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26300.0 | 2017-01-19 00:00:00 UTC | How Johnson & Johnson Beat Every Other Big Pharma Stock in 2016 | ABBV | https://www.nasdaq.com/articles/how-johnson-johnson-beat-every-other-big-pharma-stock-2016-2017-01-19 | nan | nan | Which big pharma stock performed best of all in 2016? None other than one of the oldest of them all -- Johnson & Johnson (NYSE: JNJ) . The company's shares gained nearly 15% last year, enough to beat out the other top 25 largest drugmakers. Here's how Johnson & Johnson did it.
A tough year for most -- but not all
Probably the most important reason Johnson & Johnson outgained other big pharma stocks is that 2016 was a rotten year for most of them. Worries about the outcome of the U.S. elections threw a wet blanket on many pharmaceutical stocks. Pipeline disappointments hurt some also.
A few big pharma stocks did well last year, though. Merck (NYSE: MRK) came in just behind J&J with stock gains of 12%. Cancer drug Keytruda primarily fueled Merck's solid results. While the drug chalked up sales of $919 million in the first three quarters of 2016, the long-term prospects for Keytruda really excited investors.
AbbVie (NYSE: ABBV) took the No. 3 spot among big pharma stocks, with its share price increasing nearly 9% last year. The key driver for AbbVie continued to be impressive growth for blockbuster autoimmune disease drug Humira. However, AbbVie also benefited from a newer drug which just happens to be one in which the company partners with J&J -- Imbruvica. In the first three quarters of last year, Abbvie's portion of Imbruvica revenue more than tripled year over year to $1.3 billion.
Not a numbers game
Here's the funny thing about Johnson & Johnson emerging as the best big pharma stock of 2016: The company's growth wasn't all that great. In fact, both Merck and AbbVie outperformed J&J in terms of revenue growth and earnings growth in the first nine months of last year.
Johnson & Johnson's results were weighed down by weak performance from its consumer and medical devices segments. Consumer sales actually declined slightly in the first nine months of 2016 compared with the prior-year period, while medical devices revenue increased by only 1.1% during the period.
The company's pharmaceuticals segment produced much better sales growth. However, even if we only looked at that stronger business unit, J&J's growth still trailed both AbbVie and Merck. J&J made less revenue from its fastest-growing product, up-and-coming cancer drug Imbruvica, than AbbVie did. So why did Johnson & Johnson's stock outperform other big pharma stocks?
J&J's attraction
I have written before that if you're looking for a growth stock, there are better opportunities than Johnson & Johnson. If you're looking for a dividend stock, there are better opportunities than J&J. The same is true if you're looking for a value stock. On the other hand, for investors seeking a mix of all three components Johnson & Johnson is arguably one of the best stocks around.
My theory is that investors in 2016 were attracted to the unique offering that J&J provided. Election years can sometimes be chaotic. Last year certainly proved to fit that bill. Stability can be quite attractive during turbulent times. Few stocks provide the stability that Johnson & Johnson does, with 130 years of operation, 32 years in a row of adjusted earnings increases, and 54 consecutive years of dividend increases.
Also, the company's broad scope of operations was likely a plus. While J&J's consumer and medical devices segments weren't growing sales much (if at all), the business units continued to generate plenty of profits and cash flow. In addition, having these other segments insulated the company to some degree from worries impacting other pharmaceutical companies about potential push-back on drug price increases.
Repeat performance?
Will Johnson & Johnson again emerge as the top big pharma stock this year? It's possible, but I wouldn't count on it.
Merck should begin to experience the success from Keytruda even more this year than in 2016. AbbVie still has huge winners with Humira and Imbruvica and could also get some good news for its pipeline in 2017. J&J also carries a higher valuation based on forward earnings than both of these companies.
However, Johnson & Johnson could still provide nice gains for shareholders in 2017 and beyond. Wall Street projects the company's average annual earnings growth over the next few years will be just under 7%. That's not exactly awe-inspiring, but it's in line with J&J's earnings growth over the last five years. J&J's stock price increased 65% during that period.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The key driver for AbbVie continued to be impressive growth for blockbuster autoimmune disease drug Humira. AbbVie (NYSE: ABBV) took the No. However, AbbVie also benefited from a newer drug which just happens to be one in which the company partners with J&J -- Imbruvica. | AbbVie (NYSE: ABBV) took the No. The key driver for AbbVie continued to be impressive growth for blockbuster autoimmune disease drug Humira. However, AbbVie also benefited from a newer drug which just happens to be one in which the company partners with J&J -- Imbruvica. | AbbVie (NYSE: ABBV) took the No. The key driver for AbbVie continued to be impressive growth for blockbuster autoimmune disease drug Humira. However, AbbVie also benefited from a newer drug which just happens to be one in which the company partners with J&J -- Imbruvica. | In the first three quarters of last year, Abbvie's portion of Imbruvica revenue more than tripled year over year to $1.3 billion. AbbVie (NYSE: ABBV) took the No. The key driver for AbbVie continued to be impressive growth for blockbuster autoimmune disease drug Humira. |
26301.0 | 2017-01-19 00:00:00 UTC | Noteworthy ETF Inflows: VUG, AMGN, MMM, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows-vug-amgn-mmm-abbv-2017-01-19 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $77.6 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 207,015,237 to 207,690,354). Among the largest underlying components of VUG, in trading today Amgen Inc (Symbol: AMGN) is down about 0.9%, 3M Co (Symbol: MMM) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average:
Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $115.0799 as the 52 week high point - that compares with a last trade of $114.84. 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 VUG, in trading today Amgen Inc (Symbol: AMGN) is down about 0.9%, 3M Co (Symbol: MMM) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $115.0799 as the 52 week high point - that compares with a last trade of $114.84. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of VUG, in trading today Amgen Inc (Symbol: AMGN) is down about 0.9%, 3M Co (Symbol: MMM) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $115.0799 as the 52 week high point - that compares with a last trade of $114.84. 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 VUG, in trading today Amgen Inc (Symbol: AMGN) is down about 0.9%, 3M Co (Symbol: MMM) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $77.6 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 207,015,237 to 207,690,354). For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $115.0799 as the 52 week high point - that compares with a last trade of $114.84. | Among the largest underlying components of VUG, in trading today Amgen Inc (Symbol: AMGN) is down about 0.9%, 3M Co (Symbol: MMM) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $77.6 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 207,015,237 to 207,690,354). For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $115.0799 as the 52 week high point - that compares with a last trade of $114.84. |
26302.0 | 2017-01-19 00:00:00 UTC | McKesson (MCK) Q3 Earnings: Stock Likely to Disappoint? | ABBV | https://www.nasdaq.com/articles/mckesson-mck-q3-earnings%3A-stock-likely-to-disappoint-2017-01-19 | nan | nan | McKesson CorporationMCK , one of the largest healthcare services providers, is scheduled to report third-quarter fiscal 2017 results on Jan 25, after the market closes . Last quarter the company missed earnings estimates by 3.6%.
McKesson's share price has underperformed the Zacks classified Medical-Dental Supplies industry in the last 12 months due to drug pricing trends. The stock has lost 9.3% over this time frame, compared to a decline of 4.8% for the industry.
McKesson's track record has been mixed in the last four quarters with an average negative surprise of 4.4%. While the company beat estimates in two of the last four quarters, it missed estimates in the other two. Let's see how things are shaping up for this announcement.
Pricing War to Impact Results This Quarter
McKesson has been facing challenging conditions over the last few quarters owing to lower generic launches, pricing challenges and customer transitions.
While a tough 2017 was on the cards, concurrent with the second-quarter results, the company lowered its annual guidance further due to softness in pricing of drugs which became pronounced in the second quarter. Not only did the company experienced fewer drugs with price increases but also much lower rates of rising prices compared to FY16.
Customer consolidation in the industry has resulted in further losses for the company. A fewer generic launches further affected the business. Consequently, McKesson expects branded pharmaceutical pricing trends to be below than those experienced in FY16. In particular, competitive pricing is adversely impacting business in the pharmaceutical distribution business in the U.S.
We note that McKesson competes with the likes of AmerisourceBergen Corporation ABC and Cardinal Health CAH . Moreover, reimbursement cuts imposed by the U.K. government to retail pharmacy rates as well as the U.K's decision to exit the EU has unfavorably impacted Celesio's operating performance.
Accounting for the competitive customer pricing and softness in brand inflation, McKesson narrowed its earnings guidance to the range of $12.35 to $12.85 from the previous expectations of $13.43-$13.93.
What Our Model Indicates
Our proven model does not conclusively show that McKesson will beat 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, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -3.03%. This is because the Most Accurate estimate is pegged at $2.88, while the Zacks Consensus Estimate stands at $2.97. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : McKesson currently carries a Zacks Rank #4. As it is, we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
McKesson Corp. Price and Consensus
McKesson Corp. Price and Consensus | McKesson Corp. Quote
Stocks That Warrant a Look
Here are some companies you may want to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter:
AbbVie Inc. ABBV is expected to release results on Jan 27. The company has an Earnings ESP of +0.83% and a Zacks Rank #3.
You can see the complete list of today's Zacks #1 Rank stocks here .
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | McKesson Corp. Price and Consensus McKesson Corp. Price and Consensus | McKesson Corp. Quote Stocks That Warrant a Look Here are some companies you may want to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report AmerisourceBergen Corp. (ABC): Free Stock Analysis Report McKesson Corp. (MCK): Free Stock Analysis Report Cardinal Health Inc. (CAH): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. McKesson CorporationMCK , one of the largest healthcare services providers, is scheduled to report third-quarter fiscal 2017 results on Jan 25, after the market closes . | McKesson Corp. Price and Consensus McKesson Corp. Price and Consensus | McKesson Corp. Quote Stocks That Warrant a Look Here are some companies you may want to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report AmerisourceBergen Corp. (ABC): Free Stock Analysis Report McKesson Corp. (MCK): Free Stock Analysis Report Cardinal Health Inc. (CAH): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, McKesson expects branded pharmaceutical pricing trends to be below than those experienced in FY16. | McKesson Corp. Price and Consensus McKesson Corp. Price and Consensus | McKesson Corp. Quote Stocks That Warrant a Look Here are some companies you may want to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report AmerisourceBergen Corp. (ABC): Free Stock Analysis Report McKesson Corp. (MCK): Free Stock Analysis Report Cardinal Health Inc. (CAH): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. As it is, we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. | McKesson Corp. Price and Consensus McKesson Corp. Price and Consensus | McKesson Corp. Quote Stocks That Warrant a Look Here are some companies you may want to consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report AmerisourceBergen Corp. (ABC): Free Stock Analysis Report McKesson Corp. (MCK): Free Stock Analysis Report Cardinal Health Inc. (CAH): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. As it is, we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. |
26303.0 | 2017-01-19 00:00:00 UTC | Bristol-Myers (BMY) Q4 Earnings: Will the Stock Disappoint? | ABBV | https://www.nasdaq.com/articles/bristol-myers-bmy-q4-earnings%3A-will-the-stock-disappoint-2017-01-19 | nan | nan | Bristol-Myers Squibb CompanyBMY is scheduled to report fourth-quarter 2016 results on Jan 26, before the opening bell. Last quarter, the company posted a positive earnings surprise of 18.46%.
Bristol-Myers has underperformed the Zacks classified Large Cap Pharmaceuticals industry in the past one year. The stock has lost 9.1% during this period, while the industry gained 3.8%.
Bristol-Myers has an impressive track record so far. The company's earnings beat estimates in each of the four trailing quarters, with an average positive surprise of 17.32%. Will Bristol-Myers surpass expectations this time as well?
Bristol-Myers Squibb Co. Price and EPS Surprise
Bristol-Myers Squibb Co. Price and EPS Surprise | Bristol-Myers Squibb Co. Quote
Let's see how things are shaping up for this quarter.
Factors to Impact Q4
Bristol-Myers' high-profile immuno-oncology drug, Opdivo, which drove the company's top line in the third quarter of 2016, should keep up the strong momentum in the to-be-reported quarter as well. Opdivo's U.S. sales are being driven by the melanoma, second-line non-small-cell lung cancer and renal cell carcinoma indications. Further, recent label expansions into the classical Hodgkin lymphoma, and head and neck cancer indications should boost the drug's sales. However, the company expects the second-line lung cancer business to be under pressure. In the EU, securing reimbursement in the key EU markets should aid revenues too.
Robust performance of the Opdivo+Yervoy (Bristol-Myers' other immuno-oncology drug) regimen is boosting both the products in the melanoma indication.
Another oncology drug, Sprycel should continue to keep up its performance in the to-be-reported quarter. Multiple myeloma drug, Empliciti should continue to post encouraging sales figures despite facing stiff competition.
Anticoagulant Eliquis' sales are expected to accelerate in the to-be-reported quarter. It should continue to be the number-one new-to-brand anticoagulant in the U.S. and other markets on the back of robust demand and increased market share gains. Rheumatoid arthritis drug, Orencia should also contribute meaningfully thanks to high demand.
Buoyed by strength in key products and an overall robust performance, Bristol-Myers raised its 2016 earnings guidance during its third-quarter 2016 earnings call. For 2016, the company expects earnings in the range of $2.80 to $2.90 per share (old guidance: $2.55-$2.65).
Bristol-Myers expects the HIV and HCV franchises to remain under competitive pressure.
During the fourth quarter too, Bristol-Myers remained active on the deal-making front in the immuno-oncology space.
On the expense front, marketing, selling and administrative expenses are anticipated to remain flat, while research and development expenses are expected to increase in the high single-digit range.
Bristol-Myers' share buybacks and streamlined operating structure should boost the bottom line.
On the fourth-quarter earnings call, investors are expected to focus on the company's performance and label expansion efforts, along with updates on business development activities.
Earnings Whispers
Our proven model does not conclusively show that Bristol-Myers is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Unfortunately, that is not the case here, as elaborated below.
Zacks ESP: The Earnings ESP for Bristol-Myers is +1.52% since the Most Accurate Estimate stands at 67 cents, higher than the Zacks Consensus Estimate of 66 cents. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Bristol-Myers carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the Large Cap Pharmaceuticals industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
AbbVie Inc. ABBV is scheduled to report fourth-quarter results on Jan 27. It has an Earnings ESP of +0.83% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Eli Lilly and Company LLY has an Earnings ESP of +3.06% and a Zacks Rank #3. The company is scheduled to release fourth-quarter results on Jan 31.
Merck & Co., Inc. MRK has an Earnings ESP of +1.14% and a Zacks Rank #3. The company is scheduled to release fourth-quarter results on Feb 2.
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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. | AbbVie Inc. ABBV is scheduled to report fourth-quarter results on Jan 27. Click to get this free report Bristol-Myers Squibb Co. (BMY): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Merck & Co. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Opdivo's U.S. sales are being driven by the melanoma, second-line non-small-cell lung cancer and renal cell carcinoma indications. | Click to get this free report Bristol-Myers Squibb Co. (BMY): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Merck & Co. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is scheduled to report fourth-quarter results on Jan 27. Bristol-Myers Squibb Co. Price and EPS Surprise Bristol-Myers Squibb Co. Price and EPS Surprise | Bristol-Myers Squibb Co. Quote Let's see how things are shaping up for this quarter. | Click to get this free report Bristol-Myers Squibb Co. (BMY): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Merck & Co. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is scheduled to report fourth-quarter results on Jan 27. Bristol-Myers Squibb Co. Price and EPS Surprise Bristol-Myers Squibb Co. Price and EPS Surprise | Bristol-Myers Squibb Co. Quote Let's see how things are shaping up for this quarter. | AbbVie Inc. ABBV is scheduled to report fourth-quarter results on Jan 27. Click to get this free report Bristol-Myers Squibb Co. (BMY): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Merck & Co. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Impact Q4 Bristol-Myers' high-profile immuno-oncology drug, Opdivo, which drove the company's top line in the third quarter of 2016, should keep up the strong momentum in the to-be-reported quarter as well. |
26304.0 | 2017-01-19 00:00:00 UTC | Vertex Pharma (VRTX) Q4 Earnings: Stock Likely to Beat? | ABBV | https://www.nasdaq.com/articles/vertex-pharma-vrtx-q4-earnings%3A-stock-likely-to-beat-2017-01-19 | nan | nan | We expect biotech company Vertex Pharmaceuticals, Inc.VRTX to beat expectations when it reports fourth-quarter 2016 and full-year earnings results on Jan 25, after the market closes .
Vertex's share price lost 14.9% in the past one year, comparing unfavorably with the 12.9% decline recorded by the Zacks-classified Biomed-Genetics industry. The underperformance was due to inconsistent earnings results and slower-than-expected sales of Orkambi.
Vertex Pharmaceuticals Inc. Price and EPS Surprise
Vertex Pharmaceuticals Inc. Price and EPS Surprise | Vertex Pharmaceuticals Inc. Quote
Let's see how things are shaping up for this quarter.
Factors at Play
Last week, Vertex announced preliminary financial results for the fourth-quarter 2016 and the full year.
Kalydeco revenues are expected to be $703 million in 2016, within management's previously announced guidance of $685-$705 million. In the fourth quarter, Kalydecois expected to record sales of $177 million.
Orkambi revenues are expected to be $979 million in 2016, within the company's guidance range of $950-$990 million. In the fourth quarter, Orkambi revenues are expected to be $276 million, better than $234 million in the third quarter.
Orkambi has been performing below expectations. Slower-than-anticipated launch of the drug in Germany, close-to-peak penetration for the approved indication in the U.S., and lower-than-expected refills in the months of July and August hurt sales in the third quarter.
However, at the third-quarter conference call, management had said that Orkambi revenues will improve sequentially in the fourth quarter due to the pediatric label expansion. In Sep 2016, Orkambi's label was expanded to include the pediatric population (6-11 years old) - this gives the drug access to about 2,400 CF patients in the U.S.
Management expects the pediatric label expansion to drive sales in the fourth quarter of 2016 as well as in 2017. Moreover, pricing and reimbursement in ex-U.S. countries are expected to drive the top line in 2017.
Total revenue from the CF drugs is expected to be $1.68 billion in 2016, higher than $983 million recorded in 2015.
Operating expenses will shoot up as Vertex develops its pipeline, works on expanding Kalydeco's and Orkambi's labels, and continues to invest in Orkambi's launch.
What Our Model Indicates
Our proven model shows that Vertex is likely to beat 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) for this to happen and Vertex has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +400.00%. This is a meaningful indicator of a likely positive earnings surprise. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Vertex has a Zacks Rank #3.
The combination of Vertex's favorable Zacks Rank and positive ESP makes us confident of an earnings beat in its upcoming release. Conversely, the 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.
Other Stocks to Consider
Other stocks in the large cap pharmaceuticals sector that have both a positive ESP and a favorable Zacks Rank are:
AbbVie Inc. ABBV is expected to release results on Jan 27. The company has an Earnings ESP of +0.83% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Eli Lilly and Company LLY has an Earnings ESP of +3.06% and a Zacks Rank #3. The company is scheduled to release results on Jan 31.
Allergan plc AGN has an Earnings ESP of +0.80% and a Zacks Rank #3. The company is scheduled to release results on Feb 8.
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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. | Other Stocks to Consider Other stocks in the large cap pharmaceuticals sector that have both a positive ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Vertex Pharmaceuticals Inc. (VRTX): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Vertex's share price lost 14.9% in the past one year, comparing unfavorably with the 12.9% decline recorded by the Zacks-classified Biomed-Genetics industry. | Other Stocks to Consider Other stocks in the large cap pharmaceuticals sector that have both a positive ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Vertex Pharmaceuticals Inc. (VRTX): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Vertex Pharmaceuticals Inc. Price and EPS Surprise Vertex Pharmaceuticals Inc. Price and EPS Surprise | Vertex Pharmaceuticals Inc. Quote Let's see how things are shaping up for this quarter. | Other Stocks to Consider Other stocks in the large cap pharmaceuticals sector that have both a positive ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Vertex Pharmaceuticals Inc. (VRTX): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We expect biotech company Vertex Pharmaceuticals, Inc.VRTX to beat expectations when it reports fourth-quarter 2016 and full-year earnings results on Jan 25, after the market closes . | Other Stocks to Consider Other stocks in the large cap pharmaceuticals sector that have both a positive ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Vertex Pharmaceuticals Inc. (VRTX): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We expect biotech company Vertex Pharmaceuticals, Inc.VRTX to beat expectations when it reports fourth-quarter 2016 and full-year earnings results on Jan 25, after the market closes . |
26305.0 | 2017-01-19 00:00:00 UTC | Biogen (BIIB) Q4 Earnings: What's in Store for the Stock? | ABBV | https://www.nasdaq.com/articles/biogen-biib-q4-earnings%3A-whats-in-store-for-the-stock-2017-01-19 | nan | nan | Biogen Inc.BIIB , a well-known name in the multiple sclerosis (MS) market, will be reporting fourth-quarter 2016 and full-year earnings on Jan 26, before the market opens.Last quarter, the company delivered a positive earnings surprise of 4.01%.
Biogen's shares rose 5.3% in the past one year, while the Zacks classified Biomed-Genetics industry recorded a decline of 12.9%.
Biogen Inc. Price and EPS Surprise
Biogen Inc. Price and EPS Surprise | Biogen Inc. Quote
Let's see how things are shaping up for this announcement.
Factors to Consider
Since the first progressive multifocal leukoencephalopathy (PML)-related death of a patient on oral MS drug, Tecfidera, investors have been focused on the product's performance.
Biogen is working on boosting Tecfidera sales. In the third quarter, the drug's sales improved both on a year-over-year and sequential basis, and its global market share increased. We expect the trend to continue in the fourth quarter as well.
While Tysabri is projected to remain on a stable growth trajectory, the combined number of patients using Avonex and Plegridy will continue to decline as they move toward oral treatments.
Zinbryta, launched in collaboration with AbbVie Inc. ABBV in Aug 2016, is expected to contribute to revenues in the U.S. and the EU. The drug is also benefiting from increased use of high-efficacy products.
Headcount reduction and restructuring initiatives announced in 2015 are expected to lower operating expenses by about $250 million in 2016. In the third quarter of 2016, Biogen announced additional measures that included the realignment of its organizational structure for achieving further targeted cost reductions. These initiatives should boost margins in the fourth quarter.
Meanwhile, by Feb 1, 2017, Biogen will be spinning off its hemophilia business into a new company, Bioverativ. The spin-off will allow Biogen to focus on the neurology segment, its key area of expertise.
Investor focus on the fourth-quarter call will remain on Tecfidera's scrip trends, commercial plans for Spinraza, pipeline progress and acquisition plans.
The FDA approved Spinraza for spinal muscular atrophy in Dec 2016. Notably, Spinraza is the first approved treatment for the disease, which will allow it address an untapped market, thereby offering the company a huge boost.
Earnings Whispers
Our proven model does not conclusively show that Biogen is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -1.20% as the Most Accurate estimate stands at $4.93 while the Zacks Consensus Estimate is pegged higher at $4.99. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Biogen's Zacks Rank #2 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings beat.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are:
AbbVie is expected to release results on Jan 27. The company has an Earnings ESP of +0.83% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Eli Lilly and Company LLY has an Earnings ESP of +3.06% and a Zacks Rank #3. The company is scheduled to release results on Jan 31.
Allergan plc AGN has an Earnings ESP of +0.80% and a Zacks Rank #3. The company is scheduled to release results on Feb 8.
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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 Aug 2016, is expected to contribute to revenues in the U.S. and the EU. Stocks to Consider Some stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie is expected to release results on Jan 27. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zinbryta, launched in collaboration with AbbVie Inc. ABBV in Aug 2016, is expected to contribute to revenues in the U.S. and the EU. Stocks to Consider Some stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie is expected to release results on Jan 27. | Stocks to Consider Some stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie is expected to release results on Jan 27. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zinbryta, launched in collaboration with AbbVie Inc. ABBV in Aug 2016, is expected to contribute to revenues in the U.S. and the EU. | Stocks to Consider Some stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie is expected to release results on Jan 27. Zinbryta, launched in collaboration with AbbVie Inc. ABBV in Aug 2016, is expected to contribute to revenues in the U.S. and the EU. Click to get this free report Eli Lilly and Co. (LLY): Free Stock Analysis Report Allergan PLC (AGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26306.0 | 2017-01-18 00:00:00 UTC | Why the Amgen, Inc. (AMGN) Patent Case Is So Important | ABBV | https://www.nasdaq.com/articles/why-the-amgen-inc.-amgn-patent-case-is-so-important-2017-01-18 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
Good news for Amgen, Inc. (NASDAQ: AMGN ) shareholders … or, maybe it's bad news for anyone who owns AMGN stock. Whatever the case, the nation's judicial system is finally going to make legal sense of how the industry is supposed to make and market so-called "biologic" drugs - therapies created by a living, organic process instead of a chemical reaction.
Source: Richard Masoner via Flickr
It's a matter of particular interest to Amgen stock holders, as the biopharma company has a stake on the offensive and defensive side of the ball. It's also a matter worth studying simply because biologics are the future, and what the Federal Court system decides later this year will set the stage for years (if not decades) to come.
Amgen vs. Sandoz
It was the proverbial shot heard 'round the world … or at least in the United States.
In March of 2015, the U.S. Food and Drug Administration approved a cancer support drug from Sandoz - a division of Novartis AG (ADR) (NYSE: NVS ) - called Zarxio, which induces a patient's production of white blood cells . It's an important affect, as many cancer patients on chemotherapy are susceptible to infections.
It was remarkable simply because it was the FDA's first-ever approved "biosimilar," meaning it was for all intents and purposes (and effectiveness) the equivalent to Neupogen, or filgrastim, from AMGN. Being a biologic, Amgen was likely never expecting it to be copied when the drug first debuted back in 1991.
7 Healthcare Stocks That Will Cripple Your Portfolio
The introduction of Zarxio largely exposed just how unprepared the U.S. legal system was for biologics.
Amgen cried foul on Sandoz , claiming that not only had Sandoz not followed the disclosure protocol as prescribed by the 2010 Biologics Price Competition and Innovation Act (BPCIA), but it had also failed to give the required 180 days notice to AMGN that it intended to copy Neupogen with Zarxio. Specifically, Sandoz was supposed to provide Amgen with a list of all of its patents that might be violated, and it couldn't provide the 180-day notice until after Zarxio had been approved; Sandoz provided it before the drug was approved by the FDA .
As it turns out, the court system didn't quite know itself what the BPCIA meant, or of it was completely binding. Amgen, and by extension AMGN stock owners, have been up in the air ever since.
AMGN and the "Patent Dance"
It's neither an official or a flattering title, but the entanglement of conflicting and unclear laws has come to be known as the "patent dance."
The impending decision following a review of a previous appellate case is two-fold, and one of the matters isn't as important as the other.
The lesser of the two questions that will be answered by the nation's top court will determine exactly when the biopharma company endeavoring to market a biosimilar must inform the developer of the branded version. Amgen claims the 180-day notice clock starts following an approval, while Sandoz argued it could submit that notice anytime the drug had been developed in its final form.
The decision will only retard or accelerate the marketing date for a biologic biosimilar by six months … a drop in the bucket for a treatment that will be on pharmacy shelves for years if not decades.
The second issue is a more serious one.
The interpretations of this portion of the Biologics Price Competition and Innovation Act vary, but Amgen argues that it's mandatory Sandoz disclose its manufacturing process for Zarxio while Sandoz argues it's optional.
The purpose of this disclosure is ultimately for both parties to resolve any potential patent-infringement arguments. The court have thus far agreed with Sandoz that the BPCIA mandate for disclosure of the underlying science is optional, but that a failure to do so would leave the biosimilar developer wide open to a patent-infringement lawsuit.
Should You Buy Amgen Inc. (AMGN) Stock? 3 Pros, 3 Cons
It's reasonable to assume any maker of a branded biologic will choose to create as much of a legal headwind as possible for any biosimilar maker that opts to not divulge its proprietary process.
Bottom Line for AMGN Stock
While the matter at hand directly involves Amgen and Sandoz along with AMGN and NVS shareholders, the entire pharmaceutical industry is anxiously awaiting the decisions that are expected by June. The rulings will clarify to what extent the legal system supports the idea of biosimilars. So far that the court system seems to generally favoring the companies that could lower biologic drug costs between 15% and 30%.
Don't feel too bad for AMGN though. While it's fighting Sandoz to protect its brand-name drug Neupogen, it's also already won the approval for a biosimilar version of Humira, from AbbVie Inc (NYSE: ABBV ). If Amgen loses the fight with Sandoz, it will likely mean it has won a different fight with Abbvie. Indeed, AMGN has six biosimilars in the pipeline, and could use a little help from the FDA with those.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While it's fighting Sandoz to protect its brand-name drug Neupogen, it's also already won the approval for a biosimilar version of Humira, from AbbVie Inc (NYSE: ABBV ). If Amgen loses the fight with Sandoz, it will likely mean it has won a different fight with Abbvie. Source: Richard Masoner via Flickr It's a matter of particular interest to Amgen stock holders, as the biopharma company has a stake on the offensive and defensive side of the ball. | While it's fighting Sandoz to protect its brand-name drug Neupogen, it's also already won the approval for a biosimilar version of Humira, from AbbVie Inc (NYSE: ABBV ). If Amgen loses the fight with Sandoz, it will likely mean it has won a different fight with Abbvie. Amgen cried foul on Sandoz , claiming that not only had Sandoz not followed the disclosure protocol as prescribed by the 2010 Biologics Price Competition and Innovation Act (BPCIA), but it had also failed to give the required 180 days notice to AMGN that it intended to copy Neupogen with Zarxio. | While it's fighting Sandoz to protect its brand-name drug Neupogen, it's also already won the approval for a biosimilar version of Humira, from AbbVie Inc (NYSE: ABBV ). If Amgen loses the fight with Sandoz, it will likely mean it has won a different fight with Abbvie. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips Good news for Amgen, Inc. (NASDAQ: AMGN ) shareholders … or, maybe it's bad news for anyone who owns AMGN stock. | While it's fighting Sandoz to protect its brand-name drug Neupogen, it's also already won the approval for a biosimilar version of Humira, from AbbVie Inc (NYSE: ABBV ). If Amgen loses the fight with Sandoz, it will likely mean it has won a different fight with Abbvie. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips Good news for Amgen, Inc. (NASDAQ: AMGN ) shareholders … or, maybe it's bad news for anyone who owns AMGN stock. |
26307.0 | 2017-01-18 00:00:00 UTC | What???s Ahead for Johnson & Johnson (JNJ) in Q4 Earnings? | ABBV | https://www.nasdaq.com/articles/whats-ahead-for-johnson-johnson-jnj-in-q4-earnings-2017-01-18 | nan | nan | Johnson & JohnsonJNJ , the bellwether of healthcare companies, is scheduled to report fourth-quarter 2016 and full-year results on Jan 24, before the opening bell. Last quarter, the company reported a positive earnings surprise of 1.82%.
J&J's share price was up 17.9% in the past one year, despite challenging conditions in the pharma sector owing to constant media and political focus on drug pricing issues. Its robust performance was primarily backed by consistently strong earnings results as well as regular positive news flow and regulatory updates. Its share price movement also outshines the 1.0% increase witnessed by the Zacks classified Large-Cap Pharma industry.
Johnson & Johnson Price and EPS Surprise
Johnson & Johnson Price and EPS Surprise | Johnson & Johnson Quote
Will J&J be able to beat estimates this time as well?
Let's see how things are shaping up for this announcement.
Will the Pharma Segment Continue to Drive Results?
The Pharmaceutical segment has been performing well and should continue to do so in the to-be-reported quarter on the back of strong sales of new launches and core growth products.
New products like Imbruvica, Xarelto and Darzalex are performing impressively. Robust patient uptake in new indications, product approvals and demonstrated efficacy is propelling sales of Imbruvica. While Xarelto continues to gain market share and broader reimbursement, Darzalex is gaining acceptance as a treatment of multiple myeloma. Other drugs like Stelara, Invega Sustenna, Remicade and Simponi should also contribute meaningfully to the top line.
However, hepatitis C virus (HCV) treatment Olysio's sales will keep declining due to increased competition, while Invega continues to face a sales decline due to generic competition. Though Invokana/Invokamet sales were down in the third quarter, the drug is expected to return to growth backed by its strong access position across U.S. commercial plans and Medicare Part D, and the Sep 2016 approval of Invokamet XR. Meanwhile, label expansion for products like Stelara and Darzalex should drive their sales.
J&J continues to expect no biosimilar competition for Procrit. The company also does not expect generic competition for Zytiga, Risperdal Consta, and Invega Sustenna to impact 2016 results. Meanwhile, Pfizer, Inc. PFE launched its biosimilar version of Remicade in late Nov 2016. We believe that though the rate of penetration of a biosimilar entrant may be modest, its launch will remain a source of concern, clouding the prospects of the Pharma segment in 2017.
The Medical Device business will continue to be affected by weak global market conditions and pricing challenges. The company is working on driving growth in this segment through new product launches and by transforming its commercial models.
Meanwhile, dismal market growth is hurting sales in the Consumer business.
Earnings Whispers
Our proven model does not conclusively show that J&J is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Most Accurate estimate stands at $1.54 while the Zacks Consensus Estimate is pegged higher at $1.56. So, J&J has an Earnings ESP of -1.28%. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: J&J's Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings beat.
Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
A couple of stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are:
AbbVie Inc. ABBV is expected to release results on Jan 27. The company has an Earnings ESP of +0.83% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Eli Lilly and Company LLY has an Earnings ESP of +3.06% and a Zacks Rank #3. The company is scheduled to release results on Jan 31.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider A couple of stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & JohnsonJNJ , the bellwether of healthcare companies, is scheduled to report fourth-quarter 2016 and full-year results on Jan 24, before the opening bell. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider A couple of stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Johnson & Johnson Price and EPS Surprise Johnson & Johnson Price and EPS Surprise | Johnson & Johnson Quote Will J&J be able to beat estimates this time as well? | Stocks to Consider A couple of stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 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) for this to happen. | Stocks to Consider A couple of stocks in the large cap pharmaceuticals sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is expected to release results on Jan 27. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Co. (LLY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company reported a positive earnings surprise of 1.82%. |
26308.0 | 2017-01-18 00:00:00 UTC | 5 Most Important Drugs to Johnson & Johnson in 2017 | ABBV | https://www.nasdaq.com/articles/5-most-important-drugs-johnson-johnson-2017-2017-01-18 | nan | nan | Johnson & Johnson (NYSE: JNJ) generates billions of dollars by selling consumer goods and medical devices, but its pharmaceuticals business is the one that's most likely to drive the company's growth in the coming year. Here's why Remicade, Xarelto, Imbruvica, Darzalex, and Stelara may have the biggest impact on the company's financials in 2017.
Image source: Getty Images.
No. 1: Remicade
Autoimmune drug Remicade's $1.8 billion in sales represented more than 20% of Johnson & Johnson's total $8.4 billion in global pharmaceutical sales during the third quarter, and that could be a problem for the company given that Pfizer launched a Remicade biosimilar, Inflectra, in the U.S. in November.
Remicade generates $1.2 billion per quarter in the U.S., where it will now have to compete against Inflectra, and given that Inflectra launched with a 15% cheaper price tag, there's reason to think Remicade's sales could fall and create a headwind that's tough to overcome.
During the company's third-quarter conference call, management reminded investors that Remicade's market share in other markets where it's competing against biosimilars is still roughly 90%. Obviously, if Remicade can maintain a similar share in the U.S., then any headwinds caused by Inflectra's launch will be more easily overcome. However, there's no guarantee Johnson & Johnson won't have to cut prices substantially to maintain its market share, or that insurers won't encourage patients to swap to Inflectra by giving it preferential treatment in their drug formularies compared to Remicade. Because there's uncertainty, investors will want to pay close attention to Remicade's sales trajectory over the coming four quarters.
No. 2: Xarelto
With $529 million in Q3 sales, the anticoagulant Xarelto is already one of Johnson & Johnson's top sellers. Yet, despite its impressive $2 billion annualized run rate, there could still be room for sales to climb.
In the third quarter, Xarelto's total prescription market share was just 17.5%, up 1.7% year over year. Xarelto's market share growth came mostly at the expense of warfarin, a decades-old drug that remains the most prescribed anticoagulant on the market, with a share of about 55%, down from 62% in Q3 2015.
Because Xarelto is effective, requires less testing, and has fewer dietary restrictions than warfarin, I don't think it's a stretch to think sales could continue growing meaningfully in 2017. After all, Xarelto's delivered double-digit sales growth in every year since launching in 2011, and third-quarter sales were up a healthy 14.8% from a year ago.
No. 3: Imbruvica
Johnson & Johnson co-markets Imbruvica with AbbVie Inc. , and despite having to split Imbruvia with AbbVie, it's still accounting for a significant share of Johnson & Johnson's product sales growth.
Imbruvica sales increased 92% globally in the third quarter, resulting in Johnson & Johnson reporting $349 million in sales from the drug in the period. The expansion of Imbruvica's label to include earlier use in leukemia has made it a leading therapy in chronic lymphocytic leukemia, mantle cell lymphoma, and Waldenstom macroglobulinemia, and that should help propel sales higher this year.
In the future, Johnson & Johnson plans seven new label expansion filings, including four that could add $500 million or more to Imbruvica's annual sales.
No. 4 Darzalex
Three months after its launch, Darzalex has already become the most prescribed fourth-line therapy in multiple myeloma, a multibillion-dollar per year indication.
Johnson & Johnson pegs Darzalex as one of 10 new drugs it believes has billion-dollar blockbuster potential, but achieving that goal will rely on expanding Darzalex's use earlier in this indication.
In February, Johnson & Johnson should find out if it's able to take a big step toward its goal. After trials showed that using Darzalex's alongside the most commonly used multiple myeloma drug, Revlimid, improved outcomes, Johnson & Johnson filed for approval for this combination as a second-line treatment last August. An approval could significantly boost Darzalex's sales, given that Revlimid's sales are targeted to eclipse $8 billion this year.
No. 5: Stelara
Stelara's sales improved 32.8% year over year to $814 million in the third quarter, and revenue could increase even more this year, following the FDA's approval of its use in Crohn's disease last September.
Stelara is the first biologic approved for Crohn's disease that targets interleukin-12 and IL-23 cytokines, and the drug's efficacy and novel mechanism of action has Johnson & Johnson anticipating that it will quickly win favor with doctors and patients. According to management, between 70% and 80% of Crohn's disease patients taking anti-TNFs, including the top-selling Humira, are inadequately responding to treatment at the one-year mark.
Since there's an unmet need for new biologics that work better, and the market's anticipated growing 50% over the coming decade, management thinks this label expansion alone could add $500 million to Stelara's sales.
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Todd Campbell owns shares of Pfizer. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned.Like this article? Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this. The Motley Fool recommends Johnson and 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. | 3: Imbruvica Johnson & Johnson co-markets Imbruvica with AbbVie Inc. , and despite having to split Imbruvia with AbbVie, it's still accounting for a significant share of Johnson & Johnson's product sales growth. However, there's no guarantee Johnson & Johnson won't have to cut prices substantially to maintain its market share, or that insurers won't encourage patients to swap to Inflectra by giving it preferential treatment in their drug formularies compared to Remicade. According to management, between 70% and 80% of Crohn's disease patients taking anti-TNFs, including the top-selling Humira, are inadequately responding to treatment at the one-year mark. | 3: Imbruvica Johnson & Johnson co-markets Imbruvica with AbbVie Inc. , and despite having to split Imbruvia with AbbVie, it's still accounting for a significant share of Johnson & Johnson's product sales growth. In the future, Johnson & Johnson plans seven new label expansion filings, including four that could add $500 million or more to Imbruvica's annual sales. After trials showed that using Darzalex's alongside the most commonly used multiple myeloma drug, Revlimid, improved outcomes, Johnson & Johnson filed for approval for this combination as a second-line treatment last August. | 3: Imbruvica Johnson & Johnson co-markets Imbruvica with AbbVie Inc. , and despite having to split Imbruvia with AbbVie, it's still accounting for a significant share of Johnson & Johnson's product sales growth. 1: Remicade Autoimmune drug Remicade's $1.8 billion in sales represented more than 20% of Johnson & Johnson's total $8.4 billion in global pharmaceutical sales during the third quarter, and that could be a problem for the company given that Pfizer launched a Remicade biosimilar, Inflectra, in the U.S. in November. Imbruvica sales increased 92% globally in the third quarter, resulting in Johnson & Johnson reporting $349 million in sales from the drug in the period. | 3: Imbruvica Johnson & Johnson co-markets Imbruvica with AbbVie Inc. , and despite having to split Imbruvia with AbbVie, it's still accounting for a significant share of Johnson & Johnson's product sales growth. 1: Remicade Autoimmune drug Remicade's $1.8 billion in sales represented more than 20% of Johnson & Johnson's total $8.4 billion in global pharmaceutical sales during the third quarter, and that could be a problem for the company given that Pfizer launched a Remicade biosimilar, Inflectra, in the U.S. in November. 2: Xarelto With $529 million in Q3 sales, the anticoagulant Xarelto is already one of Johnson & Johnson's top sellers. |
26309.0 | 2017-01-18 00:00:00 UTC | Allergan's Uterine Fibroids Candidate Positive in Phase III | ABBV | https://www.nasdaq.com/articles/allergans-uterine-fibroids-candidate-positive-in-phase-iii-2017-01-18 | nan | nan | Allergan PlcAGN and European specialty pharma company Gedeon Richter reported encouraging results from a phase III study on their pipeline candidate, ulipristal acetate, a selective progesterone receptor modulator (SPRM), in women with abnormal bleeding due to uterine fibroids.
Venus II, the second of two pivotal phase III studies on ulipristal acetate assessed the efficacy and safety of ulipristal acetate.
Allergan's share price has declined 26.4% in the past one year, which compares favorably with the Zacks classified Medical-Generics Drugs industry's fall of 32.6%.
The co-primary efficacy endpoints were percentage of patients with the absence of uterine bleeding and the time to absence of bleeding on treatment during Treatment Course One (12-week duration). About 54.8% of the patients treated with 10 mg and 42% treated with ulipristal acetate 5 mg achieved absence of bleeding compared to none on placebo.
The most common adverse events on ulipristal acetate treatment included hot flush, headache, fatigue, nausea and headache.
The company expects to submit an NDA for the candidate in the second half of 2017.
We remind investors that Venus I, one of the two pivotal phase III clinical trials, also met all the co-primary and secondary endpoints and achieved statistically significant results.
Meanwhile, biopharmaceutical company AbbVie ABBV also has a pipeline candidate, elagolix, for the treatment of women with uterine fibroids. The candidate is currently in a phase III trial for the same and has bright prospects.
Zacks Rank & Key Picks
Allergan currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Anika Therapeutics Inc. ANIK and Enzo Biochem, Inc. ENZ . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Anika's earnings estimates for 2016 and 2017 were up 3.9% and 0.5%, respectively, over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price was up 35.3% in the past one year.
Enzo Biochem's loss estimates for 2017 narrowed 5.88% over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 22.50%. Its share price was up 48.7% in the past year.
Allergan PLC. Price
Allergan PLC. Price | Allergan PLC. 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. | Meanwhile, biopharmaceutical company AbbVie ABBV also has a pipeline candidate, elagolix, for the treatment of women with uterine fibroids. Click to get this free report Allergan PLC (AGN): Free Stock Analysis Report Enzo Biochem Inc. (ENZ): Free Stock Analysis Report Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Allergan PlcAGN and European specialty pharma company Gedeon Richter reported encouraging results from a phase III study on their pipeline candidate, ulipristal acetate, a selective progesterone receptor modulator (SPRM), in women with abnormal bleeding due to uterine fibroids. | Click to get this free report Allergan PLC (AGN): Free Stock Analysis Report Enzo Biochem Inc. (ENZ): Free Stock Analysis Report Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, biopharmaceutical company AbbVie ABBV also has a pipeline candidate, elagolix, for the treatment of women with uterine fibroids. About 54.8% of the patients treated with 10 mg and 42% treated with ulipristal acetate 5 mg achieved absence of bleeding compared to none on placebo. | Click to get this free report Allergan PLC (AGN): Free Stock Analysis Report Enzo Biochem Inc. (ENZ): Free Stock Analysis Report Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, biopharmaceutical company AbbVie ABBV also has a pipeline candidate, elagolix, for the treatment of women with uterine fibroids. Allergan PlcAGN and European specialty pharma company Gedeon Richter reported encouraging results from a phase III study on their pipeline candidate, ulipristal acetate, a selective progesterone receptor modulator (SPRM), in women with abnormal bleeding due to uterine fibroids. | Meanwhile, biopharmaceutical company AbbVie ABBV also has a pipeline candidate, elagolix, for the treatment of women with uterine fibroids. Click to get this free report Allergan PLC (AGN): Free Stock Analysis Report Enzo Biochem Inc. (ENZ): Free Stock Analysis Report Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Venus II, the second of two pivotal phase III studies on ulipristal acetate assessed the efficacy and safety of ulipristal acetate. |
26310.0 | 2017-01-15 00:00:00 UTC | 3 Bold Bets on the Future of Healthcare | ABBV | https://www.nasdaq.com/articles/3-bold-bets-future-healthcare-2017-01-15 | nan | nan | Healthcare is changing rapidly. Which companies will emerge as the huge winners with these major changes? We asked three of our healthcare contributors to weigh in on the subject. Here's why AbbVie (NYSE: ABBV) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Johnson & Johnson (NYSE: JNJ) , and Veeva Systems (NYSE: VEEV) could represent bold bets on the future of healthcare.
Image source: Getty Images.
Finding the elusive fountain of youth?
George Budwell ( AbbVie ): If anything qualifies as a moonshot effort, it's the partnership between AbbVie and Alphabet to cure age-related diseases. In 2014, AbbVie signed on to act as the pharma expert behind Alphabet's Calico LLC life-sciences company. The basic idea driving this unique partnership between a tech and a pharma giant is to develop breakthrough treatments for diseases like cancer and dementia that are often strongly associated with getting older.
While the two companies haven't revealed much about the collaboration -- beyond their plan to work out the molecular and genetic mechanisms promoting longevity in naked mole rats -- AbbVie has already sunk a hefty $500 million into this speculative effort. That's a strong sign that AbbVie is indeed serious about pursuing novel therapies with game-changing medical and commercial potential -- even if they do come with an unusually high risk of failure.
The bottom line: AbbVie and Alphabet's anti-aging collaboration is apparently still in the idea stage, based on the lack of actual clinical trials -- but it could one day revolutionize modern medicine, given its ambitious goal of understanding the molecular foundation of the aging process in humans.
Rise of the robots
Keith Speights(Verb Surgical) : Science fiction is becoming a reality all around us. Robots might not rule the world, but they're becoming increasingly important in nearly every area -- including healthcare. That's why I really like what Verb Surgical is doing.
Verb Surgical was founded by Alphabet and Johnson & Johnson in 2015. The goal of the two big companies in forming Verb was to develop a new generation of robot-assisted surgical systems using big data and machine learning.
The vision is for these robot surgical systems to analyze a video library of hundreds of previous surgeries and recommend where the surgeon should cut. This system would be smaller and less expensive than current systems like Intuitive Surgical 's daVinci robotic surgery device.
Verb Surgical doesn't have to start from scratch to make this possible. J&J already developed a basic prototype of the robot, and Alphabet already has the machine-learning technology necessary for the anatomical-recognition software.
If Verb Surgical succeeds -- and I suspect it will -- the future of healthcare will mean that surgeons will have plenty of help from smart technology. Instead of Mr. Roboto, we might be saying Dr. Roboto in just a few years.
Managing data to make the future possible
Brian Stoffel(Veeva Systems) : On the surface, my pick is nowhere near as bold or exciting as George's or Keith's, but I think it's every bit as vital to the healthcare sector churning out life-changing solutions in the decades to come. Veeva Systems was founded when Peter Gassner -- then an executive at salesforce.com -- realized that pharmaceutical companies had unique cloud needs that the one-size-fits-all model at salesforce couldn't adequately address.
So he started out by founding Veeva and focusing on customer relationship management with his Veeva CRM Suite. For most of the time since the company's 2007 founding, this has been Veeva's bread-and-butter business.
But over the past two years, a big new product -- Veeva Vault -- has been turning heads. The application allows employees across a company to use a single portal to record all of the relevant data necessary to bring a drug from the idea stage to clinical testing to market -- all while complying with the necessary regulations.
It's been a huge hit: In the most recent quarter, bookings for Vault exceeded CRM, and reviews have been so positive that Veeva will start offering Vault as a product outside of the life-sciences industry this year.
But the bottom line is this: Veeva's moat comes from both high switching costs and the gobs of data it collects to better serve its customers because its product can quickly become engrained within a company's standard operating procedure. It will be a force for bringing the medical field's bold bets to fruition, and it could yield huge results for patient investors.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brian Stoffel owns shares of Alphabet (A shares), Alphabet (C shares), and Veeva Systems. George Budwell has no position in any stocks mentioned. Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Veeva Systems. The Motley Fool recommends Johnson and 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 the two companies haven't revealed much about the collaboration -- beyond their plan to work out the molecular and genetic mechanisms promoting longevity in naked mole rats -- AbbVie has already sunk a hefty $500 million into this speculative effort. The bottom line: AbbVie and Alphabet's anti-aging collaboration is apparently still in the idea stage, based on the lack of actual clinical trials -- but it could one day revolutionize modern medicine, given its ambitious goal of understanding the molecular foundation of the aging process in humans. Here's why AbbVie (NYSE: ABBV) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Johnson & Johnson (NYSE: JNJ) , and Veeva Systems (NYSE: VEEV) could represent bold bets on the future of healthcare. | Here's why AbbVie (NYSE: ABBV) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Johnson & Johnson (NYSE: JNJ) , and Veeva Systems (NYSE: VEEV) could represent bold bets on the future of healthcare. George Budwell ( AbbVie ): If anything qualifies as a moonshot effort, it's the partnership between AbbVie and Alphabet to cure age-related diseases. In 2014, AbbVie signed on to act as the pharma expert behind Alphabet's Calico LLC life-sciences company. | Here's why AbbVie (NYSE: ABBV) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Johnson & Johnson (NYSE: JNJ) , and Veeva Systems (NYSE: VEEV) could represent bold bets on the future of healthcare. George Budwell ( AbbVie ): If anything qualifies as a moonshot effort, it's the partnership between AbbVie and Alphabet to cure age-related diseases. In 2014, AbbVie signed on to act as the pharma expert behind Alphabet's Calico LLC life-sciences company. | Here's why AbbVie (NYSE: ABBV) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Johnson & Johnson (NYSE: JNJ) , and Veeva Systems (NYSE: VEEV) could represent bold bets on the future of healthcare. George Budwell ( AbbVie ): If anything qualifies as a moonshot effort, it's the partnership between AbbVie and Alphabet to cure age-related diseases. In 2014, AbbVie signed on to act as the pharma expert behind Alphabet's Calico LLC life-sciences company. |
26311.0 | 2017-01-13 00:00:00 UTC | Coherus Offers Positive Phase III Data on Humira Biosimilar | ABBV | https://www.nasdaq.com/articles/coherus-offers-positive-phase-iii-data-on-humira-biosimilar-2017-01-13 | nan | nan | Coherus BioSciences, Inc.CHRS reported encouraging top-line data from an ongoing part 3, of a phase III study on its biosimilar version of AbbVie Inc.'s ABBV Humira (adalimumab), CHS-1420, for the treatment of patients with psoriasis.
Coherus share price has surged 91.9% in the past one year, while the Zacks classified Medical-Biomedical and Genetics industry's dipped 10.4%.
Meanwhile, data from part 2 of the study focused on maintenance of response through week 24. In part 2 (weeks 16 - 24), maintenance of PASI-75 was found to be similar across the three subsequent treatment groups - CHS-1420 followed by CHS-1420, Humira followed by CHS-1420, and Humira followed by Humira. CHS-1420 and HUMIRA were also observed to be similarly well tolerated across all groups during part 2. All the patients will receive CHS-1420 for an additional 24 weeks in the part 3.
Coherus plans to present the data from the study at the forthcoming scientific conference. The company expects to submit biologic license application in the first half of 2017.
We remind investors that last year Amgen Inc. AMGN received the FDA approval for its biosimilar version of Humira under the trade name Amjevita.
Zacks Rank & A Key Pick
Coherus currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Sucampo Pharmaceuticals, Inc. SCMP , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Sucampo's earnings estimates were stable at $1.22 for 2016, however inched up from $1.58 to $1.74 for 2017 over the last 60 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 35.5%.
Coherus BioSciences, Inc. Price
Coherus BioSciences, Inc. Price | Coherus BioSciences, Inc. Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Coherus BioSciences, Inc.CHRS reported encouraging top-line data from an ongoing part 3, of a phase III study on its biosimilar version of AbbVie Inc.'s ABBV Humira (adalimumab), CHS-1420, for the treatment of patients with psoriasis. Click to get this free report Amgen Inc. (AMGN): Free Stock Analysis Report Coherus BioSciences, Inc. (CHRS): Free Stock Analysis Report Sucampo Pharmaceuticals, Inc. (SCMP): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that last year Amgen Inc. AMGN received the FDA approval for its biosimilar version of Humira under the trade name Amjevita. | Click to get this free report Amgen Inc. (AMGN): Free Stock Analysis Report Coherus BioSciences, Inc. (CHRS): Free Stock Analysis Report Sucampo Pharmaceuticals, Inc. (SCMP): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Coherus BioSciences, Inc.CHRS reported encouraging top-line data from an ongoing part 3, of a phase III study on its biosimilar version of AbbVie Inc.'s ABBV Humira (adalimumab), CHS-1420, for the treatment of patients with psoriasis. Coherus BioSciences, Inc. Price Coherus BioSciences, Inc. Price | Coherus BioSciences, Inc. Quote Where Do Zacks' Investment Ideas Come From? | Coherus BioSciences, Inc.CHRS reported encouraging top-line data from an ongoing part 3, of a phase III study on its biosimilar version of AbbVie Inc.'s ABBV Humira (adalimumab), CHS-1420, for the treatment of patients with psoriasis. Click to get this free report Amgen Inc. (AMGN): Free Stock Analysis Report Coherus BioSciences, Inc. (CHRS): Free Stock Analysis Report Sucampo Pharmaceuticals, Inc. (SCMP): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Coherus BioSciences, Inc. Price Coherus BioSciences, Inc. Price | Coherus BioSciences, Inc. Quote Where Do Zacks' Investment Ideas Come From? | Coherus BioSciences, Inc.CHRS reported encouraging top-line data from an ongoing part 3, of a phase III study on its biosimilar version of AbbVie Inc.'s ABBV Humira (adalimumab), CHS-1420, for the treatment of patients with psoriasis. Click to get this free report Amgen Inc. (AMGN): Free Stock Analysis Report Coherus BioSciences, Inc. (CHRS): Free Stock Analysis Report Sucampo Pharmaceuticals, Inc. (SCMP): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In part 2 (weeks 16 - 24), maintenance of PASI-75 was found to be similar across the three subsequent treatment groups - CHS-1420 followed by CHS-1420, Humira followed by CHS-1420, and Humira followed by Humira. |
26312.0 | 2017-01-13 00:00:00 UTC | Terra Nova Asset Management LLC Buys Goldman Sachs Group Inc, Ulta Salon Cosmetics & ... | ABBV | https://www.nasdaq.com/articles/terra-nova-asset-management-llc-buys-goldman-sachs-group-inc-ulta-salon-cosmetics-2017-01 | nan | nan | Terra Nova Asset Management LLC
New Purchases: GS , ULTA , BMY , JBLU, PH, WDC, BA, EOG, D, UPS,
Added Positions:UTX, XLE, RTN, LMT, CELG, JNJ, IBA, MO, UNP, GOOGL,
Reduced Positions:BAC, AMZN, AYI, VMC, SMG, FB, SYK, ABBV, BABA, CTAS,
Sold Out:CHKP, XEL, ZLTQ, ILMN, HCN, GOOG, DB, F, RE, C,
For the details of Terra Nova Asset Management LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Terra+Nova+Asset+Management+LLC
These are the top 5 holdings of Terra Nova Asset Management LLC
SPDR Select Sector Fund - Energy Select Sector ( XLE ) - 27,660 shares, 4.38% of the total portfolio. Shares added by 15.54%
Alphabet Inc ( GOOGL ) - 2,079 shares, 3.46% of the total portfolio. Shares added by 12.50%
Amazon.com Inc ( AMZN ) - 2,159 shares, 3.4% of the total portfolio. Shares reduced by 41.27%
Raytheon Co ( RTN ) - 10,800 shares, 3.22% of the total portfolio. Shares added by 21.42%
AbbVie Inc ( ABBV ) - 23,311 shares, 3.07% of the total portfolio. Shares reduced by 7.21%
New Purchase: Goldman Sachs Group Inc (GS)
Terra Nova Asset Management LLC initiated holdings in Goldman Sachs Group Inc. The purchase prices were between $161.07 and $243.09, with an estimated average price of $203.06. The stock is now traded at around $244.30. The impact to the portfolio due to this purchase was 2.09%. The holdings were 4,142 shares as of 2016-12-31.
New Purchase: Ulta Salon Cosmetics & Fragrance Inc (ULTA)
Terra Nova Asset Management LLC initiated holdings in Ulta Salon Cosmetics & Fragrance Inc. The purchase prices were between $228.17 and $266.14, with an estimated average price of $249.77. The stock is now traded at around $261.40. The impact to the portfolio due to this purchase was 1.23%. The holdings were 2,288 shares as of 2016-12-31.
New Purchase: Bristol-Myers Squibb Company (BMY)
Terra Nova Asset Management LLC initiated holdings in Bristol-Myers Squibb Company. The purchase prices were between $49.23 and $59.61, with an estimated average price of $54.67. The stock is now traded at around $56.22. The impact to the portfolio due to this purchase was 1.17%. The holdings were 9,540 shares as of 2016-12-31.
New Purchase: JetBlue Airways Corp (JBLU)
Terra Nova Asset Management LLC initiated holdings in JetBlue Airways Corp. The purchase prices were between $16.93 and $22.79, with an estimated average price of $19.75. The stock is now traded at around $21.76. The impact to the portfolio due to this purchase was 0.84%. The holdings were 17,925 shares as of 2016-12-31.
New Purchase: Parker Hannifin Corp (PH)
Terra Nova Asset Management LLC initiated holdings in Parker Hannifin Corp. The purchase prices were between $119.29 and $144.98, with an estimated average price of $132.98. The stock is now traded at around $146.25. The impact to the portfolio due to this purchase was 0.82%. The holdings were 2,776 shares as of 2016-12-31.
New Purchase: Boeing Co (BA)
Terra Nova Asset Management LLC initiated holdings in Boeing Co. The purchase prices were between $132.25 and $157.81, with an estimated average price of $146.04. The stock is now traded at around $158.83. The impact to the portfolio due to this purchase was 0.79%. The holdings were 2,410 shares as of 2016-12-31.
Added: United Technologies Corp (UTX)
Terra Nova Asset Management LLC added to the holdings in United Technologies Corp by 40.21%. The purchase prices were between $98.67 and $110.98, with an estimated average price of $105.32. The stock is now traded at around $110.22. The impact to the portfolio due to this purchase was 0.66%. The holdings were 10,025 shares as of 2016-12-31.
Added: Raytheon Co ( RTN )
Terra Nova Asset Management LLC added to the holdings in Raytheon Co by 21.42%. The purchase prices were between $132.97 and $150.54, with an estimated average price of $142.11. The stock is now traded at around $145.99. The impact to the portfolio due to this purchase was 0.57%. The holdings were 10,800 shares as of 2016-12-31.
Added: Lockheed Martin Corp (LMT)
Terra Nova Asset Management LLC added to the holdings in Lockheed Martin Corp by 93.03%. The purchase prices were between $230.52 and $267.62, with an estimated average price of $249.91. The stock is now traded at around $254.53. The impact to the portfolio due to this purchase was 0.53%. The holdings were 2,106 shares as of 2016-12-31.
Added: Celgene Corp (CELG)
Terra Nova Asset Management LLC added to the holdings in Celgene Corp by 26.84%. The purchase prices were between $97.63 and $124.16, with an estimated average price of $111.36. The stock is now traded at around $117.48. The impact to the portfolio due to this purchase was 0.43%. The holdings were 8,365 shares as of 2016-12-31.
Added: Industrias Bachoco SAB de CV (IBA)
Terra Nova Asset Management LLC added to the holdings in Industrias Bachoco SAB de CV by 100.00%. The purchase prices were between $45.76 and $53.23, with an estimated average price of $49.54. The stock is now traded at around $48.18. The impact to the portfolio due to this purchase was 0.42%. The holdings were 8,100 shares as of 2016-12-31.
Added: Johnson & Johnson (JNJ)
Terra Nova Asset Management LLC added to the holdings in Johnson & Johnson by 67.90%. The purchase prices were between $110.99 and $120.31, with an estimated average price of $115.51. The stock is now traded at around $114.60. The impact to the portfolio due to this purchase was 0.42%. The holdings were 4,315 shares as of 2016-12-31.
Sold Out: Check Point Software Technologies Ltd (CHKP)
Terra Nova Asset Management LLC sold out the holdings in Check Point Software Technologies Ltd. The sale prices were between $76.17 and $86.33, with an estimated average price of $82.03.
Sold Out: Xcel Energy Inc (XEL)
Terra Nova Asset Management LLC sold out the holdings in Xcel Energy Inc. The sale prices were between $38.51 and $41.55, with an estimated average price of $39.99.
Sold Out: ZELTIQ Aesthetics Inc (ZLTQ)
Terra Nova Asset Management LLC sold out the holdings in ZELTIQ Aesthetics Inc. The sale prices were between $32.42 and $45.76, with an estimated average price of $40.31.
Sold Out: Illumina Inc (ILMN)
Terra Nova Asset Management LLC sold out the holdings in Illumina Inc. The sale prices were between $122.02 and $186.17, with an estimated average price of $138.55.
Sold Out: Welltower Inc (HCN)
Terra Nova Asset Management LLC sold out the holdings in Welltower Inc. The sale prices were between $61.01 and $73.79, with an estimated average price of $66.24.
Sold Out: Alphabet Inc (GOOG)
Terra Nova Asset Management LLC sold out the holdings in Alphabet Inc. The sale prices were between $736.08 and $813.11, with an estimated average price of $779.09.
Reduced: Bank of America Corporation (BAC)
Terra Nova Asset Management LLC reduced to the holdings in Bank of America Corporation by 65.97%. The sale prices were between $15.63 and $23.16, with an estimated average price of $19.26. The stock is now traded at around $23.01. The impact to the portfolio due to this sale was -3.01%. Terra Nova Asset Management LLC still held 44,550 shares as of 2016-12-31.
Reduced: Amazon.com Inc ( AMZN )
Terra Nova Asset Management LLC reduced to the holdings in Amazon.com Inc by 41.27%. The sale prices were between $719.07 and $844.36, with an estimated average price of $783.7. The stock is now traded at around $817.14. The impact to the portfolio due to this sale was -2.84%. Terra Nova Asset Management LLC still held 2,159 shares as of 2016-12-31.
Reduced: Acuity Brands Inc (AYI)
Terra Nova Asset Management LLC reduced to the holdings in Acuity Brands Inc by 26.71%. The sale prices were between $217.37 and $263.52, with an estimated average price of $242.67. The stock is now traded at around $215.18. The impact to the portfolio due to this sale was -0.64%. Terra Nova Asset Management LLC still held 2,975 shares as of 2016-12-31.
Reduced: Vulcan Materials Co (VMC)
Terra Nova Asset Management LLC reduced to the holdings in Vulcan Materials Co by 20.43%. The sale prices were between $106.47 and $136.04, with an estimated average price of $120.98. The stock is now traded at around $124.40. The impact to the portfolio due to this sale was -0.57%. Terra Nova Asset Management LLC still held 8,734 shares as of 2016-12-31.
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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. | Terra Nova Asset Management LLC New Purchases: GS , ULTA , BMY , JBLU, PH, WDC, BA, EOG, D, UPS, Added Positions:UTX, XLE, RTN, LMT, CELG, JNJ, IBA, MO, UNP, GOOGL, Reduced Positions:BAC, AMZN, AYI, VMC, SMG, FB, SYK, ABBV, BABA, CTAS, Sold Out:CHKP, XEL, ZLTQ, ILMN, HCN, GOOG, DB, F, RE, C, For the details of Terra Nova Asset Management LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Terra+Nova+Asset+Management+LLC These are the top 5 holdings of Terra Nova Asset Management LLC SPDR Select Sector Fund - Energy Select Sector ( XLE ) - 27,660 shares, 4.38% of the total portfolio. Shares added by 21.42% AbbVie Inc ( ABBV ) - 23,311 shares, 3.07% of the total portfolio. Added: Industrias Bachoco SAB de CV (IBA) Terra Nova Asset Management LLC added to the holdings in Industrias Bachoco SAB de CV by 100.00%. | Terra Nova Asset Management LLC New Purchases: GS , ULTA , BMY , JBLU, PH, WDC, BA, EOG, D, UPS, Added Positions:UTX, XLE, RTN, LMT, CELG, JNJ, IBA, MO, UNP, GOOGL, Reduced Positions:BAC, AMZN, AYI, VMC, SMG, FB, SYK, ABBV, BABA, CTAS, Sold Out:CHKP, XEL, ZLTQ, ILMN, HCN, GOOG, DB, F, RE, C, For the details of Terra Nova Asset Management LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Terra+Nova+Asset+Management+LLC These are the top 5 holdings of Terra Nova Asset Management LLC SPDR Select Sector Fund - Energy Select Sector ( XLE ) - 27,660 shares, 4.38% of the total portfolio. Shares added by 21.42% AbbVie Inc ( ABBV ) - 23,311 shares, 3.07% of the total portfolio. New Purchase: Ulta Salon Cosmetics & Fragrance Inc (ULTA) Terra Nova Asset Management LLC initiated holdings in Ulta Salon Cosmetics & Fragrance Inc. | Terra Nova Asset Management LLC New Purchases: GS , ULTA , BMY , JBLU, PH, WDC, BA, EOG, D, UPS, Added Positions:UTX, XLE, RTN, LMT, CELG, JNJ, IBA, MO, UNP, GOOGL, Reduced Positions:BAC, AMZN, AYI, VMC, SMG, FB, SYK, ABBV, BABA, CTAS, Sold Out:CHKP, XEL, ZLTQ, ILMN, HCN, GOOG, DB, F, RE, C, For the details of Terra Nova Asset Management LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Terra+Nova+Asset+Management+LLC These are the top 5 holdings of Terra Nova Asset Management LLC SPDR Select Sector Fund - Energy Select Sector ( XLE ) - 27,660 shares, 4.38% of the total portfolio. Shares added by 21.42% AbbVie Inc ( ABBV ) - 23,311 shares, 3.07% of the total portfolio. Shares reduced by 7.21% New Purchase: Goldman Sachs Group Inc (GS) Terra Nova Asset Management LLC initiated holdings in Goldman Sachs Group Inc. | Terra Nova Asset Management LLC New Purchases: GS , ULTA , BMY , JBLU, PH, WDC, BA, EOG, D, UPS, Added Positions:UTX, XLE, RTN, LMT, CELG, JNJ, IBA, MO, UNP, GOOGL, Reduced Positions:BAC, AMZN, AYI, VMC, SMG, FB, SYK, ABBV, BABA, CTAS, Sold Out:CHKP, XEL, ZLTQ, ILMN, HCN, GOOG, DB, F, RE, C, For the details of Terra Nova Asset Management LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Terra+Nova+Asset+Management+LLC These are the top 5 holdings of Terra Nova Asset Management LLC SPDR Select Sector Fund - Energy Select Sector ( XLE ) - 27,660 shares, 4.38% of the total portfolio. Shares added by 21.42% AbbVie Inc ( ABBV ) - 23,311 shares, 3.07% of the total portfolio. Terra Nova Asset Management LLC still held 44,550 shares as of 2016-12-31. |
26313.0 | 2017-01-12 00:00:00 UTC | 7 Reasons AbbVie's Stock Could Soar in 2017 | ABBV | https://www.nasdaq.com/articles/7-reasons-abbvies-stock-could-soar-2017-2017-01-12 | nan | nan | AbbVie (NYSE: ABBV) CEO Richard Gonzalez had a good story to tell at the J. P. Morgan Healthcare Conference on Wednesday. His company reeled off solid revenue and earnings growth in 2016 and rewarded shareholders with one of the highest dividends around.
That's the past, though. What about 2017? Here are seven reasons Gonzalez highlighted that could propel AbbVie's stock higher this year.
Image source: Getty Images.
1. Imbruvica
There are several potential catalysts for AbbVie and partner Johnson & Johnson (NYSE: JNJ) this year with Imbruvica. The two companies hope to receive U.S. regulatory approval for an additional indication for the drug as a second-line treatment of marginal zone lymphoma (MZL). AbbVie and J&J also plan to submit for U.S. approval of Imbruvica as a second-line treatment of chronic graft-versus-host disease (GVHD).
In addition, Gonzalez noted that data is expected to be announced this year from a late-stage study of Imbruvica as a potential first-line treatment of mantle cell lymphoma (MCL). Interim data from other clinical studies evaluating the drug in treating other non-Hodgkin's lymphomas could also be reported in 2017.
2. Venclexta
Venclexta has already won approval as a second-line treatment for chronic lymphocytic leukemia (CLL), for people who have a chromosomal abnormality called 17p deletion. However, Gonzalez acknowledged that this is a pretty limited indication.
AbbVie should announce results from a late-stage study of Venclexta as a first-line treatment of relapsed/refractory CLL. If these results look good, the company could submit for regulatory approval in 2017.
3. Next-gen HCV
In a question-and-answer session following his presentation at the J. P. Morgan conference, Gonzalez admitted that the launch of AbbVie's first-generation hepatitis C virus (HCV) drug Viekira was somewhat disappointing. He hopes for better performance from the company's next-generation HCV combo in 2017.
AbbVie reported positive results in 2016 from a late-stage study of its pan-genotypic HCV regimen of glecaprevir/pibrentasvir. The company submitted for U.S. approval in December. Assuming the next-generation combo gets a green light from the FDA, AbbVie will launch the product later this year.
4. Elagolix
Elagolix holds the potential to open the door for AbbVie to an entirely new market. AbbVie reported good results from a couple of late-stage studies of the drug in treating endometriosis in October 2016.
Gonzalez said that the company expects to file for regulatory approval of Elagolix this year. AbbVie thinks it will be able to launch the drug commercially in 2018.
5. Rova-T
AbbVie picked up Rova-T with its acquisition of Stemcentrx in 2016. Gonzalez touted the potential for the drug to reach peak annual sales of up to $5 billion. This year should shed some light on whether or not that goal is really attainable.
Final data for the primary outcome measure from a phase 2 study of Rova-T as a third-line treatment of small cell lung cancer is expected in the first half of 2017. Gonzalez indicated that AbbVie expects to file for approval this year based on the results of this study. The company also plans to start a late-stage study of Rova-T as a first-line maintenance therapy for small cell lung cancer.
6. Risankizumab
Gonzalez thinks that Humira could be getting some help in the autoimmune disease market in the not-too-distant future. Several clinical studies are in progress for pipeline candidate risankizumab.
Results from a late-stage clinical study of risankizumab in treating psoriasis will be announced this year. AbbVie also expects to announce results from a mid-stage study evaluating the humanized monoclonal antibody in treating psoriatic arthritis. If all goes well, the company could launch risankizumab for its first indication in 2019.
7. ABT-494
Another promising autoimmune disease treatment in AbbVie's pipeline is ABT-494. Gonzalez thinks the JAK1 selective inhibitor could launch in 2019 as a treatment of rheumatoid arthritis.
However, the story for ABT-494 in 2017 will be about other potential indications. AbbVie should announce results this year from a couple of mid-stage studies evaluating ABT-494 in treating Crohn's disease and atopic dermatitis.
Plus more
Rich Gonzalez said that these seven products plus already approved multiple sclerosis drug Zinbryta could combine to deliver AbbVie peak annual revenue of more than $25 billion. That doesn't count that other little drug the company markets -- Humira. Gonzalez estimated that, by 2020, Humira could generate sales of over $18 billion.
However, Gonzalez also noted that "not everything has gone as planned" in the past. It probably won't in the future, either. I suspect AbbVie might have a tougher challenge meeting its projections for Rova-T than the company anticipates.
On the other hand, AbbVie could get a helping hand from Uncle Sam. Gonzalez said that he's "never been more hopeful" than he is now about the prospects for meaningful corporate tax reform, particularly on the issue of repatriating money parked overseas.
AbbVie projects that it will continue to deliver average annual earnings growth in the double-digit percentages. That sounds very attainable. I expect the stock will again be a winner in 2017.
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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. | Plus more Rich Gonzalez said that these seven products plus already approved multiple sclerosis drug Zinbryta could combine to deliver AbbVie peak annual revenue of more than $25 billion. AbbVie (NYSE: ABBV) CEO Richard Gonzalez had a good story to tell at the J. P. Morgan Healthcare Conference on Wednesday. Here are seven reasons Gonzalez highlighted that could propel AbbVie's stock higher this year. | AbbVie reported good results from a couple of late-stage studies of the drug in treating endometriosis in October 2016. AbbVie should announce results this year from a couple of mid-stage studies evaluating ABT-494 in treating Crohn's disease and atopic dermatitis. AbbVie (NYSE: ABBV) CEO Richard Gonzalez had a good story to tell at the J. P. Morgan Healthcare Conference on Wednesday. | Gonzalez indicated that AbbVie expects to file for approval this year based on the results of this study. AbbVie should announce results this year from a couple of mid-stage studies evaluating ABT-494 in treating Crohn's disease and atopic dermatitis. AbbVie (NYSE: ABBV) CEO Richard Gonzalez had a good story to tell at the J. P. Morgan Healthcare Conference on Wednesday. | AbbVie (NYSE: ABBV) CEO Richard Gonzalez had a good story to tell at the J. P. Morgan Healthcare Conference on Wednesday. Here are seven reasons Gonzalez highlighted that could propel AbbVie's stock higher this year. Imbruvica There are several potential catalysts for AbbVie and partner Johnson & Johnson (NYSE: JNJ) this year with Imbruvica. |
26314.0 | 2017-01-10 00:00:00 UTC | XLV, UNH, ABBV, MDT: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-unh-abbv-mdt-large-inflows-detected-etf-2017-01-10 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $413.2 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 195,565,324 to 201,365,324). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.1%, AbbVie Inc. (Symbol: ABBV) is off about 0.3%, and Medtronic PLC (Symbol: MDT) is higher by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $71.30. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.1%, AbbVie Inc. (Symbol: ABBV) is off about 0.3%, and Medtronic PLC (Symbol: MDT) is higher by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $413.2 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 195,565,324 to 201,365,324). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.1%, AbbVie Inc. (Symbol: ABBV) is off about 0.3%, and Medtronic PLC (Symbol: MDT) is higher by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $71.30. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.1%, AbbVie Inc. (Symbol: ABBV) is off about 0.3%, and Medtronic PLC (Symbol: MDT) is higher by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $413.2 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 195,565,324 to 201,365,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $71.30. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.1%, AbbVie Inc. (Symbol: ABBV) is off about 0.3%, and Medtronic PLC (Symbol: MDT) is higher by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $413.2 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 195,565,324 to 201,365,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $71.30. |
26315.0 | 2017-01-10 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for January 11, 2017 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-ex-dividend-date-scheduled-january-11-2017-2017-01-10 | nan | nan | AbbVie Inc. ( ABBV ) will begin trading ex-dividend on January 11, 2017. A cash dividend payment of $0.64 per share is scheduled to be paid on February 15, 2017. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 12.28% increase over prior dividend payment.
The previous trading day's last sale of ABBV was $64.21, representing a -5.75% decrease from the 52 week high of $68.12 and a 26.62% increase over the 52 week low of $50.71.
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 $3.7. Zacks Investment Research reports ABBV's forecasted earnings growth in 2016 as 12.4%, compared to an industry average of 4.5%.
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:
iShares U.S. Healthcare ETF ( IYH )
Vanguard Health Care ETF - DNQ ( VHT )
iShares Morningstar Large-Cap ETF ( JKD )
SPDR S&P Dividend ETF ( SDY )
iShares iBonds Dec 2022 Term Corporate ETF ( IBDN ).
The top-performing ETF of this group is JKD with an increase of 4.23% over the last 100 days. IYH has the highest percent weighting of ABBV at 3.74%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 2016 as 12.4%, compared to an industry average of 4.5%. 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: iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF - DNQ ( VHT ) iShares Morningstar Large-Cap ETF ( JKD ) SPDR S&P Dividend ETF ( SDY ) iShares iBonds Dec 2022 Term Corporate ETF ( IBDN ). 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 January 11, 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: iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF - DNQ ( VHT ) iShares Morningstar Large-Cap ETF ( JKD ) SPDR S&P Dividend ETF ( SDY ) iShares iBonds Dec 2022 Term Corporate ETF ( IBDN ). | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. AbbVie Inc. ( ABBV ) will begin trading ex-dividend on January 11, 2017. The previous trading day's last sale of ABBV was $64.21, representing a -5.75% decrease from the 52 week high of $68.12 and a 26.62% increase over the 52 week low of $50.71. |
26316.0 | 2017-01-10 00:00:00 UTC | AbbVie's HCV Combo Favorable in Japanese Phase III Study | ABBV | https://www.nasdaq.com/articles/abbvies-hcv-combo-favorable-in-japanese-phase-iii-study-2017-01-10 | nan | nan | AbbVie Inc.ABBV announced positive top-line data from a phase III study on its pan-genotypic ribavirin (RBV)-free regimen of glecaprevir/pibrentasvir (G/P) in Japanese patients. The combination drug is being assessed for the treatment of chronic hepatitis C virus (HCV).
So far this year, AbbVie's share price has increased 2.6%, better than the 1.8% gain recorded by the Zacks classified Large-Cap Pharma industry.
HCV affects around 1 million people in Japan, which accounts for one of the highest rates of the infection in the industrialized world. Moreover, around 60-70% of these patients are infected with GT1 chronic HCV, indicating significant need for medicines in this field.
CERTAIN-1, which compared eight weeks of treatment with the G/P regimen with 12 weeks of ombitasvir/paritaprevir/ritonavir (OBV/PTV/r), is part of AbbVie's global G/P clinical development program.
In Dec 2016, AbbVie submitted a New Drug Application (NDA) to the FDA for G/P based on data from eight registration studies in the G/P clinical development program. Data from the studiesshowed that eight weeks of treatment with G/P achieved high SVR12 rates across all major genotypes of chronic HCV.
AbbVie has a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Epizyme, Inc. EPZM , Kite Pharma, Inc. KITE and Anika Therapeutics Inc. ANIK . While Epizyme and Kite Pharma sport a Zacks Rank #1 (Strong Buy), Anika has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Epizyme's loss estimates narrowed 2.3% for 2017 over the last 60 days. The company posted lower-than-expected losses in each of the four trailing quarters, with an average positive surprise of 14.03%.
Kite Pharma's loss estimates narrowed by 2.1% for 2017 over the last 30 days. The company posted a positive earnings surprise in two of the four trailing quarters, with an average beat of 7.89%.
Anika's earnings estimates for 2017 were up 0.5% in the last 60 days. The company has recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price gained 28.3% in 2016.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc.ABBV announced positive top-line data from a phase III study on its pan-genotypic ribavirin (RBV)-free regimen of glecaprevir/pibrentasvir (G/P) in Japanese patients. So far this year, AbbVie's share price has increased 2.6%, better than the 1.8% gain recorded by the Zacks classified Large-Cap Pharma industry. In Dec 2016, AbbVie submitted a New Drug Application (NDA) to the FDA for G/P based on data from eight registration studies in the G/P clinical development program. | Click to get this free report Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report Kite Pharma, Inc. (KITE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Epizyme, Inc. (EPZM): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced positive top-line data from a phase III study on its pan-genotypic ribavirin (RBV)-free regimen of glecaprevir/pibrentasvir (G/P) in Japanese patients. So far this year, AbbVie's share price has increased 2.6%, better than the 1.8% gain recorded by the Zacks classified Large-Cap Pharma industry. | So far this year, AbbVie's share price has increased 2.6%, better than the 1.8% gain recorded by the Zacks classified Large-Cap Pharma industry. Click to get this free report Anika Therapeutics Inc. (ANIK): Free Stock Analysis Report Kite Pharma, Inc. (KITE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Epizyme, Inc. (EPZM): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced positive top-line data from a phase III study on its pan-genotypic ribavirin (RBV)-free regimen of glecaprevir/pibrentasvir (G/P) in Japanese patients. | AbbVie has a Zacks Rank #3 (Hold). AbbVie Inc.ABBV announced positive top-line data from a phase III study on its pan-genotypic ribavirin (RBV)-free regimen of glecaprevir/pibrentasvir (G/P) in Japanese patients. So far this year, AbbVie's share price has increased 2.6%, better than the 1.8% gain recorded by the Zacks classified Large-Cap Pharma industry. |
26317.0 | 2017-01-09 00:00:00 UTC | Pfizer's Humira Biosimilar Meets Primary Endpoint in Study (Revised) | ABBV | https://www.nasdaq.com/articles/pfizers-humira-biosimilar-meets-primary-endpoint-in-study-revised-2017-01-09 | nan | nan | Pfizer, Inc.PFE announced positive top-line results from the comparative REFLECTIONS B538-02 study on its investigational compound, PF-06410293, a potential biosimilar to AbbVie Inc.'s ABBV Humira (adalimumab) approved for the treatment of patients with rheumatoid arthritis.
Pfizer's three-month share price movement shows that the stock has outperformed the Zacks classified Large Cap Pharma industry. Specifically, the company lost 0.4%, while the industry lost 3.3%.
Coming back to the latest news, REFLECTIONS B538-02 is a comparative safety and efficacy study on PF-06410293, in combination with methotrexate, compared with a combination of Humira and methotrexate, in patients with moderate-to-severe rheumatoid arthritis. Data from the study showed that the primary endpoint of the American College of Rheumatology 20 (ACR20) response rate was equivalent for PF-06410293 and Humira.
Humira, which is currently approved for several indications, generated sales of $14 billion in 2015, up 11.7% year over year.
We remind investors that Amgen, Inc.'s AMGN biosimilar version of Humira, Amjevita, received FDA approval in Sep 2016. However, Amgen does not expect to launch Amjevita in 2017 due to an ongoing litigation with AbbVie.
Pfizer's biosimilar portfolio got a significant boost from the company's Hospira acquisition in 2015. The company launched Inflectra -- a biosimilar version of Johnson & Johnson JNJ and Merck's blockbuster drug Remicade -- in the U.S. late last November. Inflectra is the first and only biosimilar monoclonal antibody (mAb) therapy, and the second biosimilar approved in the U.S.
Pfizer's pipeline consists of eight distinct biosimilar molecules in mid- to late-stage development, apart from several others in earlier stages.
Pfizer believes that the market for biosimilars is huge and can grow to $17-$20 billion by 2020. In the third quarter of 2016, the company recorded biosimilar revenues of $83 million.
Pfizer, Inc. Price
Pfizer, Inc. Price | Pfizer, Inc. Quote
Zacks Rank
Pfizer currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
(We are reissuing this article to correct a mistake. The original article, issued on Jan 6, 2017, should no longer be relied upon.)
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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. | Pfizer, Inc.PFE announced positive top-line results from the comparative REFLECTIONS B538-02 study on its investigational compound, PF-06410293, a potential biosimilar to AbbVie Inc.'s ABBV Humira (adalimumab) approved for the treatment of patients with rheumatoid arthritis. However, Amgen does not expect to launch Amjevita in 2017 due to an ongoing litigation with AbbVie. Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Pfizer, Inc.PFE announced positive top-line results from the comparative REFLECTIONS B538-02 study on its investigational compound, PF-06410293, a potential biosimilar to AbbVie Inc.'s ABBV Humira (adalimumab) approved for the treatment of patients with rheumatoid arthritis. However, Amgen does not expect to launch Amjevita in 2017 due to an ongoing litigation with AbbVie. | Pfizer, Inc.PFE announced positive top-line results from the comparative REFLECTIONS B538-02 study on its investigational compound, PF-06410293, a potential biosimilar to AbbVie Inc.'s ABBV Humira (adalimumab) approved for the treatment of patients with rheumatoid arthritis. Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. However, Amgen does not expect to launch Amjevita in 2017 due to an ongoing litigation with AbbVie. | Pfizer, Inc.PFE announced positive top-line results from the comparative REFLECTIONS B538-02 study on its investigational compound, PF-06410293, a potential biosimilar to AbbVie Inc.'s ABBV Humira (adalimumab) approved for the treatment of patients with rheumatoid arthritis. However, Amgen does not expect to launch Amjevita in 2017 due to an ongoing litigation with AbbVie. Click to get this free report Pfizer, Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26318.0 | 2017-01-09 00:00:00 UTC | After Hours Most Active for Jan 9, 2017 : BAC, PFE, ELY, ABBV, GE, PENN, MSFT, MPEL, CTXS, AAPL, C, CTSH | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-jan-9-2017-bac-pfe-ely-abbv-ge-penn-msft-mpel-ctxs-aapl-c-ctsh | nan | nan | The NASDAQ 100 After Hours Indicator is up .37 to 5,025.27. The total After hours volume is currently 44,219,567 shares traded.
The following are the most active stocks for the after hours session :
Bank of America Corporation ( BAC ) is unchanged at $22.55, with 4,820,414 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2017. The consensus EPS forecast is $0.44. BAC is scheduled to provide an earnings report on 1/13/2017, for the fiscal quarter ending Dec2016. The consensus earnings per share forecast is 0.38 per share, which represents a 28 percent increase over the EPS one Year Ago
Pfizer, Inc. ( PFE ) is unchanged at $33.47, with 2,741,598 shares traded. PFE's current last sale is 88.08% of the target price of $38.
Callaway Golf Company ( ELY ) is +0.01 at $10.89, with 2,368,357 shares traded. As reported by Zacks, the current mean recommendation for ELY is in the "buy range".
AbbVie Inc. ( ABBV ) is unchanged at $64.21, with 2,095,269 shares traded. ABBV's current last sale is 91.73% of the target price of $70.
General Electric Company ( GE ) is unchanged at $31.46, with 1,747,149 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Penn National Gaming, Inc. ( PENN ) is +0.18 at $13.44, with 1,633,957 shares traded. As reported by Zacks, the current mean recommendation for PENN is in the "buy range".
Microsoft Corporation ( MSFT ) is +0.1 at $62.74, with 1,607,115 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $0.78. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Melco Crown Entertainment Limited ( MPEL ) is +0.15 at $16.15, with 1,494,813 shares traded. MPEL's current last sale is 85.22% of the target price of $18.95.
Citrix Systems, Inc. ( CTXS ) is unchanged at $90.79, with 1,438,679 shares traded. CTXS's current last sale is 98.68% of the target price of $92.
Apple Inc. ( AAPL ) is -0.03 at $118.96, with 1,432,315 shares traded., following a 52-week high recorded in today's regular session.
Citigroup Inc. ( C ) is unchanged at $60.22, with 1,266,400 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $1.11. As reported by Zacks, the current mean recommendation for C is in the "buy range".
Cognizant Technology Solutions Corporation ( CTSH ) is +0.12 at $56.70, with 1,248,681 shares traded. As reported by Zacks, the current mean recommendation for CTSH is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ( ABBV ) is unchanged at $64.21, with 2,095,269 shares traded. ABBV's current last sale is 91.73% of the target price of $70. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is unchanged at $22.55, with 4,820,414 shares traded. | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. AbbVie Inc. ( ABBV ) is unchanged at $64.21, with 2,095,269 shares traded. ABBV's current last sale is 91.73% of the target price of $70. | AbbVie Inc. ( ABBV ) is unchanged at $64.21, with 2,095,269 shares traded. ABBV's current last sale is 91.73% of the target price of $70. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is unchanged at $22.55, with 4,820,414 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $64.21, with 2,095,269 shares traded. ABBV's current last sale is 91.73% of the target price of $70. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is unchanged at $22.55, with 4,820,414 shares traded. |
26319.0 | 2017-01-08 00:00:00 UTC | Will Johnson & Johnson Shock Investors with a Spin-off in 2017? | ABBV | https://www.nasdaq.com/articles/will-johnson-johnson-shock-investors-spin-2017-2017-01-08 | nan | nan | Every new year brings the possibility of surprise.
Who would have thought that the Chicago Cubs would win the World Series at the beginning of 2016? Maybe something even more surprising could happen this year, like Kim Kardashian forsaking all publicity. On second thought, maybe not. There is one potential surprise, though, that I think has at least a tiny possibility of actually happening this year. Here's why Johnson & Johnson (NYSE: JNJ) could shock the investing world with a spin-off in 2017.
Image source: Getty Images.
Two sluggish segments and one that's solid
When you think of Johnson & Johnson, what first comes to mind? There are many possible answers, from Band-Aids and baby shampoo to Xarelto and Zytiga. J&J's scope is so broad that it's basically multiple companies under one umbrella.
Band-Aids, baby shampoo, and dozens of other products fall into Johnson & Johnson's consumer business segment. While this segment might have the most well-known products, sales aren't doing so well. J&J's consumer segment reported a year-over-year drop in sales of 3.1% during the first three quarters of 2016.
Another business segment is also struggling somewhat: medical devices. During the first three quarters of 2016, J&J's medical device sales slipped 0.2% from the prior year period. However, the segment generated revenue during the period of $18.7 billion -- a lot more than the roughly $10.2 billion made by the company's consumer business.
Xarelto, Zytiga, and a host of other drugs belong to J&J's pharmaceuticals segment. Unlike the company's other two segments, pharmaceuticals sales are growing solidly -- up 8% year over year in the first three quarters of 2016. It's also by far the most profitable business segment for Johnson & Johnson.
A relevant precedent
This big gap in performance among different business segments isn't unusual. However, such gaps have also played an important role in cases made by other companies for spinning off segments to unlock shareholder value.
Probably the most relevant precedent for J&J is Abbott Laboratories '(NYSE: ABT) decision in 2011 to spin off its pharmaceuticals business into a new company. Abbott's premise was that its parts were worth more separate than combined. The spin-off was completed by early 2013, with the new AbbVie (NYSE: ABBV) focusing on innovative drugs and Abbott focusing on diagnostics and medical devices.
Abbott arguably had less of a case for a spin-off in 2011 than J&J does right now. Sales for its proprietary pharmaceuticals business were up 8% from the prior year -- the same as J&J's pharmaceuticals segment's 2016 performance. Unlike J&J, though, Abbott's diagnostics and medical device sales were also growing.
Did Abbott's spin-off of AbbVie unlock value for shareholders? Abbott's stock increased by just 17% in the five years prior to AbbVie's launch. Over the next four years, Abbott's stock rose nearly 24%, while AbbVie's share price soared over 80%.
That's a slam dunk case for spinning off, right? Not necessarily. The initial five-year period included the huge market plunge in 2008 and 2009. Still, though, I doubt very many people who owned Abbott stock back in 2011 and 2012 are disappointed now that the company spun off AbbVie.
What to spin off?
If Johnson & Johnson did opt to spin off a business segment as a separate entity, which segments would stay and which would go? The least likely choice would be to create three separate companies for each business segment. I'd say that alternative has roughly the same chances as the Chicago Cubs winning another world championship -- in hockey.
Another option would be for J&J to keep its consumer and medical device segments and spin off pharmaceuticals as its own entity. This would be similar to what Abbott did with AbbVie.
Perhaps the next best choice would be for the company to spin off its medical device segment. That would leave J&J with its higher-growth pharmaceuticals business and all of its beloved brands for which the company is best known.
Why not just sell the medical device segment instead? Taxes. Spin-offs can be done in a way that doesn't generate hundreds of millions of dollars in tax payments that would be required with a sale to another company.
Don't be surprised
Could Johnson & Johnson stun investors by announcing a spin-off this year? It's certainly within the realm of possibility. Don't be surprised, though, if J&J doesn't make any big moves in 2017.
The odds of a spin-off are really low. While many healthcare stocks languished last year, J&J's stock price gained nearly 15%. Also, even though sales for J&J's consumer and medical device segments aren't growing right now, the businesses are both quite profitable.
My view is that the more likely shock from the healthcare giant this year will be the opposite of a spin-off -- a major acquisition. Then again, considering J&J's history, that probably wouldn't be shocking at all.
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Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Johnson and Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The spin-off was completed by early 2013, with the new AbbVie (NYSE: ABBV) focusing on innovative drugs and Abbott focusing on diagnostics and medical devices. Did Abbott's spin-off of AbbVie unlock value for shareholders? Abbott's stock increased by just 17% in the five years prior to AbbVie's launch. | The spin-off was completed by early 2013, with the new AbbVie (NYSE: ABBV) focusing on innovative drugs and Abbott focusing on diagnostics and medical devices. Did Abbott's spin-off of AbbVie unlock value for shareholders? Abbott's stock increased by just 17% in the five years prior to AbbVie's launch. | The spin-off was completed by early 2013, with the new AbbVie (NYSE: ABBV) focusing on innovative drugs and Abbott focusing on diagnostics and medical devices. Did Abbott's spin-off of AbbVie unlock value for shareholders? Abbott's stock increased by just 17% in the five years prior to AbbVie's launch. | The spin-off was completed by early 2013, with the new AbbVie (NYSE: ABBV) focusing on innovative drugs and Abbott focusing on diagnostics and medical devices. Did Abbott's spin-off of AbbVie unlock value for shareholders? Abbott's stock increased by just 17% in the five years prior to AbbVie's launch. |
26320.0 | 2017-01-05 00:00:00 UTC | Lannet's Lopinavir, Ritonavir Approved to Treat HIV in US | ABBV | https://www.nasdaq.com/articles/lannets-lopinavir-ritonavir-approved-treat-hiv-us-2017-01-05 | nan | nan | Lannet Co. Inc. ( LCI ) announced through the PRNewswire Tuesday that its "Lopinavir and Ritonavir Oral Solution USP, 80 mg/20 mg per mL" has been approved by the U.S. Food and Drug Administration (FDA) to be produced and sold in the U.S. as a generic drug.
Lannett's protease inhibitors, a class of antiretroviral drugs for the treatment of HIV positive patients and patients with AIDS, are equivalent to AbbVie 's ( ABBV ) Kaletra oral solution.
Combinations of protease inhibitor drugs are administered to HIV positive people if the basic treatment made up of a cocktail of antiretroviral drugs, which is usually composed of a non-nucleoside reverse transcriptase inhibitor (NNRTI) and two nucleoside analog reverse transcriptase inhibitors (NRTIs), becomes less effective.
It is estimated that approximately 1.24 million people, adults and juveniles, are HIV positive in the U.S. The number of new diagnoses is gradually falling thanks to HIV prevention efforts.
According to the Centers for Disease Control and Prevention ( CDC ), "gay and bisexual men, particularly young African-American gay and bisexual men, are most affected."
Lannet closed at $23.50 Wednesday, up $1.05 per share (or 4.68%) from the prior close. The stock gained 6.12% since the beginning of the new year. The stock is more volatile than the market with a beta of 2.28.
Earnings per share declined over the last four quarters, from 95 cents in fourth-quarter 2015 to 77 cents in third-quarter 2016.
For the fourth quarter of 2016, analysts estimate that the company will generate earnings of 84 cents per share, which represents a 9.1% increase from the previous quarter's figure and an 11.6% decline from fourth-quarter 2015 earnings.
Analysts recommend buying shares of Lannet with a rating of 2.3. The analysts' average target price is $30.40, ranging from a low target price of $25 per share and a high target price of $38 per share.
The company has a market capitalization of $873.27 million and a volume of approximately 37.16 million shares outstanding, of which a percentage of 74.3% can be traded on the stock market.
The percentage of shares outstanding held by insiders is 25.91%, and that held by institutions is 67.40%.
As of the most recent quarter, the company has $253.06 million in cash on hand and $1.05 billion in total debt.
During the third quarter, Joel Greenblatt ( Trades , Portfolio ) and Ken Fisher (Trades, Portfolio) opened new positions in Lannet; they bought 280,182 and 7,650 shares of the company while Ronald Muhlenkamp (Trades, Portfolio) decreased his position by 33.01%.
Disclosure: I have no positions in Lannet.
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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. | Lannett's protease inhibitors, a class of antiretroviral drugs for the treatment of HIV positive patients and patients with AIDS, are equivalent to AbbVie 's ( ABBV ) Kaletra oral solution. Lannet Co. Inc. ( LCI ) announced through the PRNewswire Tuesday that its "Lopinavir and Ritonavir Oral Solution USP, 80 mg/20 mg per mL" has been approved by the U.S. Food and Drug Administration (FDA) to be produced and sold in the U.S. as a generic drug. It is estimated that approximately 1.24 million people, adults and juveniles, are HIV positive in the U.S. | Lannett's protease inhibitors, a class of antiretroviral drugs for the treatment of HIV positive patients and patients with AIDS, are equivalent to AbbVie 's ( ABBV ) Kaletra oral solution. The company has a market capitalization of $873.27 million and a volume of approximately 37.16 million shares outstanding, of which a percentage of 74.3% can be traded on the stock market. During the third quarter, Joel Greenblatt ( Trades , Portfolio ) and Ken Fisher (Trades, Portfolio) opened new positions in Lannet; they bought 280,182 and 7,650 shares of the company while Ronald Muhlenkamp (Trades, Portfolio) decreased his position by 33.01%. | Lannett's protease inhibitors, a class of antiretroviral drugs for the treatment of HIV positive patients and patients with AIDS, are equivalent to AbbVie 's ( ABBV ) Kaletra oral solution. Combinations of protease inhibitor drugs are administered to HIV positive people if the basic treatment made up of a cocktail of antiretroviral drugs, which is usually composed of a non-nucleoside reverse transcriptase inhibitor (NNRTI) and two nucleoside analog reverse transcriptase inhibitors (NRTIs), becomes less effective. The company has a market capitalization of $873.27 million and a volume of approximately 37.16 million shares outstanding, of which a percentage of 74.3% can be traded on the stock market. | Lannett's protease inhibitors, a class of antiretroviral drugs for the treatment of HIV positive patients and patients with AIDS, are equivalent to AbbVie 's ( ABBV ) Kaletra oral solution. The company has a market capitalization of $873.27 million and a volume of approximately 37.16 million shares outstanding, of which a percentage of 74.3% can be traded on the stock market. Disclosure: I have no positions in Lannet. |
26321.0 | 2017-01-05 00:00:00 UTC | Gilead Sciences Must Answer to Investors After a Disappointing 2016 | ABBV | https://www.nasdaq.com/articles/gilead-sciences-must-answer-investors-after-disappointing-2016-2017-01-05 | nan | nan | Gilead Sciences Inc. ( GILD ) delivered a poor performance last year. The stock lost over 24% in 2016, caused by a drop in sales of products that treat hepatitis C. According to Ben Levinsohn in a Barron's article, the decline was also attributed to the company's lack of a plan for the future.
Here are some of Michael Yee's questions, as reported by Barron's:
Gilead closed at $76.38 per share yesterday, up $2.22 or 2.99% from the previous trading day, with 13,463,800 shares traded on Nasdaq. Year to date, the stock gained 6.66% or $4.77 per share.
The 52-week range is between $70.83 per share and $103.10 per share and the stock is less volatile than the stock market with a beta equal to 0.88.
Gilead has a market capitalization of $100.63 billion and the trailing 12-month price-earnings ratio is 7.06. The EPS (TTM) is $10.81.
The company pays a quarterly dividend of 47 cents per share and the dividend yield is 2.63%. The payout ratio is currently 16.71%.
As of today, analysts recommend to buy shares of Gilead Sciences Inc. with a recommendation rating of 2.2. The rating ranges between 1.0 (Strong Buy) and 5.0 (Sell).
The analysts set an average target price of $95.19 per share. It ranges between a low of $74.29 per share and a high of $118 per share.
For the fourth quarter of 2016, analysts estimate EPS of $2.62, which represents a 21% decline on a year over year basis. In the same quarter in 2015, the company reported EPS of $3.32.
Over the last three years, Gilead reported increasing EPS, from $3.08 billion in 2013 to $18.11 billion in 2015. This represents a 487.99% increase. During the same period, the company's revenue increased by 191.42%, from $11.2 billion to $32.64 billion.
However, due to the aforementioned reasons, the company reported decreasing quarterly EPS and revenue over the last 4 quarters. Revenue decreased by 11.9%, from $8.51 billion in the fourth quarter of 2015 to $7.5 billion in the third quarter of 2016. Earnings fell 28.84% in that same timeframe, from $4.68 billion to $3.33 billion.
At the moment, the stock is trading at 5.99 times the book value and 5.52 times the Ebitda. The company had $12.27 billion in cash on hand as of the most recent quarter. The total debt amounted to $27.07 billion.
Gilead Sciences has approximately 1.32 billion shares outstanding, of which 1.31 billion can be traded on the stock market.
Of the company's shares outstanding, 0.60% is held by insiders and 83.40% is held by institutions.
During the third quarter of 2016, John Rogers ( Trades , Portfolio ), T Rowe Price Equity Income Fund (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio) increased their positions by 6.18%, 3.64% and 220.65%. Joel Greenblatt (Trades, Portfolio), Ronald Muhlenkamp (Trades, Portfolio), David Dreman (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) reduced their positions.
Disclosure: I have no position 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. | Gilead Sciences Inc. ( GILD ) delivered a poor performance last year. The stock lost over 24% in 2016, caused by a drop in sales of products that treat hepatitis C. According to Ben Levinsohn in a Barron's article, the decline was also attributed to the company's lack of a plan for the future. Gilead has a market capitalization of $100.63 billion and the trailing 12-month price-earnings ratio is 7.06. | As of today, analysts recommend to buy shares of Gilead Sciences Inc. with a recommendation rating of 2.2. Over the last three years, Gilead reported increasing EPS, from $3.08 billion in 2013 to $18.11 billion in 2015. Joel Greenblatt (Trades, Portfolio), Ronald Muhlenkamp (Trades, Portfolio), David Dreman (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) reduced their positions. | Over the last three years, Gilead reported increasing EPS, from $3.08 billion in 2013 to $18.11 billion in 2015. Gilead Sciences has approximately 1.32 billion shares outstanding, of which 1.31 billion can be traded on the stock market. Joel Greenblatt (Trades, Portfolio), Ronald Muhlenkamp (Trades, Portfolio), David Dreman (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) reduced their positions. | In the same quarter in 2015, the company reported EPS of $3.32. Over the last three years, Gilead reported increasing EPS, from $3.08 billion in 2013 to $18.11 billion in 2015. Gilead Sciences has approximately 1.32 billion shares outstanding, of which 1.31 billion can be traded on the stock market. |
26322.0 | 2017-01-05 00:00:00 UTC | Gilead Sciences Inc.'s Biggest Failure in 2016 | ABBV | https://www.nasdaq.com/articles/gilead-sciences-incs-biggest-failure-2016-2017-01-05 | nan | nan | Last year, Gilead Sciences (NASDAQ: GILD) managed a feat that very few of its peers ever have (or probably ever will): It shed a staggering $40 billion in value without a single top-selling drug going off patent.
GILD Market Cap data by YCharts .
In fact, the biotech actually launched multiple new products last year, such as the HIV meds Odefsey and Descovy, along with the latest addition to its hepatitis C franchise, Epclusa.
So how did a top dog like Gilead sputter so badly? Although several factors played a role in the biotech's dreadful 2016, Gilead's problems can ultimately be traced back to one strategic move.
Gilead's refusal to buy revenue growth wreaked havoc on its share price in 2016
If you've been following this stock for any length of time, you're probably painfully aware that Gilead's hep C franchise sank like a stone last year. The short version of the story is that the biotech's super-aggressive pricing strategy for Sovaldi and Harvoni sowed discontent among payers, leading to a pricing war once rival drugs like AbbVie 's(NYSE: ABBV) Viekira Pak hit the market.
While Viekira Pak has so far been unable to make much of a dent in Gilead's overwhelming market share, AbbVie's drug did give payers the leverage necessary to force the biotech to offer substantial rebates for its hep C drugs. As a result, Gilead's hep C revenue fell by more than 18% over the course of the first nine months of 2016.
Drug companies facing a double-digit decline in revenue for a cornerstone franchise are normally willing to open up their coffers to start buying revenue-generating peers. Gilead, however, decided to plow an enormous $10 billion into stock repurchases, and that figure may rise even higher once the biotech reports its Q4 numbers.
Gilead's stated reason for shying away from buying revenue is that biotech valuations are simply too rich -- making it hard to find suitable targets. However, that hasn't stopped Gilead's peers like AbbVie from getting ahead of any potential dips in revenue by pursuing pricey acquisitions.
And, if anything, biotech valuations are far more reasonable now than they have been in a while due to the pullback sparked by the leadup to the U.S. presidential election. Nevertheless, the biotech's management has refused to entertain a growth-by-acquisition strategy, despite the company's clinical pipeline also experiencing a number of major setbacks last year.
Investor takeaway
The point is that the market doesn't care about how much cash you have on your balance sheet -- or even how much debt, apparently. AbbVie's balance sheet, for instance, is leveraged through the roof, and its stock performed admirably in 2016 due to its ability to continue growing its revenue. Put simply, all the market cares about is top-line growth, and that's where Gilead failed its shareholders last year -- at least in the short term.
Looking ahead, if this top biotech isn't willing to change course and start engaging in mergers and acquisitions tout suite -- regardless of biotech valuations -- investors are probably best served by looking elsewhere for more compelling opportunities in 2017. Gilead's hep C revenue, after all, is only going to continue its southward march from here on out. Patient investors may eventually be rewarded, but there's no telling how long it'll be.
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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! That's right -- they think these 10 stocks are even better buys.
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George Budwell has no position in any 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. | The short version of the story is that the biotech's super-aggressive pricing strategy for Sovaldi and Harvoni sowed discontent among payers, leading to a pricing war once rival drugs like AbbVie 's(NYSE: ABBV) Viekira Pak hit the market. While Viekira Pak has so far been unable to make much of a dent in Gilead's overwhelming market share, AbbVie's drug did give payers the leverage necessary to force the biotech to offer substantial rebates for its hep C drugs. However, that hasn't stopped Gilead's peers like AbbVie from getting ahead of any potential dips in revenue by pursuing pricey acquisitions. | While Viekira Pak has so far been unable to make much of a dent in Gilead's overwhelming market share, AbbVie's drug did give payers the leverage necessary to force the biotech to offer substantial rebates for its hep C drugs. The short version of the story is that the biotech's super-aggressive pricing strategy for Sovaldi and Harvoni sowed discontent among payers, leading to a pricing war once rival drugs like AbbVie 's(NYSE: ABBV) Viekira Pak hit the market. However, that hasn't stopped Gilead's peers like AbbVie from getting ahead of any potential dips in revenue by pursuing pricey acquisitions. | While Viekira Pak has so far been unable to make much of a dent in Gilead's overwhelming market share, AbbVie's drug did give payers the leverage necessary to force the biotech to offer substantial rebates for its hep C drugs. The short version of the story is that the biotech's super-aggressive pricing strategy for Sovaldi and Harvoni sowed discontent among payers, leading to a pricing war once rival drugs like AbbVie 's(NYSE: ABBV) Viekira Pak hit the market. However, that hasn't stopped Gilead's peers like AbbVie from getting ahead of any potential dips in revenue by pursuing pricey acquisitions. | The short version of the story is that the biotech's super-aggressive pricing strategy for Sovaldi and Harvoni sowed discontent among payers, leading to a pricing war once rival drugs like AbbVie 's(NYSE: ABBV) Viekira Pak hit the market. While Viekira Pak has so far been unable to make much of a dent in Gilead's overwhelming market share, AbbVie's drug did give payers the leverage necessary to force the biotech to offer substantial rebates for its hep C drugs. However, that hasn't stopped Gilead's peers like AbbVie from getting ahead of any potential dips in revenue by pursuing pricey acquisitions. |
26323.0 | 2017-01-04 00:00:00 UTC | Notable Wednesday Option Activity: CHTR, GPS, ABBV | ABBV | https://www.nasdaq.com/articles/notable-wednesday-option-activity-chtr-gps-abbv-2017-01-04 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Charter Communications Inc (Symbol: CHTR), where a total volume of 6,522 contracts has been traded thus far today, a contract volume which is representative of approximately 652,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.5% of CHTR's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $305 strike call option expiring June 16, 2017 , with 3,635 contracts trading so far today, representing approximately 363,500 underlying shares of CHTR. Below is a chart showing CHTR's trailing twelve month trading history, with the $305 strike highlighted in orange:
The Gap Inc (Symbol: GPS) options are showing a volume of 24,345 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 45.4% of GPS's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $22.50 strike call option expiring January 13, 2017 , with 3,479 contracts trading so far today, representing approximately 347,900 underlying shares of GPS. Below is a chart showing GPS's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
And AbbVie Inc. (Symbol: ABBV) saw options trading volume of 32,208 contracts, representing approximately 3.2 million underlying shares or approximately 45.2% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $67.50 strike call option expiring August 18, 2017 , with 10,432 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $67.50 strike highlighted in orange:
For the various different available expirations for CHTR options , GPS options , or ABBV options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $67.50 strike call option expiring August 18, 2017 , with 10,432 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing GPS's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) saw options trading volume of 32,208 contracts, representing approximately 3.2 million underlying shares or approximately 45.2% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $67.50 strike highlighted in orange: For the various different available expirations for CHTR options , GPS options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing GPS's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) saw options trading volume of 32,208 contracts, representing approximately 3.2 million underlying shares or approximately 45.2% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $67.50 strike call option expiring August 18, 2017 , with 10,432 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $67.50 strike highlighted in orange: For the various different available expirations for CHTR options , GPS options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing GPS's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) saw options trading volume of 32,208 contracts, representing approximately 3.2 million underlying shares or approximately 45.2% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $67.50 strike call option expiring August 18, 2017 , with 10,432 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $67.50 strike highlighted in orange: For the various different available expirations for CHTR options , GPS options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing GPS's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) saw options trading volume of 32,208 contracts, representing approximately 3.2 million underlying shares or approximately 45.2% of ABBV's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $67.50 strike call option expiring August 18, 2017 , with 10,432 contracts trading so far today, representing approximately 1.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $67.50 strike highlighted in orange: For the various different available expirations for CHTR options , GPS options , or ABBV options , visit StockOptionsChannel.com. |
26324.0 | 2017-01-03 00:00:00 UTC | Agree To Buy AbbVie At $30, Earn 4.1% Using Options | ABBV | https://www.nasdaq.com/articles/agree-buy-abbvie-30-earn-41-using-options-2017-01-03 | nan | nan | Investors eyeing a purchase of AbbVie Inc. (Symbol: ABBV) shares, but tentative about paying the going market price of $62.40/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2019 put at the $30 strike, which has a bid at the time of this writing of $1.24. Collecting that bid as the premium represents a 4.1% return against the $30 commitment, or a 2% annualized rate of return (at Stock Options Channel we call this the YieldBoost ).
Selling a put does not give an investor access to ABBV's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $30 strike if doing so produced a better outcome than selling at the going market price. ( Do options carry counterparty risk? This and six other common options myths debunked ). So unless AbbVie Inc. sees its shares fall 52.1% and the contract is exercised (resulting in a cost basis of $28.76 per share before broker commissions, subtracting the $1.24 from $30), the only upside to the put seller is from collecting that premium for the 2% annualized rate of return.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc., and highlighting in green where the $30 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 put at the $30 strike for the 2% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for AbbVie Inc. (considering the last 252 trading day closing values as well as today's price of $62.40) to be 28%. For other put options contract ideas at the various different available expirations, visit the ABBV Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 892,344 contracts, with call volume at 892,344, for a put:call ratio of 0.71 so far for the day, which is above normal compared to the long-term median put:call ratio of .65. In other words, if we look at the number of call buyers and then use the long-term median to project the number of put buyers we'd expect to see, we're actually seeing more put buyers than expected out there in options trading so far today. Find out which 15 call and put options traders are talking about today .
Top YieldBoost Puts of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors eyeing a purchase of AbbVie Inc. (Symbol: ABBV) shares, but tentative about paying the going market price of $62.40/share, might benefit from considering selling puts among the alternative strategies at their disposal. Below is a chart showing the trailing twelve month trading history for AbbVie Inc., and highlighting in green where the $30 strike is located relative to that history: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 put at the $30 strike for the 2% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for AbbVie Inc. (considering the last 252 trading day closing values as well as today's price of $62.40) to be 28%. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc., and highlighting in green where the $30 strike is located relative to that history: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 put at the $30 strike for the 2% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for AbbVie Inc. (considering the last 252 trading day closing values as well as today's price of $62.40) to be 28%. Investors eyeing a purchase of AbbVie Inc. (Symbol: ABBV) shares, but tentative about paying the going market price of $62.40/share, might benefit from considering selling puts among the alternative strategies at their disposal. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc., and highlighting in green where the $30 strike is located relative to that history: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 put at the $30 strike for the 2% annualized rate of return represents good reward for the risks. Investors eyeing a purchase of AbbVie Inc. (Symbol: ABBV) shares, but tentative about paying the going market price of $62.40/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to ABBV's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. | Investors eyeing a purchase of AbbVie Inc. (Symbol: ABBV) shares, but tentative about paying the going market price of $62.40/share, might benefit from considering selling puts among the alternative strategies at their disposal. Below is a chart showing the trailing twelve month trading history for AbbVie Inc., and highlighting in green where the $30 strike is located relative to that history: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 put at the $30 strike for the 2% annualized rate of return represents good reward for the risks. Selling a put does not give an investor access to ABBV's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. |
26325.0 | 2016-12-30 00:00:00 UTC | AbbVie's Humira and Imbruvica Drive Performance in 2016 | ABBV | https://www.nasdaq.com/articles/abbvies-humira-and-imbruvica-drive-performance-in-2016-2016-12-30 | nan | nan | North Chicago, IL-based AbbVie Inc.ABBV came into existence on Jan 1, 2013, after Abbott Laboratories ABT divested its pharmaceutical division. AbbVie has a presence in the rheumatoid arthritis, cancer, psoriasis, Crohn's disease, HIV, hepatitis C virus (HCV), testosterone, thyroid disease, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets.
The biopharmaceutical company's share price is up 5.9% so far this year - a year fraught with challenges for the pharma/biotech sector, as it faced immense flak for steep drug prices. This compares favorably with the 6.1% fall for the Zacks categorized Large-Cap Pharma industry.
Strong Earnings Performance: AbbVie delivered positive earnings surprises in two of the three quarters of 2016, reported so far this year.
AbbVie's next year's EPS growth rate is 13.1%, while for the long term (3-5 years), its EPS growth rate is 14.54%. Next year, sales growth is expected to be 10%.
Humira Doing Well: AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis, polyarticular juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis, axial spondyloarthritis, pediatric Crohn's disease and chronic plaque psoriasis. Humira has been performing well and sales should be continue to be driven by growing awareness, favorable clinical data, additional indications and expansion into new markets. The company expects Humira to bring in total sales of more than $18 billion in 2020.
Imbruvica, a Key Driver: Cancer drug, Imbruvica was added to AbbVie's pipeline with the May 2015 acquisition of Pharmacyclics. AbbVie expects Imbruvica peak sales of more than $7 billion and revenues of about $5 billion in 2020. Imbruvica, currently approved for quite a few indications, has multi-billion dollar potential and AbbVie is exploring the potential to expand Imbruvica's label into solid tumors and autoimmune diseases.
Collaborations and Agreements to Strengthen Pipeline : AbbVie has been actively pursuing partnership deals and collaborations for candidates across several therapeutic areas including oncology, immunology, neuroscience, and infectious diseases. Some partners include Roche (Venclexta - oncology), Biogen Inc. BIIB (Zinbryta - multiple sclerosis), Bristol-Myers Squibb Company BMY (Empliciti - multiple myeloma), Ablynx (vobarilizumab - inflammatory diseases including rheumatoid arthritis and systemic lupus erythematosus) and Boehringer Ingelheim (risankizumab - immunology) among others.
Efforts to Strengthen Presence in Oncology and HCV: AbbVie continues to work on expanding and accelerating its presence in oncology, building upon its growing position in hematological oncology. The company acquired cancer drug maker Stemcentrx and gained a late-stage candidate, rovalpituzumab tesirine or Rova-T, which is currently in registrational studies for small cell lung cancer (SCLC). 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 marketed oncology drug Venclyxto/Venclexta to expand the label to address the broader relapsed/refractory CLL patient population, expand into earlier lines of therapy, and broaden into other hematologic malignancies.
We are also positive on the company's progress with the development of interferon-free treatments for HCV.
Conclusion
Viekira faces intense pricing pressure and competition in the HCV market. Moreover, quite a few companies are working on bringing Humira biosimilars to the market. Yet, we believe AbbVie's deep pipeline and strong financial position will continue to help the company navigate tough times.
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. | North Chicago, IL-based AbbVie Inc.ABBV came into existence on Jan 1, 2013, after Abbott Laboratories ABT divested its pharmaceutical division. AbbVie has a presence in the rheumatoid arthritis, cancer, psoriasis, Crohn's disease, HIV, hepatitis C virus (HCV), testosterone, thyroid disease, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets. Strong Earnings Performance: AbbVie delivered positive earnings surprises in two of the three quarters of 2016, reported so far this year. | Humira Doing Well: AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis, polyarticular juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis, axial spondyloarthritis, pediatric Crohn's disease and chronic plaque psoriasis. Efforts to Strengthen Presence in Oncology and HCV: AbbVie continues to work on expanding and accelerating its presence in oncology, building upon its growing position in hematological oncology. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie has a presence in the rheumatoid arthritis, cancer, psoriasis, Crohn's disease, HIV, hepatitis C virus (HCV), testosterone, thyroid disease, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets. Humira Doing Well: AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis, polyarticular juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis, axial spondyloarthritis, pediatric Crohn's disease and chronic plaque psoriasis. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie intends to study the candidate for additional indications and estimates peak sales close to $5 billion. North Chicago, IL-based AbbVie Inc.ABBV came into existence on Jan 1, 2013, after Abbott Laboratories ABT divested its pharmaceutical division. AbbVie has a presence in the rheumatoid arthritis, cancer, psoriasis, Crohn's disease, HIV, hepatitis C virus (HCV), testosterone, thyroid disease, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets. |
26326.0 | 2016-12-29 00:00:00 UTC | Johnson & Johnson's 4 Biggest Catalysts in 2017 | ABBV | https://www.nasdaq.com/articles/johnson-johnsons-4-biggest-catalysts-2017-2016-12-29 | nan | nan | Image source: Getty Images.
Though it was a very difficult year for drugmakers, with the SPDR S&P Pharmaceuticals ETF losing just shy of a quarter of its value, the same can't be said of healthcare conglomerate Johnson & Johnson (NYSE: JNJ) , a company that leans heavily on its pharmaceutical segment for its growth and gross margin. Through Dec. 28, J&J is up a healthy 12% year to date.
While it's always nice to celebrate a good year, it's also important to keep your eyes on the horizon, because Wall Street places far, far more emphasis on what lies ahead instead of what's in the rearview mirror. As we ready to dive headlong into 2017, here are the four biggest catalysts that investors and shareholders should be eyeing.
1. Invokana's long-awaited CV study results
You could arguably take your pick for biggest catalyst in 2017, but my personal choice is the expected cardiovascular (CV) outcomes study data for SGLT-2 inhibitor Invokana, a treatment for type 2 diabetes that was approved in 2013.
Image source: Getty Images.
Two factors make guselkumab a drug you'll want to watch in 2017 . Firstly, because it ran circles around the placebo during its pivotal phase 3 trial. Guselkumab, which targets interleukein-23, a protein that has known specificity when it comes to immune response disorders of the skin, led to 85% of patients having clear or nearly clear skin after 16 weeks compared to just 6.9% of the patients in the placebo group. In terms of near-complete skin clearance, it was a 73% to 2.9% advantage for guselkumab over the placebo.
The other exciting aspect of guselkumab is that it also ran away from AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. At the 16-week mark, Humira led to near-complete skin clearance for almost 50% of patients, and at the 48-week mark this improved to 55%. However, guselkumab's 16-week effective rate was 73%, and it also improved to 81% by week 48. Humira has 10 approved indications, so it's not as if guselkumab is going push Humira into obsolescence, but when it comes to moderate-to-severe plaque psoriasis, guselkumab could be the next sheriff in town.
Expect an FDA ruling in the latter half of 2017.
4. Does Trump tackle drug pricing?
Finally, investors will want to keep their eyes on what Donald Trump does once in the Oval Office.
Image source: Disney-ABC Television Group, Flickr.
Trump has a number of big issues on the docket, including individual and corporate tax reform, as well as his campaign promise to repeal and replace of the Affordable Care Act. However, Trump has also intimated that he's going to tackle drug pricing, which both he and opponent Hillary Clinton viewed as too high. The real question to be answered is whether Trump was merely trying to gain the favor with an American public that's fed up with rising prescription drug costs, or whether he really plans to tackle drug-pricing reform.
Reforming drug pricing would be bad news for all drugmakers since their pricing power usually accounts for a substantial amount of their long-term growth. It would be an especially huge hit for specialty drugmakers since specialty drugs have been commanding the biggest price increases in recent years. For J&J, pricing reform could directly impact its cancer drug portfolio and slow growth for blood cancer blockbuster Imbruvica, which is also partly owned by AbbVie via its acquisition of Pharmacyclics in 2015.
If Trump is simply too busy to tackle drug reform in 2017, it would be viewed as a positive for J&J.
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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 other exciting aspect of guselkumab is that it also ran away from AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. For J&J, pricing reform could directly impact its cancer drug portfolio and slow growth for blood cancer blockbuster Imbruvica, which is also partly owned by AbbVie via its acquisition of Pharmacyclics in 2015. While it's always nice to celebrate a good year, it's also important to keep your eyes on the horizon, because Wall Street places far, far more emphasis on what lies ahead instead of what's in the rearview mirror. | Image source: Getty Images. The other exciting aspect of guselkumab is that it also ran away from AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. For J&J, pricing reform could directly impact its cancer drug portfolio and slow growth for blood cancer blockbuster Imbruvica, which is also partly owned by AbbVie via its acquisition of Pharmacyclics in 2015. | The other exciting aspect of guselkumab is that it also ran away from AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. For J&J, pricing reform could directly impact its cancer drug portfolio and slow growth for blood cancer blockbuster Imbruvica, which is also partly owned by AbbVie via its acquisition of Pharmacyclics in 2015. Though it was a very difficult year for drugmakers, with the SPDR S&P Pharmaceuticals ETF losing just shy of a quarter of its value, the same can't be said of healthcare conglomerate Johnson & Johnson (NYSE: JNJ) , a company that leans heavily on its pharmaceutical segment for its growth and gross margin. | The other exciting aspect of guselkumab is that it also ran away from AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. For J&J, pricing reform could directly impact its cancer drug portfolio and slow growth for blood cancer blockbuster Imbruvica, which is also partly owned by AbbVie via its acquisition of Pharmacyclics in 2015. Does Trump tackle drug pricing? |
26327.0 | 2016-12-27 00:00:00 UTC | 3 Biggest Risks for AbbVie in 2017 | ABBV | https://www.nasdaq.com/articles/3-biggest-risks-abbvie-2017-2016-12-27 | nan | nan | On paper, 2016 should have been a pretty good year for AbbVie (NYSE: ABBV) . Revenue climbed nearly 15% year over year in the first three quarters. Earnings jumped 26% during this period from the prior year. And yet AbbVie's stock price hasn't gone up much. What's more, the new year could bring stiffer challenges for the biotech. Here are three of the biggest risks that AbbVie faces in 2017.
Image source: Getty Images.
Humira headwinds
Humira remains AbbVie's greatest strength and its biggest potential weakness. Sales for the drug continue to grow at a solid pace -- more than 11% year over year in the third quarter. However, Humira still accounts for 63% of AbbVie's total revenue. That puts the company at risk if any problems arise for the drug.
It's not hard to see where Humira's problems could potentially come from in 2017. AbbVie already faces indirect competition in Europe from Biogen 's(NASDAQ: BIIB) biosimilars, as well as Enbrel and Remicade. William Chase, AbbVie's CFO, said in his third-quarter comments that the Remicade biosimilar wasn't making a big dent in Humira's sales and that the Enbrel biosimilar was tracking along with expectations. It could be, though, that Biogen's products might pick up momentum in the new year.
Biogen could also win European approval for its Humira biosimilar in the coming year. There already is a Humira biosimilar approved in the U.S., but AbbVie is vigorously defending its patents and probably will be able to fend off competitors for a while.
Rising rivals
While the threat to Humira is AbbVie's chief worry, the company also has reasons to be concerned about some of its other products. Sales for hepatitis C virus (HCV) drug Viekira are already falling in the U.S. AbbVie attributed this decline primarily to the entrance of a new competitor. Merck launched its new HCV drug, Zepatier, earlier in 2016.
Even sizzling-hot cancer drug Imbruvica could soon face the prospects of competitive pressure. AstraZeneca (NYSE: AZN) hopes to win U.S. approval for acalabrutinib in treating B-cell malignancies next year. Like Imbruvica, acalabrutinib is a Bruton's tyrosine kinase inhibitor. In a phase 1/2 study of patients with relapsed/refractory chronic lymphocytic leukemia, acalabrutinib appeared to have a better safety profile than Imbruvica.
If AstraZeneca wins approval, AbbVie could have a real fight on its hands. The company is fully aware of the potential threat from acalabrutinib and is moving to quickly advance Imbruvica into other indications to stay ahead of AstraZeneca.
Pipeline problems
The perennial risk for AbbVie (and any other drugmaker, for that matter) is from problems with pipeline candidates. Regulatory agency rejections and late-stage clinical failures present the biggest threats.
AbbVie's pipeline currently includes 12 late-stage programs. The biotech expects to submit Elagolix for approval in treating endometriosis next year. AbbVie also hopes to get a green light for commercialization of its next-generation HCV therapy in 2017.
Results are expected to be announced in the coming year for three clinical studies of experimental autoimmune disease drug risankizumab. The company should also read out data from several clinical studies that could lead to regulatory filings for new indications for Imbruvica and Venclexta.
At this point, all of these programs look promising. However, it's not unheard of for once-promising pipeline candidates to flop in late-stage studies.
Weighing the risks
AbbVie investors should be most concerned about potential threats to Humira. The company still depends so heavily on this one product that any bumps in the road make a big difference to its bottom line.
AstraZeneca could very well present a formidable challenge to Imbruvica. I wouldn't be too worried about the impact in 2017, though. Acalabrutinib will probably be a bigger problem over the longer run.
I'm least worried about pipeline problems. It's not that I don't think AbbVie couldn't have a setback. However, I suspect the biotech is in pretty good shape overall with its pipeline.
Even with these real risks, AbbVie should continue to be a solid pick for investors -- at least while the company can stave off competition to Humira in the U.S. AbbVie still presents a good opportunity for growth while paying one of the better dividends around. I think 2017 will likely be an even better year for the company than 2016 has been.
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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. | Sales for hepatitis C virus (HCV) drug Viekira are already falling in the U.S. AbbVie attributed this decline primarily to the entrance of a new competitor. On paper, 2016 should have been a pretty good year for AbbVie (NYSE: ABBV) . And yet AbbVie's stock price hasn't gone up much. | On paper, 2016 should have been a pretty good year for AbbVie (NYSE: ABBV) . William Chase, AbbVie's CFO, said in his third-quarter comments that the Remicade biosimilar wasn't making a big dent in Humira's sales and that the Enbrel biosimilar was tracking along with expectations. And yet AbbVie's stock price hasn't gone up much. | William Chase, AbbVie's CFO, said in his third-quarter comments that the Remicade biosimilar wasn't making a big dent in Humira's sales and that the Enbrel biosimilar was tracking along with expectations. Pipeline problems The perennial risk for AbbVie (and any other drugmaker, for that matter) is from problems with pipeline candidates. Even with these real risks, AbbVie should continue to be a solid pick for investors -- at least while the company can stave off competition to Humira in the U.S. AbbVie still presents a good opportunity for growth while paying one of the better dividends around. | On paper, 2016 should have been a pretty good year for AbbVie (NYSE: ABBV) . And yet AbbVie's stock price hasn't gone up much. Here are three of the biggest risks that AbbVie faces in 2017. |
26328.0 | 2016-12-26 00:00:00 UTC | 3 Top High-Yield Dividend Stocks to Buy in 2017 | ABBV | https://www.nasdaq.com/articles/3-top-high-yield-dividend-stocks-buy-2017-2016-12-26 | nan | nan | Image source: Getty Images.
More often than not, dividend stocks are what form the foundation of any great retirement portfolio. Not only have dividend stocks handily outperformed non-dividend-paying stocks over the long run, but they also offer a number of other advantages that income investors are bound to like.
To begin with, dividend-paying companies often have time-tested business models. A business is unlikely to pay a recurring dividend to investors if its management team didn't believe profits would grow in the future. Thus, dividend stocks are often a beacon of profitability and stability that attract income seekers.
Dividend stocks also help to hedge against inevitable stock market corrections -- there have been 35 stock market corrections of at least 10% since 1950 in the S&P 500 -- and payouts can be reinvested back into more shares of stock via a Dividend Reinvestment Plan, or DRIP. Purchasing more shares of dividend-paying stock with your payout in a repeating cycle can help your nest egg quickly compound in value over time.
Unfortunately, dividend stocks can also harbor a dark side. Income seekers would like the highest dividend yield possible, but they also have to ensure that a payout is sustainable. Dividend yields are a function of a stock's price, meaning a plunging stock price can dramatically lift dividend yields, making them seem attractive, at least on the surface. But, as we know, a plunging stock price could signify a business model that's in trouble. Thus, high-yield dividends, or those with yields of 4% or higher, should be heavily scrutinized by investors.
The good news is there are a number of top high-yield dividends that income seekers can consider buying in 2017. Here are three to add to your list.
Image source: Getty Images.
AbbVie Inc.
Healthcare isn't exactly a sector income seekers typically flock to considering that most drug and device developers aren't profitable. Even those that are usually reinvest a substantial portion of their cash flow back into marketing and research and development. Of course, AbbVie (NYSE: ABBV) isn't your traditional drug company.
There's little denying the prime selling point of AbbVie -- anti-inflammatory drug Humira. Of the $18.8 billion in sales AbbVie has registered through the first nine months of 2016, Humira is responsible for $11.8 billion. Currently on pace for nearly $16 billion in annual sales, Humira is the best-selling drug in the world, and it's about to turn in the best year ever for a pharmaceutical product by sales. Humira has 10 Food and Drug Administration-approved indications, and while there's concern that biosimilar competition could begin chipping away at Humira's dominance toward the end of the decade, for now it continues to deliver in a big way for AbbVie and investors.
Beyond Humira, AbbVie has two key building blocks: blood cancer drug Imbruvica and its growing hepatitis C portfolio. Imbruvica is a blockbuster cancer drug acquired when AbbVie purchased Pharmacyclics in 2015. It's already generated more than $1.3 billion through nine months for AbbVie, and this doesn't even factor in that a sizable chunk of Imbruvica's revenue goes to Johnson & Johnson , which was Pharmacyclics' licensing partner on the drug.
Within just the past few days, AbbVie filed a new drug application for pan-genotypic regimen of glecaprevir and pibrentasvir, known as G/P for short. In clinical studies, G/P led to a sustained virologic response in 97.5% of patients who were treatment-naïve and without liver cirrhosis. When combined with Viekira, which is already on pharmacy shelves, AbbVie could have a multi-billion dollar HCV product portfolio.
Sporting a 4.1% yield and a well-below-average forward P/E, AbbVie is certainly worth a closer look.
Image source: Getty Images.
Royal Dutch Shell PLC
A final top high-yield dividend stock worthy of your consideration is integrated oil and gas giant Royal Dutch Shell (NYSE: RDS-A) (NYSE: RDS-B) .
The big knock against big oil in recent years has been the precipitous drop in crude prices. Even with a steady rebound in 2016, crude is still about 50% lower than where it was three years ago, and that can take a big bite out of oil giants like Royal Dutch Shell. A smaller issue is the company's acquisition of BG Group for $53 billion, which ballooned its net debt to nearly $77 billion as of the end of the latest quarter. Even though interest rates have been low and conducive to M&A, carrying around so much debt has clearly spooked investors a bit.
Now for a bit of good news: Shell's purchase of BG Group is going to transform the company in a very positive and meaningful way. BG Group has abundant natural gas and natural gas liquid assets, which instantly makes Shell one of the largest gas players in the world. Even though natural gas prices have been hit right along with crude in recent years, governments in developed countries are pushing for cleaner-burning fuels. This would imply that natural gas has a more favorable long-term outlook than coal, for example. Furthermore, the BG Group deal should boost production by 20% annually, while also giving the combined entity up to $4.5 billion in annual cost synergies. In short, we're talking about improved cash flow and margins once this deal is completely digested.
Royal Dutch Shell has also done an exemplary job of controlling its costs to boost margins and preserve its 7% dividend yield, which, at one point earlier this year, looked to be in danger of being cut. Capital expenditures are expected to be between $25 billion and $30 billion in 2016 after coming in at $60 billion in 2013. By more wisely picking and choose its projects, Royal Dutch Shell is demonstrating that less can indeed be more.
Assuming we've put a floor in for both crude and natural gas, Royal Dutch Shell could be a surprisingly strong income play for investors in 2017.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. Healthcare isn't exactly a sector income seekers typically flock to considering that most drug and device developers aren't profitable. Of course, AbbVie (NYSE: ABBV) isn't your traditional drug company. There's little denying the prime selling point of AbbVie -- anti-inflammatory drug Humira. | AbbVie Inc. Healthcare isn't exactly a sector income seekers typically flock to considering that most drug and device developers aren't profitable. Of course, AbbVie (NYSE: ABBV) isn't your traditional drug company. There's little denying the prime selling point of AbbVie -- anti-inflammatory drug Humira. | AbbVie Inc. Healthcare isn't exactly a sector income seekers typically flock to considering that most drug and device developers aren't profitable. Of course, AbbVie (NYSE: ABBV) isn't your traditional drug company. There's little denying the prime selling point of AbbVie -- anti-inflammatory drug Humira. | AbbVie Inc. Healthcare isn't exactly a sector income seekers typically flock to considering that most drug and device developers aren't profitable. Of course, AbbVie (NYSE: ABBV) isn't your traditional drug company. There's little denying the prime selling point of AbbVie -- anti-inflammatory drug Humira. |
26329.0 | 2016-12-25 00:00:00 UTC | 3 High-Yield Dividend Stocks Wealthy Investors Should Consider Buying | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-wealthy-investors-should-consider-buying-2016-12-25 | nan | nan | BIP Dividend data by YCharts
And considering the kinds of assets Brookfield Infrastructure specializes in -- namely large, expensive infrastructure such as toll roads, power transmission lines, gas pipelines, and ports, among others -- there's a lot of reason to expect this history of boosting payouts to continue. Brookfield Infrastructure's operations, which are diverse across industry and geography, almost always have very high barriers to competitive entry, almost always generate steady cash flows, and in many cases are the only asset of that kind serving the market it operates in.
The biggest risk with Brookfield Infrastructure is largely that it uses debt and share offerings to fund expansion. Historically, management has done an excellent job using the capital from debt and dilution to generate higher per-share cash flows, growing both the share price and dividend payout, and I have faith in its ability to continue doing so. But any slip-ups in what has been a great history of successful expansion could harm future dividend growth. And while that risk isn't necessarily high, investors shouldn't ignore it out of hand.
If you bought shares today, you'd capture a 4.8% yield based on the current prices and the $0.39-per-share quarterly dividend. Even with the risk of capital expenditures going forward not generating the strong returns of past growth investments, the odds are better than even that Brookfield Infrastructure will continue to be an excellent high-yield investment for years to come.
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George Budwell has no position in any stocks mentioned. Jason Hall owns shares of Brookfield Infrastructure Partners. Timothy Green has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Qualcomm. The Motley Fool recommends Brookfield Infrastructure Partners and NXP Semiconductors. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | BIP Dividend data by YCharts And considering the kinds of assets Brookfield Infrastructure specializes in -- namely large, expensive infrastructure such as toll roads, power transmission lines, gas pipelines, and ports, among others -- there's a lot of reason to expect this history of boosting payouts to continue. The biggest risk with Brookfield Infrastructure is largely that it uses debt and share offerings to fund expansion. Historically, management has done an excellent job using the capital from debt and dilution to generate higher per-share cash flows, growing both the share price and dividend payout, and I have faith in its ability to continue doing so. | And while that risk isn't necessarily high, investors shouldn't ignore it out of hand. The Motley Fool owns shares of and recommends Qualcomm. The Motley Fool recommends Brookfield Infrastructure Partners and NXP Semiconductors. | BIP Dividend data by YCharts And considering the kinds of assets Brookfield Infrastructure specializes in -- namely large, expensive infrastructure such as toll roads, power transmission lines, gas pipelines, and ports, among others -- there's a lot of reason to expect this history of boosting payouts to continue. Even with the risk of capital expenditures going forward not generating the strong returns of past growth investments, the odds are better than even that Brookfield Infrastructure will continue to be an excellent high-yield investment for years to come. 10 stocks we like better than Qualcomm When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | The biggest risk with Brookfield Infrastructure is largely that it uses debt and share offerings to fund expansion. Historically, management has done an excellent job using the capital from debt and dilution to generate higher per-share cash flows, growing both the share price and dividend payout, and I have faith in its ability to continue doing so. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market. |
26330.0 | 2016-12-25 00:00:00 UTC | 3 Big Pharma Stocks With the Fastest-Growing Dividends | ABBV | https://www.nasdaq.com/articles/3-big-pharma-stocks-fastest-growing-dividends-2016-12-25 | nan | nan | Hockey great Wayne Gretzsky famously said: "I skate to where the puck is going to be, not where it has been." I think the concept definitely applies to investing in dividend stocks . Don't just look at the stocks with the highest dividends now. Try to identify the ones that could have the best dividends down the road.
Amgen (NASDAQ: AMGN) , AbbVie (NYSE: ABBV) , and Johnson & Johnson (NYSE: JNJ) are three big pharma stocks with the fastest-growing dividends over the past three years. Could these be the best dividend stocks of the future?
Big biotech with a big dividend
Amgen initiated its dividend program in 2011. At the beginning of 2014, the big biotech paid a quarterly dividend of $0.61 per share. As of this year, Amgen's quarterly dividend stood at $1.00 per share -- an increase of nearly 64% in just three years.
This fast growth isn't likely to end anytime soon. Amgen recently announced yet another dividend hike of 15% effective in the first quarter of 2017. The company uses less than 38% of its earnings to pay dividends, so there's room for even more increases down the road.
Let's suppose you bought Amgen shares now and held on to them for 10 years. If the company keeps increasing its dividend by 15% per year during that period, by 2027 you'd be receiving quarterly dividends of more than $4 per share. That would reflect a yield of roughly 11% on your initial investment assuming no dividends were reinvested during the period.
Top-selling drug and a top-paying dividend
When AbbVie was spun off by Abbott Labs in 2013, the company inherited one of the biggest blockbuster drugs in the world, Humira. AbbVie also inherited a tradition of paying attractive dividends. Over the past three years, the company increased its dividend by more than 40%.
AbbVie kept its commitment to increasing its dividend going with another 12.3% bump announced in October. The company returns 60% of its earnings to shareholders in the form of dividends, so there's no problem for AbbVie with continuing the streak into the future.
If AbbVie keeps increasing its dividend every year over the next decade at the same level of its recent dividend hike, investors who buy shares now will be richly rewarded. That level of sustained increases would result in a yield of nearly 12% on the initial investment assuming no dividend reinvestment.
Long-time dividend winner
Johnson & Johnson has a track record that few others can claim. The healthcare giant has increased its dividend for 54 years in a row. Over the past three years, J&J's dividend has grown by more than 20%.
J&J's latest dividend hike came in April, when its board of directors approved an increase of 6.7%. The company uses roughly 54% of its earnings to fund dividend payments. As is the case with Amgen and AbbVie, Johnson & Johnson shouldn't have any problems keeping the dividend increases coming.
How would our theoretical exercise of buying and holding J&J stock work out? Assuming the company continues to raise its dividend by 6.7% each year over the next 10 years, an investor would enjoy a yield of 5.3% on his or her initial investment in 2026.
Skating on thin ice?
There's one problem with projecting dividend payments years into the future: There's no guarantee that a company can continue increasing dividends as it has in the past. Amgen, for example, faces headwinds for its top-selling drug Enbrel. AbbVie could have to fight off biosimilars for Humira within the next few years. J&J has some challenges with its consumer and medical device segments.
But will these three companies continue to raise dividends for the foreseeable future? I think so. We might not be able to know exactly where the metaphorical puck is going, but by buying shares of Amgen, AbbVie, and Johnson & Johnson, investors can feel confident that they're not skating on thin ice.
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Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Johnson and Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company returns 60% of its earnings to shareholders in the form of dividends, so there's no problem for AbbVie with continuing the streak into the future. Amgen (NASDAQ: AMGN) , AbbVie (NYSE: ABBV) , and Johnson & Johnson (NYSE: JNJ) are three big pharma stocks with the fastest-growing dividends over the past three years. Top-selling drug and a top-paying dividend When AbbVie was spun off by Abbott Labs in 2013, the company inherited one of the biggest blockbuster drugs in the world, Humira. | Amgen (NASDAQ: AMGN) , AbbVie (NYSE: ABBV) , and Johnson & Johnson (NYSE: JNJ) are three big pharma stocks with the fastest-growing dividends over the past three years. If AbbVie keeps increasing its dividend every year over the next decade at the same level of its recent dividend hike, investors who buy shares now will be richly rewarded. We might not be able to know exactly where the metaphorical puck is going, but by buying shares of Amgen, AbbVie, and Johnson & Johnson, investors can feel confident that they're not skating on thin ice. | Amgen (NASDAQ: AMGN) , AbbVie (NYSE: ABBV) , and Johnson & Johnson (NYSE: JNJ) are three big pharma stocks with the fastest-growing dividends over the past three years. If AbbVie keeps increasing its dividend every year over the next decade at the same level of its recent dividend hike, investors who buy shares now will be richly rewarded. Top-selling drug and a top-paying dividend When AbbVie was spun off by Abbott Labs in 2013, the company inherited one of the biggest blockbuster drugs in the world, Humira. | We might not be able to know exactly where the metaphorical puck is going, but by buying shares of Amgen, AbbVie, and Johnson & Johnson, investors can feel confident that they're not skating on thin ice. Amgen (NASDAQ: AMGN) , AbbVie (NYSE: ABBV) , and Johnson & Johnson (NYSE: JNJ) are three big pharma stocks with the fastest-growing dividends over the past three years. Top-selling drug and a top-paying dividend When AbbVie was spun off by Abbott Labs in 2013, the company inherited one of the biggest blockbuster drugs in the world, Humira. |
26331.0 | 2016-12-23 00:00:00 UTC | Noteworthy ETF Inflows: XLV, UNH, ABBV, AGN | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows-xlv-unh-abbv-agn-2016-12-23 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $120.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 192,765,324 to 194,515,324). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.1%, AbbVie Inc. (Symbol: ABBV) is up about 0.6%, and Allergan PLC (Symbol: AGN) is higher by about 1.9%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.32. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.1%, AbbVie Inc. (Symbol: ABBV) is up about 0.6%, and Allergan PLC (Symbol: AGN) is higher by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $120.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 192,765,324 to 194,515,324). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.1%, AbbVie Inc. (Symbol: ABBV) is up about 0.6%, and Allergan PLC (Symbol: AGN) is higher by about 1.9%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.32. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.1%, AbbVie Inc. (Symbol: ABBV) is up about 0.6%, and Allergan PLC (Symbol: AGN) is higher by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $120.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 192,765,324 to 194,515,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.32. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.1%, AbbVie Inc. (Symbol: ABBV) is up about 0.6%, and Allergan PLC (Symbol: AGN) is higher by about 1.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $120.6 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 192,765,324 to 194,515,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.32. |
26332.0 | 2016-12-23 00:00:00 UTC | Roche (RHHBY) Hemophilia A Drug Positive in Phase III | ABBV | https://www.nasdaq.com/articles/roche-rhhby-hemophilia-a-drug-positive-in-phase-iii-2016-12-23 | nan | nan | Roche Holding AGRHHBY announced that the phase III study, HAVEN 1, met its primary endpoint.
We note that Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry in the year-to-date period. In fact, the stock has lost 18.2% during this period, compared with a drop of 6.1% for the industry.
Coming back to the latest news, the randomized, multicenter, open-label, phase III study evaluating the efficacy, safety and pharmacokinetics of emicizumab prophylaxis versus no prophylaxis in patients with hemophilia (12 years of age or older) and inhibitors to factor VIII.
The study evaluated emicizumab prophylaxis in patients of 12 years of age or older with hemophilia A and inhibitors to factor VIII.
The data from the study showed a statistically significant reduction in the number of bleeds over time in patients treated with emicizumab prophylaxis as compared to those patients who do not receive prophylactic treatment.
Additionally, the study also met all secondary endpoints- a statistically significant reduction in the number of bleeds over time with emicizumab prophylaxis treatment in an intra-patient comparison in patients who had received prior bypassing agent prophylaxis treatment.
We note that HAVEN 1 is the first Phase III study in the emicizumab clinical development program to report results.
As per Roche, Hemophilia A affects around 320,000 people globally while approximately 50-60% of whom have a severe form of the disorder.
Roche has a strong presence in the oncology market. In particular, the company dominates the breast cancer space on robust demand for its HER2 franchise drugs. The company is also making efforts to develop its portfolio beyond oncology into immunology. We remind investors that hematology is a major area of focus of research and development at Roche.?? Roche???s hematology portfolio boasts approved drugs including MabThera/Rituxan, Gazyva/Gazyvaro, and Venclexta in collaboration with AbbVie ABBV , as well as an encouraging pipeline comprising candidates like polatuzumab vedotin/RG7596 and and a small molecule antagonist of MDM2 (idasanutlin/RG7388). Beyond malignancy, the haematology pipeline also consists emicizumab.
ROCHE HLDG LTD Price and Consensus
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ROCHE HLDG LTD Price and Consensus | ROCHE HLDG LTD Quote
Roche currently carries a Zacks Rank #4 (Sell).
Key Picks in the Sector
A couple of better-ranked stocks in the health care sector include Heska Corp. HSKA , and Vanda Pharmaceuticals VNDA . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today???s Zacks #1 Rank stocks here .
Heska???s earnings estimates increased from $1.13 to $1.35 for 2016 and from $1.38 to $1.53 for 2017 over the last 60 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 301.64%. Its share price has increased 92.1% year to date.
Vanda???s loss estimates for 2016 narrowed from 62 cents to 52 cents, while its earnings estimates for 2017 increased from 13 cents to 22 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 70.7% 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. | ?s hematology portfolio boasts approved drugs including MabThera/Rituxan, Gazyva/Gazyvaro, and Venclexta in collaboration with AbbVie ABBV , as well as an encouraging pipeline comprising candidates like polatuzumab vedotin/RG7596 and and a small molecule antagonist of MDM2 (idasanutlin/RG7388). Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Roche Holding AGRHHBY announced that the phase III study, HAVEN 1, met its primary endpoint. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. ?s hematology portfolio boasts approved drugs including MabThera/Rituxan, Gazyva/Gazyvaro, and Venclexta in collaboration with AbbVie ABBV , as well as an encouraging pipeline comprising candidates like polatuzumab vedotin/RG7596 and and a small molecule antagonist of MDM2 (idasanutlin/RG7388). The study evaluated emicizumab prophylaxis in patients of 12 years of age or older with hemophilia A and inhibitors to factor VIII. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. ?s hematology portfolio boasts approved drugs including MabThera/Rituxan, Gazyva/Gazyvaro, and Venclexta in collaboration with AbbVie ABBV , as well as an encouraging pipeline comprising candidates like polatuzumab vedotin/RG7596 and and a small molecule antagonist of MDM2 (idasanutlin/RG7388). Coming back to the latest news, the randomized, multicenter, open-label, phase III study evaluating the efficacy, safety and pharmacokinetics of emicizumab prophylaxis versus no prophylaxis in patients with hemophilia (12 years of age or older) and inhibitors to factor VIII. | ?s hematology portfolio boasts approved drugs including MabThera/Rituxan, Gazyva/Gazyvaro, and Venclexta in collaboration with AbbVie ABBV , as well as an encouraging pipeline comprising candidates like polatuzumab vedotin/RG7596 and and a small molecule antagonist of MDM2 (idasanutlin/RG7388). Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Roche?? |
26333.0 | 2016-12-21 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, Union Pacific, U.S. Bancorp, Baker Hughes and Southwest Airlines | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-union-pacific-u.s.-bancorp-baker-hughes-and | nan | nan | For Immediate Release
Chicago, IL - December 21, 2016 - 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 ), Union Pacific (NYSE: UNP - Free Report ), U.S. Bancorp (NYSE: USB - Free Report ), Baker Hughes (NYSE: BHI - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ).
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Fresh Analyst Reports for Wednesday
Today's Research Daily features new research reports on 16 major stocks, including AbbVie (NYSE: ABBV - Free Report ), Union Pacific (NYSE: UNP - Free Report ) and U.S. Bancorp (NYSE: USB - Free Report ).
Shares of AbbVie have gained +5.8% since results of the presidential election were declared on Nov 8, outperforming the Zacks Medical sector which has gained +2.3% over the same period. The analyst likes its key drug Humira's performance. Sales should continue to be driven by growing awareness, favorable clinical data, additional indications and expansion into new markets. Moreover, products like Viekira and Imbruvica have diversified AbbVie's revenue base. AbbVie has a deep and promising pipeline and is also working on expanding its portfolio though additional deals. On the flip side, the Zacks analyst points out that Viekira faces intense pricing pressure and competition in the HCV market. Additionally, quite a few companies are working on bringing Humira biosimilars to the market. (You can read the full research report on AbbVie here>>> )
Union Pacific shares have increased +14.1% since Nov 8, outperforming the Zacks Transportation sector, which has gained +8.4% over the same period. Driving the stock's outperformance despite well-known headwinds facing the transportation group as a whole is its track record of operating efficiencies, strong cash flows and shareholder-friendly policies. Growing optimism about the economy following hopes of market friendly policies from the new administration is helping the stock as well as the broader transportation group. However, it continues to struggle due to coal-related headwinds, which have been primarily responsible for it underperforming the broader market over the last six months. Coal woes are expected to hurt its fourth-quarter results, scheduled for Jan 19. (You can read the full research report on Union Pacific here>>> )
Buy rated U.S. Bancorp shares have outperformed the Zacks Finance sector since Nov 8, gaining +15.3% over the period versus the sector's +11.2% increase. The analyst likes its solid business model, core franchise and diverse revenue streams. Also, the company raised its prime lending rate to 3.75%, following Fed interest rate hike to 0.50%-0.75%. This is expected to alleviate some margin pressure. Further, the company's steady capital deployment activities continue to enhance shareholders' value. However, the stringent regulations and litigations remain key concerns. (You can read the full research report on U.S. Bancorp here>>> )
Other noteworthy reports we are featuring today include Baker Hughes (NYSE: BHI - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). You can see all of today's research reports 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. | (You can read the full research report on AbbVie here>>> ) Union Pacific shares have increased +14.1% since Nov 8, outperforming the Zacks Transportation sector, which has gained +8.4% over the same period. Stocks recently featured in the blog include AbbVie (NYSE: ABBV - Free Report ), Union Pacific (NYSE: UNP - Free Report ), U.S. Bancorp (NYSE: USB - Free Report ), Baker Hughes (NYSE: BHI - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Here are highlights from Tuesday's Analyst Blog: Fresh Analyst Reports for Wednesday Today's Research Daily features new research reports on 16 major stocks, including AbbVie (NYSE: ABBV - Free Report ), Union Pacific (NYSE: UNP - Free Report ) and U.S. Bancorp (NYSE: USB - Free Report ). | Stocks recently featured in the blog include AbbVie (NYSE: ABBV - Free Report ), Union Pacific (NYSE: UNP - Free Report ), U.S. Bancorp (NYSE: USB - Free Report ), Baker Hughes (NYSE: BHI - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Here are highlights from Tuesday's Analyst Blog: Fresh Analyst Reports for Wednesday Today's Research Daily features new research reports on 16 major stocks, including AbbVie (NYSE: ABBV - Free Report ), Union Pacific (NYSE: UNP - Free Report ) and U.S. Bancorp (NYSE: USB - Free Report ). Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report US BANCORP (USB): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report SOUTHWEST AIR (LUV): 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 ), Union Pacific (NYSE: UNP - Free Report ), U.S. Bancorp (NYSE: USB - Free Report ), Baker Hughes (NYSE: BHI - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on ABBV - FREE Get the full Report on UNP - FREE Get the full Report on USB - FREE Get the full Report on BHI - FREE Get the full Report on LUV - 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 UNION PAC CORP (UNP): Free Stock Analysis Report US BANCORP (USB): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report SOUTHWEST AIR (LUV): 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 ), Union Pacific (NYSE: UNP - Free Report ), U.S. Bancorp (NYSE: USB - Free Report ), Baker Hughes (NYSE: BHI - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Here are highlights from Tuesday's Analyst Blog: Fresh Analyst Reports for Wednesday Today's Research Daily features new research reports on 16 major stocks, including AbbVie (NYSE: ABBV - Free Report ), Union Pacific (NYSE: UNP - Free Report ) and U.S. Bancorp (NYSE: USB - Free Report ). Shares of AbbVie have gained +5.8% since results of the presidential election were declared on Nov 8, outperforming the Zacks Medical sector which has gained +2.3% over the same period. |
26334.0 | 2016-12-21 00:00:00 UTC | Forget Gilead Sciences Inc.: These 3 Stocks Are Better Buys | ABBV | https://www.nasdaq.com/articles/forget-gilead-sciences-inc-these-3-stocks-are-better-buys-2016-12-21 | nan | nan | You might like Gilead Sciences (NASDAQ: GILD) . So do I. In particular, I like the big biotech's dirt-cheap valuation. I like its dividend. And I really like its cash stockpile. But if those are the reasons you like Gilead, I have news: There are better stocks in each category.
Here's why you might want to forget Gilead Sciences and instead buy Baxter International (NYSE: BAX) , AbbVie (NYSE: ABBV) , and Amgen (NASDAQ: AMGN) .
Image source: Getty Images.
Cheaper than Gilead
Gilead Sciences is undeniably cheap right now, trading at only seven times trailing 12-month earnings. Baxter, however, is even cheaper: Shares of the big medical instruments and supplies company currently trade at five times earnings.
While Gilead's stock is cheap because its revenue is falling, Baxter actually made more money in the first nine months of 2016 than it did in the year-ago period. Granted, sales were up only 2% -- but that's a lot better than Gilead's 4.4% decline during the same period.
Although Baxter's renal and hospital products and services aren't as glamorous as curing hepatitis C, the company enjoys strong gross margins that are driving cash flow higher. The consensus among Wall Street analysts is that Baxter's stock could rise 18% over the next 12 months, with earnings growing 12%.
A better dividend than Gilead
Gilead Sciences is one of only a handful of biotechs to pay a dividend, and its yield of 2.49% looks good. By comparison, though, AbbVie's dividend yield of 4.13% looks great.
There's a strong case to be made that AbbVie is more committed to its dividend than Gilead is. The company has increased its dividend by a whopping 60% in just four years. AbbVie inherited a rich tradition of prioritizing dividends from its parent Abbott Laboratories , which ranks among the Dividend Aristocrats -- companies that have increased their dividends for at least 25 consecutive years.
AbbVie's dividend doesn't appear to be in any jeopardy. The company is currently returning only 60% of its earnings to shareholders in the form of dividend payments. Those earnings should be increasing, with continued growth for blockbuster autoimmune-disease drug Humira and cancer drug Imbruvica, plus a solid pipeline.
More cash than Gilead
Perhaps the most important number for Gilead Sciences' future is its cash stockpile of $31.6 billion (including cash, cash equivalents and marketable securities). But if you want cash, you can do even better than Gilead: Amgen reported $38 billion in cash, cash equivalents and marketable securities at the end of the third quarter.
Like Gilead, Amgen uses some of its cash to pay dividends. Amgen rewards its shareholders a little more than Gilead does, though; its yield currently stands at 2.66%. Also like Gilead, Amgen hasn't been very active this year in making strategic acquisitions. That will probably change in the near future for both biotechs.
It is important to note, however, that Gilead could leap ahead of Amgen with respect to its cash position in 2017. Gilead's cash from operating activities during the first nine months of this year totaled $13.18 billion; Amgen generated $7.25 billion in cash during the same period. Even with sales for Gilead's hepatitis C drugs Harvoni and Sovaldi falling, the company appears likely to top Amgen's operating cash flow in the year ahead.
Also, keep in mind that Gilead used $10 billion in the first three quarters of 2016 to repurchase shares. Amgen also bought back stock, but spent only $2 billion. Were it not for the disparity between the biotechs' share buybacks, Gilead would have more cash than Amgen.
Forget Gilead?
Baxter, AbbVie, and Amgen each appear to have better near-term earnings growth prospects than Gilead. All three stocks should be solid picks for long-term investors. But should you really forget Gilead Sciences? I don't think so.
Even if Gilead doesn't make a major deal anytime soon, the company appears highly likely to continue buying back shares and increasing its dividend payments. One smart acquisition could change the dynamics entirely for the big biotech. There are better stocks to buy right now, but the current scenario won't be the scenario that exists at the end of 2017. I like Baxter, AbbVie, and Amgen -- but I still like Gilead over the long run, too.
10 stocks we like better than Gilead Sciences
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Keith Speights owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Baxter. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 you might want to forget Gilead Sciences and instead buy Baxter International (NYSE: BAX) , AbbVie (NYSE: ABBV) , and Amgen (NASDAQ: AMGN) . By comparison, though, AbbVie's dividend yield of 4.13% looks great. There's a strong case to be made that AbbVie is more committed to its dividend than Gilead is. | Here's why you might want to forget Gilead Sciences and instead buy Baxter International (NYSE: BAX) , AbbVie (NYSE: ABBV) , and Amgen (NASDAQ: AMGN) . By comparison, though, AbbVie's dividend yield of 4.13% looks great. There's a strong case to be made that AbbVie is more committed to its dividend than Gilead is. | Here's why you might want to forget Gilead Sciences and instead buy Baxter International (NYSE: BAX) , AbbVie (NYSE: ABBV) , and Amgen (NASDAQ: AMGN) . By comparison, though, AbbVie's dividend yield of 4.13% looks great. There's a strong case to be made that AbbVie is more committed to its dividend than Gilead is. | Here's why you might want to forget Gilead Sciences and instead buy Baxter International (NYSE: BAX) , AbbVie (NYSE: ABBV) , and Amgen (NASDAQ: AMGN) . By comparison, though, AbbVie's dividend yield of 4.13% looks great. There's a strong case to be made that AbbVie is more committed to its dividend than Gilead is. |
26335.0 | 2016-12-20 00:00:00 UTC | AbbVie (ABBV) Submits NDA for Next-Gen HCV Combo in US | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-submits-nda-for-next-gen-hcv-combo-in-us-2016-12-20 | nan | nan | AbbVie Inc.ABBV announced that it has submitted a New Drug Application (NDA) to the FDA for its pan-genotypic regimen of glecaprevir/pibrentasvir (G/P). The combination drug is being assessed for the treatment of chronic hepatitis C virus (HCV).
AbbVie's share price has gained 3% in the past one month, outperforming the 1.4% gain witnessed by the Zacks classified Large-Cap Pharmaceuticals industry.
Coming back to latest news, Glecaprevir (GLE) is a potent protease inhibitor while pibrentasvir (PIB) is a new NS5A inhibitor.
The NDA is supported by data from eight registration studies in AbbVie's G/P clinical development program. The phase III clinical studies were conducted on more than 2,300 patients in 27 countries across major HCV genotypes and special populations.
Last month, AbbVie presented data from the studies, which showed that eight weeks of treatment with G/P achieved high SVR12 rates across all major genotypes of chronic HCV.
The data presented from 8-week arms of three registrational clinical studies showed that 97.5%% of chronic HCV infected patients without cirrhosis and who are new to treatment across all major genotypes (GT1-6) achieved SVR12 with 8 weeks of G/P treatment. . Whereas, in patients with compensated cirrhosis, high SVR rates were achieved after 12 weeks of therapy. The studies also showed that high SVR rates were achieved in patients with limited treatment options, such as those with severe chronic kidney disease (CKD). For patients that cannot be cured by prior direct-acting antiviral (DAA) treatment, high SVR rates were achieved in less than 12 weeks.
In September this year, FDA granted Breakthrough Therapy designation for G/P for the treatment of HCV in patients who failed previous therapy with direct-acting antivirals (DAAs) in genotype 1 (GT1), including treatment with an NS5A inhibitor and/or protease inhibitor. The breakthrough therapy status for pan-genotypic regimen was granted on the basis of positive results from the phase II MAGELLAN-1 clinical study.
ABBVIE INC Price
ABBVIE INC Price | ABBVIE INC Quote
Zacks Rank & Key Picks
AbbVie currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care sector include Cambrex Corporation CBM , Heska Corporation HSKA and Anika Therapeutics Inc ANIK . While Cambrex and Heska sport a Zacks Rank #1 (Strong Buy), Anika carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Heska's earnings estimates improved 19.5% for 2016 and 10.9% for 2017 in the last 60 days. The company posted a positive earnings surprise in each of the four trailing quarters, with an average beat of 301.64%. Its share price has increased 83.8% year to date.
Cambrex's earnings estimates increased 3.7% for 2016 and 5.2% for 2017 in the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 19.78%. Its share price is up 13% year to date.
Anika Therapeutics' earnings estimates for 2016 and 2017 were up 9.2% and 3.4%, respectively in the last 60 days. The company has recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price is up 26.4% 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. | Last month, AbbVie presented data from the studies, which showed that eight weeks of treatment with G/P achieved high SVR12 rates across all major genotypes of chronic HCV. AbbVie Inc.ABBV announced that it has submitted a New Drug Application (NDA) to the FDA for its pan-genotypic regimen of glecaprevir/pibrentasvir (G/P). AbbVie's share price has gained 3% in the past one month, outperforming the 1.4% gain witnessed by the Zacks classified Large-Cap Pharmaceuticals industry. | Last month, AbbVie presented data from the studies, which showed that eight weeks of treatment with G/P achieved high SVR12 rates across all major genotypes of chronic HCV. Click to get this free report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that it has submitted a New Drug Application (NDA) to the FDA for its pan-genotypic regimen of glecaprevir/pibrentasvir (G/P). | ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that it has submitted a New Drug Application (NDA) to the FDA for its pan-genotypic regimen of glecaprevir/pibrentasvir (G/P). | Last month, AbbVie presented data from the studies, which showed that eight weeks of treatment with G/P achieved high SVR12 rates across all major genotypes of chronic HCV. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc.ABBV announced that it has submitted a New Drug Application (NDA) to the FDA for its pan-genotypic regimen of glecaprevir/pibrentasvir (G/P). |
26336.0 | 2016-12-20 00:00:00 UTC | 3 Dividend Stocks to Put on Your Shopping List | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-put-your-shopping-list-2016-12-20 | nan | nan | There's just something nice about stocks that pay you to own them. Dividends make a huge difference in overall investing returns, especially over long periods of time. Few dividend stocks are are as attractive right now as AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Novartis (NYSE: NVS) . Here's why you should consider putting these three big drugmakers on your shopping list.
Image source: Getty Images.
Humira plus more
AbbVie's dividend yield of 4.13% is good. The company's steady increases of its dividend is even better. Since its spinoff from Abbott Laboratories in 2013, AbbVie has increased its dividend by 60% -- including a 12.3% hike in October.
More dividend increases could be in store. AbbVie currently only returns 60% of its earnings in the form of dividend payments. That leaves plenty of room for growth, even if the company's earnings don't grow.
However, AbbVie's earnings will likely grow. Wall Street analysts project average annual earnings growth of more than 15% over the next five years. One important reason for this optimistic outlook is the continued strength of Humira. Sales for the autoimmune disease drug were nearly $11.8 billion in the first nine months of 2016, up 14.5% over the prior-year period.
Cancer drug Imbruvica is another key ingredient to AbbVie's success. Sales for the drug tripled year over year in the first nine months of 2016 to over $1.3 billion. AbbVie expects Imbruvica to generate $5 billion in sales by 2020.
AbbVie's pipeline includes around 50 programs, 12 of which are in late-stage development. One notable late-stage prospect is elagolix. Analysts project that elagolix, which is in phase 3 studies targeting treatment of endometriosis and uterine fibroids, could generate peak annual sales of over $4 billion if approved for both indications.
Brighter days ahead
Pfizer's dividend yield of 3.9% isn't too far behind AbbVie's. Although the big pharmaceutical company did cut its dividend during the financial crisis of 2008 and 2009, it's been a steady rise since then. Pfizer raised its dividend by 6.7% recently. The first quarter of 2017 will be the 313th consecutive quarter where the company has paid a dividend.
A quick glance at Pfizer's dividend payout ratio of 118% might raise eyebrows. However, the company is generating enough cash flow that its dividend shouldn't be in jeopardy . Also, despite anemic earnings growth over the past few years, Pfizer appears poised for better days ahead.
Several current drugs in Pfizer's lineup are posting solid growth. Sales for top-selling Lyrica increased 15% year over year in the first nine months of 2016 to $3.1 billion. Autoimmune disease drug Xeljanz generated sales of $649 million during the period, up nearly 85% from the prior year.
Pfizer's fastest growth is coming from Ibrance. Sales for the cancer drug soared 265% year over year in the first nine months of 2016 to $1.49 billion. Analysts think Ibrance will eventually reach peak annual sales between $3 billion and $5 billion.
However, Pfizer must make up for some drugs that aren't performing so well, especially its legacy drugs. The company's strategy to plug the gap is through acquisitions and research. Pfizer made two key acquisitions in 2016, buying Anacor Pharmaceuticals and Medivation. The former acquisition gave Pfizer access to promising dermatitis atopic crisaberole, while the latter deal included prostate cancer drug Xtandi.
Pfizer's pipeline includes 94 clinical programs, eight of which are awaiting regulatory approval and 33 of which are in late-stage development. The company could have several potential blockbuster drugs in that mix if approved, including cancer drug avelumab and the aforementioned crisaberole.
Huge pipeline
Novartis is just slightly behind Pfizer with a dividend yield of 3.82%. The Swiss drugmaker has increased its dividend every year since its formation in 1996 with the merger of Ciba-Geigy and Sandoz.
Investors might get a little nervous looking at the company's payout ratio of 95.7%. Novartis borrowed money this year to fund its dividend payments. However, like Pfizer, the company continues to generate plenty of cash flow -- $6.5 billion in the first nine months of 2016. Also, Novartis is coming off a period where its earnings declined, but should be able to grow earnings in the years ahead.
The big pharmaceutical company is seeing strong growth for several products, including autoimmune disease drug Cosentyx and multiple sclerosis drug Gilenya. An even bigger story for Novartis, though, is its pipeline, which includes over 200 programs in clinical development.
Novartis expects to submit three new drugs for regulatory approval in 2017 plus six new indications for current products. In addition, the company intends to file for approval for three biosimilars next year. That's just the beginning. Between 2018 and and 2019, Novartis expects to submit 17 candidates for approval.
More than dividends
The consensus among Wall Street analysts is that AbbVie, Pfizer, and Novartis should see their shares increase by double-digit percentages within the next 12 months. While these estimates could be overly optimistic, I think all three stocks should perform well over the next several years.
Even if they don't achieve the kind of growth Wall Street projects, the dividends paid out by these companies should keep flowing. Add AbbVie, Pfizer, and Novartis to your shopping list. I don't think you'll experience buyer's remorse.
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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. | More than dividends The consensus among Wall Street analysts is that AbbVie, Pfizer, and Novartis should see their shares increase by double-digit percentages within the next 12 months. Few dividend stocks are are as attractive right now as AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Novartis (NYSE: NVS) . Humira plus more AbbVie's dividend yield of 4.13% is good. | Few dividend stocks are are as attractive right now as AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Novartis (NYSE: NVS) . Humira plus more AbbVie's dividend yield of 4.13% is good. Since its spinoff from Abbott Laboratories in 2013, AbbVie has increased its dividend by 60% -- including a 12.3% hike in October. | Few dividend stocks are are as attractive right now as AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Novartis (NYSE: NVS) . More than dividends The consensus among Wall Street analysts is that AbbVie, Pfizer, and Novartis should see their shares increase by double-digit percentages within the next 12 months. Humira plus more AbbVie's dividend yield of 4.13% is good. | Brighter days ahead Pfizer's dividend yield of 3.9% isn't too far behind AbbVie's. Few dividend stocks are are as attractive right now as AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Novartis (NYSE: NVS) . Humira plus more AbbVie's dividend yield of 4.13% is good. |
26337.0 | 2016-12-19 00:00:00 UTC | J&J Files sBLA for Plaque Psoriasis in Adolescent Patients | ABBV | https://www.nasdaq.com/articles/jj-files-sbla-for-plaque-psoriasis-in-adolescent-patients-2016-12-19 | nan | nan | Johnson & Johnson 's JNJ subsidiary, Janssen Therapeutics announced that it has submitted a Supplemental Biologics License Application (sBLA) to the FDA seeking approval of its prescription drug, Stelara for treatment of adolescent patients.
J&J's share price has gained 0.8% in the past one month, underperforming the 1.3% gain witnessed by the Zacks classified Large-Cap Pharmaceuticals industry.
Stelara, the drug is presently marked in the EU and U.S. for the treatment of moderate-to-severe plaque psoriasis and active psoriatic arthritis in adults. The company is looking to get the drug approved for the treatment of adolescents (12 to 17 years of age) with moderate to severe plaque psoriasis.
According to the company's press release, about 7.5 million people in America suffer from psoriasis with its intensity ranging from mild to severe and disabling. Moreover, about one third of those who develop the disease are below 20 years of age. Therefore, if approved for the adolescent patient population, the drug can address a significantly larger market.
The sBLA was supported by data from the phase III CADMUS registration study. The study assessed the efficacy and safety of Stelara in the treatment of adolescents (12 to 17 years of age) with moderate to severe plaque psoriasis. A phase III CADMUS Jr, is also ongoing to evaluate the efficacy and safety of Stelara in the treatment of pediatric patients (6 to 11 years of age). In November 2016, Stelara received approval in EU for the treatment of moderate-to-severely active Crohn's disease in adults.
Further, J&J is evaluating Stelara in phase III studies as a subcutaneous treatment for ulcerative colitis and axial spondylytis.
Apart from Stelara, J&J is also working actively on expanding the label of other new marketed products like Simponi, Xarelto and Imbruvica. For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. For Xarelto, there are eight new indications seeking trials as part of the EXPLORER clinical development program. While J&J has exclusive U.S. marketing rights of Xarelto, the drug is being marketed by Bayer AG BAYRY outside the U.S.
Simponi (partner: Merck & Co., Inc. MRK ) received approval this year in the EU for the treatment of polyarticular juvenile idiopathic arthritis in combination with methotrexate. Additionally, the company plans to file two line extensions for Simponi Aria, the intravenous formulation of Simponi, in psoriatic arthritis and ankylosing spondylitis. We believe that these drugs will contribute significantly to the company's top-line 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stelara, the drug is presently marked in the EU and U.S. for the treatment of moderate-to-severe plaque psoriasis and active psoriatic arthritis in adults. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. While J&J has exclusive U.S. marketing rights of Xarelto, the drug is being marketed by Bayer AG BAYRY outside the U.S. Simponi (partner: Merck & Co., Inc. MRK ) received approval this year in the EU for the treatment of polyarticular juvenile idiopathic arthritis in combination with methotrexate. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. While J&J has exclusive U.S. marketing rights of Xarelto, the drug is being marketed by Bayer AG BAYRY outside the U.S. Simponi (partner: Merck & Co., Inc. MRK ) received approval this year in the EU for the treatment of polyarticular juvenile idiopathic arthritis in combination with methotrexate. | For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The company is looking to get the drug approved for the treatment of adolescents (12 to 17 years of age) with moderate to severe plaque psoriasis. |
26338.0 | 2016-12-19 00:00:00 UTC | 10 High-Risk, High-Reward Stocks to Buy for 2017 | ABBV | https://www.nasdaq.com/articles/10-high-risk-high-reward-stocks-to-buy-for-2017-2016-12-19 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
While U.S. equities have surged in a historic rally to new record highs following the surprise Election Day victory of Donald Trump, many areas of the market haven't participated. Breadth has narrowed as areas like industrials and financials lead the charge higher.
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But now that investors have stepped back and surveyed the situation, bargain hunters are rounding back to these areas of lagging performance in search of value and performance.
Looking into 2017, investors looking for high-risk, high-reward stocks should concentrate on these areas, with a particular focus on smaller energy and gas and oilfield services companies poised to benefit from the rebound in crude.
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Here are 10 stocks to watch.
High-Risk, High-Reward Stocks to Buy: GoPro (GPRO)
GoPro Inc (NASDAQ: GPRO ) shares have struggled over the past two months, returning to their May lows after falling nearly by nearly one-half from their early October highs. Sellers hit hard as hype over new products - including the Hero 5 cameras and the Karma drone - gave way to disappointment.
The Hero 5 cameras are selling for lower average prices amid heightened competition and tepid demand. Meanwhile, the Karma drone suffered an embarrassing product recall amid reports of in-flight power failures.
But a turnaround - especially with its drone offering - could see shares nearly double in a retest of the 2016 highs. The company will next report results on Feb. 2 after the close. Analysts are looking for earnings of 27 cents per share on revenues of $591.6 million.
High-Risk, High-Reward Stocks to Buy: Baidu (BIDU)
Baidu Inc (ADR) (NASDAQ: BIDU ) shares have been pushed down to their summertime lows, down about 15% from their recent highs, amid broad-based selling pressure against emerging market stocks.
Chinese equities in particular have been hit on a combination of economic growth concerns, a lingering bad debt problem and worries over a possible trade spat with the incoming Trump administration. Adding to the selling has been a rapid rise in the U.S. dollar, which has in turn decreased the valuation of foreign asset classes.
Any pullback in the dollar, possibly connected to a slower pace of Federal Reserve rate hikes in 2017, could result in a powerful short-covering rally in emerging market stocks like BIDU.
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BIDU will next report results on Feb. 23 after the bell. Analysts are looking for earnings of 83 cents per share on revenues of $2.64 billion.
High-Risk, High-Reward Stocks to Buy: AbbVie (ABBV)
Drug maker AbbVie Inc (NYSE: ABBV ) has seen shares roll lower from their summertime highs to continue a three-year-long sideways slide. The company, which is developing a range of treatments for ailments including leukemia, HIV and hepatitis, has been caught in the selling pressure that's hit the entire biotech/pharma sector.
A rebound in 2017 could be spurred by clarification of President-elect Trump's plans for healthcare reform and lowering drug prices. Merely a test of the 2015-2016 highs would be worth a 10% move from here.
The company will next report results on Jan. 27 before the bell. Analysts are looking for earnings of $1.19 per share on revenues of $6.9 billion.
High-Risk, High-Reward Stocks to Buy: Ford (F)
Ford Motor Company (NYSE: F ) shares have been caught in a four-year downtrend, plummeting from a high of $16 in 2014 to test a low of $11 last month - a loss of nearly one-third - amid concerns the strength in auto sales would prove temporary. Indeed, as a result of surging long-term interest rates, auto sales came in much weaker than expected in November.
But a turnaround could be spurred by evidence of nascent wage inflation here in the United States, which will increase disposable incomes and purchasing power. Investors could also be punishing Ford for possible product concerns - the aluminum F-150 for instance - as shares of competitor GM recently hit new four-year highs.
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The company will next report results on Jan. 26 before the bell. Analysts are looking for earnings of 36 cents per share on revenues of $35.5 billion.
High-Risk, High-Reward Stocks to Buy: Occidental Petroleum (OXY)
Occidental Petroleum Corporation (NYSE: OXY ), like many oil services stocks, have been in the lurch for years following the ups and down of oil prices. The sideways trend for OXY has been in place since 2011, as the post-recession surge in energy prices unleashed a wave of new U.S. shale supply, oversaturated the market and encouraged the 2014 start of OPEC's oil price war.
But the recent OPEC/non-OPEC supply freeze agreement, an effort to boost prices to alleviate fiscal stress in Persian Gulf countries, will likely result in a restart of U.S. drilling activity. Especially with President-elect Trump's energy-friendly policies.
The company will next report results on Jan. 31 before the bell. Analysts are looking for earnings of 2 cents on revenues of $2.78 billion.
High-Risk, High-Reward Stocks to Buy: Baytex Energy (BTE)
Baytex Energy Corp (USA) (NYSE: BTE ), a Canadian oil and gas company with just over a $1 billion market cap, suffered a whopping 90%-plus decline from their 2014 highs as the OPEC oil price war ravaged revenue and earnings.
The share price stabilized earlier in the year amid chatter of a OPEC supply freeze deal, unleashing a rally that saw BTE jump more than 600% from its January lows.
Since then, a nine-month trading range has been established as investors awaited actual progress on the production cap deal - which was confirmed in recent weeks.
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Should energy prices continue to recover, watch for a powerful upside breakout. The company will next report results on March 7.
High-Risk, High-Reward Stocks to Buy: Pengrowth Energy (PGH)
Canadian oil and gas company Pengrowth Energy Corp (USA) (NYSE: PGH ) looks ready for an upside breakout from an eight-month downtrend consolidation driven by broad weakness in independent energy producers. Shares fell from a high of $6.36 in the summer of 2014 - before the start of the OPEC oil price war - to a low of 45 cents in January for a total decline of 93%.,
While the share price has since tripled, there is more upside to come assuming the OPEC/non-OPEC supply freeze agreement successfully continues to push up energy prices. A return to the 200-week moving average, not touched in two years, would be worth a double from here.
High-Risk, High-Reward Stocks to Buy: Cameco (CCJ)
Uranium producer Cameco Corp (USA) (NYSE: CCJ ) has seen shares rally nearly 50% off of their early November low, crossing over their 200-day moving average for the first time since June amid rising hope of an increase in nuclear power support from the incoming Trump Administration.
This is the start of a potentially long-legged recovery from the 73%-plus decline from the April high.
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The company will next report results on Feb. 9 after the market. Analysts are looking for earnings of 42 cents per share on revenues of $597.54 million.
High-Risk, High-Reward Stocks to Buy: Oceaneering International (OII)
Oceaneering International (NYSE: OII ) shares have recovered to levels not seen since June amid rising hopes for the recently agreed OPEC/non-OPEC production freeze agreement, rising nearly 40% from its November lows.
But shares have a long way to run to return to its late 2013 high near $81, after which investors suffered a 72% decline as demand for the company's underwater drones used to support offshore drilling and production activity.
The company is next expected to report results on Feb. 8 after the close. Analysts are looking for earnings of 2 cents per share on revenues of $505.14 million.
High-Risk, High-Reward Stocks to Buy: Hornbeck Offshore Services (HOS)
Hornbeck Offshore Services, Inc. (NYSE: HOS ) shares fell more than 95% from their late 2013 high to their October low amid the wipeout in energy prices and oil and gas stocks.
The company, which supports offshore drilling activity with its supply and support vessels and on-shore logistics facilities, has seen shares triple from the early November low to the mid-December high thanks to optimism about the energy policies of the incoming Trump administration as well as the OPEC/non-OPEC production freeze deal.
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A push to the late April highs near $12 would be worth a 50% move from here. The company will next report results on Feb. 15 after the close. Analysts are looking for a loss of 51 cents per share on revenues of $44.5 million.
Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
The post 10 High-Risk, High-Reward Stocks to Buy for 2017 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. | High-Risk, High-Reward Stocks to Buy: AbbVie (ABBV) Drug maker AbbVie Inc (NYSE: ABBV ) has seen shares roll lower from their summertime highs to continue a three-year-long sideways slide. Chinese equities in particular have been hit on a combination of economic growth concerns, a lingering bad debt problem and worries over a possible trade spat with the incoming Trump administration. Any pullback in the dollar, possibly connected to a slower pace of Federal Reserve rate hikes in 2017, could result in a powerful short-covering rally in emerging market stocks like BIDU. | High-Risk, High-Reward Stocks to Buy: AbbVie (ABBV) Drug maker AbbVie Inc (NYSE: ABBV ) has seen shares roll lower from their summertime highs to continue a three-year-long sideways slide. High-Risk, High-Reward Stocks to Buy: Baytex Energy (BTE) Baytex Energy Corp (USA) (NYSE: BTE ), a Canadian oil and gas company with just over a $1 billion market cap, suffered a whopping 90%-plus decline from their 2014 highs as the OPEC oil price war ravaged revenue and earnings. High-Risk, High-Reward Stocks to Buy: Pengrowth Energy (PGH) Canadian oil and gas company Pengrowth Energy Corp (USA) (NYSE: PGH ) looks ready for an upside breakout from an eight-month downtrend consolidation driven by broad weakness in independent energy producers. | High-Risk, High-Reward Stocks to Buy: AbbVie (ABBV) Drug maker AbbVie Inc (NYSE: ABBV ) has seen shares roll lower from their summertime highs to continue a three-year-long sideways slide. High-Risk, High-Reward Stocks to Buy: Baidu (BIDU) Baidu Inc (ADR) (NASDAQ: BIDU ) shares have been pushed down to their summertime lows, down about 15% from their recent highs, amid broad-based selling pressure against emerging market stocks. High-Risk, High-Reward Stocks to Buy: Baytex Energy (BTE) Baytex Energy Corp (USA) (NYSE: BTE ), a Canadian oil and gas company with just over a $1 billion market cap, suffered a whopping 90%-plus decline from their 2014 highs as the OPEC oil price war ravaged revenue and earnings. | High-Risk, High-Reward Stocks to Buy: AbbVie (ABBV) Drug maker AbbVie Inc (NYSE: ABBV ) has seen shares roll lower from their summertime highs to continue a three-year-long sideways slide. High-Risk, High-Reward Stocks to Buy: Baidu (BIDU) Baidu Inc (ADR) (NASDAQ: BIDU ) shares have been pushed down to their summertime lows, down about 15% from their recent highs, amid broad-based selling pressure against emerging market stocks. High-Risk, High-Reward Stocks to Buy: Baytex Energy (BTE) Baytex Energy Corp (USA) (NYSE: BTE ), a Canadian oil and gas company with just over a $1 billion market cap, suffered a whopping 90%-plus decline from their 2014 highs as the OPEC oil price war ravaged revenue and earnings. |
26339.0 | 2016-12-18 00:00:00 UTC | Forget Marijuana Stocks: Buy These 3 Biotech Stocks Instead | ABBV | https://www.nasdaq.com/articles/forget-marijuana-stocks-buy-these-3-biotech-stocks-instead-2016-12-18 | nan | nan | Why are investors so excited and intrigued by marijuana stocks? Some want to ride the wave of growing acceptance of cannabis-based products. Others like the momentum. I think, though, that investors can find better risk-versus-reward potential in three biotech stocks: Organovo Holdings (NASDAQ: ONVO) , Exelixis (NASDAQ: EXEL) , and AbbVie (NYSE: ABBV) . Here's why to forget marijuana stocks and instead invest in these biotechs.
Growing acceptance
People were once resistant but now are more accepting. Yes, we could be talking about marijuana. However, the statement also applies to 3-D bioprinted tissues. Any conversation about these bioprinted tissues needs to include Organovo.
Organovo first rolled out a 3-D bioprinted human liver tissue in 2014. The company launched its second product, human kidney tissue, earlier this year. Organovo's main customers were and are pharmaceutical companies looking to detect toxicity as early in the drug discovery and development process as possible.
Convincing scientists who were accustomed to using animal models and in vitro two-dimensional human tissue wasn't an easy task. Organovo is steadily accomplishing that goal, though. The company now counts 10 of the top 25 global pharmaceutical companies as customers.
Organovo is still tiny, just like most marijuana stocks. However, the company's revenue growth is impressive -- sales soared 358% year over year last quarter. Other products and services will be rolled out in the next few years, which should allow Organovo to keep growing revenue at a solid rate.
Hot momentum
Two of the five top-performing biotech stocks in 2016 are developing cannabinoid drugs. One that isn't but certainly has sizzling momentum is Exelixis. The biotech's stock price has nearly tripled this year.
One nice thing about Exelixis is that its success hasn't been based on highly speculative views of its prospects. The company already has two drugs on the market: medullary thyroid cancer treatment Cometriq and Cabometyx. Exelixis' tremendous stock performance in 2016 stemmed from excitement over Cabometyx. And that excitement is justified.
The drug has already gained a 20% market share as a second-line treatment for kidney cancer and 35% market share as a third-line treatment. Cabometyx's big opportunity, though, is as a potential first-line therapy for kidney cancer. The drug shone in a mid-stage study, outperforming current standard of care Sutent.
Exelixis is moving forward with seeking approval as a first-line treatment in kidney cancer based on the study's results. A green light from the FDA for the additional indication could be yet another major catalyst for Exelixis. The hot momentum for this stock problem isn't over yet.
Distant cousin
If you're fascinated by investing in marijuana stocks but are leery of doing so, perhaps you could consider a distant cousin of sorts -- AbbVie. No, AbbVie doesn't market a cannabinoid, nor is it developing one. However, the company does sell Marinol, which was the first FDA-approved drug with dronabinol as its active ingredient. Dronabinol is a man-made form of THC, which is considered the psychoactive component of marijuana.
Marinol isn't a reason to buy AbbVie. The company doesn't even break out sales for the drug. However, the products for which AbbVie does report sales details provides plenty of justification for buying the stock.
Humira stands at the top of the list. It's one of the best-selling drugs of all time, and sales continue to grow by solid double-digit percentages. The company also has a great up-and-coming winner with cancer drug Imbruvica plus a promising pipeline.
Don't forget AbbVie's dividend. The yield stands over 4% right now. AbbVie recently increased its quarterly dividend by 12.3%.
Down to business
Investors shouldn't get caught up in the hype of any stocks, including marijuana stocks. When you invest, you're buying part of a business. The primary reason to buy that business is that there are solid prospects that it will grow earnings and drive shares higher.
The problem with some marijuana stocks is that their business models are dubious. That's not the case with Organovo, Exelixis, or AbbVie. Of course, there are risks with any stock. These three biotechs are no exceptions. But if you're looking to make money without taking on an enormous amount of risk, you'll probably be better off forgetting marijuana stocks and considering these biotech stocks instead.
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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. | I think, though, that investors can find better risk-versus-reward potential in three biotech stocks: Organovo Holdings (NASDAQ: ONVO) , Exelixis (NASDAQ: EXEL) , and AbbVie (NYSE: ABBV) . Distant cousin If you're fascinated by investing in marijuana stocks but are leery of doing so, perhaps you could consider a distant cousin of sorts -- AbbVie. No, AbbVie doesn't market a cannabinoid, nor is it developing one. | I think, though, that investors can find better risk-versus-reward potential in three biotech stocks: Organovo Holdings (NASDAQ: ONVO) , Exelixis (NASDAQ: EXEL) , and AbbVie (NYSE: ABBV) . Distant cousin If you're fascinated by investing in marijuana stocks but are leery of doing so, perhaps you could consider a distant cousin of sorts -- AbbVie. No, AbbVie doesn't market a cannabinoid, nor is it developing one. | I think, though, that investors can find better risk-versus-reward potential in three biotech stocks: Organovo Holdings (NASDAQ: ONVO) , Exelixis (NASDAQ: EXEL) , and AbbVie (NYSE: ABBV) . Distant cousin If you're fascinated by investing in marijuana stocks but are leery of doing so, perhaps you could consider a distant cousin of sorts -- AbbVie. No, AbbVie doesn't market a cannabinoid, nor is it developing one. | That's not the case with Organovo, Exelixis, or AbbVie. I think, though, that investors can find better risk-versus-reward potential in three biotech stocks: Organovo Holdings (NASDAQ: ONVO) , Exelixis (NASDAQ: EXEL) , and AbbVie (NYSE: ABBV) . Distant cousin If you're fascinated by investing in marijuana stocks but are leery of doing so, perhaps you could consider a distant cousin of sorts -- AbbVie. |
26340.0 | 2016-12-18 00:00:00 UTC | 3 Low-Volatility Biotech Stocks to Buy | ABBV | https://www.nasdaq.com/articles/3-low-volatility-biotech-stocks-buy-2016-12-18 | nan | nan | Are you hesitant to buy biotech stocks because of their volatility? If so, it's understandable. Many biotech stocks are very volatile, with frequent big swings up and down. However, there are some biotechs that have relatively low volatility. If you're wary of biotechs, here's why you should take a look at Biogen (NASDAQ: BIIB) , Neurocrine Biosciences (NASDAQ: NBIX) , and Enanta Pharmaceuticals (NASDAQ: ENTA) .
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Steady multiple sclerosis leader
Beta compares the magnitude of a stock's price movement to that of the overall market or to a particular index. Stocks with beta values lower than one tend to be less volatile than their benchmarks. Biogen's beta right now is 0.33, reflecting relatively low volatility.
Biogen is certainly no fly-by-night biotech. The company reported revenue of over $8.5 billion in the first three quarters this year, with earnings totaling more than $3 billion. Biogen's multiple sclerosis franchise accounts for most of its sales, with Tecfidera and Tysabri combining for roughly 60% of total revenue.
A couple of potential catalysts could be just around the corner for Biogen. The biotech plans to spin off its hemophilia business into a separate entity in early 2017. Biogen also expects to launch spinal muscular atrophy drug Spinraza soon, pending regulatory approval. Spinraza met its primary endpoint in an interim analysis of its latest phase 3 study, with Biogen announcing that "children receiving Spinrazaexperienced a highly statistically significant improvement in motor function compared to those who did not receive treatment." Analysts think Spinraza could generate peak annual sales of $1.7 billion.
Biogen's stock could become more volatile in the future, though. Its share price has increased in December after it announced encouraging results from an early-stage clinical study of aducanumab in treating Alzheimer's disease. The experimental drug is also in a late-stage study. If problems arise with these studies, then Biogen's stock will likely take a hit. The stock's volatility could also increase in a good way if aducanumab proves to be successful.
Big winners potentially on the way
Neurocrine Biosciences' beta stands at 0.65. What's perhaps surprising about Neurocrine's low volatility is that the company doesn't have a product on the market -- yet.
That could change soon, however. An FDA approval decision on Ingrezza is expected by April 11, 2017. Ingrezza targets treatment of tardive dyskinesia, a nervous disorder that can be a serious side effect of taking antipsychotic drugs. Peak annual sales for this indication could reach $1.6 billion in the U.S. alone if the drug is approved.
Neurocrine and partner AbbVie (NYSE: ABBV) also have high expectations for elagolix. The experimental gonadotropin-releasing hormone (GnRH) antagonist is in two late-stage studies, one for treating endometriosis and the other for treating uterine fibroids. If approved for both indications, elagolix could eventually generate annual royalties of $800 million for Neurocrine.
The obvious risks for Neurocrine that could increase volatility are a negative decision for Ingrezza or issues arising in the elagolix studies. An FDA advisory committee meets to review Ingrezza on Feb. 16, 2017. A thumbs-up from this committee could decrease the likelihood of a big downswing for the stock.
A promising HCV partner
Enanta sports a low beta of 0.67. Like Neurocrine, Enanta has a solid relationship with AbbVie. The bigger biotech uses Enanta's protease inhibitors in its hepatitis C virus (HCV) products, including blockbuster drug Viekira. Thanks primarily to its licensing to AbbVie, Enanta posted revenue of $82.3 million in its fiscal year ending Sept. 30, 2016.
However, AbbVie has encountered the headwinds that all HCV drugs are facing. This has resulted in a steep revenue decline for Enanta compared to the prior year. Despite this challenge, Enanta's pipeline holds significant potential.
Enanta's internal clinical development focuses on liver diseases. The company has a couple of early-stage HCV candidates: NS5A inhibitor EDP-239 and cyclophilin inhibitor EDP-494. The drug candidate with perhaps the most exciting prospects, though, is EDP-305. The farnesoid X receptor (FXR) agonist is in an early-stage study targeting nonalcoholic steatohepatitis (NASH) and primary biliary cholangitis (PBC).
With several companies trying to get an edge in the potentially lucrative NASH indication, Enanta could be on the acquisition radar screen for some bigger biotechs (maybe including AbbVie). However, the stock could soon see higher volatility, given the uncertainty surrounding the HCV market.
These stocks aren't as tame as they look
Biogen, Neurocrine, and Enanta do have low beta values, implying relatively low volatility. However, it's important to note how those beta measurements were calculated. Monthly price changes for the biotech stocks were compared to monthly price changes for the S&P 500 (SNPINDEX: ^GSPC) over a 36-month period.
Here's the catch: These biotech stocks experienced an awful lot of volatility within each month, and that doesn't show up in the beta values. That being said, it's generally best to ignore the daily swings in a stock's price.
I would also caution that low volatility doesn't necessarily mean low risk. All three of these biotechs definitely face significant risks in the months and years ahead. My hunch is that Biogen should be the least volatile of these three stocks over the next few years -- but I could be wrong. Even volatility can be volatile.
10 stocks we like better than Biogen
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Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Biogen. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 several companies trying to get an edge in the potentially lucrative NASH indication, Enanta could be on the acquisition radar screen for some bigger biotechs (maybe including AbbVie). Neurocrine and partner AbbVie (NYSE: ABBV) also have high expectations for elagolix. Like Neurocrine, Enanta has a solid relationship with AbbVie. | Neurocrine and partner AbbVie (NYSE: ABBV) also have high expectations for elagolix. Like Neurocrine, Enanta has a solid relationship with AbbVie. Thanks primarily to its licensing to AbbVie, Enanta posted revenue of $82.3 million in its fiscal year ending Sept. 30, 2016. | Neurocrine and partner AbbVie (NYSE: ABBV) also have high expectations for elagolix. Like Neurocrine, Enanta has a solid relationship with AbbVie. Thanks primarily to its licensing to AbbVie, Enanta posted revenue of $82.3 million in its fiscal year ending Sept. 30, 2016. | Neurocrine and partner AbbVie (NYSE: ABBV) also have high expectations for elagolix. Like Neurocrine, Enanta has a solid relationship with AbbVie. Thanks primarily to its licensing to AbbVie, Enanta posted revenue of $82.3 million in its fiscal year ending Sept. 30, 2016. |
26341.0 | 2016-12-16 00:00:00 UTC | Is This Gilead Sciences' Biggest Mistake in 2016? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-biggest-mistake-2016-2016-12-16 | nan | nan | Enjoying windfall in revenue from its highly successful hepatitis C program in 2015, Gilead Sciences (NASDAQ: GILD) decided to return money to investors via a dividend and share buybacks. As a result, the company's handed back billions of dollars to investors through the first nine months of 2016. But given that Gilead Sciences' sales have fallen 10% and earnings per share have tumbled 14.5% in the past year, is this really the best use of its money.
Billions of dollars...wasted?
In deciding to return money to investors, Gilead Sciences took a leap that few of its peers have taken. In fact, Amgen Inc. (NASDAQ: AMGN) is the only other big-cap biotech stock that pays its investors a dividend.
In a way, Gilead Sciences' decision to pay a dividend was a bold gambit to curry favor with investors less interested in growth and more interested in long-term income. The launch of antivirals Sovaldi and Harvoni in 2014 had already made Gilead Sciences a staple in growth investors' portfolios, but Gilead Sciences' lack of a dividend made it unloved by dividend-seeking investors.
Appealing to a new group of investors, many of whom embrace the buy-and-hold mantra, may have helped insulate shares from a steep drop once Sovaldi and Harvoni's sales plateaued, or so the thinking goes.
Unfortunately, the institution of a dividend has arguably done little to protect investors from a deluge of selling that's resulted from Sovaldi and Harvoni's maturing. After peaking north of $120 in the summer of 2015, shares have retreated into the mid-$70s, a horrible performance given that the S&P 500 has rallied to new highs during the period.
The sharp sell-off and slipping sales make it fair to ask if the billions spent on dividends and share repurchases ($10 billion on buybacks alone this year) should have been used to buy growth instead. After all, this is a zero-sum game. Money spent on dividends and buybacks can't also be spent on making acquisitions or funding research and development, at least not without the company taking on shareholder-unfriendly debt (which it has done, to the tune of an additional $241 million in interest expense in 2016).
Missing out?
There have been at least two acquisitions of high-profile biotech companies by competitors since 2015. I don't know if Gilead Sciences was a bidder, but snagging any of these companies could have kick-started its growth and reignited investor enthusiasm.
Pharmacyclics, which owns 50% of the blockbuster cancer drug Imbruvica, was acquired by AbbVie Inc. (NYSE: ABBV) last year for $21 billion, and Medivation, which shares the rights to the blockbuster cancer drug Xtandi, got gobbled up by Pfizer (NYSE: PFE) this year for $14 billion.
The prices paid to buy these companies weren't bargains -- at least not based on current price to sales or earnings. But both deals gave their acquirers the potential for billions of dollars in revenue growth courtesy of ongoing trials that could expand the medications' addressable patient populations. In Pharmacyclics' case, AbbVie has said that Imbruvica could potentially bring in $7 billion per year in sales someday. Over at Medivation, Pfizer thinks sales could climb meaningfully for Xtandi as it gets used earlier in patient treatment.
Gilead Sciences has long maintained that it wants to be conservative in its approach to M&A, and that's likely why it took a pass on these two deals, but waiting for the opportunity to pay the right price at the right time does come with risks, including the risk of sitting on the sidelines as peers make strides forward.
Gilead Sciences hasn't always been unwilling to bet big. Exhibit A: its $11 billion deal to buy Pharmasset and land Sovaldi in the first place. Undeniably, opportunities like that are few and far between, but nevertheless, there comes a point when investors are left wondering: At exactly what price would Gilead Sciences be willing to make a splash? Or, more to the point, would Gilead Sciences have been more willing to commit to a big deal like Pharmacyclics or Medivation if management had held on to its cash instead of promising it to investors?
Steady hand
The decline in hepatitis C revenue isn't surprising to anyone. AbbVie and Merck & Co. (NYSE: MRK) have both launched competing therapies that are driving down prices, and there's no longer pent-up demand from warehousing patients, like there was in 2014.
Nevertheless, hepatitis C sales could begin leveling off soon, and this market remains one of the most lucrative out there. Gilead Sciences is still a Goliath in the space, kicking off tremendous cash flow, so an argument can be made that easier revenue comparisons next year could help convince investors to return.
Assuming that case plays out, then the benefit of acquisitions could be even more needle-moving in 2017, and for that reason I, for one, would like to see management, instead of returning more money to investors -- especially via buybacks -- step up and buy some growth.
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Todd Campbell owns shares of Gilead Sciences and Pfizer. E.B. Capital's clients may have positions in the companies mentioned.Like this article? Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this.
The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Pharmacyclics, which owns 50% of the blockbuster cancer drug Imbruvica, was acquired by AbbVie Inc. (NYSE: ABBV) last year for $21 billion, and Medivation, which shares the rights to the blockbuster cancer drug Xtandi, got gobbled up by Pfizer (NYSE: PFE) this year for $14 billion. In Pharmacyclics' case, AbbVie has said that Imbruvica could potentially bring in $7 billion per year in sales someday. AbbVie and Merck & Co. (NYSE: MRK) have both launched competing therapies that are driving down prices, and there's no longer pent-up demand from warehousing patients, like there was in 2014. | Pharmacyclics, which owns 50% of the blockbuster cancer drug Imbruvica, was acquired by AbbVie Inc. (NYSE: ABBV) last year for $21 billion, and Medivation, which shares the rights to the blockbuster cancer drug Xtandi, got gobbled up by Pfizer (NYSE: PFE) this year for $14 billion. In Pharmacyclics' case, AbbVie has said that Imbruvica could potentially bring in $7 billion per year in sales someday. AbbVie and Merck & Co. (NYSE: MRK) have both launched competing therapies that are driving down prices, and there's no longer pent-up demand from warehousing patients, like there was in 2014. | Pharmacyclics, which owns 50% of the blockbuster cancer drug Imbruvica, was acquired by AbbVie Inc. (NYSE: ABBV) last year for $21 billion, and Medivation, which shares the rights to the blockbuster cancer drug Xtandi, got gobbled up by Pfizer (NYSE: PFE) this year for $14 billion. In Pharmacyclics' case, AbbVie has said that Imbruvica could potentially bring in $7 billion per year in sales someday. AbbVie and Merck & Co. (NYSE: MRK) have both launched competing therapies that are driving down prices, and there's no longer pent-up demand from warehousing patients, like there was in 2014. | Pharmacyclics, which owns 50% of the blockbuster cancer drug Imbruvica, was acquired by AbbVie Inc. (NYSE: ABBV) last year for $21 billion, and Medivation, which shares the rights to the blockbuster cancer drug Xtandi, got gobbled up by Pfizer (NYSE: PFE) this year for $14 billion. In Pharmacyclics' case, AbbVie has said that Imbruvica could potentially bring in $7 billion per year in sales someday. AbbVie and Merck & Co. (NYSE: MRK) have both launched competing therapies that are driving down prices, and there's no longer pent-up demand from warehousing patients, like there was in 2014. |
26342.0 | 2016-12-16 00:00:00 UTC | Gilead to Pay Merck $2.5B in HCV Patent Dispute, Stock Falls | ABBV | https://www.nasdaq.com/articles/gilead-to-pay-merck-%242.5b-in-hcv-patent-dispute-stock-falls-2016-12-16 | nan | nan | Gilead Sciences Inc.GILD suffered a major setback after a federal jury in the U.S. District Court, District of Delaware ordered the company to pay $2.54 billion in royalties to Merck & Co., Inc. MRK for a patent infringement lawsuit related to its sofosbuvir-based medicines for the treatment of hepatitis C virus (HCV), including its blockbuster drugs, Sovaldi and Harvoni.
After an almost two-week long trial, the jury came to a decision that Gilead owed 10% royalties on total sales of a staggering $25.4 billion for the two drugs. While Gilead's shares lost 2.1% in afterhours trading on Dec 15, Merck's stock gained 1.3%.
Gilead's year-to-date share price movement shows that the stock has outperformed the Zacks classified Medical - Biomedical and Genetics industry, albeit marginally. The stock has lost 25.3% so far this year, compared to the industry's 25.5% decline. Merck too outdid the Zacks classified Large Cap Pharmaceuticals industry's performance. It has surged 18.1% so far this year, while the industry lost 6%.
While reports say that Gilead is planning to aggressively appeal to the ruling, the company has asserted that the verdict will not be able to affect sofosbuvir and sofosbuvir-containing drugs sold in the U.S.
We remind investors that Idenix Pharmaceuticals, Inc., which was acquired by Merck in Aug 2014, filed a patent infringement lawsuit against Gilead in Dec 2013, bringing charges against the latter's method of treating HCV using Sovaldi. In Jan 2012, Gilead had acquired Pharmasset, Inc. in a transaction that added sofosbuvir, a nucleotide analog that acts to inhibit the replication of HCV, to its portfolio.
Gilead gained U.S. approval for sofosbuvir, marketed as Sovaldi in Dec 2013, which was followed by the FDA nod for Harvoni, a combination of sofosbuvir and ledipasvir, in Oct 2014. The lawsuit was meant to determine the first to invent the claimed methods of treating HCV. According to Gilead, Idenix never satisfactorily described what it claimed to have invented and the patent didn't cover a new idea either.
We note that this was the second time that Gilead and Merck were involved in a patent infringement lawsuit. The first trial was initially resolved in Mar 2016, after a jury in the U.S. District Court, Northern District of California ordered Gilead to pay $200 million to Merck. However, in June, the court ruled in Gilead's favor and overturned the verdict.
Gilead was also involved in several patent disputes with AbbVie Inc. ABBV related to its HCV treatment. The companies, however, resolved their disputes and entered into a settlement agreement in Aug 2016.
The latest development has dealt a major blow to Gilead's stock, especially at a time when the company's HCV franchise is already reeling under competitive and pricing pressure from Merck's Zepatier and AbbVie's Viekira Pak.
Both Gilead and Merck carry a Zacks Rank #3 (Hold).
A Key Pick
Vanda Pharmaceuticals, Inc. VNDA is a better-ranked stock in the health care sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Vanda's loss estimates narrowed from 62 cents to 52 cents for 2016, while its earnings estimates for 2017 increased from 13 cents to 22 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 71% 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. | The latest development has dealt a major blow to Gilead's stock, especially at a time when the company's HCV franchise is already reeling under competitive and pricing pressure from Merck's Zepatier and AbbVie's Viekira Pak. Gilead was also involved in several patent disputes with AbbVie Inc. ABBV related to its HCV treatment. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead was also involved in several patent disputes with AbbVie Inc. ABBV related to its HCV treatment. The latest development has dealt a major blow to Gilead's stock, especially at a time when the company's HCV franchise is already reeling under competitive and pricing pressure from Merck's Zepatier and AbbVie's Viekira Pak. | Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead was also involved in several patent disputes with AbbVie Inc. ABBV related to its HCV treatment. The latest development has dealt a major blow to Gilead's stock, especially at a time when the company's HCV franchise is already reeling under competitive and pricing pressure from Merck's Zepatier and AbbVie's Viekira Pak. | Gilead was also involved in several patent disputes with AbbVie Inc. ABBV related to its HCV treatment. The latest development has dealt a major blow to Gilead's stock, especially at a time when the company's HCV franchise is already reeling under competitive and pricing pressure from Merck's Zepatier and AbbVie's Viekira Pak. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26343.0 | 2016-12-16 00:00:00 UTC | Why AbbVie Inc (ABBV) Stock Is Still a Long-Term Winner | ABBV | https://www.nasdaq.com/articles/why-abbvie-inc-abbv-stock-is-still-a-long-term-winner-2016-12-16 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) makes the top-selling drug in the history of pharmaceuticals: Humira. Humira brings in $14 billion a year for ABBV stock and it's still growing sales.
Source: Black Stripe via Wikimedia (Modified)
That is a blockbuster drug. It currently accounts for around 64% of AbbVie's revenue, which is a double-edged sword.
Being so dependent on one drug could mean that the biotech is setting itself up for a fall once the growth arc on Humira heads south. Also, Humira comes off patent (technically) this month.
However, Humira has proven itself to be a highly effective drug for a number of auto-immune maladies, from Crohn's Disease, to rheumatoid arthritis to psoriasis and many other chronic issues. And now that the drug is well known and happily prescribed by physicians, its sales will continue to be strong.
Also, because it is so versatile, it is easier for ABBV to ask the Food and Drug Administration for approval for related conditions. That will extend the patent life on Humira and give the drug a very long tail.
The 7 Best Monthly Dividend Stocks for 2017
Also, as long as AbbVie keeps rolling out new uses, no one can launch biosimilars to compete with Humira. ABBV expects patent protection on Humira to last until 2022, and has planned for that transition.
What Is the Future of ABBV Stock?
But we've seen biotech get hammered in 2016 because everyone expected Hillary Clinton to win the White House and go after drug companies like AbbVie for the costs of their meds. Between Sept. 23 and Nov. 3, the Dow Jones Biotech Index was off 15%.
Then Trump won. And biotech took off with the assumption that no Clinton meant no pricing pressure for drug companies.
But then another wave of angst rolled over traders. Perhaps Trump will stick to his populist rhetoric and go after drug pricing to help the 'little guy' who's just trying to feed his family, not spend a month's wages on his weekly drug prescriptions. In the past month, ABBV stock is off nearly 2%.
That makes now a great opportunity to get into AbbVie stock, while the herd is confused by the conflicting messages. Remember, ABBV stock is one of the top income stocks around, beyond its significant growth potential. Right now it delivers a 4.1% dividend yield, and it's rock solid.
As far as its pipeline goes, AbbVie has 15 drugs in late stage clinical trials. It also has a couple other drugs on the market that are doing well.
Bottom Line on AbbVie Stock
Viekira is its hepatitis C drug and sales have been growing. Revenue this year is around $1.5 billion. But competition is heating up in the hep C world, so there will be a balancing act between discounting the $85,000 price tag for a 12-week dose and gaining more customers by being price competitive. It's currently around the same price point Gilead Sciences, Inc. (NASDAQ: GILD ) charges for its hep C drug Sovaldi.
General Electric Company (GE): Good Company, Terrible Stock
Imbruvica is a cancer drug that added more than $1.5 billion into ABBV coffers this year and its potential is still in its infancy. Now that it has established a foothold, it can spread out to capture other specific conditions.
Elagolix is another drug in late-stage development targeting endometriosis and uterine fibroids. This could be another hit to keep AbbVie stock on track for many years to come.
When you add all of these factors up, ABBV stock is a solid long-term choice.
Richard Band'sProfitable Investing advisory service helps retirement savers outperform the market without losing a minute of sleep along the way. His straightforward style and low-risk value approach has won seven Best Financial Advisory awards from the Newsletter and Electronic Publishers Foundation.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But we've seen biotech get hammered in 2016 because everyone expected Hillary Clinton to win the White House and go after drug companies like AbbVie for the costs of their meds. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) makes the top-selling drug in the history of pharmaceuticals: Humira. Humira brings in $14 billion a year for ABBV stock and it's still growing sales. | Humira brings in $14 billion a year for ABBV stock and it's still growing sales. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) makes the top-selling drug in the history of pharmaceuticals: Humira. | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) makes the top-selling drug in the history of pharmaceuticals: Humira. General Electric Company (GE): Good Company, Terrible Stock Imbruvica is a cancer drug that added more than $1.5 billion into ABBV coffers this year and its potential is still in its infancy. More From InvestorPlace The 7 WORST Stocks to Buy for 2017 The 10 Best Stocks to Buy for 2017 The post Why AbbVie Inc (ABBV) Stock Is Still a Long-Term Winner appeared first on InvestorPlace . | Humira brings in $14 billion a year for ABBV stock and it's still growing sales. The 7 Best Monthly Dividend Stocks for 2017 Also, as long as AbbVie keeps rolling out new uses, no one can launch biosimilars to compete with Humira. In the past month, ABBV stock is off nearly 2%. |
26344.0 | 2016-12-15 00:00:00 UTC | 5 Fairly Valued Dividend Growth Stocks In The Healthcare Sector | ABBV | https://www.nasdaq.com/articles/5-fairly-valued-dividend-growth-stocks-healthcare-sector-2016-12-15 | nan | nan | By Chuck Carnevale :
Introduction
President-elect Donald Trump recently commented in a Time magazine interview that he'll bring down drug prices. Apparently, the president-elect's remarks were not well received by the market, because they led to an immediate and initial significant drop in the stock prices of many healthcare-related companies.
However, I feel it's important to note that these price drops were not the direct result of an actual deterioration in fundamentals. Instead, the price drops occurred as a result of a perceived negative future impact on fundamentals. Time will tell whether Donald Trump can actually bring drug prices down and whether or not there will be a real impact on the operating results of many healthcare companies.
Furthermore, since the original negative reaction to this news (I would call it noise), healthcare stocks are rallying. More importantly, many of them are rising at a much higher percentage rate than the market. In the short run, stock price movements can be quite irrational and easily incited by knee-jerk emotional responses. This often creates incredible long-term investment opportunities, especially on fundamentally sound companies.
Be Greedy When Others Are Fearful - But Be Smart About It
Healthcare stocks have generally been poor performers in calendar year 2016. I suggest that this weak performance, especially relative to high-quality, fundamentally sound healthcare stocks, can be somewhat attributable to political uncertainty regarding the future of healthcare. On the other hand, political uncertainty manifesting in 2016 could also be looked at as the catalyst that is bringing healthcare stocks that were overvalued in 2015 down to fundamentally justified levels.
This speaks to how fickle market prices can be. Yesterday's heroes (healthcare stocks) are becoming today's villains. After all, it's quite common that many investors love stocks that are going up in price and tend to hate stocks that are going down in price. But I contend that stock price action alone rarely tells the whole and complete story. It is only when stock prices are measured relative to fundamental values that the truth can be found.
Consequently, when I am looking for stocks to buy, I am most concerned about measuring important fundamentals, such as earnings, cash flows and dividends. I love stocks whose earnings, cash flows and dividends are rising, but only when their prices are in alignment with fundamental values. Stated more plainly, I only like a stock when its price is rising, while simultaneously being supported by fundamental value.
On the other hand, I like it even better when the stock price is falling when earnings cash flows and dividends are rising. However, the recent direction of stock price movement is not the primary factor that will attract me to a stock. Instead, I am most focused on attempting to ascertain the intrinsic value of any company I am interested in. Therefore, when it comes down to price, my primary questions are - is the stock trading at fair value, or preferably below fair value?
But perhaps more importantly, I tend to only fall in love with a stock when its price is falling while its earnings, cash flows and dividends are increasing. This is when I consider a stock truly worthy of my affection. No matter how much I admire the business behind a stock, if the market is pricing it excessively, it will never get my attention.
But when I like a strong and sound business, and I am fortunate enough to discover it when it is out-of-favor in the market, this is when I become enamored. I believe this speaks to the wisdom supporting Warren Buffett's sage advice - to be greedy when others are fearful and fearful when others are greedy. I believe there are many high-quality dividend-paying healthcare stocks that are currently fitting that bill. Below are five examples that I consider worthy of current consideration and a more comprehensive research and due diligence effort.
5 Attractively Valued Healthcare Sector Dividend Growth Stocks
These five dividend growth healthcare stocks are currently trading at very attractive fundamental valuations. As a result, they all reflect high earnings and cash flow yields. This implies that their valuations are attractive relative to their fundamental values. The following portfolio review lists them in order of highest current dividend yield to lowest.
Moreover, although all of these healthcare stocks would qualify as dividend growth stocks, there are options within this group that might be attractive for most every dividend investor's relative objectives. Within this group, you have high-yield with low growth, moderate yield with above-average growth potential and above-market yield with above-market growth potential. Consequently, whether it's maximum current income or maximum total return, each dividend investor might find something of interest to them within this group.
(click to enlarge)
If a Picture's Worth 1000 Words- How Many Is A Video Worth?
As regular readers of my work will attest, I always include pictures of F.A.S.T. Graphs™ in my work. However, although the pictures often tell compelling stories, they have shortcomings because they are what I refer to as "dead graphics." As a result, I often get questions such as: why did I pick a certain time frame? Or why did I utilize a certain metric?
The simplest answer I can offer is that I try to include graphics that support and/or reflect the thesis behind the points I am attempting to make. Consequently, with this article I'm experimenting with utilizing a video where I go through my analysis utilizing live fully functioning F.A.S.T. Graphs™.
The following video includes a brief initial fundamental analysis on the following five fairly valued healthcare selections: AbbVie Inc. ( ABBV ), AmerisourceBergen Corporation ( ABC ), Amgen Inc. ( AMGN ), Cardinal Health Inc. ( CAH ) and Teva Pharmaceutical Industries ( TEVA ). This video represents preliminary research that indicates the worthiness to conduct a more comprehensive research and due diligence effort.
Summary and Conclusions
If you're a long-term investor, as I am, investing in great businesses at sound and attractive valuations is an extremely important consideration. When you invest in a great business at a sound valuation, you mitigate your long-term risk, and simultaneously enhance your potential for greater long-term performance.
Additionally, if you're a long-term investor focused on generating a passive and growing income stream, then valuation is even more relevant. Investing in a great business at a sound valuation ensures that you will purchase more shares than you would at a higher valuation. In essence, this means that you are efficiently investing your hard-earned capital in a prudent manner. Since dividends are paid on the number of shares owned, this will lead to a greater level of dividend income presently, and into the future.
Investing when valuation is sound allows you to effectively participate in the future growth of the business you are purchasing. When you overpay for a great business, as long as you are not completely reckless, you are still likely to make a decent return over time. However, by paying too much, you limit your ability to participate in the company's long-term growth. In the longer run, a company's stock price will eventually gravitate to fair value, as illustrated in the video above. Consequently, overpaying for a stock initially reduces your opportunity to participate in the company's growth potential.
Finally, when you can purchase a great company when it is undervalued, you leverage your upside while lowering your risk. Therefore, not only do you effectively participate in the company's future growth, you also stand to receive a bonus of sorts. Instead of just participating in the company's growth, you also have the opportunity for P/E ratio expansion. Simply stated, not only are you purchasing more future earnings based on growth, you also have the opportunity to see those greater future earnings capitalized at a higher multiple. I call this natural leverage.
I believe each of the healthcare companies on this list currently provide such an opportunity. However, my position is preliminary based on current valuation and current expectations for future growth of each of these companies. In other words, I offer each of these companies as worthy prospects for a more comprehensive research and due diligence effort. There are choices in this list for most every investment objective. I leave it up to each reader to decide whether any of these selections are worthy of future consideration and research.
See also The Short Case For Autodesk on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following video includes a brief initial fundamental analysis on the following five fairly valued healthcare selections: AbbVie Inc. ( ABBV ), AmerisourceBergen Corporation ( ABC ), Amgen Inc. ( AMGN ), Cardinal Health Inc. ( CAH ) and Teva Pharmaceutical Industries ( TEVA ). By Chuck Carnevale : Introduction President-elect Donald Trump recently commented in a Time magazine interview that he'll bring down drug prices. Apparently, the president-elect's remarks were not well received by the market, because they led to an immediate and initial significant drop in the stock prices of many healthcare-related companies. | The following video includes a brief initial fundamental analysis on the following five fairly valued healthcare selections: AbbVie Inc. ( ABBV ), AmerisourceBergen Corporation ( ABC ), Amgen Inc. ( AMGN ), Cardinal Health Inc. ( CAH ) and Teva Pharmaceutical Industries ( TEVA ). 5 Attractively Valued Healthcare Sector Dividend Growth Stocks These five dividend growth healthcare stocks are currently trading at very attractive fundamental valuations. Within this group, you have high-yield with low growth, moderate yield with above-average growth potential and above-market yield with above-market growth potential. | The following video includes a brief initial fundamental analysis on the following five fairly valued healthcare selections: AbbVie Inc. ( ABBV ), AmerisourceBergen Corporation ( ABC ), Amgen Inc. ( AMGN ), Cardinal Health Inc. ( CAH ) and Teva Pharmaceutical Industries ( TEVA ). After all, it's quite common that many investors love stocks that are going up in price and tend to hate stocks that are going down in price. 5 Attractively Valued Healthcare Sector Dividend Growth Stocks These five dividend growth healthcare stocks are currently trading at very attractive fundamental valuations. | The following video includes a brief initial fundamental analysis on the following five fairly valued healthcare selections: AbbVie Inc. ( ABBV ), AmerisourceBergen Corporation ( ABC ), Amgen Inc. ( AMGN ), Cardinal Health Inc. ( CAH ) and Teva Pharmaceutical Industries ( TEVA ). 5 Attractively Valued Healthcare Sector Dividend Growth Stocks These five dividend growth healthcare stocks are currently trading at very attractive fundamental valuations. Moreover, although all of these healthcare stocks would qualify as dividend growth stocks, there are options within this group that might be attractive for most every dividend investor's relative objectives. |
26345.0 | 2016-12-15 00:00:00 UTC | How Risky Is Gilead Sciences Inc.? | ABBV | https://www.nasdaq.com/articles/how-risky-gilead-sciences-inc-2016-12-15 | nan | nan | Gilead Sciences Inc. (NASDAQ: GILD) has fallen about 25% this year, but that doesn't necessarily mean it couldn't fall further; the biotech is still risky.
Gilead looks really cheap right now based on trailing-12-month metrics. Its price-to-earnings ratio is a shockingly low 7. Looking at valuation based on free cash flow, the biotech looks even better, with a P/FCF ratio of 6.1. Put another way, if Gilead could continue to generate the same cash flow it has over the last 12 months, the company would have cash equal to its current market cap in six years.
Investors are clearly betting that won't happen and sales will fall further. Where Gilead's hepatitis C drug sales ultimately land and how quickly the decline occurs will determine whether Gilead is really cheap right now or just a value trap.
Unfortunately, figuring out the rate of decline is difficult because it likely depends on the actions of Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) , which both have competing hepatitis C regimens. Gilead's drugs are arguably as good or better, allowing the company to keep AbbVie and Merck from taking much of the market share, but Gilead needed to discount the price to retain that market share. If Merck or AbbVie decide they want to get into a price war to try and take market share, it could drive down prices further.
Dividend offers support?
Gilead is one of the few biotechs that offers a dividend, which could help prop up the stock price. Investors aren't necessarily buying for the current yield of 2.4%, but it's not hard to see dividend investors stepping in if the share price decreased further and/or Gilead increased its dividend, both of which would increase the yield. With a payout ratio of just 16.3%, the dividend looks safe even if sales decline further.
Unfortunately, just because Gilead will look more attractive with a larger dividend yield doesn't mean shares won't fall further. We have a good example of this from a few years ago when Pfizer was on the cusp of losing its top-selling drug Lipitor. Even as the yield topped 5% and larger, shares of the pharma giant continued to decline.
PFE data by YCharts .
It wasn't until Pfizer bought Wyeth in 2009 and cut its dividend in half that the share price started to recover.
The ultimate risk
If Gilead follows the same path as Pfizer, then the real risk for investors is that Gilead's management doesn't do anything to help provide growth through an acquisition. Shares may continue to fall until investors believe revenue will get back to substantial growth.
Investors that have confidence that management will eventually use its cash to spur growth externally can purchase now and enjoy the dividend while they wait.
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Brian Orelli has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Unfortunately, figuring out the rate of decline is difficult because it likely depends on the actions of Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) , which both have competing hepatitis C regimens. Gilead's drugs are arguably as good or better, allowing the company to keep AbbVie and Merck from taking much of the market share, but Gilead needed to discount the price to retain that market share. If Merck or AbbVie decide they want to get into a price war to try and take market share, it could drive down prices further. | Unfortunately, figuring out the rate of decline is difficult because it likely depends on the actions of Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) , which both have competing hepatitis C regimens. Gilead's drugs are arguably as good or better, allowing the company to keep AbbVie and Merck from taking much of the market share, but Gilead needed to discount the price to retain that market share. If Merck or AbbVie decide they want to get into a price war to try and take market share, it could drive down prices further. | Gilead's drugs are arguably as good or better, allowing the company to keep AbbVie and Merck from taking much of the market share, but Gilead needed to discount the price to retain that market share. Unfortunately, figuring out the rate of decline is difficult because it likely depends on the actions of Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) , which both have competing hepatitis C regimens. If Merck or AbbVie decide they want to get into a price war to try and take market share, it could drive down prices further. | Unfortunately, figuring out the rate of decline is difficult because it likely depends on the actions of Merck (NYSE: MRK) and AbbVie (NYSE: ABBV) , which both have competing hepatitis C regimens. Gilead's drugs are arguably as good or better, allowing the company to keep AbbVie and Merck from taking much of the market share, but Gilead needed to discount the price to retain that market share. If Merck or AbbVie decide they want to get into a price war to try and take market share, it could drive down prices further. |
26346.0 | 2016-12-14 00:00:00 UTC | XLV, AMGN, ABBV, GILD: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-amgn-abbv-gild-etf-outflow-alert-2016-12-14 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $327.7 million dollar outflow -- that's a 2.4% decrease week over week (from 199,315,324 to 194,615,324). Among the largest underlying components of XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Gilead Sciences, Inc. (Symbol: GILD) is higher by about 1.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.66. 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 XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Gilead Sciences, Inc. (Symbol: GILD) is higher by about 1.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $327.7 million dollar outflow -- that's a 2.4% decrease week over week (from 199,315,324 to 194,615,324). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Gilead Sciences, Inc. (Symbol: GILD) is higher by about 1.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.66. 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 XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Gilead Sciences, Inc. (Symbol: GILD) is higher by about 1.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $327.7 million dollar outflow -- that's a 2.4% decrease week over week (from 199,315,324 to 194,615,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.66. | Among the largest underlying components of XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Gilead Sciences, Inc. (Symbol: GILD) is higher by about 1.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $62.68 per share, with $76.00 as the 52 week high point - that compares with a last trade of $69.66. 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). |
26347.0 | 2016-12-12 00:00:00 UTC | Roche/AbbVie's Leukemia Drug Venclyxto Gains EU Approval | ABBV | https://www.nasdaq.com/articles/roche-abbvies-leukemia-drug-venclyxto-gains-eu-approval-2016-12-12 | nan | nan | Roche Holding AGRHHBY and partner AbbVie Inc. ABBV announced that the European Commission has granted conditional marketing approval to Venclyxto (U.S. trade name: Venclexta) for the treatment of chronic lymphocytic leukemia (CLL) in the presence of 17p deletion or TP53 mutation in adult patients who are unsuitable for or have failed a B-cell receptor pathway inhibitor; and for the treatment of CLL without 17p deletion or TP53 mutation in adult patients who have failed both chemo-immunotherapy and a B-cell receptor pathway inhibitor.
Note that the year-to-date share price movement shows that while Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry, AbbVie outperformed the same. Roche has lost 19.1%, while AbbVie gained 3.9% so far this year, compared to a drop of 7.1% for the industry.
We note that a conditional marketing authorization is generally granted to treatments that address unmet medical need, where the benefit of its immediate availability to patients outweighs the risk of limited data availability, and where comprehensive data will be provided.
The latest approval is encouraging as it is expected to provide significant benefit to patients suffering from this hard-to-treat type of CLL. According to the press release issued by the companies, CLL is the most common type of leukemia in adults. The 17p deletion is found in 3-10% of previously untreated CLL cases and in up to 30-50% of patients of relapsed/refractory CLL cases.
We remind investors that Venclyxto gained accelerated approval in the U.S. in Apr 2016 for the treatment of patients with CLL with 17p deletion, as detected by an FDA approved test, who have received at least one prior therapy.
Venclyxto is being co-developed by Roche and AbbVie. While the companies are responsible for jointly commercializing the drug in the U.S., AbbVie will be responsible for commercialization outside the U.S.
Venclyxto is also being evaluated in a phase III program for the treatment of relapsed, refractory and previously untreated CLL, along with studies across several other cancers. Venclyxto enjoys Orphan Drug status in the EU for the treatment of multiple myeloma, diffuse large B-cell lymphoma CLL and acute myeloid leukemia.
Approval of Venclyxto has strengthened Roche's hematology portfolio, which already boasts drugs like MabThera/Rituxan and Gazyva/Gazyvaro. The company also has a deep pipeline of candidates, including a small-molecule antagonist of MDM2 (idasanutlin/RG7388) among others.
While Roche carries a Zacks Rank #4 (Sell), AbbVie is a Zacks Rank #3 (Hold) stock.
Key Picks
A couple of better-ranked stocks in the health care sector include Sucampo Pharmaceuticals, Inc. SCMP and Vanda Pharmaceuticals, Inc. VNDA . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Vanda's loss estimates narrowed from 62 cents to 52 cents for 2016, while its earnings estimates increased from 13 cents to 22 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 71% year to date.
Sucampo's earnings estimates increased from $1.03 to $1.22 for 2016 and from $1.30 to $1.58 for 2017 over the last 60 days. The company posted a positive surprise in all of the four trailing quarters with an average beat of 35.55%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roche Holding AGRHHBY and partner AbbVie Inc. ABBV announced that the European Commission has granted conditional marketing approval to Venclyxto (U.S. trade name: Venclexta) for the treatment of chronic lymphocytic leukemia (CLL) in the presence of 17p deletion or TP53 mutation in adult patients who are unsuitable for or have failed a B-cell receptor pathway inhibitor; and for the treatment of CLL without 17p deletion or TP53 mutation in adult patients who have failed both chemo-immunotherapy and a B-cell receptor pathway inhibitor. Note that the year-to-date share price movement shows that while Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry, AbbVie outperformed the same. Roche has lost 19.1%, while AbbVie gained 3.9% so far this year, compared to a drop of 7.1% for the industry. | Roche Holding AGRHHBY and partner AbbVie Inc. ABBV announced that the European Commission has granted conditional marketing approval to Venclyxto (U.S. trade name: Venclexta) for the treatment of chronic lymphocytic leukemia (CLL) in the presence of 17p deletion or TP53 mutation in adult patients who are unsuitable for or have failed a B-cell receptor pathway inhibitor; and for the treatment of CLL without 17p deletion or TP53 mutation in adult patients who have failed both chemo-immunotherapy and a B-cell receptor pathway inhibitor. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Note that the year-to-date share price movement shows that while Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry, AbbVie outperformed the same. | Roche Holding AGRHHBY and partner AbbVie Inc. ABBV announced that the European Commission has granted conditional marketing approval to Venclyxto (U.S. trade name: Venclexta) for the treatment of chronic lymphocytic leukemia (CLL) in the presence of 17p deletion or TP53 mutation in adult patients who are unsuitable for or have failed a B-cell receptor pathway inhibitor; and for the treatment of CLL without 17p deletion or TP53 mutation in adult patients who have failed both chemo-immunotherapy and a B-cell receptor pathway inhibitor. While Roche carries a Zacks Rank #4 (Sell), AbbVie is a Zacks Rank #3 (Hold) stock. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Roche Holding AGRHHBY and partner AbbVie Inc. ABBV announced that the European Commission has granted conditional marketing approval to Venclyxto (U.S. trade name: Venclexta) for the treatment of chronic lymphocytic leukemia (CLL) in the presence of 17p deletion or TP53 mutation in adult patients who are unsuitable for or have failed a B-cell receptor pathway inhibitor; and for the treatment of CLL without 17p deletion or TP53 mutation in adult patients who have failed both chemo-immunotherapy and a B-cell receptor pathway inhibitor. Note that the year-to-date share price movement shows that while Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry, AbbVie outperformed the same. Roche has lost 19.1%, while AbbVie gained 3.9% so far this year, compared to a drop of 7.1% for the industry. |
26348.0 | 2016-12-11 00:00:00 UTC | Roche's Leukemia Drug Approved for Next Step in Europe | ABBV | https://www.nasdaq.com/articles/roches-leukemia-drug-approved-next-step-europe-2016-12-11 | nan | nan | Roche ( RHHBY ) announced on Dec. 8 that Venclyxto (venetoclax), a drug that is used as therapy in patients chronically affected with lymphocytic leukemia, has been authorized by the European Commission, achieving the "conditional marketing."
The Swiss global healthcare company's announcement specifically refers to the following two groups of chronically patients affected with lymphocytic leukemia:
The first group is composed of patients in whom the highest portion of one of the two chromosomes number -7 is lacking, which is a very small portion and is labelled as p , or whose gene TP5' is altered. On these patients, a previous therapy based on the blockage of the protein B, which is considered to be responsible in a process called apoptosis that is the 'programmed cell death', was either unsuccessful or unfeasible.
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The second group is composed of patients who don't show the genetic particularities of the aforementioned group. On these patients, a previous therapy based on the blockage of the protein B and a prior chemotherapy together with immunotherapy, were both unsuccessful.
Venclyxto is an organic combination of low molecular weight that inhibits the B-cell lymphoma-- (or BCL--) protein. The researchers correlate this protein with the failure of therapy because it was found in high percentages in chronic CLL patients' blood. Therefore, the researchers believe that blocking the BCL--, the signalling system that brings cells suicide may be repaired and therefore the outcome for patients with chronic lymphocytic leukemia may be improved.
The European Medicines Agency says that "applicants may be granted a conditional marketing authorisation for such medicines where the benefit of immediate availability outweighs the risk of less comprehensive data than normally required."
Furthermore, patients chronically affected with lymphocytic leukemia and who either show anomalies in one of the two chromosomes number -7 or on whom a previous therapy was unsuccessful, "are in particular need of new treatment options as the disease is more difficult to treat and further options are limited," the company says.
Roche ( RHHBY ) is advancing Venclyxto in cooperation with AbbVie ( ABBV ).
Roche Group, through one of its subsidiaries, Genentech, together with AbbVie, markets the medication Venclexta/Venclyxto in the U.S. under the name of Venclexta. AbbVie has also the right to market Venclyxto outside the U.S.
Roche closed at $-7.86 Friday, up 79 cents or -.88% from the previous close. The stock lost -9.-8% year to date.
Disclosure: I have no positions in any stock mentioned in this article.
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Roche's Leukemia Drug Approved for Next Step in Europe
About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roche ( RHHBY ) is advancing Venclyxto in cooperation with AbbVie ( ABBV ). Roche Group, through one of its subsidiaries, Genentech, together with AbbVie, markets the medication Venclexta/Venclyxto in the U.S. under the name of Venclexta. AbbVie has also the right to market Venclyxto outside the U.S. Roche closed at $-7.86 Friday, up 79 cents or -.88% from the previous close. | Roche ( RHHBY ) is advancing Venclyxto in cooperation with AbbVie ( ABBV ). Roche Group, through one of its subsidiaries, Genentech, together with AbbVie, markets the medication Venclexta/Venclyxto in the U.S. under the name of Venclexta. AbbVie has also the right to market Venclyxto outside the U.S. Roche closed at $-7.86 Friday, up 79 cents or -.88% from the previous close. | Roche ( RHHBY ) is advancing Venclyxto in cooperation with AbbVie ( ABBV ). Roche Group, through one of its subsidiaries, Genentech, together with AbbVie, markets the medication Venclexta/Venclyxto in the U.S. under the name of Venclexta. AbbVie has also the right to market Venclyxto outside the U.S. Roche closed at $-7.86 Friday, up 79 cents or -.88% from the previous close. | Roche ( RHHBY ) is advancing Venclyxto in cooperation with AbbVie ( ABBV ). Roche Group, through one of its subsidiaries, Genentech, together with AbbVie, markets the medication Venclexta/Venclyxto in the U.S. under the name of Venclexta. AbbVie has also the right to market Venclyxto outside the U.S. Roche closed at $-7.86 Friday, up 79 cents or -.88% from the previous close. |
26349.0 | 2016-12-11 00:00:00 UTC | Marijuana Investing in 2017: 5 Numbers Everyone Should Know | ABBV | https://www.nasdaq.com/articles/marijuana-investing-2017-5-numbers-everyone-should-know-2016-12-11 | nan | nan | Many marijuana stocks have soared in 2016 , with one enjoying especially impressive gains of well over 2,000%. However, this speculative industry is fraught with risk . If you're considering investing in marijuana stocks in the new year, here are five numbers you should know before taking the plunge.
$50 billion
Ackrell Capital projects that the market for cannabinoid-based pharmaceuticals will top $50 billion annually. Before you get too excited, though, read the fine print. The investment firm notes that the market won't develop until after the end of "prohibition" -- i.e. the lifting of federal laws against use of marijuana.
Assuming federal laws do indeed change, is this estimate realistic? Possibly. Cannabinoids have been found to have potential as treatments in over 40 medical indications, including cancer, chronic pain, epilepsy, and glaucoma.
One experimental drug for just one of those indications could reach peak annual sales of $3 billion if the most optimistic projections become reality. Elemer Piros with Roth Capital Partners thinks that GW Pharmaceuticals '(NASDAQ: GWPH) Epidiolex, which is in late-stage clinical studies targeting treatment of two rare forms of epilepsy, could ultimately generate annual sales in that vicinity if approved.
28
Support for use of medical marijuana is growing quickly. After the U.S. elections in November, 28 states plus the District of Columbia now allow legal use of medical marijuana. A few also allow recreational use of the drug.
Image source: Statista .
This increased acceptance should diminish the barriers for companies operating in the marijuana industry. And that presents opportunities for investors.
3
While the opportunities exist, the current realities are stark. The U.S. Food and Drug Administration has approved a grand total of three cannabinoid drugs.
Marinol, which is now marketed by AbbVie (NYSE: ABBV) , was approved way back in 1985 for treating nausea and vomiting associated with cancer chemotherapy. The drug's active ingredient is dronabinol, a man-made form of THC, which is considered the psychoactive component of marijuana.
The FDA also approved another cannabinoid, Cesamet, in 1985. However, that drug was removed from the U.S. market in 1989 for "commercial reasons." Valeant Pharmaceuticals (NYSE: VRX) later bought Cesamet and brought the drug back to market in 2006.
It took quite a while for another cannabinoid to join Marinol and Cesamet. In July of this year, the FDA gave a thumbs-up for Insys Therapeutics '(NASDAQ: INSY) Syndros. As with Marinol, the active ingredient of Syndros is dronabinol. While Marinol is available as a capsule, Syndros is a liquid formulation.
1
A very important number for investors considering investing in marijuana is how many attorney generals the U.S. federal government has: exactly one. And the person who appears to be getting the nomination to fill that role in 2017, Alabama Republican Sen. Jeff Sessions, is an adamant opponent of legalized marijuana.
Sen. Jeff Sessions. Image source: Gage Skidmore on Wikimedia Commons .
Sessions publicly chastised the Obama administration for failing to enforce federal marijuana restrictions. He has also stated that marijuana reform was "a tragic mistake." Should Sessions win confirmation, he could choose to clamp down on the growing marijuana industry with the stroke of a pen.
Will he do so? No one knows. President-elect Trump has expressed support for the use of medical marijuana, and stated that the issue should be decided at the state level.
0
It has been said that the best way to get rich during a gold rush is to sell shovels. With that in mind, perhaps the best figure for investors looking to make money from the "marijuana rush" is the number zero. Companies that have zero marijuana-related products, but that have the potential to benefit by serving those that do might be the smartest marijuana investing play of all.
One possibility is Scotts Miracle-Gro (NYSE: SMG) . The company has acquired several leaders in hydroponics and has positioned itself as the premier supplier for indoor marijuana growers. Scotts generated revenue of over $2.8 billion last year, although less than 10% of that total stemmed from its hydroponics business.
Let's suppose that Sessions becomes attorney general, but doesn't disrupt what the states are doing with regards to legalization of marijuana. Let's say the FDA approves more cannabinoid drugs. Let's assume that medical marijuana becomes a $50 billion industry as some project. AbbVie and Valeant won't be the biggest winners, for sure. What about GW Pharmaceuticals or Insys? Probably not, either.
If all that happens, a lot more marijuana will need to be grown. And plenty of hydroponics products will be needed. Scotts just might be the best marijuana investment around, even though the company doesn't have any marijuana products at all. Zero is a great number to know if you're looking to invest in marijuana in 2017.
A secret billion-dollar stock opportunity
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Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Marinol, which is now marketed by AbbVie (NYSE: ABBV) , was approved way back in 1985 for treating nausea and vomiting associated with cancer chemotherapy. AbbVie and Valeant won't be the biggest winners, for sure. The investment firm notes that the market won't develop until after the end of "prohibition" -- i.e. the lifting of federal laws against use of marijuana. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Marinol, which is now marketed by AbbVie (NYSE: ABBV) , was approved way back in 1985 for treating nausea and vomiting associated with cancer chemotherapy. AbbVie and Valeant won't be the biggest winners, for sure. | Marinol, which is now marketed by AbbVie (NYSE: ABBV) , was approved way back in 1985 for treating nausea and vomiting associated with cancer chemotherapy. AbbVie and Valeant won't be the biggest winners, for sure. The investment firm notes that the market won't develop until after the end of "prohibition" -- i.e. the lifting of federal laws against use of marijuana. | Marinol, which is now marketed by AbbVie (NYSE: ABBV) , was approved way back in 1985 for treating nausea and vomiting associated with cancer chemotherapy. AbbVie and Valeant won't be the biggest winners, for sure. The U.S. Food and Drug Administration has approved a grand total of three cannabinoid drugs. |
26350.0 | 2016-12-09 00:00:00 UTC | Better Buy: Eli Lilly and Company vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy-eli-lilly-and-company-vs-abbvie-2016-12-09 | nan | nan | A less-than-surprising clinical failure recently sent Eli Lilly & Co. (NYSE: LLY) shares tumbling, while AbbVie (NYSE: ABBV) stock has traded sideways for most of the year. Since spinning off from its parent, Abbott , AbbVie has made an impressive effort to diversify its revenue stream away from the world's best-selling drug before it loses patent protection. Eli Lilly also has a chance to offset impending patent losses with new products.
In a trial designed to support an application, Elagolix significantly reduced endometriosis-associated pain. AbbVIe intends to file an application next year, and if approved, the drug is expected to generate peak annual sales of about $2.5 billion.
Running the numbers
Five-year growth estimates predicting AbbVie's earnings will rise at an annual rate of 14.95% are clearly expecting the company's patent portfolio to allow continued expansion of Humira sales for years to come. The stock's recent price of just 12.4 times 2017 earnings estimates isn't nearly as optimistic. If the analysts are right, investors buying AbbVie at recent prices would have a lot to be happy about in 2021.
Despite a market thumping after its Alzheimer's disease candidate failed its third late-stage trial, Eli Lilly's shares are still more expensive than AbbVie's. Recently, the stock has been trading around 16.8 times 2017 earnings estimates.
Granted, Humira revenue might begin drying up faster than expected. But with a 4.3% dividend yield and a much lower valuation, it seems like taking a chance on the stock is worthwhile. That's why AbbVie is the better buy right now.
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The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Since spinning off from its parent, Abbott , AbbVie has made an impressive effort to diversify its revenue stream away from the world's best-selling drug before it loses patent protection. Running the numbers Five-year growth estimates predicting AbbVie's earnings will rise at an annual rate of 14.95% are clearly expecting the company's patent portfolio to allow continued expansion of Humira sales for years to come. Despite a market thumping after its Alzheimer's disease candidate failed its third late-stage trial, Eli Lilly's shares are still more expensive than AbbVie's. | A less-than-surprising clinical failure recently sent Eli Lilly & Co. (NYSE: LLY) shares tumbling, while AbbVie (NYSE: ABBV) stock has traded sideways for most of the year. If the analysts are right, investors buying AbbVie at recent prices would have a lot to be happy about in 2021. Since spinning off from its parent, Abbott , AbbVie has made an impressive effort to diversify its revenue stream away from the world's best-selling drug before it loses patent protection. | A less-than-surprising clinical failure recently sent Eli Lilly & Co. (NYSE: LLY) shares tumbling, while AbbVie (NYSE: ABBV) stock has traded sideways for most of the year. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and AbbVie wasn't one of them! | Running the numbers Five-year growth estimates predicting AbbVie's earnings will rise at an annual rate of 14.95% are clearly expecting the company's patent portfolio to allow continued expansion of Humira sales for years to come. A less-than-surprising clinical failure recently sent Eli Lilly & Co. (NYSE: LLY) shares tumbling, while AbbVie (NYSE: ABBV) stock has traded sideways for most of the year. Since spinning off from its parent, Abbott , AbbVie has made an impressive effort to diversify its revenue stream away from the world's best-selling drug before it loses patent protection. |
26351.0 | 2016-12-09 00:00:00 UTC | Health Care Sector Update for 12/09/2016: BIIB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-12092016-biib-2016-12-09 | nan | nan | Top Health-care stocks:
JNJ: flat
PFE: +0.3%
ABT: flat
MRK: flat
AMGN: +0.7%
Health-care shares were mainly unchanged in pre-market trade on Friday.
In health-care stocks news, Biogen ( BIIB ) and AbbVie ( ABBV ) said that Canadian health authorities had approved Zinbryta for adult patients with active relapsing remitting multiple sclerosis who inadequately responded to or are unable to tolerate therapies indicated for treating multiple sclerosis.
Shares in Biogen were 5.8% higher at $306.26 in pre-market trade. The stock has traded between $223.02 and $333.64 over the past 52 weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In health-care stocks news, Biogen ( BIIB ) and AbbVie ( ABBV ) said that Canadian health authorities had approved Zinbryta for adult patients with active relapsing remitting multiple sclerosis who inadequately responded to or are unable to tolerate therapies indicated for treating multiple sclerosis. Top Health-care stocks: JNJ: flat Health-care shares were mainly unchanged in pre-market trade on Friday. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In health-care stocks news, Biogen ( BIIB ) and AbbVie ( ABBV ) said that Canadian health authorities had approved Zinbryta for adult patients with active relapsing remitting multiple sclerosis who inadequately responded to or are unable to tolerate therapies indicated for treating multiple sclerosis. Top Health-care stocks: JNJ: flat | In health-care stocks news, Biogen ( BIIB ) and AbbVie ( ABBV ) said that Canadian health authorities had approved Zinbryta for adult patients with active relapsing remitting multiple sclerosis who inadequately responded to or are unable to tolerate therapies indicated for treating multiple sclerosis. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In health-care stocks news, Biogen ( BIIB ) and AbbVie ( ABBV ) said that Canadian health authorities had approved Zinbryta for adult patients with active relapsing remitting multiple sclerosis who inadequately responded to or are unable to tolerate therapies indicated for treating multiple sclerosis. Top Health-care stocks: JNJ: flat The stock has traded between $223.02 and $333.64 over the past 52 weeks. |
26352.0 | 2016-12-09 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Eli Lilly | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-eli-lilly-2016-12-09 | nan | nan | Both AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have experienced recent clinical setbacks. But while AbbVie's phase 2 study of veliparib was disappointing, it didn't impact the stock too much. Lilly's shares, on the other hand, plunged on the failure of experimental Alzheimer's disease drug solanezumab in a late-stage study. Which of these two drugmakers is now the better pick for investors in light of the recent news? Here's how AbbVie and Lilly stack up.
Image source: Getty Images.
The case for AbbVie
The argument for AbbVie basically comes down to two things: growth and dividends. AbbVie's growth continues to be driven primarily by blockbuster drug Humira. Total revenue in the first nine months of 2016 jumped 14.5% year over year. Humira accounted for over three-fifths of that growth all by itself, with sales of nearly $11.8 billion during the period.
However, Imbruvica is coming on strong. Sales for the cancer drug more than tripled in the first nine months of the year compared to the prior-year period. AbbVie also saw solid growth from its hepatitis C treatment, Viekira, although sales declined in the third quarter.
What about future growth? AbbVie can count on Humira for at least a few more years. Even though the U.S. Food and Drug Administration (FDA) approved a biosimilar to Humira, AbbVie is using legal channels to keep competition at bay. Imbruvica also has plenty of room to run to get to AbbVie's peak annual sales target of $7 billion.
AbbVie also hopes to generate growth from its pipeline, which includes 15 late-stage clinical studies. Elagolix is one of the company's brightest prospects. The experimental drug is in two phase 3 studies, one targeting endometriosis and the other uterine fibroids. AbbVie expects to submit the drug for regulatory approval in 2017.
As for the dividend, you won't find too many drug stocks that top AbbVie's yield of 4.31%. That yield was helped by the company's board approving a nice increase in October. With Humira still firing on all cylinders, AbbVie shouldn't have any problems keeping the dividends flowing.
The case for Eli Lilly
It would have been much easier to make a strong case for Lilly had things gone better for solanezumab. However, the big drugmaker still has plenty of positives for investors to consider.
Lilly's revenue in the first nine months of 2016 grew 6% compared to the prior-year period. While that's not exactly awe-inspiring, it's not too bad considering that two of the company's top three best-selling drugs, Humalog and Alimta, experienced sales declines during the period. Those headwinds were overcome by strong growth from other products, particularly diabetes drug Trulicity and cancer treatments Cyramza and Erbitux.
Pipeline candidates are critical to Lilly's fortunes. The company is waiting on a regulatory decision for rheumatoid arthritis drug baracitinib. Phase 3 results of baracitinib showed that it outperformed Humira in a head-to-head matchup.
Lilly's pipeline includes 16 late-stage programs excluding those involving solanezumab. The company has partnered with AstraZeneca on another potential Alzheimer's disease drug, BACE inhibitor AZD 3293. Four of Lilly's phase 3 studies are for possible additional cancer indications for Cyramza.
Investors have historically enjoyed Lilly's strong dividends. Lilly's dividend yield stands just over 3%. While there's always the possibility of problems in the future, Lilly's cash flow should allow it to continue paying dividends at current levels.
Better buy
You've probably already figured out which one of these stocks is the better buy. AbbVie is the clear winner.
I wouldn't dismiss potential threats to Humira, but AbbVie should be able to ride on the success of its powerhouse drug for at least three or four more years. Wall Street thinks the company can achieve average annual earnings growth of 15% over the next five years. I'm not sure that AbbVie will hit that target, but it should come close. That kind of solid growth combined with a stellar dividend makes AbbVie a good pick for investors.
10 stocks we like better than AbbVie
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Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Even though the U.S. Food and Drug Administration (FDA) approved a biosimilar to Humira, AbbVie is using legal channels to keep competition at bay. Both AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have experienced recent clinical setbacks. But while AbbVie's phase 2 study of veliparib was disappointing, it didn't impact the stock too much. | Both AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have experienced recent clinical setbacks. But while AbbVie's phase 2 study of veliparib was disappointing, it didn't impact the stock too much. Here's how AbbVie and Lilly stack up. | The case for AbbVie The argument for AbbVie basically comes down to two things: growth and dividends. As for the dividend, you won't find too many drug stocks that top AbbVie's yield of 4.31%. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and AbbVie wasn't one of them! | AbbVie can count on Humira for at least a few more years. Both AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have experienced recent clinical setbacks. But while AbbVie's phase 2 study of veliparib was disappointing, it didn't impact the stock too much. |
26353.0 | 2016-12-08 00:00:00 UTC | 3 Great Dividend Stocks with a Clearance Sale Going on Now | ABBV | https://www.nasdaq.com/articles/3-great-dividend-stocks-clearance-sale-going-now-2016-12-08 | nan | nan | Image source: Getty Images.
Nothing beats scooping up a great bargain in the stock market, especially if the stock offers both a solid financial outlook and a dividend that keeps growing. You will not only get more income you can take to the bank, but buying at an undeserved price-slash sets you up for out-sized portfolio returns for years to come.
But with so many income-starved investors chasing dividends, where can you find these mispriced gems?
Right here. Three picks -- CVS Health Corp (NYSE: CVS) , AbbVie Inc .(NYSE: ABBV) , and Omega Healthcare Investors (NYSE: OHI) -- look exceptional right now. Each has been beaten down due to market bigwigs on Wall Street focusing on short-term problems and investors buying their story line. That means they're trading at bargain basement prices, at least for the present. Meanwhile, each company has a solid financial outlook and also offers terrific synergies with the changing healthcare ecosystem in America, which should give these companies and their investors a very promising future.
Let's dive in.
CVS offers diversification and can be bought near its 5-year P/E low
CVS was once a market darling, but it has been absolutely butchered this year, with the stock down 22% year-to-date, a two-year low. That puts its trailing P/E at 16.8, close to its 3-year low of 15.9, with the median over the past 13 years at 18.3. That's a hard deal to pass up on a company whose competitive position on the healthcare landscape just keeps getting stronger.
In fact, CVS has an incredible business model that features not only wide diversification and excellent synergy between segments, but terrific synergy with today's changing healthcare system. Not only is CVS one of the largest pharmacy retailers, with over 9600 stores, but it also owns a top-tier pharmacy benefits manager (PBM) that negotiates large drug pricing discounts. The combo gives it top supplier negotiating power and scale advantages, in a world where payers are becoming increasingly reliant on PBMs to help control costs. Add in the company's walk-in Minute Clinics, which provide cost-saving medical access amid a growing shortage of primary care physicians, and you've got the perfect stock for today's healthcare market.
So why is Wall Street trashing this stock? Blame it on overplayed fears about the continuing battle with competitor Walgreen Boots Alliance Inc . Back in 2012, CVS snatched Walgreen's Department of Defense military health prescription program, but this year Walgreen's snagged it back and also yanked away Prime Therapeutics' business, the nation's fourth-largest PBM.
That put a big hurt on CVS, but it's old news, and CVS's price slash shows it's more than built in. Meanwhile, pharmaceutical spending should just keep growing at a robust rate over the long-term, due to the rapid aging of the population, and the company is on track to process approximately 1.3 billion adjusted claims in 2016. In fact, management expects this company will be able to grow its profits in excess of 10% over the long term.
When it comes to a growing dividend, CVS also ticks the box. While its 2.7% dividend yield isn't terribly exciting, the pace of dividend growth certainly is. The dividend has seen 8 consecutive years of increases and annualized growth over the last three of almost 30%. With a payout ratio of 29.3% and earnings growth forecast at 11.5% annually over the next three years, there's plenty of room for increases to keep coming for investors. Fellow Fool Sean Williams, in fact, believes CVS could potentially double those dividend payments.
AbbVie's Humira pothole isn't the end of the road for this great stock
AbbVie has gone basically nowhere all year, up a measly 3%. That's actually great news because it means investors can grab a juicy 4.3% yield on a dividend aristocrat with a great future. Technically, of course, AbbVie is considered an aristocrat only because it spun out of Abbott Laboratories , which had a 40-year dividend growth streak. But since the 2013 spinoff, AbbVie has increased its dividend an impressive 42%. The payment looks extremely safe, with the company's free cash flow payout ratio in 2015 a healthy 49%, which is in line with AbbVie's payout ratios since it was spun off.
Wall Street has made a big deal of the pothole AbbVie faces when biosimilar competition to top-seller Humira comes, and the drug is indeed scheduled to lose key patent protection in the U.S. at the end of this year. While that threat shouldn't be overlooked -- Humira accounted for over 60% of sales in 2015 -- investors should note that AbbVie believes it can successfully protect Humira from competition much longer, based on industry norms and its non-composition of matter patents. These patents cover area such as manufacturing and formulation and do not begin to expire until 2022.
Be that as it may, AbbVie expects to launch over 20 new products by 2020 to achieve $37 billion in sales, which is more than a 60% increase from its 2015 revenue. Meanwhile, AbbVie is a value investor's dream, sporting a low P/E of 16, up against an average pharma sector P/E of 42, and a forward P/E of 13, compared to a sector P/E of 28. There's no guarantee that management will deliver on the pipeline and offset the drop in Humira whenever that time comes. But if you're looking for a stock with above-average growth prospects, a handsome dividend, and one that is dirt cheap, this is the stock for you.
After 20% price decline, Omega Healthcare is a buy
Prefer a high dividend payer? One potential great choice is Real Estate Investment Trust (REIT) Omega Healthcare Investors, a stock that has been smacked in the face every time the Fed and interest rates are in the news. Currently, it pays a dividend of 8.5% and trades at a 30% discount to its 10-year average valuation, making it a solid choice even with interest rates likely going higher. You may want to wait until after the Fed makes a decision in December, but Omega already trades at 8.5 times funds from operation (FFO is the better metric for evaluating REITs) compared to an average of 12.4 times FFO over the last decade. The company has grown its dividend around 10% annually over the last five years. Meanwhile, Omega's current dividend is only around 70% of FFO despite the high yield, which gives it ample coverage and headroom for a further increase. .
In general, I think the market is way too pessimistic about Omega. The company has been successful at growing its FFO per share over the past several years, in part by making savvy acquisitions. At this point, it's well diversified geographically, owning over 950 skilled nursing facilities in 40 states, not to mention last quarter's $114 million acquisition of 10 senior care homes in the U.K. In the U.S., n ursing home operators are being pummeled by fears of reduced reimbursements from Medicare and Medicaid, which intensified after the presidential election. But sheer demographics should more than make up for that. As the chart below shows, population growth for the over-80 group is growing at a torrid pace, meaning demand for these facilities will just keep ramping up.
Honestly, when thinking about cuts to Medicare, I'd also keep in mind how big a voting base the elderly demographic is and how attempts to curb benefits for this group historically go down in flames. Even assuming meaningful cuts happen, that should be balanced against the strong likelihood of reduced government regulation under Republican lawmakers.
In fact, to go just a touch deeper, the nursing facility value-based program President Obama signed into law was aimed at reducing readmissions to nursing homes. That plan is now likely to be set aside, meaning the market bigwigs could have this dead wrong. Omega's long-term picture likely improved with the last election.
Without a doubt, government reimbursement schemes are very complex, and this is the riskiest of these three stocks because no one knows how the Medicare/Medicaid chess game will turn out. But I'm personally comfortable owning Omega, because this company has been playing this governmental reimbursement game for a long time, and it's proven to be a very good player. In addition, management doesn't seem worried, having set full-year guidance at $ 3.38 per share FFO in 2016 and reaffirmed this guidance in the latest conference call. That's up from $3.13 per share in FFO in 2015, meaning growth of about 8 %.
Beat the bigwigs, focus on the big picture
Let's face it. When stocks get battered, most of the time there's a good reason. But sometimes solid, once-beloved companies with a history of delivering great shareholder returns get their prices slashed simply because market fears are overplayed.
I'd put all three of these champs in that category, meaning it's likely only a matter of time before investors fall in love with them again and come back in a strong way. You can take advantage of the great prices they now offer, or you can wait for the market's appetite to return. Just remember that reliable and growing dividend payers like these three don't pay you to sit on the sidelines -- you've got to get in the game first.
10 stocks we like better than CVS Health
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and CVS Health wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of Nov. 7, 2016
Cheryl Swanson owns shares of CVS Health and Omega Healthcare Investors. The Motley Fool recommends CVS Health. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 has made a big deal of the pothole AbbVie faces when biosimilar competition to top-seller Humira comes, and the drug is indeed scheduled to lose key patent protection in the U.S. at the end of this year. Three picks -- CVS Health Corp (NYSE: CVS) , AbbVie Inc . (NYSE: ABBV) , and Omega Healthcare Investors (NYSE: OHI) -- look exceptional right now. | Three picks -- CVS Health Corp (NYSE: CVS) , AbbVie Inc . (NYSE: ABBV) , and Omega Healthcare Investors (NYSE: OHI) -- look exceptional right now. AbbVie's Humira pothole isn't the end of the road for this great stock AbbVie has gone basically nowhere all year, up a measly 3%. | Three picks -- CVS Health Corp (NYSE: CVS) , AbbVie Inc . (NYSE: ABBV) , and Omega Healthcare Investors (NYSE: OHI) -- look exceptional right now. AbbVie's Humira pothole isn't the end of the road for this great stock AbbVie has gone basically nowhere all year, up a measly 3%. | Three picks -- CVS Health Corp (NYSE: CVS) , AbbVie Inc . (NYSE: ABBV) , and Omega Healthcare Investors (NYSE: OHI) -- look exceptional right now. AbbVie's Humira pothole isn't the end of the road for this great stock AbbVie has gone basically nowhere all year, up a measly 3%. |
26354.0 | 2016-12-08 00:00:00 UTC | What Happened to Marijuana Stocks in 2016? | ABBV | https://www.nasdaq.com/articles/what-happened-marijuana-stocks-2016-2016-12-08 | nan | nan | It's been an eventful year for marijuana stocks, with activity led by GW Pharmaceuticals '(NASDAQ: GWPH) and Corbus Pharmaceuticals '(NASDAQ: CRBP) clinical trial data releases and Insys Therapeutics '(NASDAQ: INSY) approval of its first cannabinoid product, Syndros.
Let's take a look back and see what the future holds for marijuana stocks.
Image source: Getty Images.
Last resort epilepsy
There's plenty of empirical evidence from medical marijuana and homemade extracts that cannabidiol (CBD), a compound found in marijuana, can help patients with epilepsy. But GW Pharmaceuticals took the more scientifically rigorous route of running placebo-controlled clinical trials in the hopes of gaining Food and Drug Administration approval for its CBD drug, Epidiolex.
Given the stigma associated with a marijuana-derived drug, GW Pharmaceuticals took the smart route, investigating the use of Epidiolex in children with epilepsy who aren't helped by other drugs. When there aren't any other choices, the stigma isn't really an issue.
This year, GW Pharmaceuticals presented positive clinical trial data in Dravet syndrome, which affect infants, and two trials in patients with Lennox-Gastaut syndrome, which begins in childhood, showing that Epidiolex reduces the seizure rate compared to placebo in both diseases.
GW Pharmaceuticals expects to submit a marketing application for Epidiolex in the first half of next year, which could result in an FDA approval in the second half of 2017 if the drug is given a priority review, a likely scenario given the unmet need.
Rare inflammatory diseases
Corbus Pharmaceuticals isn't ready to apply for FDA approval yet, but results from the phase 2 clinical trial testing its endocannabinoid-mimetic drug Resunab in patients with systemic sclerosis were impressive nonetheless. Resunab was able to reduce the symptoms of systemic sclerosis, an autoimmune disease in which inflammation from the immune system leads to progressively worse fibrosis. Resunab produced a median combined Response Index in diffuse cutaneous Systemic Sclerosis (CRISS) score of 33%, compared to 0% for those taking placebo. A score above 20% is considered clinically meaningful, so Resunab appears to be helping patients, although it should be noted that the clinical trial was fairly small.
Systemic sclerosis affects 90,000 people in the U.S. and Europe, but Corbus has hopes to expand the drug's potential market by showing that Resunab can help patients with other diseases caused by inflammation, including cystic fibrosis, a skin disease called dermatomyositis, and lupus. Data from its phase 2 cystic fibrosis trial are due in the first quarter of next year, so investors won't have to wait too long to see how broad of a population Resunab might work on.
Liquid competition
In July, Insys Therapeutics gained FDA approval for Syndros, a pharmaceutical version of tetrahydrocannabinol (THC) in liquid form to treat weight loss in patients with AIDS, and nausea and vomiting associated with cancer chemotherapy. The drug will compete with AbbVie 's(NYSE: ABBV) well-established Marinol, a capsule version of THC, but Syndros may be able to take market share because nauseous cancer patients may find the liquid form easier to take, and the drug appears to act quicker than the capsule form.
Insys hasn't started selling Syndros yet because it's still waiting for the U.S. Drug Enforcement Administration to schedule the drug. It should launch next year.
Keeping the momentum going
This year was a banner year for marijuana stocks, but 2017 could continue the upward momentum if Corbus can produce more positive clinical trial results for Resunab, GW Pharmaceuticals can glide Epidiolex through an FDA approval, and Insys Therapeutics' launch of Syndros goes well.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The drug will compete with AbbVie 's(NYSE: ABBV) well-established Marinol, a capsule version of THC, but Syndros may be able to take market share because nauseous cancer patients may find the liquid form easier to take, and the drug appears to act quicker than the capsule form. Rare inflammatory diseases Corbus Pharmaceuticals isn't ready to apply for FDA approval yet, but results from the phase 2 clinical trial testing its endocannabinoid-mimetic drug Resunab in patients with systemic sclerosis were impressive nonetheless. Resunab produced a median combined Response Index in diffuse cutaneous Systemic Sclerosis (CRISS) score of 33%, compared to 0% for those taking placebo. | The drug will compete with AbbVie 's(NYSE: ABBV) well-established Marinol, a capsule version of THC, but Syndros may be able to take market share because nauseous cancer patients may find the liquid form easier to take, and the drug appears to act quicker than the capsule form. It's been an eventful year for marijuana stocks, with activity led by GW Pharmaceuticals '(NASDAQ: GWPH) and Corbus Pharmaceuticals '(NASDAQ: CRBP) clinical trial data releases and Insys Therapeutics '(NASDAQ: INSY) approval of its first cannabinoid product, Syndros. Liquid competition In July, Insys Therapeutics gained FDA approval for Syndros, a pharmaceutical version of tetrahydrocannabinol (THC) in liquid form to treat weight loss in patients with AIDS, and nausea and vomiting associated with cancer chemotherapy. | The drug will compete with AbbVie 's(NYSE: ABBV) well-established Marinol, a capsule version of THC, but Syndros may be able to take market share because nauseous cancer patients may find the liquid form easier to take, and the drug appears to act quicker than the capsule form. It's been an eventful year for marijuana stocks, with activity led by GW Pharmaceuticals '(NASDAQ: GWPH) and Corbus Pharmaceuticals '(NASDAQ: CRBP) clinical trial data releases and Insys Therapeutics '(NASDAQ: INSY) approval of its first cannabinoid product, Syndros. Rare inflammatory diseases Corbus Pharmaceuticals isn't ready to apply for FDA approval yet, but results from the phase 2 clinical trial testing its endocannabinoid-mimetic drug Resunab in patients with systemic sclerosis were impressive nonetheless. | The drug will compete with AbbVie 's(NYSE: ABBV) well-established Marinol, a capsule version of THC, but Syndros may be able to take market share because nauseous cancer patients may find the liquid form easier to take, and the drug appears to act quicker than the capsule form. It's been an eventful year for marijuana stocks, with activity led by GW Pharmaceuticals '(NASDAQ: GWPH) and Corbus Pharmaceuticals '(NASDAQ: CRBP) clinical trial data releases and Insys Therapeutics '(NASDAQ: INSY) approval of its first cannabinoid product, Syndros. Rare inflammatory diseases Corbus Pharmaceuticals isn't ready to apply for FDA approval yet, but results from the phase 2 clinical trial testing its endocannabinoid-mimetic drug Resunab in patients with systemic sclerosis were impressive nonetheless. |
26355.0 | 2016-12-07 00:00:00 UTC | AbbVie's Imbruvica Has Favorable Response Rate Among Marginal Zone Lymphoma Patients | ABBV | https://www.nasdaq.com/articles/abbvies-imbruvica-has-favorable-response-rate-among-marginal-zone-lymphoma-patients-2016 | nan | nan | On Dec. 5, AbbVie Inc. ( ABBV ) announced through PR Newswire the results regarding whether ibrutinib (Imbruvica), a type of chemotherapy drug for the treatment of patients suffering from relapsed / refractory marginal zone lymphoma (MZL), is effective and safe.
Marginal zone lymphoma belongs to the family of slow-growing non-Hodgkin's lymphomas. Extranodal MZLs generally occur outside the lymph nodes and involve the mucosa-associated lymphoid tissue of some organs, such as the stomach, the ocular adnexal (eyelid, orbital tissues), gut, salivary glands, bronchial tubes, skin and thyroid. Nodal marginal zone lymphomas involve the lymph nodes direcltly.
The Phase - study's results were announced in San Diego during the Annual Meeting and Exposition of the 58th American Society of Hematology. The study found that treating these patients only with ibrutinib (Imbruvica) produced a significant response rate in roughly half of them.
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The study involved 6' patients affected with marginal zone lymphoma.
The company says that this group of 6' patients "received one or more prior therapies including at least one CD-…-directed regimen (chemo-immunotherapy or rituximab monotherapy)."
The researchers observed some shrinkage of the tumor in fifty patients (79%) and a general response rate of 48%. The median time to the inital response was 4.5 months among those treated.
The company says that these findings suggest "BTK is an important growth and survival factor in Marginal Zone Lymphoma (MZL)."
BTK stands for Bruton's tyrosine kinase and is an enzyme that plays an important role in the development of the B cells, which are lymphocytes, a class of white blood cells. Imbruvica is a BTK inhibitor.
Concerning the data collected by the researchers to assess the safety of the treatment, the company says that they did not diverge from those related to "the known safety profile of ibrutinib in B-cell malignancies."
The most recurrent adverse events (AEs) ranged from grade ' (severe) to grade 4 (life-threatening) and were observed in 6'% of participants. Anaemia, pneumonia and fatigue were the adverse events that recurred the most.
AbbVie is trading at $59.-9, down $-.4' (or -'.94%) from the previous close.
AbbVie has a market capitalization of $96.-9 billion and approximately -.6' billion shares outstanding, of which ….-…% are held by insiders and 7'.6…% are held by institutions. The volume of shares freely traded on the New York Stock Exchange is -.6- billion.
According to current market prices, AbbVie is trading at -4.87 times its book value per share (mrq) and --.47 times its EBITDA.
Most analysts suggest to hold the stock and the average target price is $69.95, up -… cents or ….-9% from yesterday.
NWQ Managers ( Trades , Portfolio ), Joel Greenblatt (Trades, Portfolio), David Dreman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) reduced their positions in AbbVie by 7'.9…%, -4.4'%, 5.5-%, 4-.78% and -.'5%.
Disclosure: I have no positions in AbbVie.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Dec. 5, AbbVie Inc. ( ABBV ) announced through PR Newswire the results regarding whether ibrutinib (Imbruvica), a type of chemotherapy drug for the treatment of patients suffering from relapsed / refractory marginal zone lymphoma (MZL), is effective and safe. AbbVie is trading at $59.-9, down $-.4' (or -'.94%) from the previous close. AbbVie has a market capitalization of $96.-9 billion and approximately -.6' billion shares outstanding, of which ….-…% are held by insiders and 7'.6…% are held by institutions. | NWQ Managers ( Trades , Portfolio ), Joel Greenblatt (Trades, Portfolio), David Dreman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) reduced their positions in AbbVie by 7'.9…%, -4.4'%, 5.5-%, 4-.78% and -.'5%. On Dec. 5, AbbVie Inc. ( ABBV ) announced through PR Newswire the results regarding whether ibrutinib (Imbruvica), a type of chemotherapy drug for the treatment of patients suffering from relapsed / refractory marginal zone lymphoma (MZL), is effective and safe. AbbVie is trading at $59.-9, down $-.4' (or -'.94%) from the previous close. | On Dec. 5, AbbVie Inc. ( ABBV ) announced through PR Newswire the results regarding whether ibrutinib (Imbruvica), a type of chemotherapy drug for the treatment of patients suffering from relapsed / refractory marginal zone lymphoma (MZL), is effective and safe. NWQ Managers ( Trades , Portfolio ), Joel Greenblatt (Trades, Portfolio), David Dreman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) reduced their positions in AbbVie by 7'.9…%, -4.4'%, 5.5-%, 4-.78% and -.'5%. AbbVie is trading at $59.-9, down $-.4' (or -'.94%) from the previous close. | On Dec. 5, AbbVie Inc. ( ABBV ) announced through PR Newswire the results regarding whether ibrutinib (Imbruvica), a type of chemotherapy drug for the treatment of patients suffering from relapsed / refractory marginal zone lymphoma (MZL), is effective and safe. AbbVie is trading at $59.-9, down $-.4' (or -'.94%) from the previous close. AbbVie has a market capitalization of $96.-9 billion and approximately -.6' billion shares outstanding, of which ….-…% are held by insiders and 7'.6…% are held by institutions. |
26356.0 | 2016-12-06 00:00:00 UTC | AbbVie (ABBV) Presents Impressive Imbruvica Data at ASH | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-presents-impressive-imbruvica-data-at-ash-2016-12-06 | nan | nan | AbbVie Inc.ABBV and partner Janssen, Johnson & Johnson's JNJ pharmaceuticals subsidiary, presented encouraging results on their cancer drug Imbruvica at the annual meeting of the American Society of Hematology (ASH).
AbbVie's share price has risen 3.3% in the past one month, comparing favorably with a decline of 1.3% for the Zacks classified Large-Cap Pharma industry.
Data from a phase II study (n=63) showed that nearly half of the patients with relapsed/refractory marginal zone lymphoma (MZL) had a complete or partial response when treated with the company's hematological cancer drug Imbruvica. In the study, 79% of patients experienced some tumor reduction and overall response rates (ORR) was 48%. Safety data from the study was consistent with previous Imbruvica studies.
We remind investors that AbbVie submitted a supplemental New Drug Application (sNDA) for a label expansion of Imbruvica to include the treatment of MZL in September.
Imbruvica became part of AbbVie's portfolio following the Pharmacyclics acquisition last March.
Imbruvica is presently approved for quite a few indications. The drug is currently approved in the U.S. for the treatment of mantle cell lymphoma (MCL) or chronic lymphocytic leukemia (CLL) patients, who have received at least one previous therapy and for CLL patients with deletion 17p. It is also approved for the treatment of Waldenstrom's macroglobulinemia.
Imbruvica has multi-billion dollar potential and AbbVie is exploring the potential to expand its label into solid tumors and autoimmune diseases. Imbruvica is in phase III studies for diffuse large B-cell lymphoma and follicular lymphoma. AbbVie is positioning Imbruvica as a "pipeline in a molecule" with the treatment featuring in several company-sponsored studies. A registrational study for graft versus host disease (GVHD) is also underway.
In separate press releases, AbbVie announced five-year cancer-research collaborations with Johns Hopkins University School of Medicine and Northwestern University's Lurie Cancer Center.
AbbVie carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
ABBVIE INC Price and Consensus
ABBVIE INC Price and Consensus | ABBVIE INC Quote
AbbVie's key drug Humira has been performing well. However, quite a few companies are working on bringing Humira biosimilars to the market. Amgen, Inc.'s AMGN Humira biosimilar Amjevita received FDA approval in Sep 2016. Momenta Pharmaceuticals Inc.'s MNTA biosimilar version of Humira, M923, is in a phase III study.
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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 share price has risen 3.3% in the past one month, comparing favorably with a decline of 1.3% for the Zacks classified Large-Cap Pharma industry. We remind investors that AbbVie submitted a supplemental New Drug Application (sNDA) for a label expansion of Imbruvica to include the treatment of MZL in September. AbbVie Inc.ABBV and partner Janssen, Johnson & Johnson's JNJ pharmaceuticals subsidiary, presented encouraging results on their cancer drug Imbruvica at the annual meeting of the American Society of Hematology (ASH). | ABBVIE INC Price and Consensus ABBVIE INC Price and Consensus | ABBVIE INC Quote AbbVie's key drug Humira has been performing well. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MOMENTA PHARMA (MNTA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV and partner Janssen, Johnson & Johnson's JNJ pharmaceuticals subsidiary, presented encouraging results on their cancer drug Imbruvica at the annual meeting of the American Society of Hematology (ASH). | ABBVIE INC Price and Consensus ABBVIE INC Price and Consensus | ABBVIE INC Quote AbbVie's key drug Humira has been performing well. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MOMENTA PHARMA (MNTA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV and partner Janssen, Johnson & Johnson's JNJ pharmaceuticals subsidiary, presented encouraging results on their cancer drug Imbruvica at the annual meeting of the American Society of Hematology (ASH). | AbbVie Inc.ABBV and partner Janssen, Johnson & Johnson's JNJ pharmaceuticals subsidiary, presented encouraging results on their cancer drug Imbruvica at the annual meeting of the American Society of Hematology (ASH). AbbVie's share price has risen 3.3% in the past one month, comparing favorably with a decline of 1.3% for the Zacks classified Large-Cap Pharma industry. We remind investors that AbbVie submitted a supplemental New Drug Application (sNDA) for a label expansion of Imbruvica to include the treatment of MZL in September. |
26357.0 | 2016-12-01 00:00:00 UTC | Notable ETF Inflow Detected - IUSG, GOOG, ABBV, BMY | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-iusg-goog-abbv-bmy-2016-12-01 | 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 Russell U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $61.7 million dollar inflow -- that's a 5.9% increase week over week in outstanding units (from 24,550,000 to 26,000,000). Among the largest underlying components of IUSG, in trading today Alphabet Inc (Symbol: GOOG) is off about 1.4%, AbbVie Inc. (Symbol: ABBV) is down about 1.4%, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 1.2%. 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 $35.40 per share, with $43.19 as the 52 week high point - that compares with a last trade of $42.38. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Alphabet Inc (Symbol: GOOG) is off about 1.4%, AbbVie Inc. (Symbol: ABBV) is down about 1.4%, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 1.2%. 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 $35.40 per share, with $43.19 as the 52 week high point - that compares with a last trade of $42.38. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IUSG, in trading today Alphabet Inc (Symbol: GOOG) is off about 1.4%, AbbVie Inc. (Symbol: ABBV) is down about 1.4%, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 1.2%. 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 $35.40 per share, with $43.19 as the 52 week high point - that compares with a last trade of $42.38. 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 Alphabet Inc (Symbol: GOOG) is off about 1.4%, AbbVie Inc. (Symbol: ABBV) is down about 1.4%, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core Russell U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $61.7 million dollar inflow -- that's a 5.9% increase week over week in outstanding units (from 24,550,000 to 26,000,000). 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 $35.40 per share, with $43.19 as the 52 week high point - that compares with a last trade of $42.38. | Among the largest underlying components of IUSG, in trading today Alphabet Inc (Symbol: GOOG) is off about 1.4%, AbbVie Inc. (Symbol: ABBV) is down about 1.4%, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core Russell U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $61.7 million dollar inflow -- that's a 5.9% increase week over week in outstanding units (from 24,550,000 to 26,000,000). 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 $35.40 per share, with $43.19 as the 52 week high point - that compares with a last trade of $42.38. |
26358.0 | 2016-12-01 00:00:00 UTC | AbbVie Crohn's Disease Drug Gets Orphan Drug Status in U.S. | ABBV | https://www.nasdaq.com/articles/abbvie-crohns-disease-drug-gets-orphan-drug-status-in-u.s.-2016-12-01 | nan | nan | AbbVie Inc.ABBV announced that the FDA has granted Orphan Drug Designation to its investigational IL-23 inhibitor, risankizumab (ABBV-066; formerly BI 655066), for the treatment of Crohn's disease in pediatric patients.
Note that AbbVie's share price has gained 9.0% in the past one month which fared better than a 0.3% decline for the Zacks classified Large Cap Pharma industry.
We remind investors that in Mar 2016, AbbVie and Boehringer Ingelheim announced a collaboration agreement under which the former will be responsible for the development and commercialization of risankizumab globally. However, in Apr 2016, AbbVie acquired all rights to risankizumab under this collaboration agreement.
Apart from being studied in phase II for Crohn's disease, risankizumab is being evaluated for immunological disorders including psoriasis, psoriatic arthritis and asthma.
The company is conducting a phase III study on the candidate for psoriasis and a phase II trial for psoriatic arthritis. Data from these trials are expected in 2017.
Upon successful development and subsequent approval, risankizumab will serve a high-potential but competitive market that is crowded by other drugs like Stelara, Cosentyx and Enbrel.
AbbVie has a deep pipeline consisting of several interesting late-stage candidates including elagolix (uterine fibroids), atrasentan (chronic kidney disease), veliparib (triple-negative breast cancer and previously treated squamous NSCLC) and ABT-494 (Crohn's disease and ulcerative colitis).
Meanwhile, AbbVie's recent approvals include Duopa (advanced Parkinson's disease) in 2014 in the U.S., Empliciti (multiple myeloma) in Nov 2015 in the U.S. and Zinbryta (relapsing remitting multiple sclerosis) in late May 2016 in the U.S. and in Jul 2016 in Europe. The company expects to advance several immuno-oncology candidates into development in 2017.
ABBVIE INC Price
ABBVIE INC Price | ABBVIE INC Quote
Zacks Rank & Key Picks
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Heska Corporation HSKA , Cambrex Corporation CBM and Vanda Pharmaceuticals, Inc. VNDA . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Heska's earnings estimates have increased from $1.13 to $1.35 for 2016 and from $1.38 to $1.53 for 2017 over the last 60 days. The company has posted a positive earnings surprise in all of the four trailing quarters with an average beat of 301.64%. Its share price has increased 70.9% year to date.
Cambrex's earnings estimates increased from $2.46 to $2.55 for 2016 and from $2.91 to $3.06 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 19.78%. Its share price has increased 6.4% year to date.
Vanda's loss estimates have narrowed from 68 cents to 56 cents for 2016 while its earnings estimates have increased from 16 cents to 17 cents for 2017 over the last 60 days. The company has posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price surged 76.7% 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. | AbbVie Inc.ABBV announced that the FDA has granted Orphan Drug Designation to its investigational IL-23 inhibitor, risankizumab (ABBV-066; formerly BI 655066), for the treatment of Crohn's disease in pediatric patients. Note that AbbVie's share price has gained 9.0% in the past one month which fared better than a 0.3% decline for the Zacks classified Large Cap Pharma industry. We remind investors that in Mar 2016, AbbVie and Boehringer Ingelheim announced a collaboration agreement under which the former will be responsible for the development and commercialization of risankizumab globally. | ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report CAMBREX CORP (CBM): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that the FDA has granted Orphan Drug Designation to its investigational IL-23 inhibitor, risankizumab (ABBV-066; formerly BI 655066), for the treatment of Crohn's disease in pediatric patients. | ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). Click to get this free report CAMBREX CORP (CBM): Free Stock Analysis Report HESKA CORP (HSKA): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that the FDA has granted Orphan Drug Designation to its investigational IL-23 inhibitor, risankizumab (ABBV-066; formerly BI 655066), for the treatment of Crohn's disease in pediatric patients. | ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc.ABBV announced that the FDA has granted Orphan Drug Designation to its investigational IL-23 inhibitor, risankizumab (ABBV-066; formerly BI 655066), for the treatment of Crohn's disease in pediatric patients. Note that AbbVie's share price has gained 9.0% in the past one month which fared better than a 0.3% decline for the Zacks classified Large Cap Pharma industry. |
26359.0 | 2016-11-30 00:00:00 UTC | Momenta/Shire's Humira Biosimilar Meets Study Objective | ABBV | https://www.nasdaq.com/articles/momenta-shires-humira-biosimilar-meets-study-objective-2016-11-30 | nan | nan | Momenta Pharmaceuticals, Inc.MNTA announced positive data from a confirmatory phase III study on its biosimilar candidate, M923. Shares inched up 1.1% on the news.
The company's share price has gained 28.9% ever since the company released its third-quarter results on Nov 2. The share price rally was even better than the Zacks classified Medical-Biomed/Genetics market of 9.1%.
M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab), is being developed for the treatment of patients with moderate-to-severe chronic plaque psoriasis.
The study evaluated the safety, efficacy and immunogenicity of M923 in adult patients with moderate-to-severe chronic plaque psoriasis, who received M923, Humira or Humira alternating with M923 for up to 48 weeks.
Results demonstrated that the proportion of patients who met the primary endpoint was equivalent on the M923 and Humira arm. The primary endpoint was at least 75% reduction on an index of psoriasis severity, following 16 weeks of treatment.
Momenta expects to present full data from this study at future conferences and in publications.
Humira is approved for the treatment of autoimmune/inflammatory diseases including rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis and plaque psoriasis. In the first nine months of 2016, Humira raked in worldwide sales of $11.8 billion, up 14.6%.
Note that in September, Amgen Inc.'s AMGN biosimilar version of Humira, Amjevita, was approved in the U.S. for the same indications as the reference product. Amjevita is the first biosimilar version of Humira to be approved by the FDA. However, Amgen is unlikely to launch Amjevita in 2017 due to the ongoing litigation with AbbVie.
We remind investors that Momenta had a collaboration agreement with Shire plc's SHPG Baxalta for the development and commercialization of M923. However, in Sep 2016, Shire exercised its right to terminate their collaboration agreement and is currently in the process of transitioning M923 to Momenta.
MOMENTA PHARMA Price
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Momenta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab), is being developed for the treatment of patients with moderate-to-severe chronic plaque psoriasis. However, Amgen is unlikely to launch Amjevita in 2017 due to the ongoing litigation with AbbVie. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report MOMENTA PHARMA (MNTA): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab), is being developed for the treatment of patients with moderate-to-severe chronic plaque psoriasis. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report MOMENTA PHARMA (MNTA): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. However, Amgen is unlikely to launch Amjevita in 2017 due to the ongoing litigation with AbbVie. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report MOMENTA PHARMA (MNTA): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab), is being developed for the treatment of patients with moderate-to-severe chronic plaque psoriasis. However, Amgen is unlikely to launch Amjevita in 2017 due to the ongoing litigation with AbbVie. | M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab), is being developed for the treatment of patients with moderate-to-severe chronic plaque psoriasis. However, Amgen is unlikely to launch Amjevita in 2017 due to the ongoing litigation with AbbVie. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report MOMENTA PHARMA (MNTA): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26360.0 | 2016-11-30 00:00:00 UTC | Why the $324 Billion Bioeconomy Deserves a Place in Your Portfolio | ABBV | https://www.nasdaq.com/articles/why-324-billion-bioeconomy-deserves-place-your-portfolio-2016-11-30 | nan | nan | It's a question that has been and always will be asked: What's the best way to keep the U.S. economy humming along? Investing in clean energy, lowering taxes, boosting the minimum wage, lowering repatriation taxes so corporations can move cash piles stored overseas back to the United States -- these ideas and many others have been presented and debated as ways to encourage economic growth. While each has merit in its own right, a new analysis of economic data suggests we're overlooking one crucial aspect of the American growth machine: the bioeconomy.
That's one way to interpret a report published by Dr. Rob Carlson, author of Biology Is Technology , namesake of the Carlson Curve , and managing director of the (aptly named) investment firm Bioeconomy Capital. He's been advocating for the government to officially track economic contributions from biotech -- "the bioeconomy" -- the importance of which is masked by attributing its value to broader categories. For instance, the government's economists make no distinctionbetween sales of biopharmaceuticals and synthetically manufactured pharmaceuticals, while biochemicals are counted alongside petrochemicals.
It's not just a plea for better organization. Words matter. Consider that, when counted as a unique sector, the bioeconomy accounted for at least $324 billion of American GDP in 2012, or more than 2% of the entire economy, and maintained an average annual growth rate exceeding 10% in the prior decade. The relatively tiny sector has grown so quickly that it accounted for more than 5% of the country's total GDP growth every year since 2007. It will demand the nation's attention regardless of whether we see it coming or not.
It seems highly possible that Carlson is ahead of the curve. His analysis lays an important framework for how we might begin to track these contributions at a national level, and presents questions, some unanswered, about how we might define and calculate value in a bioeconomy. While the macro trends hint at budding long-term opportunities for individual investors, narrowing the focus to the three broad components of the bioeconomy provides more direction for investors -- with AbbVie (NYSE: ABBV) , Archer Daniels Midland (NYSE: ADM) , and Monsanto (NYSE: MON) serving as timely examples.
What is included in the bioeconomy?
Carlson defines the bioeconomy as all revenue generated from three biotech subsectors:
Biological drugs (what people typically think of when they hear or say the word "biotech")
Industrial products
Biotech crops and seeds
While that definition encompasses a seemingly broad swath of products, it's based on value created from genetically modified (GM) organisms. In fact, Carlson calls it GM domestic products, or GMDP.
So how do these subsectors stack up? Here's the breakdown of the $324 billion bioeconomy in 2012, according to Carlson's estimates.
Image source: Biodesic .
It's important to note that Carlson has made conservative estimates wherever possible. For instance, the analysis says biologics delivered $91 billion in revenue to the American economy in 2012, although broader estimates that include drugs produced from non-GM organisms are nearly twice as high. There's also some calculus involved for determining biofuels revenue (which excludes revenue from the GM corn fed into the process) and the value delivered by GM crops (which provide insect protection for non-GM crops nearby).
You can read the full report for the full details, but let's now consider how you can take advantage of opportunities in the bioeconomy.
How can your portfolio capitalize?
Biologics, industrial products, and biotech crops powered the industry to this point and should continue to provide the largest sources of growth for the foreseeable future. The future of biologics -- and biotech's overall contribution to healthcare -- looks particularly bright. The past two decades have been driven by the success of new autoimmune treatments such as AbbVie's Humira, which notched sales (mostly in the United States) of $9.26 billion in 2012. That figure soared past $14 billion in 2015, thanks in no small part to the drug's gaining approval to treat 10 diseases in the United States. The growth could soon be over for AbbVie as Humira begins losing patent protections and generic biologics arrive on the market, but it opened the door for new biology-based medications now on the market or in the industry's pipeline.
Industrial products may see the fastest growth and largest overall ceiling of the three subsectors. One company to watch in industrial biotechnology, or growing products from tiny microbial factories in large fermenters, is agricultural raw materials processor Archer Daniels Midland. A vast supply network and access to cheap feedstocks have allowed it to become one of the nation's largest ethanol producers, but it has also been one of the largest investors in industrial biotech platforms. To date, Archer Daniels Midland has invested in microalgae producing oil-drilling lubricants for the fracking industry, microalgae producing omega3 fat for fish and animal feed, and an organism-engineering platform aimed at producing food ingredients for human consumption.
The final category, GM crops and seeds, is also the largest of the three by Carlson's estimates. The first company that likely comes to mind is Monsanto, which has played an instrumental role in bringing biotech to agricultural markets. The company is a leading producer of corn, soybeans, and cotton seeds. GM varieties from all seed suppliers represented 88%, 93%, and 94% market penetration, respectively, on American farms in 2012. The high levels of saturation could explain the subsector's relatively slower growth rate, but there is plenty of room left for value-creating innovation. For instance, Monsanto is also a technology leader for next-generation agricultural platforms, including digital agriculture and yield-boosting seeds coated in soil microbes.
Zooming back out, it's fascinating to consider the broader markets that AbbVie, Archer Daniels Midland, and Monsanto live within. Moreover, individual investors don't need to get bogged down in the details to see the incredible growth of the bioeconomy:
Image source: Biodesic .
You can see from that graph that the data aren't always readily available, a point that becomes abundantly clear if you read the full report. Given the growing importance of biotech to the American economy, it's worth wondering aloud why we don't make an attempt to track these data at a national level.
What does it mean for investors?
You may not think that 2% of the overall economy sounds like much, but a contribution of $324 billion in 2012 was more than what was brought in by other sectors, such as mining and utilities, that figure more prominently into policy discussions. And that's just the beginning. In terms of economic contribution, the bioeconomy could eclipse important sectors including construction and the federal government by 2020, and could be one of a handful of sectors to contribute more than $1 trillion to GDP by 2025, if average annual growth rates are maintained. The law of large numbers says that will be difficult to do. Then again, if one considers that we're not even scratching the surface of what's possible with biology, it may not be a far-fetched scenario. Will your portfolio be structured to take advantage of the trend?
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Maxx Chatsko has no position in any stocks mentioned. Follow him on Twitter to keep up with developments in engineered biology and materials science.
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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. | While the macro trends hint at budding long-term opportunities for individual investors, narrowing the focus to the three broad components of the bioeconomy provides more direction for investors -- with AbbVie (NYSE: ABBV) , Archer Daniels Midland (NYSE: ADM) , and Monsanto (NYSE: MON) serving as timely examples. The past two decades have been driven by the success of new autoimmune treatments such as AbbVie's Humira, which notched sales (mostly in the United States) of $9.26 billion in 2012. The growth could soon be over for AbbVie as Humira begins losing patent protections and generic biologics arrive on the market, but it opened the door for new biology-based medications now on the market or in the industry's pipeline. | While the macro trends hint at budding long-term opportunities for individual investors, narrowing the focus to the three broad components of the bioeconomy provides more direction for investors -- with AbbVie (NYSE: ABBV) , Archer Daniels Midland (NYSE: ADM) , and Monsanto (NYSE: MON) serving as timely examples. The past two decades have been driven by the success of new autoimmune treatments such as AbbVie's Humira, which notched sales (mostly in the United States) of $9.26 billion in 2012. The growth could soon be over for AbbVie as Humira begins losing patent protections and generic biologics arrive on the market, but it opened the door for new biology-based medications now on the market or in the industry's pipeline. | While the macro trends hint at budding long-term opportunities for individual investors, narrowing the focus to the three broad components of the bioeconomy provides more direction for investors -- with AbbVie (NYSE: ABBV) , Archer Daniels Midland (NYSE: ADM) , and Monsanto (NYSE: MON) serving as timely examples. The past two decades have been driven by the success of new autoimmune treatments such as AbbVie's Humira, which notched sales (mostly in the United States) of $9.26 billion in 2012. The growth could soon be over for AbbVie as Humira begins losing patent protections and generic biologics arrive on the market, but it opened the door for new biology-based medications now on the market or in the industry's pipeline. | While the macro trends hint at budding long-term opportunities for individual investors, narrowing the focus to the three broad components of the bioeconomy provides more direction for investors -- with AbbVie (NYSE: ABBV) , Archer Daniels Midland (NYSE: ADM) , and Monsanto (NYSE: MON) serving as timely examples. The past two decades have been driven by the success of new autoimmune treatments such as AbbVie's Humira, which notched sales (mostly in the United States) of $9.26 billion in 2012. The growth could soon be over for AbbVie as Humira begins losing patent protections and generic biologics arrive on the market, but it opened the door for new biology-based medications now on the market or in the industry's pipeline. |
26361.0 | 2016-11-29 00:00:00 UTC | After Hours Most Active for Nov 29, 2016 : YHOO, GE, CHK, MDRX, CSCO, XLNX, SWNC, ABUS, TMUSP, ABBV, TSM, FCAM | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-nov-29-2016-yhoo-ge-chk-mdrx-csco-xlnx-swnc-abus-tmusp-abbv-tsm | nan | nan | The NASDAQ 100 After Hours Indicator is up .68 to 4,873.89. The total After hours volume is currently 42,152,437 shares traded.
The following are the most active stocks for the after hours session :
Yahoo! Inc. ( YHOO ) is unchanged at $41.60, with 5,253,824 shares traded. YHOO's current last sale is 94.55% of the target price of $44.
General Electric Company ( GE ) is unchanged at $31.05, with 3,483,058 shares traded. GE's current last sale is 91.32% of the target price of $34.
Chesapeake Energy Corporation ( CHK ) is -0.02 at $6.35, with 2,246,426 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $0.08. CHK's current last sale is 105.83% of the target price of $6.
Allscripts Healthcare Solutions, Inc. ( MDRX ) is +0.1584 at $11.11, with 2,136,187 shares traded. MDRX's current last sale is 74.06% of the target price of $15.
Cisco Systems, Inc. ( CSCO ) is unchanged at $29.83, with 2,063,425 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Xilinx, Inc. ( XLNX ) is unchanged at $54.01, with 1,967,694 shares traded. XLNX's current last sale is 108.02% of the target price of $50.
Southwestern Energy Company ( SWNC ) is unchanged at $28.02, with 1,786,200 shares traded.
Arbutus Biopharma Corporation ( ABUS ) is unchanged at $2.65, with 1,712,000 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $-0.35. As reported in the last short interest update the days to cover for ABUS is 9.08212; this calculation is based on the average trading volume of the stock.
T-Mobile US, Inc. ( TMUSP ) is unchanged at $91.11, with 1,500,000 shares traded.TMUSP has a $2.75000000cash dividend with an Ex/Eff Date of11/29/2016
AbbVie Inc. ( ABBV ) is unchanged at $61.59, with 1,381,118 shares traded. ABBV's current last sale is 87.99% of the target price of $70.
Taiwan Semiconductor Manufacturing Company Ltd. ( TSM ) is unchanged at $29.55, with 722,199 shares traded. TSM's current last sale is 96.24% of the target price of $30.705.
Fiat Chrysler Automobiles N.V. ( FCAM ) is +0.083 at $64.54, with 712,810 shares traded.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. T-Mobile US, Inc. ( TMUSP ) is unchanged at $91.11, with 1,500,000 shares traded.TMUSP has a $2.75000000cash dividend with an Ex/Eff Date of11/29/2016 AbbVie Inc. ( ABBV ) is unchanged at $61.59, with 1,381,118 shares traded. ABBV's current last sale is 87.99% of the target price of $70. | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. T-Mobile US, Inc. ( TMUSP ) is unchanged at $91.11, with 1,500,000 shares traded.TMUSP has a $2.75000000cash dividend with an Ex/Eff Date of11/29/2016 AbbVie Inc. ( ABBV ) is unchanged at $61.59, with 1,381,118 shares traded. ABBV's current last sale is 87.99% of the target price of $70. | T-Mobile US, Inc. ( TMUSP ) is unchanged at $91.11, with 1,500,000 shares traded.TMUSP has a $2.75000000cash dividend with an Ex/Eff Date of11/29/2016 AbbVie Inc. ( ABBV ) is unchanged at $61.59, with 1,381,118 shares traded. ABBV's current last sale is 87.99% of the target price of $70. Inc. ( YHOO ) is unchanged at $41.60, with 5,253,824 shares traded. | T-Mobile US, Inc. ( TMUSP ) is unchanged at $91.11, with 1,500,000 shares traded.TMUSP has a $2.75000000cash dividend with an Ex/Eff Date of11/29/2016 AbbVie Inc. ( ABBV ) is unchanged at $61.59, with 1,381,118 shares traded. ABBV's current last sale is 87.99% of the target price of $70. The NASDAQ 100 After Hours Indicator is up .68 to 4,873.89. |
26362.0 | 2016-11-28 00:00:00 UTC | We Did The Math MGK Can Go To $98 | ABBV | https://www.nasdaq.com/articles/we-did-math-mgk-can-go-98-2016-11-28 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Mega Cap Growth ETF (Symbol: MGK), we found that the implied analyst target price for the ETF based upon its underlying holdings is $98.38 per unit.
With MGK trading at a recent price near $87.16 per unit, that means that analysts see 12.87% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MGK's underlying holdings with notable upside to their analyst target prices are General Growth Properties Inc (Symbol: GGP), American Tower Corp (Symbol: AMT), and AbbVie Inc. (Symbol: ABBV). Although GGP has traded at a recent price of $25.43/share, the average analyst target is 27.44% higher at $32.41/share. Similarly, AMT has 23.10% upside from the recent share price of $107.30 if the average analyst target price of $132.08/share is reached, and analysts on average are expecting ABBV to reach a target price of $74.08/share, which is 22.43% above the recent price of $60.51. Below is a twelve month price history chart comparing the stock performance of GGP, AMT, and ABBV:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of GGP, AMT, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGK's underlying holdings with notable upside to their analyst target prices are General Growth Properties Inc (Symbol: GGP), American Tower Corp (Symbol: AMT), and AbbVie Inc. (Symbol: ABBV). Similarly, AMT has 23.10% upside from the recent share price of $107.30 if the average analyst target price of $132.08/share is reached, and analysts on average are expecting ABBV to reach a target price of $74.08/share, which is 22.43% above the recent price of $60.51. | Three of MGK's underlying holdings with notable upside to their analyst target prices are General Growth Properties Inc (Symbol: GGP), American Tower Corp (Symbol: AMT), and AbbVie Inc. (Symbol: ABBV). Similarly, AMT has 23.10% upside from the recent share price of $107.30 if the average analyst target price of $132.08/share is reached, and analysts on average are expecting ABBV to reach a target price of $74.08/share, which is 22.43% above the recent price of $60.51. Below is a twelve month price history chart comparing the stock performance of GGP, AMT, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, AMT has 23.10% upside from the recent share price of $107.30 if the average analyst target price of $132.08/share is reached, and analysts on average are expecting ABBV to reach a target price of $74.08/share, which is 22.43% above the recent price of $60.51. Below is a twelve month price history chart comparing the stock performance of GGP, AMT, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGK's underlying holdings with notable upside to their analyst target prices are General Growth Properties Inc (Symbol: GGP), American Tower Corp (Symbol: AMT), and AbbVie Inc. (Symbol: ABBV). | Below is a twelve month price history chart comparing the stock performance of GGP, AMT, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGK's underlying holdings with notable upside to their analyst target prices are General Growth Properties Inc (Symbol: GGP), American Tower Corp (Symbol: AMT), and AbbVie Inc. (Symbol: ABBV). Similarly, AMT has 23.10% upside from the recent share price of $107.30 if the average analyst target price of $132.08/share is reached, and analysts on average are expecting ABBV to reach a target price of $74.08/share, which is 22.43% above the recent price of $60.51. |
26363.0 | 2016-11-23 00:00:00 UTC | Galapagos (GLPG) Filgotinib in Phase III for Crohn's Disease | ABBV | https://www.nasdaq.com/articles/galapagos-glpg-filgotinib-in-phase-iii-for-crohns-disease-2016-11-23 | nan | nan | Galapagos NVGLPG announced that it has dosed the first patient in a phase III study - DIVERSITY - on filgotinib for the treatment of Crohn's disease. This triggered a milestone payment worth $50 million from Gilead Sciences Inc. GILD .
The study will evaluate the safety and efficacy of once-daily filgotinib (100 mg and 200 mg), compared to placebo, in patients with moderately-to-severely active Crohn's disease, including those who failed previous biological therapy.
We remind investors that in Dec 2015, Galapagos signed a collaboration agreement with Gilead for the development and commercialization of filgotinib for inflammatory indications including rheumatoid arthritis (RA), Crohn's disease and ulcerative colitis.
In Aug 2016, Gilead initiated a phase III program (FINCH) on filgotinib in RA. The FINCH program comprises three studies that will evaluate the safety and efficacy of once-daily filgotinib (100 mg and 200 mg) in patients from early stage to biologic-experienced.
Moreover, Gilead expects to start a phase II/III study for the treatment of ulcerative colitis later in the quarter.
Meanwhile, Galapagos continues to progress on its cystic fibrosis programs, with partner AbbVie Inc. ABBV conducting several phase I and II studies.
Going forward, we expect investor focus to remain on further pipeline updates from the company.
GALAPAGOS -ADR Price
GALAPAGOS -ADR Price | GALAPAGOS -ADR Quote
Currently, Galapagos carries a Zacks Rank #3 (Hold).
Stock to Consider
Vanda Pharmaceuticals, Inc. VNDA is a better-ranked stock in the health care sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Vanda's loss estimates narrowed from 68 cents per share to 56 cents for 2016 over the last 60 days, while its earnings estimates increased from 16 cents per share to 17 cents for 2017. The company posted a positive earnings surprise in three of the last four quarters with an average beat of 56.65%. Its share price has surged 80% 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. | Meanwhile, Galapagos continues to progress on its cystic fibrosis programs, with partner AbbVie Inc. ABBV conducting several phase I and II studies. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Galapagos NVGLPG announced that it has dosed the first patient in a phase III study - DIVERSITY - on filgotinib for the treatment of Crohn's disease. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Galapagos continues to progress on its cystic fibrosis programs, with partner AbbVie Inc. ABBV conducting several phase I and II studies. The FINCH program comprises three studies that will evaluate the safety and efficacy of once-daily filgotinib (100 mg and 200 mg) in patients from early stage to biologic-experienced. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Galapagos continues to progress on its cystic fibrosis programs, with partner AbbVie Inc. ABBV conducting several phase I and II studies. GALAPAGOS -ADR Price GALAPAGOS -ADR Price | GALAPAGOS -ADR Quote Currently, Galapagos carries a Zacks Rank #3 (Hold). | Meanwhile, Galapagos continues to progress on its cystic fibrosis programs, with partner AbbVie Inc. ABBV conducting several phase I and II studies. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Galapagos NVGLPG announced that it has dosed the first patient in a phase III study - DIVERSITY - on filgotinib for the treatment of Crohn's disease. |
26364.0 | 2016-11-22 00:00:00 UTC | Enanta Pharmaceuticals Releases Results | ABBV | https://www.nasdaq.com/articles/enanta-pharmaceuticals-releases-results-2016-11-22 | nan | nan | Enanta Pharmaceuticals Inc. ( ENTA ), a collaboration partner of AbbVie ( ABBV ), reported its fourth-quarter and full-year -…-6 financial results.
In the fourth quarter, the biotechnology company reported revenue of $--.8 million, an --.--% decrease from the same quarter of the previous year. The company missed analyst expectations on revenue by $….4 million.
For the fourth quarter of -…-6, analysts estimated Enanta would report revenue of $-'.-' million, down 8.-…% from the same quarter of the prior year. The estimate ranged from a low of $--.…7 million and a high of $-5 million.
Warren Buffett Recent Buys
Source: Yahoo Finance
Concerning the income of the period, the biotechnology company reported a net loss of $-.8 million, a -'-.…'% decrease from the same quarter of -…-5.
In the fourth quarter, the loss per diluted common share was nine cents, compared to net income per diluted common share of -9 cents the company reported in the fourth quarter of -…-5.
Enanta Pharmaceuticals beat analyst expectations on earnings by five cents. For the quarter, analysts expected the company would report a net loss per diluted common share of -4 cents.
Source: Yahoo Finance
Concerning full-year results, Enanta reported a 45.--% decrease in revenues and a 7-.5'% decrease in the bottom line.
Revenue was $88.' million versus revenue of $-6….9 million reported by the company in -…-5. The net income was $--.7 million (or $-.-' per share) versus a net income of $79 million (or $4.…9 per share) reported by the company in -…-5.
The company says that the decrease in revenue in -…-6 was due to a 76% decrease in milestone payments. In -…-6, Enanta Pharmaceuticals realized $'… million versus $--5 million received in -…-5 for collaborations with AbbVie.
The increase in royalty revenue of $-'.6 could only counteract the decrease in sales due to less payments received from AbbVie.
The company says that "due to increased pre-clinical and clinical costs associated with the progression of Enanta's wholly-owned R&D programs in HCV cyclophilin, non-alcoholic steatohepatitis ( NASH ), respiratory syncytial virus (RSV) and hepatitis B virus (HBV)," research and development expenses were higher in the fourth quarter of -…-6 (up 64% on a year over year basis) and the full year of -…-6 (up 74% on a year over year basis).
As of the fourth quarter, the company had $-4-.- million in cash on hand and securities to be converted into cash. The company says "that its current cash, cash equivalents and marketable securities will be sufficient to meet the anticipated cash requirements of its existing business for the foreseeable future."
In -…-6, Enanta Pharmaceuticals made significant strides in advancing its pipeline:
The farnesoid X receptor ( FXR ) is a receptor for bile acids in the gut and liver. It plays a role in the regulation of cholesterol, levels of liver triglycerides and balancing gut fluids. NASH stands for nonalcoholic steatohepatitis, which resembles alcoholic liver disease but occurs in people who drink little or no alcohol. HBV stands for hepatities B virus and RSV stands for human respiratory syncytial virus.
On Nov. --, Enanta Pharmaceuticals Inc. closed at $'….…7 per share, up seven cents (….-'%) from the previous trading day with a volume of --8,8…… shares traded on the Nasdaq.
The 5--week range is between $-….'9 per share and $'4.49 per share.
The stock is less volatile than the stock market (beta = ….6-).
Enanta Pharmaceuticals has a market capitalization of $57-.4- million and -9.…4 million shares outstanding. The percentage of shares held by insiders is -4.7% and institutional ownership is 78.4…%.
The number of shares available for trading is -4.…4 million. The price-earnings (P/E) ratio is -9.89 and the EPS ( TTM ) is $-.5-.
The company has approximately $--8.5 million of cash on hand ($--.48 per share). The total debt (mrq) is $7…7,……… and the book value per Share (mrq) is $-4.-'.
Disclosure: I have no positions in Enanta Pharmaceuticals or AbbVie 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Enanta Pharmaceuticals Inc. ( ENTA ), a collaboration partner of AbbVie ( ABBV ), reported its fourth-quarter and full-year -…-6 financial results. In -…-6, Enanta Pharmaceuticals realized $'… million versus $--5 million received in -…-5 for collaborations with AbbVie. The increase in royalty revenue of $-'.6 could only counteract the decrease in sales due to less payments received from AbbVie. | Enanta Pharmaceuticals Inc. ( ENTA ), a collaboration partner of AbbVie ( ABBV ), reported its fourth-quarter and full-year -…-6 financial results. In -…-6, Enanta Pharmaceuticals realized $'… million versus $--5 million received in -…-5 for collaborations with AbbVie. The increase in royalty revenue of $-'.6 could only counteract the decrease in sales due to less payments received from AbbVie. | Enanta Pharmaceuticals Inc. ( ENTA ), a collaboration partner of AbbVie ( ABBV ), reported its fourth-quarter and full-year -…-6 financial results. In -…-6, Enanta Pharmaceuticals realized $'… million versus $--5 million received in -…-5 for collaborations with AbbVie. The increase in royalty revenue of $-'.6 could only counteract the decrease in sales due to less payments received from AbbVie. | Enanta Pharmaceuticals Inc. ( ENTA ), a collaboration partner of AbbVie ( ABBV ), reported its fourth-quarter and full-year -…-6 financial results. In -…-6, Enanta Pharmaceuticals realized $'… million versus $--5 million received in -…-5 for collaborations with AbbVie. The increase in royalty revenue of $-'.6 could only counteract the decrease in sales due to less payments received from AbbVie. |
26365.0 | 2016-11-21 00:00:00 UTC | The Zacks Analyst Blog Highlights: Amgen, Cisco, NextEra Energy, AbbVie and eBay | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-amgen-cisco-nextera-energy-abbvie-and-ebay-2016-11-21 | nan | nan | For Immediate Release
Chicago, IL - November 21, 2016 - 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 Amgen (Nasdaq: AMGN - Free Report ), Cisco (Nasdaq: CSCO - Free Report ), NextEra Energy (NYSE: NEE - Free Report ), AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
Top Research Reports for Today: AMGN, CSCO, NEE
Today's Research Daily features new research reports on 16 major stocks, including Amgen (Nasdaq: AMGN - Free Report ), Cisco (Nasdaq: CSCO - Free Report ) and NextEra Energy (NYSE: NEE - Free Report ).
Buy-rated Cisco has lost ground following the mixed quarterly report, but the stock is still up more than 10% in the year-to-date period and continues to lead the broader technology space. In the updated research report issued today, the Zacks analyst covering the stock highlights Cisco's expanding footprint in the rapidly growing security and data center market. Moreover, partnerships with the likes of Pure Storage, salesforce.com and IBM will help Cisco to gain significant traction in the data center, cloud and Internet of Things (IoT) market in the long haul. (You can read the full research report on Cisco here>> )
Amgen shares have struggled this year, but it has come back following the election as fears of restrictive pricing and regulatory strictures have eased. The analyst points to Amgen's impressive quarterly results, its portfolio of blockbuster drugs, the prospect for efficiency gains from the restructuring plan and track record of returning excess cash to shareholders through dividends and buybacks. Amgen is also progressing with its pipeline given quite a few regulatory and data updates scheduled for the coming quarters. However, the company has some challenges in store given the presence of biosimilar competition and slowdown in sales of mature products. (You can read the full research report on Amgen here>> )
NextEra Energy 's shares have increased by more than 10% year-to-date but have struggled over the last quarter. NextEra Energy's reported mixed third-quarter earnings. However, the analyst likes NextEra Energy's investment in renewable generation which should boost its performance over the long haul. Favorable economic conditions in its service territories will drive demand for utility services. Strategic acquisition and asset divestment bode well for NextEra Energy. On the flip side, NextEra Energy's nature of business is subject to complex and comprehensive federal, state and other regulations. Also, concerns related to commodity price fluctuations might deter its growth to some extent. (You can read the full research report on NextEra Energy here>> )
Other noteworthy reports we are featuring today include AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ).
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Amgen (Nasdaq: AMGN - Free Report ), Cisco (Nasdaq: CSCO - Free Report ), NextEra Energy (NYSE: NEE - Free Report ), AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). (You can read the full research report on NextEra Energy here>> ) Other noteworthy reports we are featuring today include AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). Get the full Report on AMGN - FREE Get the full Report on CSCO - FREE Get the full Report on NEE - FREE Get the full Report on ABBV - FREE Get the full Report on EBAY - 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. | Stocks recently featured in the blog include Amgen (Nasdaq: AMGN - Free Report ), Cisco (Nasdaq: CSCO - Free Report ), NextEra Energy (NYSE: NEE - Free Report ), AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EBAY INC (EBAY): Free Stock Analysis Report To read this article on Zacks.com click here. (You can read the full research report on NextEra Energy here>> ) Other noteworthy reports we are featuring today include AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). | Get the full Report on AMGN - FREE Get the full Report on CSCO - FREE Get the full Report on NEE - FREE Get the full Report on ABBV - FREE Get the full Report on EBAY - 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 AMGEN INC (AMGN): Free Stock Analysis Report CISCO SYSTEMS (CSCO): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EBAY INC (EBAY): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Amgen (Nasdaq: AMGN - Free Report ), Cisco (Nasdaq: CSCO - Free Report ), NextEra Energy (NYSE: NEE - Free Report ), AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). | Stocks recently featured in the blog include Amgen (Nasdaq: AMGN - Free Report ), Cisco (Nasdaq: CSCO - Free Report ), NextEra Energy (NYSE: NEE - Free Report ), AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). (You can read the full research report on NextEra Energy here>> ) Other noteworthy reports we are featuring today include AbbVie (NYSE: ABBV - Free Report ) and eBay (Nasdaq: EBAY - Free Report ). Get the full Report on AMGN - FREE Get the full Report on CSCO - FREE Get the full Report on NEE - FREE Get the full Report on ABBV - FREE Get the full Report on EBAY - 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. |
26366.0 | 2016-11-20 00:00:00 UTC | The No. 1 Healthcare Concern Americans Want Donald Trump to Fix -- and It's Not Obamacare | ABBV | https://www.nasdaq.com/articles/no-1-healthcare-concern-americans-want-donald-trump-fix-and-its-not-obamacare-2016-11-20 | nan | nan | Donald Trump will take the oath of office as the forty-fifth president of the United States on Jan. 20, 2017. The billionaire businessman promised that one of his major goals will be to repeal and replace Obamacare.
Is that what Americans want as Mr. Trump's top healthcare priority? Nope. Replacing Obamacare barely cracked the top 10 in the list for respondents in the latest Health Tracking Poll from the Kaiser Family Foundation. Here's the No. 1 healthcare concern Americans want the next president to fix.
Image source: Disney / ABC Television Group, via Flickr .
Striking bipartisanship
Nearly three-quarters of the 1,205 Americans surveyed by Kaiser Family Foundation said that their top priority for the incoming administration is to make high-cost drugs for chronic conditions like HIV, hepatitis, mental illness, and cancer affordable for people who need them. This was the No. 1 priority for Democrats, Republicans, and independents alike.
While bipartisanship was present when it came to controlling drugs for chronic diseases, the second-greatest healthcare priority varied, depending on the respondents' political leanings. Democrats and independents ranked having the federal government take action to lower overall prescription drug prices as their No. 2 priority. Republicans, however, went with repealing Obamacare as the next most important item for the next president's healthcare agenda.
Americans united again for the third most important healthcare priority. Survey respondents of all political affiliations picked making sure that enough doctors and hospitals were included in health plans' networks as their third-highest to-do item for the federal government.
What might Trump do?
Donald Trump's healthcare priorities don't appear to align all that closely with those identified in the Kaiser survey. Aside from repealing Obamacare, Mr. Trump's top three healthcare goals include allowing health insurance to be sold across state lines, and permitting individuals to fully deduct the cost of health-insurance premiums from their federal income taxes.
The only item among Donald Trump's healthcare platform planks that could relate to containing chronic-disease drug costs is to "remove barriers to entry into free markets for drug providers that offer safe, reliable and cheaper products." This goal ranked at the bottom of Mr. Trump's top seven healthcare objectives.
Could this proposal really help make chronic-disease drugs more affordable for Americans? Maybe. Pharmaceutical companies often price drugs lower in other countries than in the U.S. Whether or not this idea makes a significant difference for the top priority identified in the Kaiser survey depends on the details of how the change would be implemented.
Breathing easier
President-elect Trump's healthcare priorities are quite different from those of Democratic nominee Hillary Clinton. The former secretary of state publicly attacked drugmakers by name and promised to address alleged "predatory pricing" by some companies.
Although they weren't singled out by Hillary Clinton, Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) stand out as two companies that are probably breathing much easier after the election. It's not surprising that shares of both AbbVie and Gilead jumped after Donald Trump won. Gilead has been a target of activists for years because of how it prices its HIV drugs, and both Gilead and AbbVie market expensive drugs for treating hepatitis C.
AbbVie and partner Roche won regulatory approval for cancer drug Venclexta earlier this year; Venclexta's price of $110,000 per year is even higher than the $80,000-plus cost for hep-C drug Viekira. That makes Gilead's price tag of nearly $58,000 for its cancer drug Zydelig look almost cheap by comparison.
Change is coming
As of now, it doesn't look like significant efforts will be undertaken by a Trump administration to lower chronic-disease drug costs. That could change, however, if this continues to be a top priority for the American public.
Assuming Mr. Trump and Congress fulfill their promises to repeal and replace Obamacare, that would check off a box on Republican voters' healthcare wish list. It's possible that they, along with other Americans, will push harder for making chronic-disease drugs more affordable with Obamacare out of the way.
Regardless of what happens with healthcare reform and the views of the American public, one thing is certain: Change is on the way.
10 stocks we like better than Gilead Sciences
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Keith Speights owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Although they weren't singled out by Hillary Clinton, Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) stand out as two companies that are probably breathing much easier after the election. It's not surprising that shares of both AbbVie and Gilead jumped after Donald Trump won. Gilead has been a target of activists for years because of how it prices its HIV drugs, and both Gilead and AbbVie market expensive drugs for treating hepatitis C. AbbVie and partner Roche won regulatory approval for cancer drug Venclexta earlier this year; Venclexta's price of $110,000 per year is even higher than the $80,000-plus cost for hep-C drug Viekira. | Gilead has been a target of activists for years because of how it prices its HIV drugs, and both Gilead and AbbVie market expensive drugs for treating hepatitis C. AbbVie and partner Roche won regulatory approval for cancer drug Venclexta earlier this year; Venclexta's price of $110,000 per year is even higher than the $80,000-plus cost for hep-C drug Viekira. Although they weren't singled out by Hillary Clinton, Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) stand out as two companies that are probably breathing much easier after the election. It's not surprising that shares of both AbbVie and Gilead jumped after Donald Trump won. | Gilead has been a target of activists for years because of how it prices its HIV drugs, and both Gilead and AbbVie market expensive drugs for treating hepatitis C. AbbVie and partner Roche won regulatory approval for cancer drug Venclexta earlier this year; Venclexta's price of $110,000 per year is even higher than the $80,000-plus cost for hep-C drug Viekira. Although they weren't singled out by Hillary Clinton, Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) stand out as two companies that are probably breathing much easier after the election. It's not surprising that shares of both AbbVie and Gilead jumped after Donald Trump won. | Although they weren't singled out by Hillary Clinton, Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) stand out as two companies that are probably breathing much easier after the election. It's not surprising that shares of both AbbVie and Gilead jumped after Donald Trump won. Gilead has been a target of activists for years because of how it prices its HIV drugs, and both Gilead and AbbVie market expensive drugs for treating hepatitis C. AbbVie and partner Roche won regulatory approval for cancer drug Venclexta earlier this year; Venclexta's price of $110,000 per year is even higher than the $80,000-plus cost for hep-C drug Viekira. |
26367.0 | 2016-11-20 00:00:00 UTC | Ready to Get In on Biotech? Check Out These 3 Stocks | ABBV | https://www.nasdaq.com/articles/ready-get-biotech-check-out-these-3-stocks-2016-11-20 | nan | nan | There are plenty of reasons for investors to avoid the biotechnology sector altogether. The majority of companies from the industry are unprofitable, forcing them to constantly raise additional capital. Bringing a new drug through the regulatory approval process is incredibly difficult, so shareholders face long odds of success. Even if a drug does manage to win approval, it can still be a huge challenge to get providers and payers on board.
And yet, despite all of those negatives, it can be a mistake to write off the sector entirely. After all, if you buy the right biotech stocks, the returns can be life-changing .
Image source: Getty Images.
With that in mind, we asked a team of Fools to highlight a biotech stock that they think is a good choice for investors who are new to the industry. Read on to see why they chose ACADIA Pharmaceuticals (NASDAQ: ACAD) , Celldex Therapeutics (NASDAQ: CLDX) , and Neurocrine Biosciences (NASDAQ: NBIX) .
Off to a fast start
Brian Feroldi (ACADIA Pharmaceuticals): I'm a conservative investor, so I like to buy biotech stocks only after they've brought a new drug to market. If that strategy appeals to you, then I'd recommend that you give ACADIA Pharmaceuticals a closer look.
ACADIA recently crossed the finish line with its first drug -- Nuplazid -- which is approved to treat Parkinson's disease psychosis, or PDP. This condition affects roughly 40% of the 1 million patients in the U.S. who suffer from Parkinson's disease. PDP causes patients to hallucinate and become delusional, which greatly increases the cost and complexity of their care.
Image source: ACADIA Pharmaceuticals.
Up until Nuplazid was launched a few months ago, physicians didn't really have any effective treatment options. That fact gave Nuplazid automatic demand , so sales were strong right out of the gate. During its first full quarter on the market, sales hit $5.2 million, which was far above the $2.9 million that Wall Street had expected. That's a terrific start, suggesting that ACADIA has a real winner on its hands.
While growth in PDP will likely remain strong for years to come, ACADIA believes that Nuplazid's label could eventually be expanded to include other disease states, too. The drug is already in trials as a potential treatment for Alzheimer's disease psychosis and schizophrenia. If those trials pan out, then Nuplazid's addressable market could greatly expand from here.
ACADIA is far from risk-free, but Nuplazid holds real promise to grow into a blockbuster drug over time. That makes this stock a great choice for new investors who want to take their first step into the biotech industry.
A lot for a little
Cory Renauer (Celldex Therapeutics): If you're looking to get in on biotech, then you'd be hard-pressed to find a stock with more potential bang for your buck than Celldex Therapeutics. Its market cap turned south earlier this year after its brain cancer candidate, Rintega, performed in line with previous studies but failed to outperform the current standard of care in a head-to-head comparison.
The shocking failure led to a market beatdown, and at recent prices, the company's market cap is just $480.6 million. With a nearly debt-free balance sheet that boasted cash, cash equivalents, and marketable securities totaling $203.2 million at the end of September, this is one of the cheapest biotech stocks you can buy right now.
Image source: Getty Images.
Despite its modest price tag, the company has a development pipeline stuffed with targeted cancer therapies. Industry peers 10 times its size would be thrilled to have five separate candidates in nine self-sponsored clinical trials, plus two more sponsored by the National Cancer Institute. Once a planned acquisition of privately held Kolltan Pharmaceuticals is completed, the company will add several more clinical-stage candidates to its roster.
Celldex is currently enrolling a cross section of difficult-to-treat breast cancer patients with tumors that express glycoprotein NMB on their surface. Once the treatment candidate glembatumumab vedotin, or glemba, binds to this target, it releases a lethal dose of chemo inside the tumor cell.
In a previous study, glemba significantly outperformed standard chemo in a similar group of patients, and repeating the success would probably lead to an approval. I think glemba alone justifies Celldex's market cap, and its other candidates are icing on the cake. With so much to look forward to, and at such a low price, this is a great stock for newbies and experienced biotech investors alike.
Poised for a big 2017
Cheryl Swanson (Neurocrine Biosciences): Snagging yourself a biotech winner starts with finding a stock whose lead drugs have blockbuster potential, and it doesn't hurt if they've mostly proved themselves in clinical trials. Neurocrine Biosciences fits the bill on both counts. The $4.75 billion market cap biotech's drug valbenazine has been tagged with the FDA's breakthrough designation and is up for approval on April 11, 2017. Valbenazine should achieve first-to-market advantage for tardive dyskinesia, a debilitating condition affecting the nervous system, over rival med SD-809 from Teva Pharmaceutical (NYSE: TEVA) . With no approved products and decades of pent-up demand, that indication alone gives it blockbuster potential. But valbenazine is also being tested in Tourette's syndrome, a condition that involves involuntary movements or sounds. With data due to be released by the end of 2016, Tourette's could give the drug another $2 billion market in the developed world.
So why is Neurocrine flat for the year? Blame the sectorwide funk and the fact that Wall Street also seems to doubt whether Neurocrine can hold off Teva's much larger sales force. However, valbenazine should easily beat SD-809 to market.
Neurocrine has another budding blockbuster in partnership with big pharma AbbVie (NYSE: ABBV) . AbbVie plans to file a new drug application for elagolix in 2017. The first approval target is endometriosis, but elagolix has a further indication in uterine fibroids. Endometriosis is a primary cause of infertility, with analysts projecting a $2.6 billion market for the indication by 2022. Better yet, investors can expect AbbVie to do the heavy lifting for elagolix's launch, while Neurocrine is well-prepared to handle the neurological drug's commercialization, with $353 million in cash or cash equivalents, which, at the current burn rate, should last at least 18 months. Be forewarned this is a high-risk stock, but if Neurocrine can get these drugs across the finish line, then in my view, it's a steal.
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Brian Feroldi has no position in any stocks mentioned. Cheryl Swanson has no position in any stocks mentioned. Cory Renauer has no position in any stocks mentioned. The Motley Fool recommends Celldex Therapeutics and Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Neurocrine has another budding blockbuster in partnership with big pharma AbbVie (NYSE: ABBV) . AbbVie plans to file a new drug application for elagolix in 2017. Better yet, investors can expect AbbVie to do the heavy lifting for elagolix's launch, while Neurocrine is well-prepared to handle the neurological drug's commercialization, with $353 million in cash or cash equivalents, which, at the current burn rate, should last at least 18 months. | Neurocrine has another budding blockbuster in partnership with big pharma AbbVie (NYSE: ABBV) . AbbVie plans to file a new drug application for elagolix in 2017. Better yet, investors can expect AbbVie to do the heavy lifting for elagolix's launch, while Neurocrine is well-prepared to handle the neurological drug's commercialization, with $353 million in cash or cash equivalents, which, at the current burn rate, should last at least 18 months. | Neurocrine has another budding blockbuster in partnership with big pharma AbbVie (NYSE: ABBV) . AbbVie plans to file a new drug application for elagolix in 2017. Better yet, investors can expect AbbVie to do the heavy lifting for elagolix's launch, while Neurocrine is well-prepared to handle the neurological drug's commercialization, with $353 million in cash or cash equivalents, which, at the current burn rate, should last at least 18 months. | Neurocrine has another budding blockbuster in partnership with big pharma AbbVie (NYSE: ABBV) . AbbVie plans to file a new drug application for elagolix in 2017. Better yet, investors can expect AbbVie to do the heavy lifting for elagolix's launch, while Neurocrine is well-prepared to handle the neurological drug's commercialization, with $353 million in cash or cash equivalents, which, at the current burn rate, should last at least 18 months. |
26368.0 | 2016-11-18 00:00:00 UTC | Johnson & Johnson Takes Aim at AbbVie | ABBV | https://www.nasdaq.com/articles/johnson-johnson-takes-aim-abbvie-2016-11-18 | nan | nan | Johnson & Johnson (NYSE: JNJ) just submitted an application for FDA approval of guselkumab, a next-generation therapy that if approved, will compete head-to-head against AbbVie Inc. 's(NYSE: ABBV) megablockbuster autoimmune-disease drug Humira. Since Humira is the world's best-selling drug, and guselkumab could have billion-dollar blockbuster potential, let's learn some more about it.
Taking on the champion
Humira, an anti-TNF biologic (it blocks tumor necrosis factor, or TNF), is the king of all prescription medicines in the United States. It's approved to treat a wide swath of autoimmune diseases, including plaque psoriasis, and widespread adoption of the drug has propelled its annual sales to more than $14 billion.
Humira's standing as the dominant therapy in autoimmune indications, however, may be about to end. Humira's patents are beginning to expire, and competitors eager to win away Humira's sales are working nonstop to develop Humira-beating treatments.
Johnson & Johnson has been at the forefront of those efforts. The company already markets the $3-billion-plus-per-year psoriasis drug Stelara, and its latest drug, guselkumab, could win away even more of Humira's market share in the indication over time.
In trials, more patients who were treated with guselkumab achieved clearer skin than did patients who were treated with placebo or Humira.
Specifically, J&J's VOYAGE 1 study showed that nearly three-quarters of patients receiving guselkumab achieved PASI 90 (on the Psoriasis Area and Severity Index), or a 90% improvement in skin clearance from baseline. Only 2.9% of patients who received placebo could make that claim.
More importantly, 73.3% of guselkumab patients achieved PASI 90 at week 16, compared to 49.7 % of patients who were treated with Humira. At week 24, 80% of guselkumab patients achieved PASI 90 versus 53% of Humira patients. Guselkumab's outperformance continued through week 48, when the study ended.
Guselkumab's trial results suggest a clear benefit for patients, and since guselkumab's safety was similar to Humira's, there's little reason to doubt that J&J's seasoned sales team will be able to get this drug in front of doctors, or that doctors will prescribe it.
Shifting share
The market for psoriasis drugs is undeniably massive: It's estimated that 7.5 million people suffer from the condition in the U.S. alone. It also affects 14 million Europeans, and globally, the psoriasis patient population could be as large as 125 million people.
Not all of these patients will seek treatment, and psoriasis signs and symptoms vary from person to person, but the itching, burning, and soreness associated with moderate to severe psoriasis has made this market incredibly valuable to drugmakers. GlobalData estimates that the market for psoriasis drugs already exceeds $6 billion and that by 2024, the market could be worth more than $13 billion.
Competition for those sales is fierce, and getting more so every year. J&J's Stelara has been used to treat psoriasis since 2009, and in the third quarter, Stelara's global sales clocked in at $814 million, up 32.8% from a year ago. More recently, the FDA granted a green light to Novartis ' Cosentyx in 2015. Cosentyx, an interleukin-17A inhibitor, is already generating annualized sales of $1.2 billion. Celgene entered the psoriasis market last year as well, and its Otezla delivered third-quarter annualized sales that put it on pace to be a billion-dollar blockbuster too.
Given how many psoriasis drugs have eclipsed the 10-figure revenue threshold, it's not shocking that industry watchers expect guselkumab's peak sales will also eventually exceed $1 billion. Of course, guselkumab needs to win FDA approval first, but it doesn't appear there are any safety reasons that could derail that from happening. If that's the case, then a decision could be on tap in the second half of next year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Johnson & Johnson (NYSE: JNJ) just submitted an application for FDA approval of guselkumab, a next-generation therapy that if approved, will compete head-to-head against AbbVie Inc. 's(NYSE: ABBV) megablockbuster autoimmune-disease drug Humira. Taking on the champion Humira, an anti-TNF biologic (it blocks tumor necrosis factor, or TNF), is the king of all prescription medicines in the United States. It's approved to treat a wide swath of autoimmune diseases, including plaque psoriasis, and widespread adoption of the drug has propelled its annual sales to more than $14 billion. | Johnson & Johnson (NYSE: JNJ) just submitted an application for FDA approval of guselkumab, a next-generation therapy that if approved, will compete head-to-head against AbbVie Inc. 's(NYSE: ABBV) megablockbuster autoimmune-disease drug Humira. In trials, more patients who were treated with guselkumab achieved clearer skin than did patients who were treated with placebo or Humira. At week 24, 80% of guselkumab patients achieved PASI 90 versus 53% of Humira patients. | Johnson & Johnson (NYSE: JNJ) just submitted an application for FDA approval of guselkumab, a next-generation therapy that if approved, will compete head-to-head against AbbVie Inc. 's(NYSE: ABBV) megablockbuster autoimmune-disease drug Humira. The company already markets the $3-billion-plus-per-year psoriasis drug Stelara, and its latest drug, guselkumab, could win away even more of Humira's market share in the indication over time. Guselkumab's trial results suggest a clear benefit for patients, and since guselkumab's safety was similar to Humira's, there's little reason to doubt that J&J's seasoned sales team will be able to get this drug in front of doctors, or that doctors will prescribe it. | Johnson & Johnson (NYSE: JNJ) just submitted an application for FDA approval of guselkumab, a next-generation therapy that if approved, will compete head-to-head against AbbVie Inc. 's(NYSE: ABBV) megablockbuster autoimmune-disease drug Humira. The company already markets the $3-billion-plus-per-year psoriasis drug Stelara, and its latest drug, guselkumab, could win away even more of Humira's market share in the indication over time. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market. |
26369.0 | 2016-11-18 00:00:00 UTC | Sanofi/Regeneron Present Sarilumab Data at ACR Meeting | ABBV | https://www.nasdaq.com/articles/sanofi-regeneron-present-sarilumab-data-at-acr-meeting-2016-11-18 | nan | nan | Regeneron Pharmaceuticals, Inc.REGN and SanofiSNY announced the presentation of results from a phase III monotherapy study (SARIL-RA-MONARCH) on their rheumatoid arthritis (RA) candidate, sarilumab. The results were announced at an oral session during the American College of Rheumatology (ACR) Annual Meeting in Washington, D.C. Top line results from the study were announced in March this year.
The study included patients suffering from active RA who responded inadequately to, intolerant of, or were inappropriate for methotrexate treatment. The patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks).
Results revealed that sarilumab is superior to Humira in improving signs and symptoms in patients with active RA at week 24, thereby meeting the primary endpoint of the study. The study also met other important endpoints including an improvement in ACR criteria and other measures assessing improvements in signs and symptoms of RA and physical function.
REGENERON PHARM Price
REGENERON PHARM Price | REGENERON PHARM Quote
Moreover, sarilumab, which is an anti interleukin-6 receptor monoclonal antibody, is under FDA review for the treatment of patients suffering from active, moderate-to-severe RA. Regarding this, a Complete Response Letter (CRL) from the FDA was given in October, which identified certain deficiencies during a routine good manufacturing practice inspection of the Sanofi Le Trait facility where sarilumab is filled and finished. Those deficiencies must be addressed before the drug can be approved by the FDA.
SANOFI-AVENTIS Price
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While Regeneron is a Zacks Rank #2 (Buy) stock, Sanofi carries a Zacks Rank #3 (Hold). Anika Therapeutics Inc. ANIK is a better-ranked stock in the health care sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Anika's earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company posted positive surprises in each of the trailing four quarters, with an average beat of 33.14%.Share prices surged 17.1% 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. | The patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Regeneron Pharmaceuticals, Inc.REGN and SanofiSNY announced the presentation of results from a phase III monotherapy study (SARIL-RA-MONARCH) on their rheumatoid arthritis (RA) candidate, sarilumab. | Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). REGENERON PHARM Price REGENERON PHARM Price | REGENERON PHARM Quote Moreover, sarilumab, which is an anti interleukin-6 receptor monoclonal antibody, is under FDA review for the treatment of patients suffering from active, moderate-to-severe RA. | Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). REGENERON PHARM Price REGENERON PHARM Price | REGENERON PHARM Quote Moreover, sarilumab, which is an anti interleukin-6 receptor monoclonal antibody, is under FDA review for the treatment of patients suffering from active, moderate-to-severe RA. | The patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Regeneron Pharmaceuticals, Inc.REGN and SanofiSNY announced the presentation of results from a phase III monotherapy study (SARIL-RA-MONARCH) on their rheumatoid arthritis (RA) candidate, sarilumab. |
26370.0 | 2016-11-18 00:00:00 UTC | J&J (JNJ) Files for Psoriasis Candidate Guselkumab in U.S. | ABBV | https://www.nasdaq.com/articles/jj-jnj-files-for-psoriasis-candidate-guselkumab-in-u.s.-2016-11-18 | nan | nan | Johnson & Johnson 's JNJ subsidiary, Janssen announced the submission of a Biologics License Application (BLA) to the FDA for its pipeline candidate guselkumab for the treatment of adults with moderate to severe plaque psoriasis.
The application is served on the basis of four studies - phase III VOYAGE 1, VOYAGE 2 and NAVIGATE, and phase II X-PLORE - evaluating the efficacy and safety of guselkumab administered by subcutaneous injection for the treatment of adults with moderate to severe plaque psoriasis.
Results of the VOYAGE 1 study were recently presented at the European Academy of Dermatology and Venereology congress in Austria, while VOYAGE 2 and NAVIGATE data are expected to be presented at upcoming scientific congresses.
Data from the VOYAGE 1 trial (n=837) showed that significantly higher proportions of patients with moderate-to-severe plaque psoriasis treated with guselkumab achieved high rates of skin clearance compared to those receiving placebo. 73% of the patients receiving guselkumab achieved near complete skin clearance versus 2.9% on placebo.
The active comparator arm of the VOYAGE trial evaluated guselkumab in comparison with AbbVie Inc.'s ABBV top-selling product, Humira. The study demonstrated statistically significant efficacy of guselkumab compared to Humira after week 16, which was maintained through 48 weeks of treatment. Almost 50% of the patients treated with Humira achieved near-complete skin clearance compared with 73% receiving guselkumab.
A phase II trial evaluating guselkumab in moderate-to-severely active psoriatic arthritis is also ongoing. Per the company's press release, around 125 million people worldwide suffer from psoriasis, including 7.5 million Americans with their disease ranging from mild to severe and disabling. Hence, an approval of guselkumab would give the company access to a wide patient population in the U.S.
JOHNSON & JOHNS Price
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Zacks Rank & Key Picks
Johnson & Johnson currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Cambrex Corp. CBM and Vanda Pharmaceuticals, Inc. VNDA . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Cambrex's earnings estimates increased from $2.46 to $2.55 for 2016 and from $2.91 to $3.06 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 19.78%. Its share price has increased 9.7% year to date.
Vanda's loss estimates narrowed from 68 cents to 56 cents for 2016, while its earnings estimates have increased from 16 cents to 17 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average positive surprise of 56.65%. Its share price has surged 83.1% 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 active comparator arm of the VOYAGE trial evaluated guselkumab in comparison with AbbVie Inc.'s ABBV top-selling product, Humira. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Data from the VOYAGE 1 trial (n=837) showed that significantly higher proportions 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 JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The active comparator arm of the VOYAGE trial evaluated guselkumab in comparison with AbbVie Inc.'s ABBV top-selling product, Humira. Data from the VOYAGE 1 trial (n=837) showed that significantly higher proportions 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 JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The active comparator arm of the VOYAGE trial evaluated guselkumab in comparison with AbbVie Inc.'s ABBV top-selling product, Humira. The application is served on the basis of four studies - phase III VOYAGE 1, VOYAGE 2 and NAVIGATE, and phase II X-PLORE - evaluating the efficacy and safety of guselkumab administered by subcutaneous injection for the treatment of adults with moderate to severe plaque psoriasis. | The active comparator arm of the VOYAGE trial evaluated guselkumab in comparison with AbbVie Inc.'s ABBV top-selling product, Humira. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report VANDA PHARMACT (VNDA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The application is served on the basis of four studies - phase III VOYAGE 1, VOYAGE 2 and NAVIGATE, and phase II X-PLORE - evaluating the efficacy and safety of guselkumab administered by subcutaneous injection for the treatment of adults with moderate to severe plaque psoriasis. |
26371.0 | 2016-11-17 00:00:00 UTC | Glaxo (GSK) Presents Phase III Data on Sirukumab & Benlysta | ABBV | https://www.nasdaq.com/articles/glaxo-gsk-presents-phase-iii-data-on-sirukumab-benlysta-2016-11-17 | nan | nan | GlaxoSmithKline plcGSK reported results from two pivotal phase III studies - SIRROUND-T and SIRROUND-H - on subcutaneous sirukumab (anti-interleukin-6 monoclonal antibody) for the treatment of adults with moderate to severely active rheumatoid arthritis (RA).
SIRROUND-T evaluated sirukumab in adult patients with moderate to severely active RA who are refractory or intolerant to one or more anti-tumor necrosis factor (TNF) agents. Results demonstrated that a significantly higher proportion of patients treated with sirukumab witnessed an at least 20% improvement in signs and symptoms (ACR20) at week 16 in comparison to placebo, thereby meeting the primary endpoint of the study.
On the other hand, the SIRROUND-H study compared sirukumab monotherapy with Abbvie, Inc.'s ABBV Humira (adalimumab) monotherapy in adult patients with moderate to severely active RA who were refractory to, intolerant to or inappropriate for methotrexate. Results showed that sirukumab monotherapy achieved the first two co-primary endpoints, having led to a significant improvement in disease activity compared with Humira monotherapy.
We note that regulatory applications seeking approval for sirukumab for RA have been filed in both the U.S. and the EU.
Glaxo is developing sirukumab under a licensing and co-development agreement with Johnson & Johnson's JNJ Janssen Biologics.
In a separate press release, Glaxo announced data from a seven-year safety and efficacy continuation phase III study on Benlysta for the treatment of patients with active, autoantibody-positive systemic lupus erythematosus (SLE). Data showed that long-term control of disease activity in patients receiving Benlysta plus standard of care led to meaningful benefits in their daily lives, including improvements in health-related quality of life and fatigue.
Data from the studies on sirukumab and Benlysta will be presented at the annual meeting of the American College of Rheumatology/Association for Rheumatology Health Professionals.
Glaxo currently carries a Zacks Rank #3 (Hold)
GLAXOSMITHKLINE Price
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A Stock to Consider
A better-ranked stock in the healthcare sector is Anika Therapeutics ANIK . The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Anika's earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company posted a positive surprise in all of the four trailing quarters with an average beat of 33.14%. Its share price has gained 17.1% 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. | On the other hand, the SIRROUND-H study compared sirukumab monotherapy with Abbvie, Inc.'s ABBV Humira (adalimumab) monotherapy in adult patients with moderate to severely active RA who were refractory to, intolerant to or inappropriate for methotrexate. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. GlaxoSmithKline plcGSK reported results from two pivotal phase III studies - SIRROUND-T and SIRROUND-H - on subcutaneous sirukumab (anti-interleukin-6 monoclonal antibody) for the treatment of adults with moderate to severely active rheumatoid arthritis (RA). | On the other hand, the SIRROUND-H study compared sirukumab monotherapy with Abbvie, Inc.'s ABBV Humira (adalimumab) monotherapy in adult patients with moderate to severely active RA who were refractory to, intolerant to or inappropriate for methotrexate. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. SIRROUND-T evaluated sirukumab in adult patients with moderate to severely active RA who are refractory or intolerant to one or more anti-tumor necrosis factor (TNF) agents. | On the other hand, the SIRROUND-H study compared sirukumab monotherapy with Abbvie, Inc.'s ABBV Humira (adalimumab) monotherapy in adult patients with moderate to severely active RA who were refractory to, intolerant to or inappropriate for methotrexate. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Glaxo currently carries a Zacks Rank #3 (Hold) GLAXOSMITHKLINE Price GLAXOSMITHKLINE Price | GLAXOSMITHKLINE Quote A Stock to Consider A better-ranked stock in the healthcare sector is Anika Therapeutics ANIK . | On the other hand, the SIRROUND-H study compared sirukumab monotherapy with Abbvie, Inc.'s ABBV Humira (adalimumab) monotherapy in adult patients with moderate to severely active RA who were refractory to, intolerant to or inappropriate for methotrexate. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. GlaxoSmithKline plcGSK reported results from two pivotal phase III studies - SIRROUND-T and SIRROUND-H - on subcutaneous sirukumab (anti-interleukin-6 monoclonal antibody) for the treatment of adults with moderate to severely active rheumatoid arthritis (RA). |
26372.0 | 2016-11-17 00:00:00 UTC | J&J (JNJ) Stelara Gets Approval in EU for Label Expansion | ABBV | https://www.nasdaq.com/articles/jj-jnj-stelara-gets-approval-in-eu-for-label-expansion-2016-11-17 | nan | nan | Johnson & Johnson 's JNJ subsidiary, Janssen Therapeutics, announced that the European Commission (EC) has approved its prescription drug Stelara for the treatment of moderate-to-severely active Crohn's disease in adults.
Stelara is presently marked in the EU and U.S. for the treatment of moderate-to-severe plaque psoriasis and active psoriatic arthritis.
The approval was not surprising as the European Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) had granted a positive opinion to Stelara, recommending approval for the indication in September. Also, in the same month, Stelara received the FDA approval for the same indication. J&J is also evaluating Stelara as a subcutaneous treatment for ulcerative colitis (phase III ongoing) and axial spondylytis (phase III).
Sales of Stelara in the upcoming quarters should receive a boost with this label expansion. According to the company's press release, more than five million people worldwide suffer from Crohn's disease and ulcerative colitis which are collectively referred to as inflammatory bowel disease (IBD).
JOHNSON & JOHNS Price and Consensus
JOHNSON & JOHNS Price and Consensus | JOHNSON & JOHNS Quote
Apart from Stelara, J&J is also working actively on expanding the label of other new marketed products like Simponi, Xarelto and Imbruvica. For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. For Xarelto, there are eight new indications seeking trials as part of the EXPLORER clinical development program. While Johnson & Johnson has exclusive U.S. marketing rights of Xarelto, the drug is being marketed by Bayer AG BAYRY outside the U.S.
Simponi (partner: Merck & Co., Inc. MRK ) received approval this year in the EU for the treatment of polyarticular juvenile idiopathic arthritis in combination with methotrexate. Also, the company plans to file two line extensions for Simponi Aria, the intravenous formulation of Simponi, in psoriatic arthritis and ankylosing spondylitis. We believe that in the forthcoming period, these drugs will contribute significantly to the company's top line.
J&J 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. | For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stelara is presently marked in the EU and U.S. for the treatment of moderate-to-severe plaque psoriasis and active psoriatic arthritis. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. JOHNSON & JOHNS Price and Consensus JOHNSON & JOHNS Price and Consensus | JOHNSON & JOHNS Quote Apart from Stelara, J&J is also working actively on expanding the label of other new marketed products like Simponi, Xarelto and Imbruvica. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. JOHNSON & JOHNS Price and Consensus JOHNSON & JOHNS Price and Consensus | JOHNSON & JOHNS Quote Apart from Stelara, J&J is also working actively on expanding the label of other new marketed products like Simponi, Xarelto and Imbruvica. | For Imbruvica (partner: AbbVie, Inc. ABBV ), six additional indications have been approved since its launch and the drug is also being evaluated in a number of combination therapies. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & Johnson 's JNJ subsidiary, Janssen Therapeutics, announced that the European Commission (EC) has approved its prescription drug Stelara for the treatment of moderate-to-severely active Crohn's disease in adults. |
26373.0 | 2016-11-16 00:00:00 UTC | Amgen Files for Avastin Biosimilar; Repatha Data Positive | ABBV | https://www.nasdaq.com/articles/amgen-files-for-avastin-biosimilar-repatha-data-positive-2016-11-16 | nan | nan | Amgen Inc.AMGN , along with its partner Allergan plc. AGN , announced the submission of a Biologics License Application (BLA) to the FDA for its biosimilar version of Roche Holding AG's RHHBY Avastin (bevacizumab), ABP 215.
ABP 215 is the most advanced oncology biosimilar in Amgen's pipeline. The company has a total of nine biosimilar candidates in its portfolio, of which Amjevita, a biosimilar version of AbbVie Inc.'s ABBV Humira was approved by the FDA this September. The ones under development include biosimilar versions of Roche's Rituxan, Eli Lilly's Erbitux, and Johnson and Johnson/Merck's Remicade. Amgen has also tied up with Daiichi Sankyo for the commercialization of nine biosimilars in Japan.
Note that Amgen has a collaboration agreement with Allergan for the worldwide development and commercialization of the former's oncology antibody biosimilar medicines.
In a separate press release, Amgen announced that it has presented detailed results of the GLAGOV trial at the American Heart Association (AHA) meeting, which were simultaneously published in the Journal of the American Medical Association .
GLAGOV is a multicenter, double-blinded, randomized, placebo-controlled phase III study, which evaluated the effect of Repatha, a PCSK9 inhibitor, on patients with coronary artery disease (CAD) who were already treated with optimized statin therapy, as measured by intravascular ultrasound imaging (IVUS). Top-line results of the study were announced in September.
The phase III study (n=968), in which patients were given either monthly Repatha 420 mg or placebo subcutaneous injections, showed that Repatha modifies the underlying process of atherosclerosis, a major cause of cardiovascular disease.
The study met the primary as well as the secondary endpoint. The primary endpoint was change in percentage of atheroma volume (PAV) from baseline to week 78 as measured by IVUS.
The study results demonstrated that adding Repatha to optimized statin therapy resulted in statistically significant regression of atherosclerosis in patients with CAD. Nearly two-thirds of patients on Repatha experienced a reduction in plaque burden.
Patients in the Repatha arm experienced a 0.95% decrease in PAV from baseline, compared with an increase of 0.05% from baseline in patients receiving optimized statin therapy plus placebo. Moreover, patients in the Repatha arm experienced a mean decrease in normalized total atheroma volume (TAV), a measure of plaque volume, compared to placebo.
We note that Repatha is indicated in adults with primary hypercholesterolaemia (heterozygous familial and non-familial) or mixed dyslipidaemia, as an adjunct to diet.
Repatha holds the potential to treat patients who are unable to maintain acceptable levels of LDL cholesterol. A phase III cardiovascular outcomes study (FOURIER) on Repatha is currently ongoing with top-line data expected in the first quarter of 2017.
AMGEN INC Price
AMGEN INC Price | AMGEN INC Quote
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Amgen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has a total of nine biosimilar candidates in its portfolio, of which Amjevita, a biosimilar version of AbbVie Inc.'s ABBV Humira was approved by the FDA this September. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AGN , announced the submission of a Biologics License Application (BLA) to the FDA for its biosimilar version of Roche Holding AG's RHHBY Avastin (bevacizumab), ABP 215. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The company has a total of nine biosimilar candidates in its portfolio, of which Amjevita, a biosimilar version of AbbVie Inc.'s ABBV Humira was approved by the FDA this September. Moreover, patients in the Repatha arm experienced a mean decrease in normalized total atheroma volume (TAV), a measure of plaque volume, compared to placebo. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The company has a total of nine biosimilar candidates in its portfolio, of which Amjevita, a biosimilar version of AbbVie Inc.'s ABBV Humira was approved by the FDA this September. GLAGOV is a multicenter, double-blinded, randomized, placebo-controlled phase III study, which evaluated the effect of Repatha, a PCSK9 inhibitor, on patients with coronary artery disease (CAD) who were already treated with optimized statin therapy, as measured by intravascular ultrasound imaging (IVUS). | The company has a total of nine biosimilar candidates in its portfolio, of which Amjevita, a biosimilar version of AbbVie Inc.'s ABBV Humira was approved by the FDA this September. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Patients in the Repatha arm experienced a 0.95% decrease in PAV from baseline, compared with an increase of 0.05% from baseline in patients receiving optimized statin therapy plus placebo. |
26374.0 | 2016-11-15 00:00:00 UTC | Incyte, Eli Lilly Offer Positive Phase III Data on Baricitinib | ABBV | https://www.nasdaq.com/articles/incyte-eli-lilly-offer-positive-phase-iii-data-on-baricitinib-2016-11-15 | nan | nan | Incyte CorporationINCY and Eli Lilly and Company LLY provided updates from two phase III studies, RA-BEAM and RA-BUILD, on baricitinib for the treatment of rheumatoid arthritis (RA).
RA-BEAM evaluated baricitinib, in comparison to AbbVie Inc.'s ABBV Humira, in patients who had active moderate-to-severe RA, despite ongoing treatment with methotrexate. RA-BUILD, on the other hand, evaluated the candidate, in comparison to placebo, in patients with moderate-to-severe RA who previously had an inadequate response to, or were intolerant of, at least one conventional synthetic disease-modifying antirheumatic drug (csDMARD) and had not received a biologic DMARD.
Findings from both the studies demonstrated that patients on the baricitinib (4 mg) arm experienced significant improvements in joint pain, severity of morning joint stiffness and tiredness, compared to both placebo and Humira.
Results were presented at an annual meeting of the American College of Rheumatology (ACR)/Association of Rheumatology Health Professionals (ARHP).
INCYTE CORP Price
INCYTE CORP Price | INCYTE CORP Quote
In a separate press release, Incyte and Eli Lilly announced new data analyses from the same studies. Data from three post-hoc analyses on baricitinib showed improvements in RA symptoms in patients irrespective of age, body mass index (BMI) and previous treatments with csDMARDs.
We note that in Jan 2016, Eli Lilly submitted a regulatory application for baricitinib in both the U.S. and the EU for the treatment of patients with mild-to-moderate severe RA. As per a WHO Global Burden of Disease Report, over 23 million people suffer from RA across the world.
Meanwhile, baricitinib is being evaluated in phase IIa study for the treatment of atopic dermatitis and in a phase II study for the treatment of systemic lupus erythematosus.
LILLY ELI & CO Price
LILLY ELI & CO Price | LILLY ELI & CO Quote
Zacks Rank & Key Picks
Incyte is a Zacks Rank #2 (Buy) stock, while Eli Lilly carries a Zacks Rank #3 (Hold). Cambrex Corp. CBM is a top-ranked stock in the health care sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Cambrex's earnings estimates have increased from $2.46 to $2.55 for 2016 and from $2.91 to $3.06 for 2017 over the last 60 days. The company has posted a positive earnings surprise in three of the trailing four quarters with an average beat of 19.78%.
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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. | RA-BEAM evaluated baricitinib, in comparison to AbbVie Inc.'s ABBV Humira, in patients who had active moderate-to-severe RA, despite ongoing treatment with methotrexate. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Incyte CorporationINCY and Eli Lilly and Company LLY provided updates from two phase III studies, RA-BEAM and RA-BUILD, on baricitinib for the treatment of rheumatoid arthritis (RA). | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. RA-BEAM evaluated baricitinib, in comparison to AbbVie Inc.'s ABBV Humira, in patients who had active moderate-to-severe RA, despite ongoing treatment with methotrexate. INCYTE CORP Price INCYTE CORP Price | INCYTE CORP Quote In a separate press release, Incyte and Eli Lilly announced new data analyses from the same studies. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. RA-BEAM evaluated baricitinib, in comparison to AbbVie Inc.'s ABBV Humira, in patients who had active moderate-to-severe RA, despite ongoing treatment with methotrexate. INCYTE CORP Price INCYTE CORP Price | INCYTE CORP Quote In a separate press release, Incyte and Eli Lilly announced new data analyses from the same studies. | RA-BEAM evaluated baricitinib, in comparison to AbbVie Inc.'s ABBV Humira, in patients who had active moderate-to-severe RA, despite ongoing treatment with methotrexate. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. LILLY ELI & CO Price LILLY ELI & CO Price | LILLY ELI & CO Quote Zacks Rank & Key Picks Incyte is a Zacks Rank #2 (Buy) stock, while Eli Lilly carries a Zacks Rank #3 (Hold). |
26375.0 | 2016-11-14 00:00:00 UTC | Merck's Triple Combination HCV Therapy Positive in Phase III | ABBV | https://www.nasdaq.com/articles/mercks-triple-combination-hcv-therapy-positive-in-phase-iii-2016-11-14 | nan | nan | Merck & Co., Inc.MRK announced positive data from three phase II trials evaluating its pipeline candidate, MK-3682, in combination with grazoprevir and ruzasvir1 for the treatment of chronic hepatitis C (HCV) infection.
Results from two studies showed that treatment with the all-oral, triple combination regimen (MK-3682B) resulted in high rates of sustained virologic response 12 weeks after the completion of the therapy (SVR12) in patients, with chronic HCV genotype (GT) 1 or GT3 infection, who received eight weeks of treatment with combination medicine. Findings from these studies also demonstrated high rates of SVR12 in GT1, GT2 and GT3-infected patients, who received the combination therapy for 12 or 16 weeks.
Merck's key HCV drug in the market is Zepatier which was launched in the U.S. in February. Zepatier, brought in sales of $164 million, up from $112 million in the second quarter of 2016. Zepatier is expected to be launched in the fourth quarter in Japan where it was recently approved. It is expected to be a key top-line driver for Merck.
MERCK & CO INC Price and Consensus
MERCK & CO INC Price and Consensus | MERCK & CO INC Quote
The HCV market is getting crowded and could thus see more 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.
Merck currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Merck & Co., Inc.MRK announced positive data from three phase II trials evaluating its pipeline candidate, MK-3682, in combination with grazoprevir and ruzasvir1 for the treatment of chronic hepatitis C (HCV) infection. | 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 & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): 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. Results from two studies showed that treatment with the all-oral, triple combination regimen (MK-3682B) resulted in high rates of sustained virologic response 12 weeks after the completion of the therapy (SVR12) in patients, with chronic HCV genotype (GT) 1 or GT3 infection, who received eight weeks of treatment with combination medicine. | 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 & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Results from two studies showed that treatment with the all-oral, triple combination regimen (MK-3682B) resulted in high rates of sustained virologic response 12 weeks after the completion of the therapy (SVR12) in patients, with chronic HCV genotype (GT) 1 or GT3 infection, who received eight weeks of treatment with combination medicine. |
26376.0 | 2016-11-13 00:00:00 UTC | Should Biopharma Companies Buy Innovation? | ABBV | https://www.nasdaq.com/articles/should-biopharma-companies-buy-innovation-2016-11-13 | nan | nan | Pfizer (NYSE: PFE) and Astellas (NASDAQOTH: ALPMY) share profit on the blockbuster prostate cancer drug Xtandi, and AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) split profit on the blockbuster lymphoma and leukemia drug Imbruvica. However, these companies took very different paths to adding these drugs to their portfolios.
Pfizer and AbbVie waited until these medicines were already top sellers before they bought their way in, while Astellas and Johnson & Johnson took the risk of licensing them while they were still in clinical trials. Why did these companies approach these drugs differently, and is one approach better than the other? Analyst Kristine Harjes is joined by contributor Todd Campbell to discuss how pharmaceuticals are diversifying their product lines in this edition of The Motley Fool's Industry Focus: Healthcare podcast.
A full transcript follows the video.
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Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. I'm your host, Kristine Harjes. It is currently Oct. 20. If you listened to last week's episode, you know that Todd Campbell, our regular healthcare contributor to this show, is in the house for a writers' conference, so we want to pre-record a couple episodes. By the time you're listening to this, it will probably be at least Nov. 2. Todd, welcome again to the show!
Todd Campbell: It's fantastic to be here. It's just wonderful to be able to sit with you and talk about some really cool stuff that's going on in healthcare, and helping our listeners figure out how to make the most money from it all.
Harjes: It's been fun. It's also been interesting to do two episodes in a row. We've never done this before. We record each week, day of.
Campbell: I know! This is new territory for us, so bear with us.
Harjes: Yeah, there are a couple of podcasts I listen to where they regularly record a couple shows in a row, and they're very open about it. It's like, oh, OK, yeah, that makes sense. It's efficient. So here we are, being all efficient and professional. So on today's show, we wanted to talk a little bit about the merger-and-acquisition landscape. It's something that's a really hot topic, particularly in healthcare, where you see a lot of consolidation, a lot of bigger companies snapping up small ones, trying to boost the revenue by buying out a company that's doing something great. But there's also a lot of talk about is the space getting too hot? Is it too expensive? Are companies overpaying? What are your thoughts on a broad level there?
Campbell: I think they've gotten less expensive than they were, say, a year ago. We've seen some dramatic push-back on drug prices all over the political landscape in the course of the past year.
Harjes: Yeah, election season has wrecked this industry.
Campbell: Yeah, and it's taking a big toll on share prices for the market valuations of some of these companies. It certainly makes you think that, while you didn't want to pay through the nose last year, maybe you'll be more willing to step up and make an offer now. But on the other end of that, if you're the person owning the company that has now lost value, you're still looking at last year's valuation thinking, "No, I'm worth this." So it may be harder to get deals done. It could get cheaper, but they might be harder to execute. We have still seen some deals get done. You alluded to a few of them. That's exciting to think about -- how are these companies going out and expanding themselves into oncology, maybe broadening themselves out. Americans are getting older. And as we get older, we're more likely to get diagnosed with chronic illnesses that are going to require treatments. So there are long-term, long-tail reasons to still be interested in biopharma stocks. The question for each of these companies that they're trying to figure out is, is it better to license, or is it better to buy outright?
Harjes: Absolutely. There's a lot of pressure to use your cash to do something. I think one company that comes to mind here is Pfizer. Pfizer has been very actively acquisitive for a while now. We have talked about several of their deals. The first one that comes to mind is Allergan , which fell through. And that was a huge, splashy story, because it would have been an enormous acquisition, but alas, it didn't happen, so I don't want to spend too much time on it. Perhaps a better one to talk about would be the Medivation deal, which was a lot more recent. This was a $13 billion purchase essentially just for one drug name, Xtandi.
Campbell: Fifty percent of one drug.
Harjes: Yeah, let's be very specific there. Medivation was only getting 50% of the revenue from this drug, and so now Pfizer will only get 50% of the revenue from this drug. So if you look at the peak sales there, estimates are about $4 [billion to] $5 billion peak annual sales. This is a drug that treats metastatic castrate-resistant prostate cancer. So, Medivation and now Pfizer would get, at most, $2.5 billion per year there, if you slice the $4 [billion to] $5 [billion] peak estimates there in half. And they paid $13 billion. That's a 5.2x multiple. That's a ton. That's expensive.
Campbell: Yeah. They're looking at it and saying, "Well, there's patent protection on this drug that's going to stretch out for long enough that we're going to get a good return investment, and we can leverage a lot of cost out of Medivation by integrating them with Pfizer." I mean, Pfizer is a Goliath. They already have all the sales, the marketing, all the things that they would need to be able to make Xtandi sales jump. So they don't really need a lot of that overlap, they can X-out a lot of costs. So, I think they looked at it and said, "OK, on a cash flow basis, we can make this deal be accretive, so let's go ahead and jump in and do it." But it's so much more money than, say, like, Astellas would have paid to get 50% of the rights to Xtandi while it was still in clinical trials. I think that that's what it's really coming down to. You have two different approaches for these companies. You have the approach where they can pay out less up front, "We'll give you an up-front payment, plus we'll offer you milestones if the drug does well in clinical trials, or hits certain sales thresholds, we'll pay you a little extra money for that." But you're taking on a big risk. Ninety percent of drugs in clinical trials fail. They don't make it to market. That's why you're able to buy them cheap. Or you can go the other way like Pfizer, and say, "We're going to buy proven drugs that are already billion-dollar blockbusters, and they're de-risked, we can model them better." And sure, there could be competitors along the way that eat into that market share. So, there are two very different arguments.
Harjes: Right, there's two different elements to this decision. You have, how early stage do you want to go? Do you want to buy the drug when it's just through phase 1 and it looks sort of promising, maybe, and you can probably get it for very cheap, because, as you mentioned, the failure rate is extremely high? Or do you wait until it's already in the hands of the FDA and then go for it? Then, the other thing at play here is what sort of agreements you want to make. Do you want to buy the company with the drug outright, and therefore get 100% of it in your lap for you to deal with? Or do you want to do some sort of licensing deal, where you pay a little bit at a time and you incorporate these milestones and you end up with, say, 50% of eventual profits?
Campbell: Right. And you know what that just reminded me of, there's a third leg to that stool, which is your own internal R&D. You can be developing a drug -- Gilead Sciences tried to take on Imbruvica with Zydelig in chronic leukemia, certain types of rare forms of leukemia. I think one of the things they're also weighing is, to what degree do I want to invest in my own R&D versus, say, buy something, versus, say, license something? It's a juggling match that management is continuously making.
Harjes: Let's take another example and dig into it a little bit. Johnson & Johnson and AbbVie, their overlap is a drug called Imbruvica. This is the first chemotherapy-free first-line treatment for CLL, which is the most common form of leukemia. Johnson & Johnson paid a company called Pharmacyclics $150 million upfront back in December 2011, when the drug was in phase 2.
Campbell: What a great deal.
Harjes: Yeah. This was to get a 50-50 profit-loss split -- $150 million, plus any milestones that came after that. But going back to the dynamics we were mentioning earlier, this was a kind of risky bet because it was an earlier-stage drug, and they also chose to go the 50%-only route. So then, much later, March 2015, AbbVie pays $21 billion to buy Pharmacyclics outright, after the drug -- I forget if it was already in the hands of the FDA, but it was much later stage.
Campbell: Yeah, it was out there, it was already starting to make money and generate revenue. And you're right, who got the better deal?
Harjes: It's kind of questionable who did. When you look at the risk that Johnson & Johnson took there, I don't know, I think you would have to do a little bit of math, back-of-the-enveloping it. If you look at drug success rates and you multiply that by peak sales -- I don't know. Looking at this thing, I think that Johnson & Johnson obviously got the better deal. But it might not have been that bad of a deal for AbbVie, either. They think its half of this share alone could eventually bring in $7 billion a year in additional revenue.
Campbell: Yeah. And AbbVie needed to make something happen, too, because they run the risk of losing patent protection soon on their best-selling drug that accounts for the lion's share of their revenue. So they want to be able to diversify away from autoimmune diseases, where Humira is such a Goliath, and be able to target other indications like oncology. This really allows them to do that and gives them something they can build off of and really expand into new markets. It was an important deal for them to make, and I think it was the right deal for them to make. We talk a lot on the show about how important it is to diversify yourself. I was just thinking as we were talking, that's exactly what these companies are doing. They are diversifying their risks. In some instances, they're doing their own internal R&D. In other instances, they're licensing in, and if they're licensing it at $150 million up front, maybe they do 10 of those deals. And then, of course, the other end of that is, they go out and buy things they know already work, that have already made it to the market and are already blockbusters. So I think it's just smart management. I think you'll continue to see that happen. It'll be really interesting, though, to see how this plays out as far as acquisitions over the course of the next year.
Harjes: For sure. You mentioned the pressure that some companies feel to do something with their money and make acquisitions. A lot of them have succumbed to this pressure, so they're shelling out a ton of money to try to diversify. One company that is a strong standout in the opposite direction is Gilead Sciences (NASDAQ: GILD) . We talk about them all the time. Listeners, you may already realize they have a lot of cash they're sitting on, and quarter after quarter, in their earnings conference calls, you hear analysts saying, "Hey, guys, what are you going to do with this cash? When are you going to make an acquisition?" And every time, their answer is like, "We're evaluating what to do with our cash. We'll do the right thing with it when the time comes."
Campbell: Right deal, right price.
Harjes: Yeah. And if history shows you anything, Gilead has been very, very good at acquisitions. As a shareholder and a big fan of the company, I trust them to sit on it a little bit more and have patience to make the right move. But there is that pressure. It's weighed on the share price, too.
Campbell: We've become quarter-to-quarter investors as a whole. So people aren't looking capital-"f" Foolishly when it comes to their portfolios. They're looking foolishly, lowercase, where they say, "OK, I'm going to go in and out and in and out and in and out." I went back and looked at Gilead Sciences' share-price returns over the course of the last decade. There were over 20 instances where the stock fell more than 5% in any given month. Yet if you stuck with the stock, you're up 378%. So yes, there are going to be stumbles and bumps and bruises along the way, and we're seeing that right now because there's competition that's eating into their sales for their hepatitis C drugs, because it's affecting prices, driving prices lower, all that stuff. But I feel like that's kind of temporary. What we've seen in the past is, this is a company that knows how to innovate and knows how to buy smart. I think what you'll find is, five years from now, this will be a stronger stock that's growing again. I always try to encourage people to think further out. Don't worry too much about what we're seeing over the course of the last 12 months, the last three months. Think more about where you think these companies could be five years out, 10 years out. I think when you do that, you look at this and you say, "Wow, Gilead has deep pockets, it's got plenty of cash flow rolling in. It's an attractive investment, especially now that it has a dividend yield of 2.5%." That's pretty compelling when you consider the alternative, Treasuries, the yield is very low.
Harjes: Yeah, and when you look at how cheap they are, too, for me, this is kind of a no-brainer of a stock. But you did a great job of laying out the capital-"f" Foolish way of looking at it. Of course, people on the program may have interests in the stocks that they talk about, and The Motley Fool may have formal recommendations for or against them, so do your own research, don't buy or sell based solely on what we're saying here today. Todd, thank you so much for joining me in studio.
Campbell: It's my pleasure.
Harjes: It's been fun. For Todd Campbell, I'm Kristine Harjes. Thanks so much for listening, and Fool on!
Kristine Harjes owns shares of Gilead Sciences and Johnson and Johnson. Todd Campbell owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Johnson and Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Pfizer (NYSE: PFE) and Astellas (NASDAQOTH: ALPMY) share profit on the blockbuster prostate cancer drug Xtandi, and AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) split profit on the blockbuster lymphoma and leukemia drug Imbruvica. Pfizer and AbbVie waited until these medicines were already top sellers before they bought their way in, while Astellas and Johnson & Johnson took the risk of licensing them while they were still in clinical trials. Johnson & Johnson and AbbVie, their overlap is a drug called Imbruvica. | Pfizer (NYSE: PFE) and Astellas (NASDAQOTH: ALPMY) share profit on the blockbuster prostate cancer drug Xtandi, and AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) split profit on the blockbuster lymphoma and leukemia drug Imbruvica. Pfizer and AbbVie waited until these medicines were already top sellers before they bought their way in, while Astellas and Johnson & Johnson took the risk of licensing them while they were still in clinical trials. Johnson & Johnson and AbbVie, their overlap is a drug called Imbruvica. | Pfizer (NYSE: PFE) and Astellas (NASDAQOTH: ALPMY) share profit on the blockbuster prostate cancer drug Xtandi, and AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) split profit on the blockbuster lymphoma and leukemia drug Imbruvica. Pfizer and AbbVie waited until these medicines were already top sellers before they bought their way in, while Astellas and Johnson & Johnson took the risk of licensing them while they were still in clinical trials. Johnson & Johnson and AbbVie, their overlap is a drug called Imbruvica. | Pfizer (NYSE: PFE) and Astellas (NASDAQOTH: ALPMY) share profit on the blockbuster prostate cancer drug Xtandi, and AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) split profit on the blockbuster lymphoma and leukemia drug Imbruvica. Pfizer and AbbVie waited until these medicines were already top sellers before they bought their way in, while Astellas and Johnson & Johnson took the risk of licensing them while they were still in clinical trials. Johnson & Johnson and AbbVie, their overlap is a drug called Imbruvica. |
26377.0 | 2016-11-11 00:00:00 UTC | 3 Stocks Where You Don’t Have To Settle For Average Yields (CSCO, IP, ABBV) | ABBV | https://www.nasdaq.com/articles/3-stocks-where-you-dont-have-to-settle-for-average-yields-csco-ip-abbv-2016-11-11 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Quick, what's 0.19% of $3.6 trillion? I'll give you a hint: that's how much, on average, passively "managed" mutual fund giant Vanguard Group collects in management fees annually. Since Vanguard is not a publicly traded entity, the actual revenue numbers are held pretty close to the vest.
But the math comes out to be $6.8 billion in fees based on the average Vanguard fund expense ratio of 0.19%.
So, while the fund company prides itself on being shareholder owned, and pounds the table on passing value to the investor, make no mistake, Vanguard is a business and a profitable one at that. And while
Vanguard founder John Bogle is nowhere close to being a Wall Street fat cat, his tenure at the company made him an incredibly wealthy man by most standards.
The other day while driving in to work, I listened to an interview with Mr. Bogle on Bloomberg radio, as always, trumpeting his case for cheap, passive index investing. He complained, like most of us, of the low-rate, low-growth environment. He said that the stock market is overvalued with a forward P/E of 20-plus (most estimates put it closer to 18), dividend yields barely around 2%, and U.S. economic growth under 2%.
According to him, the best solution for investors is to - drum roll please - put their money in a low-cost index fund. Shocker.
Now, I do agree with Mr. Bogle that yields are terribly low, and there's no argument that U.S. economic growth is anemic at best. Is the market overvalued? Like always, some parts are and some aren't. But that doesn't mean investors should just accept a broad-brush vision and settle as Mr. Bogle would have them.
Above-market earnings growth and S&P-beating dividend yields are out there. They're not even that hard find.
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Here are three well known stocks that qualify.
Cisco Systems, Inc. ( CSCO )
As the "Internet of Things" quietly grows, the world's pre-eminent computer-networking hardware company surfs the same wave. Looking in the rearview mirror, CSCO has grown earnings per share (EPS) at a consistent average annual rate of 7.1% while boosting their cash dividend an average of 35% per year. Going forward, EPS is expected to grow an average of 10% annually over the next two fiscal years. CSCO shares are currently priced at around $31 with a forward P/E of 12.7 and a 3.37% dividend yield.
International Paper Co ( IP )
Having pivoted from free sheet paper to higher margin packaging products, IP remains a key player in the rise of the emerging middle-class long game. Despite the lack of visibility for global economic growth, IP has delivered solid 5-year EPS growth of 29% annually. Dividend growth has been equally impressive with a 13.2% average annual growth rate for the same time period. The two-year forecast is equally optimistic, with anticipated average annual earnings growth of 34%. IP shares trade around $44 with a forward PE of 13.3 and a dividend yield of 4.16%.
AbbVie, Inc ( ABBV )
Formerly the traditional research-driven, pharmaceutical side of Abbot Laboratories ( ABT ), AbbVie has posted solid results since the split. 5-year average annual earnings growth has clocked in at 28.16% with the dividend growing at a 40% annual clip for the same stretch. Looking forward two years, projections call for average annual EPS growth of 33.5%. ABBV trades close to $62 with a 12.28 forward P/E and a 4.18% dividend yield.
Risks To Consider: Despite my optimism and the compelling numbers these three companies have delivered, all three face significant economic headwinds. ABBV is experiencing difficulties with the obvious regulatory stagnation caused by Obamacare, IP needs real economic and consumer growth, and Cisco has a heavy reliance on capital spending which is often hard to find. However, all three companies do have solid franchises, world class cash flow, and consistent operating results in the current climate.
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Action To Take: Combined, all three stocks have 5-year average annual EPS growth of over 21%, 2-year forward earnings growth of 25.8%, and a combined average dividend yield of about 4%. This combination of metrics could result in capital appreciation north of 17%, resulting in a total return in excess of 20%. Sure, throwing it all in an index fund is cheaper and easier. But higher returns are always worth the work.
P.S. Looking for your ultimate 'Forever Stocks' for 2017 (and beyond)? Buy them. Forget about them. Let them make you a fortune . These are the market's most promising, most stable cash cows that are poised for rapid growth in the near future. Discover our list right here …
StreetAuthority's mission is to help individual investors earn above-average profits by providing a source of independent, unbiased - and most of all, profitable - investing ideas. Unlike traditional publishers, StreetAuthority doesn't simply regurgitate the latest stock market news. Instead, we provide in-depth research, plus specific investment ideas and immediate action to take based on the latest market events. Visit us atStreetAuthority.com.
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The post 3 Stocks Where You Don't Have To Settle For Average Yields (CSCO, IP, ABBV) 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. | ABBV is experiencing difficulties with the obvious regulatory stagnation caused by Obamacare, IP needs real economic and consumer growth, and Cisco has a heavy reliance on capital spending which is often hard to find. AbbVie, Inc ( ABBV ) Formerly the traditional research-driven, pharmaceutical side of Abbot Laboratories ( ABT ), AbbVie has posted solid results since the split. ABBV trades close to $62 with a 12.28 forward P/E and a 4.18% dividend yield. | AbbVie, Inc ( ABBV ) Formerly the traditional research-driven, pharmaceutical side of Abbot Laboratories ( ABT ), AbbVie has posted solid results since the split. ABBV trades close to $62 with a 12.28 forward P/E and a 4.18% dividend yield. ABBV is experiencing difficulties with the obvious regulatory stagnation caused by Obamacare, IP needs real economic and consumer growth, and Cisco has a heavy reliance on capital spending which is often hard to find. | More From InvestorPlace 7 S&P 500 Dividend Stocks to Buy That Yield 4% or More 7 Top Stocks to Buy for Months of Red-Hot Returns The post 3 Stocks Where You Don't Have To Settle For Average Yields (CSCO, IP, ABBV) appeared first on InvestorPlace . AbbVie, Inc ( ABBV ) Formerly the traditional research-driven, pharmaceutical side of Abbot Laboratories ( ABT ), AbbVie has posted solid results since the split. ABBV trades close to $62 with a 12.28 forward P/E and a 4.18% dividend yield. | ABBV trades close to $62 with a 12.28 forward P/E and a 4.18% dividend yield. AbbVie, Inc ( ABBV ) Formerly the traditional research-driven, pharmaceutical side of Abbot Laboratories ( ABT ), AbbVie has posted solid results since the split. ABBV is experiencing difficulties with the obvious regulatory stagnation caused by Obamacare, IP needs real economic and consumer growth, and Cisco has a heavy reliance on capital spending which is often hard to find. |
26378.0 | 2016-11-10 00:00:00 UTC | The 7 Best Dividend Stocks to Buy for 2017 | ABBV | https://www.nasdaq.com/articles/the-7-best-dividend-stocks-to-buy-for-2017-2016-11-10 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
The surprising result of the presidential election has large implications for dividend stocks . First, let's stipulate this: As an asset class, stocks that pay dividends always look good. Yes, they compete with fixed income for investors' favor. True, like bonds, their prices come under pressure when interest rate rise. But whether it's an up market or a down market, there's always a place for dividend investing.
Source: Fabian Blank via Unsplash
The yields on dividend stocks rise when their share prices become depressed. That's an opportunity to chase extra yield. Besides, the best dividend-paying stocks do their most good when they are held for long periods of time. Ideally, the holding period includes many dividend hikes and market cycles.
On the other side of the coin, if the market is rising - that's obviously good for all equities. The bottom line is that dividends are always appropriate for long-term investors.
That said, investors need to be cognizant of which way the political winds are blowing. The ascension of Donald Trump to the presidency of the U.S. promises to usher in big changes for a swath of industries. That means certain dividend stocks stand to benefit on a price basis more than others. If they throw off healthy dividends as well, the the total return equation is complete! It's also important to remember that rising profits allow companies to give more cash back to shareholders.
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With these considerations in mind, here are seven dividend stocks poised to generate outperformance with a new president in the White House in 2017.
The Best Dividend Stocks to Buy: AbbVie (ABBV)
Source: Black Stripe via Wikimedia (Modified)
ABBV Dividend Yield: 4%
The pharmaceutical sector is heaving a sigh of relief. There's little wonder why. Hillary Clinton said her administration would clamp down on rising drug prices. That means a number of pharma stocks with strong yields now look even better for 2017.
AbbVie Inc (NYSE: ABBV ) stock is shooting higher in response to the election. The dividend only pads that lead. Slow-but-steady growth is a basic part of the equation.
On the downside, we don't know how a Trump administration will view mergers and acquisitions, which are a vital part of the industry. AbbVie successfully completed the acquisition of Stemcentrx in June, which bolsters its portfolio of oncology treatments. The ability to make similar moves going forward is now less certain.
Be that as it may, AbbVie looks like a tremendous dividend name. It's only been around since 2013, and yet its payout has grown by more than 40% in that short time.
Best Dividend Stocks to Buy: Chevron (CVX)
Source: swong95765 via Flickr (Modified)
CVX Dividend Yield: 4%
This one is a bit more complicated. Chevron Corporation (NYSE: CVX ) and other energy names will benefit from a pro-fossil fuel policy. Recession or trade wars, however, will sap demand for oil.
For now, though, oil prices appear to have stabilized. As an integrated energy major, Chevron's downstream business offers a bit of a hedge against weakness in crude oil anyway.
Oil prices are cyclical - even if the cycles can take a painfully long time to turn. And a dividend yield of more than 4% is mighty attractive in an ultra-low interest rate environment.
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Perhaps best of all, patient investors - that is, buy-and-hold types - can look forward to a steady drumbeat of payout hikes. Through thick-and-thin energy markets, CVX has raised its dividend for 30 consecutive years.
Best Dividend Stocks to Buy: General Electric (GE)
Source: Anthony Quintano via Flickr
GE Dividend Yield: 3%
As long as international trade policy doesn't go off the rails, General Electric Company 's (NYSE: GE ) long-term strategy sounds too good to ignore.
But investors will need to remain patient. General Electric's earnings underscore the difficulty of shedding the firm's financial businesses at a time when the oil and gas industry is depressed. Much to the delight of investors, GE addressed that problem in a big way.
GE is putting a lot of distance between it and the oil and gas business by merging it with Baker Hughes Incorporated (NYSE: BHI ). That helps mitigate some of the macroeconomic risk from the industry.
The transformation back to a pure-play industrial company was always going to be an long and messy process. Macro headwinds are making it worse, but don't forget that they're cyclical, too.
Best Dividend Stocks to Buy: Merck (MRK)
Source: Ryan via Wikimedia (Modified)
MRK Dividend Yield: 2.8%
Merck & Co., Inc. (NYSE: MRK ) was an attractive dividend name even before the latest developments. Indeed, it is having an outstanding year, with gains more than 20%. If there's a downside to that, price appreciation has lowered the yield on the dividend to right around the 3% mark.
Like all Big Pharma companies, MRK uses mergers and acquisitions to replenish its pipeline with cost effectiveness. We'll see what happens with a new administration, but as a strategy it's working well. Merck has five drugs that currently in review by regulatory agencies, as well as 25 late-stage and 11 mid-stage programs.
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Take price appreciation, throw in the dividend and MRK - a component of the Dow Jones Industrial Average - looks good for better-than-average total returns.
Best Dividend Stocks to Buy: Pfizer (PFE)
Source: Kojach Via Flickr
PFE Dividend Yield: 3.6%
Pfizer Inc. (NYSE: PFE ) is another pharma giant that also happens to be a Dow component. Shares weren't having a very good year - up until Wednesday. Now, sentiment couldn't be higher.
In addition to the outsized yield, PFE has fundamental reasons to become a part of your equity income portfolio. It has a strong pipeline with 94 clinical studies under way. Furthermore, a buyout bender - which have already been concluded - promises long-term price appreciation to go along with a steady dividend stream. In this year alone, PFE bought Medivation Inc for $14 billion and Anacor Pharmaceuticals Inc for $5.2 billion .
The first deal beefs up PFE's oncology portfolio in a big way. With Anacor Pharmaceuticals, PFE got its hands on crisaborole - a non-steroid eczema treatment that is being studied for efficacy against psoriasis.
Best Dividend Stocks to Buy: Wells Fargo (WFC)
Source: Mike Mozart via Flickr (Modified)
WFC Dividend Yield: 3%
Wells Fargo & Co (NYSE: WFC ) was a buy even before the outcome of the election. No, it might not be the most popular name after its phony accounts scandal, but that actually works in a value investor's favor. It's still a quality business with a quality stock.
Bank crises eventually blow over. This, too, shall pass. Shares in WFC went to $46 from $51 on the news. That has the dividend up to a very attractive level. A knock on banks is that they're constrained when it comes to formulating their capital plans. In 2017, stress test have targets on their backs.
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Indeed, all regs are. Perhaps banks will be allowed to return to proprietary trading as well. And any that lightens capital requirements delivers a boost to the bottom line.
Best Dividend Stocks to Buy: Verizon (VZ)
Source: Mike Mozart Via Flickr
VZ Dividend Yield: 4.9%
The telecommunications sector is a haven for equity income investors. You can't begin any discussion of dividend stocks without considering names like Verizon Communications Inc. (NYSE: VZ ).
Verizon is boring, but it's supposed to be. As much as traditional telecommunications is a poky business, VZ is making some interesting moves. Most notably, it struck a deal to acquire the core properties of Yahoo! Inc. (NASDAQ: YHOO ) to drive new revenue streams and position itself for the future. Just last year it bought AOL.
You might scoff at Verizon picking up has-been internet properties, but they actually provide VZ with potential growth in digital content and advertising technology. Main rival AT&T Inc. (NYSE: T ) offers a superior yield, but its deal to buy Time Warner is in question under a Trump presidency.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
The post The 7 Best Dividend Stocks to Buy for 2017 appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Best Dividend Stocks to Buy: AbbVie (ABBV) Source: Black Stripe via Wikimedia (Modified) ABBV Dividend Yield: 4% The pharmaceutical sector is heaving a sigh of relief. AbbVie Inc (NYSE: ABBV ) stock is shooting higher in response to the election. AbbVie successfully completed the acquisition of Stemcentrx in June, which bolsters its portfolio of oncology treatments. | The Best Dividend Stocks to Buy: AbbVie (ABBV) Source: Black Stripe via Wikimedia (Modified) ABBV Dividend Yield: 4% The pharmaceutical sector is heaving a sigh of relief. AbbVie Inc (NYSE: ABBV ) stock is shooting higher in response to the election. AbbVie successfully completed the acquisition of Stemcentrx in June, which bolsters its portfolio of oncology treatments. | The Best Dividend Stocks to Buy: AbbVie (ABBV) Source: Black Stripe via Wikimedia (Modified) ABBV Dividend Yield: 4% The pharmaceutical sector is heaving a sigh of relief. AbbVie Inc (NYSE: ABBV ) stock is shooting higher in response to the election. AbbVie successfully completed the acquisition of Stemcentrx in June, which bolsters its portfolio of oncology treatments. | The Best Dividend Stocks to Buy: AbbVie (ABBV) Source: Black Stripe via Wikimedia (Modified) ABBV Dividend Yield: 4% The pharmaceutical sector is heaving a sigh of relief. AbbVie Inc (NYSE: ABBV ) stock is shooting higher in response to the election. AbbVie successfully completed the acquisition of Stemcentrx in June, which bolsters its portfolio of oncology treatments. |
26379.0 | 2016-11-09 00:00:00 UTC | 3 Top Dividend Aristocrats to Buy in November | ABBV | https://www.nasdaq.com/articles/3-top-dividend-aristocrats-buy-november-2016-11-09 | nan | nan | MKC Shares Outstanding data by YCharts .
Most of us are familiar with McCormick & Co., even if we don't realize it. The spice company manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavor products to the entire food industry. McCormick has $4.3 billion in annual sales and more than 140 brands in more than 140 countries, so it's likely that you have one of the company's products in your spice rack, even if it isn't labeled McCormick.
McCormick already sells to nine of the top 10 food and beverage companies, along with all of the top 10 food service and restaurant chains in the U.S., but it still has plans for growth. The company notes it has outperformed the rest of the food industry in terms of return on investment for advertising, boosting its base business. It also plans to continue developing innovative new products and strategically building its footprint through acquisitions, like its recent Gourmet Garden purchase.
The good news is that, if the past decade is any indication, McCormick's business strategy is on the right track.
Looking beyond its growth ambitions, McCormick is also putting together a cost-cutting plan. More specifically, it has a new four-year, $400-million target that will come from vendor consolidation, high-speed equipment and automation, system technology, and streamlined selling, general, and administrative expenses.
All in all, McCormick is a proven company that has consistently returned value to shareholders and still offers a global growth story. The only downside is that you'll have to pay a slight premium for its shares: McCormick trades at a forward price-to-earnings ratio of 23, according to Morningstar estimates -- which is to be expected of great companies.
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Daniel Miller has no position in any stocks mentioned. George Budwell has no position in any stocks mentioned. Jamal Carnette has no position in any stocks mentioned. The Motley Fool owns shares of and recommends PepsiCo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company notes it has outperformed the rest of the food industry in terms of return on investment for advertising, boosting its base business. More specifically, it has a new four-year, $400-million target that will come from vendor consolidation, high-speed equipment and automation, system technology, and streamlined selling, general, and administrative expenses. The only downside is that you'll have to pay a slight premium for its shares: McCormick trades at a forward price-to-earnings ratio of 23, according to Morningstar estimates -- which is to be expected of great companies. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. McCormick already sells to nine of the top 10 food and beverage companies, along with all of the top 10 food service and restaurant chains in the U.S., but it still has plans for growth. | McCormick has $4.3 billion in annual sales and more than 140 brands in more than 140 countries, so it's likely that you have one of the company's products in your spice rack, even if it isn't labeled McCormick. McCormick already sells to nine of the top 10 food and beverage companies, along with all of the top 10 food service and restaurant chains in the U.S., but it still has plans for growth. A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. | The spice company manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavor products to the entire food industry. The Motley Fool owns shares of and recommends PepsiCo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. |
26380.0 | 2016-11-08 00:00:00 UTC | IYH, UNH, AMGN, ABBV: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/iyh-unh-amgn-abbv-etf-outflow-alert-2016-11-08 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $170.5 million dollar outflow -- that's a 9.8% decrease week over week (from 12,250,000 to 11,050,000). Among the largest underlying components of IYH, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, Amgen Inc (Symbol: AMGN) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average:
Looking at the chart above, IYH's low point in its 52 week range is $129.10 per share, with $157.77 as the 52 week high point - that compares with a last trade of $141.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IYH, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, Amgen Inc (Symbol: AMGN) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $129.10 per share, with $157.77 as the 52 week high point - that compares with a last trade of $141.76. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IYH, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, Amgen Inc (Symbol: AMGN) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $129.10 per share, with $157.77 as the 52 week high point - that compares with a last trade of $141.76. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IYH, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, Amgen Inc (Symbol: AMGN) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower 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 U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $170.5 million dollar outflow -- that's a 9.8% decrease week over week (from 12,250,000 to 11,050,000). For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $129.10 per share, with $157.77 as the 52 week high point - that compares with a last trade of $141.76. | Among the largest underlying components of IYH, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.2%, Amgen Inc (Symbol: AMGN) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $129.10 per share, with $157.77 as the 52 week high point - that compares with a last trade of $141.76. 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). |
26381.0 | 2016-11-07 00:00:00 UTC | Close Update: Stocks Soar As FBI Clears Potential Path For Clinton on Election Day | ABBV | https://www.nasdaq.com/articles/close-update-stocks-soar-fbi-clears-potential-path-clinton-election-day-2016-11-07 | nan | nan | Risk-averse investors breathed a sigh of relief and poured back into equity assets when the FBI said late Sunday that there was no evidence of wrongdoing in an another batch of emails unearthed from Democratic presidential candidate Hillary Clinton. With Clinton viewed as the presidential candidate least likely to roil financial markets, the Dow rallied nearly 400 points, and the S&P 500 snapped a nine-day losing streak that last occurred 36 years ago with an outsized gain of more than 2%.
Financial stocks were the primary beneficiary of Monday's surge with the Fed unlikely to delay a December rate hike should Clinton be elected president tomorrow. Nearly every sector of the S&P 500 posted substantial gains with the financial sector paced by the healthcare, consumer discretionary and industrial sectors.
Although the upside in the blue-chip index was stifled by strong resistance at the 100-day moving average, the Dow closed at its session high which was the highest close in nearly a month. Both the S&P 500 and Nasdaq Composite wiped out four days of losses including last Tuesday's sell-off ahead of the previous Federal Open Market Committee meeting.
Wall Street's impressive rally eclipsed today's economic data. The Labor Market Conditions index improved to a positive 0.7 in October from an upward revised negative 0.1 in September, initially reported as negative 2.2.
Tuesday'seconomic calendaris light with only the job openings and labor turnover survey (JOLTS) at 10:00am ET and remarks from Chicago Fed President Charles Evans at 12:20pm ET.
Here's where the markets stood at the close:
US MARKETS
Dow Jones Industrial Index was up 371.32 points (+2.08%)
S&P 500 was up 46.34 points (+2.22%)
Nasdaq Composite Index was up 119.80 points (+2.37%)
GLOBAL SENTIMENT
FTSE 100 was up 1.70%
Nikkei 225 was up 1.61%
Hang Seng Index was up 0.70%
Shanghai China Composite Index was up 0.26%
UPSIDE MOVERS
(+) NILE (+33.90%) To be acquired by Bain Capital and Bow Street for $40.75 per share
(+) N (+20.67%) Oracle ( ORCL ) moving ahead with $9.3 billion acquisition with receipt of 21.8 million unaffiliated NetSuite shares
(+) IONS (+18.39%) Investigational treatment for spinal muscular atrophy with Biogen ( BIIB ) showed highly statistically significant improvement in motor function
(+) DTLK (+18.13%) To be acquired by Insight Enterprises ( NSIT ) for $11.25 per share
DOWNSIDE MOVERS
(-) CXRX (-36.36%) Missed Q3 analyst estimates, suspending guidance
(-) HSN (-13.19%) Q3 results missed estimates, declined from year ago levels
(-) HLTH (-13.13%) Q3 earnings miss estimates on better-than-expected revenue
(-) PLUG (-11.27%) Reported wider Q3 loss on 44% drop in revenue
(-) CRHS (-9.06%) The U.S. Patent and Trademark Office denied institution of patent review of its petition against AbbVie ( ABBV )
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (-) CXRX (-36.36%) Missed Q3 analyst estimates, suspending guidance (-) HSN (-13.19%) Q3 results missed estimates, declined from year ago levels (-) HLTH (-13.13%) Q3 earnings miss estimates on better-than-expected revenue (-) PLUG (-11.27%) Reported wider Q3 loss on 44% drop in revenue (-) CRHS (-9.06%) The U.S. Patent and Trademark Office denied institution of patent review of its petition against AbbVie ( ABBV ) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Risk-averse investors breathed a sigh of relief and poured back into equity assets when the FBI said late Sunday that there was no evidence of wrongdoing in an another batch of emails unearthed from Democratic presidential candidate Hillary Clinton. With Clinton viewed as the presidential candidate least likely to roil financial markets, the Dow rallied nearly 400 points, and the S&P 500 snapped a nine-day losing streak that last occurred 36 years ago with an outsized gain of more than 2%. | (-) CXRX (-36.36%) Missed Q3 analyst estimates, suspending guidance (-) HSN (-13.19%) Q3 results missed estimates, declined from year ago levels (-) HLTH (-13.13%) Q3 earnings miss estimates on better-than-expected revenue (-) PLUG (-11.27%) Reported wider Q3 loss on 44% drop in revenue (-) CRHS (-9.06%) The U.S. Patent and Trademark Office denied institution of patent review of its petition against AbbVie ( ABBV ) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. With Clinton viewed as the presidential candidate least likely to roil financial markets, the Dow rallied nearly 400 points, and the S&P 500 snapped a nine-day losing streak that last occurred 36 years ago with an outsized gain of more than 2%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (-) CXRX (-36.36%) Missed Q3 analyst estimates, suspending guidance (-) HSN (-13.19%) Q3 results missed estimates, declined from year ago levels (-) HLTH (-13.13%) Q3 earnings miss estimates on better-than-expected revenue (-) PLUG (-11.27%) Reported wider Q3 loss on 44% drop in revenue (-) CRHS (-9.06%) The U.S. Patent and Trademark Office denied institution of patent review of its petition against AbbVie ( ABBV ) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. With Clinton viewed as the presidential candidate least likely to roil financial markets, the Dow rallied nearly 400 points, and the S&P 500 snapped a nine-day losing streak that last occurred 36 years ago with an outsized gain of more than 2%. Dow Jones Industrial Index was up 371.32 points (+2.08%) S&P 500 was up 46.34 points (+2.22%) Nasdaq Composite Index was up 119.80 points (+2.37%) | (-) CXRX (-36.36%) Missed Q3 analyst estimates, suspending guidance (-) HSN (-13.19%) Q3 results missed estimates, declined from year ago levels (-) HLTH (-13.13%) Q3 earnings miss estimates on better-than-expected revenue (-) PLUG (-11.27%) Reported wider Q3 loss on 44% drop in revenue (-) CRHS (-9.06%) The U.S. Patent and Trademark Office denied institution of patent review of its petition against AbbVie ( ABBV ) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. With Clinton viewed as the presidential candidate least likely to roil financial markets, the Dow rallied nearly 400 points, and the S&P 500 snapped a nine-day losing streak that last occurred 36 years ago with an outsized gain of more than 2%. Financial stocks were the primary beneficiary of Monday's surge with the Fed unlikely to delay a December rate hike should Clinton be elected president tomorrow. |
26382.0 | 2016-11-07 00:00:00 UTC | Why Coherus BioSciences, Inc. Is Dropping Today | ABBV | https://www.nasdaq.com/articles/why-coherus-biosciences-inc-dropping-today-2016-11-07 | nan | nan | What happened
Shares of Coherus BioSciences (NASDAQ: CHRS) , a clinical-stage biotech focused on biosimilar drugs , are down by 16% as of 2:22 p.m. EST on Monday after the company received disappointing news from the U.S. Patent and Trademark Office (USPTO).
So what
Coherus stated that the Patent Trial and Appeal Board of the USPTO has denied its petition for inter partes review on one of AbbVie 's(NYSE: ABBV) key formulation patents for its megablockbuster drug Humira (adalimumab). Coherus currently has a biosimilar version of Humira in phase 3 development and had previously announced its intentions to submit the drug for regulatory review in the U.S. before the end of the first quarter of 2017.
Denny Lanfear, Coherus' CEO, had this to say about the USPTO's ruling:
He later went on to say that the company is committed to launching its Humira biosimilar drug candidate should it eventually win regulatory approval.
Shares of AbbVie are up more than 6% on the news.
Now what
Coherus' investors knew all along that is was going to be an uphill battle to bring a biosimilar version of Humira to market. After all, Humira currently accounts for more than 60% of AbbVie's total revenue and management had previously committed to growing sales of the drug beyond $18 billion by 2020. With the stakes so high, you can bet that AbbVie's management team will do everything in its power to keep biosimilar versions of the drug from stealing market share.
Coherus hasn't yet commented on how this ruling might adjust its development timeline, but it did announce that it will be holding a special conference call with investors later today to provide more details. Shareholders of both Coherus and AbbVie will want to listen in for clues as to what is next for this product candidate.
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Brian Feroldi has no position in any stocks mentioned.Like this article? Follow him on Twitter where he goes by the handle@Longtermmindset or connect with him onLinkedInto see more articles like this.
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So what Coherus stated that the Patent Trial and Appeal Board of the USPTO has denied its petition for inter partes review on one of AbbVie 's(NYSE: ABBV) key formulation patents for its megablockbuster drug Humira (adalimumab). Shares of AbbVie are up more than 6% on the news. After all, Humira currently accounts for more than 60% of AbbVie's total revenue and management had previously committed to growing sales of the drug beyond $18 billion by 2020. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. So what Coherus stated that the Patent Trial and Appeal Board of the USPTO has denied its petition for inter partes review on one of AbbVie 's(NYSE: ABBV) key formulation patents for its megablockbuster drug Humira (adalimumab). Shares of AbbVie are up more than 6% on the news. | So what Coherus stated that the Patent Trial and Appeal Board of the USPTO has denied its petition for inter partes review on one of AbbVie 's(NYSE: ABBV) key formulation patents for its megablockbuster drug Humira (adalimumab). Shares of AbbVie are up more than 6% on the news. After all, Humira currently accounts for more than 60% of AbbVie's total revenue and management had previously committed to growing sales of the drug beyond $18 billion by 2020. | So what Coherus stated that the Patent Trial and Appeal Board of the USPTO has denied its petition for inter partes review on one of AbbVie 's(NYSE: ABBV) key formulation patents for its megablockbuster drug Humira (adalimumab). Shares of AbbVie are up more than 6% on the news. After all, Humira currently accounts for more than 60% of AbbVie's total revenue and management had previously committed to growing sales of the drug beyond $18 billion by 2020. |
26383.0 | 2016-11-04 00:00:00 UTC | Why AbbVie Shares Tumbled 11.6% in October | ABBV | https://www.nasdaq.com/articles/why-abbvie-shares-tumbled-116-october-2016-11-04 | nan | nan | Image source: AbbVie Inc.
What happened
After competitors reported news that could negatively impact its future sales, and ahead of third-quarter results that did little to spark enthusiasm, shares in AbbVie Inc .(NYSE: ABBV) fell 11.6% last month, according to S&P Global Market Intelligence .
So what
In early October, trial results for Johnson & Johnson 's(NYSE: JNJ) clinical stage psoriasis drug, guselkumab, showed that it outperformed AbbVie's top-selling Humira. Among patients receiving three doses of guselkumab, 73.3% achieved PASI 90 (90% skin improvement), while 49.7% of patients receiving 10 injections of Humira achieved PASI 90.
Later in the month, Boehringer Ingelheim announced that its Humira biosimilar was equivalent to Humira in rheumatoid arthritis patients participating in a phase 3 trial. Boehringer's news comes roughly one month after the FDA approved Amgen 's Humira biosimilar, Amjevita.
On Oct. 28, AbbVie reported third-quarter sales of $6.4 billion, up 7.4% from last year, and non-GAAP EPS of $1.21, up 7.1% year over year. The top-line results were shy of estimates by $160 million, but the bottom-line earnings beat estimates by one penny. Humira was AbbVie's best-selling drug in the quarter, generating $4.06 billion in revenue, up 11% from a year ago. Humira sales accounted for roughly 64% of AbbVie's total third-quarter revenue.
Now what
AbbVie's management believes Humira's remaining method of use patents can keep Humira biosimilars at bay for a few more years. In the meantime, they're attempting to diversify the company's revenue away from Humira by expanding into new indications, such as cancer treatment.
Last year, AbbVie spent $21 billion buying the maker of the fast-growing blockbuster leukemia and lymphoma drug Imbruvica, and earlier this year, the company acquired Rova-T, a promising anti-tumor medicine that's in early-stage trials. AbbVie also secured FDA approval for its chronic lyphocytic leukemia drug Venclexta earlier this year.
Overall, AbbVie has a flurry of research and development activity going on, but Humira will eventually face competition, and it's not 100% clear to me that the company's pipeline will produce enough blockbusters to offset that risk. Because of that revenue uncertainty, AbbVie is a riskier big-cap biotech stock. However, investors are being nicely rewarded for accepting that risk in the form of the company's dividend: AbbVie's dividend payout has grown 60% since 2013, and its shares yield a healthy 4.5% right now.
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The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Todd Campbell has no position in any stocks mentioned.Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned.Like this article? Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this. The Motley Fool recommends Johnson and Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 also secured FDA approval for its chronic lyphocytic leukemia drug Venclexta earlier this year. Overall, AbbVie has a flurry of research and development activity going on, but Humira will eventually face competition, and it's not 100% clear to me that the company's pipeline will produce enough blockbusters to offset that risk. Image source: AbbVie Inc. What happened After competitors reported news that could negatively impact its future sales, and ahead of third-quarter results that did little to spark enthusiasm, shares in AbbVie Inc . | So what In early October, trial results for Johnson & Johnson 's(NYSE: JNJ) clinical stage psoriasis drug, guselkumab, showed that it outperformed AbbVie's top-selling Humira. However, investors are being nicely rewarded for accepting that risk in the form of the company's dividend: AbbVie's dividend payout has grown 60% since 2013, and its shares yield a healthy 4.5% right now. Image source: AbbVie Inc. What happened After competitors reported news that could negatively impact its future sales, and ahead of third-quarter results that did little to spark enthusiasm, shares in AbbVie Inc . | So what In early October, trial results for Johnson & Johnson 's(NYSE: JNJ) clinical stage psoriasis drug, guselkumab, showed that it outperformed AbbVie's top-selling Humira. Now what AbbVie's management believes Humira's remaining method of use patents can keep Humira biosimilars at bay for a few more years. Last year, AbbVie spent $21 billion buying the maker of the fast-growing blockbuster leukemia and lymphoma drug Imbruvica, and earlier this year, the company acquired Rova-T, a promising anti-tumor medicine that's in early-stage trials. | On Oct. 28, AbbVie reported third-quarter sales of $6.4 billion, up 7.4% from last year, and non-GAAP EPS of $1.21, up 7.1% year over year. Humira sales accounted for roughly 64% of AbbVie's total third-quarter revenue. Image source: AbbVie Inc. What happened After competitors reported news that could negatively impact its future sales, and ahead of third-quarter results that did little to spark enthusiasm, shares in AbbVie Inc . |
26384.0 | 2016-11-02 00:00:00 UTC | Gilead's Q3 Bombshell: No More Hepatitis C R&D | ABBV | https://www.nasdaq.com/articles/gileads-q3-bombshell-no-more-hepatitis-c-rd-2016-11-02 | nan | nan | Gilead Sciences (NASDAQ: GILD) is a Goliath in hepatitis C treatment; however, the company is shifting its research spending in the future away from hepatitis C to other indications, and that decision could have big implications on the hepatitis C market in the long term. Let's take a closer look at the hepatitis C market and Gilead Sciences' decision to press the pause button on hepatitis C R&D.
Image source: Getty Images.
First, some background
Hepatitis C is one of the most lucrative indications for drugmakers, and Gilead Sciences is the dominant player in disease treatment.
The Centers for Disease Control estimates that there are 3.5 million people in the United States with hepatitis C, and that between 40% and 85% of these patients are unaware they've been infected. Globally, the World Health Organization believes between 130 and 150 million people are infected with hepatitis C, including 15 million people in Europe.
Hepatitis C has six genotypes. The most common (and easiest to treat) is genotype 1, which represents about 70% of chronic HCV infections in the United States. Of the rest, 15% to 20% of cases are genotype 2, 10% to 12% are genotype 3, 1% is genotype 4, and less than 1% are genotype 5 or 6.
Historically, hepatitis C treatment offered coin-flip cure rates and involved multidrug cocktails laden with side effects and dosed over as many as 48 weeks, but that began to change rapidly beginning in 2013. Today, cure rates have reached nearly 100%, the co-administration of drugs with unfavorable side effects has largely been eliminated, and treatment can last as few as eight weeks.
The significant shift in hepatitis C treatment is due largely to new drugs launched by Gilead Sciences. In late 2013, Gilead Sciences' won FDA approval of Sovaldi, an oral HCV therapy that's become the backbone of Gilead Sciences' HCV product lineup and is mostly used in non-genotype 1 patients. Harvoni, a combination of Sovaldi and another drug, ledipasvir, hit the market in October 2014, and it's primarily used in hepatitis 1 and hepatitis 4 patients. Also, Gilead Sciences' Epclusa, a pan-genotype therapy, won approval this summer. Eplcusa is primarily being positioned for use in genotype 2 and genotype 3 patients. Most patients are given these drugs over 12 weeks; however, roughly 45% of genotype 1 patients can be given Harvoni over an eight-week period.
In 2015, Gilead Sciences' drugs were used to treat about 90% of the 250,000 patients who started treatment in the United States, and as a result, the company's hepatitis C drugs exited 2015 with an annualized global sales run rate of roughly $20 billion.
Currently, Gilead Sciences' drugs are treating about 85% of HCV patients, and in the third quarter, U.S. patient starts were tracking at an annualized 244,000 patients. As a result, the company's global hepatitis C sales clocked in at an annualized pace of $13.3 billion in the third quarter. For perspective, the company's U.S. hepatitis C product sales were $2 billion in Q3, down 37% year over year, despite Epclusa's launch in June.
Image source: Gilead Sciences.
Shifting gears
The drop-off in hepatitis C revenue is tied to both fewer patient starts and increased competition. Many patients with advanced cases of hepatitis C have already been treated, and that's leading to a normalizing of quarterly patient starts. A healthier proportion of hepatitis C patients receiving treatment is also shifting the product mix toward the eight-week Harvoni treatment course, which costs less than the 12-week regimen.
Meanwhile, new, cheaper hepatitis C drugs from AbbVie and Merck & Co. are crimping Gilead Sciences' hepatitis C revenue because they're forcing Gilead Sciences to offer more discounts than last year.
In the wake of a maturing and more competitive market, Gilead Sciences has decided to focus its future R&D spending elsewhere. That suggests Gilead Sciences' three-drug combination pill (Sof/Vel/Vox) will be its last HCV drug -- at least for a while. Gilead Sciences' management plans to file for approval of this therapy soon, and if it's approved, it will be positioned as a salvage therapy for use in patients who have failed to be cured by other treatments.
In discussing management's decision to concentrate on other indications, CEO John F. Milligan said:
Looking forward
Gilead Sciences' news could give AbbVie and Merck & Co. an opportunity to gain share if they continue developing new therapies that can compete better. AbbVie's ABT-493 plus ABT-530 mash-up, for example, is in late-stage studies that include an eight-week dosing option. If trials are successful, that therapy could compete more effectively against the short-duration Harvoni regimen in genotype 1.
A pause in R&D development at Gilead Sciences could also give Johnson & Johnson an opportunity to win market share someday. Johnson and Johnson is evaluating a multidrug cocktail (which includes an Achillion Pharmaceuticals drug) that has shown promise over treatment periods as short as six weeks.
For now, Gilead Sciences' dominance in the indication doesn't appear to be in question, but if the company rests too heavily on its laurels, it may see its market share fall if competitors ramp up their efforts.
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Todd Campbell owns shares of Achillion Pharmaceuticals and Gilead Sciences.Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned.Like this article? Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this.
The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Johnson and Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 discussing management's decision to concentrate on other indications, CEO John F. Milligan said: Looking forward Gilead Sciences' news could give AbbVie and Merck & Co. an opportunity to gain share if they continue developing new therapies that can compete better. Meanwhile, new, cheaper hepatitis C drugs from AbbVie and Merck & Co. are crimping Gilead Sciences' hepatitis C revenue because they're forcing Gilead Sciences to offer more discounts than last year. AbbVie's ABT-493 plus ABT-530 mash-up, for example, is in late-stage studies that include an eight-week dosing option. | Meanwhile, new, cheaper hepatitis C drugs from AbbVie and Merck & Co. are crimping Gilead Sciences' hepatitis C revenue because they're forcing Gilead Sciences to offer more discounts than last year. In discussing management's decision to concentrate on other indications, CEO John F. Milligan said: Looking forward Gilead Sciences' news could give AbbVie and Merck & Co. an opportunity to gain share if they continue developing new therapies that can compete better. AbbVie's ABT-493 plus ABT-530 mash-up, for example, is in late-stage studies that include an eight-week dosing option. | Meanwhile, new, cheaper hepatitis C drugs from AbbVie and Merck & Co. are crimping Gilead Sciences' hepatitis C revenue because they're forcing Gilead Sciences to offer more discounts than last year. In discussing management's decision to concentrate on other indications, CEO John F. Milligan said: Looking forward Gilead Sciences' news could give AbbVie and Merck & Co. an opportunity to gain share if they continue developing new therapies that can compete better. AbbVie's ABT-493 plus ABT-530 mash-up, for example, is in late-stage studies that include an eight-week dosing option. | Meanwhile, new, cheaper hepatitis C drugs from AbbVie and Merck & Co. are crimping Gilead Sciences' hepatitis C revenue because they're forcing Gilead Sciences to offer more discounts than last year. In discussing management's decision to concentrate on other indications, CEO John F. Milligan said: Looking forward Gilead Sciences' news could give AbbVie and Merck & Co. an opportunity to gain share if they continue developing new therapies that can compete better. AbbVie's ABT-493 plus ABT-530 mash-up, for example, is in late-stage studies that include an eight-week dosing option. |
26385.0 | 2016-11-01 00:00:00 UTC | Here Are Johnson & Johnson's Next 10 Potential Blockbuster Drugs | ABBV | https://www.nasdaq.com/articles/here-are-johnson-johnsons-next-10-potential-blockbuster-drugs-2016-11-01 | nan | nan | When it comes to steady investments, there may be no rock more solid in the healthcare space than Johnson & Johnson (NYSE: JNJ) .
Johnson & Johnson's stability arises from the diversity of its sales and the inelasticity of its products. J&J offers its products throughout the world, and its revenue is split pretty evenly between consumer health products, medical devices, and pharmaceuticals, leading to predictable cash flow and profitability. Furthermore, since consumers can't control when they get sick or what disease or disorder they contract, J&J's products are always in demand.
Johnson & Johnson's pharma segment comes into focus
But if we take a step back and look at the bigger picture, it's Johnson & Johnson's pharmaceutical operations that are its key growth-driver. Pharmaceutical sales have grown by 9% or more in each of the past three quarters, and the high margins associated with brand-name drugs are almost entirely responsible for J&J's juicy gross margin. Between 2009 and mid-2014, J&J brought 14 novel drugs to market, half of which are generating $1 billion or more in annual sales.
Given the importance of its pharmaceutical operations in driving growth, J&J announced its intent last year to file a new drug application for 10 new molecular entities (NMEs) by 2019 that have blockbuster potential (i.e., $1 billion-plus in annual sales). What are these 10 unique NMEs? Let's have a look.
Image source: Johnson & Johnson.
Darzalex
As you can see from the presentation slide from J&J, one of its potential 10 blockbusters has already been approved by the Food and Drug Administration, though J&J has been a bit gun-shy about breaking out its sales figures thus far.
In December, GlaxoSmithKline and J&J reported that sirukumab had met its primary and secondary endpoints in the SIRROUND-D study, but the actual data wasn't released until June. That data release didn't disappoint.
The first co-primary endpoint, the inhibition of radiographic progression, or joint destruction, was significantly better in the sirukumab arm: Patients receiving 50 mg of sirukumab every four weeks had an average van der Heijde-Sharp score of 0.50, and patients receiving 100 mg every two weeks notched a 0.46. This compared to a score of 3.69 for the placebo. (A lower score represents reduced erosion and narrowing of the joints.)
The other co-primary endpoint analyzed whether patients had a 20% improvement in rheumatoid arthritis signs by week 16, known as ARC20. The aforementioned arms of 50 mg and 100 mg sirukumab dosing achieved 54.8% and 53.5% ARC20 success, respectively, compared to 26.4% for the placebo.
With rheumatoid arthritis expected to grow into a $19 billion industry by 2020, Glaxo's and J&J's sirukumab could be set up for success.
Guselkumab
A separate success story in inflammation looks to be guselkumab following recently presented phase 3 data at the European Academy of Dermatology and Venerology.
What makes imetelstat so unique is that it's the only myelofibrosis (MF) drug to demonstrate an objective response in clinical studies (albeit early-stage studies). The only FDA-approved MF drug on the market is Incyte 's(NASDAQ: INCY) Jakafi. However, Jakafi doesn't effectively slow the progression of MF, which causes bone marrow scarring. It's merely designed to minimize the symptoms of the disease, such as an enlarged spleen and anemia. Imetelstat's ability to generate an immune response against MF is huge, and it's a big reason why J&J dangled a $935 million carrot to secure the licensing right to Geron's lead drug.
Though there are never any guarantees of success when it comes to developing drugs, imetelstat's early-stage success is encouraging.
With as many as 40 label expansion opportunities by 2019 and more than 25 new molecular entities in the offing between 2020 and 2024, the future of J&J's pharmaceutical segment looks as bright and strong as ever.
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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.
The Motley Fool recommends Johnson and Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Given the importance of its pharmaceutical operations in driving growth, J&J announced its intent last year to file a new drug application for 10 new molecular entities (NMEs) by 2019 that have blockbuster potential (i.e., $1 billion-plus in annual sales). In December, GlaxoSmithKline and J&J reported that sirukumab had met its primary and secondary endpoints in the SIRROUND-D study, but the actual data wasn't released until June. Imetelstat's ability to generate an immune response against MF is huge, and it's a big reason why J&J dangled a $935 million carrot to secure the licensing right to Geron's lead drug. | Johnson & Johnson's pharma segment comes into focus But if we take a step back and look at the bigger picture, it's Johnson & Johnson's pharmaceutical operations that are its key growth-driver. Given the importance of its pharmaceutical operations in driving growth, J&J announced its intent last year to file a new drug application for 10 new molecular entities (NMEs) by 2019 that have blockbuster potential (i.e., $1 billion-plus in annual sales). The first co-primary endpoint, the inhibition of radiographic progression, or joint destruction, was significantly better in the sirukumab arm: Patients receiving 50 mg of sirukumab every four weeks had an average van der Heijde-Sharp score of 0.50, and patients receiving 100 mg every two weeks notched a 0.46. | Johnson & Johnson's pharma segment comes into focus But if we take a step back and look at the bigger picture, it's Johnson & Johnson's pharmaceutical operations that are its key growth-driver. The first co-primary endpoint, the inhibition of radiographic progression, or joint destruction, was significantly better in the sirukumab arm: Patients receiving 50 mg of sirukumab every four weeks had an average van der Heijde-Sharp score of 0.50, and patients receiving 100 mg every two weeks notched a 0.46. A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. | Given the importance of its pharmaceutical operations in driving growth, J&J announced its intent last year to file a new drug application for 10 new molecular entities (NMEs) by 2019 that have blockbuster potential (i.e., $1 billion-plus in annual sales). What makes imetelstat so unique is that it's the only myelofibrosis (MF) drug to demonstrate an objective response in clinical studies (albeit early-stage studies). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. |
26386.0 | 2016-11-01 00:00:00 UTC | AbbVie's Stock Is Suffering From a Lack of Diversification | ABBV | https://www.nasdaq.com/articles/abbvies-stock-suffering-lack-diversification-2016-11-01 | nan | nan | AbbVie 's(NYSE: ABBV) stock has been getting pummeled the last few trading sessions -- despite a slight earnings beat in the third quarter and a 12% announced hike to its dividend in 2017.
ABBV Price data by YCharts .
So why is the market throwing shade AbbVie's way? Part of the problem is undoubtedly the underperformance of AbbVie's flagship anti-inflammatory drug Humira in the third quarter. This key drug, after all, missed its consensus sales estimate by $11 million, which contributed to the drugmaker's lower-than-expected revenue for the three-month period.
That said, Humira did post an impressive 11.3% year-over-year rise in global sales. And AbbVie's net revenue did spike by a healthy 8.2% in the third quarter relative to the same period a year ago, putting the company in rarefied air among major drug-manufacturers in terms of growth.
Put simply, Humira's $11 million miss can't explain a whopping $10 billion drop in market cap in just two days, especially as this biotech continues to sport industry-leading levels of top-line growth.
Deeper fears abound
AbbVie's staggering and rapid devaluation rather appears to have its roots in Humira's forthcoming patent expiration in the U.S. at this end of this year and in European Union countries in April 2018. After all, the FDA recently approved Amgen 's(NASDAQ: AMGN) copycat drug Amjevita as the first biosimilar version of Humira in the U.S. for multiple inflammatory conditions, such as rheumatoid arthritis. Numerous other companies are racing to get their own biosimilars approved stateside as well.
That's not an encouraging trend heading into Humira's looming date with the patent cliff.
Why has AbbVie failed to diversify?
Humira's dominance is due to a mixture of the drug's continued strong growth over this period, combined with Viekira's disappointing commercial trajectory. Despite AbbVie's hopes that Viekira could cut deeply into Gilead Sciences '(NASDAQ: GILD) outsized portion of the ginormous hepatitis C market, for instance, the drug's sales actually dropped by 20.4% on an operational basis in the third quarter.
Part of this significant drop-off owes partly to the fact that the hepatitis C market has apparently reached its zenith in terms of overall prescriptions and pricing power, underscored by Gilead's well-publicized struggles . But the deeper issue is that Viekira was never really able to eat into Gilead's market share in a meaningful way. And with newer medications with shorter treatment times starting to hit the market, Viekira's sales will probably only continue to head south, putting an even heavier burden on Imbruvica to pick up the slack.
The good news is that Imbruvica's sales have been skyrocketing lately, rising by a noteworthy 64.5% in the third quarter compared to a year ago. However, this top cancer drug still has a long way to go before it can make a significant dent in Humira's overwhelming contribution to AbbVie's top line. Imbruvica, after all, is on track to generate $1.9 billion in revenue for the drugmaker this year -- compared to Humira's staggering $15 billion-plus.
Key takeaways
The bottom line is that Imbruvica simply cannot make up for any shortfall if biosimilars do somehow make it to market next year in the U.S. So even though this black swan-type event is highly unlikely, the fact remains that AbbVie isn't prepared for it right now -- and the market is apparently expressing its displeasure with this turn of events.
In the longer term, AbbVie is betting that Humira's sales will exceed $18 billion by 2020. If that line holds, then AbbVie probably won't be any closer to moving away from its over-reliance on this single drug to drive growth than it is today. So investors should probably brace themselves for more emotionally charged price swings moving forward.
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The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
George Budwell has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Deeper fears abound AbbVie's staggering and rapid devaluation rather appears to have its roots in Humira's forthcoming patent expiration in the U.S. at this end of this year and in European Union countries in April 2018. Despite AbbVie's hopes that Viekira could cut deeply into Gilead Sciences '(NASDAQ: GILD) outsized portion of the ginormous hepatitis C market, for instance, the drug's sales actually dropped by 20.4% on an operational basis in the third quarter. AbbVie 's(NYSE: ABBV) stock has been getting pummeled the last few trading sessions -- despite a slight earnings beat in the third quarter and a 12% announced hike to its dividend in 2017. | However, this top cancer drug still has a long way to go before it can make a significant dent in Humira's overwhelming contribution to AbbVie's top line. AbbVie 's(NYSE: ABBV) stock has been getting pummeled the last few trading sessions -- despite a slight earnings beat in the third quarter and a 12% announced hike to its dividend in 2017. ABBV Price data by YCharts . | And AbbVie's net revenue did spike by a healthy 8.2% in the third quarter relative to the same period a year ago, putting the company in rarefied air among major drug-manufacturers in terms of growth. Despite AbbVie's hopes that Viekira could cut deeply into Gilead Sciences '(NASDAQ: GILD) outsized portion of the ginormous hepatitis C market, for instance, the drug's sales actually dropped by 20.4% on an operational basis in the third quarter. AbbVie 's(NYSE: ABBV) stock has been getting pummeled the last few trading sessions -- despite a slight earnings beat in the third quarter and a 12% announced hike to its dividend in 2017. | ABBV Price data by YCharts . AbbVie 's(NYSE: ABBV) stock has been getting pummeled the last few trading sessions -- despite a slight earnings beat in the third quarter and a 12% announced hike to its dividend in 2017. So why is the market throwing shade AbbVie's way? |
26387.0 | 2016-11-01 00:00:00 UTC | 4 Dividend Champions On Sale (T, VFC, AFL, CVX) | ABBV | https://www.nasdaq.com/articles/4-dividend-champions-on-sale-t-vfc-afl-cvx-2016-11-01 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I usually look at dividend growth stocks and their dividend increases every week, as part of my portfolio monitoring process.
In this weekly review, I have highlighted four dividend champions, which recently raised distributions. The common denominator behind each of these dividend champions is that they seem attractively valued today .
The reason why these companies appear attractively valued in an otherwise expensive marketplace for securities, is because market participants have doubts about each of these companies and their earnings prospects.
It is up to the enterprising dividend investor to analyze those opportunities , and determine if they are appropriate additions for their income portfolios.
As a rule, I try to invest at attractive entry valuations in companies that have a track record of annual dividend increases, which is fueled by earnings growth.
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The goal is to buy such a company without overpaying for it,to hold on to it, as it earns more, and pays me a dividend to hold to it.
The four companies in I've decided to include for this week all fit these criteria.
Let's get started…
Dividend Champions On Sale: AT&T Inc. (T)
AT&T Inc. ( T ) provides telecommunications and digital entertainment services. The company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility, and International.
The company raised its quarterly dividend by 2.10% to 49 cents per share. This marked the 33rd consecutive annual dividend increase for this dividend champion . Over the past decade, AT&T has managed to raise dividends at an average annual rate of 3.80% per year.
Dividend growth has been slowing down even further in the past five years to a little over 2%/year. Currently, the stock looks attractively valued at 12.80 times forward earnings and an yield of 5.40%.
Check my analysis of AT&T for more information.
The stock has been selling off, after announcing its intention to acquire Time Warner Inc ( TWX ) for cash and stock. Some investors are nervous, because AT&T has been on an acquisition spree recently, and had announced that it was going to focus on reducing debt. Others are concerned that this acquisition is a sign of a bubble in the debt markets, fueled by low interest rates. A third group is comparing the AT&T acquisition of Time Warner with the acquisition of Time Warner by America Online at the height of the dot-com bubble in 2000. That last deal was one of the worst in history.
The difference however is that both AT&T and Time Warner have reasonable valuations today. In contrast, America Online was selling at something like hundreds of times earnings in 2000. This is the main reason why the AOL stock price collapsed after it acquired Time Warner - it was simply overvalued. I could argue that AT&T at 12..80 times forward earnings and Time Warner at 16.30 times forward earnings are not really that expensive.
The move by AT&T is likely caused by the company's desire to diversify its income streams beyond the highly competitive US telecom market. While AT&T and Verizon Communications Inc. ( VZ ) have enjoyed high profitability, as their next two competitors were struggling, competition seems to be intensifying. This could likely put pressure on profits for a sector that requires a lot in capital spending merely to keep up with the technology.
I have not been very bullish on the telecom sector as a whole due to the competitive pressure discussed before. I do hold shares in Verizon and Vodafone Group Plc (ADR) ( VOD ). I have held on some AT&T shares from time to time, mostly because I occasionally sell puts on the stock. If those puts are ever exercised, I obtain the stock and then immediately sell covered calls against the stock so that I get rid of it. I have done well with this strategy, which is perfect for a stock that I do not expect to move much over time.
The fact that the company has been unable to grow earnings per share has meant that future growth in dividends will be limited at best. The lack of earnings growth, coupled with a high dividend payout ratio, and an increase in debt really makes me think twice about the sustainability of the dividend on a go forward basis. There is always the risk that the synergies promised when a deal is announced do not materialize, because integrating business cultures, different systems and different business models is very difficult to achieve.
That being said, AT&T has done a good job integrating acquisitions since it was spun-off as SBC Communications back in 1983 from the original Ma-Bell AT&T. The current AT&T was originally known as SBC Communications, and it was formed in 1983, when the original telephone monopoly AT&T spun-off seven of its subsidiaries.
After a series of mergers and acquisitions, SBC Communications acquired AT&T a decade or so ago, and then changed its name to AT&T. Therefore I do have high hopes that the deal stands a higher chance of achieving earnings improvement if it is approved in its current form. While AT&T and Time Warner estimate the deal to be completed by 2017, there is still a high likelihood that the US Government will block that acquisition. If the deal doesn't go through, the risk of a dividend cut will be much lower in my opinion.
All of that being said, I find the stock to be attractively valued at 12.80 times earnings. I find the forward payout ratio of 69% to be a little high, though I still think that the dividend is sustainable as long as management does not let debt get out of control. Given the fact that everyone is expecting lousy returns from the US stock market over the next decade, and the lack of earnings growth for major US corporations as a whole, AT&T could deliver a 5.40% return to shareholders even if earnings per share never increased, and the stock price stayed stagnant forever. That return would be generated by mere collecting of the generous 5.40% dividend yield, as long as the dividend is maintained.
In fact, I may turn even more bullish on AT&T if that acquisition of Time Warner does not close, because there will be less new debt on the books, and we also won't have to worry about the dilutive effect of new shares that AT&T will have to pay high dividends on.
Dividend Champions On Sale: VF Corp (VFC)
VF Corp ( VFC ) engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products in the United States and Europe. The company raised its quarterly dividend by 13.50% to 42 cents per share.
This marked the 44th consecutive annual dividend increase for this dividend champion . Over the past decade, V.F. Corporation has managed to raise dividends at an average annual rate of 17.10%/year. Currently, the stock looks attractively valued at 17 times forward earnings and yields 3.10%.
The company has transformed itself into a designer and marketer of casual lifestyle brands in the US. The company focuses on its Outdoor & Action sports, Sportswear and Contemporary brands lifestyle businesses. Increasingly, I see many people wearing jackets with the "North Face" logo, either at work or in the streets. Another growth factor could be expansion into international markets, as well as strategic shifting of focus to more profitable brands. The company has a history of making acquisitions work, as evidenced by Vans and North Face deals in the early 2000s. The company delivers a quality product at an attractive price point for consumers.
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V.F. Corp has had a strong track record of growing sales, making acquisitions work, and earning more in order to grow the dividend to shareholders.
Dividend Champions On Sale: AbbVie Inc (ABBV)
AbbVie Inc ( ABBV ) discovers, develops, manufactures, and sells pharmaceutical products worldwide. It was formed in 2013, as a result of the spin-off from the legacy Abbott Laboratories ( ABT ). I believe that both the new Abbott and Abbvie should get credit for the long track record of annual dividend increases from the legacy Abbott. This view is further strengthened by the fact that both spin-offs have kept up the tradition of annual dividend increases. Abbvie recently raised its quarterly dividend by 12.30% to 64 cents per share. The stock is attractively valued at 12 times expected earnings and a dividend yield of 4.40%.
The biggest risk with Abbvie is that the drug Humira that treats rheumatoid arthritis accounts for 64% of revenues, which is very high. This drug is coming off patent protection in the US at the end of 2016 and Europe in 2018. The company claims that due to the biosimilar structure of the drug, and the patents surrounding it, it would be difficult to replicate by competitors until the early 2020s. Management has indicated that they would try to maintain exclusivity of Humira until 2022. The company also has promising new drugs in the pipelines. Two other growing drugs include Imbruvica and Viekira, but they account for less than 16% of sales.
The nice thing is that Abbvie is also diversifying its product base by acquisitions. In 2015 it acquired Pharmacyclics, and bought the drug Imbruvica. The sales of this drug are expected to grow from $1.30 billion in 2015 to $5 billion by 2020. Abbvie also closed an acquisition of Stemcentrix, which has several compounds in trials. In general, the company expects double digit growth in earnings per share through 2020, fueled by introduction of 20 new compounds (which are in phase 2 and 3), and protecting its sales of Humira. Depending on how things unfold over the next decade, Abbvie could either look like a steal today or a value trap.
Dividend Champions On Sale: AFLAC (AFL)
AFLAC Incorporated ( AFL ) is the world's largest underwriter of supplemental cancer insurance, which it sells through independent and corporate agencies and bank and post offices in Japan. AFLAC also sells life, health, Medicare supplement, accident, and long-term convalescent care policies.
The company raised its quarterly dividend by 4.90% to 43 cents per share. This action extends the streak of annual dividend increases for Aflac to 34 years in a row. Over the past decade, Aflac has boosted its dividend by 13.60% over year. Over the past five years however, this dividend champion has only managed to boost dividends at a rate of 6.70% per year. It is attractively valued at 11.20 times earnings and a current yield of 2.50%. Check my analysis of Aflac for more information.
Dividend growth has been slowing down for Aflac in recent years, due to softer earnings per share. Since 70% of the company's business originates in Japan, its US dollar earnings are susceptible to fluctuations in the Japanese Yen. The other challenge for Aflac is investing its insurance premiums in the low interest environment worldwide. Negative interest rates in the land of the rising sun are not helping out either. If interest rates increase, this would definitely help Aflac grow its bottom line much faster.
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On the other hand, the company's future growth will also be dependent on new product offerings and expanding its distribution channels in order to sell more policies (while also maintaining a focus on policy profitability as well).
Dividend Champions On Sale: Chevron Corporation (CVX)
The last company is not attractively valued by any measure. In fact, a lot of investors believe the company to be massively overvalued. Nevertheless, I am including this company, because it is a widely held dividend champion which recently raised its quarterly dividends. This move defied investor expectations. I have observed many investors who sold out of the stock earlier this year after oil prices declined, because they probably allowed negative news and fears of a possible dividend cut to influence them into selling.
The company is Chevron Corporation ( CVX ). It recently raised its quarterly dividend by a penny to $1.08 per share. Chevron is a dividend champion , which has managed to boost dividends for 29 years in a row. Given the earnings estimates of $1.19 per share for 2016 and $4.45 per share for 2017, I view the stock as overvalued. When energy prices are low , earnings per share are also depressed from one-time asset impairments. From an operational perspective however, low energy prices could provide the opportunity to acquire producing assets at a value price.
My historical analysis of Exxon showed that those ugly financials may not be a good reason to sell an integrated energy company, due to the cyclical nature of prices. In other words, when financials look ugly, this is after prices have fallen. If prices rebound, the financials will likely look better. That being said, if energy prices stay low, companies like Chevron may have to do the unthinkable and cut distributions. Even using the optimistic earnings of $4.45 for 2017, the dividend is not well covered. I would continue holding on to Chevron, but would allocate dividends elsewhere. Unfortunately, the 4.20% yield is not sustainable at current levels.
If you buy the stock today, you'd better hope for higher oil prices down the road.
Thank you for reading!
Full Disclosure: Long VFC, AFL, ABBV, CVX, ABT, XOM, VOD, and short AT&T puts
The post 4 Dividend Champions On Sale (T, VFC, AFL, CVX) 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. | Dividend Champions On Sale: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) discovers, develops, manufactures, and sells pharmaceutical products worldwide. I believe that both the new Abbott and Abbvie should get credit for the long track record of annual dividend increases from the legacy Abbott. Abbvie recently raised its quarterly dividend by 12.30% to 64 cents per share. | Dividend Champions On Sale: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) discovers, develops, manufactures, and sells pharmaceutical products worldwide. I believe that both the new Abbott and Abbvie should get credit for the long track record of annual dividend increases from the legacy Abbott. Abbvie recently raised its quarterly dividend by 12.30% to 64 cents per share. | Dividend Champions On Sale: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) discovers, develops, manufactures, and sells pharmaceutical products worldwide. I believe that both the new Abbott and Abbvie should get credit for the long track record of annual dividend increases from the legacy Abbott. Abbvie recently raised its quarterly dividend by 12.30% to 64 cents per share. | Dividend Champions On Sale: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) discovers, develops, manufactures, and sells pharmaceutical products worldwide. I believe that both the new Abbott and Abbvie should get credit for the long track record of annual dividend increases from the legacy Abbott. Abbvie recently raised its quarterly dividend by 12.30% to 64 cents per share. |
26388.0 | 2016-11-01 00:00:00 UTC | Dividend Income Digest: Is Realty Income A Buy? What About AbbVie? And Why Is D&I A Good Strategy After All? | ABBV | https://www.nasdaq.com/articles/dividend-income-digest-realty-income-buy-what-about-abbvie-and-why-di-good-strategy-after | nan | nan | By SA Gil Weinreich :
In the wake of Robyn Conti's departure as D&I editor, I have had the unique privilege of learning about an area I admit to not having had a wealth of knowledge about previously. Learning about something new is always very exciting. So I wanted to share with you some of the insights I have picked up and some of the questions I have, knowing that SA's D&I community will educate me, and each other, as you always have.
My first insight is that D&I has an enormous advantage from a behavioral standpoint. If investors accustom themselves to living off the income their investments are yielding, they can leave their principal intact and worry less about market upheaval. What's more, companies that pay dividends are bigger and more stable and thus less volatile, which grants their investors greater peace of mind and thus the ability to stick to their investments. And finally, investors who successfully target companies that are increasing their dividends can content themselves in the knowledge that they can also beat inflation while living off their investments in retirement. Oh, yeah, one more plus: as a group, dividend companies have a greater than average global exposure, so a portfolio of dividend-paying stocks is quite well diversified.
Equity purists who prefer higher-growth companies should acknowledge that D&I investors - even if they're not getting all the growth available on the table - are capturing most of it. Equities pay investors a risk premium whether they pay dividends or not.
If you're with me so far, D&I looks like a great strategy. So here are my questions:
What do you do about sector diversification? Sure, you're covered around the globe. But there are sectors within the U.S. - high tech in particular - that are not big on dividends, so investors risk missing out on the most dynamic sector of the economy.
How do you manage the higher tax impact of dividend investments? I'm sure there are ways, like just keeping such investments in tax-sheltered accounts, but would love to learn more about this.
Why not put your money in a cheap dividend-growth ETF and for a low fee and let someone else constantly monitor this ever changing area? Just curious as to the thinking on that.
Please share your thoughts in the comments section. In the meantime, here is some of our recent stand-out D&I content:
Stefan Redlich: Why I had to add AbbVie ( ABBV ) on the 7% drop Friday.
Dividend Sensei finally bought Reality Income ( O )…
But Ian Bezek expects O's sell-off to continue and sees little real return opportunity for now.
And Adam Aloisi chimes in on the topic as well.
Rida Morwa: Newtek Business Services ' ( NEWT ) 10.8% yield could be the new big winner in your portfolio.
Arbitrage Trader calls MDLX ( MDLY ) a rare find in the hunt for yield , with a 7.4% yield to maturity, A- rating, and trading under par.
BDC Buzz reaches for yield through…BDCs.
David Van Knapp asks which "millennial" stocks will become future dividend champions .
See also Aethlon Medical's ( AEMD ) CEO Jim Joyce on Q2 2017 Results - Earnings Call Transcript on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the meantime, here is some of our recent stand-out D&I content: Stefan Redlich: Why I had to add AbbVie ( ABBV ) on the 7% drop Friday. By SA Gil Weinreich : In the wake of Robyn Conti's departure as D&I editor, I have had the unique privilege of learning about an area I admit to not having had a wealth of knowledge about previously. And finally, investors who successfully target companies that are increasing their dividends can content themselves in the knowledge that they can also beat inflation while living off their investments in retirement. | In the meantime, here is some of our recent stand-out D&I content: Stefan Redlich: Why I had to add AbbVie ( ABBV ) on the 7% drop Friday. Equities pay investors a risk premium whether they pay dividends or not. See also Aethlon Medical's ( AEMD ) CEO Jim Joyce on Q2 2017 Results - Earnings Call Transcript on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the meantime, here is some of our recent stand-out D&I content: Stefan Redlich: Why I had to add AbbVie ( ABBV ) on the 7% drop Friday. What's more, companies that pay dividends are bigger and more stable and thus less volatile, which grants their investors greater peace of mind and thus the ability to stick to their investments. And finally, investors who successfully target companies that are increasing their dividends can content themselves in the knowledge that they can also beat inflation while living off their investments in retirement. | In the meantime, here is some of our recent stand-out D&I content: Stefan Redlich: Why I had to add AbbVie ( ABBV ) on the 7% drop Friday. Learning about something new is always very exciting. So I wanted to share with you some of the insights I have picked up and some of the questions I have, knowing that SA's D&I community will educate me, and each other, as you always have. |
26389.0 | 2016-10-29 00:00:00 UTC | 3 Things AbbVie's Management Said While Its Stock Got Hammered | ABBV | https://www.nasdaq.com/articles/3-things-abbvies-management-said-while-its-stock-got-hammered-2016-10-29 | nan | nan | Friday wasn't a good day for AbbVie (NYSE: ABBV) . The company announced its third-quarter results shortly before the market opened. AbbVie's stock fell over 6% in pre-market trading and didn't do much better the rest of the day. Here's what the company's management said while AbbVie stock was being hammered. (All quotes courtesy of S&P Global Market Intelligence .)
Image source: Getty Images.
1. Humira sales are tracking with expectations
Nothing is more important to AbbVie than Humira. The autoimmune disease drug generated over 60% of AbbVie's total revenue in the third quarter. A lot of the discussion on the company'searnings callrelated to Humira and what seems to be slowing momentum.
AbbVie CEO Rick Gonzalez said that Humira is "performing exactly where we would have expected it to perform in the international markets" and has had "outstanding growth" in the U.S. Gonzalez said that biosimilars that are now available outside of the U.S. are only having a "very modest impact" on Humira's sales.
But what about the slowdown in sequential sales growth for the drug? AbbVie CFO Bill Chase said, "It is not unusual in the U.S. or abroad to see a general flattening out over the summer and then an acceleration back in the back half of the year." Chase thinks that is what happened in the third quarter. He added that the company "feels very, very good" about the full-year growth forecast for Humira.
2. Imbruvica is just getting started
There weren't any worries about Imbruvica losing momentum. Sales for the cancer drug soared in the third quarter. AbbVie's message about Imbruvica: Even better things should be ahead.
Gonzalez said that Imbruvica's "market share position is steadily increasing" in the front-line chronic lymphocatic leukemia (CLL) indication. He noted that the drug already holds the market-leading position as a second-line treatment for CLL and for relapsed/refractory mantle cell lymphoma and Waldenstroem's macroglobulinemia. AbbVie awaits regulatory approval for Imbruvica in treating relapsed/refractory marginal zone lymphoma and expects to submit for approval for treating chronic graft-versus-host disease in the first half of 2017.
Imbruvica could face competition relatively soon from AstraZeneca 's(NYSE: AZN) acalabrutinib. AstraZeneca has stated that it plans to submit its drug for regulatory approval by the end of 2016 but didn't specify for which indication. AbbVie's management was asked twice about the possible threat from AstraZeneca. Mike Severino, AbbVie's chief scientific officer, acknowledged that he was aware that acalabrutinib could be moving toward approval but focused on the great potential for Imbruva.
3. As far as Viekira, um, well...
AbbVie's executives mentioned Viekira all of two times during the company'searnings call Once was to briefly mention strong international performance from the hepatitis C drug. The second brief statement referenced declining U.S. sales. AbbVie CFO William Chase said that Viekira had "seen market share loss and some price erosion due to the entrance of a new competitor in the market."
Who was that new competitor? Zepatier. Merck (NYSE: MRK) launched its hep C drug earlier this year. The entrance of Zepatier accounted for some of that market-share loss mentioned by Chase. Merck was squarely behind Viekira's price erosion. The drugmaker priced Zepatier lower than other hep C drugs on the market, forcing AbbVie and Gilead Sciences (NASDAQ: GILD) to offer discounts on their products.
AbbVie undoubtedly knows Viekira's best days are behind it. Sales for the drug plunged nearly 20% in the third quarter compared to the prior-year period. Management talked more about the new hepatitis C combo treatment that it expects to launch next year. This combo will be taken once per day and will treat all genotypes of hep C.
However, no one on AbbVie's team discussed the fact that Gilead has already hit the market with its own pan-genotypic once-daily combo. Epclusa was approved by the FDA on June 28 and saw huge sales in just three days at the end of the second quarter.
Looking ahead
AbbVie's executives did exactly what they're supposed to do: paint as pretty a picture about the company's prospects as they can. What does that picture really look like?
Humira should still keep on plugging along, but sooner or later growth won't just slow down. It will evaporate. AbbVie must get success from newer drugs and its pipeline. Imbruvica is a cornerstone for its strategy to build revenue outside of Humira. The company also needs more winners and is likely to get one with Elagolix, which should be submitted for approval in treating endometriosis next year.
I think the scenario for AbbVie still looks pretty good over the next two or three years. Beyond that point, the picture of the company's prospects is like a Monet painting: a little fuzzy.
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Keith Speights owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Mike Severino, AbbVie's chief scientific officer, acknowledged that he was aware that acalabrutinib could be moving toward approval but focused on the great potential for Imbruva. The drugmaker priced Zepatier lower than other hep C drugs on the market, forcing AbbVie and Gilead Sciences (NASDAQ: GILD) to offer discounts on their products. Friday wasn't a good day for AbbVie (NYSE: ABBV) . | AbbVie awaits regulatory approval for Imbruvica in treating relapsed/refractory marginal zone lymphoma and expects to submit for approval for treating chronic graft-versus-host disease in the first half of 2017. AbbVie CFO William Chase said that Viekira had "seen market share loss and some price erosion due to the entrance of a new competitor in the market." The drugmaker priced Zepatier lower than other hep C drugs on the market, forcing AbbVie and Gilead Sciences (NASDAQ: GILD) to offer discounts on their products. | AbbVie CEO Rick Gonzalez said that Humira is "performing exactly where we would have expected it to perform in the international markets" and has had "outstanding growth" in the U.S. Gonzalez said that biosimilars that are now available outside of the U.S. are only having a "very modest impact" on Humira's sales. AbbVie CFO William Chase said that Viekira had "seen market share loss and some price erosion due to the entrance of a new competitor in the market." The drugmaker priced Zepatier lower than other hep C drugs on the market, forcing AbbVie and Gilead Sciences (NASDAQ: GILD) to offer discounts on their products. | Here's what the company's management said while AbbVie stock was being hammered. AbbVie CFO William Chase said that Viekira had "seen market share loss and some price erosion due to the entrance of a new competitor in the market." AbbVie undoubtedly knows Viekira's best days are behind it. |
26390.0 | 2016-10-28 00:00:00 UTC | AbbVie (ABBV) Q3 Earnings in Line, Revenues Lag Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q3-earnings-in-line-revenues-lag-estimates-2016-10-28 | nan | nan | AbbVie Inc.ABBV reported third quarter 2016 earnings of $1.21 per share, in-line with the Zacks Consensus Estimate but up 7.1% from the year-ago quarter.
FindTheCompany | Graphiq
Revenues increased 8.2% to $6.43 billion in the third quarter but missed the Zacks Consensus Estimate of $6.55 billion.
The Quarter in Details
Key drug Humira recorded growth of 11.3% with revenues coming in at $4.1 billion. Growth across all three major market categories - rheumatology, dermatology and gastroenterology - drove the upside. Sales in the U.S. increased 16.7% ($2.7 billion) while sales in the ex-U.S. market were up 4.5% to $1.4 billion. Growing awareness, favorable clinical data, additional indications and expansion into new markets should help the product to continue making significant contributions to the top line.
Other products that performed well include Duodopa ($74 million) and Creon ($187 million).
HCV product Viekira recorded sales of $378 million, up 32.5%. Sales were, however, down 9.8% sequentially.
AbbVie recorded Imbruvica U.S. sales of $437 million and $64 million of international profit sharing.
2016 Outlook Raised
AbbVie raised its 2016 earnings per share outlook to $4.80-$4.82 from the previous range of $4.73-$4.83. The Zacks Consensus Estimate is currently pegged at $4.82 per share.
ABBVIE INC Price, Consensus and EPS Surprise
ABBVIE INC Price, Consensus and EPS Surprise | ABBVIE INC Quote
Our Take
AbbVie delivered mixed third-quarter results with in-line earnings and lower-than-expected revenue. Humira and Imbruvica continued to perform well, while Viekira continues to feel the impact of additional competition and label update.
With several companies striving to bring Humira biosimilars to the market, AbbVie has been focusing on diversifying its revenue base and lowering its dependence on the product.
Zacks Rank & Key Picks
AbbVie currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. INFI , BioMarin Pharmaceutical Inc. BMRN and Exelixis, Inc. EXEL . Both, Infinity and BioMarin sport a Zacks Rank #1 (Strong Buy) while Exelixis carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Infinity's loss per share estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all the four trailing quarters with an average beat of 67.62%.
BioMarin's loss per share estimates narrowed from 28 cents to 25 cents for 2016 and from $1.16 to $1.11 for 2017 over the last 60 days.
Exelixis' loss per share estimates narrowed from 71 cents to 63 cents for 2016 and from 19 cents to earnings of 2 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the four trailing quarters with an average beat of 9.1%.
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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 several companies striving to bring Humira biosimilars to the market, AbbVie has been focusing on diversifying its revenue base and lowering its dependence on the product. AbbVie Inc.ABBV reported third quarter 2016 earnings of $1.21 per share, in-line with the Zacks Consensus Estimate but up 7.1% from the year-ago quarter. AbbVie recorded Imbruvica U.S. sales of $437 million and $64 million of international profit sharing. | ABBVIE INC Price, Consensus and EPS Surprise ABBVIE INC Price, Consensus and EPS Surprise | ABBVIE INC Quote Our Take AbbVie delivered mixed third-quarter results with in-line earnings and lower-than-expected revenue. Click to get this free report BIOMARIN PHARMA (BMRN): Free Stock Analysis Report EXELIXIS INC (EXEL): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV reported third quarter 2016 earnings of $1.21 per share, in-line with the Zacks Consensus Estimate but up 7.1% from the year-ago quarter. | AbbVie Inc.ABBV reported third quarter 2016 earnings of $1.21 per share, in-line with the Zacks Consensus Estimate but up 7.1% from the year-ago quarter. ABBVIE INC Price, Consensus and EPS Surprise ABBVIE INC Price, Consensus and EPS Surprise | ABBVIE INC Quote Our Take AbbVie delivered mixed third-quarter results with in-line earnings and lower-than-expected revenue. Click to get this free report BIOMARIN PHARMA (BMRN): Free Stock Analysis Report EXELIXIS INC (EXEL): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV reported third quarter 2016 earnings of $1.21 per share, in-line with the Zacks Consensus Estimate but up 7.1% from the year-ago quarter. AbbVie recorded Imbruvica U.S. sales of $437 million and $64 million of international profit sharing. 2016 Outlook Raised AbbVie raised its 2016 earnings per share outlook to $4.80-$4.82 from the previous range of $4.73-$4.83. |
26391.0 | 2016-10-28 00:00:00 UTC | Notable Friday Option Activity: CBI, ABBV, STRP | ABBV | https://www.nasdaq.com/articles/notable-friday-option-activity-cbi-abbv-strp-2016-10-28 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Chicago Bridge & Iron Co., N.V. (Symbol: CBI), where a total volume of 7,906 contracts has been traded thus far today, a contract volume which is representative of approximately 790,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.2% of CBI's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $30 strike call option expiring November 18, 2016 , with 1,844 contracts trading so far today, representing approximately 184,400 underlying shares of CBI. Below is a chart showing CBI's trailing twelve month trading history, with the $30 strike highlighted in orange:
AbbVie Inc. (Symbol: ABBV) options are showing a volume of 29,545 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 57.8% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Particularly high volume was seen for the $57.50 strike put option expiring October 28, 2016 , with 4,109 contracts trading so far today, representing approximately 410,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $57.50 strike highlighted in orange:
And Straight Path Communications Inc (Symbol: STRP) options are showing a volume of 588 contracts thus far today. That number of contracts represents approximately 58,800 underlying shares, working out to a sizeable 56.2% of STRP's average daily trading volume over the past month, of 104,715 shares. Especially high volume was seen for the $55 strike call option expiring January 20, 2017 , with 173 contracts trading so far today, representing approximately 17,300 underlying shares of STRP. Below is a chart showing STRP's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for CBI options , ABBV options , or STRP 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 $57.50 strike put option expiring October 28, 2016 , with 4,109 contracts trading so far today, representing approximately 410,900 underlying shares of ABBV. Below is a chart showing CBI's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc. (Symbol: ABBV) options are showing a volume of 29,545 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 57.8% of ABBV's average daily trading volume over the past month, of 5.1 million shares. | Below is a chart showing CBI's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc. (Symbol: ABBV) options are showing a volume of 29,545 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 57.8% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Particularly high volume was seen for the $57.50 strike put option expiring October 28, 2016 , with 4,109 contracts trading so far today, representing approximately 410,900 underlying shares of ABBV. | That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 57.8% of ABBV's average daily trading volume over the past month, of 5.1 million shares. Below is a chart showing CBI's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc. (Symbol: ABBV) options are showing a volume of 29,545 contracts thus far today. Particularly high volume was seen for the $57.50 strike put option expiring October 28, 2016 , with 4,109 contracts trading so far today, representing approximately 410,900 underlying shares of ABBV. | Particularly high volume was seen for the $57.50 strike put option expiring October 28, 2016 , with 4,109 contracts trading so far today, representing approximately 410,900 underlying shares of ABBV. Below is a chart showing STRP's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for CBI options , ABBV options , or STRP options , visit StockOptionsChannel.com. Below is a chart showing CBI's trailing twelve month trading history, with the $30 strike highlighted in orange: AbbVie Inc. (Symbol: ABBV) options are showing a volume of 29,545 contracts thus far today. |
26392.0 | 2016-10-28 00:00:00 UTC | Timeout from Q3 Earnings: GDP +2.9% | ABBV | https://www.nasdaq.com/articles/timeout-q3-earnings-gdp-29-2016-10-28 | nan | nan | Friday, October 28, 2016
Taking a break for a moment from the Q3 earnings deluge - which continues, and will remain heavy next week and beyond - to report on our first read of Q3 Gross Domestic Product (GDP). At 2.9%, we are seeing a snap-back from below-trend growth earlier in the year, heating up higher than expectations. This is the highest read on GDP in two years.
Analysts had been starting to look at 3% growth in 2016 as something of a pipe dream lately, with the final read on Q2 GDP at a relatively paltry 1.4%. In fact, core GDP quarter over quarter is actually down from Q2 - 1.7% versus 1.8% last time.
So what accounts for this upswing? Exports are +10%. As economies in both developing and developed nations gain sounder footing, demand for U.S. products has grown, even with a stronger dollar in play. Where we see negative numbers are in things like equipment (-2.7%), which appears to have been affected by persistently low oil prices .
As a result, we see the 10-year bond yield inching upward to 1.8% - still way below historic averages, but higher than the 1.7% it had been stuck at all summer. As we continue to see economic metrics strengthening, we will keep our eye on things like the 10-year a bit more closely.
Q3 Earnings Plod Along
Exxon Mobil XOM posted mixed Q3 earnings results - 63 cents per share beat the 60 cents we had expected, though revenues of $58.68 billion in the quarter was light the $60.56 billion in the Zacks consensus. The company's barrels of oil equivalent produced per day was down 2.7%.
AutoNation AN also missed top-line expectations, and came in 10 cents light on the bottom line, as well. $1.05 per share marks the second negative earnings surprise in the past four quarters. Takeda airbag problems that have hit the company's supply chain persist.
Humira manufacturer AbbVie ABBV just met earnings estimates of $1.21 per share while falling short of the $6.55 billion in sales, reporting $6.43 billion. The company did tighten its full-year earnings guidance to $4.80-4.82 per share.
Has anyone outperformed this morning? Sure - Mastercard MA put up $1.08 per share, outpacing the 98 cents expected. Sales of $2.9 billion in the quarter topped the $2.74 billion in the Zacks consensus estimate.
Mark Vickery
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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. | Humira manufacturer AbbVie ABBV just met earnings estimates of $1.21 per share while falling short of the $6.55 billion in sales, reporting $6.43 billion. Click to get this free report AUTONATION INC (AN): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report MASTERCARD INC (MA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Friday, October 28, 2016 Taking a break for a moment from the Q3 earnings deluge - which continues, and will remain heavy next week and beyond - to report on our first read of Q3 Gross Domestic Product (GDP). | Click to get this free report AUTONATION INC (AN): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report MASTERCARD INC (MA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Humira manufacturer AbbVie ABBV just met earnings estimates of $1.21 per share while falling short of the $6.55 billion in sales, reporting $6.43 billion. Q3 Earnings Plod Along Exxon Mobil XOM posted mixed Q3 earnings results - 63 cents per share beat the 60 cents we had expected, though revenues of $58.68 billion in the quarter was light the $60.56 billion in the Zacks consensus. | Humira manufacturer AbbVie ABBV just met earnings estimates of $1.21 per share while falling short of the $6.55 billion in sales, reporting $6.43 billion. Click to get this free report AUTONATION INC (AN): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report MASTERCARD INC (MA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Q3 Earnings Plod Along Exxon Mobil XOM posted mixed Q3 earnings results - 63 cents per share beat the 60 cents we had expected, though revenues of $58.68 billion in the quarter was light the $60.56 billion in the Zacks consensus. | Humira manufacturer AbbVie ABBV just met earnings estimates of $1.21 per share while falling short of the $6.55 billion in sales, reporting $6.43 billion. Click to get this free report AUTONATION INC (AN): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report MASTERCARD INC (MA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. This is the highest read on GDP in two years. |
26393.0 | 2016-10-28 00:00:00 UTC | The Zacks Analyst Blog Highlights: Biogen, Merck, Eli Lilly, AbbVie and ImmunoGen | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-biogen-merck-eli-lilly-abbvie-and-immunogen-2016-10-28 | nan | nan | For Immediate Release
Chicago, IL - October 28, 2016 - 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 Biogen Inc (NASDAQ: BIIB - Free Report ), Merck & Co., Inc (NYSE: MRK - Free Report ), Eli Lilly and Company (NYSE: LLY - Free Report ), AbbVie Inc.(NYSE: ABBV - Free Report) and ImmunoGen, Inc.(NASDAQ: IMGN - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Peek into Drug Stocks Pre-Q3 Earnings Friday
The third-quarter earnings season is seeing possibly the best growth pace since the first quarter of 2015. As of Oct 26, 198 S&P 500 members (as of Oct 26), accounting for 48.9% of the index's total market capitalization, have reported results, according to the Earnings Trends report.
While total earnings for these 198 index members were up 3.2% from the year-ago quarter, revenues were up 1.9% year over year. The beat ratio was 73.7% for earnings and 61.1% for revenues. The Q3 earnings season has seen more positive surprises and fewer negative revisions to the current-period (2016 Q4) estimates.
Notably, the third quarter is on track to be the first quarter for positive earnings growth after five consecutive quarters of earnings decline for the S&P 500 index. The picture is expected to steadily improve hereafter.
Among other pharma companies that reported this week, Biogen Inc (NASDAQ: BIIB - Free Report ) and Merck & Co., Inc (NYSE: MRK - Free Report ) beat the estimates for both earnings and sales. Eli Lilly and Company's (NYSE: LLY - Free Report ) third-quarter results were, however, below expectations with both earnings and sales missing the Zacks Consensus Estimate.
Two more companies from the healthcare sector are set to report their next quarterly results on Oct 28. Let's see how things are shaping up for their respective announcements.
AbbVie Inc.(NYSE: ABBV - Free Report)
AbbVie, which is scheduled to report its third-quarter results, had delivered a positive earnings surprise of 5.00% in the second quarter. AbbVie's performance has been pretty impressive, with consistent positive surprises. The average earnings beat over the last four quarters is 3.32%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at $1.21 per share.
ABBVIE INC Price and EPS Surprise | ABBVIE INC Quote
Key drug, Humira, should remain the main growth driver in the third quarter. However, a factor to be considered for international Humira sales is the impact of Remicade and Enbrel biosimilars (Read More: Can AbbVie Sustain Earnings Beat Trend in Q3? ).
Our previous article shows that AbbVie is likely to beat on earnings this quarter. However, estimates changed thereafter and we are no longer confident about an earnings beat.
Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
ImmunoGen, Inc.(NASDAQ: IMGN - Free Report)
ImmunoGen is scheduled to report its results for the three months ended Sep 30before the opening bell. ImmunoGen's track record has been disappointing so far as it has been continuously missing expectations in each of the past four quarters. Overall, it posted an average negative earnings surprise of 19.54%.
Last quarter, ImmunoGen recorded a negative surprise of 24.39%.The Zacks Consensus Estimate for the quarter is pegged at 38 cents per share.
IMMUNOGEN INC Price and EPS Surprise | IMMUNOGEN INC Quote
The company has an Earnings ESP of -5.26% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The company provided its guidance for the six-month period (Jul 1 to Dec 31) at the fourth quarter conference call held in August. For this period, ImmunoGen expects revenues of $40 million to $45 million; operating expenses of $95 million to $100 million; and net loss of $55 million to $60 million. (Read More: What's Ahead for ImmunoGen This Earnings Season? ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, a factor to be considered for international Humira sales is the impact of Remicade and Enbrel biosimilars (Read More: Can AbbVie Sustain Earnings Beat Trend in Q3? Stocks recently featured in the blog include Biogen Inc (NASDAQ: BIIB - Free Report ), Merck & Co., Inc (NYSE: MRK - Free Report ), Eli Lilly and Company (NYSE: LLY - Free Report ), AbbVie Inc.(NYSE: ABBV - Free Report) and ImmunoGen, Inc.(NASDAQ: IMGN - Free Report) . AbbVie Inc.(NYSE: ABBV - Free Report) AbbVie, which is scheduled to report its third-quarter results, had delivered a positive earnings surprise of 5.00% in the second quarter. | Stocks recently featured in the blog include Biogen Inc (NASDAQ: BIIB - Free Report ), Merck & Co., Inc (NYSE: MRK - Free Report ), Eli Lilly and Company (NYSE: LLY - Free Report ), AbbVie Inc.(NYSE: ABBV - Free Report) and ImmunoGen, Inc.(NASDAQ: IMGN - Free Report) . Get the full Report on BIIB - FREE Get the full Report on MRK - FREE Get the full Report on LLY - FREE Get the full Report on ABBV - FREE Get the full Report on IMGN - 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 BIOGEN INC (BIIB): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report IMMUNOGEN INC (IMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include Biogen Inc (NASDAQ: BIIB - Free Report ), Merck & Co., Inc (NYSE: MRK - Free Report ), Eli Lilly and Company (NYSE: LLY - Free Report ), AbbVie Inc.(NYSE: ABBV - Free Report) and ImmunoGen, Inc.(NASDAQ: IMGN - Free Report) . Get the full Report on BIIB - FREE Get the full Report on MRK - FREE Get the full Report on LLY - FREE Get the full Report on ABBV - FREE Get the full Report on IMGN - 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 BIOGEN INC (BIIB): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report IMMUNOGEN INC (IMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.(NYSE: ABBV - Free Report) AbbVie, which is scheduled to report its third-quarter results, had delivered a positive earnings surprise of 5.00% in the second quarter. Stocks recently featured in the blog include Biogen Inc (NASDAQ: BIIB - Free Report ), Merck & Co., Inc (NYSE: MRK - Free Report ), Eli Lilly and Company (NYSE: LLY - Free Report ), AbbVie Inc.(NYSE: ABBV - Free Report) and ImmunoGen, Inc.(NASDAQ: IMGN - Free Report) . AbbVie's performance has been pretty impressive, with consistent positive surprises. |
26394.0 | 2016-10-28 00:00:00 UTC | AbbVie Inc. Plunges as Much as 10% With Humira Humbled in Q3 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-plunges-much-10-humira-humbled-q3-2016-10-28 | nan | nan | What happened
Shares of AbbVie (NYSE: ABBV) , a global drug giant and the company behind the best-selling drug in the world, Humira, sunk as much as 10% in early trading on Friday after the company reported underwhelming third-quarter financial results. Shares of AbbVie have since pared close to half of the loss, and are now down 6.4% as of 2 p.m. EDT.
So what
For the quarter, AbbVie reported global revenue of $6.43 billion, an 8% increase from the prior-year period, with Humira leading the charge. On a constant currency basis, Humira sales charged higher by 12.1% to $4.06 billion. The other standout was blood-cancer drug Imbruvica. Sales of the oncology drug crested the $500 million sales mark by a hair, and grew by 64.5% on an operating basis. On an adjusted basis, AbbVie earned $1.21 in earnings per share, a 7.1% increase from Q3 2015, and it slightly raised the midpoint of its full-year adjusted EPS outlook to a fresh range of $4.80 to $4.82, from its prior forecast of $4.73 to $4.83.
On the surface this looks like another standout quarter for AbbVie. In fact, it wound up reporting EPS ahead of Wall Street's expectations by $0.01. However, total revenue fell about $120 million shy of analysts' consensus figure, and the primary culprit was Humira. The Street had been counting on Humira for $4.17 billion in Q3 sales.
As some degree of solace, AbbVie also raised its quarterly dividend by a double-digit percentage, to $0.64 per share from $0.57, but this added bonus for long-term shareholders simply hasn't been enough to push AbbVie out of the red today.
Now what
Humira is currently extrapolating to more than $16 billion in annual sales across its 10 Food and Drug Administration-approved indications; the enormity of that number makes AbbVie a force to be reckoned with. Not to mention that the company's increased dividend now pushes its yield, including today's drop, to 4.4%, or roughly double that of the S&P 500 . A yield like this, coupled with a forward P/E that's flirting with 10, could be more than enough to attract value and income investors.
Image source: AbbVie.
However, the biggest concern for AbbVie remains that it's just too reliant on Humira for its growth. Humira's $4.06 billion in sales accounts for nearly two-thirds of AbbVie's third-quarter sales, and with the exception of the fast-growing Imbruvica, Creon, and Duodopa, every other pharmaceutical product witnessed an operational sales decline on a year-over-year basis.
What's more, Humira sales could come under pressure from the entrance of biosimilars, which are biological copycats of branded therapies. As Humira is the best-selling drug in the world, it's a prime target of biosimilar drugs. Biosimilars are also expected to price a good 10% to 25% below branded-therapy prices, which could weigh on the pricing power of select drugmakers, including AbbVie.
While AbbVie appears to be a smoking-hot value, it's a risky bet considering its leverage to Humira. More than likely we're going to see AbbVie looking to diversify through mergers and acquisitions in the coming years, which gives no guarantee of success. Though long-term gains could still be made with AbbVie, investors would be wise to temper their expectations a bit after today's earnings 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. | So what For the quarter, AbbVie reported global revenue of $6.43 billion, an 8% increase from the prior-year period, with Humira leading the charge. Now what Humira is currently extrapolating to more than $16 billion in annual sales across its 10 Food and Drug Administration-approved indications; the enormity of that number makes AbbVie a force to be reckoned with. Though long-term gains could still be made with AbbVie, investors would be wise to temper their expectations a bit after today's earnings report. | So what For the quarter, AbbVie reported global revenue of $6.43 billion, an 8% increase from the prior-year period, with Humira leading the charge. On an adjusted basis, AbbVie earned $1.21 in earnings per share, a 7.1% increase from Q3 2015, and it slightly raised the midpoint of its full-year adjusted EPS outlook to a fresh range of $4.80 to $4.82, from its prior forecast of $4.73 to $4.83. What happened Shares of AbbVie (NYSE: ABBV) , a global drug giant and the company behind the best-selling drug in the world, Humira, sunk as much as 10% in early trading on Friday after the company reported underwhelming third-quarter financial results. | What happened Shares of AbbVie (NYSE: ABBV) , a global drug giant and the company behind the best-selling drug in the world, Humira, sunk as much as 10% in early trading on Friday after the company reported underwhelming third-quarter financial results. Now what Humira is currently extrapolating to more than $16 billion in annual sales across its 10 Food and Drug Administration-approved indications; the enormity of that number makes AbbVie a force to be reckoned with. Humira's $4.06 billion in sales accounts for nearly two-thirds of AbbVie's third-quarter sales, and with the exception of the fast-growing Imbruvica, Creon, and Duodopa, every other pharmaceutical product witnessed an operational sales decline on a year-over-year basis. | What happened Shares of AbbVie (NYSE: ABBV) , a global drug giant and the company behind the best-selling drug in the world, Humira, sunk as much as 10% in early trading on Friday after the company reported underwhelming third-quarter financial results. Shares of AbbVie have since pared close to half of the loss, and are now down 6.4% as of 2 p.m. EDT. So what For the quarter, AbbVie reported global revenue of $6.43 billion, an 8% increase from the prior-year period, with Humira leading the charge. |
26395.0 | 2016-10-28 00:00:00 UTC | Amgen (AMGN) Q3 Earnings & Sales Top; Enbrel Hurts Stock | ABBV | https://www.nasdaq.com/articles/amgen-amgn-q3-earnings-sales-top-enbrel-hurts-stock-2016-10-28 | nan | nan | Biotech major, Amgen Inc.AMGN reported third-quarter 2016 earnings of $3.02 per share, beating the Zacks Consensus Estimate of $2.79 by 8.24% and increasing 11% from the year-ago period.
FindTheCompany | Graphiq
Total revenues increased 2% to $5.81 billion in the third quarter of 2016, beating the Zacks Consensus Estimate of $5.74 billion by 1.2%.
Higher volumes of new products, including Prolia, Xgeva, Sensipar and Vectibix were partially offset by a softer performance by blockbuster drug Enbrel. Also, milestone payments, notably, a milestone received related to the approval of Kyprolis in Japan, pulled up the top line. Currency impact hurt sales by 1% in the quarter.
Quarter in Detail
Total product revenues were flat with the year-ago quarter at $5.12 billion (U.S.: $4.38 billion, down 1%; ex-U.S.: $1.13 billion, up 7% including Fx) as a strong performance of new products was offset by lower sales of established brands like Epogen, Neulasta and Neupogen and sluggish sales of Enbrel.
Revenues of Amgen's erythropoiesis-stimulating agent (ESA) Aranesp grew 8% from the year-ago quarter to $531 million, reflecting higher unit demand in the U.S. given the shift in dialysis customer purchases from Epogen. Amgen does not expect much further transition to Aranesp going forward.
Revenues of Amgen's other ESA, Epogen, declined 31% to $335 million, reflecting a shift in dialysis customer purchases to Aranesp as well as the impact of competition. Fresenius has moved about 80% of its patients to Mircera. Amgen does not expect Epogen biosimilars in the U.S. until late 2017.
While Neulasta revenues declined 5% to $1.2 billion from the year-ago period due to lower unit demand, Neupogen recorded a 36% decline in revenues ($183 million), reflecting biosimilar competition in the U.S. Zarxio, Sandoz's (Novartis AG's NVS generic arm)biosimilar version of Neupogen, was launched in the U.S. in Sep 2015.
Meanwhile, Neulasta declined due to a small segment contraction in the U.S., and increased competition in the international business. The Neulasta Onpro kit (on-body injector) continues to perform well.
Enbrel delivered revenues of $1.45 billion, flat with the year-ago quarter, as higher net selling price was offset partially by volume decline due to increased competition and unfavorable changes in the inventory level. On the call, management mentioned that it expects minimal net price growth for Enbrel in 2017 that could hurt sales further. Moreover, further competition for Enbrel looms large. In August, Sandoz received FDA approval for its biosimilar version of Enbrel, called Erelzi. Notably, Erelzi is still to be launched in the U.S.
We remind investors that in September, Amgen's biosimilar version of AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira received FDA approval under the trade name of Amjevita. This is Amgen's first biosimilar to receive regulatory approval in the U.S. However, on the call, Amgen indicated that it is unlikely to launch Amjevita in 2017, due to the ongoing litigation with AbbVie.
Meanwhile Amgen's biosimilar versions of Roche's Rituxan (ABP 798), and Johnson and Johnson JNJ /Merck's Remicade (ABP 710) are in phase III development.
Prolia revenues came in at $379 million, up 18% from the year-ago quarter due to higher demand. Prolia volume growth continued to improve as the company continues to capture share across U.S. and EU. However, Prolia revenues declined 14% on a sequential basis due to typical seasonality.
Meanwhile, Xgeva delivered revenues of $394 million, up 4% from the year-ago quarter mainly due to higher demand.
Sensipar/Mimpara revenues increased 18% from the year-ago quarter to $415 million due to higher demand and price.
Vectibix revenues came in at $164 million, up 24% year over year driven by higher demand. Vectibix sales benefited from higher shipments to the Japanese partner Takeda. This can fluctuate throughout the year.
Kyprolis posted sales of $183 million, up 6.4% sequentially and 34% year over year reflecting higher demand. The company is seeing strong early uptake in the key markets in Europe where it is launched. Amgen is launching Kyprolis across Europe on a country-by-country basis as reimbursement is secured. However, in the U.S., Kyprolis lost some share in the third line plus market due to increased competition in the multiple myeloma market.
Blincyto sales increased 26% from the year-ago period to $29 million reflecting higher demand. Repatha revenues came in at $40 million, up from $27 million in the second quarter.
Margins Increase
R&D expenses declined 11% due to savings from transformation and process improvement efforts and lower costs required to support certain late-stage clinical programs, partially offset by higher upfront payments for several in-licensing transactions.
SG&A spend increased 1% due to higher investments to support new product launches, mainly in international markets.
Adjusted operating margins rose 420 basis points (bps) to 52.9% due to higher revenues and lower operating costs.
Amgen bought back shares worth $747 million during the quarter. In Oct 2016, the board of directors approved an increase in the share repurchase authorization to $5 billion.
Ups 2016 Guidance
Management raised the lower end of its revenue guidance, while raised the earnings range. The company now expects total revenue of $22.6 billion to $22.8 billion and earnings of $11.40 to $11.55 per share. Earlier, the company had guided total revenue of $22.5 billion to $22.8 billion and earnings of $11.10 to $11.40 per share. The Zacks Consensus Estimate for earnings and sales stand at $22.74 billion and $11.34 per share, respectively.
In the fourth quarter, operating expenses are expected to be higher than the third.
Our Take
Amgen continued to impress by surpassing expectations yet again and raising its profit outlook. Higher revenues and higher operating margins drove third-quarter results. However, shares declined 1.5% in after-market trading, possibly due to flat new product sales and softer performance of Enbrel.
While the company has some challenges in store given the presence of biosimilar competition and slowdown in mature products, contribution from new product launches should be meaningful. Meanwhile, the company's restructuring plan should make it leaner and more cost-efficient.
AMGEN INC Price, Consensus and EPS Surprise
AMGEN INC Price, Consensus and EPS Surprise | AMGEN INC Quote
Amgen 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. | Notably, Erelzi is still to be launched in the U.S. We remind investors that in September, Amgen's biosimilar version of AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira received FDA approval under the trade name of Amjevita. However, on the call, Amgen indicated that it is unlikely to launch Amjevita in 2017, due to the ongoing litigation with AbbVie. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, Erelzi is still to be launched in the U.S. We remind investors that in September, Amgen's biosimilar version of AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira received FDA approval under the trade name of Amjevita. However, on the call, Amgen indicated that it is unlikely to launch Amjevita in 2017, due to the ongoing litigation with AbbVie. | Notably, Erelzi is still to be launched in the U.S. We remind investors that in September, Amgen's biosimilar version of AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira received FDA approval under the trade name of Amjevita. However, on the call, Amgen indicated that it is unlikely to launch Amjevita in 2017, due to the ongoing litigation with AbbVie. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Notably, Erelzi is still to be launched in the U.S. We remind investors that in September, Amgen's biosimilar version of AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira received FDA approval under the trade name of Amjevita. However, on the call, Amgen indicated that it is unlikely to launch Amjevita in 2017, due to the ongoing litigation with AbbVie. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26396.0 | 2016-10-28 00:00:00 UTC | 5 Things Amgen Inc.'s Management Wants You to Know | ABBV | https://www.nasdaq.com/articles/5-things-amgen-incs-management-wants-you-know-2016-10-28 | nan | nan | Amgen Inc. (NASDAQ: AMGN) reported its third-quarter results after the market closed on Thursday. Those results looked good overall , but the numbers only tell about the past. To find out about the biotech's future, listen carefully to what management has to say. Here are five key things Amgen's management team wants investors to know. (All quotes courtesy of S&P Global Market Intelligence .)
Image source: Getty Images.
1. Good news and bad news for Enbrel
Year-over-year sales comparisons for Enbrel were as flat as a pancake without any butter on top. The good news was that Amgen was able to successfully increase pricing for the anti-inflammatory drug and didn't lose market share from the second quarter in the important rheumatology market.
What's the bad news? Competition is getting fierce. Based on Celgene 's(NASDAQ: CELG) blow-out results in the third quarter , I'd say that much of that fierce competition stems from Otezla. While Enbrel treaded water, sales for Celgene's psoriasis and psoriatic arthritis drug nearly doubled year over year.
Celgene can point to Otezla's convenience factor as a big selling point. Enbrel is administered via injection, but Otezla is a pill. Celgene also can make the case that Otezla is just as effective as Enbrel is at treating psoriasis based on a late-stage study completed last year.
Hiking the price for Enbrel won't be a big help in the future. Amgen's executive vice-president of global commercial operations, Anthony Hooper, said the company expects "relatively little benefit from net selling price changes in 2017." He noted that pharmacy benefits managers are requiring more rebates to keep Enbrel's position on their formularies. It sounds like the good news for Amgen's top-selling drug might be fewer and farther between in the months ahead.
2. Perspective on the drug pricing debate
Amgen CEO Robert Bradway weighed in on the ongoing debate about high drug prices. Bradway agreed that healthcare costs need to be addressed but stressed that people "shouldn't lose sight of the fact that it's the economic and societal burden of disease that is the enemy." He added that "innovative biopharmaceutical drugs offer the promise of addressing that burden."
Pay-for-performance isn't a problem for Amgen. Bradway said his company accepts that its products "need to deliver clear benefit" for patients and shouldn't be paid as much if they don't. Amgen has already made several pay-for-performance contracts with payers and expects to do more in the future.
Californians vote in November on Proposition 61, a ballot initiative that seeks to limit how much the state's agencies pay for prescription drugs. When asked about Proposition 61, Bradway said the initiative is "flawed." He noted that most of the major newspapers in California as well as many public entities in the state are also opposed to the proposition.
3. Bring on the biosimilars
One way of helping control drug costs is the introduction of new generic drugs and biosimilars. Amgen is poised to benefit from the growth of the biosimilar market. Bradway thinks that its biosimilar programs "will help generate long-term growth at Amgen."
The biotech scored its first regulatory approval of a biosimilar in September when the U.S. Food and Drug Administration gave a thumbs up for Amjevita. Bradway likes the potential for Amjevita, which is a biosimilar to AbbVie 's(NYSE: ABBV) blockbuster Humira. However, he warned it could take a while before any revenue is generated. Amgen and AbbVie are embroiled in litigation over the biosimilar.
Amgen has also completed late-stage clinical studies for two other biosimilars with partner Allergan (NYSE: AGN) . The companies have announced positive results for biosimilars to cancer drugs Herceptin and Avastin. Neither biosimilar has gained regulatory approval yet.
4. Optimistic -- especially about Repatha and Kyprolis
Bradway said "the long-term prospects of our business are bright." Much of Amgen's optimism stems from the potential for two drugs: Repatha and Kyprolis.
Image source: Amgen.
Amgen's management team acknowledges the challenges that cholesterol drug Repatha has faced in its first year on the market. Anthony Hooper noted that "high hurdles remain for both physicians and patients to gain access" to Repatha because of payer restrictions on the drug. The company might be able to jump those hurdles, though, when cardiovascular outcomes data is presented in the first quarter of 2017.
Kyprolis emerged as a big winner in third quarter, with sales increasing 34% from the prior-year period. Hooper said Amgen saw "strong early uptake from key markets in Europe combined with continued growth in the U.S." for the multiple myeloma drug. He did mention, though, that Kyprolis lost some market share in the U.S. as a third-line treatment (which can only be given after two other therapies prove unsuccessful) because of new competitors.
Amgen expects sales for Kyprolis as a second-line treatment to continue to grow. Sean Harper, executive vice president of research and development, also stressed that the company is committed to advancing the drug as a first-line treatment for multiple myeloma. Amgen is near completion of a study design for a combination of Kyprolis, Celgene's Revlimid, and dexamethasone in newly diagnosed transplant-eligible multiple myeloma patients.
5. What Amgen's looking to buy
The biotech reported cash, cash equivalents, and marketable securities totaling $37.98 billion at the end of the third quarter. What might Amgen do with that money besides paying dividends and buying back shares? Look for more acquisitions of pipeline candidates and perhaps smaller companies.
Bradway said, "We're active in our review of opportunities, principally in our core therapeutic categories." However, Amgen doesn't want to pay too much for any acquisition opportunity. The company leans toward licensing early-stage candidates.
A bigger deal isn't out of the question, though. CFO David Meline said Amgen "will continue to look at larger opportunities."
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Keith Speights owns shares of Celgene. The Motley Fool owns shares of and recommends Celgene. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Bradway likes the potential for Amjevita, which is a biosimilar to AbbVie 's(NYSE: ABBV) blockbuster Humira. Amgen and AbbVie are embroiled in litigation over the biosimilar. Bradway agreed that healthcare costs need to be addressed but stressed that people "shouldn't lose sight of the fact that it's the economic and societal burden of disease that is the enemy." | Bradway likes the potential for Amjevita, which is a biosimilar to AbbVie 's(NYSE: ABBV) blockbuster Humira. Amgen and AbbVie are embroiled in litigation over the biosimilar. Good news and bad news for Enbrel Year-over-year sales comparisons for Enbrel were as flat as a pancake without any butter on top. | Bradway likes the potential for Amjevita, which is a biosimilar to AbbVie 's(NYSE: ABBV) blockbuster Humira. Amgen and AbbVie are embroiled in litigation over the biosimilar. The good news was that Amgen was able to successfully increase pricing for the anti-inflammatory drug and didn't lose market share from the second quarter in the important rheumatology market. | Bradway likes the potential for Amjevita, which is a biosimilar to AbbVie 's(NYSE: ABBV) blockbuster Humira. Amgen and AbbVie are embroiled in litigation over the biosimilar. The good news was that Amgen was able to successfully increase pricing for the anti-inflammatory drug and didn't lose market share from the second quarter in the important rheumatology market. |
26397.0 | 2016-10-28 00:00:00 UTC | AbbVie (ABBV) Reports In-Line Q3 Earnings, Revenues Miss | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-reports-in-line-q3-earnings-revenues-miss-2016-10-28 | nan | nan | North Chicago, IL-based AbbVie Inc.ABBV is best known for its autoimmune disease drug, Humira. Other key products include Imbruvica (cancer) and Viekira Pak (hepatitis C virus (HCV) treatment).
Humira, the company's flagship product which is approved for a wide range of indications, is a major contributor to AbbVie's top line. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on Viekira's performance as well as pipeline updates.
Meanwhile, the Pharmacyclics acquisition has diversified AbbVie's product portfolio with the addition of Imbruvica.
AbbVie's performance has been pretty impressive, with consistent positive surprises. The average earnings beat over the last four quarters is 3.32%.
Currently, AbbVie has a Zacks Rank #3 (Hold), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: AbbVie's third quarter earnings came in at $1.21 per share, in-line with the Zacks Consensus Estimate.
Revenues: AbbVie posted revenues of approximately $6.43 billion, missing the Zacks Consensus Estimate of $6.55 billion.
Key Stats: Humira sales came in at $4.1 billion. Third-quarter Imbruvica sales were $501 million. Viekira sales were $378 million in the third quarter.
Ups 2016 Outlook: AbbVie raised its 2016 EPS outlook to $4.80 - $4.82 (old guidance: $4.73 - $4.83 per share). The Zacks Consensus Estimate is currently $4.82 per share.
ABBVIE INC Price
ABBVIE INC Price | ABBVIE INC Quote
Check back later for our full write up on this AbbVie earnings 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. | Humira, the company's flagship product which is approved for a wide range of indications, is a major contributor to AbbVie's top line. North Chicago, IL-based AbbVie Inc.ABBV is best known for its autoimmune disease drug, Humira. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on Viekira's performance as well as pipeline updates. | Revenues: AbbVie posted revenues of approximately $6.43 billion, missing the Zacks Consensus Estimate of $6.55 billion. North Chicago, IL-based AbbVie Inc.ABBV is best known for its autoimmune disease drug, Humira. Humira, the company's flagship product which is approved for a wide range of indications, is a major contributor to AbbVie's top line. | While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on Viekira's performance as well as pipeline updates. We have highlighted some of the key stats from this just-revealed announcement below: Earnings: AbbVie's third quarter earnings came in at $1.21 per share, in-line with the Zacks Consensus Estimate. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Check back later for our full write up on this AbbVie earnings report. | We have highlighted some of the key stats from this just-revealed announcement below: Earnings: AbbVie's third quarter earnings came in at $1.21 per share, in-line with the Zacks Consensus Estimate. North Chicago, IL-based AbbVie Inc.ABBV is best known for its autoimmune disease drug, Humira. Humira, the company's flagship product which is approved for a wide range of indications, is a major contributor to AbbVie's top line. |
26398.0 | 2016-10-27 00:00:00 UTC | Key Takeaways from Biogen's Q3 Call: Tecfidera, Pipeline, Biosimilars | ABBV | https://www.nasdaq.com/articles/key-takeaways-biogens-q3-call-tecfidera-pipeline-biosimilars-2016-10-27 | nan | nan | Biotech company, Biogen Inc.BIIB , known for its strong position in the multiple sclerosis (MS) market, reported third quarter 2016 results before the market opened yesterday with both earnings and revenues surpassing expectations (Read more: Biogen Beats on Q3 Earnings; Tecfidera Propels Sales ). Investors reacted positively to the company's results and pipeline update with shares gaining 3.7%.
Here's a look at some important takeaways from the company's third quarter conference call.
How Did the MS Franchise Perform?
The performance of Biogen's oral MS treatment, Tecfidera, has been closely watched ever since the company reported a slowdown in the product's growth rate following the emergence of the first progressive multifocal leukoencephalopathy (PML) case in a patient on Tecfidera. Since then, Biogen has been working on dispelling concerns regarding the drug's safety and on increasing awareness about the treatment. Tecfidera's third quarter sales improved on a sequential as well as year-over-year basis. However, U.S. sales benefited from an inventory build of $40 million - $50 million while ex-U.S. sales declined sequentially due to parallel trade dynamics.
Tecfidera'sglobal marketshare increased by approximately 1 point from the year-ago period to 15%. In the U.S., Tecfidera continued to capture roughly half of all patients starting on an oral treatment, with current oral share of 51%. Biogen said that overall patient share remained relatively stable at 20% since the beginning of the year.
Meanwhile, Tysabri continues to add patients and increase share in the U.S. as well as emerging markets. Biogen said that with patients shifting towards high-efficacy treatments, Tysabri is benefiting from growing first-line use in the U.S. Zinbryta, a newly launched once-monthly, self-administered subcutaneous treatment for relapsing forms of MS that is partnered with AbbVie Inc. ABBV , is also benefiting from the trend towards increased use of high-efficacy products.
Pipeline Focus Increases
Biogen is focusing on its pipeline to bring in products that will drive a new wave of growth. Biogen's most promising pipeline candidate is nusinersen -- the company has finished submitting a rolling NDA for nusinersen in the U.S. where it is seeking priority review. A regulatory application has been filed in the EU as well where the candidate has been granted accelerated assessment status. Nusinersen represents significant commercial opportunity given the lack of available treatments for patients with spinal muscular atrophy, a leading genetic cause of death in infants.
Another important candidate in Biogen's pipeline is aducanumab, which is in a couple of phase III studies for Alzheimer's disease. However, this is a high risk-high reward program for Biogen. There is huge commercial potential for Alzheimer's disease treatments but quite a few companies have faced failure in this field before. Later this year, Eli Lilly and Company LLY is expected to report top-line data on solanezumab, an amyloid beta antibody like aducanumab.
Positive results on solanezumab would bode well for Biogen as this would support the amyloid hypothesis of Alzheimer's disease. However, Biogen pointed out that given the different mechanisms of action and patient population, it would be difficult to draw a conclusion of the impact of any negative solanezumab data on aducanumab.
Meanwhile, Biogen decided to discontinue the development of amiselimod, which was in-licensed from Mitsubishi Tanabe.
Biosimilars an Important Growth Opportunity
Moving on to other areas, biosimilars represent an important growth opportunity for Biogen. Revenues in Europe doubled sequentially in the third quarter with Benepali (reference product - Enbrel) picking up share rapidly and being launched in additional markets. Another biosimilar, Flixabi (reference product - Remicade) is being launched in Europe. Flixabi is available in Germany, the UK, and the Netherlands, with launch in three additional countries expected in the fourth quarter.
Bottom Line
While Biogen's third quarter results were good, the slowdown in the overall MS market in the U.S. is concerning - Biogen said that the market witnessed a 2% decline in commercial patients compared to the third quarter of 2015. With the MS market getting more crowded and growth slowing down, it makes sense for Biogen to focus on its pipeline and add assets to its product portfolio.
BIOGEN INC Price, Consensus and EPS Surprise
BIOGEN INC Price, Consensus and EPS Surprise | BIOGEN INC Quote
Biogen is a Zacks Rank #3 (Hold) stock. A better-ranked stock in the healthcare sector is Merck & Co., Inc. MRK , a Zacks Rank #2 (Buy) company. Merck has an impressive earnings track record having surpassed expectations in each of the last four quarters. 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. | Biogen said that with patients shifting towards high-efficacy treatments, Tysabri is benefiting from growing first-line use in the U.S. Zinbryta, a newly launched once-monthly, self-administered subcutaneous treatment for relapsing forms of MS that is partnered with AbbVie Inc. ABBV , is also benefiting from the trend towards increased use of high-efficacy products. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Nusinersen represents significant commercial opportunity given the lack of available treatments for patients with spinal muscular atrophy, a leading genetic cause of death in infants. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen said that with patients shifting towards high-efficacy treatments, Tysabri is benefiting from growing first-line use in the U.S. Zinbryta, a newly launched once-monthly, self-administered subcutaneous treatment for relapsing forms of MS that is partnered with AbbVie Inc. ABBV , is also benefiting from the trend towards increased use of high-efficacy products. Later this year, Eli Lilly and Company LLY is expected to report top-line data on solanezumab, an amyloid beta antibody like aducanumab. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen said that with patients shifting towards high-efficacy treatments, Tysabri is benefiting from growing first-line use in the U.S. Zinbryta, a newly launched once-monthly, self-administered subcutaneous treatment for relapsing forms of MS that is partnered with AbbVie Inc. ABBV , is also benefiting from the trend towards increased use of high-efficacy products. Biotech company, Biogen Inc.BIIB , known for its strong position in the multiple sclerosis (MS) market, reported third quarter 2016 results before the market opened yesterday with both earnings and revenues surpassing expectations (Read more: Biogen Beats on Q3 Earnings; Tecfidera Propels Sales ). | Biogen said that with patients shifting towards high-efficacy treatments, Tysabri is benefiting from growing first-line use in the U.S. Zinbryta, a newly launched once-monthly, self-administered subcutaneous treatment for relapsing forms of MS that is partnered with AbbVie Inc. ABBV , is also benefiting from the trend towards increased use of high-efficacy products. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The performance of Biogen's oral MS treatment, Tecfidera, has been closely watched ever since the company reported a slowdown in the product's growth rate following the emergence of the first progressive multifocal leukoencephalopathy (PML) case in a patient on Tecfidera. |
26399.0 | 2016-10-27 00:00:00 UTC | Biogen Inc. Working With What It's Got as It Looks to Diversify | ABBV | https://www.nasdaq.com/articles/biogen-inc-working-what-its-got-it-looks-diversify-2016-10-27 | nan | nan | Image source: Getty Images.
Given the dampening U.S. market for multiple sclerosis drugs -- Biogen 's(NASDAQ: BIIB) bread and butter -- the biotech's third-quarter earnings release on Wednesday was about as good as investors could have hoped for.
Biogen results: The raw numbers
Data source: Company press release. YOY = year over year.
What happened with Biogen this quarter?
Biogen's newest multiple sclerosis drug Tecfidera continues to be the growth driver, with a 10% year-over-year increase in sales.
Sales of Tysabri, which has been on the market for more than a decade, are still growing, with sales up 7% year over year.
The interferon class of drugs continues to decline, down 10% year over year. Sales of Biogen's newer longer-lasting Pregridy increased 28% year over year, but it wasn't enough to counteract the 15% decline in sales of older Avonex since the older drug is working from a much larger base.
Biogen and partner AbbVie (NYSE: ABBV) launched Zinbryta, another multiple sclerosis drug in August. Given the late-quarter launch, sales were minimal in the third quarter, but should pick up from here.
The biotech's hemophilia drugs -- Eloctate and Alprolix -- continue to displace the current treatments with year-over-year growth of 46% and 30%, respectively. Unfortunately, the combined sales of the drugs make up less than 10% of overall revenue, so the growth doesn't move the revenue needle. In August, Biogen announced plans to spin the drugs out into a separate company called Bioverativ. The company will begin trading in early 2017.
In August, Biogen and partner Ionis Pharmaceuticals (NASDAQ: IONS) announced that a clinical trial testing nusinersen in spinal muscular atrophy was stopped early because it was clear the drug was working. Biogen has already submitted the marketing application to the Food and Drug Administration. Given the unmet need, the application should be given a priority review.
What management had to say
Michael Ehlers, Biogen's EVP of research and development, thinks Biogen is in a no-lose situation with the upcoming release of phase 3 data for Eli Lilly 's(NYSE: LLY) Alzheimer's disease drug, solanezumab, and how that might foretell whether Biogen's Alzheimer's disease drug, aducanumab, will work. "We think, if there were positive results out of the solanezumab trial, this would give great credence to the amyloid hypothesis of Alzheimer's disease, and I think bode well for the potential results of aducanumab," Ehlers said. But then he argued that "it will be much more difficult to make a conclusion about a negative result on solanezumab vis-a-vis the potential results of aducanumab" because of fundamental difference between aducanumab and Elli Lilly's drug. I guess that's "heads I win, tails you lose."
Biogen and Ionis Pharmaceuticals are running additional clinical trials testing nusinersen in different types of spinal muscular atrophy, and while only the trial in Type 1 trial has completed, Biogen and Ionis are hoping for a broad label based on the ongoing trial so the drug is approved for as many children as possible. "The extent of the label that we achieve -- that will be based on the agency's review of the totality of the data and the evidence. We will present evidence based on those populations in our effort to seek a broad label," Ehlers said.
CEO George Scangos is retiring, but he noted that the ongoing CEO search isn't interfering with Biogen's potential to do deals. "You should not assume this is on hold. We all believe this is an important part of what we have to accomplish. We are continuing with diligence on several companies as we speak."
Looking forward
Aducanumab clearly provides the biggest upside for Biogen, given the megablockbuster potential in Alzheimer's disease, but the phase 3 data won't be available until 2020, so investors need to focus on other drugs to diversify away from multiple sclerosis, such as nusinersen, especially if Biogen and Ionis can get a broad label.
There's also potential to grow Biogen's burgeoning biosimilars business. Sales of the copycat drugs only amounted to $31 million in the third quarter, but that was double the second quarter. It's currently only selling biosimilars in Europe, but as more biologics go off patent in the U.S., Biogen should be able to take advantage of the growth opportunity.
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Brian Orelli has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Biogen and Ionis Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. | Biogen and partner AbbVie (NYSE: ABBV) launched Zinbryta, another multiple sclerosis drug in August. Given the dampening U.S. market for multiple sclerosis drugs -- Biogen 's(NASDAQ: BIIB) bread and butter -- the biotech's third-quarter earnings release on Wednesday was about as good as investors could have hoped for. Biogen's newest multiple sclerosis drug Tecfidera continues to be the growth driver, with a 10% year-over-year increase in sales. | Biogen and partner AbbVie (NYSE: ABBV) launched Zinbryta, another multiple sclerosis drug in August. In August, Biogen and partner Ionis Pharmaceuticals (NASDAQ: IONS) announced that a clinical trial testing nusinersen in spinal muscular atrophy was stopped early because it was clear the drug was working. What management had to say Michael Ehlers, Biogen's EVP of research and development, thinks Biogen is in a no-lose situation with the upcoming release of phase 3 data for Eli Lilly 's(NYSE: LLY) Alzheimer's disease drug, solanezumab, and how that might foretell whether Biogen's Alzheimer's disease drug, aducanumab, will work. | Biogen and partner AbbVie (NYSE: ABBV) launched Zinbryta, another multiple sclerosis drug in August. What management had to say Michael Ehlers, Biogen's EVP of research and development, thinks Biogen is in a no-lose situation with the upcoming release of phase 3 data for Eli Lilly 's(NYSE: LLY) Alzheimer's disease drug, solanezumab, and how that might foretell whether Biogen's Alzheimer's disease drug, aducanumab, will work. Biogen and Ionis Pharmaceuticals are running additional clinical trials testing nusinersen in different types of spinal muscular atrophy, and while only the trial in Type 1 trial has completed, Biogen and Ionis are hoping for a broad label based on the ongoing trial so the drug is approved for as many children as possible. | Biogen and partner AbbVie (NYSE: ABBV) launched Zinbryta, another multiple sclerosis drug in August. Biogen's newest multiple sclerosis drug Tecfidera continues to be the growth driver, with a 10% year-over-year increase in sales. Sales of Tysabri, which has been on the market for more than a decade, are still growing, with sales up 7% year over year. |
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