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25900.0 | 2017-10-24 00:00:00 UTC | Trust Co Of Vermont Buys DowDuPont Inc, Analog Devices Inc, Salesforce.com Inc, Sells E.I. ... | ABBV | https://www.nasdaq.com/articles/trust-co-vermont-buys-dowdupont-inc-analog-devices-inc-salesforcecom-inc-sells-ei-2017-10 | nan | nan | Trust Co Of Vermont
New Purchases: DWDP , BTI , OKE , SPLV, KLD, ESBA, MFGP, NAC, NAC, BHGE,
Added Positions:VEA, ADI, CRM, MSFT, SBUX, UNP, TXN, APD, COST, HON,
Reduced Positions:GE, INTC, QCOM, XOM, AAPL, SLB, CSCO, EMR, JCI, ACN,
Sold Out:DD, RAI, KKR, PAA, TCAP, AGNC, GFI, PFG, AABA, ACCO,
For the details of TRUST CO OF VERMONT's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TRUST+CO+OF+VERMONT
These are the top 5 holdings of TRUST CO OF VERMONT
Apple Inc ( AAPL ) - 160,216 shares, 2.49% of the total portfolio. Shares reduced by 2.37%
Johnson & Johnson ( JNJ ) - 188,273 shares, 2.46% of the total portfolio. Shares reduced by 1.25%
3M Co ( MMM ) - 104,432 shares, 2.21% of the total portfolio. Shares added by 0.18%
iShares Core S&P Mid-Cap ( IJH ) - 115,460 shares, 2.08% of the total portfolio. Shares added by 0.99%
AbbVie Inc ( ABBV ) - 216,203 shares, 1.93% of the total portfolio. Shares reduced by 0.02%
New Purchase: DowDuPont Inc (DWDP)
Trust Co Of Vermont initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.86. The impact to the portfolio due to this purchase was 0.31%. The holdings were 44,818 shares as of 2017-09-30.
New Purchase: British American Tobacco PLC (BTI)
Trust Co Of Vermont initiated holdings in British American Tobacco PLC. The purchase prices were between $60.8 and $71.55, with an estimated average price of $64.54. The stock is now traded at around $63.26. The impact to the portfolio due to this purchase was 0.04%. The holdings were 6,544 shares as of 2017-09-30.
New Purchase: ONEOK Inc (OKE)
Trust Co Of Vermont initiated holdings in ONEOK Inc. The purchase prices were between $50.36 and $56.88, with an estimated average price of $54.03. The stock is now traded at around $55.94. The impact to the portfolio due to this purchase was 0.04%. The holdings were 6,654 shares as of 2017-09-30.
New Purchase: PowerShares S&P 500 Low Volatility Portfolio (SPLV)
Trust Co Of Vermont initiated holdings in PowerShares S&P 500 Low Volatility Portfolio. The purchase prices were between $44.44 and $45.95, with an estimated average price of $45.32. The stock is now traded at around $46.76. The impact to the portfolio due to this purchase was 0.03%. The holdings were 6,809 shares as of 2017-09-30.
New Purchase: iShares Trust (KLD)
Trust Co Of Vermont initiated holdings in iShares Trust. The purchase prices were between $101.27 and $102.74, with an estimated average price of $102.21. The stock is now traded at around $102.74. The impact to the portfolio due to this purchase was 0.03%. The holdings were 2,506 shares as of 2017-09-30.
New Purchase: Empire State Realty OP LP (ESBA)
Trust Co Of Vermont initiated holdings in Empire State Realty OP LP. The purchase prices were between $19.75 and $21.25, with an estimated average price of $20.43. The stock is now traded at around $20.41. The impact to the portfolio due to this purchase was 0.02%. The holdings were 8,000 shares as of 2017-09-30.
Added: Salesforce.com Inc (CRM)
Trust Co Of Vermont added to the holdings in Salesforce.com Inc by 72.38%. The purchase prices were between $86.1 and $97.71, with an estimated average price of $91.97. The stock is now traded at around $98.66. The impact to the portfolio due to this purchase was 0.07%. The holdings were 18,127 shares as of 2017-09-30.
Added: Analog Devices Inc (ADI)
Trust Co Of Vermont added to the holdings in Analog Devices Inc by 23.28%. The purchase prices were between $76.11 and $86.17, with an estimated average price of $80.64. The stock is now traded at around $90.29. The impact to the portfolio due to this purchase was 0.07%. The holdings were 43,755 shares as of 2017-09-30.
Added: Texas Instruments Inc (TXN)
Trust Co Of Vermont added to the holdings in Texas Instruments Inc by 62.62%. The purchase prices were between $76.41 and $89.65, with an estimated average price of $82.03. The stock is now traded at around $96.44. The impact to the portfolio due to this purchase was 0.05%. The holdings were 15,272 shares as of 2017-09-30.
Added: JM Smucker Co (SJM)
Trust Co Of Vermont added to the holdings in JM Smucker Co by 181.29%. The purchase prices were between $104.24 and $123.18, with an estimated average price of $114.14. The stock is now traded at around $104.42. The impact to the portfolio due to this purchase was 0.03%. The holdings were 3,879 shares as of 2017-09-30.
Added: PowerShares Global Clean Energy Portfolio (PBD)
Trust Co Of Vermont added to the holdings in PowerShares Global Clean Energy Portfolio by 374.53%. The purchase prices were between $11.81 and $12.83, with an estimated average price of $12.26. The stock is now traded at around $12.94. The impact to the portfolio due to this purchase was 0.02%. The holdings were 16,656 shares as of 2017-09-30.
Added: Usana Health Sciences Inc (USNA)
Trust Co Of Vermont added to the holdings in Usana Health Sciences Inc by 482.67%. The purchase prices were between $54.4 and $64.75, with an estimated average price of $59.18. The stock is now traded at around $61.95. The impact to the portfolio due to this purchase was 0.02%. The holdings were 4,708 shares as of 2017-09-30.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Trust Co Of Vermont sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Reynolds American Inc (RAI)
Trust Co Of Vermont sold out the holdings in Reynolds American Inc. The sale prices were between $63.94 and $66.89, with an estimated average price of $65.08.
Sold Out: KKR & Co LP (KKR)
Trust Co Of Vermont sold out the holdings in KKR & Co LP. The sale prices were between $18.03 and $19.99, with an estimated average price of $18.94.
Sold Out: Triangle Capital Corp (TCAP)
Trust Co Of Vermont sold out the holdings in Triangle Capital Corp. The sale prices were between $13 and $17.76, with an estimated average price of $15.13.
Sold Out: Plains All American Pipeline LP (PAA)
Trust Co Of Vermont sold out the holdings in Plains All American Pipeline LP. The sale prices were between $19.01 and $26.85, with an estimated average price of $23.23.
Sold Out: AGNC Investment Corp (AGNC)
Trust Co Of Vermont sold out the holdings in AGNC Investment Corp. The sale prices were between $20.95 and $21.84, with an estimated average price of $21.38.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares added by 0.99% AbbVie Inc ( ABBV ) - 216,203 shares, 1.93% of the total portfolio. Trust Co Of Vermont New Purchases: DWDP , BTI , OKE , SPLV, KLD, ESBA, MFGP, NAC, NAC, BHGE, Added Positions:VEA, ADI, CRM, MSFT, SBUX, UNP, TXN, APD, COST, HON, Reduced Positions:GE, INTC, QCOM, XOM, AAPL, SLB, CSCO, EMR, JCI, ACN, Sold Out:DD, RAI, KKR, PAA, TCAP, AGNC, GFI, PFG, AABA, ACCO, For the details of TRUST CO OF VERMONT's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TRUST+CO+OF+VERMONT These are the top 5 holdings of TRUST CO OF VERMONT Apple Inc ( AAPL ) - 160,216 shares, 2.49% of the total portfolio. Added: PowerShares Global Clean Energy Portfolio (PBD) Trust Co Of Vermont added to the holdings in PowerShares Global Clean Energy Portfolio by 374.53%. | Shares added by 0.99% AbbVie Inc ( ABBV ) - 216,203 shares, 1.93% of the total portfolio. Trust Co Of Vermont New Purchases: DWDP , BTI , OKE , SPLV, KLD, ESBA, MFGP, NAC, NAC, BHGE, Added Positions:VEA, ADI, CRM, MSFT, SBUX, UNP, TXN, APD, COST, HON, Reduced Positions:GE, INTC, QCOM, XOM, AAPL, SLB, CSCO, EMR, JCI, ACN, Sold Out:DD, RAI, KKR, PAA, TCAP, AGNC, GFI, PFG, AABA, ACCO, For the details of TRUST CO OF VERMONT's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TRUST+CO+OF+VERMONT These are the top 5 holdings of TRUST CO OF VERMONT Apple Inc ( AAPL ) - 160,216 shares, 2.49% of the total portfolio. New Purchase: British American Tobacco PLC (BTI) Trust Co Of Vermont initiated holdings in British American Tobacco PLC. | Shares added by 0.99% AbbVie Inc ( ABBV ) - 216,203 shares, 1.93% of the total portfolio. Trust Co Of Vermont New Purchases: DWDP , BTI , OKE , SPLV, KLD, ESBA, MFGP, NAC, NAC, BHGE, Added Positions:VEA, ADI, CRM, MSFT, SBUX, UNP, TXN, APD, COST, HON, Reduced Positions:GE, INTC, QCOM, XOM, AAPL, SLB, CSCO, EMR, JCI, ACN, Sold Out:DD, RAI, KKR, PAA, TCAP, AGNC, GFI, PFG, AABA, ACCO, For the details of TRUST CO OF VERMONT's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TRUST+CO+OF+VERMONT These are the top 5 holdings of TRUST CO OF VERMONT Apple Inc ( AAPL ) - 160,216 shares, 2.49% of the total portfolio. New Purchase: PowerShares S&P 500 Low Volatility Portfolio (SPLV) Trust Co Of Vermont initiated holdings in PowerShares S&P 500 Low Volatility Portfolio. | Shares added by 0.99% AbbVie Inc ( ABBV ) - 216,203 shares, 1.93% of the total portfolio. Shares reduced by 1.25% 3M Co ( MMM ) - 104,432 shares, 2.21% of the total portfolio. Added: Salesforce.com Inc (CRM) Trust Co Of Vermont added to the holdings in Salesforce.com Inc by 72.38%. |
25901.0 | 2017-10-24 00:00:00 UTC | Better Buy: Gilead Sciences, Inc. vs. Amgen | ABBV | https://www.nasdaq.com/articles/better-buy-gilead-sciences-inc-vs-amgen-2017-10-24 | nan | nan | Amgen (NASDAQ: AMGN) and Gilead Sciences (NASDAQ: GILD) are central figures within the biotech landscape. However, these two titans of the industry are both in the process of refreshing their product portfolios at the moment.
This is therefore an opportune time to consider which of these top biotech stocks is the better long-term buy right now. So let's dig in to reveal which of these biotech giants is more deserving of your hard-earned capital.
Amgen: Can this top dog overcome its patent headwinds?
Amgen, like many large-cap biotechs, is attempting to overcome the loss of exclusivity for several key products -- such as the blood-conditioning medicines Neupogen and Epogen -- by ramping up its clinical activities. Keeping with this theme, the biotech has so far rolled out its next-generation cholesterol medicine Repatha and its cardiovascular drug Corlanor, and it has gotten the experimental migraine treatment Aimovig into the regulatory stage of its lifecycle. Amgen is also gearing up to launch its Humira biosimilar, known as Amjevita, in Europe in 2018 and the U.S. in 2023.
Even so, Amgen's top line is still expected to muddle along at a compound annual growth rate of about 2% for the next five years, according to EvaluatePharma. This anemic growth profile stems from Amgen's lack of a true franchise-level drug candidate capable of offsetting these significant patent headwinds and delivering solid levels of growth at the same time.
To fix this core problem, Amgen could tap its massive cash reserves of nearly $40 billion to make a splash on the merger-and-acquisition scene, but management has yet to show any signs of going this route. Amgen, after all, has largely stood pat while several of its contemporaries have gladly paid top dollar to bring in new sources of revenue in recent years.
Gilead: Where's the growth?
Gilead is also reeling from a sharp sales drop from key drugs at the moment -- namely, its hepatitis C blockbusters, Sovaldi and Harvoni. To reverse this trend, Gilead opened its checkbook recently to buy the adoptive-cell therapy company Kite Pharma, but even this sizable $12 billion acquisition won't reverse Gilead's near-term growth trajectory. For instance, even if Yescarta -- the first cell-based cancer therapy approved from Kite's pipeline -- lives up to its peak sales potential of approximately $1.7 billion , Gilead's top- line is still on track to fall by a staggering 25% over the next four years relative to 2016 levels.
Like Amgen, Gilead's homegrown clinical pipeline is also devoid of a single product candidate that can pick up the slack from a growth standpoint. To be fair, the biotech does have three promising drug candidates in development for non-alcoholic steatohepatitis (NASH) that could radically change this outlook in the years ahead. But the NASH race has become increasingly crowded of late, implying that several drugs may divvy up this high-value indication down the road.
The good news is that Gilead does have the second largest cash reserves among major biotechs -- with Amgen taking first place. So there's a fairly strong chance that Gilead will execute yet another bolt-on acquisition soon to bolster its near-term growth prospects.
Which stock is the better buy?
When it comes to biotech investing, the market for the most part only cares about top-line growth. And in that sense, Amgen unequivocally has the better outlook right now. Amgen, for instance, can easily add a few choice acquisitions with its industry-leading cash position to generate mid- to high-single-digit growth on a consistent basis. Gilead, on the other hand, probably needs one or more of its high-value clinical candidates in NASH to pan out, as well as another midsize acquisition to achieve the same result. In short, Amgen's less risky path to sustainable growth arguably makes it a more compelling buy than Gilead.
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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. | Keeping with this theme, the biotech has so far rolled out its next-generation cholesterol medicine Repatha and its cardiovascular drug Corlanor, and it has gotten the experimental migraine treatment Aimovig into the regulatory stage of its lifecycle. To fix this core problem, Amgen could tap its massive cash reserves of nearly $40 billion to make a splash on the merger-and-acquisition scene, but management has yet to show any signs of going this route. For instance, even if Yescarta -- the first cell-based cancer therapy approved from Kite's pipeline -- lives up to its peak sales potential of approximately $1.7 billion , Gilead's top- line is still on track to fall by a staggering 25% over the next four years relative to 2016 levels. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. To reverse this trend, Gilead opened its checkbook recently to buy the adoptive-cell therapy company Kite Pharma, but even this sizable $12 billion acquisition won't reverse Gilead's near-term growth trajectory. | Amgen (NASDAQ: AMGN) and Gilead Sciences (NASDAQ: GILD) are central figures within the biotech landscape. To reverse this trend, Gilead opened its checkbook recently to buy the adoptive-cell therapy company Kite Pharma, but even this sizable $12 billion acquisition won't reverse Gilead's near-term growth trajectory. Like Amgen, Gilead's homegrown clinical pipeline is also devoid of a single product candidate that can pick up the slack from a growth standpoint. | Gilead: Where's the growth? 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 Gilead Sciences wasn't one of them! |
25902.0 | 2017-10-24 00:00:00 UTC | Healthcare ETFs Set to Soar as Q3 Earnings Unfold | ABBV | https://www.nasdaq.com/articles/healthcare-etfs-set-soar-q3-earnings-unfold-2017-10-24 | nan | nan | Thanks to encouraging industry trends and hopes of a favorable policy environment, healthcare is one of the top-performing sectors this year. Notably, popular ETFs like Health Care Select Sector SPDR Fund XLV , Vanguard Health Care ETF VHT , iShares U.S. Healthcare ETF IYH and Fidelity MSCI Health Care Index ETF FHLC have gained at least 23% so far (read: Healthcare ETF Hits New 52-Week High ).
The bullish trend is likely to continue heading into the Q3 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. All these stocks collectively account for 27.6% share in XLV, 26.5% in IYH, 24.2% in VHT and 24% in FHLC.
Let's dig deeper into the earnings picture of these companies that would drive the performance of the above-mentioned funds in the coming days:
According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Inside Our Surprise Prediction of These Stocks
Pfizer has a Zacks Rank #3 and an Earnings ESP of +0.94%, indicating a reasonable chance of beating estimates this quarter. The stock has seen no earnings estimate revision for the yet-to-be-reported quarter but delivered an average negative earnings surprise of 0.39% for the past four quarters. It has an impressive Value Style Score of B but a Growth and Momentum Style Score of C and F, respectively, looks disappointing. Pfizer is scheduled to report earnings on Oct 31 before the opening bell.
Pfizer, Inc. Price, Consensus and EPS Surprise
Pfizer, Inc. Price, Consensus and EPS Surprise | Pfizer, Inc. Quote
Merck is expected to report results on Oct 27 before the market opens. It has a Zacks Rank #3 and an Earnings ESP of +0.61%. The stock delivered positive earnings surprises in the last four quarters, with an average beat of 8.11% but witnessed a negative earnings estimate revision of four cents over the past 90 days for the to-be-reported quarter. Merck has a strong Momentum Style Score of A, and a Value and Growth Style Score of C each.
Merck & Company, Inc. Price, Consensus and EPS Surprise
Merck & Company, Inc. Price, Consensus and EPS Surprise | Merck & Company, Inc. Quote
Amgen carries a Zacks Rank #3 and has an Earnings ESP of -0.41%, indicating less chances of beating estimates this quarter. Though the earnings surprise track over the past four quarters is robust with an average positive surprise of 5.84%, Amgen witnessed negative earnings estimate revision of three cents over the past 90 days for the yet-to-be-reported quarter. The stock has a solid Value and Momentum Style Score of B and A, respectively, but the Growth Style Score of C looks dull. Amgen will report earnings on Oct 25 after market close (read: Should You Keep Your Portfolio Healthy with Biotech ETFs? ).
Amgen Inc. Price, Consensus and EPS Surprise
Amgen Inc. Price, Consensus and EPS Surprise | Amgen Inc. Quote
AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.08%. The company delivered positive earnings surprises in the last four quarters, with an average beat of 0.76% but saw negative earnings estimate revision by a couple of cents over the past three months for the to-be-reported quarter. The stock has a solid Value Style Score of B. But a Growth and Momentum Style Score of C and D, respectively, is unimpressive. The company is scheduled to report on Oct 27 before the opening bell.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote
Gilead is expected to release earnings on Oct 26 after market close. It has a Zacks Rank #3 and an Earnings ESP of +0.23%, indicating a reasonable chance of beating estimates. Gilead delivered positive earnings surprises in two of the last four quarters, with an average beat of 6.38% and saw earnings estimate revision of a nickel over the past three months for the to-be-reported quarter. Though it has a solid Value Style Score of A, a Growth and Momentum Style Score of D and F, respectively, looks ugly (see: all the Healthcare ETFs here ).
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote
Bristol-Myers will likely report earnings on Oct 26 before the opening bell. It has a Zacks Rank #3 and an Earnings ESP of +0.79%. The stock delivered positive earnings surprises in three of the past four quarters, with an average beat of 7.99%, and witnessed positive earnings estimate revision of a couple of cents for the to-be-reported quarter. It has a solid Growth Style Score of B but an unfavorable Value and Momentum Style Score of C and D, respectively.
Bristol-Myers Squibb Company Price, Consensus and EPS Surprise
Bristol-Myers Squibb Company Price, Consensus and EPS Surprise | Bristol-Myers Squibb Company Quote
Summing Up
With earnings surprises well in the cards, the healthcare sector is expected to witness earnings growth of 2.2% in the third quarter and has a strong Zacks Rank in the top 44% , suggesting further upside for healthcare ETFs. In particular, all the four ETFs have a Zacks ETF Rank #2 (read: Top Ranked Healthcare ETFs for Long Term Investors ).
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Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Pfizer, Inc. (PFE): Free Stock Analysis Report
Merck & Company, Inc. (MRK): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
SPDR-HLTH CR (XLV): ETF Research Reports
VIPERS-HLTH CR (VHT): ETF Research Reports
ISHARS-US HLTHC (IYH): ETF Research Reports
FID-H CARE (FHLC): ETF Research Reports
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The 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 bullish trend is likely to continue heading into the Q3 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. Amgen Inc. Price, Consensus and EPS Surprise Amgen Inc. Price, Consensus and EPS Surprise | Amgen Inc. Quote AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.08%. AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote Gilead is expected to release earnings on Oct 26 after market close. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The bullish trend is likely to continue heading into the Q3 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. Amgen Inc. Price, Consensus and EPS Surprise Amgen Inc. Price, Consensus and EPS Surprise | Amgen Inc. Quote AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.08%. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The bullish trend is likely to continue heading into the Q3 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. Amgen Inc. Price, Consensus and EPS Surprise Amgen Inc. Price, Consensus and EPS Surprise | Amgen Inc. Quote AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.08%. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The bullish trend is likely to continue heading into the Q3 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. Amgen Inc. Price, Consensus and EPS Surprise Amgen Inc. Price, Consensus and EPS Surprise | Amgen Inc. Quote AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.08%. |
25903.0 | 2017-10-24 00:00:00 UTC | Biogen (BIIB) Tops Q3 Earnings & Sales, Spinraza Sales Up | ABBV | https://www.nasdaq.com/articles/biogen-biib-tops-q3-earnings-sales-spinraza-sales-up-2017-10-24 | nan | nan | Biogen Inc.BIIB , a well-known name in the multiple sclerosis (MS) market, surpassed expectations both for earnings and sales in the third quarter of 2017. The company's revenue was driven by continued a strong performance of its newest drug Spinraza, for spinal muscular atrophy.
Despite better-than-expected results, Biogen's shares were down almost 3% in pre-market trading . This was probably due to the fact that the sales of its multiple sclerosis franchise were below expectations amid an increasingly competitive market. However, we note that Biogen's shares have gained 15.8% so far this year, comparing unfavorably with the industry 's increase of 9%.
Sales came in at $3.08 billion, up 4% from the year-ago period. Sales also surpassed the Zacks Consensus Estimate of $3.04 billion by 1.6%. The top line, excluding hemophilia revenues, grew 13% year over year. The company spun off its hemophilia business in February this year.
Quarter in Detail
Biogen's MS revenues were $2.3 billion in the quarter including approximately $65 million in royalties on the sales of Roche's MS drug Ocrevus.
Tecfidera sales increased 3% from the year-ago period to $1.07 billion. However, the drug recorded a 4% sequential drop in revenues. This included the U.S. sales of $836.3 million and ex-U.S. sales of $233.3 million. In the United States, Tecfidera Inventory levels in the third quarter were relatively flat compared with the year-ago levels, which hurt sales in the reported quarter.
Third-quarter Tysabri revenues were $469 million (U.S. $266.8 million, ex-U.S. $202.6 million), which decreased 9% year over year and 5% sequentially. We believe Ocrevus' launch has put pressure on Tysabri's U.S. sales in the quarter.
Combined interferon revenues (Avonex and Plegridy) in the third quarter were $662 million (U.S. $473.3 million, ex-U.S. $188.7 million), down 7% from the year-ago period. Avonex revenues declined 7% from the year-ago period to $538 million. Plegridy contributed $124 million to third-quarter 2017 revenues, down 3% year over year and 7% sequentially.
U.S. Interferon revenues are experiencing declining trends due to patients transitioning to other oral MS therapies as well as higher discounts and allowance.
Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August last year, contributed $14 million to revenues in the third quarter, down 11% sequentially.
Newly launched Spinraza brought revenues of $271 million (U.S. revenues $197.6 million) in the third quarter, registering growth of 33.5% sequentially as the drug witnesses a strong demand in the United States. The company is working on expanding access to all patients.
This quarter, Biogen recorded biosimilar revenues of $101 million compared with $91 million in second-quarter 2017. The company markets Benepali, a biosimilar referencing Amgen Inc.'s AMGN Enbrel in Europe. Benepali recorded revenues of $99.2 million, registering a growth rate of 11.8% sequentially. Biogen also markets Flixabi, a biosimilar referencing Johnson & Johnson's JNJ blockbuster drug, Remicade, which recorded revenues of $2.2 million in the reported quarter compared with $1.9 million in the second quarter.
Revenues from anti-CD20 therapeutic programs, which include Biogen's shares of Rituxan and Gazyva operating profits, climbed 28% from the year-ago period to $406 million in the third quarter.
R&D spend decreased 15.6% in the reported quarter to $446.4 million, while SG&A spend declined 6.2% year over year to $433.8 million.
Collaboration Agreement
This month, Biogen announced restructuring of collaboration arrangements with Eisai and Neurimmune to improve long-term value of Alzheimer candidate aducanumab, which is presently in a phase III study.
Concurrent with the earnings release, Biogen announced a renegotiation of its agreement with Neurimmune by making a one-time payment of $150 million in exchange of a reduction in Neurimmune's 15% royalty rate on the potential sales of aducanumab. The re-negotiated deal thus increases aducanumab's profit potential.
On Oct 23, Biogen and partner Eisai refined their existing Alzheimer collaboration. Biogen already has an agreement with Eisai to develop the phase III BACE inhibitor, E2609 and the phase II amyloid-beta antibody, BAN240 for Alzheimer's disease. However, Biogen has announced that Eisai has exercised the option to jointly develop and commercialize aducanumab. The company will now receive 55% of aducanumab's potential profits in the United States, 68.5% in Europe and 20% in Japan.
Biogen Inc. Price, Consensus and EPS Surprise
Biogen Inc. Price, Consensus and EPS Surprise | Biogen Inc. Quote
Zacks Rank
Biogen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August last year, contributed $14 million to revenues in the third quarter, down 11% sequentially. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The company's revenue was driven by continued a strong performance of its newest drug Spinraza, for spinal muscular atrophy. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August last year, contributed $14 million to revenues in the third quarter, down 11% sequentially. Biogen also markets Flixabi, a biosimilar referencing Johnson & Johnson's JNJ blockbuster drug, Remicade, which recorded revenues of $2.2 million in the reported quarter compared with $1.9 million in the second quarter. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August last year, contributed $14 million to revenues in the third quarter, down 11% sequentially. Third-quarter Tysabri revenues were $469 million (U.S. $266.8 million, ex-U.S. $202.6 million), which decreased 9% year over year and 5% sequentially. | Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August last year, contributed $14 million to revenues in the third quarter, down 11% sequentially. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. This included the U.S. sales of $836.3 million and ex-U.S. sales of $233.3 million. |
25904.0 | 2017-10-23 00:00:00 UTC | Mitchell Sinkler & Starr Buys National Grid PLC, Cameco Corp, Microsoft Corp | ABBV | https://www.nasdaq.com/articles/mitchell-sinkler-starr-buys-national-grid-plc-cameco-corp-microsoft-corp-2017-10-23 | nan | nan | Mitchell Sinkler & Starr
New Purchases: NGG , CCJ ,
Added Positions: VTI , MSFT, GE, VEU, CVX, GSK, PFE, JNJ, CSCO, PG,
Reduced Positions:VZ, SLB, XOM, MMM,
For the details of MITCHELL SINKLER & STARR's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MITCHELL+SINKLER+%26+STARR
These are the top 5 holdings of MITCHELL SINKLER & STARR
Exxon Mobil Corp ( XOM ) - 30,056 shares, 3.86% of the total portfolio. Shares reduced by 1.67%
Johnson & Johnson ( JNJ ) - 18,805 shares, 3.83% of the total portfolio. Shares added by 1.43%
AbbVie Inc ( ABBV ) - 22,304 shares, 3.11% of the total portfolio.
Vanguard Short-Term Bond ( BSV ) - 24,000 shares, 3% of the total portfolio.
Chevron Corp ( CVX ) - 14,214 shares, 2.62% of the total portfolio. Shares added by 2.16%
New Purchase: National Grid PLC (NGG)
Mitchell Sinkler & Starr initiated holdings in National Grid PLC. The purchase prices were between $60.41 and $65.38, with an estimated average price of $63.15. The stock is now traded at around $62.39. The impact to the portfolio due to this purchase was 0.42%. The holdings were 4,246 shares as of 2017-09-30.
New Purchase: Cameco Corp (CCJ)
Mitchell Sinkler & Starr initiated holdings in Cameco Corp. The purchase prices were between $9.19 and $10.56, with an estimated average price of $9.91. The stock is now traded at around $8.94. The impact to the portfolio due to this purchase was 0.18%. The holdings were 11,700 shares as of 2017-09-30.
Added: Microsoft Corp (MSFT)
Mitchell Sinkler & Starr added to the holdings in Microsoft Corp by 26.81%. The purchase prices were between $68.17 and $75.44, with an estimated average price of $72.96. The stock is now traded at around $79.09. The impact to the portfolio due to this purchase was 0.16%. The holdings were 6,410 shares as of 2017-09-30.
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MSFT 15-Year Financial Data
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares added by 1.43% AbbVie Inc ( ABBV ) - 22,304 shares, 3.11% of the total portfolio. Mitchell Sinkler & Starr New Purchases: NGG , CCJ , Added Positions: VTI , MSFT, GE, VEU, CVX, GSK, PFE, JNJ, CSCO, PG, Reduced Positions:VZ, SLB, XOM, MMM, For the details of MITCHELL SINKLER & STARR's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MITCHELL+SINKLER+%26+STARR These are the top 5 holdings of MITCHELL SINKLER & STARR Exxon Mobil Corp ( XOM ) - 30,056 shares, 3.86% of the total portfolio. Vanguard Short-Term Bond ( BSV ) - 24,000 shares, 3% of the total portfolio. | Shares added by 1.43% AbbVie Inc ( ABBV ) - 22,304 shares, 3.11% of the total portfolio. Shares added by 2.16% New Purchase: National Grid PLC (NGG) Mitchell Sinkler & Starr initiated holdings in National Grid PLC. New Purchase: Cameco Corp (CCJ) Mitchell Sinkler & Starr initiated holdings in Cameco Corp. | Shares added by 1.43% AbbVie Inc ( ABBV ) - 22,304 shares, 3.11% of the total portfolio. Mitchell Sinkler & Starr New Purchases: NGG , CCJ , Added Positions: VTI , MSFT, GE, VEU, CVX, GSK, PFE, JNJ, CSCO, PG, Reduced Positions:VZ, SLB, XOM, MMM, For the details of MITCHELL SINKLER & STARR's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MITCHELL+SINKLER+%26+STARR These are the top 5 holdings of MITCHELL SINKLER & STARR Exxon Mobil Corp ( XOM ) - 30,056 shares, 3.86% of the total portfolio. Shares added by 2.16% New Purchase: National Grid PLC (NGG) Mitchell Sinkler & Starr initiated holdings in National Grid PLC. | Shares added by 1.43% AbbVie Inc ( ABBV ) - 22,304 shares, 3.11% of the total portfolio. Chevron Corp ( CVX ) - 14,214 shares, 2.62% of the total portfolio. Added: Microsoft Corp (MSFT) Mitchell Sinkler & Starr added to the holdings in Microsoft Corp by 26.81%. |
25905.0 | 2017-10-23 00:00:00 UTC | Is Gilead (GILD) Poised for a Beat This Earnings Season? | ABBV | https://www.nasdaq.com/articles/is-gilead-gild-poised-for-a-beat-this-earnings-season-2017-10-23 | nan | nan | A leader in the hepatitis C virus (HCV) space, Gilead Sciences Inc. GILD , is expected to beat expectations when it reports third-quarter results on Oct 26, after the market closes .
Gilead's track record is pretty mixed, with the company beating estimates in two of the last four and missing in one two. Last quarter, the company beat expectations by 17.4%. Overall, the company recorded an average positive earnings surprise of 6.4%.
Gilead's stock has gained 15.9% year to date against the industry's 11.7%. A strong performance in the third quarter will boost share price performance further.
Why a Likely Positive Surprise?
Our proven model shows that Gilead is likely to beat on earnings estimates this quarter. This is because it has the right combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.23%. This is because the Most Accurate estimate is $2.09 while the Zacks Consensus Estimate is pegged a penny lower at $2.08. 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 #3. The combination of Zacks Rank #3 and a positive ESP makes us confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Gilead Sciences, Inc. Price and EPS Surprise
Gilead Sciences, Inc. Price and EPS Surprise | Gilead Sciences, Inc. Quote
Factors at Play
Concurrent with the second-quarter earnings call, Gilead updated its annual guidance. Based on a better-than-expected performance in the first half of 2017 specifically in the United States, the company raised its guidance for 2017. Gilead now expects net product sales in the range of $24.0-$25.5 billion, up from $22.5-$24.5 billion provided earlier. Non-HCV product sales are projected between $15.5 and $16.0 billion (earlier projection: $15 million and $15.5 billion). HCV product sales are projected between $8.5 billion and $9.5 billion (earlier projection: $7.5 billion and $9.0 billion). Adjusted R&D expenses and adjusted SG&A expenses are now projected in the range of $3.2-$3.4 billion and $3.2-$3.4 billion, respectively. Adjusted product gross margin is expected in the range of 86-88%. Earnings per share are now projected around 86-93 cents (earlier projection: 84-91 cents).
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 third 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 51% of total Gilead HIV prescription volume following the launch of Genvoya and Odefsey and Descovy in 2016. Specifically, Genvoya is now the company's bestselling HIV product with a treatment-naïve patient share of 41%. The Zacks Consensus estimate for Genvoya stands at $923 million. Strong uptake for Truvada for use in the pre-exposure prophylaxis setting is also expected to boost sales. However, Gilead will lose exclusivity for Viread in 2017 in some countries outside the United States which might impact sales.
Meanwhile, 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. Higher discounts and payer mix continue to impact sales adversely. Despite this, the company increased its guidance for HCV franchise. The Zacks Consensus Estimate for lead HCV drug Sovaldi and Harvoni currently stand at $24.6 million and $1.0 million for the third quarter. 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.
On the other hand, we expect the company to increase its guidance further for the incremental contribution from the recent Kite Pharma acquisition. The FDA recently approved 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. We expect the management to throw more light on the same during the third-quarter's call. Investors are also likely to keep an eye on other pipeline updates.
Other Stocks Poised to Beat Estimates
Here are some other health care stocks that you may want to consider, as our model shows that they too have the right combination of elements to post an earnings beat this quarter.
Vertex Pharmaceuticals Incorporated VRTX has an Earnings ESP of +7.24% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Oct 25. You can see the complete list of today's Zacks #1 Rank stocks here.
GlaxoSmithKline plc GSK has an Earnings ESP of +1.28% and a Zacks Rank #2. The company is scheduled to release third-quarter results on Oct 25.
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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 GlaxoSmithKline PLC (GSK): 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 To read this article on Zacks.com click here. Meanwhile, the HCV franchise continues to be under competitive and pricing pressure leading to a massive decline in Harvoni and Sovaldi sales. | Click to get this free report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): 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 Factors at Play Concurrent with the second-quarter earnings call, Gilead updated its annual guidance. | Click to get this free report GlaxoSmithKline PLC (GSK): 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 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 Factors at Play Concurrent with the second-quarter earnings call, Gilead updated its annual guidance. | 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 GlaxoSmithKline PLC (GSK): 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 To read this article on Zacks.com click here. Last quarter, the company beat expectations by 17.4%. |
25906.0 | 2017-10-23 00:00:00 UTC | 3 Things You Should Expect in Gilead Sciences' Q3 Results | ABBV | https://www.nasdaq.com/articles/3-things-you-should-expect-gilead-sciences-q3-results-2017-10-23 | nan | nan | Things are looking up for Gilead Sciences (NASDAQ: GILD) for the first time in quite a while. Although the big biotech stock fell in the first half of 2017, its share price is up big since late June. Gilead announced better-than-expected results for its second quarter in July. And the company announced a much-anticipated acquisition in August with its deal to buy Kite Pharma.
Gilead provides an update on its third-quarter performance after the market closes on Thursday, Oct. 26. Can the biotech keep its momentum going? Here are three things you should expect in Gilead's third-quarter results.
1. Another stellar performance for the HIV franchise
Gilead should again report glowing sales numbers for HIV drug Genvoya. Sales for Genvoya soared in the second quarter to $857 million, up 184% year over year and over 11% sequentially. Fully ramping up in France, the biggest HIV market in Europe, should help boost sales in the third quarter. The company is also seeing solid sales growth for HIV drugs Descovey and Odefsey.
Genvoya knocked Truvada out of the top spot in Gilead's HIV franchise. Although overall revenue is falling for Truvada as patients switch to its newer drugs, around half of U.S. sales for the drug come from pre-exposure prophylaxis (PrEP). Gilead expects PrEP sales to continue to grow.
What about the Food and Drug Administration approval in June for Teva 's (NYSE: TEVA) generic version of Truvada? That approval won't impact Gilead's third-quarter results. Actually, it won't impact the big biotech's results for a long time to come. Gilead CEO John Milligan said in July that the company doesn't expect generic competition to Truvada in the U.S. until 2021.
2. A battle between good news and bad news in HCV
Look for both good and bad news for Gilead's hepatitis C virus (HCV) drugs when the company announces its third-quarter results. The good news is that Gilead won U.S. and European approval for pan-genotypic HCV drug Vosevi in July. This new drug completes the biotech's HCV portfolio and should provide an incremental boost to its third-quarter revenue.
The primary bad news for Gilead in HCV could come from AbbVie (NYSE: ABBV) . In August, AbbVie won FDA approval for Mavyret, its first HCV drug that can treat all six major genotypes of hepatitis C. Mavyret could present a significant challenge for Gilead's Epclusa, especially since AbbVie priced its drug lower than many anticipated.
There's also the continued decline in HCV patient starts. In the second quarter, Gilead reported that the drop wasn't as bad as expected. However, the company was clear that the bottom still hasn't been reached. My prediction is that the negatives in HCV outweigh the positives, particularly since Vosevi is targeted toward a limited population of patients who didn't fully respond to prior treatments with Harvoni, Sovaldi, or Epclusa.
3. Lower cash flow -- but still in great shape
Gilead has already warned that its cash flow will probably be lower in the second half of 2017. There's nothing to worry about, though. The anticipated decrease will come primarily from cash payments for government rebates in the U.S. and other countries.
Even with somewhat lower cash flow and closing of the acquisition of Kite Pharma, Gilead should still be in great shape with its cash position. At the end of the second quarter, the company had $36.6 billion of cash, cash equivalents, and marketable securities. Gilead financed the $11.9 billion Kite buyout through a combination of cash, bank debt, and senior unsecured notes. There will be plenty of cash remaining for Gilead to use for other purposes -- for example, funding even more acquisitions.
Beyond the numbers
While investors will certainly be interested in Gilead's third-quarter numbers, there should also be plenty of discussion by the company regarding other important topics that can't be seen on a financial statement. At the top of the list are two key recent developments.
One is the FDA granting priority review designation to Gilead's bictegravir combo for treating HIV. An approval decision is expected by Feb. 12, 2018. This combo holds the potential to cement Gilead's dominance in the HIV market.
Even more talk will likely focus on the FDA's approval on Oct. 18 of Kite's CAR-T therapy Yescarta (axi-cel) for treating relapsed or refractory large B-cell lymphoma. Gilead executives have already fielded questions about pricing for the drug ; I expect many more. Although the bictegravir combo is more important financially to Gilead, approval of Yescarta officially makes the big biotech a leader in the oncology arena. Over the long term, Yescarta could represent the future for Gilead.
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Keith Speights owns shares of AbbVie and Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2017 $86 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. | The primary bad news for Gilead in HCV could come from AbbVie (NYSE: ABBV) . In August, AbbVie won FDA approval for Mavyret, its first HCV drug that can treat all six major genotypes of hepatitis C. Mavyret could present a significant challenge for Gilead's Epclusa, especially since AbbVie priced its drug lower than many anticipated. *Stock Advisor returns as of October 9, 2017 Keith Speights owns shares of AbbVie and Gilead Sciences. | The primary bad news for Gilead in HCV could come from AbbVie (NYSE: ABBV) . In August, AbbVie won FDA approval for Mavyret, its first HCV drug that can treat all six major genotypes of hepatitis C. Mavyret could present a significant challenge for Gilead's Epclusa, especially since AbbVie priced its drug lower than many anticipated. *Stock Advisor returns as of October 9, 2017 Keith Speights owns shares of AbbVie and Gilead Sciences. | In August, AbbVie won FDA approval for Mavyret, its first HCV drug that can treat all six major genotypes of hepatitis C. Mavyret could present a significant challenge for Gilead's Epclusa, especially since AbbVie priced its drug lower than many anticipated. The primary bad news for Gilead in HCV could come from AbbVie (NYSE: ABBV) . *Stock Advisor returns as of October 9, 2017 Keith Speights owns shares of AbbVie and Gilead Sciences. | The primary bad news for Gilead in HCV could come from AbbVie (NYSE: ABBV) . In August, AbbVie won FDA approval for Mavyret, its first HCV drug that can treat all six major genotypes of hepatitis C. Mavyret could present a significant challenge for Gilead's Epclusa, especially since AbbVie priced its drug lower than many anticipated. *Stock Advisor returns as of October 9, 2017 Keith Speights owns shares of AbbVie and Gilead Sciences. |
25907.0 | 2017-10-22 00:00:00 UTC | 3 High-Yield Stocks to Own in a Market Crash | ABBV | https://www.nasdaq.com/articles/3-high-yield-stocks-own-market-crash-2017-10-22 | nan | nan | Nearly a decade has gone by since the last market crash. No one knows when the next one will come, but it will happen sooner or later. But while some stocks plunge dramatically during a market crash, not all of them do.
We asked three Motley Fool investors to pick high-yield stocks to own in a market crash. Here's why they chose W. P. Carey (NYSE: WPC) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) .
Stability amid the storm
Matt DiLallo (W.P. Carey): Three factors make W.P. Carey an excellent high-yield stock to hold when markets grow turbulent. First, the real estate investment trust (REIT) should generate stable income no matter what's going on in the market. Supporting this view is the fact that the company owns nearly 900 properties in the U.S. and Europe that boast 99.3% occupancy, which it leased to more than 200 tenants that have an average remaining term of almost a decade.
In addition to that, the company has an investment-grade balance sheet backed by low leverage metrics. For example, the company has 62% equity in its assets when most commercial property owners are comfortable with less than 50%. That's one of the reasons why W.P. Carey recently won a credit-rating upgrade. Further, long-term, fixed-rate debt makes up the bulk of its borrowings, which limits its exposure to rising interest rates.
Finally, W.P. Carey has a conservative dividend payout ratio for a REIT of 76% this year, which is an improvement from 80% a few years ago.
Because of these factors, the company should have no problem continuing to pay investors during a market meltdown. In fact, it should be able to keep growing its payout, which is something it has done every year since 1998 despite several market crashes. That's why investors will want to have W.P. Carey in their portfolios before the next one comes because it will allow them to rest easy knowing that its 5.9% yield will continue flowing into their brokerage accounts.
A dividend with a side of fries
Tim Green(McDonald's): Fast-food giant McDonald's has enjoyed a soaring stock price over the past year. The downside for dividend investors is that the yield isn't all that high any more. McDonald's' stock yields about 2.3%. Most people may not consider that high-yield territory, but with the S&P 500 sporting a dividend yield below 2%, McDonald's' dividend looks generous in comparison.
Given that McDonald's is a restaurant chain focused on providing value to its customers, it's capable of thriving even if the economy takes a turn. The company's recent initiatives, like all-day breakfast , its mobile app, and online ordering and delivery , have helped reinvigorate its sales. During the second quarter, global comparable sales soared 6.6%, while U.S. comparable sales jumped 3.9%. If the market crashes, McDonald's has some momentum behind it.
The payout ratio is about 61% based on trailing-12-month earnings. It's been higher at times in the past, so there's some room for McDonald's to boost the dividend absent earnings growth. The good news is that earnings have been surging recently, with a 36% jump in earnings per share (EPS) during the second quarter. That pace will be tough to maintain, but even slow earnings growth will be enough to drive the dividend higher.
If you're looking for a dividend stock that won't pull the rug out from under you in a market crash, McDonald's is a good bet.
A stock that's never tanked in a market crash
Keith Speights (AbbVie) : AbbVie is one stock that's never gone down during a market crash. There's a good reason why: It has yet to endure a market crash. AbbVie was spun off from parent Abbott Labs (NYSE: ABT) in 2013. The market has been a bullish investor's dream through most of the nearly five years of AbbVie's existence as a stand-alone company.
However, I think there are several reasons to think that AbbVie would fare quite well if the market plunges. For one thing, Abbott Labs performed nicely during the last market crash. While the S&P 500 index plummeted by nearly 38% in 2008, Abbott stock only dropped 4%.
Also, the nature of AbbVie's business should make the stock less likely to nosedive. Market crashes typically are associated with major global crises or deteriorating economic conditions. Neither should impact the demand for AbbVie's products, which include top-selling autoimmune disease drug Humira and cancer drug Imbruvica, which is on course to become one of the top five best-selling cancer drugs in the world .
Generally speaking, dividend stocks perform better during market downturns than do stocks that don't pay dividends. AbbVie ranks as one of the better dividend stocks around, with a yield of 2.82% and a track record of increasing its dividend for 45 consecutive years (counting the time it was part of Abbott Labs). There's no guarantee that AbbVie stock won't take a hit during a market crash, but I'd say it's a safer bet than most stocks.
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Keith Speights owns shares of AbbVie. Matthew DiLallo owns shares of W. P. Carey. Timothy Green 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. | Here's why they chose W. P. Carey (NYSE: WPC) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) . A stock that's never tanked in a market crash Keith Speights (AbbVie) : AbbVie is one stock that's never gone down during a market crash. AbbVie was spun off from parent Abbott Labs (NYSE: ABT) in 2013. | A stock that's never tanked in a market crash Keith Speights (AbbVie) : AbbVie is one stock that's never gone down during a market crash. Here's why they chose W. P. Carey (NYSE: WPC) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) . AbbVie was spun off from parent Abbott Labs (NYSE: ABT) in 2013. | A stock that's never tanked in a market crash Keith Speights (AbbVie) : AbbVie is one stock that's never gone down during a market crash. There's no guarantee that AbbVie stock won't take a hit during a market crash, but I'd say it's a safer bet than most stocks. Here's why they chose W. P. Carey (NYSE: WPC) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) . | A stock that's never tanked in a market crash Keith Speights (AbbVie) : AbbVie is one stock that's never gone down during a market crash. Here's why they chose W. P. Carey (NYSE: WPC) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) . AbbVie was spun off from parent Abbott Labs (NYSE: ABT) in 2013. |
25908.0 | 2017-10-20 00:00:00 UTC | Catch This Falling Knife — Go Long Celgene Corporation | ABBV | https://www.nasdaq.com/articles/catch-falling-knife-go-long-celgene-corporation-2017-10-20 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last night, Celgene Corporation (NASDAQ: CELG ) released a headline that they canceled phase three for their potential solution to Crohn's disease. The stock is now trading down 10%. This means that it would now be down 16% since early October.
Source: Wikimedia (Modified)
While this sounds like a disaster for recent bulls on the stock, luckily CELG came into this headline up 35% in 12 months. So even after this dip, the stock is still up over 20%. This would put it in line with the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB )
So those who have been long the stock for a while are still set. For the rest, it too early to catch this falling knife?
No, but I have to use options. There is no telling what the stock will do in the short term. Corrections this big usually are not one-day events. But in options, I can structure trades where I can leave room for more downside. This reduces the need to be surgical with my timing.
However this doesn't mean that I can blindly take trades.
10 Blue-Chip Dividend Stocks to Buy for 2018
CELG is expensive from a price-to-earnings ratio. Its P/E of 38 is well above that of AbbVie Inc (NYSE: ABBV ) or Bristol-Myers Squibb Co (NYSE: BMY ), which are both near 23. Price to book value is a whopping 16. Compare that to, say, Apple Inc. (NASDAQ: AAPL ) which has a P/E less than half of CELG and a price to book of 6.5.
Click to Enlarge Technically and even before this dip, CELG stock was precariously perched and in danger of losing an ascending trend line. This headline caused its breach and will likely fill almost all of its measured move lower. The area around $125 per share has been in contention since January of 2015. So it is likely to present some support.
Should this CELG level also fail, then I look 15% lower for another similar zone of contention.
So to maximize my chances of success, my trade will have a large enough moat around it to account for the worst-case scenario given today's news and metrics. Key to my strategy is that I am willing to own the shares at a discount should price go against my thesis.
On the heels of this news, there is the danger of some analysts downgrading the stock. It all depends who had the Crohn's drug as part of their forward estimates. So this accentuates the need for my buffer today.
Currently Wall Street experts have a price range for CELG between $120 and $180 per share, so clearly according to them there is plenty of potential. Still I don't chase any potential. All I need to win is that the stock stabilizes and stays above my support zones.
CELG Stock Trade Idea
The Trade: Sell CELG Jan $100 put and collect $1.20. Here I have an 80% theoretical chance of success. But if the price falls below my strike, then I own the shares and would suffer losses below $98.80.
Selling naked puts carries big risk, especially for a three-digit stock. For those who want to mitigate it, they can sell a spread instead.
Facebook Inc Has Big Catalysts Heading Into Earnings Season and Beyond
The Alternate Trade: Sell the CELG $105/$100 credit put spread, where I have about the same odds of success. If so, then the spread would yield 15% on risk.
Ultimately, regardless of how careful I am, investing in stocks is fraught with danger, so I never risk more than I am willing to lose
Get my newsletter for free here . Nicolas Chahine is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on twitter and stocktwits .
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The post Catch This Falling Knife - Go Long Celgene Corporation appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its P/E of 38 is well above that of AbbVie Inc (NYSE: ABBV ) or Bristol-Myers Squibb Co (NYSE: BMY ), which are both near 23. Source: Wikimedia (Modified) While this sounds like a disaster for recent bulls on the stock, luckily CELG came into this headline up 35% in 12 months. Click to Enlarge Technically and even before this dip, CELG stock was precariously perched and in danger of losing an ascending trend line. | Its P/E of 38 is well above that of AbbVie Inc (NYSE: ABBV ) or Bristol-Myers Squibb Co (NYSE: BMY ), which are both near 23. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last night, Celgene Corporation (NASDAQ: CELG ) released a headline that they canceled phase three for their potential solution to Crohn's disease. CELG Stock Trade Idea The Trade: Sell CELG Jan $100 put and collect $1.20. | Its P/E of 38 is well above that of AbbVie Inc (NYSE: ABBV ) or Bristol-Myers Squibb Co (NYSE: BMY ), which are both near 23. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last night, Celgene Corporation (NASDAQ: CELG ) released a headline that they canceled phase three for their potential solution to Crohn's disease. CELG Stock Trade Idea The Trade: Sell CELG Jan $100 put and collect $1.20. | Its P/E of 38 is well above that of AbbVie Inc (NYSE: ABBV ) or Bristol-Myers Squibb Co (NYSE: BMY ), which are both near 23. The stock is now trading down 10%. Currently Wall Street experts have a price range for CELG between $120 and $180 per share, so clearly according to them there is plenty of potential. |
25909.0 | 2017-10-20 00:00:00 UTC | Abbvie Inks Immuno-Oncology Deal with Harpoon Therapeutics | ABBV | https://www.nasdaq.com/articles/abbvie-inks-immuno-oncology-deal-with-harpoon-therapeutics-2017-10-20 | nan | nan | AbbVie Inc.ABBV announced that it has entered into a immuno-oncology research collaboration with small biotech Harpoon Therapeutics, inking an immuno-oncology research collaboration. The deal aims to generate novel T-cell engagers for the treatment of cancer based on the combination of Harpoon's tri-specific T-cell activating construct TriTAC molecules and AbbVie's research-stage immuno-oncology targets.
Per the agreement, Harpoon will provide Abbvie the right to pursue further development and commercialization of the TriTAC molecules.
AbbVie's shares have outperformed the industry year to date. The stock has surged 52.7% compared with the industry 's gain of 20.5%.
Last week, Abbvie entered into a research, option and license agreement with another clinical-stage immuno-oncology company, Turnstone Biologics, whereby AbbVie obtained an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. Per the agreement, Abbvie has an option to obtain all global development and commercialization rights to Turnstone Biologics' Ad-MG1-MAGEA3 therapy. Turnstone's Ad-MG1-MAGEA3 therapy is in a couple of phase I/II studies for different solid tumor indications alone as well as in combination with an approved anti-PD-1 checkpoint inhibitor.
AbbVie continues to work on expanding and accelerating its presence in oncology, building upon its growing position in hematological oncology. With the acquistion of cancer drugmaker Stemcentrx in April 2016, AbbVied gained a late-stage candidate (rovalpituzumab tesirine or Rova-T), four additional early-stage compounds in solid tumor indications and a significant portfolio of pre-clinical assets.
Rova-T is currently in registrational studies for small cell lung cancer (SCLC). A phase I, eight-arm "basket study" on Rova-T in neuroendocrine tumors is also ongoing. Data from a pivotal phase III (TRINITY) study on Rova-T in third-line or later SCLC is expected this year. According to AbbVie, the candidate has blockbuster potential and could be launched in 2018. AbbVie intends to study the candidate for additional indications and estimates peak sales close to $5 billion.
AbbVie is also studying another marketed cancer drug Venclyxto/Venclexta to expand the label to address the broader relapsed/refractory chronic lymphocytic leukemia (CLL) patient population, expand into earlier lines of therapy, and broaden into other hematologic malignancies.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank & Other Stocks to Consider
AbbVie sports a Zacks Rank #3 (Hold). Some better-ranked stocks in health care sector include Ligand Pharmaceuticals Inc. LGND , Adaptimmune Therapeutics plc ADAP , and Novo Nordisk A/S NVO . While Ligand holds a Zacks Rank #1, Adaptimmune and Novo Nordisk carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Ligand's earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 41.3% year to date.
Adaptimmune's loss per share estimates have narrowed from $1.07 to 95 cents for 2017 and from $1 to 90 cents for 2018 over the last 60 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 2.56%. The share price of the company has increased 77.7% year to date.
Novo Nordisk's earnings per share estimates have moved up $2.37 to $2.38 for 2017 and from $2.51 to $2.53 for 2018 over the last 60 days. The company came up with positive earnings surprises in three of the trailing four quarters, with an average beat of 3.63%. The share price of the company has increased 40.7% year to date.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With the acquistion of cancer drugmaker Stemcentrx in April 2016, AbbVied gained a late-stage candidate (rovalpituzumab tesirine or Rova-T), four additional early-stage compounds in solid tumor indications and a significant portfolio of pre-clinical assets. AbbVie Inc.ABBV announced that it has entered into a immuno-oncology research collaboration with small biotech Harpoon Therapeutics, inking an immuno-oncology research collaboration. The deal aims to generate novel T-cell engagers for the treatment of cancer based on the combination of Harpoon's tri-specific T-cell activating construct TriTAC molecules and AbbVie's research-stage immuno-oncology targets. | Last week, Abbvie entered into a research, option and license agreement with another clinical-stage immuno-oncology company, Turnstone Biologics, whereby AbbVie obtained an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report Adaptimmune Therapeutics PLC (ADAP): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that it has entered into a immuno-oncology research collaboration with small biotech Harpoon Therapeutics, inking an immuno-oncology research collaboration. | Last week, Abbvie entered into a research, option and license agreement with another clinical-stage immuno-oncology company, Turnstone Biologics, whereby AbbVie obtained an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Other Stocks to Consider AbbVie sports a Zacks Rank #3 (Hold). Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report Adaptimmune Therapeutics PLC (ADAP): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV announced that it has entered into a immuno-oncology research collaboration with small biotech Harpoon Therapeutics, inking an immuno-oncology research collaboration. The deal aims to generate novel T-cell engagers for the treatment of cancer based on the combination of Harpoon's tri-specific T-cell activating construct TriTAC molecules and AbbVie's research-stage immuno-oncology targets. Per the agreement, Harpoon will provide Abbvie the right to pursue further development and commercialization of the TriTAC molecules. |
25910.0 | 2017-10-20 00:00:00 UTC | Cancer Treatment Update: Second Gene Therapy Receives Approval | ABBV | https://www.nasdaq.com/articles/cancer-treatment-update%3A-second-gene-therapy-receives-approval-2017-10-20 | nan | nan | With the approval of Gilead Sciences, Inc.'s GILD Yescarta, this week saw the approval of the second CAR-T therapy for treating cancer. It is regarded as one of the most advanced immune-oncology treatment options.
Moreover, the FDA has granted priority review to label expansion applications for four major cancer drugs. These include AstraZeneca, plc's AZN Lynparza for advanced breast cancer and Imfinzi for an earlier stage of lung cancer, Bristol-Myers Squibb Company's BMY Opdivo for melanoma patients with high risk of recurrence and Exelixis, Inc.'s EXEL Cabometyx for advanced renal cell carcinoma ("RCC").
Meanwhile, Ipsen along with its partner, Exelixis, announced positive results from a phase III study on its hepatocellular carcinoma candidate. Moreover, AbbVie ABBV entered into an immuno-oncology research collaboration with Harpoon Therapeutics, focused on novel T-cell recruiting biologic therapies. AbbVie will use Harpoon's tri-specific T-cell activating construct platform for developing its immuno-oncology pipeline.
Let's see the news in details.
Key News
Gilead 's acquisition of Kite Pharma for nearly $12 billion has finally paid off with the approval of Yescarta (axicabtagene ciloleucel), the latter's chimeric antigen receptor T-cell (CAR T) therapy candidate. The FDA approved the therapy for treating relapsed or refractory large B-cell lymphoma (r/rLBCL) in adults who have received two or more lines of systemic therapy.
The various forms of r/rLBCL for which Yescarta is approved include diffuse large B-cell lymphoma (DLBCL), primary mediastinal large B-cell lymphoma (PMBCL) and high-grade B-cell lymphoma. This is the second gene therapy to be approved in the United States after Novartis AG's NVS Kymriah, which received approval in August for acute lymphoblastic leukemia.
CAR-T therapy is the most advanced form of treating cancer. This is done by modifying the patient's T-cell, part of the body's immune system, to fight cancerous cells. The therapy is manufactured specifically for each single patient.
Gilead Sciences, Inc. Price and Consensus
Gilead Sciences, Inc. Price and Consensus | Gilead Sciences, Inc. Quote
AstraZeneca and partner Merck's MRK marketed advanced ovarian cancer drug, Lynparza, received priority review for its supplemental New Drug Application (sNDA) seeking approval in previously treated (chemotherapy) patients with HER2-negative metastatic breast cancer. The FDA is expected to give its decision in the first quarter of 2018. Lynparza is in different studies for a range of tumor types including breast, prostate and pancreatic cancers as well as earlier-line settings for ovarian cancer.
Meanwhile, the FDA has also granted priority review to AstraZeneca's sNDA for key cancer drug, Imfinzi for unresectable non-small cell lung cancer. (Read more: AstraZeneca's sNDA for Two Cancer Drugs Gets Priority Review )
Astrazeneca PLC Price and Consensus
Astrazeneca PLC Price and Consensus | Astrazeneca PLC Quote
Bristol-Myers announced that the FDA has granted priority review to the supplemental Biologics License Application (sBLA) for the label expansion of Opdivo. The company is looking to get the drug approved for treating patients with melanoma, who are at high risk of disease recurrence following complete surgical resection.
The drug is already approved for the treatment of patients with BRAF V600 mutation-positive unresectable or metastatic melanoma. Moreover, the company announced that Opdivo, alone or in combination with Yervoy, achieved encouraging results in previously treated small cell lung cancer patients in phase I/II CheckMate -032 study. The Opdivo monotherapy and combo-therapy achieved an objective response rate of 11% and 22%, respectively. (Read more: Bristol-Myers Gets Priority Review for Opdivo Label Expansion )
Bristol-Myers Squibb Company Price and Consensus
Bristol-Myers Squibb Company Price and Consensus | Bristol-Myers Squibb Company Quote
Other News
Exelixis' renal carcinoma drug, Cabometyx, was also granted priority review by the FDA for its sNDA. The sNDA sought approval of Cabometyx for patients with treatment-naive advanced RCC. The FDA deemed the sNDA to be sufficiently complete with a decision expected on Feb 15, 2018. Moreover, the company's advanced hepatocellular carcinoma candidate, cabozantinib, achieved statistically significant and clinically meaningful improvement in median overall survival rate over placebo in phase III CELESTIAL study. Exelixis is developing this candidate in partnership with Ipsen.
Meanwhile, Inovio Pharmaceuticals, Inc. INOinitiated a phase Ib/II study , which will evaluate a combination of INO-5401, a T-cell activating immunotherapy and INO-9012, an immune activator with Roche's anti-PDL1 inhibitor, Tecentriq, in advanced bladder cancer. Immune Design also initiated a pivotal phase III study to support a regulatory application for CMB305for treating patients with synovial sarcoma.
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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, AbbVie ABBV entered into an immuno-oncology research collaboration with Harpoon Therapeutics, focused on novel T-cell recruiting biologic therapies. AbbVie will use Harpoon's tri-specific T-cell activating construct platform for developing its immuno-oncology pipeline. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novartis AG (NVS): 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 Exelixis, Inc. (EXEL): Free Stock Analysis Report Inovio Pharmaceuticals, Inc. (INO): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novartis AG (NVS): 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 Exelixis, Inc. (EXEL): Free Stock Analysis Report Inovio Pharmaceuticals, Inc. (INO): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, AbbVie ABBV entered into an immuno-oncology research collaboration with Harpoon Therapeutics, focused on novel T-cell recruiting biologic therapies. AbbVie will use Harpoon's tri-specific T-cell activating construct platform for developing its immuno-oncology pipeline. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novartis AG (NVS): 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 Exelixis, Inc. (EXEL): Free Stock Analysis Report Inovio Pharmaceuticals, Inc. (INO): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, AbbVie ABBV entered into an immuno-oncology research collaboration with Harpoon Therapeutics, focused on novel T-cell recruiting biologic therapies. AbbVie will use Harpoon's tri-specific T-cell activating construct platform for developing its immuno-oncology pipeline. | Moreover, AbbVie ABBV entered into an immuno-oncology research collaboration with Harpoon Therapeutics, focused on novel T-cell recruiting biologic therapies. AbbVie will use Harpoon's tri-specific T-cell activating construct platform for developing its immuno-oncology pipeline. Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novartis AG (NVS): 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 Exelixis, Inc. (EXEL): Free Stock Analysis Report Inovio Pharmaceuticals, Inc. (INO): Free Stock Analysis Report To read this article on Zacks.com click here. |
25911.0 | 2017-10-19 00:00:00 UTC | Gilead Slaps Mega-Price on Its Newly Approved CAR-T | ABBV | https://www.nasdaq.com/articles/gilead-slaps-mega-price-its-newly-approved-car-t-2017-10-19 | nan | nan | Gilead Sciences (NASDAQ: GILD) recently acquired clinical-stage CAR-T drugmaker Kite Pharma , for $11.9 billion and on Wednesday, the FDA helped validate the company's purchase price by approving Yescarta more than one month ahead of schedule.
The approval makes Yescarta only the second drug from an entirely new class of cancer killers to get the regulatory nod and Yescarta's $373,000 price tag suggests it could meaningfully offset Gilead Sciences' declining hepatitis C drug revenue next year.
Cell therapy arrives
Yescarta is a chimeric antigen receptor T-cell therapy (CAR-T) that helps the immune system find cancer by reengineering T-cells so that they can spot and bind to proteins expressed on the surface of cancer cells.
Unlike Novartis ' (NYSE: NVS) Kymriah -- the first CAR-T to win approval -- Yescarta addresses advanced diffuse large B-cell lymphoma (DLBCL), the most common type of non-Hodgkin lymphoma (NHL) in adults. Kymriah is approved for use in pediatric patients with acute lymphoblastic leukemia, or ALL, a rare blood cancer.
Yescarta and Kymriah do work similarly, though. Each involves removing a patient's T-cells and shipping them to a facility where they're engineered to spot and bind to CD19, a protein commonly expressed by B-cell cancers. Once the companies have finished altering the T-cells, they're infused back into the patient.
Market opportunity
There are about 72,000 new cases of NHL diagnosed in the U.S. every year, and DLBCL represents roughly one-third of those cases. Initially, Yescarta's green light is for use in advanced patients who have tried and failed other treatments, so the addressable market for it is about 7,000 patients out of the gate.
Kite Pharma previously claimed its investments in manufacturing practices and processes would allow them to treat about 4,000 patients in the first year following Yescarta's approval. Given there are limited treatment options available to advanced DLBCL patients and 82% of patients responded to Yescarta during its clinical trials, I wouldn't be surprised if they hit or exceed that target in 2018.
If so, then Yescarta could add $1 billion-plus to Gilead Sciences top line pretty quickly. Gilead Sciences' has priced Yescarta at $373,000 per patient and while discounts will reduce prices significantly from this "list" price, it seems reasonable to assume Gilead Sciences will pocket a few hundred thousand dollars for every patient they treat.
An important win
Yescarta's speedy approval puts Gilead Sciences in a good position to offset at least some of the risk of declining sales for its blockbuster hepatitis C franchise.
Gilead Sciences revolutionized hepatitis C treatment with drugs that deliver 90% plus cure rates in about 12-weeks and as a result, annualized quarterly sales of its hepatitis C drugs peaked at nearly $20 billion in 2015.
Today, the hepatitis market has become crowded by competitors and that's forced prices lower. High cure rates have also shrunken the addressable market for these drugs and as a result, Gilead Sciences hepatitis C revenue fell to $2.9 billion in Q2 from $4 billion in Q2, 2016.
Gilead Sciences' hepatitis C sales may continue dropping in the coming year now that the FDA's approvedAbbVie Inc. 's (NYSE: ABBV) Mavyret, a pan-genotype hepatitis C drug that delivers high cure rates in 8-weeks for many patients.
How much lower Gilead Sciences' sales could fall is debatable, but it's hard to imagine that more competition in a smaller market won't pressure the company's revenue.
Given this backdrop, investors can better understand why Gilead Sciences' acquisition of Yescarta, and its subsequent approval, is so important. A rapid ramp in Yescarta sales could absorb a good chunk of any additional decline in the company's hepatitis C sales and finally, put Gilead Sciences in a position to begin growing again.
Competition coming
Gilead Sciences will need to work quickly to establish a beachhead in DLBCL before competitors challenge it. Novartis and Juno Therapeutics (NASDAQ: JUNO) are only two of many companies developing CAR-T therapy for use in DLBCL and future approvals of their therapies in this indication could dilute the market and crimp Yescarta sales.
Novartis' Kymriah is putting up similar efficacy and safety to Yescarta in DLBCL patients so far and a pivotal study that could get it approved in DLBCL will wrap up soon. Juno Therapeutics JCAR017 is also in a pivotal study in the indication and data from its study is expected next year.
The fast-pace of CAR-T development and a willing FDA suggests Gilead Sciences won't have this market to itself for long. Therefore, investors should balance the risk of additional DLBCL therapies against the potential to expand CAR-T's use earlier into patient treatment. Overall, I think the market's big enough to support multiple players, but investors will want to keep tabs on competitors' progress and model for a potential price war if Novartis' and Juno's drugs get the OK.
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Todd Campbell owns shares of Gilead Sciences. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2017 $86 calls on 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. | Gilead Sciences' hepatitis C sales may continue dropping in the coming year now that the FDA's approvedAbbVie Inc. 's (NYSE: ABBV) Mavyret, a pan-genotype hepatitis C drug that delivers high cure rates in 8-weeks for many patients. Gilead Sciences (NASDAQ: GILD) recently acquired clinical-stage CAR-T drugmaker Kite Pharma , for $11.9 billion and on Wednesday, the FDA helped validate the company's purchase price by approving Yescarta more than one month ahead of schedule. An important win Yescarta's speedy approval puts Gilead Sciences in a good position to offset at least some of the risk of declining sales for its blockbuster hepatitis C franchise. | Gilead Sciences' hepatitis C sales may continue dropping in the coming year now that the FDA's approvedAbbVie Inc. 's (NYSE: ABBV) Mavyret, a pan-genotype hepatitis C drug that delivers high cure rates in 8-weeks for many patients. The approval makes Yescarta only the second drug from an entirely new class of cancer killers to get the regulatory nod and Yescarta's $373,000 price tag suggests it could meaningfully offset Gilead Sciences' declining hepatitis C drug revenue next year. Unlike Novartis ' (NYSE: NVS) Kymriah -- the first CAR-T to win approval -- Yescarta addresses advanced diffuse large B-cell lymphoma (DLBCL), the most common type of non-Hodgkin lymphoma (NHL) in adults. | Gilead Sciences' hepatitis C sales may continue dropping in the coming year now that the FDA's approvedAbbVie Inc. 's (NYSE: ABBV) Mavyret, a pan-genotype hepatitis C drug that delivers high cure rates in 8-weeks for many patients. The approval makes Yescarta only the second drug from an entirely new class of cancer killers to get the regulatory nod and Yescarta's $373,000 price tag suggests it could meaningfully offset Gilead Sciences' declining hepatitis C drug revenue next year. Gilead Sciences' has priced Yescarta at $373,000 per patient and while discounts will reduce prices significantly from this "list" price, it seems reasonable to assume Gilead Sciences will pocket a few hundred thousand dollars for every patient they treat. | Gilead Sciences' hepatitis C sales may continue dropping in the coming year now that the FDA's approvedAbbVie Inc. 's (NYSE: ABBV) Mavyret, a pan-genotype hepatitis C drug that delivers high cure rates in 8-weeks for many patients. An important win Yescarta's speedy approval puts Gilead Sciences in a good position to offset at least some of the risk of declining sales for its blockbuster hepatitis C franchise. Novartis and Juno Therapeutics (NASDAQ: JUNO) are only two of many companies developing CAR-T therapy for use in DLBCL and future approvals of their therapies in this indication could dilute the market and crimp Yescarta sales. |
25912.0 | 2017-10-19 00:00:00 UTC | Zacks Market Edge Highlights: Gilead, Biogen, Teva, AbbVie and Aetna | ABBV | https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-gilead-biogen-teva-abbvie-and-aetna-2017-10-19 | nan | nan | For Immediate Release
Chicago, IL - October 19, 2017 - 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/279133/where-to-find-value-in-healthcare-stocks )
Where to Find Value in Healthcare Stocks
Welcome to Episode #103 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 Zacks Senior Strategist Kevin Cook who is also the editor of Zacks Healthcare Innovator portfolio . It holds about 30 healthcare and medical stocks for the long term.
Tracey has been getting questions from listeners wondering if there is any value in healthcare stocks right now. Are any of them cheap?
Biotechs on Fire
The biotechs are hot again. The S&P Biotech ETF has soared 47% this year while the iShares NASDAQ Biotechnology ETF has gained 27%.
But can some value still be found in the biotechs? And what about all the other healthcare industries?
Zacks' Medical Sector has over 800 companies, including drug companies, hospitals, managed care insurers, medical device companies, dental companies and others. They're not all created equal.
Tracey and Kevin ran a screen to quickly find basic value stocks within the sector. They looked only in the Medical sector and chose a current year forward P/E less than 20 and a next year forward P/E of under 15.
They didn't screen for Zacks Rank.
It returned 61 stocks.
Tracey and Kevin discuss about a dozen of them on this week's podcast including these 5 big names.
5 Cheap Healthcare Stocks
1. Gilead (Nasdaq: GILD- Free Report ) has been cheap for years. It trades with a forward P/E of just 9.1. But earnings are on the decline. The company made $11.57 last year and expects to just make $8.74 this year. It recently bought KITE but will that be enough to give earnings a boost? Or is it a value trap?
2. Biogen (Nasdaq: BIIB- Free Report ) is another big biotech that is cheap. It trades with a forward P/E of just 15.6. Two analysts just raised their price targets to over $400 on the stock. Unlike Gilead, it's expected to see earnings growth this year and next year.
3. Teva (NYSE: TEVA- Free Report ) is the cheapest in the group. It trades with a forward P/E of 3.4 but investors have to be concerned about those falling earnings estimates. It made $5.14 in 2016 and is expected to make just $3.82 in 2018. Is it a value trap?
4. AbbVie (NYSE: ABBV- Free Report ) has the rare combination of an attractive P/E at just 16.4 and rising earnings estimates. Earnings are expected to jump 14% in 2017 and another 19% in 2018. Should ABBV be on your short list?
5. Aetna (NYSE: AET- Free Report ) is in the managed care group, which, is one of the most difficult areas to be in right now due to Obamacare uncertainty. But Aetna has been reducing its exposure to the exchanges and it trades with a forward P/E of just 15.9.
There are other industries that are also in the cone of uncertainty due to the unknowns surrounding Obamacare, including the hospitals.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV- Free Report ) has the rare combination of an attractive P/E at just 16.4 and rising earnings estimates. Should ABBV be on your short list? Get the full Report on GILD - FREE Get the full Report on BIIB - FREE Get the full Report on TEVA - FREE Get the full Report on ABBV - FREE Get the full Report on AET - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. | Get the full Report on GILD - FREE Get the full Report on BIIB - FREE Get the full Report on TEVA - FREE Get the full Report on ABBV - FREE Get the full Report on AET - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Teva Pharmaceutical Industries Limited (TEVA): Free Stock Analysis Report Aetna Inc. (AET): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (NYSE: ABBV- Free Report ) has the rare combination of an attractive P/E at just 16.4 and rising earnings estimates. | Get the full Report on GILD - FREE Get the full Report on BIIB - FREE Get the full Report on TEVA - FREE Get the full Report on ABBV - FREE Get the full Report on AET - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Teva Pharmaceutical Industries Limited (TEVA): Free Stock Analysis Report Aetna Inc. (AET): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (NYSE: ABBV- Free Report ) has the rare combination of an attractive P/E at just 16.4 and rising earnings estimates. | AbbVie (NYSE: ABBV- Free Report ) has the rare combination of an attractive P/E at just 16.4 and rising earnings estimates. Should ABBV be on your short list? Get the full Report on GILD - FREE Get the full Report on BIIB - FREE Get the full Report on TEVA - FREE Get the full Report on ABBV - FREE Get the full Report on AET - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. |
25913.0 | 2017-10-19 00:00:00 UTC | 3 Top Stocks Billionaires Love | ABBV | https://www.nasdaq.com/articles/3-top-stocks-billionaires-love-2017-10-19 | nan | nan | Billionaires stay billionaires by making smart investment choices. Not every member of the super-wealthy is a stock market wizard, of course, but plenty of them are. Quite a few billionaires either operate or put their money in hedge funds that try to beat market returns.
Financial website WalletHub surveyed quarterly filings for hedge funds to see which stocks these wealthy individuals were buying the most. Three stocks near the top of the list were Amazon (NASDAQ: AMZN) , Oracle (NYSE: ORCL) , and AbbVie (NYSE: ABBV) . Here are the likely reasons why billionaire investors love these stocks.
Amazon
Big money poured into Amazon in the second quarter of 2017, and I suspect the flow will continue for a while. Amazon stock is up nearly 35% so far this year, trouncing the return of the S&P 500 index. There is no sign yet that the e-commerce giant is losing steam.
We don't have to speculate why some billionaires love Amazon . My colleague Matthew Frankel wrote this summer about how the stock was billionaire Mark Cuban's largest holding because of the company's ability to "disrupt everything." Billionaire investor Stanley Druckenmiller said he loved Amazon "because they're investing in their future."
Amazon seems to have the Midas touch. The company first entered the book-selling market and now dominates it. It expanded to other consumer products and ranks as the largest online retailer in the world. Amazon is also a leader in cloud computing. The company's next target could be pharmacy, and if Amazon moves forward as expected, the big pharmacy chains should be nervous.
Oracle
Hedge funds shared their love for Oracle earlier this year also. The tech giant stock is up close to 30% year to date and could be up even more if the company had not given weaker-than-expected guidance in September for its fiscal second quarter.
There are several reasons why billionaires have been enthusiastic about Oracle. The company continues to achieve strong earnings growth. Oracle remains the leader in the database software market and has expanded aggressively into the cloud-computing market, offering cloud software-as-a-service, platform-as-a-service, and infrastructure-as-a-service products.
As you might expect, Oracle's cloud push has put it in direct competition with Amazon. Oracle founder Larry Ellison has taunted Amazon Web Services (AWS) in the past, but Oracle still has a long way to go to catch up in cloud revenue. Still, the cloud presents significant opportunities for Oracle to grow. That's likely what quite a few billionaires are counting on.
AbbVie
Billionaires' investments in AbbVie in the second quarter have really paid off. The big pharma stock is up nearly 50% so far in 2017. Nearly all of those gains have come since June.
AbbVie lays claim to the top-selling drug in the world with Humira. Some had been worried that the autoimmune-disease drug could face serious competition from biosimilars in the U.S. However, AbbVie struck a sweet deal with Amgen (NASDAQ: AMGN) that keeps its rival drug Amjevita off the U.S. market until early 2023.
With Humira in great position to keep rocking along for years to come, AbbVie can enjoy growth from its blockbuster cancer drug Imbruvica. The company also has a rich pipeline with several potential winners, especially experimental cancer drug Rova-T and autoimmune-disease candidate upadacitinib.
Should you love them, too?
You shouldn't buy any of these three stocks just because billionaires and hedge funds do so. Still, it's a good idea to understand why they might love these stocks to see if you might love them, too.
If you're afraid of buying stocks with nosebleed valuations, Amazon probably isn't for you. The stock trades at nearly 257 times trailing-12-month earnings and 131 times expected earnings. That lofty level isn't unusual for Amazon, however. If you think, as I do, that Amazon will continue steamrolling everything in its path, the stock could be a great long-term pick.
Oracle, on the other hand, isn't nearly as pricey. The tech stock trades at only 15 times expected earnings. Oracle should grow earnings, but not nearly as quickly as Amazon probably will.
AbbVie is one of my personal favorites. The company has a strong current product lineup with Humira and Imbruvica. I think it will have several more blockbusters on the market in the next few years. The stock trades at a bargain valuation of 14 times expected earnings. On top of all that, AbbVie pays a nice dividend, which currently yields 2.82%. There's a lot to love about all three of these stocks, but there's little not to like about AbbVie.
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Keith Speights owns shares of AbbVie. The Motley Fool owns shares of and recommends Amazon. The Motley Fool owns shares of Oracle. 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 Humira in great position to keep rocking along for years to come, AbbVie can enjoy growth from its blockbuster cancer drug Imbruvica. Three stocks near the top of the list were Amazon (NASDAQ: AMZN) , Oracle (NYSE: ORCL) , and AbbVie (NYSE: ABBV) . AbbVie Billionaires' investments in AbbVie in the second quarter have really paid off. | Three stocks near the top of the list were Amazon (NASDAQ: AMZN) , Oracle (NYSE: ORCL) , and AbbVie (NYSE: ABBV) . AbbVie Billionaires' investments in AbbVie in the second quarter have really paid off. AbbVie lays claim to the top-selling drug in the world with Humira. | Three stocks near the top of the list were Amazon (NASDAQ: AMZN) , Oracle (NYSE: ORCL) , and AbbVie (NYSE: ABBV) . 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie Billionaires' investments in AbbVie in the second quarter have really paid off. | AbbVie Billionaires' investments in AbbVie in the second quarter have really paid off. Three stocks near the top of the list were Amazon (NASDAQ: AMZN) , Oracle (NYSE: ORCL) , and AbbVie (NYSE: ABBV) . AbbVie lays claim to the top-selling drug in the world with Humira. |
25914.0 | 2017-10-18 00:00:00 UTC | What's Powering Johnson & Johnson's Impressive Quarterly Earnings? | ABBV | https://www.nasdaq.com/articles/whats-powering-johnson-johnsons-impressive-quarterly-earnings-2017-10-18 | nan | nan | Johnson & Johnson (NYSE: JNJ) surprised investors with better-than-hoped-for top-line and bottom-line performance in the third quarter, and that news sent shares soaring on Tuesday. The company's revenue and profit growth were supported by acquisitions, but even after factoring out the positive impact of deals, the financial results were still impressive. Here's what's behind J&J's strong quarter and what the future may have in store for this Dividend Aristocrat.
Digging into the details
Johnson & Johnson markets consumer goods, pharmaceuticals, and medical devices, and in the third quarter, sales in each of these segments were higher than Q3 2016.
Revenue from consumer-goods brands, including Band-Aid and Aveeno, grew 2.9% year over year to $3.3 billion while medical-device revenue increased 7.1% to $6.6 billion. Pharmaceuticals revenue, which represents nearly 50% of sales, increased 15.4% to $9.7 billion.
Currency tailwinds explain a big chunk of the company's consumer-goods growth. Remove the benefit associated with converting overseas sales back into dollars last quarter, and we end up with 1.6% growth, which is more in line with what investors should expect from J&J's mature product-line up.
Medical-device revenue also enjoyed a small increase because of currency, but most of the increase came from J&J's acquisition of Abbott Medical Optics. After adjusting for that deal, medical-device sales inched up by only 1.2% year over year.
Pharmaceutical revenue also comes with some disclaimers. The segment's performance was heavily influenced by its acquisition of Actelion, which added about 8% to operational sales growth. Back Actelion out of the results, and pharmaceutical sales were up 6.7% year over year.
Contributing to the gains in the pharmaceutical segment were the multiple myeloma drug Darzalex, the blood cancer drug Imbruvica, the prostate-cancer drug Zytiga, and the autoimmune-disease drug Stelara. Those drugs saw demand increase notably over the past year because label expansions increased their addressable markets.
In June, the FDA OK'd Darzalex's use alongside widely used multiple myeloma drugs Pomalyst and dexamethasone in patients who've tried and failed at least two prior therapies. This additional indication helped Darzalex's third-quarter sales improve 94.5% year over year to $317 million.
Imbruvica, which J&J shares with AbbVie (NYSE: ABBV) , won FDA approval in the third-quarter for use in chronic graft-versus-host disease, a life-threatening condition that some transplant patients experience. Rising market share in its primary market, chronic lymphocytic leukemia, resulted in J&J's pocketing $512 million from Imbruvica, up 46.7% from Q3 2016.
Zytiga revenue increased in the wake of data suggesting it's effective in earlier inpatient treatment. Trial results showed Zytiga can be used successfully in combination with prednisone and ADT in patients with high-risk metastatic hormone-naive prostate cancer or newly diagnosed, high-risk metastatic hormone-sensitive prostate cancer. J&J filed a supplemental new drug application last quarter, but it appears doctors may already be prescribing Zytiga in these patients. Zytiga sales rose 14.9% in the past year to $669 million last quarter.
As for Stelara, doctors continue to embrace it for use in Crohn's disease patients following approval in that indication last year. Stelara's revenue climbed 38% year over year to $1.1 billion last quarter, and with $4.4 billion in annualized sales, Stelara trails only Remicade in terms of company product revenue.
Speaking of Remicade, investors ought to feel pretty good about its performance last quarter too. Even though the FDA approved two Remicade biosimilars in the past year, Remicade sales slipped by only 7.6% in the past year to $1.6 billion. U.S. Remicade revenue fell by only 1.3% year over year despite the competition.
What's investors' takeaway?
J&J is leveraging sales growth against fixed costs, and that's providing a nice tailwind to earnings. In the quarter, adjusted earnings were $5.2 billion, up 11.2% from one year ago. Because share buybacks reduced its share count, earnings per share grew even more quickly, increasing 13% to $1.90.
Management's guidance for the rest of the year suggests they're confident this profit-friendly trend will continue. J&J's targeting sales of between $76.1 billion and $76.5 billion and non-GAAP EPS of $7.25 to $7.30 in 2017, up from a previous forecast for sales of between $75.8 billion to $76.1 billion and adjusted EPS of $7.12 to $7.22.
Given the company's solid top- and bottom-line performance, it appears there's plenty of financial flexibility to support its dividend friendly status as a Dividend Aristocrat. The company's upped its dividend payout for more than 50 consecutive years, making it a core stock to own in income portfolios.
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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. | Imbruvica, which J&J shares with AbbVie (NYSE: ABBV) , won FDA approval in the third-quarter for use in chronic graft-versus-host disease, a life-threatening condition that some transplant patients experience. The company's revenue and profit growth were supported by acquisitions, but even after factoring out the positive impact of deals, the financial results were still impressive. In June, the FDA OK'd Darzalex's use alongside widely used multiple myeloma drugs Pomalyst and dexamethasone in patients who've tried and failed at least two prior therapies. | Imbruvica, which J&J shares with AbbVie (NYSE: ABBV) , won FDA approval in the third-quarter for use in chronic graft-versus-host disease, a life-threatening condition that some transplant patients experience. Contributing to the gains in the pharmaceutical segment were the multiple myeloma drug Darzalex, the blood cancer drug Imbruvica, the prostate-cancer drug Zytiga, and the autoimmune-disease drug Stelara. Trial results showed Zytiga can be used successfully in combination with prednisone and ADT in patients with high-risk metastatic hormone-naive prostate cancer or newly diagnosed, high-risk metastatic hormone-sensitive prostate cancer. | Imbruvica, which J&J shares with AbbVie (NYSE: ABBV) , won FDA approval in the third-quarter for use in chronic graft-versus-host disease, a life-threatening condition that some transplant patients experience. Revenue from consumer-goods brands, including Band-Aid and Aveeno, grew 2.9% year over year to $3.3 billion while medical-device revenue increased 7.1% to $6.6 billion. Stelara's revenue climbed 38% year over year to $1.1 billion last quarter, and with $4.4 billion in annualized sales, Stelara trails only Remicade in terms of company product revenue. | Imbruvica, which J&J shares with AbbVie (NYSE: ABBV) , won FDA approval in the third-quarter for use in chronic graft-versus-host disease, a life-threatening condition that some transplant patients experience. Revenue from consumer-goods brands, including Band-Aid and Aveeno, grew 2.9% year over year to $3.3 billion while medical-device revenue increased 7.1% to $6.6 billion. Back Actelion out of the results, and pharmaceutical sales were up 6.7% year over year. |
25915.0 | 2017-10-18 00:00:00 UTC | What's in the Cards for Novartis (NVS) This Earnings Season? | ABBV | https://www.nasdaq.com/articles/whats-in-the-cards-for-novartis-nvs-this-earnings-season-2017-10-18 | nan | nan | Swiss pharmaceutical company Novartis AGNVS is scheduled to report third-quarter 2017 results on Oct 24.
Novartis' stock has rallied 22.1% year to date compared with the industry 's 21.4% gain.
In the last quarter, Novartis delivered a positive earnings surprise of 4.3%. The company posted an average positive earnings surprise of 3.51% in the trailing four quarters. Let's see how things are shaping up for this announcement.
Factors at Play
Concurrent with the second-quarter results, Novartis reiterated its guidance. Net sales are expected to be broadly in line with the 2016 levels after including the impact of continued genericization of Gleevec/Glivec in the United States and Europe.
Novartis operates under three segments: Innovative Medicines (Pharmaceuticals), Alcon and Sandoz (Generics). Novartis has a strong oncology portfolio of drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu, and the recently approved Kisqali. The recent approval of Kymriah for acute lymphoblastic leukemia is a major boost for Novartis, given the potential in the CAR T therapy space. Meanwhile, the FDA has recently approved a label expansion of Zykadia as the first-line treatment of patients with metastatic non-small cell lung cancer.
New products like Cosentyx and Entresto are expected to boost the top line. Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen. Inc's AMGN Enbrel. Cosentyx achieved the blockbuster status in 2016 and recorded over $1 billion of sales. While Entresto is expected to record $500 million revenues, sales of Cosentyx are projected to reach $2 billion in 2017.
Additionally, Novartis' generic arm, Sandoz, is making efforts to strengthen its biosimilars portfolio. The company plans to launch five biosimilars of major oncology and immunology biologics across key geographies by 2020. The company is, however, facing significant pricing pressures and this is expected to impact the third-quarter results.
Also, the loss of exclusivity of some of the key drugs in Novartis' portfolio is hurting the company's top line. The company's blockbuster drug, Diovan, is facing stiff generic competition in the United States, the EU and Japan. Gleevec lost exclusivity in the United States in February 2016 and in the EU in December 2016, thereby leading to generic competition. Exforge is also facing generic competition in the United States and the EU. Furthermore, the oncology drugs are facing new competition in the form of immuno-oncology therapies.
The negative impact of generic competition is expected to impact sales by $2.5 billion in 2017.
The company's ophthalmologic division, Alcon, continues to face challenges due to lower surgical equipments sales. Stiff competition faced by intraocular lens and a slowdown in demand for equipment purchases continue to act as dampeners.
Earnings Whispers
Our proven model does not conclusively show that Novartis 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 : The Earnings ESP for Novartis is -0.40%. This is because both the Most Accurate estimate is 1.24 and the Zacks Consensus Estimate is pegged at $1.25. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Novartis currently carries a Zacks Rank #3. Although the rank is favorable, the company's negative ESP makes its highly unlikely for earnings beat this quarter. 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.
Novartis AG Price and EPS Surprise
Novartis AG Price and EPS Surprise | Novartis AG Quote
Stock to Consider
Here is one stock in the healthcare sector that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Vertex Pharmaceuticals Incorporated VRTX has an Earnings ESP of +6.84% and a Zacks Rank #1. The company is scheduled to release results on Oct 24. You can see the complete list of today's Zacks #1 Rank stocks here .
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Novartis AG (NVS): Free Stock Analysis Report
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Amgen Inc. (AMGN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis has a strong oncology portfolio of drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu, and the recently approved Kisqali. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen. The company's blockbuster drug, Diovan, is facing stiff generic competition in the United States, the EU and Japan. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen. 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. | Cosentyx has been strong and the company has grabbed market shares from rivals like AbbVie, Inc.'s ABBV Humira and Amgen. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The negative impact of generic competition is expected to impact sales by $2.5 billion in 2017. |
25916.0 | 2017-10-18 00:00:00 UTC | Notable Wednesday Option Activity: AGN, REGN, ABBV | ABBV | https://www.nasdaq.com/articles/notable-wednesday-option-activity-agn-regn-abbv-2017-10-18 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Allergan PLC (Symbol: AGN), where a total of 46,585 contracts have traded so far, representing approximately 4.7 million underlying shares. That amounts to about 149% of AGN's average daily trading volume over the past month of 3.1 million shares. Especially high volume was seen for the $190 strike put option expiring October 20, 2017 , with 1,908 contracts trading so far today, representing approximately 190,800 underlying shares of AGN. Below is a chart showing AGN's trailing twelve month trading history, with the $190 strike highlighted in orange:
Regeneron Pharmaceuticals, Inc. (Symbol: REGN) options are showing a volume of 5,063 contracts thus far today. That number of contracts represents approximately 506,300 underlying shares, working out to a sizeable 69.7% of REGN's average daily trading volume over the past month, of 726,015 shares. Particularly high volume was seen for the $540 strike call option expiring January 19, 2018 , with 1,022 contracts trading so far today, representing approximately 102,200 underlying shares of REGN. Below is a chart showing REGN's trailing twelve month trading history, with the $540 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 40,014 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 67.6% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $94 strike call option expiring November 10, 2017 , with 4,352 contracts trading so far today, representing approximately 435,200 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $94 strike highlighted in orange:
For the various different available expirations for AGN options , REGN options , or ABBV options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $94 strike call option expiring November 10, 2017 , with 4,352 contracts trading so far today, representing approximately 435,200 underlying shares of ABBV. Below is a chart showing REGN's trailing twelve month trading history, with the $540 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 40,014 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 67.6% of ABBV's average daily trading volume over the past month, of 5.9 million shares. | Below is a chart showing REGN's trailing twelve month trading history, with the $540 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 40,014 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 67.6% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $94 strike call option expiring November 10, 2017 , with 4,352 contracts trading so far today, representing approximately 435,200 underlying shares of ABBV. | That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 67.6% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $94 strike highlighted in orange: For the various different available expirations for AGN options , REGN options , or ABBV options , visit StockOptionsChannel.com. Below is a chart showing REGN's trailing twelve month trading history, with the $540 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 40,014 contracts thus far today. | That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 67.6% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $94 strike call option expiring November 10, 2017 , with 4,352 contracts trading so far today, representing approximately 435,200 underlying shares of ABBV. Below is a chart showing REGN's trailing twelve month trading history, with the $540 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 40,014 contracts thus far today. |
25917.0 | 2017-10-17 00:00:00 UTC | Sanofi/Regeneron's Dupixent Succeeds in Phase II Study | ABBV | https://www.nasdaq.com/articles/sanofi-regenerons-dupixent-succeeds-in-phase-ii-study-2017-10-17 | nan | nan | Sanofi, Inc.SNY and partner Regeneron Pharmaceuticals, Inc. REGN announced that a phase II study evaluating its injection Dupixent for the treatment of adults with active moderate-to-severe eosinophilic esophagitis met its primary endpoint.
Sanofi's shares have risen 22.7% this year so far compared with 18.3% increase for the industry .
Eosinophilic esophagitis is a chronic, allergic inflammatory disease in which the patients suffer from difficulty in swallowing. Presently, this condition, mainly caused by food allergies, is treated only with diet modification, corticosteroids or surgery.
Data from the study showed that patients treated with Dupixent injection weekly experienced a significant improvement in the ability to swallow when compared with placebo. Meanwhile, treatment with dupilumab weekly also led to significant improvement in the severity of inflammation of the esophagus and endoscopic signs of the disease. Please note that Dupixent enjoys orphan drug designation for this indication.
We are optimistic on sales prospects of Dupixent, which could prove to be an important growth driver for the company. Dupixent generated sales of €26 million in the second quarter backed by strong demand.
Apart from AD and eosinophilic esophagitis, Dupixent is also being evaluated for other inflammatory indications including asthma and nasal polyposis in late stage studies. Last month, Sanofi and Regeneron announced that Dupixent met its two primary endpoints in a phase III asthma study. Data from the LIBERTY ASTHMA QUEST study showed that Dupixent, when added to standard therapies, reduced severe asthma attacks and improved lung function. Based on this positive data, the companies plan to submit a supplemental Biologics License Application (sBLA) to the FDA by the end of this year.
Sanofi has a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the large-cap pharma sector include AbbVie, Inc. ABBV and Novo Nordisk NVO . Both carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
AbbVie's shares have risen 45.4% this year while its earnings estimates have gone up by 0.2% and 0.5% for 2017 and 2018, respectively over the past 30 days.
Novo Nordisk has seen its share price go up by 37.6%.
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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. | Better-ranked stocks in the large-cap pharma sector include AbbVie, Inc. ABBV and Novo Nordisk NVO . AbbVie's shares have risen 45.4% this year while its earnings estimates have gone up by 0.2% and 0.5% for 2017 and 2018, respectively over the past 30 days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): 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 Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the large-cap pharma sector include AbbVie, Inc. ABBV and Novo Nordisk NVO . AbbVie's shares have risen 45.4% this year while its earnings estimates have gone up by 0.2% and 0.5% for 2017 and 2018, respectively over the past 30 days. | Click to get this free report Sanofi (SNY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the large-cap pharma sector include AbbVie, Inc. ABBV and Novo Nordisk NVO . AbbVie's shares have risen 45.4% this year while its earnings estimates have gone up by 0.2% and 0.5% for 2017 and 2018, respectively over the past 30 days. | Better-ranked stocks in the large-cap pharma sector include AbbVie, Inc. ABBV and Novo Nordisk NVO . AbbVie's shares have risen 45.4% this year while its earnings estimates have gone up by 0.2% and 0.5% for 2017 and 2018, respectively over the past 30 days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25918.0 | 2017-10-17 00:00:00 UTC | J&J (JNJ) Beats on Q3 Earnings, Actelion Buyout Drives Sales | ABBV | https://www.nasdaq.com/articles/jj-jnj-beats-on-q3-earnings-actelion-buyout-drives-sales-2017-10-17 | nan | nan | Johnson & JohnsonJNJ reported better-than-expected third-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and sales. The drug and consumer products giant raised its 2017 sales and profit outlook, which sent shares up 1.5% in pre-market trading .
In fact, this year so far, J&J's share price is up 18.1%. This is almost in line with the 18.2% increase witnessed by the industry .
Earnings Beat
J&J's third-quarter 2017 earnings came in at $1.90 per share, beating the Zacks Consensus Estimate of $1.80 and increasing 13.1% from the year-ago period.
Including amortization expense and special items, J&J reported third-quarter earnings of $1.37 per share, down 10.5% from the year-ago period.
Sales Beat
Sales came in at $19.65 billion, beating the Zacks Consensus Estimate of $19.28 billion by 1.9%. Sales increased 10.3% from the year-ago quarter, reflecting an operational increase of 9.5% and a positive currency impact of 0.8%. Organically, excluding the impact of acquisitions and divestitures, sales increased 3.8% on an operational basis.
Third-quarter sales grew 9.7% in the domestic market to $10.29 billion and 10.9% in international markets to $9.36 billion, reflecting 9.3% operational growth and 1.6% positive currency impact.
Sales in Details
Pharmaceutical segment sales rose 15.4% year over year to $9.7 billion, reflecting 14.6% operational growth and 0.8% positive currency impact as sales rose in both the domestic and international markets. Sales in the domestic market rose 15.4% to $5.82 billion, while international sales grew 15.5% to $3.88 billion. Organically, excluding the impact of acquisitions and divestitures, sales increased 6.7% on an operational basis.
New products like Imbruvica (cancer) and Darzalex (multiple myeloma) continued to perform well. Other growth drivers were core products like Xarelto, Stelara and Invega Sustenna. Sales of Concerta and Zytiga improved in the quarter.
In the quarter, J&J recorded pulmonary arterial hypertension (PAH) revenues of $670 million. The $30 billion acquisition of Swiss biotech Actelion in June diversified J&J's revenues to the PAH category.
However, sales of Invokana/Invokamet declined 19.2% due to higher managed care discounting. Importantly, sales of the blockbuster rheumatoid arthritis drug Remicade, marketed in partnership with Merck & Co., Inc. MRK , declined 7.6% in the quarter with U.S. sales declining 1.3% and international sales declining 6.9% due to biosimilar competition. In this regard, we would like to mention that Pfizer, Inc. PFE filed a lawsuit in a U.S. district court recently. In the lawsuit, Pfizer alleged J&J of resorting to unfair practices to prevent sale of Inflectra - Pfizer's biosimilar version of Remicade - that was launched in the United States in November last year.
J&J's Pharma segment achieved some clinical milestones during the quarter including label expansions in the United States for pulmonary arterial hypertension (PAH) drug, Tracleer for pediatric use and Imbruvica for chronic graft versus host disease (GVHD) - the drug's first indication outside of cancer. J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV .
At the call, the company also mentioned that it will not file global regulatory applications for rheumatoid arthritis candidate, sirukumab. We remind investors that last month, J&J received a complete response letter (CRL) from the FDA for sirukumab for want of additional safety data.
Medical Devices segment sales came in at $6.6 billion, up 7.1% from the year-ago period. It included an operational increase of 6.6% and positive currency movement of 0.5%. Sales gained mainly from the inclusion of Abbott Medical Optics acquisition, which added 5.2% to operational sales growth. Excluding the impact of all acquisitions and divestitures, on an operational basis, worldwide sales increased 1.2%.
Domestic market sales rose 4.6% year over year to $3.19 billion. International market sales increased 9.6% (operational increase of 8.6%) year over year to $3.41 billion.
Operational growth was driven by wound closure products in the General Surgery business, electrophysiology products in the Cardiovascular business and Acuvue contact lenses in the Vision Care business, which made up for a weaker sales performance in the Diabetes Care unit
The Consumer segment recorded revenues of $3.36 billion in the reported quarter, up 2.9% year over year(operational increase of 1.6%). Foreign currency movement positively impacted sales in the segment by 1.3%. Sales in the domestic market declined 0.5% from the year-ago period to $1.29 billion.
Slower growth in baby care products due to competitive pressure was partially offset by growth in beauty and over-the-counter products and international smoking cessation aids.
Meanwhile, the international segment recorded an increase of 5.1% to $2.07 billion, reflecting an operational increase of 3% and a positive currency impact of 2.1%.
2017 Guidance Raised
J&J raised its adjusted earnings and sales outlook for the year.
J&J expects 2017 adjusted earnings per share in the range of $7.25 - $7.30 compared with $7.12 - $7.22 expected previously.
The revenue guidance was raised to a range of $76.1 billion to $76.5 billion compared with $75.8 billion to $76.1 billion expected previously
Our Take
As indicated last quarter, J&J's sales growth accelerated in the third quarter leading the company to post its first positive sales surprise after almost a year. Higher sales in the pharmaceutical segment as well as positive contribution from the Actelion deal pulled up the top line in the quarter. The Actelion acquisition added an impressive 7.9% to operational sales growth in the quarter.
Though quite a few key products in J&J's portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, label expansion of drugs like Imbruvica and Darzalex and contribution from Actelion could lead to better sales trends, going forward.
J&J carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Johnson & Johnson Price, Consensus and EPS Surprise
Johnson & Johnson Price, Consensus and EPS Surprise | Johnson & Johnson Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & JohnsonJNJ reported better-than-expected third-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and sales. | Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Sales in Details Pharmaceutical segment sales rose 15.4% year over year to $9.7 billion, reflecting 14.6% operational growth and 0.8% positive currency impact as sales rose in both the domestic and international markets. | J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Sales in Details Pharmaceutical segment sales rose 15.4% year over year to $9.7 billion, reflecting 14.6% operational growth and 0.8% positive currency impact as sales rose in both the domestic and international markets. | J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Sales in Details Pharmaceutical segment sales rose 15.4% year over year to $9.7 billion, reflecting 14.6% operational growth and 0.8% positive currency impact as sales rose in both the domestic and international markets. |
25919.0 | 2017-10-17 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, American Express, Abbott, United Technologies and VMWare | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-american-express-abbott-united-technologies-and | nan | nan | For Immediate Release
Chicago, IL - October 17, 2017 - 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 AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ), Abbott (NYSE: ABT - Free Report ), United Technologies (NYSE: UTX - Free Report ) and VMWare (NYSE: VMW - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Top Research Reports for AbbVie, American Express and Abbott Labs
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 AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ) and Abbott (NYSE: ABT - Free Report ). 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 >>>
AbbVie shares have gained +44.8% year to date, outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +18.3% over the same period. The Zacks analyst likes the strong performance of AbbVie's key drug Humira which should continue to do well. Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases.
Meanwhile, AbbVie has promising pipeline with several pivotal data readouts and regulatory milestones due in the second half. Maviret, approved recently, has the potential to rejuvenate AbbVie's struggling HCV franchise. However, though Humira is doing well, the company is concerned about the product's long-term growth prospects, given potential biosimilar competition.
Viekira also faces intense pricing and competitive pressure in the HCV market. Estimates have gone up slightly ahead of the company's Q3 earnings release. AbbVie has had a mixed record of earnings surprises in the recent quarters.
(You can read the full research report on AbbVie here >>> ).
Shares of American Express are up +55.1% over the last one year, outperforming the Zacks Financial Miscellaneous Services industry, which has gained +34% over the same period. The Zacks analyst likes its solid market position, strength in card business and significant opportunities from the secular shift toward electronic payments.
The company is gaining from investments made in growth opportunities over the last couple of years. Strategic initiatives focusing on the platinum card portfolio and OptBlue program will drive business volume. Cost reduction and return of significant capital to shareholders through dividend and share buyback are other positives.
The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 0.5% upward over the last 90 days. However, an increase in provision for losses, foreign exchange volatility, loss of Costco as a client and intense competition remain major near-term concerns.
(You can read the full research report on American Express here >>> ).
Buy-rated Abbott 's shares have gained +12.1% over the last three months, outperforming the Zacks Medical Products industry, which has gained +0.3% over the same period. Ahead of Abbott's third-quarter 2017 earnings result, the Zacks analyst likes the promising full year guidance which is indicative of brighter prospects ahead. In fact, the strong guidance is backed by the company's expectations to gain more synergies from the St. Jude merger.
Overall, Abbott's plan to expand in core therapeutic areas is cause for encouragement. Recently, the company's FreeStyle Libre Flash received the FDA approval. Also, the company has received FDA approval for magnetic resonance-conditional labeling for its Ellipse implantable cardioverter defibrillator recently.
On the flip side, Abbott's sluggish pediatric business in China continues to dent growth. Management is also concerned about the economic problems in Venezuela that are expected to remain unresolved for some time.
(You can read the full research report on Abbott here >>> ).
Other noteworthy reports we are featuring today include United Technologies (NYSE: UTX - Free Report ) and VMWare (NYSE: VMW - Free 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. | Stocks recently featured in the blog include AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ), Abbott (NYSE: ABT - Free Report ), United Technologies (NYSE: UTX - Free Report ) and VMWare (NYSE: VMW - Free Report ). Here are highlights from Monday's Analyst Blog: Top Research Reports for AbbVie, American Express and Abbott Labs 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 AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ) and Abbott (NYSE: ABT - Free Report ). | Stocks recently featured in the blog include AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ), Abbott (NYSE: ABT - Free Report ), United Technologies (NYSE: UTX - Free Report ) and VMWare (NYSE: VMW - Free Report ). Today's Research Daily features new research reports on 16 major stocks, including AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ) and Abbott (NYSE: ABT - Free Report ). Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ), Abbott (NYSE: ABT - Free Report ), United Technologies (NYSE: UTX - Free Report ) and VMWare (NYSE: VMW - Free Report ). Get the full Report on ABBV - FREE Get the full Report on AXP - FREE Get the full Report on ABT - FREE Get the full Report on UTX - FREE Get the full Report on VMW - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Vmware, Inc. (VMW): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report To read this article on Zacks.com click here. | The Zacks analyst likes the strong performance of AbbVie's key drug Humira which should continue to do well. Stocks recently featured in the blog include AbbVie (NYSE: ABBV - Free Report ), American Express (NYSE: AXP - Free Report ), Abbott (NYSE: ABT - Free Report ), United Technologies (NYSE: UTX - Free Report ) and VMWare (NYSE: VMW - Free Report ). Here are highlights from Monday's Analyst Blog: Top Research Reports for AbbVie, American Express and Abbott Labs The Zacks Research Daily presents the best research output of our analyst team. |
25920.0 | 2017-10-17 00:00:00 UTC | Sabal Trust CO Buys United Parcel Service Inc, Bristol-Myers Squibb Company, Hanesbrands Inc, ... | ABBV | https://www.nasdaq.com/articles/sabal-trust-co-buys-united-parcel-service-inc-bristol-myers-squibb-company-hanesbrands-inc | nan | nan | Sabal Trust CO
New Purchases: UPS , HBI , CIU , PSA, MDT, CME, SBUX, UNP, TWX, UTX,
Added Positions:BMY, T, PFE, ENB, GPC, XOM, CVS, QCOM, SO, CSCO,
Reduced Positions:GE, SON, SYY, INTC, AAPL, JNJ, BA, ABBV, MSFT, MMM,
Sold Out:AGN, AXP, EFX, DD, F, CRM, FIS, AAL, TIP,
For the details of Sabal Trust CO's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Sabal+Trust+CO
These are the top 5 holdings of Sabal Trust CO
Procter & Gamble Co ( PG ) - 376,760 shares, 3.43% of the total portfolio. Shares added by 2.88%
Pfizer Inc ( PFE ) - 950,160 shares, 3.39% of the total portfolio. Shares added by 34.18%
Enbridge Inc ( ENB ) - 780,734 shares, 3.27% of the total portfolio. Shares added by 28.91%
AT&T Inc ( T ) - 831,806 shares, 3.26% of the total portfolio. Shares added by 40.96%
AbbVie Inc ( ABBV ) - 345,442 shares, 3.07% of the total portfolio. Shares reduced by 9.95%
New Purchase: United Parcel Service Inc (UPS)
Sabal Trust CO initiated holdings in United Parcel Service Inc. The purchase prices were between $107.79 and $120.09, with an estimated average price of $113.65. The stock is now traded at around $117.68. The impact to the portfolio due to this purchase was 2.75%. The holdings were 229,268 shares as of 2017-09-30.
New Purchase: Hanesbrands Inc (HBI)
Sabal Trust CO initiated holdings in Hanesbrands Inc. The purchase prices were between $22.53 and $25.67, with an estimated average price of $23.99. The stock is now traded at around $23.13. The impact to the portfolio due to this purchase was 2.55%. The holdings were 1,034,075 shares as of 2017-09-30.
New Purchase: iShares Intermediate Credit Bond ETF (CIU)
Sabal Trust CO initiated holdings in iShares Intermediate Credit Bond ETF. The purchase prices were between $109.28 and $110.67, with an estimated average price of $110.1. The stock is now traded at around $110.05. The impact to the portfolio due to this purchase was 2.53%. The holdings were 229,602 shares as of 2017-09-30.
New Purchase: Public Storage (PSA)
Sabal Trust CO initiated holdings in Public Storage. The purchase prices were between $196.29 and $218.31, with an estimated average price of $206.79. The stock is now traded at around $215.88. The impact to the portfolio due to this purchase was 2.23%. The holdings were 104,208 shares as of 2017-09-30.
New Purchase: Medtronic PLC (MDT)
Sabal Trust CO initiated holdings in Medtronic PLC. The purchase prices were between $77.71 and $88.9, with an estimated average price of $83.2. The stock is now traded at around $78.00. The impact to the portfolio due to this purchase was 2.16%. The holdings were 277,741 shares as of 2017-09-30.
New Purchase: CME Group Inc (CME)
Sabal Trust CO initiated holdings in CME Group Inc. The purchase prices were between $120.17 and $135.86, with an estimated average price of $126.18. The stock is now traded at around $136.19. The impact to the portfolio due to this purchase was 1.55%. The holdings were 114,194 shares as of 2017-09-30.
Added: Bristol-Myers Squibb Company (BMY)
Sabal Trust CO added to the holdings in Bristol-Myers Squibb Company by 4439.49%. The purchase prices were between $54.24 and $63.74, with an estimated average price of $58.38. The stock is now traded at around $64.18. The impact to the portfolio due to this purchase was 2.63%. The holdings were 421,946 shares as of 2017-09-30.
Added: AT&T Inc ( T )
Sabal Trust CO added to the holdings in AT&T Inc by 40.96%. The purchase prices were between $35.59 and $39.41, with an estimated average price of $37.59. The stock is now traded at around $36.23. The impact to the portfolio due to this purchase was 0.95%. The holdings were 831,806 shares as of 2017-09-30.
Added: Pfizer Inc ( PFE )
Sabal Trust CO added to the holdings in Pfizer Inc by 34.18%. The purchase prices were between $32.67 and $35.99, with an estimated average price of $33.88. The stock is now traded at around $36.20. The impact to the portfolio due to this purchase was 0.86%. The holdings were 950,160 shares as of 2017-09-30.
Added: Enbridge Inc ( ENB )
Sabal Trust CO added to the holdings in Enbridge Inc by 28.91%. The purchase prices were between $39.13 and $41.9, with an estimated average price of $40.64. The stock is now traded at around $41.30. The impact to the portfolio due to this purchase was 0.73%. The holdings were 780,734 shares as of 2017-09-30.
Added: Chevron Corp (CVX)
Sabal Trust CO added to the holdings in Chevron Corp by 24.19%. The purchase prices were between $103.04 and $117.99, with an estimated average price of $109.11. The stock is now traded at around $120.22. The impact to the portfolio due to this purchase was 0.05%. The holdings were 22,066 shares as of 2017-09-30.
Sold Out: Allergan PLC (AGN)
Sabal Trust CO sold out the holdings in Allergan PLC. The sale prices were between $99.1 and $103.22, with an estimated average price of $101.43.
Sold Out: American Express Co (AXP)
Sabal Trust CO sold out the holdings in American Express Co. The sale prices were between $107.79 and $120.09, with an estimated average price of $113.65.
Sold Out: Equifax Inc (EFX)
Sabal Trust CO sold out the holdings in Equifax Inc. The sale prices were between $92.98 and $146.26, with an estimated average price of $132.47.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Sabal Trust CO sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Ford Motor Co (F)
Sabal Trust CO sold out the holdings in Ford Motor Co. The sale prices were between $109.55 and $123.71, with an estimated average price of $117.64.
Sold Out: Fidelity National Information Services Inc (FIS)
Sabal Trust CO sold out the holdings in Fidelity National Information Services Inc. The sale prices were between $85.45 and $93.54, with an estimated average price of $90.8.
Reduced: General Electric Co (GE)
Sabal Trust CO reduced to the holdings in General Electric Co by 93.27%. The sale prices were between $23.72 and $27.45, with an estimated average price of $25.26. The stock is now traded at around $23.19. The impact to the portfolio due to this sale was -2.86%. Sabal Trust CO still held 72,802 shares as of 2017-09-30.
Reduced: Sonoco Products Co (SON)
Sabal Trust CO reduced to the holdings in Sonoco Products Co by 98.94%. The sale prices were between $47.15 and $53.09, with an estimated average price of $49.3. The stock is now traded at around $51.40. The impact to the portfolio due to this sale was -2.44%. Sabal Trust CO still held 4,852 shares as of 2017-09-30.
Reduced: Sysco Corp (SYY)
Sabal Trust CO reduced to the holdings in Sysco Corp by 96.89%. The sale prices were between $49.11 and $54.39, with an estimated average price of $51.98. The stock is now traded at around $54.83. The impact to the portfolio due to this sale was -2.32%. Sabal Trust CO still held 14,008 shares as of 2017-09-30.
Reduced: Intel Corp (INTC)
Sabal Trust CO reduced to the holdings in Intel Corp by 95.37%. The sale prices were between $33.46 and $37.83, with an estimated average price of $35.47. The stock is now traded at around $39.79. The impact to the portfolio due to this sale was -2.16%. Sabal Trust CO still held 29,496 shares as of 2017-09-30.
Reduced: Apple Inc (AAPL)
Sabal Trust CO reduced to the holdings in Apple Inc by 42.01%. The sale prices were between $142.73 and $164.05, with an estimated average price of $155.13. The stock is now traded at around $160.47. The impact to the portfolio due to this sale was -1.41%. Sabal Trust CO still held 128,654 shares as of 2017-09-30.
Reduced: Johnson & Johnson (JNJ)
Sabal Trust CO reduced to the holdings in Johnson & Johnson by 20.3%. The sale prices were between $129.47 and $136.57, with an estimated average price of $132.54. The stock is now traded at around $140.79. The impact to the portfolio due to this sale was -0.83%. Sabal Trust CO still held 233,336 shares as of 2017-09-30.
Warning! GuruFocus has detected 7 Warning Signs with BMY. Click here to check it out.
BMY 15-Year Financial Data
The intrinsic value of BMY
Peter Lynch Chart of BMY
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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. | Sabal Trust CO New Purchases: UPS , HBI , CIU , PSA, MDT, CME, SBUX, UNP, TWX, UTX, Added Positions:BMY, T, PFE, ENB, GPC, XOM, CVS, QCOM, SO, CSCO, Reduced Positions:GE, SON, SYY, INTC, AAPL, JNJ, BA, ABBV, MSFT, MMM, Sold Out:AGN, AXP, EFX, DD, F, CRM, FIS, AAL, TIP, For the details of Sabal Trust CO's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Sabal+Trust+CO These are the top 5 holdings of Sabal Trust CO Procter & Gamble Co ( PG ) - 376,760 shares, 3.43% of the total portfolio. Shares added by 40.96% AbbVie Inc ( ABBV ) - 345,442 shares, 3.07% of the total portfolio. New Purchase: iShares Intermediate Credit Bond ETF (CIU) Sabal Trust CO initiated holdings in iShares Intermediate Credit Bond ETF. | Sabal Trust CO New Purchases: UPS , HBI , CIU , PSA, MDT, CME, SBUX, UNP, TWX, UTX, Added Positions:BMY, T, PFE, ENB, GPC, XOM, CVS, QCOM, SO, CSCO, Reduced Positions:GE, SON, SYY, INTC, AAPL, JNJ, BA, ABBV, MSFT, MMM, Sold Out:AGN, AXP, EFX, DD, F, CRM, FIS, AAL, TIP, For the details of Sabal Trust CO's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Sabal+Trust+CO These are the top 5 holdings of Sabal Trust CO Procter & Gamble Co ( PG ) - 376,760 shares, 3.43% of the total portfolio. Shares added by 40.96% AbbVie Inc ( ABBV ) - 345,442 shares, 3.07% of the total portfolio. Shares reduced by 9.95% New Purchase: United Parcel Service Inc (UPS) Sabal Trust CO initiated holdings in United Parcel Service Inc. | Sabal Trust CO New Purchases: UPS , HBI , CIU , PSA, MDT, CME, SBUX, UNP, TWX, UTX, Added Positions:BMY, T, PFE, ENB, GPC, XOM, CVS, QCOM, SO, CSCO, Reduced Positions:GE, SON, SYY, INTC, AAPL, JNJ, BA, ABBV, MSFT, MMM, Sold Out:AGN, AXP, EFX, DD, F, CRM, FIS, AAL, TIP, For the details of Sabal Trust CO's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Sabal+Trust+CO These are the top 5 holdings of Sabal Trust CO Procter & Gamble Co ( PG ) - 376,760 shares, 3.43% of the total portfolio. Shares added by 40.96% AbbVie Inc ( ABBV ) - 345,442 shares, 3.07% of the total portfolio. Shares reduced by 9.95% New Purchase: United Parcel Service Inc (UPS) Sabal Trust CO initiated holdings in United Parcel Service Inc. | Sabal Trust CO New Purchases: UPS , HBI , CIU , PSA, MDT, CME, SBUX, UNP, TWX, UTX, Added Positions:BMY, T, PFE, ENB, GPC, XOM, CVS, QCOM, SO, CSCO, Reduced Positions:GE, SON, SYY, INTC, AAPL, JNJ, BA, ABBV, MSFT, MMM, Sold Out:AGN, AXP, EFX, DD, F, CRM, FIS, AAL, TIP, For the details of Sabal Trust CO's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Sabal+Trust+CO These are the top 5 holdings of Sabal Trust CO Procter & Gamble Co ( PG ) - 376,760 shares, 3.43% of the total portfolio. Shares added by 40.96% AbbVie Inc ( ABBV ) - 345,442 shares, 3.07% of the total portfolio. Shares added by 2.88% Pfizer Inc ( PFE ) - 950,160 shares, 3.39% of the total portfolio. |
25921.0 | 2017-10-16 00:00:00 UTC | CHICAGO TRUST Co NA Buys Discover Financial Services, Dominion Energy Inc, DowDuPont Inc, Sells ... | ABBV | https://www.nasdaq.com/articles/chicago-trust-co-na-buys-discover-financial-services-dominion-energy-inc-dowdupont-inc | nan | nan | CHICAGO TRUST Co NA
New Purchases: DFS , DWDP , ITW , AMZN, ENB, KORS, THR, UBNT,
Added Positions:D, HOG, MET, MCK, VZ, XOM, MDLZ, GOOG, T, ETN,
Reduced Positions:WFC, DUK, ACN, MO, MSFT, AMGN, AET, SHW, AMP, CI,
Sold Out:DD, AHL, LQ, SCSC, JLL, NWL, BW, RSYS,
For the details of CHICAGO TRUST Co NA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CHICAGO+TRUST+Co+NA
These are the top 5 holdings of CHICAGO TRUST Co NA
Apple Inc ( AAPL ) - 51,659 shares, 3.65% of the total portfolio. Shares added by 1.94%
AbbVie Inc ( ABBV ) - 86,041 shares, 3.51% of the total portfolio. Shares added by 1.33%
Microsoft Corp ( MSFT ) - 78,857 shares, 2.7% of the total portfolio. Shares reduced by 8.66%
Abbott Laboratories ( ABT ) - 108,584 shares, 2.66% of the total portfolio. Shares reduced by 1.09%
Exxon Mobil Corp ( XOM ) - 70,213 shares, 2.64% of the total portfolio. Shares added by 7.30%
New Purchase: Discover Financial Services (DFS)
CHICAGO TRUST Co NA initiated holdings in Discover Financial Services. The purchase prices were between $57.66 and $64.36, with an estimated average price of $60.6. The stock is now traded at around $64.48. The impact to the portfolio due to this purchase was 0.94%. The holdings were 31,717 shares as of 2017-09-30.
New Purchase: DowDuPont Inc (DWDP)
CHICAGO TRUST Co NA initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.20. The impact to the portfolio due to this purchase was 0.45%. The holdings were 14,008 shares as of 2017-09-30.
New Purchase: Illinois Tool Works Inc (ITW)
CHICAGO TRUST Co NA initiated holdings in Illinois Tool Works Inc. The purchase prices were between $135.6 and $148, with an estimated average price of $142.14. The stock is now traded at around $153.27. The impact to the portfolio due to this purchase was 0.18%. The holdings were 2,669 shares as of 2017-09-30.
New Purchase: Amazon.com Inc (AMZN)
CHICAGO TRUST Co NA initiated holdings in Amazon.com Inc. The purchase prices were between $938.6 and $1052.8, with an estimated average price of $981.92. The stock is now traded at around $1002.05. The impact to the portfolio due to this purchase was 0.13%. The holdings were 288 shares as of 2017-09-30.
New Purchase: Enbridge Inc (ENB)
CHICAGO TRUST Co NA initiated holdings in Enbridge Inc. The purchase prices were between $39.13 and $41.9, with an estimated average price of $40.64. The stock is now traded at around $41.39. The impact to the portfolio due to this purchase was 0.11%. The holdings were 5,536 shares as of 2017-09-30.
New Purchase: Michael Kors Holdings Ltd (KORS)
CHICAGO TRUST Co NA initiated holdings in Michael Kors Holdings Ltd. The purchase prices were between $33.25 and $48.55, with an estimated average price of $40.6. The stock is now traded at around $48.12. The impact to the portfolio due to this purchase was 0.11%. The holdings were 5,000 shares as of 2017-09-30.
Added: Dominion Energy Inc (D)
CHICAGO TRUST Co NA added to the holdings in Dominion Energy Inc by 605.07%. The purchase prices were between $75.6 and $80.24, with an estimated average price of $77.75. The stock is now traded at around $78.53. The impact to the portfolio due to this purchase was 0.76%. The holdings were 24,889 shares as of 2017-09-30.
Added: Harley-Davidson Inc (HOG)
CHICAGO TRUST Co NA added to the holdings in Harley-Davidson Inc by 27.77%. The purchase prices were between $45.93 and $54.83, with an estimated average price of $48.75. The stock is now traded at around $46.43. The impact to the portfolio due to this purchase was 0.27%. The holdings were 57,038 shares as of 2017-09-30.
Added: MetLife Inc (MET)
CHICAGO TRUST Co NA added to the holdings in MetLife Inc by 37.83%. The purchase prices were between $46.68 and $51.95, with an estimated average price of $48.71. The stock is now traded at around $52.91. The impact to the portfolio due to this purchase was 0.25%. The holdings were 38,071 shares as of 2017-09-30.
Added: McKesson Corp (MCK)
CHICAGO TRUST Co NA added to the holdings in McKesson Corp by 33.13%. The purchase prices were between $146 and $168.12, with an estimated average price of $156.11. The stock is now traded at around $146.90. The impact to the portfolio due to this purchase was 0.21%. The holdings were 12,099 shares as of 2017-09-30.
Added: Verizon Communications Inc (VZ)
CHICAGO TRUST Co NA added to the holdings in Verizon Communications Inc by 27.13%. The purchase prices were between $42.89 and $49.9, with an estimated average price of $47.03. The stock is now traded at around $48.09. The impact to the portfolio due to this purchase was 0.2%. The holdings were 41,582 shares as of 2017-09-30.
Added: Mondelez International Inc (MDLZ)
CHICAGO TRUST Co NA added to the holdings in Mondelez International Inc by 22.09%. The purchase prices were between $40.05 and $44.24, with an estimated average price of $42.5. The stock is now traded at around $41.68. The impact to the portfolio due to this purchase was 0.16%. The holdings were 46,753 shares as of 2017-09-30.
Sold Out: E.I. du Pont de Nemours & Co (DD)
CHICAGO TRUST Co NA sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Aspen Insurance Holdings Ltd (AHL)
CHICAGO TRUST Co NA sold out the holdings in Aspen Insurance Holdings Ltd. The sale prices were between $36.45 and $51.75, with an estimated average price of $46.4.
Sold Out: ScanSource Inc (SCSC)
CHICAGO TRUST Co NA sold out the holdings in ScanSource Inc. The sale prices were between $36.55 and $44.2, with an estimated average price of $39.27.
Sold Out: La Quinta Holdings Inc (LQ)
CHICAGO TRUST Co NA sold out the holdings in La Quinta Holdings Inc. The sale prices were between $14.38 and $17.63, with an estimated average price of $15.5.
Sold Out: Jones Lang LaSalle Inc (JLL)
CHICAGO TRUST Co NA sold out the holdings in Jones Lang LaSalle Inc. The sale prices were between $116.7 and $132.87, with an estimated average price of $123.66.
Sold Out: Newell Brands Inc (NWL)
CHICAGO TRUST Co NA sold out the holdings in Newell Brands Inc. The sale prices were between $40.96 and $53.9, with an estimated average price of $48.97.
Reduced: Wells Fargo & Co (WFC)
CHICAGO TRUST Co NA reduced to the holdings in Wells Fargo & Co by 48.64%. The sale prices were between $49.58 and $55.78, with an estimated average price of $53.16. The stock is now traded at around $53.48. The impact to the portfolio due to this sale was -0.77%. CHICAGO TRUST Co NA still held 30,209 shares as of 2017-09-30.
Reduced: Duke Energy Corp (DUK)
CHICAGO TRUST Co NA reduced to the holdings in Duke Energy Corp by 61.57%. The sale prices were between $83.18 and $88.34, with an estimated average price of $85.61. The stock is now traded at around $86.52. The impact to the portfolio due to this sale was -0.52%. CHICAGO TRUST Co NA still held 8,064 shares as of 2017-09-30.
Reduced: Accenture PLC (ACN)
CHICAGO TRUST Co NA reduced to the holdings in Accenture PLC by 55.83%. The sale prices were between $122.94 and $138.16, with an estimated average price of $130.19. The stock is now traded at around $138.60. The impact to the portfolio due to this sale was -0.41%. CHICAGO TRUST Co NA still held 5,458 shares as of 2017-09-30.
Reduced: Altria Group Inc (MO)
CHICAGO TRUST Co NA reduced to the holdings in Altria Group Inc by 33.28%. The sale prices were between $61.22 and $74.61, with an estimated average price of $66.73. The stock is now traded at around $65.16. The impact to the portfolio due to this sale was -0.33%. CHICAGO TRUST Co NA still held 18,088 shares as of 2017-09-30.
Reduced: Sherwin-Williams Co (SHW)
CHICAGO TRUST Co NA reduced to the holdings in Sherwin-Williams Co by 24.41%. The sale prices were between $328.97 and $359.72, with an estimated average price of $344.34. The stock is now traded at around $383.11. The impact to the portfolio due to this sale was -0.17%. CHICAGO TRUST Co NA still held 3,096 shares as of 2017-09-30.
Reduced: Cigna Corp (CI)
CHICAGO TRUST Co NA reduced to the holdings in Cigna Corp by 39.94%. The sale prices were between $167.5 and $187.62, with an estimated average price of $177.97. The stock is now traded at around $184.73. The impact to the portfolio due to this sale was -0.11%. CHICAGO TRUST Co NA still held 1,958 shares as of 2017-09-30.
Warning! GuruFocus has detected 5 Warning Signs with D. Click here to check it out.
D 15-Year Financial Data
The intrinsic value of D
Peter Lynch Chart of D
Premium Members
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares added by 1.94% AbbVie Inc ( ABBV ) - 86,041 shares, 3.51% of the total portfolio. CHICAGO TRUST Co NA New Purchases: DFS , DWDP , ITW , AMZN, ENB, KORS, THR, UBNT, Added Positions:D, HOG, MET, MCK, VZ, XOM, MDLZ, GOOG, T, ETN, Reduced Positions:WFC, DUK, ACN, MO, MSFT, AMGN, AET, SHW, AMP, CI, Sold Out:DD, AHL, LQ, SCSC, JLL, NWL, BW, RSYS, For the details of CHICAGO TRUST Co NA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CHICAGO+TRUST+Co+NA These are the top 5 holdings of CHICAGO TRUST Co NA Apple Inc ( AAPL ) - 51,659 shares, 3.65% of the total portfolio. du Pont de Nemours & Co (DD) CHICAGO TRUST Co NA sold out the holdings in E.I. | Shares added by 1.94% AbbVie Inc ( ABBV ) - 86,041 shares, 3.51% of the total portfolio. CHICAGO TRUST Co NA New Purchases: DFS , DWDP , ITW , AMZN, ENB, KORS, THR, UBNT, Added Positions:D, HOG, MET, MCK, VZ, XOM, MDLZ, GOOG, T, ETN, Reduced Positions:WFC, DUK, ACN, MO, MSFT, AMGN, AET, SHW, AMP, CI, Sold Out:DD, AHL, LQ, SCSC, JLL, NWL, BW, RSYS, For the details of CHICAGO TRUST Co NA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CHICAGO+TRUST+Co+NA These are the top 5 holdings of CHICAGO TRUST Co NA Apple Inc ( AAPL ) - 51,659 shares, 3.65% of the total portfolio. Shares added by 7.30% New Purchase: Discover Financial Services (DFS) CHICAGO TRUST Co NA initiated holdings in Discover Financial Services. | Shares added by 1.94% AbbVie Inc ( ABBV ) - 86,041 shares, 3.51% of the total portfolio. CHICAGO TRUST Co NA New Purchases: DFS , DWDP , ITW , AMZN, ENB, KORS, THR, UBNT, Added Positions:D, HOG, MET, MCK, VZ, XOM, MDLZ, GOOG, T, ETN, Reduced Positions:WFC, DUK, ACN, MO, MSFT, AMGN, AET, SHW, AMP, CI, Sold Out:DD, AHL, LQ, SCSC, JLL, NWL, BW, RSYS, For the details of CHICAGO TRUST Co NA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CHICAGO+TRUST+Co+NA These are the top 5 holdings of CHICAGO TRUST Co NA Apple Inc ( AAPL ) - 51,659 shares, 3.65% of the total portfolio. New Purchase: Michael Kors Holdings Ltd (KORS) CHICAGO TRUST Co NA initiated holdings in Michael Kors Holdings Ltd. | Shares added by 1.94% AbbVie Inc ( ABBV ) - 86,041 shares, 3.51% of the total portfolio. CHICAGO TRUST Co NA New Purchases: DFS , DWDP , ITW , AMZN, ENB, KORS, THR, UBNT, Added Positions:D, HOG, MET, MCK, VZ, XOM, MDLZ, GOOG, T, ETN, Reduced Positions:WFC, DUK, ACN, MO, MSFT, AMGN, AET, SHW, AMP, CI, Sold Out:DD, AHL, LQ, SCSC, JLL, NWL, BW, RSYS, For the details of CHICAGO TRUST Co NA's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CHICAGO+TRUST+Co+NA These are the top 5 holdings of CHICAGO TRUST Co NA Apple Inc ( AAPL ) - 51,659 shares, 3.65% of the total portfolio. New Purchase: Amazon.com Inc (AMZN) CHICAGO TRUST Co NA initiated holdings in Amazon.com Inc. |
25922.0 | 2017-10-16 00:00:00 UTC | Regeneron Advances Science To Attack Arthritis, Eye Disease, More | ABBV | https://www.nasdaq.com/articles/regeneron-advances-science-attack-arthritis-eye-disease-more-2017-10-16 | nan | nan | Its treatment for a common eye disease made Regeneron Pharmaceuticals a star. Now, a new dermatitis medication could bring superstardom to the fast-growing biotechnology company.
[ibd-display-video id=2326965 width=50 float=left autostart=true]Other breakthrough Regeneron ( REGN ) drugs treat arthritis and cholesterol, and the company is developing promising asthma and cancer treatments. Those are just some of the reasons that Investor's Business Daily named Regeneron a winner in the inaugural IBD Biotech Innovator Awards .
Regeneron's financials back up the optimism. Earnings per share minus various items shot up 39% to $11.32 last year, impressive for a company that posted losses until 2012. Revenue has skyrocketed more than tenfold since 2011, to $4.86 billion last year.
"Regeneron has been a fantastically successful company and story," said Piper Jaffray analyst Edward Tenthoff.
Tenthoff began covering the company in 2007, "when the stock was $14 and change." Now, he estimates 2017 total revenue of $5.68 billion and EPS of $14.38 a share, rising to $6.43 billion and $16.01 in 2018.
How IBD Chose The Biotech Innovator Award Winners:IBD asked equity analysts, ETF and mutual fund managers, and university professors to identify the top biotech companies based on their innovative research. We asked them to focus on companies with pioneering drugs likely to launch in the next several years and reach blockbuster, or near-blockbuster, sales of $1 billion or more a year. The award winners selected by IBD editors are the six most-cited companies. To find profiles of all the award winners and details of their work, go to our full Biotech Innovators special report .)
Even in 2007, Regeneron stock was rolling, having traded below 11 as recently as 2006. A meteoric decade-plus found shares peaking above 600 in August 2015. The stock hit a 20-month high of 543 in June but now trades near 445 after taking a hit from potential competition in eczema from AbbVie ( ABBV ). Tenthoff's price target is 557.
Regeneron's ascent began in 2011 with the approval of its drug Eylea, which treats a disease called wet-eye age-related macular degeneration, the major cause of blindness in the elderly.
A relationship with French drug giant Sanofi ( SNY ), a suite of key development tools, and a focus on pure science have enabled Regeneron to grow into a biotech titan.
Its future? A family of antibody drugs, some that can be used to treat a number of common diseases and thus address multibillion-dollar markets.
All humans have antibodies, proteins that fight disease. Antibody drugs are proteins manufactured to fight specific diseases.
'Purest Scientific Company' In Biotech
Science is at the heart of Regeneron's corporate culture and success, according to analysts and company executives.
"They've taken on the mantle of the purest scientific company in the industry," said Geoffrey Porges, an analyst with Leerink Partners. "They pride themselves on the rigor of their scientific enquiry."
He rates the stock outperform, or buy, with a price target of 511.
Porges says Regeneron's commitment to its research and development is "virtually unique in the industry ."
In 2016, Regeneron spent $2.052 billion on R&D, 42% of its total revenue. That's well above the norm. The 10 largest pharma companies averaged 17% of revenue for R&D last year, according to an April report by the online newsletter Fierce Biotech.
Tarrytown, N.Y.-based Regeneron has had help funding R&D thanks to relationships with other companies, including a 10-year relationship with Sanofi.
Regeneron and Sanofi have agreements for the ongoing development of immunotherapy cancer drugs. But their agreement for antibody drug development and licensing will terminate at the end of 2017. Under that pact, Regeneron got R&D funding and Sanofi certain licensing rights. The end of that pact poses no problems, say analysts and a Regeneron executive.
Regeneron has become "so big that they really don't need Sanofi," analyst Tenthoff said. "They can make the discoveries on their own and commercialize them."
True, says Regeneron.
"We have become a very self-sufficient end-to-end R&D house," David Weinreich, Regeneron's senior vice president of global clinical development, told IBD. "We are self-reliant on our own income stream such that we don't need the Sanofi contribution to research."
He says the termination of this Sanofi pact will enable Regeneron to set up "more partnerships" where it makes sense.
Manipulating Mouse DNA
Weinreich cites the company's development platform, built internally, as key to enabling it to rapidly identify therapies.
Two of Regeneron's key drug-development tools are VelociGene and VelocImmune. The first aims for rapid, automated manipulation of mouse DNA to speed up the modeling of human disease. The other aims to help identify a multitude of optimized antibody drug candidates efficiently and directly from immunized mice.
"This technology allows us to very quickly screen through lots of antibodies and find ones that have the characteristics we want," said Weinreich.
"We're not a huge company in terms of overall size," he said. "But these technologies allow us to go after a large number of targets simultaneously. And that's how you wind up with 16 drugs in the development portfolio."
Regeneron's science focus helps it attract top talent, he says.
"We live our motto that the science comes first. … There are not many places out there like us," said Weinreich. "Our scientists can take novel study approaches."
IBD'S TAKE:Industry Snapshotgives an in-depth look at some of the most popular industries, including this recent look at a rise in medtech and decline in pharma.
Regeneron grants every employee stock options, he says, so all employees can share in the company's success.
Regeneron takes on some of the biggest drugmakers, including Roche Holding ( RHHBY ), Novartis ( NVS ) and Amgen (AMGN).
In August, the company reported a 21% jump in Q2 revenue, to a record $1.47 billion. Earnings per share minus items rose 48% to $4.17. Analysts polled by Zachs called for $3.18.
For Q3, analysts polled by Zachs are calling for EPS of $3.79, up 21% from the year-earlier quarter.
Eylea Now, Dupixent Soon
Eylea continues to drive financials, and its Q2 sales beat Wall Street views. Tenthoff says U.S. sales could end the year up 10%, at $3.65 billion. He sees Eylea's U.S. sales rising 5.5% in 2018, to $3.85 billion.
Eylea is sold by both Regeneron and its partner on the drug, German drug giant Bayer (BAYRY). Regeneron has exclusive rights to U.S. sales of Eylea. Bayer has exclusive marketing rights outside the U.S. The companies share equally in the profits from sales of Eylea, except in Japan where Regeneron receives a royalty on net sales.
But while Eylea is the present, many industry observers say Dupixent is the future. It is being sold to treat atopic dermatitis in the U.S., after gaining FDA approval in March.
Now, Regeneron seeks EU approval for this treatment - but its hopes for the drug go much further.
"(Dupixent) has potential in a number of other diseases," said Weinreich. It could be used to treat asthma, nasal polyps, multiple allergies (including peanut allergies), esophageal inflammation and more.
"This drug could very well be a pipeline unto itself," Weinreich said.
Regeneron is conducting Phase 3 trials of Dupixent to treat asthma and could seek FDA approval next year.
"Dupixent could be as big as, if not bigger, than Eylea," said analyst Tenthoff, who rates Regeneron stock overweight, or buy.
Just as a treatment for asthma alone, annual global sales "could be $5 billion," he said.
If Dupixent does well in the asthma study, it could be "one of the most notable new drugs" this year, Amy Brown, of research firm Evaluate Pharma, wrote in an August report.
Others, though, temper their enthusiasm.
"Dupixent is a big drug … but people have come to overvalue it," said Brian Skorney, an analyst at Baird Equity Research. Skorney downgraded Regeneron to underperform from neutral in August.
Kevzara Targets Arthritis
Regeneron has other potential drug hits. This year, the FDA approved its drug Kevzara for treating rheumatoid arthritis. RA affects 1.3 million Americans, according to the Arthritis Foundation and American College of Rheumatology.
Another Regeneron drug, Praulent, is used to treat high levels of bad cholesterol. But Amgen has sued, saying the drug violates patents for Amgen's competing drug, Repatha. For a time, an injunction prevented Regeneron from selling Praulent. But the injunction was stayed. A ruling on the lawsuit could come soon.
Skorney says that "if Praulent were pulled from market, that would still be a surprise to Wall Street."
Tenthoff is not worried, saying the lawsuit's risks are already baked into Regeneron's stock price.
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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 hit a 20-month high of 543 in June but now trades near 445 after taking a hit from potential competition in eczema from AbbVie ( ABBV ). Regeneron's ascent began in 2011 with the approval of its drug Eylea, which treats a disease called wet-eye age-related macular degeneration, the major cause of blindness in the elderly. A relationship with French drug giant Sanofi ( SNY ), a suite of key development tools, and a focus on pure science have enabled Regeneron to grow into a biotech titan. | The stock hit a 20-month high of 543 in June but now trades near 445 after taking a hit from potential competition in eczema from AbbVie ( ABBV ). [ibd-display-video id=2326965 width=50 float=left autostart=true]Other breakthrough Regeneron ( REGN ) drugs treat arthritis and cholesterol, and the company is developing promising asthma and cancer treatments. How IBD Chose The Biotech Innovator Award Winners:IBD asked equity analysts, ETF and mutual fund managers, and university professors to identify the top biotech companies based on their innovative research. | The stock hit a 20-month high of 543 in June but now trades near 445 after taking a hit from potential competition in eczema from AbbVie ( ABBV ). [ibd-display-video id=2326965 width=50 float=left autostart=true]Other breakthrough Regeneron ( REGN ) drugs treat arthritis and cholesterol, and the company is developing promising asthma and cancer treatments. 'Purest Scientific Company' In Biotech Science is at the heart of Regeneron's corporate culture and success, according to analysts and company executives. | The stock hit a 20-month high of 543 in June but now trades near 445 after taking a hit from potential competition in eczema from AbbVie ( ABBV ). A relationship with French drug giant Sanofi ( SNY ), a suite of key development tools, and a focus on pure science have enabled Regeneron to grow into a biotech titan. Regeneron has become "so big that they really don't need Sanofi," analyst Tenthoff said. |
25923.0 | 2017-10-14 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Merck | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-merck-2017-10-14 | nan | nan | Leader and laggard.
That's what you have with AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) stocks, at least so far in 2017. AbbVie is enjoying one of its best years ever, with shares soaring more than 45%. Meanwhile, Merck stock is up by a single-digit percentage year to date, well below the performance for the S&P 500 index.
Investors know, however, that the past isn't nearly as important as the future. Which of these big pharma stocks is the better choice looking ahead? Here are the arguments for AbbVie and Merck.
The case for AbbVie
You might say the investing thesis for AbbVie is as simple as H-I-J: Humira, Imbruvica, and just about any of of its pipeline candidates. Humira, of course, is not only AbbVie's top-selling drug; it's also the best-selling drug in the world. And sales continue to climb, with AbbVie reporting revenue from Humira of $8.8 billion in the first half of 2017, up 14% from the prior-year period.
There have been worries that Humira could face competition from biosimilars. Amgen (NASDAQ: AMGN) won U.S. approval for Amjevita, its biosimilar to Humira, last year. That's not as much of an issue any more, though. AbbVie and Amgen were all set to fight in court, but the companies reached a settlement . Amgen won't market Amjevita in the U.S. until 2023 and will hold off on marketing the biosimilar in Europe until October 2018. Plus, AbbVie will receive royalties on all sales of Amjevita.
While Humira remains AbbVie's biggest seller, Imbruvica claims the top spot for sales growth. In the first two quarters of 2017, the cancer drug generated revenue of nearly $1.2 billion -- a whopping 43% year-over-year jump. With additional indications potentially on the way, Imbruvica appears to be set for solid momentum for years to come.
Then there's the pipeline. AbbVie's pipeline ranks among the best in the big pharma industry . A couple of really promising candidates especially stand out. Rova-T could become another megablockbuster in oncology for AbbVie. Upadicitinib could potentially follow in Humira's footsteps in the autoimmune disease space.
One other thing to like about AbbVie (although it doesn't begin with H, I, or J) is the great dividend. AbbVie's dividend currently yields around 2.8%. The company has an outstanding track record of dividend increases and has the ability to boost the dividend more in the future.
The case for Merck
Much of Merck's appeal for investors is tied to its superstar immunotherapy, Keytruda. The cancer drug made nearly $1.5 billion in the first half of 2017, up 160% over the prior-year period. That's just the start for Keytruda, though. Although the drug has already racked up regulatory approvals for several types of cancer, Merck is evaluating Keytruda in late-stage studies for more than half a dozen other cancer indications. Keytruda should be on track to become the third best-selling cancer drug in the world by 2022 , with projected annual sales of $9.5 billion.
The greatest strength for Merck outside of Keytruda is with its vaccines. Sales for HPV vaccine Gardasil jumped 30% year over year in the first six months of this year to a little over $1 billion. Several other Merck vaccines have generated solid growth as well, particularly pneumococcal vaccine Pneumovax 23 and shingles vaccine Zostavax.
Merck has also enjoyed strong growth for its hepatitis C virus (HCV) drug Zepatier, which made nearly $900 million in the first two quarters of this year. However, the company faces intense competition in the HCV arena. Merck recently chose to discontinue development of two experimental HCV drugs that were in phase 2 testing, in large part because of "consideration of the evolving marketplace and the growing number of treatment options available."
While AbbVie's dividend yield is appealing, Merck's yield of 2.85% is actually a little higher right now. The big pharma company is admittedly shelling out slightly more in dividend payments than it's earning, but there don't appear to be any reasons for investors to worry about Merck's dividend.
Better buy
In my view, this one's a no-brainer. AbbVie is the better pick. Merck certainly has a winner with Keytruda and its vaccines, but practically every other product in the company's current lineup faces challenges. And aside from Keytruda, Merck's pipeline isn't very strong. The company recently threw in the towel on late-stage candidate anacetrapib in treating cardiovascular disease.
AbbVie, meanwhile, appears to be in solid position for growth. I expect the company to raise its dividend again soon, which should push AbbVie ahead of Merck in that area also. Overall, AbbVie is a good pick for long-term investors on multiple fronts. I think it will remain the leader, while Merck remains the laggard.
10 stocks we like better than AbbVie
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Keith Speights owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That's what you have with AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) stocks, at least so far in 2017. AbbVie is enjoying one of its best years ever, with shares soaring more than 45%. Here are the arguments for AbbVie and Merck. | While AbbVie's dividend yield is appealing, Merck's yield of 2.85% is actually a little higher right now. That's what you have with AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) stocks, at least so far in 2017. AbbVie is enjoying one of its best years ever, with shares soaring more than 45%. | That's what you have with AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) stocks, at least so far in 2017. The case for AbbVie You might say the investing thesis for AbbVie is as simple as H-I-J: Humira, Imbruvica, and just about any of of its pipeline candidates. I expect the company to raise its dividend again soon, which should push AbbVie ahead of Merck in that area also. | That's what you have with AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) stocks, at least so far in 2017. AbbVie is enjoying one of its best years ever, with shares soaring more than 45%. Here are the arguments for AbbVie and Merck. |
25924.0 | 2017-10-13 00:00:00 UTC | Why 2017 Could Be This Stock's Best Year Yet | ABBV | https://www.nasdaq.com/articles/why-2017-could-be-stocks-best-year-yet-2017-10-13 | nan | nan | Nearly five years ago, Abbott Labs spun off its biopharmaceutical unit into a separate entity. That new company, AbbVie (NYSE: ABBV) , enjoyed a tremendous first year, with its share price soaring more than 50% in 2013. However, the following years weren't as great for AbbVie. Until now.
Granted, AbbVie stock isn't up more than 50% year to date at this point. But it's really close to that level. And there's plenty of time remaining in the year. Here's why 2017 could be the stocks's best year yet.
Humongous wins for Humira
It's been a great year for Humira. AbbVie's blockbuster autoimmune disease drug appears to be on track to once again reign as the top-selling prescription drug in the world. In the first half of 2017, Humira generated sales totaling more than $8.8 billion. That's up 14% from the prior-year period.
AbbVie remains heavily dependent on this one drug, with Humira accounting for roughly 64% of the company's total revenue. This reliance on Humira has concerned some investors, especially after Amgen (NASDAQ: AMGN) gained approval from the U.S. Food and Drug Administration for its biosimilar to Humira, Amjevita, last year.
Any worries have been largely dismissed now, however, thanks to a deal announced by AbbVie at the end of September. Amgen agreed to hold off on marketing Amjevita in the U.S. until Jan. 31, 2023, and will launch its biosimilar in Europe on Oct. 16, 2018. The biotech acknowledged AbbVie's intellectual property rights to Humira and will pay royalties to AbbVie on all sales of Amjevita.
That's huge news for AbbVie. The deal clears the deck for Humira to keep on rocking in the U.S., where around two-thirds of the drug's sales are made. While there are other companies trying to get their biosimilars on the U.S. market, the agreement with Amgen makes it much more likely that AbbVie will be able to protect Humira for a few more years.
Rapid rise for Imbruvica
While Humira is AbbVie's top-selling drug, it can't claim the fastest sales growth. That honor belongs to Imbruvica. The cancer drug made nearly $1.2 billion in the first half of 2017 for AbbVie. That represents year-over-year growth of more than 43%.
Market research firm EvaluatePharma believes that Imbruvica will rank as the No. 4 cancer drug in terms of sales by 2022, with annual revenue of $7.5 billion. This estimate includes the five indications for which Imruvica is already approved, plus prospects of gaining approval for three additional indications for which the drug is being evaluated in late-stage studies.
AbbVie won't make all of that money, since it partners with Johnson & Johnson on Imbruvica. However, the split between the two companies is close to 60-40, with AbbVie receiving the higher share of sales. If the EvaluatePharma projection becomes reality, AbbVie could be looking at nearly doubling its revenue from Imbruvica in the next five years.
Percolating pipeline
AbbVie's good news in 2017 hasn't been limited to its current product lineup. The company has also enjoyed several positive developments with its pipeline.
Probably the most important is winning FDA approval in August for hepatitis C virus (HCV) drug Mavyret. Although sales are steadily falling for AbbVie's first HCV drug, Viekira, Mavyret could be more successful. The drug is approved to treat all genotypes of HCV and is priced at a discount to current HCV therapies.
Another pipeline candidate could be on the way to getting a green light from the FDA. AbbVie submitted for approval of elagolix in treating endometriosis in September based on positive results from two late-stage studies. The drug is also being evaluated in late-state studies for the management of uterine fibroids.
In June, AbbVie announced positive results from a late-stage study evaluating experimental drug upadacitinib in treating rheumatoid arthritis. The company followed up with more good news in September from another late-stage study of the drug in treating the indication.
One negative -- sort of
Barring a stumble when the company reports its third-quarter results later this month, AbbVie appears to be solidly on track to turn in its best stock performance ever. There's only one negative: The dividend yield ain't what it used to be. Right now, AbbVie's dividend yields just north of 2.8%. For most of the past two years, the yield stood well above 3.25%.
That's not much to complain about, though. AbbVie hasn't cut its dividend; the company has raised the dividend every year since being spun off from Abbott Labs. The lower yield is simply a reflection of how much AbbVie stock has soared. That's the kind of "negative" that investors could get used to.
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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. | Rapid rise for Imbruvica While Humira is AbbVie's top-selling drug, it can't claim the fastest sales growth. In June, AbbVie announced positive results from a late-stage study evaluating experimental drug upadacitinib in treating rheumatoid arthritis. One negative -- sort of Barring a stumble when the company reports its third-quarter results later this month, AbbVie appears to be solidly on track to turn in its best stock performance ever. | Rapid rise for Imbruvica While Humira is AbbVie's top-selling drug, it can't claim the fastest sales growth. In June, AbbVie announced positive results from a late-stage study evaluating experimental drug upadacitinib in treating rheumatoid arthritis. That new company, AbbVie (NYSE: ABBV) , enjoyed a tremendous first year, with its share price soaring more than 50% in 2013. | The biotech acknowledged AbbVie's intellectual property rights to Humira and will pay royalties to AbbVie on all sales of Amjevita. While there are other companies trying to get their biosimilars on the U.S. market, the agreement with Amgen makes it much more likely that AbbVie will be able to protect Humira for a few more years. Rapid rise for Imbruvica While Humira is AbbVie's top-selling drug, it can't claim the fastest sales growth. | Rapid rise for Imbruvica While Humira is AbbVie's top-selling drug, it can't claim the fastest sales growth. That new company, AbbVie (NYSE: ABBV) , enjoyed a tremendous first year, with its share price soaring more than 50% in 2013. However, the following years weren't as great for AbbVie. |
25925.0 | 2017-10-13 00:00:00 UTC | Spin-Off ETF: Can the Outperformance Continue? | ABBV | https://www.nasdaq.com/articles/spin-etf-can-outperformance-continue-2017-10-13 | nan | nan | Spin-off activities have stepped up lately, with biggies like Honeywell International HON and Pfizer PFE being the most active ones. Lately, the industrial giant Honeywell announced plans of spinning off its homes and global distribution units and its transportation systems unit into two publicly traded companies by 2018 end (read: 5 ETFs to Buy on 13-Year High Manufacturing Activity ).
On the other hand, Pfizer is exploring strategic alternatives to possibly bid good-bye to its Consumer Healthcare segment. A sale or spin-off of its consumer-health unit is expected next year. Pfizer's consumer sales have been essentially "flat for the past three years ."
This clearly explains why Pfizer intends to concentrate on the more promising, innovative pharmaceutical unit and separate it from Consumer Healthcare. The move also signifies the likely introduction of more deal-making, as per Wall Street Journal. However, the company also kept open chances of retaining the business .
Inside Spin-offs
Sometimes businesses form another autonomous entity from an existing business/division, when they believe that the separated line would add more value as an independent company. In such situations, the parent can focus on its core business management while the new entity can focus on its relative different goals.
How Profitable Spin-offs are to Investors?
According to Cantor Fitzgerald , "spinoffs completed between 2009 and 2013 outperformed the S&P 500 in their first year of trading by an average of more than 17 percent." As per an article published on benzinga , spun-off entities have been performing better than parent companies lately.
PayPal PYPL (up about 114%) generated higher gains than parent eBay EBAY (up about 56%) in the last two years (post spin-off). WhiteWave Foods CoWWAV gained about 67.8% in the last three years against an 11.2% decline in Dean Foods CoDF . WhiteWave Foods was spun off in May 2013. Abbot LaboratoriesABT cut ties with part of its business and formed a new company called AbbVie ABBV in Jan 2013. ABBV was up 85% while ABT gained 41% in the last three years (as of Oct 12, 2017).
What's Behind the Recent Surge in Spin-Off
A Chicago-based partner at The Boston Consulting Group recently commented that in a bull market, which we are witnessing currently, equities are overvalued. This makes materialization of mergers and acquisitions difficult. Instead, high valuations better justify " spinning off assets or divesting assets." If this logic holds good, we are likely to see more such actions in the coming days (read: 4 Bargain ETFs in a Pricey Market ).
Notably, the United States saw 88 completed spinoffs in 1999, which fell to 80 in 2000, when the dot-com bubble burst. The number further declined to 55 in 2001. The number of actions again rose from 24 in 2007 to 30 in 2008, before sliding to 17 in 2009 when the financial crisis kicked in, as per the data provided by Dealogic, quoted on CNBC. The momentum again gained momentum in 2015 by value, though 2016 and 2017 have been subdued.
ETFs to Play
There are always ways to play such corporate actions. Below we highlight two spin-off ETFs in detail. These ETFs can get further boost from Honeywell and Pfizer's announcements.
Guggenheim S&P Spin-Off ETF CSD
The 61-stock fund looks to track the S&P U.S. Spin-Off Index. Paypal Holdings (7.98%), Hewlett Packard Enterprise (7.85%) and Synchrony Financial (7.39%) are the top three holdings of the fund. CSD charges 65 bps in fees (read: PayPal's Strong Q2 Results Put These ETFs in Focus ).
VanEck Vectors Global Spin-Off ETF SPUN
The 95-stock fund follows the Horizon Kinetics Global Spin-Off Index, which is a rules-based, equal-weighted index intended to track the performance of listed, publicly held spin-offs that are domiciled and trade in the U.S. or developed markets of Western Europe and Asia. The net expense ratio of the fund is 0.55%. United States accounts for about 78.8% of the fund. Gannett Co (1.2%), Time Inc. (1.1%) and Timkensteel (1.1%) are top three stocks of the fund.
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eBay Inc. (EBAY): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Pfizer, Inc. (PFE): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
Dean Foods Company (DF): Free Stock Analysis Report
GUGG-SPIN-OFF (CSD): ETF Research Reports
VANECK-GLB S-O (SPUN): 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. | Abbot LaboratoriesABT cut ties with part of its business and formed a new company called AbbVie ABBV in Jan 2013. ABBV was up 85% while ABT gained 41% in the last three years (as of Oct 12, 2017). Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Dean Foods Company (DF): Free Stock Analysis Report GUGG-SPIN-OFF (CSD): ETF Research Reports VANECK-GLB S-O (SPUN): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Dean Foods Company (DF): Free Stock Analysis Report GUGG-SPIN-OFF (CSD): ETF Research Reports VANECK-GLB S-O (SPUN): ETF Research Reports To read this article on Zacks.com click here. Abbot LaboratoriesABT cut ties with part of its business and formed a new company called AbbVie ABBV in Jan 2013. ABBV was up 85% while ABT gained 41% in the last three years (as of Oct 12, 2017). | Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Dean Foods Company (DF): Free Stock Analysis Report GUGG-SPIN-OFF (CSD): ETF Research Reports VANECK-GLB S-O (SPUN): ETF Research Reports To read this article on Zacks.com click here. Abbot LaboratoriesABT cut ties with part of its business and formed a new company called AbbVie ABBV in Jan 2013. ABBV was up 85% while ABT gained 41% in the last three years (as of Oct 12, 2017). | Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Pfizer, Inc. (PFE): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Dean Foods Company (DF): Free Stock Analysis Report GUGG-SPIN-OFF (CSD): ETF Research Reports VANECK-GLB S-O (SPUN): ETF Research Reports To read this article on Zacks.com click here. Abbot LaboratoriesABT cut ties with part of its business and formed a new company called AbbVie ABBV in Jan 2013. ABBV was up 85% while ABT gained 41% in the last three years (as of Oct 12, 2017). |
25926.0 | 2017-10-13 00:00:00 UTC | Peavine Capital Management, Llc Buys Apple Inc | ABBV | https://www.nasdaq.com/articles/peavine-capital-management-llc-buys-apple-inc-2017-10-13 | nan | nan | Peavine Capital Management, Llc
New Purchases: AAPL ,
Added Positions: IEF ,
Reduced Positions: IVV , CVX,
For the details of PEAVINE CAPITAL MANAGEMENT, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PEAVINE+CAPITAL+MANAGEMENT%2C+LLC
These are the top 5 holdings of PEAVINE CAPITAL MANAGEMENT, LLC
SPDR S&P 500 ( SPY ) - 291,455 shares, 40.07% of the total portfolio. Shares added by 0.42%
iShares 7-10 Year Treasury Bond ETF ( IEF ) - 525,978 shares, 30.66% of the total portfolio. Shares added by 1.77%
iShares MSCI EAFE ( EFA ) - 582,823 shares, 21.84% of the total portfolio. Shares added by 0.38%
Western Alliance Bancorp ( WAL ) - 124,542 shares, 3.62% of the total portfolio.
AbbVie Inc ( ABBV ) - 21,600 shares, 1.05% of the total portfolio.
New Purchase: Apple Inc (AAPL)
Peavine Capital Management, Llc initiated holdings in Apple Inc. The purchase prices were between $142.73 and $164.05, with an estimated average price of $155.13. The stock is now traded at around $156.99. The impact to the portfolio due to this purchase was 0.11%. The holdings were 1,318 shares as of 2017-09-30.
Warning! GuruFocus has detected 8 Warning Signs with AAPL. Click here to check it out.
AAPL 15-Year Financial Data
The intrinsic value of AAPL
Peter Lynch Chart of AAPL
Premium Members
This article first appeared on GuruFocus .
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 ) - 21,600 shares, 1.05% of the total portfolio. Peavine Capital Management, Llc New Purchases: AAPL , Added Positions: IEF , Reduced Positions: IVV , CVX, For the details of PEAVINE CAPITAL MANAGEMENT, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PEAVINE+CAPITAL+MANAGEMENT%2C+LLC These are the top 5 holdings of PEAVINE CAPITAL MANAGEMENT, LLC SPDR S&P 500 ( SPY ) - 291,455 shares, 40.07% of the total portfolio. GuruFocus has detected 8 Warning Signs with AAPL. | AbbVie Inc ( ABBV ) - 21,600 shares, 1.05% of the total portfolio. Peavine Capital Management, Llc New Purchases: AAPL , Added Positions: IEF , Reduced Positions: IVV , CVX, For the details of PEAVINE CAPITAL MANAGEMENT, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PEAVINE+CAPITAL+MANAGEMENT%2C+LLC These are the top 5 holdings of PEAVINE CAPITAL MANAGEMENT, LLC SPDR S&P 500 ( SPY ) - 291,455 shares, 40.07% of the total portfolio. New Purchase: Apple Inc (AAPL) Peavine Capital Management, Llc initiated holdings in Apple Inc. | AbbVie Inc ( ABBV ) - 21,600 shares, 1.05% of the total portfolio. Peavine Capital Management, Llc New Purchases: AAPL , Added Positions: IEF , Reduced Positions: IVV , CVX, For the details of PEAVINE CAPITAL MANAGEMENT, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PEAVINE+CAPITAL+MANAGEMENT%2C+LLC These are the top 5 holdings of PEAVINE CAPITAL MANAGEMENT, LLC SPDR S&P 500 ( SPY ) - 291,455 shares, 40.07% of the total portfolio. Shares added by 0.42% iShares 7-10 Year Treasury Bond ETF ( IEF ) - 525,978 shares, 30.66% of the total portfolio. | AbbVie Inc ( ABBV ) - 21,600 shares, 1.05% of the total portfolio. Shares added by 0.42% iShares 7-10 Year Treasury Bond ETF ( IEF ) - 525,978 shares, 30.66% of the total portfolio. The holdings were 1,318 shares as of 2017-09-30. |
25927.0 | 2017-10-13 00:00:00 UTC | Menlo Advisors Llc Buys JD.com Inc, iShares Intermediate Credit Bond ETF, Sells Alleghany Corp, ... | ABBV | https://www.nasdaq.com/articles/menlo-advisors-llc-buys-jdcom-inc-ishares-intermediate-credit-bond-etf-sells-alleghany | nan | nan | Menlo Advisors Llc
New Purchases: JD , CIU ,
Added Positions: GDX ,
Reduced Positions:FWONK, MSFT, BRK.B, VOD, DISCK, AAPL, ABBV, CSCO, HHC, GLW,
Sold Out:Y, NYRT,
For the details of MENLO ADVISORS LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MENLO+ADVISORS+LLC
These are the top 5 holdings of MENLO ADVISORS LLC
Berkshire Hathaway Inc (BRK.B) - 103,703 shares, 16.37% of the total portfolio. Shares reduced by 2.62%
Markel Corp ( MKL ) - 6,182 shares, 5.69% of the total portfolio. Shares reduced by 1.87%
AbbVie Inc ( ABBV ) - 71,733 shares, 5.49% of the total portfolio. Shares reduced by 3.16%
Bank of America Corporation ( BAC ) - 242,105 shares, 5.28% of the total portfolio. Shares reduced by 2.27%
SPDR Gold Trust ( GLD ) - 46,827 shares, 4.9% of the total portfolio. Shares reduced by 2.08%
New Purchase: JD.com Inc ( JD )
Menlo Advisors Llc initiated holdings in JD.com Inc. The purchase prices were between $38.65 and $48.15, with an estimated average price of $42.81. The stock is now traded at around $38.61. The impact to the portfolio due to this purchase was 1.73%. The holdings were 52,475 shares as of 2017-09-30.
New Purchase: iShares Intermediate Credit Bond ETF (CIU)
Menlo Advisors Llc initiated holdings in iShares Intermediate Credit Bond ETF. The purchase prices were between $109.28 and $110.67, with an estimated average price of $110.1. The stock is now traded at around $110.23. The impact to the portfolio due to this purchase was 0.53%. The holdings were 5,615 shares as of 2017-09-30.
Sold Out: Alleghany Corp (Y)
Menlo Advisors Llc sold out the holdings in Alleghany Corp. The sale prices were between $523.19 and $626.98, with an estimated average price of $584.13.
Sold Out: New York REIT Inc (NYRT)
Menlo Advisors Llc sold out the holdings in New York REIT Inc. The sale prices were between $7.64 and $8.69, with an estimated average price of $8.31.
Warning! GuruFocus has detected 1 Warning Sign with JD. Click here to check it out.
JD 15-Year Financial Data
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Peter Lynch Chart of JD
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This article first appeared on GuruFocus .
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. | Menlo Advisors Llc New Purchases: JD , CIU , Added Positions: GDX , Reduced Positions:FWONK, MSFT, BRK.B, VOD, DISCK, AAPL, ABBV, CSCO, HHC, GLW, Sold Out:Y, NYRT, For the details of MENLO ADVISORS LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MENLO+ADVISORS+LLC These are the top 5 holdings of MENLO ADVISORS LLC Berkshire Hathaway Inc (BRK.B) - 103,703 shares, 16.37% of the total portfolio. Shares reduced by 1.87% AbbVie Inc ( ABBV ) - 71,733 shares, 5.49% of the total portfolio. Shares reduced by 2.08% New Purchase: JD.com Inc ( JD ) Menlo Advisors Llc initiated holdings in JD.com Inc. | Menlo Advisors Llc New Purchases: JD , CIU , Added Positions: GDX , Reduced Positions:FWONK, MSFT, BRK.B, VOD, DISCK, AAPL, ABBV, CSCO, HHC, GLW, Sold Out:Y, NYRT, For the details of MENLO ADVISORS LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MENLO+ADVISORS+LLC These are the top 5 holdings of MENLO ADVISORS LLC Berkshire Hathaway Inc (BRK.B) - 103,703 shares, 16.37% of the total portfolio. Shares reduced by 1.87% AbbVie Inc ( ABBV ) - 71,733 shares, 5.49% of the total portfolio. Shares reduced by 2.08% New Purchase: JD.com Inc ( JD ) Menlo Advisors Llc initiated holdings in JD.com Inc. | Menlo Advisors Llc New Purchases: JD , CIU , Added Positions: GDX , Reduced Positions:FWONK, MSFT, BRK.B, VOD, DISCK, AAPL, ABBV, CSCO, HHC, GLW, Sold Out:Y, NYRT, For the details of MENLO ADVISORS LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MENLO+ADVISORS+LLC These are the top 5 holdings of MENLO ADVISORS LLC Berkshire Hathaway Inc (BRK.B) - 103,703 shares, 16.37% of the total portfolio. Shares reduced by 1.87% AbbVie Inc ( ABBV ) - 71,733 shares, 5.49% of the total portfolio. Shares reduced by 2.62% Markel Corp ( MKL ) - 6,182 shares, 5.69% of the total portfolio. | Menlo Advisors Llc New Purchases: JD , CIU , Added Positions: GDX , Reduced Positions:FWONK, MSFT, BRK.B, VOD, DISCK, AAPL, ABBV, CSCO, HHC, GLW, Sold Out:Y, NYRT, For the details of MENLO ADVISORS LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=MENLO+ADVISORS+LLC These are the top 5 holdings of MENLO ADVISORS LLC Berkshire Hathaway Inc (BRK.B) - 103,703 shares, 16.37% of the total portfolio. Shares reduced by 1.87% AbbVie Inc ( ABBV ) - 71,733 shares, 5.49% of the total portfolio. Shares reduced by 2.08% New Purchase: JD.com Inc ( JD ) Menlo Advisors Llc initiated holdings in JD.com Inc. |
25928.0 | 2017-10-13 00:00:00 UTC | Vigilant Capital Management, LLC Buys Amazon. ... | ABBV | https://www.nasdaq.com/articles/vigilant-capital-management-llc-buys-amazon-2017-10-13 | nan | nan | Vigilant Capital Management, LLC
New Purchases: DWDP , IWV , IEMG , PFG, AKAM, DSI, WRB, TRV, LEA, LPL,
Added Positions:AMZN, USB, KBE, SBUX, EOG, CBSH, SLB, UNP, MLM, FRC,
Reduced Positions:NXPI, VZ, DKS, BSCH, SCHH, QAI, TSM, SYY, MAR, PG,
Sold Out:DD, QCOM, PAYX, HSBC, FTV, FDX, ABB, CDK, CAH, BMWYY,
For the details of Vigilant Capital Management, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Vigilant+Capital+Management%2C+LLC
These are the top 5 holdings of Vigilant Capital Management, LLC
US Bancorp ( USB ) - 430,137 shares, 4.58% of the total portfolio. Shares added by 12.88%
SPDR S&P Bank ( KBE ) - 478,392 shares, 4.29% of the total portfolio. Shares added by 12.48%
Lam Research Corp ( LRCX ) - 101,947 shares, 3.75% of the total portfolio. Shares added by 1.55%
Apple Inc ( AAPL ) - 97,521 shares, 2.99% of the total portfolio. Shares added by 8.94%
AbbVie Inc ( ABBV ) - 165,770 shares, 2.93% of the total portfolio. Shares added by 9.61%
New Purchase: DowDuPont Inc (DWDP)
Vigilant Capital Management, LLC initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.43. The impact to the portfolio due to this purchase was 0.12%. The holdings were 8,383 shares as of 2017-09-30.
New Purchase: iShares Russell 3000 (IWV)
Vigilant Capital Management, LLC initiated holdings in iShares Russell 3000. The purchase prices were between $142.56 and $149.28, with an estimated average price of $145.99. The stock is now traded at around $151.37. The impact to the portfolio due to this purchase was 0.05%. The holdings were 1,650 shares as of 2017-09-30.
New Purchase: iShares MSCI KLD 400 Social (DSI)
Vigilant Capital Management, LLC initiated holdings in iShares MSCI KLD 400 Social. The purchase prices were between $88.62 and $92.85, with an estimated average price of $90.98. The stock is now traded at around $94.58. The impact to the portfolio due to this purchase was 0.02%. The holdings were 1,093 shares as of 2017-09-30.
New Purchase: Akamai Technologies Inc (AKAM)
Vigilant Capital Management, LLC initiated holdings in Akamai Technologies Inc. The purchase prices were between $44.91 and $53.28, with an estimated average price of $47.86. The stock is now traded at around $50.76. The impact to the portfolio due to this purchase was 0.02%. The holdings were 1,750 shares as of 2017-09-30.
New Purchase: WR Berkley Corp (WRB)
Vigilant Capital Management, LLC initiated holdings in WR Berkley Corp. The purchase prices were between $62.54 and $72.2, with an estimated average price of $67.63. The stock is now traded at around $67.41. The impact to the portfolio due to this purchase was 0.02%. The holdings were 1,500 shares as of 2017-09-30.
New Purchase: Principal Financial Group Inc (PFG)
Vigilant Capital Management, LLC initiated holdings in Principal Financial Group Inc. The purchase prices were between $59.92 and $67.37, with an estimated average price of $64.31. The stock is now traded at around $67.21. The impact to the portfolio due to this purchase was 0.02%. The holdings were 1,250 shares as of 2017-09-30.
Added: Amazon.com Inc (AMZN)
Vigilant Capital Management, LLC added to the holdings in Amazon.com Inc by 38.90%. The purchase prices were between $938.6 and $1052.8, with an estimated average price of $981.92. The stock is now traded at around $1002.94. The impact to the portfolio due to this purchase was 0.64%. The holdings were 11,951 shares as of 2017-09-30.
Added: Starbucks Corp (SBUX)
Vigilant Capital Management, LLC added to the holdings in Starbucks Corp by 25.72%. The purchase prices were between $52.7 and $59.5, with an estimated average price of $55.48. The stock is now traded at around $55.72. The impact to the portfolio due to this purchase was 0.39%. The holdings were 180,135 shares as of 2017-09-30.
Added: EOG Resources Inc (EOG)
Vigilant Capital Management, LLC added to the holdings in EOG Resources Inc by 20.69%. The purchase prices were between $83.15 and $97.32, with an estimated average price of $90.22. The stock is now traded at around $96.62. The impact to the portfolio due to this purchase was 0.37%. The holdings were 110,924 shares as of 2017-09-30.
Added: Guggenheim BulletShares 2019 Corporate Bond (BSCJ)
Vigilant Capital Management, LLC added to the holdings in Guggenheim BulletShares 2019 Corporate Bond by 32.32%. The purchase prices were between $21.2 and $21.29, with an estimated average price of $21.26. The stock is now traded at around $0.00. The impact to the portfolio due to this purchase was 0.22%. The holdings were 213,260 shares as of 2017-09-30.
Added: iShares National Muni Bond (MUB)
Vigilant Capital Management, LLC added to the holdings in iShares National Muni Bond by 30.93%. The purchase prices were between $109.85 and $111.66, with an estimated average price of $110.93. The stock is now traded at around $111.04. The impact to the portfolio due to this purchase was 0.11%. The holdings were 21,845 shares as of 2017-09-30.
Added: Target Corp (TGT)
Vigilant Capital Management, LLC added to the holdings in Target Corp by 557.50%. The purchase prices were between $50.18 and $59.96, with an estimated average price of $55.96. The stock is now traded at around $60.85. The impact to the portfolio due to this purchase was 0.03%. The holdings were 2,630 shares as of 2017-09-30.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Vigilant Capital Management, LLC sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Barclays PLC (BCS)
Vigilant Capital Management, LLC sold out the holdings in Barclays PLC. The sale prices were between $9.62 and $11.04, with an estimated average price of $10.4.
Sold Out: UBS Group AG (UBS)
Vigilant Capital Management, LLC sold out the holdings in UBS Group AG. The sale prices were between $16.16 and $18.18, with an estimated average price of $17.11.
Sold Out: Cardinal Health Inc (CAH)
Vigilant Capital Management, LLC sold out the holdings in Cardinal Health Inc. The sale prices were between $64.36 and $78.69, with an estimated average price of $70.87.
Sold Out: Bayerische Motoren Werke AG (BMWYY)
Vigilant Capital Management, LLC sold out the holdings in Bayerische Motoren Werke AG. The sale prices were between $30.42 and $34, with an estimated average price of $31.92.
Sold Out: HSBC Holdings PLC (HSBC)
Vigilant Capital Management, LLC sold out the holdings in HSBC Holdings PLC. The sale prices were between $46.95 and $50.8, with an estimated average price of $48.37.
Warning! GuruFocus has detected 3 Warning Sign with AMZN. Click here to check it out.
AMZN 15-Year Financial Data
The intrinsic value of AMZN
Peter Lynch Chart of AMZN
Premium Members
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares added by 8.94% AbbVie Inc ( ABBV ) - 165,770 shares, 2.93% of the total portfolio. Vigilant Capital Management, LLC New Purchases: DWDP , IWV , IEMG , PFG, AKAM, DSI, WRB, TRV, LEA, LPL, Added Positions:AMZN, USB, KBE, SBUX, EOG, CBSH, SLB, UNP, MLM, FRC, Reduced Positions:NXPI, VZ, DKS, BSCH, SCHH, QAI, TSM, SYY, MAR, PG, Sold Out:DD, QCOM, PAYX, HSBC, FTV, FDX, ABB, CDK, CAH, BMWYY, For the details of Vigilant Capital Management, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Vigilant+Capital+Management%2C+LLC These are the top 5 holdings of Vigilant Capital Management, LLC US Bancorp ( USB ) - 430,137 shares, 4.58% of the total portfolio. Added: iShares National Muni Bond (MUB) Vigilant Capital Management, LLC added to the holdings in iShares National Muni Bond by 30.93%. | Shares added by 8.94% AbbVie Inc ( ABBV ) - 165,770 shares, 2.93% of the total portfolio. Vigilant Capital Management, LLC New Purchases: DWDP , IWV , IEMG , PFG, AKAM, DSI, WRB, TRV, LEA, LPL, Added Positions:AMZN, USB, KBE, SBUX, EOG, CBSH, SLB, UNP, MLM, FRC, Reduced Positions:NXPI, VZ, DKS, BSCH, SCHH, QAI, TSM, SYY, MAR, PG, Sold Out:DD, QCOM, PAYX, HSBC, FTV, FDX, ABB, CDK, CAH, BMWYY, For the details of Vigilant Capital Management, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Vigilant+Capital+Management%2C+LLC These are the top 5 holdings of Vigilant Capital Management, LLC US Bancorp ( USB ) - 430,137 shares, 4.58% of the total portfolio. New Purchase: iShares MSCI KLD 400 Social (DSI) Vigilant Capital Management, LLC initiated holdings in iShares MSCI KLD 400 Social. | Shares added by 8.94% AbbVie Inc ( ABBV ) - 165,770 shares, 2.93% of the total portfolio. Vigilant Capital Management, LLC New Purchases: DWDP , IWV , IEMG , PFG, AKAM, DSI, WRB, TRV, LEA, LPL, Added Positions:AMZN, USB, KBE, SBUX, EOG, CBSH, SLB, UNP, MLM, FRC, Reduced Positions:NXPI, VZ, DKS, BSCH, SCHH, QAI, TSM, SYY, MAR, PG, Sold Out:DD, QCOM, PAYX, HSBC, FTV, FDX, ABB, CDK, CAH, BMWYY, For the details of Vigilant Capital Management, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Vigilant+Capital+Management%2C+LLC These are the top 5 holdings of Vigilant Capital Management, LLC US Bancorp ( USB ) - 430,137 shares, 4.58% of the total portfolio. Shares added by 9.61% New Purchase: DowDuPont Inc (DWDP) Vigilant Capital Management, LLC initiated holdings in DowDuPont Inc. | Shares added by 8.94% AbbVie Inc ( ABBV ) - 165,770 shares, 2.93% of the total portfolio. Shares added by 1.55% Apple Inc ( AAPL ) - 97,521 shares, 2.99% of the total portfolio. Shares added by 9.61% New Purchase: DowDuPont Inc (DWDP) Vigilant Capital Management, LLC initiated holdings in DowDuPont Inc. |
25929.0 | 2017-10-13 00:00:00 UTC | Guinness Asset Management LTD Buys Facebook Inc, TPI Composites Inc, Ormat Technologies Inc, ... | ABBV | https://www.nasdaq.com/articles/guinness-asset-management-ltd-buys-facebook-inc-tpi-composites-inc-ormat-technologies-inc | nan | nan | Guinness Asset Management LTD
New Purchases: FB , TPIC ,
Added Positions: ITW , DHR, CSCO, ROP, INTC, NKE, CMCSA, GOOGL, SLB, AMAT,
Reduced Positions:QCOM, VLO, COP, CVX, ENB, JKS,
Sold Out:MAT, TEVA, GILD, CIG,
For the details of Guinness Asset Management LTD's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Guinness+Asset+Management+LTD
These are the top 5 holdings of Guinness Asset Management LTD
Cisco Systems Inc ( CSCO ) - 488,431 shares, 3.44% of the total portfolio. Shares added by 2.86%
AbbVie Inc ( ABBV ) - 175,890 shares, 3.27% of the total portfolio.
Aflac Inc ( AFL ) - 176,540 shares, 3.01% of the total portfolio. Shares added by 1.79%
Schlumberger Ltd ( SLB ) - 203,020 shares, 2.97% of the total portfolio. Shares added by 2.46%
VF Corp ( VFC ) - 217,871 shares, 2.9% of the total portfolio.
New Purchase: Facebook Inc (FB)
Guinness Asset Management LTD initiated holdings in Facebook Inc. The purchase prices were between $148.43 and $173.51, with an estimated average price of $166.52. The stock is now traded at around $172.55. The impact to the portfolio due to this purchase was 0.8%. The holdings were 22,270 shares as of 2017-09-30.
New Purchase: TPI Composites Inc (TPIC)
Guinness Asset Management LTD initiated holdings in TPI Composites Inc. The purchase prices were between $18.22 and $22.56, with an estimated average price of $19.93. The stock is now traded at around $22.82. The impact to the portfolio due to this purchase was 0.08%. The holdings were 17,100 shares as of 2017-09-30.
Added: Blackstone Group LP (BX)
Guinness Asset Management LTD added to the holdings in Blackstone Group LP by 32.67%. The purchase prices were between $31.36 and $34.78, with an estimated average price of $32.91. The stock is now traded at around $33.00. The impact to the portfolio due to this purchase was 0.02%. The holdings were 9,340 shares as of 2017-09-30.
Added: AllianceBernstein Holding LP (AB)
Guinness Asset Management LTD added to the holdings in AllianceBernstein Holding LP by 36.80%. The purchase prices were between $23.1 and $25.1, with an estimated average price of $24.06. The stock is now traded at around $25.20. The impact to the portfolio due to this purchase was 0.02%. The holdings were 12,640 shares as of 2017-09-30.
Added: Nasdaq Inc (NDAQ)
Guinness Asset Management LTD added to the holdings in Nasdaq Inc by 28.57%. The purchase prices were between $71.06 and $77.63, with an estimated average price of $74.45. The stock is now traded at around $74.91. The impact to the portfolio due to this purchase was 0.02%. The holdings were 4,050 shares as of 2017-09-30.
Added: Franklin Resources Inc (BEN)
Guinness Asset Management LTD added to the holdings in Franklin Resources Inc by 33.09%. The purchase prices were between $41.04 and $47.28, with an estimated average price of $43.83. The stock is now traded at around $44.80. The impact to the portfolio due to this purchase was 0.02%. The holdings were 7,240 shares as of 2017-09-30.
Added: Ormat Technologies Inc (ORA)
Guinness Asset Management LTD added to the holdings in Ormat Technologies Inc by 24.90%. The purchase prices were between $55.56 and $63.41, with an estimated average price of $57.66. The stock is now traded at around $62.04. The impact to the portfolio due to this purchase was 0.02%. The holdings were 6,020 shares as of 2017-09-30.
Added: BlackRock Inc (BLK)
Guinness Asset Management LTD added to the holdings in BlackRock Inc by 35.71%. The purchase prices were between $412.19 and $446.11, with an estimated average price of $426.53. The stock is now traded at around $480.59. The impact to the portfolio due to this purchase was 0.02%. The holdings were 760 shares as of 2017-09-30.
Sold Out: Mattel Inc (MAT)
Guinness Asset Management LTD sold out the holdings in Mattel Inc. The sale prices were between $14.52 and $21.63, with an estimated average price of $17.96.
Sold Out: Teva Pharmaceutical Industries Ltd (TEVA)
Guinness Asset Management LTD sold out the holdings in Teva Pharmaceutical Industries Ltd. The sale prices were between $15.41 and $33.31, with an estimated average price of $22.57.
Sold Out: Gilead Sciences Inc (GILD)
Guinness Asset Management LTD sold out the holdings in Gilead Sciences Inc. The sale prices were between $69.25 and $85.47, with an estimated average price of $76.3.
Sold Out: Energy Company of Minas Gerais (CIG)
Guinness Asset Management LTD sold out the holdings in Energy Company of Minas Gerais. The sale prices were between $2.39 and $2.87, with an estimated average price of $2.67.
Reduced: Qualcomm Inc (QCOM)
Guinness Asset Management LTD reduced to the holdings in Qualcomm Inc by 56.89%. The sale prices were between $49.64 and $56.81, with an estimated average price of $52.95. The stock is now traded at around $53.00. The impact to the portfolio due to this sale was -0.57%. Guinness Asset Management LTD still held 37,290 shares as of 2017-09-30.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares added by 2.86% AbbVie Inc ( ABBV ) - 175,890 shares, 3.27% of the total portfolio. Guinness Asset Management LTD New Purchases: FB , TPIC , Added Positions: ITW , DHR, CSCO, ROP, INTC, NKE, CMCSA, GOOGL, SLB, AMAT, Reduced Positions:QCOM, VLO, COP, CVX, ENB, JKS, Sold Out:MAT, TEVA, GILD, CIG, For the details of Guinness Asset Management LTD's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Guinness+Asset+Management+LTD These are the top 5 holdings of Guinness Asset Management LTD Cisco Systems Inc ( CSCO ) - 488,431 shares, 3.44% of the total portfolio. Added: Blackstone Group LP (BX) Guinness Asset Management LTD added to the holdings in Blackstone Group LP by 32.67%. | Shares added by 2.86% AbbVie Inc ( ABBV ) - 175,890 shares, 3.27% of the total portfolio. Added: Blackstone Group LP (BX) Guinness Asset Management LTD added to the holdings in Blackstone Group LP by 32.67%. Sold Out: Teva Pharmaceutical Industries Ltd (TEVA) Guinness Asset Management LTD sold out the holdings in Teva Pharmaceutical Industries Ltd. | Shares added by 2.86% AbbVie Inc ( ABBV ) - 175,890 shares, 3.27% of the total portfolio. Guinness Asset Management LTD New Purchases: FB , TPIC , Added Positions: ITW , DHR, CSCO, ROP, INTC, NKE, CMCSA, GOOGL, SLB, AMAT, Reduced Positions:QCOM, VLO, COP, CVX, ENB, JKS, Sold Out:MAT, TEVA, GILD, CIG, For the details of Guinness Asset Management LTD's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Guinness+Asset+Management+LTD These are the top 5 holdings of Guinness Asset Management LTD Cisco Systems Inc ( CSCO ) - 488,431 shares, 3.44% of the total portfolio. Added: Blackstone Group LP (BX) Guinness Asset Management LTD added to the holdings in Blackstone Group LP by 32.67%. | Shares added by 2.86% AbbVie Inc ( ABBV ) - 175,890 shares, 3.27% of the total portfolio. Guinness Asset Management LTD New Purchases: FB , TPIC , Added Positions: ITW , DHR, CSCO, ROP, INTC, NKE, CMCSA, GOOGL, SLB, AMAT, Reduced Positions:QCOM, VLO, COP, CVX, ENB, JKS, Sold Out:MAT, TEVA, GILD, CIG, For the details of Guinness Asset Management LTD's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Guinness+Asset+Management+LTD These are the top 5 holdings of Guinness Asset Management LTD Cisco Systems Inc ( CSCO ) - 488,431 shares, 3.44% of the total portfolio. Added: Nasdaq Inc (NDAQ) Guinness Asset Management LTD added to the holdings in Nasdaq Inc by 28.57%. |
25930.0 | 2017-10-13 00:00:00 UTC | IUSG, HD, ABBV, MA: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/iusg-hd-abbv-ma-etf-inflow-alert-2017-10-13 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $118.1 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 53,050,000 to 55,350,000.0). Among the largest underlying components of IUSG, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and Mastercard Inc (Symbol: MA) is higher by about 1.1%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average:
Looking at the chart above, IUSG's low point in its 52 week range is $40.54 per share, with $51.51 as the 52 week high point - that compares with a last trade of $51.50. 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 IUSG, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and Mastercard Inc (Symbol: MA) is higher by about 1.1%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $40.54 per share, with $51.51 as the 52 week high point - that compares with a last trade of $51.50. 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 IUSG, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and Mastercard Inc (Symbol: MA) is higher by about 1.1%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $40.54 per share, with $51.51 as the 52 week high point - that compares with a last trade of $51.50. 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 IUSG, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and Mastercard Inc (Symbol: MA) is higher by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $118.1 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 53,050,000 to 55,350,000.0). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $40.54 per share, with $51.51 as the 52 week high point - that compares with a last trade of $51.50. | Among the largest underlying components of IUSG, in trading today Home Depot Inc (Symbol: HD) is up about 0.5%, AbbVie Inc (Symbol: ABBV) is up about 0.1%, and Mastercard Inc (Symbol: MA) is higher by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $118.1 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 53,050,000 to 55,350,000.0). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $40.54 per share, with $51.51 as the 52 week high point - that compares with a last trade of $51.50. |
25931.0 | 2017-10-13 00:00:00 UTC | Cancer Space Update: Lung & Breast Cancer Studies in Focus | ABBV | https://www.nasdaq.com/articles/cancer-space-update%3A-lung-breast-cancer-studies-in-focus-2017-10-13 | nan | nan | Major news in the cancer segment this week was the failure of Eli Lilly and Company's LLY newly approved breast cancer drug Verzenio in a pivotal lung cancer study. With this latest failure, Lilly joins the list of large pharma companies who have failed in their respective lung cancer pivotal studies in the recent past. However, Verzenio was granted priority review status as first-line treatment for breast cancer.
Meanwhile, the FDA granted Breakthrough therapy designation to AstraZeneca PLC's AZN Tagrisso for EGFR mutation-positive non-small cell lung cancer ("NSCLC") as well as Astellas' leukemia candidate, gilteritinib. Also, AbbVie and Seattle Genetics announced collaboration agreements to strengthen their oncology pipeline.
Let's see the news in details.
Key News
Eli Lilly and Company faced yet another pipeline setback as its phase III JUNIPER study failed to meet the primary endpoint of overall survival. The study was comparing Verzenio with Roche/Astellas Pharma's Tarceva in patients with stage IV NSCLC who have KRAS mutation. Lilly announced that the FDA has granted priority review to the new drug application ("NDA") seeking approval as first-line treatment for advanced breast cancer. Verzenio was approved for treating metastatic breast cancer last month in patients where the disease progressed after platinum-based chemotherapy. (Read more: Verzenio Fails in Phase III Lung Cancer Study )
Eli Lilly and Company Price and Consensus
Eli Lilly and Company Price and Consensus | Eli Lilly and Company Quote
AstraZeneca 's Tagrisso was granted breakthrough therapy designation as first-line treatment for metastatic NSCLC with EGFR mutation this week. The company is developing the drug in a phase III study - FLAURA - comparing it against the standard-of care ("SOC") EGFR tyrosine kinase inhibitor ("TKI") therapy. Data from the study was presented earlier. AstraZeneca also announced that the European Medicines Agency has accepted its marketing authorization application (MAA) for Imfinzi for the treatment of locally-advanced unresectable non-small cell lung cancer.
Astrazeneca PLC Price and Consensus
Astrazeneca PLC Price and Consensus | Astrazeneca PLC Quote
Seattle Genetics, Inc.SGEN along with its partner Astellas Pharma initiated a phase II study of enfortumab vedotin in locally advanced or metastatic urothelial cancer. Meanwhile, Seattle Genetics announced two clinical collaborations to evaluate SGN-LIV1A in triple negative breast cancer ("TNBC"). One study will evaluate SGN-LIV1A in combination with Merck and Co.'s MRK Keytruda and the other study will evaluate the candidate in combination with standard chemotherapy as neoadjuvant treatment. (Read more: Seattle Genetics Inks Clinical Collaborations for Cancer Drug )
Seattle Genetics, Inc. Price and Consensus
Seattle Genetics, Inc. Price and Consensus | Seattle Genetics, Inc. Quote
Other News
The week also saw an application submitted by Clovis Oncology CLVS for the label expansion of Rubraca as a maintenance treatment for patients with platinum-sensitive recurrent ovarian cancer. The FDA also granted Fast Track designation to expedite the development of Astellas Pharma's gilteritinib in adult patients with relapsed or refractory acute myeloid leukemia who are FLT3 mutation-positive. Meanwhile, AbbVie ABBV entered into a research, option and license agreement with Turnstone Biologics to gain rights to the latter's next-generation oncolytic viral immunotherapies. The deal is expected to boost AbbVie's immuno-oncology potential.
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Astrazeneca PLC (AZN): Free Stock Analysis Report
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Merck & Company, Inc. (MRK): 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. | Also, AbbVie and Seattle Genetics announced collaboration agreements to strengthen their oncology pipeline. Meanwhile, AbbVie ABBV entered into a research, option and license agreement with Turnstone Biologics to gain rights to the latter's next-generation oncolytic viral immunotherapies. The deal is expected to boost AbbVie's immuno-oncology potential. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report Clovis Oncology, Inc. (CLVS): Free Stock Analysis Report To read this article on Zacks.com click here. Also, AbbVie and Seattle Genetics announced collaboration agreements to strengthen their oncology pipeline. Meanwhile, AbbVie ABBV entered into a research, option and license agreement with Turnstone Biologics to gain rights to the latter's next-generation oncolytic viral immunotherapies. | Click to get this free report Astrazeneca PLC (AZN): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report Clovis Oncology, Inc. (CLVS): Free Stock Analysis Report To read this article on Zacks.com click here. Also, AbbVie and Seattle Genetics announced collaboration agreements to strengthen their oncology pipeline. Meanwhile, AbbVie ABBV entered into a research, option and license agreement with Turnstone Biologics to gain rights to the latter's next-generation oncolytic viral immunotherapies. | Also, AbbVie and Seattle Genetics announced collaboration agreements to strengthen their oncology pipeline. Meanwhile, AbbVie ABBV entered into a research, option and license agreement with Turnstone Biologics to gain rights to the latter's next-generation oncolytic viral immunotherapies. The deal is expected to boost AbbVie's immuno-oncology potential. |
25932.0 | 2017-10-12 00:00:00 UTC | 3 Stocks for Baby Boomers to Reach Their Goals | ABBV | https://www.nasdaq.com/articles/3-stocks-baby-boomers-reach-their-goals-2017-10-12 | nan | nan | While the earliest of the baby boomers have retired or are starting to, beginning within the next 15 years the vast majority will be putting in their retirement papers. Finding stocks now to help build their retirement portfolios that will allow them to attain their financial goals is of critical importance.
Three Motley Fool investors identified Microsoft (NASDAQ: MSFT) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , and AbbVie (NYSE: ABBV) as stocks that could drive baby boomers to their retirement.
An evolving tech giant
Leo Sun ( Microsoft ): Microsoft is often considered a slow-growth tech stock, but the company perked up over the past three years under the leadership of CEO Satya Nadella. Unlike his predecessor Steve Ballmer -- who milked Windows and Office license revenues and missed crucial technological shifts -- Nadella is transforming Microsoft into a "mobile-first, cloud-first" company.
Under Nadella, Microsoft gave out Windows 10 as a free upgrade for a year, invested heavily in the growth of cloud-based services like Azure and Office 365, pivoted Microsoft's mobile strategy from hardware to cross-platform software, and expanded the Surface family to showcase the 2-in-1 features of Windows 10. All these moves helped Microsoft shift toward more sustainable subscription-based revenues.
In 2015, Nadella set a target for $20 billion in annual cloud revenues by the end of fiscal 2018, which would account for about a fifth of its top line. Microsoft could now easily exceed that target, with its commercialized cloud revenue hitting an annual run rate of $18.9 billion last quarter.
Analysts expect that growth to boost Microsoft's revenue by 8% this year, although its earnings could dip 3% this year on higher cloud investments. But looking ahead, its revenue and earnings are expected to respectively rise 8% and 13% next year. Microsoft also pays a 2.3% yield, which is supported by a payout ratio of 56% and 13 straight years of annual dividend hikes. It also trades at a reasonable 24 times next year's earnings. Therefore, Microsoft offers boomers a solid balance of stability, income, and growth for their golden years.
So much more than search
Danny Vena(Alphabet): According to the Center for Disease Control, 65-year-olds retiring now can expect to reach 84.4 years old, or live an additional 19.4 years. That's great news, but for baby boomers it means their retirement funds need to last longer. One company that could help accomplish that goal is Alphabet.
Known for its flagship Google search, Alphabet makes the majority of its revenue from advertising, accounting for more than 99% of the $21.5 billion in its most recent quarter. Its dominance in online advertising is growing: In the third quarter of 2016, it's estimated that Google accounted for 54% of all new advertising growth during the quarter.
While the lion's share of revenue still comes from advertising, Google has several other potentially lucrative growth areas. Its Waymo self-driving car unit has logged more than three million miles of autonomous driving and is widely acknowledged as the leader in self-driving technology. It's currently conducting a public trial with its Early Rider Program in the Phoenix, Arizona metropolitan area.
Google also has one of the world's most advanced artificial intelligence (AI) programs, which underlies its search and cloud computing and powers its voice-activated Google Assistant. Its DeepMind AI unit beat the reigning world champion at the ancient Chinese game of Go, a feat many believed impossible just a few short years ago.
The combination of stability offered by its dominance in digital advertising and potentially explosive growth in the nascent areas of self-driving cars and artificial intelligence should help baby boomers achieve their goals.
A pipeline of opportunity
Rich Duprey(AbbVie): Rheumatoid arthritis therapy Humira has been critical to the success of AbbVie over the years. The blockbuster biologic generated over $16 billion in revenues last year, or 63% of AbbVie's $25.6 billion total. While the knock on Humira is that revenues from the drug will likely plunge when generic drugs hit the market, the drugmaker is constantly researching new indications for the therapy.
AbbVie also has an impressive pipeline of drugs, including Imbruvica, which reportedly has the potential to become one of the top five cancer drugs on the market. Other possible winners include cancer treatments Rova-T and Veliparib, as well as ABT-494, an autoimmune-disease drug.
The biggest threat to Humira has been the potential for Amgen 's (NASDAQ: AMGN) biosimilar Amgevita, which won FDA approval last year but was bogged down in patent litigation between the two biotechs. However, an agreement between AbbVie and Amgen will have Amgevita's introduction to the U.S. market delayed until 2023, while it won't hit European markets until next year.
With a dividend of $2.56 per share that currently yields 2.8%, AbbVie is a stock for America's graying baby boomers that will help them meet their retirement goals.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Danny Vena owns shares of Alphabet (A shares). Leo Sun has no position in any of the stocks mentioned. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Three Motley Fool investors identified Microsoft (NASDAQ: MSFT) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , and AbbVie (NYSE: ABBV) as stocks that could drive baby boomers to their retirement. A pipeline of opportunity Rich Duprey(AbbVie): Rheumatoid arthritis therapy Humira has been critical to the success of AbbVie over the years. The blockbuster biologic generated over $16 billion in revenues last year, or 63% of AbbVie's $25.6 billion total. | Three Motley Fool investors identified Microsoft (NASDAQ: MSFT) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , and AbbVie (NYSE: ABBV) as stocks that could drive baby boomers to their retirement. A pipeline of opportunity Rich Duprey(AbbVie): Rheumatoid arthritis therapy Humira has been critical to the success of AbbVie over the years. The blockbuster biologic generated over $16 billion in revenues last year, or 63% of AbbVie's $25.6 billion total. | Three Motley Fool investors identified Microsoft (NASDAQ: MSFT) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , and AbbVie (NYSE: ABBV) as stocks that could drive baby boomers to their retirement. A pipeline of opportunity Rich Duprey(AbbVie): Rheumatoid arthritis therapy Humira has been critical to the success of AbbVie over the years. The blockbuster biologic generated over $16 billion in revenues last year, or 63% of AbbVie's $25.6 billion total. | Three Motley Fool investors identified Microsoft (NASDAQ: MSFT) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , and AbbVie (NYSE: ABBV) as stocks that could drive baby boomers to their retirement. With a dividend of $2.56 per share that currently yields 2.8%, AbbVie is a stock for America's graying baby boomers that will help them meet their retirement goals. A pipeline of opportunity Rich Duprey(AbbVie): Rheumatoid arthritis therapy Humira has been critical to the success of AbbVie over the years. |
25933.0 | 2017-10-12 00:00:00 UTC | AbbVie Reaches Analyst Target Price | ABBV | https://www.nasdaq.com/articles/abbvie-reaches-analyst-target-price-2017-10-12 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $91.82, changing hands for $92.38/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 11 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 $66.00. And then on the other side of the spectrum one analyst has a target as high as $107.00. The standard deviation is $13.136.
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 $91.82/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $91.82 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 $91.82, changing hands for $92.38/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 $91.82/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $91.82 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 $91.82, changing hands for $92.38/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 11 different analyst targets contributing to that average for AbbVie Inc, but the average is just that - a mathematical average. | There are 11 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 $91.82/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $91.82 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 $91.82, changing hands for $92.38/share. | There are 11 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 $91.82, changing hands for $92.38/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. |
25934.0 | 2017-10-12 00:00:00 UTC | Tealwood Asset Management Inc Buys Digital Realty Trust Inc, Hanesbrands Inc, Innoviva Inc, ... | ABBV | https://www.nasdaq.com/articles/tealwood-asset-management-inc-buys-digital-realty-trust-inc-hanesbrands-inc-innoviva-inc | nan | nan | Tealwood Asset Management Inc
New Purchases: INVA , NUAN , HDSN , ALXN, ZBH, WMT, WFC, XEL,
Added Positions:DLR, HBI, ABT, JNJ, CELG, MDLZ, EBAY, INFO, MMM, GOOGL,
Reduced Positions:BIP, ESGR, COHR, GIS, SNI, BX, NDAQ, PFG, CSCO, APO,
Sold Out:DFT, DNB, AM, AMGN, FISV, GLW, SYK, GE,
For the details of TEALWOOD ASSET MANAGEMENT INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TEALWOOD+ASSET+MANAGEMENT+INC
These are the top 5 holdings of TEALWOOD ASSET MANAGEMENT INC
AbbVie Inc ( ABBV ) - 106,025 shares, 3.63% of the total portfolio. Shares reduced by 0.8%
Digital Realty Trust Inc ( DLR ) - 73,588 shares, 3.36% of the total portfolio. Shares added by 100.21%
Principal Financial Group Inc ( PFG ) - 108,268 shares, 2.69% of the total portfolio. Shares reduced by 1.29%
Hanesbrands Inc ( HBI ) - 227,655 shares, 2.16% of the total portfolio. Shares added by 249.19%
Merck & Co Inc ( MRK ) - 86,342 shares, 2.13% of the total portfolio. Shares reduced by 1.2%
New Purchase: Innoviva Inc (INVA)
Tealwood Asset Management Inc initiated holdings in Innoviva Inc. The purchase prices were between $12.06 and $14.11, with an estimated average price of $13.2. The stock is now traded at around $13.83. The impact to the portfolio due to this purchase was 1.04%. The holdings were 190,380 shares as of 2017-09-30.
New Purchase: Nuance Communications Inc (NUAN)
Tealwood Asset Management Inc initiated holdings in Nuance Communications Inc. The purchase prices were between $15.44 and $17.87, with an estimated average price of $16.51. The stock is now traded at around $15.78. The impact to the portfolio due to this purchase was 0.77%. The holdings were 127,100 shares as of 2017-09-30.
New Purchase: Hudson Technologies Inc (HDSN)
Tealwood Asset Management Inc initiated holdings in Hudson Technologies Inc. The purchase prices were between $7.71 and $9.44, with an estimated average price of $8.68. The stock is now traded at around $6.09. The impact to the portfolio due to this purchase was 0.68%. The holdings were 227,440 shares as of 2017-09-30.
New Purchase: Alexion Pharmaceuticals Inc (ALXN)
Tealwood Asset Management Inc initiated holdings in Alexion Pharmaceuticals Inc. The purchase prices were between $121.08 and $146.69, with an estimated average price of $135.76. The stock is now traded at around $141.20. The impact to the portfolio due to this purchase was 0.62%. The holdings were 11,455 shares as of 2017-09-30.
New Purchase: Zimmer Biomet Holdings Inc (ZBH)
Tealwood Asset Management Inc initiated holdings in Zimmer Biomet Holdings Inc. The purchase prices were between $110.13 and $132.61, with an estimated average price of $119.08. The stock is now traded at around $118.86. The impact to the portfolio due to this purchase was 0.62%. The holdings were 13,800 shares as of 2017-09-30.
New Purchase: Wal-Mart Stores Inc (WMT)
Tealwood Asset Management Inc initiated holdings in Wal-Mart Stores Inc. The purchase prices were between $73.23 and $81.61, with an estimated average price of $78.65. The stock is now traded at around $86.31. The impact to the portfolio due to this purchase was 0.15%. The holdings were 4,959 shares as of 2017-09-30.
Added: Digital Realty Trust Inc ( DLR )
Tealwood Asset Management Inc added to the holdings in Digital Realty Trust Inc by 100.21%. The purchase prices were between $109.36 and $126.04, with an estimated average price of $115.49. The stock is now traded at around $121.55. The impact to the portfolio due to this purchase was 1.68%. The holdings were 73,588 shares as of 2017-09-30.
Added: Hanesbrands Inc ( HBI )
Tealwood Asset Management Inc added to the holdings in Hanesbrands Inc by 249.19%. The purchase prices were between $22.53 and $25.67, with an estimated average price of $23.99. The stock is now traded at around $23.68. The impact to the portfolio due to this purchase was 1.54%. The holdings were 227,655 shares as of 2017-09-30.
Sold Out: Dupont Fabros Technology Inc (DFT)
Tealwood Asset Management Inc sold out the holdings in Dupont Fabros Technology Inc. The sale prices were between $59.18 and $68, with an estimated average price of $62.48.
Sold Out: Dun & Bradstreet Corp (DNB)
Tealwood Asset Management Inc sold out the holdings in Dun & Bradstreet Corp. The sale prices were between $105.35 and $116.36, with an estimated average price of $110.93.
Sold Out: Antero Midstream Partners LP (AM)
Tealwood Asset Management Inc sold out the holdings in Antero Midstream Partners LP. The sale prices were between $30.97 and $35.02, with an estimated average price of $32.69.
Sold Out: Amgen Inc (AMGN)
Tealwood Asset Management Inc sold out the holdings in Amgen Inc. The sale prices were between $167.29 and $191, with an estimated average price of $177.14.
Sold Out: Fiserv Inc (FISV)
Tealwood Asset Management Inc sold out the holdings in Fiserv Inc. The sale prices were between $120.36 and $129.27, with an estimated average price of $124.13.
Sold Out: Corning Inc (GLW)
Tealwood Asset Management Inc sold out the holdings in Corning Inc. The sale prices were between $27.87 and $32.13, with an estimated average price of $29.61.
Warning! GuruFocus has detected 10 Warning Signs with DLR. Click here to check it out.
DLR 15-Year Financial Data
The intrinsic value of DLR
Peter Lynch Chart of DLR
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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. | Tealwood Asset Management Inc New Purchases: INVA , NUAN , HDSN , ALXN, ZBH, WMT, WFC, XEL, Added Positions:DLR, HBI, ABT, JNJ, CELG, MDLZ, EBAY, INFO, MMM, GOOGL, Reduced Positions:BIP, ESGR, COHR, GIS, SNI, BX, NDAQ, PFG, CSCO, APO, Sold Out:DFT, DNB, AM, AMGN, FISV, GLW, SYK, GE, For the details of TEALWOOD ASSET MANAGEMENT INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TEALWOOD+ASSET+MANAGEMENT+INC These are the top 5 holdings of TEALWOOD ASSET MANAGEMENT INC AbbVie Inc ( ABBV ) - 106,025 shares, 3.63% of the total portfolio. Sold Out: Dupont Fabros Technology Inc (DFT) Tealwood Asset Management Inc sold out the holdings in Dupont Fabros Technology Inc. Sold Out: Antero Midstream Partners LP (AM) Tealwood Asset Management Inc sold out the holdings in Antero Midstream Partners LP. | Tealwood Asset Management Inc New Purchases: INVA , NUAN , HDSN , ALXN, ZBH, WMT, WFC, XEL, Added Positions:DLR, HBI, ABT, JNJ, CELG, MDLZ, EBAY, INFO, MMM, GOOGL, Reduced Positions:BIP, ESGR, COHR, GIS, SNI, BX, NDAQ, PFG, CSCO, APO, Sold Out:DFT, DNB, AM, AMGN, FISV, GLW, SYK, GE, For the details of TEALWOOD ASSET MANAGEMENT INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TEALWOOD+ASSET+MANAGEMENT+INC These are the top 5 holdings of TEALWOOD ASSET MANAGEMENT INC AbbVie Inc ( ABBV ) - 106,025 shares, 3.63% of the total portfolio. New Purchase: Zimmer Biomet Holdings Inc (ZBH) Tealwood Asset Management Inc initiated holdings in Zimmer Biomet Holdings Inc. Sold Out: Antero Midstream Partners LP (AM) Tealwood Asset Management Inc sold out the holdings in Antero Midstream Partners LP. | Tealwood Asset Management Inc New Purchases: INVA , NUAN , HDSN , ALXN, ZBH, WMT, WFC, XEL, Added Positions:DLR, HBI, ABT, JNJ, CELG, MDLZ, EBAY, INFO, MMM, GOOGL, Reduced Positions:BIP, ESGR, COHR, GIS, SNI, BX, NDAQ, PFG, CSCO, APO, Sold Out:DFT, DNB, AM, AMGN, FISV, GLW, SYK, GE, For the details of TEALWOOD ASSET MANAGEMENT INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TEALWOOD+ASSET+MANAGEMENT+INC These are the top 5 holdings of TEALWOOD ASSET MANAGEMENT INC AbbVie Inc ( ABBV ) - 106,025 shares, 3.63% of the total portfolio. Shares reduced by 1.2% New Purchase: Innoviva Inc (INVA) Tealwood Asset Management Inc initiated holdings in Innoviva Inc. New Purchase: Zimmer Biomet Holdings Inc (ZBH) Tealwood Asset Management Inc initiated holdings in Zimmer Biomet Holdings Inc. | Tealwood Asset Management Inc New Purchases: INVA , NUAN , HDSN , ALXN, ZBH, WMT, WFC, XEL, Added Positions:DLR, HBI, ABT, JNJ, CELG, MDLZ, EBAY, INFO, MMM, GOOGL, Reduced Positions:BIP, ESGR, COHR, GIS, SNI, BX, NDAQ, PFG, CSCO, APO, Sold Out:DFT, DNB, AM, AMGN, FISV, GLW, SYK, GE, For the details of TEALWOOD ASSET MANAGEMENT INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TEALWOOD+ASSET+MANAGEMENT+INC These are the top 5 holdings of TEALWOOD ASSET MANAGEMENT INC AbbVie Inc ( ABBV ) - 106,025 shares, 3.63% of the total portfolio. Shares reduced by 1.29% Hanesbrands Inc ( HBI ) - 227,655 shares, 2.16% of the total portfolio. Shares added by 249.19% Merck & Co Inc ( MRK ) - 86,342 shares, 2.13% of the total portfolio. |
25935.0 | 2017-10-11 00:00:00 UTC | Allergan's Uterine Fibroids Candidate's NDA Accepted by FDA | ABBV | https://www.nasdaq.com/articles/allergans-uterine-fibroids-candidates-nda-accepted-by-fda-2017-10-11 | nan | nan | Allergan plcAGN announced that the FDA has accepted the new drug application (NDA) for its pipeline candidate, ulipristal acetate. Allergan is looking to get ulipristal acetate approved for the treatment of abnormal uterine bleeding from fibroids in that organ. The company expects the FDA to give its decision in the first half of 2018. Once approved, ulipristal acetate will be the first once-daily non-surgical oral treatment option approved for the condition.
Allergan's shares have declined 1.2% compared with the industry 's decline of 20.4%.
There are other companies that have pipeline candidates being evaluated for uterine fibroids. In July 2017, Bayer Aktiengesellschaft BAYRY is evaluating vilaprisan in women suffering from uterine fibroids and in July initiated a phase III study ASTEROID for the same.
AbbVie Inc. ABBV along with Neurocrine Biosciences, Inc. is evaluating its pipeline candidate elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. In April this year, the companies announced positive results from a phase IIb study which showed that elagolix met its primary endpoint by significantly reducing the number of heavy bleeding days rapidly within the assessment period of six months from the baseline in comparison to a placebo, utilizing the alkaline hematin method.
Allergan PLC. Price
Allergan PLC. Price | Allergan PLC. Quote
Zacks Rank & Stock to Consider
Currently, Allergan carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is ACADIA Pharmaceuticals Inc ACAD carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Over the last 60 days, ACADIA's loss per share estimates narrowed from $2.63 to $2.52 for 2017 and from $1.92 to $1.85 for 2018. The company delivered positive earnings surprises in two of the trailing four quarters, with an average beat of 7.97%. Year to date, the share price of the company has climbed 27.9%.
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Allergan PLC. (AGN): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Bayer AG (BAYRY): Free Stock Analysis Report
ACADIA Pharmaceuticals Inc. (ACAD): 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. | AbbVie Inc. ABBV along with Neurocrine Biosciences, Inc. is evaluating its pipeline candidate elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Bayer AG (BAYRY): Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD): Free Stock Analysis Report To read this article on Zacks.com click here. In April this year, the companies announced positive results from a phase IIb study which showed that elagolix met its primary endpoint by significantly reducing the number of heavy bleeding days rapidly within the assessment period of six months from the baseline in comparison to a placebo, utilizing the alkaline hematin method. | AbbVie Inc. ABBV along with Neurocrine Biosciences, Inc. is evaluating its pipeline candidate elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Bayer AG (BAYRY): Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD): 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. | (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Bayer AG (BAYRY): Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV along with Neurocrine Biosciences, Inc. is evaluating its pipeline candidate elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. Quote Zacks Rank & Stock to Consider Currently, Allergan carries a Zacks Rank #3 (Hold). | AbbVie Inc. ABBV along with Neurocrine Biosciences, Inc. is evaluating its pipeline candidate elagolix for reducing heavy menstrual bleeding in premenopausal women with uterine fibroids. (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Bayer AG (BAYRY): Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD): Free Stock Analysis Report To read this article on Zacks.com click here. Allergan plcAGN announced that the FDA has accepted the new drug application (NDA) for its pipeline candidate, ulipristal acetate. |
25936.0 | 2017-10-11 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for October 12, 2017 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-ex-dividend-date-scheduled-october-12-2017-2017-10-11 | nan | nan | AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 12, 2017. A cash dividend payment of $0.64 per share is scheduled to be paid on November 15, 2017. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that ABBV has paid the same dividend. At the current stock price of $91.17, the dividend yield is 2.81%.
The previous trading day's last sale of ABBV was $91.17, representing a -0.18% decrease from the 52 week high of $91.33 and a 65.58% increase over the 52 week low of $55.06.
ABBV is a part of the Health Care sector, which includes companies such as Johnson & Johnson ( JNJ ) and Pfizer, Inc. ( PFE ). ABBV's current earnings per share, an indicator of a company's profitability, is $4.07. Zacks Investment Research reports ABBV's forecasted earnings growth in 2017 as 14.75%, compared to an industry average of 5.6%.
For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
Principal Price Setters Index ETF ( PSET )
First Trust Nasdaq Pharmaceuticals ETF ( FTXH )
PowerShares Dynamic Pharmaceuticals ( PJP )
SPDR Select Sector Fund - Health Care ( XLV )
First Trust US Equity Opportunities ETF ( FPX ).
The top-performing ETF of this group is PJP with an increase of 13.55% over the last 100 days. PSET has the highest percent weighting of ABBV at 95.89%.
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. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2017 as 14.75%, compared to an industry average of 5.6%. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. | The following ETF(s) have ABBV as a top-10 holding: Principal Price Setters Index ETF ( PSET ) First Trust Nasdaq Pharmaceuticals ETF ( FTXH ) PowerShares Dynamic Pharmaceuticals ( PJP ) SPDR Select Sector Fund - Health Care ( XLV ) First Trust US Equity Opportunities ETF ( FPX ). 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 ) will begin trading ex-dividend on October 12, 2017. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. The following ETF(s) have ABBV as a top-10 holding: Principal Price Setters Index ETF ( PSET ) First Trust Nasdaq Pharmaceuticals ETF ( FTXH ) PowerShares Dynamic Pharmaceuticals ( PJP ) SPDR Select Sector Fund - Health Care ( XLV ) First Trust US Equity Opportunities ETF ( FPX ). | ABBV's current earnings per share, an indicator of a company's profitability, is $4.07. The following ETF(s) have ABBV as a top-10 holding: Principal Price Setters Index ETF ( PSET ) First Trust Nasdaq Pharmaceuticals ETF ( FTXH ) PowerShares Dynamic Pharmaceuticals ( PJP ) SPDR Select Sector Fund - Health Care ( XLV ) First Trust US Equity Opportunities ETF ( FPX ). AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 12, 2017. |
25937.0 | 2017-10-11 00:00:00 UTC | Franklin Street Advisors Inc Buys DowDuPont Inc, Comcast Corp, Marriott International Inc, ... | ABBV | https://www.nasdaq.com/articles/franklin-street-advisors-inc-buys-dowdupont-inc-comcast-corp-marriott-international-inc | nan | nan | Franklin Street Advisors Inc
New Purchases: DWDP , MAR , STAY , UBNC, GS, BWA, BABA, JAZZ, FBNC, NVDA,
Added Positions:CMCSA, VFC, GILD, IDXX, BMY, CLB, HD, AMZN, JPM, VZ,
Reduced Positions:MAT, AXP, RY, CME, AAPL, ABBV, MMM, MLM, FLO, DIS,
Sold Out:PX, SBUX, CELG, DISCK, DD, RAI, SCG, ABC, MCFYY,
For the details of FRANKLIN STREET ADVISORS INC 's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FRANKLIN+STREET+ADVISORS+INC+
These are the top 5 holdings of FRANKLIN STREET ADVISORS INC
Apple Inc ( AAPL ) - 178,090 shares, 4.5% of the total portfolio. Shares reduced by 8.69%
CME Group Inc ( CME ) - 164,380 shares, 3.66% of the total portfolio. Shares reduced by 10.72%
Microsoft Corp ( MSFT ) - 274,307 shares, 3.35% of the total portfolio. Shares added by 0.65%
Cisco Systems Inc ( CSCO ) - 506,149 shares, 2.79% of the total portfolio. Shares added by 2.15%
AbbVie Inc ( ABBV ) - 184,285 shares, 2.69% of the total portfolio. Shares reduced by 14.36%
New Purchase: DowDuPont Inc (DWDP)
Franklin Street Advisors Inc initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.10. The impact to the portfolio due to this purchase was 1.52%. The holdings were 134,248 shares as of 2017-09-30.
New Purchase: Marriott International Inc (MAR)
Franklin Street Advisors Inc initiated holdings in Marriott International Inc. The purchase prices were between $97.84 and $110, with an estimated average price of $102.92. The stock is now traded at around $114.02. The impact to the portfolio due to this purchase was 1.09%. The holdings were 60,035 shares as of 2017-09-30.
New Purchase: Extended Stay America Inc (STAY)
Franklin Street Advisors Inc initiated holdings in Extended Stay America Inc. The purchase prices were between $18.42 and $20.2, with an estimated average price of $19.4. The stock is now traded at around $20.78. The impact to the portfolio due to this purchase was 0.93%. The holdings were 284,835 shares as of 2017-09-30.
New Purchase: Union Bank (UBNC)
Franklin Street Advisors Inc initiated holdings in Union Bank. The purchase prices were between $15.25 and $15.85, with an estimated average price of $15.65. The stock is now traded at around $15.75. The impact to the portfolio due to this purchase was 0.83%. The holdings were 320,752 shares as of 2017-09-30.
New Purchase: Goldman Sachs Group Inc (GS)
Franklin Street Advisors Inc initiated holdings in Goldman Sachs Group Inc. The purchase prices were between $215.84 and $237.19, with an estimated average price of $225.59. The stock is now traded at around $241.98. The impact to the portfolio due to this purchase was 0.42%. The holdings were 10,710 shares as of 2017-09-30.
New Purchase: BorgWarner Inc (BWA)
Franklin Street Advisors Inc initiated holdings in BorgWarner Inc. The purchase prices were between $43 and $50.85, with an estimated average price of $46.26. The stock is now traded at around $51.76. The impact to the portfolio due to this purchase was 0.39%. The holdings were 46,140 shares as of 2017-09-30.
Added: Comcast Corp (CMCSA)
Franklin Street Advisors Inc added to the holdings in Comcast Corp by 1851.36%. The purchase prices were between $36.93 and $41.9, with an estimated average price of $39.39. The stock is now traded at around $37.49. The impact to the portfolio due to this purchase was 1.22%. The holdings were 204,268 shares as of 2017-09-30.
Added: VF Corp (VFC)
Franklin Street Advisors Inc added to the holdings in VF Corp by 2264.49%. The purchase prices were between $55.72 and $63.95, with an estimated average price of $61.19. The stock is now traded at around $64.54. The impact to the portfolio due to this purchase was 0.82%. The holdings were 82,757 shares as of 2017-09-30.
Added: Gilead Sciences Inc (GILD)
Franklin Street Advisors Inc added to the holdings in Gilead Sciences Inc by 60.95%. The purchase prices were between $69.25 and $85.47, with an estimated average price of $76.3. The stock is now traded at around $82.57. The impact to the portfolio due to this purchase was 0.53%. The holdings were 105,835 shares as of 2017-09-30.
Added: IDEXX Laboratories Inc (IDXX)
Franklin Street Advisors Inc added to the holdings in IDEXX Laboratories Inc by 85.26%. The purchase prices were between $150.32 and $170.18, with an estimated average price of $158.16. The stock is now traded at around $157.38. The impact to the portfolio due to this purchase was 0.51%. The holdings were 42,990 shares as of 2017-09-30.
Added: Bristol-Myers Squibb Company (BMY)
Franklin Street Advisors Inc added to the holdings in Bristol-Myers Squibb Company by 48.30%. The purchase prices were between $54.24 and $63.74, with an estimated average price of $58.38. The stock is now traded at around $65.19. The impact to the portfolio due to this purchase was 0.38%. The holdings were 110,668 shares as of 2017-09-30.
Added: Core Laboratories NV (CLB)
Franklin Street Advisors Inc added to the holdings in Core Laboratories NV by 32.84%. The purchase prices were between $87.47 and $109.17, with an estimated average price of $96.92. The stock is now traded at around $96.04. The impact to the portfolio due to this purchase was 0.31%. The holdings were 76,345 shares as of 2017-09-30.
Sold Out: Praxair Inc (PX)
Franklin Street Advisors Inc sold out the holdings in Praxair Inc. The sale prices were between $127.44 and $141.06, with an estimated average price of $133.28.
Sold Out: Starbucks Corp (SBUX)
Franklin Street Advisors Inc sold out the holdings in Starbucks Corp. The sale prices were between $52.7 and $59.5, with an estimated average price of $55.48.
Sold Out: Celgene Corp (CELG)
Franklin Street Advisors Inc sold out the holdings in Celgene Corp. The sale prices were between $127.43 and $144.94, with an estimated average price of $135.96.
Sold Out: Discovery Communications Inc (DISCK)
Franklin Street Advisors Inc sold out the holdings in Discovery Communications Inc. The sale prices were between $19.62 and $26.21, with an estimated average price of $22.54.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Franklin Street Advisors Inc sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Reynolds American Inc (RAI)
Franklin Street Advisors Inc sold out the holdings in Reynolds American Inc. The sale prices were between $63.94 and $66.89, with an estimated average price of $65.08.
CMCSA 15-Year Financial Data
The intrinsic value of CMCSA
Peter Lynch Chart of CMCSA
Premium Members
This article first appeared on GuruFocus .
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. | Franklin Street Advisors Inc New Purchases: DWDP , MAR , STAY , UBNC, GS, BWA, BABA, JAZZ, FBNC, NVDA, Added Positions:CMCSA, VFC, GILD, IDXX, BMY, CLB, HD, AMZN, JPM, VZ, Reduced Positions:MAT, AXP, RY, CME, AAPL, ABBV, MMM, MLM, FLO, DIS, Sold Out:PX, SBUX, CELG, DISCK, DD, RAI, SCG, ABC, MCFYY, For the details of FRANKLIN STREET ADVISORS INC 's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FRANKLIN+STREET+ADVISORS+INC+ These are the top 5 holdings of FRANKLIN STREET ADVISORS INC Apple Inc ( AAPL ) - 178,090 shares, 4.5% of the total portfolio. Shares added by 2.15% AbbVie Inc ( ABBV ) - 184,285 shares, 2.69% of the total portfolio. Added: Bristol-Myers Squibb Company (BMY) Franklin Street Advisors Inc added to the holdings in Bristol-Myers Squibb Company by 48.30%. | Franklin Street Advisors Inc New Purchases: DWDP , MAR , STAY , UBNC, GS, BWA, BABA, JAZZ, FBNC, NVDA, Added Positions:CMCSA, VFC, GILD, IDXX, BMY, CLB, HD, AMZN, JPM, VZ, Reduced Positions:MAT, AXP, RY, CME, AAPL, ABBV, MMM, MLM, FLO, DIS, Sold Out:PX, SBUX, CELG, DISCK, DD, RAI, SCG, ABC, MCFYY, For the details of FRANKLIN STREET ADVISORS INC 's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FRANKLIN+STREET+ADVISORS+INC+ These are the top 5 holdings of FRANKLIN STREET ADVISORS INC Apple Inc ( AAPL ) - 178,090 shares, 4.5% of the total portfolio. Shares added by 2.15% AbbVie Inc ( ABBV ) - 184,285 shares, 2.69% of the total portfolio. New Purchase: Extended Stay America Inc (STAY) Franklin Street Advisors Inc initiated holdings in Extended Stay America Inc. | Franklin Street Advisors Inc New Purchases: DWDP , MAR , STAY , UBNC, GS, BWA, BABA, JAZZ, FBNC, NVDA, Added Positions:CMCSA, VFC, GILD, IDXX, BMY, CLB, HD, AMZN, JPM, VZ, Reduced Positions:MAT, AXP, RY, CME, AAPL, ABBV, MMM, MLM, FLO, DIS, Sold Out:PX, SBUX, CELG, DISCK, DD, RAI, SCG, ABC, MCFYY, For the details of FRANKLIN STREET ADVISORS INC 's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FRANKLIN+STREET+ADVISORS+INC+ These are the top 5 holdings of FRANKLIN STREET ADVISORS INC Apple Inc ( AAPL ) - 178,090 shares, 4.5% of the total portfolio. Shares added by 2.15% AbbVie Inc ( ABBV ) - 184,285 shares, 2.69% of the total portfolio. Shares reduced by 14.36% New Purchase: DowDuPont Inc (DWDP) Franklin Street Advisors Inc initiated holdings in DowDuPont Inc. | Franklin Street Advisors Inc New Purchases: DWDP , MAR , STAY , UBNC, GS, BWA, BABA, JAZZ, FBNC, NVDA, Added Positions:CMCSA, VFC, GILD, IDXX, BMY, CLB, HD, AMZN, JPM, VZ, Reduced Positions:MAT, AXP, RY, CME, AAPL, ABBV, MMM, MLM, FLO, DIS, Sold Out:PX, SBUX, CELG, DISCK, DD, RAI, SCG, ABC, MCFYY, For the details of FRANKLIN STREET ADVISORS INC 's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FRANKLIN+STREET+ADVISORS+INC+ These are the top 5 holdings of FRANKLIN STREET ADVISORS INC Apple Inc ( AAPL ) - 178,090 shares, 4.5% of the total portfolio. Shares added by 2.15% AbbVie Inc ( ABBV ) - 184,285 shares, 2.69% of the total portfolio. Shares reduced by 14.36% New Purchase: DowDuPont Inc (DWDP) Franklin Street Advisors Inc initiated holdings in DowDuPont Inc. |
25938.0 | 2017-10-11 00:00:00 UTC | Is AbbVie the Best Dividend Stock in Healthcare? | ABBV | https://www.nasdaq.com/articles/abbvie-best-dividend-stock-healthcare-2017-10-11 | nan | nan | AbbVie (NYSE: ABBV) is making headway toward diversifying itself away from its best-selling drug, Humira, but Humira still accounts for most of its sales and that makes buying AbbVie, because of its enticing dividend yield, a bit risky.
In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes is joined by contributor Todd Campbell to discuss how AbbVie is trying to protect itself from Humira competition in the future and if its efforts are enough to warrant buying its shares.
A full transcript follows the video.
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Kristine Harjes: Let's talk about a company that might be a little bit more exciting. They have a slightly higher dividend yield. This one is AbbVie.
Todd Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. However, there is a caveat to that higher dividend yield.
Harjes: Which is?
Campbell: Humira. Humira represents the lion's share of AbbVie's sales. It's the top-selling drug in the world, with $16 billion in sales in 2016, and it represents something like 62% of AbbVie's sales.
Harjes: Yeah. Humira and what happens with its patents will mean everything. Amgen already won U.S. approval for a biosimilar, which is a generic version to Humira, last year. It hasn't yet launched this biosimilar yet because of a patent lawsuit filed by AbbVie. AbbVie's management says that they're very sure they'll be able to fend off biosimilar competition through 2022. But that's kind of a big question mark -- do we take management's word for that? And even then, it's only through 2022.
Campbell: Right. Humira sales, we did a show on this in early 2016, Kristine, where we talked about it and we were just amazed, how does management come out and actually guide for sales to increase when they lose patent protection? But that just goes to show you the competitive advantage that Humira has. It's a dominant player in and across autoimmune disease. And sometimes, doctors are very nervous about switching patients off of something that works very well to something else. And since it's a complex biologic, that's a whole another story, because then you have to wonder, how similar is a biosimilar to Humira, and how willing am I to move this patient off of it?
I think they're saying that Humira sales could probably climb up until 2018-2020, somewhere in there, then they'll start to trade down. But, Kristine, this is one of those situations where it's not like it's a surprise to AbbVie's management. They've known that they're losing patent protection on this drug, and they've been working very hard over the last three years to try and diversify themselves into other indications, specifically into hepatitis C and cancer, as a way of building out a company that can withstand any threat to Humira.
Harjes: AbbVie has been a thorn in Gilead Sciences ' (NASDAQ: GILD) HCV side for a while now. I remember when Viekira Pak first came out: That was the first time that Gilead Sciences faced serious competition to its HCV franchise, and AbbVie has not relented. Just recently, they got approval for a pan-genotypic 8-week hepatitis C treatment, which, if you follow the space, you'll know that that's pretty impressive, and that's the best out there so far. So, that could certainly be a solid revenue driver for them, although there's also the argument that population of hepatitis C patients is dwindling as some of the easiest to treat people have already been treated by some of the earlier drugs.
Campbell: Yeah, but I think you still have the ability for this to be a blockbuster category, and I think you're still talking about billions up for grabs. This is probably their best threat so far to Gilead, and a lot of it will come down to pricing and what kind of deals each one of these companies is willing to make with payers.
But, I think, they're going to be a player in hepatitis C for a few more years, at least. And they've already shown, through their acquisition of Pharmacyclics a couple of years ago, that they want to have a really big presence in cancer. As a refresher, when they bought that company, that landed them 50% of Imbruvica.
Harjes: Yes, which is a drug partnered with Johnson & Johnson , actually. So, yeah, that's a huge drug right now approved for blood cancer. I believe they're also studying it in some label extensions as well.
Campbell: Oh, yeah, absolutely. And I think you have the potential out there, some analysts have said that sales could double from here because of those label expansions for that drug. I think that's something to keep an eye on. They also have some interesting drugs in the pipeline. Rova-T, which is being studied in a form of lung cancer or solid tumor cancers, which is an intriguing drug. They've got some interesting things going on in autoimmune disease that may end up producing a successor to Humira. So, maybe they get to a point where, they've protected Humira until 2020, now they've also got this other drug they can start to transfer some of their patients to that instead. So, there are a lot of different levers that management is trying to move up and down to blunt the risk.
Harjes: Yeah. I think AbbVie's management right now sees its own stock as undervalued. If you look at their share-repurchase history, they have been very generous with the buybacks. I think they're trying to take advantage, a little bit, of some of the market's skepticism that they'll be able to overcome the Humira hurdle, and buy back shares now. Which, if management thinks their own shares are cheap, maybe that's a sign that you might want to as well. They do have a really outstanding pipeline. I've seen it called the third-best pipeline out there in biopharma, for whatever that's worth. They currently have a payout ratio and a cash payout ratio that are similarly just under 60%. They've got a solid amount of cash on the balance sheet. And I've seen analysts say that they should be able to deliver average annual earnings growth of around 14% over the next five years, which is pretty solid.
Campbell: Yeah. If you're a little bit more risk tolerant in your portfolio, in your income portfolio, you can make an argument that the shares are undervalued right now because of the risk to Humira. If so, you get a nice two-pronged attack on growth. You get both the chance for shares to rise back up to where the value "should" be, plus you get that nice yield.
Harjes: One other thing about AbbVie that we haven't mentioned yet: They sort of have 45 years of consecutive dividend hikes. The reason I say "sort of" is because that includes the period before the company was spun off by Abbott Labs . But if you include that history, which most people do, then this is another Dividend Aristocrat.
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 October 2017 $86 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 , analyst Kristine Harjes is joined by contributor Todd Campbell to discuss how AbbVie is trying to protect itself from Humira competition in the future and if its efforts are enough to warrant buying its shares. Todd Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. AbbVie (NYSE: ABBV) is making headway toward diversifying itself away from its best-selling drug, Humira, but Humira still accounts for most of its sales and that makes buying AbbVie, because of its enticing dividend yield, a bit risky. | AbbVie (NYSE: ABBV) is making headway toward diversifying itself away from its best-selling drug, Humira, but Humira still accounts for most of its sales and that makes buying AbbVie, because of its enticing dividend yield, a bit risky. In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes is joined by contributor Todd Campbell to discuss how AbbVie is trying to protect itself from Humira competition in the future and if its efforts are enough to warrant buying its shares. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | AbbVie (NYSE: ABBV) is making headway toward diversifying itself away from its best-selling drug, Humira, but Humira still accounts for most of its sales and that makes buying AbbVie, because of its enticing dividend yield, a bit risky. In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes is joined by contributor Todd Campbell to discuss how AbbVie is trying to protect itself from Humira competition in the future and if its efforts are enough to warrant buying its shares. Todd Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. | AbbVie (NYSE: ABBV) is making headway toward diversifying itself away from its best-selling drug, Humira, but Humira still accounts for most of its sales and that makes buying AbbVie, because of its enticing dividend yield, a bit risky. I think AbbVie's management right now sees its own stock as undervalued. In this clip from The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes is joined by contributor Todd Campbell to discuss how AbbVie is trying to protect itself from Humira competition in the future and if its efforts are enough to warrant buying its shares. |
25939.0 | 2017-10-11 00:00:00 UTC | Biotech Stock Roundup: Amgen's Imlygic Data Promising, Regeneron Scores Win in PCSK9 Lawsuit | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-amgens-imlygic-data-promising-regeneron-scores-win-pcsk9-lawsuit | nan | nan | Companies like Amgen AMGN and Regeneron REGN were in the news with Amgen providing pipeline and regulatory updates while Regeneron and partner Sanofi got some good news with an appeals court ruling in their favor in the PCSK9 inhibitor lawsuit against Amgen.
Recap of the Week's Most Important Stories
Phase II Combination Data on Amgen's Imlygic Published: Positive data on Amgen's oncolytic viral therapy, Imlygic, when used in combination with Bristol-Myers Squibb's Yervoy were published in the Journal of Clinical Oncology . Results from the mid-stage study showed that the objective response rate ("ORR") more than doubled when Imlygic was used in combination with Yervoy compared to Yervoy alone in patients with unresectable stage IIIB-IV melanoma (39% versus 18%). Moreover, the complete response rate was almost double in the combination arm compared to Yervoy alone (13% versus 7%). Responses were observed in both injected and uninjected lesions, including visceral lesions.
Advanced melanoma is highly aggressive and one of the most dangerous types of skin cancer with there being need for multiple treatment approaches over the course of the disease. The data is encouraging and could open up new avenues of revenues for Imlygic if it eventually gains approval for use in combination with a checkpoint inhibitor. Sales of Imlygic, approved in October 2015, are yet to pick up.
Meanwhile, Amgen said that the FDA has accepted its regulatory application seeking label expansion for the use of Prolia in glucocorticoid-induced osteoporosis, the most common form of secondary osteoporosis. A response from the agency should be out on May 28, 2018. Prolia, which brought in sales of $505 million in the second quarter of 2017, is an important growth driver for Amgen with the company working on improving diagnosis, treatment rates and duration in order to drive access to a greater number of patients (Read more: Amgen Label Expansion Application for Prolia Accepted by FDA ).
Amgen is a Zacks Rank #2 (Buy) stock. Shares of Amgen have gained 27.1% year to date, significantly outperforming the industry's 13.9% rally. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Breather for Amgen with Neulasta Biosimilar Approval Delay: Amgen got a bit of a breather with the FDA issuing a Complete Response Letter ("CRL") for Mylan and Biocon's biosimilar version of Amgen's blockbuster drug, Neulasta (pegfilgrastim). While the agency did not raise any queries regarding biosimilarity, pharmacokinetic/pharmacodynamic data, clinical data or immunogenicity of MYL-1401H, the CRL relates to the pending update of the regulatory application with certain CMC data from facility requalification activities post recent plant modifications.
We note that Mylan and Biocon are not the only companies to get a CRL from the FDA for a biosimilar version of Neulasta. While Novartis's Sandoz had received a CRL last year, Coherus was issued a CRL this year in June.
Regeneron/Sanofi Score a Win in PCSK9 Inhibitor Litigation: Regeneron and partner Sanofi got a major boost with the U.S. Court of Appeals for the Federal Circuit ordering a new trial related to Amgen's claims regarding patents for PCSK9 inhibitors. The court also vacated the permanent injunction in the lawsuit which means Sanofi and Regeneron can continue selling their PCSK9 inhibitor, Praluent, in the United States (Read more: Regeneron and Sanofi Get Favorable Ruling Against Amgen ).
AbbVie in Immuno-Oncology Deal: AbbVie ABBV has entered into a research, option and license agreement with clinical-stage immuno-oncology company Turnstone Biologics. The deal provides AbbVie with an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies.
Turnstone's Ad-MG1-MAGEA3 therapy is in a couple of phase I/II studies for different solid tumor indications alone as well as in combination with an approved anti-PD-1 checkpoint inhibitor.
Promising New Data on Biogen's Spinraza: New phase III data presented by Biogen BIIB on Spinraza showed that earlier initiation of treatment with the therapy may improve motor function outcomes in infants and children with spinal muscular atrophy ("SMA"). Biogen and Ionis's Spinraza is the first approved medicine for the treatment of SMA. Spinraza is off to a promising start in the United States bringing in sales of $203 million in the second quarter of 2017.
Clovis Seeks Label Expansion for PARP Inhibitor: Clovis Oncology CLVS has filed for label expansion of its PARP inhibitor, Rubraca, in the United States. The company is looking to get the drug approved for the maintenance treatment of patients with recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer who are in a complete or partial response to platinum-based chemotherapy. The company had presented impressive late-stage data earlier this year in June on Rubraca showing that the treatment significantly improved progression-free survival in all ovarian cancer patient populations evaluated in the ARIEL3 study.
Rubraca had gained accelerated FDA approval in December 2016 for use in advanced ovarian cancer patients who have been treated with two or more chemotherapies and who have deleterious germline or somatic BRCA mutations. A broader label would boost Rubraca's sales potential (Read more: Clovis Submits sNDA for Ovarian Cancer Drug Rubraca ).
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The Nasdaq Biotechnology Index was up 0.6% over the last five trading sessions. Among major biotech stocks, Biogen gained 4.9% while Celgene CELG lost 4.4%. Over the last six months, Vertex VRTX was up 35.5% (See the last biotech stock roundup here: Endocyte Shoots up on Deal, Amgen-AbbVie Settle Humira Litigation ).
What's Next in the Biotech World?
As the sector gears up for third quarter earnings, watch out for the usual regulatory and pipeline updates. Sparks Therapeutics's voretigene neparvovec will be reviewed by the FDA's Cellular, Tissue and Gene Therapies Advisory Committee (CTGTAC) on October 12. Sparks is seeking FDA approval for the treatment of patients with vision loss due to confirmed biallelic RPE65 mutation-associated retinal dystrophy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie in Immuno-Oncology Deal: AbbVie ABBV has entered into a research, option and license agreement with clinical-stage immuno-oncology company Turnstone Biologics. The deal provides AbbVie with an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. Over the last six months, Vertex VRTX was up 35.5% (See the last biotech stock roundup here: Endocyte Shoots up on Deal, Amgen-AbbVie Settle Humira Litigation ). | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Clovis Oncology, Inc. (CLVS): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie in Immuno-Oncology Deal: AbbVie ABBV has entered into a research, option and license agreement with clinical-stage immuno-oncology company Turnstone Biologics. The deal provides AbbVie with an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Clovis Oncology, Inc. (CLVS): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie in Immuno-Oncology Deal: AbbVie ABBV has entered into a research, option and license agreement with clinical-stage immuno-oncology company Turnstone Biologics. The deal provides AbbVie with an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. | AbbVie in Immuno-Oncology Deal: AbbVie ABBV has entered into a research, option and license agreement with clinical-stage immuno-oncology company Turnstone Biologics. The deal provides AbbVie with an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. Over the last six months, Vertex VRTX was up 35.5% (See the last biotech stock roundup here: Endocyte Shoots up on Deal, Amgen-AbbVie Settle Humira Litigation ). |
25940.0 | 2017-10-11 00:00:00 UTC | How Safe Is AbbVie's Dividend? | ABBV | https://www.nasdaq.com/articles/how-safe-abbvies-dividend-2017-10-11 | nan | nan | The pharmaceutical industry has been a favorite among dividend investors, and AbbVie (NYSE: ABBV) has put together an impressive track record of treating its shareholders well. Dating back to before it became an independent company, AbbVie has reliably given its investors rising dividends year after year.
Yet the challenges that drug companies face have gotten tougher recently, and some investors are nervous that AbbVie might face pressure to take actions that might threaten its dividend over the long run. Looking at AbbVie with an eye toward deciding whether the dividend is safe should reveal any lingering issues that could grow into big problems ahead.
Dividend stats on AbbVie
Source: Yahoo! Finance. Last increase refers to ex-dividend date. * Includes dividend history of former parent company.
Dividend yield
AbbVie's dividend yield is 2.8%, which is relatively similar to those of many of its drug-making peers and considerably above the 2% average among stocks in the S&P 500 index. Drug companies often have blockbuster treatments that generate substantial cash flow, leaving them with enough money to reinvest into new pipeline drugs and still pay shareholders considerable dividends.
The yield is also toward the low end of its range since becoming a public company, having climbed as high as 4% in past years and gone as low as around 2.5%. A considerable jump in the share price in recent months has been the primary driver of the yield decline.
Payout ratio
AbbVie has a current payout ratio of about 60%, and that's consistent with where the figure has been throughout most of the stock's history as a separately traded entity. A short-term earnings decline in 2015 sent the payout ratio considerably above the 100% mark for a while, leading some to become concerned about the stability of the dividend. Those concerns have lessened in recent years, and the current figure includes a margin of safety for investors who want to ensure safe payouts going forward.
Dividend growth
AbbVie has raised its dividend every year since becoming separately traded, but most of the company's pedigree comes from its former parent. Together, they've put together a 45-year track record of rising payouts. Growth has come at a healthy rate, as well, including the most recent 12% boost to AbbVie's payout earlier this year. AbbVie's consistency in its dividend growth is a big selling point for income investors.
ABBV Dividend data by YCharts . Note: Chart reflects dividends of AbbVie and former parent Abbott Labs.
Can AbbVie keep succeeding?
AbbVie's biggest success is also its biggest source of uncertainty. The company has a huge blockbuster hit with its Humira treatment, which is used for a number of autoimmune disease applications. Humira is responsible for more than three-fifths of AbbVie's revenue , dwarfing the contributions from other products. Yet AbbVie has had to fight against potential generic competition for Humira, with biosimilar versions having become a threat.
AbbVie has countered with efforts to protect Humira's intellectual property. A deal with Amgen (NASDAQ: AMGN) , which makes a biosimilar version of Humira, will prevent competition in the key U.S. market until 2023 , when the company anticipates losing the ability to protect the drug from generic rivals. However, Amgen will be able to sell its biosimilar in Europe starting next year, and that could at least incrementally hit AbbVie's results.
In the long run, AbbVie faces the much larger question of how to replace Humira's impact on its financials. Other promising drugs have become successful, but it will be hard to find one that has the breadth of scope that Humira has had.
AbbVie should stay well -- for now
AbbVie's current dividend appears to be solid, with the company having taken steps to defend its key moneymaker for the next several years. Beyond that, AbbVie faces a bigger challenge in determining its future strategic direction. Yet with a history of overcoming obstacles, AbbVie is in a position to find solutions that will protect its dividend for years to come.
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Dan Caplinger 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. | The pharmaceutical industry has been a favorite among dividend investors, and AbbVie (NYSE: ABBV) has put together an impressive track record of treating its shareholders well. Dating back to before it became an independent company, AbbVie has reliably given its investors rising dividends year after year. Yet the challenges that drug companies face have gotten tougher recently, and some investors are nervous that AbbVie might face pressure to take actions that might threaten its dividend over the long run. | Dating back to before it became an independent company, AbbVie has reliably given its investors rising dividends year after year. Dividend yield AbbVie's dividend yield is 2.8%, which is relatively similar to those of many of its drug-making peers and considerably above the 2% average among stocks in the S&P 500 index. Payout ratio AbbVie has a current payout ratio of about 60%, and that's consistent with where the figure has been throughout most of the stock's history as a separately traded entity. | Dividend yield AbbVie's dividend yield is 2.8%, which is relatively similar to those of many of its drug-making peers and considerably above the 2% average among stocks in the S&P 500 index. Dividend growth AbbVie has raised its dividend every year since becoming separately traded, but most of the company's pedigree comes from its former parent. AbbVie should stay well -- for now AbbVie's current dividend appears to be solid, with the company having taken steps to defend its key moneymaker for the next several years. | Dating back to before it became an independent company, AbbVie has reliably given its investors rising dividends year after year. Yet the challenges that drug companies face have gotten tougher recently, and some investors are nervous that AbbVie might face pressure to take actions that might threaten its dividend over the long run. Dividend growth AbbVie has raised its dividend every year since becoming separately traded, but most of the company's pedigree comes from its former parent. |
25941.0 | 2017-10-11 00:00:00 UTC | Ferguson Wellman Capital Management, Inc Buys Symantec Corp, Omnicom Group Inc, United Parcel ... | ABBV | https://www.nasdaq.com/articles/ferguson-wellman-capital-management-inc-buys-symantec-corp-omnicom-group-inc-united-parcel | nan | nan | Ferguson Wellman Capital Management, Inc
New Purchases: SYMC , OMC , DLR , DVN, DWDP, HSBC, XES, ICF, ROP, SCHA,
Added Positions:UPS, FB, BDX, PNR, PFE, BBT, MRK, XOP, SCZ, AMGN,
Reduced Positions:TWX, TXN, ABC, CSCO, BA, NBL, GD, STI, LB, ABBV,
Sold Out:DFT, DD, BBY, VZA, TSM, SNN, NUE, XLB, KIMPRI, EFX,
For the details of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FERGUSON+WELLMAN+CAPITAL+MANAGEMENT%2C+INC
These are the top 5 holdings of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC
Microsoft Corp ( MSFT ) - 1,507,649 shares, 4.06% of the total portfolio. Shares reduced by 0.41%
Merck & Co Inc ( MRK ) - 1,243,438 shares, 2.88% of the total portfolio. Shares added by 4.33%
Chevron Corp ( CVX ) - 658,196 shares, 2.79% of the total portfolio. Shares reduced by 0.29%
AbbVie Inc ( ABBV ) - 696,618 shares, 2.24% of the total portfolio. Shares reduced by 7.33%
Apple Inc ( AAPL ) - 368,791 shares, 2.05% of the total portfolio. Shares reduced by 1.3%
New Purchase: Symantec Corp (SYMC)
Ferguson Wellman Capital Management, Inc initiated holdings in Symantec Corp. The purchase prices were between $27.47 and $34.16, with an estimated average price of $30.4. The stock is now traded at around $31.59. The impact to the portfolio due to this purchase was 0.76%. The holdings were 637,756 shares as of 2017-09-30.
New Purchase: Omnicom Group Inc (OMC)
Ferguson Wellman Capital Management, Inc initiated holdings in Omnicom Group Inc. The purchase prices were between $71.73 and $83.24, with an estimated average price of $77.21. The stock is now traded at around $74.45. The impact to the portfolio due to this purchase was 0.69%. The holdings were 257,450 shares as of 2017-09-30.
New Purchase: Digital Realty Trust Inc (DLR)
Ferguson Wellman Capital Management, Inc initiated holdings in Digital Realty Trust Inc. The purchase prices were between $109.36 and $126.04, with an estimated average price of $115.49. The stock is now traded at around $119.76. The impact to the portfolio due to this purchase was 0.52%. The holdings were 122,725 shares as of 2017-09-30.
New Purchase: Devon Energy Corp (DVN)
Ferguson Wellman Capital Management, Inc initiated holdings in Devon Energy Corp. The purchase prices were between $29.54 and $37.17, with an estimated average price of $32.35. The stock is now traded at around $36.00. The impact to the portfolio due to this purchase was 0.45%. The holdings were 338,094 shares as of 2017-09-30.
New Purchase: DowDuPont Inc (DWDP)
Ferguson Wellman Capital Management, Inc initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.57. The impact to the portfolio due to this purchase was 0.32%. The holdings were 127,175 shares as of 2017-09-30.
New Purchase: HSBC Holdings PLC (HSBC)
Ferguson Wellman Capital Management, Inc initiated holdings in HSBC Holdings PLC. The purchase prices were between $46.95 and $50.8, with an estimated average price of $48.37. The stock is now traded at around $50.60. The impact to the portfolio due to this purchase was 0.12%. The holdings were 66,850 shares as of 2017-09-30.
Added: United Parcel Service Inc (UPS)
Ferguson Wellman Capital Management, Inc added to the holdings in United Parcel Service Inc by 95.44%. The purchase prices were between $107.79 and $119.61, with an estimated average price of $113.53. The stock is now traded at around $118.12. The impact to the portfolio due to this purchase was 0.67%. The holdings were 315,563 shares as of 2017-09-30.
Added: Facebook Inc (FB)
Ferguson Wellman Capital Management, Inc added to the holdings in Facebook Inc by 86.05%. The purchase prices were between $148.43 and $173.51, with an estimated average price of $166.52. The stock is now traded at around $171.59. The impact to the portfolio due to this purchase was 0.43%. The holdings were 150,289 shares as of 2017-09-30.
Added: Becton, Dickinson and Co (BDX)
Ferguson Wellman Capital Management, Inc added to the holdings in Becton, Dickinson and Co by 1075.28%. The purchase prices were between $191.56 and $205.63, with an estimated average price of $198.71. The stock is now traded at around $196.29. The impact to the portfolio due to this purchase was 0.38%. The holdings were 57,295 shares as of 2017-09-30.
Added: Pentair PLC (PNR)
Ferguson Wellman Capital Management, Inc added to the holdings in Pentair PLC by 78.00%. The purchase prices were between $60.74 and $67.96, with an estimated average price of $63.99. The stock is now traded at around $69.95. The impact to the portfolio due to this purchase was 0.2%. The holdings were 184,814 shares as of 2017-09-30.
Added: Pfizer Inc (PFE)
Ferguson Wellman Capital Management, Inc added to the holdings in Pfizer Inc by 84.10%. The purchase prices were between $32.67 and $35.99, with an estimated average price of $33.88. The stock is now traded at around $36.40. The impact to the portfolio due to this purchase was 0.15%. The holdings were 253,049 shares as of 2017-09-30.
Added: BB&T Corp (BBT)
Ferguson Wellman Capital Management, Inc added to the holdings in BB&T Corp by 159.07%. The purchase prices were between $43.66 and $48.36, with an estimated average price of $45.96. The stock is now traded at around $47.71. The impact to the portfolio due to this purchase was 0.14%. The holdings were 135,789 shares as of 2017-09-30.
Sold Out: Dupont Fabros Technology Inc (DFT)
Ferguson Wellman Capital Management, Inc sold out the holdings in Dupont Fabros Technology Inc. The sale prices were between $59.18 and $68, with an estimated average price of $62.48.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Ferguson Wellman Capital Management, Inc sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Taiwan Semiconductor Manufacturing Co Ltd (TSM)
Ferguson Wellman Capital Management, Inc sold out the holdings in Taiwan Semiconductor Manufacturing Co Ltd. The sale prices were between $34.5 and $38.3, with an estimated average price of $36.51.
Sold Out: Verizon Communications Inc (VZA)
Ferguson Wellman Capital Management, Inc sold out the holdings in Verizon Communications Inc. The sale prices were between $26.56 and $27.09, with an estimated average price of $26.84.
Sold Out: Equifax Inc (EFX)
Ferguson Wellman Capital Management, Inc sold out the holdings in Equifax Inc. The sale prices were between $92.98 and $146.26, with an estimated average price of $132.47.
Sold Out: DaVita Inc (DVA)
Ferguson Wellman Capital Management, Inc sold out the holdings in DaVita Inc. The sale prices were between $56.13 and $66.42, with an estimated average price of $60.27.
UPS 15-Year Financial Data
The intrinsic value of UPS
Peter Lynch Chart of UPS
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This article first appeared on GuruFocus .
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. | Ferguson Wellman Capital Management, Inc New Purchases: SYMC , OMC , DLR , DVN, DWDP, HSBC, XES, ICF, ROP, SCHA, Added Positions:UPS, FB, BDX, PNR, PFE, BBT, MRK, XOP, SCZ, AMGN, Reduced Positions:TWX, TXN, ABC, CSCO, BA, NBL, GD, STI, LB, ABBV, Sold Out:DFT, DD, BBY, VZA, TSM, SNN, NUE, XLB, KIMPRI, EFX, For the details of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FERGUSON+WELLMAN+CAPITAL+MANAGEMENT%2C+INC These are the top 5 holdings of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC Microsoft Corp ( MSFT ) - 1,507,649 shares, 4.06% of the total portfolio. Shares reduced by 0.29% AbbVie Inc ( ABBV ) - 696,618 shares, 2.24% of the total portfolio. Added: United Parcel Service Inc (UPS) Ferguson Wellman Capital Management, Inc added to the holdings in United Parcel Service Inc by 95.44%. | Ferguson Wellman Capital Management, Inc New Purchases: SYMC , OMC , DLR , DVN, DWDP, HSBC, XES, ICF, ROP, SCHA, Added Positions:UPS, FB, BDX, PNR, PFE, BBT, MRK, XOP, SCZ, AMGN, Reduced Positions:TWX, TXN, ABC, CSCO, BA, NBL, GD, STI, LB, ABBV, Sold Out:DFT, DD, BBY, VZA, TSM, SNN, NUE, XLB, KIMPRI, EFX, For the details of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FERGUSON+WELLMAN+CAPITAL+MANAGEMENT%2C+INC These are the top 5 holdings of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC Microsoft Corp ( MSFT ) - 1,507,649 shares, 4.06% of the total portfolio. Shares reduced by 0.29% AbbVie Inc ( ABBV ) - 696,618 shares, 2.24% of the total portfolio. New Purchase: Digital Realty Trust Inc (DLR) Ferguson Wellman Capital Management, Inc initiated holdings in Digital Realty Trust Inc. | Ferguson Wellman Capital Management, Inc New Purchases: SYMC , OMC , DLR , DVN, DWDP, HSBC, XES, ICF, ROP, SCHA, Added Positions:UPS, FB, BDX, PNR, PFE, BBT, MRK, XOP, SCZ, AMGN, Reduced Positions:TWX, TXN, ABC, CSCO, BA, NBL, GD, STI, LB, ABBV, Sold Out:DFT, DD, BBY, VZA, TSM, SNN, NUE, XLB, KIMPRI, EFX, For the details of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FERGUSON+WELLMAN+CAPITAL+MANAGEMENT%2C+INC These are the top 5 holdings of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC Microsoft Corp ( MSFT ) - 1,507,649 shares, 4.06% of the total portfolio. Shares reduced by 0.29% AbbVie Inc ( ABBV ) - 696,618 shares, 2.24% of the total portfolio. Shares reduced by 1.3% New Purchase: Symantec Corp (SYMC) Ferguson Wellman Capital Management, Inc initiated holdings in Symantec Corp. | Ferguson Wellman Capital Management, Inc New Purchases: SYMC , OMC , DLR , DVN, DWDP, HSBC, XES, ICF, ROP, SCHA, Added Positions:UPS, FB, BDX, PNR, PFE, BBT, MRK, XOP, SCZ, AMGN, Reduced Positions:TWX, TXN, ABC, CSCO, BA, NBL, GD, STI, LB, ABBV, Sold Out:DFT, DD, BBY, VZA, TSM, SNN, NUE, XLB, KIMPRI, EFX, For the details of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FERGUSON+WELLMAN+CAPITAL+MANAGEMENT%2C+INC These are the top 5 holdings of FERGUSON WELLMAN CAPITAL MANAGEMENT, INC Microsoft Corp ( MSFT ) - 1,507,649 shares, 4.06% of the total portfolio. Shares reduced by 0.29% AbbVie Inc ( ABBV ) - 696,618 shares, 2.24% of the total portfolio. Shares reduced by 0.41% Merck & Co Inc ( MRK ) - 1,243,438 shares, 2.88% of the total portfolio. |
25942.0 | 2017-10-10 00:00:00 UTC | 3 Healthcare Dividend Stocks Ideal for Retirees | ABBV | https://www.nasdaq.com/articles/3-healthcare-dividend-stocks-ideal-retirees-2017-10-10 | nan | nan | What does an ideal investment portfolio look like for retirees? The answer to that question varies based on each individual's financial position and goals. However, nearly every retiree wants to have solid dividend stocks in their portfolios.
With healthcare making up nearly one-fifth of the U.S. economy, owning a few healthcare dividend stocks is a good idea for many retired investors. Three of the very best healthcare dividend stocks on the market right now are AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . Here's what makes these stocks ideal for retirees.
AbbVie
AbbVie's dividend yields 2.83% right now. For most of the last 12 months, the biopharmaceutical company's yield topped 3.5%. But the reason why AbbVie's yield has fallen is a really good one: The stock has soared around 45% so far this year.
Pretty much everything has gone right for AbbVie lately . The company has posted strong results each quarter in 2017. It's gotten good news from approval of a new hepatitis C drug. Most important, AbbVie secured a deal that keeps a major biosimilar rival to top-selling autoimmune disease drug Humira off the U.S. market through early 2023.
A top priority for retired investors is dependable income. AbbVie easily checks off that requirement. The company has increased its dividend payout a whopping 60% since being spun off from parent Abbott Labs in 2013. Counting the time it was part of Abbott, AbbVie has raised its dividend for 45 years in a row, and the company appears to be in great shape to keep those dividend hikes coming well into the future.
Of course, retirees don't mind getting some growth along with that income. AbbVie should be in a solid position to deliver on that front, as well. Wall Street analysts project the company will grow annual earnings by 14% over the next five years.
With tremendous current blockbusters like Humira and cancer drug Imbruvica, combined with an outstanding pipeline, AbbVie likely will meet or exceed that earnings-growth goal.
Johnson & Johnson
Johnson & Johnson isn't too far behind AbbVie with its divided yield of 2.54%. And J&J lays claim to an even more impressive dividend track record, with 55 consecutive years of dividend hikes. The healthcare giant uses less than 55% of its earnings to fund the dividend program, so investors should be able to count on more boosts to the dividend down the road.
However, not everything has gone right for J&J like it has for AbbVie. The company reported lackluster year-over-year sales growth of only 1.9% in the second quarter. J&J's pharmaceutical segment actually saw sales drop slightly from the prior-year period. This was particularly disappointing, since the pharmaceutical segment is the company's biggest moneymaker and its best source of growth historically.
Retirees shouldn't have much to worry about, though. Johnson & Johnson's year-over-year comparisons were negatively impacted by a one-time adjustment of U.S. rebate accruals in the second quarter of 2016. While the company faces competition for its top drug Remicade, several other products are enjoying strong growth, including multiple myeloma drug Darzalex and Imbruvica (with which J&J partners with AbbVie). Even with some headwinds, J&J stock has still posted better performance than the S&P 500 so far this year.
Over the longer term, the prospects for Johnson & Johnson stock seem bright. The company boasts one of the top drug pipelines in the world and has continued to make strategic acquisitions to boost each of its business segments. I expect this big healthcare company to continue being a winner for retirees for decades to come.
Pfizer
If you really like a strong dividend, Pfizer could be just the healthcare stock for you. The big pharma company's dividend yields 3.56%. Pfizer doesn't have the great streak of dividend hikes that AbbVie and J&J claim because the company cut its dividend in the midst of the Great Recession. However, Pfizer has increased its dividend every year since 2009.
Pfizer faces some challenges with sales declining for drugs that have either lost exclusivity, or soon will do so. The company could even lose its position as the No. 1 drugmaker in terms of prescription drug sales, by 2022. Retired investors shouldn't be too concerned, however.
The company still has plenty of potential. Pfizer's Ibrance is on track to generate annual revenue of $7 billion within the next few years. Solid sales momentum continues for anticoagulant Eliquis and autoimmune disease drug Xeljanz. Pfizer also has great expectations for atopic dermatitis drug Eucrisa and prostate cancer drug Xtandi, both of which were gained as a result of acquisitions.
Pfizer's pipeline should also drive earnings growth in the future. The company has 32 programs in late-stage development and another 17 in phase 2 clinical testing. I expect Pfizer to keep up its tradition of making acquisitions to fuel growth, as well.
This big pharma stock has been a favorite of retirees for a long time. I think it still deserves a spot in retirees' portfolios.
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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. | Most important, AbbVie secured a deal that keeps a major biosimilar rival to top-selling autoimmune disease drug Humira off the U.S. market through early 2023. With tremendous current blockbusters like Humira and cancer drug Imbruvica, combined with an outstanding pipeline, AbbVie likely will meet or exceed that earnings-growth goal. Three of the very best healthcare dividend stocks on the market right now are AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . | Three of the very best healthcare dividend stocks on the market right now are AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . AbbVie AbbVie's dividend yields 2.83% right now. But the reason why AbbVie's yield has fallen is a really good one: The stock has soared around 45% so far this year. | Three of the very best healthcare dividend stocks on the market right now are AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . Johnson & Johnson Johnson & Johnson isn't too far behind AbbVie with its divided yield of 2.54%. Pfizer doesn't have the great streak of dividend hikes that AbbVie and J&J claim because the company cut its dividend in the midst of the Great Recession. | AbbVie AbbVie's dividend yields 2.83% right now. However, not everything has gone right for J&J like it has for AbbVie. Three of the very best healthcare dividend stocks on the market right now are AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . |
25943.0 | 2017-10-10 00:00:00 UTC | Healthcare: Are These the Best Dividend Stocks to Buy Now? | ABBV | https://www.nasdaq.com/articles/healthcare-are-these-best-dividend-stocks-buy-now-2017-10-10 | nan | nan | Demand in the healthcare sector isn't tied as closely to the state of the economy as it is in most other sectors. Because of that, dividend-paying healthcare stocks may offer income investors some insulation against market declines.
Is this a good time to consider adding Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) to portfolios? In this episode of The Motley Fool's Industry Focus: Healthcare podcast, analyst Kristine Harjes is joined by contributor Todd Campbell to discuss the risks and opportunities associated with owning these top dividend stocks .
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 Oct. 4, 2017.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. I'm your Healthcare show host, Kristine Harjes. This episode was pre-recorded in early September and is scheduled for release on Oct. 4. Regular listeners might remember that I missed the last two shows because I was on vacation in Greece, and I'm still there, which is weird to say when I'm currently sitting in Alexandria, Virginia. But, on Oct. 4, I will be in Greece. Much appreciation to my partner in crime, Todd Campbell, who is calling in today to do this episode with me today ahead of schedule. Todd, welcome to the show!
Todd Campbell: Welcome to you as well, and I hope you're enjoying your trip. [laughs] Listeners, I tried to convince her to film from Greece, but no, she wasn't having it.
Harjes: No, the signal just wasn't very good. Future-me told me. Anyway, down to business. Something we see in the data on our fool.com articles is that investors are super interested in dividend stocks, which makes sense. Owning shares of a dividend stock allows you to just sit back and passively bring in income, which is kind of nice. These stocks just pay you to be a shareholder. Todd, we'll do a quick primer for anyone who might be newer to dividend investing, and then we'll talk about some of our favorite dividend-paying stocks in the healthcare space. Sound good?
Campbell: Perfect.
Harjes: Alright. Primer -- I guess I already did a mini-primer, where dividend stocks pay you to own them. Something I did want to mention as part of said primer was the Dividend Aristocrats. These are companies that have regularly increased their dividend payout for the past 25 years or more. These are generally all-around fantastic businesses. They have outperformed the S&P pretty significantly over the last three years, five years, 10 years, because these companies are very well established. They're none of your clinical-stage biotechs that we love to talk about so much on these shows. Rather, they're companies that generate predictable cash flow year in and year out, and are thus able to take some of that and reward their shareholders.
Campbell: Kristine, studies have proven that dividend-paying stocks over time outperform their non-dividend-paying peers. And it makes sense, because if you're reinvesting those dividends back into more shares, theoretically, you're going to get a slightly better return. There are multiple reasons that investors have warmed up to dividend stocks. You've obviously got the potential for appreciation just on the stock itself; you've got the extra return that you can get in the form of those dividend payments; and you've got a situation where your alternative sources of income from investing are really pretty small. I mean, with bond yields the way they are today because of years of low interest rates, it's not that attractive to a lot of investors to go out and buy short-term or mid-term Treasury bonds. They'd much rather own income-producing stocks which can yield 1% to 3% higher than that.
Harjes: Fortunately, these dividend-yielding stocks are also a somewhat safer play than non-dividend-yielding stocks. You see if you look at history that these stocks tend to sink less than the broad market does in bear markets. So, it's a great way to minimize your downside risk without having to go to a completely safe style of investing. For example, I have some numbers here: In 2008, the Dividend Aristocrats index declined 22%, which sounds terrible until you look at the S&P 500, which declined 38%. So, this is a very safe way to play. A lot of retirees are interested in this, and also people with a long time horizon, because you can reinvest the dividends. So they're kind of great for everybody.
Campbell: Yeah, it smooths out your returns over time. They won't rise as much in a rip-roaring-growth bull market, but they won't fall as much in a bear market. And especially as you get a little bit older and you're approaching retirement, you want to shift more of your assets to a slightly "safer" investment, dividend stocks can make sense.
And we talk about some of the best dividend stocks that are out there, and certainly there are dividend stocks that investors want to own across all sectors, but I think healthcare has always been considered one of those areas that investors want to concentrate on for dividend-paying stocks, because you do get that constant source of demand that's tied to the fact that the products sold by these companies aren't really elective. If you need to get surgery or you need a medication, you need that medication. It's not like you're going to say, "Well, I'm just not going to take that right now."
Harjes: Yeah, exactly, as opposed to maybe something in the consumer discretionary sector, where you don't really need to buy that new ... I don't know. Something in consumer goods. [laughs] Clearly not my sector.
Campbell: [laughs] Maybe you'll cut back and not buy as many cans of Coca-Cola, right?
Harjes: Right, not as much Coke, not as many clothes. I don't know. Ask Vince on Tuesday.
Anyway, before we go into some of our favorite healthcare dividend stocks, I do want a very quickly give definitions for two phrases that we might be using on this show. The first one is "payout ratio" and the second one is "cash dividend payout ratio." It's pretty important to note that difference. Your payout ratio is, for every dollar of income, how much does the company pay out to its shareholders; whereas the cash dividend payout ratio is, take your dividends and divide it by cash flow minus capital expenditures minus preferred dividends. That last part isn't super important, but technically, they need to be paid out before any regular dividends, so take them out as well.
The reason that you have to differentiate between the two of these is, earnings are calculated according to a ton of accounting rules, and sometimes that can obscure where the number comes from and where the company is actually getting its cash from and how much cash. If you do the cash dividend payout ratio as opposed to the earnings version, you will get a clearer picture of the company's cash flow situation as it relates to the cash that they're putting back in your pocket, which is a much healthier way of looking at sustainability. It's harder to do. I think that's why people don't do it as much. But it's really important.
Campbell: Yeah, it's actually my preferred way of evaluating dividend stocks. That'll probably start off a firestorm of tweets, because we're going to have this big debate between what payout ratio is best. Maybe use them both, and lean on both of them. But, I do tend, especially when you're talking about stocks that could have a lot of one-time items -- acquisitions, divestitures, legal settlements, all sorts of crazy stuff that could impact on earnings over shorter periods of time, that can skew, in my opinion, the regular payout ratio. That's why I like to look at the cash flow situation better. Because cash flow really is the lifeblood, in my opinion, that's going to be necessary to support those dividend payments.
Harjes: Yeah, absolutely. So, with all of those background items out of the way, let's talk about our first company. This might just be my favorite dividend stock out there. This one is Johnson & Johnson. I think I pitched this on a New Year's resolutions show at the turn of 2016. I think we did an Industry Focus theme week where each of the hosts picked a different dividend stock. I chose Johnson & Johnson. I've been a shareholder of it since then, and I've been very happy to have this company. It's extremely reliable, and it has such a large and diverse business that there's always interesting things for me to learn about how the company is moving. And they have a super-super-reliable dividend that has been growing annually for 55 straight years, which is incredible.
Campbell: Yeah. You said reliable a couple of times. Yeah, it's kind of like that car that you always get in, you never have to worry about it starting and going places. It has a fairly diversified business model within healthcare. You've got the consumer goods business that does things like health and beauty, over-the-counter stuff that you would pick up at your Rite Aid . Then you've got the pharmaceuticals business, which does things like makes drugs for use in HIV, or makes drugs that help to treat cancer. And then you've got medical devices, which does things like surgical implants and surgical intervention.
Harjes: What you hear talked about the most with Johnson & Johnson is the pharmaceutical division. That's because it's the largest -- correct me if I'm wrong, the largest?
Campbell: Yes, it is.
Harjes: OK, just making sure. It's the largest division, and it's also the one that moves around the most. It has the most moving parts. For example, one of the most important drugs that Johnson & Johnson makes is called Remicade, and that's on the decline, so meanwhile, you're watching other newer drugs like Darzalex and Imbruvica make up for Remicade's decline.
The way that Johnson & Johnson's pharmaceutical unit operates, and the way it's talked about, is most similar to every other big pharma out there that we discuss on the show.
Campbell: Yeah, they spend a ton of money on R&D. The R&D kicks off a pipeline of products that can theoretically get launched, it'll offset declining sales of older legacy drugs as they lose patent protection. And then, you have the medical device and consumer goods businesses, which are going to be slow, 1% to 5% growth year over year on any given quarter. Pharmaceuticals, like you said -- that's going to be the lever that moves growth either significantly higher or significantly lower. Remicade is a headwind right now, and because it represents a fairly large portion of their pharmaceutical sales, that's going to depress a little bit their financials. But even with Remicade's headwind, this company is still probably not going to show significant revenue or profit declines over the course of the next five years. If you go out 10 or 15 years, based on history -- and of course we all know there's some risk associated with basing it on history -- but if you base it on history, J&J has been one of those companies that rewards investors through thick and thin. And you have to love that 50-plus-year dividend track record.
Harjes: Yeah, sustainability of the dividend is one of the most important components of it. It doesn't matter if a company is going to pay you 50% if it's only going to last two months and then fall apart. But Johnson & Johnson is the total opposite of that. They're yielding only 2.5%, which isn't bad, but it's such a safe dividend. Their payout ratio and cash payout ratio are both right around 50%, which is a very safe range. Generally, we're looking for under 60% there. And they have a ton of cash on the books, they have a ton of drugs in the pipeline, they have firepower for acquisitions if they want. So this is not a dividend that's going to go anywhere any time soon.
Campbell: Yeah, it's a core holding.
Harjes: Yeah, absolutely. Let's talk about a company that might be a little bit more exciting. They have a slightly higher dividend yield. This one is AbbVie.
Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. However, there is a caveat to that higher dividend yield.
Harjes: Which is?
Campbell: Humira. Humira represents the lion's share of AbbVie's sales. It's the top-selling drug in the world, with $16 billion in sales in 2016, and it represents something like 62% of AbbVie's sales.
Harjes: Yeah. Humira and what happens with its patents will mean everything. Amgen already won U.S. approval for a biosimilar, which is a generic version to Humira, last year. It hasn't yet launched this biosimilar yet because of a patent lawsuit filed by AbbVie. AbbVie's management says that they're very sure they'll be able to fend off biosimilar competition through 2022. But that's kind of a big question mark -- do we take management's word for that? And even then, it's only through 2022.
Campbell: Right. Humira sales, we did a show on this in early 2016, Kristine, where we talked about it and we were just amazed, how does management come out and actually guide for sales to increase when they lose patent protection? But that just goes to show you the competitive advantage that Humira has. It's a dominant player in and across autoimmune disease. And sometimes, doctors are very nervous about switching patients off of something that works very well to something else. And since it's a complex biologic, that's a whole another story, because then you have to wonder, how similar is a biosimilar to Humira, and how willing am I to move this patient off of it?
I think they're saying that Humira sales could probably climb up until 2018-2020, somewhere in there, then they'll start to trade down. But, Kristine, this is one of those situations where it's not like it's a surprise to AbbVie's management. They've known that they're losing patent protection on this drug, and they've been working very hard over the last three years to try and diversify themselves into other indications, specifically into hepatitis C and cancer, as a way of building out a company that can withstand any threat to Humira.
Harjes: AbbVie has been a thorn in Gilead Sciences ' (NASDAQ: GILD) HCV side for a while now. I remember when Viekira Pak first came out: That was the first time that Gilead Sciences faced serious competition to its HCV franchise, and AbbVie has not relented. Just recently, they got approval for a pan-genotypic 8-week hepatitis C treatment, which, if you follow the space, you'll know that that's pretty impressive, and that's the best out there so far. So, that could certainly be a solid revenue driver for them, although there's also the argument that population of hepatitis C patients is dwindling as some of the easiest to treat people have already been treated by some of the earlier drugs.
Campbell: Yeah, but I think you still have the ability for this to be a blockbuster category, and I think you're still talking about billions up for grabs. This is probably their best threat so far to Gilead, and a lot of it will come down to pricing and what kind of deals each one of these companies is willing to make with payers.
But, I think, they're going to be a player in hepatitis C for a few more years, at least. And they've already shown, through their acquisition of Pharmacyclics a couple of years ago, that they want to have a really big presence in cancer. As a refresher, when they bought that company, that landed them 50% of Imbruvica.
Harjes: Yes, which is a drug partnered with Johnson & Johnson, actually. So, yeah, that's a huge drug right now approved for blood cancer. I believe they're also studying it in some label extensions as well.
Campbell: Oh, yeah, absolutely. And I think you have the potential out there, some analysts have said that sales could double from here because of those label expansions for that drug. I think that's something to keep an eye on. They also have some interesting drugs in the pipeline. Rova-T, which is being studied in a form of lung cancer or solid tumor cancers, which is an intriguing drug. They've got some interesting things going on in autoimmune disease that may end up producing a successor to Humira. So, maybe they get to a point where, they've protected Humira until 2020, now they've also got this other drug they can start to transfer some of their patients to that instead. So, there are a lot of different levers that management is trying to move up and down to blunt the risk.
Harjes: Yeah. I think AbbVie's management right now sees its own stock as undervalued. If you look at their share-repurchase history, they have been very generous with the buybacks. I think they're trying to take advantage, a little bit, of some of the market's skepticism that they'll be able to overcome the Humira hurdle, and buy back shares now. Which, if management thinks their own shares are cheap, maybe that's a sign that you might want to as well. They do have a really outstanding pipeline. I've seen it called the third-best pipeline out there in biopharma, for whatever that's worth. They currently have a payout ratio and a cash payout ratio that are similarly just under 60%. They've got a solid amount of cash on the balance sheet. And I've seen analysts say that they should be able to deliver average annual earnings growth of around 14% over the next five years, which is pretty solid.
Campbell: Yeah. If you're a little bit more risk tolerant in your portfolio, in your income portfolio, you can make an argument that the shares are undervalued right now because of the risk to Humira. If so, you get a nice two-pronged attack on growth. You get both the chance for shares to rise back up to where the value "should" be, plus you get that nice yield.
Harjes: One other thing about AbbVie that we haven't mentioned yet: They sort of have 45 years of consecutive dividend hikes. The reason I say "sort of" is because that includes the period before the company was spun off by Abbott Labs . But if you include that history, which most people do, then this is another Dividend Aristocrat.
Our third and final company that we want to highlight today is not a Dividend Aristocrat because they cut their dividend during the financial crisis. This one is Pfizer, which yields just under 4%.
Campbell: I put Pfizer in the middle of these three as far as the risk spectrum goes. Pfizer has been dealing for years with the overhang of sliding sales tied to the patent expiration on what was once the best-selling drug in the world, Lipitor, which you and listeners may know as being the most widely used statin for lowering bad cholesterol.
That was a $14 billion-a-year drug at one point. And obviously, losing patent protection on it created a very big headwind to try and overcome for this company. It appears that they may be finally turning the corner now, and if so, getting back to growth. And if they're getting back to growth, and cash flow trends up because of all the restructuring and all the costs that they x-ed out of their system over the last seven years, then that dividend could expand.
Harjes: Yeah. Pfizer was the poster child for the patent cliff when a ton of its drugs lost their patent protection and had their sales eaten away by generic competition. Lipitor lost its patent in 2011. When I mentioned that Pfizer had to cut its dividend during the financial crisis, this was largely due to a ginormous $68 billion acquisition of Wyeth at a time when capital was kind of hard to come by. So, they had to cut their dividend. And it's actually taken until early this year to get back to the pre-Wyeth acquisition payout levels. But it's something that they kind of had to do back then. They were facing 14 total patent expirations through 2014. That was going to be $35 billion in lost revenue. So, this company had to buy growth. They also had to have organic growth. And they're finally starting to get back on their feet. I think they look pretty strong right now.
Campbell: It was the right move. I really do think it was the right move. I mean, you have famous investors like Buffett who have come out in the past and said, I don't necessarily really like dividend stocks, I'd rather have companies that can reinvest in themselves and get bigger that way instead. I think Pfizer had to make a decision, had to make the decision of, do I try and find the money somewhere in the budget to pay this dividend, or do I reallocate that money to R&D and acquisitions. As a result, it's on very stable financial ground now. It has one of the best balance sheets out there in pharmaceuticals. It was only a couple of years ago that they were proposing a $160 billion merger and acquisition.
Harjes: Which is insane!
Campbell: Yeah. So, they have a tremendous amount of financial flexibility.
Harjes: And they don't have $160 billion in cash. I will point that out. They have $14 billion. But still, if they were to make that, if they had been able to make that Allergan acquisition when they were looking at it, low-interest debt is so much easier to come by now. So, yes, they do have more firepower.
Campbell: Yeah, financial flexibility is the key. They're leaner and meaner than they were before. Sales could come in between $52 billion and $54 billion this year. If so, that's a start in the right direction upward from where they were last year. Earnings are growing more quickly than revenue because of all that cost cutting they did. And the yield is fine, and the payout ratios are fine. I think this is a company that is worth taking a little bit of risk on. We haven't even dived into the potential for things like their biosimilars pipeline, which they bought when they acquired Hospira, or the potential to continue to expand in cancer, which they've done through buying Medivation more recently.
Harjes: Yeah, they have 32 different late-stage clinical programs. I know that nine of them are for one single drug in different cancers. Another four of the 32 are for biosimilars. So, all these different areas that you've mentioned are places where they're not just dabbling but they're pushing pretty hard, and they have late-stage candidates that will hopefully hit the market very soon and continue to drive growth.
Campbell: Time will tell. Listen, income investors have to look at stocks the same way that I think regular investors do, which is that you have to consider the business first. If you look at all three of these names, look at the business first. Do you believe that the business is in a position to continue to kick off increasingly more cash flow? If you believe that, then it's worth investing in it, because more cash flow will mean bigger dividend payouts. If you don't believe that, then don't invest in these stocks.
Harjes: Yeah, no matter what the dividend yield is.
Campbell: Correct. I think that many investors who are new to income investing chase the yield. They say, "This is a high dividend yielding stock, I have to buy it," forgetting that the business itself is more important than the yield.
Harjes: Yeah, absolutely. It takes a little bit more time to do that research, but that's why you have us, hopefully helping you out on this show, and all of the great articles written by Todd Campbell and the like on fool.com.
Todd, thanks so much for joining me today. Folks, thanks for listening. 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 and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson & Johnson. The Motley Fool has the following options: short October 2017 $86 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. | Is this a good time to consider adding Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) to portfolios? This one is AbbVie. Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. | Is this a good time to consider adding Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) to portfolios? This one is AbbVie. Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. | Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. Is this a good time to consider adding Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) to portfolios? This one is AbbVie. | Campbell: AbbVie is a very interesting stock, and I think that its higher dividend yield makes it jump out to investors who are looking for healthcare dividend-paying companies. Is this a good time to consider adding Johnson & Johnson (NYSE: JNJ) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) to portfolios? This one is AbbVie. |
25944.0 | 2017-10-10 00:00:00 UTC | Ex-Dividend Reminder: Foot Locker, Patterson Companies and AbbVie | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder-foot-locker-patterson-companies-and-abbvie-2017-10-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , on 10/12/17, Foot Locker, Inc. (Symbol: FL), Patterson Companies Inc (Symbol: PDCO), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Foot Locker, Inc. will pay its quarterly dividend of $0.31 on 10/27/17, Patterson Companies Inc will pay its quarterly dividend of $0.26 on 10/27/17, and AbbVie Inc will pay its quarterly dividend of $0.64 on 11/15/17. As a percentage of FL's recent stock price of $33.58, this dividend works out to approximately 0.92%, so look for shares of Foot Locker, Inc. to trade 0.92% lower - all else being equal - when FL shares open for trading on 10/12/17. Similarly, investors should look for PDCO to open 0.69% lower in price and for ABBV to open 0.71% lower, all else being equal.
Below are dividend history charts for FL, PDCO, and ABBV, showing historical dividends prior to the most recent ones declared.
Foot Locker, Inc. (Symbol: FL) :
Patterson Companies Inc (Symbol: PDCO) :
AbbVie Inc (Symbol: ABBV) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 3.69% for Foot Locker, Inc., 2.78% for Patterson Companies Inc, and 2.83% for AbbVie Inc.
In Tuesday trading, Foot Locker, Inc. shares are currently up about 0.6%, Patterson Companies Inc shares are down about 0.5%, and AbbVie Inc shares are off about 0.5% on the day.
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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 they do continue, the current estimated yields on annualized basis would be 3.69% for Foot Locker, Inc., 2.78% for Patterson Companies Inc, and 2.83% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel , on 10/12/17, Foot Locker, Inc. (Symbol: FL), Patterson Companies Inc (Symbol: PDCO), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Foot Locker, Inc. will pay its quarterly dividend of $0.31 on 10/27/17, Patterson Companies Inc will pay its quarterly dividend of $0.26 on 10/27/17, and AbbVie Inc will pay its quarterly dividend of $0.64 on 11/15/17. | Looking at the universe of stocks we cover at Dividend Channel , on 10/12/17, Foot Locker, Inc. (Symbol: FL), Patterson Companies Inc (Symbol: PDCO), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Foot Locker, Inc. will pay its quarterly dividend of $0.31 on 10/27/17, Patterson Companies Inc will pay its quarterly dividend of $0.26 on 10/27/17, and AbbVie Inc will pay its quarterly dividend of $0.64 on 11/15/17. Foot Locker, Inc. (Symbol: FL) : Patterson Companies Inc (Symbol: PDCO) : AbbVie Inc (Symbol: ABBV) : In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel , on 10/12/17, Foot Locker, Inc. (Symbol: FL), Patterson Companies Inc (Symbol: PDCO), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Foot Locker, Inc. will pay its quarterly dividend of $0.31 on 10/27/17, Patterson Companies Inc will pay its quarterly dividend of $0.26 on 10/27/17, and AbbVie Inc will pay its quarterly dividend of $0.64 on 11/15/17. Foot Locker, Inc. (Symbol: FL) : Patterson Companies Inc (Symbol: PDCO) : AbbVie Inc (Symbol: ABBV) : In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel , on 10/12/17, Foot Locker, Inc. (Symbol: FL), Patterson Companies Inc (Symbol: PDCO), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 3.69% for Foot Locker, Inc., 2.78% for Patterson Companies Inc, and 2.83% for AbbVie Inc. Foot Locker, Inc. will pay its quarterly dividend of $0.31 on 10/27/17, Patterson Companies Inc will pay its quarterly dividend of $0.26 on 10/27/17, and AbbVie Inc will pay its quarterly dividend of $0.64 on 11/15/17. |
25945.0 | 2017-10-08 00:00:00 UTC | 3 Best Healthcare Dividend Aristocrat Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-best-healthcare-dividend-aristocrat-stocks-you-can-buy-right-now-2017-10-08 | nan | nan | "Dividend Aristocrat" just has a nice ring to it, doesn't it? The "dividend" part sounds great because it means a stock is going to pay you to own it. "Aristocrat" conveys nobility, an elite status that most don't have. Dividend Aristocrat stocks are magnets for income-seeking investors as a result of their sterling track records of dividend hikes.
The healthcare sector currently has the third-highest number of stocks in the Dividend Aristocrats, ranking behind only consumer staples and industrials. But some of these stocks are better than others. Here's why AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Medtronic (NYSE: MDT) appear to be the best healthcare Dividend Aristocrat stocks you can buy right now.
AbbVie
Although AbbVie technically didn't begin operations as a standalone entity until 2013, the big drugmaker qualifies as a Dividend Aristocrat because it was part of Abbott Labs during a 40-year period where its parent company increased its dividend annually. Over the last five years, AbbVie has kept up the tradition, boosting its dividend by 60%.
AbbVie's dividend currently yields just under 2.9%. That's on the low end of the yield over the past few years, but it's due to a great reason: AbbVie stock has soared more than 40% so far in 2017.
A big reason behind the stock's performance was AbbVie's recently announced deal with Amgen that keeps a major threat to top-selling drug Humira off the U.S. market until early 2023. AbbVie now appears to be in a good position to roll out new drugs from its deep pipeline, which should fuel additional growth, while not having to worry too much about a major loss of revenue for Humira.
Johnson & Johnson
Healthcare giant Johnson & Johnson has increased its dividend for a remarkable 55 consecutive years. Its yield now stands just above 2.5%. That's higher the the S&P 500 average yield of roughly 2%.
There shouldn't be any concerns at all about J&J's ability to keep the dividends (and the dividend hikes) coming. The company uses less than 55% of its earnings to fund the dividend program. Johnson & Johnson also generates an enormous cash flow that would allow it to pay out dividends even if earnings dipped -- which happened in the company's second quarter .
Although J&J faces some headwinds for its pharmaceuticals segment (the company's biggest moneymaker), those should be temporary. The company is managing loss of exclusivity for autoimmune disease drug Remicade better than many expected. It also has one of the best pipelines in the biopharmaceutical industry (as does AbbVie). In addition, J&J completed the acquisition of Actelion this summer, a deal expected to boost future revenue and earnings growth.
Medtronic
Medtronic claims a 40-year streak of annual dividend increases. What's even more impressive is that the big medical-device maker has grown its dividend during that period by a compound annual growth rate of 17%.
The company's dividend yield of nearly 2.4% narrowly trails that of J&J. However, Medtronic's dividend hikes have been larger on a percentage basis than J&J's in recent years. If this trend continues, it won't be long before Medtronic has the more attractive yield.
Probably the best thing for investors to like about Medtronic is its moat . The company makes a wide array of medical devices and has strong relationships with hospitals and physicians. Medtronic also invests heavily in research and development for new products and partners with other companies (such as its collaboration with Mazor Roboticsto market robotic surgical systems for spine and brain procedures ). Like AbbVie and Johnson & Johnson, Medtronic appears to be a solid long-term pick for income-seeking investors.
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Keith Speights owns shares of AbbVie. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool owns shares of Medtronic. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A big reason behind the stock's performance was AbbVie's recently announced deal with Amgen that keeps a major threat to top-selling drug Humira off the U.S. market until early 2023. AbbVie now appears to be in a good position to roll out new drugs from its deep pipeline, which should fuel additional growth, while not having to worry too much about a major loss of revenue for Humira. Here's why AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Medtronic (NYSE: MDT) appear to be the best healthcare Dividend Aristocrat stocks you can buy right now. | Here's why AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Medtronic (NYSE: MDT) appear to be the best healthcare Dividend Aristocrat stocks you can buy right now. Like AbbVie and Johnson & Johnson, Medtronic appears to be a solid long-term pick for income-seeking investors. AbbVie Although AbbVie technically didn't begin operations as a standalone entity until 2013, the big drugmaker qualifies as a Dividend Aristocrat because it was part of Abbott Labs during a 40-year period where its parent company increased its dividend annually. | Here's why AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Medtronic (NYSE: MDT) appear to be the best healthcare Dividend Aristocrat stocks you can buy right now. AbbVie Although AbbVie technically didn't begin operations as a standalone entity until 2013, the big drugmaker qualifies as a Dividend Aristocrat because it was part of Abbott Labs during a 40-year period where its parent company increased its dividend annually. Over the last five years, AbbVie has kept up the tradition, boosting its dividend by 60%. | AbbVie's dividend currently yields just under 2.9%. Like AbbVie and Johnson & Johnson, Medtronic appears to be a solid long-term pick for income-seeking investors. Here's why AbbVie (NYSE: ABBV) , Johnson & Johnson (NYSE: JNJ) , and Medtronic (NYSE: MDT) appear to be the best healthcare Dividend Aristocrat stocks you can buy right now. |
25946.0 | 2017-10-08 00:00:00 UTC | AbbVie's Fast Becoming a Top Stock to Buy Now | ABBV | https://www.nasdaq.com/articles/abbvies-fast-becoming-top-stock-buy-now-2017-10-08 | nan | nan | AbbVie Inc. 's (NYSE: ABBV) making considerable progress toward reducing its reliance on its top-selling autoimmune disease drug, Humira, and recent patent news that could sideline Humira knock-offs beyond 2020 suggests that investors ought to take a good, hard look at owning this company's stock in their portfolio.
Protecting patents
As of the second quarter, Humira generates about two-thirds of AbbVie's $28 billion in annualized sales. Clearly, sidestepping the threat posed by expiring Humira patents won't be easy.
Humira's composition of matter patent already expired in the U.S. and the Food and Drug Administration has already OK'd two Humira biosimilars that AbbVie's competitors are itching to launch when they get the all-clear from lawyers.
Fortunately for AbbVie's investors, it appears those launches aren't going to happen as soon as competition would like. Amgen (NASDAQ: AMGN) and Coherus (NASDAQ: CHRS) have been fighting AbbVie over AbbVie's patents but both of these companies appear to be giving up hope of a speedy rollout of their biosimilars in the United States.
In September, the U.S. Patent Office refused Coherus' request to grant an inter partes review of a key Humira patent. That decision may have influenced Amgen's decision last month to abandon its patent challenge in exchange for a nonexclusive license to market its Humira biosimilar in the U.S. beginning in January 2023. Amgen can market its Humira biosimilar in Europe as soon as next year, but Amgen will have to pay AbbVie royalties.
Amgen's deal could lead other biosimilar companies to ink similar agreements with AbbVie, and for that reason, AbbVie's short-term financial outlook looks much better now than it did a couple months ago.
Big strides in diversification
At the same time that AbbVie's been digging a moat around Humira's market share, it's also been spending billions of dollars on acquisitions and R&D to diversify itself.
In 2015, AbbVie spent $21 billion to buy 50% of the rights to the fast-growing blood cancer drug Imbruvica. It also spent over $5 billion to lock up Rova-T, a cancer drug that's in clinical trials for the treatment of solid tumor cancers, including lung cancer.
Those decisions are pivotal to the company's strategy to become a top player in oncology. Since launching in 2014, Imbruvica's steadily won market share in chronic lymphocytic leukemia (CLL). Currently, Imbruvica's market share in the first-line setting is 33% and it's being used in 70% of second-line CLL patients. As a result, Imbruvica's global sales, which AbbVie shares with Johnson & Johnson , grew 42% year over year to $626 million in the second quarter.
Imbruvica's peak sales potential, however, could be a lot higher than that because studies are ongoing that could expand its addressable market. For example, in August, the FDA OK'd Imbruvica's use in chronic graft-versus-host disease, a life-threatening condition in transplant patients.
AbbVie hopes Rova-T could be similarly successful. A study is currently evaluating it in small cell lung cancer and that trial is expected to wrap up next year. If the trial data is positive, Rova-T could nab an accelerated approval, and if it does, then AbbVie could find itself marketing one of the top blood cancer drugs (Imbruvica) and one of the top solid tumor cancer drugs (Rova-T) on the market.
AbbVie's also got an opportunity to drive sales higher for Venclexta, a CLL drug that's used in patients with a 17p deletion mutation. AbbVie expects Venclexta's full-year sales to be $125 million this year, but sales could head higher now that trial results show using it alongside Rituxan can improve progression-free survival in CLL patients regardless of 17p deletion status.
Outside of oncology, AbbVie's also got a lot going on.
The company just launched its next-generation hepatitis C drug, Maviret, a pan-genotypic therapy that delivers high 90% cure rates in as little as eight weeks. Maviret's efficacy and dosing suggest to me that it's the stiffest competition yet to Gilead Sciences ' domination in this multibillion market. AbbVie's first-generation hepatitis C drug, Viekira Pak, wasn't nearly as good as Maviret, yet it still generated billions of dollars in sales for AbbVie.
AbbVie's got autoimmune disease drugs in development that could supplant Humira, too. Its ABT-494, or upadacitinib, is already reading out positively in moderate to severe rheumatoid arthritis and a mid-stage study recently reported encouraging data in moderate to severe eczema. Phase 2 studies suggest that another autoimmune disease drug in its pipeline, risankizumab, could someday treat other important autoimmune disease indications, such as Crohn's disease, as well.
Investor takeaway
R&D wins and clarity into Humira's patent outlook have already caused AbbVie's shares to rally sharply higher this year. However, I think there's still running room
AbbVie's already said it expects Humira's sales to climb from $16 billion last year to $20 billion in 2020. It's also said total sales could reach $37 billion that year. If so, that should translate into plenty of profit and dividend-friendly cash flow.
Ultimately, AbbVie's long-term success depends on how prepared it is for the day when Humira finally begins losing sales to competing biosimilars. So far, management's given investors plenty of reason to feel confident that it's making the right moves for the future, and for that reason, I'm increasingly optimistic about owning AbbVie's stock.
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The author(s) may have a position in any stocks mentioned.
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool owns shares of 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. | Big strides in diversification At the same time that AbbVie's been digging a moat around Humira's market share, it's also been spending billions of dollars on acquisitions and R&D to diversify itself. Investor takeaway R&D wins and clarity into Humira's patent outlook have already caused AbbVie's shares to rally sharply higher this year. Ultimately, AbbVie's long-term success depends on how prepared it is for the day when Humira finally begins losing sales to competing biosimilars. | As a result, Imbruvica's global sales, which AbbVie shares with Johnson & Johnson , grew 42% year over year to $626 million in the second quarter. If the trial data is positive, Rova-T could nab an accelerated approval, and if it does, then AbbVie could find itself marketing one of the top blood cancer drugs (Imbruvica) and one of the top solid tumor cancer drugs (Rova-T) on the market. AbbVie expects Venclexta's full-year sales to be $125 million this year, but sales could head higher now that trial results show using it alongside Rituxan can improve progression-free survival in CLL patients regardless of 17p deletion status. | AbbVie Inc. 's (NYSE: ABBV) making considerable progress toward reducing its reliance on its top-selling autoimmune disease drug, Humira, and recent patent news that could sideline Humira knock-offs beyond 2020 suggests that investors ought to take a good, hard look at owning this company's stock in their portfolio. If the trial data is positive, Rova-T could nab an accelerated approval, and if it does, then AbbVie could find itself marketing one of the top blood cancer drugs (Imbruvica) and one of the top solid tumor cancer drugs (Rova-T) on the market. AbbVie's first-generation hepatitis C drug, Viekira Pak, wasn't nearly as good as Maviret, yet it still generated billions of dollars in sales for AbbVie. | Amgen (NASDAQ: AMGN) and Coherus (NASDAQ: CHRS) have been fighting AbbVie over AbbVie's patents but both of these companies appear to be giving up hope of a speedy rollout of their biosimilars in the United States. As a result, Imbruvica's global sales, which AbbVie shares with Johnson & Johnson , grew 42% year over year to $626 million in the second quarter. However, I think there's still running room AbbVie's already said it expects Humira's sales to climb from $16 billion last year to $20 billion in 2020. |
25947.0 | 2017-10-07 00:00:00 UTC | This Dirt-Cheap Biotech Stock Is a Bargain to Buy | ABBV | https://www.nasdaq.com/articles/dirt-cheap-biotech-stock-bargain-buy-2017-10-07 | nan | nan | Gilead Sciences ' (NASDAQ: GILD) sliding hepatitis C revenue has taken a toll on its share price since 2015 and new competition from AbbVie (NYSE: ABBV) poses an even bigger risk to its future hepatitis C revenue. Given that hepatitis C revenue has slipped from an annualized run rate of about $20 billion to $12 billion exiting the second quarter, it's little wonder Gilead Sciences has ended up in investors' discard pile. Nevertheless, there's a lot that could go right for Gilead Sciences from here and a bargain-basement valuation has me thinking that now is a good time to buy shares in this beaten-up biotech.
No. 1: A big splash
Make no mistake, Gilead Sciences' decision to leapfrog to the forefront of oncology research with its acquisition of Kite Pharma is a big reason why I think this company's stock should be in your portfolio.
Buying Kite Pharma landed Gilead Sciences' chimeric antigen T-cell receptor (CAR-T) therapies that amp up a patient's ability to seek out and destroy cancer cells. This approach involves removing T-cells from a patient, shipping them to a lab for reengineering and then infusing them back into the patient. In clinical trials, the response rates to CAR-T were impressive in tough-to-treat non-Hodgkin lymphoma patients and that has me thinking the Food and Drug Administration will give Gilead Sciences' lead CAR-T, axi-cel, the green light when it issues a decision on Nov. 30.
If it gets an OK, Gilead Sciences has capacity in place to treat 4,000 patients in the first year of commercialization, and since axi-cel is likely to cost upwards of $300,000, it could quickly add $1 billion or more to Gilead Sciences' top-line results.
However, axi-cel isn't the only reason why investors should cheer Gilead Sciences' decision to buy Kite Pharma. The deal also netted Gilead Sciences additional CAR-T therapies that could allow its use in other cancer indications someday. For example, work is underway in multiple myeloma, and that alone is a multibillion-dollar treatment market. Additionally, the acquisition also landed Gilead Sciences a second promising platform for drug development called T-cell receptor (TCR) technology. Eventually, TCR could allow Gilead Sciences to treat patients with solid tumor cancers that aren't as easily tackled by CAR-T.
No. 2: Awesome operating margins
Declining hepatitis C drug sales have taken a toll on Gilead Sciences' share price, but its operating margin still remains best in class among its big-cap biotech peers. For instance, Gilead Sciences makes more profit per sales dollar than both Celgene and Amgen .
GILD Operating Margin (TTM) . Data by YCharts .
In part, Gilead Sciences' top-tier margin is due to focusing on the development of drugs that can dominate standard of care. It's been on the cutting edge of HIV treatment for over a decade and ongoing investments in combination drugs that are safer and more effective and thus provide it with enviable market share and pricing power. In less than two years, combination HIV therapies that include TAF, a safer formulation of its top-selling Viread, are generating over $1 billion in sales per quarter and one of those drugs, Genvoya, is now the most prescribed drug in newly diagnosed HIV patients.
Similarly, while it faces increasingly more competition in hepatitis C, it pioneered the development of high cure rate treatments. The company's launched four hepatitis C drugs in the past four years, and although curing hepatitis C is shrinking the overall market, Gilead Sciences remains the market-share leader in the indication.
A big benefit from the company's business model is that it allows it to spend less on selling, general, and administrative costs (SG&A) and more on research and development (R&D) than its competitors. As a percentage of sales, Gilead Sciences spends far less than Celgene and Amgen, and despite spending $4 billion on R&D, its R&D expenses to revenue are also lower than its competitors.
GILD SG&A to Revenue (TTM) . Data by YCharts .
No. 3: Bargain-basement price tag
Gilead Sciences' reputation for drug discovery and development could mean that the hit to revenue caused by slowing hepatitis C sales will be temporary. If so, then buying shares when its price by its earnings (P/E) ratio is only about 9 could be savvy. Gilead Sciences isn't just cheap on a P/E basis, either. Divide its share price by the company's break-up value, and you get a price-to-book ratio that's below 5. Divide its share price by its sales over the past 12 months and you get a price-to-sales ratio of less than 4. In all three cases, these valuation measures are at or near 10-year lows.
GILD P/E Ratio (TTM) . Data by YCharts .
Investor takeaway
Gilead Sciences' shares could go up, down, or sideways over the short term, but I think long-term investors ought to be using current prices as an opportunity to buy. The company's industry-leading operating metrics suggest that if it wins an FDA green light for axi-cel, its earnings could climb faster than people think, and if that's true, then easier year-over-year comparisons because of the current weakness could help this company's shares get back to their winning ways.
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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 the following options: short October 2017 $86 calls on Gilead Sciences. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gilead Sciences ' (NASDAQ: GILD) sliding hepatitis C revenue has taken a toll on its share price since 2015 and new competition from AbbVie (NYSE: ABBV) poses an even bigger risk to its future hepatitis C revenue. Buying Kite Pharma landed Gilead Sciences' chimeric antigen T-cell receptor (CAR-T) therapies that amp up a patient's ability to seek out and destroy cancer cells. It's been on the cutting edge of HIV treatment for over a decade and ongoing investments in combination drugs that are safer and more effective and thus provide it with enviable market share and pricing power. | Gilead Sciences ' (NASDAQ: GILD) sliding hepatitis C revenue has taken a toll on its share price since 2015 and new competition from AbbVie (NYSE: ABBV) poses an even bigger risk to its future hepatitis C revenue. Buying Kite Pharma landed Gilead Sciences' chimeric antigen T-cell receptor (CAR-T) therapies that amp up a patient's ability to seek out and destroy cancer cells. Additionally, the acquisition also landed Gilead Sciences a second promising platform for drug development called T-cell receptor (TCR) technology. | Gilead Sciences ' (NASDAQ: GILD) sliding hepatitis C revenue has taken a toll on its share price since 2015 and new competition from AbbVie (NYSE: ABBV) poses an even bigger risk to its future hepatitis C revenue. If it gets an OK, Gilead Sciences has capacity in place to treat 4,000 patients in the first year of commercialization, and since axi-cel is likely to cost upwards of $300,000, it could quickly add $1 billion or more to Gilead Sciences' top-line results. 2: Awesome operating margins Declining hepatitis C drug sales have taken a toll on Gilead Sciences' share price, but its operating margin still remains best in class among its big-cap biotech peers. | Gilead Sciences ' (NASDAQ: GILD) sliding hepatitis C revenue has taken a toll on its share price since 2015 and new competition from AbbVie (NYSE: ABBV) poses an even bigger risk to its future hepatitis C revenue. Buying Kite Pharma landed Gilead Sciences' chimeric antigen T-cell receptor (CAR-T) therapies that amp up a patient's ability to seek out and destroy cancer cells. If so, then buying shares when its price by its earnings (P/E) ratio is only about 9 could be savvy. |
25948.0 | 2017-10-07 00:00:00 UTC | 3 Blockbuster Drugs That Still Cost More Than They Should | ABBV | https://www.nasdaq.com/articles/3-blockbuster-drugs-still-cost-more-they-should-2017-10-07 | nan | nan | Asking, "Is there a generic for that?" usually saves a bundle when your doctor prescribes an expensive brand-name drug. If you're one of the thousands of Americans who rely on Humira, Enbrel, or Remicade, though, odds are you'll still be paying through the nose for branded versions of these drugs, sold by AbbVie (NYSE: ABBV) , Amgen (NASDAQ: AMGN) , and Johnson & Johnson (NYSE: JNJ) , respectively.
Even though the Food and Drug Administration has already approved copycat versions to be sold at a discount, U.S. sales of these three blockbuster drugs keep rising and are on pace to reach a combined $21 billion this year. So you might be surprised to learn that countries other than the U.S. are spending less on all of these drugs than they did a few years ago.
Humira, Enbrel, and Remicade are complex biologic drugs , which are impossible to recreate with 100% accuracy. This is why we need to use the term bio similar , instead of generic, to describe copycat versions that competitors sell at a discount to the branded versions that have lost patent protection.
Biosimilar competition is pressuring sales of these drugs outside of the U.S., but Americans are spending more than ever. Here are a few reasons why.
1. Remicade: Exclusionary contracts
J&J's arthritis treatment Remicade became one of the first biologic drugs to encounter biosimilar competition in the EU when Hospira, now a Pfizer (NYSE: PFE) subsidiary, launched its version, called Inflectra, in 2015. Merck & Co. markets Remicade throughout the EU, Russia, and Turkey, where sales have plummeted from $2.37 billion in 2014 to an annualized run rate of just $874 million this year. In the U.S., though, Remicade sales actually increased around 8% over the same period to a $4.49 billion run rate.
Old Biologic Drugs Still on the Rise in the U.S.
Infogram
Pfizer managed to sell just $40 million worth of Inflectra in the U.S. in the first half of 2017, even though it's been available at around a 10% discount to Remicade since last October. Pfizer claims Johnson & Johnson threatened to withhold significant rebates from insurers unless they signed "biosimilar-exclusion" contracts that prevent them from reimbursing healthcare providers for any form of Remicade other than the branded version.
Remicade isn't a pill you pick up at your favorite pharmacy. The injections are generally performed by professional caregivers that stock the treatment on site. Pfizer claims these healthcare providers simply refuse to stock Inflectra or any Remicade biosimilar, rather than try to predict which patients' insurance providers will eventually issue a reimbursement.
Pfizer recently filed a lawsuit that will force J&J into court to answer these anticompetitive allegations. In the meantime, though, thousands of Americans with rheumatoid arthritis, or at least their insurers, will probably end up paying a lot more for their Remicade treatments than they should.
2. Enbrel: Lawyer-palooza
California's Amgen might have the industry's most fearsome legal team. Novartis is learning this the hard way as it tries to launch biosimilar versions of Amgen's best-selling drugs.
International sales of Amgen's top product, Enbrel, have been slipping, but they're still going strong in the U.S. even though the FDA approved a biosimilar version from Novartis, called Erelzi, over a year ago.
Patients and insurers eager to switch to Erelzi will have to wait. Earlier this year, the Swiss pharma giant said it won't be able to begin selling Erelzi until 2018 at the earliest, because of a patent protection challenge.
Amgen asserts secondary patents protect Enbrel's exclusivity in the U.S. until 2029. That seems like an awfully long time, but there's really no telling how much longer various patent protection challenges can continue to limit patient access to Erelzi and other biosimilars.
3. Humira: Let's not fight at home
While Amgen fights off biosimilar competition for its own brands, it's rolling out biosimilars of its own. The FDA approved the company's version of AbbVie's immunosuppressant Humira last September, but Amgen recently agreed not to launch Amjevita until 2023 in the U.S., and until 2018 in the EU.
While the main U.S. patent concerning Humira's molecular composition has expired, AbbVie boasts dozens of additional patents its legal department can use to defend this product, which is on track to generate around $18 billion in global sales this year. Remember, patents don't necessarily need to survive upcoming legal challenges to benefit AbbVie. The challenges themselves are usually enough to file injunctions that keep biosimilars from launching while the gears of justice slowly grind toward a solution.
Looking ahead
Although biosimilars haven't made a dent in U.S. sales of these blockbuster drugs yet, keeping them at bay will get tougher. Drugmakers must provide the original manufacturer with a 180-day marketing notice when the FDA begins reviewing their biosimilar candidates. Amgen tried to argue the 180-day period begins after biosimilars earn FDA approval, a difference of about 10 months in most cases. The Supreme Court recently ruled the 180-day waiting period begins when the notice is filed, either before or after approval.
In another couple years, interchangeability status could have an even bigger effect. At the moment Americans don't receive biosimilars unless their doctors prescribe one by name. Doctors often avoid prescribing biosimilars due to a lingering perception the drugs they reference are somehow superior. This is why the FDA has developed a process for developing interchangeable biosimilars, which can be substituted for the branded drugs spelled out in the script by pharmacists themselves.
In the EU, approved biosimilars are considered interchangeable from the outset. Unfortunately for U.S. consumers, the FDA didn't get around to outlining just how a biosimilar can become interchangeable until earlier this year and doesn't expect to award any interchangeable status upgrades for another couple years. In the meantime, it looks like Americans will be spending a lot more for these three drugs than they probably should.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you're one of the thousands of Americans who rely on Humira, Enbrel, or Remicade, though, odds are you'll still be paying through the nose for branded versions of these drugs, sold by AbbVie (NYSE: ABBV) , Amgen (NASDAQ: AMGN) , and Johnson & Johnson (NYSE: JNJ) , respectively. The FDA approved the company's version of AbbVie's immunosuppressant Humira last September, but Amgen recently agreed not to launch Amjevita until 2023 in the U.S., and until 2018 in the EU. While the main U.S. patent concerning Humira's molecular composition has expired, AbbVie boasts dozens of additional patents its legal department can use to defend this product, which is on track to generate around $18 billion in global sales this year. | If you're one of the thousands of Americans who rely on Humira, Enbrel, or Remicade, though, odds are you'll still be paying through the nose for branded versions of these drugs, sold by AbbVie (NYSE: ABBV) , Amgen (NASDAQ: AMGN) , and Johnson & Johnson (NYSE: JNJ) , respectively. The FDA approved the company's version of AbbVie's immunosuppressant Humira last September, but Amgen recently agreed not to launch Amjevita until 2023 in the U.S., and until 2018 in the EU. While the main U.S. patent concerning Humira's molecular composition has expired, AbbVie boasts dozens of additional patents its legal department can use to defend this product, which is on track to generate around $18 billion in global sales this year. | If you're one of the thousands of Americans who rely on Humira, Enbrel, or Remicade, though, odds are you'll still be paying through the nose for branded versions of these drugs, sold by AbbVie (NYSE: ABBV) , Amgen (NASDAQ: AMGN) , and Johnson & Johnson (NYSE: JNJ) , respectively. The FDA approved the company's version of AbbVie's immunosuppressant Humira last September, but Amgen recently agreed not to launch Amjevita until 2023 in the U.S., and until 2018 in the EU. While the main U.S. patent concerning Humira's molecular composition has expired, AbbVie boasts dozens of additional patents its legal department can use to defend this product, which is on track to generate around $18 billion in global sales this year. | If you're one of the thousands of Americans who rely on Humira, Enbrel, or Remicade, though, odds are you'll still be paying through the nose for branded versions of these drugs, sold by AbbVie (NYSE: ABBV) , Amgen (NASDAQ: AMGN) , and Johnson & Johnson (NYSE: JNJ) , respectively. The FDA approved the company's version of AbbVie's immunosuppressant Humira last September, but Amgen recently agreed not to launch Amjevita until 2023 in the U.S., and until 2018 in the EU. While the main U.S. patent concerning Humira's molecular composition has expired, AbbVie boasts dozens of additional patents its legal department can use to defend this product, which is on track to generate around $18 billion in global sales this year. |
25949.0 | 2017-10-06 00:00:00 UTC | First American Bank Buys DowDuPont Inc, Citigroup Inc, British American Tobacco PLC, Sells E.I. ... | ABBV | https://www.nasdaq.com/articles/first-american-bank-buys-dowdupont-inc-citigroup-inc-british-american-tobacco-plc-sells-ei | nan | nan | First American Bank
New Purchases: DWDP , BTI , PCG , RSG, VNQ, CAT, VFH, CLVS, IBB, YHDT,
Added Positions:C, WRK, UNH, WMT, CCL, LDOS, JPM, DHI, LUV, CELG,
Reduced Positions:VZ, SJM, ETR, PXD, BOH, MHK, T, MCHP, LLY, SLB,
Sold Out:DD, CAG, SYF, HFC, LITE, USCR, REGN, KEY, HA, GM,
For the details of FIRST AMERICAN BANK's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FIRST+AMERICAN+BANK
These are the top 5 holdings of FIRST AMERICAN BANK
PepsiCo Inc ( PEP ) - 323,264 shares, 6.14% of the total portfolio. Shares reduced by 1.08%
Apple Inc ( AAPL ) - 208,615 shares, 5.48% of the total portfolio. Shares reduced by 0.41%
AbbVie Inc ( ABBV ) - 178,870 shares, 2.71% of the total portfolio. Shares reduced by 3.96%
Microsoft Corp ( MSFT ) - 212,176 shares, 2.69% of the total portfolio. Shares reduced by 1.06%
JPMorgan Chase & Co ( JPM ) - 148,508 shares, 2.42% of the total portfolio. Shares added by 2.01%
New Purchase: DowDuPont Inc (DWDP)
First American Bank initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.16. The impact to the portfolio due to this purchase was 1.99%. The holdings were 169,086 shares as of 2017-09-30.
New Purchase: British American Tobacco PLC (BTI)
First American Bank initiated holdings in British American Tobacco PLC. The purchase prices were between $60.8 and $71.55, with an estimated average price of $64.6. The stock is now traded at around $62.25. The impact to the portfolio due to this purchase was 0.29%. The holdings were 27,169 shares as of 2017-09-30.
New Purchase: PG&E Corp (PCG)
First American Bank initiated holdings in PG&E Corp. The purchase prices were between $65.04 and $71.56, with an estimated average price of $68.51. The stock is now traded at around $68.72. The impact to the portfolio due to this purchase was 0.24%. The holdings were 20,742 shares as of 2017-09-30.
New Purchase: Republic Services Inc (RSG)
First American Bank initiated holdings in Republic Services Inc. The purchase prices were between $63.58 and $66.94, with an estimated average price of $64.96. The stock is now traded at around $63.08. The impact to the portfolio due to this purchase was 0.17%. The holdings were 15,145 shares as of 2017-09-30.
New Purchase: Vanguard REIT (VNQ)
First American Bank initiated holdings in Vanguard REIT. The purchase prices were between $81.16 and $85.71, with an estimated average price of $83.58. The stock is now traded at around $83.34. The impact to the portfolio due to this purchase was 0.17%. The holdings were 11,947 shares as of 2017-09-30.
New Purchase: Vanguard Financials (VFH)
First American Bank initiated holdings in Vanguard Financials. The purchase prices were between $60.15 and $65.36, with an estimated average price of $63.07. The stock is now traded at around $66.55. The impact to the portfolio due to this purchase was 0.04%. The holdings were 4,000 shares as of 2017-09-30.
Added: Citigroup Inc (C)
First American Bank added to the holdings in Citigroup Inc by 120.74%. The purchase prices were between $65.95 and $72.74, with an estimated average price of $68.28. The stock is now traded at around $75.77. The impact to the portfolio due to this purchase was 0.43%. The holdings were 63,228 shares as of 2017-09-30.
Added: WestRock Co (WRK)
First American Bank added to the holdings in WestRock Co by 42.44%. The purchase prices were between $54.33 and $59.73, with an estimated average price of $57.1. The stock is now traded at around $58.22. The impact to the portfolio due to this purchase was 0.25%. The holdings were 86,818 shares as of 2017-09-30.
Added: Leidos Holdings Inc (LDOS)
First American Bank added to the holdings in Leidos Holdings Inc by 36.09%. The purchase prices were between $51.19 and $59.43, with an estimated average price of $55.69. The stock is now traded at around $61.66. The impact to the portfolio due to this purchase was 0.06%. The holdings were 23,353 shares as of 2017-09-30.
Added: Vanguard Information Tech (VGT)
First American Bank added to the holdings in Vanguard Information Tech by 29.03%. The purchase prices were between $139.7 and $152.49, with an estimated average price of $148.07. The stock is now traded at around $154.37. The impact to the portfolio due to this purchase was 0.01%. The holdings were 2,000 shares as of 2017-09-30.
Sold Out: E.I. du Pont de Nemours & Co (DD)
First American Bank sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Synchrony Financial (SYF)
First American Bank sold out the holdings in Synchrony Financial. The sale prices were between $28.55 and $31.19, with an estimated average price of $29.89.
Sold Out: Conagra Brands Inc (CAG)
First American Bank sold out the holdings in Conagra Brands Inc. The sale prices were between $32.43 and $35.5, with an estimated average price of $33.98.
Sold Out: HollyFrontier Corp (HFC)
First American Bank sold out the holdings in HollyFrontier Corp. The sale prices were between $26.19 and $35.99, with an estimated average price of $29.95.
Sold Out: Lumentum Holdings Inc (LITE)
First American Bank sold out the holdings in Lumentum Holdings Inc. The sale prices were between $50.8 and $67.95, with an estimated average price of $58.18.
Sold Out: US Concrete Inc (USCR)
First American Bank sold out the holdings in US Concrete Inc. The sale prices were between $70.15 and $83.25, with an estimated average price of $76.73.
Reduced: Verizon Communications Inc (VZ)
First American Bank reduced to the holdings in Verizon Communications Inc by 52.46%. The sale prices were between $42.89 and $49.9, with an estimated average price of $47.03. The stock is now traded at around $48.76. The impact to the portfolio due to this sale was -0.32%. First American Bank still held 37,746 shares as of 2017-09-30.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares reduced by 0.41% AbbVie Inc ( ABBV ) - 178,870 shares, 2.71% of the total portfolio. First American Bank New Purchases: DWDP , BTI , PCG , RSG, VNQ, CAT, VFH, CLVS, IBB, YHDT, Added Positions:C, WRK, UNH, WMT, CCL, LDOS, JPM, DHI, LUV, CELG, Reduced Positions:VZ, SJM, ETR, PXD, BOH, MHK, T, MCHP, LLY, SLB, Sold Out:DD, CAG, SYF, HFC, LITE, USCR, REGN, KEY, HA, GM, For the details of FIRST AMERICAN BANK's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FIRST+AMERICAN+BANK These are the top 5 holdings of FIRST AMERICAN BANK PepsiCo Inc ( PEP ) - 323,264 shares, 6.14% of the total portfolio. du Pont de Nemours & Co (DD) First American Bank sold out the holdings in E.I. | Shares reduced by 0.41% AbbVie Inc ( ABBV ) - 178,870 shares, 2.71% of the total portfolio. First American Bank New Purchases: DWDP , BTI , PCG , RSG, VNQ, CAT, VFH, CLVS, IBB, YHDT, Added Positions:C, WRK, UNH, WMT, CCL, LDOS, JPM, DHI, LUV, CELG, Reduced Positions:VZ, SJM, ETR, PXD, BOH, MHK, T, MCHP, LLY, SLB, Sold Out:DD, CAG, SYF, HFC, LITE, USCR, REGN, KEY, HA, GM, For the details of FIRST AMERICAN BANK's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FIRST+AMERICAN+BANK These are the top 5 holdings of FIRST AMERICAN BANK PepsiCo Inc ( PEP ) - 323,264 shares, 6.14% of the total portfolio. New Purchase: British American Tobacco PLC (BTI) First American Bank initiated holdings in British American Tobacco PLC. | Shares reduced by 0.41% AbbVie Inc ( ABBV ) - 178,870 shares, 2.71% of the total portfolio. First American Bank New Purchases: DWDP , BTI , PCG , RSG, VNQ, CAT, VFH, CLVS, IBB, YHDT, Added Positions:C, WRK, UNH, WMT, CCL, LDOS, JPM, DHI, LUV, CELG, Reduced Positions:VZ, SJM, ETR, PXD, BOH, MHK, T, MCHP, LLY, SLB, Sold Out:DD, CAG, SYF, HFC, LITE, USCR, REGN, KEY, HA, GM, For the details of FIRST AMERICAN BANK's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=FIRST+AMERICAN+BANK These are the top 5 holdings of FIRST AMERICAN BANK PepsiCo Inc ( PEP ) - 323,264 shares, 6.14% of the total portfolio. Added: Leidos Holdings Inc (LDOS) First American Bank added to the holdings in Leidos Holdings Inc by 36.09%. | Shares reduced by 0.41% AbbVie Inc ( ABBV ) - 178,870 shares, 2.71% of the total portfolio. Shares reduced by 1.08% Apple Inc ( AAPL ) - 208,615 shares, 5.48% of the total portfolio. Shares added by 2.01% New Purchase: DowDuPont Inc (DWDP) First American Bank initiated holdings in DowDuPont Inc. |
25950.0 | 2017-10-06 00:00:00 UTC | Here's What's Has Happened in the HCV Space Lately | ABBV | https://www.nasdaq.com/articles/heres-whats-has-happened-in-the-hcv-space-lately-2017-10-06 | nan | nan | Hepatitis C is an infectious disease caused by the hepatitis C virus (HCV) that primarily affects the liver. Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' BMY Daklinza and Johnson & Johnson's JNJ Olysio.
According to the Centers for Disease Control and Prevention (CDC), about 3.2 million people in the United States are living with chronic hepatitis C infection while many remain unaware of being infected. There are about 17,000 new hepatitis C cases each year in the United States, many of which go unreported.
Considering these numbers, it is not a surprise that quite a few pharma and biotech companies are working on bringing new, improved, shorter-duration HCV treatments to the market. The market is thus getting crowded and seeing increased pricing pressure.
A lot has happened in the HCV space of late.
In September 2017, Gilead Sciences' Sovaldi received approval in China, as a component of a combination antiviral treatment regimen. It is the first Gilead HCV drug to be approved in China.
Meanwhile, Gilead's single-tablet regimen (STR) of Sovaldi, velpatasvir and voxilaprevir, Vosevi received approval in the United States, EU and Canada in July/August. Vosevi became the first once-daily STR available as a salvage therapy for patients infected with HCV genotype 1-6 who have failed prior treatment with DAA regimens including NS5A inhibitors.
Gilead's shares have outperformed the industry year to date. The stock has rallied 16.6% compared with the industry' s gain of 14.5% in the same time frame. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Meanwhile, AbbVie's 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Mavyret, AbbVie's next-generation HCV program, is a combination of glecaprevir, a potent protease inhibitor and pibrentasvir, a NS5A inhibitor. Maviret has the potential to rejuvenate growth in the HCV franchise. According to AbbVie, Mavyret may be used in up to 95% of HCV patients, depending on the stage of liver disease and prior treatment history.
Abbvie's shares have outperformed the industry year to date. The stock has rallied 44% compared with the industry 's gain of 17.9% in the same time frame. The stock carries a Zacks Rank #3.
However, last week, pharmaceutical giant Merck MRK announced that it is discontinuing further development of two of its next-generation hepatitis C (HCV) programs - MK-3682B (grazoprevir/ruzasvir/ uprifosbuvir) and MK-3682C (ruzasvir/uprifosbuvir). The company made this decision based on review of available phase II efficacy data and a heavily crowded HCV market.
Merck's shares have underperformed the industry year to date. The stock has gained 9.7% compared with the industry 's gain of 17.9% in the same time frame. The stock carries a Zacks Rank #3.
Johnson & Johnson's shares have underperformed the industry year to date. The stock has gained 15.6% compared with the industry 's gain of 17.9% in the same time frame. The stock carries a Zacks Rank #3.
It is believed that the discontinuation of Merck and J&J's combination HCV regimens should act in favor of Gilead and AbbVie. Gilead and AbbVie should benefit from the lack of additional competition entering the market, at least in the near term. However, the companies will continue to face challenges in the form of declining patient volume and intense pricing pressure. The lack of additional entrants in the market should also slow down the rate of decline in sales.
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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. | Meanwhile, AbbVie's 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' BMY Daklinza and Johnson & Johnson's JNJ Olysio. Mavyret, AbbVie's next-generation HCV program, is a combination of glecaprevir, a potent protease inhibitor and pibrentasvir, a NS5A inhibitor. | Meanwhile, AbbVie's 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' BMY Daklinza and Johnson & Johnson's JNJ Olysio. | Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' BMY Daklinza and Johnson & Johnson's JNJ Olysio. Meanwhile, AbbVie's 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): 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. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' BMY Daklinza and Johnson & Johnson's JNJ Olysio. Meanwhile, AbbVie's 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Mavyret, AbbVie's next-generation HCV program, is a combination of glecaprevir, a potent protease inhibitor and pibrentasvir, a NS5A inhibitor. |
25951.0 | 2017-10-05 00:00:00 UTC | AbbVie (ABBV) Stock Up Almost 17% in One Month: Here's Why | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-up-almost-17-in-one-month%3A-heres-why-2017-10-05 | nan | nan | AbbVie Inc.ABBV shares have gained an impressive 16.7% in the past month, comparing favorably with a gain of 4.5% recorded by the industry .
Last week, AbbVie announced the resolution of its ongoing patent dispute with Amgen Inc. AMGN , which has delayed the launch of the latter's biosimilar version of AbbVie's blockbuster arthritis drug, Humira to 2023. Per the settlement, AbbVie will grant a non-exclusive license to Amgen, which will allow the latter to sell Amjevita in the United States from Jan 31, 2023 and in most countries in the EU from Oct 16, 2018 and in other markets on different dates.
Against the license, Amgen will pay AbbVie pre-specified royalties. This agreement has removed a major overhang on AbbVie's shares though the company is still facing a patent challenge from Boehringer Ingelheim, which gained approval for its biosimilar version of Humira, Cyltezo, in August. Moreover, the agreement gives 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.
Secondly, AbbVie's 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Mavyret, AbbVie's next-generation HCV program, is a combination of glecaprevir, a potent protease inhibitor and pibrentasvir, a NS5A inhibitor. Maviret has the potential to rejuvenate growth in the HCV franchise. According to AbbVie, Mavyret may be used in up to 95% of HCV patients, depending on the stage of liver disease and prior treatment history.
AbbVie announced positive data from the phase III MURANO study of Venclexta plus Rituxan in relapse/refractory CLL last month. The data showed that Venclexta plus Roche's RHHBY Rituxan met the primary endpoint of prolonged progression-free survival compared with Treanda (bendamustine) plus Rituxan in patients with relapsed/refractory chronic lymphocytic leukemia ("CLL"). Label expansion for this indication should expand the patient population for Venclexta significantly and boost its commercial potential.
AbbVie also announced a collaboration with Bristol-Myers Squibb BMY for evaluating a combination of its investigational antibody drug conjugate ABBV-399 and Bristol-Myers's immunotherapy Opdivo in c-met overexpressing non-small cell lung cancer (NSCLC).
Lastly, AbbVie's oral JAK-1 selective inhibitor, upadacitinib (ABT-494) met primary endpoints in a phase III study for the treatment of RA with highly statistically significant and clinically meaningful results for both the doses (15 mg and 30 mg) of upadacitinib compared to placebo. Upadacitinib also met primary endpoints in a phase IIb study for the treatment of adult patients with atopic dermatitis, also known as eczema. The company plans to advance the candidate into phase III studies next year. Data from both the upadacitinib studies were announced last month.
In fact, so far this year, AbbVie's share price has increased 43.5%, also comparing favorably with a gain of 17.7% for the industry.
AbbVie carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Per the settlement, AbbVie will grant a non-exclusive license to Amgen, which will allow the latter to sell Amjevita in the United States from Jan 31, 2023 and in most countries in the EU from Oct 16, 2018 and in other markets on different dates. This agreement has removed a major overhang on AbbVie's shares though the company is still facing a patent challenge from Boehringer Ingelheim, which gained approval for its biosimilar version of Humira, Cyltezo, in August. Moreover, the agreement gives 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. | Lastly, AbbVie's oral JAK-1 selective inhibitor, upadacitinib (ABT-494) met primary endpoints in a phase III study for the treatment of RA with highly statistically significant and clinically meaningful results for both the doses (15 mg and 30 mg) of upadacitinib compared to placebo. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV shares have gained an impressive 16.7% in the past month, comparing favorably with a gain of 4.5% recorded by the industry . | Last week, AbbVie announced the resolution of its ongoing patent dispute with Amgen Inc. AMGN , which has delayed the launch of the latter's biosimilar version of AbbVie's blockbuster arthritis drug, Humira to 2023. Lastly, AbbVie's oral JAK-1 selective inhibitor, upadacitinib (ABT-494) met primary endpoints in a phase III study for the treatment of RA with highly statistically significant and clinically meaningful results for both the doses (15 mg and 30 mg) of upadacitinib compared to placebo. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): 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. | This agreement has removed a major overhang on AbbVie's shares though the company is still facing a patent challenge from Boehringer Ingelheim, which gained approval for its biosimilar version of Humira, Cyltezo, in August. AbbVie Inc.ABBV shares have gained an impressive 16.7% in the past month, comparing favorably with a gain of 4.5% recorded by the industry . Last week, AbbVie announced the resolution of its ongoing patent dispute with Amgen Inc. AMGN , which has delayed the launch of the latter's biosimilar version of AbbVie's blockbuster arthritis drug, Humira to 2023. |
25952.0 | 2017-10-05 00:00:00 UTC | Why Regeneron Pharmaceuticals Dropped 11.3% in September | ABBV | https://www.nasdaq.com/articles/why-regeneron-pharmaceuticals-dropped-113-september-2017-10-05 | nan | nan | What happened
Despite sharing a series of positive news items with investors, shares of biotech-giant Regeneron Pharmaceuticals (NASDAQ: REGN) fell more than 11% in September, according to data from S&P Global Market Intelligence .
So what
Regeneron and its partner Sanofi (NYSE: SNY) made a number of announcements during the month that captured the market's attention.
Here's an overview of the key developments from the month:
The two companies announced that their skin-cancer drug candidate Cemiplimab (REGN2810) received Breakthrough Therapy Designation from the Food and Drug Administration (FDA).
Regeneron and Sanofi reported top-line results from its LIBERTY ASTHMA QUEST study, a phase 3 trial studying Dupixent as a treatment for asthma. The data showed that adding Dupixent to standard therapies reduced severe asthma attacks by 46% and improved lung function. What's more, the results were even better in the subgroups of patients who showed higher levels of eosinophilic cells. The two companies plan to submit the drug for approval in this indication before the end of the year.
The two companies reported positive study results using Dupixent as a treatment for atopic dermatitis. The study showed that 59% of patients who received Dupixent with topical corticosteroids weekly -- and 63% who received Dupixent with topical corticosteroids every two weeks -- achieved a greater than 75% reduction in the Eczema Area and Severity Index score at 16 weeks.
Regeneron and Sanofi announced that Dupixent has received regulatory approval in the E.U. to treat atopic dermatitis.
Given all the positive news, why did shares tumble? The most likely answer is that investors were looking for even better news from the company's LIBERTY ASTHMA QUEST study. The reason is that companies like AstraZeneca,Amgen , and AbbVie (NYSE: ABBV) have interesting asthma drugs in development that could compete with Dupixent one day. Since the LIBERTY ASTHMA QUEST showed that Dupixent wasn't as effective in treating patients with lower levels of eosinophilic cells, traders are worried that the drug might not have the commercial success that many were hoping for .
Now what
More than $50 billion is spent annually on treating asthma, so Regeneron's Dupixent is certainly going after a huge market opportunity. Management estimates that one million Americans could use Dupixent as a treatment for asthma if it wins regulatory approval. These figures suggest that blockbuster sales results are possible.
Will Dupixent go on to win the thumbs up from regulators and get the support that it needs from the healthcare community? While we won't know the answers to these questions for quite some time, this shareholder is content to sit tight while we wait to find out.
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Brian Feroldi owns shares of Regeneron Pharmaceuticals. 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 reason is that companies like AstraZeneca,Amgen , and AbbVie (NYSE: ABBV) have interesting asthma drugs in development that could compete with Dupixent one day. The data showed that adding Dupixent to standard therapies reduced severe asthma attacks by 46% and improved lung function. Since the LIBERTY ASTHMA QUEST showed that Dupixent wasn't as effective in treating patients with lower levels of eosinophilic cells, traders are worried that the drug might not have the commercial success that many were hoping for . | The reason is that companies like AstraZeneca,Amgen , and AbbVie (NYSE: ABBV) have interesting asthma drugs in development that could compete with Dupixent one day. Regeneron and Sanofi reported top-line results from its LIBERTY ASTHMA QUEST study, a phase 3 trial studying Dupixent as a treatment for asthma. The study showed that 59% of patients who received Dupixent with topical corticosteroids weekly -- and 63% who received Dupixent with topical corticosteroids every two weeks -- achieved a greater than 75% reduction in the Eczema Area and Severity Index score at 16 weeks. | The reason is that companies like AstraZeneca,Amgen , and AbbVie (NYSE: ABBV) have interesting asthma drugs in development that could compete with Dupixent one day. Regeneron and Sanofi reported top-line results from its LIBERTY ASTHMA QUEST study, a phase 3 trial studying Dupixent as a treatment for asthma. The study showed that 59% of patients who received Dupixent with topical corticosteroids weekly -- and 63% who received Dupixent with topical corticosteroids every two weeks -- achieved a greater than 75% reduction in the Eczema Area and Severity Index score at 16 weeks. | The reason is that companies like AstraZeneca,Amgen , and AbbVie (NYSE: ABBV) have interesting asthma drugs in development that could compete with Dupixent one day. Here's an overview of the key developments from the month: The two companies announced that their skin-cancer drug candidate Cemiplimab (REGN2810) received Breakthrough Therapy Designation from the Food and Drug Administration (FDA). Regeneron and Sanofi announced that Dupixent has received regulatory approval in the E.U. |
25953.0 | 2017-10-05 00:00:00 UTC | 3 Big Pharma Stocks Set to Succeed | ABBV | https://www.nasdaq.com/articles/3-big-pharma-stocks-set-succeed-2017-10-05 | nan | nan | That disclaimer that the Securities and Exchange Commission requires mutual funds to provide to investors isn't one to overlook: Past performance really may not be indicative of future results. This applies to mutual funds and to individual stocks.
For big pharma stocks, though, you can get a sense for what their prospects could look like. Current products and pipeline candidates can help investors determine which stocks have the best chances at being winners. In my view, three big pharma stocks look set to succeed: AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Celgene (NASDAQ: CELG) . Here's why.
AbbVie
AbbVie's past fortunes have been primarily linked to its top-selling drug, Humira. The good news is that the autoimmune disease drug should continue to make plenty of money for AbbVie. The company recently announced a deal with Amgen (NASDAQ: AMGN) that will keep a biosimilar rival to Humira off the U.S. market through early 2023. Although biosimilars (including Amgen's) will compete against Humira in Europe, the U.S. represents roughly two-thirds of total revenue for the drug.
Even better, though, is that AbbVie won't need to rely on Humira nearly as much in the future. Momentum is growing for the company's blockbuster cancer drug Imbruvica. In addition, AbbVie won FDA approval for promising pan-genotypic hepatitis C drug Mavyret in August.
AbbVie also claims one of the top pipelines among big pharma companies . It could have a couple of strong autoimmune disease drugs -- upadacitinib and risankizumab -- joining Humira on the market in the next few years. Late-stage candidate elagolix looks promising in treating both endometriosis and uterine fibroids. AbbVie's oncology pipeline is also loaded with great candidates, particularly Rova-T.
Another plus for investors is that AbbVie pays a solid dividend, which currently yields a little under 3%. The company appears to be in great position to increase its dividend in the coming years.
Allergan
Allergan is sort of the Rodney Dangerfield of big pharma: It don't get no respect. The company's stock price is pretty much at where it started 2017, despite Allergan reporting solid revenue growth and beating consensus earnings estimates last quarter.
I think Allergan is a diamond in the rough, though. Its medical-aesthetics business continues to hum along, led by the Botox franchise. The drugmaker bolstered this business with its acquisition earlier this year of Zeltiq Aesthetics. Allergan believes it has a great pathway for additional growth by marketing to millennials and to men.
The company's management often speaks of its "six stars," a reference to six promising pipeline candidates. One of those stars isn't shining quite as brightly as hoped: Allergan recently reported mixed results from a phase 2 clinical study evaluating cenicriviroc (CVC) in treating non-alcoholic steatohepatitis (NASH). However, the pharma company still thinks the drug could be a winner. And it has the other five "stars" in its constellation in case CVC isn't successful.
Allergan does pay a dividend, but with a yield of around 1.4%, it's not the greatest in the pharma industry. However, it's another use of the company's money that could pay off more for investors: acquisitions. Allergan got to where it is through a series of strategic buyouts. Expect more acquisitions down the road.
Celgene
Although past performance isn't necessarily indicative of future results, in Celgene's case, it could be. Celgene was the best-performing big biotech stock of the past five years and appears to have what it takes to repeat that success in the future.
Celgene boasts a strong current lineup, led by powerhouse blood cancer drug Revlimid. The biotech also has a couple of other blockbuster drugs with Pomalyst and Otezla. Solid tumor drug Abraxane could soon join the $1 billion annual sales club.
The blood cancer franchise currently staked out by Revlimid and Pomalyst could be joined by several other promising candidates in the next few years. Celgene has especially high expectations for luspatercept, which is in late-stage studies targeting treatment of myelodysplastic syndromes and beta-thalassemia.
Otezla was Celgene's first effort in gaining a foothold in the inflammation and immunology space, but it won't be the company's last. Celgene's pipeline includes several promising inflammation and immunology candidates, including GED-0301 and ozanimod, both of which the company thinks will be megablockbusters.
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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 my view, three big pharma stocks look set to succeed: AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Celgene (NASDAQ: CELG) . AbbVie AbbVie's past fortunes have been primarily linked to its top-selling drug, Humira. The good news is that the autoimmune disease drug should continue to make plenty of money for AbbVie. | In my view, three big pharma stocks look set to succeed: AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Celgene (NASDAQ: CELG) . AbbVie AbbVie's past fortunes have been primarily linked to its top-selling drug, Humira. The good news is that the autoimmune disease drug should continue to make plenty of money for AbbVie. | In my view, three big pharma stocks look set to succeed: AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Celgene (NASDAQ: CELG) . AbbVie's oncology pipeline is also loaded with great candidates, particularly Rova-T. Another plus for investors is that AbbVie pays a solid dividend, which currently yields a little under 3%. AbbVie AbbVie's past fortunes have been primarily linked to its top-selling drug, Humira. | In my view, three big pharma stocks look set to succeed: AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Celgene (NASDAQ: CELG) . AbbVie AbbVie's past fortunes have been primarily linked to its top-selling drug, Humira. The good news is that the autoimmune disease drug should continue to make plenty of money for AbbVie. |
25954.0 | 2017-10-04 00:00:00 UTC | The 12 Traits Of A World-Class Investment | ABBV | https://www.nasdaq.com/articles/12-traits-world-class-investment-2017-10-04 | nan | nan | The importance of buying great businesses is something everyone knows, but few people actually execute on... or even really care about.
But the truth is that, over time, you make the most money in the stock market by investing in the world's greatest businesses.
I know this sounds simple (and it is), but you'd be surprised at how many investors don't follow this advice. And here's why they don't.
Investing in great businesses isn't glamorous. It won't make you an overnight millionaire. And it's highly unlikely that you'll wake up to see that one of your holdings leaped 20% overnight.
Great businesses often take time to play out. The key is letting their returns compound year after year, building wealth over a period of years or even decades.
But most investors aren't interested in that.
In today's society, where folks are looking for instant gratification, they are more interested in gambling and making money as quickly as possible. Don't get me wrong -- I'm just as interested in making money as quickly as possible... but I also like stacking the odds in my favor.
Think about all the folks who constantly play the Powerball. Of course, there's nothing wrong with that -- if you don't play, you can't win. But the odds are certainly not in your favor (one in 292 million last time I checked). Instead of consistently sinking my money into Powerball tickets, I would much rather figure out a way to own the land under the convenience store where folks are buying those tickets.
That land represents a great business. Sure, I won't become a millionaire overnight, but the consistent returns year in and year out (plus the appreciation of the land) will surely make me more money over the long haul than will any Powerball hopes and dreams.
Of course, you can't just buy any stock, hold it for years or decades, and expect to come out ahead. The market is littered with Enrons, Worldcoms and Lehman Brothers. Buying and holding these types of companies led to disaster.
Instead, you have to hold the sort of companies that can be considered "the world's greatest businesses."
12 Traits Of The World's Greatest Businesses
The 12 traits of the world's greatest businesses should be familiar to longtime readers of my Top Stock Advisor premium newsletter. But they're so vital that I believe it's worth taking a look at them again.
Here are the 12 characteristics that you need to look for when searching for the world's greatest businesses.
1) The world's greatest businesses sell their products at premium prices. This all comes down to brand loyalty. Apple (Nasdaq: AAPL ) is a great example. Although cheaper alternatives exist, more people will pay a premium for one of Apple's products. Thanks to the power of its brands, Apple has generated some of the greatest returns in stock market history. By contrast, companies that compete solely on price are constantly under pressure to keep prices (and profit margins) low; otherwise, they risk losing customers.
2) The world's greatest businesses sell products used in day-to-day life. Products used in daily life -- like toothpaste, food, and laundry detergent -- are in constant demand. These daily purchases are also harder for a consumer to put off during bad times. This is why Proctor & Gamble (NYSE: PG ) is a mainstay in many portfolios. But this also can extend beyond consumer staples. For example, millions of consumers use credit or debit cards multiple times a day, leading to steady cash flow for companies such as Visa (NYSE: V ). It's no wonder then, that the stock has delivered returns of more than 92% for Top Stock Advisor subscribers in just 26 months.
3) The world's greatest businesses have a global reach and appeal for their product. A product that only has appeal in a certain region or country doesn't have the same type of long-term growth potential as a truly global product. The world's greatest businesses sell products that consumers love universally across the globe. Think about Starbucks (Nasdaq: SBUX ) and Nike (Nasdaq: NKE ), for example. Both sell a product that's loved not only in the United States but in countries around the world, including China, Japan, Germany, England, and more...
4) The world's greatest businesses are highly scalable. A business should be able to quickly and easily grow. This means having low expansion costs and limited need for specialized or highly trained labor. This is why McDonald's (NYSE: MCD ) is so successful. It can staff a new restaurant and deliver the same consistency without specialized, highly-skilled cooks and servers.
5) The world's greatest businesses sell things that consumers can't live without. Basic necessities such as food, water, and utilities will always be in high demand. The same goes for many basic healthcare products and infrastructure assets like roads, bridges, railroads, and ports. And finally, there's another category of products that many consumers can't live without -- addictive substances like cigarettes, caffeine, or alcohol.
6) The world's greatest businesses face little or no regulation. Government regulation increases costs and creates headaches for companies. Regulatory challenges take the focus away from a business's day-to-day operations.
7) The world's greatest businesses have unlimited growth potential. Great businesses have a well-defined path that will help them grow revenue and earnings for decades to come. Again, companies like Starbucks and Apple are great examples of this -- even if the "best" days of growth are already behind them.
8) The world's greatest businesses dominate their competition. This is one of the most important aspects of a great business. Unless a company dominates its niche or industry, I usually want nothing to do with it. A great example of this is search engine and advertising giant Google. It more or less has a stranglehold in the online search market. You know you're a dominant player when your company name becomes a verb, i.e. "just Google it."
9) The world's greatest businesses have clear competitive advantages that keep rivals at bay. Competitive advantages -- or "economic moats" -- come in a variety of forms, but it's important that a great business have one or more major moats that keep competitors at bay. That's why I own master limited partnerships like Enterprise Products Partners (NYSE: EPD ) in my portfolio. Another company can't simply come along and build a pipeline next to EPD's. That means Enterprise Products doesn't have to worry much about rivals eating into its business.
10) The world's greatest businesses generate enormous cash flow with low capital spending requirements. Again, Visa is a prime example of a company that generates loads of free cash flow while spending relatively little on capital expenditures. It has historically only spent about 10% of its cash flow on capital expenditures, so nearly 90% of its cash flow can be delivered to shareholders.
11) The world's greatest businesses return billions of dollars to investors in the form o f dividends and buybacks. Dividends and share buybacks prove that a company places great importance on generating high returns for its investors. Not only do these actions help put money in your pocket, they also help to smooth out a stock's volatility. This is why nearly every security in my Top Stock Advisor portfolio either pays a dividend, buys back shares, or both.
12) The world's greatest businesses have extremely high profit margins, or at least margins that outpace their broader industries. The goal of any business is to generate a profit... but some companies do that better than others. The world's greatest businesses are those that turn the greatest amount of their revenue into profit, which drives dividends, buybacks, and expansion opportunities -- not to mention share prices.
Action To Take
I urge you to print this list. Put it next to your computer and refer to it before you buy any stock. There's little doubt it will make you a better investor.
Granted, you won't find a stock that meets all of these criteria. But any good long-term winner will likely have a few of these characteristics.
If you boil it all down, our ideal stock is a company that dominates its market, provides a product or service that is essential to daily life, and returns the bulk of its cash to shareholders in the form of dividends and share buybacks. When you can pick up these types of stocks at fair prices, you're all but ensured to reap the rewards over the long haul.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, millions of consumers use credit or debit cards multiple times a day, leading to steady cash flow for companies such as Visa (NYSE: V ). Again, Visa is a prime example of a company that generates loads of free cash flow while spending relatively little on capital expenditures. If you boil it all down, our ideal stock is a company that dominates its market, provides a product or service that is essential to daily life, and returns the bulk of its cash to shareholders in the form of dividends and share buybacks. | The world's greatest businesses sell products that consumers love universally across the globe. 5) The world's greatest businesses sell things that consumers can't live without. 10) The world's greatest businesses generate enormous cash flow with low capital spending requirements. | But the truth is that, over time, you make the most money in the stock market by investing in the world's greatest businesses. 12 Traits Of The World's Greatest Businesses The 12 traits of the world's greatest businesses should be familiar to longtime readers of my Top Stock Advisor premium newsletter. 5) The world's greatest businesses sell things that consumers can't live without. | But the truth is that, over time, you make the most money in the stock market by investing in the world's greatest businesses. Here are the 12 characteristics that you need to look for when searching for the world's greatest businesses. 8) The world's greatest businesses dominate their competition. |
25955.0 | 2017-10-04 00:00:00 UTC | Biotech Stock Roundup: Endocyte Shoots up on Deal, Amgen-AbbVie Settle Humira Litigation | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-endocyte-shoots-deal-amgen-abbvie-settle-humira-litigation-2017-10 | nan | nan | Companies like Amgen AMGN and Endocyte ECYT were in the news with Amgen signing a deal with AbbVie ABBV related to the entry of its biosimilar version of Humira and Endocyte signing an in-licensing deal which could prove to be transformational for the company.
Recap of the Week's Most Important Stories
Endocyte Soars on In-Licensing Deal: Endocyte's shares have shot up a whopping 317% following the company's announcement that it has got an exclusive worldwide license for PSMA-617 from ABX GmbH. Endocyte said that it will quickly move 177Lu-PSMA-617 into phase III development. 177Lu-PSMA-617 is a radioligand therapeutic ("RLT") that targets the prostate-specific membrane antigen ("PSMA") present in about 80% of patients with metastatic castration-resistant prostate cancer (mCRPC).
The transformational deal provides Endocyte with the most advanced targeted radioligand therapy in development for prostate cancer, representing a market opportunity of more than $1 billion. The company hopes to start phase III development in the first half of 2018 and complete the program as early as 2020. The terms of the deal include a $12 million upfront payment as well as the issuance of 2 million shares to ABX plus a warrant for the purchase of up to 4 million additional shares of Endocyte common stock. ABX also stands to receive milestone payments of up to $160 million and tiered royalties starting in the mid-teens. Endocyte will bear all future development expenses (Read more: Endocyte Inks Deal For Prostate Cancer Candidate, Shares Up ).
AbbVie-Amgen Sign Deal Delaying Humira Biosimilar Entry: AbbVie has gained some breathing space by entering into a settlement agreement with Amgen related to biosimilar competition for AbbVie's multi-billion dollar drug, Humira. Amgen, which gained FDA approval for Amjevita, its biosimilar version of Humira, has acknowledged the validity of AbbVie's extensive intellectual property portfolio for Humira. According to the deal, the non-exclusive license for Humira will commence on Jan 31, 2023 in the United States and on different dates in other markets including Oct 16, 2018 in most countries in the EU. Amgen will also pay royalties.
This agreement has removed a major overhang on AbbVie's shares though the company is still facing a patent challenge from Boehringer Ingelheim, which gained approval for its biosimilar version of Humira, Cyltezo, in August.
Humira generated sales of $8.8 billion in the first half of 2017 including $5.9 billion in the United States, which remains a key market for the drug. With Humira continuing to perform well, it will remain a major contributor to the top-line in the coming years. Moreover, the agreement gives 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. Expectations are high that AbbVie and Boehringer Ingelheim will announce a similar settlement agreement and dismiss all patent litigation.
While AbbVie is a Zacks Rank #3 (Hold) stock, Amgen is a Zacks Rank #2 (Buy) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Ablynx Up on Positive Phase III Results: Ablynx's shares shot up 23.3% on positive topline results from a late-stage study on caplacizumab, the company's anti-von Willebrand factor (vWF) nanobody which is being developed for the treatment of acquired thrombotic thrombocytopenic purpura (aTTP). Ablynx is currently seeking approval for caplacizumab in the EU and expects to submit a regulatory application in the United States in the first half of 2018. Caplacizumab has Fast Track designation in the United States for the treatment of aTTP and timely approval would make it the first therapeutic specifically indicated for the treatment of aTTP, an acute, life-threatening autoimmune blood clotting disorder.
CytomX in Immuno-Oncology Deal with Amgen: CytomX Therapeutics CTMX has entered into an immune-oncology focused strategic collaboration with Amgen for the development of a CytomX Probody T-cell engaging bispecific against the epidermal growth factor receptor ("EGFR").
While early development will be led by CytomX, Amgen will lead later development and commercialization. The companies will share global late-stage development costs. The deal will see CytomX getting an upfront payment of $40 million and issuing $20 million of common stock to Amgen. CytomX could also earn up to $455 million in development, regulatory and commercial milestones for the EGFR program. Global commercial activities will be led by Amgen with CytomX having the option to opt into a profit share in the United States and receive tiered, double-digit royalties on net product sales outside the United States.
The agreement also covers up to three additional, undisclosed targets. If Amgen decides to pursue all these targets, CytomX could get up to an additional $950 million in upfront and milestone payments and high single-digit to mid-double digit royalty payments. CytomX will also receive the rights to an undisclosed preclinical T-cell engaging bispecific program from Amgen for which it will make milestone and royalty payments on any resulting products under this arrangement. We expect investors to react favorably to this deal.
Regeneron, Sanofi Eczema Drug Gets EU Nod: Regeneron REGN and partner Sanofi gained EU approval for their eczema treatment, Dupixent. This makes Dupixent the first targeted biologic to be approved for use in adults with moderate-to-severe atopic dermatitis ("AD") who are candidates for systemic therapy. Dupixent, approved in the United States earlier this year, has blockbuster potential and is being investigated for other indications as well including asthma, eosinophilic esophagitis and nasal polyps.
Shares of Regeneron have gained 24.1% year to date, significantly outperforming the industry's 15.4% rally.
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The Nasdaq Biotechnology Index gained almost 3% over the last five trading sessions. Among major biotech stocks, Regeneron was up 4.8% while Gilead GILD lost 0.7%. Over the last six months, Vertex VRTX was up 41.9% (See the last biotech stock roundup here: Amgen Reiterates 2017 Outlook, Intercept Hit by Ocaliva Safety Issues ).
What's Next in the Biotech World?
Watch out for the usual regulatory and pipeline 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This agreement has removed a major overhang on AbbVie's shares though the company is still facing a patent challenge from Boehringer Ingelheim, which gained approval for its biosimilar version of Humira, Cyltezo, in August. Moreover, the agreement gives 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. Companies like Amgen AMGN and Endocyte ECYT were in the news with Amgen signing a deal with AbbVie ABBV related to the entry of its biosimilar version of Humira and Endocyte signing an in-licensing deal which could prove to be transformational for the company. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX): Free Stock Analysis Report Endocyte, Inc. (ECYT): Free Stock Analysis Report To read this article on Zacks.com click here. Companies like Amgen AMGN and Endocyte ECYT were in the news with Amgen signing a deal with AbbVie ABBV related to the entry of its biosimilar version of Humira and Endocyte signing an in-licensing deal which could prove to be transformational for the company. AbbVie-Amgen Sign Deal Delaying Humira Biosimilar Entry: AbbVie has gained some breathing space by entering into a settlement agreement with Amgen related to biosimilar competition for AbbVie's multi-billion dollar drug, Humira. | Companies like Amgen AMGN and Endocyte ECYT were in the news with Amgen signing a deal with AbbVie ABBV related to the entry of its biosimilar version of Humira and Endocyte signing an in-licensing deal which could prove to be transformational for the company. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report CytomX Therapeutics, Inc. (CTMX): Free Stock Analysis Report Endocyte, Inc. (ECYT): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie-Amgen Sign Deal Delaying Humira Biosimilar Entry: AbbVie has gained some breathing space by entering into a settlement agreement with Amgen related to biosimilar competition for AbbVie's multi-billion dollar drug, Humira. | Companies like Amgen AMGN and Endocyte ECYT were in the news with Amgen signing a deal with AbbVie ABBV related to the entry of its biosimilar version of Humira and Endocyte signing an in-licensing deal which could prove to be transformational for the company. AbbVie-Amgen Sign Deal Delaying Humira Biosimilar Entry: AbbVie has gained some breathing space by entering into a settlement agreement with Amgen related to biosimilar competition for AbbVie's multi-billion dollar drug, Humira. Amgen, which gained FDA approval for Amjevita, its biosimilar version of Humira, has acknowledged the validity of AbbVie's extensive intellectual property portfolio for Humira. |
25956.0 | 2017-10-04 00:00:00 UTC | IYY, ABBV, MMM, HON: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iyy-abbv-mmm-hon-large-outflows-detected-etf-2017-10-04 | 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 Dow Jones U.S. ETF (Symbol: IYY) where we have detected an approximate $38.1 million dollar outflow -- that's a 3.4% decrease week over week (from 8,900,000 to 8,600,000). Among the largest underlying components of IYY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IYY Holdings page » The chart below shows the one year price performance of IYY, versus its 200 day moving average:
Looking at the chart above, IYY's low point in its 52 week range is $104.12 per share, with $126.8852 as the 52 week high point - that compares with a last trade of $126.87. 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 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 IYY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IYY Holdings page » The chart below shows the one year price performance of IYY, versus its 200 day moving average: Looking at the chart above, IYY's low point in its 52 week range is $104.12 per share, with $126.8852 as the 52 week high point - that compares with a last trade of $126.87. 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 IYY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IYY Holdings page » The chart below shows the one year price performance of IYY, versus its 200 day moving average: Looking at the chart above, IYY's low point in its 52 week range is $104.12 per share, with $126.8852 as the 52 week high point - that compares with a last trade of $126.87. 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 IYY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Dow Jones U.S. ETF (Symbol: IYY) where we have detected an approximate $38.1 million dollar outflow -- that's a 3.4% decrease week over week (from 8,900,000 to 8,600,000). For a complete list of holdings, visit the IYY Holdings page » The chart below shows the one year price performance of IYY, versus its 200 day moving average: Looking at the chart above, IYY's low point in its 52 week range is $104.12 per share, with $126.8852 as the 52 week high point - that compares with a last trade of $126.87. | Among the largest underlying components of IYY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IYY Holdings page » The chart below shows the one year price performance of IYY, versus its 200 day moving average: Looking at the chart above, IYY's low point in its 52 week range is $104.12 per share, with $126.8852 as the 52 week high point - that compares with a last trade of $126.87. 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). |
25957.0 | 2017-10-03 00:00:00 UTC | Analysts Act on Health Care Stocks | ABBV | https://www.nasdaq.com/articles/analysts-act-health-care-stocks-2017-10-03 | nan | nan | Analysts have taken action on some health care stocks.
Among the health care companies that saw their stocks re-rated by investment banking and financial services companies are AbbVie ( ABBV ) and two mid-caps, bluebird bio ( BLUE ) and Alnylam Pharmaceuticals ( ALNY ).
The first stock of this short list of re-rated health care companies is AbbVie. According to thefly.com, LEERINK Partners LLC - the health care specialized investment bank - upgraded shares of AbbVie from Market Perform to Outperform.
The U.S. global health care company that was originated in 2013 as Abbott Laboratories ' ( ABT ) spinoff and headquartered in Lake Bluff, Illinois, is trading at $90.39 per share, a few below its 52-week high of $90.95 per share. The health care stock is uptrending and has gained a hefty 44.35% year to date.
Despite this solid accretion in the market value of AbbVie, Leerink analyst Geoffrey Porges, still sees in the long run more positive development in the share price of the health care stock "as the company's late-stage pipeline comes to fruition," reports The Fly. Why? Because as the company will gradually complete the projects it is advancing, explained Porges, analysts will increase their estimates on AbbVie with positive impact on the market value.
Concerning expectations on AbbVie's sales and revenue for the next two years, analysts foresee that the company will close the full fiscal 2017 with a 14.5% increase year over year in the EPS to $5.52 and a 18.5% increase year over year in the EPS for full fiscal 2018 to $6.54. Both estimates on the company's earnings are backed on revenue that for the two fiscal years in question are projected to come in at $27.91 billion (up 9.20% year over year) and at $30.74 billion (up 10.20% year over year).
For the next five years, analysts see a 14.16% annual average increase in AbbVie's sales.
Leerink also increased by 19.1% its target price on shares of AbbVie from $89 to $106 per share. This raise dragged the average target price up to $87.82 per share of AbbVie. This is a mean of a total of 17 estimates of analysts who were surveyed on AbbVie's target price and range between a low of $60 per share and a high of $107 per share.
AbbVie has a recommendation rating of 2.4 out of 5.
AbbVie distributes an annual dividend of $2.56 - through quarterly payments of 64 cents - to its shareholders for a dividend yield of 2.88% versus a current Standard & Poor's 500 dividend yield of 1.90%.
GuruFocus gives AbbVie a financial strength rating of 5 out of 10 and a profitability and growth rating of 7 out of 10.
AbbVie currently has a market capitalization of $144.09 billion, a price-book (P/B) ratio of 23.94, a price-sales (P/S) ratio of 5.47 and a price-earnings (P/E) ratio of 22.21. The forward P/E ratio is 13.46.
The second health care stock of this list is bluebird bio, a clinical-stage biotechnology company that is engaged in transformative gene therapies' development for serious genetic diseases such as hereditary neurological disorders, intermedia and major beta-thalassemia, severe anaemias and cancer types such as relapsed/refractory multiple myeloma and certain human papilloma virus related cancer.
Bluebird bio has been downgraded by Morgan Stanley to Underweight from Equal-Weight, reports StreetInsider.com.
The biotech stock has an average target price of $117.33 per share, which represents a 6.5% downside from the current share price of $125.45 that with a total volume of 45.59 million shares outstanding leads to a market capitalization of $5.72 billion.
The average target price is a mean of 15 estimates on bluebird bio's target price. These estimates range between a low of $39 per share and a high of $158 per share.
Bluebird bio has a recommendation rating of 2.3 out of 5.
Bluebird is currently trading at $125.45 per share, with a market capitalization of $5.72 billion, a P/B ratio of 4.77 and a P/S ratio of 190.97.
GuruFocus gives bluebird a financial strength rating of 6 out of 10, and a profitability and growth rating of 1 out of a total of 10.
The last health care stock on this list is Alnylam Pharmaceuticals, a biopharmaceutical company that is engaged in the development and commercialization of RNA interference-based new therapeutics for the treatment of genetic disorders, cardio-metabolic diseases and infectious diseases of the liver.
The biopharmaceutical company has been upgraded by Goldman Sachs to a rating of Buy from the previous rating of Neutral.
As reported by StreetInsider.com, Goldman Sachs analyst Terrance Flynn "raises Patisiran peak sales from $1.8 billion to $2.9 billion and believes the stock is only pricing in about have [sic] of the total estimate revenues."
Patisiran is a medication used as treatment for patients affected with familial amyloidotic polyneuropathy, a rare progressive sensual-motor and autonomous system neuropathy, which onset starts in the adult age. Common complications of this rare disease are weight loss and heart involvement. Ocular and renal problems can also occur.
Alnylam Pharmaceuticals is trading at $122.31 per share, with a market capitalization of $11.22 billion, a P/B ratio of 9.99 and a P/S ratio of 160.29.
For full fiscal years of 2017 and 2018, analysts forecast a 66.70% and 59% year-over-year increase to $78.6 million and to $124.97 million in the company's revenue, but a worsening is expected in the bottom line of Alnylam Pharmaceuticals' income statement for full fiscal years of 2017 and 2018 to a loss of $5.2 and $5.3 per share.
The average target price - after Goldman Sachs' 162.9% raise from $62 to $163 per share - is $117.06 per share, and the recommendation rating is 2.2 out of 5.
GuruFocus gives Alnylam Pharmaceuticals a financial strength rating of 6 out of 10 and a profitability and growth rating of only 1 out of 10.
Disclosure: I have no positions in any stock mentioned in this article.
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This article first appeared on GuruFocus .
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. | Despite this solid accretion in the market value of AbbVie, Leerink analyst Geoffrey Porges, still sees in the long run more positive development in the share price of the health care stock "as the company's late-stage pipeline comes to fruition," reports The Fly. Because as the company will gradually complete the projects it is advancing, explained Porges, analysts will increase their estimates on AbbVie with positive impact on the market value. Among the health care companies that saw their stocks re-rated by investment banking and financial services companies are AbbVie ( ABBV ) and two mid-caps, bluebird bio ( BLUE ) and Alnylam Pharmaceuticals ( ALNY ). | Among the health care companies that saw their stocks re-rated by investment banking and financial services companies are AbbVie ( ABBV ) and two mid-caps, bluebird bio ( BLUE ) and Alnylam Pharmaceuticals ( ALNY ). Concerning expectations on AbbVie's sales and revenue for the next two years, analysts foresee that the company will close the full fiscal 2017 with a 14.5% increase year over year in the EPS to $5.52 and a 18.5% increase year over year in the EPS for full fiscal 2018 to $6.54. The first stock of this short list of re-rated health care companies is AbbVie. | Despite this solid accretion in the market value of AbbVie, Leerink analyst Geoffrey Porges, still sees in the long run more positive development in the share price of the health care stock "as the company's late-stage pipeline comes to fruition," reports The Fly. Concerning expectations on AbbVie's sales and revenue for the next two years, analysts foresee that the company will close the full fiscal 2017 with a 14.5% increase year over year in the EPS to $5.52 and a 18.5% increase year over year in the EPS for full fiscal 2018 to $6.54. Among the health care companies that saw their stocks re-rated by investment banking and financial services companies are AbbVie ( ABBV ) and two mid-caps, bluebird bio ( BLUE ) and Alnylam Pharmaceuticals ( ALNY ). | For the next five years, analysts see a 14.16% annual average increase in AbbVie's sales. Leerink also increased by 19.1% its target price on shares of AbbVie from $89 to $106 per share. Among the health care companies that saw their stocks re-rated by investment banking and financial services companies are AbbVie ( ABBV ) and two mid-caps, bluebird bio ( BLUE ) and Alnylam Pharmaceuticals ( ALNY ). |
25958.0 | 2017-10-03 00:00:00 UTC | Will Gilead & AbbVie Benefit from Merck's Decision to Drop Two HCV Programs? | ABBV | https://www.nasdaq.com/articles/will-gilead-abbvie-benefit-mercks-decision-drop-two-hcv-programs-2017-10-03 | nan | nan | Late last week, Merck MRK announced its decision to discontinue the development of a couple of candidates in its hepatitis C virus ("HCV") program - MK-3682B (grazoprevir/ruzasvir/ uprifosbuvir) and MK-3682C (ruzasvir/uprifosbuvir). The company's decision was based on a review of available phase II efficacy data and the growing competition in the HCV market. Merck itself has a marketed product in the HCV market in the form of Zepatier (elbasvir and grazoprevir) which brought in sales of $895 million in the first six months of 2017 (including a $40 million favorable adjustment to rebate accruals due to mix of business). While Merck will continue to work on expanding Zepatier's utilization across the world, uptake will be impacted by the ongoing decline in overall patient volumes in many markets and increased competition.
Gilead and AbbVie in HCV Spotlight
Merck's announcement has now put the spotlight firmly on Gilead Sciences GILD and AbbVie ABBV , two key players in this market.
Gilead is the undisputed leader in the HCV market with its HCV products bringing in sales of $5.4 billion in the first half of 2017. The company revolutionized the treatment paradigm in the HCV market with the introduction of Sovaldi by cutting down the duration of treatment to as few as 12 weeks instead of the prior standard of care of up to 48 weeks. Moreover, the need for peg-interferon injections, which come with several side effects, was reduced or eliminated completely.
Gilead launched Harvoni next, the first once-daily single-tablet regimen for the treatment of the most prevalent HCV genotype in the United States. This was followed by the launch of Epclusa, the first all-oral, pan-genotypic, single-tablet regimen for the treatment of adults with genotype 1-6 chronic HCV infection. This year, Gilead gained approval for yet another HCV treatment, Vosevi.
Although Gilead ruled the HCV market for quite a few years, sales are declining given intense pricing pressure, growing competition, pricing scrutiny and a declining patient population. The approval of newer HCV products has resulted in a rapid increase in the number of patients who were treated and cured followed by a decline in the number of patients seeking care and being able to access HCV treatment. Gilead expects HCV net product sales in the range of $8.5 billion to $9.5 billion in 2017 (announced with Q2 results), representing quite a drop from last year's HCV product sales of $14.8 billion.
Meanwhile, AbbVie's HCV products include Mavyret (glecaprevir/pibrentasivr), Viekira Pak (ombitasvir, paritaprevir and ritonavir tablets co-packaged with dasabuvir tablets) and Viekira XR (dasabuvir, ombitasvir, paritaprevir and ritonavir). While Mavyret was approved recently, Viekira sales were $488 million in the first half of 2017. Mavyret, the company's next generation HCV offering, should be a meaningful contributor to sales from 2018.
Other HCV drugs include Bristol-Myers Squibb Company's BMY Daklinza (daclastavir) and Janssen Therapeutics's Olysio (simeprevir).
We remind investors that Merck is not the only company to have taken the decision to halt the development of HCV candidates. Last month, Johnson & Johnson JNJ had announced its decision to terminate a collaboration agreement with Achillion Pharmaceuticals ACHN for HCV.
J&J's Janssen Pharmaceuticals said that it would be discontinuing the development of the investigational HCV treatment regimen JNJ-4178, a combination of three direct acting antivirals: AL-335, odalasvir and simeprevir.
With both Merck and J&J dropping their investigational HCV treatments, Gilead and AbbVie should benefit from the lack of additional competition entering the market, at least in the near term. While the companies will continue to face challenges like declining patient volume and intense pricing pressure, the lack of additional entrants in the market should slow down the rate of decline in sales.
Gilead has been working on expanding the HCV market by encouraging baby boomers to get tested. According to the company, there has been an 80% increase in HCV antibody screening by baby boomers since the start of this initiative. Increased testing has led to an increase in diagnosis with about 190,000 people being newly diagnosed with HCV in 2016, up 32% from 2015. This represents a significant opportunity for the existing players in the HCV market.
Both Gilead and AbbVie are Zacks Rank #3 (Hold) stocks - 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. | Gilead and AbbVie in HCV Spotlight Merck's announcement has now put the spotlight firmly on Gilead Sciences GILD and AbbVie ABBV , two key players in this market. Meanwhile, AbbVie's HCV products include Mavyret (glecaprevir/pibrentasivr), Viekira Pak (ombitasvir, paritaprevir and ritonavir tablets co-packaged with dasabuvir tablets) and Viekira XR (dasabuvir, ombitasvir, paritaprevir and ritonavir). With both Merck and J&J dropping their investigational HCV treatments, Gilead and AbbVie should benefit from the lack of additional competition entering the market, at least in the near term. | Meanwhile, AbbVie's HCV products include Mavyret (glecaprevir/pibrentasivr), Viekira Pak (ombitasvir, paritaprevir and ritonavir tablets co-packaged with dasabuvir tablets) and Viekira XR (dasabuvir, ombitasvir, paritaprevir and ritonavir). Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): 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 Achillion Pharmaceuticals, Inc. (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead and AbbVie in HCV Spotlight Merck's announcement has now put the spotlight firmly on Gilead Sciences GILD and AbbVie ABBV , two key players in this market. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): 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 Achillion Pharmaceuticals, Inc. (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead and AbbVie in HCV Spotlight Merck's announcement has now put the spotlight firmly on Gilead Sciences GILD and AbbVie ABBV , two key players in this market. Meanwhile, AbbVie's HCV products include Mavyret (glecaprevir/pibrentasivr), Viekira Pak (ombitasvir, paritaprevir and ritonavir tablets co-packaged with dasabuvir tablets) and Viekira XR (dasabuvir, ombitasvir, paritaprevir and ritonavir). | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): 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 Achillion Pharmaceuticals, Inc. (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead and AbbVie in HCV Spotlight Merck's announcement has now put the spotlight firmly on Gilead Sciences GILD and AbbVie ABBV , two key players in this market. Meanwhile, AbbVie's HCV products include Mavyret (glecaprevir/pibrentasivr), Viekira Pak (ombitasvir, paritaprevir and ritonavir tablets co-packaged with dasabuvir tablets) and Viekira XR (dasabuvir, ombitasvir, paritaprevir and ritonavir). |
25959.0 | 2017-10-03 00:00:00 UTC | Why Shares in AbbVie Soared 18% in September | ABBV | https://www.nasdaq.com/articles/why-shares-abbvie-soared-18-september-2017-10-03 | nan | nan | What happened
A patent victory and pipeline advances that could lead to billions in additional sales helped catapult AbbVie Inc. (NYSE: ABBV) shares 18% higher in September, according to S&P Global Market Intelligence .
So what
On September 7, the U.S. Patent Office refused competitor Coherus 's request for an inter partes review of AbbVie's U.S. Patent 9,085,619. The decision added strength to claims by AbbVie's management that it can keep Humira copy-cats out of the market in the U.S. until the end of 2022.
The news may have contributed to Amgen 's (NASDAQ: AMGN) decision to cut a deal with AbbVie last month on its own Humira biosimilar. Despite having won FDA approval for its Humira biosimilar, Amgen hasn't launched it yet because of legal wrangling with AbbVie. On September 28, AbbVie announced it's granted an exclusive license to Amgen that allows Amgen to begin marketing its Humira biosimilar in Europe in 2018 and in the U.S. on January 1, 2023. In exchange, Amgen has agreed to drop its challenges to Humira's patents and pay royalties to AbbVie on future sales of its biosimilar.
AbbVie also reported last month that it's making progress toward its goal of diversifying itself away from Humira.
On September 6, the company filed for FDA approval for the use of Elagolix in the treatment of endometriosis with associated pain. If approved, Elagolix will be the first new medication available in the indication in more than 10 years. Current treatments include surgery, off-label contraceptive use, or hormone therapy; however, those treatments don't work for everyone, and pain often returns after patients are taken off of hormone therapy. An FDA decision on Elgagolix is anticipated next year.
AbbVie also reported on September 11 results from a phase 3 trial evaluating upadacitinib (ABT-494) in patients with moderate to severe rheumatoid arthritis (RA). Upadacitinib delivered significant improvements in RA symptoms versus a placebo in patients who were failing to respond to other available treatments. Additionally, AbbVie reported on September 18 that using its Venclexta alongside Roche's best-selling Rituxan extended progression-free survival in patients with relapsing or refractory chronic lymphocytic leukemia (CLL). The results appear to pave the way for expanded use of Venclexta.
Now what
AbbVie still gets over 60% of its sales from Humira, so management's ability to keep competitors at bay and diversify its revenue is critical.
Currently, AbbVie is telling investors that it expects Humira sales to increase to $20 billion in 2020 from about $16 billion in 2016, and that outlook is more bullish than it was two years ago. In 2015, its prediction was for Humira sales of at least $18 billion and total sales of $37 billion in 2020. In my opinion, if management can deliver on these forecasts, then investors' optimism last month will be rewarded.
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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 A patent victory and pipeline advances that could lead to billions in additional sales helped catapult AbbVie Inc. (NYSE: ABBV) shares 18% higher in September, according to S&P Global Market Intelligence . AbbVie also reported on September 11 results from a phase 3 trial evaluating upadacitinib (ABT-494) in patients with moderate to severe rheumatoid arthritis (RA). Additionally, AbbVie reported on September 18 that using its Venclexta alongside Roche's best-selling Rituxan extended progression-free survival in patients with relapsing or refractory chronic lymphocytic leukemia (CLL). | Despite having won FDA approval for its Humira biosimilar, Amgen hasn't launched it yet because of legal wrangling with AbbVie. 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 A patent victory and pipeline advances that could lead to billions in additional sales helped catapult AbbVie Inc. (NYSE: ABBV) shares 18% higher in September, according to S&P Global Market Intelligence . | On September 28, AbbVie announced it's granted an exclusive license to Amgen that allows Amgen to begin marketing its Humira biosimilar in Europe in 2018 and in the U.S. on January 1, 2023. Currently, AbbVie is telling investors that it expects Humira sales to increase to $20 billion in 2020 from about $16 billion in 2016, and that outlook is more bullish than it was two years ago. What happened A patent victory and pipeline advances that could lead to billions in additional sales helped catapult AbbVie Inc. (NYSE: ABBV) shares 18% higher in September, according to S&P Global Market Intelligence . | Despite having won FDA approval for its Humira biosimilar, Amgen hasn't launched it yet because of legal wrangling with AbbVie. AbbVie also reported on September 11 results from a phase 3 trial evaluating upadacitinib (ABT-494) in patients with moderate to severe rheumatoid arthritis (RA). What happened A patent victory and pipeline advances that could lead to billions in additional sales helped catapult AbbVie Inc. (NYSE: ABBV) shares 18% higher in September, according to S&P Global Market Intelligence . |
25960.0 | 2017-10-03 00:00:00 UTC | Introducing The 'Tell' That Unlocks Huge Gains For Stocks | ABBV | https://www.nasdaq.com/articles/introducing-tell-unlocks-huge-gains-stocks-2017-10-03 | nan | nan | This week, I want to tell you the story behind the most powerful investing strategy we've ever seen...
Those who are familiar with this incredible investment system may already know how it works, but few people actually know we practically stumbled on it by accident.
If you know your history, then you know that so-called "accidents" have led to many breakthroughs.
For example, Alexander Fleming stumbled upon penicillin when he found mold-killing bacteria in one of his Petri dishes. John Hyatt accidentally invented plastics while coming up with a replacement for ivory in billiard balls in 1862.
Fast-forward to today, and you'll find that innovative companies like Google understand this all too well.
Google's engineers spend up to 20% of their time working on their own pet projects. And some of the company's biggest successes -- including Gmail -- have come as a direct result of this policy.
They call it "blue-sky" research. Truly innovative companies must provide their employees with this kind of workplace. They have to give their employees the time and freedom to work on projects even if the benefits aren't immediately clear.
I could go on and on with other examples, but the point is when you let smart people work on big ideas that they care about, good things happen... often in unexpected ways.
The Greatest Discovery We've Ever Made
Here at StreetAuthority, our Maximum Profit system was discovered in a similar way. The idea was to gather as many diverse minds as possible who were interested in using the market to make money, and give them the freedom to see what they would come up with.
What we discovered is a system that we think could make you even more money in the stock market than anything we've ever created before.
In short: it solves one of the most common problems every investor faces -- how to get bigger gains in a shorter amount of time.
I have to admit, I was a little skeptical when we first began the project. When we were given the task of creating an investing system that could deliver bigger gains in a shorter amount of time, my first thought was "this sounds an awful lot like trading."
You see, most people -- including myself at the time -- immediately equate trading with moving in and out of stocks in a matter of hours or days, racking up huge commissions and ignoring fundamentals. And in my experience, the vast majority of investors should NOT be doing this sort of "trading." It's a great way to lose your shirt.
And before I go any further, let me tell you what we ended up with has nothing to do with options, short-selling or anything complicated. The truth is a trading system can be as complicated or as simple as you want. And in my experience, simple is better.
So our team got to work and dug through academic journals... SEC filings... government data...
We hired a Chartered Market Technician -- one of only a few hundred in the world. He back tested our top trading strategies using market data from the past few decades. We wanted to make sure the strategy could work during bear markets, wars, inflation, deflation, bubbles, even a currency crisis. Everything.
If a particular strategy hadn't outperformed the market for at least 30 years, then we didn't bother with it.
We even brought in an accountant to get his perspective on which financial metrics actually matter... And what we found is something you'll rarely hear the mainstream media highlight in their coverage of companies.
All said and done, we discovered what we call the Maximum Profit system.
It's an elegant, yet simple system. We use two of the most reliable indicators in the investing universe -- one fundamental, one technical -- to identify when a stock is giving an important "tell" about its next move.
The result: bigger returns in a fraction of the time.
Not only that, but by using this simple market "Tell," you can survive market crashes relatively unscathed. In the 2008 financial crisis, for example, we found that this market "Tell" would have gotten you out five months before. And it would have gotten you back in just four days after the bottom.
What makes our system so different is that it's designed to give investors a simple set of rules with clear buy and sell signals.
That's what we call "The Tell."
The reason for this is clear. In baseball, when a pitcher sometimes inadvertently shows his grip on the ball before putting it in his glove for the next pitch, a seasoned batter can know exactly what kind of pitch is coming beforehand. And when a good hitter knows what pitch is coming, the chances of him knocking it out of the park for a home run are much, much higher.
The same principle is at work with the Maximum Profit system.
Now having said that, a system is worth nothing without rules -- and an investor who diligently follows them.
Think about it...
If a hitter is undisciplined and just swings away at any kind of pitch, he's not going to get very good results. But when you wait for the right moment and know what kind of pitch is coming, well, let's just say you have a major advantage over everyone else.
That's why having a set of rules -- whether you're trading or investing -- is paramount. As my colleague Jimmy Butts likes to say, rules take the emotion of out of investing. They provide discipline.
However, as exciting as "The Tell" is, the Maximum Profit system is not for everyone.
This isn't a crystal ball.
You'd be surprised by how many people learn about the system's results and expect the same kinds of gains without following this system to the letter.
But when you do follow along, here's an idea of what is possible...
Since we went live with the Maximum Profit system, the average holding period for a trade has been just over four months. Most people who claim to invest for the long-term have an average holding period of less than that.
And our results have been amazing.
We've been using "The Tell" to hit home runs for the past three years. We're talking about gains of 181% with Lannett... 90% with Electronic Arts... 72% with Alcoa... 135% with Westmoreland Coal... 242% with Bitauto Holdings, and countless others.
We usually find about 25 stocks that give away this "tell" each year. Right now, the Maximum Profit portfolio has 30 stocks. Of those 30, 27 are winners right now. Some have only recently started to take off, showing gains of 5% to 8%, while others are up 42% to 71% (all in less than 12 months) and still rising.
There's a lot more to say about Maximum Profit and how "The Tell" can lead to triple-digit gains in a matter of months, but I simply don't have the space for it in today's issue. ( For more, check out this report .)
But I'll leave you with this...
There's a reason the Maximum Profit system is the best-performing systems-based service in StreetAuthority's 16-year history. At the end of the day, it's all because of "The Tell" signal that we're going to be discussing more in the coming weeks.
Bottom line, investors who find a proven strategy and stick to it with rigorous discipline stand a much better chance for booking huge gains than those that don't. So if you'd like to learn more about "The Tell" right now and how to put the Maximum Profit system to work for you, go 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.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When we were given the task of creating an investing system that could deliver bigger gains in a shorter amount of time, my first thought was "this sounds an awful lot like trading." You see, most people -- including myself at the time -- immediately equate trading with moving in and out of stocks in a matter of hours or days, racking up huge commissions and ignoring fundamentals. So our team got to work and dug through academic journals... SEC filings... government data... We hired a Chartered Market Technician -- one of only a few hundred in the world. | What makes our system so different is that it's designed to give investors a simple set of rules with clear buy and sell signals. Since we went live with the Maximum Profit system, the average holding period for a trade has been just over four months. Related Articles 3 Top-Ranked Value Stocks To Buy Today How You Can Profit From The Fall Of This 'Old Tech' Company Never Run Out Of Money With These 5 Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2016 StreetAuthority, LLC. | This week, I want to tell you the story behind the most powerful investing strategy we've ever seen... Those who are familiar with this incredible investment system may already know how it works, but few people actually know we practically stumbled on it by accident. You'd be surprised by how many people learn about the system's results and expect the same kinds of gains without following this system to the letter. Related Articles 3 Top-Ranked Value Stocks To Buy Today How You Can Profit From The Fall Of This 'Old Tech' Company Never Run Out Of Money With These 5 Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2016 StreetAuthority, LLC. | They have to give their employees the time and freedom to work on projects even if the benefits aren't immediately clear. In the 2008 financial crisis, for example, we found that this market "Tell" would have gotten you out five months before. We usually find about 25 stocks that give away this "tell" each year. |
25961.0 | 2017-10-03 00:00:00 UTC | These 3 Stocks Could Be The Next Activist Targets | ABBV | https://www.nasdaq.com/articles/these-3-stocks-could-be-next-activist-targets-2017-10-03 | nan | nan | If the post-recession markets had to be defined by one theme, it would be the emergence of activist investors.
Shareholder activism, defined by buying control of a company with the goal of making a major change in order to enhance its value, has been around since the first traders in the Dutch East India Company. But we've rarely seen so much activity and oversight lately. Activist campaigns have surged from 104 in 2000 to 758 in 2016 according to Activist Insight's annual review .
Nearly half (40%) of S&P 500 companies saw activist investor campaigns in the seven years through 2015. Assets under activist management have grown nearly 20% annually for more than a decade, topping $123 billion last year.
Activists have been attracted by the mountain of balance sheet cash companies hold, and the historically cheap cost of debt. That availability of money lends itself to poor checkbook control by management and an attractive source of cash return to the billionaire activists that can buy seats on a board to control it.
Oversight by large investors has helped protect shareholder rights and led to some impressive gains. A portfolio of activist targets monitored by Novus has returned 10.7% annually since 2004, handily outperforming the 7.6% annualized return on the S&P500.
One noted activist investor has just tipped his hand to the next potential group of targets. The companies in this industry have underperformed and activists are pointing the finger at management. The activists are already pooling their money to start forcing change and these companies could soon be worth their weight in gold.
Gold Miners Haven't Been Mining For Profits
Gold miners have underperformed metal prices for nearly a decade, and activist investors may soon get involved. Billionaire John Paulson is putting together a group of activist investors and institutional funds to target miners.
Shares of gold miners tracked by Bloomberg have lost 59% since the beginning of 2011 versus a loss of just 8.5% in the price of the commodity. Some of that poor performance is due to overzealous M&A activity as the price of gold climbed after the 2008 recession. The price of gold peaked in 2011 and has done little for four years on weak inflationary pressures.
Speaking at the Denver Gold Forum, Paulson argued that some of the poor performance was also due to high executive compensation and inactive boards. The Shareholder's Gold Council, which could include representatives from Vanguard, BlackRock, State Street and Tocqueville Asset Management, will aim to unify institutional and activist investors to appoint board members and force change at select miners.
Government policies in China and India have weighed on consumer demand since 2016, but purchases could soon increase in the traditionally strong markets for gold. Geopolitical tensions and a run to $1,300 per ounce have recently brought investors back, with gold ETF holdings rising to levels not seen since 2013.
That could mean surprisingly positive outlooks when miners start reporting third-quarter earnings this month. Activist attention plus a recovery in the price of gold could bring investors stampeding back into the sector in a way we haven't seen since the 2008 recession.
Gold Miners With A Target On Their Backs
Paulson has specifically called out the high level of executive compensation as a burden on miners' shares. The best targets for potential activism could be those miners with relatively high compensation but solid fundamentals.
AngloGold Ashanti (NYSE: AU ) operates in nine countries on three continents and could benefit from expansion projects in its lower-cost Australia and South America assets. The company is one of the largest producers in the world but sources roughly two-thirds of production in Africa where deep mines have higher extraction costs. Increasing production or acquiring assets in other regions could help drive investor sentiment and margins.
Paulson owns 12.8 million shares in AngloGold, worth about $120 million, his largest holding in gold miners. Executive compensation was $15.4 million in 2016, or about 1.2% of operational cash flow. The company has lagged peers in sales and margins, setting the stage for an activist to make major changes.
Agnico Eagle Mines (NYSE: AEM ) operates in countries with considerably lower geopolitical risk, like Canada, Mexico and Finland. Despite lackluster gold prices , the company has managed to book sales growth over the last three years, bucking the industry trend, and has one of the highest operating margins among its peers.
Paulson holds 757,600 shares of Agnico Eagle for a $35 million stake in the company. The company is very well managed but executive compensation is higher than any others I've seen at $31.7 million in 2016, just over 4% of operational cash flow. This could be exactly what Paulson and the Shareholder's Gold Council will be targeting.
Iamgold (NYSE: IAG ) operates in Canada, Suriname and Burkina Faso, as well as in Mali through a joint venture with AngloGold Ashanti. Attractive expansion projects in Canada and Mali could help the company increase production at lower costs. The sale of its Niobec mine in 2015 put the company in an enviable financial position with balance sheet cash of $776 million, nearly 27% of its market capitalization, and only $392 million in long-term debt.
Paulson holds 3.86 million shares of IAG worth about $25 million. Executive and board compensation totaled $7.0 million in 2016 for about 2.2% of operational cash flow. Shares are attractively valued at just 1.1 times book value and the company's significant cash power gives it the ability to acquire cheap assets or buy back shares.
Investing solely on the potential for shareholder activism is ultimately a binary gamble. Investors should invest in companies with strong fundamentals that may also benefit from activism.
Action To Take: Position in gold miners that could see increased interest from activist investors and a push for greater shareholder returns even if gold prices fail to move higher.
Editor's Note: With reports of deteriorating production, performance, and revenue... this high-profile CEO is ditching his auto empire . Now he's set his sights on an even more lucrative business. And if you jump in at the ground level of this opportunity you can ride it upward to sky-high profits. Grab a piece of this $1.3 trillion industry in the making today .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Shareholder's Gold Council, which could include representatives from Vanguard, BlackRock, State Street and Tocqueville Asset Management, will aim to unify institutional and activist investors to appoint board members and force change at select miners. AngloGold Ashanti (NYSE: AU ) operates in nine countries on three continents and could benefit from expansion projects in its lower-cost Australia and South America assets. Despite lackluster gold prices , the company has managed to book sales growth over the last three years, bucking the industry trend, and has one of the highest operating margins among its peers. | Gold Miners Haven't Been Mining For Profits Gold miners have underperformed metal prices for nearly a decade, and activist investors may soon get involved. Paulson owns 12.8 million shares in AngloGold, worth about $120 million, his largest holding in gold miners. Attractive expansion projects in Canada and Mali could help the company increase production at lower costs. | Gold Miners Haven't Been Mining For Profits Gold miners have underperformed metal prices for nearly a decade, and activist investors may soon get involved. The Shareholder's Gold Council, which could include representatives from Vanguard, BlackRock, State Street and Tocqueville Asset Management, will aim to unify institutional and activist investors to appoint board members and force change at select miners. Action To Take: Position in gold miners that could see increased interest from activist investors and a push for greater shareholder returns even if gold prices fail to move higher. | Gold Miners With A Target On Their Backs Paulson has specifically called out the high level of executive compensation as a burden on miners' shares. The company is very well managed but executive compensation is higher than any others I've seen at $31.7 million in 2016, just over 4% of operational cash flow. Attractive expansion projects in Canada and Mali could help the company increase production at lower costs. |
25962.0 | 2017-10-03 00:00:00 UTC | Good News and Bad News for Gilead Sciences: Which Carries More Weight? | ABBV | https://www.nasdaq.com/articles/good-news-and-bad-news-gilead-sciences-which-carries-more-weight-2017-10-03 | nan | nan | You knew it wouldn't take too long for euphoria over Gilead Sciences ' (NASDAQ: GILD) planned acquisition of Kite Pharma to wear off. The question was whether the next round of news for the big biotech would be good or bad. As it turned out, Gilead has had both over the last few days.
But all news isn't equally important. Here are the good and bad recent developments for Gilead, and what the real impact of each could be.
Bad news
Most people want to hear the bad news first, according to psychology researchers, so let's start with Gilead Sciences' recent negative developments. One is that longtime COO Kevin Young is retiring from the company in early 2018.
Young joined Gilead in 2004 after spending 20 years in the biopharmaceutical industry. He played an instrumental role in several important product launches for the company, including Gilead's first single-tablet HIV drugs and the enormously successful introductions of hepatitis C drugs Sovaldi and Harvoni.
This isn't Young's first time to retire. In 2014, he retired from Gilead but continued to serve as a senior advisor. Last year, though, Young came out of his semi-retirement to take the COO job.
Gilead's other bad news comes on the legal front. The U.S. Court of Appeals for the Ninth Circuit reversed a federal district court's dismissal of a whistleblower lawsuit by former Gilead Sciences employees Jeff and Sherilyn Campie. The Campies alleged that Gilead used unauthorized facilities in China to manufacture HIV drugs Emtriva, Truvada, and Atripla for at least two years beginning in December 2007. The lawsuit claims that Gilead used the Chinese facilities to lower costs and trigger price reduction clauses in contracts with other manufacturers.
In addition, it is alleged that Gilead covered up quality problems that occurred in the Chinese facilities. Jeff Campie served as senior director of global quality assurance for Gilead from July 2006 to July 2009. Campie maintains that he raised concerns about "the integrity of the data being generated to support the release of Gilead drugs" beginning in 2007. He claims that he was ultimately fired as a result of his efforts to draw attention to the issues.
Good news
What's the good news for Gilead? Merck (NYSE: MRK) announced that it was discontinuing development for two experimental hepatitis C virus (HCV) drugs. This decision was made, according to the big drugmaker, "based on a review of available Phase 2 efficacy data and in consideration of the evolving marketplace and the growing number of treatment options available for patients with chronic HCV infection."
Merck will continue to market its already-approved HCV drug, Zepatier. However, Zepatier hasn't been very competitive against Gilead's HCV franchise. Merck's move effectively means that the HCV market is now defined by a primarily one-on-one battle between Gilead Sciences and AbbVie (NYSE: ABBV) .
AbbVie recently launched its pan-genotypic HCV therapy, Mavyret. The company priced Mavyret at a significant discount to Gilead's pan-genotypic drug Epclusa. At the Citi biotech conference in early September, Kevin Young noted that AbbVie's product was "the closest thing we've seen to the profile of [Gilead's] HCV drugs." While Gilead will likely be forced to reduce prices to compete against AbbVie, the news from Merck is positive for both companies.
How the developments tip the scale
Investors appeared to have given Gilead's bad news more weight than they did the good news. Gilead stock fell 3.5% after the announcement of Young's retirement and the reopening of the whistleblower case. Shares didn't appear to be impacted very much by Merck's decision. Instant reactions aren't always the most important ones, though.
Young's retirement shouldn't be a long-term issue for Gilead. The biotech will certainly be able to hire a capable replacement -- and Young is helping for several months to transition. If Gilead is ultimately found to have done the things it is alleged to have done in the whistleblower case, it could cost the company big time. However, right now all we have are allegations.
On the other hand, the evaporation of potential new competition from Merck should translate to hard dollars for Gilead. As Leerink Partners analyst Geoffrey Porges said about Merck's decision, this "changes everything." Porges thinks that "the pace of erosion of Gilead's HCV revenue should slow" and the indication should be "a meaningful source of revenue" for both Gilead and AbbVie for a long time to come.
I agree with Porges' assessment of the situation. Things could change if Gilead is found to have violated regulations as alleged. For now, though, Gilead's good news is more concrete and relevant financially to the company than the bad news.
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Keith Speights owns shares of AbbVie and Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2017 $86 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. | Merck's move effectively means that the HCV market is now defined by a primarily one-on-one battle between Gilead Sciences and AbbVie (NYSE: ABBV) . At the Citi biotech conference in early September, Kevin Young noted that AbbVie's product was "the closest thing we've seen to the profile of [Gilead's] HCV drugs." AbbVie recently launched its pan-genotypic HCV therapy, Mavyret. | AbbVie recently launched its pan-genotypic HCV therapy, Mavyret. At the Citi biotech conference in early September, Kevin Young noted that AbbVie's product was "the closest thing we've seen to the profile of [Gilead's] HCV drugs." *Stock Advisor returns as of September 5, 2017 Keith Speights owns shares of AbbVie and Gilead Sciences. | Porges thinks that "the pace of erosion of Gilead's HCV revenue should slow" and the indication should be "a meaningful source of revenue" for both Gilead and AbbVie for a long time to come. Merck's move effectively means that the HCV market is now defined by a primarily one-on-one battle between Gilead Sciences and AbbVie (NYSE: ABBV) . AbbVie recently launched its pan-genotypic HCV therapy, Mavyret. | Merck's move effectively means that the HCV market is now defined by a primarily one-on-one battle between Gilead Sciences and AbbVie (NYSE: ABBV) . AbbVie recently launched its pan-genotypic HCV therapy, Mavyret. At the Citi biotech conference in early September, Kevin Young noted that AbbVie's product was "the closest thing we've seen to the profile of [Gilead's] HCV drugs." |
25963.0 | 2017-10-02 00:00:00 UTC | AbbVie Stock Upgraded: What You Need to Know | ABBV | https://www.nasdaq.com/articles/abbvie-stock-upgraded-what-you-need-know-2017-10-02 | nan | nan | Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
2017 has been a good year for owners of AbbVie (NYSE: ABBV) stock. Shares of the big pharma (market cap: $141.6 billion) are up more than 40% over the past year -- and up more than twice as much as the rest of the S&P 500 . But now here's the best news of all: According to the analysts at Boston-based investment banker Leerink Partners , AbbVie stock is poised to keep on outperforming the S&P 500 for some time to come.
Here are three things you should know about that.
1. What Leerink said
Leerink Partners announced this morning that it is upgrading shares of AbbVie stock to outperform and assigning the stock a $106 price target. If the analyst is right about that, investors today stand to earn about a 19% profit on the stock, on top of AbbVie's already rich 2.9% dividend yield .
In part, Leerink's rating is a reaction to news last week that AbbVie has resolved its legal dispute with Amgen (NASDAQ: AMGN) over the latter's proposed biosimilar product, Amjevita. AbbVie is granting Amgen a non-exclusive license to use AbbVie's intellectual property relating to its top-selling Humira arthritis treatment. In exchange for the license, Amgen will acknowledge "the validity of AbbVie's intellectual property related to" Humira. Amgen will also pay (an undisclosed amount of) royalties to AbbVie for use of its intellectual property -- and Amgen is agreeing not to sell Amjevita in the U.S. before 2023.
That's part of the reason Leerink is impressed with AbbVie today -- but it's not the whole reason.
2. Lots to like about AbbVie
In addition to Humira, AbbVie boasts a strong portfolio of drugs, including Imbruvica (to treat leukemia), Viekira Pak (hepatitis C), and Kaletra and Norvir (HIV). It also has arguably the third best pipeline of upcoming drugs in big pharma, including:
upadacitinib (JAK1) for treating arthritis,
risankizumab (IL-23) for psoriasis,
and elagolix (GnRH) for endometriosis.
As Leerink explains in a note covered on StreetInsider.com (requires subscription) this morning, all three of these drugs "will emerge from phase III [clinical trials] over the next 12 months, and have the potential to contribute collectively $6bn in product sales by 2023E" -- the date that Amgen's Amjevita will finally come to market in the U.S.
3. Still growing fast
As my fellow Fool Keith Speights pointed out last month , AbbVie has grown its earnings at a 17% compound rate over the last five years, but had been expected to slow that growth rate down to about 14% over the next five years. Now, though, with the Amgen deal in its pocket, and new drugs ready to issue from the pipeline, Leerink thinks AbbVie might be able to eke out a bit more growth.
Leerink is projecting 15% annual earnings growth through at least 2021, which the analyst notes is above average for large-cap pharmaceutical makers and biopharmas as well.
What it means to investors
Combine Leerink's projected 15% earnings growth rate with AbbVie's dividend yield of nearly 3%, and you're looking at a total return of nearly 18% -- not an obvious bargain for a stock that costs 22 times trailing earnings today, but not a bad valuation. And it's even possible AbbVie could outperform Leerink's expectation. After all, AbbVie grew at a 17% rate over the past five years, and it's projected to accelerate -- not slow down -- next year, with analysts projecting 18.5% earnings growth in 2018.
Tack on a little bit of profit from Amgen's royalty payments (pursuant to the companies' settlement, Amgen is permitted to sell Amjevita "in most countries in the European Union" beginning in late 2018), and AbbVie might even surpass 18.5% growth next year.
Granted, a quick glance at the valuation is just the starting point for evaluating AbbVie stock -- you also need to weigh the company's $30.3 billion net debt load, for example. But for now, it's a propitious start.
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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. | Today, we're taking one high-profile Wall Street pick and putting it under the microscope... 2017 has been a good year for owners of AbbVie (NYSE: ABBV) stock. In part, Leerink's rating is a reaction to news last week that AbbVie has resolved its legal dispute with Amgen (NASDAQ: AMGN) over the latter's proposed biosimilar product, Amjevita. But now here's the best news of all: According to the analysts at Boston-based investment banker Leerink Partners , AbbVie stock is poised to keep on outperforming the S&P 500 for some time to come. | AbbVie is granting Amgen a non-exclusive license to use AbbVie's intellectual property relating to its top-selling Humira arthritis treatment. What it means to investors Combine Leerink's projected 15% earnings growth rate with AbbVie's dividend yield of nearly 3%, and you're looking at a total return of nearly 18% -- not an obvious bargain for a stock that costs 22 times trailing earnings today, but not a bad valuation. After all, AbbVie grew at a 17% rate over the past five years, and it's projected to accelerate -- not slow down -- next year, with analysts projecting 18.5% earnings growth in 2018. | What Leerink said Leerink Partners announced this morning that it is upgrading shares of AbbVie stock to outperform and assigning the stock a $106 price target. What it means to investors Combine Leerink's projected 15% earnings growth rate with AbbVie's dividend yield of nearly 3%, and you're looking at a total return of nearly 18% -- not an obvious bargain for a stock that costs 22 times trailing earnings today, but not a bad valuation. After all, AbbVie grew at a 17% rate over the past five years, and it's projected to accelerate -- not slow down -- next year, with analysts projecting 18.5% earnings growth in 2018. | But now here's the best news of all: According to the analysts at Boston-based investment banker Leerink Partners , AbbVie stock is poised to keep on outperforming the S&P 500 for some time to come. In part, Leerink's rating is a reaction to news last week that AbbVie has resolved its legal dispute with Amgen (NASDAQ: AMGN) over the latter's proposed biosimilar product, Amjevita. Amgen will also pay (an undisclosed amount of) royalties to AbbVie for use of its intellectual property -- and Amgen is agreeing not to sell Amjevita in the U.S. before 2023. |
25964.0 | 2017-10-02 00:00:00 UTC | Merck Drops Two HCV Combination Programs Amid Competition | ABBV | https://www.nasdaq.com/articles/merck-drops-two-hcv-combination-programs-amid-competition-2017-10-02 | nan | nan | Merck & Co., Inc.MRK announced that it is discontinuing further development of two of its next-generation hepatitis C (HCV) programs - MK-3682B and MK-3682C - as the market is becoming extremely crowded.
MK-3682B was an all-oral, triple combination regimen (3682/uprifosbuvir, in combination with grazoprevir and ruzasvir1) developed for the treatment of chronic HCV infection. MK-3682C was a combination of ruzasvir/uprifosbuvir.
Merck's shares have risen 9.2% this year so far compared with a 16.4% increase for the industry .
The medicine recorded sales of $517 million in the second quarter of 2017, much higher than $378 million in the first quarter, attributable to strong underlying demand trends in the United States, Europe and Japan as the company continues to launch Zepatier globally. However, we remind investors that at the second quarter conference call, management had warned that Zepatier uptake, going forward, may be impacted by the ongoing decline in overall patient volumes in many markets and increased competition.
The HCV market is getting crowded and is thus seeing increased pricing pressure. Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' Daklinza and Johnson & Johnson's JNJ Olysio.
Moreover, other companies are also looking to bring new, improved, shorter-duration HCV treatments to market.
AbbVie's pan-genotypic shorter-duration HCV regimen of glecaprevir/pibrentasvir (G/P), Mavyret, received approval in the United States., Canada and the EU in July/August. Meanwhile, Gilead already markets Epclusa, an all-oral, pan-genotypic, single tablet HCV regimen since 2016. Meanwhile, Gilead's single-tablet regimen (STR) of Sovaldi, velpatasvir and voxilaprevir, Vosevi received approval in the United States, EU and Canada in July/August. Vosevi became the first once-daily STR available as a salvage therapy for patients infected with HCV genotype 1-6 who have failed prior treatment with DAA regimens including NS5A inhibitors.
Merck 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. | Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' Daklinza and Johnson & Johnson's JNJ Olysio. AbbVie's pan-genotypic shorter-duration HCV regimen of glecaprevir/pibrentasvir (G/P), Mavyret, received approval in the United States., Canada and the EU in July/August. Click to get this free report Johnson & Johnson (JNJ): 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. | AbbVie's pan-genotypic shorter-duration HCV regimen of glecaprevir/pibrentasvir (G/P), Mavyret, received approval in the United States., Canada and the EU in July/August. Click to get this free report Johnson & Johnson (JNJ): 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. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' Daklinza and Johnson & Johnson's JNJ Olysio. | Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' Daklinza and Johnson & Johnson's JNJ Olysio. Click to get this free report Johnson & Johnson (JNJ): 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. AbbVie's pan-genotypic shorter-duration HCV regimen of glecaprevir/pibrentasvir (G/P), Mavyret, received approval in the United States., Canada and the EU in July/August. | Gilead Sciences Inc. GILD markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.'s ABBV Viekira Pak, Bristol-Myers' Daklinza and Johnson & Johnson's JNJ Olysio. AbbVie's pan-genotypic shorter-duration HCV regimen of glecaprevir/pibrentasvir (G/P), Mavyret, received approval in the United States., Canada and the EU in July/August. Click to get this free report Johnson & Johnson (JNJ): 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. |
25965.0 | 2017-10-02 00:00:00 UTC | AbbVie: Better Late Than Never | ABBV | https://www.nasdaq.com/articles/abbvie-better-late-never-2017-10-02 | nan | nan | Shares of AbbVie (ABBV) have soared this year --and there are plenty of reasons for investor optimism. Humira for one, looks less exposed to competition, while AbbVie's pipeline could also produce some winners. In fact, the news has been so good that AbbVie was upgraded to Outperform from Market Perform by Leerink's Geoffrey Porges and Bradley Canino despite the fact that the stock has gained more than 40% so far this year. They explain why:
Shares of AbbVie have gained 1.2% to $89.93 at 10 a.m. today, while Amgen has risen 0.3% to $187.06. The iShares Nasdaq Biotechnology ETF (IBB) has risen 1.2% to $337.51.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of AbbVie (ABBV) have soared this year --and there are plenty of reasons for investor optimism. Humira for one, looks less exposed to competition, while AbbVie's pipeline could also produce some winners. They explain why: Shares of AbbVie have gained 1.2% to $89.93 at 10 a.m. today, while Amgen has risen 0.3% to $187.06. | They explain why: Shares of AbbVie have gained 1.2% to $89.93 at 10 a.m. today, while Amgen has risen 0.3% to $187.06. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shares of AbbVie (ABBV) have soared this year --and there are plenty of reasons for investor optimism. | In fact, the news has been so good that AbbVie was upgraded to Outperform from Market Perform by Leerink's Geoffrey Porges and Bradley Canino despite the fact that the stock has gained more than 40% so far this year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shares of AbbVie (ABBV) have soared this year --and there are plenty of reasons for investor optimism. | Shares of AbbVie (ABBV) have soared this year --and there are plenty of reasons for investor optimism. Humira for one, looks less exposed to competition, while AbbVie's pipeline could also produce some winners. In fact, the news has been so good that AbbVie was upgraded to Outperform from Market Perform by Leerink's Geoffrey Porges and Bradley Canino despite the fact that the stock has gained more than 40% so far this year. |
25966.0 | 2017-09-29 00:00:00 UTC | AbbVie, Amgen Resolve Humira Patent Dispute | ABBV | https://www.nasdaq.com/articles/abbvie-amgen-resolve-humira-patent-dispute-2017-09-29 | nan | nan | AbbVie Inc. ( ABBV ) announced Sept. 28 it has reached a resolution with Amgen Inc. ( AMGN ) in regard to Humira.
Humira is the brand name under which AbbVie markets adalimumab, a drug used to treat autoimmune disorders like rheumatoid arthritis and several inflammatory diseases like psoriatic arthritis.
According to the arrangement, AbbVie will grant Amgen a non-exclusive license to sell its Humira biosimilar in the U.S. starting Jan. 31, 2023 and in several European countries starting Oct. 16, 2018. It will be extened to other countries at later dates. Amgen will pay AbbVie unspecified royalties on sales of its biosimilar product.
The specific terms of the agreement have not been disclosed, but both parties have agreed to dismiss all pending legal action. In addition, Amgen has recognized the validity of AbbVie's Humira patent.
The settlement is good news for AbbVie's investors for three reasons.
First, Amgen was granted a non-exclusive license, which means other health care companies that have submitted applications for their Humira biosimilars to the Food and Drug Administration will likely end up with the same kind of agreement, guaranteeing more royalties for AbbVie.
Second, the royalties from the sales of Amgen's biosimilar will support AbbVie 's revenue.
Third, it may take several years for Amgen's biosimilar to erode Humira's sales - after it is released - because doctors and health care professionals will need to become familiar with the product.
AbbVie closed at $88.96 per share on the New York Stock Exchange Thursday, up $4.21 or 4.97%. The company has a market capitalization of $141.81 billion, a price-book (P/B) ratio of 23.56, a price-sales (P/S) ratio of 5.38, a price-earnings (P/E) ratio of 21.86 and an EV/Ebitda ratio of 15.65.
The stock is uptrending and has gained 42% year to date. The health care company is trading about $2 below it 52-week high of $90.95. The 52-week low is $55.06. For AbbVie, analysts have set a forward P/E ratio of 12.79 and expect the health care company to close fiscal 2018 with EPS of $5.52.
AbbVie distributes an annual dividend of $2.56 through a quarterly payment of 64 cents, for a dividend yield of 2.93%.
Amgen is trading at $185.46 per share, up 58 cents or 0.31% from the previous trading day, with a market capitalization of $135.33 billion. The health care stock is up trending on the Nasdaq and gained nearly 27% year to date.
The company has a P/B ratio of 4.27, a P/E ratio of 16.88 and a P/S ratio of 5.98. The 52-week low is $133.64 and the 52-week high is $191.10. Amgen has a forward P/E ratio of 14.37. For full fiscal 2017, analysts forecast the health care company will report EPS of $12.57. The forward P/E ratio combined with the fiscal 2018 EPS estimate yields a value of $180.63 per share.
Amgen distributes an annual dividend of $4.60 through quarterly payments of $1.15, for a dividend yield of 2.47%.
Disclosure: I have no positions in any stocks mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | First, Amgen was granted a non-exclusive license, which means other health care companies that have submitted applications for their Humira biosimilars to the Food and Drug Administration will likely end up with the same kind of agreement, guaranteeing more royalties for AbbVie. For AbbVie, analysts have set a forward P/E ratio of 12.79 and expect the health care company to close fiscal 2018 with EPS of $5.52. AbbVie Inc. ( ABBV ) announced Sept. 28 it has reached a resolution with Amgen Inc. ( AMGN ) in regard to Humira. | For AbbVie, analysts have set a forward P/E ratio of 12.79 and expect the health care company to close fiscal 2018 with EPS of $5.52. AbbVie distributes an annual dividend of $2.56 through a quarterly payment of 64 cents, for a dividend yield of 2.93%. AbbVie Inc. ( ABBV ) announced Sept. 28 it has reached a resolution with Amgen Inc. ( AMGN ) in regard to Humira. | First, Amgen was granted a non-exclusive license, which means other health care companies that have submitted applications for their Humira biosimilars to the Food and Drug Administration will likely end up with the same kind of agreement, guaranteeing more royalties for AbbVie. For AbbVie, analysts have set a forward P/E ratio of 12.79 and expect the health care company to close fiscal 2018 with EPS of $5.52. AbbVie Inc. ( ABBV ) announced Sept. 28 it has reached a resolution with Amgen Inc. ( AMGN ) in regard to Humira. | For AbbVie, analysts have set a forward P/E ratio of 12.79 and expect the health care company to close fiscal 2018 with EPS of $5.52. AbbVie Inc. ( ABBV ) announced Sept. 28 it has reached a resolution with Amgen Inc. ( AMGN ) in regard to Humira. Humira is the brand name under which AbbVie markets adalimumab, a drug used to treat autoimmune disorders like rheumatoid arthritis and several inflammatory diseases like psoriatic arthritis. |
25967.0 | 2017-09-29 00:00:00 UTC | How Good Is AbbVie's Humira Deal With Amgen? | ABBV | https://www.nasdaq.com/articles/how-good-abbvies-humira-deal-amgen-2017-09-29 | nan | nan | One major cloud that has been hanging over AbbVie (NYSE: ABBV) is how long the company will be able to hold off biosimilar competition for its top-selling drug Humira. Amgen (NASDAQ: AMGN) won FDA approval last year for Amjevita, its biosimilar to Humira. However, Amjevita hasn't reached the market yet due to AbbVie's legal challenges.
AbbVie's management team has stated in the past that it would be able to protect Humira from U.S. competition through 2022 . On Thursday, the company took a big step in delivering on its promise by announcing an agreement with Amgen that will prevent Amjevita from being sold in the U.S. until 2023. AbbVie stock jumped around 6% on the news. But just how good is the deal with Amgen?
Background and details
It's important to understand the background behind what was going on with AbbVie and Amgen. The Food and Drug Administration approved Amjevita in September 2016. However, the FDA focused on clinical equivalence to Humira and not on questions about patent enforcement.
Although some key patents for Humira have expired, AbbVie has another 61 patents for the drug that are still in force. So AbbVie almost immediately went to court to assert its intellectually property rights. Had Amgen attempted to launch Amjevita, AbbVie would definitely have sought a preliminary injunction to keep Amjevita off the U.S. market until the matter could be settled in court.
As it turned out, Amgen didn't try to begin selling its biosimilar. The two companies were scheduled to head to court in November 2019, but that trial won't be necessary now. According to AbbVie, "All litigation pending between the parties will be dismissed, and Amgen has acknowledged the validity of AbbVie's intellectual property related to Humira."
Amgen will now be able to begin marketing Amjevita in the U.S. on Jan. 31, 2023. However, the biotech can launch its biosimilar in Europe starting on Oct. 16, 2018.
What it means for AbbVie
The great news for AbbVie is that it won't have competition from Amgen's biosimilar in the U.S. until 2023 -- just as the company promised. Even better, Amgen will pay royalties to AbbVie on all global sales of Amjevita as a result of the company's acknowledgement of AbbVie's intellectual property rights for Humira.
Note, however, that AbbVie's agreement with Amgen doesn't prevent others from trying to dethrone Humira. Case in point: Boehringer Ingelheim won FDA approval for its biosimilar to Humira in August. Quite a few other companies also have Humira biosimilars in development.
But AbbVie's deal with Amgen shouldn't be underestimated. Full details of the agreement remain confidential, but the fact that AbbVie stock went up a lot more than Amgen stock did shows which company won the skirmish. Amgen is a huge company with the financial resources to hire the best legal minds. And its legal team decided that settling was preferable to going to court. I suspect that other drugmakers hoping to compete against Humira in the U.S. with their own biosimilars are having doubts right now about their chances of success.
How will the agreement impact international sales for Humira? AbbVie's executives always talked about fending off U.S. competition; they knew that the drug would inevitably face European challengers -- and sooner rather than later. Amgen and Samsung Bioepis already have secured approval for their Humira biosimilars in Europe, while Novartis submitted for European approval for its biosimilar product in June.
Roughly one-third of total Humira sales come from markets other than the U.S. Don't expect that revenue to dry up overnight. As a case in point, look at autoimmune-disease treatment Enbrel. Pfizer has commercialization rights to the drug outside of the U.S. and Canada. Even with multiple biosimilars to Enbrel on the market in Europe, the drug's sales in the first half of this year were less than 20% below the prior-year period.
Good deal
I think AbbVie is sitting pretty right now: It is is able to keep Amjevita off the U.S. market for more than five years. It stands to make money from all sales of Amjevita. Its intellectual property claims for Humira are bolstered.
Most important, though, AbbVie should now have time for its impressive pipeline to produce a worthy heir to Humira. Autoimmune-disease drugs upadacitinib and risankizumab could take the baton from Humira over the next few years. Rova-T could join Imbruvica as another megablockbuster in treating cancer. And these possibilities are just the tip of the iceberg.
Because the details of the AbbVie-Amgen agreement remain confidential, we don't know how much money Amgen might be receiving for what some call "pay for delay." As a result, it's hard to say if this is a great deal for AbbVie. However, I would definitely say this is a good deal for the big biotech -- and for AbbVie shareholders.
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Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One major cloud that has been hanging over AbbVie (NYSE: ABBV) is how long the company will be able to hold off biosimilar competition for its top-selling drug Humira. AbbVie's executives always talked about fending off U.S. competition; they knew that the drug would inevitably face European challengers -- and sooner rather than later. However, Amjevita hasn't reached the market yet due to AbbVie's legal challenges. | What it means for AbbVie The great news for AbbVie is that it won't have competition from Amgen's biosimilar in the U.S. until 2023 -- just as the company promised. Even better, Amgen will pay royalties to AbbVie on all global sales of Amjevita as a result of the company's acknowledgement of AbbVie's intellectual property rights for Humira. One major cloud that has been hanging over AbbVie (NYSE: ABBV) is how long the company will be able to hold off biosimilar competition for its top-selling drug Humira. | According to AbbVie, "All litigation pending between the parties will be dismissed, and Amgen has acknowledged the validity of AbbVie's intellectual property related to Humira." What it means for AbbVie The great news for AbbVie is that it won't have competition from Amgen's biosimilar in the U.S. until 2023 -- just as the company promised. Even better, Amgen will pay royalties to AbbVie on all global sales of Amjevita as a result of the company's acknowledgement of AbbVie's intellectual property rights for Humira. | However, Amjevita hasn't reached the market yet due to AbbVie's legal challenges. What it means for AbbVie The great news for AbbVie is that it won't have competition from Amgen's biosimilar in the U.S. until 2023 -- just as the company promised. Even better, Amgen will pay royalties to AbbVie on all global sales of Amjevita as a result of the company's acknowledgement of AbbVie's intellectual property rights for Humira. |
25968.0 | 2017-09-28 00:00:00 UTC | 3 High-Yield Stocks With Virtual Monopolies | ABBV | https://www.nasdaq.com/articles/3-high-yield-stocks-virtual-monopolies-2017-09-28 | nan | nan | In the United States, monopolies technically aren't supposed to exist, thanks to the Sherman Antitrust Act of 1890. However, there are a handful of U.S.-based companies that do, in fact, own a disproportionate share of their respective markets and therefore sport unusually rich free cash flows. And fortunately, some of these titans of industry have also chosen to use their strong free cash flows to reward loyal shareholders with a top-notch dividend yield.
Armed with this insight, we asked three of our Motley Fool investors which high-yield stocks with virtual monopolies in their primary markets they think are worth buying right now. They recommended AbbVie (NYSE: ABBV) , AB-InBev (NYSE: BUD) , and Enterprise Products Partners, LP (NYSE: EPD) . Read on to find out why.
A dominant pharma
George Budwell (AbbVie): In a field where monopolies are nearly non-exist, pharma giant AbbVie has managed to gobble up more than a third of the massive biologic drug market with its anti-inflammatory megablockbuster Humira. In fact, Humira remains the world's best-selling drug -- despite a number of new competitors entering the market over the past couple of years.
Because of Humira's double-digit sales growth and overwhelmingly dominant share of the anti-inflammatory market, AbbVie has been able to regularly increase its dividend since being spun off from Abbott Laboratories in 2013. As a result, the company currently offers a healthy yield of 2.93% -- which may not sound like a particularly high yield, but it is above average for a large-cap pharma stock. Pharma companies, after all, tend to plow most of their profits back into their cost-intensive R&A and M&A activities that are necessary to stay one step ahead of any would-be competitors.
AbbVie's strong top-line growth emanating from Humira's continued dominance also gives it an attractive payout ratio of 59.4% at the moment, implying that its above-average yield should be sustainable moving forward.
Having said that, Humira could face an onslaught of knock-off drugs known as biosimilars within the next two to perhaps three years now that it's off patent in the United States. AbbVie does have a plan in place to extend the drug's effective period of exclusivity a while longer, but there's no guarantee it'll go off without a hitch. So, before you buy this high-yield pharma stock, you might want to dig into the company's broader product portfolio and clinical pipeline. Humira, after all, presently makes up over 60% of the drugmaker's annual revenues.
The king of beers
Keith Noonan (AB-InBev): There are over 5,000 breweries in the U.S. alone, but one company reigns supreme over the beer space. With a deep lineup of brands that includes Budweiser, Stella Artois, Corona, and many others, AB InBev has roughly 45% market share in America and still has big growth in international markets ahead.
The company's hold on the beer market intensified when it merged with SAB Miller last year and created an unrivaled powerhouse in the global industry. Miller actually had to sell off some of its biggest brands and divest from key markets in order for the deal to pass regulatory muster , but even then, some estimates suggest that the combined company now captures roughly 46% of profits in the space and produces 27% of the world's beer by volume. AB InBev's size allow it to exercise pricing strength, benefit from economies of scale, and put pressure on distributors to shore up shelf space and box out competitors.
Turning to returned income, the beer giant boasts a chunky 3.7% yield and has delivered annual payout growth for the last seven years; however, the cost of distributing its current dividend is higher than the company's trailing-12-month earnings -- with a payout ratio of 105%. On the other hand, its dividend disbursement is still covered by the company's trailing free cash flow, and management has promised to continue increasing its payout.
With an appealing dividend component and a near-monopoly position in the beer market, AB-InBev looks like a worthwhile investment.
A top energy play
Sean O'Reilly (Enterprise Products Partners, LP): The word "monopoly" is often a dirty one these days, and it has been for some time. The Federal Government actively seeks to squash any company deemed monopolistic and anticompetitive via the Sherman Antitrust Act, passed over 100 years ago in 1890. But despite its negative connotation, there are a few monopolies still in existence today. Not only that, but they are legal ones and bring with them monopolistic profits. Which brings me to my pick for this roundtable, none other than one of the largest energy infrastructure MLP in the country: Enterprise Products Partners, LP.
Despite its size, Enterprise Products Partners is planning to expand its empire even further in the coming years. It has a 571-mile long Natural Gas Liquid (NGL) pipeline currently under construction that will connect the Permian Basin with Mt. Belvieu, Texas -- part of the enormous Port of Houston. It also continues to expand into the transportation of petroleum products other than oil and gasoline, with plans to construct facilities servicing the producers of ethylene and isobutane in the works as well. Its monopolistic status stems from its ownership of 50,000 miles of pipelines and enormous petroleum-products storage facilities. Often, oil producers have no choice but to pay Enterprise Products a toll every time they wish to move their products.
In a world that seeks to quash monopolies, Enterprise Products is a fantastic, legal monopoly sporting a 6.8% dividend as icing on the cake.
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George Budwell has no position in any of the stocks mentioned. Keith Noonan has no position in any of the stocks mentioned. Sean O'Reilly has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's strong top-line growth emanating from Humira's continued dominance also gives it an attractive payout ratio of 59.4% at the moment, implying that its above-average yield should be sustainable moving forward. They recommended AbbVie (NYSE: ABBV) , AB-InBev (NYSE: BUD) , and Enterprise Products Partners, LP (NYSE: EPD) . A dominant pharma George Budwell (AbbVie): In a field where monopolies are nearly non-exist, pharma giant AbbVie has managed to gobble up more than a third of the massive biologic drug market with its anti-inflammatory megablockbuster Humira. | They recommended AbbVie (NYSE: ABBV) , AB-InBev (NYSE: BUD) , and Enterprise Products Partners, LP (NYSE: EPD) . A dominant pharma George Budwell (AbbVie): In a field where monopolies are nearly non-exist, pharma giant AbbVie has managed to gobble up more than a third of the massive biologic drug market with its anti-inflammatory megablockbuster Humira. Because of Humira's double-digit sales growth and overwhelmingly dominant share of the anti-inflammatory market, AbbVie has been able to regularly increase its dividend since being spun off from Abbott Laboratories in 2013. | A dominant pharma George Budwell (AbbVie): In a field where monopolies are nearly non-exist, pharma giant AbbVie has managed to gobble up more than a third of the massive biologic drug market with its anti-inflammatory megablockbuster Humira. They recommended AbbVie (NYSE: ABBV) , AB-InBev (NYSE: BUD) , and Enterprise Products Partners, LP (NYSE: EPD) . Because of Humira's double-digit sales growth and overwhelmingly dominant share of the anti-inflammatory market, AbbVie has been able to regularly increase its dividend since being spun off from Abbott Laboratories in 2013. | They recommended AbbVie (NYSE: ABBV) , AB-InBev (NYSE: BUD) , and Enterprise Products Partners, LP (NYSE: EPD) . A dominant pharma George Budwell (AbbVie): In a field where monopolies are nearly non-exist, pharma giant AbbVie has managed to gobble up more than a third of the massive biologic drug market with its anti-inflammatory megablockbuster Humira. Because of Humira's double-digit sales growth and overwhelmingly dominant share of the anti-inflammatory market, AbbVie has been able to regularly increase its dividend since being spun off from Abbott Laboratories in 2013. |
25969.0 | 2017-09-28 00:00:00 UTC | XLF, RNDV: Big ETF Inflows | ABBV | https://www.nasdaq.com/articles/xlf-rndv-big-etf-inflows-2017-09-28 | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Financial Select Sector SPDR Fund ( XLF ), which added 31,650,000 units, or a 3.1% increase week over week. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway Class B (BRK.B) is down about 0.4%, and JP Morgan Chase & Company ( JPM ) is relatively unchanged.
And on a percentage change basis, the ETF with the biggest increase in inflows was the US Equity Dividend Select ETF ( RNDV ), which added 50,000 units, for a 33.3% increase in outstanding units. Among the largest underlying components of RNDV, in morning trading today Seagate Tech Ireland ( STX ) is down about 1.9%, and Abbvie ( ABBV ) is higher by about 6.2%.
VIDEO: XLF, RNDV: Big ETF 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 RNDV, in morning trading today Seagate Tech Ireland ( STX ) is down about 1.9%, and Abbvie ( ABBV ) is higher by about 6.2%. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway Class B (BRK.B) is down about 0.4%, and JP Morgan Chase & Company ( JPM ) is relatively unchanged. And on a percentage change basis, the ETF with the biggest increase in inflows was the US Equity Dividend Select ETF ( RNDV ), which added 50,000 units, for a 33.3% increase in outstanding units. | Among the largest underlying components of RNDV, in morning trading today Seagate Tech Ireland ( STX ) is down about 1.9%, and Abbvie ( ABBV ) is higher by about 6.2%. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway Class B (BRK.B) is down about 0.4%, and JP Morgan Chase & Company ( JPM ) is relatively unchanged. VIDEO: XLF, RNDV: Big ETF 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 RNDV, in morning trading today Seagate Tech Ireland ( STX ) is down about 1.9%, and Abbvie ( ABBV ) is higher by about 6.2%. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Financial Select Sector SPDR Fund ( XLF ), which added 31,650,000 units, or a 3.1% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the US Equity Dividend Select ETF ( RNDV ), which added 50,000 units, for a 33.3% increase in outstanding units. | Among the largest underlying components of RNDV, in morning trading today Seagate Tech Ireland ( STX ) is down about 1.9%, and Abbvie ( ABBV ) is higher by about 6.2%. Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Financial Select Sector SPDR Fund ( XLF ), which added 31,650,000 units, or a 3.1% increase week over week. Among the largest underlying components of XLF, in morning trading today Berkshire Hathaway Class B (BRK.B) is down about 0.4%, and JP Morgan Chase & Company ( JPM ) is relatively unchanged. |
25970.0 | 2017-09-28 00:00:00 UTC | Gilead (GILD) Gets Approval for HCV Drug Sovaldi in China | ABBV | https://www.nasdaq.com/articles/gilead-gild-gets-approval-for-hcv-drug-sovaldi-in-china-2017-09-28 | nan | nan | Gilead Sciences, Inc . GILD announced that its blockbuster hepatitis C virus (HCV) infection drug, Sovaldi has now been approved by the China Food and Drug Administration (CFDA) also. The drug was approved for the treatment of adults and adolescents (aged 12-18 years) infected with HCV genotype 1, 2, 3, 4, 5 or 6 as a component of a combination antiviral treatment regimen. We note that Sovaldi is the first Gilead HCV drug approved in China.
We note that HCV is the fourth-most commonly reported infectious disease in China, with approximately 10 million patients. Hence, the approval in the country holds promise for growth.
We note that Sovaldi was approved in the United States in 2013 and in Europe in 2014. The drug is currently approved in 79 countries.
In addition, Gilead is evaluating its HCV single-tablet regimens Harvoni and Epclusa at clinical trials sites across China.
Gilead is known for its presence in the HCV market, thanks to its blockbuster HCV drugs, Sovaldi and Harvoni. The HCV portfolio received a huge a boost with the approval of Epclusa in both the United States (June 2016) and the EU (July 2016) and became the first and only all-oral, pan-genotypic, STR consisting of Sovaldi and velpatasvir (an NS5A inhibitor), for the treatment of adults with genotype 1-6 chronic HCV infection. The FDA approval of Vosevi (Sovaldi, velpatasvir 100 mg/voxilaprevir 100 mg) tablets also boosted the company's portfolio. The drug is a single-tablet regimen (STR) for the re-treatment of chronic hepatitis C virus infection in adults with genotype 1, 2, 3, 4, 5 or 6, previously treated with an NS5A inhibitor-containing regimen, or with genotype 1a or 3 previously treated with a Sovaldi-containing regimen without an NS5A inhibitor.
However, the HCV franchise is under pressure due to competition and pricing issues. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. Competition as well as pricing pressure intensified further with the launch of Merck & Co., Inc.'s MRK Zepatier.
Gilead recently announced plans to acquire Kite Pharma, Inc. KITE to foray in the emerging field of cell therapy. Kite is a pioneer in cell therapy having developed engineered cell therapies that express either a chimeric antigen receptor (CAR) or an engineered T-cell receptor (TCR), depending on the type of cancer. The acquisition will diversify Gilead's portfolio and poise the company in a dominant position in cellular therapy space. We note that investors were expecting Gilead to announce an acquisition in the near term given the decline in the once lucrative HCV market due to competitive pressure.
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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 Inc. ABBV Viekira Pak and Viekira XR among others. 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Gilead is evaluating its HCV single-tablet regimens Harvoni and Epclusa at clinical trials sites across China. | 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. GILD announced that its blockbuster hepatitis C virus (HCV) infection drug, Sovaldi has now been approved by the China Food and Drug Administration (CFDA) also. | 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. We note that Sovaldi is the first Gilead HCV drug approved in China. | 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. We note that Sovaldi is the first Gilead HCV drug approved in China. |
25971.0 | 2017-09-28 00:00:00 UTC | Why BlackBerry, AbbVie, and bluebird bio Jumped Today | ABBV | https://www.nasdaq.com/articles/why-blackberry-abbvie-and-bluebird-bio-jumped-today-2017-09-28 | nan | nan | Thursday was a quiet day on Wall Street, with major benchmarks remaining close to the unchanged level. Sentiment among market participants remained relatively favorable in the aftermath of the release of the Trump administration's tax reform proposal , although a closer look at the broad framework for tax changes drew mixed responses from policymakers and lawmakers. Signs of strong economic activity helped rally certain parts of the market, and several individual stocks posted solid gains. BlackBerry (NASDAQ: BBRY) , AbbVie (NYSE: ABBV) , and bluebird bio (NASDAQ: BLUE) 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.
BlackBerry enjoys solid earnings
Shares of BlackBerry jumped more than 13% after the release of the company's fiscal second-quarter financial report. The smartphone pioneer said that it set a record for sales of software and services offerings, which shows the commitment that BlackBerry has had to move its business away from lower-margin device sales toward the better profitability that non-hardware segments offer. The company has seen early success with initiatives to capture a greater portion of the automotive market, and its enterprise business is also thriving. Best of all, BlackBerry managed to bring in a surprise profit, and the company hopes to keep that momentum going forward throughout the fiscal year.
AbbVie settles patent dispute
AbbVie stock gained 5% in the wake of the pharmaceutical giant's resolution of a patent dispute with rival Amgen (NASDAQ: AMGN) in connection with AbbVie's blockbuster drug Humira. AbbVie said that under its agreement with Amgen, a non-exclusive license will give Amgen the right to use Humira-related intellectual property in the U.S. through January 2023. In exchange, Amgen agreed to acknowledge the validity of AbbVie's intellectual property rights in Humira. The resolution takes away considerable uncertainty surrounding Amgen's proposed biosimilar product, which could have jeopardized Humira's revenue going forward. AbbVie has worked hard to protect Humira , and today's agreement further cements the company's hold on the key treatment.
Bluebird Bio gets a good review
Finally, shares of Bluebird Bio climbed 10%. The biotech company got positive comments from analysts at Leerink, who reiterated an outperform rating on the stock. The analysts were optimistic about the prospects for multiple myeloma candidate treatment bb2121 , on which Bluebird is working with partner Celgene (NASDAQ: CELG) toward getting the blood cancer drug approved over the next few years. At the same time, other treatments like its anemia-fighting LentiGlobin could also produce opportunities for Bluebird going forward, justifying higher share prices in the future.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bluebird Bio and Celgene. 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. | BlackBerry (NASDAQ: BBRY) , AbbVie (NYSE: ABBV) , and bluebird bio (NASDAQ: BLUE) were among the best performers on the day. AbbVie settles patent dispute AbbVie stock gained 5% in the wake of the pharmaceutical giant's resolution of a patent dispute with rival Amgen (NASDAQ: AMGN) in connection with AbbVie's blockbuster drug Humira. AbbVie said that under its agreement with Amgen, a non-exclusive license will give Amgen the right to use Humira-related intellectual property in the U.S. through January 2023. | AbbVie settles patent dispute AbbVie stock gained 5% in the wake of the pharmaceutical giant's resolution of a patent dispute with rival Amgen (NASDAQ: AMGN) in connection with AbbVie's blockbuster drug Humira. BlackBerry (NASDAQ: BBRY) , AbbVie (NYSE: ABBV) , and bluebird bio (NASDAQ: BLUE) were among the best performers on the day. AbbVie said that under its agreement with Amgen, a non-exclusive license will give Amgen the right to use Humira-related intellectual property in the U.S. through January 2023. | BlackBerry (NASDAQ: BBRY) , AbbVie (NYSE: ABBV) , and bluebird bio (NASDAQ: BLUE) were among the best performers on the day. AbbVie settles patent dispute AbbVie stock gained 5% in the wake of the pharmaceutical giant's resolution of a patent dispute with rival Amgen (NASDAQ: AMGN) in connection with AbbVie's blockbuster drug Humira. AbbVie said that under its agreement with Amgen, a non-exclusive license will give Amgen the right to use Humira-related intellectual property in the U.S. through January 2023. | AbbVie settles patent dispute AbbVie stock gained 5% in the wake of the pharmaceutical giant's resolution of a patent dispute with rival Amgen (NASDAQ: AMGN) in connection with AbbVie's blockbuster drug Humira. BlackBerry (NASDAQ: BBRY) , AbbVie (NYSE: ABBV) , and bluebird bio (NASDAQ: BLUE) were among the best performers on the day. AbbVie said that under its agreement with Amgen, a non-exclusive license will give Amgen the right to use Humira-related intellectual property in the U.S. through January 2023. |
25972.0 | 2017-09-28 00:00:00 UTC | Noteworthy Thursday Option Activity: VLO, ABBV, ABT | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-vlo-abbv-abt-2017-09-28 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Valero Energy Corp (Symbol: VLO), where a total of 28,586 contracts have traded so far, representing approximately 2.9 million underlying shares. That amounts to about 73.3% of VLO's average daily trading volume over the past month of 3.9 million shares. Particularly high volume was seen for the $80 strike call option expiring October 13, 2017 , with 7,394 contracts trading so far today, representing approximately 739,400 underlying shares of VLO. Below is a chart showing VLO's trailing twelve month trading history, with the $80 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 44,520 contracts thus far today. That number of contracts represents approximately 4.5 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 9.0 million shares. Especially high volume was seen for the $91 strike call option expiring October 20, 2017 , with 5,870 contracts trading so far today, representing approximately 587,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $91 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) saw options trading volume of 22,723 contracts, representing approximately 2.3 million underlying shares or approximately 41.1% of ABT's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $55 strike call option expiring October 13, 2017 , with 2,915 contracts trading so far today, representing approximately 291,500 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for VLO options , ABBV options , or ABT options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $91 strike call option expiring October 20, 2017 , with 5,870 contracts trading so far today, representing approximately 587,000 underlying shares of ABBV. Below is a chart showing VLO's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 44,520 contracts thus far today. That number of contracts represents approximately 4.5 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 9.0 million shares. | Below is a chart showing VLO's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 44,520 contracts thus far today. Below is a chart showing ABBV's trailing twelve month trading history, with the $91 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 22,723 contracts, representing approximately 2.3 million underlying shares or approximately 41.1% of ABT's average daily trading volume over the past month, of 5.5 million shares. That number of contracts represents approximately 4.5 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 9.0 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $91 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 22,723 contracts, representing approximately 2.3 million underlying shares or approximately 41.1% of ABT's average daily trading volume over the past month, of 5.5 million shares. Below is a chart showing VLO's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 44,520 contracts thus far today. That number of contracts represents approximately 4.5 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 9.0 million shares. | Especially high volume was seen for the $91 strike call option expiring October 20, 2017 , with 5,870 contracts trading so far today, representing approximately 587,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $91 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 22,723 contracts, representing approximately 2.3 million underlying shares or approximately 41.1% of ABT's average daily trading volume over the past month, of 5.5 million shares. Below is a chart showing VLO's trailing twelve month trading history, with the $80 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 44,520 contracts thus far today. |
25973.0 | 2017-09-28 00:00:00 UTC | Why Amgen's Drug Win Sent AbbVie Stock Into The Stratosphere | ABBV | https://www.nasdaq.com/articles/why-amgens-drug-win-sent-abbvie-stock-stratosphere-2017-09-28 | nan | nan | AbbVie ( ABBV ) launched to a record high Thursday after it settled a patent dispute with Amgen ( AMGN ) that will require the No. 1 biotech to pay AbbVie royalties on sales of its Humira copycat.
[ibd-display-video id=2322998 width=50 float=left autostart=true]By the closing bell on the stock market today , AbbVie popped 5%, near 88.96, though in earlier trades shares were up as much as 7.3% to a record high of 90.95. Amgen stock lifted fractionally to close at 185.46.
Per the settlement, Amgen's drug known as Amgevita will launch in Europe in October 2018. Its U.S. version, Amjevita, will launch in January 2023. The drug is a biosimilar of AbbVie's drug Humira, an anti-inflammatory med. A biosimilar is a biologic copy of a drug.
Amgen will pay royalties to AbbVie, though the specific terms are confidential, AbbVie said in a news release. All litigation pending between the two will be dismissed. AbbVie will grant patent licenses to Amgen on a country-by-country basis.
Humira is AbbVie's most important drug, bringing in 69% of total sales in the second quarter ended June 30. Ten other drug firms are working on Humira biosimilars, including Biogen ( BIIB ), Novartis ( NVS ), Dow's Pfizer ( PFE ) and Mylan (MYL), Evercore analyst Umer Raffat said in a note to clients.
IBD'S TAKE:AbbVie and Galapagos are also working together on cystic fibrosis drugs. But Vertex Pharmaceuticals says it has a strong lead and analysts don't disagree. Head to The New America for a breakdown on the market and why Vertex is leading the pack.
The consensus is calling for Amgen's Humira biosimilar, the first approved, to bring in $748 million in worldwide sales in 2025, up from just $50 million in 2018 when it's set to launch in Europe. Still, there are patents remaining that AbbVie could use to extend litigation, Raffat said.
But RBC analyst Kennen MacKay boosted his views for success for Amgevita/Amjevita to 95% from 65%. He expects Amgen's drug to penetrate at its peak 30% and 50% of the Humira biosimilar markets in the U.S. and Europe, respectively.
MacKay models peak global sales of Amgevita/Amjevita hitting $928 million in 2032. On a sales share basis, he expects Amgen to have 20% of the Humira biosimilar market, depending on royalty rates. He kept a sector perform rating and 192 price target on Amgen.
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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 ) launched to a record high Thursday after it settled a patent dispute with Amgen ( AMGN ) that will require the No. [ibd-display-video id=2322998 width=50 float=left autostart=true]By the closing bell on the stock market today , AbbVie popped 5%, near 88.96, though in earlier trades shares were up as much as 7.3% to a record high of 90.95. 1 biotech to pay AbbVie royalties on sales of its Humira copycat. | These Companies Gain If Trump's Foreign Profit Relief Plan Passes Why Amgen, Lilly, J&J Are Interested In These Small Biotechs AbbVie's New Hepatitis C Drug Chipping Away At Gilead's Share 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 ) launched to a record high Thursday after it settled a patent dispute with Amgen ( AMGN ) that will require the No. 1 biotech to pay AbbVie royalties on sales of its Humira copycat. | The drug is a biosimilar of AbbVie's drug Humira, an anti-inflammatory med. These Companies Gain If Trump's Foreign Profit Relief Plan Passes Why Amgen, Lilly, J&J Are Interested In These Small Biotechs AbbVie's New Hepatitis C Drug Chipping Away At Gilead's Share 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 ) launched to a record high Thursday after it settled a patent dispute with Amgen ( AMGN ) that will require the No. | The drug is a biosimilar of AbbVie's drug Humira, an anti-inflammatory med. AbbVie ( ABBV ) launched to a record high Thursday after it settled a patent dispute with Amgen ( AMGN ) that will require the No. 1 biotech to pay AbbVie royalties on sales of its Humira copycat. |
25974.0 | 2017-09-26 00:00:00 UTC | Biotech Stock Roundup: Amgen Reiterates 2017 Outlook, Intercept Hit by Ocaliva Safety Issues | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-amgen-reiterates-2017-outlook-intercept-hit-ocaliva-safety-issues | nan | nan | Biotech stocks like Amgen AMGN and Intercept Pharmaceuticals ICPT were in the news with Amgen providing an update on the impact of Hurricane Maria while Intercept continues to be impacted by Ocaliva safety concerns.
Recap of the Week's Most Important Stories
Amgen Maintains 2017 Outlook: Amgen, which provided an update on the impact of Hurricane Maria's impact on the company's manufacturing facilities in Puerto Rico, maintained its outlook for 2017. The company said that no product or in-process inventory was lost and the company has enough stock to meet patient demand. At the time of releasing second quarter results, Amgen had guided toward earnings of $12.15-$12.65 per share on total revenues of $22.5-$23.0 billion.
Ocaliva Safety Issues Continue to Hit Intercept: Intercept continues to be impacted by the safety issues surrounding its sole marketed product, Ocaliva. The company's shares, which were initially hit by a "Dear Doctor" letter earlier this month, saw its shares fall almost 25% on a drug safety communication issued by the FDA last week. Both communications laid emphasis on the importance of the use of the recommended dosage on the label as liver injury, liver decompensation, liver failure, and death were reported when Ocaliva was dosed more frequently than recommended. Ocaliva is approved for use in primary biliary cholangitis ("PBC") patients. The company is working with the FDA to ensure the appropriate and safe use of Ocaliva. Ocaliva, approved in May 2016, brought in sales of $30.4 million in the second quarter of 2017.
Intercept's shares are down 43.6% year to date, compared to the industry's 15.6% rally.
Infinity-Bristol-Myers Clinical Trial Collaboration Expanded: Infinity Pharmaceuticals's INFI existing clinical collaboration with Bristol-Myers Squibb for IPI-549 (a PI3K-gamma inhibitor) plus Opdivo (a PD-1 immune checkpoint inhibitor) has been expanded to include patients with triple negative breast cancer ("TNBC") who have not been previously exposed to anti-PD-1 or anti-PD-L1 therapy. IPI-549 is currently in a phase I/Ib study in patients with advanced solid tumors.
AbbVie-Bristol-Myers in Clinical Trial Collaboration: AbbVie ABBV is collaborating with Bristol-Myers Squibb for evaluating a combination of AbbVie's investigational antibody drug conjugate ABBV-399 and Bristol-Myers's immunotherapy Opdivo in c-met overexpressing non-small cell lung cancer (NSCLC). A phase Ib study is ongoing. With cancer remaining a challenging medical condition, several companies are entering into clinical trial collaborations to evaluate different combinations to address the disease.
AbbVie is a Zacks Rank #3 (Hold) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The Nasdaq Biotechnology Index gained 0.4% over the last four trading sessions. Among major biotech stocks, Gilead GILD was up 1.6% while Vertex lost 2.6%. Over the last six months, Vertex VRTX was up 65.7% (See the last biotech stock roundup here: FDA Nod for First Cancer Biosimilar, HALO up on Deals, Raised Outlook ).
What's Next in the Biotech World?
Watch out for the usual regulatory and pipeline 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie-Bristol-Myers in Clinical Trial Collaboration: AbbVie ABBV is collaborating with Bristol-Myers Squibb for evaluating a combination of AbbVie's investigational antibody drug conjugate ABBV-399 and Bristol-Myers's immunotherapy Opdivo in c-met overexpressing non-small cell lung cancer (NSCLC). AbbVie is a Zacks Rank #3 (Hold) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Intercept Pharmaceuticals, Inc. (ICPT): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): 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 Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Intercept Pharmaceuticals, Inc. (ICPT): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie-Bristol-Myers in Clinical Trial Collaboration: AbbVie ABBV is collaborating with Bristol-Myers Squibb for evaluating a combination of AbbVie's investigational antibody drug conjugate ABBV-399 and Bristol-Myers's immunotherapy Opdivo in c-met overexpressing non-small cell lung cancer (NSCLC). AbbVie is a Zacks Rank #3 (Hold) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Intercept Pharmaceuticals, Inc. (ICPT): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie-Bristol-Myers in Clinical Trial Collaboration: AbbVie ABBV is collaborating with Bristol-Myers Squibb for evaluating a combination of AbbVie's investigational antibody drug conjugate ABBV-399 and Bristol-Myers's immunotherapy Opdivo in c-met overexpressing non-small cell lung cancer (NSCLC). AbbVie is a Zacks Rank #3 (Hold) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . | AbbVie-Bristol-Myers in Clinical Trial Collaboration: AbbVie ABBV is collaborating with Bristol-Myers Squibb for evaluating a combination of AbbVie's investigational antibody drug conjugate ABBV-399 and Bristol-Myers's immunotherapy Opdivo in c-met overexpressing non-small cell lung cancer (NSCLC). AbbVie is a Zacks Rank #3 (Hold) stock - you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Intercept Pharmaceuticals, Inc. (ICPT): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. |
25975.0 | 2017-09-26 00:00:00 UTC | Analysts Take Action on Health Care Stocks | ABBV | https://www.nasdaq.com/articles/analysts-take-action-health-care-stocks-2017-09-26 | nan | nan | Recently analysts have released their new ratings on health care stocks.
The first health care stock on this list is Dynavax ( DVAX ), a Berkeley, California-based clinical-stage biopharmaceutical company that is developing a pipeline of various candidates to prevent infectious diseases, to treat inflammatory and autoimmune disease and as a treatment for cancer.
RBC Capital Markets has confirmed its Outperform rating on Dynavax and set its new target price at $28 per share. This represents a 33% upside from the current share price of $21.05.
Dynavax has a current market capitalization of $1.27 billion, a price-book (P/B) ratio of 8.09, a price-sales (P/S) ratio of 104.25 and a price-earnings (P/E) ratio of -8.69. The forward P/E ratio is negative and set at -13.67.
For full fiscal year 2017 and 2018, analysts forecast a loss of $1.6 per share and a loss of $1.54 per share.
GuruFocus gives Dynavax a financial strength rating of 9 out of 10. Concerning its profitability and growth prospects, GuruFocus assigns this health care stock a rating of 2 out of 10.
The second health care stock is ChromaDex ( CDXC ). Ladenburg Thalmann started to cover shares of ChromaDex and recommended buying this health care stock.
For ChromaDex, Ladenburg Thalmann has set a target price of $7 per share, which represents a hefty 62% upside from the current market valuation of $4.32 per share.
As reported by the StreetInsider.com, Jeffrey Cohen, analyst at Ladenburg Thalmann, sees potential in the company's NexGen B3 Form (NR) as a product that will help people live healthier.
NR or nicotinamide riboside is sold under the company's brand name NIAGEN. It belongs to the vitamin B3 complex that is involved in the process of converting the nutrients that we get from our daily diet into the energy we need.
The company closed the last four fiscal years with a loss. For this fiscal, analysts forecast the company will report another loss of 14 cents, which is a worsening from the previous full fiscal year's loss of 3 cents. For the period from fiscal 2018 to fiscal 2019, analysts foresee a 235.70% growth in ChromaDex's earnings that will lead to an EPS of 19 cents.
ChromaDex is trading at $4.31 with a market capitalization of $207.14 million, a P/B ratio of 7.20, a P/S ratio of 7.64 and with a P/E ratio of -21.23. The forward P/E ratio is 25.00.
GuruFocus assigns ChromaDex a profitability and growth rating of 5 out of a total of 10 and a financial strength rating of 8 out of 10.
The third health care stock on this list is Synergy Pharmaceuticals ( SGYP ), a U.S. biopharmaceutical company that is engaged in the development and commercialization of innovative therapies for the treatment of diseases and disorders that affect the gastrointestinal tract. H.C. Wainwright kept its buy rating on shares of Synergy Pharmaceuticals, but the firm decreased its target price by 46.7% from $15 per share to $8 per share.
As one of the reasons for having lowered the target price on Synergy Pharmaceuticals, StreetInsider.com reports "a slowdown on the Trulance ramp." Trulance is a drug used for the chronic idiopathic constipation treatment in adults who are suffering from this metabolic disease.
The new target price set by H.C. Wainwright represents a 206.5% increase from the current share price of $2.61. Synergy Pharmaceuticals has a market capitalization of $587.13 million, a P/B ratio of 13.27, a P/S ratio of 256.06 and a P/E ratio of -2.22. For full fiscal 2017, analysts forecast that the company will close the reporting period with a loss of $1.14 per share while for the following fiscal year they estimate a loss of 66 cents.
GuruFocus gives Synergy Pharmaceuticals a profitability and growth rating of 4 out of 10 and a financial strength rating of 4 out of 10.
H.C. Wainwright has also provided the market with an update of its rating and target price on shares of Cellect Biotechnology ( APOP ). In "anticipating favorable proof-of-concept final clinical data for ApoGraft in graft-versus-host disease (GvHD) prophylaxis in the coming months," reports StreetInsider.com, Raghuram Selvaraju - analyst at H.C. Wainwright - has increased its target price by 16.7% from $12 per share to $14 per share while confirming a buy rating on Cellect Biotechnology.
Cellect Biotechnology is an Israeli biotechnology company that is engaged in regenerative medicine. The company is committed to the development of technologies for stem cells' functional selection and for stem cell therapies.
ApoGraft's stem cell technology is designed for transplant-associated disease prevention.
The new target price of $14 per share - as set by analysts at H.C. Wainwright - represents a nearly 67.5% increase from the current share price of $8.36. Cellect Biotechnology has a market capitalization of $51.84 million, a P/B ratio of 12.52 and a P/E ratio of -6.33.
GuruFocus gives Cellect Biotechnology a financial strength rating of 6 out of 10 and a profitability and growth rating of 3 out of 10.
STAAR Surgical Co. (STAA) - the fifth health care stock of this list - was upgraded, reports StreetInsider, to Buy by Canaccord Genuity from a previous rating of Hold.
STAAR Surgical is a U.S. eye implantable lenses designer, developer, manufacturer and seller. The company also delivers systems to implant lenses into the patient's eye.
For the treatment of visual disorders such as myopia, hyperopia, astigmatism and presbyopia, the company also provides eye patients with Visian implantable collamer lenses (ICLs).
For 2018 and ahead, Jason Mills - analyst at Canaccord Genuity - sees a brighter outlook for STAAR Surgical made of "growth and margin acceleration" in the company's business, reports Street Insider.com. The analyst has set a new target price per share for STAAR Surgical of $15, which is a 36.4% increase from the previous price target of $11 per share and a 26% upside from the current share price of $11.9 for a market capitalization of $488.19 million. The company has a P/B ratio of 12.85, a P/S ratio of 5.77 and a P/E ratio of -94.44.
GuruFocus assigns STAAR Surgical a financial strength rating of 7 out of 10 and a profitability and growth rating of 5 out of 10.
The sixth health care stock on this list is AbbVie ( ABBV ). The U.S. global health care company that was originated in 2013 as a spinoff of Abbott Laboratories (ABT) was downgraded to Neutral by UBS from a previous rating of Buy.
UBS increased by 16.5% its target price on AbbVie from $79 per share to $92 per share. This target price per share represents a 6.3% upside from the current share price of $86.57, which, considering a total volume of 1.59 billion shares outstanding, leads to a market capitalization of $138 billion.
The target price of $92 per share, as set by UBS, will move the average target higher; it is currently at $81.71 per share as a mean of 17 estimates of analysts who were surveyed on the Humira producer and seller.
AbbVie has a P/B ratio of 22.93, a P/E ratio of 21.27, a P/S of 5.24 and an EV-EBITDA ratio of 15.30.
For AbbVie, the forward P/E ratio is currently 13.19 that multiplied by an EPS of $5.52 - as forecasted by analysts for full-fiscal 2017 - yields a value of $72.80. The EPS for full-fiscal 2018 is forecasted at $6.49.
The health care company distributes an annual dividend of $2.56 - through quarterly payments of 64 cents - to its shareholders for a dividend yield of 2.96%, which is higher than the current Standard & Poor's 500 dividend yield of 1.89%.
GuruFocus gives AbbVie a financial strength rating of 5 out of a total of 10 and a profitability and growth rating of 7 out of 10.
The last stock on this list is Quest Diagnostics (DGX).The U.S. global diagnostic testing information and services provider was downgraded to Market Perform by Raymond James from a previous rating of Outperform.
Quest Diagnostics is trading at $94.57 per share with a market capitalization of $12.9 billion, a P/B ratio of 2.74, a P/E ratio of 19.07, a P/S ratio of 1.75 and an EV-EBITDA ratio of 10.78.
The forward P/E ratio is 17.04 while the estimates on the company's earnings for full fiscal 2017 and 2018 target $5.69 per share and $5.96 per share.
Quest Diagnostics currently distributes an annual dividend of $1.80 - through quarterly payments of 45 cents - to its shareholders for a dividend yield of 1.77%. This latter is lower than the current S&P 500 dividend yield.
The average target price is $112.36 per share, and the recommendation rating is 2.7 out of 5.
GuruFocus gives Quest Diagnostics a financial strength rating of 5 out of a total of 10 and a profitability and growth rating of 8 out of 10.
Disclosure: I have no positions in any stock mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The sixth health care stock on this list is AbbVie ( ABBV ). UBS increased by 16.5% its target price on AbbVie from $79 per share to $92 per share. AbbVie has a P/B ratio of 22.93, a P/E ratio of 21.27, a P/S of 5.24 and an EV-EBITDA ratio of 15.30. | The sixth health care stock on this list is AbbVie ( ABBV ). UBS increased by 16.5% its target price on AbbVie from $79 per share to $92 per share. AbbVie has a P/B ratio of 22.93, a P/E ratio of 21.27, a P/S of 5.24 and an EV-EBITDA ratio of 15.30. | The sixth health care stock on this list is AbbVie ( ABBV ). UBS increased by 16.5% its target price on AbbVie from $79 per share to $92 per share. AbbVie has a P/B ratio of 22.93, a P/E ratio of 21.27, a P/S of 5.24 and an EV-EBITDA ratio of 15.30. | For AbbVie, the forward P/E ratio is currently 13.19 that multiplied by an EPS of $5.52 - as forecasted by analysts for full-fiscal 2017 - yields a value of $72.80. The sixth health care stock on this list is AbbVie ( ABBV ). UBS increased by 16.5% its target price on AbbVie from $79 per share to $92 per share. |
25976.0 | 2017-09-26 00:00:00 UTC | ABBV Dividend Yield Pushes Past 3% | ABBV | https://www.nasdaq.com/articles/abbv-dividend-yield-pushes-past-3-2017-09-26 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , in trading on Tuesday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.56), with the stock changing hands as low as $85.16 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 3% 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 3% annual yield.
According to the ETF Finder at ETF Channel, ABBV makes up 9.80% of the First Trust US Equity Opportunities ETF (Symbol: FPX) which is trading lower by about 0.3% on the day Tuesday.
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 Tuesday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.56), with the stock changing hands as low as $85.16 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 3% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Tuesday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.56), with the stock changing hands as low as $85.16 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 3% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Tuesday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.56), with the stock changing hands as low as $85.16 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 3% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Tuesday, shares of AbbVie Inc (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.56), with the stock changing hands as low as $85.16 on the day. According to the ETF Finder at ETF Channel, ABBV makes up 9.80% of the First Trust US Equity Opportunities ETF (Symbol: FPX) which is trading lower by about 0.3% on the day Tuesday. 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. |
25977.0 | 2017-09-26 00:00:00 UTC | The Creative Ways Drugmakers Are Delaying Generics | ABBV | https://www.nasdaq.com/articles/creative-ways-drugmakers-are-delaying-generics-2017-09-26 | nan | nan | Drugmakers are increasingly embracing new tactics to protect billions of dollars in sales from generic competition. These strategies often involve patent trials, but that's not the only way companies are waylaying generic drugmakers.
In this clip from The Motley Fool's Industry Focus: Healthcare podcast, analyst Kristine Harjes and contributor Todd Campbell explain why companies like AbbVie (NYSE: ABBV) are working so hard to delay generic competition, how legal battles can add years of sales to drugs facing patent expiration, and how reformulating existing drugs to last longer helps keep sales flowing at companies like Teva Pharmaceutical (NYSE: TEVA) .
A full transcript follows the video.
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Todd Campbell: There's so much information now. Thanks to technology, we can now record and analyze all the data from the trials that have been going on since 2000. And the more data points you get within your data series, the more useful the information or the output is in doing that analysis. So, these companies are getting smarter and smarter and smarter about figuring out, will this drug work in a broad patient population? If so, I'll go ahead with a full phase 3. Or, will it work in a limited patient population, so I'll do an exploratory phase 2b trial that I can still reference back to when I do my filing, and that may save me some money in having to do two phase 3 trials, depending on what the FDA wants to see. So, I think from an investment standpoint, although having more trials sounds like, "This is going to increase total costs," the amount of money that you save by not running a trial that's going to be likely to fail more than offsets that. So, I think investors should review that as a good thing. And then, of course, keep it all in perspective because, even if you succeed in a phase 1/2 trial or a phase 2b trial, yes it may improve the odds, but you still have failure rates that are so high across clinical trials that you need to still have a healthy dose of skepticism when approaching any clinical stage company.
Harjes: Yeah, absolutely. Brian's email also had a question for us about the creative ways in which drugmakers can extend their drugs' patent lives. Todd, do you want to hit on that a little bit?
Campbell: I think many people probably already know that if you have a patent, it's going to protect you for about 20 years. The problem is, with drug development, is that you're filing that patent as you're doing the clinical-stage work, and that clinical-stage work can take years and years off of your patent period. So, you end up with a commercial drug that only has patent protection for maybe seven to 10 years. And, obviously, that's not nearly as good as 20 years, especially when you consider that at the end of the patent life, you're going to face competition from generic drugs that are going to be priced as much as 80% or 90% less than the price that you were charging for your reference drug. So, I think more and more, companies are looking and trying to find ways to be able to get additional years added on to their patent protection for their drugs. Again, Kristine, to hammer this point home, if you have a $1 billion blockbuster drug, it has paid for itself probably within the first few years. And now it's all pure profit that you're using to fund your other R&D activity. So, every year, every six months, every one month that you extend your protection, that's big money to your bottom line.
Harjes: To give a specific example of the numbers that we're looking at here, I actually pulled these numbers when I was looking at research for the last question that we just answered, but it's applicable here, so I'm going to share it. For a blockbuster drug, meaning $1 billion in revenue, when you break that down into a calendar year, each day is $2.7 million. I think sometimes it's hard to wrap your brain around just how big $1 billion is. But, if you do the math, that's still well over $1 million. $2.7 million every single day. So, even being able to extend your patent protection by a little bit, that's extremely helpful and extremely profitable. One way that the drugmakers can do this is engage the generics in legal battles. There are a ton of different ways that you can do this. Typically, by challenging the generic-drug maker when they try to come at you with their own generic formulation of your branded drug, it'll add a good 30-45 months of additional exclusivity.
Campbell: Yeah. And we've seen that. We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. Generic companies have to tell the company that holds the patent that they're filing for FDA approval of the generic drug. And the drugmaker then has 45 days of getting that notice letter to be able to say, "No, I'm going to challenge this in court." And as you said, between the court challenge and the appeals process, you're adding three to four years of protection to your medicine, which, in the case of a drug like Humira, that's tens of billions of dollars in sales. But, that isn't the only way, obviously, Kristine, that these companies can skirt the threat of generic competition.
Harjes: Oh, not nearly. One of the ones that you see all the time is by creating reformulations of the original drug. For example, a sustained-release formulation. This would be something like Adderall XR.
Campbell: Yeah. The example that I was thinking of was Teva's Copaxone, which is the most commonly prescribed multiple sclerosis drug with $4 billion in sales.
Harjes: And that's a fantastic example, just because Teva relies so heavily on Copaxone. They're mostly a generics company, that's their one big hitter brand-name drug. And as soon as generic competition hits for it, it'll be a huge hit for a company that's already struggling.
Campbell: Right. So, what they did was to come up with the formulation that can be dosed less frequently, and then they began switching the patients over to it. So, I think by the time that you end up with generics coming out on the market, the majority of patients have already been transferred over to this extended release drug that has much more patent protection. Again, shares up billions of dollars in revenue. We see other examples, too. We see this with Gilead Sciences , what they did recently with reformulating their Viread to make TAF, which is safer. And now, including that in all their combination drugs to extend the patent protection on all of their HIV franchise. We also saw that with Biogen in creating Plegridy, which is a version of Avonex that lasts longer. So, yes, that's a very common way that companies can basically maintain market share and keep those dollars flowing.
Harjes: There's one more that I'll throw out there which is increasing the efficacy of the drug. An example of this is Nexium, it's a heartburn medication, and it's a form of a drug called Prilosec that only has the effective form of the active molecule. It's a lot of heavy duty science to describe exactly what that means, but it's a process known as chiral switching. Kind of interesting stuff.
Kristine Harjes owns shares of GILD. Todd Campbell owns shares of GILD.His clients may have positions in the companies mentioned.The Motley Fool owns shares of and recommends BIIB and GILD. The Motley Fool has the following options: short October 2017 $86 calls on GILD. 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, analyst Kristine Harjes and contributor Todd Campbell explain why companies like AbbVie (NYSE: ABBV) are working so hard to delay generic competition, how legal battles can add years of sales to drugs facing patent expiration, and how reformulating existing drugs to last longer helps keep sales flowing at companies like Teva Pharmaceutical (NYSE: TEVA) . We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. Typically, by challenging the generic-drug maker when they try to come at you with their own generic formulation of your branded drug, it'll add a good 30-45 months of additional exclusivity. | In this clip from The Motley Fool's Industry Focus: Healthcare podcast, analyst Kristine Harjes and contributor Todd Campbell explain why companies like AbbVie (NYSE: ABBV) are working so hard to delay generic competition, how legal battles can add years of sales to drugs facing patent expiration, and how reformulating existing drugs to last longer helps keep sales flowing at companies like Teva Pharmaceutical (NYSE: TEVA) . We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. So, even being able to extend your patent protection by a little bit, that's extremely helpful and extremely profitable. | In this clip from The Motley Fool's Industry Focus: Healthcare podcast, analyst Kristine Harjes and contributor Todd Campbell explain why companies like AbbVie (NYSE: ABBV) are working so hard to delay generic competition, how legal battles can add years of sales to drugs facing patent expiration, and how reformulating existing drugs to last longer helps keep sales flowing at companies like Teva Pharmaceutical (NYSE: TEVA) . We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. And, obviously, that's not nearly as good as 20 years, especially when you consider that at the end of the patent life, you're going to face competition from generic drugs that are going to be priced as much as 80% or 90% less than the price that you were charging for your reference drug. | In this clip from The Motley Fool's Industry Focus: Healthcare podcast, analyst Kristine Harjes and contributor Todd Campbell explain why companies like AbbVie (NYSE: ABBV) are working so hard to delay generic competition, how legal battles can add years of sales to drugs facing patent expiration, and how reformulating existing drugs to last longer helps keep sales flowing at companies like Teva Pharmaceutical (NYSE: TEVA) . We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. So, I think more and more, companies are looking and trying to find ways to be able to get additional years added on to their patent protection for their drugs. |
25978.0 | 2017-09-26 00:00:00 UTC | Notable ETF Inflow Detected - ITOT, DWDP, ABBV, MMM | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-itot-dwdp-abbv-mmm-2017-09-26 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $177.7 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 189,350,000 to 192,450,000). Among the largest underlying components of ITOT, in trading today Dowdupont Incorporated (Symbol: DWDP) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and 3M Co (Symbol: MMM) is higher by about 0.5%. 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 $47.42 per share, with $57.54 as the 52 week high point - that compares with a last trade of $57.18. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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 Dowdupont Incorporated (Symbol: DWDP) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and 3M Co (Symbol: MMM) is higher by about 0.5%. 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 $47.42 per share, with $57.54 as the 52 week high point - that compares with a last trade of $57.18. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today Dowdupont Incorporated (Symbol: DWDP) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and 3M Co (Symbol: MMM) is higher by about 0.5%. 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 $47.42 per share, with $57.54 as the 52 week high point - that compares with a last trade of $57.18. 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 Dowdupont Incorporated (Symbol: DWDP) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and 3M Co (Symbol: MMM) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $177.7 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 189,350,000 to 192,450,000). 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 $47.42 per share, with $57.54 as the 52 week high point - that compares with a last trade of $57.18. | Among the largest underlying components of ITOT, in trading today Dowdupont Incorporated (Symbol: DWDP) is trading flat, AbbVie Inc (Symbol: ABBV) is down about 0.5%, and 3M Co (Symbol: MMM) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $177.7 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 189,350,000 to 192,450,000). 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 $47.42 per share, with $57.54 as the 52 week high point - that compares with a last trade of $57.18. |
25979.0 | 2017-09-25 00:00:00 UTC | Abbvie/Bristol-Myers Inks Deal to Develop Therapeutic Cancer | ABBV | https://www.nasdaq.com/articles/abbvie-bristol-myers-inks-deal-to-develop-therapeutic-cancer-2017-09-25 | nan | nan | AbbVieABBV and Bristol-Myers Squibb Company BMY entered into a deal to evaluate the combination of AbbVie's investigational antibody drug conjugate, ABBV-399, and Bristol-Myers Squibb's immune-oncology drug, Opdivo (nivolumab), in c-Met overexpressing non-small cell lung cancer (NSCLC).
Currently, the combination is in a phase I study that evaluates the patients for second line treatment who have failed one prior line of chemotherapy. But the specific terms of the deal were not disclosed. Notably, AbbVie is the sponsor conducting the trial.
AbbVie's shares have outperformed the industry year to date. The stock has been up 39.7% compared with the industry 's gain of 17% in the same time frame.
ABBV-399 is an anti-c-Met antibody drug conjugate that targets both MET-amplified and c-Met-overexpressing tumors. It is currently being developed to treat advanced solid tumors.
In fact, Opdivo continues to be launched globally on approvals and label expansions. Label expansion into additional indications would give the product access to a higher patient population and increase the commercial potential of the drug, significantly.
Markedly, Opdivo is being studied in combination with Bristol-Myers' other drug Yevroy. In the melanoma indication, the Opdivo+Yervoy regimen is contributing to growth in both Opdivo and Yervoy. Also, the drug became the first PD-1 inhibitor to be approved for a hematological malignancy - classical Hodgkin lymphoma in the United States (May 2016) and the EU (November 2016).
In the second quarter of 2017, Opdivo generated revenues of $1.19 billion, up 42% from the year-ago period.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank & Stocks to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in health care sector include Alexion Pharmaceuticals, Inc. ALXN and Regeneron Pharmaceuticals, Inc. REGN sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Alexion Pharmaceuticals' earnings per share estimates have moved up from $5.49 to $5.60 for 2017 and from $6.82 to $7.06 for 2018 over the last 60 days. The company delivered positive earnings surprises in all the trailing four quarters, with an average beat of 11.12%. The share price of the company has increased 16.8% year to date.
Regeneron's earnings per share estimates have increased from $12.84 to $14.99 for 2017 and from $15.32 to $16.65 for 2018 over the last 60 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 10.11%. The share price of the company has increased 17.9% year to date.
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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 and Bristol-Myers Squibb Company BMY entered into a deal to evaluate the combination of AbbVie's investigational antibody drug conjugate, ABBV-399, and Bristol-Myers Squibb's immune-oncology drug, Opdivo (nivolumab), in c-Met overexpressing non-small cell lung cancer (NSCLC). Notably, AbbVie is the sponsor conducting the trial. AbbVie's shares have outperformed the industry year to date. | AbbVieABBV and Bristol-Myers Squibb Company BMY entered into a deal to evaluate the combination of AbbVie's investigational antibody drug conjugate, ABBV-399, and Bristol-Myers Squibb's immune-oncology drug, Opdivo (nivolumab), in c-Met overexpressing non-small cell lung cancer (NSCLC). AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVieABBV and Bristol-Myers Squibb Company BMY entered into a deal to evaluate the combination of AbbVie's investigational antibody drug conjugate, ABBV-399, and Bristol-Myers Squibb's immune-oncology drug, Opdivo (nivolumab), in c-Met overexpressing non-small cell lung cancer (NSCLC). AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report To read this article on Zacks.com click here. | ABBV-399 is an anti-c-Met antibody drug conjugate that targets both MET-amplified and c-Met-overexpressing tumors. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Stocks to Consider AbbVie currently carries a Zacks Rank #3 (Hold). AbbVieABBV and Bristol-Myers Squibb Company BMY entered into a deal to evaluate the combination of AbbVie's investigational antibody drug conjugate, ABBV-399, and Bristol-Myers Squibb's immune-oncology drug, Opdivo (nivolumab), in c-Met overexpressing non-small cell lung cancer (NSCLC). |
25980.0 | 2017-09-24 00:00:00 UTC | AbbVie's Unfazed by the Risk of Generic Humira | ABBV | https://www.nasdaq.com/articles/abbvies-unfazed-risk-generic-humira-2017-09-24 | nan | nan | Over 60% of AbbVie Inc .'s (NYSE: ABBV) sales come from demand for Humira -- an autoimmune-disease drug prescribed to patients with a variety of conditions -- that racks up sales of $16 billion per year. Humira is also world's top selling medicine.
AbbVie's heavy reliance on Humira has investors nervous about what happens when Humira loses its patent protection, but perhaps, those worries are overblown based on what AbbVie's management is telling investors.
High stakes patent ploy
Humira was discovered by AbbVie in 1996, and its composition of matter patent expired at the end of 2016. The composition of matter patent arguably provided Humira with its best patent protection, but AbbVie believes other patents it's been granted over the years for manufacturing, method of use, and formulation still give it plenty of patent cover.
Recently, AbbVie told investors it believes its patent strategies will be able to fend off Humira look-a-likes until at least 2022.
Until then, AbbVie expects Humira to become even more deeply entrenched with doctors and patients, making its moat a bit wider and deeper against upstarts. Between price increases and growing prescription volume, AbbVie estimates Humira's annual revenue will increase to $20 billion, making every month added by patent litigation incredibly valuable.
Preparation underway
Regardless of when it loses exclusivity on Humira, AbbVie's not sitting idly by waiting. In hopes of offsetting any future risk to Humira's sales, the company is already investing heavily in acquisitions and research and development.
In 2016, it acquired Pharmacyclics for $21 billion so that it could own 50% of the rights to Imbruvica, a fast-growing drug used to treat patients with chronic lymphocytic leukemia (CLL) and other cancers. Imbruvica's global sales are already above $2 billion, and a new approval of its use in graft versus host disease should send its sales even higher in the coming year.
In addition to Imbruvica, AbbVie's Empliciti, a multiple myeloma drug, won FDA approval in 2015, and Venclexta, a CLL drug, won approval in 2016. The company's R&D pipeline includes over a dozen cancer drugs in clinical-stage development, including Rova-T, a solid tumor drug it acquired for more than $5 billion in 2016.
The R&D team is also developing successors to protect Humira's market share. Late-stage studies are in progress for upadacitinib, a potential treatment for rheumatoid arthritis, Crohn's disease, and ulcerative colitis, as well as the drug risankizumab -- a possible treatment for multiple inflammatory disease indications. AbbVie thinks these two drugs could become top sellers with combined peak sales of $5 billion per year someday.
Also, AbbVie's developed a next-generation hepatitis C drug that can cure the disease in as little as eight weeks, and that will compete for billions of dollars per year in sales after winning FDA approval this summer. Its pipeline also includes drugs targeting endometriosis, Alzheimer's disease, and Parkinson's disease.
Eyes on the future
If AbbVie is to fully offset any future threat to Humira's sales by biosimilars, it's going to need to achieve a much better clinical-trial win rate than the industry has had in the past. Historically, only about one in 10 drugs entering clinical trials successfully have made it to market.
The pressure for AbbVie's strategy to succeed is increased even further by the fact that the FDA has already approved two Humira biosimilars. For now, their launches are being delayed by AbbVie's legal strategy, but with other FDA approvals likely, there's bound to be a slate of biosimilars waiting at the gate for Humira's patent protection to finally end -- and that's something AbbVie won't be able to avoid forever.
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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. | Until then, AbbVie expects Humira to become even more deeply entrenched with doctors and patients, making its moat a bit wider and deeper against upstarts. Also, AbbVie's developed a next-generation hepatitis C drug that can cure the disease in as little as eight weeks, and that will compete for billions of dollars per year in sales after winning FDA approval this summer. Over 60% of AbbVie Inc . | The composition of matter patent arguably provided Humira with its best patent protection, but AbbVie believes other patents it's been granted over the years for manufacturing, method of use, and formulation still give it plenty of patent cover. In addition to Imbruvica, AbbVie's Empliciti, a multiple myeloma drug, won FDA approval in 2015, and Venclexta, a CLL drug, won approval in 2016. Over 60% of AbbVie Inc . | AbbVie's heavy reliance on Humira has investors nervous about what happens when Humira loses its patent protection, but perhaps, those worries are overblown based on what AbbVie's management is telling investors. The composition of matter patent arguably provided Humira with its best patent protection, but AbbVie believes other patents it's been granted over the years for manufacturing, method of use, and formulation still give it plenty of patent cover. For now, their launches are being delayed by AbbVie's legal strategy, but with other FDA approvals likely, there's bound to be a slate of biosimilars waiting at the gate for Humira's patent protection to finally end -- and that's something AbbVie won't be able to avoid forever. | AbbVie's heavy reliance on Humira has investors nervous about what happens when Humira loses its patent protection, but perhaps, those worries are overblown based on what AbbVie's management is telling investors. The pressure for AbbVie's strategy to succeed is increased even further by the fact that the FDA has already approved two Humira biosimilars. Over 60% of AbbVie Inc . |
25981.0 | 2017-09-22 00:00:00 UTC | Gilead's (GILD) Epclusa Receives Label Expansion in Canada | ABBV | https://www.nasdaq.com/articles/gileads-gild-epclusa-receives-label-expansion-in-canada-2017-09-22 | nan | nan | Gilead Sciences Inc.GILD announced that Health Canada has granted a Notice of Compliance (NOC) for updated label of hepatitis C virus drug, Epclusa.
The drug's label has been expanded to extend the drug's use for patients co-infected with HIV-1.
The drug was approved in Canada in July 2016 for the treatment of adults with genotype 1-6 chronic HCV infection without cirrhosis or with compensated cirrhosis, or with decompensated cirrhosis in combination with ribavirin.
We expect the drug's sales to increase with this label expansion as HCV co-infection remains a major cause of morbidity in HIV-infected individuals.
Last month, Health Canada granted a NOC for single-tablet regimen, Vosevi (sofosbuvir 400 mg/velpatasvir 100 mg/voxilaprevir 100 mg), for chronic HCV infection.
Gilead is known for its presence in the HCV market, courtesy of its blockbuster HCV drugs, Sovaldi and Harvoni. The HCV portfolio received a huge a boost when Epclusa gained approval in both the United States (June 2016) and EU (July 2016) and became the first and only all-oral, pan-genotypic, STR consisting of Sovaldi and velpatasvir (an NS5A inhibitor), for the treatment of adults with genotype 1-6 chronic HCV infection. The approval of Vosevi is expected to boost Gilead's strong HCV portfolio further.
However, the HCV franchise is under pressure due to competition and pricing issues. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. Competition as well as pricing pressure intensified further with the launch of Merck & Co., Inc.'s MRK Zepatier.
Gilead's stock has gained 17.5% year to date against the industry's 17.3%.
Gilead recently announced plans to acquire Kite Pharma, Inc. KITE to foray in the emerging field of cell therapy. Kite is a pioneer in cell therapy having developed engineered cell therapies that express either a chimeric antigen receptor (CAR) or an engineered T-cell receptor (TCR), depending on the type of cancer. The acquisition will diversify Gilead's portfolio and poise the company in a dominant position in cellular therapy space. We note that investors were expecting Gilead to announce an acquisition in the near term given the decline in the once lucrative HCV market due to competitive pressure.
Zacks Rank
Gilead currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead Sciences Inc.GILD announced that Health Canada has granted a Notice of Compliance (NOC) for updated label of hepatitis C virus drug, Epclusa. | 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. The drug was approved in Canada in July 2016 for the treatment of adults with genotype 1-6 chronic HCV infection without cirrhosis or with compensated cirrhosis, or with decompensated cirrhosis in combination with ribavirin. | 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. Gilead is known for its presence in the HCV market, courtesy of its blockbuster HCV drugs, Sovaldi and Harvoni. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie Inc. ABBV Viekira Pak and Viekira XR among others. 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 Kite Pharma, Inc. (KITE): Free Stock Analysis Report To read this article on Zacks.com click here. The approval of Vosevi is expected to boost Gilead's strong HCV portfolio further. |
25982.0 | 2017-09-22 00:00:00 UTC | Ask a Fool! We Answer Your Healthcare Questions on Trials, Patents, and Pharmacy Retailers | ABBV | https://www.nasdaq.com/articles/ask-fool-we-answer-your-healthcare-questions-trials-patents-and-pharmacy-retailers-2017-09 | nan | nan | If you've ever wondered why drugmakers run Phase I-II or II B clinical trials, how drugmakers like AbbVie (NYSE: ABBV) plan on keeping generic drugmakers at bay after their patents expire, or why pharmacy retailers like Walgreens Boots Alliance (NASDAQ: WBA) and CVS Health (NYSE: CVS) aren't making more money off aging baby boomers, you're not alone.
Listeners to The Motley Fool's Industry Focus: Healthcare podcast asked those exact questions, and in today's show, analyst Kristine Harjes and contributor Todd Campbell answer them. The two explain how interim clinical trials can save drugmakers money, how drugmakers use the court system protect billions of dollars in sales, and why falling generic drug prices are creating headwinds for retail pharmacy chains.
A full transcript follows the video.
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This video was recorded on Sept. 20, 2017.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. I'm your Healthcare show host, Kristine Harjes. This episode was pre-recorded in late August and is scheduled for release on September 20th, at which point I will be in route to Greece. Calling in today to Fool HQ for a mailbag episode is healthcare investor, Todd Campbell. Ready to answer some listener questions, Todd?
Todd Campbell: Take me with you to Greece! Take me with you to Greece!
Harjes: You could, we're clearing the schedule for the whole week.
Campbell: What a great time! It's going to be a fun episode today. We're going to get a chance to directly answer back some questions that got thrown out to us. That's always a lot of fun.
Harjes: I think between the different show hosts here at Industry Focus , we all have slightly different styles of responding to questions. I tend to respond via email right away. Ask a question and I will either email Todd, like, "What do you think about this?" Or I'll come up with my own answer. But, I know some of the other show hosts prefer to compile them into entire episodes where they answer it live on the air. So, that's what we're going to do today. Hopefully it will get the people that wrote in the answers that they need, and maybe even encourage some more questions.
Campbell: Yeah. And, you have to imagine that if one person is asking the question, there are probably a few others who want to know the answer as well, right?
Harjes: That's what they always told me in school. There are no dumb questions, and if you're thinking it, everybody else is thinking it, too. I don't know if that's quite true, but that's what they told me. Anyway, one of our listeners named Brian wrote in, and he asked us, "How/why do companies do Phase I B or phase I-II studies?" What he's referencing here is, we talk about all the time on the show Phase I, Phase II, Phase III clinical trials to get a drug from being discovered all the way through to having the FDA say, "Yep, you are good to go, you can sell this to actual people for use." It doesn't actually always go in that specific order. Sometimes you get weird trials like these Phase I B or II B or phase I-II trial. What Brian was wondering overall was, why would a company choose to not go by the standard Phase I, Phase II, Phase III, submit?
Campbell: We're seeing a lot more of these, which probably prompted this question. It seems like we're getting a lot more of these, "In Phase I-II," or, "In Phase II B," or whatever. It's not like it's something that's so rare that you're never going to see it as a biotech or biopharma investor. I think it's an important question to answer. Probably the easiest way to explain it would be, if I told you, Kristine, to go to a certain location in your car but I didn't give you a map and you didn't have your GPS, it will be kind of hard to figure out if you really are on the right path to get there. What Phase I and II trials and II B trials do is they allow you to course-correct. Rather than going through all of the massive expense that is associated in jumping straight from a Phase I to a Phase II, and from a Phase II to a Phase III, you can then say, "I want to explore something before I spend all that money in Phase II, and make sure that I'm actually on the right track before I commit to a full study." Does that make sense to you?
Harjes: Yeah, absolutely. When you think about the differences in scale between the three different traditional phases, it's huge. It's orders of magnitude more people involved, it'll take more time, it costs more money to run the larger, later stage trials. So, I completely understand why one might want to course correct along the way. When you think about the intention behind some of the earlier stage trials, they're just to establish proof of concept, make sure that it's safe and you're seeing, not even efficacy. At that point, Phase I especially, you're really just focused on safety.
Campbell: Yeah, dose and safety, Kristine. Phase I and Phase II, dose and safety.
Harjes: Yeah, and it's entirely possible that you get all the way through Phase II and you're still not really convinced that this drug has the efficacy that you think it has. So, I can see how if I were a drug developer, I would be at the end of Phase II, I would be staring down my options, I'm looking at Phase III, I know it's going to be expensive. Maybe I don't have any positive cash flow yet so far, so I'm trying to keep costs to a minimum, at least not plunge into the deep end right away with a giant Phase III. That's when you might want to run a Phase II B trial. It's somewhere in between a Phase II and a Phase III, it's not quite as large and expensive as the Phase III, but it can allow you to make sure that you really have a promising drug candidate before you move forward.
Campbell: Right. I think to help put that in perspective a little more, research and development budgets have been under pressure for a decade now. You've had some pretty high-profile patent expirations that have hit the industry over the course of the last decade. And as a result, companies have gotten a lot more selective in what compounds they want to bring all the way through the clinic. The more that they can hone their process and their practice, the more that they can figure out what exact specific patient population, indication, etc. they should be targeting, the more likely it is that the R&D spending is going to translate into an actual approved, commercialized drug that's generating revenue. Just to put the expenses in a little bit more context for listeners, the average costs of enrolling a patient in a Phase II study is about $19,000. In a Phase III study, it's $26,000. So, significantly more per patient. And then you think about the fact that, Phase II trials, maybe they're only enrolling, what, 40 to 100 patients, something like that? Phase III trials will enroll hundreds of patients. And depending on the indication, they can enroll thousands of patients. These trials can end up costing, in Phase III, upwards of hundreds of millions of dollars into the billion-dollar range depending on what you're talking about and how many Phase III trials have to be studied. So, it makes sense to improve the odds of success. And that's especially important in indications like cancer, for example, where you'll definitely see a lot more of this Phase I-II stuff and this Phase II B stuff, and Alzheimer's disease, because those indications have such incredibly high failure rates already. So, anything you can do to improve those failure rates is a good thing.
Harjes: Yeah. So, some of these strategies that these companies can take when they go into Phase III, if they have more and more data behind them that they've already found, you can tweak your endpoints to say, "Oh, I'm going to use this very specific way of gauging mental function in Alzheimer's," or something like that, or you can also tweak the patient populations, where maybe in oncology, you know that if a tumor expresses in a certain way, it's more likely that this drug will have an effect, therefore when I go to enroll for Phase III, I'm going to actively select for patients that have the greatest chance of success.
Campbell: Yeah. There's so much information now. Thanks to technology, we can now record and analyze all the data from the trials that have been going on since 2000. And the more data points you get within your data series, the more useful the information or the output is in doing that analysis. So, these companies are getting smarter and smarter and smarter about figuring out, will this drug work in a broad patient population? If so, I'll go ahead with a full Phase III. Or, will it work in a limited patient population, so I'll do an exploratory Phase II B trial that I can still reference back to when I do my filing, and that may save me some money in having to do two Phase III trials, depending on what the FDA wants to see. So, I think from an investment standpoint, although having more trials sounds like, "This is going to increase total costs," the amount of money that you save by not running a trial that's going to be likely to fail more than offsets that. So, I think investors should review that as a good thing. And then, of course, keep it all in perspective because, even if you succeed in a Phase I-II trial or a Phase II B trial, yes it may improve the odds, but you still have failure rates that are so high across clinical trials that you need to still have a healthy dose of skepticism when approaching any clinical stage company.
Harjes: Yeah, absolutely. Brian's email also had a question for us about the creative ways in which drug makers can extend their drugs' patent lives. Todd, do you want to hit on that a little bit?
Campbell: I think many people probably already know that if you have a patent, it's going to protect you for about 20 years. The problem is, with drug development, is that you're filing that patent as you're doing the clinical-stage work, and that clinical-stage work can take years and years off of your patent period. So, you end up with a commercial drug that only has patent protection for maybe 7-10 years. And, obviously, that's not nearly as good as 20 years, especially when you consider that at the end of the patent life, you're going to face competition from generic drugs that are going to be priced as much as 80% or 90% less than the price that you were charging for your reference drug. So, I think more and more, companies are looking and trying to find ways to be able to get additional years added on to their patent protection for their drugs. Again, Kristine, to hammer this point home, if you have a $1 billion blockbuster drug, it has paid for itself probably within the first few years. And now it's all pure profit that you're using to fund your other R&D activity. So, every year, every six months, every one month that you extend your protection, that's big money to your bottom line.
Harjes: To give a specific example of the numbers that we're looking at here, I actually pulled these numbers when I was looking at research for the last question that we just answered, but it's applicable here, so I'm going to share it. For a blockbuster drug, meaning $1 billion in revenue, when you break that down into a calendar year, each day is $2.7 million. I think sometimes it's hard to wrap your brain around just how big $1 billion is. But, if you do the math, that's still well over $1 million. $2.7 million every single day. So, even being able to extend your patent protection by a little bit, that's extremely helpful and extremely profitable. One way that the drug makers can do this is engage the generics in legal battles. There are a ton of different ways that you can do this. Typically, by challenging the generic drug maker when they try to come at you with their own generic formulation of your branded drug, it'll add a good 30-45 months of additional exclusivity.
Campbell: Yeah. And we've seen that. We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. Generic companies have to tell the company that holds the patent that they're filing for FDA approval of the generic drug. And the drug maker then has 45 days of getting that notice letter to be able to say, "No, I'm going to challenge this in court." And as you said, between the court challenge and the appeals process, you're adding three to four years of protection to your medicine, which, in the case of a drug like Humira, that's tens of billions of dollars in sales. But, that isn't the only way, obviously, Kristine, that these companies can skirt the threat of generic competition.
Harjes: Oh, not nearly. One of the ones that you see all the time is by creating reformulations of the original drug. For example, a sustained-release formulation. This would be something like Adderall XR.
Campbell: Yeah. The example that I was thinking of was Teva 's Copaxone, which is the most commonly prescribed multiple sclerosis drug with $4 billion in sales.
Harjes: And that's a fantastic example, just because Teva relies so heavily on Copaxone. They're mostly a generics company, that's their one big hitter brand-name drug. And as soon as generic competition hits for it, it'll be a huge hit for a company that's already struggling.
Campbell: Right. So, what they did was to come up with the formulation that can be dosed less frequently, and then they began switching the patients over to it. So, I think by the time that you end up with generics coming out on the market, the majority of patients have already been transferred over to this extended release drug that has much more patent protection. Again, shares up billions of dollars in revenue. We see other examples, too. We see this with Gilead Sciences , what they did recently with reformulating their Viread to make TAF, which is safer. And now, including that in all their combination drugs to extend the patent protection on all of their HIV franchise. We also saw that with Biogen in creating Plegridy, which is a version of Avonex that lasts longer. So, yes, that's a very common way that companies can basically maintain market share and keep those dollars flowing.
Harjes: There's one more that I'll throw out there which is increasing the efficacy of the drug. An example of this is Nexium, it's a heartburn medication, and it's a form of a drug called Prilosec that only has the effective form of the active molecule. It's a lot of heavy duty science to describe exactly what that means, but it's a process known as chiral switching. Kind of interesting stuff. But with all of these different reformulations and maybe a different route of administration, Todd, how did these hold up legally? Is one method of extending the patent more useful than another? What do you think?
Campbell: Well, manufacturing patents are pretty easily negotiated around by generics. So, I would rank that as being the bottom tier. I would say method of use, probably a little better than that. And then, of course the actual composition would be the strongest. So, the reformulations are probably the strongest way to go for these. You're also seeing combinations, you can also do combination drugs where you take your drug and combine it with another new drug, and that'll extend out your patent protection as well. So, there's a lot of different routes that they can go, and you can argue what that means or doesn't mean for society, if it's a good thing or a bad thing. But, I think from an investment standpoint, you have to know that, especially if you're considering some of these drugs, or buying shares of some of these companies that are making these blockbuster drugs.
Harjes: And as an aside, the composition of matter patent, that's the original, that's the hardest to challenge, that's what people mean when they say the main patent on a drug. Sometimes you'll do a quick search and say, "When does the patent on whatever expire?" And there'll be 50 different patents in there. The one that matters the most is the composition of matter patent. That's the one that Todd was mentioning is the hardest to challenge.
Moving on to our last listener question of the day, a listener named Rich wrote in via the Google form accessible on our Twitter account, @MFIndustryFocus, and said, "Lots of aging Americans and prescriptions, but drugstore stocks seem to be struggling even before Amazon hinted at trying to enter the Rx business. Why can't these drugstores and retail pharmacies grow or at least reward shareholders anymore?"
Campbell: That's a great question. You look at it and, 76 million Baby Boomers undeniably living longer, and therefore requiring more healthcare. How is that not a good thing for companies that are filling their prescription medicines?
Harjes: Absolutely, and there are a ton of different factors going into this situation for these. We're going to leave aside questions about the mergers -- well, I don't want to completely ignore the mergers altogether, but for this very specific example that I'm not going to delve into too much on the show would be Rite Aid . We will put that aside because I feel like we've talked about that a lot on the show recently. But even aside from that specific example, this is a space that's seen a lot of consolidation over the past decade or so.
Campbell: Yeah, CVS and Walgreens are at the Goliaths without a doubt. If you add the two of their market shares together, you would probably end up with 40% or 50% of all filling of drugs at retail pharmacies in the country. So, they're a great proxy to look at in trying to answer this question. I think one of the things that you look at it and say, OK, you have this great demographic tailwind, but you also have to say, wait a minute, there's a disconnect there between that tailwind and what we're actually seeing in the financial results of these companies. If you look at the trailing 12 months and year over year growth for these companies, you'll notice that year over year growth has been kind of range-bound at CVS since 2010, and it's been more than cut in half since 2015. And if you look at the trailing 12-month operating margins for CVS and Walgreens, you'll see that they peaked in 2014, and they've been sliding steadily ever since, and that's because the cost of goods has increased for these companies. So, you've got a tug of war going on. You have all of this demand, because they are indeed feeling more prescriptions, but you have to also recognize that they're facing headwinds tied to how much payers want to pay for these drugs, for example. And that's offsetting a lot of that growth.
Harjes: Exactly. If you're an insurer and you see this trend that more people are feeling their prescriptions for more and more drugs, more expensive drugs, and you're still taking in the same amount in premiums, you're going to push back and try to pay as little as you can for these. And when you look at the entire drug supply chain, there are a lot of players in it, and each one of them wants to take a cut, which really puts a lot of pressure on margins for everyone involved. But since we're specifically talking about the retail pharmacies, that is something that you can see in the financial results.
Campbell: Yeah. If look at Walgreens' most recent quarter, they had an 8.5% increase in prescriptions filled. They filled 255 million prescriptions. But comparable sales at their pharmacies only increased 5.8%. So, again, that disconnect, and that disconnect is due to reimbursement pressure. If you look at generic prices, Kristine, since 2008, they have been steadily declining. Brand name prices have grown. Brand name prices are up 200% since 2008, according to Express Scripts . But generic prices are down 74%. And more and more drugs are being filled with generics. So, as the generic fill rate climbs, and prices are falling, it's creating all these bottom line headwinds.
Harjes: Yeah. What is kind of surprising about the generics versus brand name drug, as far as margins go, when you look at what the pharmacy actually collects in margin, it's much, much higher for generic drugs. And that doesn't seem like it would be the case at first, but it is. The numbers support this. You see margins of about 43% on generic drugs, and yet only 4% on brand name drugs.
Campbell: Right. But if you're selling a generic drug for $10 and a branded drug for $1,000, which would you rather? You're getting rid of your margins, but it's on a smaller --
Harjes: Yeah, but then you also have the volume consideration, where most drugs that are dispensed are generic drugs.
Campbell: 85% of them now, up from less than half of all drugs in 2003.
Harjes: Yeah.
Campbell: I think, Kristine, what you and I are both saying is that the generic drug business is not necessarily a bad thing for pharmacies, because it's still providing growth. And, as you said, it's higher margin. But, because of the price compression that's going on, it is putting a little bit of a cap or a lid on the growth that it might enjoy otherwise. And since we don't know where prices are heading from here, and stocks are forward-looking instruments, that creates some uncertainty for investors. It's probably behind most of the reason that stocks have been a little lackluster.
Harjes: Yeah. So, that's the back of the store pharmacy segment of these companies. There are a couple of other business segments that I feel like we should also touch on. For example, Rich writes in his question that the stocks seemed to be struggling even before Amazon hinted at trying to enter the prescription business. Yes, that is true, but Amazon was a threat to these companies well before that, and that's because these companies also sell things in their physical store. Something that I'm sure listeners of the Tuesday Consumer Goods show know very well, brick-and-mortar retail is struggling quite a bit due to pressures from Amazon and other online retailers.
Campbell: Yeah. They get about 20% of their revenue from other parts of the store. So, any kind of a hit to that, even if it's a couple percent, over a course of billions and billions in revenue, it's going to create one more headwind that they have to overcome. And I think rewards programs help to provide some insulation longer-term. This is still a good business. I think that's an important takeaway. It's a good business. But maybe it's not going to grow as fast as some people thought three or five years ago.
Harjes: That's fair. The last part of the retail pharmacy business that I think we should touch on is the PBM services, the pharmacy benefits management. Do you think that falls into the same category of on the decline as the other business segments do?
Campbell: You mentioned that there's all sorts of different points in the distribution channel, and everybody is getting their cut. So, there has been an argument to say, what if we source directly from the drug maker, rather than drug distributor, rather than through the PBM using them to manage, what if we bring that all in house and do that all ourselves? Is there more cost efficiency there? I think the PBM business is still a good and important business, because you can do things like drive adherence and reduce emergency room visits, and mail order pharmacy is an important component of that. So, again, a very good business. But I don't expect that we're going to see any kind of meaningful margin expansion within that business, either. It's probably going to remain a single-digit margin business as well.
Harjes: Yeah, that's just the nature of PBM, it's all based on volume and these really tiny margins. Alright, Todd, that wraps up our mailbag episode. Thanks for hanging out with me today and filming that's a little bit ahead of schedule. Listeners, if you have any questions like these for us, you can always reach out at industryfocus@fool.com , that's our email address. We're on Twitter @MFIndustryFocus. And we also have a Facebook group, it's called Motley Fool Podcasts , go ahead and request to join that and we'll approve you and you can be part of our Facebook community as well.
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!
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Kristine Harjes owns shares of Gilead Sciences. Todd Campbell owns shares of Amazon, Facebook, Gilead Sciences, and Twitter. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Biogen, Facebook, Gilead Sciences, and Twitter. The Motley Fool owns shares of Express Scripts and has the following options: short October 2017 $86 calls on Gilead Sciences. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you've ever wondered why drugmakers run Phase I-II or II B clinical trials, how drugmakers like AbbVie (NYSE: ABBV) plan on keeping generic drugmakers at bay after their patents expire, or why pharmacy retailers like Walgreens Boots Alliance (NASDAQ: WBA) and CVS Health (NYSE: CVS) aren't making more money off aging baby boomers, you're not alone. We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. Listeners to The Motley Fool's Industry Focus: Healthcare podcast asked those exact questions, and in today's show, analyst Kristine Harjes and contributor Todd Campbell answer them. | If you've ever wondered why drugmakers run Phase I-II or II B clinical trials, how drugmakers like AbbVie (NYSE: ABBV) plan on keeping generic drugmakers at bay after their patents expire, or why pharmacy retailers like Walgreens Boots Alliance (NASDAQ: WBA) and CVS Health (NYSE: CVS) aren't making more money off aging baby boomers, you're not alone. We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. Listeners to The Motley Fool's Industry Focus: Healthcare podcast asked those exact questions, and in today's show, analyst Kristine Harjes and contributor Todd Campbell answer them. | If you've ever wondered why drugmakers run Phase I-II or II B clinical trials, how drugmakers like AbbVie (NYSE: ABBV) plan on keeping generic drugmakers at bay after their patents expire, or why pharmacy retailers like Walgreens Boots Alliance (NASDAQ: WBA) and CVS Health (NYSE: CVS) aren't making more money off aging baby boomers, you're not alone. We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. What he's referencing here is, we talk about all the time on the show Phase I, Phase II, Phase III clinical trials to get a drug from being discovered all the way through to having the FDA say, "Yep, you are good to go, you can sell this to actual people for use." | If you've ever wondered why drugmakers run Phase I-II or II B clinical trials, how drugmakers like AbbVie (NYSE: ABBV) plan on keeping generic drugmakers at bay after their patents expire, or why pharmacy retailers like Walgreens Boots Alliance (NASDAQ: WBA) and CVS Health (NYSE: CVS) aren't making more money off aging baby boomers, you're not alone. We've talked about AbbVie in the past on this show, and Humira, which is the world's top-selling medicine, and the fact that its patent is expiring, but it's using these other ways to try and maintain its market share in Humira sales over the course of the next few years. Listeners to The Motley Fool's Industry Focus: Healthcare podcast asked those exact questions, and in today's show, analyst Kristine Harjes and contributor Todd Campbell answer them. |
25983.0 | 2017-09-22 00:00:00 UTC | 3 Big Biotech Stocks to Buy This Fall | ABBV | https://www.nasdaq.com/articles/3-big-biotech-stocks-buy-fall-2017-09-22 | nan | nan | A change in season presents a good time to look for great stocks to buy. And one of the best places to look is in the biotech industry. Biotech stocks in general are trouncing the S&P 500 index so far in 2017. I expect that trend to continue well into the future.
Which biotech stocks are most appealing? I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) at the top of the list. Here's why these three big biotech stocks are great ones to buy this fall.
AbbVie
Whether you're looking for growth, income, or value, AbbVie has something to offer. The company has grown earnings by 17% annually over the last five years. Wall Street analysts project AbbVie will increase its earnings by an average annual rate of nearly 14% over the next few years -- a little less than the past but still quite impressive.
AbbVie's growth should be driven both by current products and its pipeline. Sales momentum continues for its top-selling drug, Humira. Cancer drug Imbruvica is the greatest rising star for AbbVie, with sales soaring nearly 44% year over year in the first half of 2017. Market research firm ranks AbbVie's pipeline as the third best in the biopharmaceutical industry , with leading candidates including autoimmune disease drug upadacitinib and cancer drug Rova-T.
Income-seeking investors will love AbbVie's attractive dividend yield of 2.93%. For most of this year, the yield topped 3.5%, but AbbVie's stock has gone up so much the yield has fallen recently. That's not a bad problem to have. In addition, the company should be in good position to increase the dividend in the future.
What about value? Even with the stock gaining close to 40% so far in 2017, AbbVie's shares still trade at just over 13 times expected earnings. Combined with the company's growth prospects and its solid dividend, this valuation makes AbbVie a top pick for both the short term and long term.
Celgene
If you're a classic rock fan, you probably remember Meat Loaf's hit from the seventies, "Two Out of Three Ain't Bad." That song is applicable to Celgene. The big biotech isn't a fit for income investors since it doesn't pay a dividend, but Celgene should be appealing to growth investors and even value investors.
Actually, I think Celgene's growth prospects more than make up for its lack of a dividend. Over the last five years, Celgene has increased earnings by nearly 25% annually. The biotech anticipates earnings growth of around 22% over the next few years.
That growth will be fueled in large part by sustained strength for Revlimid, which is projected to become the world's top-selling cancer drug within the next five years. Celgene also has a couple of other rising blockbusters in Pomalyst and Otezla, with cancer drug Abraxane knocking on the $1 billion sales mark. The company's pipeline is exceptionally deep. Celgene thinks it could win regulatory approval for 10 candidates with blockbuster sales potential by 2022.
Celgene stock seems expensive looking in the rearview mirror: Shares trade at 44 times trailing 12-month earnings. But it's a different story looking to the future, with the stock trading at 16 times expected earnings. If you factor in Celgene's terrific growth prospects, the biotech's price-to-earnings-growth (PEG) ratio is only 0.90 -- making Celgene's valuation very attractive for growth-oriented investors.
Gilead Sciences
We could play that old Meat Loaf song again for Gilead Sciences. In Gilead's case, though, the two positives are its dividends and value.
Gilead's dividend currently yields 2.53%. Expect the dividend to only get better over time. The company uses less than 22% of earnings to fund the dividend program. Gilead initiated its first dividend in 2015 and has boosted the payout at least 10% each year since.
It's hard to find a stock on the market with a financial position as strong as Gilead that's as cheap as the biotech is right now. Gilead's shares currently trade at less than 11 times expected earnings. However, there's a reason why the stock is priced at such a low valuation: Gilead's revenue and earnings are falling due to slumping sales of its hepatitis C drugs.
Over the near term, it's not likely that Gilead will see revenue and earnings increases. But the company recently announced its plans to acquire Kite Pharma (NASDAQ: KITE) , a deal that will make Gilead a leader in the use of cell therapy in treating cancer. Gilead also has a large cash stockpile that it will likely use to acquire additional assets. With a pipeline ranked No. 4 in the world by EvaluatePharma and the financial resources to fuel future growth, I think Gilead is another big biotech stock that will pay off over the long run.
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Keith Speights owns shares of AbbVie, Celgene, and Gilead Sciences. 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. | Wall Street analysts project AbbVie will increase its earnings by an average annual rate of nearly 14% over the next few years -- a little less than the past but still quite impressive. I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) at the top of the list. AbbVie Whether you're looking for growth, income, or value, AbbVie has something to offer. | Combined with the company's growth prospects and its solid dividend, this valuation makes AbbVie a top pick for both the short term and long term. I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) at the top of the list. AbbVie Whether you're looking for growth, income, or value, AbbVie has something to offer. | Market research firm ranks AbbVie's pipeline as the third best in the biopharmaceutical industry , with leading candidates including autoimmune disease drug upadacitinib and cancer drug Rova-T. Income-seeking investors will love AbbVie's attractive dividend yield of 2.93%. *Stock Advisor returns as of September 5, 2017 Keith Speights owns shares of AbbVie, Celgene, and Gilead Sciences. I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) at the top of the list. | Combined with the company's growth prospects and its solid dividend, this valuation makes AbbVie a top pick for both the short term and long term. I'd put AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and Gilead Sciences (NASDAQ: GILD) at the top of the list. AbbVie Whether you're looking for growth, income, or value, AbbVie has something to offer. |
25984.0 | 2017-09-19 00:00:00 UTC | 3 Value Stocks at 52-Week Highs Still Worth Buying | ABBV | https://www.nasdaq.com/articles/3-value-stocks-52-week-highs-still-worth-buying-2017-09-19 | nan | nan | The whole idea behind being a value investor is that you find over-looked, un-loved, usually boring businesses, and buy them on the cheap. The very idea of buying a "value" stock at or near it 52-week high seems illogical.
Yet there are times when a company's prospects are still not fully reflected in its stock price -- even if that price is sitting higher than it has at any other point in the past year.
Today, three of our Foolish investors give you their take on value stocks that might appear expensive but are actually still attractive. Read on to see why Apple (NASDAQ: AAPL) , Toronto-Dominion Bank (NYSE: TD) , and AbbVie (NYSE: ABBV) all fit the bill.
Don't overthink this one
Brian Stoffel(Apple): In picking out a value stock trading near 52-week highs, it can be tempting to go for a company with an incredibly low P/E, or a sustainable dividend hovering over 3%. But I'm not going to fall into that trap. In Apple, we've got a stock trading at all time highs that's still a solid value play.
What makes it a value stock? Consider the following:
It has $261 billion in cash and investments versus "just" $90 billion in long-term debt.
If we back out all that cash (net debt) from the market cap, the company is trading for just 13 times free cash flow.
In addition, Apple has undeniable pricing power -- which could soon be demonstrated once again with the release of the iPhone X. Forbes rates the Apple brand as the world's most valuable, coming in at $170 billion.
And even though the company's dividend currently yields just 1.6%, there's tons of room for growth there: Apple needed to use only 24% of free cash flow over the past 12 months to pay for it.
This bank stock has paid dividends since the 1800s
Matt Frankel (Toronto-Dominion Bank): The banking sector has been one of the hottest areas of the market over the past year, but many banks could have much more room to climb. Canadian banks look especially attractive right now, as they haven't skyrocketed quite as much as most of their U.S. counterparts.
One great example, which recently reached a new 52-week high, is Toronto-Dominion Bank, better known to most consumers simply as TD Bank.
There are several reasons to like TD. The bank is Canada's largest credit card issuer, and it has been expanding its presence in the U.S. recently with valuable co-branding partnerships such as Target and Nordstrom . With an abundance of low- or no-interest deposits, TD stands to benefit tremendously from the expected rising interest rates in coming years. And finally, with a presence in less than one-third of U.S. states, TD has lots of room to grow.
For income-seeking investors, it's also important to mention that TD Bank has steadily paid dividends for 160 years , and also has a strong history of increasing its payout. Since 1995, the bank has increased its dividend at a 11% annualized rate, and its 3.6% yield is well above its peer-group average. And since it's not a U.S. bank, TD has more freedom to set its own dividend policy.
A biotech without a lot of risk
Rich Duprey(AbbVie): Even though shares of biotech giant AbbVie hit a new 52-week high and are up 42% so far in 2017, the stock trades at less than 22 times earnings and under 14 times next year's estimates. That compares favorably with the S&P 500, which goes for around 25 times earnings and 19 times estimates.
Although AbbVie depends on its rheumatoid arthritis therapy Humira for around two-thirds of its revenue, its next leading treatment, Imbruvica, could become one of the top five cancer drugs on the market, while the biotech has one of the best drug pipeline s in the industry, including two cancer drugs (Rova-T and Veliparib) and an autoimmune-disease drug (ABT-494).
AbbVie also pays a dividend of $2.56 per share that currently yields around 2.9%, and if you include the time before it was spun off from Abbott Labs in 2013, it has a history of raising its payout to shareholders for over 25 years, making it a Dividend Aristocrat.
Also, AbbVie's payout ratio -- the percentage of its net profits the biopharmaceutical pays out in dividends -- was a reasonable 60% over the past year, indicating that the company's generous reward to shareholders will continue.
With analysts expecting AbbVie to expand earnings at a 14% clip annually over the next five years, its stock still makes sense to buy despite the heights it's already obtained.
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Brian Stoffel owns shares of Apple. Matthew Frankel owns shares of Apple and The Toronto-Dominion Bank. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, AbbVie's payout ratio -- the percentage of its net profits the biopharmaceutical pays out in dividends -- was a reasonable 60% over the past year, indicating that the company's generous reward to shareholders will continue. With analysts expecting AbbVie to expand earnings at a 14% clip annually over the next five years, its stock still makes sense to buy despite the heights it's already obtained. Read on to see why Apple (NASDAQ: AAPL) , Toronto-Dominion Bank (NYSE: TD) , and AbbVie (NYSE: ABBV) all fit the bill. | Read on to see why Apple (NASDAQ: AAPL) , Toronto-Dominion Bank (NYSE: TD) , and AbbVie (NYSE: ABBV) all fit the bill. A biotech without a lot of risk Rich Duprey(AbbVie): Even though shares of biotech giant AbbVie hit a new 52-week high and are up 42% so far in 2017, the stock trades at less than 22 times earnings and under 14 times next year's estimates. Although AbbVie depends on its rheumatoid arthritis therapy Humira for around two-thirds of its revenue, its next leading treatment, Imbruvica, could become one of the top five cancer drugs on the market, while the biotech has one of the best drug pipeline s in the industry, including two cancer drugs (Rova-T and Veliparib) and an autoimmune-disease drug (ABT-494). | A biotech without a lot of risk Rich Duprey(AbbVie): Even though shares of biotech giant AbbVie hit a new 52-week high and are up 42% so far in 2017, the stock trades at less than 22 times earnings and under 14 times next year's estimates. Read on to see why Apple (NASDAQ: AAPL) , Toronto-Dominion Bank (NYSE: TD) , and AbbVie (NYSE: ABBV) all fit the bill. Although AbbVie depends on its rheumatoid arthritis therapy Humira for around two-thirds of its revenue, its next leading treatment, Imbruvica, could become one of the top five cancer drugs on the market, while the biotech has one of the best drug pipeline s in the industry, including two cancer drugs (Rova-T and Veliparib) and an autoimmune-disease drug (ABT-494). | Read on to see why Apple (NASDAQ: AAPL) , Toronto-Dominion Bank (NYSE: TD) , and AbbVie (NYSE: ABBV) all fit the bill. A biotech without a lot of risk Rich Duprey(AbbVie): Even though shares of biotech giant AbbVie hit a new 52-week high and are up 42% so far in 2017, the stock trades at less than 22 times earnings and under 14 times next year's estimates. Although AbbVie depends on its rheumatoid arthritis therapy Humira for around two-thirds of its revenue, its next leading treatment, Imbruvica, could become one of the top five cancer drugs on the market, while the biotech has one of the best drug pipeline s in the industry, including two cancer drugs (Rova-T and Veliparib) and an autoimmune-disease drug (ABT-494). |
25985.0 | 2017-09-19 00:00:00 UTC | 3 High-Yield Pharmaceutical Stocks | ABBV | https://www.nasdaq.com/articles/3-high-yield-pharmaceutical-stocks-2017-09-19 | nan | nan | It can be tempting to buy stocks based solely on their dividend yield, but that can actually be a big mistake . However, that doesn't mean that all high-yield stocks should be avoided.
So which big dividend payers do we like right now? We asked a team of healthcare investors to weigh in and they picked AstraZeneca (NYSE: AZN) , Pfizer (NYSE: PFE) , and AbbVie (NYSE: ABBV) .
A gamble that may be worth the risk
George Budwell (AstraZeneca): Because of the cost-intensive nature of developing drugs and subsequently bringing them to market in a highly competitive field, pharma stocks rarely offer dividends that can truly be considered "high yield." The British pharma giant AstraZeneca, however, is a clear exception to this trend, given its whopping annualized yield of 8.58%.
Astra's abnormal yield stems from its recent clinical setbacks in oncology that have cast serious doubt on management's ability to return the company to growth on a consistent basis -- along with the loss of exclusivity for a host of drugs, such as the former blockbuster cholesterol medicine Crestor. Put simply, investors have been steadily losing faith in this large-cap pharma, evinced by its nearly 12% decline over the past three years.
But Astra is far from a goner. Its lung cancer drug candidate Imfinzi may yet prove to be a valuable new addition to the field if it can prolong overall survival in its ongoing Mystic trial. And the company has built a strong stable of oncology medicines that include Tagrisso for mutated epidermal growth factor receptor cancers, as well as Lynparza for advanced ovarian cancer. Last but not least, Astra's diabetes franchise has also been growing at a healthy clip of late, boosted in part by the glycemic control medicine Farxiga.
All in all, Astra's prospects as either a growth or dividend stock are far from clear at this point. If Imfinzi rebounds next year, Astra's monstrous yield should be safe, but all bets are off if the company can't bring another franchise-level drug to market soon.
The deepest pipeline in Big Pharma
Sean Williams (Pfizer): When it comes to rock-steady high-yield pharmaceutical stocks, arguably none stands at the head of the class like Pfizer. Though its 3.6% yield isn't the highest among pharma stocks, its drug portfolio, pipeline, and growth prospects give it a clear advantage.
Pfizer's drug portfolio is diverse, with mature medicines delivering profits and cash flow right alongside high-growth divisions like internal medicine and oncology. Even though internal medicine remains Pfizer's bread-and-butter operating segment thanks to drugs like Lyrica and Eliquis, it's oncology that offers perhaps the most enticing growth opportunity for Pfizer.
Ibrance, a drug designed to treat advanced HER2-, ER+ breast cancer, has been a star for the company, with $1.53 billion in sales through the first half of 2017, a 63% increase from the prior-year period. If Ibrance can further expand its label, grow organically from increased demand (which seems likely given better diagnostic equipment and improved access to medical care), and pass along list-price hikes, it could easily grow beyond $5 billion in peak annual sales.
Another wildcard for Pfizer is going to be cancer immunotherapy Bavencio, which was licensed from Merck KGaA . Cancer immunotherapies are proving to be a foundational treatment for cancer patients with advanced disease, meaning Bavencio could have a shot at $1 billion or more in annual sales depending on how successfully its label is expanded into new cancer types.
In terms of Pfizer's pipeline, the company announced on Aug. 1, 2017, that it had 99 products at the clinical or registration stage, an increase of three from its May 2, 2017, update. Almost a third (32) of these projects are in pivotal late-stage trials, while another dozen have been filed for approval with the Food and Drug Administration. That's a lot of chances to hit a home run.
Having generated $13.2 billion or higher in free cash flow in each of the past five years, there's little concern about Pfizer or the health of its dividend. Income investors wanting a rock-solid high-yield dividend stock should be giving Pfizer a good look.
A monster drug that keeps on delivering
Brian Feroldi (AbbVie): AbbVie has slammed past the market averages since the company was spun off from its former parent Abbott Laboratories back in 2013. Investors can trace the company's tremendous success in a single word: Humira.
Humira is AbbVie's top-selling product that has become the go-to choice for treating a wide range of disease states (rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, and more). When combined, Humira sales grew by 14% last quarter and exceeded $4.7 billion. Not only is the double-digit growth rate impressive, but this figure makes Humira the best-selling drug in the world .
Humira's massive profitability provides AbbVie with a tremendous amount of cash flow that it generously uses to reward investors. While the company's preferred capital return method is dividend increases (see below), management also makes occasional acquisitions as well to build out its pipeline.
ABBV Total Return Price data by YCharts .
The only downside to having a massive winner like Humira in its portfolio is that competitors are chomping at the bit to get a piece of the action. That's why companies like Amgen and Coherus BioSciences are racing to bring their own biosimilar versions of Humira to market. If they succeed and Humira's sales tumble, then it is possible that the company's generous dividend payment could be in trouble.
While this is a risk for investors to watch, AbbVie believes that the drug's patents will keep profits flowing into the early 2020s. By then, I think the odds are good that a few of the company's pipeline products will be on the market and ready to pick up the slack.
Looking ahead, analysts are projecting that AbbVie's profits will grow by nearly 14% annually over the next five years. Despite the growth potential, shares are only trading at around 13 times next year's earnings estimates and offer up a dividend yield of 3% (that only consumes about 60% of profits). When combined, I think that makes AbbVie a growth stock that income-seeking investors should get to know.
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Brian Feroldi has no position in any of the stocks mentioned. George Budwell owns shares of Pfizer. Sean Williams 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. | We asked a team of healthcare investors to weigh in and they picked AstraZeneca (NYSE: AZN) , Pfizer (NYSE: PFE) , and AbbVie (NYSE: ABBV) . A monster drug that keeps on delivering Brian Feroldi (AbbVie): AbbVie has slammed past the market averages since the company was spun off from its former parent Abbott Laboratories back in 2013. Humira is AbbVie's top-selling product that has become the go-to choice for treating a wide range of disease states (rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, and more). | We asked a team of healthcare investors to weigh in and they picked AstraZeneca (NYSE: AZN) , Pfizer (NYSE: PFE) , and AbbVie (NYSE: ABBV) . A monster drug that keeps on delivering Brian Feroldi (AbbVie): AbbVie has slammed past the market averages since the company was spun off from its former parent Abbott Laboratories back in 2013. Humira is AbbVie's top-selling product that has become the go-to choice for treating a wide range of disease states (rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, and more). | We asked a team of healthcare investors to weigh in and they picked AstraZeneca (NYSE: AZN) , Pfizer (NYSE: PFE) , and AbbVie (NYSE: ABBV) . A monster drug that keeps on delivering Brian Feroldi (AbbVie): AbbVie has slammed past the market averages since the company was spun off from its former parent Abbott Laboratories back in 2013. Humira is AbbVie's top-selling product that has become the go-to choice for treating a wide range of disease states (rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, and more). | Humira's massive profitability provides AbbVie with a tremendous amount of cash flow that it generously uses to reward investors. When combined, I think that makes AbbVie a growth stock that income-seeking investors should get to know. We asked a team of healthcare investors to weigh in and they picked AstraZeneca (NYSE: AZN) , Pfizer (NYSE: PFE) , and AbbVie (NYSE: ABBV) . |
25986.0 | 2017-09-19 00:00:00 UTC | Roche (RHHBY) Announces Positive Data on Leukemia Drug | ABBV | https://www.nasdaq.com/articles/roche-rhhby-announces-positive-data-on-leukemia-drug-2017-09-19 | nan | nan | Roche Holdings AGRHHBY announced positive results from the phase III study, MURANO.
The study evaluated Venclexta in combination with Rituxan in patients suffering from relapsed or refractory chronic lymphocytic leukemia (CLL). Data showed that the study met its primary endpoint as the results depicted a statistically significant improvement in the time patients lived without their disease progressing or progression-free survival (PFS), when treated with Venclexta plus Rituxan compared to Treanda plus Rituxan.
We note that Roche is developing Venclexta in collaboration with AbbVie, Inc ABBV . Both the companies are commercializing the drug in the United States while AbbVie will commercialize outside the country.
We remind investors that the FDA approved Venclexta in April 2016 for the treatment of people with CLL, who have received at least one prior therapy, with 17p deletion, as detected by an FDA-approved test. The FDA also granted Breakthrough Therapy Designation to Venclexta in combination with Rituxan for the treatment of relapsed or refractory CLL based on promising results from the phase Ib M13-365 study.
The company is conducting MURANO study to convert the current accelerated approval of Venclexta to a full approval. Data from this study will be presented at an upcoming medical meeting and submitted to global health authorities.
As per estimates, there will be more than 20,000 new cases of CLL diagnosed in the United States in 2017. CLL is the most common type of adult leukemia. Hence, a potential approval for this indication will boost sales potential.
Roche's hematology portfolio includes approved drugs like MabThera/Rituxan, Gazyva, Tecentriq, and Venclexta along with pipeline candidates, polatuzumab vedotin/RG7596) and a small molecule antagonist of MDM2 (idasanutlin/RG7388).
Last week, the FDA placed a partial clinical hold on a phase Ib and phase I/II b trials evaluating immuno-oncology drug, Tecentriq due to safety issues. A partial hold was put due to emerging safety data from clinical trials evaluating Merck & Co. MRK Keytruda in combination with Celgene Corp.'s CELG Revlimid and Pomalyst. We note that the FDA had put a hold on several trials in the FUSION program by Celgene.
Roche's stock has gained 13.6% compared with the industry 's gain of 19.4% in the year so far.
Roche has a strong presence in the oncology market. The company dominates the breast cancer space due to the strong demand for its HER2 franchise drugs like Herceptin, Perjeta and Kadcyla. However, sales of Avastin and Tarceva continue to decline. Generic competition for Xeloda continues to hurt sales. Competition from biosimilars looms large on Roche's key drugs like Herceptin, Avastin and Rituxan.
Zacks Rank
Roche currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
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Roche Holding AG (RHHBY): 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. | We note that Roche is developing Venclexta in collaboration with AbbVie, Inc ABBV . Both the companies are commercializing the drug in the United States while AbbVie will commercialize outside the country. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Roche is developing Venclexta in collaboration with AbbVie, Inc ABBV . Both the companies are commercializing the drug in the United States while AbbVie will commercialize outside the country. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Roche is developing Venclexta in collaboration with AbbVie, Inc ABBV . Both the companies are commercializing the drug in the United States while AbbVie will commercialize outside the country. | We note that Roche is developing Venclexta in collaboration with AbbVie, Inc ABBV . Both the companies are commercializing the drug in the United States while AbbVie will commercialize outside the country. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. |
25987.0 | 2017-09-18 00:00:00 UTC | J&J's (JNJ) Psoriasis Drug Guselkumab Gets CHMP Nod in EU | ABBV | https://www.nasdaq.com/articles/jjs-jnj-psoriasis-drug-guselkumab-gets-chmp-nod-in-eu-2017-09-18 | nan | nan | Johnson & JohnsonJNJ announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has granted a positive opinion recommending approval of its pipeline candidate, guselkumab for the treatment of moderate-to-severe plaque psoriasis in the EU.
The drug was approved in the United States in July this year and is marketed by the trade name of Tremfya for the treatment of this immune system related skin disorder. A decision from the European Commission (EC) is expected later this year.
So far this year, J&J's share price has increased 16.7%, comparing favorably with a gain of 16.4% recorded by the industry it belongs to.
The application in the EU was based on three studies - phase III VOYAGE 1, VOYAGE 2 and NAVIGATE - evaluating the efficacy and safety of guselkumab, an anti-IL-23 human monoclonal antibody, administered by subcutaneous injection for the treatment of adults with moderate-to-severe plaque psoriasis.
Data from the VOYAGE 2 trial (n=992) showed that significantly higher proportion of patients with moderate-to-severe plaque psoriasis treated with guselkumab achieved high rates of skin clearance compared to those receiving placebo. Around 70% of the patients receiving guselkumab achieved at least 90% clearer skin versus 2.4% on placebo.
The VOYAGE 2 trial evaluated guselkumab versus AbbVie, Inc.'s ABBV blockbuster drug, Humira. The study demonstrated the statistically significant efficacy of guselkumab compared to Humira at week 16, which was maintained through 24 weeks of treatment. Almost 46.8% of the patients treated with Humira achieved at least 90% clearer skin versus 70% for guselkumab.
The NAVIGATE (n=871) study evaluated the efficacy and safety of switching to guselkumab in moderate-to-severe plaque psoriasis patients who were not achieving clear or almost clear skin with J&J's other plaque psoriasis medicine, Stelara. Data from the study showed that patients who switched to guselkumab showed significantly greater improvements in skin clearance compared with patients who continued to receive Stelara.
Meanwhile, a phase III head-to-head study of Tremfya against Novartis AG's NVS Cosentyx for moderate-to-severe plaque psoriasis is ongoing. Also, a phase III study evaluating guselkumab in moderate-to-severely active psoriatic arthritis is also ongoing.
J&J had previously mentioned that Tremfya has blockbuster potential and could rake in sales of more than $1 billion.
J&J carries a Zacks Rank #3 (Hold).
Stocks to Consider
A better-ranked biotech stock is Alexion Pharmaceuticals, Inc. ALXN , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Alexion have gained 19.9% year to date. The Zacks Consensus Estimate for 2017 and 2018 increased 5.2% and 7.5%, respectively, over the past 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. | The VOYAGE 2 trial evaluated guselkumab versus AbbVie, Inc.'s ABBV blockbuster drug, Humira. 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 Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. The drug was approved in the United States in July this year and is marketed by the trade name of Tremfya for the treatment of this immune system related skin disorder. | The VOYAGE 2 trial evaluated guselkumab versus AbbVie, Inc.'s ABBV blockbuster drug, Humira. 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 Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. Data from the VOYAGE 2 trial (n=992) showed that significantly higher proportion of patients with moderate-to-severe plaque psoriasis treated with guselkumab achieved high rates of skin clearance compared to those receiving placebo. | 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 Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. The VOYAGE 2 trial evaluated guselkumab versus AbbVie, Inc.'s ABBV blockbuster drug, Humira. Data from the VOYAGE 2 trial (n=992) showed that significantly higher proportion of patients with moderate-to-severe plaque psoriasis treated with guselkumab achieved high rates of skin clearance compared to those receiving placebo. | The VOYAGE 2 trial evaluated guselkumab versus AbbVie, Inc.'s ABBV blockbuster drug, Humira. 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 Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report To read this article on Zacks.com click here. So far this year, J&J's share price has increased 16.7%, comparing favorably with a gain of 16.4% recorded by the industry it belongs to. |
25988.0 | 2017-09-18 00:00:00 UTC | WisdomTree U.S. Quality Dividend Growth Fund Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/wisdomtree-us-quality-dividend-growth-fund-experiences-big-inflow-2017-09-18 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $253.8 million dollar inflow -- that's a 18.5% increase week over week in outstanding units (from 36,300,000 to 43,000,000). Among the largest underlying components of DGRW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.1%, Altria Group Inc (Symbol: MO) is trading flat, and 3M Co (Symbol: MMM) is lower by about 0.2%. For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average:
Looking at the chart above, DGRW's low point in its 52 week range is $31.06 per share, with $38.08 as the 52 week high point - that compares with a last trade of $38.04. 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 DGRW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.1%, Altria Group Inc (Symbol: MO) is trading flat, and 3M Co (Symbol: MMM) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $253.8 million dollar inflow -- that's a 18.5% increase week over week in outstanding units (from 36,300,000 to 43,000,000). 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 DGRW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.1%, Altria Group Inc (Symbol: MO) is trading flat, and 3M Co (Symbol: MMM) is lower by about 0.2%. For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average: Looking at the chart above, DGRW's low point in its 52 week range is $31.06 per share, with $38.08 as the 52 week high point - that compares with a last trade of $38.04. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of DGRW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.1%, Altria Group Inc (Symbol: MO) is trading flat, and 3M Co (Symbol: MMM) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $253.8 million dollar inflow -- that's a 18.5% increase week over week in outstanding units (from 36,300,000 to 43,000,000). For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average: Looking at the chart above, DGRW's low point in its 52 week range is $31.06 per share, with $38.08 as the 52 week high point - that compares with a last trade of $38.04. | Among the largest underlying components of DGRW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.1%, Altria Group Inc (Symbol: MO) is trading flat, and 3M Co (Symbol: MMM) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $253.8 million dollar inflow -- that's a 18.5% increase week over week in outstanding units (from 36,300,000 to 43,000,000). For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average: Looking at the chart above, DGRW's low point in its 52 week range is $31.06 per share, with $38.08 as the 52 week high point - that compares with a last trade of $38.04. |
25989.0 | 2017-09-17 00:00:00 UTC | 10 Rock-Solid Reasons Johnson & Johnson's Near-Term Future Looks Bright | ABBV | https://www.nasdaq.com/articles/10-rock-solid-reasons-johnson-johnsons-near-term-future-looks-bright-2017-09-17 | nan | nan | Johnson & Johnson (NYSE: JNJ) reported anemic overall sales growth in the first half of 2017. The big healthcare company even saw a decline in year-over-year earnings during the period. Perhaps the most surprising disappointment of all was that pharmaceutical segment revenue was flat compared with the first half of last year.
Does all of this portend dark days ahead for J&J? Not at all. In fact, the stock has risen faster than the S&P 500 so far this year. Why? Probably because smart investors recognize that the near-term future for Johnson & Johnson looks pretty bright. Here are 10 rock-solid reasons that's the case.
1. Easier year-over-year comparisons
Year-over-year comparisons in the first half of 2017 were weighed down in large part because of some one-time factors. Johnson & Johnson CFO Dominic Caruso explained at the Morgan Stanley healthcare conference Wednesday that adjustments to rebate reserves in the first two quarters of 2016 gave the company a bump that negatively affected year-over-year comparisons by 3%. This won't be an issue in the future.
2. Slower-than-expected erosion of Remicade sales
Caruso said J&J had initially projected that competition from biosimilars would reduce Remicade sales by 10% to 15%. So far, the actual impact has been closer to 5%. One reason is that the company has been able to effectively negotiate contracts in advance that boost Remicade sales. Another is that rivals Merck and Pfizer haven't slashed their prices for biosimilars enough to be a huge incentive for payers to switch. Also, Pfizer's data only showed clinical benefit in rheumatoid arthritis, but half of Remicade's revenue stems from gastrointestinal indications. All of this combined means more gradual and slower sales erosion than expected.
3. Fewer fears about radical drug-pricing changes
President Trump's public comments and tweets caused turmoil for pharmaceutical stocks earlier this year . However, Caruso noted in his comments at the Morgan Stanley conference that "the rhetoric has died down quite a bit." He said that there is now a greater understanding of the complexity of the pharmaceutical market. While Caruso acknowledged that "pressure is still there," fears about drastic actions by the White House are markedly lower than in the first half of 2017. That's good news for big pharma stocks like J&J.
4. Huge opportunity for Stelara in Crohn's disease
Stelara is on track to rake in $3.6 billion in 2017. Caruso thinks that the trajectory for the drug is going to get even better. He said clinical data for Stelara in treating Crohn's disease was "remarkable" and so good that J&J believes the drug will be an even bigger winner in Crohn's disease than Remicade has been.
5. Potential to double patients for Xarelto
Johnson & Johnson hopes to win FDA approval for an additional indication for Xarelto in treating coronary and peripheral artery disease in mid-2018. Caruso said the company thinks the patient population for Xarelto could be two to three times larger if the approval is obtained -- which seems likely. That could be huge for a drug that's already on pace to generate more than $2 billion this year.
6. Tremendous growth for Imbruvica
Sales for cancer drug Imbruvica soared nearly 55% in the first half of 2017. Caruso noted that continued growth for Imbruvica is a something investors should watch in the days ahead. Market research firm projects that Imbruvica will generate annual revenue of $7.5 billion by 2022, ranking it as the No. 4 top-selling cancer drug in the world . While J&J and partner AbbVie split the revenue, sustained momentum for Imbruvica looks to be a solid tailwind for both companies in the years to come.
7. Even greater growth for Darzalex
As great as sales growth for Imbruvica is, growth for Darzalex is even better. The multiple myeloma drug is well on its way to blockbuster sales status, with revenue of more than $550 million in the first half of this year, compared with a little over $209 million in the prior-year period.
8. Pruning lower-growth medical-device assets
What about J&J's medical-device business? Caruso acknowledged that uncertainty over the outcome of Obamacare, "consternation over the new healthcare bill," and the effect of patients postponing procedures until later in the year because of high-deductible plans contributed to some sluggishness for the company's medical-device segment earlier in 2017. However, those issues shouldn't be problematic in the second half of the year. More important, Caruso said that J&J was "pruning lower-growth assets" in the medical-devices unit, a move that bodes well for the future.
9. Only a temporary lull in the consumer business
Caruso also stated that there has been a "lull" for J&J's consumer business, but he said it would only be temporary. He noted that there were some significant headwinds for the consumer unit in China and India this year that wouldn't be factors in 2018. He also admitted that online shopping was taking a toll on many in the industry, including J&J. However, he said that the company is adapting and that "it's only a matter of time" before the outlook improves.
10. More acquisitions could be coming
Perhaps the easiest way for Johnson & Johnson to turbocharge its consumer business would be through an acquisition. Caruso said the consumer unit of a larger corporation could be "a logical choice" for J&J to buy. While he said there weren't too many of these units left, Germany-based Merck KGaA (not to be confused with the U.S.-based Merck) has publicly stated that it's considering selling its consumer healthcare business. Johnson & Johnson wouldn't wait for U.S. corporate tax reform to make a deal if a good one were to be found, Caruso said. While it's not a certainty that J&J will make a big acquisition soon, the company is in excellent financial position to do so.
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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. | While J&J and partner AbbVie split the revenue, sustained momentum for Imbruvica looks to be a solid tailwind for both companies in the years to come. *Stock Advisor returns as of September 5, 2017 Keith Speights owns shares of AbbVie and Pfizer. Also, Pfizer's data only showed clinical benefit in rheumatoid arthritis, but half of Remicade's revenue stems from gastrointestinal indications. | While J&J and partner AbbVie split the revenue, sustained momentum for Imbruvica looks to be a solid tailwind for both companies in the years to come. *Stock Advisor returns as of September 5, 2017 Keith Speights owns shares of AbbVie and Pfizer. He said clinical data for Stelara in treating Crohn's disease was "remarkable" and so good that J&J believes the drug will be an even bigger winner in Crohn's disease than Remicade has been. | While J&J and partner AbbVie split the revenue, sustained momentum for Imbruvica looks to be a solid tailwind for both companies in the years to come. *Stock Advisor returns as of September 5, 2017 Keith Speights owns shares of AbbVie and Pfizer. Johnson & Johnson CFO Dominic Caruso explained at the Morgan Stanley healthcare conference Wednesday that adjustments to rebate reserves in the first two quarters of 2016 gave the company a bump that negatively affected year-over-year comparisons by 3%. | While J&J and partner AbbVie split the revenue, sustained momentum for Imbruvica looks to be a solid tailwind for both companies in the years to come. *Stock Advisor returns as of September 5, 2017 Keith Speights owns shares of AbbVie and Pfizer. Perhaps the most surprising disappointment of all was that pharmaceutical segment revenue was flat compared with the first half of last year. |
25990.0 | 2017-09-15 00:00:00 UTC | Notable Friday Option Activity: ABBV, UAA, HOME | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity-abbv-uaa-home-2017-09-15 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 33,957 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 6.8 million shares. Particularly high volume was seen for the $87 strike call option expiring September 15, 2017 , with 2,639 contracts trading so far today, representing approximately 263,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $87 strike highlighted in orange:
Under Armour Inc (Symbol: UAA) saw options trading volume of 19,761 contracts, representing approximately 2.0 million underlying shares or approximately 48.6% of UAA's average daily trading volume over the past month, of 4.1 million shares. Especially high volume was seen for the $25 strike put option expiring October 20, 2017 , with 3,707 contracts trading so far today, representing approximately 370,700 underlying shares of UAA. Below is a chart showing UAA's trailing twelve month trading history, with the $25 strike highlighted in orange:
And At Home Group Inc (Symbol: HOME) saw options trading volume of 1,646 contracts, representing approximately 164,600 underlying shares or approximately 48.3% of HOME's average daily trading volume over the past month, of 341,010 shares. Particularly high volume was seen for the $25 strike call option expiring December 15, 2017 , with 720 contracts trading so far today, representing approximately 72,000 underlying shares of HOME. Below is a chart showing HOME's trailing twelve month trading history, with the $25 strike highlighted in orange:
For the various different available expirations for ABBV options , UAA options , or HOME options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $87 strike call option expiring September 15, 2017 , with 2,639 contracts trading so far today, representing approximately 263,900 underlying shares of ABBV. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 33,957 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 6.8 million shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 33,957 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $87 strike highlighted in orange: Under Armour Inc (Symbol: UAA) saw options trading volume of 19,761 contracts, representing approximately 2.0 million underlying shares or approximately 48.6% of UAA's average daily trading volume over the past month, of 4.1 million shares. That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 6.8 million shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 33,957 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $87 strike highlighted in orange: Under Armour Inc (Symbol: UAA) saw options trading volume of 19,761 contracts, representing approximately 2.0 million underlying shares or approximately 48.6% of UAA's average daily trading volume over the past month, of 4.1 million shares. That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 6.8 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $87 strike highlighted in orange: Under Armour Inc (Symbol: UAA) saw options trading volume of 19,761 contracts, representing approximately 2.0 million underlying shares or approximately 48.6% of UAA's average daily trading volume over the past month, of 4.1 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 33,957 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.7% of ABBV's average daily trading volume over the past month, of 6.8 million shares. |
25991.0 | 2017-09-14 00:00:00 UTC | How Safe Is Abbott Labs' Dividend? | ABBV | https://www.nasdaq.com/articles/how-safe-abbott-labs-dividend-2017-09-14 | nan | nan | Abbott Laboratories (NYSE: ABT) has a long history of serving the healthcare community with its products. For much of its history, Abbott was a true healthcare conglomerate, producing both pharmaceuticals and medical devices to serve a large patient population. With the company's spinoff of its proprietary pharmaceutical business into AbbVie (NYSE: ABBV) , the continuing Abbott Labs now focuses on medical devices and generic pharmaceuticals. That focus hasn't prevented the stock from hitting new all-time record highs, but it has raised questions from time to time about whether the dividend growth that Abbott enjoyed in the past is sustainable for the more-focused company going forward. Let's take a closer look at Abbott Labs to see whether investors can be confident in its ability to keep its dividend moving higher.
Dividend stats on Abbott Labs
Data source: Yahoo! Finance. Last increase refers to ex-dividend date. * After accounting for AbbVie spinoff.
Dividend yield
Abbott Labs has a yield of 2%, which matches up well with the S&P 500 's current average dividend yield. However, it does mark a decline from the stock's typical yield before it spun off AbbVie. Immediately before the split, Abbott's yield was consistently between 3% and 4%. Since the spinoff, yields have ranged from roughly 1.5% to 2.5%, putting the current dividend right in the middle of Abbott's typical post-spinoff level.
Payout ratio
Abbott Labs has seen its payout ratio skyrocket recently, dramatically exceeding its more typical range of around 30% to 60%. However, the rise has been generally attributable to one-off negative impacts on its earnings, and investors fully expect the company to recover and see its earnings get back to more typical levels in the next year or two. If those expectations come to pass, then they imply a future payout ratio of 35% to 45%, and that would put Abbott back in a comfortable zone for dividend investors.
Dividend growth
Abbott Labs has put together an impressive track record of dividend growth, with 45 straight years of rising payouts after allowing for the spinoff of AbbVie. Throughout most of that history, the growth rate in Abbott's dividend has been impressive. You can see below that Abbott has changed that trend in its most recent boost, which amounted to just half a cent or less than 2%. Again, the temporary hit to earnings likely motivated the less aggressive increase, but profit recovery should help Abbott to restore healthier growth rates in 2018 and beyond.
ABT Dividend data by YCharts .
What's happened with Abbott Labs lately?
Abbott Labs has worked hard to maintain its growth in recent years, and despite headwinds in the medical device space, the company's efforts have shown substantial success. In its most recent quarter, Abbott reported a 2.9% rise in worldwide sales, with sizable gains in the diabetes, electrophysiology, neuromodulation, and structural heart focus areas. Abbott raised its full-year adjusted earnings guidance, and it believes that it has tapped into some promising opportunities that could push growth in the future.
In particular, Abbott's acquisition of St. Jude Medical has been a big advance for the company. The combination produced considerable complementary impacts on key market areas, with the combined company holding No. 1 or No. 2 positions in nearly every key cardiovascular device market. Expense savings have also been a key driver of better results. Although costs related to the merger were primarily responsible for depressed earnings -- and likely played a role in Abbott's decision to keep its dividend growth modest this year -- the promise of better gains in the future warrant the investment.
What to expect from Abbott Labs
Abbott Labs has done a good job of finding new avenues for growth in its post-spinoff business, and shareholders have reaped the rewards. Even with some warning signs in its dividend that have raised concerns, Abbott Labs appears to be doing everything it needs to in order to ensure that it will be able to keep its dividend payments safe far into the future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With the company's spinoff of its proprietary pharmaceutical business into AbbVie (NYSE: ABBV) , the continuing Abbott Labs now focuses on medical devices and generic pharmaceuticals. * After accounting for AbbVie spinoff. However, it does mark a decline from the stock's typical yield before it spun off AbbVie. | With the company's spinoff of its proprietary pharmaceutical business into AbbVie (NYSE: ABBV) , the continuing Abbott Labs now focuses on medical devices and generic pharmaceuticals. Dividend growth Abbott Labs has put together an impressive track record of dividend growth, with 45 straight years of rising payouts after allowing for the spinoff of AbbVie. * After accounting for AbbVie spinoff. | Dividend growth Abbott Labs has put together an impressive track record of dividend growth, with 45 straight years of rising payouts after allowing for the spinoff of AbbVie. With the company's spinoff of its proprietary pharmaceutical business into AbbVie (NYSE: ABBV) , the continuing Abbott Labs now focuses on medical devices and generic pharmaceuticals. * After accounting for AbbVie spinoff. | Dividend growth Abbott Labs has put together an impressive track record of dividend growth, with 45 straight years of rising payouts after allowing for the spinoff of AbbVie. With the company's spinoff of its proprietary pharmaceutical business into AbbVie (NYSE: ABBV) , the continuing Abbott Labs now focuses on medical devices and generic pharmaceuticals. * After accounting for AbbVie spinoff. |
25992.0 | 2017-09-14 00:00:00 UTC | Novartis Announces Long-Term Data on Psoriasis Drug Cosentyx | ABBV | https://www.nasdaq.com/articles/novartis-announces-long-term-data-on-psoriasis-drug-cosentyx-2017-09-14 | nan | nan | Novartis AGNVS announced long-lasting skin clearance rates of Cosentyx in plaque psoriasis patients from a phase III study, which evaluated the drug for five years. Cosentyx is the first and only fully human IL-17A inhibitor to achieve sustained skin clearance rates over five years, reinforcing its long-term favorable impact.
Data from the study showed that Cosentyx maintained 100% Psoriasis Area and Severity Index (PASI) 90 and PASI 100, a measure of skin clearance, from year one to year five in patients with moderate-to-severe plaque psoriasis.
Data from this study were presented at the 26th European Academy of Dermatology and Venereology (EADV) Congress in Geneva, Switzerland.
Shares of the company have outperformed the industry , having surged 17.4% so far this year, while the industry increased 16%.
The drug is approved in the United Sates for the treatment of adults with active ankylosing spondylitis, active psoriatic arthritis (PsA) and moderate-to-severe plaque psoriasis. Since its launch, the drug has been prescribed to more than 100,000 patients. Cosentyx achieved blockbuster status in 2016, recording $1.1 billion in sales. In first-half 2017, it generated solid sales of $900 million.
The long-term safety and efficacy data of the drug is expected to further boost its growth.
Meanwhile, in the second quarter, the drug was granted approval in Europe for a label update to include 52-week data from the CLEAR study. It demonstrated the long-term superiority of Cosentyx compared to Johnson & Johnson's JNJ Stelara in psoriasis. Also, patient recruitment is underway for the new head-to-head clinical trial, EXCEED, to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA.
Novartis expects the next growth phase to begin in 2018 driven by Cosentyx (in psoriasis, psoriatic arthritis and ankylosing spondylitis indications), Entresto, Kisqali and a deep pipeline with candidates like BAF312, AMG 334, RTH258. Moreover, the approval of Kymriah (CTL019) in August made Novartis the first company to bring CAR-T cell therapy to treat cancer. Going forward, we expect that the approval of new drugs and label expansion of existing ones to bode well for Novartis.
Novartis AG Price and Consensus
Novartis AG Price and Consensus | Novartis AG Quote
Zacks Rank & Stock to Consider
Novartis has a Zacks Rank #3 (Hold). Aduro Biotech, Inc. ADRO is a better-ranked biomedical company with a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Aduro's loss estimates narrowed 9.6% to $1.32 for 2017 and 20% to $1.24 for 2018 over the last 60 days. The company delivered an average earnings beat of 2.53% for the four trailing quarters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, patient recruitment is underway for the new head-to-head clinical trial, EXCEED, to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA. 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 Aduro Biotech, Inc. (ADRO): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis AGNVS announced long-lasting skin clearance rates of Cosentyx in plaque psoriasis patients from a phase III study, which evaluated the drug for five years. | 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 Aduro Biotech, Inc. (ADRO): Free Stock Analysis Report To read this article on Zacks.com click here. Also, patient recruitment is underway for the new head-to-head clinical trial, EXCEED, to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA. The drug is approved in the United Sates for the treatment of adults with active ankylosing spondylitis, active psoriatic arthritis (PsA) and moderate-to-severe plaque 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 Aduro Biotech, Inc. (ADRO): Free Stock Analysis Report To read this article on Zacks.com click here. Also, patient recruitment is underway for the new head-to-head clinical trial, EXCEED, to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA. Novartis AGNVS announced long-lasting skin clearance rates of Cosentyx in plaque psoriasis patients from a phase III study, which evaluated the drug for five years. | Also, patient recruitment is underway for the new head-to-head clinical trial, EXCEED, to evaluate the superiority of Cosentyx versus AbbVie's ABBV Humira in PsA. 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 Aduro Biotech, Inc. (ADRO): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis AGNVS announced long-lasting skin clearance rates of Cosentyx in plaque psoriasis patients from a phase III study, which evaluated the drug for five years. |
25993.0 | 2017-09-13 00:00:00 UTC | Biotech Stock Roundup: Alexion to Cut Jobs, Streamline Operations, Kura Up on Cancer Data | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-alexion-cut-jobs-streamline-operations-kura-cancer-data-2017-09-13 | nan | nan | There were quite a few major developments this week with Alexion Pharmaceuticals ALXN announcing a restructuring plan that will see the company cutting jobs and streamlining operations. Meanwhile, data was presented by companies like Regeneron Pharmaceuticals REGN , AbbVie ABBV and Kura Oncology KURA among others.
Recap of the Week's Most Important Stories
Alexion to Cut Jobs, Shift Headquarters: Alexion announced a restructuring plan which will see the company cutting down its global workforce by 20%, closing down several sites (including the Rhode Island manufacturing facility and certain regional and country-based offices) and shifting its headquarters to Boston (by mid-2018). With these efforts, the company expects to generate annual pre-tax savings of about $250 million by 2019. Savings will be used for growth opportunities and optimization. Alexion is guiding toward operating margin growth of 50% in 2019 and expects to reinvest about $100 million every year in R&D starting from 2018.
Alexion is focusing on growing and maximizing its presence in the rare disease business. Core areas of focus include hematology, nephrology, neurology and metabolic disorders. As a result of the restructuring, the company expects to incur pre-tax costs of about $340 million - $440 million of which $240 million - $300 million will be recorded this year.
Alexion is a Zacks Rank #1 (Strong Buy) stock - you can see the complete list of today's Zacks #1 Rank stocks here . The company has gained 17.8% year to date, outperforming the industry's 15.9% rally.
Regeneron/Sanofi Asthma Drug Positive in Phase III: Regeneron and partner Sanofi announced positive top-line results from a late-stage study on Dupixent (dupilumab) for uncontrolled persistent asthma.
Dupixent was found to reduce severe asthma attacks and improve lung function. While overall results were good, less activity was observed in patients with lower eosinophilic cells. Regeneron and Sanofi intend to file for FDA approval by year end. The asthma market is huge with about one million people in the United States living with uncontrolled, persistent asthma despite being treated with standard therapies. Dupixent, which has blockbuster potential, is currently approved for eczema and is being evaluated for additional indications like pediatric atopic dermatitis, nasal polyps and eosinophilic esophagitis (Read more: Regeneron/Sanofi's Dupixent Asthma Study Meets Endpoints ).
AbbVie's Upadacitinib Positive in Studies: AbbVie came out with positive data with the company saying that its experimental oral JAK1-selective inhibitor, upadacitinib (ABT-494), met all primary and ranked secondary endpoints in a late-stage study for moderate to severe rheumatoid arthritis (Read more: AbbVie's RA Candidate Meets Primary Endpoint in Phase III ). The company also presented promising data on upadacitinib for atopic dermatitis or eczema from a phase IIb study (Read more: AbbVie's Upadacitinib Meets Primary Endpoint in Phase IIb ). Upadacitinib is being evaluated for additional indications including psoriatic arthritis, Crohn's disease, ulcerative colitis and ankylosing spondylitis.
Intercept Hit by "Dear Doctor" Letter: Intercept Pharmaceuticals's ICPT shares were down on a "Dear Doctor" letter issued by the company related to the use of its sole marketed product, Ocaliva. The letter lays emphasis on the use of the recommended dosage on the label as liver injury, liver decompensation, liver failure, and death were reported when Ocaliva was dosed more frequently than recommended. Ocaliva, approved in May 2016 for primary biliary cholangitis ("PBC") in patients with moderate or severe hepatic impairment (Child-Pugh B and C), brought in sales of $30.4 million in the second quarter of 2017. While Intercept's shares were down 16.1%, the company said on a recent call that it does not expect any label changes or a boxed warning.
Sage Drug Disappoints in Late-Stage Study: Sage Therapeutics's SAGE shares were down 13.7% on disappointing top-line data from a late-stage study on brexanolone (SAGE-547) for treatment super-refractory status epilepticus ("SRSE"). The study failed to meet the primary endpoint. Brexanolone is currently in late-stage development for the treatment of postpartum depression ("PPD").
Kura Soars on Promising Cancer Study Data: Kura's shares jumped more than 70% on positive topline results from a mid-stage study on its lead pipeline candidate, tipifarnib, in patients with HRAS mutant relapsed or refractory squamous cell carcinomas of the head and neck ("HNSCC"). The primary endpoint was achieved before the completion of enrollment.
Performance
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
The Nasdaq Biotechnology Index gained 0.6% over the last five trading sessions. Among major biotech stocks, Amgen was up 8.1% while Regeneron lost 10.1%. Over the last six months, Vertex VRTX was up 66.9% (See the last biotech stock roundup here: Cellectis Down on Clinical Hold, Insmed Soars on Positive Data ).
What's Next in the Biotech World?
Watch out for the usual regulatory and pipeline updates. A response from the FDA regarding the approval status of Amgen and Allergan's biosimilar version of Roche's cancer drug, Avastin (bevacizumab), should be out shortly. The companies got a favorable vote from an FDA advisory panel recently.
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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, data was presented by companies like Regeneron Pharmaceuticals REGN , AbbVie ABBV and Kura Oncology KURA among others. AbbVie's Upadacitinib Positive in Studies: AbbVie came out with positive data with the company saying that its experimental oral JAK1-selective inhibitor, upadacitinib (ABT-494), met all primary and ranked secondary endpoints in a late-stage study for moderate to severe rheumatoid arthritis (Read more: AbbVie's RA Candidate Meets Primary Endpoint in Phase III ). The company also presented promising data on upadacitinib for atopic dermatitis or eczema from a phase IIb study (Read more: AbbVie's Upadacitinib Meets Primary Endpoint in Phase IIb ). | The company also presented promising data on upadacitinib for atopic dermatitis or eczema from a phase IIb study (Read more: AbbVie's Upadacitinib Meets Primary Endpoint in Phase IIb ). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Kura Oncology, Inc. (KURA): Free Stock Analysis Report Intercept Pharmaceuticals, Inc. (ICPT): Free Stock Analysis Report Sage Therapeutics, Inc. (SAGE): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, data was presented by companies like Regeneron Pharmaceuticals REGN , AbbVie ABBV and Kura Oncology KURA among others. | AbbVie's Upadacitinib Positive in Studies: AbbVie came out with positive data with the company saying that its experimental oral JAK1-selective inhibitor, upadacitinib (ABT-494), met all primary and ranked secondary endpoints in a late-stage study for moderate to severe rheumatoid arthritis (Read more: AbbVie's RA Candidate Meets Primary Endpoint in Phase III ). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Kura Oncology, Inc. (KURA): Free Stock Analysis Report Intercept Pharmaceuticals, Inc. (ICPT): Free Stock Analysis Report Sage Therapeutics, Inc. (SAGE): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, data was presented by companies like Regeneron Pharmaceuticals REGN , AbbVie ABBV and Kura Oncology KURA among others. | AbbVie's Upadacitinib Positive in Studies: AbbVie came out with positive data with the company saying that its experimental oral JAK1-selective inhibitor, upadacitinib (ABT-494), met all primary and ranked secondary endpoints in a late-stage study for moderate to severe rheumatoid arthritis (Read more: AbbVie's RA Candidate Meets Primary Endpoint in Phase III ). Meanwhile, data was presented by companies like Regeneron Pharmaceuticals REGN , AbbVie ABBV and Kura Oncology KURA among others. The company also presented promising data on upadacitinib for atopic dermatitis or eczema from a phase IIb study (Read more: AbbVie's Upadacitinib Meets Primary Endpoint in Phase IIb ). |
25994.0 | 2017-09-13 00:00:00 UTC | 5 Compelling Reasons Why AbbVie's Dividend Will Keep on Growing | ABBV | https://www.nasdaq.com/articles/5-compelling-reasons-why-abbvies-dividend-will-keep-growing-2017-09-13 | nan | nan | What's the best dividend stock in all of big pharma? I would argue that the hands-down winner is AbbVie (NYSE: ABBV) . The big biotech has the total package for dividend-seeking investors: a high yield, manageable payout ratio, and a long record of dividend increases.
I listened to several members of AbbVie's executive team, including CEO Rick Gonzalez, talk about their company's future at the Morgan Stanley healthcare conference on Tuesday. It was an interesting discussion. One of the biggest takeaways I had as someone who regularly covers AbbVie is this: The dividend will keep on growing. Here are five reasons why.
1. Humira remains the gold standard
Amgen (NASDAQ: AMGN) and Pfizer are encountering challenges in propping up sales for Enbrel and retaining the autoimmune disease drug's formulary position, but that hasn't seen to be a problem for AbbVie with Humira. When asked why that's the case, Gonzalez gave a simple reason: Humira is typically still "the gold standard" in its target indications.
Gonzalez noted that AbbVie continues to gain market share, and perhaps more impressively, grow the market for Humira. He said that Humira's status as a premiere drug that meets patients' needs allows the company to better negotiate for position on payers' drug formularies.
While Amgen won Food and Drug Administration approval for its biosimilar to Humira last year, the product still hasn't been launched yet. AbbVie and Amgen will face off in court in November 2019. Gonzalez said that he's confident that AbbVie will be able to hold off rivals in the U.S. through 2020 thanks to the broad patent portfolio held for Humira.
What does this have to do with AbbVie's dividend? A lot. Humira generated more than $16 billion in sales last year, roughly 63% of AbbVie's total revenue. If Humira continues to do well, so will AbbVie. And that means more money to return to shareholders in the form of dividends.
2. Great new products
Even though Humira remains the most important asset for AbbVie, the company has new products either on the market or that should soon be on the market that hold the potential to be huge winners. Imbruvica stands at the top of that list, with sales growing nearly 44% year over year in the first half of 2017.
AbbVie's head of research and development Mike Severino mentioned two other products that should be key for the company: Mavyret and elagolix. In August, the FDA granted approval to Mavyret in treating all six hepatitis C genotypes. AbbVie submitted a new drug application (NDA) for elagolix in treating endometriosis on Sept. 6.
Imbruvica is already a blockbuster. Mavyret and elagolix should also join the club in the not-too-distant future. That means more revenue and earnings growth for AbbVie -- and more money for dividend increases.
3. Impressive pipeline to drive earnings growth
Thanks in part to acquisitions over the last couple of years, AbbVie claims one of the strongest pipelines in the biopharmaceutical industry . Severino talked about several of the company's pipeline candidates for which data readouts are on the way.
In the immunology area, AbbVie has two especially promising experimental drugs. Severino said that more late-stage data is coming in early 2018 for upadacitinib (also referred to as ABT-494) in treating rheumatoid arthritis. Results from three late-stage studies of risankizumab are expected by the end of 2017 with a fourth study reading out in 2018.
Severino also highlighted a couple of AbbVie's top oncology candidates. Venclexta is already approved as a monotherapy in treating chronic lymphocytic leukemia (CLL) patients with a specific genetic mutation. The Murano study of a combination of Venclexta and Roche 's Rituxan could be key in enabling AbbVie to capture a larger share of the CLL market. AbbVie also expects to provide an update on results from an important study of Rova-T in treating small cell lung cancer by the end of 2017.
At some point, AbbVie will face stiff competition for Humira. Having such a robust pipeline should allow the company to keep the dividends flowing when that day comes.
4. Management committed to dividend hikes
There are some companies that have greater cash flow and cash stockpiles than AbbVie does that don't pay out nearly as rich of a dividend. Amgen, for example, fits that category. The difference is that AbbVie prioritizes its dividend more heavily than many of its peers.
It was great to hear AbbVie CFO Bill Chase state not only is a dividend very important to the company's identify but so is a growing dividend. Chase said that investors should expect to see "nice dividend growth" in the future. He clarified that the dividend increases might not be "one-for-one with earnings growth," but would still be very attractive.
5. Track record of delivering
All of the above factors depend on AbbVie's management team being able to execute on its strategy. Defending Humira's market position, launching new products, and increasing dividends requires action and not just talk. The good news is that AbbVie has a great track record of delivering on its promises.
In 2015, AbbVie's management team provided a relatively long-term outlook. Gonzalez pointed out that every pipeline event since that time that has played out has either achieved or exceeded expectations. AbbVie has, according to Gonzalez, ranked either No. 1 or No. 2 in the industry for total shareholder return, revenue growth, and earnings-per-share growth. The company's proven ability to do what it says it will do should give shareholders confidence that when AbbVie says its dividend will keep growing, that's exactly what will happen.
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Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I listened to several members of AbbVie's executive team, including CEO Rick Gonzalez, talk about their company's future at the Morgan Stanley healthcare conference on Tuesday. The Murano study of a combination of Venclexta and Roche 's Rituxan could be key in enabling AbbVie to capture a larger share of the CLL market. I would argue that the hands-down winner is AbbVie (NYSE: ABBV) . | Humira remains the gold standard Amgen (NASDAQ: AMGN) and Pfizer are encountering challenges in propping up sales for Enbrel and retaining the autoimmune disease drug's formulary position, but that hasn't seen to be a problem for AbbVie with Humira. I would argue that the hands-down winner is AbbVie (NYSE: ABBV) . I listened to several members of AbbVie's executive team, including CEO Rick Gonzalez, talk about their company's future at the Morgan Stanley healthcare conference on Tuesday. | Humira remains the gold standard Amgen (NASDAQ: AMGN) and Pfizer are encountering challenges in propping up sales for Enbrel and retaining the autoimmune disease drug's formulary position, but that hasn't seen to be a problem for AbbVie with Humira. Management committed to dividend hikes There are some companies that have greater cash flow and cash stockpiles than AbbVie does that don't pay out nearly as rich of a dividend. It was great to hear AbbVie CFO Bill Chase state not only is a dividend very important to the company's identify but so is a growing dividend. | What does this have to do with AbbVie's dividend? Great new products Even though Humira remains the most important asset for AbbVie, the company has new products either on the market or that should soon be on the market that hold the potential to be huge winners. I would argue that the hands-down winner is AbbVie (NYSE: ABBV) . |
25995.0 | 2017-09-12 00:00:00 UTC | AbbVie's RA Candidate Meets Primary Endpoint in Phase III | ABBV | https://www.nasdaq.com/articles/abbvies-ra-candidate-meets-primary-endpoint-in-phase-iii-2017-09-12 | nan | nan | AbbVie 's ABBV shares increased almost 2% after the company announced that its oral JAK-1 selective inhibitor, upadacitinib (ABT-494), met primary endpoints in a phase III study for treatment of patients with rheumatoid arthritis (RA).
In fact, AbbVie's shares have rallied 38.9%, outperforming the industry 's 15.8% rise so far this year.
The study met its primary endpoints with highly statistically significant and clinically meaningful results for both the doses as compared to placebo. The trial's primary endpoints were ACR20 responses and low disease activity (LDA).
The results showed that 65% of patients, receiving 15 mg and 56% of patients, administered with 30 mg dose once daily of upadacitinib, achieved ACR20 responses after 12 weeks of treatment in comparison to 28% of patients receiving placebo.
LDA was achieved by 43% and 42% of patients in the 15 mg and 30 mg dose arms, respectively, compared with 14% of patients receiving placebo. Additionally, the study met its secondary endpoints too.
Notably, SELECT-BEYOND is the second out of the six ongoing phase III studies in the SELECT RA clinical trial program, conducted on upadacitinib.
Other researches are also underway for upadacitinib for treating Crohn's disease, ulcerative colitis and atopic dermatitis.
We remind investors that last week, the company announced upadacitinib to having met primary endpoints in a phase IIb study for atopic dermatitis. The company plans to advance the candidate into phase III studies next year for the given indication.
We note that AbbVie already has a strong presence in the RA market with its blockbuster drug, Humira. However, several companies are working on developing biosimilar versions of Humira which could induce competition in the market for the company. Also, the RA market is extremely crowded including drugs like Johnson & Johnson's Simponi and UCB's Cimzia among others.
Significantly, Eli Lilly's LLY JAK inhibitor, Olumiant, was recently approved in the EU and Pfizer's PFE Xeljanz is marketed in the United States for treating RA, which might pose a strong competition for upadacitinib on approval.
Also, Amgen AMGN has already received approval to market a Humira biosimilar but the drug has not been launched yet due to ongoing litigation. If upadacitinib is approved, it may reduce the potential negative impact of Humira generics on AbbVie's top line.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie 's ABBV shares increased almost 2% after the company announced that its oral JAK-1 selective inhibitor, upadacitinib (ABT-494), met primary endpoints in a phase III study for treatment of patients with rheumatoid arthritis (RA). In fact, AbbVie's shares have rallied 38.9%, outperforming the industry 's 15.8% rise so far this year. We note that AbbVie already has a strong presence in the RA market with its blockbuster drug, Humira. | AbbVie 's ABBV shares increased almost 2% after the company announced that its oral JAK-1 selective inhibitor, upadacitinib (ABT-494), met primary endpoints in a phase III study for treatment of patients with rheumatoid arthritis (RA). AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie 's ABBV shares increased almost 2% after the company announced that its oral JAK-1 selective inhibitor, upadacitinib (ABT-494), met primary endpoints in a phase III study for treatment of patients with rheumatoid arthritis (RA). AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | We note that AbbVie already has a strong presence in the RA market with its blockbuster drug, Humira. AbbVie 's ABBV shares increased almost 2% after the company announced that its oral JAK-1 selective inhibitor, upadacitinib (ABT-494), met primary endpoints in a phase III study for treatment of patients with rheumatoid arthritis (RA). In fact, AbbVie's shares have rallied 38.9%, outperforming the industry 's 15.8% rise so far this year. |
25996.0 | 2017-09-12 00:00:00 UTC | These 3 Stocks Have Lifted Vanguard High Dividend Yield ETF in 2017 | ABBV | https://www.nasdaq.com/articles/these-3-stocks-have-lifted-vanguard-high-dividend-yield-etf-2017-2017-09-12 | nan | nan | Dividend ETFs can be extremely lucrative for income investors, and the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) has provided its investors with exposure to a host of dividend stocks with above-average yields. Unfortunately, the ETF hasn't been able to match the performance of the broader market so far this year, due in part to some large fund holdings that have lost ground . Yet a few key stocks have helped keep Vanguard High Dividend Yield from suffering overall declines. Below, we'll look at how key contributors Boeing (NYSE: BA) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) have helped the ETF's performance, and whether they can keep doing so going forward.
VYM data by YCharts .
Boeing flies higher
Boeing has done extremely well this year, seeing its stock rise by more than half from its level at the beginning of the year. The stock is a top-20 holding for Vanguard High Dividend Yield, with about 1.5% of the fund's assets invested in the aerospace giant. Industrial stocks have contributed strongly to the Vanguard dividend ETF's performance, with a 12% weighting representing about 50% more what the ETF's large-cap benchmark typically allocates to the sector.
The aerospace industry is still booming, and Boeing has seen positive results recently. The company enjoyed a huge boost in free cash flow in its most recent quarter, and even though revenue fell due to a natural ebb in commercial aircraft deliveries, improving efficiency has made Boeing more profitable . Looking ahead, Boeing expects strength for the remainder of the year, and nearly half a trillion dollars in order backlogs point to good times for the aerospace giant for the foreseeable future. Even with Boeing's soaring share price, its dividend is still strong with a 2.4% yield, and that has allowed ETF investors to get a piece of its strong returns.
McDonald's serves up solid gains
One advantage of Vanguard High Dividend Yield is the diversity of its holdings. The fund has about a 1.34% position in fast-food giant McDonald's, which is enough to get the restaurant chain just into the top 20 holdings. Consumer defensive names play a key role in the Vanguard dividend ETF, making up about 14% of the portfolio and carrying about a one-half overweight compared to the fund's large-cap benchmark.
McDonald's has reinvented itself in recent years, working to make its offerings appealing to the broadest possible set of customers. The relaunch of the McCafe line has underscored the importance of premium coffee drinks to the fast-food specialist, and efforts to make those products available in grocery stores could lead to greater restaurant traffic as well. In conjunction with its expansion of breakfast availability, McDonald's is being smart about its customer experience and is reaping the rewards. Shareholders who've owned positions during McDonald's 41-year streak of raising dividends know quite well just how willing the company is to share its success.
AbbVie provides a healing influence
Finally, drugmaker AbbVie is a top-25 holding in Vanguard High Dividend Yield, with about a 1.2% weighting in the fund. The pharmaceutical company is just one of many healthcare holdings for the Vanguard dividend ETF; they add up to about a 13% allocation to healthcare overall.
AbbVie brings a combination of well-established drugs and potential future blockbusters to the table. The company's Humira autoimmune disease fighter remains its most important compound, but AbbVie's pipeline includes key players in the cancer space, as well as further advances against autoimmune disorders. Competition abounds, but a 44-year streak of rising dividends gives AbbVie the staying power it needs to be part of the Vanguard High Dividend Yield lineup.
Investors in Vanguard High Dividend Yield are used to dealing with the volatility of its individual holdings, but in the long run, they count on favorable performance from its winners to outpace any drag from its losers. With AbbVie, McDonald's, and Boeing having more room for growth, the three stocks could be invaluable in supporting the ETF's long-term returns in the future.
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Dan Caplinger owns shares of Boeing. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
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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. | Below, we'll look at how key contributors Boeing (NYSE: BA) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) have helped the ETF's performance, and whether they can keep doing so going forward. AbbVie provides a healing influence Finally, drugmaker AbbVie is a top-25 holding in Vanguard High Dividend Yield, with about a 1.2% weighting in the fund. AbbVie brings a combination of well-established drugs and potential future blockbusters to the table. | Below, we'll look at how key contributors Boeing (NYSE: BA) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) have helped the ETF's performance, and whether they can keep doing so going forward. AbbVie provides a healing influence Finally, drugmaker AbbVie is a top-25 holding in Vanguard High Dividend Yield, with about a 1.2% weighting in the fund. AbbVie brings a combination of well-established drugs and potential future blockbusters to the table. | Below, we'll look at how key contributors Boeing (NYSE: BA) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) have helped the ETF's performance, and whether they can keep doing so going forward. AbbVie provides a healing influence Finally, drugmaker AbbVie is a top-25 holding in Vanguard High Dividend Yield, with about a 1.2% weighting in the fund. AbbVie brings a combination of well-established drugs and potential future blockbusters to the table. | Below, we'll look at how key contributors Boeing (NYSE: BA) , McDonald's (NYSE: MCD) , and AbbVie (NYSE: ABBV) have helped the ETF's performance, and whether they can keep doing so going forward. AbbVie provides a healing influence Finally, drugmaker AbbVie is a top-25 holding in Vanguard High Dividend Yield, with about a 1.2% weighting in the fund. AbbVie brings a combination of well-established drugs and potential future blockbusters to the table. |
25997.0 | 2017-09-12 00:00:00 UTC | 5 Things Regeneron's CEO Said as the Biotech Stock Sank | ABBV | https://www.nasdaq.com/articles/5-things-regenerons-ceo-said-biotech-stock-sank-2017-09-12 | nan | nan | Regeneron (NASDAQ: REGN) CEO Leonard Schleifer was on the hot seat Monday at the Morgan Stanley healthcare conference. And the timing was either terrific or terrible, depending on your perspective. Regeneron stock opened more than 4% below its previous close, and things got worse during intraday trading.
The big drop came after Regeneron and partner Sanofi (NYSE: SNY) announced phase 3 results for Dupixent in treating asthma. While the study found that the drug reduced severe asthma attacks and improved lung function, some of the results raised concerns. Here's what Regeneron's CEO had to say as the biotech's stock sank.
1. About those results
Schleifer understandably played up the fact that Dupixent demonstrated a positive effect in a broad group of patients with a strong safety profile. In fact, the drug reduced severe asthma attacks in patients with 300 eosinophilic cells/microliter or greater by 67%. Dupixent also improved lung function in this group by 18%.
However, Dupixent appeared to be less effective in subgroups of patients with lower levels of eosinophilic cells. Schleifer didn't really have an answer as to why, but agreed that the results tend show better effects as levels of eosinophilic cells increased.
When asked about why phase 2 results showed a higher decline in exacerbation rates for asthma patients, Schleifer said it's too early to know what caused the difference. He did note, though, that "estimates have ranges." The bottom line, in his view, was that Regeneron and Sanofi have two studies pointing to robust proof of activity for Dupixent in treating asthma with a "clean safety profile."
2. Competitors' data
Schleifer stated that he thought data from AstraZeneca 's (NYSE: AZN) and Amgen 's (NASDAQ: AMGN) phase 2 study of tezepelumab announced last week was "pretty interesting" and "showed activity." He offered a tepid congratulations to the potential competitors before adding that he's also "interested in what wasn't talked about in that drug," referring to results from an atopic dermatitis study that haven't been highlighted by AstraZeneca.
Regeneron's CEO was even less charitable when it came to AbbVie (NYSE: ABBV) , which recently announced phase 3 results from a phase 2b study of upadacitinib in treating atopic dermatitis. Schleifer said that he's "not one to talk about other people's problems" as he mentioned AbbVie, then referred to the company's inclusion of data for Dupixent and upadacitinib on the same graph as "a pretty big sin" that was "a little annoying." He added that he "would talk about their safety data, but [he's] not that kind of person."
Some analysts think that Dupixent could lose market share to the AstraZeneca/Amgen drug and AbbVie's upadacitinib if they're both approved. One particular perceived benefit for AbbVie's drug is that it is taken orally rather than injected as Dupixent is.
3. Original agreement with Sanofi ending
Regeneron recently announced that its antibody discovery agreement with Sanofi will end at the end of 2017. This collaboration between the two companies was initially forged in 2007 and extended in 2010. When asked about this, Schleifer maintained that Regeneron and Sanofi continue to have "a very good relationship."
He went on to say that the two companies' partnership had "morphed" into a focus on immuno-oncology (I-O). Schleifer added that while Regeneron and Sanofi had a long-term partnership, there was "a limit to what [Sanofi] can do and a limit to what a company our size should do with one company."
4. Regeneron's I-O strategy
Schleifer's comments about the Sanofi relationship now focusing more on immuno-oncology led to a follow-up question about Regeneron's I-O strategy. He stated that Regeneron placed its bet on PD1 as a target rather than PD-L1 and that the data is beginning to show his company was right, a likely reference to problems experienced by AstraZeneca and others with their PD-L1 inhibitors.
Regeneron's I-O strategy, according to Schleifer, is to first get to market fast with a niche indication. The next step is to expand into other indications. After that, the company intends to start combination studies with its own pipeline candidates. Schleifer added that having internally developed drugs to use in I-O combinations was very important because of pricing concerns.
He pointed to the announcement by Regeneron and Sanofi last week that cemiplimab had received breakthrough designation from the Food and Drug Administration for treating metastatic cutaneous squamous cell carcinoma, the second-deadliest skin cancer after melanoma. Schleifer said that the companies hoped to submit the drug for approval in the first quarter of 2018 and hopefully win approval sometime next year.
5. What differentiates Regeneron
Not all of the questions for Leonard Schleifer were tough. He received at least one softball question about what differentiates Regeneron from other biopharmaceutical companies. His one-word answer: George. That response referred to Regeneron's co-founder, president, and chief scientific officer, George Yancopoulos.
Expanding on what sets Regeneron apart, Schleifer said that the company focuses on two principles: have a deep understanding of biology, and have world-class technology. Finally, he stated that the "secret sauce" for Regeneron was focusing on the long term rather than managing the business quarter by quarter. Whatever else you might think about Schleifer's answers and possible challenges for Dupixent, that secret sauce is one that all investors should follow also.
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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. | Schleifer said that he's "not one to talk about other people's problems" as he mentioned AbbVie, then referred to the company's inclusion of data for Dupixent and upadacitinib on the same graph as "a pretty big sin" that was "a little annoying." Regeneron's CEO was even less charitable when it came to AbbVie (NYSE: ABBV) , which recently announced phase 3 results from a phase 2b study of upadacitinib in treating atopic dermatitis. Some analysts think that Dupixent could lose market share to the AstraZeneca/Amgen drug and AbbVie's upadacitinib if they're both approved. | Regeneron's CEO was even less charitable when it came to AbbVie (NYSE: ABBV) , which recently announced phase 3 results from a phase 2b study of upadacitinib in treating atopic dermatitis. Schleifer said that he's "not one to talk about other people's problems" as he mentioned AbbVie, then referred to the company's inclusion of data for Dupixent and upadacitinib on the same graph as "a pretty big sin" that was "a little annoying." Some analysts think that Dupixent could lose market share to the AstraZeneca/Amgen drug and AbbVie's upadacitinib if they're both approved. | Regeneron's CEO was even less charitable when it came to AbbVie (NYSE: ABBV) , which recently announced phase 3 results from a phase 2b study of upadacitinib in treating atopic dermatitis. Schleifer said that he's "not one to talk about other people's problems" as he mentioned AbbVie, then referred to the company's inclusion of data for Dupixent and upadacitinib on the same graph as "a pretty big sin" that was "a little annoying." Some analysts think that Dupixent could lose market share to the AstraZeneca/Amgen drug and AbbVie's upadacitinib if they're both approved. | Some analysts think that Dupixent could lose market share to the AstraZeneca/Amgen drug and AbbVie's upadacitinib if they're both approved. Regeneron's CEO was even less charitable when it came to AbbVie (NYSE: ABBV) , which recently announced phase 3 results from a phase 2b study of upadacitinib in treating atopic dermatitis. Schleifer said that he's "not one to talk about other people's problems" as he mentioned AbbVie, then referred to the company's inclusion of data for Dupixent and upadacitinib on the same graph as "a pretty big sin" that was "a little annoying." |
25998.0 | 2017-09-11 00:00:00 UTC | Why Achillion Pharmaceuticals Crashed 22.2% Today | ABBV | https://www.nasdaq.com/articles/why-achillion-pharmaceuticals-crashed-222-today-2017-09-11 | nan | nan | What happened
After Johnson & Johnson (NYSE: JNJ) announced it's ending its agreement to develop Achillion Pharmaceuticals ' (NASDAQ: ACHN) hepatitis C drugs, Achillion Pharmaceuticals shares lost 22.2% of their value today.
So what
In 2015, Johnson & Johnson acquired the rights to Achillion Pharmaceuticals' hepatitis C drug pipeline. Johnson & Johnson agreed to pay Achillion Pharmaceuticals up to $1.1 billion in clinical, regulatory, and sales milestones, plus royalties on any eventual sales. It also acquired $225 million worth of Achillion Pharmaceuticals' stock.
On Sept. 9, Johnson & Johnson told Achillion Pharmaceuticals that it will no longer develop any of Achillion Pharmaceuticals' hepatitis C drugs. The company cited an increasingly competitive hepatitis C market as the reason for its decision.
Management didn't say if Johnson & Johnson is planning on selling its 18,367,346 Achillion Pharmaceuticals shares soon, but it did say that those shares are subject to a lock-up period that expires early next year.
Now what
When Johnson & Johnson licensed Achillion Pharmaceuticals' drugs, the limited hepatitis C treatments that were on the market were commanding sky-high prices. However, the launch of new hepatitis C drugs has changed the market dramatically since then, leaving the licensing decision looking like a mistake.
Doctors and patients now have multiple treatment options available to them that deliver nearly 100% functional cure rates, and prices have dropped significantly as competitors battle over market share. For example, AbbVie (NYSE: ABBV) won approval for its pan-genotype hepatitis C drug Mavyret last month, and it can cure the disease in as little as eight weeks at a cost of just $26,400 for a full treatment course. For perspective, AbbVie launched its prior-generation hepatitis C drug, Viekira Pak, at a retail price of $83,500 in 2015.
If Johnson & Johnson had kept pursuing development of Achillion Pharmaceuticals' drugs, it would have had to pay Achillion Pharmaceuticals up to $100 million in phase 3 enrollment and dosing milestones. Given the changing marketplace, Johnson & Johnson decided the market simply didn't justify that kind of investment anymore.
Undeniably, the loss of potential hepatitis C revenue is bad news for Achillion Pharmaceuticals, but the company has spent the better part of two years reinventing its R&D pipeline so that it's now focused on paroxysmal nocturnal hemoglobinuria, or PNH, a rare disease in which the immune system attacks and destroys red blood cells. Mid-stage trials on its lead PNH drug ACH-4471 are under way, and based on management's comments, it appears the PNH program will remain Achillion Pharmaceuticals' focus.
Overall, ACH-4471 targets a big market, but it's going to be a while before we know if it's effective and safe. In the meantime, Achillion Pharmaceuticals will have to spend big bucks on development without the opportunity to offset that spending with a windfall from Johnson & Johnson. Toss in the risk that Johnson & Johnson sells its shares in Achillion Pharmaceuticals, and I can't help thinking investors are better off focusing on other ideas than this one right now.
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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. | For example, AbbVie (NYSE: ABBV) won approval for its pan-genotype hepatitis C drug Mavyret last month, and it can cure the disease in as little as eight weeks at a cost of just $26,400 for a full treatment course. For perspective, AbbVie launched its prior-generation hepatitis C drug, Viekira Pak, at a retail price of $83,500 in 2015. Doctors and patients now have multiple treatment options available to them that deliver nearly 100% functional cure rates, and prices have dropped significantly as competitors battle over market share. | For example, AbbVie (NYSE: ABBV) won approval for its pan-genotype hepatitis C drug Mavyret last month, and it can cure the disease in as little as eight weeks at a cost of just $26,400 for a full treatment course. For perspective, AbbVie launched its prior-generation hepatitis C drug, Viekira Pak, at a retail price of $83,500 in 2015. What happened After Johnson & Johnson (NYSE: JNJ) announced it's ending its agreement to develop Achillion Pharmaceuticals ' (NASDAQ: ACHN) hepatitis C drugs, Achillion Pharmaceuticals shares lost 22.2% of their value today. | For example, AbbVie (NYSE: ABBV) won approval for its pan-genotype hepatitis C drug Mavyret last month, and it can cure the disease in as little as eight weeks at a cost of just $26,400 for a full treatment course. For perspective, AbbVie launched its prior-generation hepatitis C drug, Viekira Pak, at a retail price of $83,500 in 2015. What happened After Johnson & Johnson (NYSE: JNJ) announced it's ending its agreement to develop Achillion Pharmaceuticals ' (NASDAQ: ACHN) hepatitis C drugs, Achillion Pharmaceuticals shares lost 22.2% of their value today. | For example, AbbVie (NYSE: ABBV) won approval for its pan-genotype hepatitis C drug Mavyret last month, and it can cure the disease in as little as eight weeks at a cost of just $26,400 for a full treatment course. For perspective, AbbVie launched its prior-generation hepatitis C drug, Viekira Pak, at a retail price of $83,500 in 2015. On Sept. 9, Johnson & Johnson told Achillion Pharmaceuticals that it will no longer develop any of Achillion Pharmaceuticals' hepatitis C drugs. |
25999.0 | 2017-09-09 00:00:00 UTC | 3 Stocks That Put Walt Disney's Returns to Shame | ABBV | https://www.nasdaq.com/articles/3-stocks-put-walt-disneys-returns-shame-2017-09-09 | nan | nan | Few businesses have more effectively generated shareholder value over the years than The Walt Disney Company (NYSE: DIS) . Investors who bought Disney stock a mere five years ago have watched their money more than double, including dividends. And those who purchased 10 years ago have enjoyed a total return of more than 230%, crushing the S&P 500's respectable 110% gain over the same period.
But as impressive as Disney's gains have been -- especially as it continues to grow from a relatively large base -- a small handful of stocks have managed to easily outpace the House of Mouse lately.
To that end -- and with all due respect to the entertainment juggernaut -- we asked three top Motley Fool investors to each discuss a stock that has put Walt Disney's returns to shame in recent years. Read on to learn why they chose NVIDIA (NASDAQ: NVDA) , Netflix (NASDAQ: NFLX) , and AbbVie (NYSE: ABBV) , and -- perhaps more interesting -- whether they believe these companies will continue to outperform.
Accelerating growth -- and only just getting started
Steve Symington (NVIDIA): After years of investing billions of dollars toward fostering multiple high-growth opportunities for its cutting-edge graphics chip technology, the acceleration of NVIDIA Corporation's business truly began to shock the market when its fiscal third-quarter report last year absolutely crushed expectations . And NVIDIA shows no signs of slowing down anytime soon; revenue in its most recent quarter skyrocketed 56% year over year to $2.2 billion, while net income climbed 123% to $583 million. Both were well ahead of NVIDIA's latest financial guidance.
The market didn't seem particularly impressed with those results a few weeks ago, however, partly because NVIDIA's stock price has climbed more than 1,100% over the past five years, including a 160%-plus gain in the past year alone.
But I also won't be the least bit surprised if NVIDIA extends its upward trajectory in the years ahead, with particular thanks to the central role its processors play enabling a growing number of applications for machine learning and artificial intelligence (AI).
"Nearly every industry and company is awakening to the power of AI," teased NVIDIA founder and CEO Jensen Huang last month. "This is the era of AI, and the NVIDIA GPU has become its brain."
Huang noted that NVIDIA only just began shipping its new Volta GPU in volume to its leading AI customers last quarter. Considering Volta offers a hundredfold increase in performance for deep learning applications over the company's best chip only four years ago, I can't wait to see how NVIDIA and its customers harness that power to change our world for the better. And I think long-term investors who open or add to their positions even after NVIDIA's astronomical rise will be happy they did.
Following the Disney Blueprint
Danny Vena(Netflix, Inc.) Disney is one of the most recognizable names in the entertainment industry, and its multibagger returns have been the result of developing cutting-edge technology, taking huge financial risks, and building a global media powerhouse on a foundation of growing intellectual property.
If any of that sounds familiar, it should. Netflix began as a successful DVD-by-mail service. Not content to stop there, it was a pioneer in streaming in 2007. Netflix began producing its own content with the release of House of Cards in 2013, but it soon realized the economics would improve by owning, rather than merely helping finance, its shows. It now owns such massive hits as Stranger Things , Making a Murderer , and 13 Reasons Why .
This year alone, Netflix will spend over $6 billion on content, with an eye toward owning more than half of it. This plan requires a large upfront investment, and some worry that the negative cash flow could be its undoing, but its growing subscriber base mitigates some of that risk.
In another move taken directly from Disney's playbook, Netflix turned heads last month with its acquisition of comic-book publisher Millarworld. This move provides the company with a new treasure trove of original content. But that's not its biggest gamble to date. That came in January 2015, when the company revealed that it would expand its service worldwide by the end of 2016.
All of thwse big bets have been paying off. Netflix now boasts more than 104 million subscribers worldwide, up 25% in its most recent quarter, with revenue that increased 32% year over year. Netflix's stock has already returned more than 14,000% since its IPO in 2002, eclipsing Disney's returns, but I think there's much more to come, leaving investors to Netflix and chill.
Outperforming in more ways than one
Cory Renauer (AbbVie Inc.): Beating Disney's performance this year has been easy, but this big biotech's stock price has outshined the Magic Kingdom's since it spun off from Abbott Laboratories at the beginning of 2013. Larger principal growth isn't the only way AbbVie's long-term shareholders have come out ahead. Placed side by side, the drugmaker's dividend growth makes Disney's distribution look like a Mickey Mouse operation.
ABBV data by YCharts
At recent prices, AbbVie's 3.03% yield trounces the 1.6% Disney stock offers. Looking ahead, there are reasons to suspect AbbVie will continue to grow its bottom line and treat its investors to more big payout bumps in the years to come than its peers will offer. AbbVie's biggest source of revenue, Humira, finished the first half on pace to generate about $17.7 billion in sales for the full year, and a recent court decision could help keep competition at bay long enough to allow more recently launched drugs a chance to replace revenue from the aging anti-inflammatory drug.
Perhaps the most important rookie in AbbVie's lineup, Imbruvica, has been a huge success since it became the first chemo-free treatment option for patients with the most commonly diagnosed form of leukemia. In the first half of 2017, AbbVie's share of sales from Imbruvica, which it markets in partnership with Johnson & Johnson , grew 43.6% over the previous year period to about $1.2 billion.
AbbVie's portion of annual Imbruvica sales could reach $5 billion at their peak, and it has an experimental eczema drug in development that could generate more than $3 billion in annual sales, if approved. In clinical trials, half of patients given a daily dose of upadacitinib reported clear, or almost clear, skin.
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Cory Renauer has no position in any of the stocks mentioned. Danny Vena owns shares of Netflix and Walt Disney and has the following options: long January 2018 $80 calls on Walt Disney and short October 2017 $105 calls on Walt Disney. Steve Symington owns shares of Nvidia. The Motley Fool owns shares of and recommends Netflix, 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. | Outperforming in more ways than one Cory Renauer (AbbVie Inc.): Beating Disney's performance this year has been easy, but this big biotech's stock price has outshined the Magic Kingdom's since it spun off from Abbott Laboratories at the beginning of 2013. Read on to learn why they chose NVIDIA (NASDAQ: NVDA) , Netflix (NASDAQ: NFLX) , and AbbVie (NYSE: ABBV) , and -- perhaps more interesting -- whether they believe these companies will continue to outperform. Larger principal growth isn't the only way AbbVie's long-term shareholders have come out ahead. | Read on to learn why they chose NVIDIA (NASDAQ: NVDA) , Netflix (NASDAQ: NFLX) , and AbbVie (NYSE: ABBV) , and -- perhaps more interesting -- whether they believe these companies will continue to outperform. Outperforming in more ways than one Cory Renauer (AbbVie Inc.): Beating Disney's performance this year has been easy, but this big biotech's stock price has outshined the Magic Kingdom's since it spun off from Abbott Laboratories at the beginning of 2013. Larger principal growth isn't the only way AbbVie's long-term shareholders have come out ahead. | Read on to learn why they chose NVIDIA (NASDAQ: NVDA) , Netflix (NASDAQ: NFLX) , and AbbVie (NYSE: ABBV) , and -- perhaps more interesting -- whether they believe these companies will continue to outperform. Outperforming in more ways than one Cory Renauer (AbbVie Inc.): Beating Disney's performance this year has been easy, but this big biotech's stock price has outshined the Magic Kingdom's since it spun off from Abbott Laboratories at the beginning of 2013. Larger principal growth isn't the only way AbbVie's long-term shareholders have come out ahead. | Read on to learn why they chose NVIDIA (NASDAQ: NVDA) , Netflix (NASDAQ: NFLX) , and AbbVie (NYSE: ABBV) , and -- perhaps more interesting -- whether they believe these companies will continue to outperform. Outperforming in more ways than one Cory Renauer (AbbVie Inc.): Beating Disney's performance this year has been easy, but this big biotech's stock price has outshined the Magic Kingdom's since it spun off from Abbott Laboratories at the beginning of 2013. Larger principal growth isn't the only way AbbVie's long-term shareholders have come out ahead. |
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