerosis drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. While AbbVie distributes Zinbryta in the United States, Biogen distributes the drug in ex-U.S. markets. | Key highlights of the week include FDA's acceptance of Regeneron/Sanofi's Dupixent sBLA for asthma, Biogen/AbbVie's decision to withdraw multiple sclerosis drug, Zinbryta, due to risk of liver failure and Celgene's completion of Juno acquisition. Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen/AbbVie To Withdraw Zinbryta : Biogen BIIB and partner AbbVie ABBV announced that both the companies will withdraw multiple sclerosis drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Key highlights of the week include FDA's acceptance of Regeneron/Sanofi's Dupixent sBLA for asthma, Biogen/AbbVie's decision to withdraw multiple sclerosis drug, Zinbryta, due to risk of liver failure and Celgene's completion of Juno acquisition. Biogen/AbbVie To Withdraw Zinbryta : Biogen BIIB and partner AbbVie ABBV announced that both the companies will withdraw multiple sclerosis drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. | Key highlights of the week include FDA's acceptance of Regeneron/Sanofi's Dupixent sBLA for asthma, Biogen/AbbVie's decision to withdraw multiple sclerosis drug, Zinbryta, due to risk of liver failure and Celgene's completion of Juno acquisition. Biogen/AbbVie To Withdraw Zinbryta : Biogen BIIB and partner AbbVie ABBV announced that both the companies will withdraw multiple sclerosis drug, Zinbryta voluntarily on a worldwide basis due to risk of liver injury. While AbbVie distributes Zinbryta in the United States, Biogen distributes the drug in ex-U.S. markets. |
25627.0 | 2018-03-06 00:00:00 UTC | Profit From Share Buyback Boom With These ETFs | ABBV | https://www.nasdaq.com/articles/profit-share-buyback-boom-these-etfs-2018-03-06 | nan | nan | President Donald Trump's biggest tax overhaul in decades has raised the appeal of buyback ETFs. This is especially true as a massive $1.4-trillion tax cut and the repatriation policy have prompted companies from almost every sector to boost their multi-billion dollar share buyback program this year.
Notably, approximately $2.6 trillion in American corporate profits are sitting in overseas bank accounts, about half of that being in cash. The new tax law encourages these companies to bring this cash back home at much reduced rates (read: How Will Tax Reform Affect Buyback and Dividend ETFs? ).
U.S. companies have announced $209 billion worth of share buyback since the beginning of this year, according to the latest report from Senate Democrats. A California-based research firm TrimTabs stated that the pace of buybacks had exploded in February to a record $153.7 billion from $59.9 billion in January. Among the largest share repurchases so far, Cisco CSCO has been on the forefront, with its additional $25 billion buyback plan. This was followed by $22.6 billion for Wells Fargo WFC , $15 billion for Pepsico PEP , $10 billion for Abbvie ABBV and $10 billion for Amgen AMGN .
Given this optimism, 2018 is expected to be the second-busiest year for buybacks since the bull market began in 2009 as U.S. companies are on track to return a record $1 trillion to their shareholders. An analyst at J.P. Morgan JPM expects companies on the S&P 500 index to buy back as much as $800 billion in shares of their own stock this year, representing a whopping jump of 51% (i.e. $300 billion) from $530 billion repurchased last year.
About $100 billion of additional buybacks is the result of the tax savings and stronger earnings while $200 billion will be generated from the repatriation bonanza. Another analyst at Goldman Sachs GS projects that buybacks will rise 23% this year to $650 billion (read: Top-Ranked Sector ETFs & Stocks From Top Industries ).
As a result, investors should take advantage of the ongoing boom in share buybacks through the following three ETFs:
SPDR S&P 500 Buyback ETF SPYB
This fund focuses on the 101 top companies in the S&P 500 with the highest buyback ratio in the last 12 months. It follows the S&P 500 Buyback Index, charging investors 35 bps in annual fees. From a sector look, financials and consumer discretionary take the largest share with 28.8% and 23.9% allocation, respectively, while information technology and healthcare round off the next spots. The product has a lower AUM of $15.7 million and trades in a paltry volume of around 3,000 shares a day on average (read: Buyback ETF Hits New 52-Week High ).
PowerShares Buyback Achievers Portfolio PKW
This ETF tracks the NASDAQ US Buyback Achievers Index, which comprises companies that have repurchased 5% or more of their common stock in the trailing 12 months. It holds 131 stocks in its basket and charges a higher annual fee of 63 bps. Here also, financials and consumer discretionary are the top two sectors, with at least 29% share each, closely followed by consumer staples (15.3%). PKW is the popular fund in the buyback space, managing an asset base of nearly $1.4 billion and trading in an average daily volume of 67,000 shares.
AdvisorShares Wilshire Buyback ETF TTFS
This is an actively managed fund that seeks to generate long-term capital appreciation by investing in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance. This approach results in a basket of 101 securities with financials and consumer discretionary as the top two sectors accounting for 19% of assets each. This was followed by industrials (18%), information technology (13%) and healthcare (13%). The product has amassed $113.7 million in its asset base while sees low volume of nearly 6,000 shares a day. The fund charges 90 bps in annual fees.
iShares U.S. Dividend and Buyback ETF DIVB
This fund offers exposure to a broad basket of 379 U.S. companies that return capital to shareholders by paying dividends or buying back their stock. Information technology, financials, consumer discretionary, health care and industrials are the top five sectors with double-digit exposure each. The ETF has newly debuted in the space and accumulated $6.5 million within three months. It trades in a paltry volume of under 7,000 shares a day on average and charges 25 bps in annual fees (read: What Makes iShares' Dividend and Buyback ETF Launch Timely? ).
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Wells Fargo & Company (WFC): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
ADVSR-WIL BY BK (TTFS): ETF Research Reports
PWRSH-BYBK ACHV (PKW): ETF Research Reports
SPDR-S&P500 BB (SPYB): ETF Research Reports
Amgen Inc. (AMGN): Free Stock Analysis Report
ISHR-US DIV BB (DIVB): 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. | This was followed by $22.6 billion for Wells Fargo WFC , $15 billion for Pepsico PEP , $10 billion for Abbvie ABBV and $10 billion for Amgen AMGN . Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report ADVSR-WIL BY BK (TTFS): ETF Research Reports PWRSH-BYBK ACHV (PKW): ETF Research Reports SPDR-S&P500 BB (SPYB): ETF Research Reports Amgen Inc. (AMGN): Free Stock Analysis Report ISHR-US DIV BB (DIVB): ETF Research Reports To read this article on Zacks.com click here. This is especially true as a massive $1.4-trillion tax cut and the repatriation policy have prompted companies from almost every sector to boost their multi-billion dollar share buyback program this year. | This was followed by $22.6 billion for Wells Fargo WFC , $15 billion for Pepsico PEP , $10 billion for Abbvie ABBV and $10 billion for Amgen AMGN . Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report ADVSR-WIL BY BK (TTFS): ETF Research Reports PWRSH-BYBK ACHV (PKW): ETF Research Reports SPDR-S&P500 BB (SPYB): ETF Research Reports Amgen Inc. (AMGN): Free Stock Analysis Report ISHR-US DIV BB (DIVB): ETF Research Reports To read this article on Zacks.com click here. iShares U.S. Dividend and Buyback ETF DIVB This fund offers exposure to a broad basket of 379 U.S. companies that return capital to shareholders by paying dividends or buying back their stock. | Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report ADVSR-WIL BY BK (TTFS): ETF Research Reports PWRSH-BYBK ACHV (PKW): ETF Research Reports SPDR-S&P500 BB (SPYB): ETF Research Reports Amgen Inc. (AMGN): Free Stock Analysis Report ISHR-US DIV BB (DIVB): ETF Research Reports To read this article on Zacks.com click here. This was followed by $22.6 billion for Wells Fargo WFC , $15 billion for Pepsico PEP , $10 billion for Abbvie ABBV and $10 billion for Amgen AMGN . An analyst at J.P. Morgan JPM expects companies on the S&P 500 index to buy back as much as $800 billion in shares of their own stock this year, representing a whopping jump of 51% (i.e. $300 billion) from $530 billion repurchased last year. | This was followed by $22.6 billion for Wells Fargo WFC , $15 billion for Pepsico PEP , $10 billion for Abbvie ABBV and $10 billion for Amgen AMGN . Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report ADVSR-WIL BY BK (TTFS): ETF Research Reports PWRSH-BYBK ACHV (PKW): ETF Research Reports SPDR-S&P500 BB (SPYB): ETF Research Reports Amgen Inc. (AMGN): Free Stock Analysis Report ISHR-US DIV BB (DIVB): ETF Research Reports To read this article on Zacks.com click here. An analyst at J.P. Morgan JPM expects companies on the S&P 500 index to buy back as much as $800 billion in shares of their own stock this year, representing a whopping jump of 51% (i.e. $300 billion) from $530 billion repurchased last year. |
25628.0 | 2018-03-06 00:00:00 UTC | Gilead Announces Positive Data on New HIV Therapy Biktarvy | ABBV | https://www.nasdaq.com/articles/gilead-announces-positive-data-on-new-hiv-therapy-biktarvy-2018-03-06 | nan | nan | Gilead Sciences, Inc.GILD announced encouraging 48-weeks results from a phase III study (Study 1961) among 470 virologically suppressed adult women with HIV infection at the International Workshop on HIV and Women and at the 2018 Conference on Retroviruses and Opportunistic Infections ("CROI") in Boston (Poster 2539).
The study evaluated the efficacy and safety of switching from a boosted protease inhibitor (bPI) or boosted elvitegravir-containing regimen to Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg), a once-daily single tablet regimen ("STR").
Biktarvy was found to be statistically non-inferior to regimens containing a bPI or boosted elvitegravir and demonstrated no treatment-emergent resistance at 48 weeks in the ongoing study.
The study data showed that women who switched to Biktarvy maintained high levels of viral suppression, comparable to those who remained on a baseline regimen of either Genvoya, Stribild or ATV+RTV+FTC/TDF. Moreover, none of the participants on Biktarvy developed treatment-emergent resistance.
Biktarvy, Gilead's latest triple therapy, was approved by the FDA in February 2018 as a complete regimen for the treatment of HIV-1 infection in adults who have no antiretroviral treatment history or to replace the current antiretroviral regimen in those who are virologically suppressed (HIV-1 RNA
Meanwhile, the HIV franchise continues to gain traction on the back of rapid adoption of TAF-based regimens in the United States and EU. The TAF-based regimens now represent 62% of total Gilead HIV prescription volume following the launch of Genvoya along with Odefsey and Descovy in 2016.
A marketing authorization application for Biktarvy is under review in the European Union. Meanwhile, additional clinical trials of Biktarvy are ongoing, including a study in adolescents and children with HIV. The approval of this new HIV therapy will pose stiff competition to GlaxoSmith's GSK existing therapies, Tivicay and Triumeq.
Gilead's stock has lost 4.8% in the last six months compared with the industry's decline of 9.8%.
Gilead is banking on its HIV franchise which has been under tremendous pressure for a while due to lower patient starts and increased competition from AbbVie's ABBV therapies.
Zacks Rank & Key Pick
Gilead currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the health care sector is Regeneron Pharmaceuticals, Inc. REGN which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Regeneron's earnings per share estimates have moved up from $17.13 to $18.65 and from $20.37 to $21.56 for 2018 and 2019, respectively in the last 30 days. The company delivered a positive earnings surprise in three of the last four quarters, with an average beat of 9.15%.
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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. | Gilead is banking on its HIV franchise which has been under tremendous pressure for a while due to lower patient starts and increased competition from AbbVie's ABBV therapies. Click to get this free report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. The study data showed that women who switched to Biktarvy maintained high levels of viral suppression, comparable to those who remained on a baseline regimen of either Genvoya, Stribild or ATV+RTV+FTC/TDF. | Click to get this free report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead is banking on its HIV franchise which has been under tremendous pressure for a while due to lower patient starts and increased competition from AbbVie's ABBV therapies. Gilead Sciences, Inc.GILD announced encouraging 48-weeks results from a phase III study (Study 1961) among 470 virologically suppressed adult women with HIV infection at the International Workshop on HIV and Women and at the 2018 Conference on Retroviruses and Opportunistic Infections ("CROI") in Boston (Poster 2539). | Click to get this free report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead is banking on its HIV franchise which has been under tremendous pressure for a while due to lower patient starts and increased competition from AbbVie's ABBV therapies. Gilead Sciences, Inc.GILD announced encouraging 48-weeks results from a phase III study (Study 1961) among 470 virologically suppressed adult women with HIV infection at the International Workshop on HIV and Women and at the 2018 Conference on Retroviruses and Opportunistic Infections ("CROI") in Boston (Poster 2539). | Gilead is banking on its HIV franchise which has been under tremendous pressure for a while due to lower patient starts and increased competition from AbbVie's ABBV therapies. Click to get this free report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Biktarvy was found to be statistically non-inferior to regimens containing a bPI or boosted elvitegravir and demonstrated no treatment-emergent resistance at 48 weeks in the ongoing study. |
25629.0 | 2018-03-05 00:00:00 UTC | Here's My Top Stock to Buy in March | ABBV | https://www.nasdaq.com/articles/heres-my-top-stock-buy-march-2018-03-05 | nan | nan | March is known for quite a few things. There's college basketball's "March madness." Julius Caesar was assassinated on the Ides of March. March flowers, of course, bring April showers. St. Patrick's Day brings out a lot of green clothes. And in much of the U.S., we have the beginning of daylight-saving time, when everyone has to remember to "spring forward" by setting clocks one hour ahead.
I think there's one other thing for which March should be known: a time to buy great stocks. Scientifically speaking, March is the best month of all to buy stocks. OK, I made that up. However, March is a great month to buy stocks, because for long-term investors, the sooner you buy a great stock, the more time you have to accumulate gains.
But what great stock to buy? Here's why AbbVie (NYSE: ABBV) is my top stock to buy in March.
Dividend
AbbVie stock is up more than 80% over the past 12 months and more than 15% so far this year. Some might ask, "Why not wait for AbbVie's share price to come down some and buy on the dip?" The answer is that you can't time the market. There's no way to know when AbbVie will have a dip -- or, perhaps more importantly, how far a dip might go.
There is one thing that you can time, though: when you can begin receiving AbbVie's dividend payments. If you buy the stock in March, you'll be eligible to get the pharmaceutical company's next dividend when it's paid on May 15. (Technically, anyone owning shares as of April 13 will receive the dividend, but why be a procrastinator?)
Believe me, you'll like AbbVie's dividend. The company recently increased its dividend payout by 35%, bringing the yield up to 3.25%. Dividend increases are a way of life at AbbVie. Since being spun off from parent Abbott Labs in 2013, the drugmaker has increased its dividend by a whopping 140%. Including the time that AbbVie was part of Abbott, the company has a track record of 46 consecutive years of dividend increases.
Growth
Dividends are good, but growth is great. AbbVie has definitely generated significant revenue and earnings growth in the past. Even better, that growth led to impressive total shareholder returns. In 2017, AbbVie ranked as the top big pharma stock in total shareholder return. It was the same story over the past three years and five years.
But what about future growth? There's more great news. Wall Street analysts project that AbbVie will increase earnings by an average annual rate of 17% over the next five years. They have solid reasons to be optimistic.
AbbVie's Humira claimed the title of top-selling drug in the world last year, with sales of $18.4 billion. The autoimmune-disease drug should bring in close to $21 billion in sales by 2020. Imbruvica, which AbbVie co-markets with Johnson & Johnson , made nearly $2.6 billion for AbbVie in 2017, an impressive 40% year-over-year jump. More strong growth should be in store for the cancer drug. New hepatitis C drug Mavyret appears likely to become the company's next blockbuster.
Rick Gonzalez, AbbVie's CEO, stated at a major healthcare conference in January that the company believes it will generate $35 billion in risk-adjusted non-Humira sales by 2025. Imbruvica and Mavyret will be key in making that happen, but so will AbbVie's pipeline. The company could have several new big winners on the way, including endometriosis and uterine fibroids drug elagolix, cancer drug Rova-T, and autoimmune disease drugs risankizumab and upadacitinib.
Value
You might glance at the AbbVie's trailing-12-month price-to-earnings ratio of 34.5 and think the stock is expensive. That's not the case. Actually, AbbVie looks like a pretty good bargain right now.
Remember that in investing, the future is more important than the past. Instead of looking at AbbVie's valuation based on past earnings, look at its stock price in proportion to the earnings that the company should generate. AbbVie's shares currently trade at only 13 times expected earnings. And if you factor in the solid growth prospects for the drugmaker over the next five years, AbbVie stock appears even more attractively valued.
Spring forward
Like any stock, buying AbbVie comes with risks. That's especially true for a pharmaceutical stock, with the prospects of clinical failures and regulatory rejections. It's possible that AbbVie could encounter pipeline setbacks. The company is also heavily dependent on sales of Humira. Any headwinds for the drug would definitely hurt AbbVie.
However, the company has a pipeline that is both deep and wide -- plenty of drugs in multiple therapeutic categories. AbbVie could weather a pipeline setback or two relatively well. The company also appears to be on the right track to reduce its dependence on Humira.
AbbVie has what I consider to be a fantastic combination of a high dividend yield, a strong track record of dividend increases, excellent growth prospects, and relatively low valuation. I'm not sure there's a stock on the market that checks off all of those boxes as well as AbbVie does. In my opinion, there's no better time than now to spring forward in buying this top pharma stock.
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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. | Including the time that AbbVie was part of Abbott, the company has a track record of 46 consecutive years of dividend increases. Rick Gonzalez, AbbVie's CEO, stated at a major healthcare conference in January that the company believes it will generate $35 billion in risk-adjusted non-Humira sales by 2025. And if you factor in the solid growth prospects for the drugmaker over the next five years, AbbVie stock appears even more attractively valued. | Including the time that AbbVie was part of Abbott, the company has a track record of 46 consecutive years of dividend increases. In 2017, AbbVie ranked as the top big pharma stock in total shareholder return. AbbVie has what I consider to be a fantastic combination of a high dividend yield, a strong track record of dividend increases, excellent growth prospects, and relatively low valuation. | Here's why AbbVie (NYSE: ABBV) is my top stock to buy in March. Dividend AbbVie stock is up more than 80% over the past 12 months and more than 15% so far this year. Some might ask, "Why not wait for AbbVie's share price to come down some and buy on the dip?" | And if you factor in the solid growth prospects for the drugmaker over the next five years, AbbVie stock appears even more attractively valued. Here's why AbbVie (NYSE: ABBV) is my top stock to buy in March. Dividend AbbVie stock is up more than 80% over the past 12 months and more than 15% so far this year. |
25630.0 | 2018-03-05 00:00:00 UTC | 10 Companies Making Huge Stock Buybacks in 2018 | ABBV | https://www.nasdaq.com/articles/10-companies-making-huge-stock-buybacks-2018-2018-03-05 | nan | nan | For almost two years, investors feared that the wave of stock buybacks that helped drive the market to record highs was finally coming to a close. Those quarterly buybacks peaked during the first quarter of 2016, plunged by the third quarter of that year, then simply leveled off at sub-par levels through the third quarter of 2017. That wave of easy upside looked like it was winding down.
However, with major tax breaks serving as a tailwind, U.S. corporations are looking to make such use of their cash again ... in spades. Between Jan. 1 and Feb. 20, constituents of the Standard & Poor's 500-stock index announced buyback programs totaling $173 billion. That's the largest buyback tally ever taken at this early point of the year, and bodes well for 2018's per-share profits.
Here's a rundown of this year's biggest buyback announcements thus far. These share-repurchase programs don't necessarily make these names worth owning, but they certainly bolster an already-bullish case for each company.
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Buyback commitment: $6 billion
While the Gold Rush of 1849 panned out to be a windfall for a few lucky prospectors, most of the miners who headed west seeking their fortune found nothing but disappointment. The only reliable way of making any money during the mania was supplying pickaxes and shovels to the people who didn't bring one.
That's how Applied Materials ( AMAT , $58.03) makes its money, in a sense. Rather than competing directly in a crowded semiconductor arena, it supplies equipment and materials used in the creation and manufacture of computer chips and cutting-edge display screens. That has enable AMAT to ride the evolution of computer technology.
The proof is in last quarter's results. Sales grew 28% year-over-year, prodding a 58% improvement in per-share profits. CEO Gary Dickerson believes his company will experience more of the same. Also, not only did Applied Materials double its quarterly dividend, but the board of directors approved $6 billion worth of stock repurchases. For perspective, Applied Materials only sports a market cap of $61 billion.
The growth trajectory and buyback were enough for Credit Suisse, which already rates AMAT at "Outperform," (equivalent of "Buy") to raise its target price on the stock from $72 to $74. Credit Suisse analyst Farhan Ahmad wasn't surprised to hear the buyback news, but did write that it materialized sooner than expected.
SEE ALSO: 20 of the Best Stocks You Probably Haven't Heard Of
Buyback commitment: $6 billion
The funny-named company isn't as unfamiliar as you think. Mondelez International ( MDLZ , $44.42) is the name behind Cadbury candies, Chips Ahoy and Oreo cookies, Ritz crackers, Trident chewing gum and more. Prior to 2012, you knew it better as Kraft Foods. Part of the old Kraft eventually went on to become Kraft-Heinz ( KHC ), but most of it became the Mondelez we know and love today.
Those who know the company - and the food business - know that profit margins are thin. The solutions are greater scale and more operational efficiency, and Mondelez is making headway on the latter. The company grew per-share profits 14% year-over-year to $2.14 in 2017, and analysts expect even more robust earnings expansion this year. Societe Generale analyst Warren Ackerman recently wrote, "North America issues in biscuits continue but categories and execution are improving, and innovation for FY18 is in place," adding that the company is doing particularly well in emerging markets.
The projected profit growth is expected to be strong enough to fund an extra $6 billion worth of stock buybacks, per a late-January announcement. That's in addition to the $13.7 billion stock-buyback plan that was already in place.
SEE ALSO: The 18 Best Stocks to Buy for 2018
Buyback commitment: $6 billion
Ebay ( EBAY , $42.95) and PayPal ( PYPL ) essentially grew up together, but they aren't the partners they used to be. In late January, the online auctioneer announced it would begin the development of an in-house payment solution for users of its e-commerce platform.
The move certainly doesn't boot PayPal as a payment option, but it does set the stage for lowered operational expenses and gives eBay more control over the purchasing process. Mizuho analyst Thomas McCrohan opined that the company "ultimately viewed PayPal as limiting their ability to create 'more seamless experiences.'"
While Baird analyst Colin Sebastian doesn't think PayPal's soon-to-be-weakened relationship with the e-commerce venue will make eBay leaps and bounds more profitable anytime soon, every little bit helps. And, that little profit boost will certainly help supply the additional $6 billion its board of directors recently authorized for share repurchases. Paired with the buyback program already in place, the company aims to repurchase $3.5 billion worth of EBAY shares this year, then do the same in 2019.
SEE ALSO: The 50 Best Stocks of All Time
Buyback commitment: $7.5 billion
Credit card middleman Visa ( V , $120.77) might get a bullish nudge thanks to a big buyback plan. Along with a solid earnings beat last quarter, the company unveiled a healthy $7.5 billion buyback plan.
While the previous quarter's numbers were compelling, the outlook wasn't. CFO Vasant Prabhu cautioned investors that the current quarter's revenue growth rate would be below the full-year average, by a couple of percentage points, no less. Given that last quarter's bottom line was only about $2.5 billion, that kind of spending plan doesn't leave the company much wiggle room, particularly knowing the holiday quarter is one of the best of the year. Consumers are spending in droves.
Not to worry. Visa has a little more than $9 billion worth of liquid funds in the bank, and it otherwise hasn't found anything better to do with it.
Buyback commitment: $8.6 billion
Alphabet ( GOOGL , $1,084.14) - the company formerly known as Google - isn't buying back exactly $8.6 billion worth of its stock. Its board of directors officially announced in early February that it has authorized the repurchase of $8,589,869,056 worth of outstanding shares.
While the dollar figure seems random, it's not. It's what mathematicians call a "perfect number," which is simply a positive integer exactly equal to the sum of all of its potential divisors. (If that means nothing to you non-mathematicians, here's a slightly more helpful explanation .)
In short, Alphabet is being cute with its buyback plan, and this isn't the first time. The company's 2015 share repurchase program was worth $5,099,019,513.59. That's the square root of 26 - the number of letters in the Alphabet - multiplied by $1 billion. Some of its stock sales were also based on mathematical oddities.
Whatever the case, taking $8.6 billion worth of shares out of the float will only help the already-bullish case for owning Alphabet.
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Buyback commitment: $10 billion
Leerink analyst Geoffrey Porges didn't pull any punches in his response to biopharma company Amgen's ( AMGN , $185.08) most recent quarterly results and the corresponding discussion from executives. He wrote, "Amgen's growth outlook is not exciting, and the pressure on its legacy products is only going to increase."
RBC Capital Markets analyst Kennen MacKay was just as tough on the company, noting the numbers were "financial engineering at its finest: buybacks and tax surprise offset quarter miss."
However, Porges goes on to concede, "but with its disciplined margin performance and continued cash flow, its business development preparedness is striking."
That might be the long way of saying that as much as the analysts may not want to, they can't not like Amgen's prospects. Even if much of its progress stems from financial engineering.
Whatever the case, look for more of the same financial engineering for the foreseeable future. The company's cash situation supports an additional $10 billion in stock buybacks that Amgen's board approved during the previous quarter.
SEE ALSO: 50 Dividend Stocks You Can Count On in 2018
Buyback commitment: $10 billion
Amgen isn't the only drugmaker sweetening the pot for shareholders. Abbvie ( ABBV , $115.04) is playing the same card, allocating $10 billion of its own to shrink the number of shares in its float. There is one difference: While Amgen's $10 billion commitment is in addition to its existing repurchase program, AbbVie's new buybacks plan replaces the previous one.
That's not the only way AbbVie is rewarding shareholders, however. The company also increased its quarterly dividend by 35% to 96 cents per share.
Some investors may think AbbVie is cutting it a little close. After all, the company is projected to earn $7.48 per share this year, and has only about $10 billion worth of cash and equivalents in the bank. Still, ABBV knows exactly what it has in its portfolio and pipeline. Humira still is a workhorse, boasting sales growth of 14% year-over-eyar, while Imbruvica logged a 39% increase in sales last quarter. Throw in the potential of Elagolix and Upadacitinib if and when they reach their full sales potential, and Abbvie shouldn't have any trouble funding its generosity.
SEE ALSO: 11 Best Health Care Stocks to Buy
Buyback commitment: $15 billion
If you were impressed by AbbVie's $10 billion buyback, beverage and snack giant PepsiCo ( PEP , $109.04) has one-upped the pharmaceutical company. In mid-February, PepsiCo earmarked $15 billion to repurchase shares, replacing a $12 billion buyback program that was set to expire in mid-2018.
Relative to its market cap of $157 billion, those stock buybacks will make a sizeable dent.
The PepsiCo story hasn't been a great one of late. Although it's still a cash cow, consumers are steering away from sugary drinks and unhealthy snacks, hitting the company right where it hurts. The deterioration has been slow and slight, though, spaced out across about five years. Pepsi still is raking in gobs of cash, however, earning nearly $5 billion last year alone to bring its cash hoard to almost $20 billion.
With no other opportunities on the table, the buyback and the 15% increase in its dividend is arguably the best use of that money.
SEE ALSO: 15 Consumer Staples Stocks You Can Count On
Buyback commitment: $22.6 billion
Wells Fargo ( WFC , $57.41) is fighting an uphill battle, and most people would agree that the bank's wounds are self-inflicted. The unauthorized opening of 3.5 million accounts has not only cost the company money and its reputation, but it also has prompted action from the Federal Reserve.
The Fed recently ruled that the bank cannot grow its asset base beyond its size as of the end of 2017 until the Fed decides Wells Fargo can be trusted again. That ultimately will crimp earnings growth, even if the organization continues to cull costs.
As Keefe, Bruyette & Woods analyst Brian Kleinhanzl put it, "The bottom line is that the C&D order will mean Wells will have a harder time maintaining market share and will have to compete more on price or credit terms versus peers, in our view."
Investors clearly are less than enthused.
One thing the Federal Reserve's restriction doesn't do, however, is prevent the company from improving per-share profits by reducing the number of outstanding shares. So, it's thinking big, setting aside a whopping $22.6 billion for 350 million shares' worth of stock buybacks. That's about 7% of Wells' total float.
SEE ALSO: 5 Stocks to Sell in This Unsure Market
Buyback commitment: $25 billion
Finally, networking giant Cisco ( CSCO , $44.06) gave its shareholders a wonderful Valentine's Day gift, packaged with its fiscal second-quarter report on Feb. 14. The company added another $25 billion worth of funding to the already-generous stock buyback plan in place.
Yes, Cisco can afford it.
This may be one of the most overlooked details about Cisco, but it quietly has built a financial war chest for years. As of the latest tally, the company was sitting on $67 billion worth of cash and liquid assets, much of it stashed overseas.
CEO Chuck Robbins has been wary of bringing it back into the United States, knowing it would incur a hefty tax bill when the company did so. But, with President Donald Trump's recently enacted tax overhaul easing the sting - and at the same time making it moot by imposing a tax liability on that money anyway - Cisco is using the opportunity to share some of that locked-up wealth.
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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 , $115.04) is playing the same card, allocating $10 billion of its own to shrink the number of shares in its float. There is one difference: While Amgen's $10 billion commitment is in addition to its existing repurchase program, AbbVie's new buybacks plan replaces the previous one. That's not the only way AbbVie is rewarding shareholders, however. | Abbvie ( ABBV , $115.04) is playing the same card, allocating $10 billion of its own to shrink the number of shares in its float. There is one difference: While Amgen's $10 billion commitment is in addition to its existing repurchase program, AbbVie's new buybacks plan replaces the previous one. That's not the only way AbbVie is rewarding shareholders, however. | SEE ALSO: 11 Best Health Care Stocks to Buy Buyback commitment: $15 billion If you were impressed by AbbVie's $10 billion buyback, beverage and snack giant PepsiCo ( PEP , $109.04) has one-upped the pharmaceutical company. Abbvie ( ABBV , $115.04) is playing the same card, allocating $10 billion of its own to shrink the number of shares in its float. There is one difference: While Amgen's $10 billion commitment is in addition to its existing repurchase program, AbbVie's new buybacks plan replaces the previous one. | Abbvie ( ABBV , $115.04) is playing the same card, allocating $10 billion of its own to shrink the number of shares in its float. There is one difference: While Amgen's $10 billion commitment is in addition to its existing repurchase program, AbbVie's new buybacks plan replaces the previous one. That's not the only way AbbVie is rewarding shareholders, however. |
25631.0 | 2018-03-04 00:00:00 UTC | 3 Stocks With Blazingly Fast-Growing Dividends | ABBV | https://www.nasdaq.com/articles/3-stocks-blazingly-fast-growing-dividends-2018-03-04 | nan | nan | Some dividend stocks belong in a league of their own. For these stocks, the dividend yields look great. The companies are in strong financial shape to keep the dividend checks flowing. But even better, their dividend payments are growing incredibly fast.
Not many stocks fit those criteria. But AbbVie (NYSE: ABBV) , Boeing (NYSE: BA) , and Texas Instruments (NASDAQ: TXN) do. Here's why these three stocks have been able to grow their dividends impressively over the past three years.
AbbVie
AbbVie increased its dividend by 88% over the last three years. The big pharma company's yield now stands at a solid 3.25%. Since being spun off from parent Abbott Labs in 2013, AbbVie's dividend has soared 140%.
There's one primary reason AbbVie has been able to deliver such impressive dividend growth: the success of Humira. The autoimmune-disease drug again ranked as the top-selling drug in the world last year , with revenue of $18.4 billion.
While Humira still accounts for 65% of AbbVie's total revenue, the company has other products that will help generate higher cash flow over the next several years. Cancer drug Imbruvica is already a huge success, with sales of nearly $2.6 billion in 2017 and 40% year-over-year growth. AbbVie's new hepatitis C drug, Mavyret, is expected to become the company's next blockbuster. In addition, the drugmaker's pipeline includes several promising candidates with tremendous potential.
AbbVie currently uses less than 44% of free cash flow to fund its dividend program. Its strong cash flow, along with its great growth prospects, gives the company considerable flexibility to keep its streak of dividend hikes going.
Boeing
Boeing only narrowly trails AbbVie, with dividend growth over the past three years of just a little below 88%. Since 2013, Boeing's dividend skyrocketed nearly 253%. The aviation giant's dividend now yields 1.89%.
Selling jets to the commercial airline industry provides the primary source of Boeing's revenue. In 2017, the company's commercial airplanes segment generated almost 61% of total revenue. Boeing also sells military aircraft and weapons systems to governments, a business that contributed over 22% of total revenue. The company's global services segment, which offers aviation services support, spare parts, training, and other services to customers, kicks in most of the rest of Boeing's revenue.
After a strong performance last year, Boeing appears to be set for another good year in 2018 . The commercial airline industry is expected to enjoy continued profitability, which is great news for aircraft manufacturers as well. Boeing also has a large backlog of orders and has ramped up production of its 737 and 787 jets thanks to strong demand.
Investors shouldn't have to worry that Boeing won't be able to increase its dividend in the future. The company uses only 30% of free cash flow to pay out dividends.
Texas Instruments
Texas Instruments (TI) boosted its dividend by an impressive 82% over the past three years. The large semiconductor company increased dividend payments by 121% since 2013. After these dividend increases, TI's dividend yield now stands at 2.29%.
Purchases of semiconductors by industrial customers, including manufacturers of appliances, factory automation, and medical devices, account for roughly 35% of TI's total revenue. Sales related to personal electronics, such as mobile phones, PCs, and TVs, contributes another 25% of total revenue. TI makes around 19% of total revenue from the automotive industry. Most of the rest of the company's revenue stems from selling semiconductors for communications equipment, enterprise systems such as servers and multi-function printers, and a staple for TI for many years -- calculators.
TI turned in a great performance in 2017 , and its growth prospects continue to look good. The company is especially focused on the automotive and industrial markets. TI thinks demand for semiconductors in these areas will grow significantly in the future because of their increasing semiconductor content.
But can TI keep those attractive dividend increases coming over the next several years? It seems likely. The company uses only 45% of free cash flow to fund the dividend program, giving TI ample room to boost dividends down the road.
Best bet
If I could only pick one of these great dividend stocks to buy, it would be AbbVie. There are three main reasons I like it the most.
First, the drugmaker has the better growth prospects than Boeing or Texas Instruments. AbbVie is expected to grow earnings by 17% annually over the next five years, which is higher than growth projections for the other two companies.
Second, AbbVie presents the better value. Currently, the stock trades at only 13 times expected earnings. By comparison, the forward earnings multiples for Boeing and TI are 21 and 19, respectively.
Third, AbbVie claims the highest dividend yield of the three stocks. And it doesn't hurt that the company has increased its dividend at a faster rate over the past three years than either Boeing or TI.
All three of these stocks appear to be in solid shape to continue paying and increasing dividends in the future. But AbbVie stands out as perhaps the best combination of growth, value, and income on the market right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But AbbVie (NYSE: ABBV) , Boeing (NYSE: BA) , and Texas Instruments (NASDAQ: TXN) do. AbbVie AbbVie increased its dividend by 88% over the last three years. Since being spun off from parent Abbott Labs in 2013, AbbVie's dividend has soared 140%. | While Humira still accounts for 65% of AbbVie's total revenue, the company has other products that will help generate higher cash flow over the next several years. But AbbVie (NYSE: ABBV) , Boeing (NYSE: BA) , and Texas Instruments (NASDAQ: TXN) do. AbbVie AbbVie increased its dividend by 88% over the last three years. | AbbVie AbbVie increased its dividend by 88% over the last three years. Boeing Boeing only narrowly trails AbbVie, with dividend growth over the past three years of just a little below 88%. But AbbVie (NYSE: ABBV) , Boeing (NYSE: BA) , and Texas Instruments (NASDAQ: TXN) do. | AbbVie AbbVie increased its dividend by 88% over the last three years. But AbbVie (NYSE: ABBV) , Boeing (NYSE: BA) , and Texas Instruments (NASDAQ: TXN) do. Since being spun off from parent Abbott Labs in 2013, AbbVie's dividend has soared 140%. |
25632.0 | 2018-03-02 00:00:00 UTC | Notable ETF Inflow Detected - MTUM, BA, ABBV, AMAT | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-mtum-ba-abbv-amat-2018-03-02 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $194.3 million dollar inflow -- that's a 2.6% increase week over week in outstanding units (from 69,150,000 to 70,950,000). Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 3.6%, AbbVie Inc (Symbol: ABBV) is off about 1.3%, and Applied Materials, Inc. (Symbol: AMAT) is lower by about 1.3%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $81.2563 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.53. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 3.6%, AbbVie Inc (Symbol: ABBV) is off about 1.3%, and Applied Materials, Inc. (Symbol: AMAT) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $194.3 million dollar inflow -- that's a 2.6% increase week over week in outstanding units (from 69,150,000 to 70,950,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 3.6%, AbbVie Inc (Symbol: ABBV) is off about 1.3%, and Applied Materials, Inc. (Symbol: AMAT) is lower by about 1.3%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $81.2563 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.53. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 3.6%, AbbVie Inc (Symbol: ABBV) is off about 1.3%, and Applied Materials, Inc. (Symbol: AMAT) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $194.3 million dollar inflow -- that's a 2.6% increase week over week in outstanding units (from 69,150,000 to 70,950,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $81.2563 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.53. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is off about 3.6%, AbbVie Inc (Symbol: ABBV) is off about 1.3%, and Applied Materials, Inc. (Symbol: AMAT) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $194.3 million dollar inflow -- that's a 2.6% increase week over week in outstanding units (from 69,150,000 to 70,950,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $81.2563 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.53. |
25633.0 | 2018-03-02 00:00:00 UTC | 3 Top Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-buy-right-now-2018-03-02 | nan | nan | What do United Parcel Service (NYSE: UPS) , AbbVie Inc. (NYSE: ABBV) , and Walt Disney Co. (NYSE: DIS) have in common? They're all dividend-friendly companies that Motley Fool investors think should be included in income portfolios. Are these stocks a perfect fit for your portfolio? Here's how these dividend stalwarts could be perfectly positioned to increase their dividends in the coming years.
Brown could make you some green
Rich Smith (UPS): This may sound crazy coming less than two weeks after Amazon.com (NASDAQ: AMZN) announced a direct challenge to its business model and a plan to steal away UPS customers with a new " Shipping With Amazon " service -- but I find myself kind of intrigued by UPS stock right now.
As a dividend play, UPS' virtues should be obvious to all. UPS pays its shareholders a hefty 3.4% dividend yield, which is nearly twice the 1.8% average payout among S&P 500 companies. UPS also devotes only 80% of its profits to maintaining that dividend, which puts at least a couple of layers of safety around that dividend payout. In fact, assuming UPS' business grows with the growth of the global economy (as I think it will), its dividend could even grow over time -- Amazon's best efforts notwithstanding.
Nor am I alone in thinking growth is in the cards. Amazon or no Amazon, analysts who follow UPS on average predict UPS will grow earnings at better than 14% annually over the next three years. That's not quite enough to bring UPS' PEG ratio down below 1.0. But if you add the stock's 3.4% dividend yield to the three-year projected growth rate of 14.4%, you end up with a 17.8% projected annual total return on UPS stock, which is very close to its 18.7 P/E ratio -- and not a bad price to pay for one-half of the world's package delivery duopoly.
How do you feel about 140% dividend growth?
Todd Campbell (AbbVie): If you like stocks with double-digit growth on their top and bottom lines and are increasing their dividends at an eye-popping rate, then you ought to love AbbVie.
The company markets the world's best-selling drug, Humira, an autoimmune disease drug that might not have to contend with generic interlopers until 2023 following a key patent verdict last fall.
The clarity into Humira's $18.4 billion in annual sales is encouraging because it means AbbVie's got years to launch new drugs that can offset any eventual sales decline. In the coming year, it could win blockbuster approvals for its endometriosis drug, Elagolix, and its leukemia drug, Venclexta. It also plans to file three potential blockbuster drugs for approval in the next year: Rova-T, upadacitinib, and risankizumab.
Overall, AbbVie's management thinks its non-Humira revenue has a shot at growing from less than $10 billion to over $35 billion in 2025 . If it can hit anywhere near that target, then it should have plenty of money to keep rewarding investors via dividends.
The company believes so much in its strategy that it increased its quarterly dividend by 35% last week. That brought its total dividend increase to 140% since its IPO in 2013. With an outlook for 13% sales growth this year and a dividend yield of 3.2%, there's a lot to love about adding this company to income portfolios.
Buy Disney while it's still down
Steve Symington (Disney): Despite Disney starting its fiscal year with a return to growth on the strength of its thriving parks and resorts segment, its stock has fallen modestly since its most recent report last month. But keeping in mind that the company also aims to return at least 20% of the cash it generates to shareholders through dividends and stock repurchases -- call it a reward for your patience -- I think the decline offers a perfect opportunity for long-term investors to open or add to their positions.
For one, in its studio segment, the entertainment conglomerate can look forward to soon reporting the fruits of Black Panther , which has set a slew of records and collected gross ticket sales of nearly $800 million worldwide since it hit the big screen two weeks ago.
And that's not to mention the impending box office debuts of Marvel's Avengers: Infinity War next month, Lucasfilm's Solo: A Star Wars Story in May, Pixar's The Incredibles 2 in June, Marvel's Ant Man and the Wasp in July, and Pixar's Wreck-It Ralph 2 this November.
Of course, the running worry is that cord-cutters will continue to eat into the profits of Disney's core media networks business -- and they likely will. But remember that Disney is also launching a new multisport streaming service called ESPN Plus this spring, to be priced at an affordable $4.99 per month. Then next year, it will introduce a broader video streaming service featuring both new releases and its massive catalog of entertainment titles.
Finally, we can't forget Disney's pending $52 billion acquisition of most of the entertainment assets of Twenty-First Century Fox (NASDAQ: FOXA) . Assuming the deal passes regulatory muster and closes by mid-2018 as planned, it will give Disney control of properties including Avatar , X-Men , Fantastic Four , and Deadpool , as well as National Geographic, FX Networks, Fox Sports Regional Networks, a controlling stake in Hulu, a 39% stake in Europe's Sky, and Star TV in India.
10 stocks we like better than Walt Disney
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Smith has no position in any of the stocks mentioned. Steve Symington has no position in any of the stocks mentioned. Todd Campbell owns shares of Amazon. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Amazon and Walt Disney. 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 do United Parcel Service (NYSE: UPS) , AbbVie Inc. (NYSE: ABBV) , and Walt Disney Co. (NYSE: DIS) have in common? Todd Campbell (AbbVie): If you like stocks with double-digit growth on their top and bottom lines and are increasing their dividends at an eye-popping rate, then you ought to love AbbVie. The clarity into Humira's $18.4 billion in annual sales is encouraging because it means AbbVie's got years to launch new drugs that can offset any eventual sales decline. | What do United Parcel Service (NYSE: UPS) , AbbVie Inc. (NYSE: ABBV) , and Walt Disney Co. (NYSE: DIS) have in common? Todd Campbell (AbbVie): If you like stocks with double-digit growth on their top and bottom lines and are increasing their dividends at an eye-popping rate, then you ought to love AbbVie. The clarity into Humira's $18.4 billion in annual sales is encouraging because it means AbbVie's got years to launch new drugs that can offset any eventual sales decline. | What do United Parcel Service (NYSE: UPS) , AbbVie Inc. (NYSE: ABBV) , and Walt Disney Co. (NYSE: DIS) have in common? Todd Campbell (AbbVie): If you like stocks with double-digit growth on their top and bottom lines and are increasing their dividends at an eye-popping rate, then you ought to love AbbVie. The clarity into Humira's $18.4 billion in annual sales is encouraging because it means AbbVie's got years to launch new drugs that can offset any eventual sales decline. | What do United Parcel Service (NYSE: UPS) , AbbVie Inc. (NYSE: ABBV) , and Walt Disney Co. (NYSE: DIS) have in common? Todd Campbell (AbbVie): If you like stocks with double-digit growth on their top and bottom lines and are increasing their dividends at an eye-popping rate, then you ought to love AbbVie. The clarity into Humira's $18.4 billion in annual sales is encouraging because it means AbbVie's got years to launch new drugs that can offset any eventual sales decline. |
25634.0 | 2018-02-28 00:00:00 UTC | 4 Buy-Ranked Large Cap Pharma Stocks to Boost Your Portfolio | ABBV | https://www.nasdaq.com/articles/4-buy-ranked-large-cap-pharma-stocks-to-boost-your-portfolio-2018-02-28-0 | nan | nan | After rising 16.3% last year, the Large Cap Pharmaceutical industry has risen 1.9% this year so far. It has however underperformed the 4% gain for the S&P 500 in the same time frame.
Wall Street's Next Amazon
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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. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street's Next Amazon Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. Click for details >>" Want the latest recommendations from Zacks Investment Research? | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): 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. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): 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. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. After rising 16.3% last year, the Large Cap Pharmaceutical industry has risen 1.9% this year so far. It has however underperformed the 4% gain for the S&P 500 in the same time frame. |
25635.0 | 2018-02-27 00:00:00 UTC | Pfizer Gets Mixed Feedback on Cancer Treatments From CHMP | ABBV | https://www.nasdaq.com/articles/pfizer-gets-mixed-feedback-on-cancer-treatments-from-chmp-2018-02-27 | nan | nan | Pfizer Inc.PFE announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has recommended that two of its hematology medicines be granted marketing authorizations in the EU. However, the committee gave a negative opinion, recommending against label expansion of Pfizer's kidney cancer medication, Sutent.
The CHMP recommended approval of Mylotarg in combination with standard chemotherapy for the treatment of patients aged 15 years and above with newly diagnosed CD33-positive acute myeloid leukemia (AML), except acute promyelocytic leukemia (APL). Mylotarg was approved in the United States in September last year.
CHMP also granted a positive opinion for the label expansion of another leukemia drug Bosulif for the first-line treatment of patients suffering from chronic phase Philadelphia chromosome-positive (Ph+) chronic myelogenous leukemia (CML). Bosulif was approved in the first-line setting for Ph+ CML in the United States in December last year.
However, the CHMP recommended against approving the label expansion of Sutent as an adjuvant treatment in patients at high risk of recurrent advanced renal cell carcinoma (RCC), following nephrectomy (surgical removal of the cancer-containing kidney).
Please note that Sutent was approved for use in the same patient population in the United States in November last year. It is the only adjuvant therapy approved for recurrent RCC, the most common type of kidney cancer.
Though the European Commission (EC) is not bound to follow the CHMP's opinion, it usually does so.
Bosulif recorded sales of $40 million in the developed Europe region in 2017, recording growth of 43% year over year while Sutent's sales of $323 million in the same region declined 4%.
Shares of Pfizer are up 2.4% so far this year, comparing favorably with a 0.7% increase for the industry .
Zacks Rank & Other Stocks to Consider
Pfizer carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other large-cap pharma stocks worth considering are H. Lundbeck HLUYY , AbbVie ABBV and Novo Nordisk NVO . While H. Lundbeck sports a Zacks Rank #1 (Strong Buy), AbbVie and Novo Nordisk have the same Zacks Rank as Pfizer.
Shares of H. Lundbeck are up 5.6% this year so far while estimates for 2018 and 2019 are up 6.1% and 22.6% over the past 60 days.
AbbVie's shares are up 25.6% this year so far. Over the past 30 days, earnings estimates have risen 8.4% and 7%, respectively, for 2018 and 2019.
Novo Nordisk's shares are up 1.6% this year so far. Over the past 30 days, earnings estimates have risen 1.5% and 4.9%, respectively, for 2018 and 2019.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other large-cap pharma stocks worth considering are H. Lundbeck HLUYY , AbbVie ABBV and Novo Nordisk NVO . While H. Lundbeck sports a Zacks Rank #1 (Strong Buy), AbbVie and Novo Nordisk have the same Zacks Rank as Pfizer. AbbVie's shares are up 25.6% this year so far. | While H. Lundbeck sports a Zacks Rank #1 (Strong Buy), AbbVie and Novo Nordisk have the same Zacks Rank as Pfizer. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. Other large-cap pharma stocks worth considering are H. Lundbeck HLUYY , AbbVie ABBV and Novo Nordisk NVO . | While H. Lundbeck sports a Zacks Rank #1 (Strong Buy), AbbVie and Novo Nordisk have the same Zacks Rank as Pfizer. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. Other large-cap pharma stocks worth considering are H. Lundbeck HLUYY , AbbVie ABBV and Novo Nordisk NVO . | While H. Lundbeck sports a Zacks Rank #1 (Strong Buy), AbbVie and Novo Nordisk have the same Zacks Rank as Pfizer. Other large-cap pharma stocks worth considering are H. Lundbeck HLUYY , AbbVie ABBV and Novo Nordisk NVO . AbbVie's shares are up 25.6% this year so far. |
25636.0 | 2018-02-27 00:00:00 UTC | 3 Reasons AbbVie Inc. Stock Could Keep Soaring in 2018 | ABBV | https://www.nasdaq.com/articles/3-reasons-abbvie-inc-stock-could-keep-soaring-2018-2018-02-27 | nan | nan | We might be in the middle of the first quarter, but AbbVie Inc. (NYSE: ABBV) has already delivered enough good news for a whole year. It's been getting hard to pick a favorite indicator, but raising earnings expectations for the year 14% higher was a big one. With operations firing on all cylinders, it's no wonder the big pharma stock has already risen around 23% in 2018.
Despite the recent run-up, there are a few catalysts coming up that could help the stock continue climbing throughout 2018 and beyond. Here's what to look out for.
1. Upadacitinib: $6.5 billion by 2025?
Rheumatoid arthritis, Crohn's disease, and eczema affect millions, but available therapies aren't a viable option for many of these patients. AbbVie thinks its late-stage candidate upadacitinib could be the most popular member of a new class of drugs aiming to treat these diseases. Humira, the company's flagship injection aimed at these patients, produced $18.4 billion in sales last year. At 65% of total revenue, replacing its eventual losses to biosimilar competition is a top priority
Last summer, AbbVie reported results from a pivotal trial with upadacitinib and patients that didn't respond to previous treatment with three separate types of conventional therapies available today. Across all three trials, upadacitinib wiped the floor with the placebo control groups. In fact, patients taking just 15 mg of the experimental drug daily achieved clinical remission at a rate three to four times higher than those given a placebo.
AbbVie expects to submit a rheumatoid arthritis application package for upadacitinib in the second half of the year. That's too late to expect an approval announcement in 2018, but results from ongoing pivotal trials with upadacitinib as a treatment for Crohn's disease and eczema could lift the stock this year. By eventually expanding the candidate's addressable patient population to include these indications, AbbVie thinks upadacitinib could add up to $6.5 billion in annual sales by 2025.
2. Risankizumab: Potential psoriasis blockbuster
Upadacitinib isn't the only anti-inflammatory candidate with blockbuster potential in AbbVie's late-stage pipeline. Risankizumab is an experimental injection that thumped Johnson & Johnson 's (NYSE: JNJ) blockbuster psoriasis therapy Stelara in a head-to-head study. In a pair of trials, 58% and 60% of patients treated with AbbVie's candidate achieved clear skin, versus just 21% and 30% of patients treated with Stelara.
With results like these, psoriasis applications for risankizumab should be a slam dunk. AbbVie has submissions planned for the first half this year, which means there's a slight chance the FDA could issue an approval decision before the end of the year.
Last year, Johnson & Johnson recorded $4.0 billion in worldwide Stelara sales. The psoriasis space is getting crowded , but AbbVie thinks risankizumab can capture around $5 billion worth of a global market that's expected to reach $21.4 billion annually by 2022.
3. Elagolix: Addressing big unmet needs
Four out of five women develop abnormal pelvic growths called uterine fibroids by their 50th birthday. They're generally asymptomatic, but around 25% of women with these growths experience debilitating symptoms that include painful periods and bleeding at times other than menstruation.
During a pivotal study, 68.5% of patients treated with AbbVie's Elagolix achieved a clinical response, versus just 8.7% in the placebo group. Those results are good enough to take to the FDA, which is already reviewing an Elagolix application for the treatment of another chronic disorder with a lot of underserved patients -- endometriosis.
AbbVie expects the FDA to issue an endometriosis approval decision in the second quarter. While a thumbs-up would help the stock tick a bit higher, it's widely expected. The drug's future popularity, on the other hand, is anybody's guess. Peak annual sales estimates for Elagolix in this indication hover around $1.5 billion. That's nothing to sneeze at, but this disease affects about 1 in 10 women of reproductive age. If a slightly higher-than-expected percentage of addressable patients takes up the treatment, it could go much higher.
Putting it together
Humira still contributes around two-thirds of AbbVie's total revenue, but Amgen has agreed not to launch its biosimilar version of the megablockbuster until 2023. Replacing Humira revenue once it finally starts to slide won't be easy, but there's a chance these three candidates, and perhaps Rova-T , could be strong enough pallbearers to lift Humira's casket when the time comes.
We can't be sure these late-stage candidates will throw off news that moves the stock higher this year, but the odds that AbbVie's impressive earnings will fall off a cliff several years from now are definitely getting a lot slimmer.
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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. | At 65% of total revenue, replacing its eventual losses to biosimilar competition is a top priority Last summer, AbbVie reported results from a pivotal trial with upadacitinib and patients that didn't respond to previous treatment with three separate types of conventional therapies available today. By eventually expanding the candidate's addressable patient population to include these indications, AbbVie thinks upadacitinib could add up to $6.5 billion in annual sales by 2025. We might be in the middle of the first quarter, but AbbVie Inc. (NYSE: ABBV) has already delivered enough good news for a whole year. | Risankizumab: Potential psoriasis blockbuster Upadacitinib isn't the only anti-inflammatory candidate with blockbuster potential in AbbVie's late-stage pipeline. During a pivotal study, 68.5% of patients treated with AbbVie's Elagolix achieved a clinical response, versus just 8.7% in the placebo group. We might be in the middle of the first quarter, but AbbVie Inc. (NYSE: ABBV) has already delivered enough good news for a whole year. | At 65% of total revenue, replacing its eventual losses to biosimilar competition is a top priority Last summer, AbbVie reported results from a pivotal trial with upadacitinib and patients that didn't respond to previous treatment with three separate types of conventional therapies available today. By eventually expanding the candidate's addressable patient population to include these indications, AbbVie thinks upadacitinib could add up to $6.5 billion in annual sales by 2025. We can't be sure these late-stage candidates will throw off news that moves the stock higher this year, but the odds that AbbVie's impressive earnings will fall off a cliff several years from now are definitely getting a lot slimmer. | AbbVie thinks its late-stage candidate upadacitinib could be the most popular member of a new class of drugs aiming to treat these diseases. We might be in the middle of the first quarter, but AbbVie Inc. (NYSE: ABBV) has already delivered enough good news for a whole year. At 65% of total revenue, replacing its eventual losses to biosimilar competition is a top priority Last summer, AbbVie reported results from a pivotal trial with upadacitinib and patients that didn't respond to previous treatment with three separate types of conventional therapies available today. |
25637.0 | 2018-02-27 00:00:00 UTC | ABBV Crosses Above Average Analyst Target | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-average-analyst-target-2018-02-27 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $119.92, changing hands for $121.54/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher - if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $84.00. And then on the other side of the spectrum one analyst has a target as high as $157.00. The standard deviation is $23.595.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $119.92/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $119.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com . Get the latest Zacks research report on ABBV - FREE .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $119.92, changing hands for $121.54/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $119.92/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $119.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $119.92, changing hands for $121.54/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. | There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. And so with ABBV crossing above that average target price of $119.92/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $119.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $119.92, changing hands for $121.54/share. | There are 13 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $119.92, changing hands for $121.54/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
25638.0 | 2018-02-27 00:00:00 UTC | 3 Top Pharma Stocks With Dividend Yields Over 3% | ABBV | https://www.nasdaq.com/articles/3-top-pharma-stocks-dividend-yields-over-3-2018-02-27 | nan | nan | It's no secret that investing in dividend-paying stocks is one of the best ways for everyday investors to create an income stream large enough to make their retirement dreams a reality. Merck & Co., Inc. (NYSE: MRK) , Pfizer Inc. (NYSE: PFE) , and AbbVie Inc. (NYSE: ABBV) all offer yields of 3.2% or higher right now. With the average stock in the benchmark S&P 500 index paying just 1.8%, these big pharma stocks are far too attractive to ignore.
Of course, a juicy yield today won't help you accumulate much wealth if the payout doesn't grow. Let's look at what's driving profitability for these pharmaceutical giants to see if they can keep boosting payouts over the long run.
1. Merck & Co.: Feeling withdrawn
This stock's fallen around 11% since the company withdrew its European application for Keytruda plus chemotherapy as a first-line treatment for metastatic non-small cell lung cancer late last year. As a result, the stock offers a fairly attractive 3.5% dividend yield at recent prices.
First-line indications are highly coveted because these patients tend to stay on therapy much longer than those that relapse following their first treatments. Approval for a similar lung cancer indication in the U.S. helped Keytruda sales jump 172% last year to $3.8 billion, but hopes of a similar surge across the Atlantic are fading now that the company could lose the first-mover advantage.
Merck soothed some concerns by publishing data from the Keynote-189 trial, which is intended to support a first-line lung cancer application in the U.S. that's nearly identical to the one it shelved in the EU. Merck hasn't shared the details, but Keynote-189 reached its main goals and the data will probably be used to bolster a resubmission for first-line lung cancer in the EU later this year.
While there's a good chance that Keytruda sales will continue growing, older products are at a standstill or sinking. Merck's Januvia franchise sales fell 3% last year to $5.9 billion and sales of cholesterol-reducing blockbuster Zetia fell 43% to $2.1 billion. With such stiff headwinds to overcome, the company expects total sales to rise by just 2% to 3% this year.
Over the past five years, Merck raised its payout at a sluggish 2.3% annual rate. Despite being cautious, four quarterly payments at $0.48 per share work out to around 63% of the company's earnings expectations for 2018.
Most big pharma's are comfortable with payout ratios in the 60% to 70% range, which suggests Merck's dividend isn't going to grow any faster than its bottom line. The average analyst following the stock expects earnings to rise at a 5.3% annual rate over the next five years. That's not terrible, but you can probably do better with Pfizer or AbbVie.
2. Pfizer Inc.: Room to grow
Analysts following Pfizer expect its bottom line to grow a bit faster than Merck's. Combined with a much lower payout ratio, though, shares of America's largest pharmaceutical company are positioned to deliver more dividend growth than Merck's. Over the past five years, Pfizer raised its payout at a 7.8% annual rate, increasing it to 3.7% at recent prices.
Even with a healthy rate of dividend increases in recent years, Pfizer's planned dividend payments for 2018 work out to just 46% of earnings expectations for the year. That low payout ratio gives the company a chance to boost payments at a rate faster than earnings growth, in the years ahead.
Sagging sales of aging blockbusters are a problem for Pfizer as well, but it has a few more pieces moving in the right direction than Merck. Last year, sales of next-gen blood thinner Eliquis rose 47% to $2.5 billion and breast cancer therapy Ibrance surged 46% to $3.1 billion. Although total revenue fell a percentage point in 2017, cost-cutting and share buybacks helped lift adjusted earnings 11% to $2.65 per share.
In 2017, Pfizer received a record 10 approvals from the FDA that will mostly expand addressable patient populations of already-marketed drugs, along with their sales potential. At last glance, Pfizer had around a half-dozen new drug candidates, plus biosimilar versions of six of today's blockbuster drugs, in late-stage development.
3. AbbVie Inc.: What patent cliff?
The most important patents protecting Humira's exclusivity expired last year, but Amgen (NASDAQ: AMGN) signed a deal last September that prevents it from launching its biosimilar version of the drug until 2023. The anti-inflammatory, which makes up about two-thirds of AbbVie's total revenue, racked up a stunning $18.4 billion last year and is expected to hit $20 billion by 2022.
At recent prices, AbbVie shares offer a 3.2% yield. Although that's a bit less than those of Pfizer and Merck, AbbVie grew adjusted earnings 16.2% to $5.60 last year and expects its bottom line to grow another 32% in 2018. The company's outstanding performance prompted the board to authorize a new $10 billion stock repurchase program and bump the dividend 35% higher this year.
Although Humira will eventually become more of an albatross than a hot-air balloon, AbbVie has several candidates in late-stage development that could help offset the losses. Risankizumab is an experimental psoriasis treatment that showed a huge benefit over Johnson & Johnson 's Stelara, a drug that generated $4.0 billion in global sales last year.
Upadacitinib is another anti-inflammatory candidate with megablockbuster potential on its way to a Food and Drug Administration review soon. AbbVie intends to submit a rheumatoid arthritis application to regulators in the second half of the year, and pivotal trials with Crohn's disease and eczema patients are underway. AbbVie thinks a successful launch in multiple indications could drive upadacitinib sales to $6.5 billion by 2025.
Overly optimistic peak sales estimates abound in this industry, but AbbVie has a habit of delivering results. There are no guarantees that any of the company's late-stage candidates will succeed, but this pharma stock has what it takes to deliver heaps of dividend income for years to come.
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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. | AbbVie intends to submit a rheumatoid arthritis application to regulators in the second half of the year, and pivotal trials with Crohn's disease and eczema patients are underway. Merck & Co., Inc. (NYSE: MRK) , Pfizer Inc. (NYSE: PFE) , and AbbVie Inc. (NYSE: ABBV) all offer yields of 3.2% or higher right now. That's not terrible, but you can probably do better with Pfizer or AbbVie. | Merck & Co., Inc. (NYSE: MRK) , Pfizer Inc. (NYSE: PFE) , and AbbVie Inc. (NYSE: ABBV) all offer yields of 3.2% or higher right now. That's not terrible, but you can probably do better with Pfizer or AbbVie. AbbVie Inc.: What patent cliff? | Although that's a bit less than those of Pfizer and Merck, AbbVie grew adjusted earnings 16.2% to $5.60 last year and expects its bottom line to grow another 32% in 2018. Merck & Co., Inc. (NYSE: MRK) , Pfizer Inc. (NYSE: PFE) , and AbbVie Inc. (NYSE: ABBV) all offer yields of 3.2% or higher right now. That's not terrible, but you can probably do better with Pfizer or AbbVie. | Merck & Co., Inc. (NYSE: MRK) , Pfizer Inc. (NYSE: PFE) , and AbbVie Inc. (NYSE: ABBV) all offer yields of 3.2% or higher right now. That's not terrible, but you can probably do better with Pfizer or AbbVie. AbbVie Inc.: What patent cliff? |
25639.0 | 2018-02-26 00:00:00 UTC | Gilead Sciences: The Oncology Company? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-oncology-company-2018-02-26 | nan | nan | Gilead Sciences (NASDAQ: GILD) , the company known for its revolutionary infectious-diseases treatments such as Viread for HIV and Harvoni for hepatitis C, is in the midst of a bold pivot to cell-based cancer treatments as one of its core value drivers.
The reason? New competitive threats from AbbVie 's (NYSE: ABBV) Mavyret in hep C, and GlaxoSmithKline 's (NYSE: GSK) Tivicay and Epivir in HIV, are currently challenging the biotech's dominance in these two key markets. As a result, Gilead has been searching for novel ways to both overcome these near-term threats to its top line and to subsequently generate a more sustainable, long-term growth trajectory.
Apparently, Gilead has found an answer of sorts in the form of the emerging field of adoptive cell therapy -- as seen in two recent strategic moves:
Gilead's recent acquisitions of Kite Pharma and Cell Design Labs have laid the foundation for the company to build an industry-leading adoptive cell therapy franchise.
The recent licensing deal with Sangamo Therapeutics (NASDAQ: SGMO) for the biotech's zinc finger nuclease technology put Gilead in the running to eventually develop an "off-the-shelf" cell therapy.
Should investors applaud Gilead's deep dive into adoptive cell therapy? Let's dig deeper to find out.
Understanding the risks
When Gilead finally pulled the trigger on a much-needed acquisition, it did so in an exceptionally risky manner. The long and short of it is that Gilead's hep C revenues have been shrinking at a staggering rate, thanks, in large part, to AbbVie's Mavyret.
Instead of buying instant revenue, however, Gilead decided to play the long game by acquiring Kite Pharma for its large B-cell lymphoma treatment Yescarta, along with the biotech's broader pipeline of cell-based cancer therapies. Besides the fact that this acquisition won't provide an immediate boost to earnings, Gilead's leap into adoptive cell therapy is a high-risk endeavor for three key reasons:
The current generation of adoptive cell therapies have serious safety issues that may limit their use to later lines of treatment (i.e., only the sickest patients who are no longer responding to the current standard of care). If these safety issues can't be overcome, adoptive cell therapies simply won't live up to their sizable commercial potential .
Autologous CAR-T therapies like Yescarta require sickly patients to travel to specialized clinics where their T-cells can be harvested, and then genetically modified. This highly individualized manufacturing process is both time-consuming and taxing from a training standpoint. The potential for human error, leading to unnecessary fatalities, is also a real concern here because the manufacturing process can't be standardized as things stand now.
The development of so-called "off-the-shelf" or allogeneic cell therapies -- that can overcome the first two key risk factors mentioned above -- is still in its infancy. In fact, Gilead's bet on zinc finger nuclease technology to create off-the-shelf cell therapies may have been a major mistake. Cheaper and more user-friendly gene-editing platforms like CRISPR/Cas9, after all, might lead to faster innovation rates among Gilead's chief competitors in adoptive cell therapy. Time will tell.
The take home message here is that adoptive cell therapy presents a number of unique challenges from a commercialization standpoint -- none of which Gilead has ever faced before with its HIV or hep C drugs.
The opportunity
The real-world commercial opportunity proffered by cell-based therapies is hard, if not impossible, to quantify in any meaningful way at present. If adoptive cell therapy can't break into earlier lines of treatment for various blood cancers, for example, the multibillion-dollar peak sales estimates for Yescarta, and its closest competitors, will turn out to be way off base.
On the flip side, there is the growing possibility that adoptive cell therapies, when used in conjunction with other immune therapies like PD-1 inhibitors, may eventually break into the more lucrative solid-tumor market. Moreover, these novel cell therapies might even find a place in the treatment of non-cancerous diseases such as HIV. Adoptive cell therapies would be worth their weight in gold if either of these possibilities became reality.
The big idea is that it's going to take at least a few more years to get a reasonable handle on how the adoptive cell therapy market will ultimately develop. In other words, adoptive cell therapy could go gangbusters -- but it could also struggle to break into the mainstream because of manufacturing problems, safety issues, or a combination of these factors.
Is Gilead's cell therapy bet worth the risk?
Gilead's decision to get in on the ground floor in adoptive cell therapy is certainly a brave move. The biotech, after all, could have used its considerable bankroll to buy multiple revenue-generating peers in a nearly risk-free manner.
If things go according to plan, though, this strategic bet on adoptive cell therapy should provide healthy levels of growth for an exceptionally long period of time. Novel cancer treatments tend to have fairly lengthy shelf lives in general, and adoptive cell therapies, in particular, may prove to be bulletproof when its comes to generic (biosimilar) knock-offs because of their extensive manufacturing process.
That being said, adoptive cell therapy is still an unproven platform from a commercial standpoint, and many potential pitfalls lie ahead. The field is also set to continue developing at a breakneck pace. Whether Gilead's acquisitions of Kite and Cell Design Labs and its licensing deal with Sangamo will prove to be enough to keep up remains to be seen.
All told, Gilead's cell-based oncology venture is only starting to take shape, and numerous challenges remain. That's why investors probably shouldn't put much weight on this inchoate unit from a valuation standpoint just yet. The inherent risks of adoptive cell therapy, after all, arguably outweigh the rewards at this very early stage of the game.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | New competitive threats from AbbVie 's (NYSE: ABBV) Mavyret in hep C, and GlaxoSmithKline 's (NYSE: GSK) Tivicay and Epivir in HIV, are currently challenging the biotech's dominance in these two key markets. The long and short of it is that Gilead's hep C revenues have been shrinking at a staggering rate, thanks, in large part, to AbbVie's Mavyret. The recent licensing deal with Sangamo Therapeutics (NASDAQ: SGMO) for the biotech's zinc finger nuclease technology put Gilead in the running to eventually develop an "off-the-shelf" cell therapy. | New competitive threats from AbbVie 's (NYSE: ABBV) Mavyret in hep C, and GlaxoSmithKline 's (NYSE: GSK) Tivicay and Epivir in HIV, are currently challenging the biotech's dominance in these two key markets. The long and short of it is that Gilead's hep C revenues have been shrinking at a staggering rate, thanks, in large part, to AbbVie's Mavyret. Apparently, Gilead has found an answer of sorts in the form of the emerging field of adoptive cell therapy -- as seen in two recent strategic moves: Gilead's recent acquisitions of Kite Pharma and Cell Design Labs have laid the foundation for the company to build an industry-leading adoptive cell therapy franchise. | New competitive threats from AbbVie 's (NYSE: ABBV) Mavyret in hep C, and GlaxoSmithKline 's (NYSE: GSK) Tivicay and Epivir in HIV, are currently challenging the biotech's dominance in these two key markets. The long and short of it is that Gilead's hep C revenues have been shrinking at a staggering rate, thanks, in large part, to AbbVie's Mavyret. Apparently, Gilead has found an answer of sorts in the form of the emerging field of adoptive cell therapy -- as seen in two recent strategic moves: Gilead's recent acquisitions of Kite Pharma and Cell Design Labs have laid the foundation for the company to build an industry-leading adoptive cell therapy franchise. | New competitive threats from AbbVie 's (NYSE: ABBV) Mavyret in hep C, and GlaxoSmithKline 's (NYSE: GSK) Tivicay and Epivir in HIV, are currently challenging the biotech's dominance in these two key markets. The long and short of it is that Gilead's hep C revenues have been shrinking at a staggering rate, thanks, in large part, to AbbVie's Mavyret. If these safety issues can't be overcome, adoptive cell therapies simply won't live up to their sizable commercial potential . |
25640.0 | 2018-02-26 00:00:00 UTC | AbbVie (ABBV) Up 9.7% Since Earnings Report: Can It Continue? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-up-9.7-since-earnings-report%3A-can-it-continue-2018-02-26 | nan | nan | A month has gone by since the last earnings report for AbbVie Inc.ABBV . Shares have added about 9.7% in that time frame, outperforming the market.
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 the most recent earnings report in order to get a better handle on the important catalysts.
AbbVie Tops Q4 Earnings & Revenues, Ups 2018 Guidance
AbbVie reported better-than-expected results for the fourth quarter of 2017. Importantly, it raised its earnings expectations for 2018 based on continued strong operational performance and lower tax rates.
AbbVie reported fourth-quarter 2017 earnings of $1.48 per share, beating the Zacks Consensus Estimate $1.44 by 2.8% and came ahead of the guided range of $1.42 and $1.44. Earnings grew 23.3% year over year. Strong sales performance and higher operating profits led to the bottom-line beat.
Including a charge related to the recent tax law changes and other one-time/special items, earnings were 3 cents per share compared with 85 cents in the year-ago quarter.
Revenues of $7.74 billion in the reported quarter marginally beat the Zacks Consensus Estimate of $7.6 billion. Sales increased 13.9% year over year. Excluding a 1.5% favorable impact from foreign exchange rate fluctuations, operational revenues rose 12.6% backed by continued strong performances by Humira and Imbruvica and solid initial uptake of Mavyret. Operational revenue growth also surpassed management expectations of approximately 10% growth.
Quarter in Details
Humira recorded sales growth of 14% (12.3% on an operational basis) with revenues coming in at $4.89 billion, reflecting continued strong demand trends. Sales in the United States increased 15.1% to $3.3 billion.
Humira sales in the ex-U.S. market were up 6.5% on operational basis and 11.7% on a reported basis to $1.58 billion.
In 2018, Humira sales growth in the United States is expected to be approximately 13% to 14% while internationally, Humira sales are expected to peak at approximately $6.2 billion.
Fourth-quarter net revenues from Imbruvica were $708 million, up 38.7% year over year. This included Imbruvica U.S. sales of $585 million, up 35.3% and $123 million (up 57.8%) of international profit sharing. Continued uptake in the front-line CLL market and steady gains across other indications led to the strong performance of Imbruvica.
In 2017, AbbVie met its expectations of recording Imbruvica global revenues of more than $2.4 billion with sales in the United States crossing $2 billion. 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 (224 million, up 1.8% year over year) Duodopa ($100 million, up 21.3% year over year) and Creon ($235 million, up 10.6%).
Despite competitive dynamics in the HCV market, AbbVie HCV sales, including Viekira and Mavyret, were $510 million in the quarter, up 62.7% on an operational basis. Strong uptake of Mavyret in the United States and international markets led to the increase.
On the call, management mentioned that Mavyret has witnessed strong uptake both in the United States and internationally.
In 2018, global HCV sales are expected to exceed $2.5 billion with a roughly equal split between U.S. and outside U.S. markets.
Adjusted SG&A expenses inched up 0.9% to $1.64 billion. However, as a percentage of sales, SG&A expenses declined 270 bps to 21.2% driven by sales leverage and operational efficiencies. R&D expenses escalated 12.5% to $1.32 billion in the quarter due to greater investments in the pipeline. Adjusted operating margin was 40.7% of sales in the reported quarter, up 90 bps year over year.
2017 Results
Full-year sales jumped 10.1% year over year on an operational basis to $28.2 billion. Sales outpaced the Zacks Consensus Estimate of $28 billion. Revenue growth was in line with expectations of 10% growth on an operational basis.
Adjusted earnings of $5.60 per share for the full year exceeded the Zacks Consensus Estimate of $5.56 as well as the guided range of $5.53-$5.55. Earnings rose 16.2% year over year.
2018 Outlook
AbbVie raised its adjusted EPS guidance to a range of $7.33-$7.43 for 2018 from $6.37-$6.57 predicted earlier. Consistently strong organic growth coupled with tax rate reductions as result of the recent U.S. tax reforms propelled the increase in earnings guidance. The guidance reflects a year-over-year increase of 32% at the mid-point.
Revenues are expected to approach $32 billion, reflecting year-over-year growth of approximately 13%. Currency impact is expected to benefit revenues by 1.5% in 2018.
While R&D expense is expected to be roughly 16% of sales, SG&A is expected to be just over 20% of sales. Operating margin is expected to be approximately 44%, roughly 150 basis points above 2017 levels. Adjusted tax rate is expected to be approximately 9% in 2018. The normalized tax rate expectation over next five years is 13%.
On the call, the company said that it plans to invest approximately $2.5 billion in capital projects in the United States over the next five years on increased access to foreign cash following the U.S. tax reforms. In addition, the company will accelerate its pension funding by $750 million and also plans to contribute $350 million to select not-for-profit organizations.
First-Quarter 2018 Outlook
First-quarter earnings are expected between $1.77 and $1.79. Revenues are estimated to grow in a mid-teen range on an operational basis. Foreign exchange is expected to have a 3% favorable impact on sales in the first quarter.
U.S. Humira sales are expected to grow in a low-teens range year over year. Internationally, operational sales growth is expected in the mid single-digits range. Imbruvica U.S. sales are expected to grow in the mid single-digits range sequentially over the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter. In the past month, the consensus estimate has shifted by 19% due to these changes.
AbbVie Inc. Price and Consensus
AbbVie Inc. Price and Consensus | AbbVie Inc. Quote
VGM Scores
At this time, ABBV has an average Growth Score of C, while it is doing a lot better on the momentum front with A. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 growth than value and momentum investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise ABBV has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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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. | 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 Q4 Earnings & Revenues, Ups 2018 Guidance AbbVie reported better-than-expected results for the fourth quarter of 2017. | AbbVie Inc. Price and Consensus AbbVie Inc. Price and Consensus | AbbVie Inc. Quote VGM Scores At this time, ABBV has an average Growth Score of C, while it is doing a lot better on the momentum front with 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? | In 2017, AbbVie met its expectations of recording Imbruvica global revenues of more than $2.4 billion with sales in the United States crossing $2 billion. 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 Q4 Earnings & Revenues, Ups 2018 Guidance AbbVie reported better-than-expected results for the fourth quarter of 2017. |
25641.0 | 2018-02-23 00:00:00 UTC | New Strong Buy Stocks for February 23rd | ABBV | https://www.nasdaq.com/articles/new-strong-buy-stocks-february-23rd-2018-02-23 | nan | nan | Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today:
Air Transport Services Group, Inc. (ATSG): This company that provides aircraft leasing, airline operations, and aircraft maintenance and other support services has seen the Zacks Consensus Estimate for its current year earnings increasing 1.2% over the last 60 days.
Air Transport Services Group, Inc PriceandConsensus
Air Transport Services Group, Inc price-consensus-chart | Air Transport Services Group, Inc Quote
ArcBest Corporation (ARCB): This company that provides freight transportation services and integrated logistics solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 28.1% over the last 60 days.
ArcBest Corporation Price and Consensus
ArcBest Corporation price-consensus-chart | ArcBest Corporation Quote
Best Buy Co., Inc. (BBY): This retailer of technology products, services, and solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 0.7% over the last 60 days.
Best Buy Co., Inc. Price and Consensus
Best Buy Co., Inc. price-consensus-chart | Best Buy Co., Inc. Quote
HollyFrontier Corporation (HFC): This independent petroleum refiner has seen the Zacks Consensus Estimate for its current year earnings increasing 18% over the last 60 days.
HollyFrontier Corporation Price and Consensus
HollyFrontier Corporation price-consensus-chart | HollyFrontier Corporation Quote
AbbVie Inc. (ABBV): This manufacturer of pharmaceutical products has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days.
AbbVie Inc. Price and Consensus
AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote
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. | HollyFrontier Corporation Price and Consensus HollyFrontier Corporation price-consensus-chart | HollyFrontier Corporation Quote AbbVie Inc. (ABBV): This manufacturer of pharmaceutical products has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Zacks Top 10 Stocks for 2018 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018? Click to get this free report HollyFrontier Corporation (HFC): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Air Transport Services Group, Inc (ATSG): Free Stock Analysis Report ArcBest Corporation (ARCB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | HollyFrontier Corporation Price and Consensus HollyFrontier Corporation price-consensus-chart | HollyFrontier Corporation Quote AbbVie Inc. (ABBV): This manufacturer of pharmaceutical products has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report HollyFrontier Corporation (HFC): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Air Transport Services Group, Inc (ATSG): Free Stock Analysis Report ArcBest Corporation (ARCB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Zacks Top 10 Stocks for 2018 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018? | Click to get this free report HollyFrontier Corporation (HFC): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Air Transport Services Group, Inc (ATSG): Free Stock Analysis Report ArcBest Corporation (ARCB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. HollyFrontier Corporation Price and Consensus HollyFrontier Corporation price-consensus-chart | HollyFrontier Corporation Quote AbbVie Inc. (ABBV): This manufacturer of pharmaceutical products has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Zacks Top 10 Stocks for 2018 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018? | AbbVie Inc. Price and Consensus AbbVie Inc. price-consensus-chart | AbbVie Inc. Quote You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Zacks Top 10 Stocks for 2018 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018? HollyFrontier Corporation Price and Consensus HollyFrontier Corporation price-consensus-chart | HollyFrontier Corporation Quote AbbVie Inc. (ABBV): This manufacturer of pharmaceutical products has seen the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days. Click to get this free report HollyFrontier Corporation (HFC): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report Air Transport Services Group, Inc (ATSG): Free Stock Analysis Report ArcBest Corporation (ARCB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
25642.0 | 2018-02-23 00:00:00 UTC | Pharma Stock Roundup: AZN's Imfinzi Gets 2nd FDA Nod, MRK to Buy Australian Firm | ABBV | https://www.nasdaq.com/articles/pharma-stock-roundup%3A-azns-imfinzi-gets-2nd-fda-nod-mrk-to-buy-australian-firm-2018-02-23 | nan | nan | Key announcements this week included the FDA approval for a second indication of AstraZeneca's AZN Imfinzi and an acquisition offer by Merck MRK . AbbVie ABBV presented new data on two pipeline candidates and announced an Alzheimer's deal with a small biotech.
Recap of the Week's Most Important Stories
AstraZeneca's Imfinzi Gains FDA Nod in Second Indication: AstraZeneca's PD-L1 inhibitor, Imfinzi gained FDA approval for an early-stage lung cancer indication, making it the drug's second FDA approval. With the latest approval, Imfinzi can now be prescribed to treat unresectable Stage III non-small cell lung cancer ("NSCLC") in patients whose disease has not progressed following chemoradiation therapy. Imfinzi was launched in the United States for the first indication - second line advanced bladder cancer - in May 2017 and is also being developed for several other cancer indications. (Read more: AstraZeneca's Imfinzi Gets FDA Nod for Label Expansion )
Meanwhile, AstraZeneca in-licensed a new antisense drug for kidney disease, IONIS-AZ5-2.5Rx, from Ionis Pharmaceuticals, Inc. IONS . Going forward, AstraZeneca will be responsible for developing and commercializing IONIS-AZ5-2.5Rx. (Read More: Ionis Out-Licenses Second Candidate to AstraZeneca, Earns $30M )
Merck Looks to Buy Innovative Immuno-Oncology Candidate: Merck proposed to buy an Australian oncolytic immunotherapies maker Viralytics Limited for $394 million (502 million Australian dollars). We believe the deal, if it gets through, will strengthen Merck's presence in the fast growing immuno-oncology market. With the deal, Merck will gain Viralytics's lead pipeline candidate, Cavatak, an oncolytic virus, which engages the innate immune system to attack and kill cancer cells. The transaction is expected to be completed by the second quarter of 2018, contingent on Viralytics shareholder approval. (Read more: Merck to Buy Australian Firm to Boost Immunotherapy Pipeline )
AbbVie Reports New Mid-Stage Data on Upadacitinib: AbbVie announced new data from the phase II CELEST study, which evaluated multiple dosing regimens of its JAK1 inhibitor, upadacitinib for Crohn's disease through week 52. Data from the study showed that patients who clinically responded to upadacitinib treatment in the 16-week induction phase maintained their response after the 36-week extension phase of the study. Please note that results from the 16-week induction phase from the CELEST study were previously announced in May last year (read more: AbbVie Presents New Data on Upadacitinib for Crohn's Disease ).
Separately AbbVie and Neurocrine Biosciences' first of the two pivotal phase III studies on pipeline candidate elagolix met the primary endpoint. The ELARIS UF-I study was evaluating elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. Data from the study demonstrated that elagolix, in combination with low-dose add-back therapy, reduced heavy menstrual bleeding compared to placebo. (Read more: Abbvie's Uterine Fibrosis Candidate Meets Goal in Study )
Elagolix is already under review in the United States for management of endometriosis with associated pain.
AbbVie also announced a global strategic collaboration with small biotech Voyager Therapeutics, Inc. VYGR to develop potential new treatments for Alzheimer's disease and other tau-related neurodegenerative diseases.
Novo Nordisk's Oral Ozempic Succeeds in Study: Novo Nordisk NVO announced that a phase III study, PIONEER 1, evaluating the tablet (oral) formulation of its newly approved diabetes treatment, Ozempic (semaglutide) achieved its primary objective. Data from the study showed that people with type II diabetes, who are treated with once-weekly oral semaglutide (GLP-1 receptor agonist), experienced significant and superior blood glucose control compared to placebo for all three doses (3, 7 and 14 mg) evaluated. Meanwhile, significant and superior weight loss versus placebo was observed in patients who were given the highest dose (14 mg). Novo Nordisk expects to file for approval of the oral formulation of Ozempic in 2019, pending data from the remaining nine PIONEER studies.
Ozempic (semaglutide) was approved last year in December as a once-daily pre-filled pen to improve glycaemic control in type II diabetes patients. The approval of Ozempic was based on results from the phase III SUSTAIN study.
FDA Accepts Acorda's Inbrija NDA : Accorda Therapeutics, Inc.'s ACOR NDA for its Parkinson's disease candidate Inbrija was accepted by the FDA. This marked the resubmission of the NDA for Inbrija. The FDA had issued a refusal-to-file letter to Inbrija in August last year, declaring the NDA application to be incomplete after a preliminary review. The FDA is expected to give its decision on the candidate on Oct 5, 2018. (Read more: FDA Accepts Acorda's NDA for Parkinson's Disease Candidate ).
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
The NYSE ARCA Pharmaceutical Index declined 0.9% in the last five trading sessions.
Here is how the seven major stocks performed:
In the last five trading sessions, all the seven major stocks declined. While AstraZeneca declined 0.7%, Bristol-Myers Squibb BMY went down 4.4%.
In the last six months, AstraZeneca has gained 15.6% while Merck declined 12.2% (See the last pharma stock roundup here: Merck's Keytruda Shines in Study, Priority Review for Kymriah Label Expansion ).
What's Next in the Pharma World?
Watch out for regulatory and pipeline news from pharma stocks.
Zacks Top 10 Stocks for 2018
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Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
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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 presented new data on two pipeline candidates and announced an Alzheimer's deal with a small biotech. (Read more: Merck to Buy Australian Firm to Boost Immunotherapy Pipeline ) AbbVie Reports New Mid-Stage Data on Upadacitinib: AbbVie announced new data from the phase II CELEST study, which evaluated multiple dosing regimens of its JAK1 inhibitor, upadacitinib for Crohn's disease through week 52. Please note that results from the 16-week induction phase from the CELEST study were previously announced in May last year (read more: AbbVie Presents New Data on Upadacitinib for Crohn's Disease ). | (Read more: Merck to Buy Australian Firm to Boost Immunotherapy Pipeline ) AbbVie Reports New Mid-Stage Data on Upadacitinib: AbbVie announced new data from the phase II CELEST study, which evaluated multiple dosing regimens of its JAK1 inhibitor, upadacitinib for Crohn's disease through week 52. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report Ionis Pharmaceuticals, Inc. (IONS): Free Stock Analysis Report Voyager Therapeutics, Inc. (VYGR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV presented new data on two pipeline candidates and announced an Alzheimer's deal with a small biotech. | (Read more: Merck to Buy Australian Firm to Boost Immunotherapy Pipeline ) AbbVie Reports New Mid-Stage Data on Upadacitinib: AbbVie announced new data from the phase II CELEST study, which evaluated multiple dosing regimens of its JAK1 inhibitor, upadacitinib for Crohn's disease through week 52. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report Ionis Pharmaceuticals, Inc. (IONS): Free Stock Analysis Report Voyager Therapeutics, Inc. (VYGR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV presented new data on two pipeline candidates and announced an Alzheimer's deal with a small biotech. | (Read more: Merck to Buy Australian Firm to Boost Immunotherapy Pipeline ) AbbVie Reports New Mid-Stage Data on Upadacitinib: AbbVie announced new data from the phase II CELEST study, which evaluated multiple dosing regimens of its JAK1 inhibitor, upadacitinib for Crohn's disease through week 52. AbbVie ABBV presented new data on two pipeline candidates and announced an Alzheimer's deal with a small biotech. Please note that results from the 16-week induction phase from the CELEST study were previously announced in May last year (read more: AbbVie Presents New Data on Upadacitinib for Crohn's Disease ). |
25643.0 | 2018-02-22 00:00:00 UTC | Abbvie's Uterine Fibrosis Candidate Meets Goal in Study | ABBV | https://www.nasdaq.com/articles/abbvies-uterine-fibrosis-candidate-meets-goal-in-study-2018-02-22 | nan | nan | AbbVie Inc. ( ABBV ) along with partner Neurocrine Biosciences, announced that the phase III study oftheir late stage candidateelagolix met its primary endpoint in women with uterine fibroids. Top-line results from the first of the two pivotal phase III studies on elagolix (ELARIS UF-I) revealed that at six month, elagolix, in combination with low-dose add-back hormone therapy, reduced heavy menstrual bleeding compared to placebo. 68.5% (p
The study also met all ranked secondary endpoints at month six.
Hypoestrogenic effects, such as hot flush and reduction in bone mineral density, from elagolix treatment, were observed in the study. However, the overall safety profile for elagolix was consistent with what was observed in phase II studies in uterine fibroids. Data from the phase III study will support regulatory submissions for elagolix and will be presented at an upcoming medical conference.
Elagolix is under review in the United States for the management of endometriosis with associated pain.
So far this year, AbbVie's shares price have returned 92.1%, comparing favorably with 11.1% gain recorded by the industry .
We note that there are many other companies that have pipeline candidates being evaluated for uterine fibroids. Bayer BAYRY is evaluating vilaprisan in women suffering from uterine fibroids in a phase III ASTEROID study
Allergan's AGN pipeline candidate, ulipristal acetate's is under regulatory review in the United States. The company expects the FDA to give its decision in the first half of 2018.
In a separate press release, AbbVie also announced that it has inked anexclusive strategic collaboration and option agreement with a clinical-stage gene therapy company, Voyager Therapeutics VYGR , to develop and commercialize vectorized antibodies for the treatment of Alzheimer's disease and other neurodegenerative diseases.
Per the deal, Voyager will receive an upfront cash payment of $69 million, as well as up to $155 million in potential preclinical and phase I option payments. Following the announcement of the deal, shares of Voyager rose almost 15%.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank
Abbvie 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. | AbbVie Inc. ( ABBV ) along with partner Neurocrine Biosciences, announced that the phase III study oftheir late stage candidateelagolix met its primary endpoint in women with uterine fibroids. So far this year, AbbVie's shares price have returned 92.1%, comparing favorably with 11.1% gain recorded by the industry . In a separate press release, AbbVie also announced that it has inked anexclusive strategic collaboration and option agreement with a clinical-stage gene therapy company, Voyager Therapeutics VYGR , to develop and commercialize vectorized antibodies for the treatment of Alzheimer's disease and other neurodegenerative diseases. | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank Abbvie currently carries a Zacks Rank #2 (Buy). Click to get this free report Allergan plc (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report Voyager Therapeutics, Inc. (VYGR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) along with partner Neurocrine Biosciences, announced that the phase III study oftheir late stage candidateelagolix met its primary endpoint in women with uterine fibroids. | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank Abbvie currently carries a Zacks Rank #2 (Buy). Click to get this free report Allergan plc (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report Voyager Therapeutics, Inc. (VYGR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) along with partner Neurocrine Biosciences, announced that the phase III study oftheir late stage candidateelagolix met its primary endpoint in women with uterine fibroids. | AbbVie Inc. ( ABBV ) along with partner Neurocrine Biosciences, announced that the phase III study oftheir late stage candidateelagolix met its primary endpoint in women with uterine fibroids. So far this year, AbbVie's shares price have returned 92.1%, comparing favorably with 11.1% gain recorded by the industry . In a separate press release, AbbVie also announced that it has inked anexclusive strategic collaboration and option agreement with a clinical-stage gene therapy company, Voyager Therapeutics VYGR , to develop and commercialize vectorized antibodies for the treatment of Alzheimer's disease and other neurodegenerative diseases. |
25644.0 | 2018-02-21 00:00:00 UTC | Can Johnson & Johnson Replace Remicade for $100 Million Upfront? | ABBV | https://www.nasdaq.com/articles/can-johnson-johnson-replace-remicade-100-million-upfront-2018-02-21 | nan | nan | As huge piles of overseas cash make their way back to big U.S. drugmakers, biotech buyouts dominate the headlines. While most of us were watching the big money, Johnson & Johnson (NYSE: JNJ) inked a tiny little deal with Theravance Biopharma (NASDAQ: TBPH) that could help the world's largest healthcare company solve a $6 billion problem.
Johnson & Johnson has one of the most diverse revenue streams in healthcare, but its top-selling product is under competitive pressure. Remicade sales fell 9% to $6.3 billion last year, largely due to a loss of patent protected exclusivity. Patients with inflammatory bowel disease can probably be persuaded to switch to a safer, more convenient therapy. Let's see if the candidate Johnson & Johnson licensed from Theravance fits the bill.
Ready for a replacement
Ulcerative colitis and its cousin Crohn's disease lead to an estimated 700,000 doctor visits, and 100,000 hospitalizations every year in the U.S. alone. This huge patient population has made Johnson & Johnson's Remicade a megablockbuster, despite some significant drawbacks.
The popular therapy effectively prevents the immune system from attacking intestinal walls, but it also limits its ability to do other jobs. That's why Remicade has a black box on its drug label that warns of increased risk of deadly opportunistic infections and requires prescribing physicians to routinely monitor patients for tuberculosis.
Remicade is inconveniently delivered as an intravenous infusion, and it stands to reason that an easy-to-swallow pill with a clean safety profile might outperform Remicade in the commercial setting. That's why Johnson & Johnson recently handed Theravance Biopharma $100 million upfront for rights to TD-1473, an oral Janus kinase (JAK) inhibitor that might have an important advantage over existing treatment options.
Theravance designed TD-1473 to act directly against the intestinal wall, as opposed to existing drugs that involve systemwide exposure. An early study involving just 13 ulcerative colitis patients suggests this interesting approach works with a very low dose. Seven of 10 patients reported an improved rectal bleeding score after just 28 days of treatment, versus just one of three patients in the placebo group.
It's hard to draw big conclusions from such a small study, but I'll bet Johnson & Johnson's dealmaking radar started blinking when Theravance reported no evidence of the systemwide immune suppression that hounds existing IBD treatments. It might be early, but adding convenience and safety to efficacy is a recipe for blockbuster sales.
Next steps
This year, Theravance Biopharma will begin two mid-stage clinical trials with TD-1473, one for treatment of Crohn's disease and another for ulcerative colitis. In return for a $100 upfront payment, Johnson & Johnson can elect to enter an exclusive license arrangement with Theravance for another $200 million, or walk away. It all depends on the mid-stage data.
If Johnson & Johnson likes what it sees from the mid-stage trials, it will pick up the tab for a registrational Crohn's disease study, while Theravance will retain U.S. rights to develop TD-1473 for ulcerative colitis. If approved, Johnson & Johnson's industry-leading global salesforce will handle commercialization efforts, leaving Theravance eligible for 33% of U.S. profits and double-digit royalties on ex-U.S. sales.
Another Imbruvica?
Back in 2011, Johnson & Johnson gave Pharmacyclics $150 million upfront for rights to a candidate we now know as Imbruvica. Although AbbVie owns rights to a portion of the revenue this popular leukemia drug generates, J&J's portion of Imbruvica sales bounded 51% higher in 2017 to $1.9 billion and could go much further. While the healthcare giant needs new drug launches of this size just to keep moving the needle forward, a successful launch of TD-1473 could create an enormous windfall for Theravance.
Theravance's only marketed product generated just $10.7 million in sales during the first nine months of 2017, and heavy clinical trial activity led to a $198.5 million loss during the period. Theravance can probably look forward to significant royalty revenues from GlaxoSmithKline for its contribution to Trelegy Ellipta, a once-daily inhaler for COPD patients. The company can also look forward to an FDA action date on November 13, 2018, concerning its new drug application for revenacin, a bronchodilator for COPD patients to be marketed in partnership with Mylan .
At recent prices, Theravance sports a $1.6 billion market cap that could swell to several times its size if TD-1473 really can fill the holes Remicade losses keep poking into J&J's income statements. Right now, we're peering through a keyhole, but we'll get a better look at the bigger picture when Theravance reports data from the remaining two cohorts of the ongoing early-stage trial. Johnson & Johnson inked their deal after seeing impressive results from the 80 mg cohort. Analysts will be looking for signs of potency from the 10 patients in the 20 mg group.
Most of all, investors we want to see a lack of safety issues among the group receiving the big 270 mg daily dosage. If these patients show a similar lack of systemwide immune suppression, Theravance stock could soar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although AbbVie owns rights to a portion of the revenue this popular leukemia drug generates, J&J's portion of Imbruvica sales bounded 51% higher in 2017 to $1.9 billion and could go much further. That's why Remicade has a black box on its drug label that warns of increased risk of deadly opportunistic infections and requires prescribing physicians to routinely monitor patients for tuberculosis. The company can also look forward to an FDA action date on November 13, 2018, concerning its new drug application for revenacin, a bronchodilator for COPD patients to be marketed in partnership with Mylan . | Although AbbVie owns rights to a portion of the revenue this popular leukemia drug generates, J&J's portion of Imbruvica sales bounded 51% higher in 2017 to $1.9 billion and could go much further. That's why Johnson & Johnson recently handed Theravance Biopharma $100 million upfront for rights to TD-1473, an oral Janus kinase (JAK) inhibitor that might have an important advantage over existing treatment options. Next steps This year, Theravance Biopharma will begin two mid-stage clinical trials with TD-1473, one for treatment of Crohn's disease and another for ulcerative colitis. | Although AbbVie owns rights to a portion of the revenue this popular leukemia drug generates, J&J's portion of Imbruvica sales bounded 51% higher in 2017 to $1.9 billion and could go much further. While most of us were watching the big money, Johnson & Johnson (NYSE: JNJ) inked a tiny little deal with Theravance Biopharma (NASDAQ: TBPH) that could help the world's largest healthcare company solve a $6 billion problem. It's hard to draw big conclusions from such a small study, but I'll bet Johnson & Johnson's dealmaking radar started blinking when Theravance reported no evidence of the systemwide immune suppression that hounds existing IBD treatments. | Although AbbVie owns rights to a portion of the revenue this popular leukemia drug generates, J&J's portion of Imbruvica sales bounded 51% higher in 2017 to $1.9 billion and could go much further. Next steps This year, Theravance Biopharma will begin two mid-stage clinical trials with TD-1473, one for treatment of Crohn's disease and another for ulcerative colitis. If Johnson & Johnson likes what it sees from the mid-stage trials, it will pick up the tab for a registrational Crohn's disease study, while Theravance will retain U.S. rights to develop TD-1473 for ulcerative colitis. |
25645.0 | 2018-02-21 00:00:00 UTC | Why TG Therapeutics Stock Jumped 10% Today | ABBV | https://www.nasdaq.com/articles/why-tg-therapeutics-stock-jumped-10-today-2018-02-21 | nan | nan | What happened
After reporting early-stage trial results for one of the cancer drugs in its pipeline, TG Therapeutics (NASDAQ: TGTX) jumped 9.9% on Wednesday.
So what
The clinical-stage biotech stock has previously provided interesting trial data for TG-1101, or ublituximab, when used with AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) Imbruvica in leukemia patients. Today, it unveiled positive results from a trial evaluating another drug, umbralisib.
Specifically, umbralisib was clinically active with 85% of relapsed or refractory CLL patients achieving an objective response and 53% of patients with relapsed or refractory follicular lymphoma achieving an objective response, including two patients with a complete response.
The data could indicate that results expected later this year from a trial evaluating the use of umbralisib and ublituximab together in refractory CLL will succeed. The two-drug combination (U2) is being compared head-to-head against Gazyva and chlorambucil, a chemotherapy. If TG Therapeutics' doublet outperforms Gazyva, then TG Therapeutics' plan is to discuss the chances of approval with the Food and Drug Administration.
Now what
Ublituximab's overall response rate alongside Imbruvica is 81%, and if adding umbralisib to it can improve upon treatment, this could be a nine-figure opportunity for the company. For comparison, Imbruvica is a multibillion-dollar drug and Gazyva sales were about $300 million in 2017, at current exchange rates.
It's anyone's guess if final trial data that could support an FDA OK will be as good as we've seen so far and if the FDA will provide an easy pathway to market. Nevertheless, the data's good enough right now for me to think that this company might be worth more than its current $978 million market cap if trials go its way.
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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 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. | So what The clinical-stage biotech stock has previously provided interesting trial data for TG-1101, or ublituximab, when used with AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) Imbruvica in leukemia patients. What happened After reporting early-stage trial results for one of the cancer drugs in its pipeline, TG Therapeutics (NASDAQ: TGTX) jumped 9.9% on Wednesday. The data could indicate that results expected later this year from a trial evaluating the use of umbralisib and ublituximab together in refractory CLL will succeed. | So what The clinical-stage biotech stock has previously provided interesting trial data for TG-1101, or ublituximab, when used with AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) Imbruvica in leukemia patients. Today, it unveiled positive results from a trial evaluating another drug, umbralisib. Specifically, umbralisib was clinically active with 85% of relapsed or refractory CLL patients achieving an objective response and 53% of patients with relapsed or refractory follicular lymphoma achieving an objective response, including two patients with a complete response. | So what The clinical-stage biotech stock has previously provided interesting trial data for TG-1101, or ublituximab, when used with AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) Imbruvica in leukemia patients. Specifically, umbralisib was clinically active with 85% of relapsed or refractory CLL patients achieving an objective response and 53% of patients with relapsed or refractory follicular lymphoma achieving an objective response, including two patients with a complete response. 10 stocks we like better than TG Therapeutics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | So what The clinical-stage biotech stock has previously provided interesting trial data for TG-1101, or ublituximab, when used with AbbVie 's (NYSE: ABBV) and Johnson & Johnson 's (NYSE: JNJ) Imbruvica in leukemia patients. Now what Ublituximab's overall response rate alongside Imbruvica is 81%, and if adding umbralisib to it can improve upon treatment, this could be a nine-figure opportunity for the company. Nevertheless, the data's good enough right now for me to think that this company might be worth more than its current $978 million market cap if trials go its way. |
25646.0 | 2018-02-20 00:00:00 UTC | Health Care Sector Update for 02/20/2018: AIMT, CELG, LLY, VYGR, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-02202018-aimt-celg-lly-vygr-abbv-2018-02-20 | nan | nan | Top Health-care stocks:
JNJ: flat
PFE: flat
ABT: flat
MRK: +0.2%
AMGN: flat
Health care shares were slightly higher ahead of the bell on Tuesday.
Expected movers:
- Aimmune ( AIMT ): AR101 meets primary endpoint in study of peanut allergy
- Celgene ( CELG ): says Otezla shows potential in reducing oral ulcers in Behcet's disease patients in phase 3 study
- Eli Lilly ( LLY ): phase 3b study of Taltz shows improvement in impact of genital psoriasis on sexual activity
Other news:
- Voyager Therapeutics ( VYGR ): collaborates with AbbVie ( ABBV ) on Alzheimer's treatments.
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. | Expected movers: - Aimmune ( AIMT ): AR101 meets primary endpoint in study of peanut allergy - Celgene ( CELG ): says Otezla shows potential in reducing oral ulcers in Behcet's disease patients in phase 3 study - Eli Lilly ( LLY ): phase 3b study of Taltz shows improvement in impact of genital psoriasis on sexual activity Other news: - Voyager Therapeutics ( VYGR ): collaborates with AbbVie ( ABBV ) on Alzheimer's treatments. AMGN: flat Health care shares were slightly higher ahead of the bell on Tuesday. Unauthorized reproduction is strictly prohibited. | Expected movers: - Aimmune ( AIMT ): AR101 meets primary endpoint in study of peanut allergy - Celgene ( CELG ): says Otezla shows potential in reducing oral ulcers in Behcet's disease patients in phase 3 study - Eli Lilly ( LLY ): phase 3b study of Taltz shows improvement in impact of genital psoriasis on sexual activity Other news: - Voyager Therapeutics ( VYGR ): collaborates with AbbVie ( ABBV ) on Alzheimer's treatments. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Expected movers: - Aimmune ( AIMT ): AR101 meets primary endpoint in study of peanut allergy - Celgene ( CELG ): says Otezla shows potential in reducing oral ulcers in Behcet's disease patients in phase 3 study - Eli Lilly ( LLY ): phase 3b study of Taltz shows improvement in impact of genital psoriasis on sexual activity Other news: - Voyager Therapeutics ( VYGR ): collaborates with AbbVie ( ABBV ) on Alzheimer's treatments. Top Health-care stocks: JNJ: flat PFE: flat ABT: flat The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Expected movers: - Aimmune ( AIMT ): AR101 meets primary endpoint in study of peanut allergy - Celgene ( CELG ): says Otezla shows potential in reducing oral ulcers in Behcet's disease patients in phase 3 study - Eli Lilly ( LLY ): phase 3b study of Taltz shows improvement in impact of genital psoriasis on sexual activity Other news: - Voyager Therapeutics ( VYGR ): collaborates with AbbVie ( ABBV ) on Alzheimer's treatments. Top Health-care stocks: JNJ: flat PFE: flat ABT: flat AMGN: flat Health care shares were slightly higher ahead of the bell on Tuesday. |
25647.0 | 2018-02-20 00:00:00 UTC | Health Care Sector Update for 02/20/2018: ANAB,VYGR,ABBV,AIMT,CELG | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-02202018-anabvygrabbvaimtcelg-2018-02-20 | nan | nan | Top Health Care Stocks
JNJ -1.57%
PFE -0.88%
ABT -1.84%
MRK -2.27%
AMGN -0.66%
Health care stocks extended their Tuesday declines, including a more than 1.3% drop for the NYSE Health Care Index in recent trade. Also today, shares of health care companies in the S&P 500 were down nearly 1.2% as a group while the Nasdaq Biotechnology index slid more than 1.1% lower.
Among health care stocks moving on news:
- AnaptysBio ( ANAB ) was little changed shortly before Tuesday's closing bell, reversing a nearly 6% climb to a best-ever $134.00 a share that followed the specialty drugmaker reporting positive updated data from Phase IIa testing of its ANB020 product candidate in adult patients with moderate-to-severe atopic dermatitis. The proof-of-concept trial assessed the efficacy and safety of ANB020, with all 12 of the patients enrolled in the trial experiencing demonstrating at least 50% improvement in their respective Eczema Area Severity Index scores compared with their baseline level after 57 days.
In other sector news:
+ Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. Voyager also is eligible for up to $895 million in payments for each vectorized tau-antibody compound developed as well as for tiered royalties based on global commercial net sales of those antibody therapies.
+ Aimmune Therapeutics ( AIMT ) was narrowly higher Tuesday afternoon, giving back much of a nearly 13% advance that lifted the early-stage biotech company to a best-ever $41.86 a share, that followed it saying its AR101 drug candidate met the primary endpoint of Phase III testing in children with peanut allergies. Just over two-thirds - or 67.2% - of the kids in AR101 arm tolerated a dose of at least a 600 milligrams of peanut protein in the exit food challenge compared with only 4% of placebo patients. The company now expects to submit a biologics license application for AR101 with the U.S. Food and Drug Administration by the end of 2018, followed by a similar applicaton for marketing authorization by the European Medicines Agency during the first six months of 2019. The FDA previously designated AR101 as a breakthrough therapy for patients with peanut allergies between 4 to 17 years old.
- Celgene ( CELG ) was fractionally lower during Tuesday trading,falling less than 1% after the biotech company on Saturday said its Otezla drug candidate met its primary endpoint during Phase III testing, demonstrating statistically significant reductions in oral ulcers in patients with Behcet's disease, a rare and chronic multi-system inflammatory syndrome. Celgene now plans to file supplemental new drug applications with U.S. and Japanese regulators during the second half of 2018. It also plans to submit a type II variation in Europe to its marketing authorization application in 2019.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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. | In other sector news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. Among health care stocks moving on news: - AnaptysBio ( ANAB ) was little changed shortly before Tuesday's closing bell, reversing a nearly 6% climb to a best-ever $134.00 a share that followed the specialty drugmaker reporting positive updated data from Phase IIa testing of its ANB020 product candidate in adult patients with moderate-to-severe atopic dermatitis. | In other sector news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. + Aimmune Therapeutics ( AIMT ) was narrowly higher Tuesday afternoon, giving back much of a nearly 13% advance that lifted the early-stage biotech company to a best-ever $41.86 a share, that followed it saying its AR101 drug candidate met the primary endpoint of Phase III testing in children with peanut allergies. | In other sector news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. Among health care stocks moving on news: - AnaptysBio ( ANAB ) was little changed shortly before Tuesday's closing bell, reversing a nearly 6% climb to a best-ever $134.00 a share that followed the specialty drugmaker reporting positive updated data from Phase IIa testing of its ANB020 product candidate in adult patients with moderate-to-severe atopic dermatitis. | In other sector news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. Top Health Care Stocks |
25648.0 | 2018-02-20 00:00:00 UTC | 3 More Reasons to Buy AbbVie Stock | ABBV | https://www.nasdaq.com/articles/3-more-reasons-buy-abbvie-stock-2018-02-20 | nan | nan | It's really easy to identify reasons to buy AbbVie (NYSE: ABBV) stock. Humira ranks as the top-selling drug in the world , and sales are still growing. In addition, AbbVie claims one of the hottest cancer drugs on the market with Imbruvica. The company's newest hepatitis C drug, Mavyret, appears to be headed for blockbuster sales, and AbbVie generated the best total shareholder return of any big pharma stock over the last three years.
But if you need additional reasons to buy the stock, AbbVie provided three more last week. Two of them definitely mean great news for investors -- and the third probably will, as well.
1. An even better dividend
AbbVie has paid out one of the top dividends in healthcare in the past. Now, the dividend is even better.
On Feb. 15, AbbVie announced a 35% increase to its quarterly dividend. The company's dividend yield now stands at 3.24%. This was AbbVie's fifth consecutive year to hike its dividend since being spun off from parent Abbott Labs in 2013. Since the spinoff, AbbVie has raised its dividend by a whopping 140%.
There's no reason to think that AbbVie won't keep the dividend hikes coming in the future. The drugmaker currently uses only 60% of earnings to fund the dividend program.
2. More stock buybacks
Along with the news of a dividend increase, AbbVie announced that its board of directors has authorized a new $10 billion stock-repurchase program. Last year, the company bought back around $1 billion of its stock. That followed stock buybacks of $2.1 billion in 2016 and $2.8 billion in 2015.
The latest stock-repurchase program is a big jump from previous authorizations. For example, the $1 billion in shares bought back in 2017 was done under a $5 billion stock-repurchase authorization announced in February 2017.
Buying its own shares makes a lot of sense for AbbVie. The stock currently trades at less than 14 times expected earnings. By comparison, the S&P 500 index has a forward earnings multiple of 17 right now. A $10 billion stock buyback represents more than 5% of AbbVie's current outstanding shares.
3. Things looking up for upadacitinib
It's not a problem for AbbVie to boost its dividend and repurchase more shares while Humira continues to practically mint money for the company. But what happens in 2023 and afterwards when Humira faces biosimilar competition in the U.S.? AbbVie provided a clinical update last week that's encouraging for the company's prospects to roll out worthy successors to Humira.
On Feb. 16, AbbVie announced new results from a phase 2 study of upadacitinib in treating Crohn's disease. The company reported that many patients treated with upadacitinib who achieved clinical response after the 16-week induction phase maintained their response to treatment after a 36-week extension phase. Results from the study also showed that significantly more patients on updadacitinib achieved modified clinical remission than did patients on placebo.
Upadacitinib is a key part for AbbVie to achieve its projection that it will generate $35 billion in risk-adjusted sales from drugs other than Humira by 2025 . The company already has reported positive results from the first of three late-stage studies of the JAK1 inhibitor in treating rheumatoid arthritis (RA). AbbVie hopes to launch upadacitinib for treating RA in 2019 and win approval for five other indications, including Crohn's disease, by 2022.
Why not buy AbbVie?
As I previously mentioned, there are plenty of reasons to buy AbbVie stock. The company has a great track record and its current drugs are performing very well. It has a pipeline loaded with potential winners and continues to reward shareholders through increased dividends and share buybacks. So is there any reason not to buy AbbVie stock?
If your only priority is growth, you can probably find stocks that might generate higher growth than AbbVie. If you're looking strictly for income, there are stocks with higher dividend yields. And if you're a value investor, there are stocks that are even better bargains.
However, in my view, there are few stocks that offer a combination of growth, income, and value like AbbVie does. I think that there are many more reasons to buy this big pharma stock than there are not to.
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Keith Speights owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's newest hepatitis C drug, Mavyret, appears to be headed for blockbuster sales, and AbbVie generated the best total shareholder return of any big pharma stock over the last three years. More stock buybacks Along with the news of a dividend increase, AbbVie announced that its board of directors has authorized a new $10 billion stock-repurchase program. Things looking up for upadacitinib It's not a problem for AbbVie to boost its dividend and repurchase more shares while Humira continues to practically mint money for the company. | The company's newest hepatitis C drug, Mavyret, appears to be headed for blockbuster sales, and AbbVie generated the best total shareholder return of any big pharma stock over the last three years. On Feb. 16, AbbVie announced new results from a phase 2 study of upadacitinib in treating Crohn's disease. It's really easy to identify reasons to buy AbbVie (NYSE: ABBV) stock. | More stock buybacks Along with the news of a dividend increase, AbbVie announced that its board of directors has authorized a new $10 billion stock-repurchase program. So is there any reason not to buy AbbVie stock? 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | But if you need additional reasons to buy the stock, AbbVie provided three more last week. * 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! It's really easy to identify reasons to buy AbbVie (NYSE: ABBV) stock. |
25649.0 | 2018-02-20 00:00:00 UTC | Health Care Sector Update for 02/20/2018: VYGR,ABBV,AIMT,CELG | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-02202018-vygrabbvaimtcelg-2018-02-20 | nan | nan | Top Health Care Stocks
JNJ -1.31%
PFE -0.12%
ABT -1.26%
MRK -2.24%
AMGN +0.16%
Health care stocks were falling Tuesday, including a more than 0.5% decline for the NYSE Health Care Index in recent trading. Shares of health care companies in the S&P 500 were down more than 0.2% as a group while the Nasdaq Biotechnology index was hanging on to a more than 0.3% gain.
Among health care stocks moving on news:
+ Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. Voyager also is eligible for up to $895 million in payments for each vectorized tau-antibody compound developed as well as for tiered royalties based on global commercial net sales of those antibody therapies.
In other sector news:
+ Aimmune Therapeutics ( AIMT ) was narrowly higher Tuesday afternoon, giving back much of a nearly 13% advance that lifted the early-stage biotech company to a best-ever $41.86 a share, that followed it saying its AR101 drug candidate met the primary endpoint of phase III testing in children with peanut allergies. Just over two-thirds - or 67.2% - of the kids in AR101 arm tolerated a dose of at least a 600 milligrams of peanut protein in the exit food challenge compared with only 4% of placebo patients. The company now expects to submit a biologics license application for AR101 with the US Food and Drug Administration by the end of 2018, followed by a similar application for marketing authorization by the European Medicines Agency during the first six months of 2019. The FDA previously designated AR101 as a breakthrough therapy for patients with peanut allergies between 4 to 17 years old.
- Celgene ( CELG ) was fractionally lower during Tuesday trading,falling less than 1% after the biotech company on Saturday said its Otezla drug candidate met its primary endpoint during phase III testing, demonstrating statistically significant reductions in oral ulcers in patients with Behcet's disease, a rare and chronic multi-system inflammatory syndrome. Celgene now plans to file supplemental new drug applications with US and Japanese regulators during the second half of 2018. It also plans to submit a type II variation in Europe to its marketing authorization application in 2019.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. In other sector news: + Aimmune Therapeutics ( AIMT ) was narrowly higher Tuesday afternoon, giving back much of a nearly 13% advance that lifted the early-stage biotech company to a best-ever $41.86 a share, that followed it saying its AR101 drug candidate met the primary endpoint of phase III testing in children with peanut allergies. | Among health care stocks moving on news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. In other sector news: + Aimmune Therapeutics ( AIMT ) was narrowly higher Tuesday afternoon, giving back much of a nearly 13% advance that lifted the early-stage biotech company to a best-ever $41.86 a share, that followed it saying its AR101 drug candidate met the primary endpoint of phase III testing in children with peanut allergies. | Among health care stocks moving on news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. In other sector news: + Aimmune Therapeutics ( AIMT ) was narrowly higher Tuesday afternoon, giving back much of a nearly 13% advance that lifted the early-stage biotech company to a best-ever $41.86 a share, that followed it saying its AR101 drug candidate met the primary endpoint of phase III testing in children with peanut allergies. | Among health care stocks moving on news: + Voyager Therapeutics ( VYGR ) rallied Tuesday, jumping over 23% higher to an intra-day high of $24.14 a share, that followed the clinical-stage gene therapy company announcing a new collaboration partnership with large-scale drugmaker AbbVie ( ABBV ) to develop potential treatments for Alzheimer's and other neurodegenerative diseases. Under terms of their partnership, Voyager is set to receive a $69 million upfront payment from AbbView and up to $155 million in additional milestone and development payments. Health care stocks were falling Tuesday, including a more than 0.5% decline for the NYSE Health Care Index in recent trading. |
25650.0 | 2018-02-20 00:00:00 UTC | Novartis Psoriasis Drug Cosentyx Positive in SCALP Study | ABBV | https://www.nasdaq.com/articles/novartis-psoriasis-drug-cosentyx-positive-in-scalp-study-2018-02-20 | nan | nan | Novartis AGNVS ended 2017 on a positive note, courtesy of strong performance of psoriasis drug, Cosentyx.
Cosentyx achieved multi-blockbuster drug status in 2017 on the back of strong growth in three approved indications - psoriasis, ankylosing spondylitis and psoriatic arthritis. The drug has grabbed market share from rivals - AbbVie's ABBV Humira and Amgen's AMGN Enbrel.
The drug has been evaluated in more than 10,000 patients in over 60 studies. It has been prescribed to more than 140,000 patients on a global basis across all indications.
Novartis recently reported new encouraging data on Cosentyx data from the phase III study, SCALP at the 2018 American Academy of Dermatology ("AAD") Annual Meeting in San Diego, CA.
The randomized, double-blind, placebo-controlled phase III study is being conducted to evaluate the efficacy and safety of Cosentyx in 102 patients with moderate-to-severe scalp psoriasis.
The eligible patients were equally randomized to either subcutaneous Cosentyx 300 mg or placebo at week 0, 1, 2, 3 and 4, then every four weeks for 12 weeks. Patients in the placebo group who did not achieve at least 90% improvement from baseline in the Psoriasis Scalp Severity Index ("PSSI") score at week 12 were re-randomized to Cosentyx 300 mg until the completion of the study. The primary endpoint was the proportion of patients who achieved PSSI 90 response rate at week 12.
Majority of patients with scalp psoriasis on Cosentyx achieved clear skin (PSSI 90) at week 12 and 24 along with improved quality of life.
The study showed that PSSI 90 response rates were achieved by a significantly higher proportion of patients receiving Cosentyx vs. placebo at week 12 (52.9% vs. 2.0%), with further improvements in those taking Cosentyx up to week 24 (58.8%).
Per estimates, scalp psoriasis affects 60 million people worldwide.
Earlier in the month, the FDA approved a line extension for Cosentyx, in moderate-to-severe scalp psoriasis. The FDA approval comes on the back of positive efficacy and safety outcomes from a dedicated phase III study - SCALP - in patients with scalp psoriasis.
Novartis' shares have gained 16.0% over a year on par with the industry 's gain of 16.5%.
The label expansion of the drug is likely to boost sales further.
Zacks Rank & Key Pick
Novartis carries a Zacks Rank #3 (Hold).
A better-ranked stock from the health care space is Exelixis EXEL , carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Exelixis' earnings per share estimates have moved up from 72 cents to 77 cents for 2018 over the last 60 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 572.92%.
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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 has grabbed market share from rivals - AbbVie's ABBV Humira and Amgen's AMGN Enbrel. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. Cosentyx achieved multi-blockbuster drug status in 2017 on the back of strong growth in three approved indications - psoriasis, ankylosing spondylitis and psoriatic arthritis. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. The drug has grabbed market share from rivals - AbbVie's ABBV Humira and Amgen's AMGN Enbrel. Novartis recently reported new encouraging data on Cosentyx data from the phase III study, SCALP at the 2018 American Academy of Dermatology ("AAD") Annual Meeting in San Diego, CA. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. The drug has grabbed market share from rivals - AbbVie's ABBV Humira and Amgen's AMGN Enbrel. Patients in the placebo group who did not achieve at least 90% improvement from baseline in the Psoriasis Scalp Severity Index ("PSSI") score at week 12 were re-randomized to Cosentyx 300 mg until the completion of the study. | The drug has grabbed market share from rivals - AbbVie's ABBV Humira and Amgen's AMGN Enbrel. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report To read this article on Zacks.com click here. The drug has been evaluated in more than 10,000 patients in over 60 studies. |
25651.0 | 2018-02-20 00:00:00 UTC | Why Noble Energy, Voyager Therapeutics, and NXP Semiconductors Jumped Today | ABBV | https://www.nasdaq.com/articles/why-noble-energy-voyager-therapeutics-and-nxp-semiconductors-jumped-today-2018-02-20 | nan | nan | Tuesday saw the broader market turn lower late in the session on weakness in the Dow Jones Industrials . Bad news at the top of the brick-and-mortar retail sector hurt consumer goods stocks, and more generally, investors seemed uncertain whether major benchmarks were ready to return to all-time highs or would have to suffer another corrective phase. Despite the swirl of volatility, some stocks posted solid gains. Noble Energy (NYSE: NBL) , Voyager Therapeutics (NASDAQ: VYGR) , and NXP Semiconductors (NASDAQ: NXPI) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Noble Energy gets a lift
Shares of Noble Energy rose 11% after the oil and natural gas production company reported its latest financial results and announced a major supply deal. Revenue was up nearly 20% due to record quarterly volumes from onshore oil assets in the U.S., especially Texas , and the company reversed a loss in the year-earlier period with a solid profit for the quarter. Noble Energy also said that it had signed contracts to supply natural gas from Israeli gas fields to buyers in Egypt, with initial delivery quantities of roughly 350 million cubic feet from each of two separate fields. With Israel's Delek also involved in the $15 billion deal, the agreement points to thawing relations in the Middle East that could support Noble Energy's business there.
Voyager partners up
Voyager Therapeutics stock soared 22% in the wake of the company's announcement of a collaboration with industry giant AbbVie (NYSE: ABBV) in the fight against Alzheimer's and similar diseases. Under the strategic deal, AbbVie will pay Voyager an up-front payment of $69 million, with the potential to pay as much as $155 million in preclinical and phase 1 option payments. Development and regulatory milestone payments could add another $895 million to the total, not including tiered royalties on commercial sales globally of treatments resulting from the program for Alzheimer's and other tau-related neurodegenerative diseases. Voyager has gotten positive attention before , but the latest deal validates its approach and points to potentially game-changing developments in the future.
NXP lands a better deal
Finally, shares of NXP Semiconductors gained 6%. The semiconductor chipmaker received a larger buyout bid from Qualcomm (NASDAQ: QCOM) , which boosted its cash offer from $110 to $127.50 per share . The sweetened terms enticed major NXP shareholders, including activist investors at Elliott Management, to support the merger. The relatively small share-price gain reflects the fact that NXP investors already expected a higher bid, but for Qualcomm, the deal serves the dual purpose of both closing on a valuable asset in NXP and fending off a hostile takeover bid from Broadcom .
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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. | Voyager partners up Voyager Therapeutics stock soared 22% in the wake of the company's announcement of a collaboration with industry giant AbbVie (NYSE: ABBV) in the fight against Alzheimer's and similar diseases. Under the strategic deal, AbbVie will pay Voyager an up-front payment of $69 million, with the potential to pay as much as $155 million in preclinical and phase 1 option payments. Bad news at the top of the brick-and-mortar retail sector hurt consumer goods stocks, and more generally, investors seemed uncertain whether major benchmarks were ready to return to all-time highs or would have to suffer another corrective phase. | Under the strategic deal, AbbVie will pay Voyager an up-front payment of $69 million, with the potential to pay as much as $155 million in preclinical and phase 1 option payments. Voyager partners up Voyager Therapeutics stock soared 22% in the wake of the company's announcement of a collaboration with industry giant AbbVie (NYSE: ABBV) in the fight against Alzheimer's and similar diseases. Noble Energy (NYSE: NBL) , Voyager Therapeutics (NASDAQ: VYGR) , and NXP Semiconductors (NASDAQ: NXPI) were among the best performers on the day. | Voyager partners up Voyager Therapeutics stock soared 22% in the wake of the company's announcement of a collaboration with industry giant AbbVie (NYSE: ABBV) in the fight against Alzheimer's and similar diseases. Under the strategic deal, AbbVie will pay Voyager an up-front payment of $69 million, with the potential to pay as much as $155 million in preclinical and phase 1 option payments. Noble Energy gets a lift Shares of Noble Energy rose 11% after the oil and natural gas production company reported its latest financial results and announced a major supply deal. | Under the strategic deal, AbbVie will pay Voyager an up-front payment of $69 million, with the potential to pay as much as $155 million in preclinical and phase 1 option payments. Voyager partners up Voyager Therapeutics stock soared 22% in the wake of the company's announcement of a collaboration with industry giant AbbVie (NYSE: ABBV) in the fight against Alzheimer's and similar diseases. Noble Energy gets a lift Shares of Noble Energy rose 11% after the oil and natural gas production company reported its latest financial results and announced a major supply deal. |
25652.0 | 2018-02-19 00:00:00 UTC | Is AbbVie or Gilead Sciences Stock a Better Buy? | ABBV | https://www.nasdaq.com/articles/abbvie-or-gilead-sciences-stock-better-buy-2018-02-19 | nan | nan | AbbVie Inc. (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two of the world's biggest biotech stocks. However, their sales have been heading in different directions and each has offered up very different forecasts for 2018. Given that these titans are competing head to head for a share in the multibillion-dollar market for hepatitis C drugs, is one of these stocks a better buy than the other?
Grading their growth
It can pay to invest in companies that are growing sales and profit. By that measure, AbbVie is undeniably the better of the two stocks.
Because of increased competition from AbbVie and other hepatitis C drugmakers, Gilead Sciences' sales and earnings have been declining since 2016.
Gilead Sciences remains a dominant force in HIV treatment, and HIV drug sales have been increasing thanks to the launch of new combination therapies that include TAF, a safer reformulation of the popular HIV drug Viread. However, Gilead Sciences' HIV revenue growth hasn't been able to offset declining demand for the company's hepatitis C medicine, and since sales are falling faster than expenses, the company's earnings are suffering.
Gilead Sciences' hepatitis C sales fell 54% year over year to $1.5 billion in Q4 2017. Total revenue declined in 2017 to $26 billion from $30 billion in 2016, and EPS fell to $8.84 from $11.57.
It's been a very different story at AbbVie. Growing demand for its best-selling drugs, Humira and Imbruvica, and new drug launches, including Mavyret, the company's latest hepatitis C treatment, are increasing sales by double-digit percentages. Sales of its best-selling drug, Humira, grew 14.6% to $18.4 billion, and revenue from its second best-selling drug, Imbruvica, soared 40.5% to $2.6 billion in 2017. The launch of Mavyret last August boosted AbbVie's hepatitis C revenue by 63% year over year to $510 million in Q4 2017.
Those tailwinds translated into full-year sales of $28.2 billion, up 10% from one year ago, and EPS of $5.60, up from $4.82. With AbbVie's revenue and earnings rising and Gilead Sciences still descending, I have to give AbbVie the win in this category.
Pondering pipelines
Gilead Sciences invests heavily in mergers and acquisitions and in research and development. And that means it has exciting drugs advancing through its drug pipeline. However, I have to give the advantage to AbbVie in this category, too.
Gilead Sciences catapulted to the forefront of research into the use of gene therapies as cancer treatments when it acquired Kite Pharma for $11.9 billion last year, but it faces stiff competition in this field from many competitors, including Novartis (NYSE: NVS) and Celgene (NASDAQ: CELG) , that could limit that market opportunity.
Gilead Sciences' Yescarta is the only CAR-T gene therapy on the market for late-stage non-Hodgkin lymphoma currently, but it generated only $7 million in sales since its launch last October. With Novartis' gene therapy, Kymriah, already under priority review for use in Yescarta's indication and Celgene's gene therapy, JCAR017, possibly being filed for FDA approval this year, Gilead Sciences may have to fight tooth-and-nail for market share.
Gilead Sciences' filgotinib, an autoimmune-disease drug, and serotinib, a treatment for non-alcoholic fatty liver disease, appear promising, but we won't know just how promising until pivotal data emerges. Filgotinib's phase 3 rheumatoid arthritis data is expected this year, but we may have to wait until next year for more insight on serotinib.
Arguably, AbbVie's pipeline has fewer question marks. FDA decisions are pending for Elagolix, an endometrioisis drug, and Venclexta, a chronic lymphocytic leukemia drug, that could eventually lead to blockbuster revenue.
AbbVie also has three potential blockbuster drugs that it hopes to file for FDA approval soon: risankizumab, upadacitinib, and Rova-T.
Risankizumab has already successfully completed phase 3 psoriasis trials, and a filing is planned by the end of June. Upadacitinib has already put up impressive data in one phase 3 rheumatoid arthritis study, and two more phase 3 studies are expected to have data available shortly that could support a filing before the end of this year. Rova-T may also be filed for approval this year if it delivers strong phase 2 results in third-line or greater small-cell lung cancer. According to management, all three drugs could be multibillion-dollar-per-year top sellers.
Debating dividends
Both companies offer income investors market-beating dividend yields, and each company has wads of cash at its disposal to boost dividends in the future.
Gilead Sciences initiated its quarterly dividend in 2015, and since then, it's increased the payout from $0.43 to $0.57. Its fat operating margin means it generates more than enough free cash flow to support its dividend even though its sales are falling. In fact, its cash dividend payout ratio is only 23%, significantly lower than AbbVie's, which is north of 50%. Clearly, Gilead Sciences has wiggle room to return more money to investors through dividends.
AbbVie's dividend potential may be even more compelling, though. Since being spun out of Abbott Labs in 2013, its dividend has increased by 140%. Given AbbVie's double-digit top- and bottom-line growth, a recent 35% increase to its quarterly dividend payment, multiple potential blockbuster approvals, and a forward dividend yield of 3.3% that's better than Gilead Sciences' 2.8% rate, AbbVie looks better here, too.
One more thing
The one category where Gilead Sciences shines versus AbbVie is in valuation. AbbVie trades at a forward P/E of 13 and a price-to-sales of 6.4, while Gilead Sciences trades at 12.3 times forward EPS and 3.9 times sales. Clearly, Gilead Sciences is cheaper than AbbVie. That alone might not be enough of a reason to favor it over AbbVie, though.
Gilead Sciences is forecasting sales of between only $20 billion and $21 billion this year, down from $25.7 billion in 2016, and if its sales and profit fall faster than feared, then its valuation advantage could fade, especially if AbbVie over-delivers on its outlook for 13% sales growth this year.
For this reason, I think AbbVie is the better stock to buy until Gilead Sciences proves its sales and profit have stopped declining.
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Todd Campbell owns shares of Celgene and Gilead Sciences. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Celgene and Gilead Sciences. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The 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) and Gilead Sciences (NASDAQ: GILD) are two of the world's biggest biotech stocks. By that measure, AbbVie is undeniably the better of the two stocks. Because of increased competition from AbbVie and other hepatitis C drugmakers, Gilead Sciences' sales and earnings have been declining since 2016. | Given AbbVie's double-digit top- and bottom-line growth, a recent 35% increase to its quarterly dividend payment, multiple potential blockbuster approvals, and a forward dividend yield of 3.3% that's better than Gilead Sciences' 2.8% rate, AbbVie looks better here, too. AbbVie trades at a forward P/E of 13 and a price-to-sales of 6.4, while Gilead Sciences trades at 12.3 times forward EPS and 3.9 times sales. AbbVie Inc. (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two of the world's biggest biotech stocks. | Given AbbVie's double-digit top- and bottom-line growth, a recent 35% increase to its quarterly dividend payment, multiple potential blockbuster approvals, and a forward dividend yield of 3.3% that's better than Gilead Sciences' 2.8% rate, AbbVie looks better here, too. Gilead Sciences is forecasting sales of between only $20 billion and $21 billion this year, down from $25.7 billion in 2016, and if its sales and profit fall faster than feared, then its valuation advantage could fade, especially if AbbVie over-delivers on its outlook for 13% sales growth this year. For this reason, I think AbbVie is the better stock to buy until Gilead Sciences proves its sales and profit have stopped declining. | Gilead Sciences is forecasting sales of between only $20 billion and $21 billion this year, down from $25.7 billion in 2016, and if its sales and profit fall faster than feared, then its valuation advantage could fade, especially if AbbVie over-delivers on its outlook for 13% sales growth this year. AbbVie Inc. (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two of the world's biggest biotech stocks. By that measure, AbbVie is undeniably the better of the two stocks. |
25653.0 | 2018-02-19 00:00:00 UTC | AbbVie Presents New Data on Upadacitinib for Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvie-presents-new-data-on-upadacitinib-for-crohns-disease-2018-02-19 | nan | nan | AbbVie Inc.ABBV announced new data from the phase II study on investigational JAK1 inhibitor, upadacitinib. The 52-week CELEST study evaluated upadacitinib in multiple dosing regimens through week 52 in adult patients with Crohn's disease and who were intolerant or had inadequate response to an immunomodulator or tumor necrosis factor alpha antagonist (TNF-a).
Patients who clinically responded to treatment in the 16-week induction phase maintained their response after the 36-week extension phaseof the study, which evaluated multiple dosing regimens of upadacitinib through week 52.
Please note that results from the 16-week induction phase from the CELEST study were previously announced in May last year.
The improvement seen in patients who were given higher doses (6 mg and 12 mg twice-daily) were numerically greater compared with 3 mg twice-daily at 52 weeks.
Results also showed that those patients who responded to upadacitinib induction treatment at week 16 achieved numerically higher rates of clinical remission and endoscopic response by patients receiving 12 mg dose in the extension phase compared with other other lower doses in 52 weeks.
The study showed that the overall safety profile of upadacitinib was consistent with that observed in other upadacitinib studies, with no new safety signals detected.
These data were presented at the 13th Congress of the European Crohn's and Colitis Organisation (ECCO) in Vienna, Austria.
AbbVie's shares have rallied 92% over a year, outperforming the industry 's growth of 13%.
Separately at the 2018 American Academy of Dermatology (AAD) Annual Meeting in San Diego., the company presentedresults from a phase IIb study evaluating upadacitinib, in adult patients with moderate to severe atopic dermatitis.
Upadacitinib also is mainly being investigated in six phase III studies for rheumatoid arthritis. Other studies are also underway for the treatment of ulcerative colitis and psoriatic arthritis.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank & Other Stocks to Consider
AbbVie carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the health care space are Exelixis EXEL , XOMA Corp XOMA and Enanta Pharma ENTA . While Exelixis sports a Zacks Rank #1 (Strong Buy), XOMA and Enanta Pharma carry a Zacks Rank #2, each. You can see the complete list of today's Zacks #1 Rank stocks here.
Exelixis' earnings per share estimates have moved up from 73 cents to 77 cents for 2018 in the last 60 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 572.92%. Share price of the company moved up 26.2% over a year.
XOMA's loss per share estimates have narrowed from 99 cents to 42 cents for 2018 in the last 60 days. The company pulled off a positive earnings surprise in one of the last four quarters, with an average beat of 47.92%. Share price of the company skyrocketed 392.4% over a year.
Enanta Pharma delivered a positive earnings surprise in three of the last four quarters, with an average beat of 373.1%. Share price of the company surged 179.7% over a 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. | AbbVie Inc.ABBV announced new data from the phase II study on investigational JAK1 inhibitor, upadacitinib. AbbVie's shares have rallied 92% over a year, outperforming the industry 's growth of 13%. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Other Stocks to Consider AbbVie carries a Zacks Rank #2 (Buy). | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Other Stocks to Consider AbbVie carries a Zacks Rank #2 (Buy). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report XOMA Corporation (XOMA): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Enanta Pharmaceuticals, Inc. (ENTA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced new data from the phase II study on investigational JAK1 inhibitor, upadacitinib. | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Other Stocks to Consider AbbVie carries a Zacks Rank #2 (Buy). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report XOMA Corporation (XOMA): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Enanta Pharmaceuticals, Inc. (ENTA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced new data from the phase II study on investigational JAK1 inhibitor, upadacitinib. | AbbVie Inc.ABBV announced new data from the phase II study on investigational JAK1 inhibitor, upadacitinib. AbbVie's shares have rallied 92% over a year, outperforming the industry 's growth of 13%. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Other Stocks to Consider AbbVie carries a Zacks Rank #2 (Buy). |
25654.0 | 2018-02-19 00:00:00 UTC | 6 Notable Dividend Stocks Boost Payouts, Including Coca-Cola (KO) | ABBV | https://www.nasdaq.com/articles/6-notable-dividend-stocks-boost-payouts-including-coca-cola-ko-2018-02-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The S&P 500 Index bounced back strongly last week, fueled by a continued stretch of positive corporate earnings reports. A handful of dividend stocks added to the bullish sentiment by announcing dividend raises.
Six notable dividend stocks increased their payouts over the last week, including two healthcare companies, a major investment firm, a popular beverage manufacturer, and a paint producer.
Here are six dividend stocks increasing payouts .
The Coca-Cola Co (NYSE: KO ) announced a 5% raise to its quarterly dividend, increasing it from 37 cents per share to 39 cents. Shareholders of record as of March 15 will receive their higher dividends on April 2 from the global beverages manufacturer. Therefore, KO shares will be ex-dividend on March 14.
KO Dividend Yield: 3.44%
AbbVie Inc (NYSE: ABBV ) moved its quarterly dividend higher by a whopping 35%, increasing it from 71 cents per share to 96 cents. The biopharmaceutical company will pay its higher dividend to shareholders of record as of April 13 on May 15. Because of this, ABBV shares trade ex-dividend on April 12.
ABBV Dividend Yield: 3.24%
5 Cheap Dividend Stocks With Growing Payouts
Medical Properties Trust, Inc. (NYSE: MPW ) increased its quarterly dividend by 4%, raising its payment to 25 cents per share from 24 cents. Shareholders of record as of March 15 will receive dividends from the healthcare real estate investment trust on April 12. As a result, the company's shares trade ex-dividend on March 14.
MPW Dividend Yield: 7.79%
Sherwin-Williams Co (NYSE: SHW ) announced a 1% increase to its quarterly dividend, raising it from 85 cents per share to 86 cents. Dividends will be paid from the paints and coatings manufacturer on March 9 to shareholders of record as of February 26. Therefore, SHW shares trade ex-dividend on February 23.
SHW Dividend Yield: 0.85%
Clorox Co (NYSE: CLX ) increased its quarterly dividend by 14%, raising its payment to 96 cents per share from 84 cents. Shareholders of record as of April 25 will receive their higher dividends on May 11 from the consumer products conglomerate. Because of this, CLX shares will be ex-dividend on April 24.
CLX Dividend Yield: 2.91%
T. Rowe Price Group Inc (NASDAQ: TROW ) announced a 23% increase to its quarterly dividend, raising it from 57 cents per share to 70 cents. Dividends will be paid from the investment management firm on March 29 to shareholders of record as of March 15. As a result, TROW shares become ex-dividend on March 14.
TROW Dividend Yield: 2.54%
As of this writing, Brian Bollinger had no position in any of the stocks mentioned.
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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. | KO Dividend Yield: 3.44% AbbVie Inc (NYSE: ABBV ) moved its quarterly dividend higher by a whopping 35%, increasing it from 71 cents per share to 96 cents. Because of this, ABBV shares trade ex-dividend on April 12. ABBV Dividend Yield: 3.24% 5 Cheap Dividend Stocks With Growing Payouts Medical Properties Trust, Inc. (NYSE: MPW ) increased its quarterly dividend by 4%, raising its payment to 25 cents per share from 24 cents. | ABBV Dividend Yield: 3.24% 5 Cheap Dividend Stocks With Growing Payouts Medical Properties Trust, Inc. (NYSE: MPW ) increased its quarterly dividend by 4%, raising its payment to 25 cents per share from 24 cents. KO Dividend Yield: 3.44% AbbVie Inc (NYSE: ABBV ) moved its quarterly dividend higher by a whopping 35%, increasing it from 71 cents per share to 96 cents. Because of this, ABBV shares trade ex-dividend on April 12. | ABBV Dividend Yield: 3.24% 5 Cheap Dividend Stocks With Growing Payouts Medical Properties Trust, Inc. (NYSE: MPW ) increased its quarterly dividend by 4%, raising its payment to 25 cents per share from 24 cents. KO Dividend Yield: 3.44% AbbVie Inc (NYSE: ABBV ) moved its quarterly dividend higher by a whopping 35%, increasing it from 71 cents per share to 96 cents. Because of this, ABBV shares trade ex-dividend on April 12. | KO Dividend Yield: 3.44% AbbVie Inc (NYSE: ABBV ) moved its quarterly dividend higher by a whopping 35%, increasing it from 71 cents per share to 96 cents. Because of this, ABBV shares trade ex-dividend on April 12. ABBV Dividend Yield: 3.24% 5 Cheap Dividend Stocks With Growing Payouts Medical Properties Trust, Inc. (NYSE: MPW ) increased its quarterly dividend by 4%, raising its payment to 25 cents per share from 24 cents. |
25655.0 | 2018-02-17 00:00:00 UTC | This Stock Gets a Gold Medal for Being the Best Blue Chip Biotech | ABBV | https://www.nasdaq.com/articles/stock-gets-gold-medal-being-best-blue-chip-biotech-2018-02-17 | nan | nan | With worry over its top-selling Humira fading and clarity into plans supporting its future growth, AbbVie Inc. (NYSE: ABBV) is racking up medal-winning returns for investors.
In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and contributor Todd Campbell explain how AbbVie's efforts to overcome future headwinds due to Humira competition and increase its sales and profit deserve a gold medal.
A full transcript follows the video.
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Kristine Harjes: Do you want to take us to the second to last category of the day?
Todd Campbell: Absolutely. This is a stock that I could have probably chosen as a winner in the dividend category as well, but didn't. For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. You and I talked a little bit about this company on last week's show, so I won't go too much in-depth into it. But, one of the reasons that I like this company is that they've really provided investors with a lot of good clarity over the past year into where their business could be going over the course of the next five to 10 years. I think a lot of people have been worried up until now about Humira, which is the company's best-selling drug, it accounts for 65% of their revenue, so they should be worried about patent expiration on that drug. But last fall, the company actually won a very important patent decision that then allowed it to negotiate a non-exclusive license for one of the competitors that would launch a biosimilar to Humira. And that is going to delay the entrance of that biosimilar until 2023. As part of that, they are then able to do a little bit of long range planning and say, we think now Humira sales may grow from $18.4 billion today to $21 billion by 2020. And not only do we get the extra few years of all that revenue, but it gives us extra time to launch other drugs that can more than make up for any fall off in revenue once those biosimilars do make it to market. They have Elagolix, which is an endometriosis drug that's under FDA review, they have data coming soon for Rova-T, which is a solid tumor drug that has billion-dollar potential, and they have two other drugs in autoimmune disease for rheumatoid arthritis and psoriasis that could have $6.5 and $5 billion in peak sales opportunity respectively. Given how much money the company is already generating in operating cash, and the potential to move the needle in the future, I think this is a top-shelf gold medal winner when it comes to big cap biotech.
Harjes: As you mentioned, we just covered this company in even more depth last week, so I'll refrain from adding too many details that might just repeat last week's content. But go check that out, listeners, if you haven't listened to it yet.
Kristine Harjes has no position in any of the stocks mentioned. Todd Campbell 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. | With worry over its top-selling Humira fading and clarity into plans supporting its future growth, AbbVie Inc. (NYSE: ABBV) is racking up medal-winning returns for investors. In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and contributor Todd Campbell explain how AbbVie's efforts to overcome future headwinds due to Humira competition and increase its sales and profit deserve a gold medal. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. With worry over its top-selling Humira fading and clarity into plans supporting its future growth, AbbVie Inc. (NYSE: ABBV) is racking up medal-winning returns for investors. | In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and contributor Todd Campbell explain how AbbVie's efforts to overcome future headwinds due to Humira competition and increase its sales and profit deserve a gold medal. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. With worry over its top-selling Humira fading and clarity into plans supporting its future growth, AbbVie Inc. (NYSE: ABBV) is racking up medal-winning returns for investors. | In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and contributor Todd Campbell explain how AbbVie's efforts to overcome future headwinds due to Humira competition and increase its sales and profit deserve a gold medal. With worry over its top-selling Humira fading and clarity into plans supporting its future growth, AbbVie Inc. (NYSE: ABBV) is racking up medal-winning returns for investors. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. |
25656.0 | 2018-02-16 00:00:00 UTC | AbbVie Hikes Dividend by 35%, Launches $10B Buyback Plan | ABBV | https://www.nasdaq.com/articles/abbvie-hikes-dividend-by-35-launches-%2410b-buyback-plan-2018-02-16 | nan | nan | AbbVieABBV announced a 35% hike in its quarterly dividend along with the authorization of a new $10 billion share buyback program by the board. AbbVie stock rose more than 1% on Thursday in response to the news.
The dividend was increased from 71 cents per share to 96 cents per share. The cash dividend is payable on May 15 to shareholders of record on Apr 13. The new quarterly dividend amounts to an annual dividend of $3.84 per share, which implies a dividend yield of 3.4%.
Please note that this is the second dividend hike for AbbVie in less than six months. In October last year, AbbVie announced an 11% hike in quarterly dividend to 71 cents per share from 64 cents per share.
AbbVie hiked its quarterly dividend by 4% in 2015 and 12% each in 2016 and 2017. In fact, since its inception in 2013, AbbVie has hiked its dividend by 140%.
On the fourth quarter conference call held last month, management hinted that shareholder returns were likely to go up as the company's cash position has improved following the recent U.S. tax reforms.
In fact, AbbVie has performed exceptionally well in the past year, supported by a series of positive news. The stock has returned 86.9% in the past year, comparing favorably with a gain of 10.6% recorded by the industry .
AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis.
Meanwhile, AbbVie gained regulatory approvals in the United States, Europe, and Japan for its competitive HCV medicine Mavyret and FDA approval for the sixth indication of cancer drug, Imbruvica. In fact, Mavyret's launch has been stronger than expected as informed by the company on its fourth-quarter conference call.
AbbVie also settled its patent disputes with Amgen AMGN , which delayed the launch of the latter's biosimilar version of AbbVie's blockbuster arthritis drug, Humira in the United States to 2023 and in most countries in the EU to October 2018.
This agreement has removed a major overhang on AbbVie's shares. Moreover, the agreement gave AbbVie ample time to focus on developing its pipeline and launching new products that will help make up for the loss of revenues once biosimilar Humira enters the market.
With several pivotal data readouts and regulatory milestones expected in 2018, the bullish run of the stock should continue in 2018. Importantly, Humira has been generating solid sales based on strong demand trends for the drug - a trend expected to continue this year. Imbruvica, AbbVie's second most important drug, is also doing consistently well and has multibillion dollar potential. AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. All these factors bode well for the stock.
AbbVie 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Moreover, the agreement gave AbbVie ample time to focus on developing its pipeline and launching new products that will help make up for the loss of revenues once biosimilar Humira enters the market. AbbVieABBV announced a 35% hike in its quarterly dividend along with the authorization of a new $10 billion share buyback program by the board. AbbVie stock rose more than 1% on Thursday in response to the news. | In October last year, AbbVie announced an 11% hike in quarterly dividend to 71 cents per share from 64 cents per share. AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis. 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 Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | In October last year, AbbVie announced an 11% hike in quarterly dividend to 71 cents per share from 64 cents per share. AbbVie met primary endpoints in several pivotal studies - the key phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory chronic lymphocytic leukemia; three phase III studies evaluating oral JAK-1 selective inhibitor, upadacitinib for rheumatoid arthritis and also a phase IIb study in atopic dermatitis; and four pivotal head-to-head phase III studies evaluating risankizumab versus Johnson & Johnson's JNJ Stelara and Humira, for moderate-to-severe chronic plaque psoriasis. 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 Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | In fact, since its inception in 2013, AbbVie has hiked its dividend by 140%. AbbVieABBV announced a 35% hike in its quarterly dividend along with the authorization of a new $10 billion share buyback program by the board. AbbVie stock rose more than 1% on Thursday in response to the news. |
25657.0 | 2018-02-16 00:00:00 UTC | Health Care Sector Update for 02/16/2018: ABBV,APRI,UTHR,PCRX | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-02162018-abbvapriuthrpcrx-2018-02-16 | nan | nan | Top Health Care Stocks
JNJ +1.73%
PFE +1.93%
ABT +1.47%
MRK +0.76%
AMGN +0.11%
Health care stocks resisted the late weakness affecting most other industry sectors this afternoon, including the NYSE Health Care Index hanging on for 1.1% gain. Also today, shares of health care companies in the S&P 500 were up nearly 1.0% as a group although the Nasdaq Biotechnology index was down nearly 0.2%.
Among health care stocks moving on news:
AbbVie ( ABBV ) gained Friday, rising almost 4% to a session high of $119.09 a share, after the drug-maker said its Upadacitinib drug candidate continued to show a response after 36 weeks in patients during Phase II testing in patients with Crohn's disease. The trial also showed the drug's safety profile was consistent with previous testing, with a sub-analysis of data showed a "significant" share of patients treated with Upadacitinib achieved a modified clinical remission as soon as four weeks compared with those patients treated with a placebo.
In other sector news:
+ United Therapeutics ( UTHR ) gained after late Thursday saying it has settled a patent legal fight with Actavis Laboratories FL over its Orenitram extended-release tablets. Under terms of the agreement, privately held Activis received a licence from United to manufacture and commercialize a generic version of the drug used to treat pulmonary arterial hypertension.
- Pacira Pharmaceuticals ( PCRX ) declined after an FDA advisory panel failed to reach a unanimous decision on the efficacy and safety of the company's Exparel as a nerve block for regional analgesia. The U.S. Food and Drug Administration is not bound to follow the Anesthetic and Analgesic Drug Products Advisory Committee's 4-to-6 decision against recommending the new drug application, believing Pacira needs to conduct more research, although it usually does.
- Apricus Biosciences ( APRI ) fell under $1 a share for the first time since June 2017, plunging almost 71% to a session low of 93 cents a share, after saying federal regulators rejected the new drug application for its Vitaros topical cream to treat erectile dysfunction. In its complete response letter, the FDA said it could not approve the application in its present form, identifying deficiencies in Vitaros' chemistry, manufacturing and controls as well as citing certain safety concerns specific to the current formulation, Apricus said in a statement.
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 ) gained Friday, rising almost 4% to a session high of $119.09 a share, after the drug-maker said its Upadacitinib drug candidate continued to show a response after 36 weeks in patients during Phase II testing in patients with Crohn's disease. In other sector news: + United Therapeutics ( UTHR ) gained after late Thursday saying it has settled a patent legal fight with Actavis Laboratories FL over its Orenitram extended-release tablets. - Pacira Pharmaceuticals ( PCRX ) declined after an FDA advisory panel failed to reach a unanimous decision on the efficacy and safety of the company's Exparel as a nerve block for regional analgesia. | Among health care stocks moving on news: AbbVie ( ABBV ) gained Friday, rising almost 4% to a session high of $119.09 a share, after the drug-maker said its Upadacitinib drug candidate continued to show a response after 36 weeks in patients during Phase II testing in patients with Crohn's disease. 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 ) gained Friday, rising almost 4% to a session high of $119.09 a share, after the drug-maker said its Upadacitinib drug candidate continued to show a response after 36 weeks in patients during Phase II testing in patients with Crohn's disease. Health care stocks resisted the late weakness affecting most other industry sectors this afternoon, including the NYSE Health Care Index hanging on for 1.1% gain. The trial also showed the drug's safety profile was consistent with previous testing, with a sub-analysis of data showed a "significant" share of patients treated with Upadacitinib achieved a modified clinical remission as soon as four weeks compared with those patients treated with a placebo. | Among health care stocks moving on news: AbbVie ( ABBV ) gained Friday, rising almost 4% to a session high of $119.09 a share, after the drug-maker said its Upadacitinib drug candidate continued to show a response after 36 weeks in patients during Phase II testing in patients with Crohn's disease. Top Health Care Stocks Health care stocks resisted the late weakness affecting most other industry sectors this afternoon, including the NYSE Health Care Index hanging on for 1.1% gain. |
25658.0 | 2018-02-16 00:00:00 UTC | Stocks To Watch: Bristol-Myers Squibb Sees RS Rating Jump To 83 | ABBV | https://www.nasdaq.com/articles/stocks-watch-bristol-myers-squibb-sees-rs-rating-jump-83-2018-02-16 | nan | nan | When building your watch list, look for stocks with an 80 or higher RS Rating . Bristol-Myers Squibb ( BMY ) just met that criteria with a new score of 83.
[ibd-display-video id=3105496 width=50 float=left autostart=true] IBD's proprietary RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating of at least 80 in the early stages of their moves.
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Bristol-Myers Squibb has moved more than 5% past a 66.20 entry in a first-stage flat base , meaning it's now out of a proper buy zone. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings growth increased last quarter from -3% to 8%, but the top line fell from 7% to 4%.
Bristol-Myers Squibb earns the No. 6 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ), Zoetis ( ZTS ) and Novo Nordisk ( NVO ) are among the top 5 highly rated stocks within the group.
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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 ), Zoetis ( ZTS ) and Novo Nordisk ( NVO ) are among the top 5 highly rated stocks within the group. See How IBD Helps You Make More Money In Stocks Bristol-Myers Squibb has moved more than 5% past a 66.20 entry in a first-stage flat base , meaning it's now out of a proper buy zone. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week line. | AbbVie ( ABBV ), Zoetis ( ZTS ) and Novo Nordisk ( NVO ) are among the top 5 highly rated stocks within the group. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? How Relative Strength Line Can Help You Judge A Stock 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 ), Zoetis ( ZTS ) and Novo Nordisk ( NVO ) are among the top 5 highly rated stocks within the group. [ibd-display-video id=3105496 width=50 float=left autostart=true] IBD's proprietary RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database. Biotech And Pharmaceutical Industry And Stock News IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating? | AbbVie ( ABBV ), Zoetis ( ZTS ) and Novo Nordisk ( NVO ) are among the top 5 highly rated stocks within the group. [ibd-display-video id=3105496 width=50 float=left autostart=true] IBD's proprietary RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database. Bristol-Myers Squibb earns the No. |
25659.0 | 2018-02-16 00:00:00 UTC | Top-Rated Stocks: Zoetis Sees Composite Rating Climb To 97 | ABBV | https://www.nasdaq.com/articles/top-rated-stocks-zoetis-sees-composite-rating-climb-97-2018-02-16 | nan | nan | On Friday, Zoetis ( ZTS ) got an upgrade for its IBD SmartSelect Composite Rating from 91 to 97.
[ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. Winning stocks often have a 95 or higher grade in the early stages of a new price run.
Zoetis is currently extended beyond a proper buy zone after breaking out from a 63.95 buy point in a flat base.
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The stock earns a 96 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 96% of all stocks.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors over the last 13 weeks.
In Q4, the company posted 47% earnings growth. It has now posted accelerating EPS growth for two consecutive quarters. Top line growth climbed 14%, up from 9% in the prior report. The company has now posted rising growth in each of the last two reports.
Zoetis earns the No. 2 rank among its peers in the Medical-Ethical Drugs industry group. AbbVie ( ABBV ) is the No. 1-ranked stock within the group.
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Which Companies Are Now Outperforming 95% Of All Stocks?
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 ) is the No. On Friday, Zoetis ( ZTS ) got an upgrade for its IBD SmartSelect Composite Rating from 91 to 97. Winning stocks often have a 95 or higher grade in the early stages of a new price run. | AbbVie ( ABBV ) is the No. See How IBD Helps You Make More Money In Stocks The stock earns a 96 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 96% of all stocks. In Q4, the company posted 47% earnings growth. | AbbVie ( ABBV ) is the No. [ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. See How IBD Helps You Make More Money In Stocks The stock earns a 96 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 96% of all stocks. | AbbVie ( ABBV ) is the No. See How IBD Helps You Make More Money In Stocks The stock earns a 96 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 96% of all stocks. The company has now posted rising growth in each of the last two reports. |
25660.0 | 2018-02-15 00:00:00 UTC | Did AbbVie, Inc. Just Become the Most Shareholder-Friendly Stock in America? | ABBV | https://www.nasdaq.com/articles/did-abbvie-inc-just-become-most-shareholder-friendly-stock-america-2018-02-15 | nan | nan | AbbVie, Inc. 's (NYSE: ABBV) on a roll and it wants its investors to profit. The company's dividend payments and stock buybacks since becoming public in 2013 have steadily increased, and on Thursday management outlined a new plan to return even more money to its shareholders.
Cashing in on clarity
AbbVie generates 65% of its sales from Humira, a best-selling autoimmune disease drug. Until recently, worry over Humira's patent protection has created uncertainty among investors that has weighed down the company's share price.
Concern over Humira's future began easing last fall, and that has management and investors cheering. A patent ruling on Humira in September thwarted a challenge by Coherus Biosciences ', and shortly thereafter Amgen (NASDAQ: AMGN) signed a non-exclusive license prohibiting it from marketing a Humira biosimilar in the U.S. until 2023.
The two events add conviction to management's claims that it can protect its biggest cash cow for a few more years. In January, management forecast that Humira's sales could grow from $18.4 billion in 2017 to $21 billion in 2020. Furthermore, it said it believes that Humira will contribute significantly to its sales until at least 2025.
The bullish outlook is encouraging because it suggests that management has plenty of time to expand its existing drugs into new indications and establish drugs that are currently in its pipeline as blockbusters .
In the past, AbbVie's said that peak sales of Imbruvica, a cancer drug, could be $7 billion. With a recent label expansion for use in graft-versus-host disease and full-year global sales of $2.573 billion in 2017, up 40.5% from 2016, it appears to be well on its way. Venxclexta label expansions, including one that's pending for its use alongside Rituxan in relapsing or refractory chronic lymphocytic leukemia, could significantly grow its sales, and if Elagolix wins FDA approval this year in endometriosis, then it could be an important revenue-producing drug, too. Management also has high hopes for its hepatitis C drug Mavyret, predicting last month its sales could drive hepatitis C revenue up to $2.5 billion this year from $1.3 billion in 2017.
Rova-T, a solid-tumor cancer drug, upadicitinib, a rheumatoid arthritis drug, and risankizumab, a psoriasis drug are the three most exciting potential blockbuster drugs in AbbVie's pipeline. Management's targeting FDA approvals for each in the coming year. If approved, all three have multibillion-dollar per year sales potential, according to forecasts.
Given the additional clarity into Humira's future, a stable of fast-growing drugs, and multiple blockbusters making their way to market, AbbVie should have plenty of cash flow coming in to support dividend payments and buybacks.
AbbVie boasts one of the best operating margins in the industry, and that's allowing it to return a substantial amount of money to investors. Since being spun-off from Abbott Labs in 2013, AbbVie's dividend has increased 77% through Wednesday. Following Thursday's announcement that it's increasing its quarterly dividend payment to $0.96 from $0.71, that figure jumps to an eye-popping 140% growth.
In addition to increasing its dividend by 35% Thursday, AbbVie announced a new $10 billion share buyback program. The program replaces its existing buyback plans, and over time it should provide additional support to future earnings-per-share growth.
The takeaway
If clinical trials go AbbVie's way, then it thinks its non-Humira revenue can grow from $9.6 billion in 2017 to over $16 billion in 2020 to over $35 billion in 2025. A lot could go wrong between now and then, but if sales end up anywhere near those projections, AbbVie should be able to offset any sales decline for Humira when it does eventually face-off against biosimilar copy-cats.
Overall, AbbVie's decision to increase its dividend by so much has me thinking management's comfortable that its cash flow isn't going to shrink anytime soon. With a runway toward ongoing double-digit top- and bottom-line growth and a forward dividend yield that's now 3.3%, an argument can be made that AbbVie's become the most shareholder-friendly stock investors can buy.
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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 the additional clarity into Humira's future, a stable of fast-growing drugs, and multiple blockbusters making their way to market, AbbVie should have plenty of cash flow coming in to support dividend payments and buybacks. With a runway toward ongoing double-digit top- and bottom-line growth and a forward dividend yield that's now 3.3%, an argument can be made that AbbVie's become the most shareholder-friendly stock investors can buy. AbbVie, Inc. 's (NYSE: ABBV) on a roll and it wants its investors to profit. | Given the additional clarity into Humira's future, a stable of fast-growing drugs, and multiple blockbusters making their way to market, AbbVie should have plenty of cash flow coming in to support dividend payments and buybacks. In addition to increasing its dividend by 35% Thursday, AbbVie announced a new $10 billion share buyback program. AbbVie, Inc. 's (NYSE: ABBV) on a roll and it wants its investors to profit. | Rova-T, a solid-tumor cancer drug, upadicitinib, a rheumatoid arthritis drug, and risankizumab, a psoriasis drug are the three most exciting potential blockbuster drugs in AbbVie's pipeline. Given the additional clarity into Humira's future, a stable of fast-growing drugs, and multiple blockbusters making their way to market, AbbVie should have plenty of cash flow coming in to support dividend payments and buybacks. AbbVie, Inc. 's (NYSE: ABBV) on a roll and it wants its investors to profit. | Given the additional clarity into Humira's future, a stable of fast-growing drugs, and multiple blockbusters making their way to market, AbbVie should have plenty of cash flow coming in to support dividend payments and buybacks. In addition to increasing its dividend by 35% Thursday, AbbVie announced a new $10 billion share buyback program. AbbVie, Inc. 's (NYSE: ABBV) on a roll and it wants its investors to profit. |
25661.0 | 2018-02-15 00:00:00 UTC | AbbVie Stock Rises After Increasing Dividend By 35% | ABBV | https://www.nasdaq.com/articles/abbvie-stock-rises-after-increasing-dividend-35-2018-02-15 | nan | nan | AbbVie ( ABBV ) shares climbed Thursday after the biopharma announced it would raise its dividend by 35% to 96 cents per share and authorized a new $10 billion stock repurchase program. The dividend increased from 71 cents per share.
[ibd-display-video id=3149582 width=50 float=left autostart=true] Piper Jaffray analyst Christopher Raymond boosted his price target on AbbVie to 138 from 130, and kept his overweight rating. The news follows AbbVie's guidance for a 9% tax rate in 2018 following U.S. tax reform.
"After an unexpected (and somewhat alarming) midday trading halt, AbbVie announced its board-approved plans for deployment of capital following U.S. tax reform, which will include $10 billion in additional share repurchase authorization and a 35% dividend increase," he said in a note to clients.
Raymond also boosted his earnings per share outlook for AbbVie to $7.60, $8.87 and $10.41 for the 2018-20 fiscal years, respectively.
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The cash dividend is payable May 15 to stockholders of record at the close of business on April 13, AbbVie said in a news release.
In after-hours trading on the stock market today , AbbVie rose a fraction after advancing 1.6% during the regular session, to 114.90. Drug stocks closed the day up 2.3%, enjoying a fifth day running in the black.
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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 cash dividend is payable May 15 to stockholders of record at the close of business on April 13, AbbVie said in a news release. In after-hours trading on the stock market today , AbbVie rose a fraction after advancing 1.6% during the regular session, to 114.90. AbbVie ( ABBV ) shares climbed Thursday after the biopharma announced it would raise its dividend by 35% to 96 cents per share and authorized a new $10 billion stock repurchase program. | "After an unexpected (and somewhat alarming) midday trading halt, AbbVie announced its board-approved plans for deployment of capital following U.S. tax reform, which will include $10 billion in additional share repurchase authorization and a 35% dividend increase," he said in a note to clients. AbbVie ( ABBV ) shares climbed Thursday after the biopharma announced it would raise its dividend by 35% to 96 cents per share and authorized a new $10 billion stock repurchase program. [ibd-display-video id=3149582 width=50 float=left autostart=true] Piper Jaffray analyst Christopher Raymond boosted his price target on AbbVie to 138 from 130, and kept his overweight rating. | AbbVie ( ABBV ) shares climbed Thursday after the biopharma announced it would raise its dividend by 35% to 96 cents per share and authorized a new $10 billion stock repurchase program. "After an unexpected (and somewhat alarming) midday trading halt, AbbVie announced its board-approved plans for deployment of capital following U.S. tax reform, which will include $10 billion in additional share repurchase authorization and a 35% dividend increase," he said in a note to clients. [ibd-display-video id=3149582 width=50 float=left autostart=true] Piper Jaffray analyst Christopher Raymond boosted his price target on AbbVie to 138 from 130, and kept his overweight rating. | [ibd-display-video id=3149582 width=50 float=left autostart=true] Piper Jaffray analyst Christopher Raymond boosted his price target on AbbVie to 138 from 130, and kept his overweight rating. The news follows AbbVie's guidance for a 9% tax rate in 2018 following U.S. tax reform. "After an unexpected (and somewhat alarming) midday trading halt, AbbVie announced its board-approved plans for deployment of capital following U.S. tax reform, which will include $10 billion in additional share repurchase authorization and a 35% dividend increase," he said in a note to clients. |
25662.0 | 2018-02-15 00:00:00 UTC | 6 Healthcare Stocks We Think Deserve Gold Medals (Hint: One's a Marijuana Stock) | ABBV | https://www.nasdaq.com/articles/6-healthcare-stocks-we-think-deserve-gold-medals-hint-ones-marijuana-stock-2018-02-15 | nan | nan | The U.S. won its 100th gold medal in Winter Olympics history this week, and that got us thinking: If there were an Olympics for healthcare companies, who would be the winners?
To find out, we asked The Motley Fool's Industry Focus: Healthcare analyst Kristine Harjes and healthcare specialist Todd Campbell to pick winners across six categories:
Best dividend stock
Best financial fortitude stock
Best marijuana stock
Best healthcare IT stock
Best blue-chip biotech stock
Best international healthcare stock
The duo revealed their picks on this week's show, and while their list includes well-known healthcare heavyweights Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , some of their other gold medal winners may surprise you.
A full transcript follows the video.
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*Stock Advisor returns as of February 5, 2018
The author(s) may have a position in any stocks mentioned.
This video was recorded on Feb. 14, 2018.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. It's Wednesday, February 14th, and this is the Healthcare show. My name is Kristine Harjes, and Motley Fool healthcare writer Todd Campbell is joining me on the phone. Todd, first off, Happy Valentine's Day! And also, happy Olympics!
Todd Campbell: Yeah, Happy Valentine's Day to you, too! And yes, I understand that there's this small little competition going on in Korea that I've heard a little bit about.
Harjes: Yeah. I mean, it's not really a big deal, it's just a handful of the top athletes in the world competing in all sorts of winter events.
Campbell: Doing crazy, phenomenal things that I know I could never do even at my peak.
Harjes: Yeah. I have to say, I'm not a big TV watcher, but every time I've been out at a bar or a restaurant since the Olympics have been going on, if it's on the screen, I can't help but watch it. These people are so impressive.
Campbell: One of the things I want to see, I don't know if you got a chance to see it yet, I'm going to have to google for it later, but I heard Shaun White did an unbelievable job winning the gold in the halfpipe --
Harjes: I see Austin nodding out there.
Austin Morgan: The entire U.S. snowboard team has taken gold so far. So, there's that.
Harjes: That's pretty sick.
Campbell: That's amazing. I could see he was doing some 1440s, just amazing stuff. Have you ever snowboarded, Kristine?
Harjes: [laughs] So. I have once, and I will never do it again, because on my very first time snowboarding, I broke both of my wrists.
Campbell: What?!
Harjes: Yeah. [laughs]
Morgan: It's alright. Skiing is for people who can't snowboard.
Harjes: Hey -- no. The switching costs are high. I am a skier. I tried to snowboard once, and I really didn't do well with the whole "my feet are stuck together concept."
Campbell: I feel you. My 15-year-old, he got me to take some lessons, and I spent an entire day trying to figure it out. And on the very last run of the day, I thought I had it and I face planted and must have slid 15 or 20 yards down on the icy snow.
Harjes: Oh, no!
Campbell: And I was like, I'm done. But I didn't break anything like you. Wow!
Harjes: We're going to have to leave all the snowboarding to Shaun White and Austin Morgan. [laughs]
Campbell: And you know what's interesting about Shaun White's victory? That was the 100th gold medal that the U.S. has won over the history of the Winter Olympics. That's a pretty remarkable track record.
Harjes: That's pretty sweet. I didn't know that. So, we want to do an Olympics-themed show today, and talk about, if we could give out gold medals for healthcare companies, what would we give them out for and which companies would win? Todd, do you want to kick us off?
Campbell: Sure. There's so many events at the Olympics. If we tried to create categories for as many events as there are at the Olympics, our listeners would probably never finish the show.
Harjes: Yeah, we would be here all day.
Campbell: Yeah. I picked out three. I think you might have picked out a similar number. Mine, quickly, were: gold medal for dividend stocks , gold medal for marijuana stocks, and gold medal for big blue-chip biotechs.
Harjes: I also have three. I'll be doing a financial fortitude contest, and also a health tech, and also, because the Olympics are international in scope, I'll be picking my favorite international as a non-U.S. healthcare stock. We'll go back and forth, we'll pause for a break in the middle. Do you want to kick us off with a dividend stock?
Campbell: Sure. This was a little bit of a tough competition that was furiously fought. In the end, I ended up awarding the gold medal to Pfizer (NYSE: PFE) .
Harjes: It was a real nail-biter.
Campbell: It was a nail-biter, it was. It was right down to the wire, whose foot got over the finish line first. I almost went with J&J, because J&J has such a remarkable track record of increasing its dividend, I think 54 years in a row. But I ended up going with Pfizer for a couple of different reasons. Pfizer doesn't have that same long track record, but if you look at since 2011, when it had to cut its dividend because it had lost patent protection on Lipitor and was trying to conserve cash, but if you look since they did that, they've actually increased their dividend by more than J&J, I think it's about 30% vs. J&J's 27%. With their most recent increase of 6.25%, they're now yielding, I want to say it's 3.7% right now, which of course trounces the market.
A lot of times, you look at high dividend-yielding stocks and you get a little bit nervous. You worry that they're trading at a high dividend yield because they're making up for some other problem. But I don't think that's the case anymore with Pfizer. I think the Lipitor headwind was significant. It really dragged down the company's performance since 2011. But we're now at a point in 2018 where all of the hard work that's been done by Pfizer to cut costs and revamp its pipeline, all of that is about to start paying off. They came out with their goals for 2018, and they think that they're going to go from, they were pretty much breakeven last year, as far as revenue growth. They think this year, the top line is going to grow 4%, and they think their bottom line is going to grow 11%. Now, in a company as big as Pfizer, generating that much additional cash every quarter, that should be very, very dividend-friendly over time. So, they get my gold medal for the efforts they've done over the recent years to put them in a position for growth going forward.
Harjes: Alright, I hear you, but I would feel bad not giving Johnson & Johnson a gold medal for something, because they are a highly competitive company. So, in my next category, I will make the competition financial fortitude, and, of course, give the gold medal to Johnson & Johnson.
I'll start with the obvious. They have a AAA credit rating. They're one of just two companies, the other being Microsoft , that has that rating, which is higher than that of the U.S. government. This is just about the lowest-risk stock that I can think of. They have more than 260 different businesses, they have three different operating segments. If you're a regular listener to the show, I'm sure you can name them with me. It's Consumer Products, Medical Devices, Pharmaceuticals. At the end of 2017, Johnson & Johnson reported $16 billion in cash and short-term investments on their balance sheets, and this was before the change to the U.S. tax code that led to repatriation of $66 billion in foreign earnings, roughly $12 billion of which is immediately accessible. This wouldn't be a J&J pitch if I didn't talk about the dividend. Todd, you already started to talk about it a little bit, and I will elaborate. The company is part of a rare group of elite dividend payers known as the dividend aristocrats. Their yield is currently 2.6%. They have a cash dividend payout ratio of 50%, which is very healthy, and they're in no danger of not being able to raise it annually like they've been doing since 1963. So, to sum up, when it comes to financial fortitude, Johnson & Johnson gets the gold medal.
Campbell: And you know what, Kristine? They generated almost $19 billion in operating cash, so I see why you like that one so much.
Harjes: Absolutely.
Campbell: So, moving on to the next one, the next gold medal I was going to give out is for best marijuana stock. This is maybe controversial, but I don't think so. I think anyone who's been paying attention to what's going on for the last few years knows that there have been significant shifts in America's view toward marijuana, and there's been a lot of different activities, both here in the U.S. and abroad to expand the access, particularly to medical marijuana. I think we have about 30 states here in the U.S. that now have some form of marijuana law on the books, eight of which have passed recreational marijuana laws. Then, if you look north of the border in Canada, they have a national medical marijuana program in place, and they're looking at a national program in recreational marijuana opening up in July.
So, as you can imagine, with tens of billions of dollars per year on black market sales potentially moving into the public sphere, there's been a lot of interest in marijuana stocks and companies that are likely to benefit from it. And while you might say, "Well, what U.S. stocks are best positioned to benefit?" You and I have talked on the show in the past, Kristine, about the U.S. market and some of the hiccups and headaches that people are still facing and enduring in this marketplace. Marijuana is still illegal on a federal level. You can't take the same kind of business deductions that other companies do if you run a marijuana business. There's other concerns with cross-border transactions and banking. So, the gold medal for me doesn't go to a U.S. company. Instead, it goes north of the border to Canada, where I selected Canopy Growth as the gold medal winner for marijuana stocks. I just think they have a significant opportunity to generate some very substantial growth over the course of the next year or two, just from the opening of those recreational markets. And I know, Kristine, you had a great interview with Canopy Growth's CEO recently on one of the podcasts, and I recommend that all of our listeners go check it out.
Harjes: Yeah, I really enjoyed that interview so much, because I think the company is super interesting. There are a handful of fairly large Canadian marijuana stocks, but I agree with you, Todd, that I think Canada is the place to look, No. 1, and No. 2, I do think that Canopy Growth is the cream of the crop.
Campbell: They have 30% market share right now in medical. And it's hard to imagine with all the investments they've made in production that they're not going to be able to maintain a very significant share once the Canadian market opens up. I think that on that interview that you did with him, he had mentioned that there's about 250,000 registered patients receiving medical marijuana in Canada today. And he speculates that we could go a year out, a year and a half out, and have the number of people who are purchasing marijuana climb to 400,000-450,000. If so, you're talking about what some industry analysts think will be a $5 billion market, and that's just in Canada.
Harjes: Meanwhile, if you look in the rest of the world, there's even more opportunity there. In Europe alone, it's estimated that there's a $67 billion market for cannabis. It's just insane how quickly this industry has already grown, and how much expectation there is of future growth. And of course, that expectation is priced into this stock. But, as a company, yeah, I absolutely agree that they are gold medal level.
Campbell: Yeah. For them to win the gold medal again in 2018, though, the proof will be in the profitability. I think that Linton has said that he was purposely delaying turning a profit until the second half of 2018, once those recreational markets open. So, it'll be very interesting to see what happens, especially in the second half of the year, with this company and this stock. But, again, gold medal winner for me.
Harjes: And we're back to the Olympics of healthcare with our next competition, health tech. A very broad category, but my gold medal goes to a company called Veeva Systems . They're the dominant SaaS company in the life sciences space, and their value proposition is consolidating legacy IT systems into a single cloud-based system with add-on applications like event management and marketing territory alignment. It's specifically designed for healthcare companies and meeting industry-specific challenges like clinical trial management, regulatory requirements, data collection and more. Their legacy CRM platform is being used by a seriously impressive list of some of the most important and biggest drug makers out there, and their next phase of growth will come from their Veeva Vault, which is a line of products and data management, as well as expansion to beyond just life sciences, which is something that's pretty exciting and was made at the request of companies in other areas who had heard such great things about Veeva that they wanted to be able to use their offerings, even though they're not healthcare companies. From an investing standpoint, I love the predictability of a subscription business. And I also love that it's super sticky. Once you're in their product suite, it's really tough to get out of it and go to a competitor, even if you wanted to. That gives it a super wide moat.
Campbell: That's a really interesting stock. I think it's awesome that you picked it as a gold medalist. I went back and I started looking at this stock, and it's like, wow, no wonder they've had so much revenue growth and so much are earnings growth. Kristine, since 2010, we've gone from 100,000 trials registered on the clinicaltrials.gov website to 266,000 trials.
Harjes: Dang.
Campbell: Just since 2010. So, there's no wonder that that new Veeva Vault that's helping companies manage their clinical trials is enjoying some pretty rapid growth, I think 50% annualized year-over-year just for that piece of the business. So, even if you have some slowdown in that legacy customer relationship management software business, this Veeva Vault is opening up all sorts of new opportunities for them. It's an exciting time for the company.
Harjes: Absolutely. Alright, do you want to take us to the second to last category of the day?
Campbell: Absolutely. This is a stock that I could have probably chosen as a winner in the dividend category as well, but didn't. For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. You and I talked a little bit about this company on last week's show, so I won't go too much in-depth into it. But, one of the reasons that I like this company is that they've really provided investors with a lot of good clarity over the past year into where their business could be going over the course of the next five to 10 years. I think a lot of people have been worried up until now about Humira, which is the company's best-selling drug, it accounts for 65% of their revenue, so they should be worried about patent expiration on that drug. But last fall, the company actually won a very important patent decision that then allowed it to negotiate a non-exclusive license for one of the competitors that would launch a biosimilar to Humira. And that is going to delay the entrance of that biosimilar until 2023. As part of that, they are then able to do a little bit of long range planning and say, we think now Humira sales may grow from $18.4 billion today to $21 billion by 2020. And not only do we get the extra few years of all that revenue, but it gives us extra time to launch other drugs that can more than make up for any fall off in revenue once those biosimilars do make it to market. They have Elagolix, which is an endometriosis drug that's under FDA review, they have data coming soon for Rova-T, which is a solid tumor drug that has billion-dollar potential, and they have two other drugs in autoimmune disease for rheumatoid arthritis and psoriasis that could have $6.5 and $5 billion in peak sales opportunity respectively. Given how much money the company is already generating in operating cash, and the potential to move the needle in the future, I think this is a top-shelf gold medal winner when it comes to big cap biotech.
Harjes: As you mentioned, we just covered this company in even more depth last week, so I'll refrain from adding too many details that might just repeat last week's content. But go check that out, listeners, if you haven't listened to it yet.
Given that one of the central draws of the Olympics is its international flavor, I wanted to end on one final competition for best non-U.S. healthcare stock. For this one, I am giving the gold to Roche , the Swiss drug maker. Roche is already very dominant, and it can boast that it has two of the five best-selling drugs from 2017. These were Rituxan, which brought in nearly $8 billion in 2017, and Herceptin, which generated over $7.5 billion. Rituxan treats both certain cancers and autoimmune diseases, which, it's pretty unique that it does both, and it makes up about 18% of overall sales for Roche. Herceptin, meanwhile, treats breast and gastric cancer and makes up about 17% of sales. And it's important to note that both of these drugs are facing biosimilar competition. But that doesn't worry me, much.
Roche also has a cancer drug called Avastin, which had 2017 sales of more than $7 billion, and it still has patent protection. I'm also particularly excited to watch their anti-PD-L1 drug, Tecentriq, which just hit the market in May of 2016. Their growth trajectory for this drug is pretty incredible. 2017 sales of about $500 million, already tripled from 2016 levels, which is, of course, not a fair comparison because 2016 didn't get the whole year of sales. But, going forward, estimates are for a CAGR, compound annual growth rate, of 77% through the year 2022, bringing it up to annual sales of nearly $5 billion. Roche also has one of the largest R&D budgets of any big pharma, and that should continue to be the case for the next several years. I was on the pipeline page of their website earlier, scrolling through, and I literally got a finger cramp. That's how much they have going on.
Campbell: You know, Kristine, just to tag onto that, I saw that they had 25 label expansions or new drug approval in the E.U. and U.S. last year. 25!
Harjes: Actually, by my count, they have 31 just for Tecentriq. And some of them have expected filing dates this year, which is just incredible. And that's where you see that CAGR of 77% being driven by. Overall, worldwide prescription sales are expected to reach nearly $50 billion by 2022, which is a 4% CAGR. That's pretty good for a company of this size. You made a similar point when you were talking about Pfizer, but once you have such a large base, it's hard to grow much. So, that 4% actually puts them pretty close to the top of its class. It also has a dividend yield of 3.8%, which I think is just the icing on the cake to seal the deal that this is my gold medal finalist for international.
Campbell: And one of the things that's interesting, just to tag onto that, 5% growth since 2012, consistently. It's like, every year, 5% growth. So, maybe this isn't a company that's going to grow by leaps and bounds, but man, the consistency is fantastic!
Harjes: Yeah. I'm really impressed by what they're doing with their pipeline. Go check it out if you want to be as wowed as I was, but go easy on the scrolling finger. That's all we have for you today. If you have awards of your own that you think you'd like to give out or you think we missed, please send us an email at industryfocus@fool.com . As usual, if you want to send Industry Focus some Valentine's Day love, please head to iTunes and leave us a review. We love getting your reviews and hearing what's on your mind, and also helps us get the show out to new listeners. As always, 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. Our gold metal producer is Austin Morgan. For Todd Campbell, I'm Kristine Harjes, thanks for listening and Fool on!
Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Kristine Harjes owns shares of Johnson & Johnson. Todd Campbell owns shares of Microsoft and Pfizer. The Motley Fool owns shares of and recommends Johnson & Johnson and Veeva Systems. 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. | To find out, we asked The Motley Fool's Industry Focus: Healthcare analyst Kristine Harjes and healthcare specialist Todd Campbell to pick winners across six categories: Best dividend stock Best financial fortitude stock Best marijuana stock Best healthcare IT stock Best blue-chip biotech stock Best international healthcare stock The duo revealed their picks on this week's show, and while their list includes well-known healthcare heavyweights Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , some of their other gold medal winners may surprise you. For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. Campbell: One of the things I want to see, I don't know if you got a chance to see it yet, I'm going to have to google for it later, but I heard Shaun White did an unbelievable job winning the gold in the halfpipe -- Harjes: I see Austin nodding out there. | To find out, we asked The Motley Fool's Industry Focus: Healthcare analyst Kristine Harjes and healthcare specialist Todd Campbell to pick winners across six categories: Best dividend stock Best financial fortitude stock Best marijuana stock Best healthcare IT stock Best blue-chip biotech stock Best international healthcare stock The duo revealed their picks on this week's show, and while their list includes well-known healthcare heavyweights Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , some of their other gold medal winners may surprise you. For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. Mine, quickly, were: gold medal for dividend stocks , gold medal for marijuana stocks, and gold medal for big blue-chip biotechs. | To find out, we asked The Motley Fool's Industry Focus: Healthcare analyst Kristine Harjes and healthcare specialist Todd Campbell to pick winners across six categories: Best dividend stock Best financial fortitude stock Best marijuana stock Best healthcare IT stock Best blue-chip biotech stock Best international healthcare stock The duo revealed their picks on this week's show, and while their list includes well-known healthcare heavyweights Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , some of their other gold medal winners may surprise you. For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. So, we want to do an Olympics-themed show today, and talk about, if we could give out gold medals for healthcare companies, what would we give them out for and which companies would win? | To find out, we asked The Motley Fool's Industry Focus: Healthcare analyst Kristine Harjes and healthcare specialist Todd Campbell to pick winners across six categories: Best dividend stock Best financial fortitude stock Best marijuana stock Best healthcare IT stock Best blue-chip biotech stock Best international healthcare stock The duo revealed their picks on this week's show, and while their list includes well-known healthcare heavyweights Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , some of their other gold medal winners may surprise you. For my third pick, I'm giving the best blue-chip biotech gold medal to AbbVie. Campbell: So, moving on to the next one, the next gold medal I was going to give out is for best marijuana stock. |
25663.0 | 2018-02-14 00:00:00 UTC | 3 Top Stocks You Can Buy and Hold for the Next Decade | ABBV | https://www.nasdaq.com/articles/3-top-stocks-you-can-buy-and-hold-next-decade-2018-02-14 | nan | nan | Warren Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value." As is usually the case, Buffett was right.
There are plenty of stocks that should generate earnings that "march upward over the years" like Buffett described. I think AbbVie (NYSE: ABBV) , NVIDIA (NASDAQ: NVDA) , and The Walt Disney Company (NYSE: DIS) fit in that group and especially stand out as three of the top stocks you can buy and hold for the next decade.
1. AbbVie
I view AbbVie as the best big pharma stock on the market right now. It's certainly been the best over the last three years, with the highest total shareholder return and highest growth in adjusted earnings per share in the industry. AbbVie has a good shot at keeping its No. 1 spot for a while.
The biggest driver of AbbVie's past success is Humira, the top-selling drug in the world for several years running. AbbVie thinks that Humira will rake in close to $21 billion in annual sales by 2021. And while the autoimmune disease drug will face biosimilar competition in the U.S. in 2023 (and in Europe later this year), Humira is likely to continue generating plenty of revenue for AbbVie well into the next decade.
However, the more important catalysts for growth in the future will come from elsewhere. At the top of the list is cancer drug Imbruvica. New hepatitis C drug Mavyret seems destined to become AbbVie's next blockbuster. The company also claims multiple promising pipeline candidates, led by cancer drug Rova-T and autoimmune disease drug upadacitinib. Overall, AbbVie expects to launch at least 20 new products or indications by 2020.
While AbbVie's earnings growth from these drugs seem likely to push the stock higher, there's also another reason behind the company's tremendous total shareholder return of more than 270% over the last five years: its dividend. AbbVie's dividend currently yields 2.55%. The big pharma company has increased its dividend by nearly 78% since being spun off from parent Abbott Labs in 2013.
2. NVIDIA
I think that NVIDIA will be a top stock in 2018 . But I also like the graphics chipmaker's prospects over the next decade also. There are several trends working in NVIDIA's favor.
NVIDIA's core market, gaming, continues to grow by leaps and bounds. I don't see that slowing down, especially as virtual reality games increase in popularity. Gaming still contributes well over half of the company's total revenue, but that could change down the road.
One big reason why is the popularity of NVIDIA's graphics processing units (GPUs) in artificial intelligence (AI) processing. NVIDIA CEO Jensen Huang recently said that "virtually every internet and cloud service provider has embraced" NVIDIA's Volta architecture designed for AI. That wasn't an exaggeration.
NVIDIA's technology should also be critical for a specialized application of AI that holds the potential to be huge: self-driving cars. Hundreds of transportation companies are already using the NVIDIA Drive platform, which combines deep learning, sensor fusion, and surround vision for self-driving vehicles.
3. Walt Disney
There are plenty of reasons to like Walt Disney for the next decade as well. Let's start with its theme parks business. Disney's theme parks are more important to its bottom line than ever before . And the parks are performing really well, with 21% year-over-year operating income growth in the fourth quarter of 2017.
The company's studio entertainment segment also seems likely to do well for years to come. Disney owns several of the most lucrative movie franchises around, including Marvel superhero movies such as the Avengers and the Star Wars movies.
Also, Disney hopes to finalize its planned merger with Twenty-First Century Fox . The deal would add a large number of movies to Disney's content lineup, notably including the Avatar , Planet of the Apes , and X-Men movie franchises.
One area that has been challenging for Disney recently, though, is its media networks segment. The effects of cord-cutting have taken a toll on the segment's revenue. However, Disney is rolling out its own streaming services, including a new ESPN subscription service that will launch this spring at a low cost of $4.99 per month.
10 years is just a start
While Warren Buffett said that investors shouldn't own a stock for 10 minutes if they're not willing to own it for 10 years, he certainly didn't set a maximum on buying and holding. Buffett prefers to keep stocks for even longer periods of time.
I think that AbbVie, NVIDIA, and Disney are the kinds of stocks that you can buy and hold for the next decade because they're well-run companies with great products and continual innovation. But in my view, owning these three stocks for 10 years is just a start.
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Keith Speights owns shares of AbbVie, Nvidia, and Walt Disney. The Motley Fool owns shares of and recommends Nvidia and Walt Disney. 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 while the autoimmune disease drug will face biosimilar competition in the U.S. in 2023 (and in Europe later this year), Humira is likely to continue generating plenty of revenue for AbbVie well into the next decade. While AbbVie's earnings growth from these drugs seem likely to push the stock higher, there's also another reason behind the company's tremendous total shareholder return of more than 270% over the last five years: its dividend. I think that AbbVie, NVIDIA, and Disney are the kinds of stocks that you can buy and hold for the next decade because they're well-run companies with great products and continual innovation. | I think AbbVie (NYSE: ABBV) , NVIDIA (NASDAQ: NVDA) , and The Walt Disney Company (NYSE: DIS) fit in that group and especially stand out as three of the top stocks you can buy and hold for the next decade. AbbVie I view AbbVie as the best big pharma stock on the market right now. AbbVie has a good shot at keeping its No. | I think AbbVie (NYSE: ABBV) , NVIDIA (NASDAQ: NVDA) , and The Walt Disney Company (NYSE: DIS) fit in that group and especially stand out as three of the top stocks you can buy and hold for the next decade. While AbbVie's earnings growth from these drugs seem likely to push the stock higher, there's also another reason behind the company's tremendous total shareholder return of more than 270% over the last five years: its dividend. I think that AbbVie, NVIDIA, and Disney are the kinds of stocks that you can buy and hold for the next decade because they're well-run companies with great products and continual innovation. | AbbVie I view AbbVie as the best big pharma stock on the market right now. While AbbVie's earnings growth from these drugs seem likely to push the stock higher, there's also another reason behind the company's tremendous total shareholder return of more than 270% over the last five years: its dividend. I think AbbVie (NYSE: ABBV) , NVIDIA (NASDAQ: NVDA) , and The Walt Disney Company (NYSE: DIS) fit in that group and especially stand out as three of the top stocks you can buy and hold for the next decade. |
25664.0 | 2018-02-14 00:00:00 UTC | MTUM, BA, ABBV, C: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/mtum-ba-abbv-c-etf-inflow-alert-2018-02-14 | 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 Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $132.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 65,150,000 to 66,400,000). Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is up about 1%, AbbVie Inc (Symbol: ABBV) is up about 0.5%, and Citigroup Inc (Symbol: C) is up by about 0.2%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $79.8601 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.87. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is up about 1%, AbbVie Inc (Symbol: ABBV) is up about 0.5%, and Citigroup Inc (Symbol: C) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $132.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 65,150,000 to 66,400,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is up about 1%, AbbVie Inc (Symbol: ABBV) is up about 0.5%, and Citigroup Inc (Symbol: C) is up by about 0.2%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $79.8601 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.87. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is up about 1%, AbbVie Inc (Symbol: ABBV) is up about 0.5%, and Citigroup Inc (Symbol: C) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $132.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 65,150,000 to 66,400,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $79.8601 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.87. | Among the largest underlying components of MTUM, in trading today Boeing Co. (Symbol: BA) is up about 1%, AbbVie Inc (Symbol: ABBV) is up about 0.5%, and Citigroup Inc (Symbol: C) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Edge MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $132.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 65,150,000 to 66,400,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $79.8601 per share, with $113.60 as the 52 week high point - that compares with a last trade of $106.87. |
25665.0 | 2018-02-14 00:00:00 UTC | Lilly's Taltz Positive in Phase III Label Expansion Study | ABBV | https://www.nasdaq.com/articles/lillys-taltz-positive-in-phase-iii-label-expansion-study-2018-02-14 | nan | nan | Eli Lilly and CompanyLLY announced positive top-line data from a phase III label expansion study evaluating its psoriasis drug, Taltz (ixekizumab), in patients with ankylosing spondylitis ("AS"). The drug met the primary endpoint of improvement in the signs and symptoms of AS and all secondary endpoints as well.
Taltz, an IL-17A antagonist, is currently approved for the treatment of adults with moderate-to-severe plaque psoriasis or active psoriatic arthritis (PsA).
Shares of the company are down 3.3% in the past year, underperforming the industry 's gain of 11.2% in that period.
The phase III study - COAST-V - evaluated the drug in AS patients who have not received any prior treatment with a biologic disease-modifying anti-rheumatic drug. The study consisted of a placebo arm and an active control arm with AbbVie's ABBV arthritis drug, Humira. Data from the study showed that treatment with Taltz led to statistically significant improvement as measured by the proportion of patients who achieved Assessment of Spondyloarthritis International Society 40 at 16 weeks.
Additional data from the study is expected to be presented later this year.
Ankylosing spondylitis is a type of spondyloarthritis affecting pelvic joints and spine. It is characterized by chronic inflammatory back pain, stiffness and impaired function and mobility.
Taltz sales increased 14% quarter over quarter in the last quarter of 2017, on the back of strong uptake. In January 2018, the drug received approval in Europe for PsA, which is expected to boost sales of the drug in the first quarter of 2018.
However, several drugs are approved for the treatment of AS including Humira and Novartis' NVS Cosentyx. Other companies are developing their therapies for treating AS, which includes Galapagos' GLPG filgotinib.
Eli Lilly and Company Price
Eli Lilly and Company Price | Eli Lilly and Company Quote
Zacks Rank
Lilly carries a Zacks Rank #3 (Hold).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The study consisted of a placebo arm and an active control arm with AbbVie's ABBV arthritis drug, Humira. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Eli Lilly and CompanyLLY announced positive top-line data from a phase III label expansion study evaluating its psoriasis drug, Taltz (ixekizumab), in patients with ankylosing spondylitis ("AS"). | Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. The study consisted of a placebo arm and an active control arm with AbbVie's ABBV arthritis drug, Humira. Eli Lilly and CompanyLLY announced positive top-line data from a phase III label expansion study evaluating its psoriasis drug, Taltz (ixekizumab), in patients with ankylosing spondylitis ("AS"). | Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. The study consisted of a placebo arm and an active control arm with AbbVie's ABBV arthritis drug, Humira. Eli Lilly and CompanyLLY announced positive top-line data from a phase III label expansion study evaluating its psoriasis drug, Taltz (ixekizumab), in patients with ankylosing spondylitis ("AS"). | The study consisted of a placebo arm and an active control arm with AbbVie's ABBV arthritis drug, Humira. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Galapagos NV (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Eli Lilly and CompanyLLY announced positive top-line data from a phase III label expansion study evaluating its psoriasis drug, Taltz (ixekizumab), in patients with ankylosing spondylitis ("AS"). |
25666.0 | 2018-02-13 00:00:00 UTC | Zacks.com highlights: Jones Lang LaSalle, Intel, Dollar General, AbbVie and Owens Corning | ABBV | https://www.nasdaq.com/articles/zacks.com-highlights%3A-jones-lang-lasalle-intel-dollar-general-abbvie-and-owens-corning | nan | nan | For Immediate Release
Chicago, IL - Feb 13, 2018 - Stocks in this week's article include: Jones Lang LaSalleInc.JLL , IntelINTC , Dollar General CorporationDG , AbbVie Inc.ABBV and Owens Corning Inc.OC .
Screen of the Week of Zacks Investment Research:
5 Solid Dividend Growth Stocks Amid Rising Rates
Rising yields have dampened the appeal for dividend stocks . Although high dividend stocks are an eye soar in the current environment, dividend growth ones pose strong fundamentals and are lucrative, especially given the new tax legislation in the United States and heightened volatility.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that dividend increase is likely in the future.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/292109/5-solid-dividend-growth-stocks-amid-rising-rates
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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 Immediate Release Chicago, IL - Feb 13, 2018 - Stocks in this week's article include: Jones Lang LaSalleInc.JLL , IntelINTC , Dollar General CorporationDG , AbbVie Inc.ABBV and Owens Corning Inc.OC . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. | For Immediate Release Chicago, IL - Feb 13, 2018 - Stocks in this week's article include: Jones Lang LaSalleInc.JLL , IntelINTC , Dollar General CorporationDG , AbbVie Inc.ABBV and Owens Corning Inc.OC . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Screen of the Week of Zacks Investment Research: 5 Solid Dividend Growth Stocks Amid Rising Rates Rising yields have dampened the appeal for dividend stocks . | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - Feb 13, 2018 - Stocks in this week's article include: Jones Lang LaSalleInc.JLL , IntelINTC , Dollar General CorporationDG , AbbVie Inc.ABBV and Owens Corning Inc.OC . Screen of the Week of Zacks Investment Research: 5 Solid Dividend Growth Stocks Amid Rising Rates Rising yields have dampened the appeal for dividend stocks . | For Immediate Release Chicago, IL - Feb 13, 2018 - Stocks in this week's article include: Jones Lang LaSalleInc.JLL , IntelINTC , Dollar General CorporationDG , AbbVie Inc.ABBV and Owens Corning Inc.OC . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Screen of the Week of Zacks Investment Research: 5 Solid Dividend Growth Stocks Amid Rising Rates Rising yields have dampened the appeal for dividend stocks . |
25667.0 | 2018-02-13 00:00:00 UTC | 3 Dividend Stocks for In-the-Know Investors | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-know-investors-2018-02-13 | nan | nan | Keeping track of every dividend-paying stock is tough, and as a result, many intriguing income stocks have probably fallen off your watch list. If that's true of Brookfield Renewable Partners (NYSE: BEP) , Store Capital (NYSE: STOR) , and AbbVie Inc. (NYSE: ABBV) , it might be time to look at them again. According to three top Motley Fool investors, each of these companies offers an opportunity for income growth that you shouldn't ignore.
Get a rising dividend from this global renewable-energy company
Travis Hoium (Brookfield Renewable Partners): When investors are looking at the energy industry today, there's a lot to consider. Volatile oil prices can make big oil stocks risky, changing utility markets have hurt formerly safe utility companies, and even natural gas isn't the profitable business it once was. But renewable-energy production around the world is growing, and companies that own renewable assets can generate consistent cash flows that fund dividend growth for years to come .
One of the best dividends for in-the-know investors is Brookfield Renewable Partners, a yieldco that owns 16,000 megawatts of generating capacity around the world. Eighty percent of that capacity is hydropower, but the company is adding more wind and solar assets after acquiring a 31% interest in TerraForm Global and a 16% interest in TerraForm Power (NASDAQ: TERP) .
What's unique about Brookfield Renewable Partners is that it's not as tied to the idea of issuing stock to fund acquisitions as many yieldcos have been in the past. Instead, it expects to grow its dividend 5% to 9% annually and use any excess cash from the business to grow cash flow organically. If you look at the dividend over the past decade, you can see that the strategy has resulted in steady growth:
BEP data by YCharts .
Energy markets can be volatile, but a renewable-energy company like Brookfield Renewable Partners usually buys projects backed with long-term contracts to sell energy to utilities under a set rate. Yieldcos that can do that well will be big winners for investors, and that's why Brookfield Renewable Partners is a great dividend stock today.
Take advantage of rising interest rates and retail weakness
Matt Frankel (Store Capital): Bond yields have risen significantly over the past couple of weeks, and this has put tremendous pressure on income-focused investments such as real estate investment trusts, or REITs. Retail REITs have been especially beaten down, as high-profile retail bankruptcies and store closures have weighed on the industry.
Because of this combination of negative catalysts, now is a great time to pick up rock-solid retail-focused REITs like Store Capital at bargain prices.
Store Capital is a net-lease REIT. If you're not familiar, a net lease is a long-term lease structure that requires tenants to pay for taxes, insurance, and building maintenance. Because of these three items, they are also commonly referred to as "triple-net" leases. Essentially, net leases minimize tenant turnover and the variable costs of owning property.
Most of Store Capital's tenants are either retail- or service-focused. Just to give you an idea, top tenants include AMC Theatres, Camping World , and Applebee's.
Here's the main point. Despite the common perception of brick-and-mortar retail being on the wane, some types of retail are doing just fine. Service-based retail, for example, is virtually immune to e-commerce headwinds. Discount-oriented retail is also doing quite well. And retailers with an experiential component such as Camping World (people like to physically see an RV before buying) also don't have to worry about online competition much.
Thanks to the perceived retail weakness and the recent rise in bond yields, this stock, which Warren Buffett owns in Berkshire Hathaway 's portfolio, now has an impressive 5.3% dividend yield. Store Capital could provide a great combination of income and growth in your portfolio for decades to come.
Time for this income-friendly stock to be back on your radar
Todd Campbell(AbbVie Inc.): Worry that its best-selling drug would soon face competition because of expiring patents may have caused you to remove AbbVie from your radar. However, the likelihood of competition to Humira has fallen considerably, and that suggests income investors ought to be looking at it again.
Humira is a widely used autoimmune disease drug. In 2017, its sales of more than $18 billion accounted for about 65% of AbbVie's revenue. Patents protecting Humira have already begun to expire, but a favorable patent decision last fall prompted competitor Amgen (NASDAQ: AMGN) to ink a nonexclusive deal with AbbVie that should keep Humira copycats at bay in the U.S. until 2023.
The extra time is great news because AbbVie has a lot of late-stage drugs that could reach the market before Humira's sales begin to drop. Over the next year, it plans FDA filings for Rova-T, a solid-tumor cancer drug; upadacitinib, a rheumatoid arthritis drug; and risankizumab, a psoriasis drug. All three of those drugs target multibillion-dollar indications and thus could be blockbusters.
AbbVie has FDA approvals pending for an endometriosis drug, Elagolix, and a chronic lymphocytic leukemia drug, Venclexta, that have billion-dollar potential, too.
The company has increased its dividend by 77% since it was spun out of Abbott Labs (NYSE: ABT) in 2013. Since management expects its effective tax rate to fall to 9% in 2018, from over 30% last year, and thinks new drugs could increase non-Humira sales from $9 billion to as much as $35 billion in 2025, there's reason to think even more dividend increases are coming.
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.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
Matthew Frankel owns shares of Berkshire Hathaway (B shares). Todd Campbell has no position in any of the stocks mentioned. Travis Hoium owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Camping World Holdings. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The extra time is great news because AbbVie has a lot of late-stage drugs that could reach the market before Humira's sales begin to drop. If that's true of Brookfield Renewable Partners (NYSE: BEP) , Store Capital (NYSE: STOR) , and AbbVie Inc. (NYSE: ABBV) , it might be time to look at them again. Time for this income-friendly stock to be back on your radar Todd Campbell(AbbVie Inc.): Worry that its best-selling drug would soon face competition because of expiring patents may have caused you to remove AbbVie from your radar. | If that's true of Brookfield Renewable Partners (NYSE: BEP) , Store Capital (NYSE: STOR) , and AbbVie Inc. (NYSE: ABBV) , it might be time to look at them again. Time for this income-friendly stock to be back on your radar Todd Campbell(AbbVie Inc.): Worry that its best-selling drug would soon face competition because of expiring patents may have caused you to remove AbbVie from your radar. In 2017, its sales of more than $18 billion accounted for about 65% of AbbVie's revenue. | If that's true of Brookfield Renewable Partners (NYSE: BEP) , Store Capital (NYSE: STOR) , and AbbVie Inc. (NYSE: ABBV) , it might be time to look at them again. Time for this income-friendly stock to be back on your radar Todd Campbell(AbbVie Inc.): Worry that its best-selling drug would soon face competition because of expiring patents may have caused you to remove AbbVie from your radar. In 2017, its sales of more than $18 billion accounted for about 65% of AbbVie's revenue. | If that's true of Brookfield Renewable Partners (NYSE: BEP) , Store Capital (NYSE: STOR) , and AbbVie Inc. (NYSE: ABBV) , it might be time to look at them again. Time for this income-friendly stock to be back on your radar Todd Campbell(AbbVie Inc.): Worry that its best-selling drug would soon face competition because of expiring patents may have caused you to remove AbbVie from your radar. In 2017, its sales of more than $18 billion accounted for about 65% of AbbVie's revenue. |
25668.0 | 2018-02-13 00:00:00 UTC | Better Buy: Eli Lilly and Company vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-eli-lilly-and-company-vs-johnson-johnson-2018-02-13 | nan | nan | If you had bought $10,000 of Eli Lilly and Company (NYSE: LLY) stock 10 years ago and held it, your initial investment would now be worth roughly $22,660 with dividends reinvested. However, if you had used the same amount of money to buy and hold Johnson & Johnson (NYSE: JNJ) stock, you would be sitting on close to $28,590 -- a much better total return.
But things are a lot different in 2018 than they were in early 2008. Which of these big pharma stocks is the better pick for investors now? Here's how Eli Lilly and Johnson & Johnson compare.
The case for Eli Lilly
You'd have to put Lilly's diabetes franchise near the top of any list of arguments in favor of buying the stock. Lilly has a couple of established diabetes blockbusters that are still making a lot of money for the company with Humalog and Humalin. Add newer diabetes drugs like Trulicity and Jardiance to the list of big winners. Sales for both drugs more than doubled in 2017 from the prior year.
While revenue fell last year for Lilly's super-successful chemotherapy Alimta, the company has other oncology products for which sales are growing. Cyramza isn't quite a blockbuster yet, but the chemotherapy chalked up 23% year-over-year growth with revenue of $758 million in 2017. Lartruvo, which won FDA approval for treating advanced soft tissue sarcoma in October 2016, came on strong in its first full year on the market with sales of $203 million.
Psoriasis and psoriatic athritis drug Taltz has turned out to be another big winner for Lilly. Sales for the drug nearly quintupled in 2017 from the prior year to $559 million.
Lilly should get help from its pipeline also. The pharma company is pursuing additional indications for several existing products, including Cyramza and Jardiance. However, Lilly CEO Dave Ricks stated in January that the "next chapter of growth" for Lilly will be in treating pain.
The company expects to receive approval for galcanezumab for the prevention of migraine in adults later this year. Galcanezumab is also being evaluated in a late-stage study for the prevention of cluster headache. In addition, Lilly and Pfizer have several late-stage studies in progress for promising pain drug tanezumab in treating cancer pain, chronic lower back pain, and osteoarthritic pain.
Investors will also like Lilly's dividend. The dividend currently yields a little over 3%. Although Lilly's payout ratio of nearly 99% is certainly higher than ideal, the company is using only around 58% of free cash flow to fund the dividend program. Lilly's dividend doesn't seem to be in any trouble right now.
The case for Johnson & Johnson
Johnson & Johnson isn't just a big pharma; it's a big consumer healthcare and big medical device company, too. These other two business segments have generated only modest growth for the healthcare giant recently, though. J&J's pharmaceutical business is where the company makes nearly half of its total revenue and gets most of its growth.
Two therapeutic areas are especially driving sales growth for J&J -- oncology and pulmonary hypertension. The company's oncology products include Imbruvica, which J&J co-markets with AbbVie , and Darzalex. Both are blockbusters with strong sales momentum. Johnson & Johnson's pulmonary hypertension franchise, which includes Opsumit, Tracleer, and Uptravi, was gained with the company's acquisition last year of Swiss drugmaker Actelion.
J&J also claims a few other products that generated double-digit percentage sales growth in 2017. Sales for psoriasis and psoriatic arthritis drug Stelara jumped 24% from the prior year to top $4 billion. J&J's antipsychotic Invega franchise saw sales climb 16% year over year to nearly $2.6 billion.
One great thing about Johnson & Johnson is that the company doesn't rest on its laurels. Despite being in business for 132 years, J&J continues to look for ways to growth, whether it's through internal innovation, partnerships, or acquisitions. Speaking earlier this year, J&J CEO Alex Gorsky said that he wants the company to be actively "creating a crisis" to stay on top. That mindset led to J&J's acquisition of Actelion and could mean more deals are on the way.
Johnson & Johnson generates plenty of cash flow to fund more acquisitions. It also uses that cash flow to pay out a nice dividend, which currently yields 2.59%. J&J has increased its dividend for 55 consecutive years. The company uses only 57% of earnings and 48% of free cash flow to fund the dividend, so that streak should keep going.
Better buy
Both Lilly and J&J have similar challenges. Lilly's top-selling drug, Humalog, lost patent exclusivity and faces potential loss of market share. J&J's top-selling drug, Remicade, already is losing some sales to biosimilar rivals. Both companies also sell products in categories with fierce competition.
Still, both of these pharma stocks should perform well over the long run. But which is the better buy right now? My pick would be Johnson & Johnson.
J&J's tremendous cash flow gives it plenty of flexibility to reward shareholders through dividends and share buybacks as well as fund strategic acquisitions and licensing deals. In addition, the company's diversification into multiple areas of healthcare gives J&J a moat that few other big pharma companies enjoy. I think the future remains bright for this longtime favorite for investors.
10 stocks we like better than Johnson & Johnson
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
Keith Speights owns shares of AbbVie and Pfizer. 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. | The company's oncology products include Imbruvica, which J&J co-markets with AbbVie , and Darzalex. *Stock Advisor returns as of February 5, 2018 Keith Speights owns shares of AbbVie and Pfizer. If you had bought $10,000 of Eli Lilly and Company (NYSE: LLY) stock 10 years ago and held it, your initial investment would now be worth roughly $22,660 with dividends reinvested. | The company's oncology products include Imbruvica, which J&J co-markets with AbbVie , and Darzalex. *Stock Advisor returns as of February 5, 2018 Keith Speights owns shares of AbbVie and Pfizer. The case for Johnson & Johnson Johnson & Johnson isn't just a big pharma; it's a big consumer healthcare and big medical device company, too. | The company's oncology products include Imbruvica, which J&J co-markets with AbbVie , and Darzalex. *Stock Advisor returns as of February 5, 2018 Keith Speights owns shares of AbbVie and Pfizer. The case for Johnson & Johnson Johnson & Johnson isn't just a big pharma; it's a big consumer healthcare and big medical device company, too. | The company's oncology products include Imbruvica, which J&J co-markets with AbbVie , and Darzalex. *Stock Advisor returns as of February 5, 2018 Keith Speights owns shares of AbbVie and Pfizer. Which of these big pharma stocks is the better pick for investors now? |
25669.0 | 2018-02-12 00:00:00 UTC | 5 Solid Dividend Growth Stocks Amid Rising Rates | ABBV | https://www.nasdaq.com/articles/5-solid-dividend-growth-stocks-amid-rising-rates-2018-02-12-0 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Rising yields have dampened the appeal for dividend stocks. Although high dividend stocks are an eye soar in the current environment, dividend growth ones pose strong fundamentals and are lucrative, especially given the new tax legislation in the United States and heightened volatility.
Source: Shutterstock
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that dividend increase is likely in the future.
5 Mid-Cap Growth ETFs for a Roller-Coaster Market
Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appear as winning strategies when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenue.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company's earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past one year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
P/E Ratio Less than X-Industry: A ratio less than X-industry indicates that the stock is cheap and undervalued in that industry.
Here are five of the 20 stocks that fit the bill:
Illinois-based Jones Lang LaSalle Inc (NYSE: JLL ) is a full-service real estate firm that provides management services, corporate and financial services and investment management services to corporations and other real estate owners, users and investors worldwide.
It has a P/E ratio of 15.96 versus the industry average of 17.34 and an expected earnings growth rate of 5.02% for this year. The stock has a Zacks Rank #1 and a Growth Score of A.
California-based Intel Corporation (NASDAQ: INTC ) is one of the world's largest semiconductor chip maker. It is expected to see earnings growth of 1.16% this year and has a P/E ratio of 12.54 versus the industry average of 16.30. The stock has a Zacks Rank #2 and a Growth Score of B.
Tennessee-based Dollar General Corp. (NYSE: DG ) is a discount retailer providing various merchandise products in the southern, southwestern, midwestern and eastern United States. It is expected to see earnings growth of 19.31% this fiscal year (ending Jan 1, 2019) and has a P/E ratio of 18.29 versus the industry average of 18.68. The stock has a Zacks Rank #2 and a Growth Score of B.
Illinois-based AbbVie Inc (NYSE: ABBV ) is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide.
The company has a P/E ratio of 14.92 compared with the industry average of 15.23 and an expected earnings growth rate of 33.57% for this year. It has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Owens Corning (NYSE: OC ) is a world leader in building materials systems and composite solutions. It is expected to see earnings growth of 24.72% this year and has a P/E ratio of 15.08 versus the industry average of 16.89. Owens Corning has a Zacks Rank #2 and a Growth Score of A.
5 Low Beta ETFs to Buy as Bulls Play Hide and Seek
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc (NYSE: ABBV ) is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. The stock has a Zacks Rank #2 and a Growth Score of B. Tennessee-based Dollar General Corp. (NYSE: DG ) is a discount retailer providing various merchandise products in the southern, southwestern, midwestern and eastern United States. 5 Low Beta ETFs to Buy as Bulls Play Hide and Seek You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. | The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc (NYSE: ABBV ) is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. 5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history. Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment. | The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc (NYSE: ABBV ) is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. 5 Mid-Cap Growth ETFs for a Roller-Coaster Market Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential. | The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc (NYSE: ABBV ) is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. 5 Mid-Cap Growth ETFs for a Roller-Coaster Market Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. 5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history. |
25670.0 | 2018-02-12 00:00:00 UTC | 5 Solid Dividend Growth Stocks Amid Rising Rates | ABBV | https://www.nasdaq.com/articles/5-solid-dividend-growth-stocks-amid-rising-rates-2018-02-12 | nan | nan | Rising yields have dampened the appeal for dividend stocks . Although high dividend stocks are an eye soar in the current environment, dividend growth ones pose strong fundamentals and are lucrative, especially given the new tax legislation in the United States and heightened volatility.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that dividend increase is likely in the future.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appear as winning strategies when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenue.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company's earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past one year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
P/E Ratio Less than X-Industry: A ratio less than X-industry indicates that the stock is cheap and undervalued in that industry.
Here are five of the 20 stocks that fit the bill:
Illinois-based Jones Lang LaSalle Inc. JLL is a full-service real estate firm that provides management services, corporate and financial services and investment management services to corporations and other real estate owners, users and investors worldwide. It has a P/E ratio of 15.96 versus the industry average of 17.34 and an expected earnings growth rate of 5.02% for this year. The stock has a Zacks Rank #1 and a Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here .
California-based Intel INTC is one of the world's largest semiconductor chip maker. It is expected to see earnings growth of 1.16% this year and has a P/E ratio of 12.54 versus the industry average of 16.30. The stock has a Zacks Rank #2 and a Growth Score of B.
Tennessee-based Dollar General Corporation DG is a discount retailer providing various merchandise products in the southern, southwestern, midwestern and eastern United States. It is expected to see earnings growth of 19.31% this fiscal year (ending Jan 1, 2019) and has a P/E ratio of 18.29 versus the industry average of 18.68. The stock has a Zacks Rank #2 and a Growth Score of B.
Illinois-based AbbVie Inc. ABBV is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. The company has a P/E ratio of 14.92 compared with the industry average of 15.23 and an expected earnings growth rate of 33.57% for this year. It has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Owens Corning Inc. OC is a world leader in building materials systems and composite solutions. It is expected to see earnings growth of 24.72% this year and has a P/E ratio of 15.08 versus the industry average of 16.89. Owens Corning has a Zacks Rank #2 and a Growth Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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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 stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc. ABBV is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc. ABBV is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc. ABBV is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. 5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. The stock has a Zacks Rank #2 and a Growth Score of B. Illinois-based AbbVie Inc. ABBV is a global research-based biopharmaceutical company, which discovers, develops, manufactures and sells pharmaceutical products worldwide. Further, a history of strong dividend growth indicates that dividend increase is likely in the future. |
25671.0 | 2018-02-12 00:00:00 UTC | These 3 Drugs Are Critical to AbbVie's Success | ABBV | https://www.nasdaq.com/articles/these-3-drugs-are-critical-abbvies-success-2018-02-12 | nan | nan | AbbVie Inc. (NYSE: ABBV) won an important patent battle last fall that protects its cash cow, Humira, for a few more years; however, Humira will face off against biosimilars eventually, and that makes launching new drugs critical if it wants to continue growing. Can this company's research team deliver? While there are many intriguing drugs advancing through AbbVie's pipeline, perhaps it's Rova-T, upadacitinib, and risankizumab that are most important to its future .
Defeating solid tumors
Gene therapies are making big advances in the fight back against blood cancer, but the tumor microenvironment is more challenging to penetrate, and that's been an obstacle for drug developers. One drug that may be able to successfully help patients with solid tumors, however, is Rova-T, an investigational antibody-drug conjugate that AbbVie acquired for $5.8 billion up front, plus milestones, in 2016.
Rova-T targets DLL3, a protein that's expressed in more than 80% of small-cell lung cancer tumors, but that isn't found in healthy tissue. Once Rova-T binds to DLL3, it delivers a toxic payload that's designed to cause cancer cell death and tumor shrinkage.
Initially, Rova-T's being evaluated in third-line or greater small-cell lung cancer, a setting plagued by poor outcomes and limited treatment choices. Small-cell lung cancer accounts for 15% of all lung cancers, and sadly, extensive-stage SCLC has just a five-year survival rate.
Data from a third-line Rova-T study is expected in Q2 2018, and if it's good, then AbbVie plans to file for an accelerated approval. If Rova-T gets a priority review from regulators, then it could make it to market late this year or early in 2019.
Trials are under way that could establish Rova-T as a first- and second-line small-cell lung cancer drug. Also, trials evaluating it in combination with the multibillion-dollar checkpoint inhibitor, Opdivo, and in other solid tumor cancers expressing DLL3 are being conducted, too. AbbVie expects it could begin unveiling data from its combination trial and DLL3 basket study later this year.
If Rova-T wins a regulatory nod in late-line small cell lung cancer and data from its other trials pan out, then AbbVie thinks it could be a multibillion-dollar drug because its addressable market could be big and there's a significant need for new treatment options for these patients.
Taking the baton
Protecting Humira's $18 billion per year plus in market share when biosimilars emerge is paramount, and launching upadacitinib and risankizumab may do that.
Upadacitinib is a JAK1 inhibitor that's designed to be more selective than competing therapies with the same mechanism of action. Last year, AbbVie unveiled results from three phase 3 studies in rheumatoid arthritis, and success in those trials has the company planning to file for an FDA green light by the end of 2018, as long as two more RA trials that are expected to have data available soon pan out, too.
Rheumatoid arthritis affects 23.7 million people worldwide, and as a result, it's a multibillion-dollar indication. Given that trials so far are showing upadacitinib to be effective in combination with methotrexate -- a common first-line treatment -- and as a monotherapy, it could eventually carve out meaningful market share.
Its opportunity isn't limited to rheumatoid arthritis, though. AbbVie's conducting studies in other autoimmune disorders that could open its use up to even more people. For instance, phase 3 studies in psoriatic arthritis and Crohn's disease are under way, and pivotal trials in eczema and ulcerative colitis are planned. It appears upadacitinib may have a good shot at disrupting those indications, given that positive phase 2 data in eczema had the FDA granting it breakthrough therapy designation last month. If so, then AbbVie thinks upadacitinib's peak sales could be $6.5 billion someday.
Risankizumab's peak sales opportunity may be smaller, but not by much.
Recently, AbbVie reported data from its fourth successful study of risankizumab in psoriasis. That study showed that 73% of patients achieved PASI 90 and nearly half achieved PASI 100, or complete skin clearance, after taking risankizumab. For comparison, only 2% and 1% of patients achieved those levels in the placebo arm of the study, respectively.
AbbVie targets having its filing for FDA approval of risankizumab done by the end of Q2, and that suggests an FDA decision will be on deck early next year. AbbVie believes the results are good enough for risankizumab to win market share in both new patients and patients who are already on anti-TNF drugs, including Humira, and if they're right, then its opportunity in psoriasis, as well as in other indications, including Crohn's disease and ulcerative colitis, could turn it into a $5 billion-per-year drug, according to management.
Looking forward
There's no telling what will happen with Rova-T, upadacitnib, and risankizumab's ongoing trials or if the FDA will sign off on these drugs. Nevertheless, these three drugs represent AbbVie's best shot at overcoming any future decline in Humira demand and continuing its streak of sales and profit growth. I think the odds of success are pretty good for these drugs, and that's why I consider AbbVie a top stock to buy. Regardless, anyone interested in owning AbbVie in portfolios will want to keep close tabs on the progress being made with these drugs in 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. | If Rova-T wins a regulatory nod in late-line small cell lung cancer and data from its other trials pan out, then AbbVie thinks it could be a multibillion-dollar drug because its addressable market could be big and there's a significant need for new treatment options for these patients. AbbVie Inc. (NYSE: ABBV) won an important patent battle last fall that protects its cash cow, Humira, for a few more years; however, Humira will face off against biosimilars eventually, and that makes launching new drugs critical if it wants to continue growing. While there are many intriguing drugs advancing through AbbVie's pipeline, perhaps it's Rova-T, upadacitinib, and risankizumab that are most important to its future . | Last year, AbbVie unveiled results from three phase 3 studies in rheumatoid arthritis, and success in those trials has the company planning to file for an FDA green light by the end of 2018, as long as two more RA trials that are expected to have data available soon pan out, too. AbbVie believes the results are good enough for risankizumab to win market share in both new patients and patients who are already on anti-TNF drugs, including Humira, and if they're right, then its opportunity in psoriasis, as well as in other indications, including Crohn's disease and ulcerative colitis, could turn it into a $5 billion-per-year drug, according to management. AbbVie Inc. (NYSE: ABBV) won an important patent battle last fall that protects its cash cow, Humira, for a few more years; however, Humira will face off against biosimilars eventually, and that makes launching new drugs critical if it wants to continue growing. | If Rova-T wins a regulatory nod in late-line small cell lung cancer and data from its other trials pan out, then AbbVie thinks it could be a multibillion-dollar drug because its addressable market could be big and there's a significant need for new treatment options for these patients. Last year, AbbVie unveiled results from three phase 3 studies in rheumatoid arthritis, and success in those trials has the company planning to file for an FDA green light by the end of 2018, as long as two more RA trials that are expected to have data available soon pan out, too. AbbVie believes the results are good enough for risankizumab to win market share in both new patients and patients who are already on anti-TNF drugs, including Humira, and if they're right, then its opportunity in psoriasis, as well as in other indications, including Crohn's disease and ulcerative colitis, could turn it into a $5 billion-per-year drug, according to management. | Data from a third-line Rova-T study is expected in Q2 2018, and if it's good, then AbbVie plans to file for an accelerated approval. Last year, AbbVie unveiled results from three phase 3 studies in rheumatoid arthritis, and success in those trials has the company planning to file for an FDA green light by the end of 2018, as long as two more RA trials that are expected to have data available soon pan out, too. AbbVie Inc. (NYSE: ABBV) won an important patent battle last fall that protects its cash cow, Humira, for a few more years; however, Humira will face off against biosimilars eventually, and that makes launching new drugs critical if it wants to continue growing. |
25672.0 | 2018-02-12 00:00:00 UTC | Is AbbVie or Vertex Pharmaceuticals the Better Buy Now? | ABBV | https://www.nasdaq.com/articles/abbvie-or-vertex-pharmaceuticals-better-buy-now-2018-02-12 | nan | nan | AbbVie Inc. (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX) significantly outperformed the S&P 500 in 2017, but a stock market correction has caused their shares to drop. Both companies recently unveiled optimistic plans that suggest their sales and profits can continue climbing, so is now a good time to buy these stocks?
In this episode of The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and Motley Fool contributor Todd Campbell discuss the stock market's recent correction and what could be in store for AbbVie and Vertex Pharmaceuticals' investors.
A full transcript follows the video.
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The author(s) may have a position in any stocks mentioned.
This video was recorded on Feb. 6, 2018.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. We're talking healthcare today, Feb. 7. My name is Kristine Harjes, and I have Motley Fool healthcare contributor Todd Campbell joining me on the phone. What's new, Todd?
Todd Campbell: Kristine, did you get a chance to watch the Super Bowl?
Harjes: I was in a room where it was playing, yeah.
Campbell: I have to tell you, between the Patriots' loss and the stock market's craziness, the last couple of days have been a little bit challenging for me. But we will persevere.
Harjes: Yeah, I assume you were watching the Super Bowl pretty closely?
Campbell: Absolutely. I know most of the nation is cheering at the Patriots' loss. But, credit where credit is due, that was a heck of a game. And Foles, wow, the quarterback for the Eagles, he was just wonderful, I couldn't believe how composed he was under pressure. They deserved the win, absolutely.
Harjes: This is such a big thing of you to say. Good for you.
Campbell: [laughs] It's easy for me to say that. But I'm sure the Philadelphia Eagles fans are absolutely on cloud nine. They deserve to have that win. And the Patriots still remain a great franchise, and we'll be back again soon, I promise, much to the chagrin of many. The stock market, the same underpinnings that supported it before remain in place. I think we'll get through all of this.
Harjes: It's been a crazy week so far. Warning, we're actually filming this on Tuesday, so it's only the 6th as we're recording. But yesterday, Monday, the Dow Jones Industrial Average lost 1,175 points, which is the most number of points it has lost ever. And for me, that's the largest percentage drop that I've seen since I've been in this business. The last time we had a drop that was this large in terms of the percentage of the Dow was in August 2011, during the euro debt crisis. And I don't know what it was like for you and the conversations you were having, Todd, especially since you're working remotely, but around the office there was a lot of buzz. It reminds me of how fortunate we are to have a Foolish, long-term philosophy, because the sentiment was mostly positive. People across The Fool are cheering at the fact that stocks are going on sale.
Campbell: I have enough gray hair on my head to remember the 2011, the 2008, the 1999. We have seen this before. I think, to put things into context for listeners, a 4.1% drop on Monday is scary as far as the S&P is concerned, but it's certainly not unprecedented. I went back, Kristine, and I crunched the numbers. Since the market's low in 2009, March of 2009, the S&P has fallen on 17 different occasions by 3% or more. Seventeen. So, it's tough to look at a down-4% day, and you start going, "Oh my God, am I owning the right things?" It throws a lot of curveballs at your willingness to stay Foolishly focused. But this is not new territory. Despite all of the 17 times that we've been here before since 2009, we still went on to put in new highs on the stock market. So staying focused on great stocks for the long haul, that's the best approach.
Harjes: To loosely quote Motley Fool co-founder David Gardner, stocks will go down a lot faster than they go up, but over a long enough amount of time, they will go up way more than they'll go down. So, like you said, Todd, this is not terribly unusual. Another interesting stat that I came across is, the S&P 500 has had 35 drops of at least 10% since 1950. That's about one every two years. The last correction we had was about two years ago. So you could kind of surmise that we're due. This is not terribly surprising, and it's not really a bad thing. It's just how this all works.
Campbell: 10% corrections, like you said, they're pretty common. And if you look at the S&P and where it peaked in January, we almost got down to the 10% correction point over the course of a couple trading days. I think it was 2,587. So, within a hair.
Harjes: And who knows what's going to happen the rest of today, Tuesday, or tomorrow, Wednesday, when the show gets released. We might be crossing over that threshold.
Campbell: And it can be sloppy trading, Kristine, but I even did the numbers over the course of the ensuing 30 days following those 17 drops that we've seen since 2009, and even if you just look out 30 days, the average in the median return a month later is still between 3% and 5%. Patience is typically rewarded, and it could be rewarded as quickly as within a month, if that helps our investors stay Foolishly focused.
Harjes: And speaking of being patient, The Motley Fool as a whole is working on putting together a comprehensive set of tools to help our readers and listeners and members think about a market crash. So stay tuned, we'll be sure to let everyone know how you can access these materials as soon as we have it ready. But do know that we have you guys in mind, and we'll be putting out something in the very near future.
That being said about the broader market, today we're going to talk about two specific stocks, because it doesn't really matter so much what the whole market is doing, it's always a good time for investors to be thinking about individual companies and their business models and their catalysts that are coming up. The two stocks that we want to cover today are AbbVie and Vertex, they're two of the largest biotechs. They both recently reported earnings. Up first, let's do AbbVie. Todd, what's the latest?
Campbell: One of the reasons I want to talk about these two companies is, they're companies that are on my personal watch list for an opportunity like this. They were both very big movers in 2017. AbbVie, for example, was up 60% last year, which is pretty remarkable for a company of its size. If you look at, are there any blue light specials, do I want to go out and buy, now might be a good time to consider a stock like AbbVie, because its shares have fallen about 12% from their peak on Jan. 26. And January was a news-packed month for this company, where they rolled out a lot of long-term plans that really are quite encouraging.
Harjes: I think first and foremost, we should probably discuss Humira, that is their lead drug. It encompasses 65% of the company's sales. They reported sales of $18.427 billion, which was up 14%. That's very encouraging. And that was for the full year, by the way. They expect that the sales will continue to grow to $21 billion by 2020, which is not terribly new news. That's something that we learned during the J.P. Morgan Healthcare Conference. This is important, because there had been a lot of questions regarding the Humira patent, and whether or not this flagship drug will be able to continue to perform. I think the news that came out of this company in January is fairly promising for the stability of this important driver of their business.
Campbell: Absolutely. 65% of their sales. And I think up until the fall of last year, when they got a favorable patent decision, people were really wondering what's going to happen when Humira biosimilars start entering the market. As a refresher, last September, they did indeed get a positive verdict on a patent challenge that was brought by a competitor, and that prompted a non-exclusive license with Amgen that will keep biosimilars to Humira off the market until 2023 in the United States. I think that's one of the big reasons that AbbVie has been such a winning stock over the course of the last four or five months, is that people are starting to look at it and say, that gives AbbVie a lot of running room to develop new drugs that can get launched and pick up the slack once Humira does start to face off against those challengers over the course of the next decade.
Kristine, if you look at the numbers that the company put up in 2017 and the potential growth for those non-Humira drugs through 2020 and even 2025, there's a lot for investors to like. [In] 2017, the company's sales were $28.2 billion, and that was up 10%. Growing 10%, for a big company like this, that's pretty remarkable. And even better, they have really good operating leverage. That means they're translating more of those sales into bottom-line profit. Their bottom-line earnings per share were $5.60 in 2017, and that was up 16%. There's nothing to dislike about those figures.
Harjes: Yeah. And you look at their 2018 guidance and it just gets stronger. They're guiding for an operating margin of 44%, which is 150 basis points higher than 2017. Their adjusted EPS guidance is now a range of $7.33 to $7.43, which is up $0.96 from the previous range that they had given for 2018. You might think that's all because of the tax reform, but $0.08 of that is due to stronger operating dynamics. So this is a company that's looking at some pretty strong growth in some of its key drugs aside from just Humira, and also some exciting things coming up in the pipeline.
And I do want to talk about those pipeline drugs, but first, really quick, to hit one some of their key drugs that are already on the market, Imbruvica, which is a drug that the company co-markets with Johnson & Johnson , had sales of $2.6 billion, and that was up 40%. Meanwhile, their hepatitis C market is doing really well. This actually shocked me, their main hepatitis C drug has a market share of 32%. I did not realize it was that high. Of course, that franchise's sale was up 62% year over year.
Campbell: They think those hep C sales can climb to $2.5 billion in 2018, which would be pretty remarkable, considering that in 2017, those hep C sales were $1.3 billion. That's all because of Mavyret. If you look at Mavyret, I think that's probably the stiffest challenge yet that Gilead Sciences has faced in the hepatitis C. It should still be able to provide billions of dollars in revenue for AbbVie over the course of the next few years. And then, with Imbruvica, still being able to grow that quickly on such a high base of sales, that's due to label expansions. As this drug is getting used earlier and earlier in treatment, and also into other indications, such as graft-versus-host disease, which it won approval for last August, those are really driving sales higher. The other thing people should remember with Imbruvica is that they share that drug with Johnson & Johnson. So the fact that they're reporting $2.6 billion in 2017 in sales just goes to show you just how important that drug is overall, considering that Johnson & Johnson shares that with them.
Harjes: Yeah, absolutely. Let's look forward a little bit. What are you watching in the pipeline?
Campbell: There's a few different drugs that I think could move the needle meaningfully over the course of the next few years. Venclexta, which is a drug for CLL [chronic lymphocytic leukemia], they put out some pretty impressive combination-study trial results using it alongside Rituxan in people who were relapsing or refractory, that's the chronic lymphocytic leukemia indication. And that's an indication that Imbruvica is already improved in, but Imbruvica is moving up in earlier lines of treatment. So this could fit in now behind it. And that could turn that drug into a multibillion-dollar seller over time. But even bigger are the opportunities associated with Rova-T, I don't even want to pronounce the names of these so I'm just going to use the old name, ABT-494 and another drug called risankizumab, [laughs] which are autoimmune disease drugs that are in the pipeline and fast approaching the market.
Harjes: Yeah. I'm staring at the name of ABT-494 right now, and I'm going to give it a shot, it's upadacitinib.
Campbell: Sure!
Harjes: So, take note of that one.
Campbell: That works. Those drugs -- upadacitinib and risankizumab -- those are potential Humira successors. Upadacitinib just put up really good data last year in rheumatoid arthritis. They think they can get that into the market sometime in 2019. Risankizumab just put up good data recently in psoriasis. They think that could also land in the market in 2019. And they're projecting that upadacitinib and risankizumab could generate [about] $6 billion and $5 billion, respectively, in peak sales over time. So those are important drugs. They also have another drug for endometriosis that is at the FDA awaiting approval. If that gets approved this year, that could be a billion-dollar seller at some point, too.
Harjes: And let's not forget that this is also a company that's offering a 2.5% dividend yield. So I could see why it's on your watchlist, Todd.
Campbell: And that dividend, Kristine, has increased by about 77% since they got spun out of Abbott . I think when you look at their effective tax rate falling to 9%, their guidance is for operating margins to climb over time to 50% from the mid-30s where they've been historically, I think you have a lot of tailwinds for future dividend increases that make it even more exciting.
Harjes: Yeah, absolutely. As promised, we want to next dive into Vertex Pharmaceuticals, which we talked about at the end of 2017, highlighting them as one of the best-performing healthcare stocks of that year. They ended up being up 103% over the course of 2017, bringing them to a market cap of around $40 billion today. They reported earnings about a week ago, on Jan. 31. Todd, what stood out to you?
Campbell: If you're kicking yourself for not getting involved in this company last year, maybe you get an opportunity to get involved in it here in 2018. Shares are down about 10.7% since Feb. 1 close. That's a pretty solid decline for the company. Of course, nothing has changed to this story. They remain probably one of the most innovative companies out there, specifically within the area of cystic fibrosis, which, you may recall from prior shows, is a hereditary disorder that can cause the buildup of mucus in the lungs. Infections that occur can damage respiratory systems and unfortunately lead to a premature death. Sadly, there have not been a lot of treatment options available to cystic fibrosis patients in the past. But that's changed thanks in part to Vertex, and as a result, the company's sales and profitability, now, are growing really quickly.
Harjes: They've had cystic fibrosis drugs on the market for many years now, but they've been able to steadily expand the number of patients that these drugs, and hopefully, going forward, others, will be able to treat. And they're hoping that eventually, their drugs could help up to 90% of cystic fibrosis patients. But they do have a handful of catalysts coming up very soon that could meaningfully expand the number of people that they're currently able to help.
Campbell: Before I dive into those, I want to give a quick and dirty on what the final quarterly results were, the final full-year 2017 results were, for our listeners. Sales last year were $2.5 billion, or $2.49 billion. That was up 46%. Earnings per share were up $1.95, or 129%. There are two drugs that they have in the market right now: Kalydeco. sales of that drug increased 20% year over year to $845 million. And Orkambi. Sales of that drug increased 35% year over year to $1.32 billion. Now, what's interesting about this company is, at the end of this month, there's an FDA decision that's expected on a two-drug combination. If that two-drug combination of ivacaftor and tezacaftor, if that gets approved, that'll increase the addressable patient market by another 1,500 patients. Right now, Kalydeco and Orkambi can treat about 29,000 of the 75,000 or so cystic fibrosis patients that are out there. So increasing that by another 1,500 is a bullish thing, that's a very good thing. If they win approval for it, that two-drug combo can then act as a fundamental underpinning for these other combination studies that they're conducting to come up with a triplet therapy that could theoretically get us to that point that you were talking about previously, where we could get to 90% of the cystic fibrosis patient population.
Harjes: Yeah. So the way to think about this, Kalydeco and ivacaftor, that's the same thing, the duo that they're looking at with the Feb. 28 PDUFA date is a combination of Kalydeco and tezacaftor. They're also looking at adding a third one of these drugs into that mix, or in various other combinations, with a handful of phase 3s that are starting this year. So these are all incremental changes that can hopefully address more and more patients, because this disease takes a lot of different forms, so it's not like you can just have a drug approved for cystic fibrosis. It's always much more specifically, narrowly defined. But as I mentioned earlier, Vertex does think that its drugs could eventually help up to 90% of this entire patient population, which is pretty incredible.
They have three main categories of goals that they laid out at J.P. Morgan, and only one of them is cystic fibrosis related. The first goal is, achieve the company's vision in CF. But then, beyond that, it's, expand the pipeline outside of cystic fibrosis. And the third category of goals is, build financial strength. So this is a company that does clearly believe it's only just getting started. They've made a lot of progress in CF, and I'm looking forward to seeing what they do beyond that, as well.
Campbell: These drugs, when they originally got approved, they were approved for older patients. And as additional study data has come out, the labels have been expanded to include younger and younger and younger patients. That's one of the reasons now that you see so many people that can be helped by these drugs. I think you look at this and you say, they're doing $2 billion in sales now, and that's only by treating for less than half of the addressable market. What could happen from there?
In 2018, they haven't said what their guidance for sales and earnings are yet. They're going to wait until the FDA weighs in with the decision on the two-drug combo at the end of the month, but it may be helpful for listeners to know that industry watchers are predicting $2.98 a share in earnings this year, and that's up from $2.85 90 days ago. So, yes, you have operating leverage here as these drugs are getting more and more widely used. That's translating into profits for this company that it can then use to reinvest into different projects in its R&D pipeline, including, they have one trial they're conducting alongside Johnson & Johnson for a therapy for flu-related complications in people who are hospitalized. They also have a pain drug in mid-stage trials. And I'm sure we're going to hear, over the course of the next 12 to 18 months, a lot more about what their plans are to expand beyond cystic fibrosis.
Harjes: Absolutely. As we wrap up, better buy: Vertex or AbbVie?
Campbell: I have to go with AbbVie. I think they just have more shots on goal right now than Vertex. The other thing that makes me a little nervous about Vertex, and investors should be paying attention to this, AbbVie is actually working with Galapagos , which is another company, on their own cystic fibrosis drugs, their own combination trials, and data should start coming out of that this year. So, theoretically, Vertex may not have this market all to itself come 2020.
Harjes: I'll also add to that that Vertex is partnered with CRISPR Therapeutics , which is a gene-editing company. They're looking at one-time cures for cystic fibrosis as opposed to, right now, treatment is chronic. So they could also be working themselves out of a market there, too. Which is, of course, a very good problem to have, but it's something to keep an eye on.
Campbell: That would be amazing, wouldn't it, Kristine? Wow.
Harjes: Yeah. I'm personally super bullish on gene therapy, and incredibly excited by all the advancements that we're seeing in the different diseases that these companies are tackling. But that's a topic for another day. Todd, thank you so much for joining me today!
Campbell: My pleasure to be here. Thank you for having me!
Harjes: As always, 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 Gilead Sciences and Johnson & Johnson. Todd Campbell owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson & Johnson. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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) and Vertex Pharmaceuticals (NASDAQ: VRTX) significantly outperformed the S&P 500 in 2017, but a stock market correction has caused their shares to drop. In this episode of The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and Motley Fool contributor Todd Campbell discuss the stock market's recent correction and what could be in store for AbbVie and Vertex Pharmaceuticals' investors. The two stocks that we want to cover today are AbbVie and Vertex, they're two of the largest biotechs. | In this episode of The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and Motley Fool contributor Todd Campbell discuss the stock market's recent correction and what could be in store for AbbVie and Vertex Pharmaceuticals' investors. The other thing that makes me a little nervous about Vertex, and investors should be paying attention to this, AbbVie is actually working with Galapagos , which is another company, on their own cystic fibrosis drugs, their own combination trials, and data should start coming out of that this year. AbbVie Inc. (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX) significantly outperformed the S&P 500 in 2017, but a stock market correction has caused their shares to drop. | In this episode of The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and Motley Fool contributor Todd Campbell discuss the stock market's recent correction and what could be in store for AbbVie and Vertex Pharmaceuticals' investors. AbbVie Inc. (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX) significantly outperformed the S&P 500 in 2017, but a stock market correction has caused their shares to drop. The two stocks that we want to cover today are AbbVie and Vertex, they're two of the largest biotechs. | AbbVie Inc. (NYSE: ABBV) and Vertex Pharmaceuticals (NASDAQ: VRTX) significantly outperformed the S&P 500 in 2017, but a stock market correction has caused their shares to drop. In this episode of The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes and Motley Fool contributor Todd Campbell discuss the stock market's recent correction and what could be in store for AbbVie and Vertex Pharmaceuticals' investors. The two stocks that we want to cover today are AbbVie and Vertex, they're two of the largest biotechs. |
25673.0 | 2018-02-11 00:00:00 UTC | 3 Top Healthcare Stocks to Buy in February | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-buy-february-2018-02-11 | nan | nan | The recent market downturn has created some great buying opportunity for opportunistic healthcare investors. But which stocks can be safely purchased today? We asked a team of healthcare investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Mylan Laboratories (NASDAQ: MYL) , IQVIA Holdings (NYSE: IQV) .
Everybody can love this stock
Keith Speights (AbbVie): Some stocks don't appeal to every kind of investor. In fact, it's unusual to find a stock that does have such an appeal. However, I think AbbVie does. It's a stock everybody can love.
Let's start with growth. Over the past three years, AbbVie has generated the highest total shareholder return and the highest adjusted earnings-per-share growth of any big pharma stock. The drugmaker should be able to keep its impressive momentum going.
Humira is on track to continue its reign as the world's top-selling drug for years to come. Sales for cancer drug Imbruvica are soaring. Hepatitis C drug Mavyret should become AbbVie's next blockbuster. And the company has a pipeline chock-full of potential big winners. Wall Street expects AbbVie to grow earnings by 17% annually over the next five years.
What about valuation? Even after gaining more than 80% over the last 12 months, AbbVie stock still trades at only 13 times expected earnings. Factoring growth potential in makes the stock's valuation look even more attractive for value investors.
Of course, income investors are more interested in juicy dividends. AbbVie's got that base covered, too. The company's dividend currently yields 2.44%. AbbVie has increased its dividend payout by nearly 78% since being spun off from Abbott Labs (NYSE: ABT) in 2013.
Whatever your style of investing, AbbVie has something to offer. And with several new product launches and pipeline updates on the way , February is a great time to buy this pharma stock.
A key player in the fight to keep healthcare costs down
Chuck Saletta (Mylan Laboratories): Generic-drug maker Mylan Laboratories is a recognized leader when it comes to keeping a lid on escalating healthcare costs. A generic pharmaceutical manufacturer tracing its history back to the 1960s, Mylan Laboratories has long played a role in driving down the costs of medicines that have lost their patent protections.
What makes Mylan Laboratories look like a strong potential investment right now, though, is the fact that its shares are priced at a bargain compared to its potential. Its shares currently fetch less than eight times its forward earnings, and those earnings are anticipated to grow by better than 4% annualized over the next five years. While that's not exactly a rapid growth trajectory, it is positive expectations, making that forward price-to-earnings ratio a bargain price for a solid business.
Backing up that earnings potential is a solid balance sheet. Mylan Laboratories currently sports a bit more than $760 million in cash, a debt-to-equity ratio just slightly above 1, and a current ratio above 1.4. That balance-sheet strength gives Mylan the ability to ride out ups and downs in the economy without major worry regarding being able to roll its debts as they mature.
It's not often that you can buy shares of a well-capitalized, leading and growing business for less than 10 times its expected earnings, but right now, with Mylan Laboratories, you can.
Pharma's go-to partner
Brian Feroldi (IQVIA Holdings): Developing a new drug from scratch is a long and grueling process fraught with risk. What's more, even if you cross the finish line, there's no guarantee that healthcare providers, insurers, or patients will even use your product.
With millions (or billions) on the line, most drug developers are willing to do anything they can to give their compound the best shot at success. That's why many of them choose to partner up with IQVIA Holdings.
IQVIA -- formerly known as Quintiles IMS -- is the world's largest clinical research organization. Drug developers can hire IQVIA to run their clinical trials, gather the lab work, and analyze the data. This is a process that IQVIA understands inside and out, which is why so many companies are willing to partner with it. For evidence of its popularity, consider that the company's backlog of projects stood at $10.3 billion as of the end of September.
Better yet, if a drug does makes it to market, IQVIA can also help with the commercialization process. IQVIA boasts a huge database of patient records and prescriptions that can be accessed for a fee. Most pharmaceutical companies are happy to pay up for access because it enables their sales team to reach maximum efficiency.
When combined, these two businesses enable IQVIA to make money from all facets of the drug development process. With its shares currently trading hands for around 18 times 2018 earnings estimates, right now is a great time to get in.
10 stocks we like better than IQVIA Holdings, Inc.
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*Stock Advisor returns as of February 5, 2018
Brian Feroldi has no position in any of the stocks mentioned. Chuck Saletta has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie. The Motley Fool recommends IQVIA Holdings, Inc. and Mylan. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 a team of healthcare investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Mylan Laboratories (NASDAQ: MYL) , IQVIA Holdings (NYSE: IQV) . Everybody can love this stock Keith Speights (AbbVie): Some stocks don't appeal to every kind of investor. However, I think AbbVie does. | We asked a team of healthcare investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Mylan Laboratories (NASDAQ: MYL) , IQVIA Holdings (NYSE: IQV) . Everybody can love this stock Keith Speights (AbbVie): Some stocks don't appeal to every kind of investor. However, I think AbbVie does. | We asked a team of healthcare investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Mylan Laboratories (NASDAQ: MYL) , IQVIA Holdings (NYSE: IQV) . Everybody can love this stock Keith Speights (AbbVie): Some stocks don't appeal to every kind of investor. However, I think AbbVie does. | However, I think AbbVie does. We asked a team of healthcare investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Mylan Laboratories (NASDAQ: MYL) , IQVIA Holdings (NYSE: IQV) . Everybody can love this stock Keith Speights (AbbVie): Some stocks don't appeal to every kind of investor. |
25674.0 | 2018-02-08 00:00:00 UTC | What Are the Best Healthcare Stocks to Buy? Here Are a Top AI System's 5 Favorites | ABBV | https://www.nasdaq.com/articles/what-are-best-healthcare-stocks-buy-here-are-top-ai-systems-5-favorites-2018-02-08 | nan | nan | What if a complex artificial-intelligence (AI) system could pick stocks for you? With the AI Powered Equity ETF (AIEQ) launched by Equbot, it can. Equbot used IBM Watson, one of the world's leading AI platforms, to try to identify stocks that would beat market returns with similar volatility levels as the overall market.
With healthcare making up nearly one-fifth of the U.S. economy, I was curious which healthcare stocks Equbot's AI system would pick. The top five healthcare stocks AIEQ owns right now are Envision Healthcare (NYSE: EVHC) , Encompass Health , UnitedHealth Group (NYSE: UNH) , AbbVie (NYSE: ABBV) , and PDL BioPharma (NASDAQ: PDLI) . Although Equbot doesn't provide any details about how its AI system chooses stocks to buy, here's why I suspect these healthcare stocks made the top of the list.
Envision Healthcare
Envision Healthcare currently consists of three core businesses. American Medical Response (AMR) provides medical transportation services. Emcare provides integrated facility-based physician services to hospitals. Evolution Health provides home health, hospice, and infusion services. However, Envision is in the process of selling AMR for $2.4 billion.
My hunch is that Equbot's AI system likes two things about Envision Healthcare stock. One is that the company is in distress. Over the past 12 months, the company has lost half of its market cap. It didn't help that Envision posted dismal Q3 results in November and said it was pursuing "strategic alternatives." Distressed stocks can sometimes present tremendous investing opportunities.
That leads to the second thing I suspect the AI system likes about Envision Healthcare: It's in a business with long-term growth potential. Granted, the company hasn't made smart moves in the past to achieve that potential. It wouldn't surprise me if Equbot's machine-learning algorithms "think" that Envision could be worth much more over the long run than what it's currently valued at, with the aging demographics in the U.S. driving demand for healthcare services higher.
Encompass Health
Encompass Health is one of the largest operators of inpatient rehabilitation hospitals in the U.S. and is a leader in home-based care. Before July 2017, Encompass was known as HealthSouth.
Unlike Envision Healthcare, Encompass Health isn't a company in distress. The stock enjoyed solid gains in 2017 and has performed relatively well so far this year despite the broader market pullback. Encompass has also grown revenue and earnings by solid, albeit not spectacular, rates.
Why would Equbot's AI system like Encompass Health stock? Probably because of the same demographic trends that could benefit Envision Healthcare. Inpatient rehab hospitals and home-based care should be in significantly greater demand as baby boomers reach their 70s and 80s.
UnitedHealth Group
UnitedHealth Group ranks as the largest U.S. health insurer. The company also operates the third largest pharmacy benefit manager (PBM) in the country through its Optum business unit.
I'm not surprised at all that UnitedHealth was one of the Equbot AI system's top healthcare picks. It's also one of the top 10 stocks in The Motley Fool's new Fool 100 Index . I think the IBM Watson technology that powers Equbot just might be a bit of a Foolish investor.
As with the first two stocks discussed, the growth opportunity resulting from an aging U.S. population is an important reason to buy UnitedHealth Group stock. It's also probably helpful that UnitedHealth is valued attractively, especially considering its earnings growth potential in the coming years.
AbbVie
AbbVie is one of the biggest biopharmaceutical companies on the market. The company's autoimmune-disease drug Humira was the world's best-selling drug in 2017 , pulling in a whopping $18.4 billion in sales.
My guess is that Equbot's AI system likes AbbVie for the same reasons I do. The company has great growth prospects. Humira continues to rock along, sales are soaring for cancer drug Imbruvica, and AbbVie's pipeline is loaded with potential blockbusters, including Rova-T, which could become one of the biggest new drug launches of 2018 .
In addition to strong growth potential, AbbVie offers a nice dividend yield of 2.47%. The company has increased its dividend every year since being spun off from parent Abbott Labs in 2013, with total dividend growth of nearly 78% since then. On top of all of this, AbbVie stock is cheap, with shares trading at less than 13 times expected earnings.
PDL Biopharma
PDL Biopharma is another biopharmaceutical company making the list of top healthcare stocks in Equbot's AI-powered ETF. Unlike AbbVie, though, PDL focuses on investing in other companies in the biopharmaceutical industry.
I think I know why the AI system views PDL Biopharma so positively. The company's market cap right now is a little under $400 million. But PDL has over $516 million in cash. Sure, PDL also has debt of nearly $241 million. However, even adjusting for that debt load, the stock trades at less than half of its book value.
Half of PDL Biopharma's revenue comes from royalties for several diabetes drugs licensed to Depomed in 2013. Around one-quarter of the company's revenue stems from Tekturna, a high blood pressure drug acquired from Noden Pharma in 2016. The Tekturna transaction was the first case of PDL acquiring a commercial-stage product to generate income from product sales. If the company is able to successfully execute more deals like that one, PDL stock could be a winner for AIEQ.
The best?
Are these five really the best healthcare stocks to buy right now? I'm not so sure.
AbbVie is one of my favorite stocks. I continue to think it will perform well over the long run. And as mentioned earlier, UnitedHealth Group is one of The Motley Fool's top stocks. Although the health insurer doesn't rank at the top of my list, the Fool has a great history of picking stocks. PDL Biopharma also isn't one of my favorites, but the stock's valuation is intriguing.
My view, though, is that there are better choices than Envision Healthcare and Encompass Health. AI systems are designed to detect patterns that humans normally wouldn't spot, so maybe Equbot's IBM Watson application sees more than I see with these two stocks. For now, though, I think I'll stick with picking my own stocks.
10 stocks we like better than UnitedHealth Group
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 UnitedHealth Group 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 February 5, 2018
Keith Speights owns shares of AbbVie. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top five healthcare stocks AIEQ owns right now are Envision Healthcare (NYSE: EVHC) , Encompass Health , UnitedHealth Group (NYSE: UNH) , AbbVie (NYSE: ABBV) , and PDL BioPharma (NASDAQ: PDLI) . AbbVie AbbVie is one of the biggest biopharmaceutical companies on the market. My guess is that Equbot's AI system likes AbbVie for the same reasons I do. | The top five healthcare stocks AIEQ owns right now are Envision Healthcare (NYSE: EVHC) , Encompass Health , UnitedHealth Group (NYSE: UNH) , AbbVie (NYSE: ABBV) , and PDL BioPharma (NASDAQ: PDLI) . AbbVie AbbVie is one of the biggest biopharmaceutical companies on the market. My guess is that Equbot's AI system likes AbbVie for the same reasons I do. | The top five healthcare stocks AIEQ owns right now are Envision Healthcare (NYSE: EVHC) , Encompass Health , UnitedHealth Group (NYSE: UNH) , AbbVie (NYSE: ABBV) , and PDL BioPharma (NASDAQ: PDLI) . AbbVie AbbVie is one of the biggest biopharmaceutical companies on the market. My guess is that Equbot's AI system likes AbbVie for the same reasons I do. | The top five healthcare stocks AIEQ owns right now are Envision Healthcare (NYSE: EVHC) , Encompass Health , UnitedHealth Group (NYSE: UNH) , AbbVie (NYSE: ABBV) , and PDL BioPharma (NASDAQ: PDLI) . AbbVie AbbVie is one of the biggest biopharmaceutical companies on the market. My guess is that Equbot's AI system likes AbbVie for the same reasons I do. |
25675.0 | 2018-02-08 00:00:00 UTC | Novartis' Cosentyx Label Expanded to Include Scalp Psoriasis | ABBV | https://www.nasdaq.com/articles/novartis-cosentyx-label-expanded-to-include-scalp-psoriasis-2018-02-08 | nan | nan | NovartisNVS announced that the FDA has approved a line extension for its IL-17A inhibitor drug, Cosentyx, in moderate-to-severe scalp psoriasis. The FDA approval comes on the back of positive efficacy and safety outcomes from a dedicated phase III study - SCALP - in patients with scalp psoriasis.
We note that the drug was approved for a similar indication in Europe in June 2017. It is already approved for the treatment of plaque psoriasis, psoriatic arthritis (PsA) and ankylosing spondylitis ("AS").
Per the press release, scalp psoriasis is one of the difficult to treat forms of psoriasis, which affects about half of the approximately 125 million patients with the disease. The line extension of the drug is an important achievement as treatment of scalp psoriasis with topical agents or phototherapy is challenging due to the presence of hair and other factors.
Novartis' shares have returned 13.7% in the past year, compared to the industry 's gain of 14.1% in the same period.
The SCALP study evaluated the subcutaneous administration of Cosentyx (300 mg) for 12 weeks. Data showed significant improvement in patients compared to placebo.
Cosentyx's performance was impressive in 2017. It achieved multi-blockbuster drug status on the back of strong growth in all the approved indications. Sales of the drug increased 82% in 2017 to surpass the $2 billion mark.
The drug has shown superiority in clinical studies to Johnson & Johnson's JNJ Stelara and Amgen's AMGN Enbrel in treating psoriasis. Novartis is also conducting head-to-head clinical trials - EXCEED and SURPASS - to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA and to a proposed biosimilar of Humira in AS, respectively.
The superiority of the drug over Stelara and Enbrel has helped it gain market share. Potential superiority over Humira and its biosimilar along with this line extension in scalp psoriasis will certainly boost the prospect of the drug.
Novartis AG Price
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Zacks Rank
Novartis 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. | Novartis is also conducting head-to-head clinical trials - EXCEED and SURPASS - to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA and to a proposed biosimilar of Humira in AS, respectively. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. NovartisNVS announced that the FDA has approved a line extension for its IL-17A inhibitor drug, Cosentyx, in moderate-to-severe scalp psoriasis. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. Novartis is also conducting head-to-head clinical trials - EXCEED and SURPASS - to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA and to a proposed biosimilar of Humira in AS, respectively. The drug has shown superiority in clinical studies to Johnson & Johnson's JNJ Stelara and Amgen's AMGN Enbrel in treating psoriasis. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. Novartis is also conducting head-to-head clinical trials - EXCEED and SURPASS - to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA and to a proposed biosimilar of Humira in AS, respectively. NovartisNVS announced that the FDA has approved a line extension for its IL-17A inhibitor drug, Cosentyx, in moderate-to-severe scalp psoriasis. | Novartis is also conducting head-to-head clinical trials - EXCEED and SURPASS - to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA and to a proposed biosimilar of Humira in AS, respectively. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. Potential superiority over Humira and its biosimilar along with this line extension in scalp psoriasis will certainly boost the prospect of the drug. |
25676.0 | 2018-02-08 00:00:00 UTC | FDA Approves Gilead (GILD) HIV Triple Therapy, Stock Up | ABBV | https://www.nasdaq.com/articles/fda-approves-gilead-gild-hiv-triple-therapy-stock-up-2018-02-08 | nan | nan | Gilead Sciences, Inc.GILD received a major boost when the FDA approved the company's once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection.
The approval, which comes ahead of the PDUFA date of Feb 12, 2018, provides a major boost to Gilead's HIV franchise.
Though the company topped both earnings and revenue estimates in the fourth quarter, the magnitude of the decline in HCV sales was wider-than-expected. The HCV franchise has been under pressure for a while due to lower patient starts and increased competition form AbbVie's ABBV .
The company's guidance for 2018 also lacks lustre and we expect sales of the same to decline further.
Amid such a scenario, the approval of this latest triple HIV therapy is likely to provide an impetus to the stock as Gilead is now banking on its HIV franchise and newer avenues like the CAR-T therapy post the Kite acquisition and promising NASH candidates for growth. Following the news of the approval, shares of the company moved up 3.8%. Gilead's stock has gained 14.4% in the last six months as against the industry's decline of 3.6%.
Biktarvy, Gilead's latest triple therapy, is approved as a complete regimen for the treatment of HIV-1 infection in adults who have no antiretroviral treatment history or to replace the current antiretroviral regimen in those who are virologically suppressed (HIV-1 RNA
Meanwhile, the HIV franchise continues to gain traction on the back of rapid adoption of TAF-based regimens in the United States and EU. The TAF-based regimens now represent 62% of total Gilead HIV prescription volume following the launch of Genvoya along with Odefsey and Descovy in 2016.
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 Biktarvy was supported by encouraging data from four ongoing studies: Studies 1489 and 1490 in treatment-naïve HIV-1 infected adults, and Studies 1844 and 1878 in virologically suppressed adults. Biktarvy met its primary objective of non-inferiority at 48 weeks across all four studies.
However, Biktarvy has a Boxed Warning in its product label regarding the risk of post treatment acute exacerbation of hepatitis B.
The approval of this new HIV therapy will pose stiff competition to GlaxoSmith's GSK existing therapies, Tivicay and Triumeq.
On the other hand, per a report from Reuters, ViiV Healthcare, a joint venture majority-owned by GlaxoSmith with Pfizer PFE and Shionogi Ltd has filed a lawsuit against Gilead alleging patent infringement on ViiV's dolutegravir, a component of the venture's triple-drug HIV treatment Triumeq.
Zacks Rank
Gilead currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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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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 HCV franchise has been under pressure for a while due to lower patient starts and increased competition form AbbVie's ABBV . Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): 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. Gilead Sciences, Inc.GILD received a major boost when the FDA approved the company's once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection. | Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): 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. The HCV franchise has been under pressure for a while due to lower patient starts and increased competition form AbbVie's ABBV . Gilead Sciences, Inc.GILD received a major boost when the FDA approved the company's once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection. | Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): 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. The HCV franchise has been under pressure for a while due to lower patient starts and increased competition form AbbVie's ABBV . Amid such a scenario, the approval of this latest triple HIV therapy is likely to provide an impetus to the stock as Gilead is now banking on its HIV franchise and newer avenues like the CAR-T therapy post the Kite acquisition and promising NASH candidates for growth. | The HCV franchise has been under pressure for a while due to lower patient starts and increased competition form AbbVie's ABBV . Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): 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. Gilead Sciences, Inc.GILD received a major boost when the FDA approved the company's once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection. |
25677.0 | 2018-02-07 00:00:00 UTC | Add These 7 GARP Stocks to Your Portfolio for Better Returns | ABBV | https://www.nasdaq.com/articles/add-these-7-garp-stocks-to-your-portfolio-for-better-returns-2018-02-07 | nan | nan | Growth at a reasonable price or GARP is an excellent way for investors to make some quick gains. This strategy helps investors gain exposure to stocks that have impressive prospects and are trading at a discount.
The GARP approach leads to the identification of stocks that are priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.
That means a portfolio created on the basis of GARP strategy is expected to have stocks that offer the best of both value and growth investing.
Growth Metrics
Strong earnings growth and solid prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, picking stocks with a more stable and reasonable growth rate is a preferred tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the strategy.
Another growth metric that is considered by both growth and GARP investors is return on equity (ROE). GARP investors look for strong and higher ROE compared to the industry average to identify superior stocks. Moreover, stocks with positive cash flow find precedence under the GARP plan.
Value Metrics
GARP investing gives priority to one of the popular value metrics - price-to-earnings (P/E) ratio. Though this investing style picks stocks with higher P/E ratios compared to value investors, it avoids companies with extremely high P/E ratios. Moreover, the price-to-book value (P/B) ratio is another value metric that is considered.
Using the GARP principle, we have run a screen to identify stocks that are likely to offer solid returns in the near term.
Screening Parameters
Along with the criteria discussed in the above section, we have considered a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy).
Last 5-year EPS & projected 3-5 year EPS growth rates between 10% and 20% (Strong EPS growth history and prospects ensure improving business.)
ROE (over the past 12 months) greater than the industry average (Higher ROE compared to the industry average indicates superior stocks.)
P/E and P/B ratios less than M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)
These few criteria have narrowed down the universe of over 7,700 stocks to only 14.
Here are seven of the 14 stocks that made it through the screen:
MSCI Inc . MSCI is an independent provider of research-driven insights and tools for institutional investors. The company has an average four-quarter positive earnings surprise of 3.9% and carries a Zacks Rank #1.
American Financial Group, Inc.AFG is a holding company which, through its subsidiaries, is engaged primarily in private passenger automobile and specialty property and casualty insurance businesses and in the sale of tax-deferred annuities and certain life and supplemental health insurance products. The stock has an average four-quarter positive earnings surprise of 26.3% and carries a Zacks Rank #1.
The Home Depot Inc.HD is the world's largest home improvement retailer. The company has an average four-quarter positive earnings surprise of 3.9% and carries a Zacks Rank #2.
AbbVie Inc . ABBV is a global, research-based biopharmaceutical company. The stock has an average four-quarter positive earnings surprise of 1.8% and carries a Zacks Rank #2.
Lazard Ltd . LAZ is a preeminent international financial advisory and asset management firm that has long specialized in crafting solutions to take care of complex financial and strategic challenges faced by their clients. The company has an average four-quarter positive earnings surprise of 16.1% and carries a Zacks Rank #2.
Carter's, Inc . CRI is a leading provider of apparel and related products exclusively for babies and young children. The stock has an average four-quarter positive earnings surprise of 8.9% and carries a Zacks Rank #2.
First American Financial CorporationFAF provides financial services through its Title Insurance and Services segment and its Specialty Insurance segment. The stock has an average four-quarter positive earnings surprise of 12.7% and carries a Zacks Rank #2.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance .
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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 a global, research-based biopharmaceutical company. Click to get this free report MSCI Inc (MSCI): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report Lazard Ltd. (LAZ): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report Carter's, Inc. (CRI): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report MSCI Inc (MSCI): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report Lazard Ltd. (LAZ): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report Carter's, Inc. (CRI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc . ABBV is a global, research-based biopharmaceutical company. | Click to get this free report MSCI Inc (MSCI): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report Lazard Ltd. (LAZ): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report Carter's, Inc. (CRI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc . ABBV is a global, research-based biopharmaceutical company. | AbbVie Inc . ABBV is a global, research-based biopharmaceutical company. Click to get this free report MSCI Inc (MSCI): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report Lazard Ltd. (LAZ): Free Stock Analysis Report First American Corporation (The) (FAF): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report Carter's, Inc. (CRI): Free Stock Analysis Report To read this article on Zacks.com click here. |
25678.0 | 2018-02-07 00:00:00 UTC | Gilead (GILD) Beats on Q4 Earnings, 2018 View Lacks Lustre | ABBV | https://www.nasdaq.com/articles/gilead-gild-beats-on-q4-earnings-2018-view-lacks-lustre-2018-02-07 | nan | nan | Gilead Sciences, Inc.'sGILD reported fourth-quarter 2017 results wherein both earnings and revenues surpassed expectations. However, management issued a bleak view for 2018.
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 hepatitis C virus (HCV) franchise in 2018. Nevertheless, Gilead's stock has gained 10.9% in the last six months as against the industry' s decline of 4.6%.
The company's fourth-quarter earnings of $1.78 per share beat the Zacks Consensus Estimate of $1.70. However, earnings were below the year-ago quarter figure of $2.70 per share.
Moreover, total revenues of $5.9 billion topped the Zacks Consensus Estimate of $5.8 billion. However, revenues declined 18.7% year over year.
Gilead Sciences, Inc. Price and Consensus
Gilead Sciences, Inc. Price and Consensus | Gilead Sciences, Inc. Quote
Harvoni & Sovaldi Plunges Further
Product sales came in at $5.8 billion, down 19.1% year over year. The decline was due to lower HCV sales, partially offset by higher sales across HIV and other therapeutic areas.
Antiviral product sales, which include Gilead's HIV and liver disease portfolio, came in at $5.2 billion in the quarter, down 21.2%.
HCV product sales, which include Harvoni, Sovaldi, Epclusa and Vosevi, were $1.5 billion, down from $3.2 billion reported in the year-ago quarter. The downside was mainly attributed to lower sales of Harvoni and Sovaldi across all major markets.
Sales of Harvoni declined 60.7% year over year to $644 million in the quarter. Further, Sovaldi sales recorded a steep year-over-year decline of 78.4% to $117 million.
Epclusa garnered sales of $565 million in the quarter, down from the year-ago figure of $1.0 billion.
Meanwhile, HIV and HBV product sales came in at $3.7 billion, up 8.8% 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 $1,060 million, up from $563 million in the year-ago quarter, Descovy, which recorded sales of $365 million, up from $149 million, and Odefsey, which registered sales of $325 million, up from $155 million. HIV treatments like Stribild and Complera/Eviplera sales declined 42.6% and 25.2% respectively. Viread sales were down at $212 million, down 34.6%.
Atripla sales tanked 27.5% to $440 million, while Truvada sales fell 8.2% to $797 million.
Other products like Letairis, Ranexa, AmBisome and Zydelig recorded sales of $233 million (up 3.1%), $200 million (down 4.7%), $90 million (down 4.4%) and $39 million, respectively.
Research & development (R&D) expenses declined 11.9% to $845 million due to the 2016 impact of ongoing milestone payments. Selling, general and administrative (SG&A) expenses decreased 1.6% to $923 million. Adjusted product gross margin was 83.5% compared to 88.1% in the year-ago period.
2017 Results
Revenues in 2017 came in at $26.1 billion, down from $30.4 billion in 2016 and surpassed Zacks Consensus Estimate of $25.9 billion. Earnings per share came in at $8.84, down from $11.57 in 2016 and beat the Zacks Consensus Estimate of $8.73.
2018 Guidance
Gilead now expects 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 recently acquired Cell Design Labs to expand further in the CAR-T space.
Dividend and Share Repurchase
Concurrently, Gilead declared a cash dividend of 57 cents per share of common stock for first-quarter 2018, an increase of 10%. The dividend is payable on Mar 29 to stockholders of record at the close of business on Mar 16. During 2017, the company paid cash dividends of $2.7 billion and repurchased shares for $954 million.
Our Take
Though the company topped both earnings and revenue estimates in the fourth quarter, the magnitude of the decline in HCV sales was larger-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, Bristol-Myers' BMY and Merck's MRK Zepatier. Both pricing and market share are expected to stabilize by mid-2018 while patient starts are expected to decline further.
Meanwhile, the HIV franchise maintains momentum driven by the rapid adoption of TAF-based regimens in the United States and EU. 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. 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 an estimated 153,000 patients using Truvada by the end of 2017. The approval of Yescarta also bodes well for Gilead. We expect the decline in HCV franchise to offset the positive momentum of HIV franchise. Gilead is also intending to foray into the NASH market with pipeline candidates- selonsertib and filgotinib.
Zacks Rank
Gilead currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, Bristol-Myers' BMY and Merck's MRK Zepatier. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Merck & Company, 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. Our Take Though the company topped both earnings and revenue estimates in the fourth quarter, the magnitude of the decline in HCV sales was larger-than-expected. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, Bristol-Myers' BMY and Merck's MRK Zepatier. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Merck & Company, 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. Gilead Sciences, Inc. Price and Consensus Gilead Sciences, Inc. Price and Consensus | Gilead Sciences, Inc. Quote Harvoni & Sovaldi Plunges Further Product sales came in at $5.8 billion, down 19.1% year over year. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Merck & Company, 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 Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, Bristol-Myers' BMY and Merck's MRK Zepatier. Gilead Sciences, Inc. Price and Consensus Gilead Sciences, Inc. Price and Consensus | Gilead Sciences, Inc. Quote Harvoni & Sovaldi Plunges Further Product sales came in at $5.8 billion, down 19.1% year over year. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, Bristol-Myers' BMY and Merck's MRK Zepatier. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Merck & Company, 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. Moreover, total revenues of $5.9 billion topped the Zacks Consensus Estimate of $5.8 billion. |
25679.0 | 2018-02-07 00:00:00 UTC | Why AbbVie Inc.'s Shares Rocketed 16% in January | ABBV | https://www.nasdaq.com/articles/why-abbvie-incs-shares-rocketed-16-january-2018-02-07 | nan | nan | What happened
After updating investors on its 2017 financial performance and providing a bullish outlook for its future, shares in AbbVie Inc. (NYSE: ABBV) rallied by 16% in January, according to S&P Global Market Intelligence .
So what
Investors are less nervous about generic competition to AbbVie's best-selling drug, Humira, following a bullish outlook from management at the J.P. Morgan healthcare conference last month.
Humira's $18.4 billion in sales accounted for about 65% of AbbVie's total revenue last year, and some of its patents have already started to expire. Nevertheless, management isn't worried. It expects Humira's sales will increase to $21 billion in 2020 , giving it time to expand the addressable market for its existing drugs and launch new drugs that can offset any lost sales when competitors finally do arrive.
In 2018, AbbVie thinks that growing demand for Mavyret, its hepatitis C drug, will add more than $1 billion to sales and that Imbruvica, a chronic lymphocytic leukemia drug, will continue to make headway toward its long-term goal of $7 billion per year in revenue. Its endometriosis drug, Elagolix, could begin adding to the top line this year too, if the FDA gives it an OK.
A bit further out, FDA applications for approval for Rova-T, upadacitinib, and risankizumab in small-cell lung cancer, rheumatoid arthritis, and psoriasis, respectively, could be filed in the next year. Those are multibillion-dollar indications, so AbbVie thinks its non-Humira revenue could increase from about $9 billion to $35 billion by 2025 if these drugs win a green light.
Now what
If AbbVie fends off Humira lookalikes for a while longer, then investors could be handsomely rewarded. The company's sales growth gives it enviable operating leverage, and that leverage, plus tax reform, gives it plenty of financial flexibility to return more money to investors through dividends.
Since it was spun out as its own company in 2013, AbbVie's increased its dividend by 77%. Yet its cash dividend payout ratio -- a measure of its ability to afford its dividend -- still remains below 50%. With management thinking operating margin can increase to 50% from 34% and predictions for an effective tax rate that's below 13% over the next five years, the odds are pretty good that income investors are going to benefit from putting AbbVie in their portfolios.
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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. | What happened After updating investors on its 2017 financial performance and providing a bullish outlook for its future, shares in AbbVie Inc. (NYSE: ABBV) rallied by 16% in January, according to S&P Global Market Intelligence . So what Investors are less nervous about generic competition to AbbVie's best-selling drug, Humira, following a bullish outlook from management at the J.P. Morgan healthcare conference last month. With management thinking operating margin can increase to 50% from 34% and predictions for an effective tax rate that's below 13% over the next five years, the odds are pretty good that income investors are going to benefit from putting AbbVie in their portfolios. | So what Investors are less nervous about generic competition to AbbVie's best-selling drug, Humira, following a bullish outlook from management at the J.P. Morgan healthcare conference last month. 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 updating investors on its 2017 financial performance and providing a bullish outlook for its future, shares in AbbVie Inc. (NYSE: ABBV) rallied by 16% in January, according to S&P Global Market Intelligence . | In 2018, AbbVie thinks that growing demand for Mavyret, its hepatitis C drug, will add more than $1 billion to sales and that Imbruvica, a chronic lymphocytic leukemia drug, will continue to make headway toward its long-term goal of $7 billion per year in revenue. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * 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! | Since it was spun out as its own company in 2013, AbbVie's increased its dividend by 77%. What happened After updating investors on its 2017 financial performance and providing a bullish outlook for its future, shares in AbbVie Inc. (NYSE: ABBV) rallied by 16% in January, according to S&P Global Market Intelligence . So what Investors are less nervous about generic competition to AbbVie's best-selling drug, Humira, following a bullish outlook from management at the J.P. Morgan healthcare conference last month. |
25680.0 | 2018-02-07 00:00:00 UTC | Why AbbVie is a Top 25 Dividend Giant (ABBV) | ABBV | https://www.nasdaq.com/articles/why-abbvie-top-25-dividend-giant-abbv-2018-02-07 | nan | nan | AbbVie Inc (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a staggering $16.30B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 2.55% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points.
The annualized dividend paid by AbbVie Inc is $2.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/11/2018. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a staggering $16.30B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 2.55% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points. 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 as a Top 25 ''Dividend Giant'' by ETF Channel , with a staggering $16.30B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 2.55% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points. The annualized dividend paid by AbbVie Inc is $2.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/11/2018. | AbbVie Inc (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a staggering $16.30B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 2.55% yield, according to the most recent Dividend Channel''DividendRank'' report. The annualized dividend paid by AbbVie Inc is $2.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/11/2018. The report noted a strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points. | The report noted a strong quarterly dividend history at AbbVie Inc, and favorable long-term multi-year growth rates in key fundamental data points. The annualized dividend paid by AbbVie Inc is $2.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/11/2018. AbbVie Inc (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a staggering $16.30B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 2.55% yield, according to the most recent Dividend Channel''DividendRank'' report. |
25681.0 | 2018-02-07 00:00:00 UTC | Gilead Sciences Inc. Delivers Deja Vu in the Fourth Quarter | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc-delivers-deja-vu-fourth-quarter-2018-02-07 | nan | nan | When Gilead Sciences (NASDAQ: GILD) reported its third-quarter results in October, three things jumped out. First, the biotech's hepatitis C virus (HCV) franchise continued to struggle. Second, Gilead's HIV franchise continued to dominate. And third, the company's cash position looked great.
Gilead announced its fourth-quarter and full-year 2017 results after the market closed on Tuesday. Was there a different story for the big biotech this time around? Nope. It was more like a case of deja vu. Here are the highlights from Gilead's update.
Gilead Sciences results: The raw numbers
Data source: Gilead Sciences.
What happened with Gilead Sciences this quarter?
Let's first address the most glaring number in Gilead's fourth-quarter results -- that big net loss. There's no reason to worry. The loss stemmed from a $5.5 billion provision for income taxes related to the recent U.S. tax reform legislation. While Gilead took this one-time hit, the company will be in better shape going forward, thanks to lower corporate tax rates in the U.S.
Aside from this tax charge, Gilead's performance in the fourth quarter wasn't terribly different from the third quarter. Declining HCV sales continued to drag down sales and earnings. Total HCV franchise revenue for the fourth quarter dropped from $3.2 billion in the prior-year period to $1.5 billion.
Unlike previous quarters in 2017, however, sales for Epclusa fell in the fourth quarter. Competition from AbbVie 's new HCV drug Mavyret appeared to make a significant dent in sales for Gilead's drug in the U.S. The only bright spot for Gilead's HCV franchise was Vosevi, which made $170 million in the fourth quarter -- higher than sales for one-time blockbuster Sovaldi.
Gilead yet again had some good news to report for its HIV franchise, though. Fourth-quarter sales for Genvoya soared 88% year over year to $1.06 billion. Descovey enjoyed even stronger percentage growth, with sales jumping 145% year over year to $365 million. Meanwhile, fourth-quarter sales for Gilead's other TAF-based HIV drug Odefsey more than doubled from the prior-year period to $325 million.
However, some of the growth from these TAF-based regimens came at the expense of Gilead's older HIV drugs. Sales for Truvada in the fourth quarter slipped 8% year over year to $797 million. Atripla's fourth-quarter sales fell nearly 28% below the prior-year period level to $440 million. Stribild and Viread took even larger hits, with sales declining 43% and 35% year over year, respectively.
Gilead's other products essentially treaded water, with combined sales in the fourth quarter of $624 million, compared to $621 million in the prior-year period. These products include Letairis, Ranexa, Ambisome, and Zydelig.
What about cash? The company reported cash, cash equivalents, and marketable securities totaling $36.7 billion as of Dec. 31, 2017. That amount was higher than the $32.4 billion on hand at the end of 2016, but dropped from $41.4 billion at the end of the third quarter.
Looking forward
The most important news from Gilead's fourth-quarter update was the biotech's outlook for 2018. The company expects net product sales this year between $20 billion and $21 billion. That's a little lower than some estimates, but Gilead is known to sandbag a little. That was the case with 2017. Gilead gave guidance at the end of the third quarter for full-year net product sales between $24.5 billion and $25.5 billion, but reported actual 2017 net product sales of $25.7 billion.
Still, though, Gilead's 2018 estimate represents another 20% year-over-year revenue decline. In November, Gilead CEO John Milligan predicted that this year could be the "beginning of a growth phase" for the company. That won't happen -- at least not based on the biotech's guidance.
It's still too early for Gilead's acquisitions of Kite Pharma and Cell Design Labs to start paying off. That's also true for much of the biotech's pipeline, including its promising candidates targeting treatment of non-alcoholic steatohepatitis (NASH).
However, there is one big development on the way: an FDA approval decision on bictegravir/F/TAF in treating HIV. This decision is scheduled to be announced by Feb. 12. Assuming it's approved as expected, the combo appears likely to become the biggest new drug launch of 2018 .
Shareholders will also enjoy a fatter dividend check soon. Gilead announced a 10% increase to its dividend beginning in the first quarter of 2018. That should bump the biotech's dividend yield up to around 2.8%. Patient investors will be paid more to wait for Gilead to deliver something different than deja vu down the road.
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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 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. | Competition from AbbVie 's new HCV drug Mavyret appeared to make a significant dent in sales for Gilead's drug in the U.S. *Stock Advisor returns as of Feb. 5, 2018 Keith Speights owns shares of AbbVie and Gilead Sciences. The only bright spot for Gilead's HCV franchise was Vosevi, which made $170 million in the fourth quarter -- higher than sales for one-time blockbuster Sovaldi. | Competition from AbbVie 's new HCV drug Mavyret appeared to make a significant dent in sales for Gilead's drug in the U.S. *Stock Advisor returns as of Feb. 5, 2018 Keith Speights owns shares of AbbVie and Gilead Sciences. Total HCV franchise revenue for the fourth quarter dropped from $3.2 billion in the prior-year period to $1.5 billion. | Competition from AbbVie 's new HCV drug Mavyret appeared to make a significant dent in sales for Gilead's drug in the U.S. *Stock Advisor returns as of Feb. 5, 2018 Keith Speights owns shares of AbbVie and Gilead Sciences. Gilead Sciences results: The raw numbers Data source: Gilead Sciences. | Competition from AbbVie 's new HCV drug Mavyret appeared to make a significant dent in sales for Gilead's drug in the U.S. *Stock Advisor returns as of Feb. 5, 2018 Keith Speights owns shares of AbbVie and Gilead Sciences. While Gilead took this one-time hit, the company will be in better shape going forward, thanks to lower corporate tax rates in the U.S. Aside from this tax charge, Gilead's performance in the fourth quarter wasn't terribly different from the third quarter. |
25682.0 | 2018-02-07 00:00:00 UTC | Wednesday's ETF with Unusual Volume: PPH | ABBV | https://www.nasdaq.com/articles/wednesdays-etf-unusual-volume-pph-2018-02-07 | nan | nan | The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 759,000 shares traded versus three month average volume of about 96,000. Shares of PPH were off about 0.1% on the day.
Components of that ETF with the highest volume on Wednesday were Pfizer ( PFE ), trading down about 0.5% with over 17.7 million shares changing hands so far this session, and Valeant Pharmaceuticals International ( VRX ), down about 2.3% on volume of over 10.2 million shares. Abbvie ( ABBV ) is the component faring the best Wednesday, higher by about 2.7% on the day, while Sanofi ( SNY ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.5%.
VIDEO: Wednesday's ETF with Unusual Volume: PPH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie ( ABBV ) is the component faring the best Wednesday, higher by about 2.7% on the day, while Sanofi ( SNY ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.5%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 759,000 shares traded versus three month average volume of about 96,000. Components of that ETF with the highest volume on Wednesday were Pfizer ( PFE ), trading down about 0.5% with over 17.7 million shares changing hands so far this session, and Valeant Pharmaceuticals International ( VRX ), down about 2.3% on volume of over 10.2 million shares. | Abbvie ( ABBV ) is the component faring the best Wednesday, higher by about 2.7% on the day, while Sanofi ( SNY ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.5%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 759,000 shares traded versus three month average volume of about 96,000. VIDEO: Wednesday's ETF with Unusual Volume: PPH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie ( ABBV ) is the component faring the best Wednesday, higher by about 2.7% on the day, while Sanofi ( SNY ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.5%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 759,000 shares traded versus three month average volume of about 96,000. Components of that ETF with the highest volume on Wednesday were Pfizer ( PFE ), trading down about 0.5% with over 17.7 million shares changing hands so far this session, and Valeant Pharmaceuticals International ( VRX ), down about 2.3% on volume of over 10.2 million shares. | Abbvie ( ABBV ) is the component faring the best Wednesday, higher by about 2.7% on the day, while Sanofi ( SNY ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.5%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 759,000 shares traded versus three month average volume of about 96,000. Shares of PPH were off about 0.1% on the day. |
25683.0 | 2018-02-06 00:00:00 UTC | Centene (CNC) Beats Q4 Earnings & Revenues, Ups '18 View | ABBV | https://www.nasdaq.com/articles/centene-cnc-beats-q4-earnings-revenues-ups-18-view-2018-02-06 | nan | nan | Centene Inc.CNC reported fourth-quarter 2017 adjusted net income per share of 97 cents, which beat the Zacks Consensus Estimate by 3.2%. Earnings, however, declined 18% year over year on higher expenses.
For the fourth quarter, total revenues grew 8% to $12.8 billion from the year-ago quarter, primarily driven by growth in the Health Insurance Marketplace business in 2017 and expansions and new programs in many states in 2016 and 2017. Revenues surpassed the Zacks Consensus Estimate of $12.3 billion by 4%.
Full-Year Update
For 2017, the company reported adjusted earnings of $5.03, up 13.5% year over year. The figure also surpassed the Zacks Consensus Estimate by 0.8%.
Centene reported total revenues of $48.4 billion, up 19% year over year. The rise was primarily driven by Health Net's results throughout the year, impact of growth in the Health Insurance Marketplace business in 2017 and expansions and new programs in many states in 2016 and 2017.
At the end of the year, managed care membership totaled 12.2 million, up 7% from 2016.
Quarterly Operational Update
Health Benefit Ratio (HBR) for the fourth quarter was 87.3% compared with 84.8% in the prior-year quarter. This reflects a year-over-year improvement of 250 basis points (bps).
In the quarter, adjusted selling, general & administrative (SG&A) ratio was 10.5%, up 110 bps year over year. The deteriorationis a result of increased business expansion costs over the prior-year quarter. Notably, revenues recognized in the fourth quarter of 2016, relating to the minimum MLR amendment in California, had reduced the quarter's adjusted SG&A expense ratio. Hence, the expense ratio for the fourth-quarter 2017 appears higher compared to the year-ago quarter.
Total operating expenses of $12.6 billion at the end of fourth quarter increased nearly 11% from the prior-year quarter.
Centene Corporation Price, Consensus and EPS Surprise
Centene Corporation Price, Consensus and EPS Surprise | Centene Corporation Quote
Financial Update
As of Dec 31, 2017, Centene had cash and cash equivalents of $4 billion, up 3.6% from 2016 end.
Total assets of $21.8 billion grew 8.2%.
As of Dec 31, 2017, Centene's long-term debt totaled $4.7 billion, up 0.9%.
For 2017, cash inflow from operations was $1,489 million compared with $1,851 million at the end of 2016.
2018 Guidance
Centene expects adjusted earnings per share to be in the range of $6.95-$7.35, up from the previously guided range of $5.47-$5.87.
Total revenues are expected to be in the range of $60.6-$61.4 billion, up from the earlier guidance of $60.0 billion to $60.8 billion.
HBR is expected in the range of 86.2-86.7% compared with the previous guidance of 86.3% to 86.8%.
Adjusted SG&A expense ratio is expected in the range of 9.2-9.7%, up from the previous guidance of 9.0% to 9.5%.
Shares outstanding is expected be between 199.1 million and 200.1 million, down from the previous guidance of 201.1 million to 202.1 million.
Zacks Rank and Performance of Other Peers
Centene sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate.
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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 other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report To read this article on Zacks.com click here. Centene Inc.CNC reported fourth-quarter 2017 adjusted net income per share of 97 cents, which beat the Zacks Consensus Estimate by 3.2%. | Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report To read this article on Zacks.com click here. Centene Corporation Price, Consensus and EPS Surprise Centene Corporation Price, Consensus and EPS Surprise | Centene Corporation Quote Financial Update As of Dec 31, 2017, Centene had cash and cash equivalents of $4 billion, up 3.6% from 2016 end. | Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report To read this article on Zacks.com click here. Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Centene reported total revenues of $48.4 billion, up 19% year over year. | Among other players in the Medical sector that have reported their fourth-quarter earnings so far, AbbVie Inc. ABBV , UnitedHealth Group Incorporated UNH and Abbott Laboratories ABT have surpassed their respective Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report To read this article on Zacks.com click here. Centene reported total revenues of $48.4 billion, up 19% year over year. |
25684.0 | 2018-02-05 00:00:00 UTC | The Zacks Analyst Blog Highlights: Sanofi, Seattle Genetics, AbbVie, Celgene and Vertex | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-sanofi-seattle-genetics-abbvie-celgene-and-vertex-2018 | nan | nan | For Immediate Release
Chicago, IL - February 5, 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 SanofiSNY , Seattle GeneticsSGEN , AbbVieABBV , CelgeneCELG and VertexVRTX .
Here are highlights from Friday's Analyst Blog:
Biotech Stock Roundup: ABBV, SNY, SGEN and More
Acquisitions once again remained in focus this week with Ablynx agreeing to be acquired by Sanofi in a deal worth approximately €3.9 billion. Seattle Genetics also announced its intention to acquire Cascadian Therapeutics for about $614 million. Meanwhile, earnings results were in focus with AbbVie reporting a strong quarter and providing an upbeat outlook for 2018.
Recap of the Week's Most Important Stories
A Look at Q4 Earnings Results: Companies like Celgene, AbbVie, Biogen and Vertex reported fourth quarter results over the last five trading sessions. Celgene (Read more: Celgene Q4 Earnings & Sales Beat on Solid Revlimid ) and Vertex topped earnings as well as revenue estimates while Biogen topped revenues but missed on earnings (Read more: Biogen Q4 Earnings Miss, Sales Top, 2018 View Upbeat ). Vertex also announced that it has selected two next-generation correctors, VX-659 and VX-445, to move into late-stage development as part of two different triple combination regimens for people with cystic fibrosis ("CF"). Over the last one year, Vertex's shares are up 93.5% compared to the 6.8% gain recorded by the industry it belongs to.
AbbVie's shares jumped following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. Results were driven by the performance of Humira, Imbruvica and Mavyret (Read more: AbbVie Soars on Q4 Results: Key Takeaways from the Earnings Call ). AbbVie is a Zacks Rank #2 (Buy) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Ablynx to be Acquired by Sanofi for €3.9 Billion: Belgium-based biopharma company Ablynx has agreed to be acquired by French pharma giant, Sanofi, at a price of €45 per share in cash, or approximately €3.9 billion. The announcement comes just a few weeks after Novo Nordisk had announced its interest in acquiring Ablynx in a deal valued at approximately €2.6 billion. Ablynx had rejected Novo Nordisk's offer with the company's Board saying that the proposal fundamentally undervalued Ablynx and its growth prospects.
A look at Ablynx's pipeline shows that the company could well be in a position to launch its first product, caplacizumab (anti-vWF; acquired thrombotic thrombocytopenic purpura - aTTP), this year. Caplacizumab is currently under review in the EU while a regulatory application will be filed in the United States in the first half of 2018. The estimated annual market opportunity for aTTP, a life-threatening blood clotting disease, is expected to be about €1.2 billion.
The company also has a broad range of partnerships with the potential to generate more than €10.6 billion in milestones plus royalties. Other pipeline candidates also address significant market opportunities. The company has more than 45 programs in its pipeline and eight Nanobodies in clinical development. The acquisition is expected to close by the end of the second quarter of 2018 (Read more: Sanofi on a Buyout Spree This Month, to Buy Ablynx for $4.8B ).
Bellicum Down on FDA Clinical Hold: Bellicum Pharmaceuticals's shares are down almost 30% following the company's announcement that the FDA has placed a clinical hold on U.S. studies being conducted on BPX-501. The hold was placed after three cases of encephalopathy were deemed as possibly connected to BPX-501. The company said that the cases were complex with certain factors like prior failed transplants, prior history of immunodeficiency, concurrent infection, and administration of rimiducid in combination with other medications.
Bellicum is now waiting to receive a formal notice from the FDA as to the steps needed to be taken for the resumption of the studies. The clinical hold will not impact an ongoing registration study in Europe.
Seattle Genetics to Boost Pipeline with Cascadian Acquisition: Seattle Genetics announced that it will be acquiring Cascadian Therapeutics for $10 per share in cash, or about $614 million. With this acquisition, slated to close in the first quarter of 2018, Seattle will be adding tucatinib to its pipeline. Tucatinib is an investigational oral, small molecule tyrosine kinase inhibitor ("TKI") that is highly selective for HER2, a growth factor receptor that is overexpressed in several cancers, including breast, colorectal, ovarian and gastric. The candidate is currently in a pivotal phase II program for HER2+ metastatic breast cancer and complements Seattle's existing pipeline.
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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. | Here are highlights from Friday's Analyst Blog: Biotech Stock Roundup: ABBV, SNY, SGEN and More Acquisitions once again remained in focus this week with Ablynx agreeing to be acquired by Sanofi in a deal worth approximately €3.9 billion. Stocks recently featured in the blog include SanofiSNY , Seattle GeneticsSGEN , AbbVieABBV , CelgeneCELG and VertexVRTX . Meanwhile, earnings results were in focus with AbbVie reporting a strong quarter and providing an upbeat outlook for 2018. | Recap of the Week's Most Important Stories A Look at Q4 Earnings Results: Companies like Celgene, AbbVie, Biogen and Vertex reported fourth quarter results over the last five trading sessions. Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include SanofiSNY , Seattle GeneticsSGEN , AbbVieABBV , CelgeneCELG and VertexVRTX . | Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include SanofiSNY , Seattle GeneticsSGEN , AbbVieABBV , CelgeneCELG and VertexVRTX . Here are highlights from Friday's Analyst Blog: Biotech Stock Roundup: ABBV, SNY, SGEN and More Acquisitions once again remained in focus this week with Ablynx agreeing to be acquired by Sanofi in a deal worth approximately €3.9 billion. | AbbVie is a Zacks Rank #2 (Buy) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Stocks recently featured in the blog include SanofiSNY , Seattle GeneticsSGEN , AbbVieABBV , CelgeneCELG and VertexVRTX . Here are highlights from Friday's Analyst Blog: Biotech Stock Roundup: ABBV, SNY, SGEN and More Acquisitions once again remained in focus this week with Ablynx agreeing to be acquired by Sanofi in a deal worth approximately €3.9 billion. |
25685.0 | 2018-02-05 00:00:00 UTC | 3 Top Pharmaceutical Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/3-top-pharmaceutical-stocks-buy-now-2018-02-05 | nan | nan | Worldwide pharmaceutical sales were roughly $1 trillion in 2016, according to Statista. That's a massive number that should grow over time as the global population continues to age.
Given the market size and natural tailwind, it shouldn't be surprising that many pharma companies have grown to become truly gigantic. For proof, here's a look at the market cap of 10 of the largest publicly traded pharmaceutical companies in the world:
Data source: Finviz.com.
So which of these big-pharma stocks should investors favor today? Here's why Johnson & Johnson, AbbVie, and Bristol-Myers Squibb are my three favorites.
Johnson & Johnson
While Johnson & Johnson might not be a "pure play" pharmaceutical stock -- slightly more than half of this company's revenue comes from medical device and consumer products sales -- there's no doubt that J&J's future will be powered by its pharmaceutical division. Last year J&J's pharma sales grew by 17%, which is far faster than the 8% and 3% growth rates posted by its medical device and consumer products segments, respectively.
What's behind the big jump in J&J's pharma sales? Investors can largely attribute the gains to the continued success of next-generation drugs . This includes the autoimmune-disease drug Stelara, the anticoagulant Xarelto, and the cancer drugs Imbruvica, Zytiga, and Darzalex. Growth in these top-selling medicines is more than offsetting the declines in J&J's top-selling drug Remicade, which is a legacy cancer drug facing increased competition from biosimilars .
J&J's plan to keep pharma sales heading in the right direction is straightforward. The company boasts a number of trials in place that promise to expand the labeling for many of the fast-growing drugs listed above. The recent acquisition of Actelion also added a few potential blockbusters to the company's lineup and should provide needle-moving revenue. Meanwhile, J&J's vast pipeline and broad list of partnerships promise to introduce new blockbuster drugs to its portfolio.
In total, J&J boasts a strong product lineup that is poised to grow rapidly over time. Combining this with the company's knack for making tuck-in acquisitions, improving margins, and buying back stock, Wall Street projects that overall profit growth will exceed 7% annually over the long term. That's not too shabby for an established industry giant that offers up a well-covered dividend yield of more than 2%.
AbbVie
AbbVie's long-term success is attributable to a single name: Humira. This anti-inflammatory drug has powered the company's top- and bottom-line growth for years and is currently ranked as the best-selling drug in the world . In 2017 Humira hauled in about $18 billion in total sales and accounted for more than 60% of AbbVie's revenue. As amazing as that number is, Humira is still poised to post substantial growth over the coming years.
There is a downside to having such a dominant drug, though: What happens to AbbVie when Humira finally loses patent protection?
AbbVie's management team has been pondering that question for years. Thankfully, CEO Rick Gonzalez recently shared his company's long-term growth plan with investors at the J.P. Morgan Healthcare Conference .
So what is the plan? First, the company will wheel and deal to ensure that Humira pumps out revenue for as long as possible. Next, AbbVie plans to emphasize growth in its other top-selling drugs -- namely the cancer drug Imbruvica and the hepatitis C drug Mavyret -- as much as possible. Finally, the company boasts a number of pipeline drugs that hold great promise. This includes a lung cancer drug called Rova-T and an endometriosis drug called elagolix, both of which could turn into blockbusters.
Gonzalez predicted that, all told, AbbVie's non-Humira sales will eclipse $35 billion by 2025. For context, AbbVie's non-Humira sales in 2017 were about $13 billion. If achieved, that number should be big enough to offset the eventual Humira decline.
Beyond revenue growth, management also sees ample room for profit enhancement through margin expansion. The company's operating margin is "only" about 38% right now. Management believes it can ultimately bring that number up to 50% by 2020.
When added together, Wall Street believes that this one-two punch will drive 16% annualized profit growth over the next five years. That makes AbbVie one of the fastest-growing big-pharma companies in the world.
Turning to the dividend, AbbVie currently offers up a yield of 2.4% and boasts a long history of passing along increases to shareholders. With profits set to rise, I think investors can expect more of the same.
Bristol-Myers Squibb
Like many of its big-pharma brethren, Bristol-Myers Squibb recently muddled through a difficult period when it saw several top-selling drugs lose patent protection. Thankfully, the massive success of two recently launched megablockbuster drugs is more than offsetting those losses.
The first drug driving the turnaround is a blood thinner called Eliquis (which is being commercialized with the help of Pfizer). Eliquis is a best-of-breed anticoagulant that is wresting market share away from the legacy drug warfarin. It is also more than holding its own against J&J's next-generation drug Xarelto. Total Eliquis sales should come in around $5 billion for 2017, and still look to have plenty of room to run.
BMS's other wonder drug is Opdivo, an approved treatment for 11 different types of cancer. Opdivo is also flying off the shelves and, like Eliquis, should pull in nearly $5 billion in total sales in 2017. That's exciting, but management believes that Opdivo also holds promise to treat lung, renal-cell, gastric, and liver cancer. Each of these potential label-expansion claims could add another $1 billion to the drug's peak sales potential.
While Eliquis and Opdivo are clearly the stars of the show, BMS also owns a number of other fast-growing drugs that are driving financial gains. These include the rheumatoid arthritis drug Orencia and the cancer drugs Sprycel, Yervoy, and Empliciti. Combined, these drugs contribute another $5 billion or so to the company's top line, and are growing by double digits.
All told, market-watchers expect that these drugs will power earnings growth of more than 10% annually over the next five years. BMS's dividend yield of 2.5% looks like icing on the cake.
The Foolish bottom line
The aging of the baby-boomer generation should drive steady demand for prescription drugs in the years ahead. That's a great tailwind for drugmakers in general, but the three companies discussed above look particularly well-positioned to profit.
If you're a healthcare investor who likes to buy and hold great companies, I think all three of these big-pharma giants are excellent choices.
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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. | Here's why Johnson & Johnson, AbbVie, and Bristol-Myers Squibb are my three favorites. AbbVie AbbVie's long-term success is attributable to a single name: Humira. In 2017 Humira hauled in about $18 billion in total sales and accounted for more than 60% of AbbVie's revenue. | Here's why Johnson & Johnson, AbbVie, and Bristol-Myers Squibb are my three favorites. AbbVie AbbVie's long-term success is attributable to a single name: Humira. In 2017 Humira hauled in about $18 billion in total sales and accounted for more than 60% of AbbVie's revenue. | Next, AbbVie plans to emphasize growth in its other top-selling drugs -- namely the cancer drug Imbruvica and the hepatitis C drug Mavyret -- as much as possible. Here's why Johnson & Johnson, AbbVie, and Bristol-Myers Squibb are my three favorites. AbbVie AbbVie's long-term success is attributable to a single name: Humira. | AbbVie AbbVie's long-term success is attributable to a single name: Humira. In 2017 Humira hauled in about $18 billion in total sales and accounted for more than 60% of AbbVie's revenue. Next, AbbVie plans to emphasize growth in its other top-selling drugs -- namely the cancer drug Imbruvica and the hepatitis C drug Mavyret -- as much as possible. |
25686.0 | 2018-02-05 00:00:00 UTC | Bristol-Myers (BMY) Beats on Q4 Earnings, Eliquis Impresses | ABBV | https://www.nasdaq.com/articles/bristol-myers-bmy-beats-on-q4-earnings-eliquis-impresses-2018-02-05 | nan | nan | Bristol-Myers Squibb Company 's BMY fourth-quarter 2017 earnings of 68 cents per share beat the Zacks Consensus Estimate of 67 cents and came ahead of the year-ago quarter earnings of 63 cents.
Moreover, total revenues of $5.45 billion surpassed the Zacks Consensus Estimate of $5.31 billion and increased from $5.24 billion recorded in the year-ago period. Strong sales of Opdivo and Eliquis contributed to the top line in the reported quarter.
Shares of the company were up almost 4% in pre-market trading , presumably on better-than expected earnings. Bristol-Myers' shares have increased 24.4% in the past year, which compares favorably with the industry 's increase of 19%.
Quarterly Details
Revenues were up 2% year over year when adjusted for foreign exchange impact. Revenues increased 7% to $2.9 billion in the United States and 1% outside the country. Ex-U.S. revenues were down 3% when adjusted for foreign exchange impact.
Leukemia drug Sprycel raked in sales of $527 million, up 7% year over year. In November 2017, the FDA approved a label expansion for the drug to include treatment of pediatric patients with Ph+ chronic myeloid leukemia in chronic phase.
Rheumatoid arthritis drug, Orencia, was up 6% in fourth-quarter 2017 to $662 million. Melanoma drug, Yervoy contributed $269 million to the top line during the reported quarter, up 2%. In January 2018, a label expansion of the drug in pediatric patients with advanced melanoma was approved in Europe.
Opdivo, which is approved for multiple cancer indications, generated revenues of $1.36 billion, up 4% from the year-ago period. The drug received approval for intravenous administration in melanoma patients as adjuvant treatment.
However, the performance of key drugs in the Virology unit continues to disappoint. Sales of Baraclude declined 21% to $233 million. The Reyataz and Sustiva franchises deteriorated 31% and 29% year over year to $143 million and $174 million, respectively.
Sales of Eliquis were $1.36 billion during the reported quarter, up 44% year over year. Multiple myeloma drug, Empliciti recorded sales of $63 million, up 34% year over year.
Research and development (R&D) expenses in the quarter increased 37% to $1.9 billion mainly due to a charge of $377 million related to license and asset acquisition, while marketing, selling and administrative expenses declined 11% to $1.3 billion.
Gross margin was 69.3% in the quarter compared with 73.6% in the year-ago quarter due to change in product mix.
In December 2017, Bristol-Myers and privately-held TARIS Biomedical LLC announced a clinical collaboration to evaluate the combination of Bristol-Myers' Opdivo and TARIS' investigational product, TAR-200, in patients with muscle invasive bladder cancer. Moreover, Bristol-Myers also entered into an agreement with Japan based Ono Pharmaceutical in the same months. The agreement grants Bristol-Myers rights to develop and commercialize Ono's selective Prostaglandin E2 receptor 4 antagonist, ONO-4578.
2017 Performance
Product sales increased 8.8% to $19.25 billion, primarily driven by strong sales of Opdico following several line extensions. Opdivo sales rose 31% to $4.95 billion. Eliquis sales increased 46% to $4.87 billion. Adjusted earnings per share for the full year came in at $3.01.
Pipeline Update
In February 2018, Bristol Myers announced data from a phase III study, Checkmate -227, which showed superior progression-free survival in first-line non-small cell lung cancer ("NSCLC") treated with Opdivo - Yervoy combination compared to chemotherapy. Moreover in January 2018, Bristol-Myers announced positive data from Phase II CheckMate -142 study evaluating combination of Opdivo and Yervoy in patients with DNA mismatch repair deficient (dMMR) or microsatellite instability-high (MSI-H) metastatic colorectal cancer (mCRC).
In December 2017, the FDA lifted partial clinical hold from phase I CA209 -039 study and phase II CA204142 study, evaluating Opdivo combination regimens in relapsed or refractory multiple myeloma.
In November 2017, a phase III study, CheckMate -078, was stopped early as Opdivo achieved superior overall survival in previously-treated patients with NSCLC as compared to docetaxel.
2018 Earnings Guidance
Bristol-Myers provided its adjusted earnings expectations for 2018. The company projects earnings in the range of $3.15 to $3.30 per share. The Zacks Consensus Estimate for earnings is pegged at $3.21. The company expects revenues to increase in low- to mid-single digits.
Our Take
Bristol-Myers beat earnings expectations, primarily on robust sales of drugs like Opdivo, Eliquis and Yervoy in the quarter. The 2018 guidance was also encouraging. Meanwhile, we are positive on Bristol-Myers' efforts to develop its pipeline, especially Opdivo. Several label expansion applications for Opdivo are under review in the United States and Europe. Potential approval will the prospects of these drugs.
Bristol-Myers Squibb Company Price, Consensus and EPS Surprise
Bristol-Myers Squibb Company Price, Consensus and EPS Surprise | Bristol-Myers Squibb Company Quote
Bristol-Myers carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Some better-ranked companies in the large-cap pharma industry are AbbVie Inc. ABBV , Pfizer Inc. PFE and H Lundbeck A/S HLUYY , each carrying a Zacks Rank #2 (Buy).
Shares of AbbVie have gained 89.9% in the past year while earnings estimates for 2018 have gone up 9.9% over the past 30 days.
Shares of Pfizer have returned 13.6% in the past year while earnings estimates for 2018 have gone up 6% over the past 30 days.
Shares of H Lundbeck have gained 14.5% in the past year while earnings estimates for 2018 have gone up 13% 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. | Some better-ranked companies in the large-cap pharma industry are AbbVie Inc. ABBV , Pfizer Inc. PFE and H Lundbeck A/S HLUYY , each carrying a Zacks Rank #2 (Buy). Shares of AbbVie have gained 89.9% in the past year while earnings estimates for 2018 have gone up 9.9% over the past 30 days. 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 H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. | 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 H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked companies in the large-cap pharma industry are AbbVie Inc. ABBV , Pfizer Inc. PFE and H Lundbeck A/S HLUYY , each carrying a Zacks Rank #2 (Buy). Shares of AbbVie have gained 89.9% in the past year while earnings estimates for 2018 have gone up 9.9% over the past 30 days. | 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 H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked companies in the large-cap pharma industry are AbbVie Inc. ABBV , Pfizer Inc. PFE and H Lundbeck A/S HLUYY , each carrying a Zacks Rank #2 (Buy). Shares of AbbVie have gained 89.9% in the past year while earnings estimates for 2018 have gone up 9.9% over the past 30 days. | Some better-ranked companies in the large-cap pharma industry are AbbVie Inc. ABBV , Pfizer Inc. PFE and H Lundbeck A/S HLUYY , each carrying a Zacks Rank #2 (Buy). Shares of AbbVie have gained 89.9% in the past year while earnings estimates for 2018 have gone up 9.9% over the past 30 days. 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 H Lundbeck A/S (HLUYY): Free Stock Analysis Report To read this article on Zacks.com click here. |
25687.0 | 2018-02-04 00:00:00 UTC | 3 Headwinds in Q4 Earnings Results That Make Merck a Mediocre Stock | ABBV | https://www.nasdaq.com/articles/3-headwinds-q4-earnings-results-make-merck-mediocre-stock-2018-02-04 | nan | nan | Most of the headlines reporting Merck 's (NYSE: MRK) fourth-quarter and full-year 2017 results focused on the company's beating earnings estimates. Merck did indeed top estimates, announcing Q4 adjusted earnings per share of $0.98 -- well above the consensus analyst estimate of $0.94.
Despite this earnings beat, though, not everything in the drugmaker's fourth-quarter update was so rosy. Merck reported revenue in the period of $10.4 billion, up 3% from the fourth quarter of 2016. Even though this growth was better than the revenue decline posted in the third quarter of 2017 , it was below what analysts expected.
The more significant story, in my view, relates to what was behind Merck's weak sales growth. Here are three headwinds identified in the company's fourth-quarter earnings results that make Merck a mediocre stock right now.
1. Cardiovascular collapse
Merck's biggest problem is a collapse in sales for its cardiovascular drugs. Sales for Zetia plunged 44% year over year in Q4 to $323 million. Vycorin's fourth-quarter results weren't much better, with a drop of 38% from the prior-year period to $186 million.
There's no rebound in sight. Both of these drugs have lost exclusivity and face competition from generic versions. For the full year 2017, Merck saw a $1.6 billion decline in combined sales from Zetia and Vytorin. It's not easy making up for that kind of revenue drop.
2. Pricing pressure for diabetes drugs
Merck's diabetes franchise is its second biggest moneymaker, behind only its vaccines business. Diabetes drugs Januvia and Janumet combined for sales totaling nearly $5.9 billion in 2017. The issue for Merck, however, is that sales for the two drugs fell last year from their 2016 levels.
There was some good news during the fourth quarter. Sales for both Januvia and Janumet increased slightly above the prior-year period, thanks to volume growth. But Merck continues to face significant pricing pressure for both drugs. Newer SGLT2 inhibitors could take away market share from Januvia and Janumet in 2018 and beyond.
3. Challenges for vaccines
Merck claims five vaccines that combined for sales of more than $6.1 billion in 2017. The good news is that was around 6% higher than total vaccine sales in 2016. The bad news is that Merck faces several challenges that showed up in its fourth-quarter results.
Sales for Merck's most successful vaccine, Gardasil, sank 26% year over year in the fourth quarter. The company had to borrow doses of the HPV vaccine from the U.S. Centers for Disease Control and Prevention (CDC) in the third quarter as a result of a cyber-attack that affected Merck's production capacity. These borrowed doses were partially replenished in the fourth quarter.
The aftermath of the cyber-attack is only temporary, but Merck faces a longer-term challenge. Sales for shingles vaccine Zostavax plunged 45% in the fourth quarter. GlaxoSmithKline won FDA approval in October for its shingles vaccine Shingrix. Zostavax is expected to lose significant market share to Shingrix over the next few years.
Looking ahead
Merck's best hope at overcoming these headwinds is continued success for Keytruda. The drug generated revenue of $3.8 billion in 2017. Market research firm EvaluatePharma projects that Keytruda will rake in $9.5 billion by 2022, making it the No. 3 best-selling cancer drug in the world .
The pharma company could also get some help from its pipeline. Januvia and Janumet face competition from SGLT2-inhibiting diabetes drugs, but Merck and partner Pfizer now have their own SGLT2 inhibitor. Steglatro (ertugliflozin) won FDA approval in December as a monotherapy. Combinations of ertugliflozin with Janumet and generic metformin also won approval and are being marketed under the brand names Steglujan and Segluromet, respectively.
On the other hand, Merck seems likely to encounter additional headwinds that weren't apparent from its fourth-quarter results. For example, sales for hepatitis C virus (HCV) drug Zepatier increased in Q4. The HCV drug brought in nearly $1.7 billion for the full 2017 year. However, newer HCV drugs from AbbVie and Gilead Sciences will almost certainly cause Zepatier's sales to fall drastically in 2018.
Keytruda is and will continue to be a huge winner, but it isn't enough to overcome all of Merck's headwinds. The bottom line is that Merck is a mediocre stock -- neither terribly bad nor very good. I think investors can easily find better alternatives.
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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, newer HCV drugs from AbbVie and Gilead Sciences will almost certainly cause Zepatier's sales to fall drastically in 2018. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. Most of the headlines reporting Merck 's (NYSE: MRK) fourth-quarter and full-year 2017 results focused on the company's beating earnings estimates. | However, newer HCV drugs from AbbVie and Gilead Sciences will almost certainly cause Zepatier's sales to fall drastically in 2018. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. Here are three headwinds identified in the company's fourth-quarter earnings results that make Merck a mediocre stock right now. | However, newer HCV drugs from AbbVie and Gilead Sciences will almost certainly cause Zepatier's sales to fall drastically in 2018. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. Here are three headwinds identified in the company's fourth-quarter earnings results that make Merck a mediocre stock right now. | However, newer HCV drugs from AbbVie and Gilead Sciences will almost certainly cause Zepatier's sales to fall drastically in 2018. *Stock Advisor returns as of January 2, 2018 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. Most of the headlines reporting Merck 's (NYSE: MRK) fourth-quarter and full-year 2017 results focused on the company's beating earnings estimates. |
25688.0 | 2018-02-04 00:00:00 UTC | What to Expect With Gilead Sciences' Q4 Results | ABBV | https://www.nasdaq.com/articles/what-expect-gilead-sciences-q4-results-2018-02-04 | nan | nan | It's been a familiar story for Gilead Sciences (NASDAQ: GILD) every time quarterly results roll around. The biotech reports solid growth for its HIV franchise. Its cash stockpile continues to get bigger and bigger. But slumping hepatitis C virus (HCV) sales pull down overall revenue and earnings.
Gilead will announce its fourth-quarter and full-year 2017 results on Feb. 6. Will there finally be a different story line? Here's what to expect when the biotech provides its fourth-quarter update.
The biggest question
Will HCV sales stabilize? That's the biggest question looming over Gilead as its fourth-quarter earnings announcement approaches. In November, Gilead CEO John Milligan said he thought the launch of AbbVie 's (NYSE: ABBV) pan-genotypic HCV drug Mavyret set the stage "for smoothness in HCV sales for the future." Milligan even predicted that 2018 could be the "beginning of a growth phase" for Gilead.
There definitely are reasons to doubt whether the scenario Milligan envisioned materialized in the fourth quarter, though. He acknowledged that the new competition from Mavyret could hurt Gilead in the fourth quarter and into 2018. AbbVie set a list price for Mavyret well below the list price of Gilead's Epclusa. While Gilead's discounts and rebates bring the two drugs roughly in line with respect to pricing, the emergence of a formidable rival is more likely to hurt over the short run than it is to help.
Still, there is at least one sign that the fourth quarter won't be terribly bad for Gilead's HCV franchise. AbbVie reported fourth-quarter results on Jan. 26. The company's two HCV drugs, Mavyret and Viekira, combined for sales of $510 million, $214 million of which were made in the United States. That U.S. result is lower than expected, which could bode well for Gilead's HCV performance in the fourth quarter.
However, the most significant factor causing Gilead's HCV sales to drop hasn't been competition -- it's been lower patient starts. Although Gilead reported better-than-expected patient starts in the second quarter of 2017 , the trend line has continued to point downward. I doubt the situation will change dramatically in the fourth quarter, which would mean another update with declining HCV sales.
The good news
While HCV won't be a bright spot, Gilead will almost certainly have good news to report with its HIV franchise. Genvoya should keep rocking along. The HIV drug raked in $988 million in the third quarter, more than doubling the prior-year period's sales level. Genvoya should finish 2017 with well over $3.6 billion in sales for the year and probably more than $1 billion in the fourth quarter.
There should also be plenty to like with Gilead's other TAF-based drugs, Descovey and Odefsey. Although these two drugs aren't superstars like Genvoya, they combined for sales of $612 million in the third quarter. That reflected year-over-year growth of 217%. Continued strong international adoption of these drugs should bring Gilead more good news in the fourth quarter.
Gilead's cash position grew throughout 2017. But could the Kite Pharma acquisition make a dent in the biotech's cash stockpile in the fourth quarter? Probably not by much. Let's do the math.
At the end of the third quarter, Gilead had $41.4 billion of cash, cash equivalents, and marketable securities. The company closed the $11.2 billion Kite acquisition in early October. But Gilead financed the deal with $3 billion in senior unsecured notes and a $6 billion term loan facility credit agreement. That means the biotech used only roughly $2 billion from its cash stockpile on the Kite acquisition.
If Gilead generates close to $2 billion in operating cash flow during the fourth quarter, which seems attainable, its cash position shouldn't change too much in the fourth quarter even after buying Kite. And that means the big biotech will still have ample financial flexibility to make further acquisitions.
Projections -- good and bad
What does Wall Street expect from Gilead in the fourth quarter? The most optimistic projection is for revenue of $6.33 billion and earnings per share (EPS) of $2. The most pessimistic projection is for revenue of $5.05 billion and EPS of $1.29. Consensus estimates are roughly in the middle of those extremes -- revenue of $5.73 billion and EPS of $1.67.
If the consensus estimates are close to accurate, it would mean that Gilead yet again will report a year-over-year decline in revenue and earnings. And it's possible that the results could be worse. In its third-quarter update, Gilead projected full-year 2017 net product sales between $24.5 billion and $25.5 billion. The midpoint of that range translates to fourth-quarter revenue of around $5 billion -- close to the pessimistic analyst projection.
The best bet is that it will be the same old story for Gilead when it announces fourth-quarter results. But with potential approval on the way soon for bictegravir/F/TAF, which could be the most powerful HIV drug ever, along with a promising pipeline and a new leadership role in cell therapy, the plot could get better for Gilead in the future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In November, Gilead CEO John Milligan said he thought the launch of AbbVie 's (NYSE: ABBV) pan-genotypic HCV drug Mavyret set the stage "for smoothness in HCV sales for the future." AbbVie set a list price for Mavyret well below the list price of Gilead's Epclusa. AbbVie reported fourth-quarter results on Jan. 26. | AbbVie set a list price for Mavyret well below the list price of Gilead's Epclusa. In November, Gilead CEO John Milligan said he thought the launch of AbbVie 's (NYSE: ABBV) pan-genotypic HCV drug Mavyret set the stage "for smoothness in HCV sales for the future." AbbVie reported fourth-quarter results on Jan. 26. | In November, Gilead CEO John Milligan said he thought the launch of AbbVie 's (NYSE: ABBV) pan-genotypic HCV drug Mavyret set the stage "for smoothness in HCV sales for the future." AbbVie set a list price for Mavyret well below the list price of Gilead's Epclusa. AbbVie reported fourth-quarter results on Jan. 26. | AbbVie reported fourth-quarter results on Jan. 26. In November, Gilead CEO John Milligan said he thought the launch of AbbVie 's (NYSE: ABBV) pan-genotypic HCV drug Mavyret set the stage "for smoothness in HCV sales for the future." AbbVie set a list price for Mavyret well below the list price of Gilead's Epclusa. |
25689.0 | 2018-02-03 00:00:00 UTC | 3 Top Orphan-Drug Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/3-top-orphan-drug-stocks-buy-now-2018-02-03 | nan | nan | Since 1983, the U.S. Food and Drug Administration has granted orphan-drug designation to over 3,500 drugs. This designation provides incentives to companies developing drugs and biologics for rare diseases and conditions, with "rare" generally meaning a disease affecting fewer than 200,000 patients in the United States. Of the drugs receiving the orphan-drug designation, more than 500 have gone on to win approval.
Biopharmaceutical companies are attracted to the orphan-drug market, because it can be very lucrative. Around 30 million Americans suffer from 7,000 or so rare diseases. Market research firm EvaluatePharma projects that worldwide orphan-drug sales will top $200 billion by 2022.
But what are the top orphan-drug stocks to buy right now? Here's why I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Vertex Pharmaceuticals (NASDAQ: VRTX) at the top of the list.
AbbVie
AbbVie claims one of the current top-selling orphan drugs -- Imbruvica. The drug won orphan drug designation for several indications, including chronic lymphocytic leukemia (CLL), mantle cell lymphoma, chronic graft-versus-host disease, and Waldenstrom's macroglobulinemia. In 2017, Imbruvica generated sales for AbbVie of nearly $2.6 billion. AbbVie's partner on Imbruvica, Johnson & Johnson , made an additional $1.9 billion from the drug.
Another orphan drug in AbbVie's lineup is Venclexta. Like Imbruvica, Venclexta received orphan drug designations for CLL and mantle cell lymphoma plus another for multiple myeloma. At this point, Venclexta is only approved for treating CLL. It's not a big moneymaker for AbbVie yet, but EvaluatePharma projects the drug could generate over $1.8 billion in sales by 2022.
Empliciti also won orphan-drug designation from the FDA in 2011 for multiple myeloma. The drug gained approval in 2015 for the indication. AbbVie's partner, Bristol-Myers Squibb , made over $200 million from Empliciti in 2017. However, AbbVie didn't make enough revenue to provide details for the drug in its full-year 2017 results.
The company does have another promising orphan drug in its pipeline, though. Veliparib is currently being evaluated in late-stage studies for treatment of breast cancer and ovarian cancer. The experimental drug has received orphan-drug designation for five indications.
Although orphan drugs don't account for all of AbbVie's growth potential, they certainly are important for the company's future. And that future is bright indeed. AbbVie's top-selling drug, Humira, continues to enjoy momentum. The company recently reported its fourth-quarter and full-year 2017 results , wowing investors with its projected 2018 adjusted earnings-per-share growth of 32%.
Celgene
Celgene's Revlimid is currently the No. 1 best-selling orphan drug in the world. The FDA has granted orphan-drug designation to Revlimid for eight different rare diseases, three of which the drug has already also won approval for -- multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma.
The biotech's other blood cancer blockbuster, Pomalyst, also obtained orphan-drug designation for multiple myeloma and won approval for the indication. Idhifa and Istodax are two other orphan drugs in Celgene's blood cancer franchise, gaining orphan-drug designation and regulatory approval for acute myelogenous leukemia and non-Hodgkin lymphoma, respectively.
Abraxane received a couple of orphan drug designations, one for pancreatic cancer and another for melanoma. However, the melanoma designation was later withdrawn. Abraxane is currently approved for treating three indications -- pancreatic cancer, breast cancer, and non-small-cell lung cancer.
Celgene also has another orphan drug outside the hematology and oncology areas with Otezla. Just a couple of weeks ago, the FDA granted orphan-drug designation to Otezla for treatment of pediatric patients with ulcerative colitis. The drug hasn't won approval for that indication yet, though.
EvaluatePharma projects that Celgene will be the top company in the world in total orphan-drug sales by 2022. Two of its orphan drugs, Revlimid and Pomalyst, are expected to rank in the top 20 for orphan-drug sales.
While Celgene's pipeline includes several promising candidates that could obtain orphan-drug designation, one likely winner already classified as an orphan drug is ozanimod. EvaluatePharma thinks ozanimod could be one of the five biggest new launches of 2018 . However, that potential launch would be in treating relapsing multiple sclerosis, while ozanimod's orphan-drug designations were for pediatric ulcerative colitis and pediatric Crohn's disease.
Celgene stock is a bargain hunter's dream right now, with shares trading at less than 10 times expected earnings. The biotech also expects to grow adjusted earnings per share by 19.5% annually over the next several years.
Vertex Pharmaceuticals
Vertex dominates the cystic fibrosis (CF) market with two approved drugs, Kalydeco and Orkambi. Both drugs have also received orphan-drug designation for CF.
Another one of Vertex's drugs that isn't yet on the market also gained orphan drug designation for CF -- a combination of tezecaftor and ivacaftor (Kalydeco). An FDA approval decision for the combo is expected by Feb. 28, 2018.
The next big step for Vertex is advancing two triple-drug combos into late-stage testing. These late-stage studies should begin in the first half of this year. Assuming all goes well, the drugs should enable Vertex to treat close to 90% of all CF patients.
Vertex also hopes to expand beyond CF. The company's pipeline includes candidates targeting treatment of several genetic diseases such as adrenoleukodystrophy, alpha-1 antitrypsin deficiency, and polycystic kidney disease.
EvaluatePharma projects that Vertex will be No. 12 overall in orphan drug sales by 2022. The biotech should rank fourth, however, excluding orphan drug sales targeting various types of cancer. Orkambi is projected to become the seventh-highest-selling orphan drug within the next five years.
Vertex stock looks expensive, at least on the surface. Shares trade at 55 times expected earnings. However, the biotech could grow earnings by nearly 70% annually over the next five years. Assuming Vertex can achieve this level of growth, the stock's valuation is attractive right now.
Best pick
If you're looking for tremendous growth, Vertex is the best pick of these orphan-drug stocks. On the other hand, if you're more of a value investor, Celgene appears to be the best choice. But I think the best alternative overall is AbbVie.
AbbVie is a bargain, with shares trading at 13 times expected earnings. It also has solid growth prospects, with Wall Street projected annual earnings growth of 17%. Unlike Celgene and Vertex, though, AbbVie is also a great choice for income-seeking investors. The company's dividend currently yields 2.45% -- and AbbVie has a fantastic track record of dividend increases. In my view, AbbVie checks off all the boxes better than any other orphan-drug stock on the market.
10 stocks we like better than AbbVie
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Keith Speights owns shares of AbbVie and Celgene. The Motley Fool owns shares of and recommends Celgene and Johnson & Johnson. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Vertex Pharmaceuticals (NASDAQ: VRTX) at the top of the list. AbbVie AbbVie claims one of the current top-selling orphan drugs -- Imbruvica. In 2017, Imbruvica generated sales for AbbVie of nearly $2.6 billion. | Here's why I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Vertex Pharmaceuticals (NASDAQ: VRTX) at the top of the list. AbbVie AbbVie claims one of the current top-selling orphan drugs -- Imbruvica. In 2017, Imbruvica generated sales for AbbVie of nearly $2.6 billion. | Here's why I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Vertex Pharmaceuticals (NASDAQ: VRTX) at the top of the list. AbbVie AbbVie claims one of the current top-selling orphan drugs -- Imbruvica. In 2017, Imbruvica generated sales for AbbVie of nearly $2.6 billion. | Here's why I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Vertex Pharmaceuticals (NASDAQ: VRTX) at the top of the list. AbbVie AbbVie claims one of the current top-selling orphan drugs -- Imbruvica. In 2017, Imbruvica generated sales for AbbVie of nearly $2.6 billion. |
25690.0 | 2018-02-02 00:00:00 UTC | AstraZeneca (AZN) Beats on Q4 Earnings, Guides for 2018 | ABBV | https://www.nasdaq.com/articles/astrazeneca-azn-beats-on-q4-earnings-guides-for-2018-2018-02-02 | nan | nan | AstraZeneca plcAZN reported fourth-quarter 2017 core earnings of 65 cents per American Depositary Share (ADS), which beat the Zacks Consensus Estimate of 45 cents. Core earnings rose 13% year over year at constant exchange rates (CER). Higher product sales boosted profits in the quarter.
Total revenues rose 2% at CER to $5.78 billion in the reported quarter. Revenues also beat the Zacks Consensus Estimate of $5.59 billion. Revenue growth, however, was partially offset by decrease in externalization revenues.
Meanwhile, product sales rose 3% at CER in the quarter due to better performance of new products, partially offset by lower sales of legacy products.
Key growth platforms (representing 68% of total revenues) were up 12% in the quarter at CER. Among the key growth platforms, Emerging Markets, New Cardiovascular & Metabolic Diseases ("CVMD"), New Oncology and Japan performed well in the quarter.
All growth rates mentioned below are on a year-over-year basis and at CER.
Product Sales Impress
Crestor sales declined 7% to $594 million with sales in Europe down due to the entry of multiple generic versions of the drug in the market. The negative impact is expected to continue in Europe in 2018.
Seroquel XR sales declined 9% to $108 million due to competition from generic launches.
In the quarter, Onglyza sales rose 19% to $180 million driven by growth in emerging markets.
Symbicort sales remained flat in the quarter at $752 million as higher sales in emerging market were offset by lower sales in the United States. U.S. sales declined due to continued pricing pressure from managed-care access within the ICS/LABA class and also competition from other class like LAMA/LABA combination medicines.
Nexium recorded sales of $427 million, down 12%.
Other than Crestor and Seroquel XR, other legacy products that recorded decline in the quarter include Zoladex (down 21% to $187 million), Seloken/Toprol-XL (down 7% to $168 million), Casodex (down 8% to $54 million) and Atacand (down 10% to $73 million).
However, older drugs, which grew in the quarter include Iressa (up 8% to $130 million), Pulmicort (up 26% to $371 million), Faslodex (up 5% to $238 million) and Daliresp/Daxas (up 27% to $53 million).
Among the newer medicines, Lynparza sales rose 58% to $100 million. While sales in the United States gained from the label expansion approval in August for the treatment of second-line ovarian cancer, in Europe, sales were pushed higher by a number of successful launches. Please note that AstraZeneca shares Lynparza's development cost and profits equally with Merck & Co., Inc. MRK .
Brilinta/Brilique sales were $299 million in the reported quarter, up 24% year over year. Brilinta maintained its leadership position in the U.S. branded oral anti-platelet market. In the United States., Europe and China, Brilinta continued to display an impressive performance.
Tagrisso, launched in 2015, recorded sales of $304 million, up 105% year over year. Another new medicine, Movantik/Moventig recorded sales of $30 million in the quarter.
Bevespi, a LAMA/LABA in a pressurized metered dose inhaler launched commercially in the United States in January 2017, recorded sales of $8 million in the quarter, higher than $4 million in the third quarter amid slower-than-anticipated growth in LAMA/LABA class.
PD-L1 inhibitor Imfinzi, launched for second-line bladder cancer in the United States in May 2017, generated sales of $18 million in the fourth quarter. A regulatory application seeking label expansion of Imfinzi to treat an earlier stage of lung cancer was granted priority review by the FDA.
Imfinzi is a key candidate in the company's immuno-oncology pipeline. The candidate is being evaluated for multiple cancers, either alone or in combination with other regimens. In October 2017, AstraZeneca expanded its clinical trial collaboration with Incyte INCY to evaluate the latter's investigational selective IDO1 enzyme inhibitor, epacadostat, in combination with Imfinzi, compared to Imfinzi alone in early lung cancer.
2017 Performance
Product sales declined 5% to $20.15 billion, primarily due to generic competition for Crestor and Seroquel XR and pricing pressure for Symbicort in the United States. European markets witnessed a 7% decline in sales to $4.75 billion. Revenues from Emerging Markets were up 8% to $6.15 billion primarily on the back of strong growth in China (up 15% to $2.96 billion). In Established ROW market, sales were flat at $3.08 billion.
Other Details
AstraZeneca's core gross margin declined 10 basis points (bps) to 79.4%. Core selling, general and administrative (SG&A) expenses rose 5% to $2.18 billion.
In the quarter, core research and development (R&D) expenses declined 4% to $1.46 billion.
2018 Outlook
AstraZeneca provided EPS guidance for 2018, which is expected in the range of $1.65 to $1.75 per ADR. The Zacks Consensus Estimate stands at $1.71 per ADR. The company also expects revenues to grow in low single digit percentage.
Based on the average exchange rates in January 2018, currency movements are expected to favorably impact the top line by a low single-digit percentage but minimally impact core EPS.
Our Take
AstraZeneca's fourth-quarter performance was impressive as it beat estimates for both earnings and sales. It also provided an encouraging outlook for 2018. Revenues improved during 2017 and the company expects the trend to continue in 2018. AstraZeneca announced quite a few positive developments on the regulatory and pipeline front in the past year. Several readouts are expected in 2018. Backed by the positive news flow, in the past year, AstraZeneca's shares have gained 25.9%, comparing favorably with the industry 's growth of 20.9%.
AstraZeneca carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Astrazeneca PLC Price, Consensus and EPS Surprise
Astrazeneca PLC Price, Consensus and EPS Surprise | Astrazeneca PLC Quote
A better-ranked company in the large-cap pharma industry is AbbVie Inc. ABBV , carrying a Zacks Rank #1.
Shares of AbbVie are up 16.4% while earnings estimates for 2018 have gone up 12.7% over the past 30 days.
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Astrazeneca PLC (AZN): 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. | Astrazeneca PLC Price, Consensus and EPS Surprise Astrazeneca PLC Price, Consensus and EPS Surprise | Astrazeneca PLC Quote A better-ranked company in the large-cap pharma industry is AbbVie Inc. ABBV , carrying a Zacks Rank #1. Shares of AbbVie are up 16.4% while earnings estimates for 2018 have gone up 12.7% over the past 30 days. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. | Astrazeneca PLC Price, Consensus and EPS Surprise Astrazeneca PLC Price, Consensus and EPS Surprise | Astrazeneca PLC Quote A better-ranked company in the large-cap pharma industry is AbbVie Inc. ABBV , carrying a Zacks Rank #1. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of AbbVie are up 16.4% while earnings estimates for 2018 have gone up 12.7% over the past 30 days. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. Astrazeneca PLC Price, Consensus and EPS Surprise Astrazeneca PLC Price, Consensus and EPS Surprise | Astrazeneca PLC Quote A better-ranked company in the large-cap pharma industry is AbbVie Inc. ABBV , carrying a Zacks Rank #1. Shares of AbbVie are up 16.4% while earnings estimates for 2018 have gone up 12.7% over the past 30 days. | Astrazeneca PLC Price, Consensus and EPS Surprise Astrazeneca PLC Price, Consensus and EPS Surprise | Astrazeneca PLC Quote A better-ranked company in the large-cap pharma industry is AbbVie Inc. ABBV , carrying a Zacks Rank #1. Shares of AbbVie are up 16.4% while earnings estimates for 2018 have gone up 12.7% over the past 30 days. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. |
25691.0 | 2018-02-02 00:00:00 UTC | 3 Top Biotherapeutics Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/3-top-biotherapeutics-stocks-buy-now-2018-02-02 | nan | nan | There are fewer true biotherapeutics available than you might think. Biotherapeutics, also known as biologics, include any type of medical treatment that is either produced by or involves living cells. In 2017, the U.S. Food and Drug Administration approved 22 biotherapeutics, and that was an increase from the 15 biotherapeutics approved in the previous year.
But many companies are in the process of developing biotherapeutics that could reach the market over the next few years. As of June 2017, there were more than 2,700 biotherapeutics in development targeting treatment of eight major therapeutic categories.
Many of the biotechs developing these drugs are publicly traded, but their stocks are highly speculative because of the inherent risks associated with clinical studies and regulatory approval. However, there are also several of these stocks that appear to be great picks for investors. Here's why I think AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) are top biotherapeutics stocks to buy right now.
AbbVie
There's no more successful biotherapeutic on the market than AbbVie's Humira. In fact, there's no more successful drug of any kind on the market than Humira. Last year, Humira generated sales of $18.4 billion, making it once again the top-selling drug in the world .
Humira will face competition from biosimilars in Europe starting later this year. However, AbbVie expects to fend off potential rivals in the U.S. for several more years, thanks in large part to a deal struck with Amgen last year that delays the U.S. launch of the first FDA-approved Humira biosimilar, Amjevita, until early 2023.
In the meantime, AbbVie is developing another biotherapeutic that could take the baton from Humira. Risankizumab is being evaluated a late-stage clinical study for treatment of psoriasis and in two phase 2 studies targeting treatment of Crohn's disease and psoriatic arthritis. AbbVie also plans to announce data from two pivotal studies of upadacitinib in 2018 and file for regulatory approval. Upadacitinib, however, is a JAK1 inhibitor but not a biotherapeutic drug.
AbbVie also has a lot of activity going on in oncology. While the company's top approved cancer drug, Imbruvica, isn't a biotherapeutic, Empliciti is. In addition, AbbVie's pipeline includes a couple of very promising biotherapeutic cancer treatments. Rova-T is being evaluated in multiple late-stage studies for treatment of non-small cell lung cancer. Depatuxizumab mafodotin -- a name that would be a great tongue twister -- is also in late-stage testing for treating glioblastoma, a common type of brain cancer.
Investors have a lot to like in AbbVie. The stock soared over 54% last year. AbbVie expects solid earnings growth over the next several years, with Humira and Imbruvica leading the way. The company also pays a nice dividend, which currently yields close to 2.5%.
Celgene
Celgene lays claim to the No. 2 drug in the world after Humira: Revlimid. However, the blood cancer drug isn't a biotherapeutic. Neither is Celgene's fast-growing multiple myeloma drug Pomalyst. What about the company's other blockbuster drug, Otezla? Nope.
You have to look to Celgene's pipeline to find biotherapeutics. Luspatercept, which Celgene is developing with Acceleron Pharma , is being evaluated in late-stage studies for treating beta-thalassemia and myelodysplastic syndromes (MDS). If approved, the drug could generate peak annual sales in the ballpark of $2 billion and perhaps even more.
But the biotherapeutics in Celgene's pipeline that are getting the most attention are chimeric antigen receptor T cell (CAR-T) therapies. Celgene licensed commercialization rights to CAR-T therapy JCAR017 for outside of North America and China from Juno Therapeutics (NASDAQ: JUNO) , but decided it wanted the whole enchilada and announced an acquisition of Juno a few weeks ago. JCAR017 is currently in a pivotal phase 2 study. If that study is successful, Celgene could potentially win FDA approval by 2019. The biotech thinks JCAR017 could generate peak annual sales of around $3 billion.
Celgene also has a partnership with bluebird bio (NASDAQ: BLUE) on a couple of CAR-T candidates targeting B-cell maturation antigen (BCMA) -- bb2121 and bb21217. The two biotherapeutics are currently in early-stage clinical studies targeting treatment of multiple myeloma.
Why buy Celgene stock? Value and growth. Celgene trades at less than 10 times expected earnings. That makes the stock one of the most attractively valued biotechs on the market right now. The company also expects to grow adjusted earnings per share by nearly 20% over the next few years. Celgene's great combination of attractive valuation and high growth potential make the stock one that investors don't want to overlook.
Gilead Sciences
Gilead Sciences' product lineup includes a laundry list of blockbusters. Among them are hepatitis C drugs Epclusa, Harvoni, and Sovaldi. Gilead has even more HIV drugs with greater than $1 billion annual sales: Genvoya, Truvada, Atripla, Complera/Eviplera, and Stribild. Two other newer HIV drugs, Descovey and Odefsey, should join the blockbuster club when Gilead reports its full-year 2017 results.
How many of these drugs are biotherapeutics? Nada. Gilead does have an approved biotherapeutic, though, thanks to its acquisition of Kite Pharma. Yescarta became the second CAR-T therapy to win FDA approval in October. Although the ramp-up for the cancer drug is expected to be a slow one, Yescarta has blockbuster potential.
The Kite acquisition also brought a couple of other biotherapeutics into Gilead's pipeline. KITE-585 is an anti-BCMA drug in early-stage testing for treatment of multiple myeloma. KITE-718 is a MAGE A3 T cell receptor (TCR) engineered T-cell therapy being evaluated in an early-stage study for treatment of solid tumors.
Gilead's fortunes for now hinge on its hep C and HIV franchises. The problem for the company is that revenue and earnings have been dragged down by sinking hep C sales. However, this problem has also made Gilead stock cheap. Shares currently trade at 12.5 times expected earnings.
Over the long run, Gilead should become a winner again. The company's CEO, John Milligan, predicted that Gilead could see the "beginning of a growth phase" in 2018 . Gilead's pipeline, particularly its cancer biotherapeutics and promising non-alchoholic steatohepatitis (NASH) drugs, could pay off in a major way over the next few years.
Best pick
I like -- and own -- all three of these biotherapeutics stocks. But my favorite right now is AbbVie. While Celgene is the better bargain, AbbVie is still cheap, with shares trading at 13 times expected earnings. AbbVie is one of an elite group of stocks that are great picks for growth, income, and value investors. I think the stock will continue to be a winner in the future.
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.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018
Keith Speights owns shares of AbbVie, Celgene, and Gilead Sciences. The Motley Fool owns shares of and recommends Bluebird Bio, Celgene, and Gilead Sciences. The Motley Fool recommends Juno Therapeutics. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why I think AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) are top biotherapeutics stocks to buy right now. AbbVie There's no more successful biotherapeutic on the market than AbbVie's Humira. However, AbbVie expects to fend off potential rivals in the U.S. for several more years, thanks in large part to a deal struck with Amgen last year that delays the U.S. launch of the first FDA-approved Humira biosimilar, Amjevita, until early 2023. | Here's why I think AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) are top biotherapeutics stocks to buy right now. AbbVie There's no more successful biotherapeutic on the market than AbbVie's Humira. However, AbbVie expects to fend off potential rivals in the U.S. for several more years, thanks in large part to a deal struck with Amgen last year that delays the U.S. launch of the first FDA-approved Humira biosimilar, Amjevita, until early 2023. | Here's why I think AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) are top biotherapeutics stocks to buy right now. AbbVie There's no more successful biotherapeutic on the market than AbbVie's Humira. However, AbbVie expects to fend off potential rivals in the U.S. for several more years, thanks in large part to a deal struck with Amgen last year that delays the U.S. launch of the first FDA-approved Humira biosimilar, Amjevita, until early 2023. | AbbVie There's no more successful biotherapeutic on the market than AbbVie's Humira. Here's why I think AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) are top biotherapeutics stocks to buy right now. However, AbbVie expects to fend off potential rivals in the U.S. for several more years, thanks in large part to a deal struck with Amgen last year that delays the U.S. launch of the first FDA-approved Humira biosimilar, Amjevita, until early 2023. |
25692.0 | 2018-02-02 00:00:00 UTC | 5 Top Earnings Growth Stocks to Buy in February | ABBV | https://www.nasdaq.com/articles/5-top-earnings-growth-stocks-buy-february-2018-02-02 | nan | nan | Since we have entered the Q4 reporting cycle, looking for stocks with unswerving earnings growth is the highest priority for astute investors. And why not? If the company doesn't make money, it won't last over the long haul. Consider a company's revenues over a given period of time, subtract the cost of production and you have earnings.
This metric is also considered to be the most noteworthy variable in influencing the share price. Better-than-expected earnings performances normally lead to a rally in the share price. However, in addition to actual earnings, expectations of earnings play a significant role in influencing the price of a stock.
Earnings Estimates Shape Share Prices
We have often seen a decline in the stock price despite earnings growth and a rally in the price following an earnings decline. This is largely a result of a company's earnings failing to meet market expectations.
Earnings estimates embody analysts' opinions of factors such as sales growth, product demand, competitive industry environment, profit margins and cost controls. Thus, earnings estimates serve as a valuable tool while taking investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.
As the earnings season picks up pace, investors should be on the lookout for stocks that are ready to make a big move. Hence, it is important for investors to invest in stocks that have historical earnings growth and are also seeing a rise in quarterly and annual earnings estimates.
The Winning Strategy
In order to shortlist stocks that have striking earnings growth and positive estimate revisions, we have added the following parameters:
Zacks Rank equal to 1 (Only Zacks' 'Strong Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.) You can see the complete list of today's Zacks #1 Rank stocks here .
5-Year Historical EPS Growth (%) greater than X-Industry (Stocks that possess strong EPS growth history.)
% Change EPS F(0)/F(-1) greater than or equal to 5 (Companies that witnessed year-over-year earnings growth rate of 5% or more in the last reported fiscal.)
% Change Q1 Estimates over the last 4 weeks greater than zero (Stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks.)
% Change F1 Estimates over the last 1 week greater than zero (Stocks that have seen their annual earnings estimates revised higher in the last 1 week.)
% Change F1 Estimates over the last 4 weeks greater than zero (Stocks that have seen their annual earnings estimates revised higher in the last 4 weeks.)
The above criteria narrowed down the universe of around 7,818 stocks to only 31.
Here are the top five stocks:
Best Buy Co.BBY operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company's estimated growth rate for this year is 13.5%, higher than the industry 's gain of 2.3%. The Zacks Consensus Estimate for its current-year earnings increased 0.5% in the last 60 days.
AbbVieABBV discovers, develops, manufactures and sells pharmaceutical products worldwide. The company's estimated growth rate for this year is 31.9%, higher than the industry 's gain of 9.1%. The Zacks Consensus Estimate for its current-year earnings increased 12.7% in the last 60 days.
NeogenNEOG develops, manufactures, and markets various products for food and animal safety worldwide. The company's estimated growth rate for this year is 27.9%, higher than the industry 's gain of 13.2%. The Zacks Consensus Estimate for its current-year earnings increased 12.2% in the last 60 days.
D.R. HortonDHI operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest and West America. The company's estimated growth rate for this year is 28.8%, higher than the industry 's gain of 16.4%. The Zacks Consensus Estimate for its current-year earnings increased 10.3% in the last 60 days.
State Bank FinancialSTBZ operates as the bank holding company for State Bank and Trust Company that provides various community banking services to individuals and businesses. The company's estimated growth rate for this year is 41.8%, higher than the industry 's gain of 26.9%. The Zacks Consensus Estimate for its current-year earnings increased 12.5% in the last 60 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. | AbbVieABBV discovers, develops, manufactures and sells pharmaceutical products worldwide. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report State Bank Financial Corporation. Earnings estimates embody analysts' opinions of factors such as sales growth, product demand, competitive industry environment, profit margins and cost controls. | AbbVieABBV discovers, develops, manufactures and sells pharmaceutical products worldwide. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report State Bank Financial Corporation. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. | AbbVieABBV discovers, develops, manufactures and sells pharmaceutical products worldwide. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report State Bank Financial Corporation. Earnings Estimates Shape Share Prices We have often seen a decline in the stock price despite earnings growth and a rally in the price following an earnings decline. | AbbVieABBV discovers, develops, manufactures and sells pharmaceutical products worldwide. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report State Bank Financial Corporation. Earnings estimates embody analysts' opinions of factors such as sales growth, product demand, competitive industry environment, profit margins and cost controls. |
25693.0 | 2018-02-02 00:00:00 UTC | Gilead's (GILD) HCV Segment to Decline Further in Q4 Earnings? | ABBV | https://www.nasdaq.com/articles/gileads-gild-hcv-segment-to-decline-further-in-q4-earnings-2018-02-02 | 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.
Apart from blockbuster HCV drugs, Sovaldi and Harvoni and the recently launched Epclusa, primary products at Gilead include Stribild, Viread, Atripla, Complera/Eviplera and Emtriva among others, along with the tenofovir alafenamide ("TAF")-based products Genvoya, Odefsey and Descovy and newly approved HBV drug, Vemlidy.
Gilead had a solid presence in the HCV market. 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 Viekira XR and Merck's MRK Zepatier. Nevertheless, the HCV portfolio received a major boost when Epclusa gained approval in 2016. The FDA also approved Vosevi tablets as a single-tablet regimen ("STR") for the re-treatment of chronic HCV infection in adults in 2017. Sovaldi recently obtained approval in China. The approval of these new drugs will somewhat offset the decline of legacy drugs.
Gilead's stock has gained 13.8% in the last six months compared with the industry's gain of 0.5%.
The company suffered a decline in HCV sales in the third quarter and same is expected in the fourth quarter as well. HCV product sales were $2.2 billion, down from $3.3 billion reported in the year-ago quarter. The downside was mainly attributed to lower sales of Harvoni and Sovaldi across all major markets, partially offset by higher sales of Epclusa (launched in 2016) and sales of Vosevi (approved in the United States and Europe in July 2017.
While patient starts have exceeded expectations in 2017, competition has started to erode Gilead's HCV market share and net pricing. The company saw some impact of this in the third quarter but most of it was due to be experienced in the fourth quarter. Hence, we expect the older HCV products to continue to witness declining sales.
The company expects HCV product sales between $8.5 billion and $9.0 billion in 2017. The Zacks Consensus Estimate for sales of lead HCV drug Sovaldi and Harvoni are $141 million and $614 million, respectively for the fourth quarter.
Hence, the weakness in the HCV franchise will adversely impact Gilead's performance in the fourth quarter. Although Gilead has a mixed track record, with the company beating estimates in three of the last four and missing in one, an earnings beat looks highly unlikely in the fourth quarter given the competitive pressure. (Read more: Will Gilead Disappoint Investors in Q4 Earnings? )
Zacks Rank & Key Pick
Gilead currently carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
A better-ranked stock in the healthcare sector is Exelixis EXEL with a Zacks Rank #1 (Strong Buy).
Exelixis' earnings per share estimates have moved up from 72 cents to 77 cents for 2018 over the last 60 days. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 572.92%.
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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 Viekira XR and Merck's MRK Zepatier. Click to get this free report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Exelixis, Inc. (EXEL): 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 Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Exelixis, Inc. (EXEL): 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 Viekira XR and Merck's MRK Zepatier. 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. | Click to get this free report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Exelixis, Inc. (EXEL): 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 Viekira XR and Merck's MRK Zepatier. Apart from blockbuster HCV drugs, Sovaldi and Harvoni and the recently launched Epclusa, primary products at Gilead include Stribild, Viread, Atripla, Complera/Eviplera and Emtriva among others, along with the tenofovir alafenamide ("TAF")-based products Genvoya, Odefsey and Descovy and newly approved HBV drug, Vemlidy. | Harvoni and Sovaldi have been facing competition from AbbVie's ABBV Viekira Pak and Viekira XR and Merck's MRK Zepatier. Click to get this free report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Exelixis, Inc. (EXEL): 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. |
25694.0 | 2018-02-01 00:00:00 UTC | 5 Best Performing Stocks of January | ABBV | https://www.nasdaq.com/articles/5-best-performing-stocks-january-2018-02-01 | nan | nan | Markets started the New Year on a strong note, posting fresh records on multiple occasions. Newly instituted tax cuts had a beneficial impact on stocks with the Dow breaching the 25,000 and 26,000 mark in the same month. Economic data remained strong even as fourth-quarter earnings promised to be the most bullish in recent times. Meanwhile, the Fed refrained from raising rates but indicated that a hike was more or less certain in March.
January's Performance
For the month of January, the Dow, the S&P 500 and the Nasdaq increased 5.8%, 5.6% and 7.4%, respectively. The passage of the Tax Cuts and Jobs Act of 2017, which permanently slashed corporate tax rates from 35% to 21%, last December contributed to January's gains. Additionally, in its Beige Book, the Fed provided an encouraging outlook about the U.S. economy, which in turn also boosted investor sentiment.
Moreover, during the month, the Senate gave its consent to pass a short-term spending bill that ends the recent government shutdown. Additionally, an upbeat fourth-quarter earnings season, which includes a very strong revenue momentum, an above-average proportion of positive surprises and an unusually positive revisions trend for the current and coming quarters, also contributed to strong market performance.
Benchmarks Breach Multiple Records
Key indexes achieved multiple milestones over last month. On Jan 2, the Nasdaq closed above the 7,000 mark for the first time. On the very next trading day, the S&P 500 moved past 2,700 for the first time. Optimism over strong market performance in 2018 contributed to these gains.
On Jan 4, the Dow touched the psychological level of 25,000 for the first time. This was the blue-chip index's fastest 1,000-point rise since its inception in May 1896. On Jan 9, the S&P 500 gained 3.6 points to close at a record for the sixth straight session. This marks its best start to a year since 1987.
On Jan 17, the Dow finished above 26,000 for the first time. Additionally, both the Dow and S&P 500 posted their best 11-trading day start for the first time in a year since 1987, following which bond yields and the U.S. dollar increased. Benchmarks hit record levels again on Jan 22, after the Senate gave its consent to the bill.
Finally, on Jan 26, all three U.S. benchmarks closed at record levels following better-than-expected earnings. The S&P 500 finished at a record level for 14 trading days, its best such feat in a month since June 1955. The index also posted its best one-day rise since Mar 1, 2017. Additionally, the Dow posted a rise of more than 220 points, while the Nasdaq registered its biggest one-day gain since Jan 2.
BullishDomestic Data
Economic data released during November was largely encouraging in nature. The ISM manufacturing index rose to 59.7% in December and reached its highest settlement in the last two years. Construction increased 0.8% from downwardly revised October figure to its highest level on record. Factory orders surged 1.3% during the month of November. CPI and core-CPI gained 0.1% and 0.3%, respectively, in December.
Additionally, retail sales increased 0.4% in December, increasing for the fourth straight month and ended 2017 on a high. Industrial production for December surged 0.9%, surpassing the consensus estimate of 0.4%.Consumer spending increased 0.4% in October, in line with the consensus estimate for the period. Core PCE Inflation for December came in at 0.2%, higher than the previous month's figure of 0.1%.
However, ISM Services Index for December declined 1.5 points to 55.7%. U.S. trade deficit increased 3.2% in November to settle at $50.5 billion. This is the highest level of deficit since January 2012. Meanwhile, PPI for the month December 2017 decreased 0.1%. This was the index's first decline in 10 months. However, Core PPI shot up 0.2%.
Housing Sector Softens
A certain degree of softness afflicted the housing sector in January. The confidence level among the nation's homebuilders slipped slightly in the first month of 2018 after reaching an 18-year high in December 2017, according to the National Association of Home Builders' (NAHB) Housing Market Index. The January 2018 reading was down two points to 72 from the December level of 74.
Also, housing starts declined by 8.2% in December, the largest percentage drop recorded since November 2016. However, industry watchers believe that the downturn experienced in December is likely to be temporary. Further, housing possibly felt the chill from December's brutally low temperatures. (Read: 5 Amazing Housing Stocks to Buy Ahead of Q4 Earnings )
Meanwhile, existing-home sales slipped 3.6% in December to a seasonally adjusted annual rate of 5.57 million units from a downwardly revised 5.78 million in November after three straight months of strong increases. (Read: 5 Housing Stocks to Soar, Braving Weak December Home Sales )
Also, new home sales came in at 625,000 units for December, lower than the consensus estimate of 684,000. Only pending home sales increased 0.5% over last month after housing supply hit a record low.
Q4 GDP Slips, Growth Stretch Best Since 2009
U.S. GDP increased at a seasonally adjusted annual rate of 2.6% in the final three months of 2017 following gains of more than 3% in the two previous quarters, as per the "advance" estimate released by the Bureau of Economic Analysis. In fact, this marked the economy's strongest stretch of growth since the expansion started in mid-2009.
The economy was boosted by solid consumer spending, which increased at 3.8% over the quarter after a 2.2% gain in the third quarter. Consumer outlays registered its fastest pace of growth in the fourth quarter in almost two years. Companies also ramped up spending in the fourth quarter by 6.8%. Among other bright spots, government spending also increased at a clip of 3%
Job Additions Fall, Unemployment Stays Flat
Nonfarm payrolls additions for the month of December came in at 148,000, lower than the consensus estimate of 190,000. Moreover, the unemployment rate for December remained stagnant at 4.1%, in line with the consensus estimate of 4.1%. The jobless rate has remained at the same level for two consecutive months.
The average hourly earnings for December surged 0.3%, also in line with the consensus estimate. The average workweek for the last month came in at 34.5 hours, remaining constant with the figure for the last month.
Q4 Earnings Reflects All-Round Strength
A slew of earnings results from major banks kicked off the fourth-quarter earnings season. JPMorgan Chase & Co. JPM , Goldman Sachs Group, Inc. GS Bank of America Corporation BAC and U.S. Bancorp USB all posted impressive performances. Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc. HON also posted encouraging earnings numbers.
Total Q4 earnings for the 185 S&P 500 members that have reported results are up 13.3% from the same period last year on 8.2% higher revenues, with 82.2% beating EPS estimates and 80% beating revenue estimates as of Jan 31.
Q4 earnings growth for Energy is the highest of all sectors, with total earnings for the space expected to be up 185.1% from the same period last year on 25.2% higher revenues. Excluding the Energy sector, total Q4 earnings for the rest of the S&P 500 index would be up 9.2%.
Earnings growth is expected to be strong for the Technology sector, with total Q4 earnings for the sector expected to be up 17.4% on 9.5% higher revenues. Finance sector earnings are expected to be up 5.4% on 2.6% year-over-year growth in revenues. (Read: A Very Strong Earnings Picture )
Fed Leaves Rates Unchanged, Hike Likely in March
On Jan 31, the Federal Reserve opted to leave benchmark rates unchanged within the 1.25-1.5% range. Nevertheless, Fed policymakers reckon three rate hikes for this year, setting the stage for an imminent increase in March under Jerome Powell. The two-day policy meeting that concluded yesterday was the last overseen by Janet Yellen. Her post is set to be taken by Powell.
In its two-day Federal Open Market Committee (FOMC) policy statement following the meeting ended Jan 31, the Fed indicated that economic activity has increased at a "solid rate" and will continue to grow at a "moderate pace."
Additionally, per the statement, labor market remains strong, while inflation will likely "move up" in 2018 and will reach the desired 2% rate in the "medium term." The FOMC also said federal funds rate is likely to increase at a "gradual" pace in coming months.
5 Star Performers for January
I ran a screen on Research Wizard for companies with the following parameters:
( Click here to sign up for a free trial to the Research Wizard today ):
Percentage price change over the last 4 weeks greater than or equal to 20%
Forward price-to-earnings ratio (P/E) for the current financial year (F1) less than or equal to 20. This picks out stocks that are good value choices
Expected earnings growth for the current financial year greater than or equal to 20%
Zacks Rank less than or equal to 2: This ascertains stocks that have shown above-average returns over the last 26 years.
(See the performance of Zacks' portfolios and strategies here: About Zacks Performance ).
Here are the top 5 stocks that made it through this screen. Each of these has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
KEMET CorporationKEM , along with its subsidiaries, is a manufacturer and seller of passive electronic components.
Price gain over the last 4 weeks = 27.2%
KEMET's expected earnings growth for the current year is more than 100%. The stock has a P/E (F1) of 13.10x.
OneMain Holdings, Inc.OMF is a consumer financial services holding company.
Price gain over the last 4 weeks = 25.6%
Expected earnings growth for current year = 26.9%
OneMain Holdings has a P/E (F1) of 7.41x.
Ichor Holdings, Ltd.ICHR is engaged in the design, engineering and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment.
Price gain over the last 4 weeks = 24.4%
Expected earnings growth for current year = 45.1%
Ichor Holdings has a P/E (F1) of 8.97x.
Petroleo Brasileiro S.A.PBR or Petrobras S.A. is the largest integrated energy firm in Brazil and one of the largest in Latin America.
Price gain over the last 4 weeks = 24.3%
Expected earnings growth for current year = 70.4%
Petrobras has a P/E (F1) of 10.99x.
AmTrust Financial Services Inc.AFSI is the 15th largest specialty property and casualty (P&C) insurer in the United States, providing insurance coverage for small businesses and products with high volumes.
Price gain over the last 4 weeks = 24.3%
Expected earnings growth for current year = 55.1%
AmTrust Financial Services has a P/E (F1) of 9.18x.
Will Benchmarks Breach more Records in February?
Investors have had little to worry about except the recent specter of rising bond yields. The situation has been exacerbated by growing prospects of a rate hike in March. Higher rate environment and optimism of steady economic growth and higher inflation have weighed on bond prices, sending yields higher.
However, effective signaling on the part of the Fed is likely to result in investors pricing in this decision well before the hike actually takes place. Ultimately, a strong fourth-quarter earnings season and steady economic growth are likely to propel markets toward new milestones in the weeks ahead.
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Intel Corporation (INTC): 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. | Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc. HON also posted encouraging earnings numbers. Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report OneMain Holdings, Inc. (OMF): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report AmTrust Financial Services, Inc. (AFSI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. JPMorgan Chase & Co. JPM , Goldman Sachs Group, Inc. GS Bank of America Corporation BAC and U.S. Bancorp USB all posted impressive performances. | Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report OneMain Holdings, Inc. (OMF): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report AmTrust Financial Services, Inc. (AFSI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc. HON also posted encouraging earnings numbers. (Read: 5 Amazing Housing Stocks to Buy Ahead of Q4 Earnings ) Meanwhile, existing-home sales slipped 3.6% in December to a seasonally adjusted annual rate of 5.57 million units from a downwardly revised 5.78 million in November after three straight months of strong increases. | Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report OneMain Holdings, Inc. (OMF): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report AmTrust Financial Services, Inc. (AFSI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc. HON also posted encouraging earnings numbers. (Read: 5 Amazing Housing Stocks to Buy Ahead of Q4 Earnings ) Meanwhile, existing-home sales slipped 3.6% in December to a seasonally adjusted annual rate of 5.57 million units from a downwardly revised 5.78 million in November after three straight months of strong increases. | Intel Corporation INTC , AbbVie Inc. ABBV and Honeywell International Inc. HON also posted encouraging earnings numbers. Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report OneMain Holdings, Inc. (OMF): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report AmTrust Financial Services, Inc. (AFSI): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. On Jan 2, the Nasdaq closed above the 7,000 mark for the first time. |
25695.0 | 2018-02-01 00:00:00 UTC | Will Gilead (GILD) Disappoint Investors in Q4 Earnings? | ABBV | https://www.nasdaq.com/articles/will-gilead-gild-disappoint-investors-in-q4-earnings-2018-02-01 | nan | nan | Gilead Sciences Inc . GILD , is scheduled to report fourth-quarter results on Feb 6, after the market closes .
Gilead, a leader in the hepatitis C virus ("HCV") space, has a mixed track record, with the company beating estimates in three of the last four and missing in one. Last quarter, the company beat expectations by 8.6%. Overall, the company recorded an average positive earnings surprise of 9.1%.
Gilead Sciences, Inc. Price and EPS Surprise
Gilead Sciences, Inc. Price and EPS Surprise | Gilead Sciences, Inc. Quote
Gilead's stock has rallied 12.8% over a year compared with the industry's gain of 6.0%.
Factors at Play
Concurrent with the third-quarter earnings call, Gilead updated its annual guidance. Gilead expects net product sales in the range of $24.5-$25.5 billion, up from $24.0-$25.5 billion provided earlier. Non-HCV product sales are projected between $16 billion and $16.5 billion (earlier projection: $15.5 billion and $16 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 fourth quarter as well. Genvoya has already become the most prescribed regimen for both treatment-naïve and switch patients since its launch. This should drive the non-HCV product sales. The TAF-based regimens now represent 56% of total Gilead HIV prescription volume following the launch of Genvoya and Odefsey and Descovy in 2016. Strong uptake for Truvada for use in the pre-exposure prophylaxis setting is also expected to boost sales. The Zacks Consensus Estimate for sales of Genvoya is $1058 million. However, Gilead lost exclusivity for Viread in some countries outside the United States which might impact sales.
HCV product sales are projected between $8.5 billion and $9.0 billion (earlier projection: $8.5 billion and $9.5 billion). 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 Inc.'s ABBV Viekira Pak and Viekira XR among others. While patient starts have exceeded expectations in 2017, competition has started to erode Gilead's market share and net pricing. The company saw some impact of this in the third quarter but most of it was due to be experienced in the fourth quarter. The Zacks Consensus Estimate for sales of lead HCV drug Sovaldi and Harvoni are $141 million and $614 million, respectively. The HCV portfolio received a major boost when Epclusa gained approval in 2016. The FDA also approved Vosevi tablets as a single-tablet regimen ("STR") for the re-treatment of chronic HCV infection in adults.
Adjusted R&D expenses and adjusted SG&A expenses are now projected in the range of $3.3-$3.4 billion and $3.3-$3.4 billion, respectively. Adjusted product gross margin is expected in the range of 86-87%. Earnings per share are now projected around $1.02-$1.17 (earlier projection: 86-93 cents).
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.
We expect the management to throw more light on the same during the fourth-quarter's call. Investors are also likely to keep an eye on other pipeline updates.
Earnings Whispers
Our proven model does not conclusively show that Gilead will 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. Unfortunately, that is not the case here, as you will see below.
Zacks ESP : Earnings ESP for Gilead is -1.01%. This is because the Most Accurate estimate is $1.68 while the Zacks Consensus Estimate is pegged at $1.70. 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 #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some health care stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Alexion Pharmaceuticals, Inc. ALXN is scheduled to release fourth-quarter results on Feb 8. The company has an Earnings ESP of +3.45% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Anthera Pharmaceuticals, Inc. ANTH is expected to release fourth-quarter results on Feb 26. The company has an Earnings ESP of +20.47% and a Zacks Rank #2.
Wall Street's Next Amazon
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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Anthera Pharmaceuticals, Inc. (ANTH): 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. | Harvoni and Sovaldi has been facing competition from AbbVie Inc.'s ABBV Viekira Pak and Viekira XR among others. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Anthera Pharmaceuticals, Inc. (ANTH): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead, a leader in the hepatitis C virus ("HCV") space, has a mixed track record, with the company beating estimates in three of the last four and missing in one. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Anthera Pharmaceuticals, Inc. (ANTH): Free Stock Analysis Report To read this article on Zacks.com click here. Harvoni and Sovaldi has been facing competition from AbbVie Inc.'s ABBV Viekira Pak and Viekira XR among others. Gilead Sciences, Inc. Price and EPS Surprise Gilead Sciences, Inc. Price and EPS Surprise | Gilead Sciences, Inc. Quote Gilead's stock has rallied 12.8% over a year compared with the industry's gain of 6.0%. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Anthera Pharmaceuticals, Inc. (ANTH): Free Stock Analysis Report To read this article on Zacks.com click here. Harvoni and Sovaldi has been facing competition from AbbVie Inc.'s ABBV Viekira Pak and Viekira XR among others. Gilead Sciences, Inc. Price and EPS Surprise Gilead Sciences, Inc. Price and EPS Surprise | Gilead Sciences, Inc. Quote Gilead's stock has rallied 12.8% over a year compared with the industry's gain of 6.0%. | Harvoni and Sovaldi has been facing competition from AbbVie Inc.'s ABBV Viekira Pak and Viekira XR among others. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Anthera Pharmaceuticals, Inc. (ANTH): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company beat expectations by 8.6%. |
25696.0 | 2018-02-01 00:00:00 UTC | Biotech Stock Roundup: AbbVie 4Q Results Impress, Ablynx to be Acquired by Sanofi | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-abbvie-4q-results-impress-ablynx-be-acquired-sanofi-2018-02-01 | nan | nan | Acquisitions once again remained in focus this week with Ablynx agreeing to be acquired by Sanofi SNY in a deal worth approximately €3.9 billion. Seattle Genetics SGEN also announced its intention to acquire Cascadian Therapeutics for about $614 million. Meanwhile, earnings results were in focus with AbbVie ABBV reporting a strong quarter and providing an upbeat outlook for 2018.
Recap of the Week's Most Important Stories
A Look at Q4 Earnings Results: Companies like Celgene CELG , AbbVie, Biogen and Vertex VRTX reported fourth quarter results over the last five trading sessions. Celgene (Read more: Celgene Q4 Earnings & Sales Beat on Solid Revlimid ) and Vertex topped earnings as well as revenue estimates while Biogen topped revenues but missed on earnings (Read more: Biogen Q4 Earnings Miss, Sales Top, 2018 View Upbeat ). Vertex also announced that it has selected two next-generation correctors, VX-659 and VX-445, to move into late-stage development as part of two different triple combination regimens for people with cystic fibrosis ("CF"). Over the last one year, Vertex's shares are up 93.5% compared to the 6.8% gain recorded by the industry it belongs to.
AbbVie's shares jumped following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. Results were driven by the performance of Humira, Imbruvica and Mavyret (Read more: AbbVie Soars on Q4 Results: Key Takeaways from the Earnings Call ). AbbVie is a Zacks Rank #2 (Buy) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Ablynx to be Acquired by Sanofi for €3.9 Billion: Belgium-based biopharma company Ablynx has agreed to be acquired by French pharma giant, Sanofi, at a price of €45 per share in cash, or approximately €3.9 billion. The announcement comes just a few weeks after Novo Nordisk had announced its interest in acquiring Ablynx in a deal valued at approximately €2.6 billion. Ablynx had rejected Novo Nordisk's offer with the company's Board saying that the proposal fundamentally undervalued Ablynx and its growth prospects.
A look at Ablynx's pipeline shows that the company could well be in a position to launch its first product, caplacizumab (anti-vWF; acquired thrombotic thrombocytopenic purpura - aTTP), this year. Caplacizumab is currently under review in the EU while a regulatory application will be filed in the United States in the first half of 2018. The estimated annual market opportunity for aTTP, a life-threatening blood clotting disease, is expected to be about €1.2 billion. The company also has a broad range of partnerships with the potential to generate more than €10.6 billion in milestones plus royalties. Other pipeline candidates also address significant market opportunities. The company has more than 45 programs in its pipeline and eight Nanobodies in clinical development. The acquisition is expected to close by the end of the second quarter of 2018 (Read more: Sanofi on a Buyout Spree This Month, to Buy Ablynx for $4.8B ).
Bellicum Down on FDA Clinical Hold: Bellicum Pharmaceuticals's shares are down almost 30% following the company's announcement that the FDA has placed a clinical hold on U.S. studies being conducted on BPX-501. The hold was placed after three cases of encephalopathy were deemed as possibly connected to BPX-501. The company said that the cases were complex with certain factors like prior failed transplants, prior history of immunodeficiency, concurrent infection, and administration of rimiducid in combination with other medications.
Bellicum is now waiting to receive a formal notice from the FDA as to the steps needed to be taken for the resumption of the studies. The clinical hold will not impact an ongoing registration study in Europe.
Seattle Genetics to Boost Pipeline with Cascadian Acquisition: Seattle Genetics announced that it will be acquiring Cascadian Therapeutics for $10 per share in cash, or about $614 million. With this acquisition, slated to close in the first quarter of 2018, Seattle will be adding tucatinib to its pipeline. Tucatinib is an investigational oral, small molecule tyrosine kinase inhibitor ("TKI") that is highly selective for HER2, a growth factor receptor that is overexpressed in several cancers, including breast, colorectal, ovarian and gastric. The candidate is currently in a pivotal phase II program for HER2+ metastatic breast cancer and complements Seattle's existing pipeline.
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The Nasdaq Biotechnology Index declined 1.5% over the last five trading sessions. Among major biotech stocks, Alexion declined 4.6% while Gilead GILD gained 3.1%. Over the last six months, Biogen was up 20.1% while Regeneron lost 25.4%.
What's Next in the Biotech World?
Watch out for Amgen's AMGN fourth quarter results which will be out after the market closes today (Read more: Will Amgen Benefit From Growth Drugs in Q4 Earnings? ). Meanwhile, the FDA is expected to issue a decision regarding the label expansion of AMAG Pharmaceuticals's Feraheme on February 2. AMAG is looking to expand the label beyond the current chronic kidney disease ("CKD") indication to include all eligible adult patients with iron deficiency anemia ("IDA").
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, earnings results were in focus with AbbVie ABBV reporting a strong quarter and providing an upbeat outlook for 2018. Recap of the Week's Most Important Stories A Look at Q4 Earnings Results: Companies like Celgene CELG , AbbVie, Biogen and Vertex VRTX reported fourth quarter results over the last five trading sessions. AbbVie's shares jumped following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. | Recap of the Week's Most Important Stories A Look at Q4 Earnings Results: Companies like Celgene CELG , AbbVie, Biogen and Vertex VRTX reported fourth quarter results over the last five trading sessions. Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, earnings results were in focus with AbbVie ABBV reporting a strong quarter and providing an upbeat outlook for 2018. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, earnings results were in focus with AbbVie ABBV reporting a strong quarter and providing an upbeat outlook for 2018. Recap of the Week's Most Important Stories A Look at Q4 Earnings Results: Companies like Celgene CELG , AbbVie, Biogen and Vertex VRTX reported fourth quarter results over the last five trading sessions. | Meanwhile, earnings results were in focus with AbbVie ABBV reporting a strong quarter and providing an upbeat outlook for 2018. Recap of the Week's Most Important Stories A Look at Q4 Earnings Results: Companies like Celgene CELG , AbbVie, Biogen and Vertex VRTX reported fourth quarter results over the last five trading sessions. AbbVie's shares jumped following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018. |
25697.0 | 2018-01-31 00:00:00 UTC | The Zacks Analyst Blog Highlights: Bank of America, Citigroup, AbbVie, 3M, Starbucks and Halliburton | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-bank-of-america-citigroup-abbvie-3m-starbucks-and | nan | nan | For Immediate Release
Chicago, IL - Jan 31, 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 Bank of AmericaBAC , CitigroupC , AbbVieABBV , 3MMMM , StarbucksSBUX and HalliburtonHAL .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Top Analyst Reports for Bank of America, Citigroup and AbbVie
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America, Citigroup and AbbVie. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Buy-rated Bank of America 's shares have outperformed the Zacks Major Regional Banks industry over the last six months, gaining +33.8% vs. +21.7%. This price performance is backed by impressive earnings surprise history as the company surpassed expectations in each of the trailing four quarters.
The company's fourth-quarter 2017 earnings benefited from higher interest income and investment banking fees as well as lower operating expenses. Rising interest rates, increase in loan and deposit balances, and efforts to manage expenses are expected to continue supporting profitability.
The Zacks analyst likes the bank's efforts to streamline and simplify operations, which will support its overall growth. While fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns, gains from the new tax act will aid the bank's financial performance..
(You can read the full research report on Bank of America here >>> ).
Shares of Citigroup have underperformed the Zacks Major Banks industry over the last six months, gaining +16.8% vs +21.7%. However, the company boasts an impressive earnings surprise history. It surpassed expectations for earnings in each of the trailing four quarters.
The fourth-quarter 2017 results were supported by prudent expense management and strong consumer banking. However, fixed income trading income slumped. The Zacks analyst likes the company's restructuring and streamlining efforts, expense management and strategic investments in core business. Along with these factors, lower tax rate will likely support profitability.
Moreover, expansion of wealth management business in Australia will act as a tailwind. Yet, several issues, including litigation burden, are cause for apprehension. Also, in spite of rising rates, margin remains under pressure, due to persistent decline in the company's legacy holdings portfolio.
(You can read the full research report on Citigroup here >>> ).
Buy-rated AbbVie 's shares have gained +100.2% over the last one year, outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +26.6% over the same period. This strong performance was supported by a series of positive developments. These include promising data from several pivotal studies, regulatory nods, including approval for its competitive HCV medicine Mavyret and two approvals for Imbruvica, and settlement of its Humira patent disputes with Amgen.
AbbVie beat estimates for both earnings and sales in the fourth quarter. It also raised its earnings expectations for 2018 based on continued strong operational performance and lower tax rates. 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. Meanwhile, Mavyret's launch has been stronger than expected. However, Viekira's sales continue to be hurt by intensifying competition.
(You can read the full research report on AbbVie here >>> ).
Other noteworthy reports we are featuring today include 3M, Starbucks and Halliburton.
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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. | Stocks recently featured in the blog include Bank of AmericaBAC , CitigroupC , AbbVieABBV , 3MMMM , StarbucksSBUX and HalliburtonHAL . Here are highlights from Tuesday's Analyst Blog: Top Analyst Reports for Bank of America, Citigroup and AbbVie The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America, Citigroup and AbbVie. | Today's Research Daily features new research reports on 16 major stocks, including Bank of America, Citigroup and AbbVie. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Bank of AmericaBAC , CitigroupC , AbbVieABBV , 3MMMM , StarbucksSBUX and HalliburtonHAL . | Today's Research Daily features new research reports on 16 major stocks, including Bank of America, Citigroup and AbbVie. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Bank of AmericaBAC , CitigroupC , AbbVieABBV , 3MMMM , StarbucksSBUX and HalliburtonHAL . | Today's Research Daily features new research reports on 16 major stocks, including Bank of America, Citigroup and AbbVie. Stocks recently featured in the blog include Bank of AmericaBAC , CitigroupC , AbbVieABBV , 3MMMM , StarbucksSBUX and HalliburtonHAL . Here are highlights from Tuesday's Analyst Blog: Top Analyst Reports for Bank of America, Citigroup and AbbVie The Zacks Research Daily presents the best research output of our analyst team. |
25698.0 | 2018-01-31 00:00:00 UTC | Lilly (LLY) Beats on Q4 Earnings, Raises 2018 EPS Guidance | ABBV | https://www.nasdaq.com/articles/lilly-lly-beats-on-q4-earnings-raises-2018-eps-guidance-2018-01-31 | nan | nan | Eli Lilly and CompanyLLY reported fourth-quarter 2017 adjusted earnings per share of $1.14, which beat the Zacks Consensus Estimate of $1.08 per share by 5.6%. Earnings rose 20% from the year-ago quarter backed by higher operating profits.
Revenues Beat
Quarterly revenues of $6.16 billion also beat the Zacks Consensus Estimate of $5.96 billion by 3.4%. Sales grew 7% year over year backed by strong performance of new drugs and favorable currency movement to a lesser extent, partially offset by lower sales of established products like Strattera, Humalog, Cialis and Effient. Lilly's established products portfolio recorded a decline of 6.3% in worldwide revenues.
Volumes rose 4% as strong performance of new products like Trulicity, Taltz, Basaglar, Jardiance and Lartruvo offset decline in sales of established products. Higher realized prices for several drugs also contributed 2% to sales growth in the quarter. Foreign exchange rate also hada favorable impact of 1%.
Segment Revenues
Pharmaceutical revenues rose 9% in the quarter backed by 12% volume growth of the new products.
While U.S. revenues grew 6% to $3.42 billion, ex-U.S. revenues rose 8% to $2.74 billion.
Established products that recorded growth during the quarter include Forteo (up 21% to $513.2 million), Humulin (up 2% to $362.6 million), Cymbalta (up 6% to $192.8 million) and Erbitux (up 10% to $168.9 million). Sales of all other established products declined in the quarter.
Humalog sales declined 5% to $782.2 million due to lower realized prices in the United States. Moreover in December 2017, the FDA approved Sanofi's SNY Admelog, a biosimilar version of Humalog. This approval will certainly increase competition. Alimta sales declined 3% to $525.2 million, reflecting lower demand in ex-U.S. markets due to competitive pressure and loss of exclusivity in certain countries. However, sales of Alimta increased 1% in the United States due to increased volume, partially offset by lower realized prices.
Zyprexa sales declined 1% to $152.2 million due to loss of exclusivity in Japan.Cialis sales declined 12% to $597.4 million hurt by worldwide lower demand.
Strattera sales declined 60% to $98.3 million. Effient sales declined 56% to $62.3 million in the quarter. Both the drugs saw lower demand due to loss of exclusivity.
Among the new products, Trulicity generated revenues of $649 million, up 93% year over year, with U.S. revenues benefiting from growth in the GLP-1 market and market share gains.
Cyramza revenues were $204.8 million, up 16% year over year, backed by strong demand. Cyramza's ex-U.S. revenues increased 15%, benefiting from strong volumes in Japan, partially offset by lower realized prices. U.S. revenues increased 17% driven by increased volume.
Jardiance sales (up 88% to $143.2 million) were driven by increased market share within the growing SGLT2 class in the United States and increased volume outside the United States.
Basaglar recorded revenues of $153.8 million compared with $145.7 million in the previous quarter. Basaglar - Lilly and partner Boehringer Ingelheim's follow-on insulin to Sanofi's blockbuster drug, Lantus - was launched in the United States in mid-December 2016.
Taltz brought in sales of $172.5 million compared with $151.3 million in the previous quarter, reflecting strong uptake. In December 2017, the drug was approved for psoriatic arthritis and launched in the United States. The European Commission also approved the drug last week.
Lartruvo (olaratumab) generated revenues of $59 million in the fourth quarter of 2017 compared with $54.5 million in the previous quarter. Lartruvo was launched in the United States and the EU for soft tissue sarcoma in the fourth quarter of 2016.
Lilly and partner Incyte Corporation's INCY rheumatoid arthritis drug, Olumiant (baricitinib) has been launched in select European countries and in Japan. The drug generated sales of $23 million in the fourth quarter of 2017 compared with $16.2 million in the previous quarter backed by strong launch uptake in Germany.
However, in the United States, Lilly received a complete response letter from the FDA for baricitinib in April for want of additional data. The company has re-submitted the application in late 2017.
Verzenio, which was launched in the Unites States in the fourth quarter of 2017, Generated a sales of $21 million.
Lilly's Elanco Animal Health segment sales declined 6% to $790.9 million due to decrease in food animal revenues (down 8% to $547.4 million). However, companion animal revenues increased 1%, including revenues from the acquisition of Boehringer Ingelheim Vetmedica's U.S. feline, canine and rabies vaccine portfolio (acquired in January 2017) which was offset by competitive pressure and lower demand in the United States.
Gross Margin Down but Operating Income Rises
Adjusted gross margin of 76.5% in the quarter decreased 90 basis points as manufacturing efficiencies were offset by negative product mix and the effect of foreign exchange rates on international inventories sold.
Operating income increased 20% year over year to $1.46 billion. Total operating expenses, as a percent of revenues, declined 340 basis points in the quarter to 52.8%.
2018 EPS Guidance Upped
Lilly raised its previously issued 2018 adjusted earnings outlook. Adjusted earnings per share are now expected in the range of $4.81 to $4.91 compared with $4.60 to $4.70 expected previously, reflecting positive impact of the U.S. tax reform. However, revenues are still expected in the range of $23.0 billion and $23.5 billion.
Gross margin is expected to be approximately 75%, same as previously expected. Adjusted tax rate is expected to be approximately 18% (previously approximately 21.5%).
Marketing, selling and administrative expenses are still expected in the range of $6.1-$6.4 billion, while research and development expenses are projected to be $5.0-$5.2 billion.
Our Take
Lilly's fourth-quarter 2017 results were strong with the company beating estimates on both counts. Meanwhile expectations for a lower tax rate due to new tax laws propelled the company to raise its 2018 earnings outlook.
Shares were up 1.1% in pre-market trading . Lilly's share price has risen 11.7% in the past year compared with an increase of 24.2% for the industry .
Going forward, new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance and Lartruvo are expected to see higher revenues. Lilly is also progressing well with its pipeline. The FDA approval for Taltz's line extension will also boost Lilly's product revenues. In October 2017, Lilly has announced that it is looking to sell or spin-off its Elanco Animal Health business. Potential sale of its underperforming Animal Health segment may help improve margins.
However, Alimta will continue to be impacted by competition. Other headwinds include competition from immuno-oncology agents as well as loss of exclusivity for many drugs in emerging markets.
Eli Lilly and Company Price, Consensus and EPS Surprise
Eli Lilly and Company Price, Consensus and EPS Surprise | Eli Lilly and Company Quote
Zacks Rank & Stock to Consider
Lilly carries a Zacks Rank #3 (Hold). A better-ranked stock in the pharma sector is AbbVie Inc. ABBV , carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
AbbVie's earnings estimates increased from $6.56 to $7.30 for 2018 over the last 30 days. The company came up with a positive surprise in all the trailing four quarters with an average beat of 1.81%. The stock is up 89.7% in the past 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. | A better-ranked stock in the pharma sector is AbbVie Inc. ABBV , carrying a Zacks Rank #2 (Buy). AbbVie's earnings estimates increased from $6.56 to $7.30 for 2018 over the last 30 days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the pharma sector is AbbVie Inc. ABBV , carrying a Zacks Rank #2 (Buy). AbbVie's earnings estimates increased from $6.56 to $7.30 for 2018 over the last 30 days. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock in the pharma sector is AbbVie Inc. ABBV , carrying a Zacks Rank #2 (Buy). AbbVie's earnings estimates increased from $6.56 to $7.30 for 2018 over the last 30 days. | A better-ranked stock in the pharma sector is AbbVie Inc. ABBV , carrying a Zacks Rank #2 (Buy). AbbVie's earnings estimates increased from $6.56 to $7.30 for 2018 over the last 30 days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. |
25699.0 | 2018-01-31 00:00:00 UTC | Vertex Beats Views, Closes In On Cystic Fibrosis Treatments | ABBV | https://www.nasdaq.com/articles/vertex-beats-views-closes-cystic-fibrosis-treatments-2018-01-31 | nan | nan | Vertex Pharmaceuticals ( VRTX ) beat fourth-quarter sales expectations by more than 9% and has selected a pair of cystic fibrosis treatments to send into late-stage testing, the company said late Wednesday.
[ibd-display-video id=3117298 width=50 float=left autostart=true] Vertex reported adjusted income of 61 cents per share on $651.6 million in sales, rising a respective 74% and 42% vs. the year-earlier period. Both metrics beat the consensus for adjusted profit of 58 cents a share on $596 million in sales.
Of its total sales, Vertex brought in $621 million in revenue from cystic fibrosis treatments, growing 37% year over year. Its biggest drug, Orkambi, increased 32% to $365 million and Kalydeco, also known as ivacaftor, tacked on 44% growth to $256 million.
Chief Executive Jeffrey Leiden called 2017 "an outstanding year for Vertex," in a written statement.
"As we look at 2018 and beyond, Vertex's scientific expertise and financial strength position us to advance key pipeline programs in CF, including our triple combination regimens and bring forth potential new medicines in multiple other serious diseases."
In after-hours trading on the stock market today , Vertex popped 3.2% after closing up 0.2%, to 166.87, during the regular session.
90% Of Patients
The triple-pill treatments are expected to treat up to 90% of cystic fibrosis patients, said Jeffrey Chodakewitz, Vertex's executive vice president and chief medical officer. Vertex plans to send combos using the drugs known as VX-659 and VX-445 into late-stage testing this year.
"We look forward to concluding our discussions with regulators and initiating Phase 3 development in the first half of the year, with the goal of bringing a triple regimen to patients as quickly as possible," Chodakewitz said in a written statement.
Excitement has been building surrounding the potential triple-pill, which targets the underlying genetic cause of the disease. In total, Vertex had four potential combinations it was considering.
Vertex has now narrowed that down to two potential combinations. A combination of VX-659, tezacaftor and ivacaftor will begin two Phase 3 trials in the first half of 2018. The two studies will investigate the regimen's effect in two patient groups with different genetic mutations.
IBD'S TAKE:Vertex wasn't always a cystic fibrosis-focused company. In its earliest days, it was focused on hepatitis C until Gilead Sciences launched a massively successful drug called Sovaldi in 2011. How did Vertex escape that crisis? Head to The New America for more.
Pending additional data in the first half of the year, Vertex also plans to send a combination of VX-445 with tezacaftor and a drug called VX-561 into Phase 3 testing as a once-daily treatment in two groups of patients with different genetic mutations.
Vertex selected the treatments based on ongoing studies which show absolute improvements in patients' ability to forcefully expel air for one second. Those treated with VX-659 and VX-445 regimens showed improvements of 13.3 and 13.8 percentage points, respectively, through four weeks of treatment in some cystic fibrosis patients.
Well Tolerated
The triple combinations were generally well tolerated across both studies, Vertex said, with the majority of adverse events mild or moderate in severity. Discontinuation rates due to adverse events were low.
Vertex isn't the only firm seeking to make a triple-regimen to treat cystic fibrosis . AbbVie ( ABBV ) and Galapagos ( GLPG ) have also teamed up to make a triple-pill . But analysts have said the duo is several years behind. Most see Vertex's triple getting approval in the 2019-20 time frame.
In February, Vertex expects to get approval in the U.S. for a regimen of tezacaftor and ivacaftor as a treatment for cystic fibrosis patients ages 12 and older with a specific genetic mutation. European regulators will make their determination in the second half of 2018.
Vertex said it will issue 2018 guidance for cystic fibrosis drug sales after the anticipated U.S. approval for the tezacaftor and ivacaftor regimen on Feb. 28. Analysts expect Vertex to offer an outlook of $2.89 a share in adjusted earnings on $2.73 billion in sales.
Vertex is also planning to move forward with Crispr Therapeutics ( CRSP ) using gene therapy to treat blood diseases known as beta thalassemia and sickle cell disease. Trials are expected to begin this year in Europe and the U.S.
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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 Galapagos ( GLPG ) have also teamed up to make a triple-pill . Vertex Pharmaceuticals ( VRTX ) beat fourth-quarter sales expectations by more than 9% and has selected a pair of cystic fibrosis treatments to send into late-stage testing, the company said late Wednesday. "As we look at 2018 and beyond, Vertex's scientific expertise and financial strength position us to advance key pipeline programs in CF, including our triple combination regimens and bring forth potential new medicines in multiple other serious diseases." | AbbVie ( ABBV ) and Galapagos ( GLPG ) have also teamed up to make a triple-pill . Of its total sales, Vertex brought in $621 million in revenue from cystic fibrosis treatments, growing 37% year over year. 90% Of Patients The triple-pill treatments are expected to treat up to 90% of cystic fibrosis patients, said Jeffrey Chodakewitz, Vertex's executive vice president and chief medical officer. | AbbVie ( ABBV ) and Galapagos ( GLPG ) have also teamed up to make a triple-pill . Of its total sales, Vertex brought in $621 million in revenue from cystic fibrosis treatments, growing 37% year over year. Pending additional data in the first half of the year, Vertex also plans to send a combination of VX-445 with tezacaftor and a drug called VX-561 into Phase 3 testing as a once-daily treatment in two groups of patients with different genetic mutations. | AbbVie ( ABBV ) and Galapagos ( GLPG ) have also teamed up to make a triple-pill . Of its total sales, Vertex brought in $621 million in revenue from cystic fibrosis treatments, growing 37% year over year. Pending additional data in the first half of the year, Vertex also plans to send a combination of VX-445 with tezacaftor and a drug called VX-561 into Phase 3 testing as a once-daily treatment in two groups of patients with different genetic mutations. |
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