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26400.0 | 2016-10-27 00:00:00 UTC | Pre-Market Earnings Report for October 28, 2016 : XOM, CVX, MA, ABBV, PSX, AON, IMO, NWL, VTR, WY, RCL, HSY | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-october-28-2016-xom-cvx-ma-abbv-psx-aon-imo-nwl-vtr-wy-rcl-hsy | nan | nan | The following companies are expected to report earnings prior to market open on 10/28/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation ( XOM ) is reporting for the quarter ending September 30, 2016. The oil company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.60. This value represents a 40.59% decrease compared to the same quarter last year. XOM missed the consensus earnings per share in the 2nd calendar quarter of 2016 by -35.94%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for XOM is 39.41 vs. an industry ratio of 35.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation ( CVX ) is reporting for the quarter ending September 30, 2016. The oil company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.39. This value represents a 64.22% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CVX is 86.49 vs. an industry ratio of 35.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Mastercard Incorporated ( MA ) is reporting for the quarter ending September 30, 2016. The financial transactions company's consensus earnings per share forecast from the 18 analysts that follow the stock is $0.98. This value represents a 7.69% increase compared to the same quarter last year. In the past year MA has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 6.67%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for MA is 28.28 vs. an industry ratio of 19.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. ( ABBV ) is reporting for the quarter ending September 30, 2016. The large cap pharmaceutical company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.21. This value represents a 7.08% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 12.66 vs. an industry ratio of 16.80.
Phillips 66 ( PSX ) is reporting for the quarter ending September 30, 2016. The oil refining company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.88. This value represents a 70.86% decrease compared to the same quarter last year. PSX missed the consensus earnings per share in the 1st calendar quarter of 2016 by -22.09%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for PSX is 23.63 vs. an industry ratio of 46.30.
Aon plc ( AON ) is reporting for the quarter ending September 30, 2016. The insurance brokers company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.28. This value represents a 3.23% increase compared to the same quarter last year. AON missed the consensus earnings per share in the 2nd calendar quarter of 2016 by -0.71%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AON is 16.57 vs. an industry ratio of 19.00.
Imperial Oil Limited ( IMO ) is reporting for the quarter ending September 30, 2016. The consensus earnings per share forecast from the 2 analysts that follow the stock is $0.20. IMO reported earnings of $0.43 per share for the same quarter a year ago; representing a a decrease of -53.49%.
Newell Brands Inc. ( NWL ) is reporting for the quarter ending September 30, 2016. The consumer company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.73. This value represents a 17.74% increase compared to the same quarter last year. In the past year NWL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for NWL is 17.72 vs. an industry ratio of 25.50.
Ventas, Inc. ( VTR ) is reporting for the quarter ending September 30, 2016. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.01. This value represents a 7.34% decrease compared to the same quarter last year. In the past year VTR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for VTR is 16.43 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Weyerhaeuser Company ( WY ) is reporting for the quarter ending September 30, 2016. The building company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.22. This value represents a 37.14% decrease compared to the same quarter last year. WY missed the consensus earnings per share in the 2nd calendar quarter of 2016 by -15%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for WY is 38.79 vs. an industry ratio of 20.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Royal Caribbean Cruises Ltd. ( RCL ) is reporting for the quarter ending September 30, 2016. The leisure (recreational) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.10. This value represents a 9.15% increase compared to the same quarter last year. In the past year RCL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 6.86%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for RCL is 11.65 vs. an industry ratio of 16.30.
Hershey Company ( HSY ) is reporting for the quarter ending September 30, 2016. The confectionary company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.18. This value represents a 0.85% increase compared to the same quarter last year. In the past year HSY has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.97%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for HSY is 22.57 vs. an industry ratio of 22.60.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 reporting for the quarter ending September 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 12.66 vs. an industry ratio of 16.80. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending September 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 12.66 vs. an industry ratio of 16.80. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending September 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 12.66 vs. an industry ratio of 16.80. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending September 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 12.66 vs. an industry ratio of 16.80. |
26401.0 | 2016-10-26 00:00:00 UTC | Biogen (BIIB) Beats on Q3 Earnings; Tecfidera Propels Sales | ABBV | https://www.nasdaq.com/articles/biogen-biib-beats-on-q3-earnings-tecfidera-propels-sales-2016-10-26 | nan | nan | Biotech company Biogen Inc. 's BIIB shares were up more than 2% in pre-market trading , with the company surpassing earnings as well as sales expectations.
The company reported third-quarter 2016 earnings per share of $5.19, beating the Zacks Consensus Estimate of $4.99 by 4% and 16% higher than the year-ago earnings.
FindTheCompany | Graphiq
Sales came in at $2.96 billion, increasing 6% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.90 billion by 2.1%. Currency negatively impacted revenues by $54 million. Top-line growth was driven by the solid performance of Biogen's multiple sclerosis business.
Quarter in Detail
Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. This included U.S. sales of $845.1 million and ex-U.S. sales of $188.6 million.
Revenues reflected a $40 million to $50 million benefit from an inventory rebalancing in the channel. However, outside U.S. sales decreased sequentially primarily due to parallel trade dynamics.
Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. Tysabri's sales also grew 4% sequentially
Combined interferon revenues (Avonex and Plegridy), in the third quarter, were $708 million (U.S. $505.7 million, ex-U.S. $202.6 million), down 10% from the year-ago period and 3% sequentially. Avonex revenues declined 15% from the year-ago period to $580 million.
Plegridy contributed $128 million to third-quarter 2016 revenues, up 28% year over year and 4% sequentially.
Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August, contributed $2 million to revenues in the quarter.
Alprolix and Eloctate, Biogen's hemophilia treatments, recorded revenues of $132 million and $85 million, respectively, both showing sequential growth of 6%.
In the quarter, Biogen recorded biosimilar revenues of $31 million compared with $15 million in the second quarter. It launched biosimilar versions of Johnson & Johnson JNJ and Amgen Inc.'s AMGN blockbuster drugs, Remicade and Enbrel, respectively, in Europe.
Anti-CD20 revenues declined 6% from the year-ago period to $318 million in the third quarter.
R&D spend declined 2% in the reported quarter to $529 million while SG&A spend came in at $461 million, 4% higher year over year.
In the quarter, the company repurchased shares worth $349 million.
2016 Outlook
The company did not provide any update regarding its previously issued full-year outlook. At the second quarter conference call, Biogen said it expects earnings of $19.70 to $20.00 per share on revenues of $11.2 billion to $11.4 billion in 2016. Guidance includes contribution from the hemophilia business, which Biogen expects to spin-off in early 2017.
BIOGEN INC Price, Consensus and EPS Surprise
BIOGEN INC Price, Consensus and EPS Surprise | BIOGEN INC Quote
Our Take
Biogen's third-quarter results were impressive with the company surpassing earnings expectations by a fairly decent margin. The stock, which has been under pressure on concerns regarding a slowdown in Tecfidera's growth rate as well as overall concerns regarding pricing in the biotech sector, saw its key MS drugs Tecfidera and Tysabrirecording a sequential improvement. Investors should be cheered by this. The hemophilia franchise also performed well.
Biogen carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August, contributed $2 million to revenues in the quarter. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): 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. Quarter in Detail Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): 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 August, contributed $2 million to revenues in the quarter. Quarter in Detail Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): 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 August, contributed $2 million to revenues in the quarter. Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. | Zinbryta, launched in collaboration with AbbVie Inc. ABBV in August, contributed $2 million to revenues in the quarter. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report AMGEN INC (AMGN): 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. Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. |
26402.0 | 2016-10-26 00:00:00 UTC | 3 Key Questions for Gilead Sciences, Inc. in Q3 | ABBV | https://www.nasdaq.com/articles/3-key-questions-gilead-sciences-inc-q3-2016-10-26 | nan | nan | Image source: Getty Images.
Gilead Sciences (NASDAQ: GILD) disappointed investors in the first quarter of 2016. The biotech disappointed again in the second quarter. A pattern seems to be emerging here. When Gilead announces its third-quarter results on Nov. 1, will the disappointments continue or is a positive surprise in store? It depends heavily on the answers to these three questions.
1. How much did Harvoni sales slow down?
After storming out of the gate following its commercial launch in late 2014, blockbuster hepatitis C drug Harvoni has lost a good bit of steam. In the second quarter, sales for Harvoni declined nearly 29% year over year. No one is expecting Harvoni sales to rebound in the third quarter, but the market is anxious to find out how steep the decline might be.
There are three main reasons behind the waning sales for the hep C drug. Competition is probably the most important. AbbVie 's(NYSE: ABBV) Viekira and Merck 's(NYSE: MRK) Zepatier go head-to-head with Harvoni. Gilead seems to have fended off AbbVie pretty well, although Viekira is claiming its fair share of the market. Merck, however, changed the game by launching Zepatier at a significantly lower price.
Merck's move helped bring about the second main reason Harvoni's sales are slowing down. Payers are demanding -- and getting -- rebates and steep price discounts. Gilead reported much-lower average selling prices in the second quarter due to these concessions.
The other factor behind Harvoni's sales decline relates to the hepatitis C patient population. When Harvoni was first launched, physicians prescribed the drug for a huge wave of patients with the most serious cases of hep C. Because Harvoni is so effective, many of those patients are now cured of the disease. Newer patients taking the drug tend to have less severe cases of hep C and can get by with shorter treatment periods. That reduces the sales volume for Harvoni.
None of these things changed in the third quarter. We'll find out soon if the worst of the impact is over.
2. Did new drugs outperform expectations?
Gilead rolled out a crop of impressive new drugs over the past year. Genvoya was launched in November 2015. The TAF-based HIV drug saw sales of $360 million in the first half of 2016.
A couple of other TAF-based HIV drugs are also coming on strong. Descovy was launched in April 2016. Odefsey was launched in the U.S. a month earlier but didn't win European approval until June.
Possibly the biggest potential winner of the group, though, is Epclusa. The hepatitis C drug, which is the first to treat all genotypes of hep C, gained FDA approval in late June. With only three days of sales in the second quarter, Epclusa generated revenue of $64 million. The addition of Epclusa to its lineup should help Gilead battle more effectively against AbbVie and Merck.
Gilead should see great numbers in the third quarter from all four of these newer drugs. If those numbers are even better than great, combined with Harvoni's sales coming in higher than expected, Gilead could have a nice quarter.
3. Will any hints be given about potential deals?
At the end of the second quarter, Gilead sat on a cash stockpile totaling $24.6 billion (including cash, cash equivalents, and marketable securities). Inquiring minds want to know what the biotech will do with that money.
Some of it will go to share buybacks. However, Gilead CFO Robin Washington noted in her second-quarterearnings callcomments that the company would probably slow down repurchases in the second half of the year. Some will also go to pay out dividends, but Gilead spent only $1.2 billion on dividends in the first six months of the year.
The only acquisition Gilead has made so far in 2016 is the purchase of Nimbus Apollo, in May. Gilead spent $400 million up front in the buyout. That amounts to pocket change for the biotech.
Gilead has a lot of cash that it could use to forge a deal to bolster its pipeline. Any news (actually, any hint) that it is looking to make a smart strategic acquisition should be good for the stock.
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Keith Speights owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on 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. | AbbVie 's(NYSE: ABBV) Viekira and Merck 's(NYSE: MRK) Zepatier go head-to-head with Harvoni. Gilead seems to have fended off AbbVie pretty well, although Viekira is claiming its fair share of the market. The addition of Epclusa to its lineup should help Gilead battle more effectively against AbbVie and Merck. | AbbVie 's(NYSE: ABBV) Viekira and Merck 's(NYSE: MRK) Zepatier go head-to-head with Harvoni. Gilead seems to have fended off AbbVie pretty well, although Viekira is claiming its fair share of the market. The addition of Epclusa to its lineup should help Gilead battle more effectively against AbbVie and Merck. | AbbVie 's(NYSE: ABBV) Viekira and Merck 's(NYSE: MRK) Zepatier go head-to-head with Harvoni. Gilead seems to have fended off AbbVie pretty well, although Viekira is claiming its fair share of the market. The addition of Epclusa to its lineup should help Gilead battle more effectively against AbbVie and Merck. | AbbVie 's(NYSE: ABBV) Viekira and Merck 's(NYSE: MRK) Zepatier go head-to-head with Harvoni. Gilead seems to have fended off AbbVie pretty well, although Viekira is claiming its fair share of the market. The addition of Epclusa to its lineup should help Gilead battle more effectively against AbbVie and Merck. |
26403.0 | 2016-10-25 00:00:00 UTC | 5 Deeply Undervalued Stocks with Great Dividends (GM, F, CLDT, HT, ABBV) | ABBV | https://www.nasdaq.com/articles/5-deeply-undervalued-stocks-with-great-dividends-gm-f-cldt-ht-abbv-2016-10-25 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Income investors might not have been as comfortable as usual for much of the last decade. Thanks to the Federal Reserve quintupling its balance sheet since the financial crisis as well as other extraordinary measures taken by the central bank, interest rates remain near historical lows, even seven years after the economic "recovery" began in June of 2009.
While this might be great for financing the massive and growing national debt as well for other debtors, it has been a huge albatross for savers and retirees. Traditional interest bearing vehicles like certificates of deposit pay practically nothing. This is forcing millions of savers out of their comfort zone and into the equity markets in their search for a decent yield.
This is a key reason traditional dividend sectors like Consumer Staples and Utilities are selling at stretched valuation levels based on historical averages. To me, these are two of the most dangerous areas of the current market to be invested in, although both sectors are usually thought of as "low beta" (low volatility) within equities.
Desperate income seekers are paying north of 20 times earnings for entities showing little in the way of earnings or revenue growth, and only to capture a three percent yield. I am avoiding both sectors completely within my own portfolio. When the day of reckoning comes, it will not be pretty for holders of these sectors.
I think income investors need to think outside of the box and explore other opportune areas to earn yield within the equity market.
The Top 10 S&P 500 Dividend Stocks to Buy Now
Here are the stocks that I invest in for dividends within my own portfolio.
Deeply Undervalued Stocks with Great Dividends: General Motors Company (GM)
Let's start with General Motors Company ( GM ), which reports quarterly numbers early next week. I expect the American manufacturing icon to easily beat expectations. First, because the company has blown away the consensus bottom line estimate for five straight quarters. In addition, the consensus estimate has fallen from $1.52 a share three months ago to a current $1.44 a share.
This is a bogey I expect General Motors to easily step over next week.
North American auto sales have likely plateaued after last year's record levels. However, gas prices are likely to remain low given the glut in crude. This means the company's overall sales mix will remain tilted to trucks and SUVs which have much, much higher profit margins than cars. Consumers are more inclined to purchase the roomy gas-guzzlers when the cost to fill up remains low.
Car sales in Europe look to be on the mend and after years of recession-level sales. This pent up demand should mean several years of slowly improving vehicle sales.
The most bullish news on the company, however is that they are killing it in China, the largest auto market in the world that seems to get overlooked. GM continues to take market share via joint ventures in the Middle Kingdom and is well positioned in this critical market for the future.
The company also continues to return cash to shareholders via stock buybacks and dividends. The shares currently yield 4.8% and sell for less than six times this year's earnings. GM is one of the best combinations of yield, growth, and value in the current market.
Deeply Undervalued Stocks with Great Dividends: Ford Motor Company (F)
I also have a stake in competitor, Ford Motor Company ( F ), but only half the shares I hold in GM. General Motors is executing on its growth strategy better right now than its cross-town rival.
10 Stocks That Every Investor Should Own
However, selling at six times earnings with a five percent yield also makes Ford a good value in the current market.
Deeply Undervalued Stocks with Great Dividends: Chatham Lodging Trust (CLDT)
I also continue to like the lodging real estate investment trust sector for yield opportunities. This is especially true as many names are 25% to 35% off from 52-week highs as fundamentals have deteriorated slightly as the economy has averaged only one percent GDP growth over the past three quarters.
However, there are solid long-term values here. Chatham Lodging Trust ( CLDT ) is one such name. I have owned the shares since they sold at $10 a piece in 2012. They now go for $18.00 a share even after their recent sell-off. Dividends have more than doubled over that time frame and this entity now yields over seven percent and makes payouts monthly. It has an extremely solid management team and sells for under eight times FFO (Funds from Operations).
Deeply Undervalued Stocks with Great Dividends: Hersha Hospitality Trust (HT)
Hersha Hospitality Trust ( HT ) is a lodging REIT that is a recent addition into my income portfolio. It is valued similarly to Chatham and has a yield of six percent.
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The REIT has also seen some insider buying of late as well which is always a good vote of confidence.
Deeply Undervalued Stocks with Great Dividends: AbbVie Inc
Finally, moving on to the beaten down biotech sector; one must like AbbVie Inc ( ABBV ) at current levels. The stock yields more (3.7%) than a lot of Utility stocks at current prices. It is also experiencing double-digit growth in earnings and revenue and goes for just over 12 times this year's earnings per share. A more than solid combination of growth, income, and value.
The low interest rate environment that has taken hold of the market for most of the last decade is likely to be with us for at least a few more years. Income investors should plan accordingly and target the right parts of the market for income at a more than reasonable price.
The post 5 Deeply Undervalued Stocks with Great Dividends (GM, F, CLDT, HT, 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. | Deeply Undervalued Stocks with Great Dividends: AbbVie Inc Finally, moving on to the beaten down biotech sector; one must like AbbVie Inc ( ABBV ) at current levels. The post 5 Deeply Undervalued Stocks with Great Dividends (GM, F, CLDT, HT, ABBV) appeared first on InvestorPlace . Thanks to the Federal Reserve quintupling its balance sheet since the financial crisis as well as other extraordinary measures taken by the central bank, interest rates remain near historical lows, even seven years after the economic "recovery" began in June of 2009. | Deeply Undervalued Stocks with Great Dividends: AbbVie Inc Finally, moving on to the beaten down biotech sector; one must like AbbVie Inc ( ABBV ) at current levels. The post 5 Deeply Undervalued Stocks with Great Dividends (GM, F, CLDT, HT, ABBV) appeared first on InvestorPlace . Deeply Undervalued Stocks with Great Dividends: General Motors Company (GM) Let's start with General Motors Company ( GM ), which reports quarterly numbers early next week. | Deeply Undervalued Stocks with Great Dividends: AbbVie Inc Finally, moving on to the beaten down biotech sector; one must like AbbVie Inc ( ABBV ) at current levels. The post 5 Deeply Undervalued Stocks with Great Dividends (GM, F, CLDT, HT, ABBV) appeared first on InvestorPlace . Deeply Undervalued Stocks with Great Dividends: General Motors Company (GM) Let's start with General Motors Company ( GM ), which reports quarterly numbers early next week. | Deeply Undervalued Stocks with Great Dividends: AbbVie Inc Finally, moving on to the beaten down biotech sector; one must like AbbVie Inc ( ABBV ) at current levels. The post 5 Deeply Undervalued Stocks with Great Dividends (GM, F, CLDT, HT, ABBV) appeared first on InvestorPlace . The shares currently yield 4.8% and sell for less than six times this year's earnings. |
26404.0 | 2016-10-24 00:00:00 UTC | Can AbbVie (ABBV) Sustain Earnings Beat Trend in Q3? | ABBV | https://www.nasdaq.com/articles/can-abbvie-abbv-sustain-earnings-beat-trend-in-q3-2016-10-24 | nan | nan | We expect pharma company AbbVie Inc.ABBV to beat expectations when it reports third-quarter earnings results on Oct 28 before market open. AbbVie 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%.
ABBVIE INC Price and EPS Surprise
ABBVIE INC Price and EPS Surprise | ABBVIE INC Quote
Let's see how things are shaping up for the company this quarter:
Factors at Play
At the second-quarter conference call, management had said that it expects third-quarter earnings in the range of $1.18 to $1.20 per share. Revenues were guided to see high single-digit operational growth, excluding a modest negative foreign exchange impact.
Key drug Humira should remain the main growth driver in the third quarter. Growing awareness, strong underlying demand, favorable clinical data, additional indications and market share gains should help the product to continue contributing significantly to the top line.
However, a factor to be considered for international Humira sales is the impact of Remicade and Enbrel biosimilars.
Another area of focus is the performance of Imbruvica which was added to AbbVie's portfolio following its May 2015 acquisition of Pharmacyclics. Imbruvica has multi-billion dollar potential that the company is exploring to expand Imbruvica's label into solid tumors and autoimmune diseases.
The drug recorded strong sales and share gains in the second quarter, a trend we expect to continue.
AbbVie is positioning Imbruvica as a "pipeline in a molecule" -- a treatment that is currently used in a wide range of studies. Imbruvica is partnered with Johnson & Johnson JNJ , which recorded third-quarter Imbruvica sales of $349 million.
Other drugs like Duopa and Creon should also do well in the quarter to be reported.
However, Abbvie's Hepatitis C virus (HCV) treatment, Viekira, will continue to be impacted by the addition of liver injury warnings to the labels of AbbVie's HCV treatments as well as new competition in the market.
What Our Model Indicates
Our proven model shows that AbbVie is likely to beat on earnings because it has the right combination of the two key ingredients.
Positive Zacks ESP:Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.83%. This is a meaningful indicator of a likely positive earnings surprise.
Zacks Rank #3 (Hold): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of ABbVie's Zacks Rank #3 and +0.83% ESP makes us confident in looking for an earnings beat in the upcoming release.
Other Stocks to Consider
Some other stocks in the large-cap healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are:
Amgen Inc. AMGN , which is scheduled to report results on Oct 27. The company has an Earnings ESP of +1.08% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Novartis AG NVS with an Earnings ESP of +2.54% and a Zacks Rank #3. The company is scheduled to release results on Oct 25.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The combination of ABbVie's Zacks Rank #3 and +0.83% ESP makes us confident in looking for an earnings beat in the upcoming release. We expect pharma company AbbVie Inc.ABBV to beat expectations when it reports third-quarter earnings results on Oct 28 before market open. AbbVie had delivered a positive earnings surprise of 5.00% in the second quarter. | We expect pharma company AbbVie Inc.ABBV to beat expectations when it reports third-quarter earnings results on Oct 28 before market open. 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. AbbVie had delivered a positive earnings surprise of 5.00% in the second quarter. | ABBVIE INC Price and EPS Surprise ABBVIE INC Price and EPS Surprise | ABBVIE INC Quote Let's see how things are shaping up for the company this quarter: Factors at Play At the second-quarter conference call, management had said that it expects third-quarter earnings in the range of $1.18 to $1.20 per share. 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. We expect pharma company AbbVie Inc.ABBV to beat expectations when it reports third-quarter earnings results on Oct 28 before market open. | The combination of ABbVie's Zacks Rank #3 and +0.83% ESP makes us confident in looking for an earnings beat in the upcoming release. We expect pharma company AbbVie Inc.ABBV to beat expectations when it reports third-quarter earnings results on Oct 28 before market open. AbbVie had delivered a positive earnings surprise of 5.00% in the second quarter. |
26405.0 | 2016-10-21 00:00:00 UTC | Bristol-Myers Squibb (BMY) Q3 Earnings: What's in Store? | ABBV | https://www.nasdaq.com/articles/bristol-myers-squibb-bmy-q3-earnings%3A-whats-in-store-2016-10-21 | nan | nan | Bristol-Myers Squibb CompanyBMY is scheduled to report third-quarter 2016 results on Oct 27, before the market opens. Last quarter, the company posted a positive earnings surprise of 2.99%.
Bristol-Myers has an impressive track record so far. The company's earnings surpassed expectations in each of the four trailing quarters, with an average positive surprise of 15.56%. Will Bristol-Myers be able to beat estimates this time around as well? Let's see how things are shaping up for this quarter.
Factors to Consider This Quarter
Bristol-Myers' high-profile immuno-oncology drug, Opdivo, continues to demonstrate robust performance globally driven by strong demand. Opdivo sales in the U.S. are being driven by the lung cancer and renal cell carcinoma indications. In the melanoma indication, robust performance of the Opdivo+Yervoy (Bristol-Myers' other immuno-oncology drug) regimen is contributing to growth of both the products. Securing reimbursement for the combination regimen across Europe should further aid revenues. Meanwhile, international sales of Yervoy are expected to be under pressure due to competition from PD-1 agents.
Another oncology drug, Sprycel, should continue to keep up its performance in the third quarter of 2016. Meanwhile, multiple myeloma drug, Empliciti's initial sales have been encouraging despite stiff competition.
Anticoagulant Eliquis' performance should continue to accelerate. It is well on its way to become the number one novel anticoagulant globally on the back of strong demand trends from key markets globally. Rheumatoid arthritis drug, Orencia, should also contribute significantly to the company's top line on the back of high demand.
With key products performing well, Bristol-Myers raised its 2016 earnings guidance, primarily for Opdivo and Eliquis, at the time of announcing second-quarter 2016 results. For 2016, the company expects earnings in the range of $2.55 to $2.65 per share (old guidance: $2.50 to $2.60 per share).
Bristol-Myers expects the HIV and HCV franchises to remain under competitive pressure.
During the third quarter, Bristol-Myers remained active on the deal-making and acquisition front in the immuno-oncology space. It collaborated with companies like Johnson & Johnson JNJ and AbbVie Inc. ABBV for the evaluation of Opdivo in combination with their cancer treatments.
On the expense front, while marketing, selling and administrative expenses are expected to decrease in the low single-digit range, research and development expenses will increase in the mid-teen range in 2016 due to investments in Opdivo and the immuno-oncology programs.
On the third-quarter 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 +3.08% since the Most Accurate Estimate stands at 67 cents, higher than the Zacks Consensus Estimate of 65 cents.
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.
BRISTOL-MYERS Price and EPS Surprise
BRISTOL-MYERS Price and EPS Surprise | BRISTOL-MYERS Quote
A Stock to Consider
Here is a health care stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Amgen Inc. AMGN is slated to release third-quarter results on Oct 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It collaborated with companies like Johnson & Johnson JNJ and AbbVie Inc. ABBV for the evaluation of Opdivo in combination with their cancer treatments. Click to get this free report BRISTOL-MYERS (BMY): 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. Factors to Consider This Quarter Bristol-Myers' high-profile immuno-oncology drug, Opdivo, continues to demonstrate robust performance globally driven by strong demand. | Click to get this free report BRISTOL-MYERS (BMY): 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. It collaborated with companies like Johnson & Johnson JNJ and AbbVie Inc. ABBV for the evaluation of Opdivo in combination with their cancer treatments. Factors to Consider This Quarter Bristol-Myers' high-profile immuno-oncology drug, Opdivo, continues to demonstrate robust performance globally driven by strong demand. | Click to get this free report BRISTOL-MYERS (BMY): 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. It collaborated with companies like Johnson & Johnson JNJ and AbbVie Inc. ABBV for the evaluation of Opdivo in combination with their cancer treatments. Zacks ESP: The Earnings ESP for Bristol-Myers is +3.08% since the Most Accurate Estimate stands at 67 cents, higher than the Zacks Consensus Estimate of 65 cents. | It collaborated with companies like Johnson & Johnson JNJ and AbbVie Inc. ABBV for the evaluation of Opdivo in combination with their cancer treatments. Click to get this free report BRISTOL-MYERS (BMY): 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. Factors to Consider This Quarter Bristol-Myers' high-profile immuno-oncology drug, Opdivo, continues to demonstrate robust performance globally driven by strong demand. |
26406.0 | 2016-10-21 00:00:00 UTC | Will Amgen (AMGN) Sustain its Earnings Beat Trend in Q3? | ABBV | https://www.nasdaq.com/articles/will-amgen-amgn-sustain-its-earnings-beat-trend-in-q3-2016-10-21 | nan | nan | We expect biotech major Amgen Inc.AMGN to beat expectations when it reports third-quarter earnings results on Oct 27 after market close. Amgen had delivered a positive earnings surprise of 3.65% in the second quarter.
Amgen's performance has been pretty impressive, with consistent positive surprises. The average earnings beat over the last four quarters is 11.55%.
AMGEN INC Price and EPS Surprise
AMGEN INC Price and EPS Surprise | AMGEN INC Quote
Let's see how things are shaping up for the company this quarter
Factors at Play
Amgen's growth products like Enbrel, Xgeva, Vectibix, Sensipar, Prolia and Nplate should continue to perform well. While new patient adoption and repeat injections should drive Prolia, Xgeva should benefit from its superior clinical profile versus competition.
However, Enbrel is facing increasing competition in the dermatology segment which could hurt sales.
Moreover, Kyprolis sales fell below expectations in the second quarter due to increased competition in the multiple myeloma market. It remains to be seen if sales pick up in the third quarter.
Meanwhile, Epogen will continue to be impacted by further share decline at Fresenius Medical Care and the potential for additional switching to Aranesp.
The bottom line will continue to be driven by the company's overall cost-cutting efforts and share buyback. The company's restructuring plan should make it leaner and more cost efficient.
Investor focus will remain on the performance of the company's PCSK9 inhibitor, Repatha, its acceptance in the physician community, the formulary scenario for the product and its performance in other territories where it is being launched. We expect Repatha sales to pick up once positive outcomes data is available and added to the label. The impact of the launch of Zarxio (biosimilar) on Neupogen sales will also be in focus.
What Our Model Indicates
Our proven model shows that Amgen is likely to beat on earnings because it has the right combination of the two key ingredients.
Positive Zacks ESP:Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +1.79%. This is a meaningful indicator of a likely positive earnings surprise.
Zacks Rank #3 (Hold): Note that stocks with Zacks Ranks of #1, 2 or 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Amgen's Zacks Rank #3 and +1.79% ESP makes us confident in looking for an earnings beat in the upcoming release.
Other Stocks to Consider
Some other stocks in the healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are:
AbbVie Inc. ABBV is scheduled to report results on Oct 28. 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 (Strong Buy) stocks here .
Achillion Pharmaceuticals, Inc. ACHN has an Earnings ESP of +12.5% and a Zacks Rank #2. It is expected to report its results on Nov 3.
Novartis AG NVS has an Earnings ESP of +2.54% and a Zacks Rank #3. The company is scheduled to release results on Oct 25.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Stocks to Consider Some other stocks in the healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is scheduled to report results on Oct 28. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. While new patient adoption and repeat injections should drive Prolia, Xgeva should benefit from its superior clinical profile versus competition. | Other Stocks to Consider Some other stocks in the healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is scheduled to report results on Oct 28. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AMGEN INC Price and EPS Surprise AMGEN INC Price and EPS Surprise | AMGEN INC Quote Let's see how things are shaping up for the company this quarter Factors at Play Amgen's growth products like Enbrel, Xgeva, Vectibix, Sensipar, Prolia and Nplate should continue to perform well. | Other Stocks to Consider Some other stocks in the healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is scheduled to report results on Oct 28. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AMGEN INC Price and EPS Surprise AMGEN INC Price and EPS Surprise | AMGEN INC Quote Let's see how things are shaping up for the company this quarter Factors at Play Amgen's growth products like Enbrel, Xgeva, Vectibix, Sensipar, Prolia and Nplate should continue to perform well. | Other Stocks to Consider Some other stocks in the healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are: AbbVie Inc. ABBV is scheduled to report results on Oct 28. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The combination of Amgen's Zacks Rank #3 and +1.79% ESP makes us confident in looking for an earnings beat in the upcoming release. |
26407.0 | 2016-10-20 00:00:00 UTC | Nothing Can Stop Merck & Co., Inc. (MRK) Stock Now | ABBV | https://www.nasdaq.com/articles/nothing-can-stop-merck-co.-inc.-mrk-stock-now-2016-10-20 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of pharmaceutical giant Merck & Co., Inc. (NYSE: MRK ) have been on a roll lately. MRK stock jumped last week and reached its highest levels over the past year. It also returned to highs last seen in 2001, a distant memory considering this was back when the dot-com bubble was still bursting. Returning to its all-time highs of nearly two decades ago will still take time, but Merck stock's momentum could easily continue.
Source: Ryan via Wikimedia (Modified)
The positive news for MRK stemmed from favorable results for a cancer drug called Keytruda that treats non-small cell lung cancer.
The drug is in a category of revolutionary treatments known as immunoncology that use the body's own immune system to tackle even the most serious cancerous tumors. More on that below.
Pharma rival Bristol-Myers Squibb Co (NYSE: BMY ) offers a competing treatment called Opdivo, which also focuses on NSCLC but targets a larger class of patients. Merck & Co.'s drug is more targeted to patients with a higher level of a protein called PD-L1, and the recent results confirmed it works better in patients with these higher levels. Bristol also released results to indicate this to be the case.
The market's recent excitement about MRK is certainly warranted and continues a trend of positive news for Keytruda over Opdivo. However, the case can be made that both drugs stand a good chance of generating several billions of dollars in new sales within a couple of years for both firms.
7 Tech Stocks That Will Ride Healthcare to Riches
The emphasis on Keytruda is also overshadowing Merck's overall appeal as a worthy investment candidate in the pharmaceutical industry.
Merck & Co. and the Overall Appeal of Pharma
Overall, the pharmaceutical industry is a great place to find appealing individual investment opportunities. Patent expiration of major "blockbuster" drugs meant lost revenue for many years, but that appeared to bottom out last year. For all of 2016, the industry is projected to report positive sales.
The immunoncology space has perhaps the best potential for investment upside. In addition to MRK and Bristol, biotechnology (closely related to pharma, especially the larger players) firm Amgen, Inc. (NASDAQ: AMGN ) sells IO-based drug Blincyto to combat leukemia. AstraZeneca plc (ADR) (NYSE: AZN ) is looking to beef up its IO research over time. Kite Pharma Inc (NASDAQ: KITE ) is a smaller biotech firm competing in the space and is focused on blood cancers, including leukemia and lymphomas.
Pharma stocks are also trading at very reasonable P/E ratios right now. Many are well below market multiples, which currently stand at 24.3 on a trailing basis and 18.1 on a forward basis. This basic measure of a stock's value is simple, but important, and as we'll see with MRK stock, looking at both the historical and prospective level can be important.
Finally, the prospect of higher interest rates could be having an adverse effect on the share prices of firms in industries with above-average dividend yields. This is because investors are starting to shift back to bonds at the expense of income-producing stocks. Yields are still low, but the prices of bonds are much less volatile than stocks.
This could explain the recent tepid performance of pharma stocks. Most of the key players again sport yields above 3%, which is well above the market average of 2.1%.
Merck Stock in Focus
MRK stock has momentum right now. It operates in an appealing industry, and is a first mover in the IO space. Merck & Co. stock is currently riding high, while Bristol's stock has fallen to $50 per share, or 35% below its highs in the past year.
In addition to Keytruda, Merck has an appealing offering of new and existing drugs, and those in the pipeline have strong potential. Januvia is Merck & Co.'s top selling drug and treats diabetes. Bridion is an anesthetic. Zepatier treats hepatitis C and will start competing with offerings from Gilead Sciences, Inc. (NASDAQ: GILD ) and AbbVie Inc (NYSE: ABBV ). MRK also has a sizeable offering to treat HIV and a promising pipeline in the space.
Despite the excitement with new drugs, Merck & Co.'s sales have yet to move meaningfully forward. Analysts project only roughly $40 billion in sales for both this year and 2017, or still below the $48 billion reported back in 2011. It will be a couple of years before the new offerings completely offset patent expirations, such as arthritis drug Remicade.
However, MRK's profit growth is returning with a vengeance. Earnings per share were only $1.56 last year, which makes the trailing price-to-earnings ratio of 34 look rather high. But this year, analysts expect earnings to more than double to $3.75 and a further boost to $3.86 in 2017. That puts the forward P/E at 16.5, or well below the market. What a difference a year can make.
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Merck & Co.'s current dividend yield of 3% is right at the industry average, but still well above the market's average payout rate.
Bottom Line on MRK Stock
Keytruda's momentum over Opdivo is certainly great, but that's only one of the positives supporting MRK stock's overall investment appeal. The fact Merck & Co. stock is at its current highs shouldn't worry investors.
In fact, momentum-minded buyers might find the uptrend even more encouraging and indicative of further upside. It's also likely that value investors would buy MRK stock on any dips, giving further support to the shares these days.
As of this writing, Ryan Fuhrmann was long Gilead Sciences.
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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. | Zepatier treats hepatitis C and will start competing with offerings from Gilead Sciences, Inc. (NASDAQ: GILD ) and AbbVie Inc (NYSE: ABBV ). Pharma rival Bristol-Myers Squibb Co (NYSE: BMY ) offers a competing treatment called Opdivo, which also focuses on NSCLC but targets a larger class of patients. 7 Tech Stocks That Will Ride Healthcare to Riches The emphasis on Keytruda is also overshadowing Merck's overall appeal as a worthy investment candidate in the pharmaceutical industry. | Zepatier treats hepatitis C and will start competing with offerings from Gilead Sciences, Inc. (NASDAQ: GILD ) and AbbVie Inc (NYSE: ABBV ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of pharmaceutical giant Merck & Co., Inc. (NYSE: MRK ) have been on a roll lately. Merck & Co. stock is currently riding high, while Bristol's stock has fallen to $50 per share, or 35% below its highs in the past year. | Zepatier treats hepatitis C and will start competing with offerings from Gilead Sciences, Inc. (NASDAQ: GILD ) and AbbVie Inc (NYSE: ABBV ). Merck & Co. stock is currently riding high, while Bristol's stock has fallen to $50 per share, or 35% below its highs in the past year. Bottom Line on MRK Stock Keytruda's momentum over Opdivo is certainly great, but that's only one of the positives supporting MRK stock's overall investment appeal. | Zepatier treats hepatitis C and will start competing with offerings from Gilead Sciences, Inc. (NASDAQ: GILD ) and AbbVie Inc (NYSE: ABBV ). Merck Stock in Focus MRK stock has momentum right now. Merck & Co. stock is currently riding high, while Bristol's stock has fallen to $50 per share, or 35% below its highs in the past year. |
26408.0 | 2016-10-20 00:00:00 UTC | 3 Healthcare Stocks That Are Looking Cheap | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-are-looking-cheap-2016-10-20 | nan | nan | Image source: Getty Images.
Investors focused on the healthcare sector seem to be getting scared -- and it's not even Halloween yet. Healthcare stocks have taken a beating recently. But remember what Warren Buffett once famously said: "Be fearful when others are greedy, and be greedy when others are fearful."
If you want to follow Buffett's advice (and why shouldn't you?!), there are plenty of good deals to be found right now. Here are three healthcare stocks that are looking cheap.
A megablockbuster and a loaded pipeline
AbbVie (NYSE: ABBV) counts over 30 products on the market. One of those products, though, generates over 60% of the company's total revenue: Humira. In the first half of 2016, sales for the autoimmune disease drug totaled $7.2 billion, up 16% compared to the prior-year period.
While Humira certainly remains the primary driver behind AbbVie's success, the biotech's lineup includes a couple of other enormously successful drugs. Imbruvica, which is co-marketed by Johnson & Johnson , pulled in revenue of $820 million in the first half of the year. Hepatitis C treatment Viekira made $833 million in the same period.
There's also a lot for investors to like about AbbVie's pipeline. The biotech has over 50 clinical studies in progress. 15 of those are in late-stage development. Two pipeline candidates could emerge as heirs to Humira -- ABT-494 and risankizumab. Elagolix stands out as another drug with great potential. Zacks analyst David Bautz thinks if Elagolix wins regulatory approval, it could reach peak annual sales of $1.5 billion for the endometriosis indication and $2.6 billion for the uterine fibroids indication.
AbbVie trades at less than 11 times forward earnings. With analysts projecting that the company could grow earnings by 16% annually over the next five years, this stock looks attractively valued. Plus, investors also shouldn't overlook AbbVie's dividend yield of 3.73%, one of the better yields available in the healthcare sector.
Pharmacy benefits manager with benefits
Express Scripts (NASDAQ: ESRX) ranks as the largest pharmacy benefits manager (PBM) in the U.S. Like other PBMs, Express Scripts should benefit from the aging U.S. population. As Americans grow older, they're more likely to need prescription drugs. This increased usage of prescription drugs should bode well for demand for PBMs, which exist to help control drug costs.
Size gives Express Scripts a competitive advantage. Because of its 85 million covered lives, the PBM has more leverage in negotiating with drug companies. That large size also helps Express Scripts achieve operational economies of scale.
Shares of the PBM are down around 20% year to date. The primary reason behind this drop is a dispute between Express Scripts and its second-largest customer, Anthem . The two companies are currently in litigation.
My view is that risk from the Anthem dispute is already largely baked into Express Scripts' share price. The stock currently trades at a little over 10 times forward earnings. That's well below the PBM's historical levels. Demographic trends should enable Express Scripts to continue to grow at a solid rate. I think this growth potential combined with Express Scripts' attractive valuation make this a stock for investors to seriously consider.
Jazz up your portfolio
Soaring sales of Xyrem have been music to the ears of Jazz Pharmaceuticals (NASDAQ: JAZZ) shareholders. The narcolepsy drug brought in revenue of more than $530 million the first half of 2016, up 15% compared to the prior-year period.
Three other drugs in Jazz's lineup also make solid contributions to the company's financial success. Leukemia drug Erwinaze made over $100 million in the first six months of the year. Sales for Defitelio, which treats hepatic veno-occlusive disease, topped $51 million. Pain medication Prialt generated revenue of more than $14 million during the period.
Jazz hopes to soon have another big winner. The company recently initiated a rolling submission of a New Drug Application (NDA) for Vyxeos. Jazz picked up the acute myeloid leukemia drug with its acquisition of Celator earlier this year.
This biotech appears to offer investors growth at a very reasonable price. Wall Street thinks Jazz Pharmaceuticals will be able to increase earnings by 18% annually over the next five years. Assuming Vyxeos wins regulatory approval, I think those projections seem realistic. Jazz's stock trades at just over 10 times forward earnings. That makes Jazz a relatively inexpensive biotech stock for investors to put on their watch list.
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Keith Speights owns shares of Express Scripts. The Motley Fool owns shares of Express Scripts. The Motley Fool recommends Anthem and 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. | A megablockbuster and a loaded pipeline AbbVie (NYSE: ABBV) counts over 30 products on the market. While Humira certainly remains the primary driver behind AbbVie's success, the biotech's lineup includes a couple of other enormously successful drugs. There's also a lot for investors to like about AbbVie's pipeline. | A megablockbuster and a loaded pipeline AbbVie (NYSE: ABBV) counts over 30 products on the market. While Humira certainly remains the primary driver behind AbbVie's success, the biotech's lineup includes a couple of other enormously successful drugs. There's also a lot for investors to like about AbbVie's pipeline. | A megablockbuster and a loaded pipeline AbbVie (NYSE: ABBV) counts over 30 products on the market. While Humira certainly remains the primary driver behind AbbVie's success, the biotech's lineup includes a couple of other enormously successful drugs. There's also a lot for investors to like about AbbVie's pipeline. | A megablockbuster and a loaded pipeline AbbVie (NYSE: ABBV) counts over 30 products on the market. While Humira certainly remains the primary driver behind AbbVie's success, the biotech's lineup includes a couple of other enormously successful drugs. There's also a lot for investors to like about AbbVie's pipeline. |
26409.0 | 2016-10-20 00:00:00 UTC | Can Biogen (BIIB) Keep the Earnings Streak Alive in Q3? | ABBV | https://www.nasdaq.com/articles/can-biogen-biib-keep-the-earnings-streak-alive-in-q3-2016-10-20 | nan | nan | Biogen Inc.BIIB , a well-known name in the multiple sclerosis (MS) market, will be reporting third-quarter 2016 earnings on Oct 26, before market open.Last quarter, the company delivered a positive earnings surprise of 11.09%.
Biogen's performance has been pretty impressive, with consistent positive surprises. The average earnings beat over the last four quarters is 11.39%.
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 emergence of the first progressive multifocal leukoencephalopathy (PML)-related death in a patient on oral MS drug, Tecfidera, investor focus has been on its performance.
Biogen is working on growing Tecfidera sales. Tecfidera demand is expected to remain relatively stable in the U.S. in the quarter. Outside the U.S., Tecfidera's performance in Germany will remain in focus.
While Tysabri should remain on a stable trajectory, the number of patients using Avonex and Plegridy combined will continue to decline as patients move toward oral treatments.
Zinbryta is expected to contribute modestly to revenues in the U.S. and EU. Zinbryta was launched in collaboration with AbbVie Inc. ABBV in August.
Meanwhile, Biogen intends to spin off its hemophilia business in early 2017. The new company will be named Bioverativ and will focus on the discovery, research, development and commercialization of treatments for hemophilia and other blood disorders.
Head count reduction and restructuring initiatives announced last year are expected to benefit operating expenses by about $250 million this year.
Focus on Call: Investor focus on the third-quarter call will remain on Tecfidera's scrip trends, news regarding additional PML cases, pipeline progress and acquisition plans.
Earnings Whispers
Our proven model does not conclusively show that Lilly 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 -1.41% as the Most Accurate estimate stands at $4.90 while the Zacks Consensus Estimate is pegged higher at $4.97.
Zacks Rank: Lilly'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.
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 healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are:
Amgen Inc. AMGN , which is slated to report results on Oct 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Novartis AG NVS with an Earnings ESP of +0.84% and a Zacks Rank #3. The company is scheduled to release results on Oct 25.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zinbryta was launched in collaboration with AbbVie Inc. ABBV in August. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): 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. Factors to Consider Since the emergence of the first progressive multifocal leukoencephalopathy (PML)-related death in a patient on oral MS drug, Tecfidera, investor focus has been on its performance. | Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): 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 was launched in collaboration with AbbVie Inc. ABBV in August. Biogen Inc.BIIB , a well-known name in the multiple sclerosis (MS) market, will be reporting third-quarter 2016 earnings on Oct 26, before market open.Last quarter, the company delivered a positive earnings surprise of 11.09%. | Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): 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 was launched in collaboration with AbbVie Inc. ABBV in August. Biogen Inc.BIIB , a well-known name in the multiple sclerosis (MS) market, will be reporting third-quarter 2016 earnings on Oct 26, before market open.Last quarter, the company delivered a positive earnings surprise of 11.09%. | Zinbryta was launched in collaboration with AbbVie Inc. ABBV in August. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): 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 Inc.BIIB , a well-known name in the multiple sclerosis (MS) market, will be reporting third-quarter 2016 earnings on Oct 26, before market open.Last quarter, the company delivered a positive earnings surprise of 11.09%. |
26410.0 | 2016-10-20 00:00:00 UTC | Gilead Sciences: Is the Bar Set Low Enough for a Beat? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-bar-set-low-enough-beat-2016-10-20 | nan | nan | GILD Year to Date Price Returns (Daily) data by YCharts .
Reigniting hope
It's possible that Gilead Sciences has fallen so out of favor with investors that the company will be able to overdeliver on analysts' anemic outlook. However, for that to happen, the company will need to deliver greater growth in HIV, a fast ramp-up in sales of Epclusa (its recently launched second-generation hepatitis C drug), and cost-cutting.
Over the past year, Gilead Sciences has been refreshing its lineup of combination HIV therapies by replacing its widely used Viread with TAF, a new formulation of Viread that works as well, but that's safer and therefore can be used in sicker patients. Thanks to TAF-based products, Gilead Sciences HIV sales grew 15% year over year in Q2.
Gilead Sciences can also offset pricing headwinds if Epclusa, a pan-genotypic hepatitis C drug approved by the FDA this summer, got off to a fast start. Gilead Sciences is positioning Epclusa to replace Sovaldi in genotype 2 and 3 patients, and since it carries a higher price tag than Sovaldi, a quick ramp-up in sales could support margins and boost earnings. According to Credit Suisse, while Sovaldi's prescription volume fell 37% quarter over quarter in Q3, combined Epclusa and Sovaldi prescription volume grew 19% versus Q2.
The company could also get some help if management accelerated cost cuts to selling, general, and administrative (SG&A) expenses, and slowed increases to spending on research and development. Exiting Q2, management lowered its SG&A spending target for the year by as much as $300 million.
Looking ahead
The headwinds facing Gilead Sciences in the short term are significant, but if HIV sales, Epclusa revenue, and belt-tightening boost the bottom line, it may give shares a much-needed kick start.
If Q3 financials disappoint yet again, then shares could struggle for a bit longer. However, investors might be served best by staying the course. After all, Gilead Sciences shares have suffered bumps and bruises in the past, yet investors are still up 265% since 2011, and that's far better than the 86% return for the S&P 500 .
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Todd Campbell owns shares of 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 @ebcapital,to see more articles like this.
The Motley Fool owns shares of Express Scripts. The Motley Fool owns shares of and recommends Gilead Sciences, and has the following options: short October 2016 $85 calls on 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. | However, for that to happen, the company will need to deliver greater growth in HIV, a fast ramp-up in sales of Epclusa (its recently launched second-generation hepatitis C drug), and cost-cutting. The company could also get some help if management accelerated cost cuts to selling, general, and administrative (SG&A) expenses, and slowed increases to spending on research and development. Looking ahead The headwinds facing Gilead Sciences in the short term are significant, but if HIV sales, Epclusa revenue, and belt-tightening boost the bottom line, it may give shares a much-needed kick start. | Thanks to TAF-based products, Gilead Sciences HIV sales grew 15% year over year in Q2. According to Credit Suisse, while Sovaldi's prescription volume fell 37% quarter over quarter in Q3, combined Epclusa and Sovaldi prescription volume grew 19% versus Q2. The Motley Fool owns shares of Express Scripts. | Gilead Sciences is positioning Epclusa to replace Sovaldi in genotype 2 and 3 patients, and since it carries a higher price tag than Sovaldi, a quick ramp-up in sales could support margins and boost earnings. Looking ahead The headwinds facing Gilead Sciences in the short term are significant, but if HIV sales, Epclusa revenue, and belt-tightening boost the bottom line, it may give shares a much-needed kick start. The Motley Fool owns shares of and recommends Gilead Sciences, and has the following options: short October 2016 $85 calls on Gilead Sciences. | Thanks to TAF-based products, Gilead Sciences HIV sales grew 15% year over year in Q2. The Motley Fool owns shares of Express Scripts. The Motley Fool owns shares of and recommends Gilead Sciences, and has the following options: short October 2016 $85 calls on Gilead Sciences. |
26411.0 | 2016-10-19 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-johnson-johnson-2016-10-19 | nan | nan | The past year has been a rough one for healthcare stocks. Over the past 12 months, the broad market S&P 500 benchmark has risen about 4.6%, while the iShares U.S. Healthcare index has notched a meager 1.7% gain. Two of the largest holdings in the healthcare index, AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) , are outperforming both benchmarks (up 6.4% and 20.5%, respectively), and investors are right to wonder which is the better buy right now.
Let's pit them against each other to see which stock is better suited to your portfolio.
Stock performance and value
Both stocks have been trading below their respective 52-week highs, but the healthcare conglomerate (Johnson & Johnson) has a big lead on the biopharma pure play (AbbVie), as mentioned above. Bigger gains usually lead to bigger price tags, and this is certainly the case here. At recent prices, Johnson & Johnson shares are trading around 22 times trailing earnings, or about 17 times this year's earnings estimates.
While J&J shares are cheaper than the average stock in the S&P 500, AbbVie's stock is a relative bargain. You can scoop up the drugmaker's stock at just 17 times trailing earnings, or about 11 times this year's expected earnings.
Dividend battle
When it comes to returning cash, AbbVie notches some important victories. Since the company's inception at the beginning of 2013, it's raised its quarterly dividend more than 42% to $0.57 per share, which delivers a yield of about 3.8% at recent prices. Over the same period, J&J's quarterly payout increased just 31% to $0.80 per share and offers a less attractive 2.7% yield.
On its own, AbbVie can't hold a candle to J&J's 54-year streak of annual increases. Include its pre-2013 years as part of Abbott Laboratories , though, and AbbVie comes pretty close, with an impressive 44 consecutive years of ever-higher payouts.
On the surface, it seems AbbVie's dividend has more room to grow. Over the past 12 months it's used just 46.4% of free cash flow to make payments, versus 59.2% on the same metric for Johnson & Johnson.
Products and patents
AbbVie has outshined J&J so far, but here's where it begins to lose its luster. Its crown jewel, Humira, has been the world's best selling drug for years, but its growth outside the U.S. has slowed to a crawl. In the first half, U.S. sales grew 29% over the previous-year period, pushing total Humira revenue up 16.2% to an annualized run rate of $15.45 billion, despite the international slowdown.
Unfortunately for AbbVie, its most important U.S. Humira patent expires this year, which could lead to hurricane force headwinds in the near future. The drug comprised 62% of total first half revenue for the company. Management contends a vast portfolio of related patents could keep biosimilar competition from affecting U.S. Humira sales until 2022, but the timing is anybody's guess.
AbbVie's second largest growth driver is a blood cancer therapy it sells in partnership with Johnson & Johnson. Imbruvica sales started soaring after it became the first chemotherapy-free treatment option for newly diagnosed patients with the most common form of leukemia earlier this year. AbbVie thinks its share of Imbruvica sales could add $7 billion to its annual top line. That's a big gain, from its current annual run rate of $1.76 billion based on second quarter sales.
Imbruvica's potential is great for both companies, but it's important to note that AbbVie spent $21 billion acquiring its rights to Imbruvica sales, while J&J partnered early with the company that discovered the drug for just $150 million upfront. Yes, Johnson & Johnson's deal also involved subsequent milestone payments, but they clearly got the better price in this arrangement.
Johnson & Johnson also faces biosimilar competition for aging anti-inflammatory drugs, but its income sources are far more diverse. Its relatively stable consumer and medical device segments produce more than a third of the company's pre-tax profit. In J&J's increasingly important pharmaceutical segment, six drugs (including Imbruvica) grew sales by a double-digit percentage over the previous year period, and they're all on pace to top $1 billion in sales this year.
In the pipe
AbbVie recently earned accelerated FDA approval for Venclexta in a difficult-to-treat group of leukemia patients, and the Agency could see more applications to expand its use in the near future. Marketed in partnership with Roche , Venclexta could top $2 billion in annual sales, if ongoing studies convince the regulator to expand the drug's addressable patient population.
Johnson & Johnson recently submitted an application for rheumatoid arthritis treatment sirukumab to the FDA. The candidate significantly reduced joint damage in a trial supporting its application, and it could become the company's next billion dollar drug. A little further out, J&J has 10 more late-stage candidates lined up for applications over the next few years.
While J&J has plenty of potential growth drivers, moving the needle forward isn't easy for a company with thousands of moving pieces that contributed $70.88 billion to its top line over the past four quarters. If you hate checking your portfolio, then go with the conglomerate. If you can handle several years of anxiety while AbbVie tries to keep Humira sales from collapsing, though, it's the better buy right now.
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Cory Renauer owns shares of Johnson and Johnson. You can follow Cory on Twitter @TMFang4apples or connect with him on LinkedIn for more healthcare industry insight.
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 the pipe AbbVie recently earned accelerated FDA approval for Venclexta in a difficult-to-treat group of leukemia patients, and the Agency could see more applications to expand its use in the near future. Two of the largest holdings in the healthcare index, AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) , are outperforming both benchmarks (up 6.4% and 20.5%, respectively), and investors are right to wonder which is the better buy right now. Stock performance and value Both stocks have been trading below their respective 52-week highs, but the healthcare conglomerate (Johnson & Johnson) has a big lead on the biopharma pure play (AbbVie), as mentioned above. | Two of the largest holdings in the healthcare index, AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) , are outperforming both benchmarks (up 6.4% and 20.5%, respectively), and investors are right to wonder which is the better buy right now. Stock performance and value Both stocks have been trading below their respective 52-week highs, but the healthcare conglomerate (Johnson & Johnson) has a big lead on the biopharma pure play (AbbVie), as mentioned above. While J&J shares are cheaper than the average stock in the S&P 500, AbbVie's stock is a relative bargain. | Stock performance and value Both stocks have been trading below their respective 52-week highs, but the healthcare conglomerate (Johnson & Johnson) has a big lead on the biopharma pure play (AbbVie), as mentioned above. Two of the largest holdings in the healthcare index, AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) , are outperforming both benchmarks (up 6.4% and 20.5%, respectively), and investors are right to wonder which is the better buy right now. While J&J shares are cheaper than the average stock in the S&P 500, AbbVie's stock is a relative bargain. | Two of the largest holdings in the healthcare index, AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) , are outperforming both benchmarks (up 6.4% and 20.5%, respectively), and investors are right to wonder which is the better buy right now. Stock performance and value Both stocks have been trading below their respective 52-week highs, but the healthcare conglomerate (Johnson & Johnson) has a big lead on the biopharma pure play (AbbVie), as mentioned above. While J&J shares are cheaper than the average stock in the S&P 500, AbbVie's stock is a relative bargain. |
26412.0 | 2016-10-18 00:00:00 UTC | Without Drugs, Johnson & Johnson Has Nothing (JNJ) | ABBV | https://www.nasdaq.com/articles/without-drugs-johnson-johnson-has-nothing-jnj-2016-10-18 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
Johnson & Johnson (NYSE: JNJ ) shareholders are waking up with a shrug today. JNJ stock is slightly off after the thinnest of earnings beats, with the save coming from the company's pharmaceutical business.
Source: Dawn Via Flickr
For the quarter ended in September, JNJ earned $4.68 billion, or $1.68 per share, on revenues of $17.82 billion. The consensus estimate had been for earnings of $1.65 per share, with a "whisper number" of $1.66. Analysts expected $17.74 billion in revenues.
Moreover, Johnson & Johnson maintained sales guidance for full-year 2016 of $71.5 billion to $72.2 billion, though it increased its adjusted earnings guidance for full-year 2016 to $6.68 to $6.73 per share.
Johnson & Johnson stock, however, was unfazed. Analysts had become accustomed to JNJ beating earnings estimates, and this upside surprise was the smallest since last December.
Though it is twice the company's newly raised dividend of 80 cents per share.
Humira in Its Sights
In its earnings release, Johnson & Johnson acknowledged that pharmaceutical products are the star of its show, with sales up 9.2% over a year ago. Cancer drugs and medicines heavily advertised on TV - such as Xarelto, an anti-coagulant whose ads starred the late Arnold Palmer, and Stelara, an immunosuppressant currently advertised for treatment of psoriasis, but recently approved for treatment of Crohn's Disease - helped the cause.
7 Stocks to Buy That Will Grow by Double Digits
The FDA approval on Crohn's disease is likely to hike the ad budget for Stelara. It will now compete more directly with Humira from AbbVie Inc (NYSE: ABBV ), which generated $14 billion in sales in 2015 as a treatment for Crohn's and rheumatoid arthritis.
Johnson & Johnson also has another rheumatoid arthritis drug, sirukumab, going through the regulatory process.
In addition to being heavily advertised, drugs to cure autoimmune diseases like Crohn's, psoriasis and rheumatoid arthritis continue to be a key focus of research . So a business risk is that they will be replaced by better drugs before their patents expire.
Thus immunosuppressant drugs such as Humira, Stelara and Otezla from Celgene Corporation (NASDAQ: CELG ) are in heavy ad rotation to generate sales quickly, despite the fact that since the drugs can be approved for treatment of several conditions, there is considerable market confusion. The conditions they treat are often more implied than stated, since it's possible they could be used to treatment other conditions that consumers may see as unrelated.
This confusion demonstrates another risk for these drugs: the possibility that a new Clinton Administration may push either to instill greater price competition or controls on advertising to lower costs.
Without Drugs, JNJ Stock Offers No Growth
Outside the pharmaceutical business, JNJ stock is a slow-growth or no-growth prospect. Its popular consumer brands - products like baby powder and shampoo - of $3.3 billion were down 1.6% against the prior year, and sales of its medical devices, $6.6 billion, increased just 1.1%.
The purchase of Abbott Medical Optics from Abbott Laboratories (NYSE: ABT ), for $4.325 billion, completed during the quarter, will help device sales going forward. That company recently launched a balloon dilation treatment for expanding the eustachion tube that runs between the ear and the mouth.
JNJ stock advanced over 15% in price so far this year, despite the fact that most analysts have it rated only as a hold , due to its single-digit growth.
This is the kind of company that investors can buy and hold if they don't care to read stories like this one.
Dana Blankenhornis a financial journalist who dabbles in fiction, his latest beingThe Reluctant Detective Travels in Time . Write him at danablankenhorn@gmail.comor follow him on Twitter at @danablankenhorn .As of this writing, he did not hold a position in any of the aforementioned securities.
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The post Without Drugs, Johnson & Johnson Has Nothing (JNJ) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It will now compete more directly with Humira from AbbVie Inc (NYSE: ABBV ), which generated $14 billion in sales in 2015 as a treatment for Crohn's and rheumatoid arthritis. 7 Stocks to Buy That Will Grow by Double Digits The FDA approval on Crohn's disease is likely to hike the ad budget for Stelara. In addition to being heavily advertised, drugs to cure autoimmune diseases like Crohn's, psoriasis and rheumatoid arthritis continue to be a key focus of research . | It will now compete more directly with Humira from AbbVie Inc (NYSE: ABBV ), which generated $14 billion in sales in 2015 as a treatment for Crohn's and rheumatoid arthritis. Moreover, Johnson & Johnson maintained sales guidance for full-year 2016 of $71.5 billion to $72.2 billion, though it increased its adjusted earnings guidance for full-year 2016 to $6.68 to $6.73 per share. Cancer drugs and medicines heavily advertised on TV - such as Xarelto, an anti-coagulant whose ads starred the late Arnold Palmer, and Stelara, an immunosuppressant currently advertised for treatment of psoriasis, but recently approved for treatment of Crohn's Disease - helped the cause. | It will now compete more directly with Humira from AbbVie Inc (NYSE: ABBV ), which generated $14 billion in sales in 2015 as a treatment for Crohn's and rheumatoid arthritis. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips Johnson & Johnson (NYSE: JNJ ) shareholders are waking up with a shrug today. Moreover, Johnson & Johnson maintained sales guidance for full-year 2016 of $71.5 billion to $72.2 billion, though it increased its adjusted earnings guidance for full-year 2016 to $6.68 to $6.73 per share. | It will now compete more directly with Humira from AbbVie Inc (NYSE: ABBV ), which generated $14 billion in sales in 2015 as a treatment for Crohn's and rheumatoid arthritis. Cancer drugs and medicines heavily advertised on TV - such as Xarelto, an anti-coagulant whose ads starred the late Arnold Palmer, and Stelara, an immunosuppressant currently advertised for treatment of psoriasis, but recently approved for treatment of Crohn's Disease - helped the cause. Thus immunosuppressant drugs such as Humira, Stelara and Otezla from Celgene Corporation (NASDAQ: CELG ) are in heavy ad rotation to generate sales quickly, despite the fact that since the drugs can be approved for treatment of several conditions, there is considerable market confusion. |
26413.0 | 2016-10-17 00:00:00 UTC | Celgene to Present Phase Ib Data on Crohn's Disease Drug | ABBV | https://www.nasdaq.com/articles/celgene-to-present-phase-ib-data-on-crohns-disease-drug-2016-10-17 | nan | nan | Celgene Corporation 's CELG wholly-owned subsidiary, Celgene International Sàrl, announced encouraging data from a phase Ib study on its pipeline candidate, GED-0301 (mongersen). Data will be presented at the United European Gastroenterology Week.
The randomized, double-blind, multi-center, exploratory study evaluated the effects of oral GED-0301 on both endoscopic response and clinical remission in patients with active Crohn's disease. Patients in the study were given one of the three active treatment regimens in a 12-week treatment phase - GED-0301 160 mg once daily for 12 weeks, GED-0301 160 mg once daily for eight weeks followed by four weeks of placebo, or GED-0301 160 mg once daily for four weeks followed by eight weeks of placebo.
Data showed that clinical improvement was observed as early as week 2, while the clinical response and remission rates were the highest in the 12-week treatment group at 67% and 48%, respectively, at week 12. Endoscopic improvement was seen across all treatment groups at 12 weeks. On the safety front, rates of adverse events and serious adverse events were found to be low and similar across the treatment groups. There were no new safety signals for oral GED-0301 160 mg daily reported in the study.
Meanwhile, the study is ongoing until all patients complete the observation phase. Data from the observation portion of the study are anticipated in 2017. The phase III program on the candidate is currently underway.
CELGENE CORP Price
CELGENE CORP Price | CELGENE CORP Quote
The latest study results are encouraging. Considering that a significant number of Crohn's disease patients do not witness remission with current therapies or suffer relapses over time, a regulatory approval for GED-0301 is expected to provide patients with a new treatment option.
Per Celgene's press release, Crohn's disease, an immune-mediated, chronic inflammatory condition of the gastrointestinal tract, is estimated to affect three out of every 1,000 people in Europe and North America.
Currently approved treatments for Crohn's disease include AbbVie Inc.'s ABBV Humira and Johnson & Johnson's JNJ Remicade among others.
Zacks Rank & a Stock to Consider
Celgene currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Incyte Corporation INCY , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Incyte's earnings estimates for 2016 and 2017 were up a respective 22.2% and 6.6% over the last 60 days. The company has beaten earnings estimates thrice in the last four quarters with an average surprise of 335.16%.
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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. | Currently approved treatments for Crohn's disease include AbbVie Inc.'s ABBV Humira and Johnson & Johnson's JNJ Remicade among others. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The randomized, double-blind, multi-center, exploratory study evaluated the effects of oral GED-0301 on both endoscopic response and clinical remission in patients with active Crohn's disease. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Currently approved treatments for Crohn's disease include AbbVie Inc.'s ABBV Humira and Johnson & Johnson's JNJ Remicade among others. Patients in the study were given one of the three active treatment regimens in a 12-week treatment phase - GED-0301 160 mg once daily for 12 weeks, GED-0301 160 mg once daily for eight weeks followed by four weeks of placebo, or GED-0301 160 mg once daily for four weeks followed by eight weeks of placebo. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Currently approved treatments for Crohn's disease include AbbVie Inc.'s ABBV Humira and Johnson & Johnson's JNJ Remicade among others. Patients in the study were given one of the three active treatment regimens in a 12-week treatment phase - GED-0301 160 mg once daily for 12 weeks, GED-0301 160 mg once daily for eight weeks followed by four weeks of placebo, or GED-0301 160 mg once daily for four weeks followed by eight weeks of placebo. | Currently approved treatments for Crohn's disease include AbbVie Inc.'s ABBV Humira and Johnson & Johnson's JNJ Remicade among others. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Data showed that clinical improvement was observed as early as week 2, while the clinical response and remission rates were the highest in the 12-week treatment group at 67% and 48%, respectively, at week 12. |
26414.0 | 2016-10-17 00:00:00 UTC | Roche's Lucentis Prefilled Syringe Approved in the U.S. | ABBV | https://www.nasdaq.com/articles/roches-lucentis-prefilled-syringe-approved-in-the-u.s.-2016-10-17 | nan | nan | Roche Holding AGRHHBY announced that its ophthalmology drug Lucentis (0.5 mg) prefilled syringe (PFS) was approved in the U.S. as a new method of administering the drug for the treatment of patients with wet age-related macular degeneration (AMD) and macular edema after retinal vein occlusion (RVO).
The product will be available in the U.S. early next year.
Note that Lucentis is currently approved in the U.S. for wet AMD, macular oedema after RVO, diabetic macular edema (DME), and diabetic retinopathy (DR) in DME patients.
We remind investors that Roche has a collaboration agreement with Novartis AG NVS for Lucentis. While Roche holds the commercial rights for Lucentis in the U.S., Novartis holds the rights to commercialize the drug in ex-U.S. countries.
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In a separate press release, Roche announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has rendered a positive opinion for Venclyxto for the treatment of people with chronic lymphocytic leukemia (CLL) in the presence of 17p deletion or TP53 mutation who are unsuitable for or have failed a B-cell receptor pathway inhibitor.
A final decision from the European Commission is expected in the coming months.
Note that Venclyxto, marketed as Venclexta in the U.S., was approved in Apr 2016 for the treatment of patients with CLL with 17p deletion, who have received at least one prior therapy. The company also has a collaboration agreement with AbbVie Inc. ABBV for Venclyxto/Venclexta.
According to information provided by Roche, leukemia affects 350,000 individuals in the world. Around one-third of all newly diagnosed leukemia patients are estimated to be suffering from CLL.
Roche currently carries a Zacks Rank #5 (Strong Sell).
A Stock to Consider
Geron Corporation GERN is a better-ranked stock in the health care sector, sporting a Zacks Rank #1 (Strong Buy). The company has posted a positive earnings surprise twice in last four quarters, bringing the average beat to 20.78%. You can see the complete list of today's Zacks #1 Rank stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company also has a collaboration agreement with AbbVie Inc. ABBV for Venclyxto/Venclexta. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report GERON CORP (GERN): 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 its ophthalmology drug Lucentis (0.5 mg) prefilled syringe (PFS) was approved in the U.S. as a new method of administering the drug for the treatment of patients with wet age-related macular degeneration (AMD) and macular edema after retinal vein occlusion (RVO). | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The company also has a collaboration agreement with AbbVie Inc. ABBV for Venclyxto/Venclexta. Note that Lucentis is currently approved in the U.S. for wet AMD, macular oedema after RVO, diabetic macular edema (DME), and diabetic retinopathy (DR) in DME patients. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The company also has a collaboration agreement with AbbVie Inc. ABBV for Venclyxto/Venclexta. Roche Holding AGRHHBY announced that its ophthalmology drug Lucentis (0.5 mg) prefilled syringe (PFS) was approved in the U.S. as a new method of administering the drug for the treatment of patients with wet age-related macular degeneration (AMD) and macular edema after retinal vein occlusion (RVO). | The company also has a collaboration agreement with AbbVie Inc. ABBV for Venclyxto/Venclexta. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Note that Venclyxto, marketed as Venclexta in the U.S., was approved in Apr 2016 for the treatment of patients with CLL with 17p deletion, who have received at least one prior therapy. |
26415.0 | 2016-10-16 00:00:00 UTC | Get Paid While You Wait: 3 Top Dividend Stocks in Big Pharma | ABBV | https://www.nasdaq.com/articles/get-paid-while-you-wait-3-top-dividend-stocks-big-pharma-2016-10-16 | nan | nan | With the average dividend-paying stock in the S&P 500 offering a yield of just 2.13%, hunting for satisfying payouts is a daunting task. Don't worry, though, there are still some juicy yields in Big Pharma.
Public outrage over escalating prices of older drugs has cast a dark cloud over the entire pharmaceutical landscape. For savvy investors, this is an opportunity to scoop up shares of highly innovative companies with dividends that are above average in more ways than one. Let's take a closer look to see why AbbVie (NYSE: ABBV) , Novo Nordisk (NYSE: NVO) , and Roche (NASDAQOTH: RHHBY) are the top dividend stocks in their industry right now.
1. AbbVie: An impressive track record
Since spinning off from Abbott to begin 2013, AbbVie has raised its quarterly dividend 42% to $0.57 per share. At the stock's recent price, that works out to a nice 3.6% yield, and another bump should be just around the corner. The company has boosted its distribution for 44 consecutive years, and it needs to raise it again the next time it declares a dividend to continue the streak.
The most recent increase raised the payout 11.8%, and AbbVie is generating enough cash to support another double-digit hike. The drugmaker used just 46.4% of free cash flow to make dividend payments over the past four quarters.
Investors will want to keep an eye on sales of AbbVie best-selling drug, Humira, in the quarters ahead. Its main U.S. patent expires near the end of the year, and the FDA recently approved Amjevita, Amgen 's biosimilar version of Humira. AbbVie has about 70 additional patents it contends will keep Amjevita (and other biosimilars) from denting Humira sales for another six years.
Global Humira sales grew 16.2% in the first half over the previous year period, putting it on pace to reach $15.45 billion this year. AbbVie has been buying up promising drugs that could eventually offset impending Humira losses, depending on how long its additional patents hold up. For example, sales of blood cancer therapy Imbruvica are expected to grow from an annual run rate of $1.67 billion based on first-half sales to a peak of $7 billion. If it can keep the competition at bay long enough, AbbVie's dividend yield could continue climbing rapidly -- along with the stock price.
2. Novo Nordisk: Atop a growing epidemic
Worldwide, the number of diabetics grew more than fourfold between 1980 and 2014 to staggering 422 million. Novo Nordisk has been on top of the trend, and its 46% share of the global insulin market has made it one of the most profitable big pharmas.
Rapid growth, innovative diabetes care products, and precise capital allocation has allowed its dividend to grow at a dazzling pace. In its own currency, the Danish company's annual payout has increased at staggering 24.8% annual growth rate over the past decade.
Another of Roche's breakthrough therapies, Ocrevus, was the first to slow progression of an aggressive form of multiple sclerosis in a big clinical trial. A green light from the FDA that could lead to peak annual sales topping $5 billion is widely expected by the end of the year.
Last year, Roche used 58.7% of profits to make dividend payments, and expected single-digit profit growth this year should allow another modest dividend raise without sending its payout ratio into the danger zone. Further ahead, though, contributions from Tecentriq, Ocrevus, and other breakthrough drugs should allow it to reward patient investors with much bigger increases.
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. 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 .
Cory Renauer has no position in any stocks mentioned. You can follow Cory on Twitter @TMFang4apples or connect with him on LinkedIn for more healthcare industry insight.
The Motley Fool recommends Novo Nordisk. 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 has been buying up promising drugs that could eventually offset impending Humira losses, depending on how long its additional patents hold up. Let's take a closer look to see why AbbVie (NYSE: ABBV) , Novo Nordisk (NYSE: NVO) , and Roche (NASDAQOTH: RHHBY) are the top dividend stocks in their industry right now. AbbVie: An impressive track record Since spinning off from Abbott to begin 2013, AbbVie has raised its quarterly dividend 42% to $0.57 per share. | Let's take a closer look to see why AbbVie (NYSE: ABBV) , Novo Nordisk (NYSE: NVO) , and Roche (NASDAQOTH: RHHBY) are the top dividend stocks in their industry right now. AbbVie: An impressive track record Since spinning off from Abbott to begin 2013, AbbVie has raised its quarterly dividend 42% to $0.57 per share. The most recent increase raised the payout 11.8%, and AbbVie is generating enough cash to support another double-digit hike. | Let's take a closer look to see why AbbVie (NYSE: ABBV) , Novo Nordisk (NYSE: NVO) , and Roche (NASDAQOTH: RHHBY) are the top dividend stocks in their industry right now. If it can keep the competition at bay long enough, AbbVie's dividend yield could continue climbing rapidly -- along with the stock price. AbbVie: An impressive track record Since spinning off from Abbott to begin 2013, AbbVie has raised its quarterly dividend 42% to $0.57 per share. | If it can keep the competition at bay long enough, AbbVie's dividend yield could continue climbing rapidly -- along with the stock price. Let's take a closer look to see why AbbVie (NYSE: ABBV) , Novo Nordisk (NYSE: NVO) , and Roche (NASDAQOTH: RHHBY) are the top dividend stocks in their industry right now. AbbVie: An impressive track record Since spinning off from Abbott to begin 2013, AbbVie has raised its quarterly dividend 42% to $0.57 per share. |
26416.0 | 2016-10-16 00:00:00 UTC | Why Biotech Investors Are Terrified of the Upcoming Elections | ABBV | https://www.nasdaq.com/articles/why-biotech-investors-are-terrified-upcoming-elections-2016-10-16 | nan | nan | IBB data by YCharts
Worries about the upcoming U.S. elections are causing the latest biotech fizzle. Here's why biotech investors are terrified.
It started with a tweet
Hillary Clinton stoked fears among biotech investors over a year ago with a single tweet . Her tweet referenced a New York Times story about skyrocketing drug prices. Two companies were particularly highlighted in that story: Turing Pharmaceuticals and Valeant Pharmaceuticals (NYSE: VRX) . Clinton promised in her tweet to "lay out a plan to take it [alleged price gouging] on."
The Clinton presidential campaign followed up on that promise quickly, unveiling a healthcare plan featuring a commitment to reduce the cost of prescription drugs. That plan included several provisions worrisome to biotechs, including lowering the biologic exclusivity period from 12 years to seven years.
A few months later, still competing for the Democratic presidential nomination at the time, Hillary Clinton escalated the attack. Her campaign aired a television commercial stating that she was "going after" Valeant Pharmaceuticals for its "predatory pricing." Valeant's stock, already falling due to several issues, took yet another clobbering.
But it wasn't just Valeant that was affected by Clinton's focus on drug prices. It's fair to say that much of the decline earlier this year with the iShares biotech ETF stemmed from the political campaign.
Tracking with Trump
The latest biotech pullback appears to have more to do with Hillary Clinton's opponent, Donald Trump. It's not that Trump's proposed policies threaten the biotech industry. Instead, it's that he might make it much more likely that Hillary Clinton's plans will actually be implemented.
Nate Silver and his team at FiveThirtyEight try to calculate the probability that either of the candidates will win the presidency based largely on major polls. I don't think it's a coincidence that the iShares biotech ETF's performance tracks pretty well with the probability that Trump will be elected as president.
Perhaps even more important for biotech stocks is who will control the U.S. Congress. FiveThirtyEight's view of the likelihood that Republicans lose their majority in the Senate has increased over the past few days in the wake of the controversy over some of Trump's comments. On Oct. 9, the estimated probability that Democrats regained control of the Senate was only 51%. Now, FiveThirtyEight projects a 60% chance of that happening.
Assessing the impact
Biotech investors are afraid about how the stocks they own might be affected by potential healthcare policy changes, and those fears are probably warranted?
Hillary Clinton wants to create a team consisting of representatives from various federal agencies to focus on "protecting consumers from outlier price increases." Potential ways to accomplish this goal include fining companies that increase prices that the government considers to be unjustified. This proposal appears to be the fulfillment of Clinton's promise to "go after" Valeant and other companies that dramatically hiked drug prices.
Another idea that could be enacted is to eliminate tax write-offs for direct-to-consumer advertising costs. This proposal could sting but shouldn't hurt biotechs too badly.
A couple of years ago, AbbVie (NYSE: ABBV) ranked as the second-biggest advertising spender among drugmakers. The biotech spent around $363 million on advertising, over half of which was for blockbuster anti-inflammatory Humira. Losing tax deductions for that amount wouldn't be a good thing for the company. However, the financial impact to AbbVie's bottom line would be small enough that it shouldn't have any significant effect on the stock.
The proposal to lower the biologic exclusivity period is another story. For example, AbbVie hopes to win regulatory approval in the not-too-distant future for risankizumab. The anti-inflammatory drug is in a phase 3 study for psoriasis and in phase 2 studies for Crohn's disease and psoriatic arthritis. If risankizumab has exclusivity for 12 years, the drug should generate significantly more revenue than if it only has exclusivity for seven years.
Could AbbVie simply raise the price to make up for losing exclusivity sooner? Considering that the rationale behind Hillary Clinton's proposal is to lower prices, it doesn't seem likely that the federal government would make it easy for biotechs to price their products higher. AbbVie (and other biotechs) could be looking at a negative financial impact in the billions of dollars if the proposal to reduce exclusivity periods is enacted.
There could be one group of stocks that performs well with the proposed changes, though: major developers of biosimilars. Clinton proposes making it easier for biosimilars to gain approval. This could help generic drugmakers that focus heavily on biosimilars. It could also help some biotechs to a lesser extent. Amgen , for example, has nearly as many biosimilars in development as it does new drugs in late-stage development.
Biotech investors do have legitimate reasons to be concerned. On the other hand, companies have faced potentially adverse government regulation changes in the past and adapted successfully. Regardless of what happens in the U.S. elections, well-run biotechs will continue to survive and thrive over the long term.
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. 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 .
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. | A couple of years ago, AbbVie (NYSE: ABBV) ranked as the second-biggest advertising spender among drugmakers. However, the financial impact to AbbVie's bottom line would be small enough that it shouldn't have any significant effect on the stock. For example, AbbVie hopes to win regulatory approval in the not-too-distant future for risankizumab. | A couple of years ago, AbbVie (NYSE: ABBV) ranked as the second-biggest advertising spender among drugmakers. However, the financial impact to AbbVie's bottom line would be small enough that it shouldn't have any significant effect on the stock. For example, AbbVie hopes to win regulatory approval in the not-too-distant future for risankizumab. | A couple of years ago, AbbVie (NYSE: ABBV) ranked as the second-biggest advertising spender among drugmakers. However, the financial impact to AbbVie's bottom line would be small enough that it shouldn't have any significant effect on the stock. For example, AbbVie hopes to win regulatory approval in the not-too-distant future for risankizumab. | A couple of years ago, AbbVie (NYSE: ABBV) ranked as the second-biggest advertising spender among drugmakers. However, the financial impact to AbbVie's bottom line would be small enough that it shouldn't have any significant effect on the stock. For example, AbbVie hopes to win regulatory approval in the not-too-distant future for risankizumab. |
26417.0 | 2016-10-14 00:00:00 UTC | AbbVie (ABBV) Shares Cross Below 200 DMA | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-shares-cross-below-200-dma-2016-10-14 | nan | nan | In trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $60.61, changing hands as low as $60.29 per share. AbbVie Inc. shares are currently trading down about 1.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $45.45 per share, with $68.12 as the 52 week high point - that compares with a last trade of $60.22.
According to the ETF Finder at ETF Channel, ABBV makes up 9.33% of the First Trust US IPO Index Fund ETF (Symbol: FPX) which is trading relatively unchanged on the day Friday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $60.61, changing hands as low as $60.29 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $45.45 per share, with $68.12 as the 52 week high point - that compares with a last trade of $60.22. AbbVie Inc. shares are currently trading down about 1.3% on the day. | In trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $60.61, changing hands as low as $60.29 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $45.45 per share, with $68.12 as the 52 week high point - that compares with a last trade of $60.22. AbbVie Inc. shares are currently trading down about 1.3% on the day. | In trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $60.61, changing hands as low as $60.29 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $45.45 per share, with $68.12 as the 52 week high point - that compares with a last trade of $60.22. AbbVie Inc. shares are currently trading down about 1.3% on the day. | In trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $60.61, changing hands as low as $60.29 per share. According to the ETF Finder at ETF Channel, ABBV makes up 9.33% of the First Trust US IPO Index Fund ETF (Symbol: FPX) which is trading relatively unchanged on the day Friday. AbbVie Inc. shares are currently trading down about 1.3% on the day. |
26418.0 | 2016-10-13 00:00:00 UTC | Watch Out, AbbVie: Johnson & Johnson Is Nipping at Your Heels | ABBV | https://www.nasdaq.com/articles/watch-out-abbvie-johnson-johnson-nipping-your-heels-2016-10-13 | nan | nan | AbbVie 's(NYSE: ABBV) Humira reigns as the most successful treatment around for several autoimmune diseases, including rheumatoid arthritis and Crohn's disease. In 2015, the drug generated a whopping $14 billion in sales.
Could Humira be dethroned, though? AbbVie has plenty of rivals working hard to take market share away from the company's top-selling drug. One of those rivals, Johnson & Johnson (NYSE: JNJ) , recently announced good news for two of its drugs that target the same indications for which Humira is approved -- and this isn't the only reason AbbVie investors should be nervous.
Rheumatoid arthritis
Johnson & Johnson announced on September 23 that it had submitted sirukumab for FDA approval as a treatment for rheumatoid arthritis. This submission was based on five late-stage studies exploring the safety and efficacy of the drug, which targets cytokine IL-6, a protein that is thought to play a part in causing autoimmune conditions like rheumatoid arthritis.
Three of those late-stage studies, SIRROUND-H, SIRROUND-M, and SIRROUND-T, are already completed. Another study, SIRROUND-D, is scheduled to complete in 2017. The final one, SIRROUND-LTE, a long-term study of patients in two of the other late-stage studies, won't wrap up until 2020.
Results that have been presented so far appear to show that sirukumab is both safe and effective. The key remaining question, though, is how the drug truly stacks up against Humira. The SIRROUND-H study featured a head-to-head match-up of the two drugs. While the study has finished, detailed results have not been announced yet. If those results do indicate that sirukumab is more effective than Humira, J&J could have a big winner on its hands.
However, the giant healthcare company will have to share any win with its partner, GlaxoSmithKline . Glaxo bought the rights to market sirukumab in North, Central, and South America back in 2011. J&J did retain commercialization rights to the rest of the world, but it must split global profits equally with Glaxo.
Crohn's disease
J&J doesn't have to wait for regulators to battle AbbVie for market share in another approved indication for Humira -- the company announced that Stelara had received FDA approval as a treatment for Crohn's disease on September 26. It won't have to share any profits with another player, either.
AbbVie probably isn't too nervous about the challenge from Stelara, though. J&J's drug was approved only as a second-line treatment. To take Stelara, patients must have first either not improved with other drugs or experienced intolerance for other drugs. It seems unlikely that Stelara will significantly impact Humira sales in the Crohn's disease indication.
Stelara already competes against Humira in a couple of other indications, though: plaque psoriasis and psoriatic arthritis, and in those indications it does quite well. J&J's drug has proven to be a financial success, bringing in nearly $2.5 billion in 2015.
Beyond nipping
J&J probably doesn't even represent the greatest threat to AbbVie and Humira -- Regeneron and partner Sanofi should find out later in October if their rheumatoid arthritis drug sarilumab will win approval from the FDA. The two companies also hope to obtain European approval in early 2017.
Like J&J's sirukumab, sarilumab works by inhibiting IL-6. Unlike sirukumab, the drug developed by Regeneron has already proven to be more effective than Humira in a late-stage study.
I think J&J will probably achieve success with sirukumab and further success with Stelara. The big company is definitely nipping at AbbVie's heels with its autoimmune disease products, and other companies have gone beyond just nipping.
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. 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 .
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. | Beyond nipping J&J probably doesn't even represent the greatest threat to AbbVie and Humira -- Regeneron and partner Sanofi should find out later in October if their rheumatoid arthritis drug sarilumab will win approval from the FDA. AbbVie 's(NYSE: ABBV) Humira reigns as the most successful treatment around for several autoimmune diseases, including rheumatoid arthritis and Crohn's disease. AbbVie has plenty of rivals working hard to take market share away from the company's top-selling drug. | AbbVie 's(NYSE: ABBV) Humira reigns as the most successful treatment around for several autoimmune diseases, including rheumatoid arthritis and Crohn's disease. Crohn's disease J&J doesn't have to wait for regulators to battle AbbVie for market share in another approved indication for Humira -- the company announced that Stelara had received FDA approval as a treatment for Crohn's disease on September 26. AbbVie has plenty of rivals working hard to take market share away from the company's top-selling drug. | One of those rivals, Johnson & Johnson (NYSE: JNJ) , recently announced good news for two of its drugs that target the same indications for which Humira is approved -- and this isn't the only reason AbbVie investors should be nervous. Crohn's disease J&J doesn't have to wait for regulators to battle AbbVie for market share in another approved indication for Humira -- the company announced that Stelara had received FDA approval as a treatment for Crohn's disease on September 26. Beyond nipping J&J probably doesn't even represent the greatest threat to AbbVie and Humira -- Regeneron and partner Sanofi should find out later in October if their rheumatoid arthritis drug sarilumab will win approval from the FDA. | Crohn's disease J&J doesn't have to wait for regulators to battle AbbVie for market share in another approved indication for Humira -- the company announced that Stelara had received FDA approval as a treatment for Crohn's disease on September 26. The big company is definitely nipping at AbbVie's heels with its autoimmune disease products, and other companies have gone beyond just nipping. AbbVie 's(NYSE: ABBV) Humira reigns as the most successful treatment around for several autoimmune diseases, including rheumatoid arthritis and Crohn's disease. |
26419.0 | 2016-10-12 00:00:00 UTC | Gilead Sciences, Inc. Is More Than an HCV Play (GILD) | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc.-is-more-than-an-hcv-play-gild-2016-10-12 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
A year ago almost to the day, Gilead Sciences, Inc. (NASDAQ: GILD ) was riding high. GILD stock was basking in the glow of a 59% gain dished out during the twelve months before that on stabilizing growth in sales of its hepatitis C drugs Sovaldi and Harvoni.
Source: Gilead Sciences
What a difference a year makes. Already down 30% year-to-date before today, on Tuesday, Gilead stock hit a new 52-week low on doubts about the company's future, and doubts specifically about its once-red-hot hepatitis portfolio that's increasingly facing lower-cost competition .
Not that the concerns aren't merited, but the sellers appear to have overshot their target by underestimating everything else Gilead Sciences has going for it.
Impossible Expectations
Calling a spade a spade, there was no way Gilead's hepatitis therapies Epclusa, Sovaldi and Harvoni were going to maintain list prices of $74,760, $84,000 and $94,500, respectively. If competition wasn't going to undermine the company's pricing power, regulatory and economic pressure would.
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As it turns out, competitors have done most of that right-sizing work … competitors like Merck & Co., Inc. (NYSE: MRK ) and AbbVie Inc (NYSE: ABBV ). Merck recently unveiled hepatitis C treatment Zepatier at a price of only $54,600 , and while the HCV-fighting Viekira Pak's price is on par with Sovaldi's cost , it's still able to siphon off some of Gilead's hepatitis C business.
More alternatives have been surfacing, and will continue to do so.
It's a problem for shareholders now, as the bulk of the bullishness seen from Gilead stock since 2012 has been predicated on smashing sales success with its hepatitis portfolio. As it turns out, as big as HCV was supposed to be for Gilead, it's still got a huge number of other ways to make money.
Not Just an HCV Play
It's difficult to recall a time when its hepatitis drugs weren't the primary reason to own Gilead stock, but don't forget that Gilead was and still is the HIV/AIDS treatment leader.
As of the latest tally, Gilead controls roughly half of the HIV market , and HIV revenue accounts for approximately 40% of Gilead's total business . That's less than the 52% of corporate sales driven by its hepatitis products, but not considerably less. The non-HCV pieces of its portfolio can drive sales growth, too. To that end, the approvals of HIV drugs Odefsey and Descovy earlier this year represent an underappreciated growth opportunity for Gilead.
Both drugs are TAF-based regimens. TAF, short for tenofovir alafenamide fumarate, works using the same basic principle as other Gilead HIV drugs - namely Truvada and Complera - but without the inherent toxicity of those drugs. TAF can be dosed at about one-tenth the necessary dose of its other HIV medications.
However, it's still going to be a while before it even has a chance of becoming a marketable product, Gilead and R&D partner Galapagos NV (ADR) (NASDAQ: GLPG ) recently announced the Crohn's disease treatment the two were working on showed promising efficacy through its phase 2 trial so far.
Perhaps the most compelling reason one would want to step into Gilead stock as it's well into new 52-week low territory, however, is the $8.7 billion worth of cash it's sitting on.
Sangara Narayanan of GuruFocus said it best, explaining " Gilead's Patience Is Wearing Investors' Patience Thin ." If Gilead wanted to reinvigorate growth - or even just rekindle some excitement with GILD stock - it could easily make an acquisition. Indeed, if it were to sell its $16 billion worth of longer-term investments, it could make several respectable acquisitions. The company simply says it's not interested in forcing the wrong deal.
Or if that's not enough, perhaps this will be … Citi thinks Gilead's hepatitis C sales are finally poised to improve, with new starts of treatment regimens up 3% at one point in September versus August starts.
Bottom Line for Gilead Stock
Of all the things working against Gilead right now, poor results and tepid prospects aren't either of them. The company is doing everything it's supposed to so, and isn't doing anything it isn't supposed to do.
The biggest headwind GILD shares face at this time is mostly the pessimistic perception that's been driving the stock lower since the middle of 2015. In many ways that's the biggest hurdle any company could face, but in many other ways it's also the most encouraging one.
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When the market finally decides to see the glass as half full rather than empty, sentiment and therefore the stocks could turn in an instant, and turn decidedly once it does.
Waiting is the hardest part. With a trailing price-earnings ratio of 6.5 though, it's worth the wait.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Gilead Sciences, Inc. Is More Than an HCV Play (GILD) 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. | 10 Stocks That Every Investor Should Own As it turns out, competitors have done most of that right-sizing work … competitors like Merck & Co., Inc. (NYSE: MRK ) and AbbVie Inc (NYSE: ABBV ). GILD stock was basking in the glow of a 59% gain dished out during the twelve months before that on stabilizing growth in sales of its hepatitis C drugs Sovaldi and Harvoni. However, it's still going to be a while before it even has a chance of becoming a marketable product, Gilead and R&D partner Galapagos NV (ADR) (NASDAQ: GLPG ) recently announced the Crohn's disease treatment the two were working on showed promising efficacy through its phase 2 trial so far. | 10 Stocks That Every Investor Should Own As it turns out, competitors have done most of that right-sizing work … competitors like Merck & Co., Inc. (NYSE: MRK ) and AbbVie Inc (NYSE: ABBV ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips A year ago almost to the day, Gilead Sciences, Inc. (NASDAQ: GILD ) was riding high. Not Just an HCV Play It's difficult to recall a time when its hepatitis drugs weren't the primary reason to own Gilead stock, but don't forget that Gilead was and still is the HIV/AIDS treatment leader. | 10 Stocks That Every Investor Should Own As it turns out, competitors have done most of that right-sizing work … competitors like Merck & Co., Inc. (NYSE: MRK ) and AbbVie Inc (NYSE: ABBV ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips A year ago almost to the day, Gilead Sciences, Inc. (NASDAQ: GILD ) was riding high. Not Just an HCV Play It's difficult to recall a time when its hepatitis drugs weren't the primary reason to own Gilead stock, but don't forget that Gilead was and still is the HIV/AIDS treatment leader. | 10 Stocks That Every Investor Should Own As it turns out, competitors have done most of that right-sizing work … competitors like Merck & Co., Inc. (NYSE: MRK ) and AbbVie Inc (NYSE: ABBV ). Source: Gilead Sciences What a difference a year makes. Not Just an HCV Play It's difficult to recall a time when its hepatitis drugs weren't the primary reason to own Gilead stock, but don't forget that Gilead was and still is the HIV/AIDS treatment leader. |
26420.0 | 2016-10-11 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for October 12, 2016 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-ex-dividend-date-scheduled-october-12-2016-2016-10-11 | nan | nan | AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 12, 2016. A cash dividend payment of $0.57 per share is scheduled to be paid on November 15, 2016. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that ABBV has paid the same dividend. At the current stock price of $63.31, the dividend yield is 3.6%.
The previous trading day's last sale of ABBV was $63.31, representing a -7.07% decrease from the 52 week high of $68.12 and a 39.3% increase over the 52 week low of $45.45.
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 $3.47. Zacks Investment Research reports ABBV's forecasted earnings growth in 2016 as 12.08%, compared to an industry average of 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 )
WisdomTree U.S. Quality Dividend Growth Fund ( DGRW )
SPDR S&P Dividend ETF ( SDY )
Madrona Domestic ETF ( FWDD ).
The top-performing ETF of this group is VHT with an increase of 5.16% over the last 100 days. IYH has the highest percent weighting of ABBV at 3.54%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 12.08%, compared to an industry average of 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 ) WisdomTree U.S. Quality Dividend Growth Fund ( DGRW ) SPDR S&P Dividend ETF ( SDY ) Madrona Domestic ETF ( FWDD ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 12, 2016. | 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 ) WisdomTree U.S. Quality Dividend Growth Fund ( DGRW ) SPDR S&P Dividend ETF ( SDY ) Madrona Domestic ETF ( FWDD ). | ABBV's current earnings per share, an indicator of a company's profitability, is $3.47. AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 12, 2016. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. |
26421.0 | 2016-10-10 00:00:00 UTC | Repros' Secondary Hypogonadism Drug under Review in EU | ABBV | https://www.nasdaq.com/articles/repros-secondary-hypogonadism-drug-under-review-in-eu-2016-10-10 | nan | nan | Repros Therapeutics Inc.RPRX announced that the European Medicines Agency has accepted for review its marketing authorization application for enclomiphene. The company is looking to get enclomiphene approved for the treatment of secondary hypogonadism.
Repros expects to receive day 120 questions related to the application by the end of Jan 2017.
We remind investors that Repros' efforts to gain approval for enclomiphene in the U.S. for the treatment of secondary hypogonadism had suffered a setback with the FDA issuing a complete response letter in Dec 2015. Currently, the company is conducting a proof-of-concept phase II study (ZA-205) on enclomiphene in obese secondary hypogonadal men to assess its impact on metabolic parameters and quality of life with routine diet and exercise regimen. Six-month interim data from this study were reported in Aug 2016.
Repros plans to participate as a sponsor in the upcoming FDA's Bone, Reproductive and Urologic Drugs Advisory Committee meeting. The meeting is scheduled for Dec 6, 2016. The committee intends to discuss appropriate clinical trial design features, including acceptable endpoints for establishing clinical benefit, for drugs that are intended to treat secondary hypogonadism while preserving or improving testicular function, including spermatogenesis.
REPROS THERAPEU Price
REPROS THERAPEU Price | REPROS THERAPEU Quote
Meanwhile, Repros has made significant progress with its pipeline so far, which includes Proellex. The company plans to hold discussion with the FDA regarding the prospects of advancing the candidate into phase III studies for the treatment of women struggling with painful menstruation. In addition, Proellex is being evaluated for the treatment of uterine fibroids.
The latest development on the regulatory front raises optimism. Considering that Repros has no approved product in its portfolio at the moment, enclomiphene's approval will be a huge boost for the company.
Investor focus is expected to remain on the upcoming FDA advisory panel meeting as well on EU updates on the candidate.
Currently available treatments for hypogonadism in the market include AbbVie Inc.'s ABBV AndroGel, Endo International plc's ENDP Testim and Allergan plc's AGN Androderm.
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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. | Currently available treatments for hypogonadism in the market include AbbVie Inc.'s ABBV AndroGel, Endo International plc's ENDP Testim and Allergan plc's AGN Androderm. Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that Repros' efforts to gain approval for enclomiphene in the U.S. for the treatment of secondary hypogonadism had suffered a setback with the FDA issuing a complete response letter in Dec 2015. | Currently available treatments for hypogonadism in the market include AbbVie Inc.'s ABBV AndroGel, Endo International plc's ENDP Testim and Allergan plc's AGN Androderm. Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. REPROS THERAPEU Price REPROS THERAPEU Price | REPROS THERAPEU Quote Meanwhile, Repros has made significant progress with its pipeline so far, which includes Proellex. | Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Currently available treatments for hypogonadism in the market include AbbVie Inc.'s ABBV AndroGel, Endo International plc's ENDP Testim and Allergan plc's AGN Androderm. We remind investors that Repros' efforts to gain approval for enclomiphene in the U.S. for the treatment of secondary hypogonadism had suffered a setback with the FDA issuing a complete response letter in Dec 2015. | Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Currently available treatments for hypogonadism in the market include AbbVie Inc.'s ABBV AndroGel, Endo International plc's ENDP Testim and Allergan plc's AGN Androderm. The company is looking to get enclomiphene approved for the treatment of secondary hypogonadism. |
26422.0 | 2016-10-10 00:00:00 UTC | 4 Stocks to Buy for Big October Dividend Hikes (CTAS, CHDN, TXN, ABBV) | ABBV | https://www.nasdaq.com/articles/4-stocks-to-buy-for-big-october-dividend-hikes-ctas-chdn-txn-abbv-2016-10-10 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Looking for consistent, double-digit dividend hikes?
Bad news: your job is getting harder.
According to S&P Dow Jones Indic es, US companies collectively increased their dividends by $6.0 billion in the third quarter (net of cancellations).
Sounds great, right? Too bad that number has plunged from the $7.3 billion in hikes announced in the second quarter-not to mention the $10.0 billion of increases rolled out in the third quarter of 2015.
The bottom line? Dividend growth is slowing-and faster than most investors think.
Worse, your odds of getting whacked by a surprise dividend cut are on the rise: the number of companies slashing their payouts hit 667 in the 12 months ended September 30, up 55.5% from the previous 12-month period.
Dividend Aristocrats Cheap Out
There was a time when you could find safe, outsized dividend growth by simply picking from the list of Dividend Aristocrats (or the S&P 500 companies that have raised their payouts for 25 years or more).
But these days, many of these so-called aristocrats are pretenders, dribbling out wimpy 1 cent-a-year dividend hikes, just enough to keep their membership in the club.
I'm looking at you, Wal-Mart Stores, Inc. ( WMT ) , AT&T Inc. ( T ) and Procter & Gamble Co ( PG ).
But don't worry, because today I've got four stocks that still throw off hefty dividend hikes regularly. And unlike many Dividend Aristocrats and utility stocks, they're cheap right now.
The 10 Best Blue-Chip Dividend Stocks to Buy for Q4
Better yet, I expect all four to announce double-digit payout hikes right away -this month- so you can look forward to a nice near-term pop in the share price, too.
The Dividend Machine: Cintas Corporation (CTAS)
Cintas Corporation ( CTAS ) : Plenty of income-seekers dismiss industrial stocks because of their low dividend yields and potential for higher volatility.
That's too bad, because there are still bargains to be had in the industrial space. And you can offset any volatility and quickly boost the yield on your initial buy if you focus on industrials that regularly deliver big, steady payout increases.
Take Cintas, which trades at a reasonable 17.0 times trailing-twelve-month earnings. The stock's forward dividend yield is just 0.9% today, but the stars are aligned for Cintas to drop a big dividend hike on shareholders later this month.
How do I know?
Because that's exactly what's happened in the past: the company has hiked its payout for 32 straight years, and those increases are no small beer: in the past decade, Cintas's dividend has risen 17% annually, on average (the company pays dividends once a year). It also handed investors a nice $0.85 special dividend in December 2014.
The result? A nice, smooth climb in the share price:
The company's business is simple: it supplies uniforms and cleaning services to commercial clients. But its scale (it has over one million customers, 400 facilities and 10,000 delivery trucks) makes it tough for competitors to elbow their way in.
Right now, Cintas is firing on all cylinders: in its recently released quarterly results, earnings per share (EPS) soared 35% from a year ago, to $1.26, easily topping the consensus forecast of $1.08. Revenue jumped 7.9%, to $1.29 billion, also beating the Street's estimate of $1.28 billion.
With numbers like those, I'm looking for a 20% payout hike from this one in the next week or two. That makes now the time to buy.
The Dark Horse: Churchill Downs, Inc. (CHDN)
If you didn't know Churchill Downs, Inc. ( CHDN ), the company that owns the track where the Kentucky Derby is run every year, is publicly traded, you're not alone. It boasts a market capitalization of just $2.4 billion, so it doesn't get a lot of analyst attention (just five cover it as I write this).
And even if you do know of the stock, you may not know that it goes well beyond the historic racetrack, with four other tracks, six casinos and an online gambling arm also under its umbrella.
Like Cintas, Churchill has a low current yield of 0.8% and pays dividends annually. But its dividend-growth record makes the payout worth the wait: in the last six years, Churchill has juiced the dividend by 130%, helping drive a 278% rise in the share price:
The Kentucky Derby is growing, with attendance up 3% from last year's record, and the company's online division is benefiting from the explosive growth of mobile gaming.
7 High-Dividend Stocks to Buy ASAP
The analysts that cover CHDN are calling for a 55% profit increase for all of 2016, putting a dividend hike of at least 15% on the table. Churchill usually announces dividend increases with its third-quarter results, which are due out October 27, so you'll want to make a move before then.
The Smooth Operator: Texas Instruments Incorporated (TXN)
Texas Instruments Incorporated ( TXN ) isn't as cheap now as it was at the beginning of the year, before the stock went on a big run that raised its P/E ratio to 23.8 while cutting its forward yield to 2.2%.
But it's still a great buy, because thanks to its explosive dividend growth (850% in the past decade!).
Continued dividend increases - easily achievable thanks to its 49% payout ratio - put a floor under the share price and drive further upside.
That floor gets even thicker when you add the rising earnings the company is reporting thanks to its shift away from volatile areas like smartphones and PCs and toward making chips for cars, industrial equipment and communications gear.
The shift is nicely smoothing out TXN's revenue stream, providing a nice backstop to earnings (and dividends):
I expect the next dividend hike to come any day now, and I think the stock still has plenty of room to run, so now's the time to get in.
The Acquisition Specialist: AbbVie Inc (ABBV)
AbbVie Inc ( ABBV ) makes the world's top-selling drug, anti-inflammatory Humira, which hit $14 billion in sales last year. But that success has rattled some investors' nerves, because Humira will start losing patent protection in late 2016.
That's good news for us, because this overblown fear has served up a buying opportunity: AbbVie trades at 18.2 times its last 12 months of earnings, a big discount to rivals Johnson & Johnson ( JNJ ) , at 22.3, and Eli Lilly and Co ( LLY ), at 34.9.
Why do I say overblown? Because AbbVie has patents on everything from Humira's formulation methods to how it's delivered that will keep a generic rival on the sidelines for six more years -till 2022.
Meantime, the company boasts a strong pipeline, which it's bolstering through R&D and acquisitions. Its latest buys include lung-cancer treatment Rova T, which AbbVie feels could post annual sales of $5 billion, and three-year-old cancer drug Imbruvica, which could deliver another $3 billion.
The stock yields 3.6% today, and AbbVie has raised its payout 42% since being spun off from Abbott Laboratories ( ABT ) in 2013.
AbbVie posted strong Q2 results in July and upped its guidance for the full year to $4.73 to $4.83 in adjusted EPS from $4.62 to $4.82. The midpoint of the new range is 11.4% higher than 2015.
Look for AbbVie to announce a dividend hike of at least that size when it next reports earnings on October 28.
A Crash-Proof "No-Withdrawal" Retirement Portfolio
All 4 of these stocks are great picks now, but even with their regular payout hikes, they just can't deliver enough income to achieve what every investor should be shooting for: a retirement portfolio that lets you live on dividends alone -with no need to sell shares.
This is important for two reasons: it lets you leave a lasting legacy for your kids and grandkids, and a portfolio built this way is far more durable during market downturns. That's because you won't have to sell shares at fire-sale prices just to pay the bills.
Instead, you can kick back and let the dividend checks roll in until the market turns up again.
Most investors know this is the right way to look at retirement. The problem is that even a million dollars in Dividend Aristocrats yielding 2% and 3% doesn't generate enough income to make it happen.
The 10 Best Stocks to Buy for the Rest of 2016
That's where the 6 investments I've found come in. They're from 3 ignored asset classes known to throw off safe yields of 6%, 7%, 8% and more.
In fact, these 6 investments are so safe I've made them the cornerstones of my "No-Withdrawal" retirement portfolio.
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The post 4 Stocks to Buy for Big October Dividend Hikes (CTAS, CHDN, TXN, 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. | The Acquisition Specialist: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) makes the world's top-selling drug, anti-inflammatory Humira, which hit $14 billion in sales last year. That's good news for us, because this overblown fear has served up a buying opportunity: AbbVie trades at 18.2 times its last 12 months of earnings, a big discount to rivals Johnson & Johnson ( JNJ ) , at 22.3, and Eli Lilly and Co ( LLY ), at 34.9. Because AbbVie has patents on everything from Humira's formulation methods to how it's delivered that will keep a generic rival on the sidelines for six more years -till 2022. | The post 4 Stocks to Buy for Big October Dividend Hikes (CTAS, CHDN, TXN, ABBV) appeared first on InvestorPlace . The Acquisition Specialist: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) makes the world's top-selling drug, anti-inflammatory Humira, which hit $14 billion in sales last year. That's good news for us, because this overblown fear has served up a buying opportunity: AbbVie trades at 18.2 times its last 12 months of earnings, a big discount to rivals Johnson & Johnson ( JNJ ) , at 22.3, and Eli Lilly and Co ( LLY ), at 34.9. | The Acquisition Specialist: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) makes the world's top-selling drug, anti-inflammatory Humira, which hit $14 billion in sales last year. That's good news for us, because this overblown fear has served up a buying opportunity: AbbVie trades at 18.2 times its last 12 months of earnings, a big discount to rivals Johnson & Johnson ( JNJ ) , at 22.3, and Eli Lilly and Co ( LLY ), at 34.9. Because AbbVie has patents on everything from Humira's formulation methods to how it's delivered that will keep a generic rival on the sidelines for six more years -till 2022. | The Acquisition Specialist: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) makes the world's top-selling drug, anti-inflammatory Humira, which hit $14 billion in sales last year. That's good news for us, because this overblown fear has served up a buying opportunity: AbbVie trades at 18.2 times its last 12 months of earnings, a big discount to rivals Johnson & Johnson ( JNJ ) , at 22.3, and Eli Lilly and Co ( LLY ), at 34.9. Because AbbVie has patents on everything from Humira's formulation methods to how it's delivered that will keep a generic rival on the sidelines for six more years -till 2022. |
26423.0 | 2016-10-07 00:00:00 UTC | Did Pfizer's No-Split Decision Cost Investors a Lot of Money? | ABBV | https://www.nasdaq.com/articles/did-pfizers-no-split-decision-cost-investors-lot-money-2016-10-07 | nan | nan | PFE data by YCharts .
But this isn't the best comparison. I'd instead look at a similar choice faced by Abbott Labs (NYSE: ABT) . Back in 2011, Abbott announced plans to separate into two companies -- one focused on branded prescription drugs and the other focused on products including medical devices and generic drugs. Abbott CEO Miles White promoted the split as a move that would stir investor interest and create more value for shareholders.
White was right on target. On Jan. 2, 2013, AbbVie (NYSE: ABBV) opened its doors as a new publicly traded company. The biotech's products included blockbuster drug Humira and a strong pipeline. Here's how shares of AbbVie and Abbott have performed since then:
ABT data by YCharts .
Could Pfizer have achieved these kind of results with a PfiVie spin-off? Maybe not. After all, Pfizer doesn't have a drug that matches the superstar status of Humira. However, the company's innovative health segment includes blockbuster drug Lyrica IH, which posted an impressive 19% year-over-year growth rate in the first half of 2016. Several other drugs are rising stars, with Ibrance and Xeljanz leading the way.
Acquisitions are also bolstering Pfizer's innovative health lineup. The buyout of Anacor Pharmaceuticals in June added promising atopic dermatitis drug crisaborole. Pfizer's recently completed acquisition of Medivation gives it prostate cancer drug Xtandi.
Meanwhile, Pfizer's essential health unit includes plenty of drugs with declining sales like Lipitor and Zoloft. Last year's acquisition of Hospira added injectable drugs and biosimilars, which give the essential health business segment a pathway to growth.
The right call?
Pfizer says that it can drive value more effectively for shareholders by remaining intact. By operating two units within the same corporate umbrella, Pfizer is "already accessing many of the potential benefits of a split -- sharper focus, increased accountability, and a greater sense of urgency," says CEO Ian Read.
I don't doubt that Read is correct. However, I wonder if the company might have underappreciated the psychological boost a split could have had in the investor community. Pfizer has been something of a "blah" stock for a while now. I'm just not sure that's going to change significantly without a major splash like a split could have provided.
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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. | On Jan. 2, 2013, AbbVie (NYSE: ABBV) opened its doors as a new publicly traded company. Here's how shares of AbbVie and Abbott have performed since then: ABT data by YCharts . However, the company's innovative health segment includes blockbuster drug Lyrica IH, which posted an impressive 19% year-over-year growth rate in the first half of 2016. | On Jan. 2, 2013, AbbVie (NYSE: ABBV) opened its doors as a new publicly traded company. Here's how shares of AbbVie and Abbott have performed since then: ABT data by YCharts . The biotech's products included blockbuster drug Humira and a strong pipeline. | On Jan. 2, 2013, AbbVie (NYSE: ABBV) opened its doors as a new publicly traded company. Here's how shares of AbbVie and Abbott have performed since then: ABT data by YCharts . Back in 2011, Abbott announced plans to separate into two companies -- one focused on branded prescription drugs and the other focused on products including medical devices and generic drugs. | Here's how shares of AbbVie and Abbott have performed since then: ABT data by YCharts . On Jan. 2, 2013, AbbVie (NYSE: ABBV) opened its doors as a new publicly traded company. Abbott CEO Miles White promoted the split as a move that would stir investor interest and create more value for shareholders. |
26424.0 | 2016-10-07 00:00:00 UTC | Pfizer to Sell Hospira Infusion Unit to ICU Medical for $1B | ABBV | https://www.nasdaq.com/articles/pfizer-to-sell-hospira-infusion-unit-to-icu-medical-for-%241b-2016-10-07 | nan | nan | Pfizer, IncPFE) has entered into a definitive agreement to sell its Hospira infusion systems business to medical device maker ICU Medical Inc. ICUI for $1 billion in cash and stock. Shares of ICU Medical were up almost 15% on Thursday.
With the addition of Hospira infusion systems business which includes IV pumps, solutions, and devices, ICU Medical will become a leading pure-play infusion therapy company. The deal extends the company's global presence with direct operations in more than 20 countries. Hospira Infusion Systems business is presently ICU Medical's largest single customer.
Per terms of the deal, Pfizer will receive approximately $400 million in freshly issued ICU Medical shares and have a 16.6% stake in the company. The purchase consideration also includes 600 million in cash.
Additionally, as long as Pfizer keeps a 10% stake in ICU Medical's common equity, it will have the right to nominate one director to ICU Medical's board of directors.
PFIZER INC Price
PFIZER INC Price | PFIZER INC Quote
The transaction is expected to close in the first quarter of 2017, subject to regulatory approvals. Pfizer bought Hospira infusion systems business as part of its Sep 2015 acquisition of Hospira, a leading sterile injectable drugs and biosimilars manufacturer, for about $17 billion.
The Hospira acquisition has significantly expanded Pfizer's sterile injectable and biosimilar capabilities. This takeover provided Pfizer with Hospira's lucrative biosimilar portfolio of both marketed and pipeline assets. Biosimilars of Herceptin, Rituxan/MabThera, Avastin and AbbVie Inc.'s ABBV Humira are in phase III development, while biosimilars of Amgen Inc.'s AMGN Neupogen and Neulasta are in phase I. Pfizer believes that the market for biosimilars is huge and can grow to $17-$20 billion by 2020.
Hospira added $1.13 billion to Pfizer's top line in the last reported quarter - second quarter of 2016.
While Pfizer carries a Zacks Rank #3 (Hold), ICU Medical has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biosimilars of Herceptin, Rituxan/MabThera, Avastin and AbbVie Inc.'s ABBV Humira are in phase III development, while biosimilars of Amgen Inc.'s AMGN Neupogen and Neulasta are in phase I. Pfizer believes that the market for biosimilars is huge and can grow to $17-$20 billion by 2020. Click to get this free report ICU MEDICAL INC (ICUI): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Hospira Infusion Systems business is presently ICU Medical's largest single customer. | Click to get this free report ICU MEDICAL INC (ICUI): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Biosimilars of Herceptin, Rituxan/MabThera, Avastin and AbbVie Inc.'s ABBV Humira are in phase III development, while biosimilars of Amgen Inc.'s AMGN Neupogen and Neulasta are in phase I. Pfizer believes that the market for biosimilars is huge and can grow to $17-$20 billion by 2020. Pfizer, IncPFE) has entered into a definitive agreement to sell its Hospira infusion systems business to medical device maker ICU Medical Inc. ICUI for $1 billion in cash and stock. | Click to get this free report ICU MEDICAL INC (ICUI): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Biosimilars of Herceptin, Rituxan/MabThera, Avastin and AbbVie Inc.'s ABBV Humira are in phase III development, while biosimilars of Amgen Inc.'s AMGN Neupogen and Neulasta are in phase I. Pfizer believes that the market for biosimilars is huge and can grow to $17-$20 billion by 2020. Pfizer, IncPFE) has entered into a definitive agreement to sell its Hospira infusion systems business to medical device maker ICU Medical Inc. ICUI for $1 billion in cash and stock. | Biosimilars of Herceptin, Rituxan/MabThera, Avastin and AbbVie Inc.'s ABBV Humira are in phase III development, while biosimilars of Amgen Inc.'s AMGN Neupogen and Neulasta are in phase I. Pfizer believes that the market for biosimilars is huge and can grow to $17-$20 billion by 2020. Click to get this free report ICU MEDICAL INC (ICUI): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. With the addition of Hospira infusion systems business which includes IV pumps, solutions, and devices, ICU Medical will become a leading pure-play infusion therapy company. |
26425.0 | 2016-10-05 00:00:00 UTC | FDA Issues Warning on Hepatitis C Drugs | ABBV | https://www.nasdaq.com/articles/fda-issues-warning-hepatitis-c-drugs-2016-10-05 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Food and Drug Administration (FDA) has updated the labels on some hepatitis C drugs.
Source: Wikipedia
The agency is issuing warnings surrounding the risk of hepatitis B coming back for some patients who have suffered from the disease before. The move also applies to some of the newer and most expensive hepatitis C medications.
The FDA said the decision will include black-box warnings in the labels of at least nine Hepatitis C brand-name direct-acting antiviral drugs, such as Sovaldi and Harvoni from Gilead Sciences, Inc. (NASDAQ: GILD ).
Other medications that will get the label - which is the most serious warning that the agency can give out - include Viekira Pak from AbbVie (NYSE: ABBV ) and Zepatier from Merck & Co., Inc. (NYSE: MRK ). One such medication is prescribed to patients who need a liver transplant. Most of these drugs treat conditions that may be easily treatable at first, but later result in other symptoms that need to be addressed."This number includes only cases submitted to the FDA, so there are likely additional cases about which we are unaware," the FDA said on its website. More than 3 million people in the U.S. are afflicted with Hepatitis C-some of these patients only need to be treated with drugs that affect one's blood flow, while others need an actual organ transplant to survive in the long run.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other medications that will get the label - which is the most serious warning that the agency can give out - include Viekira Pak from AbbVie (NYSE: ABBV ) and Zepatier from Merck & Co., Inc. (NYSE: MRK ). Source: Wikipedia The agency is issuing warnings surrounding the risk of hepatitis B coming back for some patients who have suffered from the disease before. The FDA said the decision will include black-box warnings in the labels of at least nine Hepatitis C brand-name direct-acting antiviral drugs, such as Sovaldi and Harvoni from Gilead Sciences, Inc. (NASDAQ: GILD ). | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Other medications that will get the label - which is the most serious warning that the agency can give out - include Viekira Pak from AbbVie (NYSE: ABBV ) and Zepatier from Merck & Co., Inc. (NYSE: MRK ). More From InvestorPlace The 10 Best Stocks to Buy for the Rest of 2016 7 Stock Charts to Watch in October 5 Stocks to Sell Now or Short Into the Ground The post FDA Issues Warning on Hepatitis C Drugs appeared first on InvestorPlace . | Other medications that will get the label - which is the most serious warning that the agency can give out - include Viekira Pak from AbbVie (NYSE: ABBV ) and Zepatier from Merck & Co., Inc. (NYSE: MRK ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips The Food and Drug Administration (FDA) has updated the labels on some hepatitis C drugs. The FDA said the decision will include black-box warnings in the labels of at least nine Hepatitis C brand-name direct-acting antiviral drugs, such as Sovaldi and Harvoni from Gilead Sciences, Inc. (NASDAQ: GILD ). | Other medications that will get the label - which is the most serious warning that the agency can give out - include Viekira Pak from AbbVie (NYSE: ABBV ) and Zepatier from Merck & Co., Inc. (NYSE: MRK ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips The Food and Drug Administration (FDA) has updated the labels on some hepatitis C drugs. Source: Wikipedia The agency is issuing warnings surrounding the risk of hepatitis B coming back for some patients who have suffered from the disease before. |
26426.0 | 2016-10-05 00:00:00 UTC | This Looks to Be Johnson & Johnson's Next Blockbuster Drug | ABBV | https://www.nasdaq.com/articles/looks-be-johnson-johnsons-next-blockbuster-drug-2016-10-05 | nan | nan | Image source: Getty Images.
Meet Johnson & Johnson's next possible blockbuster drug
Guselkumab is an intriguing new therapy designed to treat immune disorders of the skin. The study presented at the EADV examined guselkumab as a treatment for plaque psoriasis. Unlike the vast majority of Food and Drug Administration-approved psoriasis drugs that work by slowing down the activity of the tumor necrosis factor protein, which is the driver of inflammation, guselkumab targets a protein known as interleukein-23, which has more specificity when it comes to immune response disorders of the skin.
The phase 3 study, which analyzed 837 patients with plaque psoriasis, found that guselkumab handily met its primary endpoint of a statistically significant improvement in skin clearance compared to the placebo and AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. After 16 weeks, 85% of the patients taking guselkumab had clear or nearly clear skin, which compares to just 6.9% of the patients receiving the placebo.
In terms of near-complete skin clearance at week 16, guselkumab was effective for 73% of patients, which compared favorably with the placebo (2.9%) and Humira (nearly 50%). Furthermore, as lead researcher Dr. Andrew Blauvelt from the Oregon Medical Research Center noted of guselkumab, "These responses were durable and maintained through week 48." At the 48-week mark Humira led to near-clearance in 55% of all patients compared to 81% of guselkumab patients.
Safety data was in-line with existing therapies, too, with 4.9% of patients taking guselkumab dealing with a serious side effect compared to 4.5% taking Humira. It is worth noting that two guselkumab patients developed cancer (one prostate cancer and the other breast cancer); however Dr. Blauvelt doesn't believe either cancer is as a result of the treatment. Nonetheless, long-term follow-up studies would be required of J&J.
Image source: Getty Images.
This data couldn't come at a better time for J&J
Johnson & Johnson already has a variety of plaque psoriasis drugs on pharmacy shelves, including blockbusters Remicade and Stelara. However, these therapies target the tumor necrosis factor protein, which, as noted above, is a common target in plaque psoriasis and a host of other skin disorders. By introducing a new pathway of treatment, J&J is providing some degree of separation that physicians and patients may latch onto -- especially with results superior to those of both the placebo and Humira.
More importantly, a handful of large drugmakers are actively developing biosimilar drugs , or copycat versions of biologic drugs, to displace select blockbuster brand-name therapies. One of the drugs actively being targeted by biosimilar drug developers is J&J's Remicade. If legal maneuvering is unable to prevent biosimilars and generic entrants from reaching the market, Humira, Remicade, and a cadre of tumor necrosis factor protein-targeting therapies could see their sales pressured.
If guselkumab is approved, it would possibly insulate J&J from these biosimilar pressures by providing what appears to be a superior product. In other words, J&J would have time to move its Remicade patients, and perhaps even Stelara patients, to guselkumab before biosimilars and generics steal sales. Considering that Remicade and Stelara brought in $5.1 billion in sales through the first six months of 2016, up from the nearly $4.4 billion in sales during the first-half of 2015, it's quite reasonable to expect guselkumab to reach blockbuster status relatively quickly if approved.
The X-factors investors should be aware of from here on out are the Food and Drug Administration, which is never a lock to do what Wall Street and investors expect, and J&J itself. Johnson & Johnson will have to be careful how it prices guselkumab to avoid pricing so highly that it gets excluded from insurance company formularies. However, with a long and successful history of drug launches, J&J will probably be just fine.
If you're a long-term shareholder of Johnson & Johnson, the guselkumab phase 3 data gives you yet another reason to be excited.
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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 .
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 has no position in any of the stocks mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure 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 phase 3 study, which analyzed 837 patients with plaque psoriasis, found that guselkumab handily met its primary endpoint of a statistically significant improvement in skin clearance compared to the placebo and AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. By introducing a new pathway of treatment, J&J is providing some degree of separation that physicians and patients may latch onto -- especially with results superior to those of both the placebo and Humira. If legal maneuvering is unable to prevent biosimilars and generic entrants from reaching the market, Humira, Remicade, and a cadre of tumor necrosis factor protein-targeting therapies could see their sales pressured. | The phase 3 study, which analyzed 837 patients with plaque psoriasis, found that guselkumab handily met its primary endpoint of a statistically significant improvement in skin clearance compared to the placebo and AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. After 16 weeks, 85% of the patients taking guselkumab had clear or nearly clear skin, which compares to just 6.9% of the patients receiving the placebo. In terms of near-complete skin clearance at week 16, guselkumab was effective for 73% of patients, which compared favorably with the placebo (2.9%) and Humira (nearly 50%). | The phase 3 study, which analyzed 837 patients with plaque psoriasis, found that guselkumab handily met its primary endpoint of a statistically significant improvement in skin clearance compared to the placebo and AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. Meet Johnson & Johnson's next possible blockbuster drug Guselkumab is an intriguing new therapy designed to treat immune disorders of the skin. Unlike the vast majority of Food and Drug Administration-approved psoriasis drugs that work by slowing down the activity of the tumor necrosis factor protein, which is the driver of inflammation, guselkumab targets a protein known as interleukein-23, which has more specificity when it comes to immune response disorders of the skin. | The phase 3 study, which analyzed 837 patients with plaque psoriasis, found that guselkumab handily met its primary endpoint of a statistically significant improvement in skin clearance compared to the placebo and AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world. By introducing a new pathway of treatment, J&J is providing some degree of separation that physicians and patients may latch onto -- especially with results superior to those of both the placebo and Humira. One of the drugs actively being targeted by biosimilar drug developers is J&J's Remicade. |
26427.0 | 2016-10-05 00:00:00 UTC | XLV, AMGN, MDT, ABBV: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-amgn-mdt-abbv-etf-outflow-alert-2016-10-05 | 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 $100.6 million dollar outflow -- that's a 0.8% decrease week over week (from 175,815,324 to 174,415,324). Among the largest underlying components of XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.7%. 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 $72.29. 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 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.7%. 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 $100.6 million dollar outflow -- that's a 0.8% decrease week over week (from 175,815,324 to 174,415,324). 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 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.7%. 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 $72.29. 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 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.7%. 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 $100.6 million dollar outflow -- that's a 0.8% decrease week over week (from 175,815,324 to 174,415,324). 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 $72.29. | Among the largest underlying components of XLV, in trading today Amgen Inc (Symbol: AMGN) is up about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.7%. 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 $72.29. 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). |
26428.0 | 2016-10-03 00:00:00 UTC | AbbVie: HCV Regimen Obtains Breakthrough Therapy Status | ABBV | https://www.nasdaq.com/articles/abbvie%3A-hcv-regimen-obtains-breakthrough-therapy-status-2016-10-03 | nan | nan | AbbVie Inc.ABBV announced that its investigational HCV regimen has been granted Breakthrough Therapy designation by the FDA for the treatment of chronic hepatitis C virus (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 HCV regime is a pan-genotypic course of therapy with glecaprevir (ABT-493)/pibrentasvir (ABT-530) (G/P). Notably, glecaprevir (GLE) is a potent protease inhibitor while pibrentasvir (PIB) is a new NS5A inhibitor.
GLE was discovered during the collaboration between AbbVie and Enanta Pharmaceuticals ENTA for HCV protease inhibitors.
A breakthrough therapy designation from the FDA is expected to expedite the development and review of drugs that are intended to treat serious or life threatening conditions and provide access to patients as soon as possible.
The breakthrough therapy status for pan-genotypic regimen was granted on the basis of positive results from the phase II MAGELLAN-1 clinical study.
G/P is currently in phase III program evaluating the safety and efficacy of G/P across all major HCV genotypes (genotypes 1-6). Data from the program is expected to be presented at the upcoming scientific congress. The commercialization of the HCV regime is expected in 2017.
AbbVie also has an extensive pipeline consisting of several interesting late-stage candidates. Promising candidates include elagolix (developed for the treatment of endometriosis and uterine fibroids), atrasentan (for chronic kidney disease), veliparib (indications including triple negative breast cancer and previously treated squamous NSCLC), and ABT-494 (rheumatoid arthritis, Crohn's disease and ulcerative colitis). The company expects to move several immuno-oncology candidates into development in 2016.
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 Anika Therapeutics Inc ANIK and ANI Pharmaceuticals, Inc. ANIP , both the stocks sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Anika Therapeutics' earnings estimates for 2016 and 2017 were up a respective 9.4% and 11.5% over the last 60 days. The company has recorded a positive earnings surprise in each of the last four quarters, the average being 42.19%. Its share price rallied 25.6% year to date.
ANI Pharmaceuticals witnessed a 9.5% and 4.7% increase in its earnings estimates for 2016 and 2017, respectively, over the last 60 days. The company beat estimates twice in the last four quarters, taking the average surprise to 46.85%. The company's share price has surged 50.6% 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. | AbbVie Inc.ABBV announced that its investigational HCV regimen has been granted Breakthrough Therapy designation by the FDA for the treatment of chronic hepatitis C virus (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. GLE was discovered during the collaboration between AbbVie and Enanta Pharmaceuticals ENTA for HCV protease inhibitors. AbbVie also has an extensive pipeline consisting of several interesting late-stage candidates. | AbbVie Inc.ABBV announced that its investigational HCV regimen has been granted Breakthrough Therapy designation by the FDA for the treatment of chronic hepatitis C virus (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. 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 ABBVIE INC (ABBV): Free Stock Analysis Report ENANTA PHARMA (ENTA): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV announced that its investigational HCV regimen has been granted Breakthrough Therapy designation by the FDA for the treatment of chronic hepatitis C virus (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. 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 ABBVIE INC (ABBV): Free Stock Analysis Report ENANTA PHARMA (ENTA): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV announced that its investigational HCV regimen has been granted Breakthrough Therapy designation by the FDA for the treatment of chronic hepatitis C virus (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. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). GLE was discovered during the collaboration between AbbVie and Enanta Pharmaceuticals ENTA for HCV protease inhibitors. |
26429.0 | 2016-10-03 00:00:00 UTC | J&J's Psoriasis Drug Shows Superior Efficacy Over Humira | ABBV | https://www.nasdaq.com/articles/jjs-psoriasis-drug-shows-superior-efficacy-over-humira-2016-10-03 | nan | nan | Johnson & JohnsonJNJ subsidiary, Janssen Therapeutics announced that data presented from a phase III trial showed superior efficacy of its pipeline candidate guselkumab, over AbbVie Inc.'s ABBV drug Humira in the treatment of moderate-to-severe plaque psoriasis.
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 versus top-selling medicine Humira. The study demonstrated the statistically significant efficacy of guselkumab compared to Humira after week 16 which was maintained through 48 weeks of treatment. Almost 50% of patients treated with Humira achieved near complete skin clearance versus 73% for guselkumab.
JOHNSON & JOHNS Price
JOHNSON & JOHNS Price | JOHNSON & JOHNS Quote
Humira is also approved for the treatment of rheumatoid arthritis and other autoimmune conditions.
The data was presented at the European Academy of Dermatology and Venereology (EADV) Congress in Austria.
Guselkumab, an anti-IL-23 human monoclonal antibody, is being evaluated in three pivotal phase III studies - VOYAGE 1, VOYAGE 2 and NAVIGATE - for moderate-to-severe plaque psoriasis. A phase II trial evaluating guselkumab in moderate-to-severely active psoriatic arthritis is also ongoing.
J&J carries a Zacks Rank #3 (Hold). Stocks worth considering in the large-cap healthcare sector are Eli Lilly and Co. LLY and Abbott Laboratories ABT .
Eli Lilly has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Eli Lilly has delivered an average four quarter positive earnings surprise of 4.31%. Its earnings estimate for 2016 has risen by 0.3% while that for 2017 has risen more than 2% over the last 90 days.
Abbott, also enjoying a Zacks Rank #2, has delivered positive earnings surprises for the past four straight quarters, with an average surprise of 3.11%.
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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. | Johnson & JohnsonJNJ subsidiary, Janssen Therapeutics announced that data presented from a phase III trial showed superior efficacy of its pipeline candidate guselkumab, over AbbVie Inc.'s ABBV drug Humira in the treatment of moderate-to-severe plaque psoriasis. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): 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 LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & JohnsonJNJ subsidiary, Janssen Therapeutics announced that data presented from a phase III trial showed superior efficacy of its pipeline candidate guselkumab, over AbbVie Inc.'s ABBV drug Humira in the treatment of moderate-to-severe plaque psoriasis. 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. | Johnson & JohnsonJNJ subsidiary, Janssen Therapeutics announced that data presented from a phase III trial showed superior efficacy of its pipeline candidate guselkumab, over AbbVie Inc.'s ABBV drug Humira in the treatment of moderate-to-severe plaque psoriasis. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): 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. | Johnson & JohnsonJNJ subsidiary, Janssen Therapeutics announced that data presented from a phase III trial showed superior efficacy of its pipeline candidate guselkumab, over AbbVie Inc.'s ABBV drug Humira in the treatment of moderate-to-severe plaque psoriasis. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): 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. |
26430.0 | 2016-09-30 00:00:00 UTC | Vertex Orkambi's Label Expanded in U.S., Outlook Revised | ABBV | https://www.nasdaq.com/articles/vertex-orkambis-label-expanded-in-u.s.-outlook-revised-2016-09-30 | nan | nan | Vertex Pharmaceuticals IncorporatedVRTX announced that its cystic fibrosis (CF) drug, Orkambi, was approved in the U.S. for the treatment of CF in patients aged 6-11 years who have two copies of the F508del mutation. The company said that the drug will be available to the eligible population shortly.
Vertex also plans to file a Marketing Authorization Application (MAA) variation in the EU for the same indication in the first half of 2017.
Note that Orkambi is a combination of lumacaftor and Kalydeco (ivacaftor), a marketed CF drug in the company's portfolio. Orkambi was approved in the U.S. and the EU in Jul 2015 and Nov 2015, respectively, for the treatment of CF in patients aged 12 years and older, who have two copies of the F508del mutation in their CF transmembrane conductance regulator (CFTR) gene. In the first six months of 2016, Orkambi raked in sales of $468.7 million.
VERTEX PHARM Price
VERTEX PHARM Price | VERTEX PHARM Quote
Meanwhile, Vertex has lowered its 2016 guidance for Orkambi sales to the range of $950-$990 million from the previously expected $1.0-$1.1 billion. The revision was primarily due to slower-than-anticipated launch of Orkambi in Germany and less-than-expected refills in the months of July and August. Sales of the drug are expected in the range of $230-$235 million in the third quarter of 2016.
CF, a rare, life-threatening disease, is estimated to affect approximately 75,000 people in the U.S., Europe and Australia. The company expects the latest label expansion of Orkambi to cover approximately 11,000 patients in the U.S.
Although Vertex is the first company to successfully develop drugs for the treatment of the underlying cause of CF, several other players in the pharma and biotech space are involved in the development of drugs for this indication. Nivalis Therapeutics, Inc. NVLS is currently evaluating its own CF candidate, N91115, in a phase II study. Top-line results of the study are expected by the end of 2016.
Earlier this year, Galapagos NV GLPG and AbbVie Inc. ABBV expanded their collaboration agreement for CF and aimed to develop a triple CFTR combination therapy.
We expect investor focus to remain on further news related to the CF market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier this year, Galapagos NV GLPG and AbbVie Inc. ABBV expanded their collaboration agreement for CF and aimed to develop a triple CFTR combination therapy. Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report NIVALIS THERAPT (NVLS): 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. Note that Orkambi is a combination of lumacaftor and Kalydeco (ivacaftor), a marketed CF drug in the company's portfolio. | Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report NIVALIS THERAPT (NVLS): 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. Earlier this year, Galapagos NV GLPG and AbbVie Inc. ABBV expanded their collaboration agreement for CF and aimed to develop a triple CFTR combination therapy. VERTEX PHARM Price VERTEX PHARM Price | VERTEX PHARM Quote Meanwhile, Vertex has lowered its 2016 guidance for Orkambi sales to the range of $950-$990 million from the previously expected $1.0-$1.1 billion. | Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report NIVALIS THERAPT (NVLS): 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. Earlier this year, Galapagos NV GLPG and AbbVie Inc. ABBV expanded their collaboration agreement for CF and aimed to develop a triple CFTR combination therapy. Vertex Pharmaceuticals IncorporatedVRTX announced that its cystic fibrosis (CF) drug, Orkambi, was approved in the U.S. for the treatment of CF in patients aged 6-11 years who have two copies of the F508del mutation. | Earlier this year, Galapagos NV GLPG and AbbVie Inc. ABBV expanded their collaboration agreement for CF and aimed to develop a triple CFTR combination therapy. Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report NIVALIS THERAPT (NVLS): 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. In the first six months of 2016, Orkambi raked in sales of $468.7 million. |
26431.0 | 2016-09-30 00:00:00 UTC | A “Don’t Blink” Opportunity In Regeneron Pharmaceuticals Inc (REGN) | ABBV | https://www.nasdaq.com/articles/a-dont-blink-opportunity-in-regeneron-pharmaceuticals-inc-regn-2016-09-30 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The sky is falling yet again on the market. But past the algo-driven excitement and fast-money worry, Regeneron Pharmaceuticals Inc (NASDAQ: REGN ) is offering a nice opportunity for bullish investors with an eye on a longer-term rally. Let me explain.
Blame it on the banks or more specifically, blame Thursday's lunchtime "micro, micro" flash crash on Deutsche Bank AG (USA) (NYSE: DB ) and raised "counterparty concerns." Just don't blame this strategist if you don't scoop up REGN stock at an attractive price in the aftermath of, likely blink-and-you-miss it, calamity and mayhem.
Not that I'm disregarding Bloomberg's breaking report on Deutsche Bank rekindling nightmares of another financial crisis. I'm not, although most financial institutions are in far better shape than in 2009. I simply see a better opportunity in REGN stock by remaining optimistic.
It should also be noted I'm not convinced a Hillary Clinton or Donald Trump (God forbid) presidency won't result in drug-price hardball and negatively impact REGN stock's bottom line. It's all possible and maybe more. But right now REGN stock's prospects off and on the chart, simply look really favorable.
Led by its flagship, macular degeneration eye drug Eylea, REGN stock has launched a patient trial to determine if its newly marketed cholesterol-fighting drug Praluent might reduce second heart attacks. That could certainly prove a boon for Regeneron shareholders.
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Regeneron is also waiting on a late-October review from the Food and Drug Administration regarding the protein sarilumab. The therapy apparently crushedAbbVie Inc's (NYSE: ABBV ) top-selling rheumatoid arthritis treatment Humira in a head-to-head trial and could provide substantial support for REGN stock.
The company also has dupilumab, an allergy drug that's also under review to consider, bullish full-year reaffirmed growth forecast of 20% to 25%, REGN stock's prominent position as a proven and profitable ongoing biotech company - and one looking ready to return some value to shareholders on the price chart.
REGN Stock Daily Chart
Click to Enlarge Looking at REGN stock's price chart, I've highlighted and noted where a bullish butterfly spread for $2.50, or just 0.5% of the risk associated with a 100 share position, went awry back in August. "Doink!"
The good news, other than positioning with a butterfly at the time, is shares of REGN have actually improved the technical outlook for bullish investors.
A previously discussed failed head-and-shoulders pattern eventually found meaningful support from its 50% retracement level and former neckline resistance. And now, a pullback in REGN is testing moving average support from both the 50- and 200-day simple moving averages, which also recently signaled a bullish golden cross.
Now, net traders are presented an opportunity to buy into the Regeneron story at decent-looking price levels in REGN stock.
REGN Bullish Butterfly
Given what's been discussed and in reviewing REGN's options, the Jan $430/$460/$490 call butterfly is attractive.
Priced for around $4 per spread with REGN stock at $406.40, the bullishly positioned butterfly requires a move of just less than 7% at expiration to breakeven. With nearly four months of life in the spread, earnings and FDA catalysts, that's certainly reasonable.
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At the same time a profit of 650%, or $2,600 per spread, is possible if shares of REGN found themselves exactly at $460 on expiration. More pragmatically, a generous profit range from $434 to $496 in REGN stock - and where solid, managed profits can more typically be found during the life of the spread - makes this a butterfly to consider.
Investment accounts under Christopher Tyler's management do not currently own positions in any of the securities or their derivatives mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT .
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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 therapy apparently crushedAbbVie Inc's (NYSE: ABBV ) top-selling rheumatoid arthritis treatment Humira in a head-to-head trial and could provide substantial support for REGN stock. But past the algo-driven excitement and fast-money worry, Regeneron Pharmaceuticals Inc (NASDAQ: REGN ) is offering a nice opportunity for bullish investors with an eye on a longer-term rally. It should also be noted I'm not convinced a Hillary Clinton or Donald Trump (God forbid) presidency won't result in drug-price hardball and negatively impact REGN stock's bottom line. | The therapy apparently crushedAbbVie Inc's (NYSE: ABBV ) top-selling rheumatoid arthritis treatment Humira in a head-to-head trial and could provide substantial support for REGN stock. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips The sky is falling yet again on the market. But past the algo-driven excitement and fast-money worry, Regeneron Pharmaceuticals Inc (NASDAQ: REGN ) is offering a nice opportunity for bullish investors with an eye on a longer-term rally. | The therapy apparently crushedAbbVie Inc's (NYSE: ABBV ) top-selling rheumatoid arthritis treatment Humira in a head-to-head trial and could provide substantial support for REGN stock. The company also has dupilumab, an allergy drug that's also under review to consider, bullish full-year reaffirmed growth forecast of 20% to 25%, REGN stock's prominent position as a proven and profitable ongoing biotech company - and one looking ready to return some value to shareholders on the price chart. REGN Stock Daily Chart Click to Enlarge Looking at REGN stock's price chart, I've highlighted and noted where a bullish butterfly spread for $2.50, or just 0.5% of the risk associated with a 100 share position, went awry back in August. | The therapy apparently crushedAbbVie Inc's (NYSE: ABBV ) top-selling rheumatoid arthritis treatment Humira in a head-to-head trial and could provide substantial support for REGN stock. Not that I'm disregarding Bloomberg's breaking report on Deutsche Bank rekindling nightmares of another financial crisis. REGN Stock Daily Chart Click to Enlarge Looking at REGN stock's price chart, I've highlighted and noted where a bullish butterfly spread for $2.50, or just 0.5% of the risk associated with a 100 share position, went awry back in August. |
26432.0 | 2016-09-30 00:00:00 UTC | 3 Cheap Growth Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-cheap-growth-stocks-you-can-buy-right-now-2016-09-30 | nan | nan | Image source: Getty Images.
What exactly is a growth stock? Though it's arbitrary, I'll define a growth stock as any company forecast to grow profits by 10% or more annually during the next five years. To decide what's "cheap," I'll use the PEG ratio, which compares a company's price-to-earnings ratio to its future growth rate. Any figure around or below 1 could signal a cheap stock.
Here are three companies that fit the bill.
AbbVie Inc.
We'll begin the week in megacap territory by looking at the $105 billion drug giant AbbVie (NYSE: ABBV) .
What investors needs to understand about AbbVie, and any drugmaker for that matter, is that branded therapeutics are protected by patents for only a finite amount of time. Eventually, generic drugs enter the marketplace and disrupt the revenue stream of branded therapies. This is a bit concerning, because AbbVie's leading drug, Humira, an anti-inflammatory drug with 10 approved indications, is currently the best-selling drug in the world. Humira generated more than $14 billion in sales for AbbVie in 2015, and through the first-half of the year has accounts for $7.73 billion of AbbVie's $12.39 billion in revenue. When Humira's protection period is over, AbbVie and its shareholders could feel some pain.
Image source: Getty Images.
On the research and development front, AbbVie is counting on its oncology therapeutics and own biosimilar research to lead the charge. AbbVie has a dozen oncologic candidates in clinical trials, some of which are already approved and on pharmacy shelves. For example, Venclexta, a first-to-market BCL-2 inhibitor developed by AbbVie and Roche , is already approved to treat relapsed chronic lymphocytic leukemia with the 17p deletion, and it's being studied in five additional blood cancers. While peak annual sales estimates vary wildly, seemingly all Wall Street analysts seems to believe Venclexta sales will soar well past $1 billion annually.
On the acquisition front, AbbVie gobbled up Pharmacyclics last year in a $21 billion deal to gain hold of a good chunk of blood cancer drug Imbruvica's revenue stream. Imbruvica was developed by Pharmacyclics with the help of Johnson & Johnson . AbbVie's CEO Richard Gonzalez is standing by his estimate that Imbruvica could generate $12 billion in peak annual sales, which would definitely take the sting off weakening Humira sales in the years to come. AbbVie's share at peak sales would be about $7 billion, annually.
Currently sporting a PEG ratio of 0.8 and a healthy 3.5% dividend yield, AbbVie could be just what the doctor ordered.
Sibanye Gold Ltd.
Next, we're going to dig deep into our chest of undiscovered mid-cap stocks and pull out Sibanye Gold (NYSE: SBGL) , an underground and surface gold miner operating out of South Africa.
As with all African gold miners, two issues are a constant concern. First, there always seem to be concerns about political instability; however South Africa tends to be one of the few exceptions to the region. Secondarily, labor in South Africa tends to be more expensive and prone to disputes or strikes. A third issue for all gold miners to concern themselves with is the physical price of gold itself. If gold prices fall, African miners, which tend to have higher all-in sustaining costs, are among the first to feel the pain.
Image source: Getty Images.
To begin with, physical gold's strength has shown little sign of slowing. The opportunity cost of owning gold remains low thanks to historically low lending rates in the U.S. and other developed countries around the world. Unless we see multiple interest rate hikes in the U.S., gold is likely to remain an attractive investment relative to bonds or CDs. Also, a recent World Gold Council report observed that demand for gold increased 15% in the first-half of 2016 while supply rose by just 1%. The fundamental picture for gold remains strong.
Individually, most of Sibanye Gold's metrics are trending in the right direction. Favorable dollar-rand exchange rates helped push its all-in sustaining costs down 20% to $908 an ounce in the first-half of 2016, all while the company maintained its annual guidance and generated a 128% increase in operating profit to $351 million. Gold production also increased by 5% from the first-half of 2015. Incredibly, Sibanye delivered these phenomenal results despite multiple operating disruptions. Looking ahead, its management team anticipates gold production topping 1 million ounces annually through 2028, with the life of its gold production extending beyond 2040.
Valued at a mere six times forward earnings and with a sub-1 PEG, Sibanye could be the lustrous growth stock you've been looking for.
PennTex Midstream Partners LP
To hit all ends of the spectrum, we'll end by taking a look at an under-the-radar small-cap in the energy sector, PennTex Midstream Partners (NASDAQ: PTXP) . PennTex is a midstream acquirer of energy infrastructure assets in northern Louisiana that gathers and processes natural gas and natural gas liquids.
The biggest worry for investors in a midstream provider like PennTex is what might happen to the underlying assets it gathers and processes. If natural gas and/or natural gas liquid prices fall, it could reduce the incentive for drillers to produce. Less production could equal less in the way of future contracts, and a potentially murkier future for PennTex.
Image source: Getty Images.
The first reason to like PennTex is that the majority of its revenue is generated from take-or-pay contracts. These contracts provide something of a financial floor under PennTex, guaranteeing it revenue for its gathering and processing services whether the product gets delivered or not. But what investors may like even more is that PennTex's largest customer increased its minimum volume commitments from 345,000 MMBtu per day during Q2 2016 to 460,000 MMBtu per day. These contracts, barring bankruptcies and abrupt cancellations, provide downside protection for midstream companies like PennTex.
Secondly, the U.S. Energy Information Administration earlier this year predicted that global energy consumption would increase by 48% between 2012 and 2040. Though renewable=energy sources are expected to grow faster than any other source of energy, natural gas consumption could grow by nearly 100 quadrillion Btu's annually by 2040 from 2012 levels, outpacing growth from other fossil fuels. That bodes well for U.S. shale production and PennTex's long-term demand.
Lastly, there's no shame in growth investors basking in the above-average yields of midstream limited partnerships. PennTex is paying out $1.14 on an annualized basis, which works out to a delectable 6.6% yield. Top this off with a PEG of just 0.7, and you have what could be a hidden growth gem in the energy sector.
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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.
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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 example, Venclexta, a first-to-market BCL-2 inhibitor developed by AbbVie and Roche , is already approved to treat relapsed chronic lymphocytic leukemia with the 17p deletion, and it's being studied in five additional blood cancers. On the acquisition front, AbbVie gobbled up Pharmacyclics last year in a $21 billion deal to gain hold of a good chunk of blood cancer drug Imbruvica's revenue stream. AbbVie Inc. We'll begin the week in megacap territory by looking at the $105 billion drug giant AbbVie (NYSE: ABBV) . | On the acquisition front, AbbVie gobbled up Pharmacyclics last year in a $21 billion deal to gain hold of a good chunk of blood cancer drug Imbruvica's revenue stream. AbbVie Inc. We'll begin the week in megacap territory by looking at the $105 billion drug giant AbbVie (NYSE: ABBV) . What investors needs to understand about AbbVie, and any drugmaker for that matter, is that branded therapeutics are protected by patents for only a finite amount of time. | Humira generated more than $14 billion in sales for AbbVie in 2015, and through the first-half of the year has accounts for $7.73 billion of AbbVie's $12.39 billion in revenue. AbbVie's CEO Richard Gonzalez is standing by his estimate that Imbruvica could generate $12 billion in peak annual sales, which would definitely take the sting off weakening Humira sales in the years to come. AbbVie Inc. We'll begin the week in megacap territory by looking at the $105 billion drug giant AbbVie (NYSE: ABBV) . | On the acquisition front, AbbVie gobbled up Pharmacyclics last year in a $21 billion deal to gain hold of a good chunk of blood cancer drug Imbruvica's revenue stream. AbbVie Inc. We'll begin the week in megacap territory by looking at the $105 billion drug giant AbbVie (NYSE: ABBV) . What investors needs to understand about AbbVie, and any drugmaker for that matter, is that branded therapeutics are protected by patents for only a finite amount of time. |
26433.0 | 2016-09-29 00:00:00 UTC | How Oncology Could Move the Needle for Johnson & Johnson's Stock | ABBV | https://www.nasdaq.com/articles/how-oncology-could-move-needle-johnson-johnsons-stock-2016-09-29 | nan | nan | While 15 compounds sounds impressive, investors should note that these projects are in early development. That's why I wouldn't be surprised to see management make some acquisitions in IO in the next 12 months. Thus far, J&J hasn't ruled anything out. In fact, when asked about acquisitions in the Q1 earnings call, VP Dominic Caruso said, "We're patient [and] disciplined, and we'll look for the right opportunity at the right time with the right valuation."
Be that as it may, at close to 22 times earnings and with overall single-digit growth prospects, J&J looks fairly valued right now. But with the global oncology market forecast to hit $100.5 billion by 2017, J&J's bright prospects in the field are just one more reason to hold on to those shares. After all, while this massive company with its global footprint will keep marching forward regardless, its great to know that oncology could add a little more lift to its steps.
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Cheryl Swanson owns shares of Johnson and Johnson. 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 fact, when asked about acquisitions in the Q1 earnings call, VP Dominic Caruso said, "We're patient [and] disciplined, and we'll look for the right opportunity at the right time with the right valuation." But with the global oncology market forecast to hit $100.5 billion by 2017, J&J's bright prospects in the field are just one more reason to hold on to those shares. After all, while this massive company with its global footprint will keep marching forward regardless, its great to know that oncology could add a little more lift to its steps. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Motley Fool recommends Johnson and Johnson. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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. | That's why I wouldn't be surprised to see management make some acquisitions in IO in the next 12 months. The Motley Fool recommends Johnson and Johnson. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. |
26434.0 | 2016-09-29 00:00:00 UTC | Why Investors Are Paying a Premium for Regeneron Pharmaceuticals, Inc. | ABBV | https://www.nasdaq.com/articles/why-investors-are-paying-premium-regeneron-pharmaceuticals-inc-2016-09-29 | nan | nan | REGN data by YCharts
While the average stock in the S&P 500 sports a trailing PE ratio of about 24.8, Regeneron Pharmaceuticals shares are trading at a sky-high multiple of 66.9 times trailing earnings. Clearly investors are expecting some dazzling growth in the years ahead. Read on to see what they're looking forward to.
An eye on product sales
Eylea is an increasingly popular treatment that slows the progression of several conditions that lead to vision loss, and it's currently responsible for nearly all of Regeneron's product sales. Since its first FDA approval in 2011, Eylea sales in the U.S. have soared to $1.61 billion in the first half of this year, a 34.8% increase over the same period last year.
Outside the U.S., Germany's Bayer markets the eyeball injection, and sales are booming. In the first half of the year, Regeneron's share of profits from the partnership jumped 60% over the previous year period to $313.3 million.
The French connection
One of the reasons Regeneron is trading at such a high multiple is because it's been funneling Eylea proceeds into expansion of its product lineup. Although sales rose sharply in the first half, increased expenses associated with developing and commercializing drugs in partnership with French pharma giant Sanofi (NYSE: SNY) led to a slight decrease in operating profit compared to the previous year period.
The first high-profile drug to emerge from the partnership, Praluent, is a next generation cholesterol-lowering injection expected to reach over $3 billion in annual sales. Unfortunately, it also has a big price tag that has limited its uptake. Although it was the first drug of its class to earn FDA approval last July, net sales of Praluent were just $37.4 million in the first half.
Its launch could receive a shot in the arm next year. The partners are running an 18,000 patient trial to determine if the therapy actually lowers the risk of a second heart attack. If the results are positive, they could justify Praluent's $14,600 per year price tag, and help it reach its lofty sales estimates.
Under review
While they're waiting for Praluent results, the partners have plenty to look forward to. The FDA is currently reviewing sarilumab, a protein that blocks a pathway highly correlated with inflammation and joint destruction in rheumatoid arthritis (RA) patients, and the partners expect a decision by the end of October. One of the most popular RA treatments, AbbVie 's Humira, is the world's top selling drug, with second quarter sales that suggest an annual run rate of more than $16 billion, and sarilumab wiped the floor with it in a head-to-head trial.
Earlier this year, Regeneron and Sanofi posted results that showed RA patients receiving sarilumab produced a 46% stronger decrease in disease activity than patients taking Humira after 24 weeks. These results don't mean sarilumab will surpass Humira's popularity, but with results like these its chances of passing the $1 billion-per-year blockbuster mark seem solid.
A first
If approved, sarilumab will enter an increasingly crowded field -- but the partners have another new drug candidate under FDA review that could launch into the clear blue sky. Dupilumab would -- again, if approved -- become the first effective treatment for a large, under-served group of people with a serious form of eczema known as atopic dermatitis. The disease affects an estimated 7 million to 8 million Americans, and there are approximately 1.6 million diagnosed with uncontrollable moderate-to-severe symptoms.
This spring, Regeneron and Sanofi showed patients with moderate-to-severe atopic dermatitis treated with dupilumab benefited significantly compared to those receiving a placebo. This being the first therapy to produce such a benefit, the FDA recently granted its application a priority review, with a decision expected before the end of next March.
With such a large unmet need, dupilumab peak annual sales estimates as high as $4 billion aren't that farfetched. The future of dupilumab and sarilumab are far from certain, but considering their potential, the premium investors are willing to pay for Regeneron Pharmaceuticals stock isn't that outrageous either.
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Cory Renauer has no position in any stocks mentioned. You can follow Cory on Twitter @TMFang4apples or connect with him on LinkedIn for more healthcare industry insight.
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. | One of the most popular RA treatments, AbbVie 's Humira, is the world's top selling drug, with second quarter sales that suggest an annual run rate of more than $16 billion, and sarilumab wiped the floor with it in a head-to-head trial. Although sales rose sharply in the first half, increased expenses associated with developing and commercializing drugs in partnership with French pharma giant Sanofi (NYSE: SNY) led to a slight decrease in operating profit compared to the previous year period. The FDA is currently reviewing sarilumab, a protein that blocks a pathway highly correlated with inflammation and joint destruction in rheumatoid arthritis (RA) patients, and the partners expect a decision by the end of October. | One of the most popular RA treatments, AbbVie 's Humira, is the world's top selling drug, with second quarter sales that suggest an annual run rate of more than $16 billion, and sarilumab wiped the floor with it in a head-to-head trial. In the first half of the year, Regeneron's share of profits from the partnership jumped 60% over the previous year period to $313.3 million. Earlier this year, Regeneron and Sanofi posted results that showed RA patients receiving sarilumab produced a 46% stronger decrease in disease activity than patients taking Humira after 24 weeks. | One of the most popular RA treatments, AbbVie 's Humira, is the world's top selling drug, with second quarter sales that suggest an annual run rate of more than $16 billion, and sarilumab wiped the floor with it in a head-to-head trial. Since its first FDA approval in 2011, Eylea sales in the U.S. have soared to $1.61 billion in the first half of this year, a 34.8% increase over the same period last year. Although sales rose sharply in the first half, increased expenses associated with developing and commercializing drugs in partnership with French pharma giant Sanofi (NYSE: SNY) led to a slight decrease in operating profit compared to the previous year period. | One of the most popular RA treatments, AbbVie 's Humira, is the world's top selling drug, with second quarter sales that suggest an annual run rate of more than $16 billion, and sarilumab wiped the floor with it in a head-to-head trial. Since its first FDA approval in 2011, Eylea sales in the U.S. have soared to $1.61 billion in the first half of this year, a 34.8% increase over the same period last year. If the results are positive, they could justify Praluent's $14,600 per year price tag, and help it reach its lofty sales estimates. |
26435.0 | 2016-09-28 00:00:00 UTC | Momenta to Regain Rights to Humira Biosimilar from Shire | ABBV | https://www.nasdaq.com/articles/momenta-to-regain-rights-to-humira-biosimilar-from-shire-2016-09-28 | nan | nan | Momenta Pharmaceuticals Inc.MNTA announced that Shire plc SHPG has exercised its right to terminate their collaboration agreement for the development and commercialization of M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab).
Currently, M923 is in a phase III study for the treatment of chronic plaque psoriasis. The study is evaluating the safety, efficacy and immunogenicity of the candidate in comparison to Humira. Top-line data from the study are expected in late 2016.
As per terms of the agreement, the collaboration will end in 12 months of the termination notice. Shire will continue to fund the program till termination. We remind investors that Shire had acquired the rights to M923 following the acquisition of Baxalta Incorporated in Jun 2016.
MOMENTA PHARMA Price
MOMENTA PHARMA Price | MOMENTA PHARMA Quote
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 2015, Humira had raked in worldwide sales of $14 billion.
Note that several pharma and biotech companies are involved in the development of biosimilars. Late last week, Amgen Inc.'s AMGN Amjevita (adalimumab-atto), a biosimilar of Humira, was approved in the U.S. across all eligible indications of the reference product. (Read more: Amgen's Biosimilar of Abbvie's Humira Gets FDA Approval )
Going forward, we expect investor focus to remain on the successful development of M923 by Momenta. Investors should also keep an eye on further updates related to the termination of the agreement with Shire.
Both Momenta and Shire carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Momenta Pharmaceuticals Inc.MNTA announced that Shire plc SHPG has exercised its right to terminate their collaboration agreement for the development and commercialization of M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab). (Read more: Amgen's Biosimilar of Abbvie's Humira Gets FDA Approval ) Going forward, we expect investor focus to remain on the successful development of M923 by Momenta. 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. | 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. Momenta Pharmaceuticals Inc.MNTA announced that Shire plc SHPG has exercised its right to terminate their collaboration agreement for the development and commercialization of M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab). (Read more: Amgen's Biosimilar of Abbvie's Humira Gets FDA Approval ) Going forward, we expect investor focus to remain on the successful development of M923 by Momenta. | Momenta Pharmaceuticals Inc.MNTA announced that Shire plc SHPG has exercised its right to terminate their collaboration agreement for the development and commercialization of M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab). 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. (Read more: Amgen's Biosimilar of Abbvie's Humira Gets FDA Approval ) Going forward, we expect investor focus to remain on the successful development of M923 by Momenta. | (Read more: Amgen's Biosimilar of Abbvie's Humira Gets FDA Approval ) Going forward, we expect investor focus to remain on the successful development of M923 by Momenta. Momenta Pharmaceuticals Inc.MNTA announced that Shire plc SHPG has exercised its right to terminate their collaboration agreement for the development and commercialization of M923, a biosimilar version of AbbVie Inc.'s ABBV flagship drug, Humira (adalimumab). 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. |
26436.0 | 2016-09-28 00:00:00 UTC | 3 Reasons Not to Lose Faith in Amgen, Inc. (AMGN) | ABBV | https://www.nasdaq.com/articles/3-reasons-not-to-lose-faith-in-amgen-inc.-amgn-2016-09-28 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Ugh. Just when it looks like Amgen, Inc. (NASDAQ: AMGN ) shares are going to find the catalyst they need to break out of a two-year rut, news comes along to upend the effort AMGN stock has been piecing together since June.
The news in question was the announcement that a highly ballyhooed Kyprolis failed to show meaningful efficacy in a phase 3 trial as a first-line treatment for multiple myeloma. While the drug showed promise in the smaller-scale phase 2 of the trial and Kyprolis has still been approved for other uses - including advanced multiple myeloma - it didn't perform any better than Takeda Pharmaceutical's Velcade, which is the current go-to therapy.
Current and would-be investors can take heart, however. AMGN is still buy-worthy.
Kyprolis Misses the Mark
Kyprolis wasn't developed by Amgen. Rather, Amgen acquired Kyprolis in 2013 via the acquisition of Onyx Pharmaceuticals for $10.4 billion. At the time, the drug had only been approved for the treatment of advanced multiple myeloma, but hopes were high.
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Indeed, some were suggesting Kyprolis could be capable of driving as much as $3 billion in revenue, if it was approved for other indications.
Since then, Amgen has won approval of Kyprolis as part of a combination therapy for relapsed multiple myeloma and as part of a combination treatment of refractory multiple myeloma, allowing Amgen to carve out a little more of the $8 billion-or-so multiple myeloma market . With this failure, however, owners of AMGN stock may be wondering if their hopes were misplaced.
The setback couldn't have come at a worse time for Amgen shares, either.
Although AMGN performed heroically between 2012 and 2014, as of 2015 it hit a wall around $176; it struggled to move above that ceiling despite several attempts. Sales and earnings have continued to grow, but the stock has been plagued by more question then answers.
The future of Kyprolis was one of those questions, though hardly the only one. There's also the not-so-small matter of biosimilars. Even as Amgen was fighting to prevent Novartis AG (ADR) (NYSE: NVS ) from introducing a biosimilar version of Amgen's blockbuster drug Enbrel, Amgen was looking to introduce its own biosimilar version of Humira , from AbbVie Inc (NYSE: ABBV ).
It's just a microcosm of the much bigger advent of biosimilars, but as it turns out, that advent has been less dramatic than presumed. Investors were just getting ready to rekindle the bigger AMGN rally when Kyprolis reprised those doubts. AMGN stock is once again peeling back from a proven ceiling.
3 Reasons Not to Lose Faith in Amgen
While frustrating to the Amgen faithful, this setback for the stock may end up being nothing more than temporary. Though a high-profile miss, Amgen is still so much more than Kyprolis. Three bullish realities are still intact.
Amgen's Pipeline Remains Impressive
While Kyprolis may not be the best fit as a treatment of advanced multiple myeloma, it still holds promise for other slivers of the blood cancer market. Even if Kyprolis wasn't part of the pipeline though, Amgen's still got eleven other phase 3 trials underway. One of those treatments, cholesterol drug Repatha, just met its Phase-3 goals .
It's also got six biosimilars in the works, arguably making it one of the best-positioned names to make waves in that budding market.
Amgen Is Still a Growth Machine
Even with an alternative to Enbrel now on the market (Enbrel drove $5.3 billion worth of revenue in 2015), Amgen is into its seventh straight year of revenue growth and fifth straight year of income growth. A company doesn't show that kind of consistency without a Plan A, Plan B and Plan C, each of which is impressive on its own.
Still in a Technical Uptrend
While the knee-jerk reaction from AMGN stock to the news was a bearish one, by biopharma standards, that's not much; Amgen shares have lost more ground on less news. The bigger uptrend remains intact. In fact, we're moving into a bullish time of year that could help carry Amgen stock higher all the same.
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On average, between mid-October and the end of the year, biotech stocks gain nearly 8%. The couple of weeks between now and mid-October tend to be weak, but not enough to merit an exit than a re-entry a few days from now.
Bottom Line for AMGN Stock
Nobody wants to see one of their stock picks in the red. But, Kyprolis as a treatment for advanced multiple myeloma wasn't a game-changer either way. Once the failure is forgotten in a few days, the focus is going to turn back on Amgen's strengths, pipeline and growth trend.
There's no reason to panic - or sell - here.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post 3 Reasons Not to Lose Faith in Amgen, Inc. (AMGN) 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. | Even as Amgen was fighting to prevent Novartis AG (ADR) (NYSE: NVS ) from introducing a biosimilar version of Amgen's blockbuster drug Enbrel, Amgen was looking to introduce its own biosimilar version of Humira , from AbbVie Inc (NYSE: ABBV ). The news in question was the announcement that a highly ballyhooed Kyprolis failed to show meaningful efficacy in a phase 3 trial as a first-line treatment for multiple myeloma. While the drug showed promise in the smaller-scale phase 2 of the trial and Kyprolis has still been approved for other uses - including advanced multiple myeloma - it didn't perform any better than Takeda Pharmaceutical's Velcade, which is the current go-to therapy. | Even as Amgen was fighting to prevent Novartis AG (ADR) (NYSE: NVS ) from introducing a biosimilar version of Amgen's blockbuster drug Enbrel, Amgen was looking to introduce its own biosimilar version of Humira , from AbbVie Inc (NYSE: ABBV ). InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ugh. Since then, Amgen has won approval of Kyprolis as part of a combination therapy for relapsed multiple myeloma and as part of a combination treatment of refractory multiple myeloma, allowing Amgen to carve out a little more of the $8 billion-or-so multiple myeloma market . | Even as Amgen was fighting to prevent Novartis AG (ADR) (NYSE: NVS ) from introducing a biosimilar version of Amgen's blockbuster drug Enbrel, Amgen was looking to introduce its own biosimilar version of Humira , from AbbVie Inc (NYSE: ABBV ). Since then, Amgen has won approval of Kyprolis as part of a combination therapy for relapsed multiple myeloma and as part of a combination treatment of refractory multiple myeloma, allowing Amgen to carve out a little more of the $8 billion-or-so multiple myeloma market . More From InvestorPlace 7 High-Dividend Stocks to Buy ASAP 8 Dividend Stocks That Make the Grade The post 3 Reasons Not to Lose Faith in Amgen, Inc. (AMGN) appeared first on InvestorPlace . | Even as Amgen was fighting to prevent Novartis AG (ADR) (NYSE: NVS ) from introducing a biosimilar version of Amgen's blockbuster drug Enbrel, Amgen was looking to introduce its own biosimilar version of Humira , from AbbVie Inc (NYSE: ABBV ). While the drug showed promise in the smaller-scale phase 2 of the trial and Kyprolis has still been approved for other uses - including advanced multiple myeloma - it didn't perform any better than Takeda Pharmaceutical's Velcade, which is the current go-to therapy. At the time, the drug had only been approved for the treatment of advanced multiple myeloma, but hopes were high. |
26437.0 | 2016-09-28 00:00:00 UTC | Better Buy: Johnson & Johnson vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy-johnson-johnson-vs-abbvie-2016-09-28 | nan | nan | Image source: Getty Images.
Keeping the world healthy takes a huge amount of effort, and many of the largest companies on the planet have made it their mission to make people healthier and make money in the process. Two leaders in the industry are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , and both have done a good job of generating profits for investors. AbbVie is slightly more focused on the pharmaceutical side of healthcare while Johnson & Johnson has a broader set of products that encompasses over-the-counter products as well as a highly specialized medical device business. Yet after strong stock performance from both, curious investors want to know which makes more sense to add to portfolios now. Let's compare Johnson & Johnson and AbbVie on a number of metrics to see which looks more attractive right now.
Valuation and stock performance
Both Johnson & Johnson and AbbVie have seen their stocks rise over the past year. But J&J has climbed much faster, jumping by more than a third since last September. That compares to a quite respectable but still inferior 21% gain for AbbVie over the same 12-month time period.
When looking at valuations, the fact that Johnson & Johnson has climbed more quickly than AbbVie shows up in their relative price tags. Focusing on earnings over the past year, Johnson & Johnson trades at a trailing earnings multiple of 22. That compares to less than 19 for AbbVie, making the smaller company the more attractive. A similar result happens when you incorporate future earnings expectations into the picture. J&J's forward multiple is 16.5, which is just three-quarters of its trailing earnings multiple. But AbbVie carries a forward multiple of just over 11. Based solely on valuation, AbbVie gets the nod over Johnson & Johnson based on these simple measures.
Dividends
For dividend investors, both Johnson & Johnson and AbbVie have good track records and are attractive to income investors. AbbVie has the better yield right now, weighing in at 3.5% dividend yield. Johnson & Johnson pays a 2.7% yield. Interestingly, both companies have payout ratios in the neighborhood of 60%, indicating that AbbVie has the stronger earnings power to back up its higher dividend yield. That's consistent with expectations for higher earnings in the near future.
Both companies have also made sizable dividend increases. AbbVie paid a nearly 12% increase in its dividend in early 2016, and Johnson & Johnson gave investors a 7% raise. By doing so, Johnson & Johnson lengthened its streak of consecutive dividend increases to 54 straight years. AbbVie has only been around for a few years, but former parent Abbott Labs (NYSE: ABT) had a similar 43-year streak of dividend increases if you adjust for the AbbVie spinoff. In terms of dividend growth, both AbbVie and Johnson & Johnson have strong credibility in sharing their successes with shareholders. The two companies are quite close to each other, with AbbVie getting the nod for a slightly higher yield even with J&J's lengthier streak of annual boosts.
Growth prospects and risk
Johnson & Johnson and AbbVie have worked hard to find success in what has become an increasingly cutthroat industry. For Johnson & Johnson, the pharmaceutical division has emerged as the high-growth producer, doubling the growth rate of the entire company. Several blockbuster drugs have allowed J&J to offset the threat of patent cliffs on the pharma business' overall revenue. For the most part, Johnson & Johnson has looked to develop its business internally, avoiding the high-profile acquisitions that some of its rivals have pursued. Steady growth prospects give J&J the blue-chip reputation it has earned from countless investors. Yet some worry about the downward pressure that the medical device business has had on the company overall, holding back the faster-growing pharma division.
On the other hand, AbbVie has had to prove that it has a future beyond its best-known blockbuster. For years, AbbVie's success has centered on Humira, the anti-inflammatory treatment that has driven the bulk of its sales. AbbVie's main patents on Humira are slated to start expiring toward the end of this year, and thus far, efforts to find a replacement for potential lost revenue from the drug have been mixed at best. AbbVie spent $21 billion to acquire Pharmacyclics and its 50% share of profits from cancer treatment Imbruvica, with J&J owning the other half. Despite its purer-play status, AbbVie has a lot more uncertainty than Johnson & Johnson, justifying its cheaper valuation.
Overall, Johnson & Johnson and AbbVie offer different propositions to investors. Johnson & Johnson's longer dividend history, more secure pipeline, and diversification make it a good blue-chip choice for investors. AbbVie is less expensive but carries risks, and the company will have to overcome those risks in order to prove that its stock was indeed a true bargain at current levels.
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. 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 .
Dan Caplinger 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. | Interestingly, both companies have payout ratios in the neighborhood of 60%, indicating that AbbVie has the stronger earnings power to back up its higher dividend yield. AbbVie's main patents on Humira are slated to start expiring toward the end of this year, and thus far, efforts to find a replacement for potential lost revenue from the drug have been mixed at best. Two leaders in the industry are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , and both have done a good job of generating profits for investors. | Valuation and stock performance Both Johnson & Johnson and AbbVie have seen their stocks rise over the past year. In terms of dividend growth, both AbbVie and Johnson & Johnson have strong credibility in sharing their successes with shareholders. Two leaders in the industry are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , and both have done a good job of generating profits for investors. | Valuation and stock performance Both Johnson & Johnson and AbbVie have seen their stocks rise over the past year. Dividends For dividend investors, both Johnson & Johnson and AbbVie have good track records and are attractive to income investors. AbbVie paid a nearly 12% increase in its dividend in early 2016, and Johnson & Johnson gave investors a 7% raise. | Valuation and stock performance Both Johnson & Johnson and AbbVie have seen their stocks rise over the past year. Two leaders in the industry are Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) , and both have done a good job of generating profits for investors. AbbVie is slightly more focused on the pharmaceutical side of healthcare while Johnson & Johnson has a broader set of products that encompasses over-the-counter products as well as a highly specialized medical device business. |
26438.0 | 2016-09-28 00:00:00 UTC | Bristol-Myers, Nektar Tie-Up for Opdivo/NKTR-214 Combo | ABBV | https://www.nasdaq.com/articles/bristol-myers-nektar-tie-up-for-opdivo-nktr-214-combo-2016-09-28 | nan | nan | Bristol-Myers Squibb CompanyBMY announced a clinical collaboration agreement with Nektar Therapeutics NKTR under which Bristol-Myers' Opdivo will be evaluated in combination with Nektar's NKTR-214 across five tumor types and seven potential indications.
The collaboration will include phase I/II studies to assess the Opdivo/NKTR-214 combination to demonstrate improved and sustained efficacy and tolerability above the current standard of care in melanoma, kidney, colorectal, bladder and non-small cell lung cancer patients. Initial dose-escalation study on the combination is in progress.
Both companies will share costs of the combination studies equally, while Nektar will retain global commercial rights to NKTR-214.
Opdivo is a PD-1 immune checkpoint inhibitor while NKTR-214 is a CD122-biased agonist. The two different and complementary mechanisms, which comprise the combination regimen, could provide new treatment options for cancer patients.
BRISTOL-MYERS Price
BRISTOL-MYERS Price | BRISTOL-MYERS Quote
We are positive on this deal. Bristol-Myers is collaborating with several other companies for the evaluation of Opdivo in combination with their cancer treatments. This July, Bristol-Myers signed up with AbbVie Inc. ABBV to study Opdivo in combination with AbbVie's Rova-T, for the treatment of relapsed extensive-stage small cell lung cancer.
We note that Opdivo generated worldwide revenues of $1.5 billion in the first half of 2016. Label expansion into additional indications would increase the commercial potential of the drug significantly.
With this deal, Nektar is also gaining a strong partner in the form of Bristol-Myers, a company with expertise in the field of immuno-oncology. Further, Nektar could expedite the development of NKTR-214, which is currently in a phase I/II study, in patients with solid tumors.
While Bristol-Myers is a Zacks Rank #3 (Hold) stock, Nektar carries a Zacks Rank #4 (Sell).
A Stock to Consider
A better-ranked stock in the health care sector is Anika Therapeutics Inc. ANIK , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
For 2016, Anika witnessed a 12.6% increase in its earnings estimates over the past 60 days. It has recorded an average positive earnings surprise of 42.19% over the last four trailing quarters. The company's shares have jumped 22.1% 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. | This July, Bristol-Myers signed up with AbbVie Inc. ABBV to study Opdivo in combination with AbbVie's Rova-T, for the treatment of relapsed extensive-stage small cell lung cancer. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report NEKTAR THERAP (NKTR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The collaboration will include phase I/II studies to assess the Opdivo/NKTR-214 combination to demonstrate improved and sustained efficacy and tolerability above the current standard of care in melanoma, kidney, colorectal, bladder and non-small cell lung cancer patients. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report NEKTAR THERAP (NKTR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. This July, Bristol-Myers signed up with AbbVie Inc. ABBV to study Opdivo in combination with AbbVie's Rova-T, for the treatment of relapsed extensive-stage small cell lung cancer. Bristol-Myers Squibb CompanyBMY announced a clinical collaboration agreement with Nektar Therapeutics NKTR under which Bristol-Myers' Opdivo will be evaluated in combination with Nektar's NKTR-214 across five tumor types and seven potential indications. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report NEKTAR THERAP (NKTR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. This July, Bristol-Myers signed up with AbbVie Inc. ABBV to study Opdivo in combination with AbbVie's Rova-T, for the treatment of relapsed extensive-stage small cell lung cancer. Bristol-Myers Squibb CompanyBMY announced a clinical collaboration agreement with Nektar Therapeutics NKTR under which Bristol-Myers' Opdivo will be evaluated in combination with Nektar's NKTR-214 across five tumor types and seven potential indications. | This July, Bristol-Myers signed up with AbbVie Inc. ABBV to study Opdivo in combination with AbbVie's Rova-T, for the treatment of relapsed extensive-stage small cell lung cancer. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report NEKTAR THERAP (NKTR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Bristol-Myers is collaborating with several other companies for the evaluation of Opdivo in combination with their cancer treatments. |
26439.0 | 2016-09-27 00:00:00 UTC | AbbVie (ABBV) Files sNDA for Blood Cancer Drug Imbruvica | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-files-snda-for-blood-cancer-drug-imbruvica-2016-09-27 | nan | nan | AbbVie Inc. ABBV announced the submission of a supplemental New Drug Application (sNDA) for its blood cancer drug Imbruvica (ibrutinib) in the U.S.
AbbVie is looking for a label expansion of Imbruvica to include the treatment of marginal zone lymphoma (MZL). MZL is a slow-growing form of non-Hodgkin's lymphoma.
Imbruvica is currently approved in the U.S. for the treatment of patients with MCL or CLL 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. This is the fifth time that AbbVie has filed an sNDA for Imbruvica.
Pharmacyclics LLC, a subsidiary of AbbVie, markets Imbruvica under a partnership with Johnson & Johnson's JNJ Janssen Biotech, Inc.
The sNDA was based on data from a multi-center, open-label phase II PCYC-1121-CA trial assessing Imbruvica as a single-agent treatment for MZL. The study enrolled 63 previously treated patients with MZL. Patients were received once-daily oral administration of ibrutinib alone. The primary endpoint of the overall response rate as assessed by an Independent Review Committee was met.
We remind investors that in Apr 2013, the FDA had granted Breakthrough Therapy designation to ibrutinib for the treatment of CLL/small lymphocytic lymphoma patients, with a deletion of chromosome 17p. Earlier this year, the regulatory agency granted Breakthrough Therapy designation to ibrutinib for the treatment of mantle cell lymphoma patients as monotherapy. The FDA granted also granted Breakthrough Therapy status to the candidate for the treatment of patients suffering from Waldenström's macroglobulinemia as monotherapy. We expect investor focus to remain on the further development of ibrutinib.
AbbVie expects Imbruvica peak sales of over $7 billion and revenues of about $5 billion in 2020. We believe Imbruvica has multi-billion dollar potential and AbbVie is working on expanding Imbruvica's label to include solid tumors and autoimmune diseases. The company sees Imbruvica as a "pipeline in a molecule" given that the treatment is presently in several company-sponsored studies. A registrational study for graft-versus-host disease is underway, with data expected later this year or early 2017.
We remind investors that Imbruvica was added to AbbVie's portfolio following its Pharmacyclics acquisition in May 2015.
ABBVIE INC Price
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Zacks Rank & Key Picks
AbbVie currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Anika Therapeutics Inc. ANIK and ANI Pharmaceuticals, Inc. ANIP . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Anika Therapeutics' earnings estimates for 2016 and 2017 were up a respective 12.6% and 14% over the last 60 days. The company has recorded a positive earnings surprise in each of the last four quarters with an average beat of 42.19%. Its share price has jumped 20.3% year to date.
ANI Pharmaceuticals witnessed an increase of 9.5% and 4.7% in its earnings estimates for 2016 and 2017, respectively, over the last 60 days. It has beaten earnings estimates twice in the last four quarters, bringing the average positive surprise to 46.85%. The company's share price has surged 48.3% 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 the submission of a supplemental New Drug Application (sNDA) for its blood cancer drug Imbruvica (ibrutinib) in the U.S. AbbVie is looking for a label expansion of Imbruvica to include the treatment of marginal zone lymphoma (MZL). This is the fifth time that AbbVie has filed an sNDA for Imbruvica. Pharmacyclics LLC, a subsidiary of AbbVie, markets Imbruvica under a partnership with Johnson & Johnson's JNJ Janssen Biotech, Inc. | 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 JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV announced the submission of a supplemental New Drug Application (sNDA) for its blood cancer drug Imbruvica (ibrutinib) in the U.S. AbbVie is looking for a label expansion of Imbruvica to include the treatment of marginal zone lymphoma (MZL). | AbbVie Inc. ABBV announced the submission of a supplemental New Drug Application (sNDA) for its blood cancer drug Imbruvica (ibrutinib) in the U.S. AbbVie is looking for a label expansion of Imbruvica to include the treatment of marginal zone lymphoma (MZL). 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 JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. | ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc. ABBV announced the submission of a supplemental New Drug Application (sNDA) for its blood cancer drug Imbruvica (ibrutinib) in the U.S. AbbVie is looking for a label expansion of Imbruvica to include the treatment of marginal zone lymphoma (MZL). This is the fifth time that AbbVie has filed an sNDA for Imbruvica. |
26440.0 | 2016-09-27 00:00:00 UTC | 3 Critical FDA Decisions You Can't Afford to Miss | ABBV | https://www.nasdaq.com/articles/3-critical-fda-decisions-you-cant-afford-miss-2016-09-27 | nan | nan | Image source: Getty Images.
1. Orkambi's sNDA for cystic fibrosis in children aged six to 11
The supplemental new drug application (sNDA) for Vertex Pharmaceuticals '(NASDAQ: VRTX) cystic fibrosis drug Orkambi will be reviewed by the FDA on or before Sept. 30. Orkambi targets CF patients with two copies of the F508del mutation. This sNDA review couldn't come at a better time for Vertex: A little over a week ago, Vertex's shares came under pressure after management noted that Orkambi, which costs $259,000 a year, had fewer refills than expected in recent months.
If the FDA approves this sNDA, it will expand use of Vertex's next-generation CF medicine in children between the ages of six and 11, and it could reinvigorate sales of Vertex's lead drug. When Orkambi was approved in 2015, the eligible patient pool in the U.S. was estimated at 27,000. Vertex anticipates that expanding Orkambi's label to include 6- to 11-year-olds in the U.S. would add another 2,400 eligible patients.
The data backing Vertex's sNDA was presented on June 10, 2016, at the European Cystic Fibrosis Society Conference. The open-label phase 3 study evaluated Orkambi in 58 children with CF between the ages of six and 11 with two copies of the F508del mutation and was found to have met its primary safety endpoint after patients received two doses of therapy for 24 weeks. Multiple secondary endpoints also demonstrated signs of improvement, including an absolute improvement in FEV1 of 2.5 percentage points (FEV1, a measure of "forced expiratory volume" within the first second of exhalation, gauges lung function), as well as weight gain, to name a few positives.
Though there's no such thing as certainty when it comes to the FDA, I'd opine that an approval seems likely, considering that Orkambi met its primary safety endpoint and is already an established therapy on pharmacy shelves. All that said, Orkambi should be on track to cross $1 billion in total sales this year.
Image source: Getty Images.
2. Tecentriq's biologic license application (BLA) for advanced non-small cell lung cancer with PD-L1 expression
Arguably the biggest FDA decision in October could revolve around Roche 's(NASDAQOTH: RHHBY) cancer immunotherapy Tecentriq, which was approved for the first time in May as a treatment for the most common type of bladder cancer. Cancer immunotherapies are a new type of cancer-fighting drug that work to remove the immunosuppressant quality of cancer cells and supercharge a patients' immune system to more effectively fight cancer.
On or before Oct. 19, the FDA will decide whether or not to approve Tecentriq as a treatment for advanced non-small cell lung cancer (NSCLC) in patients whose tumors express PD-L1. As noted by Sandra Horning, head of global product development at Roche, "In a study of atezolizumab [the scientific name for Tecentriq] in people with previous treated advanced lung cancer, PD-L1 expression correlated with how well they responded to the medicine."
The data the FDA will be using to make its determination primarily comes from the midstage, open-label BIRCH trial. In mid-August of 2015, Roche announced that Tecentriq met its primary endpoint of the study, which was determined by objective response rate (i.e., tumor shrinkage). A month later, in September 2015, Roche released the specifics of that data, including a 27% objective response rate in advanced NSCLC patients with high levels of PD-L1 expression. Lastly, in June 2016, Roche announced an overall survival benefit of 12.6 months in its updated analysis, as well as a median duration of response of 18.6 months.
This data appears to suggest that Roche's immunotherapy will get the green light from the FDA in October. If Tecentriq nabs the highly coveted advanced NSCLC indication, it could continue its march toward $2 billion to $3 billion in peak annual sales.
Image source: Getty Images.
3. Sarilumab's BLA for moderate to severe rheumatoid arthritis
Lastly, on Oct. 30, 2016, the FDA will decide whether to approve Regeneron Pharmaceuticals (NASDAQ: REGN) and Sanofi 's(NYSE: SNY) sarilumab, an injectable treatment for patients with moderate to severe rheumatoid arthritis.
What makes sarilumab, an antibody receptor for interleukin-6, such an attractive therapeutic candidate is the fact that its phase 3 SARIL-RA-MONARCH study demonstrated superiority to AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world, after 24 weeks. The primary endpoint was a change from baseline in DAS28-ESR, a measure of disease activity. Sarilumab demonstrated a 3.25-point reduction, compared to a 2.22-point reduction for Humira. A number of secondary endpoints were also met, and sarilumab boasted a 20% improvement in the American College of Rheumatology criteria over Humira. Safety data was also similar between the two therapies.
Both Regeneron and Sanofi have a number of exciting therapies they've developed and brought to market, and sarilumab looks to be no different: The injectable rheumatoid arthritis drug has potential for more than $1 billion in peak annual sales. Based on the SARIL-RA-MONARCH study, an approval seems more likely than a rejection at this point.
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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 and Vertex 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. | What makes sarilumab, an antibody receptor for interleukin-6, such an attractive therapeutic candidate is the fact that its phase 3 SARIL-RA-MONARCH study demonstrated superiority to AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world, after 24 weeks. The open-label phase 3 study evaluated Orkambi in 58 children with CF between the ages of six and 11 with two copies of the F508del mutation and was found to have met its primary safety endpoint after patients received two doses of therapy for 24 weeks. As noted by Sandra Horning, head of global product development at Roche, "In a study of atezolizumab [the scientific name for Tecentriq] in people with previous treated advanced lung cancer, PD-L1 expression correlated with how well they responded to the medicine." | What makes sarilumab, an antibody receptor for interleukin-6, such an attractive therapeutic candidate is the fact that its phase 3 SARIL-RA-MONARCH study demonstrated superiority to AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world, after 24 weeks. Tecentriq's biologic license application (BLA) for advanced non-small cell lung cancer with PD-L1 expression Arguably the biggest FDA decision in October could revolve around Roche 's(NASDAQOTH: RHHBY) cancer immunotherapy Tecentriq, which was approved for the first time in May as a treatment for the most common type of bladder cancer. On or before Oct. 19, the FDA will decide whether or not to approve Tecentriq as a treatment for advanced non-small cell lung cancer (NSCLC) in patients whose tumors express PD-L1. | What makes sarilumab, an antibody receptor for interleukin-6, such an attractive therapeutic candidate is the fact that its phase 3 SARIL-RA-MONARCH study demonstrated superiority to AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world, after 24 weeks. Orkambi's sNDA for cystic fibrosis in children aged six to 11 The supplemental new drug application (sNDA) for Vertex Pharmaceuticals '(NASDAQ: VRTX) cystic fibrosis drug Orkambi will be reviewed by the FDA on or before Sept. 30. Tecentriq's biologic license application (BLA) for advanced non-small cell lung cancer with PD-L1 expression Arguably the biggest FDA decision in October could revolve around Roche 's(NASDAQOTH: RHHBY) cancer immunotherapy Tecentriq, which was approved for the first time in May as a treatment for the most common type of bladder cancer. | What makes sarilumab, an antibody receptor for interleukin-6, such an attractive therapeutic candidate is the fact that its phase 3 SARIL-RA-MONARCH study demonstrated superiority to AbbVie 's(NYSE: ABBV) Humira, the best-selling drug in the world, after 24 weeks. The open-label phase 3 study evaluated Orkambi in 58 children with CF between the ages of six and 11 with two copies of the F508del mutation and was found to have met its primary safety endpoint after patients received two doses of therapy for 24 weeks. On or before Oct. 19, the FDA will decide whether or not to approve Tecentriq as a treatment for advanced non-small cell lung cancer (NSCLC) in patients whose tumors express PD-L1. |
26441.0 | 2016-09-26 00:00:00 UTC | AbbVie (ABBV) HCV Combination Drug Positive in Phase IIIb | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-hcv-combination-drug-positive-in-phase-iiib-2016-09-26 | nan | nan | AbbVie Inc.ABBV announced positive results from the phase IIIb study, Garnet, on a combination of its hepatitis drugs Viekirax (ombitasvir/paritaprevir/ritonavir tablets) and Exviera (dasabuvir tablets) for the treatment of patients with chronic hepatitis C virus (HCV) infection without liver cirrhosis.
Garnet is a phase IIIb, multicenter, open-label, single-arm study. It was designed to investigate the safety and efficacy of a combination of Viekirax and Exviera without ribavirin. The study enrolled 166 patients across 20 sites in the world, with 163 patients suffering from a GT1b chronic HCV infection without cirrhosis. The study met its primary endpoint with 98% of patients achieving a sustained virologic response at 12 weeks after treatment. In fact, the study showed high response rates within just eight weeks of treatment with the combination medicine.
The data were presented at the 2016 EASL Special Conference, New Perspectives in Hepatitis C Virus Infection in Paris, France.
Adverse events reported in the study were mostly mild, with one patient discontinuing treatment.
AbbVie's leading HCV treatment, Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin, was approved by the FDA in Dec 2014. In Jan 2015, a combination of Viekirax and Exviera was approved in Europe for the treatment of genotype 1 (GT1) chronic HCV infection. Viekirax is also approved in Europe for the treatment of chronic HCV genotype 4 (GT4) infections.
Genotype 1 is the most prevalent of the six major HCV genotypes. Around 160 million people worldwide are infected with HCV, with genotype 1 accounting for approximately 51.8% of the total HCV infected patients. The approval, thus, gave the company access to a huge potential patient population.
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 health care sector include Anika Therapeutics Inc ANIK , ANI Pharmaceuticals, Inc. ANIP and Abbott Laboratories ABT .
Anika Therapeutics' earnings estimates for 2016 and 2017 were up a respective 12.6% and 14% over the last 60 days. The company has recorded a positive earnings surprise in each of the last four quarters with an average beat of 42.19%. Its share price has jumped 23.2% year to date. Anika Therapeutics currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
ANI Pharmaceuticals has a Zacks Rank #1 as well. The company witnessed an increase of 9.5% and 4.7% in its earnings estimates for 2016 and 2017, respectively, in the last 60 days. It has beaten earnings estimates twice in the last four quarters, bringing the average positive surprise to 46.85%. The company's share price has surged 51.2% year to date.
Abbott Laboratories carries a Zacks Rank #2 (Buy). Over the past 60 days, the company's earnings estimates for 2016 and 2017 were mostly unchanged. It has delivered a positive earnings surprise in all of the four quarters, resulting in an average beat of 3.11%. Share price of the company have dipped 1.7% 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's leading HCV treatment, Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin, was approved by the FDA in Dec 2014. AbbVie Inc.ABBV announced positive results from the phase IIIb study, Garnet, on a combination of its hepatitis drugs Viekirax (ombitasvir/paritaprevir/ritonavir tablets) and Exviera (dasabuvir tablets) for the treatment of patients with chronic hepatitis C virus (HCV) infection without liver cirrhosis. 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 positive results from the phase IIIb study, Garnet, on a combination of its hepatitis drugs Viekirax (ombitasvir/paritaprevir/ritonavir tablets) and Exviera (dasabuvir tablets) for the treatment of patients with chronic hepatitis C virus (HCV) infection without liver cirrhosis. 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 ABBOTT LABS (ABT): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV announced positive results from the phase IIIb study, Garnet, on a combination of its hepatitis drugs Viekirax (ombitasvir/paritaprevir/ritonavir tablets) and Exviera (dasabuvir tablets) for the treatment of patients with chronic hepatitis C virus (HCV) infection without liver cirrhosis. 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 ABBOTT LABS (ABT): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV announced positive results from the phase IIIb study, Garnet, on a combination of its hepatitis drugs Viekirax (ombitasvir/paritaprevir/ritonavir tablets) and Exviera (dasabuvir tablets) for the treatment of patients with chronic hepatitis C virus (HCV) infection without liver cirrhosis. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Zacks Rank & Key Picks AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie's leading HCV treatment, Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin, was approved by the FDA in Dec 2014. |
26442.0 | 2016-09-26 00:00:00 UTC | Amgen's Biosimilar of Abbvie's Humira Gets FDA Approval | ABBV | https://www.nasdaq.com/articles/amgens-biosimilar-of-abbvies-humira-gets-fda-approval-2016-09-26 | nan | nan | Amgen, Inc.AMGN today announced the approval of Amjevita (adalimumab-atto), a biosimilar version to AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira.
Amjevita has been approved for the same indications that Humira is being used for - including rheumatoid arthritis (RA), juvenile idiopathic arthritis (JIA), psoriatic arthritis (PsA), ankylosing spondylitis (AS), adult Crohn's disease (CD), ulcerative colitis (UC), plaque psoriasis (PsO) - all in specific patient populations. The U.S. sales of Humira were about $8.4 billion in 2015.
We remind investors that in July, the FDA's Arthritis Advisory Committee voted in favor of an approval of Amjevita.
The approval of Amjevita is based on positive data from two phase III studies comparing the safety, efficacy and immunogenicity of Amjevita with Humira in patients with moderate-to-severe RA and moderate-to-severe plaque psoriasis. The studies met their primary endpoints.
Amjevita is the first biosimilar version of Humira to be approved by the FDA as well as Amgen's first biosimilar medicine to be approved.
AMGEN INC Price
AMGEN INC Price | AMGEN INC Quote
Amgen is exploring the world of biosimilars and expects to launch five such new products between 2017 and 2019. The biosimilars opportunity represents annual revenues of more than $3 billion for Amgen. The company also has a partnership with Allergan, Inc. AGN for the worldwide development and commercialization of oncology antibody biosimilar medicines.
Other than Amjevita, other candidates being developed include biosimilar versions of Roche's Avastin (ABP 215), Herceptin (ABP 980; breast cancer) and Rituxan (ABP 798), Eli Lilly and Company's LLY Erbitux (ABP 494), and Johnson & Johnson/Merck's Remicade (ABP 710).
Amgen has also tied up with Daiichi Sankyo for the commercialization of nine biosimilars in Japan, including biosimilars of Humira, Avastin and Herceptin.
The approval of Amjevita would be a huge boost for Amgen which itself is facing biosimilar threats for quite a few of its key drugs. Anemia drug Aranesp faces competition in Europe from biosimilars marketed by companies like Pfizer and Novartis. Biosimilars are also starting to have a negative impact on sales of its key products like Neupogen and Neulasta in the EU. In August this year, Novartis' generic arm, Sandoz received FDA approval for a biosimilar version of Amgen's blockbuster RA drug Enbrel.
Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amgen, Inc.AMGN today announced the approval of Amjevita (adalimumab-atto), a biosimilar version to AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira. Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. Click to get this free report LILLY ELI & CO (LLY): 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. | Amgen, Inc.AMGN today announced the approval of Amjevita (adalimumab-atto), a biosimilar version to AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira. Click to get this free report LILLY ELI & CO (LLY): 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. Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. | Amgen, Inc.AMGN today announced the approval of Amjevita (adalimumab-atto), a biosimilar version to AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira. Click to get this free report LILLY ELI & CO (LLY): 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. Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. | Amgen, Inc.AMGN today announced the approval of Amjevita (adalimumab-atto), a biosimilar version to AbbVie Inc.'s ABBV rheumatoid arthritis (RA) drug Humira. Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. Click to get this free report LILLY ELI & CO (LLY): 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. |
26443.0 | 2016-09-26 00:00:00 UTC | As Humira Alternative Gets FDA Approval, Is Abbvie in Trouble? | ABBV | https://www.nasdaq.com/articles/humira-alternative-gets-fda-approval-abbvie-trouble-2016-09-26 | nan | nan | On Friday, the FDA gave market approval to a Humira (adalimumab) alternative called Amjevita (adalimumab-atto). Amjevita is one of nine programs in Amgen's AMGN pipeline of biosimilar drugs. Biosimilars are a relatively new frontier in the biotech space, and Amjevita is just the fourth one to receive FDA approval.
Biosimilars are not the same as interchangeable products such as generic drugs. Rather, a biosimilar is a biological product that gets approved if it is shown to be highly similar to an already-approved product. This means that there should not be meaningful differences in clinical studies that measure the drug's safety, purity, and potency.
Humira vs. Amjevita
In the years following Humira's approval in 2002, the FDA has expanded the number of conditions that it can be used to treat. Now that Amjevita has been given the green light by the FDA, it can be used for most of the conditions which Humira treats. Amjevita is approved to treat multiple conditions afflicting adults, such as moderate to severely active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, moderate to severely active Crohn's disease, moderate to severely active ulcerative colitis, and moderate to severe plaque psoriasis. Amjevita is also approved to treat moderately to severely active polyarticular juvenile idiopathic arthritis in patients who are four years of age and older.
Is Abbvie ABBV in Trouble?
Biosimilars are supposed to cost less than the original product which they are based off of, but there is no clear indication of how much Amjevita will cost when it is launched. On the other hand, Humira often costs about $2000 per month. Amjevita is expected to be a cheaper option than Humira, so Abbvie could see some of its dominant share in the arthritis market contract when Amgen's new drug is launched.
This could be a major concern for Abbvie, who saw Humira revenues account for over $14 billion of its total sales ($22.8 billion) in 2015. Humira is ABBV's top product, and revenues generated from the drug are close to ten times higher than any of the company's other products. In the first six months of fiscal 2016, Humira generated 62.3% of Abbvie's total sales. Since Friday's announcement of Amjevita's approval, Abbvie's stock has dropped by about 1.3%.
Bottom Line
Since a direct competitor is set to take on Humira in the future, Abbvie's long term cash flows will become more difficult to forecast. If you are invested in ABBV for the long run, you may want to reassess your position as more news comes out about when and how much Amjevita will cost.
Amgen looks poised to take advantage of the biosimilars market that has emerged in recent history. As mentioned earlier, the company has nine biosimilar programs in its pipeline. If you are looking to cap in on this technology which is meant to reduce drug costs for patients, then Amgen looks like a solid stock to bet on over the long run.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Amjevita is expected to be a cheaper option than Humira, so Abbvie could see some of its dominant share in the arthritis market contract when Amgen's new drug is launched. Bottom Line Since a direct competitor is set to take on Humira in the future, Abbvie's long term cash flows will become more difficult to forecast. Is Abbvie ABBV in Trouble? | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Is Abbvie ABBV in Trouble? Amjevita is expected to be a cheaper option than Humira, so Abbvie could see some of its dominant share in the arthritis market contract when Amgen's new drug is launched. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Is Abbvie ABBV in Trouble? Amjevita is expected to be a cheaper option than Humira, so Abbvie could see some of its dominant share in the arthritis market contract when Amgen's new drug is launched. | Humira is ABBV's top product, and revenues generated from the drug are close to ten times higher than any of the company's other products. Is Abbvie ABBV in Trouble? Amjevita is expected to be a cheaper option than Humira, so Abbvie could see some of its dominant share in the arthritis market contract when Amgen's new drug is launched. |
26444.0 | 2016-09-24 00:00:00 UTC | 3 Dirt-Cheap Dividend Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-dirt-cheap-dividend-stocks-you-can-buy-right-now-2016-09-24 | nan | nan | There aren't a whole lot of compelling bargains these days when it comes to income-generating stocks, but there are a select few flying under the radar at the moment. AbbVie (NYSE: ABBV) , Gilead Sciences (NASDAQ: GILD) , and Teva Pharmaceutical Industries (NYSE: TEVA) , for instance, are all trading at steep discounts relative to their peers. Here's a brief rundown of what makes these three dividend stocks cheap and why they might be worth buying right now.
Second, Teva has greatly diversified its revenue base by acquiring Allergan 's(NYSE: AGN) generic-drug unit this year, further reducing the risk of falling Copaxone sales. This deal is also expected to supercharge Teva's top line next year, with the company's sales forecast to rise by nearly 17% in 2017. Now, while it's true that this $40.5 billion transaction with Allergan hasn't been kind to Teva's balance sheet, the company's healthy growth trajectory should enable it to both pay off debt and maintain its shareholder rewards program going forward.
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George Budwell owns shares of Allergan. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on Gilead Sciences. The Motley Fool recommends 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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) , Gilead Sciences (NASDAQ: GILD) , and Teva Pharmaceutical Industries (NYSE: TEVA) , for instance, are all trading at steep discounts relative to their peers. There aren't a whole lot of compelling bargains these days when it comes to income-generating stocks, but there are a select few flying under the radar at the moment. Second, Teva has greatly diversified its revenue base by acquiring Allergan 's(NYSE: AGN) generic-drug unit this year, further reducing the risk of falling Copaxone sales. | AbbVie (NYSE: ABBV) , Gilead Sciences (NASDAQ: GILD) , and Teva Pharmaceutical Industries (NYSE: TEVA) , for instance, are all trading at steep discounts relative to their peers. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Teva Pharmaceutical Industries. | AbbVie (NYSE: ABBV) , Gilead Sciences (NASDAQ: GILD) , and Teva Pharmaceutical Industries (NYSE: TEVA) , for instance, are all trading at steep discounts relative to their peers. 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 Motley Fool owns shares of and recommends Gilead Sciences. | AbbVie (NYSE: ABBV) , Gilead Sciences (NASDAQ: GILD) , and Teva Pharmaceutical Industries (NYSE: TEVA) , for instance, are all trading at steep discounts relative to their peers. The Motley Fool owns shares of and recommends Gilead Sciences. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. |
26445.0 | 2016-09-23 00:00:00 UTC | Trade of the Day: AbbVie Inc. (NYSE:ABBV) | ABBV | https://www.nasdaq.com/articles/trade-of-the-day%3A-abbvie-inc.-nyse%3Aabbv-2016-09-23 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
To receive further updates on this AbbVie Inc. (NYSE: ABBV ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of SlingShot Trader today.
Today, we're opening a new bullish trade on AbbVie (ABBV). From a fundamental perspective, ABBV looks strong. The company has a great opportunity for growth with its new venture to develop and commercialize BioArctic's treatment platform for neurodegenerative diseases - like Parkinson's, Alzheimer's, ALS and others. With the aging of the baby-boom generation, this should be a growing profit center for the company. ABBV is also doing a nice job returning cash to shareholders via strong dividends (with a forward dividend yield of 3.58%) and a huge share-buyback program. Only Apple (AAPL), General Electric (GE) and Microsoft (MSFT) spent more on buybacks last quarter. These programs should continue to boost demand for the stock.
From a technical perspective, ABBV is bouncing up off both an up-trending support level and a horizontal support level at $63. This comes as the market is rallying following the more dovish than expected interest-rate hike expectations from the Federal Open Market Committee (FOMC). We expect the stock to climb back up to its recent highs around $67.50 in the weeks leading up to the company's earnings announcement on Oct. 28.
Buy to open' the ABBV November 67.50 Calls (ABBV161118C00067500).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this AbbVie Inc. (NYSE: ABBV ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of SlingShot Trader today. Today, we're opening a new bullish trade on AbbVie (ABBV). From a fundamental perspective, ABBV looks strong. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this AbbVie Inc. (NYSE: ABBV ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of SlingShot Trader today. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today, we're opening a new bullish trade on AbbVie (ABBV). | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this AbbVie Inc. (NYSE: ABBV ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of SlingShot Trader today. Today, we're opening a new bullish trade on AbbVie (ABBV). From a fundamental perspective, ABBV looks strong. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this AbbVie Inc. (NYSE: ABBV ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of SlingShot Trader today. Today, we're opening a new bullish trade on AbbVie (ABBV). From a fundamental perspective, ABBV looks strong. |
26446.0 | 2016-09-22 00:00:00 UTC | AbbVie Inc (ABBV) Has More Blockbusters on the Horizon | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-has-more-blockbusters-on-the-horizon-2016-09-22 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) is the maker of the world's No. 1 selling prescription drug for 2014 and 2015 - Humira. In 2014, that one drug brought in $12 billion in revenue. In 2015, it hit $14 billion. ABBV stock has been enjoying good times off of this serious blockbuster.
What qualifies as a blockbuster? A drug that can hit the market and ring up $1 billion in sales in its first 12 to 18 months. And this is no arbitra ry metric.
If you can hit $1 billion in revenue the first year out, you're well on your way to paying for the upfront costs, and then some.
The problem is, big pharma relies on these blockbusters and they come with a hook - the patent cliff.
Future Blockbusters for ABBV Stock?
The patent cliff refers to the fact that these blockbusters come off patent eventually and other firms can begin making biosimilars and generic versions, which pretty much dry up the revenue for these cash cows.
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Fortunately for ABBV, in Humira's case, while the drug was supposed to come off patent next year, the company has won a number of ancillary patents that will keep the drug in AbbVie's portfolio until 2022.
But it still needs to keep the blockbuster train running. Its recent release of hepatitis C drug Viekira and cancer drug Imbruvica are both certainly welcome additions. Both are expected to be worth billions a year in revenue going forward.
And its recently announced collaboration with BioArctic on Parkinson's and similar nervous system disorders, shows that ABBV is doing what it takes to remain competitive in the big pharma world.
A move into neurodegenerative drugs has been in AbbVie's sights for a while. ABBV currently sells Duopa, which won FDA approval last year. It's used in the treatment of motor fluctuations in advanced Parkinson's disease. ABBV is also in Phase III for a next-generation version of Duopa.
BioArctic also develops new treatments for other diseases like Alzheimer's and spinal cord injury. This collaboration may be the first step in an acquisition of BioArtic if things go well. And if they go well, ABBV stock is going to have a full stable of thoroughbreds to back it up.
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When you have the top-selling drug in the world year after year, you have some time to enjoy the view from the top. But AbbVie shows no signs of slacking off. And that's very encouraging.
The stock is up 12.5% in the past 6 months and it's still throwing off a very respectable 3.6% dividend. Annual double-digit growth is more the rule than the exception for AbbVie and that should continue for a long time to come.
With that kind of dividend and that kind of drug pipeline, ABBV stock is a great long-term choice.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth , Emerging Growth, Ultimate Growth , Family Trust and Platinum Growth . His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com . Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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The post AbbVie Inc (ABBV) Has More Blockbusters on the Horizon 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. | And its recently announced collaboration with BioArctic on Parkinson's and similar nervous system disorders, shows that ABBV is doing what it takes to remain competitive in the big pharma world. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) is the maker of the world's No. ABBV stock has been enjoying good times off of this serious blockbuster. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) is the maker of the world's No. ABBV stock has been enjoying good times off of this serious blockbuster. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) is the maker of the world's No. The Top 10 S&P 500 Dividend Stocks to Buy Now Fortunately for ABBV, in Humira's case, while the drug was supposed to come off patent next year, the company has won a number of ancillary patents that will keep the drug in AbbVie's portfolio until 2022. More From InvestorPlace 10 Growth Stocks That Will Outrun Google The 7 Best Monthly Dividend Stocks to Buy Now The post AbbVie Inc (ABBV) Has More Blockbusters on the Horizon appeared first on InvestorPlace . | ABBV stock has been enjoying good times off of this serious blockbuster. Future Blockbusters for ABBV Stock? The Top 10 S&P 500 Dividend Stocks to Buy Now Fortunately for ABBV, in Humira's case, while the drug was supposed to come off patent next year, the company has won a number of ancillary patents that will keep the drug in AbbVie's portfolio until 2022. |
26447.0 | 2016-09-22 00:00:00 UTC | The Pros and Cons of Buying Gilead Sciences Stock | ABBV | https://www.nasdaq.com/articles/pros-and-cons-buying-gilead-sciences-stock-2016-09-22 | nan | nan | GILD PE Ratio (Forward) data by YCharts .
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Todd Campbell owns shares of 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 Express Scripts and Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on 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. | 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. Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this.The Motley Fool owns shares of and recommends Express Scripts and Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on Gilead Sciences. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this.The Motley Fool owns shares of and recommends Express Scripts and Gilead Sciences. | 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. Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this.The Motley Fool owns shares of and recommends Express Scripts and Gilead Sciences. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | GILD PE Ratio (Forward) data by YCharts . 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 Express Scripts and Gilead Sciences. |
26448.0 | 2016-09-22 00:00:00 UTC | 3 Top Dividend Stocks for Your Roth IRA | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-your-roth-ira-2016-09-22 | nan | nan | Years of testing and experience have proven that dividend investing is one of the surest paths to financial independence. Although it isn't as sexy as investing in the next Silicon Valley start-up, the constant compounding that reinvesting your dividends creates can work miracles over time.
When it comes time to stash your dividend payers in a retirement account, I highly suggest considering a Roth IRA. That's because you've already paid taxes on the money, and all future dividends, reinvestments, and disbursements are completely tax-free. That's a big deal if you are a dedicated, buy-to-hold income investor.
With that in mind, here is why I think you should consider buying shares of conglomerate 3M (NYSE: MMM) , soda and snack-maker Pepsi (NYSE: PEP) , and pharma giant AbbVie (NYSE: ABBV) .
A history of dividend payments and increases
To make the list of official Dividend Aristocrats, a company needs to have:
Made dividend payments for at least 100 consecutive quarters (25 years)
Increased said payment at least once per year.
All three of the stocks on this list qualify on those metrics.
Data source: Dividendinvestor.com *Shows current growth rate since spin-out
You might be looking at AbbVie and wonder why it's included if it only has two years of dividend history. That's because the company was spun out of Abbot Labs -- a parent company that has increased its dividend for over 25 consecutive years.
The real key to focus on here is the rate at which these dividends have been growing. Imagine buying shares of 3M today. You get $4.44 per share, or a 2.5% dividend yield -- not bad, but nothing to write home about. However, if the dividend continues increasing by the same amount (14%) over the next decade, the yield on your original investment will be a whopping $16.46 per share -- or 9.1% -- per year.
If we do the same calculations with Pepsi and AbbVie, we get a dividend yield in 10 years of 6% and 27.9%. More than likely, AbbVie's growth will temper, but that doesn't change the fact that these have the potential to be massive returns on your original investment.
Enough free cash flow to make it happen
The most important metric for dividend investors to watch is the payout ratio from free cash flow (FCF). FCF is what the company brings in via operations during a year, minus any capital expenditures. It is from FCF that dividends are paid, so the lower the ratio, the better.
Create column charts
Data source: Yahoo! Finance
Over the past 12 months, none of these companies has come anywhere close to the "danger zone" of using over 90% of FCF to pay its dividend.
The bottom line, however, is that all three of these companies could continue paying their dividend in tough economic times, and will likely continue their increases if the macro economy can avoid a meltdown.
Wide moats
A "moat" is another way of saying that a company has a sustainable competitive advantage. Without moats, a company's products would become commoditized -- that's good for consumers, but generally not so good for investors.
3M is an industrial conglomerate with many irons in the fire. Your office likely has glue, tape, or Post-it notes from 3M. But the company also has operations in healthcare, manufacturing, electronics, and transportation. The company's brand names, economies of scale, and its cash stash of over $1.8 billion provide a substantial moat.
Pepsi, on the other hand, relies almost solely on the power of its brands for a moat. Those brands -- which include the namesake soda, Gatorade, Mountain Dew, Lays, Doritos, Fritos, Quaker Oats, and more -- are very powerful. They help Pepsi enjoy better margins than rivals, as the company can count on customers paying a few cents more for each of these products.
AbbVie, on the other hand, is in a bit more precarious position. As a pharmaceutical company, it relies on patents to protect its moat. Those patents, however, expire -- and when they do, sales can fall off a cliff. Humira has been one of its best sellers over the years, but investors need to make sure the company is still piling money back into research and development to ensure a pipeline of future blockbuster drugs. The company's $8 billion in cash also gives it options for acquiring up-and-coming drug compounds.
When you add these three characteristics together -- a history of dividend growth, low payout ratios from FCF, and wide moats -- you have a recipe for long-term investing success. Throw those dividends in a Roth IRA, and you're looking at tax-free growth that can help you retire very comfortably.
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. 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 .
Brian Stoffel 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. | With that in mind, here is why I think you should consider buying shares of conglomerate 3M (NYSE: MMM) , soda and snack-maker Pepsi (NYSE: PEP) , and pharma giant AbbVie (NYSE: ABBV) . Data source: Dividendinvestor.com *Shows current growth rate since spin-out You might be looking at AbbVie and wonder why it's included if it only has two years of dividend history. If we do the same calculations with Pepsi and AbbVie, we get a dividend yield in 10 years of 6% and 27.9%. | With that in mind, here is why I think you should consider buying shares of conglomerate 3M (NYSE: MMM) , soda and snack-maker Pepsi (NYSE: PEP) , and pharma giant AbbVie (NYSE: ABBV) . Data source: Dividendinvestor.com *Shows current growth rate since spin-out You might be looking at AbbVie and wonder why it's included if it only has two years of dividend history. If we do the same calculations with Pepsi and AbbVie, we get a dividend yield in 10 years of 6% and 27.9%. | With that in mind, here is why I think you should consider buying shares of conglomerate 3M (NYSE: MMM) , soda and snack-maker Pepsi (NYSE: PEP) , and pharma giant AbbVie (NYSE: ABBV) . Data source: Dividendinvestor.com *Shows current growth rate since spin-out You might be looking at AbbVie and wonder why it's included if it only has two years of dividend history. If we do the same calculations with Pepsi and AbbVie, we get a dividend yield in 10 years of 6% and 27.9%. | Data source: Dividendinvestor.com *Shows current growth rate since spin-out You might be looking at AbbVie and wonder why it's included if it only has two years of dividend history. If we do the same calculations with Pepsi and AbbVie, we get a dividend yield in 10 years of 6% and 27.9%. With that in mind, here is why I think you should consider buying shares of conglomerate 3M (NYSE: MMM) , soda and snack-maker Pepsi (NYSE: PEP) , and pharma giant AbbVie (NYSE: ABBV) . |
26449.0 | 2016-09-20 00:00:00 UTC | Here's Why Sarepta Therapeutics, Inc's Stock is Jumping Again | ABBV | https://www.nasdaq.com/articles/heres-why-sarepta-therapeutics-incs-stock-jumping-again-2016-09-20 | nan | nan | Image source: Getty Images
What happened
Investors in Sarepta Therapeutics (NASDAQ: SRPT) are having another great day. Shares of the rare-disease focused biotech are up more than 12% as of 11:50 a.m. EDT Tuesday in the wake of catching a handful of analyst upgrades.
So what
Wall Street was caught off guard on Monday after news broke that the FDA had granted accelerated approval of Sarepta's Duchenne muscular dystrophy (DMD) drug Exondys 51. In response, analysts having been tripping over themselves in the last 24 hours to upgrade the company's shares.
On Monday, at least three separate analysts raised their rating. The most dramatic change came from RBC Capital Markets. The investment firm upgraded its outlook to "outperform" and changed its price target to $83. That's far higher than its prior target of $5.
The good news kept rolling in on Tuesday, too. Needham reiterated its "buy" rating and raised its price target to $81. That's also substantially higher than its prior outlook of just $47.
When you combine the love pouring in from Wall Street with the company's extremely high short-ratio -- roughly 35% of Sarepta's shares have been sold short -- it's no surprise to see the company's stock moving higher.
Now what
Sarepta held a special conference call with investors on Monday evening to share more details about its commercialization plans. The company plans on selling Exondy's 51 in two different formats -- 2 mL and 10 mL -- and have announced a list price of $1,600 and $8,000, respectively, for each. That puts the annual cost of treatment at about $300,000 per patient, which is consistent with the pricing that PTC Therapeutics receives for the sale of its DMD drug Translarna in the E.U.
Management also stated on the call that they will be "exploring the sale" of the rare pediatric disease priority review voucher that they were awarded as part of the approval. Last year pharma giant AbbVie ponied up $350 million to get its hands on one of those vouchers, so this could be a significant source of non-dilutive funding for Sarepta.
Sarepta also stated that its team of national account managers will be opening up dialogues with payers to get the reimbursement process rolling. The company expects it to take 30 to 90 days for interested patients to receive coverage, which will create a small lag in the company's ability to recognize revenue.
All in all, there's a lot going on at Sarepta right now and new information is coming out every day. That hints that this company's stock is likely to remain volatile for the foreseeable future, so bulls and bears should plan accordingly.
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. 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 .
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. | Last year pharma giant AbbVie ponied up $350 million to get its hands on one of those vouchers, so this could be a significant source of non-dilutive funding for Sarepta. So what Wall Street was caught off guard on Monday after news broke that the FDA had granted accelerated approval of Sarepta's Duchenne muscular dystrophy (DMD) drug Exondys 51. That puts the annual cost of treatment at about $300,000 per patient, which is consistent with the pricing that PTC Therapeutics receives for the sale of its DMD drug Translarna in the E.U. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Last year pharma giant AbbVie ponied up $350 million to get its hands on one of those vouchers, so this could be a significant source of non-dilutive funding for Sarepta. Image source: Getty Images What happened Investors in Sarepta Therapeutics (NASDAQ: SRPT) are having another great day. | Last year pharma giant AbbVie ponied up $350 million to get its hands on one of those vouchers, so this could be a significant source of non-dilutive funding for Sarepta. When you combine the love pouring in from Wall Street with the company's extremely high short-ratio -- roughly 35% of Sarepta's shares have been sold short -- it's no surprise to see the company's stock moving higher. The company expects it to take 30 to 90 days for interested patients to receive coverage, which will create a small lag in the company's ability to recognize revenue. | Last year pharma giant AbbVie ponied up $350 million to get its hands on one of those vouchers, so this could be a significant source of non-dilutive funding for Sarepta. In response, analysts having been tripping over themselves in the last 24 hours to upgrade the company's shares. The investment firm upgraded its outlook to "outperform" and changed its price target to $83. |
26450.0 | 2016-09-19 00:00:00 UTC | Noteworthy ETF Outflows: XLV, MDT, GILD, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows-xlv-mdt-gild-abbv-2016-09-19 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $155.1 million dollar outflow -- that's a 1.2% decrease week over week (from 174,565,324 to 172,415,324). Among the largest underlying components of XLV, in trading today Medtronic PLC (Symbol: MDT) is up about 0.7%, Gilead Sciences, Inc. (Symbol: GILD) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is up by about 0.2%. 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 $72.28. 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 Medtronic PLC (Symbol: MDT) is up about 0.7%, Gilead Sciences, Inc. (Symbol: GILD) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $155.1 million dollar outflow -- that's a 1.2% decrease week over week (from 174,565,324 to 172,415,324). 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 Medtronic PLC (Symbol: MDT) is up about 0.7%, Gilead Sciences, Inc. (Symbol: GILD) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is up by about 0.2%. 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 $72.28. 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 Medtronic PLC (Symbol: MDT) is up about 0.7%, Gilead Sciences, Inc. (Symbol: GILD) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is up by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $155.1 million dollar outflow -- that's a 1.2% decrease week over week (from 174,565,324 to 172,415,324). 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 $72.28. | Among the largest underlying components of XLV, in trading today Medtronic PLC (Symbol: MDT) is up about 0.7%, Gilead Sciences, Inc. (Symbol: GILD) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is up by about 0.2%. 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 $72.28. 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). |
26451.0 | 2016-09-17 00:00:00 UTC | Is Marijuana Becoming Big Business? | ABBV | https://www.nasdaq.com/articles/marijuana-becoming-big-business-2016-09-17 | nan | nan | Whether you like or not, marijuana represents a growing opportunity for investors. Last year, the legal cannabis market grew by -7% to $5.4 billion. This year, growth estimates have expanded to -5% to reach $6.7 billion.
So far, four U.S. states and the District of Columbia have legalized the recreational use of cannabis. This is in addition to the -4 states that permit medical marijuana. Nine more states will vote on legalization this November (North Dakota was not able to garner enough signatures for the issue to be put on the ballot).
According to Bank of America's ( BAC ) Merrill Lynch division, the market "could at least double" if some of these states pass legalization this year. That could be great news for companies like AbbVie ( ABBV ) which has exposure to cannabinoids medication, Cara Therapeutics ( CARA ) which has experience developing drugs that target CB- receptors and GW Pharmaceuticals ( GWPH ), which is already licensed to grow marijuana plants by the U.K. government.
Warren Buffett Recent Buys
Here are the five biggest states voting, along with the likelihood that the motions pass.
-. California
The Public Policy Institute of California found that 6…% of voters favored recreational legalization. Just '7% opposed the initiative, a big margin. Its previous poll found just 54% favored recreational marijuana, so the momentum is towards legalization.
-. Nevada
The Las Vegas Review-Journal revealed an 88% support for recreational marijuana's legalization.
'. Maine
A Marijuana Policy Project survey showed that 55% favor the legalization of recreational marijuana. Opposition came in at 4-%.
4. Massachusetts
Massachusetts is where the legalization train will likely end. A Suffolk University/Boston Globe poll found that just 4'% favored legalizing recreational marijuana compared to 46% that opposed it. Their -…-4 poll found that 48% of respondents favored legalization and 47% opposed it, so momentum is not on the side of legalization.
5. Arizona
The odds of legalization drop off considerably with Arizona. O.H. Predictive Insights found that '9% of Arizonans support recreational cannabis compared to 5'% that oppose it.
Disclosure:I have no positions in any of the stocks mentioned above and no intention to initiate a position in the next 7- hours.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That could be great news for companies like AbbVie ( ABBV ) which has exposure to cannabinoids medication, Cara Therapeutics ( CARA ) which has experience developing drugs that target CB- receptors and GW Pharmaceuticals ( GWPH ), which is already licensed to grow marijuana plants by the U.K. government. Nine more states will vote on legalization this November (North Dakota was not able to garner enough signatures for the issue to be put on the ballot). According to Bank of America's ( BAC ) Merrill Lynch division, the market "could at least double" if some of these states pass legalization this year. | That could be great news for companies like AbbVie ( ABBV ) which has exposure to cannabinoids medication, Cara Therapeutics ( CARA ) which has experience developing drugs that target CB- receptors and GW Pharmaceuticals ( GWPH ), which is already licensed to grow marijuana plants by the U.K. government. Its previous poll found just 54% favored recreational marijuana, so the momentum is towards legalization. A Suffolk University/Boston Globe poll found that just 4'% favored legalizing recreational marijuana compared to 46% that opposed it. | That could be great news for companies like AbbVie ( ABBV ) which has exposure to cannabinoids medication, Cara Therapeutics ( CARA ) which has experience developing drugs that target CB- receptors and GW Pharmaceuticals ( GWPH ), which is already licensed to grow marijuana plants by the U.K. government. Maine A Marijuana Policy Project survey showed that 55% favor the legalization of recreational marijuana. A Suffolk University/Boston Globe poll found that just 4'% favored legalizing recreational marijuana compared to 46% that opposed it. | That could be great news for companies like AbbVie ( ABBV ) which has exposure to cannabinoids medication, Cara Therapeutics ( CARA ) which has experience developing drugs that target CB- receptors and GW Pharmaceuticals ( GWPH ), which is already licensed to grow marijuana plants by the U.K. government. Last year, the legal cannabis market grew by -7% to $5.4 billion. Just '7% opposed the initiative, a big margin. |
26452.0 | 2016-09-15 00:00:00 UTC | Better Buy: Pfizer Inc. vs. AbbVie Inc. | ABBV | https://www.nasdaq.com/articles/better-buy-pfizer-inc-vs-abbvie-inc-2016-09-15 | nan | nan | IMAGE SOURCE: GETTY IMAGES.
Big pharma is on a roll.
Several of the largest drugmakers' stocks are up by double-digit percentages over the past six months. Count AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) among big pharma's best performers in 2016: AbbVie's shares are up over 13% since March, while Pfizer stock has climbed over 16%.
Can these two pharmaceutical companies keep up their winning ways? And is one stock a better pick than the other? Let's look at how AbbVie and Pfizer stack up.
The case for Pfizer
The argument for buying Pfizer stock right now can be summed up with two mathematical words: addition and division.
Pfizer has been adding to its business through strategic acquisitions. Since last September, the big drugmaker has completed a buyout of Hospira, bought two vaccines from GlaxoSmithKline , acquired Anacor Pharmaceuticals, and announced plans to acquire Medivation and purchase AstraZeneca 's late-stage small-molecule anti-infectives business. If it were not for a decision by the U.S. Department of Treasury that prevented Pfizer from reducing taxes by moving its domicile to Ireland, we could add Allergan to the list.
If it sounds like Pfizer is trying to buy its way to growth, it's because that's exactly what the company is attempting to do. The Hospira deal kicked in $1.1 billion in additional revenue in the second quarter alone. Look for Medivation's Xtandi to make a difference for Pfizer's financials as soon as the acquisition closes and for Anacor's crisaborole to contribute to the coffers in the near future, assuming the drug gains regulatory approval.
These acquisitions aren't without criticism. Pfizer paid $14 billion for Medivation and $5.2 billion for Anacor. Skeptics say the company shelled out too much. However, Pfizer thinks the growth prospects for Xtandi and crisaborole, combined with Medivation's and Anacor's pipelines, justify the deals. I view the acquisitions as good fits with Pfizer's business. Medivation's products help Pfizer build up a stronger oncology portfolio along with Ibrance, while Anacor's crisaborole complements Pfizer's efforts in the inflammation and immunology space.
What about the second element -- division? Pfizer announced that it's considering splitting its innovative health business, which includes drugs like cancer drug Ibrance and rheumatoid arthritis drug Xeljanz, from its established products business. Sales for Ibrance, Xeljanz, and some of the other drugs in the innovative health business are growing at a solid pace, while sales for many of Pfizer's established products are declining. The company expects to make a final decision before the end of 2016.
The last time Pfizer took the division route, it went very well for investors. In 2013, the company spun off its animal health business. Shares of the newly formed entity, Zoetis , have climbed over 65% since then, achieving more than double Pfizer's stock gains.
Pfizer is also rewarding investors in another way. The drugmaker returned around $8.7 billion to shareholders in the first half of this year through share buybacks and dividend payments.
The case for AbbVie
While Pfizer is adding and dividing its way past patent-cliff woes, AbbVie is hoping to forestall its own patent cliff. Humira ranked as the world's top-selling drug in 2015, but the main patent for the biologic expires at the end of this year. However, AbbVie has won multiple ancillary patents in efforts to keep biosimilar rivals off the market until 2022 -- and maybe longer.
Sooner or later, of course, Humira will face competition. AbbVie plans to be ready for that day with an arsenal of other drugs. Leading the way is hepatitis C drug Viekira, which generated $833 million in revenue in the first half of this year. Imbruvica wasn't far behind, raking in $820 million in the same time period. Imbruvica should emerge as the bigger winner eventually. Analysts expect the drug to reach peak annual sales of around $7 billion for AbbVie, with additional revenue going to the company's partner Johnson & Johnson .
Blood cancer drug Venclexta could also be a big story for AbbVie. The drug, which won FDA approval in April, is projected to hit peak annual sales of $1.7 billion (although AbbVie has to share revenue with Roche ). Also, a successor to Viekira is in late-stage clinical development. AbbVie hopes to have the combination treatment of ABT-530 and ABT-493, a one-dose treatment for all genotypes of hepatitis C, on the market next year.
AbbVie isn't depending only on organic growth. It gained Imbruvica from the 2015 buyout of Pharmacyclics. In June, AbbVie completed the acquisition of Stemcentrx, picking up promising cancer drug rovalpituzumab tesirine (Rova-T) in the process.
Like Pfizer, AbbVie is no slouch when it comes to dividends and share buybacks. The company's dividend yield currently stands at an attractive 3.53%. In June, AbbVie announced plans to repurchase $3.8 billion of its stock.
Better buy
Which stock is the better choice? If I had to make the decision right now, I'd go with AbbVie. Humira continues to rock along and should do so for several years to come. The rest of AbbVie's product lineup seem well-positioned to make significant contributions as well.
I generally like Pfizer's buying spree, although the company might have paid out more than it should have. The big drugmaker had to do something to jump-start growth -- and it did. I'm also eager to find out Pfizer's plans for a potential separation into two companies. My hunch is that such a move would really generate investor excitement for the innovative products business. Should Pfizer announce another spinoff, I might have to reconsider my pick of AbbVie as the better buy.
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. 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 .
Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of and 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 drug, which won FDA approval in April, is projected to hit peak annual sales of $1.7 billion (although AbbVie has to share revenue with Roche ). In June, AbbVie completed the acquisition of Stemcentrx, picking up promising cancer drug rovalpituzumab tesirine (Rova-T) in the process. Count AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) among big pharma's best performers in 2016: AbbVie's shares are up over 13% since March, while Pfizer stock has climbed over 16%. | Analysts expect the drug to reach peak annual sales of around $7 billion for AbbVie, with additional revenue going to the company's partner Johnson & Johnson . Count AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) among big pharma's best performers in 2016: AbbVie's shares are up over 13% since March, while Pfizer stock has climbed over 16%. Let's look at how AbbVie and Pfizer stack up. | Count AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) among big pharma's best performers in 2016: AbbVie's shares are up over 13% since March, while Pfizer stock has climbed over 16%. Let's look at how AbbVie and Pfizer stack up. The case for AbbVie While Pfizer is adding and dividing its way past patent-cliff woes, AbbVie is hoping to forestall its own patent cliff. | If I had to make the decision right now, I'd go with AbbVie. Count AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) among big pharma's best performers in 2016: AbbVie's shares are up over 13% since March, while Pfizer stock has climbed over 16%. Let's look at how AbbVie and Pfizer stack up. |
26453.0 | 2016-09-12 00:00:00 UTC | 3 Drug Stocks That Could Benefit from Key FDA Events in Sep 2016 | ABBV | https://www.nasdaq.com/articles/3-drug-stocks-could-benefit-key-fda-events-sep-2016-2016-09-12 | nan | nan | The drug development process is often lengthy and time-consuming and requires the utilization of a lot of funds and resources. It may well take a drug anything between 10-12 years to be successfully developed and reach the market. In such a scenario, key pipeline events including data readouts and regulatory updates are of paramount importance - companies which hit the bull's eye become overnight success stories with shares even doubling or tripling on positive news while negative outcomes have an equally strong effect on the shares and failure may very well spell doom for these companies.
Here is a look at three stocks that have important regulatory events scheduled for this month.
Spectrum Pharmaceuticals, Inc.'sSPPI new drug application for Qapzola (apaziquone) will be reviewed by an FDA advisory panel later this week. The FDA's Oncologic Drugs Advisory Committee is meeting on Sep 14 to review the NDA - the proposed indication for the product is for the immediate intravesical instillation post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer.
Advisory panels provide the FDA with independent opinions and recommendations from outside experts on new drugs as well as FDA policies. While the agency is not required to do so, it usually follows the advisory committee's recommendation. Therefore, FDA advisory panel meetings are closely followed by investors as they give an insight into the FDA's final decision regarding the approval status of the candidate. A positive panel recommendation would be a major boost for Spectrum, a Zacks Rank #3 (Hold) stock.
Price and Consensus
Price and Consensus | Quote
Next on the list is biotech major, Amgen Inc.AMGN , which has an important regulatory event coming up later this month with the FDA expected to decide on the approval status of the company's Biologics License Application (BLA) for ABP 501.
ABP 501 is a biosimilar candidate to AbbVie Inc.'s ABBV Humira, an anti-tumor necrosis factor-alpha (TNF-α) monoclonal antibody, which is approved in many regions for the treatment of several inflammatory diseases. With an FDA advisory panel voting in favor of ABP 501 earlier this year, expectations are high that the FDA will give its nod to ABP 501 on the target action date of Sep 25, 2016.
Why is this approval important for Amgen? Well, Amgen is pretty committed to the biosimilars effort and if approved, ABP 501 would be the first biosimilar from Amgen's pipeline to gain approval. The Zacks Rank #3 stock has quite a few biosimilars in development including biosimilar versions of cancer drugs, Avastin and Herceptin. Amgen has even tied up with Japanese company, Daiichi Sankyo, to commercialize nine biosimilars in Japan.
Last year, on an analyst call, Amgen had said that it expects to launch five new biosimilars between 2017 and 2019. The biosimilars opportunity represents annual revenues of more than $3 billion for Amgen. Humira brought in 2015 sales of $8.4 billion in the U.S. alone where the composition of matter patent is expected to expire in Dec 2016.
But even if it gains FDA approval, Amgen will have to take a decision regarding its launch plans for ABP 501 considering AbbVie has initiated a patent infringement lawsuit against the company.
Price and Consensus
Price and Consensus | Quote
Third on the list is Vertex Pharmaceuticals, Inc.VRTX , a company focused on cystic fibrosis (CF) treatments, which is currently looking to expand the label of its CF treatment, Orkambi. Orkambi, approved in Jul 2015, for the treatment of the underlying cause of CF in people (ages 12 and above) with two copies of the F508del mutation, is currently under FDA review for use in the 6-11 years age group. Approval for this age group would expand the patient population by about 2,400 in the U.S. A response from the agency is expected on Sep 30 and approval would be a positive catalyst for this Zacks Rank #3 stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Price and Consensus
Price and Consensus | 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. | ABP 501 is a biosimilar candidate to AbbVie Inc.'s ABBV Humira, an anti-tumor necrosis factor-alpha (TNF-α) monoclonal antibody, which is approved in many regions for the treatment of several inflammatory diseases. But even if it gains FDA approval, Amgen will have to take a decision regarding its launch plans for ABP 501 considering AbbVie has initiated a patent infringement lawsuit against the company. Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report SPECTRUM PHARMA (SPPI): 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 VERTEX PHARM (VRTX): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report SPECTRUM PHARMA (SPPI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. ABP 501 is a biosimilar candidate to AbbVie Inc.'s ABBV Humira, an anti-tumor necrosis factor-alpha (TNF-α) monoclonal antibody, which is approved in many regions for the treatment of several inflammatory diseases. But even if it gains FDA approval, Amgen will have to take a decision regarding its launch plans for ABP 501 considering AbbVie has initiated a patent infringement lawsuit against the company. | Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report SPECTRUM PHARMA (SPPI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. ABP 501 is a biosimilar candidate to AbbVie Inc.'s ABBV Humira, an anti-tumor necrosis factor-alpha (TNF-α) monoclonal antibody, which is approved in many regions for the treatment of several inflammatory diseases. But even if it gains FDA approval, Amgen will have to take a decision regarding its launch plans for ABP 501 considering AbbVie has initiated a patent infringement lawsuit against the company. | ABP 501 is a biosimilar candidate to AbbVie Inc.'s ABBV Humira, an anti-tumor necrosis factor-alpha (TNF-α) monoclonal antibody, which is approved in many regions for the treatment of several inflammatory diseases. But even if it gains FDA approval, Amgen will have to take a decision regarding its launch plans for ABP 501 considering AbbVie has initiated a patent infringement lawsuit against the company. Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report SPECTRUM PHARMA (SPPI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26454.0 | 2016-09-09 00:00:00 UTC | Daily Dividend Report: AWH, TY, ABCB, ABBV, CL | ABBV | https://www.nasdaq.com/articles/daily-dividend-report-awh-ty-abcb-abbv-cl-2016-09-09 | nan | nan | Allied World Assurance Company Holdings today announced that it has approved a quarterly dividend equal to $0.26 per share payable on September 29, 2016 to shareholders of record on September 20, 2016. The company's transfer agent will make dividend payments in United States dollars.
Tri-Continental today declared a third quarter distribution of $0.2336 per share of Common Stock and $0.6250 per share of Preferred Stock. Dividends on Common Stock will be paid on September 27, 2016 to Common Stockholders of record on September 19, 2016 and dividends on Preferred Stock will be paid on October 3, 2016 to Preferred Stockholders of record on September 19, 2016. The ex-dividend date for both the Common Stock and the Preferred Stock is September 15, 2016. The $0.2336 per share dividend on the Common Stock is in accordance with the Corporation's earned distribution policy. TY has paid dividends on its common stock for 72 consecutive years.
Ameris Bancorp today announced that its Board of Directors approved a quarterly cash dividend of $0.10 per common share, payable October 11, 2016, to shareholders of record as of the close of business on September 30, 2016. This reflects a doubling of the prior dividend of $0.05 per common share paid in recent quarters.
The board of directors of AbbVie declared a quarterly cash dividend of $0.57 per share. The cash dividend is payable Nov. 15, 2016 to stockholders of record at the close of business on Oct. 14, 2016. Since the company's inception in 2013, AbbVie has increased its dividend by more than 42 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
The Board of Directors of Colgate-Palmolive today declared a quarterly cash dividend of $0.39 per common share, payable on November 15, 2016, to shareholders of record on October 24, 2016. The Company has paid uninterrupted dividends on its common stock since 1895.
VIDEO: Daily Dividend Report: AWH, TY, ABCB, ABBV, CL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 board of directors of AbbVie declared a quarterly cash dividend of $0.57 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 42 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie declared a quarterly cash dividend of $0.57 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 42 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie declared a quarterly cash dividend of $0.57 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 42 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie declared a quarterly cash dividend of $0.57 per share. Since the company's inception in 2013, AbbVie has increased its dividend by more than 42 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. |
26455.0 | 2016-09-09 00:00:00 UTC | Notable ETF Outflow Detected - XLV, ABBV, TMO, ABT | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-xlv-abbv-tmo-abt-2016-09-09 | 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 $124.1 million dollar outflow -- that's a 1.0% decrease week over week (from 176,265,324 to 174,565,324). Among the largest underlying components of XLV, in trading today AbbVie Inc. (Symbol: ABBV) is off about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 3%, and Abbott Laboratories (Symbol: ABT) is lower by about 1.1%. 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 $72.30. 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 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 AbbVie Inc. (Symbol: ABBV) is off about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 3%, and Abbott Laboratories (Symbol: ABT) 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 Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $124.1 million dollar outflow -- that's a 1.0% decrease week over week (from 176,265,324 to 174,565,324). 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 AbbVie Inc. (Symbol: ABBV) is off about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 3%, and Abbott Laboratories (Symbol: ABT) is lower by about 1.1%. 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 $72.30. 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 AbbVie Inc. (Symbol: ABBV) is off about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 3%, and Abbott Laboratories (Symbol: ABT) 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 Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $124.1 million dollar outflow -- that's a 1.0% decrease week over week (from 176,265,324 to 174,565,324). 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 $72.30. | Among the largest underlying components of XLV, in trading today AbbVie Inc. (Symbol: ABBV) is off about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 3%, and Abbott Laboratories (Symbol: ABT) 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 Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $124.1 million dollar outflow -- that's a 1.0% decrease week over week (from 176,265,324 to 174,565,324). 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 $72.30. |
26456.0 | 2016-09-09 00:00:00 UTC | 3 Big Chart Stocks for Friday: Oracle Corporation (ORCL), salesforce.com, inc. (CRM) and AbbVie Inc (ABBV) | ABBV | https://www.nasdaq.com/articles/3-big-chart-stocks-for-friday%3A-oracle-corporation-orcl-salesforce.com-inc.-crm-and-abbvie | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Could it be that the market is really ready to take the break that it has been due for months? With almost 50 days in a row without a 1% move in the S&P 500 Index (either up or down), the consolidation that we've seen last most of the summer is well beyond due for a volatility move. Historically, the index goes an average of fewer than 10 days between 1% moves.
We've been highlighting stocks that have been breaking higher during the consolidation, but today we'll take a look at three companies that are making early moves to break lower that may be leading the market lower over the next few weeks. The three stock on the breakdown radar are Oracle Corporation (NYSE: ORCL ), salesforce.com, inc. (NYSE: CRM ) and AbbVie Inc (NYSE: ABBV ).
Oracle Corporation (ORCL)
Oracle shares slumped yesterday on an analyst downgrade one week before earnings results are set to hit the tape. The downgrade dropped shares below their 20- and 50-day moving averages on the same day, two trendlines that the stock has desperately been trying to hold on to for support.
In addition to the break below trendline support, ORCL shares 1.3% move is the first volatility move after a long period of consolidation that dates back to July 22. The sudden volatility and downgrade ahead of next week's earnings will trigger a "sell the rumor" situation for ORCL stock that is likely to take shares lower.
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Oracle's one-day move breached the stock's lower Bollinger Band that had been tight based on the recent lack of volatility.The break suggests that we will see an aggressive move to the downside as volatility in ORCL returns to normal levels with an increase in selling.
salesforce.com, inc. (CRM)
Salesforce shares started playing the volatility game last week when the stock broke below its lower Bollinger Band last week, kicking off a round of selling that has now set a negative momentum trend for CRM stock.
The volatility move has now affected the stock more negatively with a break below its long-term 200-day moving average. The last time that salesforce shares broke below this trendline was in January 2016, just ahead of a 25% decline in the stock.
Finally, a break below $74.20 will put CRM shares back in a technical bear market, as this would move the stock below its 20-month moving average. With momentum shifting even more negative on rising volume, salesforce shares are in clear danger of having shifted into an bearish trend that would likely carry CRM stock to $66.
AbbVie Inc (ABBV)
AbbVie and other biotechnology stocks have been down in sympathy of Mylan NV (NASDAQ: MYL ) over the past two weeks, but the selling is building more momentum as volume on AbbVie's decline has been building.
ABBV shares were able to catch support at their 50-day moving average until yesterday when an increased volume trading day broke the stock back below its 50-day for the second time in a week. Some of the support seen over the past week was also due to the stock having traced itself into an oversold technical condition, however the resulting strength appears to have been more of a "dead cat bounce" than a true bullish signal.
Within a few days AbbVie's 20-day moving average will cross below its 50-day trendline. Two of the last three similar patterns have resulted in declines in Abbvie stock of more than ten percent as this pattern indicates a bearish shift in the stock's trend.
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For now, traders are likely to continue to build selling pressure on ABBV shares, moving them toward their likely support level of $60, which is where we would start considering the shares a technical buy.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
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The post 3 Big Chart Stocks for Friday: Oracle Corporation (ORCL), salesforce.com, inc. (CRM) and AbbVie Inc (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 shares were able to catch support at their 50-day moving average until yesterday when an increased volume trading day broke the stock back below its 50-day for the second time in a week. The three stock on the breakdown radar are Oracle Corporation (NYSE: ORCL ), salesforce.com, inc. (NYSE: CRM ) and AbbVie Inc (NYSE: ABBV ). AbbVie Inc (ABBV) AbbVie and other biotechnology stocks have been down in sympathy of Mylan NV (NASDAQ: MYL ) over the past two weeks, but the selling is building more momentum as volume on AbbVie's decline has been building. | The three stock on the breakdown radar are Oracle Corporation (NYSE: ORCL ), salesforce.com, inc. (NYSE: CRM ) and AbbVie Inc (NYSE: ABBV ). ABBV shares were able to catch support at their 50-day moving average until yesterday when an increased volume trading day broke the stock back below its 50-day for the second time in a week. AbbVie Inc (ABBV) AbbVie and other biotechnology stocks have been down in sympathy of Mylan NV (NASDAQ: MYL ) over the past two weeks, but the selling is building more momentum as volume on AbbVie's decline has been building. | More From InvestorPlace The 7 Best Monthly Dividend Stocks to Buy Now 5 Stocks to Buy for September The post 3 Big Chart Stocks for Friday: Oracle Corporation (ORCL), salesforce.com, inc. (CRM) and AbbVie Inc (ABBV) appeared first on InvestorPlace . The three stock on the breakdown radar are Oracle Corporation (NYSE: ORCL ), salesforce.com, inc. (NYSE: CRM ) and AbbVie Inc (NYSE: ABBV ). AbbVie Inc (ABBV) AbbVie and other biotechnology stocks have been down in sympathy of Mylan NV (NASDAQ: MYL ) over the past two weeks, but the selling is building more momentum as volume on AbbVie's decline has been building. | ABBV shares were able to catch support at their 50-day moving average until yesterday when an increased volume trading day broke the stock back below its 50-day for the second time in a week. The three stock on the breakdown radar are Oracle Corporation (NYSE: ORCL ), salesforce.com, inc. (NYSE: CRM ) and AbbVie Inc (NYSE: ABBV ). AbbVie Inc (ABBV) AbbVie and other biotechnology stocks have been down in sympathy of Mylan NV (NASDAQ: MYL ) over the past two weeks, but the selling is building more momentum as volume on AbbVie's decline has been building. |
26457.0 | 2016-09-08 00:00:00 UTC | Better Buy: Biogen Inc. vs. Gilead Sciences | ABBV | https://www.nasdaq.com/articles/better-buy-biogen-inc-vs-gilead-sciences-2016-09-08 | nan | nan | A closer look at Biogen 's(NASDAQ: BIIB) most exciting asset recently caught the attention of the wider public, while Gilead Sciences '(NASDAQ: GILD) hepatitis C virus (HCV) treatment sales have been sliding. Both have provided enormous returns to their long-term investors over the years, but investors want to know which blue chip biotech stock is most attractive now.
To answer, we'll look compare the two on a handful of metrics, beginning with their recent performance.
Ups and downs
In the first half, Biogen's total revenue rose 9.2% compared to the previous-year period to $5.62 billion. The company expects its top line to reach at least $11.2 billion this year, which would beat its annual revenue record of $10.76 billion set last year by about 4.1%.
Gilead Sciences, on the other hand, saw its top line contract slightly. Sales of its HCV antivirals fell 12.4% to about $8.28 billion, dragging total first-half product sales 1.3% lower than the previous year period to $15.3 billion.
Looking forward
Hands down, Biogen's most exciting asset at the moment is its Alzheimer's disease candidate, aducanumab. It's currently in phase 3 trials designed to support an application, and a closer look at earlier data is somewhat mixed, but extremely encouraging.
The cause of Alzheimer's disease is still a matter of debate, although most investigators agree that buildup of amyloid beta plays a key role, and aducanumab appears to do a great job of removing it. In a phase 1 study with 165 patients broken into five groups that received either a placebo, or one of four increasing doses, positron emission tomography imaging at 52 weeks shows a dose dependant reduction of amyloid beta in patients' brains that looks like a flight of stairs descending from the placebo group down to the group receiving the highest dose.
Image source: Biogen.
More importantly, the patients' scores on the clinical dementia rating sum of boxes (CDR-SB) test at 52 weeks also shows a similar staircase-like improvement with increasing dosage. Earlier, results from the mini-mental state exam (another dementia rating test) were out of whack. Patients receiving 3 mg and 10 mg dosages showed a significant improvement over the placebo group, but the improvement among patients receiving a 6 mg dosage wasn't strong enough to be considered significant.
Biogen shareholders will be glad to know that the main goal of the 2,700-patient phase 3 program is improvement on the CDR-SB test at 78 weeks, with mini-mental state exam improvement relegated to secondary endpoint status. If CDR-SB results from the smaller trial are repeated in the larger population at the expected data readout expected around February 2020, Biogen stock will soar.
Gilead Sciences has been expanding its clinical stage pipeline with promising candidates, but I think its most important asset launched near the end of the second quarter. There are about 3.5 million Americans and about 180 million people worldwide infected with one of six strains of hepatitis C, and Gilead's Epclusa is the only pill approved to treat them all.
Incoming competition from Merck & Co. and AbbVie has pressured Gilead's pricing power for its HCV antivirals, but healthcare providers in the U.S. are finding it increasingly difficult to restrict the pricey treatments to the sickest patients. In other words, demand for HCV antivirals should rise substantially, and Gilead is the clear leader in the space.
Value and profit sharing
At about 17.9 times trailing earnings, Biogen is trading at a lower multiple than the average stock in the benchmark S&P 500 index, but Gilead Sciences stock is silly cheap at just 6.8 times trailing earnings. It's cheap because sinking sales figures for HCV antivirals launched ahead of Epclusa's approval have the market convinced the company reached a peak it won't return to for quite some time.
I think the market is wrong, and it looks like Gilead does, too. Instead of using its massive cash flows to bloat up with huge acquisitions, it's been repurchasing its own shares at a mind-blowing pace. In just two years the company has reduced its outstanding share count by 13%, from about 1.53 billion at the end of June 2014, to just 1.33 billion at the end of this June.
Biogen has also been returning profits to shareholders, but its recent $5 billion repurchase authorization pales in comparison to the $12 billion repurchase authorization Gilead's board approved in February. Throw in Gilead's recently initiated dividend that currently offers a yield of about 2.4%, and the antiviral champ clearly has the upper hand when it comes to distributing profits to shareholders.
As much as I would love to hang a gold medal around Biogen's neck, success for its Alzheimer's program is still questionable. With Epclusa's launch in progress, an ultra-low valuation, and a juicy dividend, I have to call Gilead Sciences stock the better buy -- although I wouldn't criticize anyone for buying shares of both.
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Cory Renauer owns shares of Gilead Sciences. You can follow Cory on Twitter @TMFang4apples or connect with him on LinkedIn for more healthcare industry insight.
The Motley Fool owns shares of and recommends Biogen and Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on 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. | Incoming competition from Merck & Co. and AbbVie has pressured Gilead's pricing power for its HCV antivirals, but healthcare providers in the U.S. are finding it increasingly difficult to restrict the pricey treatments to the sickest patients. The cause of Alzheimer's disease is still a matter of debate, although most investigators agree that buildup of amyloid beta plays a key role, and aducanumab appears to do a great job of removing it. It's cheap because sinking sales figures for HCV antivirals launched ahead of Epclusa's approval have the market convinced the company reached a peak it won't return to for quite some time. | Incoming competition from Merck & Co. and AbbVie has pressured Gilead's pricing power for its HCV antivirals, but healthcare providers in the U.S. are finding it increasingly difficult to restrict the pricey treatments to the sickest patients. Earlier, results from the mini-mental state exam (another dementia rating test) were out of whack. Patients receiving 3 mg and 10 mg dosages showed a significant improvement over the placebo group, but the improvement among patients receiving a 6 mg dosage wasn't strong enough to be considered significant. | Incoming competition from Merck & Co. and AbbVie has pressured Gilead's pricing power for its HCV antivirals, but healthcare providers in the U.S. are finding it increasingly difficult to restrict the pricey treatments to the sickest patients. A closer look at Biogen 's(NASDAQ: BIIB) most exciting asset recently caught the attention of the wider public, while Gilead Sciences '(NASDAQ: GILD) hepatitis C virus (HCV) treatment sales have been sliding. Value and profit sharing At about 17.9 times trailing earnings, Biogen is trading at a lower multiple than the average stock in the benchmark S&P 500 index, but Gilead Sciences stock is silly cheap at just 6.8 times trailing earnings. | Incoming competition from Merck & Co. and AbbVie has pressured Gilead's pricing power for its HCV antivirals, but healthcare providers in the U.S. are finding it increasingly difficult to restrict the pricey treatments to the sickest patients. The company expects its top line to reach at least $11.2 billion this year, which would beat its annual revenue record of $10.76 billion set last year by about 4.1%. Looking forward Hands down, Biogen's most exciting asset at the moment is its Alzheimer's disease candidate, aducanumab. |
26458.0 | 2016-09-06 00:00:00 UTC | 3 Big Stock Charts: Netflix, Inc (NFLX), Intel Corporation (INTC) and Abbvie Inc (ABBV) | ABBV | https://www.nasdaq.com/articles/3-big-stock-charts%3A-netflix-inc-nflx-intel-corporation-intc-and-abbvie-inc-abbv-2016-09-06 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The first real trading day of September - the one with everyone back from the beach - will kick off today with futures trading slightly higher. But we're still looking at the seasonality data with a good deal of confidence. That's because a number of indicators suggest a pullback is all but imminent.
The market's short-term outlook has us looking at stocks that should see declines in September, meaning we're looking to either sell existing positions or short (maybe using options) these likely decliners. Today's list of technical troublemakers includes Netflix, Inc. (NASDAQ: NFLX ) and AbbVie Inc (NYSE: ABBV ). Intel Corporation (NASDAQ: INTC ), however, looks promising here.
Intel Corporation (INTC)
We've mentioned that old-school tech companies like Microsoft Corporation (NASDAQ: MSFT ), Cisco Systems, Inc. (NASDAQ: CSCO ) and Intel have once again become attractive. The positive effect is great, as investors still have their eyes on companies like Facebook Inc (NASDAQ: FB ) and GoPro Inc (NASDAQ: GPRO ), completely ignoring the profit potential of these real market performers.
Their mistake.
An ongoing refresh of products using semiconductor technology from Intel has INTC stock leading the market higher as it breaks toward new multiyear highs. As of now, a break above $37.90 would register Intel's highest price since 2000 - something the market won't be able to ignore.
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As of last week, Intel shares were reaching into technically overbought territory as the stock's RSI reading moved above 70. Normally, we don't like holding a stock that hits these levels as it indicates that profit-taking is likely to arise. But another development in INTC has us hanging on.
Intel stock also is pressing above its top Bollinger Band. Historically, a break above this band (not to be confused with trading just below) usually causes a surge of buying pressure as traders see the stock's move accelerate. This often results in what we refer to as a "parabolic move." INTC is set up for such a move.
Keep in mind that a break above this band would put the stock into new high territory, which will grab headlines and warrant even more buying. For now, this development has Intel on our short list of companies with higher price targets.
Watch for a volatile bullish move toward $40 for the old-school chip leader.
Netflix, Inc. (NFLX)
NFLX has turned into one of Wall Street's less-liked stocks thanks to all of the competition in its space. Sure, this is a fair concern, but no competitor operates with the reach and growth that Netflix does. So it's only a matter of time before this value gets picked up again.
For now, the charts suggest that Netflix stock is stuck in a consolidation pattern that is likely to lead to lower prices. As of last week, shares started stalling out again as they faced overhead resistance from their 200-day trendline. More urgently, NFLX is now being pressed lower by its tightening Bollinger Band, adding pressure to the $98.50 level.
Failure for Netflix to break above $98.50 over the next few trading days should prompt technical selling pressure as the momentum tide turns. Netflix's first line of technical support is at $94 from its 50-day moving average, but this trendline has been very ineffective in acting as trading support or resistance. Instead, our chart analysis is targeting the $88 level as a likely target for any decline. This level would also serve as a potential buying level for many technicians watching NFLX stock.
AbbVie Inc (ABBV)
The biotechnology sector has been coming back with a vengeance after the group was technically oversold on fears of new regulatory control becoming a campaign platform. Well, the recent Mylan NV (NASDAQ: MYL ) story may have done exactly that. Same with the Apple Inc. (NASDAQ: AAPL ) story.
Both affect AbbVie.
ABBV shares have spent the past two weeks on a low-volatility decline as traders have pulled back from the relative strength-leading pharma company. The pullback now has the stock trading below its 50-day MA for the first time since June.
Technical traders will want to watch the development. The currently declining 20-day, if it crosses below the 50-day (which is likely to happen this week), would indicate another round of selling in the works. Our historical tests show that Abbvie would be 67% likely to see a 8% decline in shares prices on a cross-under like this.
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ABBV stock currently is coming off a short-term technically oversold reading in the RSI, so we should see a little buying early in the week. But any market weakness will be amplified in a move lower for AbbVie.
Watch the $63.50 level as a key tipping point. A break below will target a move back to their 200-day support, which is currently idle at just under $60. This is where ABBV would become attractive to us.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
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The post 3 Big Stock Charts: Netflix, Inc (NFLX), Intel Corporation (INTC) and Abbvie Inc (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. | AbbVie Inc (ABBV) The biotechnology sector has been coming back with a vengeance after the group was technically oversold on fears of new regulatory control becoming a campaign platform. The SPDR Gold Trust (GLD) Is Ready to Rally ABBV stock currently is coming off a short-term technically oversold reading in the RSI, so we should see a little buying early in the week. Today's list of technical troublemakers includes Netflix, Inc. (NASDAQ: NFLX ) and AbbVie Inc (NYSE: ABBV ). | More From InvestorPlace 7 Internet Stocks With Upside You'll "Like" The 10 Best ETFs on the Planet The post 3 Big Stock Charts: Netflix, Inc (NFLX), Intel Corporation (INTC) and Abbvie Inc (ABBV) appeared first on InvestorPlace . Today's list of technical troublemakers includes Netflix, Inc. (NASDAQ: NFLX ) and AbbVie Inc (NYSE: ABBV ). AbbVie Inc (ABBV) The biotechnology sector has been coming back with a vengeance after the group was technically oversold on fears of new regulatory control becoming a campaign platform. | More From InvestorPlace 7 Internet Stocks With Upside You'll "Like" The 10 Best ETFs on the Planet The post 3 Big Stock Charts: Netflix, Inc (NFLX), Intel Corporation (INTC) and Abbvie Inc (ABBV) appeared first on InvestorPlace . Today's list of technical troublemakers includes Netflix, Inc. (NASDAQ: NFLX ) and AbbVie Inc (NYSE: ABBV ). AbbVie Inc (ABBV) The biotechnology sector has been coming back with a vengeance after the group was technically oversold on fears of new regulatory control becoming a campaign platform. | Today's list of technical troublemakers includes Netflix, Inc. (NASDAQ: NFLX ) and AbbVie Inc (NYSE: ABBV ). AbbVie Inc (ABBV) The biotechnology sector has been coming back with a vengeance after the group was technically oversold on fears of new regulatory control becoming a campaign platform. Both affect AbbVie. |
26459.0 | 2016-09-05 00:00:00 UTC | Gilead Sciences Inc.'s 5 Best Moves in 2016 So Far | ABBV | https://www.nasdaq.com/articles/gilead-sciences-incs-5-best-moves-2016-so-far-2016-09-05 | nan | nan | GILD data by YCharts .
Of course, investors are deeply concerned about Harvoni's second-quarter cliff dive: The star hepatitis C drug saw its U.S. sales fall by more than 50% relative to a year ago. While such a steep decline for a franchise-level product is never welcome news, Gilead hasn't exactly been sitting idly by in 2016. In fact, the biotech has made at least five key moves this year designed to create deep value for shareholders.
Gilead's 5 best moves this year
1. In January, Gilead cemented a global license and collaboration agreement with Galapagos NV (NASDAQ: GLPG) for experimental anti-inflammatory drug filgotinib. The reason this move should excite investors is twofold. First, filgotinib is being developed as an oral treatment for rheumatoid arthritis, Crohn's disease, and ulcerative colitis. This gives it megablockbuster potential, depending on how AbbVie 's(NYSE: ABBV) competing oral selective JAK1 inhibitor, ABT-494, pans out in its broad late-stage clinical program. Second, Gilead didn't break the bank to bring filgotinib into the fold, reportedly investing only $725 million upfront in this collaboration with Galapagos NV, while back-loading the deal with an additional $1.35 billion in milestone payments.
2. Over the course of March and April, Gilead grabbed two FDA approvals for its cornerstone HIV franchise. Specifically, the agency approved the biotech's TAF-based regimens Odefsey and Descovy. These two new TAF-based HIV medicines would go on to help boost the biotech's quarterly HIV sales by a healthy 14.8% in the second quarter this year, compared to the same period a year ago.
3. In April, Gilead took another step to shore up its liver disease franchise with a $400 million upfront payment for Nimbus Apollo and its Acetyl-CoA Carboxylase inhibitor program. As a result, the biotech now sports perhaps the most robust pipeline of experimental nonalcoholic steatohepatitis (NASH) drugs in the industry, and that's no small feat. After all, the Street thinks that an effective NASH treatment could generate upwards of $10 billion in peak sales, although, in reality, the market is most likely to be split among a couple of different players.
4. In late June, the biotech announced the FDA-approval of its latest hepatitis C drug Epclusa. Epclusa is a key piece of the puzzle, as it's the first all-oral, pan-genotypic, single tablet regimen to hit the market. Simply put, Gilead's already formidable competitive moat against AbbVie's Viekira Pak, as well as Merck 's Zepatier, grew arguably 10 feet wider with the approval of Epclusa.
5. Gilead's decision not to overpay for a major acquisition so far this year is looking like the biotech's best move overall. While rival drugmakers like AbbVie have willingly maxed out their balance sheets to acquire new growth products, Gilead has instead chosen to strike smaller deals such as its recent acquisition of Nimbus. The net result is that Gilead is on track to exit 2016 with over $30 billion in cash, cash equivalents, and marketable securities, giving it plenty of fuel to pursue either a single large acquisition or a series of smaller, value-creating deals moving forward.
What's next?
Although Gilead's top line appears set to fall by 6.6% this year and by almost 3% next year, Gilead remains a great value stock for patient investors. By valuing Gilead almost exclusively on the prospects of its hepatitis C franchise, after all, the market has missed the biotech's impressive clinical pipeline of NASH product candidates, and is basically saying that AbbVie's ABT-494 is destined to clobber filgotinib. In short, you can buy Gilead right now for its still-healthy hepatitis C franchise, and get its pipeline basically for free.
Unfortunately, the market's extremely dire outlook toward Gilead probably isn't going to change until the biotech opens up the coffers to enter the M&A bonanza. Without even speculating about possible targets, though, it's not hard to get excited about the diversity of promising biotechs and biopharmas that could be acquired with a war chest of around $30 billion. In short, Gilead is almost certainly going to make a major move on the M&A scene within the next year, meaning that it might be wise to grab some shares while this biotech continues to trade at a steep discount relative to its peers.
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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 the following options: short October 2016 $85 calls on 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. | While rival drugmakers like AbbVie have willingly maxed out their balance sheets to acquire new growth products, Gilead has instead chosen to strike smaller deals such as its recent acquisition of Nimbus. By valuing Gilead almost exclusively on the prospects of its hepatitis C franchise, after all, the market has missed the biotech's impressive clinical pipeline of NASH product candidates, and is basically saying that AbbVie's ABT-494 is destined to clobber filgotinib. This gives it megablockbuster potential, depending on how AbbVie 's(NYSE: ABBV) competing oral selective JAK1 inhibitor, ABT-494, pans out in its broad late-stage clinical program. | By valuing Gilead almost exclusively on the prospects of its hepatitis C franchise, after all, the market has missed the biotech's impressive clinical pipeline of NASH product candidates, and is basically saying that AbbVie's ABT-494 is destined to clobber filgotinib. This gives it megablockbuster potential, depending on how AbbVie 's(NYSE: ABBV) competing oral selective JAK1 inhibitor, ABT-494, pans out in its broad late-stage clinical program. Simply put, Gilead's already formidable competitive moat against AbbVie's Viekira Pak, as well as Merck 's Zepatier, grew arguably 10 feet wider with the approval of Epclusa. | By valuing Gilead almost exclusively on the prospects of its hepatitis C franchise, after all, the market has missed the biotech's impressive clinical pipeline of NASH product candidates, and is basically saying that AbbVie's ABT-494 is destined to clobber filgotinib. This gives it megablockbuster potential, depending on how AbbVie 's(NYSE: ABBV) competing oral selective JAK1 inhibitor, ABT-494, pans out in its broad late-stage clinical program. Simply put, Gilead's already formidable competitive moat against AbbVie's Viekira Pak, as well as Merck 's Zepatier, grew arguably 10 feet wider with the approval of Epclusa. | This gives it megablockbuster potential, depending on how AbbVie 's(NYSE: ABBV) competing oral selective JAK1 inhibitor, ABT-494, pans out in its broad late-stage clinical program. Simply put, Gilead's already formidable competitive moat against AbbVie's Viekira Pak, as well as Merck 's Zepatier, grew arguably 10 feet wider with the approval of Epclusa. While rival drugmakers like AbbVie have willingly maxed out their balance sheets to acquire new growth products, Gilead has instead chosen to strike smaller deals such as its recent acquisition of Nimbus. |
26460.0 | 2016-09-01 00:00:00 UTC | IVV, AMZN, FB, ABBV: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/ivv-amzn-fb-abbv-etf-outflow-alert-2016-09-01 | 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 S&P 500 ETF (Symbol: IVV) where we have detected an approximate $164.0 million dollar outflow -- that's a 0.2% decrease week over week (from 360,350,000 to 359,600,000). Among the largest underlying components of IVV, in trading today Amazon.com Inc. (Symbol: AMZN) is off about 0.1%, Facebook Inc (Symbol: FB) is off about 0.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $181.90 per share, with $220.88 as the 52 week high point - that compares with a last trade of $217.89. 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 IVV, in trading today Amazon.com Inc. (Symbol: AMZN) is off about 0.1%, Facebook Inc (Symbol: FB) is off about 0.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $181.90 per share, with $220.88 as the 52 week high point - that compares with a last trade of $217.89. 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 IVV, in trading today Amazon.com Inc. (Symbol: AMZN) is off about 0.1%, Facebook Inc (Symbol: FB) is off about 0.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $181.90 per share, with $220.88 as the 52 week high point - that compares with a last trade of $217.89. 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 IVV, in trading today Amazon.com Inc. (Symbol: AMZN) is off about 0.1%, Facebook Inc (Symbol: FB) is off about 0.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $164.0 million dollar outflow -- that's a 0.2% decrease week over week (from 360,350,000 to 359,600,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $181.90 per share, with $220.88 as the 52 week high point - that compares with a last trade of $217.89. | Among the largest underlying components of IVV, in trading today Amazon.com Inc. (Symbol: AMZN) is off about 0.1%, Facebook Inc (Symbol: FB) is off about 0.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $181.90 per share, with $220.88 as the 52 week high point - that compares with a last trade of $217.89. 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). |
26461.0 | 2016-08-30 00:00:00 UTC | There’s More to Johnson & Johnson (JNJ) Than Meets the Eye | ABBV | https://www.nasdaq.com/articles/theres-more-to-johnson-johnson-jnj-than-meets-the-eye-2016-08-30 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
For most investors, Johnson & Johnson (NYSE: JNJ ) is perceived as one of the old guards of healthcare industry. Afterall, it is the name behind Band-Aids and baby shampoo.
Source: Dawn Via Flickr
It's also got a few pharmaceuticals on the market, like arthritis treatment Remicade, which generated $5.8 billion in sales last year .
Even so, in the shadow of news that Remicade's patent has just been invalidated and a rival drug from Pfizer Inc. (NYSE: PFE ) is already on the way, it's just tough to see JNJ stock as a high-growth, hard-hitting pharma name. It's something for your grandmother, who owns it for the dividend.
A closer look at the company's pipeline, however, may force investors to rethink what they think they know about this old school outfit.
This Is Not Your Father's Johnson & Johnson
Calling a spade a spade, there was a time not that long ago Johnson & Johnson was less than impressive. Quality control had become a problem, leading to a string of recalls a few years back. Its device business was put up for sale in 2014 , with the parent company unable to do anything fruitful with it.
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And JNJ has been falling off the same patent cliff its rivals have been falling off of, with blockbuster drugs Zytiga, Procrit and Velcade - just to name a few - about to see their patents expire if they haven't expired already .
It's a misnomer to think JNJ shares are essentially un-ownable because Johnson & Johnson doesn't have anything up its sleeve, though. It's got a lot more in the pipeline than most investors appreciate.
One of those developments is AL-335, for the treatment of hepatitis C. Currently in Phase 2 trials, the drug has shown efficacy similar to the uber-expensive HCV treatment Sovaldi , from Gilead Sciences, Inc. (NASDAQ: GILD ). Johnson & Johnson subsidiary Janssen says it will begin phase 3 testing of AL-335 in early 2017, with a projected launch in 2020.
The hepatitis C is worth nearly $12 billion per year , globally, and while Sovaldi and its sister drug Harvoni work, they're both debilitating expensive. A more moderate-priced solution could make a big splash.
Meanwhile, esketamine, for treatment-resistant depression, recently began Phase 3 testing , and sirukumab is already in Phase 3 trials as a therapy rheumatoid arthritis. Esketamine should be submitted to the FDA for approval next year. Ditto for sirukumab, which means Johnson & Johnson could offset the loss of Remicade sooner than later.
The proverbial shining star in the works for Johnson & Johnson is Darzalex, which is part of a combination therapy for relapsed/refractory multiple myeloma.
It's already been approved for some myeloma indications, with some drugs, but the lion's share of its potential has yet to be realized. Other approved uses for Darzalex could come as early as the middle of 2017, further opening the door to an underserved $8 billion market much sooner than JNJ owners were initially expecting from the drug. It's got five Phase 3 trials of the drug currently underway.
Don't forget about Imbruvica, however, which is co-owned with AbbVie Inc (NYSE: ABBV ). Like Darzalex, it's been approved for one chronic lymphocytic leukemia indication, but it's the focal point of six other Phase 3 tests right now. Peak sales are projected at $7 billion , although the recently awarded breakthrough drug designation for non-CLL ailments could push that potential even higher.
All told, owners of JNJ stock have to appreciate the fact that Johnson & Johnson has the potential to put up to ten eventual blockbusters on the market by 2020 . Never even mind the earlier-stage items in the works.
That's the most future promise J&J has had in a while.
Bottom Line for JNJ Stock
As impressive (albeit overlooked) as Johnson & Johnson's drug pipeline may be, just as overlooked is the uncharacteristic dividend JNJ pays. As of the latest look, with JNJ stock priced at $119.50, it's yielding 2.7%. Johnson & Johnson has consistently upped that dividend for 50 consecutive years .
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So, that's growth and income, all at a forward price-earnings ratio of 16.8.
It may be an old name that doesn't have the same sex appeal as smaller biotech that's swinging for the fences with a game-changing drug, but Johnson & Johnson is still a name worth owning for most people. There's more going for it than many investors realize.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post There's More to Johnson & Johnson (JNJ) Than Meets the Eye 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. | Don't forget about Imbruvica, however, which is co-owned with AbbVie Inc (NYSE: ABBV ). Even so, in the shadow of news that Remicade's patent has just been invalidated and a rival drug from Pfizer Inc. (NYSE: PFE ) is already on the way, it's just tough to see JNJ stock as a high-growth, hard-hitting pharma name. Other approved uses for Darzalex could come as early as the middle of 2017, further opening the door to an underserved $8 billion market much sooner than JNJ owners were initially expecting from the drug. | Don't forget about Imbruvica, however, which is co-owned with AbbVie Inc (NYSE: ABBV ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips For most investors, Johnson & Johnson (NYSE: JNJ ) is perceived as one of the old guards of healthcare industry. Source: Dawn Via Flickr It's also got a few pharmaceuticals on the market, like arthritis treatment Remicade, which generated $5.8 billion in sales last year . | Don't forget about Imbruvica, however, which is co-owned with AbbVie Inc (NYSE: ABBV ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips For most investors, Johnson & Johnson (NYSE: JNJ ) is perceived as one of the old guards of healthcare industry. This Is Not Your Father's Johnson & Johnson Calling a spade a spade, there was a time not that long ago Johnson & Johnson was less than impressive. | Don't forget about Imbruvica, however, which is co-owned with AbbVie Inc (NYSE: ABBV ). InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips For most investors, Johnson & Johnson (NYSE: JNJ ) is perceived as one of the old guards of healthcare industry. This Is Not Your Father's Johnson & Johnson Calling a spade a spade, there was a time not that long ago Johnson & Johnson was less than impressive. |
26462.0 | 2016-08-30 00:00:00 UTC | 2 Clinical-Stage Biotech Stocks to Buy | ABBV | https://www.nasdaq.com/articles/2-clinical-stage-biotech-stocks-buy-2016-08-30 | nan | nan | Overall, Galapagos' partnership with two of the most successful biotechs in the industry is confidence-inspiring, especially given Gilead Sciences' equity stake, and for that reason, it's one of my favorite clinical-stage stocks to buy.
A fast-approaching new cancer treatment
Kite Pharma (NASDAQ: KITE) thinks it can curb certain forms of cancer by helping the immune system find and destroy cancer cells better.
Its most advanced therapy is KTE-C19, a drug that reengineers patient T-cells so that they can bind to CD19 proteins that are expressed on the surface of blood cancer cells, including diffuse large B cell lymphoma (DLBCL) cells. Results from a mid-stage study that could support an FDA approval are expected before the end of 2016.
Although cancer trials are notorious for disappointing investors, evidence suggests KTE-C19 may be the exception. In June, Kite Pharma updated investors on phase 1 results of KTE-C19 in DLBCL. After receiving one single treatment of KTE-C19, there were three complete remissions at the nine-month mark in patients who were refractory to chemotherapy. Overall, the objective response rate was 71% in the seven-person study.
Kite Pharma's potential to reshape cancer care is significant because response rates are typically low in this tough-to-treat patient group; however, investors should keep their enthusiasm in check. After all, there's no guarantee that the phase 2 trial will confirm the efficacy observed in KTE-C19's prior trial -- and if it doesn't, shares could fall sharply.
Nevertheless, if phase 2 results do lead to an FDA filing for approval, then this drug could begin adding meaningful revenue to Kite Pharma by this time next year. That's why it ranks as another top clinical-stage stock to buy.
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. 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 owns shares of 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 has the following options: short October 2016 $85 calls on 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. | Overall, Galapagos' partnership with two of the most successful biotechs in the industry is confidence-inspiring, especially given Gilead Sciences' equity stake, and for that reason, it's one of my favorite clinical-stage stocks to buy. Kite Pharma's potential to reshape cancer care is significant because response rates are typically low in this tough-to-treat patient group; however, investors should keep their enthusiasm in check. Nevertheless, if phase 2 results do lead to an FDA filing for approval, then this drug could begin adding meaningful revenue to Kite Pharma by this time next year. | A fast-approaching new cancer treatment Kite Pharma (NASDAQ: KITE) thinks it can curb certain forms of cancer by helping the immune system find and destroy cancer cells better. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A fast-approaching new cancer treatment Kite Pharma (NASDAQ: KITE) thinks it can curb certain forms of cancer by helping the immune system find and destroy cancer cells better. 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. 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. | A fast-approaching new cancer treatment Kite Pharma (NASDAQ: KITE) thinks it can curb certain forms of cancer by helping the immune system find and destroy cancer cells better. 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. |
26463.0 | 2016-08-30 00:00:00 UTC | Looking Beyond Hepatitis C: Here's How Gilead Could Make Another $10 Billion Annually | ABBV | https://www.nasdaq.com/articles/looking-beyond-hepatitis-c-heres-how-gilead-could-make-another-10-billion-annually-2016-08 | nan | nan | Well, that was quick.
Gilead Sciences '(NASDAQ: GILD) meteoric growth came screeching to a halt earlier this year as its hepatitis C drugs, which took the world by storm and generated over $19 billion annually in 2015, saw sales begin to fall. Blame it on a number of factors -- competition, price discounts to expand the patient pool, a changing mix of payers -- but the fact of the matter is that Gilead's top line is falling for the first time in years.
Fortunately, the embattled big-cap biotech has two big opportunities to reignite growth -- to the tune of $10 billion in revenue or more.
Option 1: NASH
NASH, or nonalcoholic steatohepatitis, is inflammation and damage of the liver caused by the growth of fatty tissue over time. Between 2% and 5% of Americans have NASH, which can lead to liver fibrosis and, ultimately, cirrhosis.
Gilead is developing three different drugs to combat NASH: monoclonal antibody simtuzumab, ASK1 inhibitor GS-4997, and FXR agonist GS-9674. Gilead is testing each drug separately, seeking a roughly 20% decrease in liver fat in a series of phase 2 studies (data expected later this year). Then Gilead plans to put the drugs in combination trials, with the goal of finding a cocktail that is maximally effective. Analysts see an effective NASH drug potentially pulling in $10 billion in annual peak sales (in a market that could be valued as highly as $40 billion annually in total).
Gilead isn't the only company playing for keeps in this space, however. Shire 's SHP626 recently snagged an FDA fast-track designation as it entered phase 2 trials. And Intercept Pharmaceuticals ' Ocaliva is in phase 3 trials for NASH, having been recently approved for primary biliary cholangitis. Fortunately, the NASH market appears likely to support multiple drugs, given its potential size -- but there will undoubtedly be pricing wars if more than one company snags FDA approval.
Option 2: Cancer treatments
OK, I'll admit that I'm cheating a bit with this one: Cancer is a pretty broad set of diseases, and Gilead has assets attacking several different treatment angles. Momelotinib, a JAK inhibitor, targets myelofibrosis and should report data from its phase 3 clinical trial later this year. Gilead also has another cancer drug in phase 3 trials: GS-5745 for gastric cancer. The disappointing launch of Zydelig -- which is only approved for a few relapsed cancers after major safety issues derailed additional trials -- was a definite bloody nose for Gilead, but the company has a number of opportunities in earlier-stage drugs that may pay off in spades over the long term.
Among those, perhaps the most exciting is BTK inhibitor GS-4059, which has recently entered phase 1 and is being developed in collaboration with Ono Pharmaceutical . A fellow BTK inhibitor, Imbruvica, is out on the market for a series of blood cancers and has been a big success for partners Pharmacyclics and Johnson & Johnson . In fact, Imbruvica was one of the primary reasons AbbVie shelled out $21 billion for Pharmacyclics earlier this year -- and while the precise details of Gilead's deal with Ono aren't public, it's fair to guess that Gilead picked up GS-4059 for a great deal less than that.
Gilead has plenty of irons in the fire in terms of internal research and development, but the other option -- and, in my mind, the likelier one -- is that Gilead could acquire an outside company. CEO Dr. John Milligan made Gilead's interest in cancer-related mergers and acquisitions clear in the company's most recent quarterly call: "We are committed to oncology, and we continue to be interested in assets, collaborations and partnerships where we could enhance our ability to continue to sell these products." Read that as confirmation that Gilead's actively looking at deals.
And while we don't have peak sales estimates for Gilead's various cancer drugs, if management can build a strong franchise with several blockbusters, they should easily clear $10 billion annually.
More options, too
I've called out what I think are Gilead's biggest opportunities -- but they're far from Gilead's only opportunities. For example: Filgotinib, a drug targeting autoimmune diseases that Gilead picked up in a sweetheart deal last year , has just entered phase 3 trials and could generate peak annual sales of $2 billion or more.
And with $8.8 billion in cash and short-term investments, Gilead has plenty of firepower to surprise us all and push into a new disease area as well. Management have announced their intention to slow share repurchases in the second half of the year to "focus our capital allocation on advancing our R&D opportunities," so I'm sure we'll have lots more to say about all this in the near future. As for me, I'm going to enjoy the ridiculously cheap valuation while I wait for new revenue opportunities to appear.
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. 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 .
Michael Douglass owns shares of Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of and recommends Gilead Sciences (and recommends Johnson & Johnson, too). The Motley Fool has the following options: short October 2016 $85 calls on 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. | In fact, Imbruvica was one of the primary reasons AbbVie shelled out $21 billion for Pharmacyclics earlier this year -- and while the precise details of Gilead's deal with Ono aren't public, it's fair to guess that Gilead picked up GS-4059 for a great deal less than that. Gilead Sciences '(NASDAQ: GILD) meteoric growth came screeching to a halt earlier this year as its hepatitis C drugs, which took the world by storm and generated over $19 billion annually in 2015, saw sales begin to fall. Blame it on a number of factors -- competition, price discounts to expand the patient pool, a changing mix of payers -- but the fact of the matter is that Gilead's top line is falling for the first time in years. | In fact, Imbruvica was one of the primary reasons AbbVie shelled out $21 billion for Pharmacyclics earlier this year -- and while the precise details of Gilead's deal with Ono aren't public, it's fair to guess that Gilead picked up GS-4059 for a great deal less than that. Analysts see an effective NASH drug potentially pulling in $10 billion in annual peak sales (in a market that could be valued as highly as $40 billion annually in total). For example: Filgotinib, a drug targeting autoimmune diseases that Gilead picked up in a sweetheart deal last year , has just entered phase 3 trials and could generate peak annual sales of $2 billion or more. | In fact, Imbruvica was one of the primary reasons AbbVie shelled out $21 billion for Pharmacyclics earlier this year -- and while the precise details of Gilead's deal with Ono aren't public, it's fair to guess that Gilead picked up GS-4059 for a great deal less than that. More options, too I've called out what I think are Gilead's biggest opportunities -- but they're far from Gilead's only opportunities. For example: Filgotinib, a drug targeting autoimmune diseases that Gilead picked up in a sweetheart deal last year , has just entered phase 3 trials and could generate peak annual sales of $2 billion or more. | In fact, Imbruvica was one of the primary reasons AbbVie shelled out $21 billion for Pharmacyclics earlier this year -- and while the precise details of Gilead's deal with Ono aren't public, it's fair to guess that Gilead picked up GS-4059 for a great deal less than that. Gilead also has another cancer drug in phase 3 trials: GS-5745 for gastric cancer. More options, too I've called out what I think are Gilead's biggest opportunities -- but they're far from Gilead's only opportunities. |
26464.0 | 2016-08-29 00:00:00 UTC | Better Buy: GlaxoSmithKline plc vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy-glaxosmithkline-plc-vs-abbvie-2016-08-29 | nan | nan | ABBV Financial Debt to Equity (Quarterly) data by YCharts .
The bottom line is that if Imbruvica fails to turn into the megablockbuster everyone expects, due to either a clinical setback or the entrance of superior BTK inhibitors , AbbVie may not have the wiggle room to change direction due to its highly leveraged balance sheet. And these rather pricey deals for Pharmacyclics and Stemcentrx seem to imply that the drugmaker doesn't have much confidence in its ability to defend Humira's market share once it goes off patent.
Does Glaxo have a franchise-level drug in its arsenal?
Perhaps the main takeaway from Glaxo's recent second-quarter earnings release is that Advair remains the drugmaker's most important product, making up 56.8% of all respiratory revenue and 23% of total pharma sales during the three-month period. That's not particularly good news, since Advair sales are expected to continue to fall by mid- to high-single-digits each quarter moving forward, and the introduction of generics inside the U.S. in 2017 could accelerate this decline.
But there is a silver lining. Glaxo reported that Breo Ellipta's sales have started to pick up in a big way as a result of broader coverage and an expanded label that includes an asthma indication. Specifically, the drug raked in $206 million in the second quarter, putting it on track to hit blockbuster status this year. Breo Ellipta could indeed turn out to be Glaxo's next franchise-level drug, despite its early commercial struggles.
Another encouraging development is that Glaxo has also been getting a major boost from its joint HIV venture ViiV Healthcare in recent quarters. The HIV medications Triumeq and Tivicay, for instance, hauled in a combined $894 million for Glaxo in the second quarter. Therefore, Glaxo should have the time necessary to work through the changing of the guard in its respiratory franchise, so to speak, without any major drop-off in its top line going forward.
Which stock is the better buy?
For dividend investors looking for the safer play, Glaxo seems like your best bet. Although the drugmaker could face some serious problems once generic versions of Advair hit the market in the U.S., Glaxo's more organic approach to growth has undoubtedly helped to diversify its revenue base and set it up for sustained growth.
AbbVie, by contrast, has more question marks than answers as it heads into the patent expiration for Humira later this year. Chief among them, the issue of whether or not Imbruvica can successfully fend off the suite of rival BTK inhibitors being developed right now is a total unknown.
At least with Glaxo, there are some encouraging signs that Breo Ellipta can offset a fair amount of Advair's declining sales, and the company hasn't painted itself into a corner financially to move beyond the patent cliff.
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. 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 Johnson and Johnson. The Motley Fool recommends Moody's. 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. | ABBV Financial Debt to Equity (Quarterly) data by YCharts . The bottom line is that if Imbruvica fails to turn into the megablockbuster everyone expects, due to either a clinical setback or the entrance of superior BTK inhibitors , AbbVie may not have the wiggle room to change direction due to its highly leveraged balance sheet. AbbVie, by contrast, has more question marks than answers as it heads into the patent expiration for Humira later this year. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ABBV Financial Debt to Equity (Quarterly) data by YCharts . The bottom line is that if Imbruvica fails to turn into the megablockbuster everyone expects, due to either a clinical setback or the entrance of superior BTK inhibitors , AbbVie may not have the wiggle room to change direction due to its highly leveraged balance sheet. | ABBV Financial Debt to Equity (Quarterly) data by YCharts . The bottom line is that if Imbruvica fails to turn into the megablockbuster everyone expects, due to either a clinical setback or the entrance of superior BTK inhibitors , AbbVie may not have the wiggle room to change direction due to its highly leveraged balance sheet. AbbVie, by contrast, has more question marks than answers as it heads into the patent expiration for Humira later this year. | ABBV Financial Debt to Equity (Quarterly) data by YCharts . The bottom line is that if Imbruvica fails to turn into the megablockbuster everyone expects, due to either a clinical setback or the entrance of superior BTK inhibitors , AbbVie may not have the wiggle room to change direction due to its highly leveraged balance sheet. AbbVie, by contrast, has more question marks than answers as it heads into the patent expiration for Humira later this year. |
26465.0 | 2016-08-25 00:00:00 UTC | Great Stocks to Get Dividends Every Month | ABBV | https://www.nasdaq.com/articles/great-stocks-get-dividends-every-month-2016-08-25 | nan | nan | Whether you're pulling in a paycheck or living off investments, dividends can be a great way to reel in some cash. But investors usually have to wait months between payments. Many companies dole out dividends in March, June, September and December. If all your payments land in that timetable, your income stream can dry up for long stretches.
To keep the cash flowing, we assembled a bundle of 12 stocks that pays dividends every month, generating income like a steady paycheck. We focused on firms with steady businesses, sturdy balance sheets and a commitment to uphold their payouts. Not all the stocks boast fat yields. But our lower-yielding picks feature strong profit potential, along with room to hike their dividends.
A portfolio of equal stakes in each stock would yield 3.3%. That beats the 2.1% yield of Standard & Poor's 500-stock index and the 1.5% yield of 10-year Treasury bonds. Stocks can fall far more than bonds, of course. But if you stick with this lineup, the payments should roll in. Most of these firms should increase their dividends each year, too.
Symbol: CAH
Price: $84
Yield: 2.2%
Annual dividend rate: $1.80
Price-earnings ratio: 15
Also pays in: April, July, October
Drug distributor Cardinal runs a high-volume, low-profit-margin business that faces heavy pressure from rivals. But Cardinal is taking measures to fire up its growth.
The firm recently acquired Johnson & Johnson's Cordis unit, which makes stents and other cardiology devices. Cardinal expects Cordis to bolster the firm's international sales and boost annual earnings by more than 20 cents per share, or $65 million. Moreover, Cardinal has teamed up with CVS Health (its biggest customer) to buy generic drugs, helping Cardinal negotiate better deals that could lift its profits. Wall Street estimates that profits will climb 8% in the fiscal year that ends in June 2017. As the business improves, the shares should hit $97 over the next year, says Credit Suisse, which rates the stock "outperform."
QUIZ: How Well Do You Know Dividends?
Symbol: ABBV
Price: $66
Yield: 3.4%
Annual dividend rate: $2.28
Price-earnings ratio: 13
Also pays in: May, August, November
AbbVie produces Humira, one of the world's best-selling drugs. Physicians are prescribing Humira for a growing array of illnesses, including rheumatoid arthritis, Crohn's disease and psoriasis. Raking in more than $14 billion in annual sales, Humira accounts for more than half of AbbVie revenues and an even higher proportion of the firm's profits, which are rising steadily.
Unfortunately, Humira's starring role won't last. Its U.S. patent expires at the end of 2016. But because Humira is a complex biotech drug, generic versions will likely take several years to gain traction in the marketplace and may not wind up being much less expensive than Humira. Meanwhile, AbbVie is expanding its roster of drugs to treat blood cancers and other diseases. Wall Street sees earnings growth of 12% this year and 18% in 2017.
Symbol: BA
Price: $134
Yield: 3.3%
Annual dividend rate: $4.36
Price-earnings ratio: 14
Also pays in: June, September, December
Aerospace giant Boeing has hit some turbulence.
Investors fret that demand for its wide-body planes is peaking. Plus, a strong dollar is crimping profits, and low oil prices may delay orders for new aircraft as customers stick with older, less-efficient planes.
Yet Boeing's stock, down 6.1% this year, may already reflect those concerns. The firm's aircraft production backlog remains enormous, with, Boeing says, orders for 5,700 new planes worth $480 billion. Meanwhile, the firm's defense, space and security business looks solid, with sales rising 19% in the first three months of 2016, to nearly $8 billion. All told, Boeing's bears have "overstepped reality," says Deutsche Bank, which expects the stock to reach $160 over the next year.
SEE ALSO: 4 High-Yield Stocks Worth the Risk
Symbol: KO
Price: $44
Yield: 3.2%
Annual dividend rate: $1.40
Price-earnings ratio: 22
Also pays in: December, July, October
Yes, people are drinking less soda, but the soft drink giant can still thrive.
Price increases and expanding sales of bottled water (Dasani), energy drinks (Powerade), juices (Minute Maid, Simply Orange) and other products in its lineup are offsetting some of the decline in soda sales. Coca-Cola is also slimming down. The firm is exiting the capital-intensive bottling business almost entirely, transferring 84,000 employees from its workforce of 123,000 to independent bottlers. The shift will shave about $10 billion from Coca-Cola's revenues by the end of 2017, according to Bank of America Merrill Lynch. But the move will save billions of dollars in overhead and bolster profit margins. Wall Street expects Coca-Cola to report earnings of $8.7 billion in 2017, up 5% from 2016. That ought to please one of the company's biggest cheerleaders, Warren Buffett, whose Berkshire Hathaway owns about 9% of Coke's outstanding shares.
Symbol: AAPL
Price: $104
Yield: 2.2%
Annual dividend rate: $2.28
Price-earnings ratio: 12
Also pays in: February, August, November
Skepticism about Apple runs so high that the stock's price-earnings ratio of 12 is 35% less than the P/E of the average big utility.
Bears argue that Apple's innovation machine has stalled and that its flagship product, the iPhone, won't lure as many customers as expected in China and other key markets, where lower-priced smartphones are making inroads. Yet Apple's competitive strengths remain formidable. Its "ecosystem" of hardware, software and services keeps many customers locked in and coming back for new products. Sales are likely to pick up with the expected September launch of the iPhone 7. Apple is also developing additional revenue streams, such as a new subscription model for app developers and paid search ads on its App Store site. With $233 billion in cash and securities on its balance sheet and access to low-cost debt, Apple's finances provide plenty of firepower for more dividend hikes.
SEE ALSO: 6 Good Dividend Stocks That Yield 5% or More
Symbol: MSFT
Price: $57
Yield: 2.5%
Annual dividend rate: $1.44
Price-earnings ratio: 12
Also pays in: March, September, December
Microsoft tried to make a splash this year by undertaking its biggest acquisition ever--a proposed $26.2 billion deal to buy networking site LinkedIn. Yet the stock hardly budged on the news, partly because Microsoft already makes more than $20 billion a year in profits, vastly more than LinkedIn could kick in. But the stock jumped by more than 5% on the day after Microsoft issued results for its April-June quarter that handily exceeded Wall Street forecasts, with big gains in the firm's cloud-computing business and steady growth in its flagship Office software suite. Profits are likely to keep inching up as Microsoft launches new software products and signs up more customers for its cloud services. All this makes Microsoft a kind of "tech utility" that can deliver steady earnings growth and a rising dividend, which Wall Street expects to increase by 7% over the next year. With the shares up 24% over the past year, the stock may take a breather in the near term. But, helped by a steadily growing disbursement, it should perform well over the long haul.
Symbol: GE
Price: $31
Yield: 3.0%
Annual dividend rate: $0.92
Price-earnings ratio: 21
Also pays in: January, April, October
Few, if any, rivals can match GE's global scale and expertise in assembling products such as aircraft engines, gas and wind turbines, locomotives, and health care imaging machines.
Plus, GE is no longer shackled by its huge financial-services business, which it has mostly sold off. Armed with a stronger balance sheet, GE can now spend more heavily on dividends and stock buybacks, along with acquisitions that could lift its bottom line.
At 21 times estimated profits, GE's stock looks pricey and may not have much appreciation potential in the near term. But the dividend appears to be secure, and analysts estimate that GE will boost the payout to $1.00 per share in 2017 -- a healthy 9% raise.
SEE ALSO: Is There a Bubble in Dividend Stocks?
Symbol: T
Price: $43
Yield: 4.4%
Annual dividend rate: $1.92
Price-earnings ratio: 15
Also pays in: February, May, November
AT&T's purchase of DirecTV last year is boosting results.
Analysts see the telecom giant's revenues rising 12%, to $165 billion this year, with profits climbing 5%, to $17.6 billion. Growth of such magnitude isn't likely to last, but AT&T should still be a solid earner, thanks to new TV services it plans to roll out. To help retain customers, the firm is also offering package deals with unlimited mobile data for subscribers who buy TV service, too. The knock on AT&T is that the stock, selling for about 15 times estimated year-ahead earnings, is pricey relative to its earnings growth. But compared with the paltry yield on Treasuries, the stock's 4.4% yield looks appealing. AT&T's dividend should keep rising, though modestly. Analysts see AT&T lifting the payout by 2% next year.
Symbol: UPS
Price: $108
Yield: 2.9%
Annual dividend rate: $3.12
Price-earnings ratio: 18
Also pays in: March, June, December
One day in the future, drones dispatched by Amazon.com may drop packages on our doorsteps. But that won't happen soon, making UPS a good bet to benefit from people buying more goods online. Delivering more than 4.5 billion packages and documents a year, the firm is constantly finding ways to speed things up, using technology to plan the best routes and squeeze every penny out of each drop-off. Its latest venture: rolling out digital-locker pickup spots at retailers such as 7-Eleven.
Over the long term, UPS will have to fend off FedEx and other rivals, including Amazon, which is adding thousands of trucks to its own delivery fleet. Yet it won't be easy to match UPS's vast global transport network and high-tech logistics services. UPS is more profitable than FedEx and DHL. Even after pumping cash back into the business, UPS should have ample funds to hike its dividend, which has climbed an annualized 10% since its first payout, in 2000.
SEE ALSO: Best Funds for Dividends Other Than Vanguard Dividend Growth
Symbol: OXY
Price: $75
Yield: 4.1%
Annual dividend rate: $3.04
Price-earnings ratio: 88
Also pays in: March, June, December
One of the largest domestic oil producers, Oxy reported big losses as oil prices collapsed. Yet its stock has stayed relatively strong. So has its dividend, which Oxy recently lifted from an annual rate of $3 per share to $3.04 per share.
Conservatively managed, Oxy keeps its debt low, socks away cash that it can later dole out as dividends, and refrains from spending heavily on risky oil or natural gas prospects. With its production costs now falling, the firm can break even and cover its dividend with the per-barrel price of oil in the mid $40s, estimates Merrill Lynch. Oxy is also expanding with a new natural gas plant in the United Arab Emirates and a petrochemicals plant in Texas. Oxy's P/E looks high because earnings are depressed. But analysts see profits rebounding to $1.38 per share in 2017 and continuing to climb from there.
Symbol: VZ
Price: $55
Yield: 4.1%
Annual dividend rate: $2.26
Price-earnings ratio: 14
Also pays in: February, May, August
Bundling packages of phone, internet and TV services is helping Verizon, the second-largest telecom provider, defend its turf against cable companies and its bigger rival, AT&T.
Verizon now controls all of its wireless business (after buying Vodafone's 45% stake in 2014). Verizon has also gone on a spending spree to expand beyond telecom services. The company snapped up AOL and recently announced a deal to buy Yahoo for $4.8 billion. In addition, Verizon plans to buy Fleetmatics, which makes vehicle-tracking software, for $2.4 billion.
Trading at 14 times estimated earnings, the stock isn't cheap in light of a profit-growth forecast of just 3% in 2017. But in a low-yield world, investors are paying up for the kind of stability Verizon offers, with dividends that should climb steadily for years.
SEE ALSO: Great Stocks With Rising Dividends
Symbol: VLO
Price: $52
Yield: 4.6%
Annual dividend rate: $2.40
Price-earnings ratio: 12
Also pays in: March, June, September
The world's largest independent refiner, Valero produces gasoline, ethanol and other products.
With more than half of its production capacity located along the Gulf Coast, Valero has access to a variety of imported and domestic raw materials, such as heavy crude oil and natural gas, at low prices. It's also in a good position to ship refined goods to Latin America, where demand is growing at a healthy clip. Those advantages have helped make Valero one of the lower-cost and more-profitable refiners. It is also conservatively managed, carrying just a modest amount of debt. With the industry now mired in a downturn, Valero's profits have tumbled. But even with earnings expected to slide 65% this year, to $3.24 per share, Valero should rake in more than enough cash to cover its dividend. Analysts see earnings per share rebounding 60% in 2017. If that doesn't pan out and the stock stays flat, investors should still be able to scoop up a 4.6% yield.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Symbol: ABBV Price: $66 Yield: 3.4% Annual dividend rate: $2.28 Price-earnings ratio: 13 Also pays in: May, August, November AbbVie produces Humira, one of the world's best-selling drugs. Raking in more than $14 billion in annual sales, Humira accounts for more than half of AbbVie revenues and an even higher proportion of the firm's profits, which are rising steadily. Meanwhile, AbbVie is expanding its roster of drugs to treat blood cancers and other diseases. | Symbol: ABBV Price: $66 Yield: 3.4% Annual dividend rate: $2.28 Price-earnings ratio: 13 Also pays in: May, August, November AbbVie produces Humira, one of the world's best-selling drugs. Raking in more than $14 billion in annual sales, Humira accounts for more than half of AbbVie revenues and an even higher proportion of the firm's profits, which are rising steadily. Meanwhile, AbbVie is expanding its roster of drugs to treat blood cancers and other diseases. | Symbol: ABBV Price: $66 Yield: 3.4% Annual dividend rate: $2.28 Price-earnings ratio: 13 Also pays in: May, August, November AbbVie produces Humira, one of the world's best-selling drugs. Raking in more than $14 billion in annual sales, Humira accounts for more than half of AbbVie revenues and an even higher proportion of the firm's profits, which are rising steadily. Meanwhile, AbbVie is expanding its roster of drugs to treat blood cancers and other diseases. | Symbol: ABBV Price: $66 Yield: 3.4% Annual dividend rate: $2.28 Price-earnings ratio: 13 Also pays in: May, August, November AbbVie produces Humira, one of the world's best-selling drugs. Raking in more than $14 billion in annual sales, Humira accounts for more than half of AbbVie revenues and an even higher proportion of the firm's profits, which are rising steadily. Meanwhile, AbbVie is expanding its roster of drugs to treat blood cancers and other diseases. |
26466.0 | 2016-08-24 00:00:00 UTC | Why OraSure Technologies, Inc is Jumping Today | ABBV | https://www.nasdaq.com/articles/why-orasure-technologies-inc-jumping-today-2016-08-24 | nan | nan | What : Shares of OraSure Technologies (NASDAQ: OSUR) , a healthcare company focused on diagnostic products and specimen collection devices, are up 14% as of 11:45 a.m. EDT Wednesday after the company announced that it has won a new government contract.
So what: OraSure stated that it has been awarded a contract from the Department of Health and Human Services and BADRA to help fund the development of its rapid Zika virus test. The contract could be worth up to $16.6 million over a six-year period, which includes an upfront commitment of $7 million.
In response to winning the contract CEO Douglas Michels said, "We are grateful to BARDA for making this funding available as it will enable us to complete clinical and other activities required to obtain regulatory approvals for this product." He also added that a fast Zika antibody test would be an important tool in helping to address current and future outbreaks.
Traders appear to be encouraged by the announcements and are bidding up shares accordingly.
Now what: Wednesday's news is most certainly a welcome win for investors, as the recent news out of OraSure hasn't been universally positive.
In July shares took a dive after the company announced that its co-promotion partnership agreement with pharma giant AbbVie (NYSE: ABBV) would be terminated at the end of the year. That took the markets by surprise as the original deal was expected to run through the end of 2019. In addition, OraSure was set up to earn a total of $75 million in exclusivity payments from AbbVie through the life of the contract, but the early termination should greatly reduce that number.
Sales of the company's rapid HCV test grew by a strong 37% last quarter with AbbVie's help, so it's unclear if that strong growth rate will continue once the partnership ends. OraSure did state that it was free to seek other partnership arrangements, but so far no announcements have been made.
Still, Wednesday's news should help advance the company's Zika virus testing research, and it should be seen as a vote of confidence from the U.S. government on OraSure's capabilities and technology. Plus, a small cash infusion and the prospects of more coming in over time is never a bad thing. For that reason, it's hard to blame the markets for bidding up Wednesday.
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Brian Feroldihas 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. | In July shares took a dive after the company announced that its co-promotion partnership agreement with pharma giant AbbVie (NYSE: ABBV) would be terminated at the end of the year. In addition, OraSure was set up to earn a total of $75 million in exclusivity payments from AbbVie through the life of the contract, but the early termination should greatly reduce that number. Sales of the company's rapid HCV test grew by a strong 37% last quarter with AbbVie's help, so it's unclear if that strong growth rate will continue once the partnership ends. | In July shares took a dive after the company announced that its co-promotion partnership agreement with pharma giant AbbVie (NYSE: ABBV) would be terminated at the end of the year. In addition, OraSure was set up to earn a total of $75 million in exclusivity payments from AbbVie through the life of the contract, but the early termination should greatly reduce that number. Sales of the company's rapid HCV test grew by a strong 37% last quarter with AbbVie's help, so it's unclear if that strong growth rate will continue once the partnership ends. | In July shares took a dive after the company announced that its co-promotion partnership agreement with pharma giant AbbVie (NYSE: ABBV) would be terminated at the end of the year. In addition, OraSure was set up to earn a total of $75 million in exclusivity payments from AbbVie through the life of the contract, but the early termination should greatly reduce that number. Sales of the company's rapid HCV test grew by a strong 37% last quarter with AbbVie's help, so it's unclear if that strong growth rate will continue once the partnership ends. | In July shares took a dive after the company announced that its co-promotion partnership agreement with pharma giant AbbVie (NYSE: ABBV) would be terminated at the end of the year. In addition, OraSure was set up to earn a total of $75 million in exclusivity payments from AbbVie through the life of the contract, but the early termination should greatly reduce that number. Sales of the company's rapid HCV test grew by a strong 37% last quarter with AbbVie's help, so it's unclear if that strong growth rate will continue once the partnership ends. |
26467.0 | 2016-08-23 00:00:00 UTC | 7 Healthcare Dividend Stocks for Quality and Security | ABBV | https://www.nasdaq.com/articles/7-healthcare-dividend-stocks-for-quality-and-security-2016-08-23 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to finding great dividend stocks , some sectors are just natural winners. Steady and growing demand, big-time cash flows and large economic moats are hallmarks of these prime dividend stock sectors. Those factors enable some sectors to throw off plenty of big-time dividends.
Source: Will Thomas via Flickr (Modified)
Healthcare stocks meet those requirements and then some.
Demand for treatment continues to grow exponentially as our overall population increases and ages.
Meanwhile, long patent timelines of various drugs, delivery and other medical products provides plenty of stable cash flows. These factors enable healthcare stocks to produce enviable cash flows and earnings, which translate into hefty dividends for their investors.
And the trends propelling the healthcare industry are only getting stronger - there's still plenty of growth in tank for the sector.
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For investors looking to score some quality dividend stocks, the healthcare sector has to be on your radar. With that in mind, here's seven of the best dividend stocks in medicine to buy today.
Healthcare Stocks to Buy: GlaxoSmithKline plc (GSK)
Source: Mike Mozart via Flickr (Modified)
Dividend Yield: 4.99%
When it comes to dividends, Big Pharma offers some of the biggest yields. And the U.K.'s GlaxoSmithKline plc (ADR) (NYSE: GSK ) offers a juicy 4.99% payout.
GSK has a huge portfolio of drugs covering a wide range of products and therapies. And that portfolio of products has been revamped in recent years. The pharma giant recently conducted a multi-step deal with rival Novartis AG (ADR) (NYSE: NVS ) for Novartis' profitable vaccine business, as well as its hefty consumer products portfolio, in exchange for Glaxo's oncology drug unit.
While the cancer drugs have the potential to be profitable down the road, the boring consumer products and vaccines divisions feature steady and predictable growing demand. That's just what GSK needs to turn back the lost revenue tide from a few blockbuster patent expirations.
And speaking of blockbuster drugs, GSK has a more than a few in the works. That includes new HIV/AIDs therapies, respiratory drugs and a few post-split cancer treatments.
For investors, the revamped portfolio and potential new blockbusters will take time to work. And GSK has been managing costs and restructuring to get itself through. With that, this healthcare stock should be able to keep its dividend going until these bets pay off.
Healthcare Stocks to Buy: Johnson & Johnson (JNJ)
Source: Dawn Via Flickr
Dividend Yield: 2.68%
When it comes to healthcare stocks, there's no bigger blue chip than Johnson & Johnson (NYSE: JNJ ), whose empire spans more than 250 operating companies across a variety of healthcare subsectors.
That includes consumer healthcare products and medical devices to advanced oncology and immunology drugs. JNJ really does it all.
And doing it all makes it a pretty stable dividend stock as well.
Thanks to JNJ's multiple product lines , the firm has been able to navigate some tough economic markets over the course of its history. When one of its product lines is suffering, another can pick up the slack. And the fact that JNJ sells its products in more than 60 countries is the icing on the cake. The firm's adjusted earnings have continued to increase for over 32 years based on its deep product line.
All of this has allowed JNJ to become a model of dividend sustainability. JNJ stock currently yields 2.68%, but that yield should continue to increase. JNJ has managed to grow its dividend every year for the last 53 years.
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If you can only buy one dividend stock in the healthcare sector, JNJ has to be it.
Healthcare Stocks to Buy: AbbVie Inc (ABBV)
Source: Black Stripe via Wikimedia (Modified)
Dividend Yield : 3.45%
Biotech stocks and dividend stocks usually don't go hand in hand. But when you're a spinoff of a mega-traditional pharmaceutical - in this case Abbott Laboratories (NYSE: ABT ) - dividends are in your blood.
AbbVie Inc (NYSE: ABBV ) currently yields 3.45% and has managed to grow its payout 42% since it was spun off back in 2013 .
Driving that has been its portfolio of big-time biotech drugs. That includes insane blockbuster Humira. The autoimmune disease medication is currently the best-selling drug on the planet and managed to funnel more than $15 billion in revenues back to ABBV last year.
However, despite owning the best-selling drug, that's still a pretty high yield for a biotech. And that's because the yield comes with a potential hiccup - Humira falling off the patent cliff at the end of 2016 .
This fact - and the huge hit to AbbVie's revenues - has punished the stock. But it could be the chance for dividend hunters. ABBV has a rich patent portfolio and numerous drugs in late-stage trials. More importantly, management is confident that method-of-use patents will help keep Humira generics away for several more years.
That should give ABBV time to come up with a solution.
Healthcare Stocks to Buy: CVS Health Corp (CVS)
Source: Mike Mozart via Flickr
Dividend Yield: 1.75%
When people think of CVS Health Corp (NYSE: CVS ), they think of its drug stores. And they should at first.
CVS operates nearly 9,600 of these drug stores . And its recent deal with Target Corporation (NYSE: TGT ) will add another 1,700 stores to its mix. The pharmacies continue to churn out regular profits for CVS. As does the company's MinuteClinic-branded line of urgent care facilities.
But the real name of the game - and the driver or current and future growth - is its pharmacy benefit management business. As a pharmacy benefit manager, CVS basically negotiates the prices between producers and buyers of drugs. That can be private citizens, hospitals, other pharmacies or even the Federal government.
CVS is currently the second-largest benefits manager and that huge size has afforded it plenty of stable and growing revenues. And that should continue, as the larger you are in this business, the better deals you can negotiate on drug prices. That's important as rising drug costs are a major concern for pretty much every one.
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In the end, that should help drive CVS' dividend. The 1.75% yield may not seem like much at first, but CVS has grown that payout by 750% in the last ten years .
Healthcare Stocks to Buy: Welltower Inc (HCN)
Source: sima dimitric via Flickr
Dividend Yield: 4.5%
It stands to reason that if we are in need of more doctors, hospitals and other healthcare solutions, we need more places to conduct those services.
So when it comes to finding great healthcare-focused dividend stocks, the firms that own the hospitals, doctors' offices and senior living facilities might make the best plays.
And none are bigger than Welltower Inc (NYSE: HCN ).
The former HealthCare REIT owns a whopping 1,500 different healthcare-related properties . This includes a host of senior housing, long-term post-acute properties, hospitals, outpatient medical buildings and doctors' offices. The real beauty is that HCN just owns the buildings, not the underlying businesses that rent them. It doesn't have to deal with insurance or Medicare etc. It just sits back and collects a check for owning the property.
That's a remarkable place to be. HCN continues to see rising funds-from-operation across its portfolio. And since it's structured as a real estate investment trust, HCN is required to kick back much of that to investors as dividends. The firm has had great dividend growth since its founding in the 1970s and with this quarter's payment, Welltower will have delivered its 181st consecutive quarterly cash dividend
When it comes to investing in medical real estate, HCN is the best for dividend stock hunters.
Healthcare Stocks to Buy: Quest Diagnostics (DGX)
Source: Heipei Flickr
Dividend Yield: 1.9%
Quest Diagnostics Inc (NYSE: DGX ) is at the crossroads of several bullish catalysts that should help propel the firm's dividends further down the road.
First, is the DGX's core business of diagnostic testing. We've all had blood work or similar tests done by our doctors. Most of the time, that blood work is done by an off-site testing facility like DGX. As many hospitals and physicians look to lower their own costs, the rise in hiring out a firm like Quest is growing as well. For Quest, many of these testing services come with cheap fixed-costs and high margins.
Quest has taken this diagnostic testing and lab work to the next level. DGX now offers clinical trials for pharmaceutical and biotech firms. Like physicians, it's often cheaper for a drug developer to hire someone else to do the grunt work of trials. For DGX, it's another chance for it to grab stable revenues.
The proof is in the pudding. The continued mantra of saving money has helped DGX quickly become a dividend star. It only initiated a payout in 2012, but since then it's grown its payout every year. Last year, investors saw a 14% jump. This should continue as more businesses use Quest's services.
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Ultimately, DGX is one of the best dividend stocks for growth in the healthcare sector.
Healthcare Stocks to Buy: Vanguard Health Care ETF (VHT)
Source: Images Money via Flickr
Dividend Yield : 1.3%
Perhaps the best strategy to own healthcare stocks, is to buy them all. The Vanguard Health Care ETF (NYSEARCA: VHT ) is the best way to do just that.
VHT tracks the MSCI US Investable Market Health Care 25/50 Index . That underlying index basically gives investors exposure to the entire U.S. healthcare market. This includes small- mid- and large-cap stocks. DaVita HealthCare Partners Inc (NYSE: DVA ) and Pfizer Inc. (NYSE: PFE ) are just some of the varied holdings for the exchange-traded fund.
That wide range of holdings does throw off a 1.3% dividend yield. While that's about the same as a Treasury bond, VHT has delivered on the returns front as well. Over the last 10 years, VHT has managed to return 11.31% annually. So you're looking at bond-like dividends with a hefty side of growth. That combination makes the ETF a powerful play for those investors seeking dividend stocks as well as capital gains obsessed portfolios.
All in all, VHT is simply the best way to capture the entire spectrum of healthcare stocks. And since it's a Vanguard fund, expenses for the ETF run a dirt cheap 0.12%.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
The post 7 Healthcare Dividend Stocks for Quality and Security 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. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield : 3.45% Biotech stocks and dividend stocks usually don't go hand in hand. AbbVie Inc (NYSE: ABBV ) currently yields 3.45% and has managed to grow its payout 42% since it was spun off back in 2013 . The autoimmune disease medication is currently the best-selling drug on the planet and managed to funnel more than $15 billion in revenues back to ABBV last year. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield : 3.45% Biotech stocks and dividend stocks usually don't go hand in hand. AbbVie Inc (NYSE: ABBV ) currently yields 3.45% and has managed to grow its payout 42% since it was spun off back in 2013 . The autoimmune disease medication is currently the best-selling drug on the planet and managed to funnel more than $15 billion in revenues back to ABBV last year. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield : 3.45% Biotech stocks and dividend stocks usually don't go hand in hand. AbbVie Inc (NYSE: ABBV ) currently yields 3.45% and has managed to grow its payout 42% since it was spun off back in 2013 . The autoimmune disease medication is currently the best-selling drug on the planet and managed to funnel more than $15 billion in revenues back to ABBV last year. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) Source: Black Stripe via Wikimedia (Modified) Dividend Yield : 3.45% Biotech stocks and dividend stocks usually don't go hand in hand. AbbVie Inc (NYSE: ABBV ) currently yields 3.45% and has managed to grow its payout 42% since it was spun off back in 2013 . The autoimmune disease medication is currently the best-selling drug on the planet and managed to funnel more than $15 billion in revenues back to ABBV last year. |
26468.0 | 2016-08-22 00:00:00 UTC | XLV, MDT, ABBV, AGN: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-mdt-abbv-agn-etf-inflow-alert-2016-08-22 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $52.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 176,465,324 to 177,165,324). Among the largest underlying components of XLV, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, AbbVie Inc. (Symbol: ABBV) is up about 0.8%, and Allergan PLC (Symbol: AGN) is higher by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $56.63 per share, with $76.00 as the 52 week high point - that compares with a last trade of $74.76. 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 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 Medtronic PLC (Symbol: MDT) is up about 0.6%, AbbVie Inc. (Symbol: ABBV) is up about 0.8%, and Allergan PLC (Symbol: AGN) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $52.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 176,465,324 to 177,165,324). 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 Medtronic PLC (Symbol: MDT) is up about 0.6%, AbbVie Inc. (Symbol: ABBV) is up about 0.8%, and Allergan PLC (Symbol: AGN) is higher by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $56.63 per share, with $76.00 as the 52 week high point - that compares with a last trade of $74.76. 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 XLV, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, AbbVie Inc. (Symbol: ABBV) is up about 0.8%, and Allergan PLC (Symbol: AGN) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $52.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 176,465,324 to 177,165,324). 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 $56.63 per share, with $76.00 as the 52 week high point - that compares with a last trade of $74.76. | Among the largest underlying components of XLV, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, AbbVie Inc. (Symbol: ABBV) is up about 0.8%, and Allergan PLC (Symbol: AGN) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $52.1 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 176,465,324 to 177,165,324). 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 $56.63 per share, with $76.00 as the 52 week high point - that compares with a last trade of $74.76. |
26469.0 | 2016-08-22 00:00:00 UTC | Johnson & Johnson Could Become the First Company to Reach a $1 Trillion Valuation | ABBV | https://www.nasdaq.com/articles/johnson-johnson-could-become-first-company-reach-1-trillion-valuation-2016-08-22 | nan | nan | Image source: Getty Images.
1. Product inelasticity
Economic cycles are inevitable in the U.S. economy. Although upswings tends to last a bit longer than downswings when we're talking about bull and bear markets, the U.S. economy has entered a recession, on average, about every six years since 1929. Johnson & Johnson, though, provides products that are considered inelastic, meaning whether the economy is running on all cylinders or struggling, it tends to generate a consistent amount of growth and cash flow. In plainer terms, it's pretty close to recession-proof.
Think about this from another angle. The consumer can't choose when they're going to get sick, or what type of illness they'll develop. That alone would imply that two of J&J's three operating segments -- pharmaceuticals and medical devices -- should do well in a robust or recessionary economy. J&J's consumer product segment is the only area where some weakness could be observed, but even here we're talking about consumer health products like Band-Aids that tend to be mostly resistant to downward pricing and demand pressures.
A number of companies with larger current market valuations than J&J are more susceptible to recessions, which could allow Johnson & Johnson to close this valuation gap over time.
Image source: Getty Images.
2. High-growth drugs
Between 2009 and mid-2014, J&J brought 14 novel therapies to market, of which seven became blockbuster drugs (i.e., annual sales of $1 billion or more). Looking forward, J&J is forecasting that by 2019, it'll submit new drug applications for up to 10 drugs it believes have blockbuster potential. One of the most recent of these is Darzalex, a multiple myeloma drug that demonstrated an intriguing response rate of 29% in patients who had taken a median of five prior lines of therapy and progressed. Label expansion could easily push Darzalex into the category with more than $1 billion in sales per year.
Another fast-growing blockbuster in J&J's arsenal is blood cancer drug Imbruvica, which is co-owned with AbbVie (NYSE: ABBV) . J&J originally partnered with Pharmacyclics on the drug's development more than four years ago. Imbruvica today already has a few label indications under its belt, and it may have more to come. Peak annual sales could touch upwards of $7 billion, which bodes well for AbbVie, which purchased Pharmacyclics, and J&J.
What investors need to understand is that these blockbusters from J&J have a long runway of a decade or more before generic competition is introduced. J&J can use the cash flow generated from these drugs to do more internal research, as well as seek collaborations or bolt-on-style acquisitions to complement its pipeline.
Likewise, J&J's pricing power looks to remain strong since Congress could run into many roadblocks in an attempt to cap or control prescription drug pricing.
Image source: Getty Images.
3. Long-tail medical device growth
According to the U.S. Census Bureau, America's elderly population is on track to nearly double to 83.7 million people between 2012 and 2050. As life expectancies lengthen, the reliance of the elderly on the healthcare network is also presumably going to increase. That's where J&J's medical devices come into play. J&J's leading position in orthopaedics via hip and knee replacements, as well as spine and trauma surgery, could be a major catalyst in the decades to come.
Don't overlook the impact of the Affordable Care Act in improving access to medical care for the general population. In just two-and-a-half years, we've witnessed the uninsured rate fall by more than six percentage points to 11%, according to Gallup. This would represent an all-time low reading for the national pollster. If patients have easier access to medical care, J&J could be a continued beneficiary.
However, it's important to keep in mind that J&J is traditionally not a fast-growing, high-volatility stock. It has no chance to double in valuation overnight. However, over time, and with continued drug and device innovation, J&J does have the chance to push forward toward a $1 trillion valuation -- maybe even before any other company.
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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 .
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.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.The Motley Fool owns shares of and recommends Alphabet (A and C shares), Apple, and Johnson and Johnson. It also has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. 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. | Another fast-growing blockbuster in J&J's arsenal is blood cancer drug Imbruvica, which is co-owned with AbbVie (NYSE: ABBV) . Peak annual sales could touch upwards of $7 billion, which bodes well for AbbVie, which purchased Pharmacyclics, and J&J. Although upswings tends to last a bit longer than downswings when we're talking about bull and bear markets, the U.S. economy has entered a recession, on average, about every six years since 1929. | Another fast-growing blockbuster in J&J's arsenal is blood cancer drug Imbruvica, which is co-owned with AbbVie (NYSE: ABBV) . Peak annual sales could touch upwards of $7 billion, which bodes well for AbbVie, which purchased Pharmacyclics, and J&J. High-growth drugs Between 2009 and mid-2014, J&J brought 14 novel therapies to market, of which seven became blockbuster drugs (i.e., annual sales of $1 billion or more). | Another fast-growing blockbuster in J&J's arsenal is blood cancer drug Imbruvica, which is co-owned with AbbVie (NYSE: ABBV) . Peak annual sales could touch upwards of $7 billion, which bodes well for AbbVie, which purchased Pharmacyclics, and J&J. A number of companies with larger current market valuations than J&J are more susceptible to recessions, which could allow Johnson & Johnson to close this valuation gap over time. | Another fast-growing blockbuster in J&J's arsenal is blood cancer drug Imbruvica, which is co-owned with AbbVie (NYSE: ABBV) . Peak annual sales could touch upwards of $7 billion, which bodes well for AbbVie, which purchased Pharmacyclics, and J&J. A number of companies with larger current market valuations than J&J are more susceptible to recessions, which could allow Johnson & Johnson to close this valuation gap over time. |
26470.0 | 2016-08-22 00:00:00 UTC | After Hours Most Active for Aug 22, 2016 : ABBV, CSCO, XOM, LDOS, AMRN, SYF, BSM, SYMC, OAS, TLT, QQQ, AMAT | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-aug-22-2016-abbv-csco-xom-ldos-amrn-syf-bsm-symc-oas-tlt-qqq-amat | nan | nan | The NASDAQ 100 After Hours Indicator is down -.2 to 4,808.36. The total After hours volume is currently 13,316,555 shares traded.
The following are the most active stocks for the after hours session :
AbbVie Inc. ( ABBV ) is -0.1 at $66.91, with 1,765,577 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $1.2. ABBV's current last sale is 96.97% of the target price of $69.
Cisco Systems, Inc. ( CSCO ) is -0.04 at $30.59, with 869,037 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Exxon Mobil Corporation ( XOM ) is unchanged at $87.99, with 784,075 shares traded. XOM's current last sale is 92.62% of the target price of $95.
Leidos Holdings, Inc. ( LDOS ) is unchanged at $40.35, with 734,636 shares traded. LDOS's current last sale is 70.17% of the target price of $57.5.
Amarin Corporation PLC ( AMRN ) is unchanged at $3.15, with 692,300 shares traded. As reported in the last short interest update the days to cover for AMRN is 8.521342; this calculation is based on the average trading volume of the stock.
Synchrony Financial ( SYF ) is unchanged at $27.27, with 645,606 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 $0.71. As reported by Zacks, the current mean recommendation for SYF is in the "buy range".
Black Stone Minerals, L.P. ( BSM ) is unchanged at $15.62, with 514,420 shares traded. As reported by Zacks, the current mean recommendation for BSM is in the "buy range".
Symantec Corporation ( SYMC ) is unchanged at $23.74, with 514,046 shares traded. SYMC's current last sale is 103.22% of the target price of $23.
Oasis Petroleum Inc. ( OAS ) is unchanged at $9.87, with 498,354 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $-0.16. OAS's current last sale is 82.25% of the target price of $12.
iShares 20+ Year Treasury Bond ETF ( TLT ) is unchanged at $139.88, with 454,156 shares traded. This represents a 18.54% increase from its 52 Week Low.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.03 at $117.38, with 420,917 shares traded. This represents a 38.52% increase from its 52 Week Low.
Applied Materials, Inc. ( AMAT ) is unchanged at $29.15, with 356,831 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Apr 2017. The consensus EPS forecast is $0.52. As reported by Zacks, the current mean recommendation for AMAT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is -0.1 at $66.91, with 1,765,577 shares traded. ABBV's current last sale is 96.97% of the target price of $69. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is -0.1 at $66.91, with 1,765,577 shares traded. ABBV's current last sale is 96.97% of the target price of $69. The total After hours volume is currently 13,316,555 shares traded. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is -0.1 at $66.91, with 1,765,577 shares traded. ABBV's current last sale is 96.97% of the target price of $69. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is -0.1 at $66.91, with 1,765,577 shares traded. ABBV's current last sale is 96.97% of the target price of $69. The NASDAQ 100 After Hours Indicator is down -.2 to 4,808.36. |
26471.0 | 2016-08-21 00:00:00 UTC | Here's the Best Dividend Stock in Big Pharma | ABBV | https://www.nasdaq.com/articles/heres-best-dividend-stock-big-pharma-2016-08-21 | nan | nan | PFE Dividend data by YCharts
Pfizer is the clear loser here. In 2009, the company cut its dividend in half to clear a path for its enormous Wyeth acquisition. Over the past decade, its investors have seen payouts rise just 25%, accompanied by a dissapointing 57.5% decline in earnings per share. Over the same period, J&J's earnings per share rose 42.6% along with a 113% increase in dividend payments.
Turning toward sustainability, based on the familiar payout ratio metric (the percentage of earnings required to make dividend payments), Pfizer appears to be in trouble, with payments at 92.58% of trailing earnings.
PFE Payout Ratio (TTM) data by YCharts
Reported earnings are subject to numerous non-cash charges, however, and savvy dividend investors also take into account the cash dividend payout ratio, measured as the percentage of free cash flow (minus dividend payments to preferred shares) required to make payments to common shares. Based on this sustainability measurement, all three distributions appear adequately funded based on trailing cash flows.
What could drive growth
Of course, to keep raising payments, these Big Pharmas need to grow their bottom lines. Worldwide spending on cancer medicines reached $107 billion last year and is expected to pass the $150 billion mark by 2020. AbbVie bought its way into this field with a $21 billion acquisition of Pharmacyclics and its rights to half of blood cancer drug Imbruvica's sales. Johnson & Johnson owns the other half but risked only $150 million up front in its 2011 deal with Imbruvica's discoverer.
In the second quarter, J&J recorded $295 million in Imbruvica sales, representing a 91.6% increase over the previous-year period, and a 13% increase over the previous quarter. The acceleration is partly due to a recent label expansion that made Imbruvica capsules the first chemotherapy-free option for newly diagnosed patients with the most common form of leukemia. The drug is expected to add more than $5 billion annually to each company's top line at its peak.
Pfizer's oncology program is also making strides, but in a much larger indication. A woman born in the U.S. today has about a 1-in-8 chance of eventually receiving a breast cancer diagnosis, and many will receive Pfizer's Ibrance. The capsules first earned FDA approval last February as a part of a first-line combination therapy for postmenopausal women newly diagnosed with a difficult-to-treat form of the disease. This February, the regulator expanded its label to include all women with the same form of the disease that progressed following a hormonal therapy.
Image source: Pfizer.
The first approval alone made Ibrance a smash hit, and the more recent expansion is fueling the fire. Second-quarter sales of Ibrance suggest an annual run rate above $2 billion, as it races toward peak annual sales estimates of $5 billion.
What might hinder growth
When it comes to intellectual-property rights, drug patents are incredibly short lived. Pharmas must discover or acquire new products constantly as old ones lose their source of pricing power.
This will become a huge problem for AbbVie, but exactly when is unclear. Sales of AbbVie's Humira in the first half of this year suggest an annual run rate of $15.45 billion, an increase of 16% over the previous year period. Its continued success is remarkable, but the anti-inflammatory accounted for 62.3% of the company's total revenue in the first half. About 64% of Humira sales, and practically all its recent growth, comes from the U.S., where its composition-of-matter patent (the bulletproof one) is set to expire in December. That might allow competitor Amgen to market its biosimilar version of Humira as soon as next year. However, AbbVie has more than 70 additional patents for Humira that could keep competitors out until 2022.
Turning to Pfizer, one of its largest revenue streams, the Prevnar vaccine, isn't in danger of losing patent protection until 2026, but second-quarter sales of $1.26 billion were 16.3% lower than the previous-year period. The company blames the decline on the fact that a high percentage of over-65 adults are already vaccinated.
Pfizer's first largest revenue stream is pain reliever Lyrica, but this probably won't be the case for much longer. Since losing EU exclusivity in 2014, its sales in the region have plummeted, and its main U.S. patent should expire in 2018. Second-quarter Lyrica sales of $1.26 billion increased 3% over the previous-year period, but $1.05 billion came from regions where it maintains exclusivity. At about 9.6% of total revenue, Lyrica won't be as significant in terms of impending losses to Pfizer as Humira will be to AbbVie, but this and other patent expirations will create serious headwinds in the coming years.
Johnson & Johnson also faces loss of exclusivity for a key product, Remicade. Biosimilar competition from partners Celltrion and Pfizer is already eating into Remicade sales outside the U.S. and could begin at home as early as October.
Image source: Johnson & Johnson.
The $1.78 billion J&J recorded in second-quarter Remicade sales comprised about 20.6% of the pharmaceutical segment's sales but just 9.6% of the healthcare conglomerate's total revenue for the period. Its consumer-goods and medical-device segments provide a great deal of insulation from drug patent expirations. Johnson & Johnson can boast 32 consecutive years of adjusted earnings growth, and diversification is largely responsible for its consistency.
With a yield of about 2.6%, J&J isn't that far behind AbbVie and Pfizer, which are both offering 3.4% at recent prices. Given the stronger headwinds its smaller peers face, J&J's payments will probably outpace both drugmakers in the long run, making it the best dividend stock in Big Pharma.
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. 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 .
Cory Renauer owns shares of Johnson and Johnson. You can follow Cory on Twitter, @TMFang4apples , or connect with him on LinkedIn for more healthcare industry insight.
The Motley Fool owns shares of and 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. | At about 9.6% of total revenue, Lyrica won't be as significant in terms of impending losses to Pfizer as Humira will be to AbbVie, but this and other patent expirations will create serious headwinds in the coming years. AbbVie bought its way into this field with a $21 billion acquisition of Pharmacyclics and its rights to half of blood cancer drug Imbruvica's sales. This will become a huge problem for AbbVie, but exactly when is unclear. | Sales of AbbVie's Humira in the first half of this year suggest an annual run rate of $15.45 billion, an increase of 16% over the previous year period. AbbVie bought its way into this field with a $21 billion acquisition of Pharmacyclics and its rights to half of blood cancer drug Imbruvica's sales. This will become a huge problem for AbbVie, but exactly when is unclear. | Sales of AbbVie's Humira in the first half of this year suggest an annual run rate of $15.45 billion, an increase of 16% over the previous year period. AbbVie bought its way into this field with a $21 billion acquisition of Pharmacyclics and its rights to half of blood cancer drug Imbruvica's sales. This will become a huge problem for AbbVie, but exactly when is unclear. | Sales of AbbVie's Humira in the first half of this year suggest an annual run rate of $15.45 billion, an increase of 16% over the previous year period. At about 9.6% of total revenue, Lyrica won't be as significant in terms of impending losses to Pfizer as Humira will be to AbbVie, but this and other patent expirations will create serious headwinds in the coming years. AbbVie bought its way into this field with a $21 billion acquisition of Pharmacyclics and its rights to half of blood cancer drug Imbruvica's sales. |
26472.0 | 2016-08-19 00:00:00 UTC | Zacks Value Investor Highlights: AbbVie, Berry Plastics, Hawaiian Holdings, Toll Brothers and Pulte | ABBV | https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-abbvie-berry-plastics-hawaiian-holdings-toll-brothers-and | nan | nan | For Immediate Release
Chicago, IL - August 19, 2016 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:( https://www.zacks.com/stock/news/228412/how-value-investors-can-buy-growth )
How Value Investors Can Buy Growth
Welcome to Episode #5 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
This week, Tracey discusses how value investors can also invest in growth by using the PEG ratio, which combines a low P/E ratio with a company's growth rate.
Most value investors look for PEGs under 1.0 so Tracey ran a screen on Zacks.com, while also looking for earnings growth over 10%, to find stocks. She combined it with the Zacks Rank and came up with over 100 companies.
She picked three companies she thought were the most interesting.
Value stocks with Big Growth:
1. AbbVie Inc. ( ABBV ) has a PEG of 0.9.
2. Berry Plastics ( BERY ) has a PEG of 0.98
3. Hawaiian Holdings ( HA ) has a PEG of 0.7
What makes these 3 companies Tracey's top picks this week?
She discusses their fundamentals and growth trajectories in the podcast.
In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers ( TOL ) and Pulte ( PHM ).
Watch out for Value Traps
Not all cheap stocks have earnings growth though. Be careful.
Tracey explored the difference between a cheap stock and a value trap in the podcast below.
Learn the difference.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers ( TOL ) and Pulte ( PHM ). AbbVie Inc. ( ABBV ) has a PEG of 0.9. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) has a PEG of 0.9. In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers ( TOL ) and Pulte ( PHM ). | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) has a PEG of 0.9. In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers ( TOL ) and Pulte ( PHM ). | AbbVie Inc. ( ABBV ) has a PEG of 0.9. In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers ( TOL ) and Pulte ( PHM ). Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report To read this article on Zacks.com click here. |
26473.0 | 2016-08-19 00:00:00 UTC | 3 Cheap Dividend Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-cheap-dividend-stocks-you-can-buy-right-now-2016-08-19 | nan | nan | Image source: Getty Images.
The S&P 500 is trading near its all-time high, but that doesn't mean there aren't bargains to be found in the markets. In fact, I'd argue that several high-profile companies are trading for cheap valuations right now, and many of them even offer up big dividend yields.
Want proof? Let's look at three dividend-paying stocks currently trading for below market multiples. These are names I think you can safely purchase today.
1. Amgen
The biotech sector has been under a lot of pressure for the better part of a year, crushing the valuations of even the strongest and most profitable companies in the sector. That makes right now a great time to go bargain-hunting in the space, and one stock that should be at the top of any dividend lover's list is the grandaddy of them all -- Amgen (NASDAQ: AMGN) .
Image source: Amgen.
Amgen has been around for decades. Its longevity might make you assume that it's no longer a growth company, but you'd be wrong. Amgen's recent results show that the company's days of profitable growth are far from over. Revenue grew by 6% year over year in the most recent quarter, thanks in large part to the continued strength of Enbrel, the company's best-selling autoimmune-disease drug. Sales of Enbrel grew by 10% in the period, and when you add in the contributions from newer drugs to the mix, such as Prolix, XGEVA, and Sensipar, they more than offset waning sales for the company's legacy drugs, such as Neupogen and Epogen.
Those results are all the more impressive when you consider that Repatha, Amgen's next-generation cholesterol-busing drug, continues to contribute very little to the top line. Many physicians are holding off prescribing it until data comes out later this year on a study of long-term cardiovascular outcomes. If that data shows that using Repatha lowers the risk of heart attack or stroke, then sales could take off in a hurry. Many analysts believe that this drug could eventually reach $4 billion in peak sales, so it's one to watch.
Despite the company's continued growth and upside potential if Repatha turns out to be a winner, Amgen's shares are trading for only about 16 times full-year earnings estimates. Income lovers will also appreciate the company's market-beating 2.3% yield, especially since it's poised for continued fast growth in the years ahead. I think that's a compelling combination for a company projected to grow earnings by almost 10% annually in the years to come.
2. Wells Fargo
The market continues to view big bank stocks with skepticism, which makes sense, given that the Federal Reserve continues to keep interest rates near historic lows. That's depressing all banks' ability to drive higher net interest margins, which in turn is making it tough to increase profitability and create strong returns on equity.
Image source: Pixabay.
Despite the tough backdrop, banking giant Wells Fargo (NYSE: WFC) continues to prove itself worthy of investment. Last quarter, the company reported a 4% increase in deposits and a 9% jump in average loans, which helped to drive a 4% boost in overall revenue. Importantly, the company's credit quality remains exceptionally strong, with net chargeoffs of 0.39% of average loans. That's an encouraging result, especially when you consider that many banks have had to deal will a slew of defaults related to weakness in the energy sector.
Wells Fargo also continues to run one of the most efficient big banks in the country. Its efficiency ratio came in at 58.1% last quarter, which is within its guidance range of 55% to 59%, and it's a number that very few other banks can come close to matching . That helps the bank to remain highly profitable, boasting a respectable return on equity of 11.7% during the period.
Once interest rates start to tick up again, I have high confidence that Wells Fargo's profitability will continue to grow from here, which should help to lift its share price. While we wait for that to happen, the company will continue to use its profits to buy back shares and pay out a juicy dividend, which is currently yielding 3.1%. With shares trading for less than 12 times earnings and at a price-to-book value of 1.35, this perennial Warren Buffet favorite is a good choice right now.
3. AbbVie
It's unusual for a company that promises double-digit growth and a market-beating dividend yield to trade at a discount to the S&P 500, but that's exactly the situation that exists today with pharma giant AbbVie (NYSE: ABBV) .
Since being spun off from the Dividend AristocratAbbott Labs in 2013, the company has been on a heck of growth tear. The company's revenue and profits continue to march higher at impressive rates, thanks largely to its megablockbuster drug Humira, a drug that treats a variety of autoimmune diseases. Humira sales topped $14 billion in 2015, giving it the title of best-selling drug on the planet.
Image source: AbbVie.
The company's recent results show that the growth story remains fully intact, too. Revenue increased by a strong 17.9% last quarter, thanks to continued double-digit growth of Humira complemented by triple-digit growth of newer drugs such as Imbruvica, which treats a variety of cancers, and Viekira Pak, AbbVie's hepatitis-C cure. That strong growth powered the company's bottom line forward by 16%, causing management to raise its full-year EPS outlook to a new range of $4.73 to $4.83.
If the company can hit that target -- which I believe it can -- then shares are currently trading for only about 14 times full year earnings. With analysts projecting bottom-line growth of nearly 17% over the coming five years and the company offering a market-beating dividend yield of 3.4%, AbbVie is cheap stock that growth and income investors can learn to love.
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. 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 .
Brian Feroldi owns shares of Wells Fargo.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 owns shares of and recommends Wells Fargo. 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 It's unusual for a company that promises double-digit growth and a market-beating dividend yield to trade at a discount to the S&P 500, but that's exactly the situation that exists today with pharma giant AbbVie (NYSE: ABBV) . Image source: AbbVie. Revenue increased by a strong 17.9% last quarter, thanks to continued double-digit growth of Humira complemented by triple-digit growth of newer drugs such as Imbruvica, which treats a variety of cancers, and Viekira Pak, AbbVie's hepatitis-C cure. | With analysts projecting bottom-line growth of nearly 17% over the coming five years and the company offering a market-beating dividend yield of 3.4%, AbbVie is cheap stock that growth and income investors can learn to love. AbbVie It's unusual for a company that promises double-digit growth and a market-beating dividend yield to trade at a discount to the S&P 500, but that's exactly the situation that exists today with pharma giant AbbVie (NYSE: ABBV) . Image source: AbbVie. | With analysts projecting bottom-line growth of nearly 17% over the coming five years and the company offering a market-beating dividend yield of 3.4%, AbbVie is cheap stock that growth and income investors can learn to love. AbbVie It's unusual for a company that promises double-digit growth and a market-beating dividend yield to trade at a discount to the S&P 500, but that's exactly the situation that exists today with pharma giant AbbVie (NYSE: ABBV) . Image source: AbbVie. | With analysts projecting bottom-line growth of nearly 17% over the coming five years and the company offering a market-beating dividend yield of 3.4%, AbbVie is cheap stock that growth and income investors can learn to love. AbbVie It's unusual for a company that promises double-digit growth and a market-beating dividend yield to trade at a discount to the S&P 500, but that's exactly the situation that exists today with pharma giant AbbVie (NYSE: ABBV) . Image source: AbbVie. |
26474.0 | 2016-08-17 00:00:00 UTC | J&J's (JNJ) Depression Treatment Esketamine Gets BTD | ABBV | https://www.nasdaq.com/articles/jjs-jnj-depression-treatment-esketamine-gets-btd-2016-08-17 | nan | nan | Johnson & Johnson'sJNJ Janssen Research & Development, LLC announced that the FDA has granted Breakthrough Therapy Designation (BTD) to esketamine, an experimental antidepressant treatment. The designation was granted for major depressive disorder with imminent risk for suicide.
This is the second indication for which esketamine got BTD in the U.S. Esketamine had previously got this designation in Nov 2013 for treatment-resistant depression. Esketamine is currently in phase III development for treatment-resistant depression.
According to information provided by the Centers for Disease Control and Prevention, there are more than 41,000 suicides each year in the U.S. with many resulting from untreated or poorly treated major depression.
We note that J&J recently got BTD for two other drugs as well. In Jul 2016, the company's cancer treatment, Darzalex (daratumumab) got the designation for use in combination with standard of care regimens for multiple myeloma patients.
Earlier in Jun 2016, the company and its partner AbbVie Inc. ABBV got a fourth BTD for Imbruvica. The FDA granted BTD to Imbruvica for the treatment of chronic graft-versus-host-disease (cGVHD) after one or more lines of systemic therapy have failed. Imbruvica was also granted Orphan Drug Designation for the indication.
BTD helps fasten the development and review of drugs which are being evaluated for the treatment of serious or life-threatening conditions and where preliminary clinical evidence indicates that the drug may be substantially better than existing treatments on clinically significant endpoint(s).
JOHNSON & JOHNS Price
JOHNSON & JOHNS Price | JOHNSON & JOHNS Quote
J&J is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include Actelion Ltd. ALIOF and Geron Corporation GERN - both are Zacks Rank #1 (Strong Buy) stocks.
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JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
GERON CORP (GERN): Free Stock Analysis Report
ACTELION LTD (ALIOF): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in Jun 2016, the company and its partner AbbVie Inc. ABBV got a fourth BTD for Imbruvica. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & Johnson'sJNJ Janssen Research & Development, LLC announced that the FDA has granted Breakthrough Therapy Designation (BTD) to esketamine, an experimental antidepressant treatment. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier in Jun 2016, the company and its partner AbbVie Inc. ABBV got a fourth BTD for Imbruvica. JOHNSON & JOHNS Price JOHNSON & JOHNS Price | JOHNSON & JOHNS Quote J&J is a Zacks Rank #3 (Hold) stock. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier in Jun 2016, the company and its partner AbbVie Inc. ABBV got a fourth BTD for Imbruvica. Johnson & Johnson'sJNJ Janssen Research & Development, LLC announced that the FDA has granted Breakthrough Therapy Designation (BTD) to esketamine, an experimental antidepressant treatment. | Earlier in Jun 2016, the company and its partner AbbVie Inc. ABBV got a fourth BTD for Imbruvica. Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GERON CORP (GERN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & Johnson'sJNJ Janssen Research & Development, LLC announced that the FDA has granted Breakthrough Therapy Designation (BTD) to esketamine, an experimental antidepressant treatment. |
26475.0 | 2016-08-17 00:00:00 UTC | How Value Investors Can Buy Growth | ABBV | https://www.nasdaq.com/articles/how-value-investors-can-buy-growth-2016-08-17 | nan | nan | Welcome to Episode #5 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
This week, Tracey discusses how value investors can also invest in growth by using the PEG ratio, which combines a low P/E ratio with a company's growth rate.
Most value investors look for PEGs under 1.0 so Tracey ran a screen on Zacks.com, while also looking for earnings growth over 10%, to find stocks. She combined it with the Zacks Rank and came up with over 100 companies.
She picked three companies she thought were the most interesting.
Value stocks with Big Growth:
1. AbbVie Inc. (ABBV) has a PEG of 0.9.
2. Berry Plastics (BERY) has a PEG of 0.98
3. Hawaiian Holdings (HA) has a PEG of 0.7
What makes these 3 companies Tracey's top picks this week?
She discusses their fundamentals and growth trajectories in the podcast.
In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers (TOL) and Pulte (PHM).
Watch out for Value Traps
Not all cheap stocks have earnings growth though. Be careful.
Tracey explored the difference between a cheap stock and a value trap in the podcast below.
Learn the difference.
Find out why Tracey loves to buy value stocks with growth in this week's podcast.
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now. Click here to learn more>>
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers (TOL) and Pulte (PHM). AbbVie Inc. (ABBV) has a PEG of 0.9. Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. (ABBV) has a PEG of 0.9. In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers (TOL) and Pulte (PHM). | Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. (ABBV) has a PEG of 0.9. In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers (TOL) and Pulte (PHM). | AbbVie Inc. (ABBV) has a PEG of 0.9. In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers (TOL) and Pulte (PHM). Click to get this free report HAWAIIAN HLDGS (HA): Free Stock Analysis Report PULTE GROUP ONC (PHM): Free Stock Analysis Report TOLL BROTHERS (TOL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BERRY PLASTICS (BERY): Free Stock Analysis Report To read this article on Zacks.com click here. |
26476.0 | 2016-08-17 00:00:00 UTC | After Hours Most Active for Aug 17, 2016 : ACWI, F, CSCO, SPLS, GE, WDC, ABBV, VCSH, KO, QQQ, XRX, MT | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-aug-17-2016-acwi-f-csco-spls-ge-wdc-abbv-vcsh-ko-qqq-xrx-mt-2016 | nan | nan | The NASDAQ 100 After Hours Indicator is down -1.29 to 4,804.16. The total After hours volume is currently 25,399,992 shares traded.
The following are the most active stocks for the after hours session :
iShares MSCI ACWI Index Fund ( ACWI ) is -0.1323 at $59.05, with 4,414,902 shares traded. This represents a 20.41% increase from its 52 Week Low.
Ford Motor Company ( F ) is unchanged at $12.39, with 3,408,325 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 $0.4. F's current last sale is 88.5% of the target price of $14.
Cisco Systems, Inc. ( CSCO ) is -0.37 at $30.35, with 1,746,353 shares traded. Investopedia Reports: Cisco Rumors: Massive Layoffs Coming Soon
Staples, Inc. ( SPLS ) is +0.1337 at $8.80, with 1,229,441 shares traded. Dow Jones Business News Reports: Staples Swings to Loss, to Close 50 Stores This Year
General Electric Company ( GE ) is -0.01 at $31.28, with 1,158,975 shares traded. GE's current last sale is 90.67% of the target price of $34.5.
Western Digital Corporation ( WDC ) is unchanged at $44.73, with 741,684 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2017. The consensus EPS forecast is $1.11. As reported by Zacks, the current mean recommendation for WDC is in the "buy range".
AbbVie Inc. ( ABBV ) is unchanged at $66.83, with 735,102 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $1.2. ABBV's current last sale is 96.86% of the target price of $69.
Vanguard Short-Term Corporate Bond ETF ( VCSH ) is unchanged at $80.79, with 707,828 shares traded. This represents a 2.59% increase from its 52 Week Low.
Coca-Cola Company (The) ( KO ) is -0.08 at $43.98, with 680,074 shares traded. KO's current last sale is 87.96% of the target price of $50.
PowerShares QQQ Trust, Series 1 ( QQQ ) is unchanged at $117.26, with 675,256 shares traded. This represents a 38.38% increase from its 52 Week Low.
Xerox Corporation ( XRX ) is +0.0847 at $9.76, with 501,518 shares traded. XRX's current last sale is 88.77% of the target price of $11.
ArcelorMittal ( MT ) is -0.0504 at $6.29, with 500,069 shares traded. As reported by Zacks, the current mean recommendation for MT 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 $66.83, with 735,102 shares traded. ABBV's current last sale is 96.86% of the target price of $69. Investopedia Reports: Cisco Rumors: Massive Layoffs Coming Soon Staples, Inc. ( SPLS ) is +0.1337 at $8.80, with 1,229,441 shares traded. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie Inc. ( ABBV ) is unchanged at $66.83, with 735,102 shares traded. ABBV's current last sale is 96.86% of the target price of $69. | AbbVie Inc. ( ABBV ) is unchanged at $66.83, with 735,102 shares traded. ABBV's current last sale is 96.86% of the target price of $69. 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 $66.83, with 735,102 shares traded. ABBV's current last sale is 96.86% of the target price of $69. The NASDAQ 100 After Hours Indicator is down -1.29 to 4,804.16. |
26477.0 | 2016-08-16 00:00:00 UTC | These 3 Dividend Growth ETFs Deserve Your Attention | ABBV | https://www.nasdaq.com/articles/these-3-dividend-growth-etfs-deserve-your-attention-2016-08-16 | nan | nan | Today’s investors are increasingly focused on high yield stocks and bonds to enhance their portfolio income stream. This can often lead to asymmetric risk appetite in certain volatile areas of the global investment landscape.
Yet, one characteristic that is often overlooked is the advantage of quality companies that have consistently grown their dividends on a year-over-year basis. These stocks can offer an attractive counterpoint with differing risk characteristics than a traditional high yield or broad market benchmark.
There are several diversified ETFs in this category that solely look for stocks with steady and incremental income enhancements.
The largest exchange-traded fund in this class is the Vanguard Dividend Appreciation ETF (VIG). This conventional index fund has $22.2 billion dedicated to 185 large and mid-cap U.S. stocks with a history of annual dividend increases.
Despite the use of the word “dividend” in its name, VIG only offers a 30-day SEC yield of 2.09%. That’s markedly similar to the 2.00% yield on the SPDR S&P 500 ETF (SPY). Investors considering this ETF won’t be in it for the yield today as much as the fundamental stock selection criteria and income growth over time.
The screening criteria for VIG skews its portfolio heavily towards industrial and consumer staples companies. Top holdings include well-known names such as: Johnson and Johnson (JNJ), Microsoft Corp (MSFT), and PepsiCo Inc (PEP).
The overweight positioning in top performing areas of the market has helped VIG take a noticeable lead on SPY since the beginning of 2016. This dividend growth index just recently hit new all-time highs as well.
Another seasoned competitor in this arena is the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). The aristocrats index focuses exclusively on companies in the S&P 500 Index that have grown their dividends for at least 25 consecutive years. Currently there are 50 individual holdings screened for this critera. This includes lesser known stocks such as Abbvie Inc (ABBV) and WW Grainger Inc (GWW).
The NOBL index is equal weighted and limits any one sector exposure to 30% of the total portfolio. Rebalancing occurs on a quarterly basis to ensure index criteria limits are adhered to. Similar to VIG, this fund has the majority of its underlying stock allocation in the consumer staples and industrial sectors.
Those who are looking for a more diversified option may want to consider the iShares Core Dividend Growth ETF (DGRO). DGRO takes a more expansive approach by screening for large, mid, and small-cap companies with at least five years of annual dividend increases.
The end result is a portfolio of more than 400 stocks, a slightly higher 30-day SEC yield of 2.39%, and more disperse sector exposure. The DGRO portfolio still includes mega-cap companies like JNJ and MSFT, in addition to a wide variety of other smaller U.S. companies.
The combination of these factors, alongside the minimal 0.12% expense ratio, is why DGRO can be considered for inclusion as a core ETF portfolio holding.
The Bottom Line
The ETF universe is increasingly becoming a crowded field of niche indexes and multi-factor methodologies. Nevertheless, the dividend growth category has proven to be a simple and reliable screening factor for high quality companies with a penchant for enhancing shareholder income over time.
The funds listed above may be suitable as either core building blocks or tactical themes to expand the scope of your current equity allocation. Each offers a differentiated index methodology that may appeal to a wide variety of investors based on their individual needs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This includes lesser known stocks such as Abbvie Inc (ABBV) and WW Grainger Inc (GWW). These stocks can offer an attractive counterpoint with differing risk characteristics than a traditional high yield or broad market benchmark. Investors considering this ETF won’t be in it for the yield today as much as the fundamental stock selection criteria and income growth over time. | This includes lesser known stocks such as Abbvie Inc (ABBV) and WW Grainger Inc (GWW). Today’s investors are increasingly focused on high yield stocks and bonds to enhance their portfolio income stream. The screening criteria for VIG skews its portfolio heavily towards industrial and consumer staples companies. | This includes lesser known stocks such as Abbvie Inc (ABBV) and WW Grainger Inc (GWW). Today’s investors are increasingly focused on high yield stocks and bonds to enhance their portfolio income stream. The aristocrats index focuses exclusively on companies in the S&P 500 Index that have grown their dividends for at least 25 consecutive years. | This includes lesser known stocks such as Abbvie Inc (ABBV) and WW Grainger Inc (GWW). Today’s investors are increasingly focused on high yield stocks and bonds to enhance their portfolio income stream. The aristocrats index focuses exclusively on companies in the S&P 500 Index that have grown their dividends for at least 25 consecutive years. |
26478.0 | 2016-08-15 00:00:00 UTC | 3 Breakout Beauties to Buy – GPRO COST ABBV | ABBV | https://www.nasdaq.com/articles/3-breakout-beauties-to-buy-gpro-cost-abbv-2016-08-15 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks are breaking out across the board today, and size matters not. The large-cap laden S&P 500 is popping to new highs as well as the small-cap focused Russell 2000 .
Source: Flickr
The bulls couldn't have scripted it any better. Last week's pause allowed equities to digest their recent gains while setting the stage for further upside. And with this morning's pop, it appears the next leg higher may be upon us.
Breakout setups are a staple for active traders, as they signal a low-risk opportunity to climb aboard uptrends. Once a stock is finally able to muster the strength to breach resistance, we often see upside follow-through as short sellers run for cover and sidelined bulls pile on.
9 Stocks to Buy That Will Sprint Past Everything Else
Traders scouring the landscape for breakout stocks over the weekend were greeted with more than a few beauties. I've selected three of the best for today's missive.
3 Breakout Stocks to Buy: GoPro Inc (GPRO)
Source: OptionsAnalytix
GoPro Inc ( GPRO ), long since left for dead, is rising once more.
Spurred by recent earnings that were slightly better than expected, GPRO stock has been on the mend. Since carving out a 52-week low at $8.62 in May, shares are up 80%. The rousing resurrection has ushered GPRO back above all its moving averages, and that's saying something.
It's been a year since the action camera manufacturer sat above the 200-day moving average - and back then shares were north of $50.
Last week's pullback is being bought with aggression here. GPRO is up over 8.5% this morning making it one of the best-performing stocks in the market. With near-term resistance a stone's throw away, consider GPRO a prime breakout stock.
Buy shares over $15.
3 Breakout Stocks to Buy: Costco Wholesale Corporation (COST)
Source: OptionsAnalytix
Next up, we have Costco Wholesale Corporation ( COST ), the king of bulk buying.
COST stock has been on a tear for years now. After last month's moonshot, shares have been coiling nicely just beneath all-time highs. Persistent demand is bound to deliver a breakout in the near future.
The high base developing over the past six weeks is a thing of beauty. Any and all selling sorties have been snuffed out in short order. And now that the 20-day and 50-day moving averages have caught up, the time for a breakout is nigh.
7 Dividend Stocks That Really Crank Out the Cash
Volume patterns are supporting the bulls here with zero distribution days in recent weeks.
Buy COST stock over $170.
3 Breakout Stocks to Buy: AbbVie Inc (ABBV)
Source: OptionsAnalytix
AbbVie Inc ( ABBV ) rounds us out with a stellar breakout. The biotech sector has been rocking recently, returning stocks like ABBV back into uptrends.
While AbbVie has yet to reclaim all that was lost during last year's biotech beating, it's getting close. With all-time highs a few dollars away and a rousing uptrend now in place, ABBV stock has a great chance of re-testing its prior heights in the months to come.
Last week's high base in the breakout stock set the stage for today's pop. Shares of ABBV are a buy here.
At the time of this writing Tyler Craig had no positions in any of the aforementioned securities.
The post 3 Breakout Beauties to Buy - GPRO COST 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. | With all-time highs a few dollars away and a rousing uptrend now in place, ABBV stock has a great chance of re-testing its prior heights in the months to come. 3 Breakout Stocks to Buy: AbbVie Inc (ABBV) Source: OptionsAnalytix AbbVie Inc ( ABBV ) rounds us out with a stellar breakout. The biotech sector has been rocking recently, returning stocks like ABBV back into uptrends. | 3 Breakout Stocks to Buy: AbbVie Inc (ABBV) Source: OptionsAnalytix AbbVie Inc ( ABBV ) rounds us out with a stellar breakout. The biotech sector has been rocking recently, returning stocks like ABBV back into uptrends. While AbbVie has yet to reclaim all that was lost during last year's biotech beating, it's getting close. | 3 Breakout Stocks to Buy: AbbVie Inc (ABBV) Source: OptionsAnalytix AbbVie Inc ( ABBV ) rounds us out with a stellar breakout. The biotech sector has been rocking recently, returning stocks like ABBV back into uptrends. While AbbVie has yet to reclaim all that was lost during last year's biotech beating, it's getting close. | Shares of ABBV are a buy here. The post 3 Breakout Beauties to Buy - GPRO COST ABBV appeared first on InvestorPlace . 3 Breakout Stocks to Buy: AbbVie Inc (ABBV) Source: OptionsAnalytix AbbVie Inc ( ABBV ) rounds us out with a stellar breakout. |
26479.0 | 2016-08-13 00:00:00 UTC | Prices for These 4 Top-Selling Prescription Drugs Have More Than Doubled Since 2010 | ABBV | https://www.nasdaq.com/articles/prices-these-4-top-selling-prescription-drugs-have-more-doubled-2010-2016-08-13 | nan | nan | Image source: Getty Images.
We certainly don't have to look far to find instances of questionable drug-pricing practices. Last year, the so-called "Bad Boy of Pharma," Martin Shkreli, attempted to raise the price of an acquired therapeutic known as Daraprim by more roughly 5,500% without changing the formulation or manufacturing process one iota. Not long thereafter, Valeant Pharmaceuticals was in the Congressional crosshairs after fessing up to increasing the price on two acquired cardiovascular products by 525% and 212% despite not altering the formulation or changing the manufacturing process. Instances like this have many consumers believing that drugmakers may be completely out of touch with reality when setting prices on their therapeutics.
Prescription drug prices are soaring
But here's the real shock: Huge price increases aren't limited to Pharma's Bad Boy or the highly troubled Valeant. Steady price hikes have become a reality for nearly all U.S. pharmaceutical consumers.
According to a Reuters report released in April, which examined pricing data over a five-year period using 2014 sales figures from IMS Health and proprietary pricing data from Truven Health Analytics, four top-selling drugs in the U.S. had their prices more than doubled between the end of 2010 and present day, while another six popular drugs absorbed a minimum price increase of 54%. Altogether, sales of these 10 top-selling therapeutics rose by 44% to $54 billion between 2011 and 2014, but prescription volume for these therapies actually fell 22% per IMS Health data.
Here's the list of these top-10 dru gs, per Reuters:
Table by author based on data source: Reuters. Price changes reflective since Dec. 31, 2010.
It's worth mentioning that Reuters data is based on wholesale costs, meaning it doesn't factor in the gross-to-net discounting that drugmakers and pharmacy-benefit managers work out. This data is a highly guarded secret among drugmakers, but it will obviously have some impact on the scope of the noted price increases. However, when the data was presented to the eight drugmakers listed above, none apparently objected to it, according to Reuters.
Image source: Getty Images.
Prices for these four popular drugs have more than doubled since the end of 2010
AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Secondly, and more importantly, Humira's $14 billion in annual sales is a result of the Food and Drug Administration approving the drug in nine separate label indications. Having so many approved indications allows Humira to stand out as a special anti-inflammatory drug in a crowded space, pushing physicians to prescribe it, and consumers to ask for it. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter.
Image source: Getty Images.
Secondly, drugmakers aren't just covering their costs to develop a single drug that's made it to market. They're looking to cover the costs to develop hundreds, or even thousands, of drugs that never made it past the discovery stage, or out of preclinical and clinical trials. They're also attempting to cover the costs of marketing their drug, as well as of protecting their intellectual property through legal means. With so many experimental drugs failing to make it to pharmacy shelves, drugmakers tend to pile on the price hikes to ensure they have substantial capital to cover their expenses.
Third, drugmakers face few repercussions for dramatically increasing their drug prices. Insurance formularies rarely exclude more than a handful of drugs for fear of chasing their members to a competing network. This leaves most insurance companies and pharmacy-benefit managers to simply grin and bear price hikes, or, as often happens, to pass them along to the patient.
Finally, the speed by which drugs are approved and hit pharmacy shelves in the U.S. works in the favor of drugmakers. As soon as the FDA approves a drug, it can be legally sold in pharmacies. In the European Union, for contrast, drugmakers are required to negotiate pricing terms with each member nation after receiving an approval from the broad-based European Medicines Agency. This means quicker access to drugs for U.S. consumers -- but at a hefty price.
These inherent advantages for U.S. drugmakers are unlikely to change without a major overhaul of the system by lawmakers on Capitol Hill. Until that happens, we can likely expect prescription drug costs to handily outpace the rate of inflation, and for drugmakers like AbbVie, Amgen, Teva, and AstraZeneca to keep raking in the dough.
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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 .
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 owns shares of and recommends Johnson and Johnson and Valeant Pharmaceuticals. It also recommends 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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. |
26480.0 | 2016-08-12 00:00:00 UTC | Prices for These 4 Top-Selling Prescription Drugs Have More Than Doubled Since 2010 | ABBV | https://www.nasdaq.com/articles/prices-these-4-top-selling-prescription-drugs-have-more-doubled-2010-2016-08-12 | nan | nan | Image source: Getty Images.
We certainly don't have to look far to find instances of questionable drug-pricing practices. Last year, the so-called "Bad Boy of Pharma," Martin Shkreli, attempted to raise the price of an acquired therapeutic known as Daraprim by more roughly 5,500% without changing the formulation or manufacturing process one iota. Not long thereafter, Valeant Pharmaceuticals was in the Congressional crosshairs after fessing up to increasing the price on two acquired cardiovascular products by 525% and 212% despite not altering the formulation or changing the manufacturing process. Instances like this have many consumers believing that drugmakers may be completely out of touch with reality when setting prices on their therapeutics.
Prescription drug prices are soaring
But here's the real shock: Huge price increases aren't limited to Pharma's Bad Boy or the highly troubled Valeant. Steady price hikes have become a reality for nearly all U.S. pharmaceutical consumers.
According to a Reuters report released in April, which examined pricing data over a five-year period using 2014 sales figures from IMS Health and proprietary pricing data from Truven Health Analytics, four top-selling drugs in the U.S. had their prices more than doubled between the end of 2010 and present day, while another six popular drugs absorbed a minimum price increase of 54%. Altogether, sales of these 10 top-selling therapeutics rose by 44% to $54 billion between 2011 and 2014, but prescription volume for these therapies actually fell 22% per IMS Health data.
Here's the list of these top-10 dru gs, per Reuters:
Table by author based on data source: Reuters. Price changes reflective since Dec. 31, 2010.
It's worth mentioning that Reuters data is based on wholesale costs, meaning it doesn't factor in the gross-to-net discounting that drugmakers and pharmacy-benefit managers work out. This data is a highly guarded secret among drugmakers, but it will obviously have some impact on the scope of the noted price increases. However, when the data was presented to the eight drugmakers listed above, none apparently objected to it, according to Reuters.
Image source: Getty Images.
Prices for these four popular drugs have more than doubled since the end of 2010
AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Secondly, and more importantly, Humira's $14 billion in annual sales is a result of the Food and Drug Administration approving the drug in nine separate label indications. Having so many approved indications allows Humira to stand out as a special anti-inflammatory drug in a crowded space, pushing physicians to prescribe it, and consumers to ask for it. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter.
Image source: Getty Images.
Secondly, drugmakers aren't just covering their costs to develop a single drug that's made it to market. They're looking to cover the costs to develop hundreds, or even thousands, of drugs that never made it past the discovery stage, or out of preclinical and clinical trials. They're also attempting to cover the costs of marketing their drug, as well as of protecting their intellectual property through legal means. With so many experimental drugs failing to make it to pharmacy shelves, drugmakers tend to pile on the price hikes to ensure they have substantial capital to cover their expenses.
Third, drugmakers face few repercussions for dramatically increasing their drug prices. Insurance formularies rarely exclude more than a handful of drugs for fear of chasing their members to a competing network. This leaves most insurance companies and pharmacy-benefit managers to simply grin and bear price hikes, or, as often happens, to pass them along to the patient.
Finally, the speed by which drugs are approved and hit pharmacy shelves in the U.S. works in the favor of drugmakers. As soon as the FDA approves a drug, it can be legally sold in pharmacies. In the European Union, for contrast, drugmakers are required to negotiate pricing terms with each member nation after receiving an approval from the broad-based European Medicines Agency. This means quicker access to drugs for U.S. consumers -- but at a hefty price.
These inherent advantages for U.S. drugmakers are unlikely to change without a major overhaul of the system by lawmakers on Capitol Hill. Until that happens, we can likely expect prescription drug costs to handily outpace the rate of inflation, and for drugmakers like AbbVie, Amgen, Teva, and AstraZeneca to keep raking in the dough.
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. 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 .
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 owns shares of and recommends Johnson and Johnson and Valeant Pharmaceuticals. It also recommends 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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. | Prices for these four popular drugs have more than doubled since the end of 2010 AbbVie's Humira, an anti-inflammatory drug used to treat plaque psoriasis and rheumatoid arthritis, is the current best-selling drug in the world for two reasons. First, we have AbbVie's apparent ability to hike Humira's sale price with ease. Sales of Humira accounted for $4.15 billion of AbbVie's $6.43 billion in product sales during the second quarter. |
26481.0 | 2016-08-12 00:00:00 UTC | AbbVie a Top 25 Dividend Giant With 3.41% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-top-25-dividend-giant-341-yield-abbv-2016-08-12 | nan | nan | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $4.13B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 3.41% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points.
The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/13/2016. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $4.13B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 3.41% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $4.13B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 3.41% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/13/2016. | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $4.13B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 3.41% yield, according to the most recent Dividend Channel''DividendRank'' report. The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/13/2016. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. | The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/13/2016. AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $4.13B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 3.41% yield, according to the most recent Dividend Channel''DividendRank'' report. |
26482.0 | 2016-08-08 00:00:00 UTC | Notable ETF Outflow Detected - DGRO, ABBV, AMGN, UPS | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-dgro-abbv-amgn-ups-2016-08-08 | 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 Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $33.5 million dollar outflow -- that's a 5.3% decrease week over week (from 22,650,000 to 21,450,000). Among the largest underlying components of DGRO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.9%, Amgen Inc (Symbol: AMGN) is down about 0.7%, and United Parcel Service Inc (Symbol: UPS) is higher by about 0.1%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average:
Looking at the chart above, DGRO's low point in its 52 week range is $22.75 per share, with $28.22 as the 52 week high point - that compares with a last trade of $28.10. 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 DGRO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.9%, Amgen Inc (Symbol: AMGN) is down about 0.7%, and United Parcel Service Inc (Symbol: UPS) is higher by about 0.1%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $22.75 per share, with $28.22 as the 52 week high point - that compares with a last trade of $28.10. 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 DGRO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.9%, Amgen Inc (Symbol: AMGN) is down about 0.7%, and United Parcel Service Inc (Symbol: UPS) is higher by about 0.1%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $22.75 per share, with $28.22 as the 52 week high point - that compares with a last trade of $28.10. 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 DGRO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.9%, Amgen Inc (Symbol: AMGN) is down about 0.7%, and United Parcel Service Inc (Symbol: UPS) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $33.5 million dollar outflow -- that's a 5.3% decrease week over week (from 22,650,000 to 21,450,000). For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $22.75 per share, with $28.22 as the 52 week high point - that compares with a last trade of $28.10. | Among the largest underlying components of DGRO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.9%, Amgen Inc (Symbol: AMGN) is down about 0.7%, and United Parcel Service Inc (Symbol: UPS) is higher by about 0.1%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $22.75 per share, with $28.22 as the 52 week high point - that compares with a last trade of $28.10. 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). |
26483.0 | 2016-08-04 00:00:00 UTC | Finding Value In The S&P 500: 9 Healthcare Dividend Growth Stocks: Part 1 | ABBV | https://www.nasdaq.com/articles/finding-value-sp-500-9-healthcare-dividend-growth-stocks-part-1-2016-08-04 | nan | nan | By Chuck Carnevale :
Introduction
Most everyone would agree that the stock market as measured by the S&P 500 is not cheap today. However, there might be a great deal of disagreement regarding precisely how overvalued the S&P 500 currently is. Nevertheless, I would agree that in the general sense, stocks are not exactly bargains today. This might especially be true regarding best-of-breed blue-chip dividend growth stocks. Low interest rates have enhanced the attraction for high-quality dividend-paying stocks.
On the other hand, suggesting that the S&P 500 is fully valued or even overvalued, is not the same as saying that all stocks in the S&P 500 are overvalued. As I've often stated, I believe it is a market of stocks and not a stock market. Additionally, I would also confidently state that it is also a market of various sectors as well. In this regard, there will be times when certain sectors are in favor while others are out of favor. Consequently, even in an overheated market, it is not unusual to find companies in specific sectors that are out of favor at the same time. Furthermore, this would also apply to certain companies in various subsectors within the larger sector.
The bottom line for me is that I never make individual common stock investment decisions based on where I think the level of the overall market is. Instead, I believe in looking for value when and wherever I can find it. Since I believe in building a stock portfolio one company at a time, it logically follows that I also believe in analyzing stocks one company at a time. Simply stated, I invest based on my determination and evaluation of the fundamental value I would be receiving from investing in the individual company I am scrutinizing.
The Commonsense Benefits of Sound Valuation
Long-running bull markets, like the one we have been experiencing over the past seven or eight years, has a tendency to elicit overconfidence and even complacency. The longer stocks go up, the more confident people tend to become. This concept has recently hit home with me by reading startling comments by dividend growth investors that I highly respect. For example, several comments have promoted and supported the notion that the strong just keep getting stronger. They use this refrain to justify a willingness to pay high valuations for best-of-breed dividend growth stocks. I believe this is a serious mistake for reasons I will next present.
The concept of only being willing to invest in even the greatest of companies at or below sound valuation is mathematically supported. For starters, with any given amount of money, you will purchase more shares of a great company at a lower valuation than you will at a higher valuation. Owning more shares over the long run will lead to more dividend income and greater capital appreciation.
Moreover, when you invest at lower valuations, each share that you purchase will have a higher current dividend yield than had you purchased it at a higher valuation. So not only do you get more shares at lower valuations, but each share also provides you a higher current yield. In the long run, this pays off handsomely, in addition to simple math, it is also common sense. On the other hand, in matters of investing, common sense is often not all that common.
But most importantly, the willingness to overpay for even the best company either ignores or denies the inevitable reality that a company's stock price will eventually move into alignment with fundamental value. In other words, when a stock is undervalued based on fundamentals, it will inevitably move up to fundamental value - and vice versa. Consequently, to me at least, it seems prudent and intelligent to only invest in any company, no matter its quality, at times when its valuation is sound and attractive.
The reader should note the use of the plural "times." In other words, I am not suggesting perfect timing because I consider that virtually impossible. Instead, there will be a period or periods of time when a stock is valued at sound levels. However, over those periods of time there will still be volatility. Therefore, there will be short periods of time when valuation might get a little better or a little worse. In other words, a soundly valued stock could drop in price temporarily over the short run, or immediately rise a little in price. Nevertheless, the important point is that you initially purchased it at a sound valuation regardless of what happens over the short term. In the long run, this will work for your benefit as long as fundamentals remain intact.
Nine Attractive S&P 500 Healthcare Dividend Growth Stocks
There are over 50 healthcare stocks in the S&P 500. However, there are numerous subsectors within the larger broader healthcare sector. Consequently, a little more than approximately 10% of the names in the S&P 500 are healthcare companies. However, that does not follow that 10% of the S&P 500 is comprised of healthcare. S&P 500 index is a weighted index.
Moreover, of the 50+ healthcare stocks in the S&P 500, they also come in many different flavors. Some are pure growth stocks, some are dividend growth stocks. Additionally, some offer higher yields and lower growth while others offer lower yield and higher growth. My point being, that choices should be made according to the individual investor's own goals and objectives.
With this article I will be sharing my preliminary research on nine reasonably valued dividend paying S&P 500 stocks in the healthcare sector. However, I do want to point out that some of these names are attractive for their current yield while others more for total return. Nevertheless, I leave it up to the reader to decide if any of these companies are worthy of conducting further research. The following portfolio review lists these nine research candidates in order of highest dividend yield to lowest - and lists additional fundamental metrics and attributes on each:
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F.A.S.T. Graphsand Fundamentals Underlying Numbers Review
The following earnings and price correlated F.A.S.T. Graphs and FUN Graphs on each of these nine research candidates illustrate why I was attracted to learning more about these companies. First of all, I was interested in finding investable attractively valued dividend growth stocks in the healthcare sector. Whenever I am conducting preliminary research prior to a more comprehensive effort, there are certain fundamentals that I personally like to evaluate.
Of course, the relationship of stock price to earnings is my first check. If the stock appears reasonably valued on that basis, I am motivated and willing to dig deeper. Therefore, I offer an earnings and price correlated F.A.S.T. Graphs on each candidate.
When looking for dividend paying stocks specifically, I like to examine cash flow and free cash flow per share relative to dividends paid. This gives me a quick overview of how well the dividends are covered. Consequently, my second graph on each candidate provides a FUN Graph on each of these important metrics over the past five years.
Since I understand that I can learn from the past, but only invest in the future, I also find it useful to review consensus analyst estimates over the next few years and over the longer three- to five-yeartime frame. Therefore, utilizing the "Custom" forecasting calculator I present a quick look at analyst expectations on each company.
Finally, since future profitability is what I'm most concerned with, I also like to examine gross and net profit margins and return on equity. Therefore, the final graph on each research candidate reviews those important metrics over the past five years. Although I will not do it for all of the following research candidates, I will interject appropriate commentary where I think it's necessary.
AbbVie, Inc. ( ABBV )
Below is a short business description courtesy of Morningstar:
AbbVie is offered as a fairly valued high-yield dividend growth stock. The only negative is the high debt-to-capital ratio. However, as seen below, the company produces strong cash flow and free cash flow more than adequate to cover its dividend and support its debt.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin(( GPM )), Net Profit Margin (( NPM )), Return On Equity (ROE)
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AmerisourceBergen Corporation ( ABC )
Below is a short business description courtesy of Morningstar:
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
AmerisourceBergen saw the complete elimination of its net profit margin in 2015 due to non-recurring headwinds of acquisitions and a DOD settlement. However, adjusted operating results remained strong. FAST Graphs subscribers can see the effects of these headwinds by drawing a graph utilizing GAAP accounting (diluted earnings metric).
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Amgen, Inc. ( AMGN )
Below is a short business description courtesy of Morningstar:
Amgen is moderately overvalued currently. However, it would only take a modest pullback for this stock to be attractive and sound.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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Anthem, Inc. (ANTM)
Below is a short business description courtesy of Morningstar:
I believe that Anthem is currently undervalued due to the controversy surrounding its Cigna deal. However, I believe that risk is already reflected in the company's low valuation.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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Cardinal Health, Inc. (CAH)
Below is a short business description courtesy of Morningstar:
Cardinal Health appears moderately overvalued, but only by a little. Consequently, even a small pullback would make this stock attractive, in my opinion. The reader should note that this represents a clear example of an overvalued stock moving back to fair value as previously discussed.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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Gilead Sciences, Inc. (GILD)
Below is a short business description courtesy of Morningstar:
Gilead is offered based on the potential for a P/E expansion to more reasonable levels. However, the company's growth prospects are very vague. Nevertheless, this biotechnology company is extremely cheap at these levels, regardless of future growth.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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McKesson Corporation (MCK)
Below is a short business description courtesy of Morningstar:
McKesson represents another example of the pitfalls of investing in a great company when it is overvalued. This company is overvalued for part of 2013, most of 2014, and into the late spring of 2015. However, the inevitable movement in price down to fair value and below was swift.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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Perrigo Company plc (PRGO)
Below is a short business description courtesy of Morningstar:
Perrigo is offered as a potential P/E ratio expansion candidate. Although the company looks extremely undervalued based on its historical earnings growth, earnings growth more recently has faltered, which appears to be the source of the drop in stock price.
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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Universal Health Services, Inc. (UHS)
Below is a short business description courtesy of Morningstar:
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Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps)
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Gross Profit Margin, Net Profit Margin, Return On Equity (ROE)
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Summary and Conclusions
With this article, I've attempted to identify nine S&P 500 healthcare constituents that appeared reasonably valued in today's overheated market. I am personally conducting deeper research on each of the ones that I do not already have a position in. However, I believe it's important that the reader conduct their own research and due diligence and determine if any of these names are appropriate relative to their own goals and objectives. In part 2, I will be sharing research candidates in the growth category.
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Disclosure: Long ABBV, ABC, AMGN, GILD, MCK
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
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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. | Disclosure: Long ABBV, ABC, AMGN, GILD, MCK Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. AbbVie, Inc. ( ABBV ) Below is a short business description courtesy of Morningstar: AbbVie is offered as a fairly valued high-yield dividend growth stock. The Commonsense Benefits of Sound Valuation Long-running bull markets, like the one we have been experiencing over the past seven or eight years, has a tendency to elicit overconfidence and even complacency. | AbbVie, Inc. ( ABBV ) Below is a short business description courtesy of Morningstar: AbbVie is offered as a fairly valued high-yield dividend growth stock. Disclosure: Long ABBV, ABC, AMGN, GILD, MCK Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. (click to enlarge) Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps) (click to enlarge) (click to enlarge) Gross Profit Margin(( GPM )), Net Profit Margin (( NPM )), Return On Equity (ROE) (click to enlarge) AmerisourceBergen Corporation ( ABC ) Below is a short business description courtesy of Morningstar: (click to enlarge) Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps) (click to enlarge) (click to enlarge) Gross Profit Margin, Net Profit Margin, Return On Equity (ROE) AmerisourceBergen saw the complete elimination of its net profit margin in 2015 due to non-recurring headwinds of acquisitions and a DOD settlement. | AbbVie, Inc. ( ABBV ) Below is a short business description courtesy of Morningstar: AbbVie is offered as a fairly valued high-yield dividend growth stock. Disclosure: Long ABBV, ABC, AMGN, GILD, MCK Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. (click to enlarge) Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps) (click to enlarge) (click to enlarge) Gross Profit Margin(( GPM )), Net Profit Margin (( NPM )), Return On Equity (ROE) (click to enlarge) AmerisourceBergen Corporation ( ABC ) Below is a short business description courtesy of Morningstar: (click to enlarge) Cash Flow Per Share (cflps), Free Cash Flow Per Share (fcflps), Dividends Paid Per Share (dvpps) (click to enlarge) (click to enlarge) Gross Profit Margin, Net Profit Margin, Return On Equity (ROE) AmerisourceBergen saw the complete elimination of its net profit margin in 2015 due to non-recurring headwinds of acquisitions and a DOD settlement. | AbbVie, Inc. ( ABBV ) Below is a short business description courtesy of Morningstar: AbbVie is offered as a fairly valued high-yield dividend growth stock. Disclosure: Long ABBV, ABC, AMGN, GILD, MCK Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Nine Attractive S&P 500 Healthcare Dividend Growth Stocks There are over 50 healthcare stocks in the S&P 500. |
26484.0 | 2016-08-01 00:00:00 UTC | Company News for August 01, 2016 | ABBV | https://www.nasdaq.com/articles/company-news-for-august-01-2016-2016-08-01 | nan | nan | • Shares of Xerox Corp ( XRX ) gained 3.9% after the company reported second quarter earnings per share of $0.30 beating the Zacks Consensus Estimate by 5 cents.
• Merck & Co., Inc.'s ( MRK ) shares advanced 0.4% after the company posted second quarter earnings per share of $0.93, a penny above the Zacks Consensus Estimate.
• Shares of AbbVie Inc ( ABBV ) increased 2.4% after the company reported second quarter earnings per share of $ 1.26 that beat the Zacks Consensus Estimate of $1.20.
• Expedia Inc's ( EXPE ) shares fell 2.2% after the company posted second quarter earnings per share of $0.4, lower than the Zacks Consensus Estimate of $0.44.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • Shares of AbbVie Inc ( ABBV ) increased 2.4% after the company reported second quarter earnings per share of $ 1.26 that beat the Zacks Consensus Estimate of $1.20. Click to get this free report XEROX CORP (XRX): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report To read this article on Zacks.com click here. • Shares of Xerox Corp ( XRX ) gained 3.9% after the company reported second quarter earnings per share of $0.30 beating the Zacks Consensus Estimate by 5 cents. | • Shares of AbbVie Inc ( ABBV ) increased 2.4% after the company reported second quarter earnings per share of $ 1.26 that beat the Zacks Consensus Estimate of $1.20. Click to get this free report XEROX CORP (XRX): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report To read this article on Zacks.com click here. • Shares of Xerox Corp ( XRX ) gained 3.9% after the company reported second quarter earnings per share of $0.30 beating the Zacks Consensus Estimate by 5 cents. | • Shares of AbbVie Inc ( ABBV ) increased 2.4% after the company reported second quarter earnings per share of $ 1.26 that beat the Zacks Consensus Estimate of $1.20. Click to get this free report XEROX CORP (XRX): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report To read this article on Zacks.com click here. • Shares of Xerox Corp ( XRX ) gained 3.9% after the company reported second quarter earnings per share of $0.30 beating the Zacks Consensus Estimate by 5 cents. | • Shares of AbbVie Inc ( ABBV ) increased 2.4% after the company reported second quarter earnings per share of $ 1.26 that beat the Zacks Consensus Estimate of $1.20. Click to get this free report XEROX CORP (XRX): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EXPEDIA INC (EXPE): Free Stock Analysis Report To read this article on Zacks.com click here. • Shares of Xerox Corp ( XRX ) gained 3.9% after the company reported second quarter earnings per share of $0.30 beating the Zacks Consensus Estimate by 5 cents. |
26485.0 | 2016-07-31 00:00:00 UTC | 12 Big Pharma Stats That Will Blow You Away | ABBV | https://www.nasdaq.com/articles/12-big-pharma-stats-will-blow-you-away-2016-07-31 | nan | nan | Image source: Getty Images.
It only makes sense that Big Pharma would be associated with some big numbers. The size and reach of the major biopharmaceutical companies is pretty impressive (or scary, depending on your point of view). However, there are also some statistics for Big Pharma that aren't all that large but are intriguing nonetheless. Here are a dozen Big Pharma numbers -- small and large -- that might surprise you.
1. $1.05 trillion
That's the total revenue of the global pharmaceutical market. To put that number in perspective, it's roughly one-quarter of what the U.S. federal government will spend in 2016.
2. $515 billion
Of the $1.05 trillion revenue for the global pharmaceutical market, nearly half of it -- roughly $515 billion -- comes from the U.S. and Canada. However, the two countries make up only around 7% of the total world population.
3. 21%
This is the 2015 profit margin that Forbes estimated for the healthcare technology industry, making it by far the most profitable industry of all, with major and generic pharmaceutical companies leading the way. The company really setting the pace is Gilead Sciences (NASDAQ: GILD) , which has a profit margin of nearly 53% over the last 12 months.
4. 88%
The average stock return over the last 10 years for the 10 biggest pharmaceutical companies based on 2015 sales is 88%. However, this statistic is skewed by the huge returns of over 480% during the period for Gilead. Excluding the big biotech, stock returns for the other big 10 biopharmaceutical companies averaged 44% -- well below the 73% returns achieved by the S&P 500 index.
5. $58.8 billion
Members of the Pharmaceutical Research and Manufacturers of America (PhRMA) invested a combined $58.8 billion in research and development during 2015, up from $53.3 billion the previous year. According to the National Science Foundation, the biopharmaceutical industry accounted for 21% of all U.S. business research and development spending in 2011. The second-highest industry, software, accounted for 11% of R&D spending.
6. 7,000+
Where does all that R&D spending go? Over 7,000 drugs are currently in development around the world. That number includes 1,813 cancer drugs and 1,329 neurological disorder drugs. Around 70% of the overall total of drugs in development are potential first-in-class medicines.
7. 45
This number of drugs approved by the FDA last year might not seem like a big deal at first glance. However, it's the second-highest total in at least 35 years. The only year where more drugs were approved by the FDA in recent history was 1996, with 53 approvals. Nearly half of the drugs approved in 2015 were for rare diseases.
8. $2.6 billion
Developing a new drug costs pharmaceutical companies around $2.6 billion on average. That figure includes the costs associated with drug failures. By comparison, the average cost to develop a drug in the 1980s was around $413 million.
9. 12%
Less than 12% of drugs that make it to clinical trials ultimately win regulatory approval. For some indications, the odds are even lower. Between 1998 and 2014, pharmaceutical companies attempted to develop 123 Alzheimer's disease drugs. Only four won approval.
10. $5.2 billion
Nielson estimated that $5.2 billion was spent on prescription drug advertising in 2015. The largest chunk of that amount was for television advertising. Two drugs in particular were promoted on TV the most. AbbVie (NYSE: ABBV) spent $357 million last year in TV ads for Humira. Pfizer (NYSE: PFE) wasn't far behind, shelling out $328 million on commercials promoting Lyrica.
11. 854,000
The biopharmaceutical industry directly employs 854,000 people in the U.S. When you count indirect jobs for suppliers and vendors to the industry plus induced jobs from additional economic activity, the industry supports an estimated 4.4 million jobs.
12. 64.2 billion
Talk about the patent cliff has subsided, but the reality is that Big Pharma still faces a patent cliff. From 2016 through 2018, drugs with pre-expiry value totaling a combined $64.2 billion will face generic competition. Among them are top-selling drugs like AbbVie's Humira and Pfizer's Lyrica.
Baker's dozen
If you buy a dozen doughnuts, the doughnut shop usually throws in one for free. I like that baker's dozen approach (mainly because I like doughnuts), so here's an extra Big Pharma statistic that might make your jaw drop: In 2013, biopharmaceutical companies led all other industries in corporate giving by donating 19.4% of pre-tax profits to charitable organizations.
You probably won't be surprised, though, that 90% of the contributions came in the form of in-kind product donations. High list prices for certain drugs can add up to some major bucks quickly. Still, it's nice to know that the frequently vilified Big Pharma companies aren't as heartless as they're sometimes portrayed.
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. 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 .
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. | AbbVie (NYSE: ABBV) spent $357 million last year in TV ads for Humira. Among them are top-selling drugs like AbbVie's Humira and Pfizer's Lyrica. The size and reach of the major biopharmaceutical companies is pretty impressive (or scary, depending on your point of view). | AbbVie (NYSE: ABBV) spent $357 million last year in TV ads for Humira. Among them are top-selling drugs like AbbVie's Humira and Pfizer's Lyrica. Here are a dozen Big Pharma numbers -- small and large -- that might surprise you. | AbbVie (NYSE: ABBV) spent $357 million last year in TV ads for Humira. Among them are top-selling drugs like AbbVie's Humira and Pfizer's Lyrica. $58.8 billion Members of the Pharmaceutical Research and Manufacturers of America (PhRMA) invested a combined $58.8 billion in research and development during 2015, up from $53.3 billion the previous year. | AbbVie (NYSE: ABBV) spent $357 million last year in TV ads for Humira. Among them are top-selling drugs like AbbVie's Humira and Pfizer's Lyrica. Here are a dozen Big Pharma numbers -- small and large -- that might surprise you. |
26486.0 | 2016-07-30 00:00:00 UTC | How I Got a Safe 9% Dividend Yield -- and You Can, Too! | ABBV | https://www.nasdaq.com/articles/how-i-got-safe-9-dividend-yield-and-you-can-too-2016-07-30 | nan | nan | On Feb. 23, 2009, I made one of my first stock purchases, buying shares of Aflac (NYSE: AFL) . The stock, like every other stock on the public markets at that time, had dropped precipitously. Investors were concerned that a large swath of Aflac's normally safe investments would end up being lost through defaults. I've held those shares ever since.
The company survived the crisis and has recently been hitting all-time highs. As of this writing, shares trade around $73 and pay a quarterly dividend of $1.64, which translates to a yield of 2.24% for those who buy today. However, because I bought at $16.50, I'm currently enjoying an effective yield of 9% per year.
This investing success story owes mostly to luck: There's no way I could have known for sure that Aflac would survive, and its dividend wasn't even foremost in my mind. But I've held those few shares -- which have returned 420% -- as a reminder: Buying companies that continually grow their dividends can rapidly grow your wealth over the years.
These stocks tend to have three key qualities:
They use less than 75% of their free cash flow to pay out dividends.
They raise their dividend payouts by more than 10% per year.
They have businesses that continue to grow both revenue and earnings.
With that in mind, here are two more stocks that could easily yield 10% or more in a few years -- if you buy them today.
Watching paint dry
The paint business might sound boring, but the returns that Sherwin-Williams (NYSE: SHW) shares have achieved are not. The company is the market-leading provider of paints, coatings, and related supplies for both retail and commercial customers. And though it only offers a 1.1% dividend yield right now, it has the potential for explosive growth going forward.
For starters, Sherwin-Williams consistently produces gobs of free cash flow, and it has only used a fraction of that cash to pay its dividend.
Create column charts .
Over the past three years, the company has never used more than one-quarter of its free cash flow to pay its dividend. That means the dividend is not only safe if the economy turns south, but also has lots of room to grow.
Management hasn't shied away from that growth. Over the past five years, the dividend has grown from $1.46 per share to $3.36 per share today. That's an average bump of 18% per year. If you bought today and the dividend continued to grow at that rate, then your yearly yield would reach 10% in 13 years.
That might sound like a long time, but it's important to remember that there's lots of potential for the stock price to appreciate as well. The stock trades for a fair 22 times free cash flow, and the company's brand and market share provide a solid competitive moat.
A spinoff that has lots of potential
In late 2012, AbbVie (NYSE: ABBV) was spun out of Abbott Labs . The move was deemed a way to unlock the value of AbbVie's biopharmaceutical prowess. Since then, the stock has almost doubled -- but the real story is the company's dividend growth.
Like Sherwin-Williams, AbbVie currently has lots of room to grow its dividend.
Create column charts
Over the last 12 months, the company has used just 45% of its free cash flow on its dividend. That's especially important for a company in the biopharmaceutical industry, where companies' fortunes can swing wildly based on the FDA's approval or denial of their treatments and the nature of patents. In some cases, an FDA decision can make or break a biopharmaceutical, and when an approved drug loses its patent protection and generic versions flood the market, the company needs to produce another winner to keep the business humming along.
In 2014, AbbVie's free cash flow plunged, but that was because of an unsuccessful takeover bid and should be viewed as an anomaly. And one of the company's biggest sellers, Humira, has an additional advantage in that it is a biologic, rather than a small-molecule drug that's easily replicable.
Since AbbVie went public, its dividend has grown at $1.60 per year to $2.28, representing 13% growth per year. If you bought shares today, and the company continued growing its dividend at this rate, you'd be sitting on a 10% yielder in under a decade.
Again, that may seem like a long time, but as with Sherwin-Williams, there's also significant potential for capital growth thanks to the company's R&D pipeline.
Of course, the potential for future 10% yielders isn't limited to Sherwin-Williams or AbbVie. These are simply examples of companies that fit the bill. Buy a stock that shares those three qualities, let them compound over a decade, and you, too, could have a dynamic wealth-builder.
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. 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 .
Brian Stoffel owns shares of Aflac. The Motley Fool recommends Aflac and Sherwin-Williams. 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. | A spinoff that has lots of potential In late 2012, AbbVie (NYSE: ABBV) was spun out of Abbott Labs . The move was deemed a way to unlock the value of AbbVie's biopharmaceutical prowess. Like Sherwin-Williams, AbbVie currently has lots of room to grow its dividend. | A spinoff that has lots of potential In late 2012, AbbVie (NYSE: ABBV) was spun out of Abbott Labs . The move was deemed a way to unlock the value of AbbVie's biopharmaceutical prowess. Like Sherwin-Williams, AbbVie currently has lots of room to grow its dividend. | A spinoff that has lots of potential In late 2012, AbbVie (NYSE: ABBV) was spun out of Abbott Labs . The move was deemed a way to unlock the value of AbbVie's biopharmaceutical prowess. Like Sherwin-Williams, AbbVie currently has lots of room to grow its dividend. | Like Sherwin-Williams, AbbVie currently has lots of room to grow its dividend. A spinoff that has lots of potential In late 2012, AbbVie (NYSE: ABBV) was spun out of Abbott Labs . The move was deemed a way to unlock the value of AbbVie's biopharmaceutical prowess. |
26487.0 | 2016-07-29 00:00:00 UTC | AbbVie (ABBV) Beats on 2Q Earnings, Revenues, Ups View | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-beats-2q-earnings-revenues-ups-view-2016-07-29 | nan | nan | AbbVie Inc.ABBV reported second quarter 2016 earnings of $1.26 per share, up 16.7% from the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.20 per share
Abbvie Inc. (ABBV) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany
Revenues increased 17.5% to $6.43 billion in the second quarter of 2016, beating the Zacks Consensus Estimate of $6.24 billion.
The Quarter in Details
Key drug Humira recorded growth of 17.4% with revenues coming in at $4.1 billion. U.S. sales increased 26.7% ($2.7 billion) driven by growth across all three major market categories: rheumatology, dermatology and gastroenterology. Ex-U.S. sales grew 3% to $1.4 billion. Growing awareness, favorable clinical data, additional indications and expansion into new markets should help the product to continue contributing significantly to the top line.
Other products that performed well include Duodopa (up 31.2% to $73 million) and Creon (up 12.9% to $180 million). Meanwhile, products like Synagis and Kaletra (HIV) recorded a decline in revenues.
HCV product Viekira recorded sales of $419 million, slightly above $414 million in the first quarter of 2016. Competition in the HCV market has intensified. AbbVie recorded Imbruvica U.S. sales of $384 million and $55 million of international profit sharing.
Raises 2016 Outlook
AbbVie raised its 2016 EPS outlook to $4.73 - $4.83 per share from the previous range of $4.62 - $4.82 per share. The Zacks Consensus Estimate is currently $4.76 per share.
Our Take
AbbVie's second quarter results were good with the company surpassing expectations on all fronts. Humira and Imbruvica continued to perform well while Viekira continues to feel the impact of additional competition and the label update.
With several companies working on bringing Humira biosimilars to market, AbbVie has been focusing on diversifying its revenue base and lowering its dependence on the product. AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include Bristol-Myers Squibb Company BMY , Johnson & Johnson JNJ and Eli Lilly and Company LLY . All three are Zacks Rank #2 (Buy) stocks.
ABBVIE INC Price
ABBVIE INC Price | ABBVIE INC Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With several companies working on bringing Humira biosimilars to market, AbbVie has been focusing on diversifying its revenue base and lowering its dependence on the product. AbbVie Inc.ABBV reported second quarter 2016 earnings of $1.26 per share, up 16.7% from the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.20 per share Abbvie Inc. (ABBV) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany Revenues increased 17.5% to $6.43 billion in the second quarter of 2016, beating the Zacks Consensus Estimate of $6.24 billion. AbbVie recorded Imbruvica U.S. sales of $384 million and $55 million of international profit sharing. | AbbVie Inc.ABBV reported second quarter 2016 earnings of $1.26 per share, up 16.7% from the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.20 per share Abbvie Inc. (ABBV) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany Revenues increased 17.5% to $6.43 billion in the second quarter of 2016, beating the Zacks Consensus Estimate of $6.24 billion. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie recorded Imbruvica U.S. sales of $384 million and $55 million of international profit sharing. | AbbVie Inc.ABBV reported second quarter 2016 earnings of $1.26 per share, up 16.7% from the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.20 per share Abbvie Inc. (ABBV) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany Revenues increased 17.5% to $6.43 billion in the second quarter of 2016, beating the Zacks Consensus Estimate of $6.24 billion. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Want the latest recommendations from Zacks Investment Research? Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV reported second quarter 2016 earnings of $1.26 per share, up 16.7% from the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.20 per share Abbvie Inc. (ABBV) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany Revenues increased 17.5% to $6.43 billion in the second quarter of 2016, beating the Zacks Consensus Estimate of $6.24 billion. AbbVie recorded Imbruvica U.S. sales of $384 million and $55 million of international profit sharing. Raises 2016 Outlook AbbVie raised its 2016 EPS outlook to $4.73 - $4.83 per share from the previous range of $4.62 - $4.82 per share. |
26488.0 | 2016-07-29 00:00:00 UTC | AbbVie (ABBV) Tops 2Q Earnings & Revenue Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-tops-2q-earnings-revenue-estimates-2016-07-29 | 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.
ABBV has a pretty good earnings track record with the company delivering positive earnings surprises in three of the last four quarters with an average surprise of 2.55%.
Currently, ABBV 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 : ABBV's second quarter earnings came in at $1.26 per share, beating the Zacks Consensus Estimate of $1.20.
Revenues : AbbVie posted revenues of approximately $6.43 billion, surpassing the Zacks Consensus Estimate of $6.24 billion.
Key Stats : Humira sales came in at $4.1 billion. Second-quarter Imbruvica sales were $439 million. Viekira sales were $419 million in the second quarter.
Ups 2016 Outlook : AbbVie raised its 2016 EPS outlook to $4.73 - $4.83 (old guidance: $4.62 - $4.82 per share). The Zacks Consensus Estimate is currently $4.76 per share.
ABBVIE INC Price
ABBVIE INC Price | ABBVIE INC Quote
Check back later for our full write up on this ABBV 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. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 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. | We have highlighted some of the key stats from this just-revealed announcement below: Earnings : ABBV's second quarter earnings came in at $1.26 per share, beating the Zacks Consensus Estimate of $1.20. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote Check back later for our full write up on this ABBV earnings report. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | We have highlighted some of the key stats from this just-revealed announcement below: Earnings : ABBV's second quarter earnings came in at $1.26 per share, beating the Zacks Consensus Estimate of $1.20. 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. |
26489.0 | 2016-07-29 00:00:00 UTC | Trade of the Day: ABBV Stock on the Verge of a Major Breakout | ABBV | https://www.nasdaq.com/articles/trade-day-abbv-stock-verge-major-breakout-2016-07-29 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) - This biotech company is expected to report results for its second-quarter this morning. Analysts are anticipating an 11% jump in earnings to $1.20 per share on a 13% increase in revenue to $6.2 billion.
This company, which is the result of a spin-off from Abbott Laboratori es (NYSE: ABT ) in 2013, may not be familiar to some investors. However, it is a large-cap growth stock held by many funds and several ETFs. Its flagship drug Humira is used to treat rheumatoid arthritis.
Capital IQ has a "Buy" rating on ABBV stock with a 12-month price target of $84 on shares. Its analysts estimate the company will grow revenue nearly 12% this year to $25.5 billion on strong sales of Humira.
Turning to the chart, we can see that ABBV stock has advanced from a bottom at about $51 in January. This advanced has surpassed the November closing high at $64.13 and is challenging the recent double-top above $65, which if exceeded, would be a major breakout.
In the process of the advance, ABBV stock triggered a golden cross in May. This is a long-term buy signal in which the 50-day moving average crosses up through the 200-day moving average.
The first support is at $64, with subsequent support at the 50-day moving average at $62.18, and then the bullish support line at about $62. MACD is flat but will improve if the anticipated breakout occurs.
Traders should buy ABBV stock at $64 with a target of $75 for a potential return of more than 17%. Investors looking for representation in the biotech sector should also consider purchasing shares to hold for Capital IQ's 12-month target of $84, plus the stock's above-average dividend yield. AbbVie pays an annual dividend of $2.28 per share for a current forward yield of 3.5%.
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The post Trade of the Day: ABBV Stock on the Verge of a Major Breakout 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. | Click to Enlarge The post Trade of the Day: ABBV Stock on the Verge of a Major Breakout appeared first on InvestorPlace . InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) - This biotech company is expected to report results for its second-quarter this morning. Capital IQ has a "Buy" rating on ABBV stock with a 12-month price target of $84 on shares. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) - This biotech company is expected to report results for its second-quarter this morning. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Capital IQ has a "Buy" rating on ABBV stock with a 12-month price target of $84 on shares. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) - This biotech company is expected to report results for its second-quarter this morning. Capital IQ has a "Buy" rating on ABBV stock with a 12-month price target of $84 on shares. Turning to the chart, we can see that ABBV stock has advanced from a bottom at about $51 in January. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) - This biotech company is expected to report results for its second-quarter this morning. Capital IQ has a "Buy" rating on ABBV stock with a 12-month price target of $84 on shares. Turning to the chart, we can see that ABBV stock has advanced from a bottom at about $51 in January. |
26490.0 | 2016-07-28 00:00:00 UTC | DLN, KMI, MO, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/dln-kmi-mo-abbv-etf-inflow-alert-2016-07-28 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $73.6 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 24,500,000 to 25,450,000). Among the largest underlying components of DLN, in trading today Kinder Morgan Inc. (Symbol: KMI) is off about 0.6%, Altria Group Inc (Symbol: MO) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average:
Looking at the chart above, DLN's low point in its 52 week range is $45.10 per share, with $78.24 as the 52 week high point - that compares with a last trade of $77.19. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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 DLN, in trading today Kinder Morgan Inc. (Symbol: KMI) is off about 0.6%, Altria Group Inc (Symbol: MO) is off about 0.2%, 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 WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $73.6 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 24,500,000 to 25,450,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of DLN, in trading today Kinder Morgan Inc. (Symbol: KMI) is off about 0.6%, Altria Group Inc (Symbol: MO) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1.1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $45.10 per share, with $78.24 as the 52 week high point - that compares with a last trade of $77.19. 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 DLN, in trading today Kinder Morgan Inc. (Symbol: KMI) is off about 0.6%, Altria Group Inc (Symbol: MO) is off about 0.2%, 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 WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $73.6 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 24,500,000 to 25,450,000). For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $45.10 per share, with $78.24 as the 52 week high point - that compares with a last trade of $77.19. | Among the largest underlying components of DLN, in trading today Kinder Morgan Inc. (Symbol: KMI) is off about 0.6%, Altria Group Inc (Symbol: MO) is off about 0.2%, 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 WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $73.6 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 24,500,000 to 25,450,000). For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $45.10 per share, with $78.24 as the 52 week high point - that compares with a last trade of $77.19. |
26491.0 | 2016-07-28 00:00:00 UTC | The Zacks Analyst Blog Highlights: Biogen, Gilead, AbbVie, Amgen and Celgene | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-biogen-gilead-abbvie-amgen-and-celgene-2016-07-28 | nan | nan | For Immediate Release
Chicago, IL - July 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 ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Amgen ( AMGN ) and Celgene ( CELG ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday's Analyst Blog:
Biotech Stock Roundup: Q2 Earnings Beats
Earnings season for the biotech sector has kicked off with two big biotech names, Biogen ( BIIB ) and Gilead ( GILD ) reporting second quarter results. Meanwhile, companies like AbbVie ( ABBV ) and Amgen ( AMGN ) provided updates on their pipeline efforts.
Recap of the Week's Most Important Stories
1. Two major biotech companies reported second quarter results over the last few days - Biogen and Gilead. First a look at Biogen's results - Biogen's second-quarter results were pretty good with the company surpassing earnings expectations by a huge margin and beating on revenues as well.
The company also raised its outlook for the year. However, Biogen's CEO announced that he will be stepping down once a successor is identified (Read more: Biogen Stock Up on Q2 Earnings Beat, Raised Outlook ).
Meanwhile, Gilead's results were mixed with the company beating on earnings by a penny and revenues falling short of expectations. Moreover, Gilead cut its product sales outlook for the year (Read more: Gilead Beats on Q2 Earnings, Cuts 2016 Sales View ) with its hepatitis C virus (HCV) segment under pressure.
2. AbbVie, which will be reporting second quarter results later this week, came out with quite a few updates on the pipeline and regulatory front. The company's extended release once-daily version of HCV treatment, Viekira Pak, gained FDA approval. Viekira XR is approved for the treatment of patients with chronic genotype 1 (GT1) HCV, including those with compensated cirrhosis (Child-Pugh A).
Additionally, AbbVie is a step closer to gaining EU approval for a 12-week regimen of Viekirax with ribavirin for genotype 4 (GT4) chronic HCV infected adult patients with or without compensated cirrhosis, with the CHMP issuing a positive opinion.
AbbVie also entered into a clinical trial collaboration with Bristol-Myers under which the safety, tolerability and efficacy of AbbVie's investigational biomarker-specific antibody drug conjugate rova-T (rovalpituzumab tesirine) will be evaluated in combination with Bristol-Myers' Opdivo and Opdivo + Yervoy regimen for the treatment of relapsed extensive-stage small cell lung cancer (SCLC). Rova-T became a part of AbbVie's pipeline following the recent Stemcentrx acquisition.
3. Celgene ( CELG ) has decided it will not seek marketing approval for the expansion of the label of its blockbuster drug, Revlimid, as maintenance treatment in a certain type of diffuse large B-cell lymphoma (DLBCL) patients. The decision is based on data from a phase III study - while patients on Revlimid showed an improvement in progression-free survival, an interim analysis revealed that no benefit was seen in the Revlimid arm where overall survival is concerned.
4. Amgen also provided some updates on the pipeline front. Firstly, the company and its partner, UCB, have filed for FDA approval of their experimental osteoporosis treatment, romosozumab. The other update came from the biosimilar front - Amgen and partner Allergan said that their biosimilar version of cancer treatment, Herceptin (trastuzumab) fared well in a late-stage study. We note that Amgen has nine biosimilars in its pipeline and recently got a favorable FDA advisory panel recommendation for its Humira biosimilar.
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BIOGEN INC (BIIB): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Amgen ( AMGN ) and Celgene ( CELG ). Additionally, AbbVie is a step closer to gaining EU approval for a 12-week regimen of Viekirax with ribavirin for genotype 4 (GT4) chronic HCV infected adult patients with or without compensated cirrhosis, with the CHMP issuing a positive opinion. Meanwhile, companies like AbbVie ( ABBV ) and Amgen ( AMGN ) provided updates on their pipeline efforts. | Stocks recently featured in the blog include Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Amgen ( AMGN ) and Celgene ( CELG ). Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, companies like AbbVie ( ABBV ) and Amgen ( AMGN ) provided updates on their pipeline efforts. | Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Amgen ( AMGN ) and Celgene ( CELG ). Meanwhile, companies like AbbVie ( ABBV ) and Amgen ( AMGN ) provided updates on their pipeline efforts. | Want the latest recommendations from Zacks Investment Research? Stocks recently featured in the blog include Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Amgen ( AMGN ) and Celgene ( CELG ). Meanwhile, companies like AbbVie ( ABBV ) and Amgen ( AMGN ) provided updates on their pipeline efforts. |
26492.0 | 2016-07-28 00:00:00 UTC | Celgene's Otezla Is A Big Hit | ABBV | https://www.nasdaq.com/articles/celgenes-otezla-big-hit-2016-07-28 | nan | nan | If we use Simponi and Stelara as benchmarks for where sales of Otezla may be heading in the future, Otezla's sales growth doesn't appear to be in jeopardy of leveling off anytime soon.
In Q2, sales of Simponi grew 45% year over year to $448 million and sales of Stelara sales grew 41% year over year to $804 million, giving it an annualized sales run rate of over $3.2 billion.
Adding conviction to the thinking that Otezla sales could double or more from it's current pace is the fact that Otezla is only recently beginning to catch fire abroad. In Q2, ex-U.S. sales represented only $25 million of Otezla's total sales. That's more than double the abroad sales for the drug a year ago and now that it's won reimbursement in 14 countries (with more countries on deck), the pace of international sales should accelerate meaningfully. To put that opportunity in a bit of perspective, international sales of Simponi and Stelara totaled about $450 million in the second quarter.
More to come
Otezla is a big reason behind Celgene's confidence that it will be able to deliver on it's long-term sales and profit forecast. Celgene has set a goal of delivering $13 billion in sales next year and at least $21 billion in sales by 2020.
Otezla can help Celgene reach those targets via ongoing market share growth, international launches, and label expansions. Trials are ongoing evaluating Otezla's use in ulcerative colitis and Behçet's disease.
Overall, the company thinks Otezla will be good for at least $1.5 billion in sales next year and that it will contribute in large part to the company's $4 billion projection for immunology sales in 2020. Clearly, Otezla is a big win for Celgene and that makes it a drug that investors ought to be tracking every quarter.
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Todd Campbell owns shares of Celgene.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 @ebcapital to see more articles like this.The Motley Fool owns shares of and recommends Celgene and Johnson and Johnson. The Motley Fool has the following options: short October 2016 $95 puts on 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. | To put that opportunity in a bit of perspective, international sales of Simponi and Stelara totaled about $450 million in the second quarter. More to come Otezla is a big reason behind Celgene's confidence that it will be able to deliver on it's long-term sales and profit forecast. Otezla can help Celgene reach those targets via ongoing market share growth, international launches, and label expansions. | In Q2, sales of Simponi grew 45% year over year to $448 million and sales of Stelara sales grew 41% year over year to $804 million, giving it an annualized sales run rate of over $3.2 billion. Otezla can help Celgene reach those targets via ongoing market share growth, international launches, and label expansions. Follow him on Twitter where he goes by the handle @ebcapital to see more articles like this.The Motley Fool owns shares of and recommends Celgene and Johnson and Johnson. | If we use Simponi and Stelara as benchmarks for where sales of Otezla may be heading in the future, Otezla's sales growth doesn't appear to be in jeopardy of leveling off anytime soon. In Q2, sales of Simponi grew 45% year over year to $448 million and sales of Stelara sales grew 41% year over year to $804 million, giving it an annualized sales run rate of over $3.2 billion. Overall, the company thinks Otezla will be good for at least $1.5 billion in sales next year and that it will contribute in large part to the company's $4 billion projection for immunology sales in 2020. | Otezla can help Celgene reach those targets via ongoing market share growth, international launches, and label expansions. Overall, the company thinks Otezla will be good for at least $1.5 billion in sales next year and that it will contribute in large part to the company's $4 billion projection for immunology sales in 2020. Follow him on Twitter where he goes by the handle @ebcapital to see more articles like this.The Motley Fool owns shares of and recommends Celgene and Johnson and Johnson. |
26493.0 | 2016-07-28 00:00:00 UTC | Pre-Market Earnings Report for July 29, 2016 : XOM, CVX, MRK, ABBV, UPS, PSX, CI, LYB, AON, VTR, PEG, TYC | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-july-29-2016-xom-cvx-mrk-abbv-ups-psx-ci-lyb-aon-vtr-peg-tyc | nan | nan | The following companies are expected to report earnings prior to market open on 07/29/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation ( XOM ) is reporting for the quarter ending June 30, 2016. The oil company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.64. This value represents a 36.00% decrease compared to the same quarter last year. XOM missed the consensus earnings per share in the 2nd calendar quarter of 2015 by -9.91%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for XOM is 32.58 vs. an industry ratio of 25.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation ( CVX ) is reporting for the quarter ending June 30, 2016. The oil company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.31. This value represents a 3.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CVX is 68.63 vs. an industry ratio of 25.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Merck & Company, Inc. ( MRK ) is reporting for the quarter ending June 30, 2016. The large cap pharmaceutical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.92. This value represents a 6.98% increase compared to the same quarter last year. In the past year MRK has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 4.71%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for MRK is 15.75 vs. an industry ratio of 19.80.
AbbVie Inc. ( ABBV ) is reporting for the quarter ending June 30, 2016. The large cap pharmaceutical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.20. This value represents a 11.11% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 13.63 vs. an industry ratio of 19.80.
United Parcel Service, Inc. ( UPS ) is reporting for the quarter ending June 30, 2016. The transportation company's consensus earnings per share forecast from the 13 analysts that follow the stock is $1.43. This value represents a 5.93% increase compared to the same quarter last year. In the past year UPS has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 4.1%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for UPS is 18.79 vs. an industry ratio of 10.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 ( PSX ) is reporting for the quarter ending June 30, 2016. The oil refining company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.91. This value represents a 50.27% decrease compared to the same quarter last year. PSX missed the consensus earnings per share in the 1st calendar quarter of 2016 by -22.09%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for PSX is 18.94 vs. an industry ratio of 10.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Cigna Corporation ( CI ) is reporting for the quarter ending June 30, 2016. The insurance company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.39. This value represents a 6.27% decrease compared to the same quarter last year. In the past year CI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.91%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CI is 14.90 vs. an industry ratio of 13.80, implying that they will have a higher earnings growth than their competitors in the same industry.
LyondellBasell Industries NV ( LYB ) is reporting for the quarter ending June 30, 2016. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.54. This value represents a 8.96% decrease compared to the same quarter last year. In the past year LYB has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 8.77%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for LYB is 8.06 vs. an industry ratio of -58.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc ( AON ) is reporting for the quarter ending June 30, 2016. The insurance brokers company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.40. This value represents a 6.87% increase compared to the same quarter last year. In the past year AON has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.5%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AON is 16.82 vs. an industry ratio of 18.20.
Ventas, Inc. ( VTR ) is reporting for the quarter ending June 30, 2016. The reit company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.04. This value represents a 11.86% decrease compared to the same quarter last year. In the past year VTR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.96%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for VTR is 17.76 vs. an industry ratio of 15.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Public Service Enterprise Group Incorporated ( PEG ) is reporting for the quarter ending June 30, 2016. The electric power utilities company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.57. This value represents a no change for the same quarter last year. In the past year PEG has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 2.25%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for PEG is 15.73 vs. an industry ratio of 14.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Tyco International plc ( TYC ) is reporting for the quarter ending June 30, 2016. The protection safety company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.53. This value represents a 10.17% decrease compared to the same quarter last year. In the past year TYC has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for TYC is 22.20 vs. an industry ratio of 6.00, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 reporting for the quarter ending June 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 13.63 vs. an industry ratio of 19.80. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending June 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 13.63 vs. an industry ratio of 19.80. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending June 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 13.63 vs. an industry ratio of 19.80. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending June 30, 2016. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 13.63 vs. an industry ratio of 19.80. |
26494.0 | 2016-07-27 00:00:00 UTC | The Drug-Price War Just Took a Big New Twist | ABBV | https://www.nasdaq.com/articles/drug-price-war-just-took-big-new-twist-2016-07-27 | nan | nan | Image source: Flickr .
Is your stomach ready for a big twist? Then you should know that the escalating battle over drug prices just got turned on its head.
For the past couple of years, states and insurers have successfully blocked patient access to many game-changing drugs because of their sky-high prices. While cancer-specific biotechs are not the only drugmakers affected, no class has taken a bigger hit than those providing next-generation treatment for hepatitis C at nosebleed prices.
Specifically, we're talking about Gilead Sciences (NASDAQ: GILD) , AbbVie Inc. (NYSE: ABBV) , Merck & Co. , Johnson & Johnson , and Bristol-Myers Squibb . These companies' drugs eliminate the virus 90% of the time, but can cost anywhere between $54,600 to $94,500 for a course of treatment.
Hep-C is a life-threatening disease, so blocking access to these drugs could hurt many patients. The blocks are also stinging investors, many of whom thought these drugs would blast past analysts' estimates for a long time to come. After all, even if you consider just the Medicaid portion of the hep-C market, sales were projected at $55 billion. Add in the rest of the market, both home and abroad, and how could a company like Gilead not be a huge winner for the foreseeable future?
Ouch! Who shrank the market?
Instead, the hep-C juggernaut ran into a huge roadblock -- or, rather, a series of roadblocks. Even though Medicaid patients are prime candidates for the drugs, many states have refused to pay for them. Molina Healthcare (NYSE: MOH) , for example, which administers Medicaid plans, found itself receiving no reimbursement for the expensive antivirals in 11 states . Not surprisingly, Molina reacted by providing coverage only when the disease was in its final stages, Stage 3 or 4, where the liver is "hard as a rock," as Sanjeev Arora, a New Mexico physician, describes it. Arora further described treatment at that stage as "like closing the barn door after the horse has left."
The erosion of the Medicaid market was devastating enough, but commercial insurers also jumped on the bandwagon. Back in 2014, UnitedHealth Group (NYSE: UNH) limited the antivirals to patients facing liver failure. Other insurers followed suit.
The upshot for investors is that market leader Gilead's double-digit sales and profit growth came to a screeching halt last quarter, with its hep-C drug Harvoni badly missing expectations. AbbVie's chief competing hep-C drug, Viekira, also came up well short of consensus estimates.
In fact, many analysts are now projecting that the hep-C market won't just flatten; it's headed for a cliff.
Don't bet on it: Floodgates are reopening
So much for analysts' projections. The hep-C world is about to change, again. Massachusetts is the latest state to reverse its policy. A few weeks ago, after losing multiple legal battles, the state threw in the towel and conceded that any Medicaid patient with hep-C qualifies for the antiviral drugs.
Massachusetts is just one state, but similar actions have occurred in Florida, New York, Washington, and Delaware in the past few months. Pressured by an almost endless list of advocacy groups, insurers are also breaking down. Anthem 's(NYSE: ANTM) Blue Cross and Blue Shield plans in 14 states quietly reversed course and began authorizing treatment to people "in all stages of fibrosis" (liver scarring) last December. UnitedHealth did an about-face on Jan. 1. The nation's largest insurer now provides greatly expanded coverage for these drugs.
And not just states and insurers are reopening the floodgates. In March, the Department of Veterans Affairs said it will treat any veteran with hep-C with the new drugs, regardless of the stage of illness -- extending therapy to nearly 130,000 veterans.
Even more stunning, Medicare followed their lead. In the face of a challenge by an Arizona man named Walter Blanco, who was twice denied access, the agency recently enacted a similar policy.
Hep-C investors are still in for volatility
But while easier access to therapy is great news for all hep-C drugmakers, don't expect an immediate big bump in revenue for any of them.
For one thing, states will demand deep pricing discounts. Gilead has already been forced to discount its average hep-C drug by almost 46%, and state-negotiated discounts are likely to be greater. They could bring pricing down to $30,000 or less, according to Kevin Costello, from Harvard's Center for Health Law & Policy Innovation.
Second, as many as 50% of hep-C patients aren't even aware they have the disease.
Third, one company still almost completely dominates this market, with AbbVie a distant second. Gilead owns 90% of the market, and the recently approved Epclusa, which can treat all six genotypes of hep-C, should keep it the front-runner.
Best investing bets? Biotechs providing drugs that are "medical necessities"
Beyond hep-C, the recent events have implications for all biotech and specialty pharma investors. With healthcare costs soaring, pharmas developing me-too drugs that offer marginal benefits are in trouble. Something's gotta give, and these drugs are likely to be destined for payers' chopping blocks.
A better bet are companies providing drugs that are medical necessities. Restrictive policies against those drugs probably won't survive the legal challenges, according to Nicholas Bagley, a professor of law at the University of Michigan. "I think the writing is on the wall, and plaintiffs are likely to prevail in these lawsuits," he said.
In other words, despite their extreme prices, companies with drugs that save lives should find the wind at their backs again soon. And if you're looking for one good pick based on this trend, there's really no choice. Market leader Gilead is now trading at a stupid cheap forward earnings multiple of 6.95.
Here's the bottom line: Tens of thousands of people with hep C are about to gain access to treatments that can cure them. I'd say that's good news for everyone. And it doesn't hurt that this twist in the wind may eventually add a lot of lift to some well-chosen portfolios.
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Cheryl Swanson owns shares of Johnson and Johnson. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson and Johnson. The Motley Fool recommends Anthem and UnitedHealth Group. 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. | Specifically, we're talking about Gilead Sciences (NASDAQ: GILD) , AbbVie Inc. (NYSE: ABBV) , Merck & Co. , Johnson & Johnson , and Bristol-Myers Squibb . AbbVie's chief competing hep-C drug, Viekira, also came up well short of consensus estimates. Third, one company still almost completely dominates this market, with AbbVie a distant second. | Specifically, we're talking about Gilead Sciences (NASDAQ: GILD) , AbbVie Inc. (NYSE: ABBV) , Merck & Co. , Johnson & Johnson , and Bristol-Myers Squibb . AbbVie's chief competing hep-C drug, Viekira, also came up well short of consensus estimates. Third, one company still almost completely dominates this market, with AbbVie a distant second. | Specifically, we're talking about Gilead Sciences (NASDAQ: GILD) , AbbVie Inc. (NYSE: ABBV) , Merck & Co. , Johnson & Johnson , and Bristol-Myers Squibb . AbbVie's chief competing hep-C drug, Viekira, also came up well short of consensus estimates. Third, one company still almost completely dominates this market, with AbbVie a distant second. | Specifically, we're talking about Gilead Sciences (NASDAQ: GILD) , AbbVie Inc. (NYSE: ABBV) , Merck & Co. , Johnson & Johnson , and Bristol-Myers Squibb . AbbVie's chief competing hep-C drug, Viekira, also came up well short of consensus estimates. Third, one company still almost completely dominates this market, with AbbVie a distant second. |
26495.0 | 2016-07-26 00:00:00 UTC | 3 Big Stock Charts for Tuesday: AbbVie Inc (ABBV), Gilead Sciences, Inc. (GILD) and Sprint Corp (S) | ABBV | https://www.nasdaq.com/articles/3-big-stock-charts-for-tuesday%3A-abbvie-inc-abbv-gilead-sciences-inc.-gild-and-sprint-corp | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Earnings season brings big moves from stocks, but these moves always leave a big question: "is it too late to buy into the earnings news?" Three movers from Monday's earnings results are AbbVie Inc (NYSE: ABBV ), Gilead Sciences, Inc. (NASDAQ: GILD ) and Sprint Corp (NYSE: S ). Today's Three Big Charts aims to answer that question.
AbbVie Inc (ABBV)
ABBV shares are trading well within a regression channel that dates back to its IPO and identified $60 as a level to buy the shares in June, a move that would have already resulted in 7% gains. This same regression channel identifies an intermediate-term target price of $72 based on Monday's close.
Shares of AbbVie have been benefiting from support from their 50-day moving average, which has been trending higher. ABBV stock is more than two times likely to continue moving higher on a daily basis when the 50-day is trending higher.
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We don't normally talk about short interest in the Big Chart pieces, but the current short interest ratio of 8.7 on ABBV suggests that the next few days will be fueled by shorts covering their losing positions. This short squeeze should help Abbvie shares break towards and above $66 on their way to a target of $72.
Gilead Sciences, Inc. (GILD)
From a technical perspective, the $85 level offers potential support as it is the site where the stock's 20- and 50-day moving averages converge. The confluence of trendlines should provide some support; however, the stock also has back-up support at the $80 level from the technical phenomenon of round-number support (yes, it exists) and a little known technical/options factor.
The $80 level is the site of a large amount of put open interest on GILD. Historically, large amounts of put open interest tend to act as a technical/mechanical support level due to the hedging that is involved with those traders that have sold these options.
The technicals suggest that a short-term trading opportunity exists for Gilead shares, as they are likely to find another bottom at the $80 level and then rebound back to $92 over the intermediate-term.
Sprint Corp (S)
Sprint shocked the market with a great earnings report along with some great subscriber forecasts. S stock trades 27% higher during the session, leaving traders asking if there's any meat left on the bone in terms of upside performance. The answer is yes .
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S stock shot higher yesterday, but has additional room to move to the $7 level before hitting some selling pressure. The key here is the company's comments regarding subscriber growth, low cap-ex and the potential for acquisition. The trifecta of fundamental drivers validates the fact that the stock has, and is likely to continue making "six sigma" moves.
Don't get it wrong, we're likely to see some profit taking on Sprint shares over the short-run. This profit taking will be limited to the $5.50 price mark, which will then act as another launching pad for Sprint stock.
Our technical models suggest a $7 price target over the next two months as Sprint continues to benefit from positive fundamentals and the rest of the market starts trying to catch-up to its trend.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
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The post 3 Big Stock Charts for Tuesday: AbbVie Inc (ABBV), Gilead Sciences, Inc. (GILD) and Sprint Corp (S) 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. | Three movers from Monday's earnings results are AbbVie Inc (NYSE: ABBV ), Gilead Sciences, Inc. (NASDAQ: GILD ) and Sprint Corp (NYSE: S ). AbbVie Inc (ABBV) ABBV shares are trading well within a regression channel that dates back to its IPO and identified $60 as a level to buy the shares in June, a move that would have already resulted in 7% gains. Shares of AbbVie have been benefiting from support from their 50-day moving average, which has been trending higher. | Three movers from Monday's earnings results are AbbVie Inc (NYSE: ABBV ), Gilead Sciences, Inc. (NASDAQ: GILD ) and Sprint Corp (NYSE: S ). More From InvestorPlace 9 Best Cheap Stocks to Buy Under $10 5 Best Stocks to Buy for the Next 50 Years The post 3 Big Stock Charts for Tuesday: AbbVie Inc (ABBV), Gilead Sciences, Inc. (GILD) and Sprint Corp (S) appeared first on InvestorPlace . AbbVie Inc (ABBV) ABBV shares are trading well within a regression channel that dates back to its IPO and identified $60 as a level to buy the shares in June, a move that would have already resulted in 7% gains. | 10 Stocks to Buy If Donald Trump Becomes President We don't normally talk about short interest in the Big Chart pieces, but the current short interest ratio of 8.7 on ABBV suggests that the next few days will be fueled by shorts covering their losing positions. More From InvestorPlace 9 Best Cheap Stocks to Buy Under $10 5 Best Stocks to Buy for the Next 50 Years The post 3 Big Stock Charts for Tuesday: AbbVie Inc (ABBV), Gilead Sciences, Inc. (GILD) and Sprint Corp (S) appeared first on InvestorPlace . Three movers from Monday's earnings results are AbbVie Inc (NYSE: ABBV ), Gilead Sciences, Inc. (NASDAQ: GILD ) and Sprint Corp (NYSE: S ). | AbbVie Inc (ABBV) ABBV shares are trading well within a regression channel that dates back to its IPO and identified $60 as a level to buy the shares in June, a move that would have already resulted in 7% gains. ABBV stock is more than two times likely to continue moving higher on a daily basis when the 50-day is trending higher. Three movers from Monday's earnings results are AbbVie Inc (NYSE: ABBV ), Gilead Sciences, Inc. (NASDAQ: GILD ) and Sprint Corp (NYSE: S ). |
26496.0 | 2016-07-26 00:00:00 UTC | Can These 3 Big Pharma Stocks Pull Off an Earnings Surprise? | ABBV | https://www.nasdaq.com/articles/can-these-3-big-pharma-stocks-pull-off-an-earnings-surprise-2016-07-26 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the second round of earnings reports heating up the markets, major pharmaceutical companies are at an important crossroad.
Source: Images Money via Flickr (Modified)
Pharma stocks have been riding high over the past few years, but 2015 was an uncharacteristic miss for many prominent names. Currently, the benchmark exchange-traded fund Health Care SPDR (ETF) (NYSEARCA: XLV ) stands at almost 4% year-to-date. This is roughly the same return investors saw in the XLV last year.
Can things pick up for Big Pharma, or will they falter yet again?
Wall Street can't take anything for granted. In the 2000s, a great number of pharma stocks were seemingly more interested in not losing than actually winning. Returns for the XLV averaged only 2%, thanks to macro-level events outside the domain of Big Pharma.
In contrast, things really got moving in the present decade, with the XLV averaging in the double digits. But if 2016 were to end now, returns for the past two years would net a pedestrian 7%. Therefore, if there's any time for pharma stocks to show up, it would be now.
Luckily, help for Big Pharma might come from an unexpected source. The latest polls show that Republican presidential candidate Donald Trump has a slight lead over rival Hillary Clinton. That's significant because Trump is proposing a 15% maximum ceiling on the corporate tax rate.
The lower rate would theoretically boost pharma stocks by eliminating the incentive for complicated and expensive tax haven "strategies." Historically, Big Pharma has been a connoisseur of such evasive schemes.
Will that make pharma stocks great again?
All factors combined, XLV looks like a strong contender. In the past month, the ETF added 8% of market value. It's also challenging the previous highs of last year before a late summer crash put a serious dent among many Big Pharma companies.
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As long as there are no unpleasant surprises, the sector should be well received. Here are three major pharma stocks that could benefit from an earnings boost.
Pharma Stocks to Watch: AstraZeneca plc (ADR) (AZN)
AstraZeneca plc (ADR) (NYSE: AZN ) is "feeling the Bern" - and not in a good way!
Called out by former presidential candidate Bernie Sanders, AZN faced a major roadblock in its bid for continued exclusive rights to cholesterol-fighting drug Crestor. Then the gavel came down, with a U.S. District judge denying AstraZeneca's request to prevent copycat clones.
Among Big Pharma stocks, AZN has a lot to prove when it releases its second-quarter of fiscal year 2016 earnings results this Thursday.
What investors will need to see is substantive progress from last year's disastrous Q3 report, which produced a negative surprise of 33%.
So far, results have been good, not great. As revenue growth isn't much to write home about, the key focus will be the profit margins. Fortunately, AZN is outperforming in this arena on a quarter-over-quarter basis. Tighter financial controls have also contributed to the higher profitability rate.
Although the 76 cent consensus estimate sits on the higher end of the range of forecasts, AZN should have enough to hit it squarely.
Click to Enlarge The other factor contributing towards optimism in AZN stock is buying volume. In the past 30 days, shares are up nearly 11%. During that time, more people have been trading AZN.
Technical analysts typically look for an alignment between price and volume increases to confirm a rally. One without the other could be a sign that things aren't quite right.
Although this Big Pharma company has faced a big setback, it would be a mistake to dismiss AZN.
Pharma Stocks to Watch: AbbVie Inc (ABBV)
As is familiar territory among pharma stocks, AbbVie Inc . (NYSE: ABBV ) is facing its own challenges regarding exclusivity.
ABBV produces Humira, the world's best-selling drug , according to Morgan Stanley analysts. Unfortunately, such a lofty title attracts competitors like bees to honey. If ABBV can win some battles in court, the situation is net bullish for the Big Pharma firm.
However, analysts are hedging their bets. Several notable downgrades have occurred for ABBV, setting the stage for a critical Q2 showdown on Friday.
Here, though, AbbVie is a true outperformer. The company has beaten consensus forecast in the past 13 earnings reports.
Click to Enlarge Despite recent negative sentiment towards ABBV, I'm not looking for it to break its winning streak just yet. Unlike AZN, revenue trends for ABBV remains robust from both an annual and quarterly perspective. Operating and net margins have improved substantially in the prior quarter. Also, the profitability metrics for ABBV happen to be one of the best among pharma stocks.
What's undeniable is that AbbVie has been keeping shareholders happy at a time when there's not much to be happy about. ABBV stock is up over 8% YTD, generally holding steady over the past seven months. Unlike speculative pharma stocks, there's less chance of ABBV leaving you high and dry.
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It may not be the day trader's drug of choice, but the proven consistency of ABBV is well worth a second look.
Pharma Stocks to Watch: Bristol-Myers Squibb Co (BMY)
With a market capitalization of $126 billion, Bristol-Myers Squibb Co (NYSE: BMY ) stands in an exclusive crowd, even among Big Pharma stocks. BMY intends to keep it that way, partnering with fellow industry giant AbbVie to explore the potential of a vastly improved therapy for late-stage small cell lung cancer (SCLC).
Due to the limited options available to current sufferers of SCLC, a breakthrough would be a major humanitarian and financial boon for BMY and ABBV.
The enthusiasm is apparently carrying over into the markets. A majority of covering analysts give BMY a "buy" recommendation, with the consensus little-changed over the past four months. That's because it's hard to argue with a juggernaut.
BMY revenue in Q1 was up 9% year-over-year, and in Q2, sales growth is expected to be 11% to $4.7 billion . Armed with these kinds of numbers, BMY should be able to hit its estimated earnings per share target of 66 cents.
Click to Enlarge Of course, it's all about what you can bring to the shareholders. Even here, the case for BMY is compelling. Shares are up 9% YTD, and from late January, BMY is up over 20%.
During the past five years, shares have steadily broken higher ground. There's nothing in the news cycle to suggest a reversal of that trend, making BMY a reasonably safe bet.
Another consistent winner, BMY should put minds at ease regarding Big Pharma stocks.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
The post Can These 3 Big Pharma Stocks Pull Off an Earnings Surprise? 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. | BMY intends to keep it that way, partnering with fellow industry giant AbbVie to explore the potential of a vastly improved therapy for late-stage small cell lung cancer (SCLC). Pharma Stocks to Watch: AbbVie Inc (ABBV) As is familiar territory among pharma stocks, AbbVie Inc . (NYSE: ABBV ) is facing its own challenges regarding exclusivity. | Pharma Stocks to Watch: AbbVie Inc (ABBV) As is familiar territory among pharma stocks, AbbVie Inc . (NYSE: ABBV ) is facing its own challenges regarding exclusivity. ABBV produces Humira, the world's best-selling drug , according to Morgan Stanley analysts. | Pharma Stocks to Watch: AbbVie Inc (ABBV) As is familiar territory among pharma stocks, AbbVie Inc . (NYSE: ABBV ) is facing its own challenges regarding exclusivity. ABBV produces Humira, the world's best-selling drug , according to Morgan Stanley analysts. | Pharma Stocks to Watch: AbbVie Inc (ABBV) As is familiar territory among pharma stocks, AbbVie Inc . (NYSE: ABBV ) is facing its own challenges regarding exclusivity. ABBV produces Humira, the world's best-selling drug , according to Morgan Stanley analysts. |
26497.0 | 2016-07-25 00:00:00 UTC | 5 Incredibly Cheap Big Pharma Stocks | ABBV | https://www.nasdaq.com/articles/5-incredibly-cheap-big-pharma-stocks-2016-07-25 | nan | nan | This has been a roller-coaster year for pharmaceutical stocks. The iShares U.S. Pharmaceuticals index , which follows the performance of the largest U.S.-listed companies in the industry, is still 17% lower than where it stood 12 months ago.
That's well above low points seen earlier this year, but there are still some bargains out there. Research and acquisition-happy AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Pfizer (NYSE: PFE) are poised to grow faster than their prices imply. Generic giants Mylan (NASDAQ: MYL) and Teva Pharmaceutical Industries (NYSE: TEVA) have also been left behind.
Let's walk through some figures together to see why shares these five Big Pharmas are so inexpensive.
1. AbbVie: outrunning Humira
Inbound competition for AbbVie's Humira has been hanging over this stock like a dark cloud since it spun off from Abbott in 2013. Those clouds started crackling with lightning earlier this month, when an FDA independent advisory panel voted 26-to-0 in favor of licensing Amgen 's ABP 501 as a biosimilar to Humira.
The extremely popular anti-inflammatory still makes up about 60% of AbbVie's total sales, but AbbVie has been making strides to diversify its revenue stream with some bold purchases. The $21 billion acquisition of blood cancer drug Imbruvica has a chance of contributing estimated annual revenue of $7 billion following an FDA approval in March that made it the first chemotherapy-free option for untreated patients with the most common form of leukemia.
Further out, its recently approved blood cancer pill, Venclexta, and late-stage hopefuls could offset losses to Humira competition in the years ahead. If successful, investors will look back at its current price of about 13 times this year's earnings estimates as incredibly cheap.
However, if biosimilar competition for Humira stifles growth, the dividend could keep you from sitting on losses. At recent prices, the stock offers a juicy 3.6% yield, which AbbVie could raise significantly.
2. Allergan: buying growth
Adding to your top line by acquiring companies and their products is relatively easy, but in the drugmaking business, getting those acquisitions to work for shareholders is often elusive. This is what makes Allergan so compelling. Although its share count ballooned 211% over the past five years, free cash flow per share is 184% higher than it was at the beginning of the period.
The deepest concern at present is Allergan's frightening balance sheet, which finished March with $38.55 billion in long-term debt and just $2.26 billion in cash and equivalents. The long-delayed $40 billion sale of its generics business to Teva should go a long way toward shoring up its finances and should allow it to purchase more winners such as Botox.
While its cosmetic use garners derision from the public, Botox has earned approval for eight therapeutic indications that have kept the franchise on pace to reach $2.55 billion in sales this year, after 27 years on pharmacy shelves.
That nose for value is why billionaire activist investor Carl Icahn has taken a "large" position in Allergan while praising its star CEO, Brent Saunders, recently. At about 5.4 times trailing sales, and 17 times this year's earnings expectations, Allergan is the most expensive Big Pharma stock on this list. If Saunders can make lightning strike again, however, its recent price is incredibly low.
3. Pfizer: What patent cliff?
Pfizer has struggled to grow since losing exclusivity for Lipitor and other key drugs, but strong uptake of breast cancer capsule Ibrance, pneumococcal vaccine Prevnar 13, and rheumatoid arthritis pill Xeljanz has the Big Pharma on track to finally pass its years-old high-water mark. First-quarter sales of Prevnar 13 rose 15.5% over Q1 2015, putting the drug on pace to pass $6 billion in sales this year. A recent label expansion to U.S. adults age 18 through 49 should help.
Xeljanz is finally gaining traction, with first-quarter sales more than doubling over Q1 2015 to $195 million, but the biggest success story is Ibrance. Following accelerated FDA approval last February, it's rocketed up to a run rate of $1.7 billion based on first-quarter sales and is on its way to reach peak annual sales estimates of $5 billion.
Pfizer's trading at about 15 times this year's earnings estimates, which seems awfully low for a company that posted first-quarter revenue growth of 20% (about 9% if you don't include $1.2 billion from the Hospira operations it acquired last September) over the same period last year. With a nice dividend offering a yield of 3.3%, this Big Pharma stock is wonderfully inexpensive.
4. Mylan: global grower
About nine years ago, Mylan was a much smaller U.S.-centered company when it bought the generic-drug operations of Germany's Merck KGaA for about $6.7 billion. When the company reported first-quarter sales, North American generic-drug sales comprised just 42% of the company's total revenue.
Earlier this year, Mylan stock received a pounding when the company announced its intentions to acquire Sweden's Meda , another global generic-drug maker, for about $7.2 billion in cash and stock. The premium is steep, but Meda's operations would allow Mylan to expand into territories it doesn't have a presence in yet, including China. We'll have to see how the deal shakes out, but I'm inclined to believe it will help the company's top line continue its climb.
MYL data by YCharts
At recent prices, this Big Pharma stock is trading at about 9 times this year's earnings estimates. For a company that has already proved it can make large acquisitions into new territories work, that's unbelievably cheap.
5. Teva: tough deal
In the first quarter, sales of its blockbuster multiple sclerosis therapy, Copaxone, led Teva's specialty-medicines segment 10% higher than Q1 2015 to $2.15 billion. The company's other half of operations, generic-drug sales, put up almost the same amount, with $2.17 billion. Much more of the specialty-drug segment's sales filter to the bottom line, which makes this company heavily reliant on a handful of drugs at present.
Teva is about make some big changes. Its $40 billion purchase of Actavis Generics from Allergan has been drawn out longer than expected, but it should complete soon. While other companies are complaining about generic-drug price erosion, Teva maintains its bullish stance on the industry.
Image source: Teva Pharmaceutical Industries.
According to Teva's global generics CEO, Sigurdur Olafsson, other companies are having trouble because they lack new product launches. Teva launched around 450 new drugs last year, and assuming the deal with Allergan completes, it will launch 1,000 new products this year and 1,500 next year.
If the Actavis deal goes through as expected, management is predicting that adjusted earnings will climb from $5.42 per share last year, to between $6.90 and $7.40 in 2019, but at recent prices Teva stock is trading at just 10.6 times this year's earnings estimates. With a dividend offering a 3% yield, this might the cheapest Big Pharma stock of all.
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Cory Renauer owns shares of Abbott Laboratories. You can follow Cory on Twitter @TMFang4apples or connect with him on LinkedIn for more healthcare industry insight. The Motley Fool recommends Mylan 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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Research and acquisition-happy AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Pfizer (NYSE: PFE) are poised to grow faster than their prices imply. AbbVie: outrunning Humira Inbound competition for AbbVie's Humira has been hanging over this stock like a dark cloud since it spun off from Abbott in 2013. The extremely popular anti-inflammatory still makes up about 60% of AbbVie's total sales, but AbbVie has been making strides to diversify its revenue stream with some bold purchases. | Research and acquisition-happy AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Pfizer (NYSE: PFE) are poised to grow faster than their prices imply. AbbVie: outrunning Humira Inbound competition for AbbVie's Humira has been hanging over this stock like a dark cloud since it spun off from Abbott in 2013. The extremely popular anti-inflammatory still makes up about 60% of AbbVie's total sales, but AbbVie has been making strides to diversify its revenue stream with some bold purchases. | Research and acquisition-happy AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Pfizer (NYSE: PFE) are poised to grow faster than their prices imply. AbbVie: outrunning Humira Inbound competition for AbbVie's Humira has been hanging over this stock like a dark cloud since it spun off from Abbott in 2013. The extremely popular anti-inflammatory still makes up about 60% of AbbVie's total sales, but AbbVie has been making strides to diversify its revenue stream with some bold purchases. | Research and acquisition-happy AbbVie (NYSE: ABBV) , Allergan (NYSE: AGN) , and Pfizer (NYSE: PFE) are poised to grow faster than their prices imply. AbbVie: outrunning Humira Inbound competition for AbbVie's Humira has been hanging over this stock like a dark cloud since it spun off from Abbott in 2013. The extremely popular anti-inflammatory still makes up about 60% of AbbVie's total sales, but AbbVie has been making strides to diversify its revenue stream with some bold purchases. |
26498.0 | 2016-07-25 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-latest-13f-filers-holds-abbvie-2016-07-25 | nan | nan | At Holdings Channel , we have reviewed the latest batch of the 21 most recent 13F filings for the 06/30/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen .
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 03/31/2016 to 06/30/2016, with 6 having decreased their positions and 2 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 06/30/2016 reporting period (out of the 577 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 03/31/2016 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds reduced their holdings by 1,039,734 shares in the aggregate, from 30,882,740 down to 29,843,006 for a share count decline of approximately -3.37%. The overall top three funds holding ABBV on 06/30/2016 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc. (Symbol: ABBV).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel , we have reviewed the latest batch of the 21 most recent 13F filings for the 06/30/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 15 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc. (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 03/31/2016 to 06/30/2016, with 6 having decreased their positions and 2 new positions. | At Holdings Channel , we have reviewed the latest batch of the 21 most recent 13F filings for the 06/30/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 15 of these funds. We then compared that number to the sum total of ABBV shares those same funds held back at the 03/31/2016 period, to see how the aggregate share count held by hedge funds has moved for ABBV. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 03/31/2016 to 06/30/2016, with 6 having decreased their positions and 2 new positions. | Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 06/30/2016 reporting period (out of the 577 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 03/31/2016 period, to see how the aggregate share count held by hedge funds has moved for ABBV. The overall top three funds holding ABBV on 06/30/2016 were: We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | We then compared that number to the sum total of ABBV shares those same funds held back at the 03/31/2016 period, to see how the aggregate share count held by hedge funds has moved for ABBV. The overall top three funds holding ABBV on 06/30/2016 were: We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel , we have reviewed the latest batch of the 21 most recent 13F filings for the 06/30/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 15 of these funds. |
26499.0 | 2016-07-25 00:00:00 UTC | 7 Key Figures From Gilead Sciences' Q2 Earnings | ABBV | https://www.nasdaq.com/articles/7-key-figures-gilead-sciences-q2-earnings-2016-07-25 | nan | nan | Image source: Gilead Sciences, Inc.
Gilead Sciences, Inc. (NASDAQ: GILD) is one of the biggest companies in biopharma, but that hasn't kept investors from selling its shares this year. Stiffening competition in the market for hepatitis C treatment has caused sales of its multibillion-dollar hepatitis C drug Harvoni to falter, and that's crimping both sales and profit. What was the impact of these competitive headwinds in Q2? Here are seven figures from Gilead Sciences' second-quarter earnings release that suggest management has more work to do to overcome its challenges.
No. 1: $400 million.
Gilead Sciences' total revenue in the second quarter came in at $7.8 billion, down $400 million from the $8.2 billion it reported in the second quarter of 2015. The drop-off in sales is tied to lower average prices for its top-selling Harvoni, a hepatitis C drug that's become a go-to in genotype 1 patients.
No. 2: 28.9%.
Although Harvoni's prescription volume is supported by a global population of hepatitis C patients that exceeds 150 million people, the launch of cheaper genotype 1 treatments by AbbVie Inc. and Merck & Co. have forced Gilead Sciences to boost discounts. As a result, sales of Harvoni, Gilead Sciences' best seller, retrenched by 28.9% in Q2 versus a year ago. Harvoni revenue was $2.56 billion in Q2, down from $3.61 billion in Q2, 2015.
No. 3: $1 billion.
Slowing Harvoni sales resulted in fewer dollars dropping to the bottom line last quarter. Gilead Sciences' GAAP net income fell $1 billion year over year to $3.5 billion, or to $2.58 per share, from $4.5 billion, or $2.92 per share, in Q2, 2015. Even if you back out one-time items, non-GAAP net income still declined $600 million compared to a year ago.
No. 4: 45.6%.
A flurry of clinical trial activity and the roll-out of the company's new HIV therapies caused R&D and SG&A expenses to climb 45.6% in the past year to $2.37 billion on a GAAP basis. On a non-GAAP basis, R&D grew 48%, and SG&A grew 10.1%. If that increase in spending leads to new money-making drugs, then it isn't a bad thing, but only time will tell if that's the case.
No. 5: $400 million.
The approval of TAF, a safer formulation of Viread that's commonly used in Gilead Sciences' combination HIV therapies, is allowing the company to overhaul its HIV drug lineup. Because TAF poses less of a risk of liver damage than Viread, newly launched therapies including it can be used in more high-risk patients. As a result, the company's HIV product sales improved to $3.1 billion in the quarter from $2.7 billion a year ago.
No. 6: $619 million.
The drag on sales from Harvoni in the U.S. and Europe was partially offset by surging demand for the drug in Japan. Harvoni won approval in Japan last July, and Gilead Sciences' Japanese sales jumped to $619 million in Q2 from $62 million in Q2 2015. Now that we've celebrated the one-year anniversary of Japan's approval of Harvoni, though, the net benefit of Japan to total year-over-year Harvoni sales will decline.
No. 7: $24.6 billion.
After forking out $8 billion on stock buybacks in Q1, Gilead Sciences' management reined in repurchases last quarter to conserve cash. Because it spent only $1 billion on buybacks in Q2, management now has a $24.6 billion cash war chest it can use to finance acquisitions, up from $21.3 billion exiting March.
Looking ahead
The FDA granted approval to Gilead Sciences' next-generation hepatitis C drug, Epclusa, last month. Epclusa is approved for use in all hepatitis C genotypes, but the company hopes to position it in genotype 2 and 3 so it doesn't cannibalize Harvoni sales.
If management's marketing strategy for Epclusa works, it may reinvigorate sales growth in hepatitis C, but Gilead Sciences' outlook for the rest of 2016 isn't overly encouraging. Following its second-quarter performance, management cut its full-year sales guidance to a range of between $29.5 billion and $30.5 billion from between $30 billion and $31 billion.
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. 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 owns shares of 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 @ebcapital to 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. | Although Harvoni's prescription volume is supported by a global population of hepatitis C patients that exceeds 150 million people, the launch of cheaper genotype 1 treatments by AbbVie Inc. and Merck & Co. have forced Gilead Sciences to boost discounts. A flurry of clinical trial activity and the roll-out of the company's new HIV therapies caused R&D and SG&A expenses to climb 45.6% in the past year to $2.37 billion on a GAAP basis. If management's marketing strategy for Epclusa works, it may reinvigorate sales growth in hepatitis C, but Gilead Sciences' outlook for the rest of 2016 isn't overly encouraging. | Although Harvoni's prescription volume is supported by a global population of hepatitis C patients that exceeds 150 million people, the launch of cheaper genotype 1 treatments by AbbVie Inc. and Merck & Co. have forced Gilead Sciences to boost discounts. Image source: Gilead Sciences, Inc. Gilead Sciences, Inc. (NASDAQ: GILD) is one of the biggest companies in biopharma, but that hasn't kept investors from selling its shares this year. Gilead Sciences' GAAP net income fell $1 billion year over year to $3.5 billion, or to $2.58 per share, from $4.5 billion, or $2.92 per share, in Q2, 2015. | Although Harvoni's prescription volume is supported by a global population of hepatitis C patients that exceeds 150 million people, the launch of cheaper genotype 1 treatments by AbbVie Inc. and Merck & Co. have forced Gilead Sciences to boost discounts. Gilead Sciences' total revenue in the second quarter came in at $7.8 billion, down $400 million from the $8.2 billion it reported in the second quarter of 2015. Gilead Sciences' GAAP net income fell $1 billion year over year to $3.5 billion, or to $2.58 per share, from $4.5 billion, or $2.92 per share, in Q2, 2015. | Although Harvoni's prescription volume is supported by a global population of hepatitis C patients that exceeds 150 million people, the launch of cheaper genotype 1 treatments by AbbVie Inc. and Merck & Co. have forced Gilead Sciences to boost discounts. Stiffening competition in the market for hepatitis C treatment has caused sales of its multibillion-dollar hepatitis C drug Harvoni to falter, and that's crimping both sales and profit. Gilead Sciences' GAAP net income fell $1 billion year over year to $3.5 billion, or to $2.58 per share, from $4.5 billion, or $2.92 per share, in Q2, 2015. |
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