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26500.0 | 2016-07-25 00:00:00 UTC | Roche (RHHBY) Misses on Q2 Revenues, New Launches in Focus | ABBV | https://www.nasdaq.com/articles/roche-rhhby-misses-on-q2-revenues-new-launches-in-focus-2016-07-25 | nan | nan | Roche HoldingRHHBY reported sales of $12.1 billion (CHF11.7 billion) in the second quarter of 2016, missing the Zacks Consensus Estimate of $12.9 billion.
In the first half of 2016, however, sales were up 6% year over year in local currency. Growth was primarily driven by pharmaceutical sales in the U.S. and strong demand for immunodiagnostic products.
The company reports results under two divisions: Pharmaceuticals and Diagnostics. All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
First-Half 2016 Results in Detail
Sales at the Pharmaceuticals division increased 4% to CHF19.5 billion on the back of strong demand for oncology and immunology medicines. Sales of the HER2 breast cancer franchise (+10%) were driven by robust demand for Herceptin, Perjeta and Kadcyla. Herceptin sales grew 5% on the back of higher demand due to a longer duration of treatment in combination with Perjeta.
Sales of Perjeta were strong in both Europe and the U.S. driven mainly by uptake in the neoadjuvant setting and continually strong growth in the metastatic setting. Kadcyla sales increased on account of demand in the international region and Europe.
Sales of Avastin were up 4% due to increased demand in international markets, especially China where sales grew on improved access in the lung cancer setting. Robust sales of Rituxan/MabThera (+4%) also contributed significantly to the top line.
Sales of the immunology franchise were driven by strong uptake of Esbriet (+51%) and increased sales of Actemra/RoActemra (+17%) and Xolair (+19). The new subcutaneous formulation of Actemra, along with its use as a single agent, fueled sales. Demand was strong for Alecensa which was recently launched in the U.S. for a specific type of lung cancer.
However, sales of Pegasys (-49%) were hurt by competition from a new generation of treatments, while Valcyte/Cymevene (-14%) and Xeloda (-12%) suffered due to generic competition.
Revenues at the Diagnostics division were CHF5.6 billion, up 6% driven by solid performance of the professional diagnostics (+9%) unit, which was in turn, propelled by the immunodiagnostics business (+14%). Tissue diagnostics (+12%) and Molecular Diagnostics (+8%) also performed impressively. However, sales of diabetes care decreased due to pricing pressure in the U.S.
2016 Outlook
Roche continues to expect sales to increase in the low-to-mid single digits. The company expects core earnings to grow at a higher rate than sales. Roche intends to increase its dividend further in 2016.
ROCHE HLDG LTD Price and EPS Surprise
ROCHE HLDG LTD Price and EPS Surprise | ROCHE HLDG LTD Quote
Pipeline Update
Roche made strong pipeline progress in the first half of 2016. The FDA granted accelerated approval to Venclexta for a specific form of leukemia in the U.S. The drug was developed in collaboration with AbbVie ABBV . The FDA also granted accelerated approval to immunotherapy drug, Tecentriq, for bladder cancer.
The subcutaneous formulation of MabThera/Rituxan received approval in the EU for chronic lymphocytic leukemia in May. In Jun 2016, the European Commission approved Gazyva for the second-line treatment of follicular lymphoma. Meanwhile, the combination of Avastin and Tarceva received approval in Europe for the treatment of patients with a specific type of lung cancer.
Also, the marketing applications for Ocrevus for both relapsing and progressive multiple sclerosis is under review in the U.S. and EU. The PDUFA date in the U.S. is Dec 28, 2016. Results from the largest trial in giant cell arteritis (GCA) showed that Actemra/RoActemra effectively sustained remission through one year as compared to a 6- or 12-month steroid-only regimen in patients with newly diagnosed and relapsing GCA.
Roche also presented positive data on Tecentriq in the treatment of previously treated lung cancer. Moreover, the company revealed encouraging results on the drug in combination with chemotherapy, targeted anti-cancer medicines and other cancer immunotherapy agents in several tumor types from various trials.
However, Roche suffered a setback when the phase III study on Gazyva in previously untreated diffuse large B-cell lymphoma did not meet its primary goal of extending the time patients live without disease progression.
Our Take
Roche currently carries a Zacks Rank #3 (Hold). Sales in the second quarter fell short of estimates. The company is making efforts to broaden its portfolio outside the oncology space into immunology. New drug approvals such as those of Tecentriq, Cotellic and Alecensa also boosted sales.
However, headwinds in the form of generic competition for Xeloda and Valcyte may continue to hurt sales. Going forward, we expect investors to focus on new drug approvals, as the top line could be marred by the entry of biosimilars (expected in the second half of 2017 in Europe) for key drugs like MabThera and Herceptin.
Investors interested in the health care sector may consider Gilead Sciences GILD and Johnson & Johnson JNJ . Both the stocks carry a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The drug was developed in collaboration with AbbVie ABBV . Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. First-Half 2016 Results in Detail Sales at the Pharmaceuticals division increased 4% to CHF19.5 billion on the back of strong demand for oncology and immunology medicines. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The drug was developed in collaboration with AbbVie ABBV . First-Half 2016 Results in Detail Sales at the Pharmaceuticals division increased 4% to CHF19.5 billion on the back of strong demand for oncology and immunology medicines. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The drug was developed in collaboration with AbbVie ABBV . Sales of Avastin were up 4% due to increased demand in international markets, especially China where sales grew on improved access in the lung cancer setting. | The drug was developed in collaboration with AbbVie ABBV . Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The company reports results under two divisions: Pharmaceuticals and Diagnostics. |
26501.0 | 2016-07-24 00:00:00 UTC | 3 Important Takeaways From Johnson & Johnson's Second-Quarter Earnings | ABBV | https://www.nasdaq.com/articles/3-important-takeaways-johnson-johnsons-second-quarter-earnings-2016-07-24 | nan | nan | Image source: Johnson & Johnson.
Johnson & Johnson (NYSE: JNJ) is a healthcare Goliath that operates consumer healthcare, pharmaceuticals, and medical device businesses. Management recently reported second-quarter financials, and after reviewing results and listening to management's conference call, I have some key takeaways for investors.
1. Oncology sales growth continues, but slows
One of the biggest success stories in cancer treatment in the past couple years has been the approval of Imbruvica, which is sold by Johnson & Johnson and AbbVie Inc. (NYSE: ABBV) . It is so successful at treating chronic lymphocytic leukemia that its sales are soaring.
Thanks to label expansions that are allowing Imbruvica's use earlier in patient treatment, sales momentum has carried forward into 2016; however, the pace of that growth is slowing. For the first six months, Johnson & Johnson reports Imbruvica sales of $556 million, up from $270 million last year. That's impressive, but now that Imbruvica has become a top treatment option, growth is starting to slip. In Q2, Imbruvica sales grew 91%, a slowing from the 125% growth it registered in Q1.
2. Immunology sales aren't backing off
Thanks in large part to rising demand for Stelara, an injection therapy for psoriasis, Johnson & Johnson continues to improve its position as a leader in treating autoimmune diseases.
Last quarter, Stelara sales were up 41% and reached $804 million, putting the drug on an annualized sales pace of $3.2 billion. For comparison, Stelara's sales grew 36% year over year in Q1 to $735 million. Clearly, momentum for Stelara isn't waning.
Stelara's success is especially good news for investors because of the upcoming threat to sales of Remicade, Johnson & Johnson's megablockbluster immunology drug. The FDA approved Pfizer, Inc. 's(NYSE: PFE) Remicade biosimilar earlier this year and Pfizer has plans to launch that drug before the end of 2016. When Pfizer rolls out its generic alternative to Remicade, it could pose a big headwind to Remicade revenue. In Q2, Remicade sales totaled $1.8 billion, including $1.2 billion that came from the United States.
Image source: Johnson & Johnson.
3. Demand for cardiovascular drugs is strong
Two of Johnson & Johnson's biggest wins in the past few years have been Xarelto, an anticoagulant, and Invokana, a new therapy addressing type 2 diabetes.
In Q2, Xarelto sales jumped 26% year over year to $594 million. That performance will likely keep it as the second-best-selling drug in a class of next-generation anticoagulants known as factor Xa inhibitors. Factor Xa's like Xarelto are ripping away market share from warfarin, which has been the dominant anticoagulant over the past fifty years.
While Xarelto's growth remains strong, sales growth did slide slightly from 29% in Q1; that may suggest the factor Xa from Pfizer and Bristol-Myers Squibb , Eliquis, continues to win share more quickly than Xarelto. In Q1, Eliquis sales more than doubled year-over-year to $734 million.
Despite the impact of Eliquis on Xarelto, Johnson & Johnson investors might not need to worry too much about Xarelto's sales run rate in the coming months. In August, Portola Pharmaceuticals expects FDA approval of the first antidote to factor Xa anticoagulants and if that happens, the addressable market for factor Xa drugs could expand markedly.
Invokana is also rapidly winning support from patients and doctors. The drug blocks the reabsorption of glucose by the kidney, and its ability to help control blood sugar means it's increasingly being prescribed alongside metformin, the most widely used first-line diabetes treatment. In Q2, Invokana's sales improved 20% to $383 million.
Invokana's sales could climb even further in the second half of 2016 following the FDA's recent label expansion for Invokamet, a single-tablet combination of Invokana and metformin. Previously, Invokamet was approved for use in patients who failed to respond to Invokana or metformin monotherapy. Following this approval, Invokamet can be prescribed prior to prescribing those two drugs individually.
Fool-worthy thoughts
Overall, Johnson & Johnson delivered a solid quarter, but it was mostly unremarkable. Total sales grew 3.9% year over year to $18.5 billion, as strong pharmaceuticals sales were offset by tepid results in consumer goods and medical devices. Earnings growth wasn't overly impressive either; non-GAAP EPS improved by only 1.8%.
Nevertheless, Johnson & Johnson remains one of the biggest and most innovative companies in healthcare. While low-single-digit growth won't excite investors hunting growth stocks, J&J turned in a solid performance that reinforces why this stock can be a core holding in retiree portfolios. Given sales growth in oncology, immunology, and cardiovascular, Johnson & Johnson's record for returning money to investors doesn't appear to be in jeopardy. The company has a 50-year track record of dividend-friendly increases and at 2.6%, its current dividend yield is respectable enough to own shares.
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Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. 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. | Oncology sales growth continues, but slows One of the biggest success stories in cancer treatment in the past couple years has been the approval of Imbruvica, which is sold by Johnson & Johnson and AbbVie Inc. (NYSE: ABBV) . Thanks to label expansions that are allowing Imbruvica's use earlier in patient treatment, sales momentum has carried forward into 2016; however, the pace of that growth is slowing. Factor Xa's like Xarelto are ripping away market share from warfarin, which has been the dominant anticoagulant over the past fifty years. | Oncology sales growth continues, but slows One of the biggest success stories in cancer treatment in the past couple years has been the approval of Imbruvica, which is sold by Johnson & Johnson and AbbVie Inc. (NYSE: ABBV) . Demand for cardiovascular drugs is strong Two of Johnson & Johnson's biggest wins in the past few years have been Xarelto, an anticoagulant, and Invokana, a new therapy addressing type 2 diabetes. Total sales grew 3.9% year over year to $18.5 billion, as strong pharmaceuticals sales were offset by tepid results in consumer goods and medical devices. | Oncology sales growth continues, but slows One of the biggest success stories in cancer treatment in the past couple years has been the approval of Imbruvica, which is sold by Johnson & Johnson and AbbVie Inc. (NYSE: ABBV) . For the first six months, Johnson & Johnson reports Imbruvica sales of $556 million, up from $270 million last year. Stelara's success is especially good news for investors because of the upcoming threat to sales of Remicade, Johnson & Johnson's megablockbluster immunology drug. | Oncology sales growth continues, but slows One of the biggest success stories in cancer treatment in the past couple years has been the approval of Imbruvica, which is sold by Johnson & Johnson and AbbVie Inc. (NYSE: ABBV) . Stelara's success is especially good news for investors because of the upcoming threat to sales of Remicade, Johnson & Johnson's megablockbluster immunology drug. Demand for cardiovascular drugs is strong Two of Johnson & Johnson's biggest wins in the past few years have been Xarelto, an anticoagulant, and Invokana, a new therapy addressing type 2 diabetes. |
26502.0 | 2016-07-22 00:00:00 UTC | Biogen Inc: How Double-Digit Growth Got Trumped | ABBV | https://www.nasdaq.com/articles/biogen-inc-how-double-digit-growth-got-trumped-2016-07-22 | nan | nan | Image source: Getty Images.
Biogen (NASDAQ: BIIB) posted solid revenue and earnings growth when it released second-quarter earnings on Thursday. But the good earnings news was trumped by the announcement that its CEO, George Scangos, will step down as soon as a replacement can be found. At least Scangos is going out on a high note in terms of sales and earnings.
Biogen results: The raw numbers
Data source: Company press release.
What happened with Biogen this quarter?
Biogen's top-selling multiple sclerosis drug, Tecfidera, continues its solid growth, with sales jumping 12% year over year. It's not the hyper-growth investors have seen in the past, but it's still a solid increase.
The transition from Avonex to Plegridy, which can be taken less frequently, continues: Sales of Avonex are down 2% year over year, while sales of Plegridy are up 65% year over year. When you combine the two, Biogen saw a 6% increase for the class of multiple sclerosis that these two drugs belong to.
Sales of Biogen's other multiple sclerosis drug, Tysabri, increased a modest 7% year over year.
Biogen's recently launched hemophilia drugs, Eloctate and Alprolix, saw year-over-year revenue increases of 68% and 48%, respectively, though they're both far from blockbusters, with respective second-quarter sales of $125 million and $80 million.
Biogen gained FDA approval for Zinbryta, its newest multiple sclerosis drug that was developed in conjunction with AbbVie (NYSE: ABBV) .
What management had to say
When asked about the company's strategy for making acquisitions and licensing deals, Scangos was adamant that his departure would change nothing:
CFO Paul Clancy noted that it was a "tale of two cities" for Tecfidera growth: "In the United States, the lion's share -- from a change year-over-year basis -- is price, and is pretty stable unit trends on Tecfidera."
Outside the U.S., Clancy noted, it's a different story: "We are not seeing any pricing on a year-over-year basis, and all of the gains are attributable to volume and unit expansion."
Looking forward
With a solid quarter in the books, management increased 2016 revenue guidance slightly and now expects revenue to fall in the range of $11.2 billion to $11.4 billion. Previous top-line guidance was for $11.1 million to $11.3 million.
On the bottom line, management took a more aggressive bump in adjusted earnings per share guidance and now expects EPS between $19.70 and $20, up from previous guidance of $18.30 to $18.60.
Biogen and AbbVie plan to launch Zinbryta next month, but Clancy said the revenue contribution this year would be "modest." AbbVie gained its rights to half the drug after outbidding Biogen for Biogen's partner Facet Biotech. That was six years ago, so hopefully the duo has buried the hatchet by now.
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Brian Orelli has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Biogen. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biogen gained FDA approval for Zinbryta, its newest multiple sclerosis drug that was developed in conjunction with AbbVie (NYSE: ABBV) . Biogen and AbbVie plan to launch Zinbryta next month, but Clancy said the revenue contribution this year would be "modest." AbbVie gained its rights to half the drug after outbidding Biogen for Biogen's partner Facet Biotech. | Biogen gained FDA approval for Zinbryta, its newest multiple sclerosis drug that was developed in conjunction with AbbVie (NYSE: ABBV) . Biogen and AbbVie plan to launch Zinbryta next month, but Clancy said the revenue contribution this year would be "modest." AbbVie gained its rights to half the drug after outbidding Biogen for Biogen's partner Facet Biotech. | Biogen gained FDA approval for Zinbryta, its newest multiple sclerosis drug that was developed in conjunction with AbbVie (NYSE: ABBV) . Biogen and AbbVie plan to launch Zinbryta next month, but Clancy said the revenue contribution this year would be "modest." AbbVie gained its rights to half the drug after outbidding Biogen for Biogen's partner Facet Biotech. | Biogen gained FDA approval for Zinbryta, its newest multiple sclerosis drug that was developed in conjunction with AbbVie (NYSE: ABBV) . Biogen and AbbVie plan to launch Zinbryta next month, but Clancy said the revenue contribution this year would be "modest." AbbVie gained its rights to half the drug after outbidding Biogen for Biogen's partner Facet Biotech. |
26503.0 | 2016-07-21 00:00:00 UTC | The Zacks Analyst Blog Highlights: Zafgen, Celgene, Amgen, AbbVie and Biogen | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-zafgen-celgene-amgen-abbvie-and-biogen-2016-07-21 | nan | nan | For Immediate Release
Chicago, IL - July 21, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Zafgen ( ZFGN ), Celgene ( CELG ), Amgen ( AMGN ), AbbVie ( ABBV ) and Biogen ( BIIB ) .
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Here are highlights from Wednesday's Analyst Blog:
Biotech Stock Roundup: Q2 Earnings on the Way
This week, there were the usual regulatory and pipeline updates in the biotech sector. Biosimilars are taking center-stage with quite a few companies in the news this week related to their progress in this area.
Meanwhile, Zafgen ( ZFGN ) , a company focused on obesity and complex metabolic disorders, has decided to suspend the development of its lead pipeline candidate. In other news, immuno-oncology continues to attract deals with Celgene ( CELG ) agreeing to shell out up to $2.561 billion under a collaboration agreement.
Recap of the Week's Most Important Stories
1. The obesity market continues to pose challenges with yet another company deciding to change its priorities. Zafgen said that it has decided to suspend the development of its lead pipeline candidate, beloranib, and to refocus its resources on the development of a second-generation MetAP2 inhibitor, ZGN-1061, in severe and complicated obesity.
Beloranib was placed on full clinical hold in Dec 2015 by the FDA. Following discussions with the agency, Zafgen decided that the obstacles, costs and development timelines for beloranib did not justify additional investment in the program. Zafgen also announced a workforce reduction.
A few weeks back, Arena, which has a marketed obesity drug in its portfolio, had announced a cut in its workforce and said that it would be shifting its priorities to its proprietary clinical stage pipeline. Though Arena did get some good news this week -- the FDA granted approval for a new once-daily formulation of the company's obesity drug, Belviq.
2. Amgen ( AMGN ) , which is facing the prospect of biosimilar competition for many of its core drugs, got a bit of a breather recently with the FDA issuing a complete response letter (CRL) for Sandoz's biosimilar version of Amgen's Neulasta (pegfilgrastim). Amgen is already facing biosimilar competition from Zarxio - Sandoz's biosimilar version of Neupogen while an FDA advisory panel recently voted in favor of approving Sandoz's biosimilar version of Enbrel.
Amgen itself is working on bringing biosimilars to market and recently got a favorable vote from an FDA advisory panel for its biosimilar version of AbbVie's ( ABBV ) top-selling drug, Humira. Last week, Amgen signed up with Japanese company, Daiichi Sankyo, to commercialize nine biosimilars in Japan including the biosimilar version of Humira (Read more: Amgen and Daiichi Sankyo Team Up for Biosimilars in Japan ).
3. Biogen ( BIIB ) is also progressing with the development of biosimilars. Samsung Bioepis, the joint venture between Samsung BioLogics and Biogen, said that its regulatory application for SB5, a biosimilar version of Humira, has been accepted for review.
4. Celgene has entered into a strategic worldwide collaboration with immuno-oncology focused company Jounce. Celgene could end up paying up to $2.561 billion for the deal which provides Celgene with the option to jointly develop and commercialize Jounce's lead candidate, JTX-2011, and additional innovative immunotherapies targeting B cells, T regulatory cells and tumor-associated macrophages. This deal once again outlines the growing importance of immuno-oncology.
Meanwhile, Celgene gained EU approval for the use of its blockbuster cancer drug, Revlimid in adult patients with relapsed or refractory mantle cell lymphoma, a rare sub-type of aggressive non-Hodgkin's lymphoma (Read more: Celgene's Revlimid Gains EU Nod for Mantle Cell Lymphoma ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Zafgen ( ZFGN ), Celgene ( CELG ), Amgen ( AMGN ), AbbVie ( ABBV ) and Biogen ( BIIB ) . Amgen itself is working on bringing biosimilars to market and recently got a favorable vote from an FDA advisory panel for its biosimilar version of AbbVie's ( ABBV ) top-selling drug, Humira. Click to get this free report ZAFGEN INC (ZFGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include Zafgen ( ZFGN ), Celgene ( CELG ), Amgen ( AMGN ), AbbVie ( ABBV ) and Biogen ( BIIB ) . Click to get this free report ZAFGEN INC (ZFGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Amgen itself is working on bringing biosimilars to market and recently got a favorable vote from an FDA advisory panel for its biosimilar version of AbbVie's ( ABBV ) top-selling drug, Humira. | Click to get this free report ZAFGEN INC (ZFGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Zafgen ( ZFGN ), Celgene ( CELG ), Amgen ( AMGN ), AbbVie ( ABBV ) and Biogen ( BIIB ) . Amgen itself is working on bringing biosimilars to market and recently got a favorable vote from an FDA advisory panel for its biosimilar version of AbbVie's ( ABBV ) top-selling drug, Humira. | Stocks recently featured in the blog include Zafgen ( ZFGN ), Celgene ( CELG ), Amgen ( AMGN ), AbbVie ( ABBV ) and Biogen ( BIIB ) . Amgen itself is working on bringing biosimilars to market and recently got a favorable vote from an FDA advisory panel for its biosimilar version of AbbVie's ( ABBV ) top-selling drug, Humira. Click to get this free report ZAFGEN INC (ZFGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. |
26504.0 | 2016-07-21 00:00:00 UTC | Here's Why Myriad Genetics Is Down 26% in 2016 | ABBV | https://www.nasdaq.com/articles/heres-why-myriad-genetics-down-26-2016-2016-07-21 | nan | nan | MYGN data by YCharts .
Two of the largest daily declines have come in February and May, after the company reported quarterly earnings for its fiscal second and third quarters, respectively. However, total revenue and EPS increased in both periods compared to the year-ago periods. Importantly, revenue for Myriad Genetics' two newest diagnostic tools, Vectra DA and Prolaris, grew at healthy clips.
Vectra DA is a blood test used to determine the risks of future joint pain in patients with rheumatoid arthritis -- the same disease treated by AbbVie's Humira, the best-selling drug in the world. In other words, there's a large market and enormous growth potential. Vectra DA has delivered $35 million in revenue during the first nine months of the company's current fiscal year, representing 10% growth compared with 2015.
Prolaris uses a novel scoring system to determine the severity of prostate cancer tumors and help physicians determine appropriate treatment. It provides another solid growth opportunity for investors, and though its new to the market, Prolaris has delivered since its launch. The test generated $7.1 million in revenue in the previous two quarters, compared with just $900,000 in the year-ago period.
Vectra DA and Prolaris represent important products in the quest to diversify revenue away from the company's BRACAnalysis tool, which determines risk factors for breast and ovarian cancer, and which generates the bulk of the company's revenue. But these new products are still small potatoes, having combined for $42 million in revenue in the current fiscal year. All other tests have generated roughly $490 million in the same period.
Despite the encouraging performance of Vectra DA and Prolaris, Wall Street remains fixated on guidance, which has recently disappointed -- well, it has disappointed models made by Wall Street, anyway. Myriad Genetics has guided for revenue between $186 million and $188 million for the final quarter of its fiscal year, but Wall Street was looking for close to $190 million, according to estimates from Yahoo! The company's EPS guidance, in the range of $0.36 to $0.38, represented the low end of Wall Street expectations. Of course, even at the low end of guidance, Myriad Genetics is poised to top its 2015 performance.
More important for investors and Wall Street is the increased competition with the company's flagship product, BRACAnalysis. Invitae has a market cap about one-tenth that of Myriad Genetics, but it has a disruptive business model that makes it easier and cheaper for physicians to order diagnostic tests. In April, the Medicare contractor that sets pricing for both companies' tools listed Invitae's BRCA diagnostic tool for $622.53 -- representing 28% the price of BRACAnalysis. It's too early to predict an existential crisis for Myriad Genetics, but investors seem to be pricing in the inevitability of reduced prices, and therefore reduced revenue, from the top money-maker in the product lineup.
Reasons for optimism
Slowing revenue growth and disruption in its biggest market are major headwinds facing Myriad Genetics, but there are reasons for optimism in the long run. The company has two tests growing at healthy clips that could, in several years, insulate against falling revenue from BRACAnalysis. Additionally, this year the company has expanded strategic research collaborations with AbbVie (lung cancer) and the duo of Merck and Tesaro (breast cancer and ovarian cancer). Both collaborations are aimed at providing diagnostic tools for late-stage clinical therapies, including promising anti-PD-1 antibodies that are being tested in several cancer types. These are hardly the only molecular diagnostic tests in the pipeline, and success isn't guaranteed, but it highlights the fact that the company isn't as stale as the headlines might have you believe.
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 .
Maxx Chatsko has no position in any stocks mentioned. Follow him on Twitter to keep up with developments in the engineered biology field.
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. | Vectra DA is a blood test used to determine the risks of future joint pain in patients with rheumatoid arthritis -- the same disease treated by AbbVie's Humira, the best-selling drug in the world. Additionally, this year the company has expanded strategic research collaborations with AbbVie (lung cancer) and the duo of Merck and Tesaro (breast cancer and ovarian cancer). Invitae has a market cap about one-tenth that of Myriad Genetics, but it has a disruptive business model that makes it easier and cheaper for physicians to order diagnostic tests. | Vectra DA is a blood test used to determine the risks of future joint pain in patients with rheumatoid arthritis -- the same disease treated by AbbVie's Humira, the best-selling drug in the world. Additionally, this year the company has expanded strategic research collaborations with AbbVie (lung cancer) and the duo of Merck and Tesaro (breast cancer and ovarian cancer). Importantly, revenue for Myriad Genetics' two newest diagnostic tools, Vectra DA and Prolaris, grew at healthy clips. | Vectra DA is a blood test used to determine the risks of future joint pain in patients with rheumatoid arthritis -- the same disease treated by AbbVie's Humira, the best-selling drug in the world. Additionally, this year the company has expanded strategic research collaborations with AbbVie (lung cancer) and the duo of Merck and Tesaro (breast cancer and ovarian cancer). Vectra DA has delivered $35 million in revenue during the first nine months of the company's current fiscal year, representing 10% growth compared with 2015. | Vectra DA is a blood test used to determine the risks of future joint pain in patients with rheumatoid arthritis -- the same disease treated by AbbVie's Humira, the best-selling drug in the world. Additionally, this year the company has expanded strategic research collaborations with AbbVie (lung cancer) and the duo of Merck and Tesaro (breast cancer and ovarian cancer). Vectra DA has delivered $35 million in revenue during the first nine months of the company's current fiscal year, representing 10% growth compared with 2015. |
26505.0 | 2016-07-21 00:00:00 UTC | 3 Healthcare ETFs to Buy as JNJ Beats Q2 Earnings | ABBV | https://www.nasdaq.com/articles/3-healthcare-etfs-to-buy-as-jnj-beats-q2-earnings-2016-07-21 | nan | nan | With the Q2 earnings season under way, Johnson & JohnsonJNJ is one of the first to report results in the health care space. The world's biggest maker of health care products continued its long streak of earnings and revenue beat. Further, the company lifted its full-year outlook, reflecting confidence in its future growth (read: ETF Strategies for 2H ).
Johnson and Johnson Q2 Results in Focus
Earnings per share came in at $1.74, seven cents ahead of the Zacks Consensus Estimate and 1.8% higher than the year-ago earnings. Revenues were up 3.9% year over year to $18.5 billion and edged past the Zacks Consensus Estimate of $17.9 billion.
Healthy sales of new drugs like Darzalex, Invokana, Imbruvica and Xarelto and the strength of established drugs such as Stelara, Remicade, Imbruvica, Simponi and Invega Sustenna partially offset a steep decline in sales of the hepatitis C medicine - Olysio - which lost its competitive position in the U.S. to its rivals Gilead GILD and AbbVie ABBV .
Johnson & Johnson raised its guidance for 2016. The company now expects revenues in the range of $71.5-$72.2 billion compared with the previous forecast of $71.2-$71.9 billion. Additionally, the earnings per share guidance has been raised from $6.53-$6.68 to $6.63-$6.73. The Zacks Consensus Estimate is currently pegged at $71.73 billion for revenues and $6.65 for earnings per share.
Market Impact
Despite the earnings beat and encouraging guidance, shares of JNJ gained a nominal 1.7% on the day. This could be an attractive entry point for momentum investors given that Johnson & Johnson has a solid Momentum Style Score of 'B'. Further, the stock has a favorable Zacks Rank #2 (Buy).
ETFs to Buy
Based on impressive results and solid growth prospects, investors should definitely focus on ETFs that have a double-digit allocation to this diversified drug maker and grab any opportunity from a surge in the JNJ price. For those investors, we have highlighted three ETFs that are poised to outperform following Q2 results and have a top Zacks ETF Rank of 1 or 'Strong Buy' rating with a Medium risk outlook (see: all the Healthcare ETFs here ).
Health Care Select Sector SPDR FundXLV
The most popular healthcare ETF, XLV follows the Health Care Select Sector Index. This fund manages nearly $13.6 billion in its asset base and trades in heavy volume of around 12 million shares. Expense ratio came in at 0.14% annually. In total, the fund holds 59 securities in its basket with JNJ taking the top spot at 12.2% of assets. Pharma accounts for 39% share from a sector look while biotech, healthcare providers and services, and equipment and supplies make up for a double-digit exposure each.
iShares U.S. Healthcare ETFIYH
This fund provides exposure to 122 securities by tracking the Dow Jones U.S. Health Care Index. Here again, Johnson & Johnson dominates the fund's return at 11.7% of total assets. In terms of industrial exposure, pharma takes the top spot at 37.8%, followed by biotech (22.1%), and healthcare equipment (18.5%). The product has amassed nearly $2 billion in its asset base and charges 45 bps in annual fees. It trades in solid volume of around 134,000 shares a day (read: Follow J.P. Morgan with These Sector ETFs ).
Vanguard Health Care ETFVHT
This ETF tracks the MSCI US Investable Market Health Care 25/50 Index and holds 356 stocks in its basket. Out of these, Johnson & Johnson takes the top spot with 10.7% allocation. Pharma takes the largest share at 35.3% while biotech and healthcare equipment round off the top three spots. VHT is also one of the popular and liquid ETFs with AUM of $5.7 billion and average daily volume of about 227,000 shares. It charges 9 bps in annual fees and expenses.
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JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
SPDR-HLTH CR (XLV): ETF Research Reports
VIPERS-HLTH CR (VHT): ETF Research Reports
ISHARS-US HLTHC (IYH): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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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. | Healthy sales of new drugs like Darzalex, Invokana, Imbruvica and Xarelto and the strength of established drugs such as Stelara, Remicade, Imbruvica, Simponi and Invega Sustenna partially offset a steep decline in sales of the hepatitis C medicine - Olysio - which lost its competitive position in the U.S. to its rivals Gilead GILD and AbbVie ABBV . Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports To read this article on Zacks.com click here. Pharma accounts for 39% share from a sector look while biotech, healthcare providers and services, and equipment and supplies make up for a double-digit exposure each. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports To read this article on Zacks.com click here. Healthy sales of new drugs like Darzalex, Invokana, Imbruvica and Xarelto and the strength of established drugs such as Stelara, Remicade, Imbruvica, Simponi and Invega Sustenna partially offset a steep decline in sales of the hepatitis C medicine - Olysio - which lost its competitive position in the U.S. to its rivals Gilead GILD and AbbVie ABBV . Health Care Select Sector SPDR FundXLV The most popular healthcare ETF, XLV follows the Health Care Select Sector Index. | Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports To read this article on Zacks.com click here. Healthy sales of new drugs like Darzalex, Invokana, Imbruvica and Xarelto and the strength of established drugs such as Stelara, Remicade, Imbruvica, Simponi and Invega Sustenna partially offset a steep decline in sales of the hepatitis C medicine - Olysio - which lost its competitive position in the U.S. to its rivals Gilead GILD and AbbVie ABBV . Johnson and Johnson Q2 Results in Focus Earnings per share came in at $1.74, seven cents ahead of the Zacks Consensus Estimate and 1.8% higher than the year-ago earnings. | Healthy sales of new drugs like Darzalex, Invokana, Imbruvica and Xarelto and the strength of established drugs such as Stelara, Remicade, Imbruvica, Simponi and Invega Sustenna partially offset a steep decline in sales of the hepatitis C medicine - Olysio - which lost its competitive position in the U.S. to its rivals Gilead GILD and AbbVie ABBV . Click to get this free report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports To read this article on Zacks.com click here. Johnson and Johnson Q2 Results in Focus Earnings per share came in at $1.74, seven cents ahead of the Zacks Consensus Estimate and 1.8% higher than the year-ago earnings. |
26506.0 | 2016-07-21 00:00:00 UTC | These 5 Healthcare Stocks Have Huge Dividend Yields -- Are Any Worth Buying? | ABBV | https://www.nasdaq.com/articles/these-5-healthcare-stocks-have-huge-dividend-yields-are-any-worth-buying-2016-07-21 | nan | nan | Image source: Getty Images.
Most investors love to buy stocks that pay dividends, and it's not hard to figure out why. In today's low-interest-rate environment, millions are forced to invest in dividend-paying stocks to generate any sort of yield on their nest egg. Naturally, that fact forces some investors to buy the highest-yielding dividend stocks they can find, which can be a risky strategy. After all, stocks don't offer the same downside protection as government bonds.
To mitigate that risk, some investors buy stocks only from recession-resistant sectors such as healthcare. They also limit their search only to companies that are a part of major indices such as the S&P 500 .
With that in mind, I ran a screen of the highest-yielding healthcare stocks from the S&P 500. Here's a look at what that search produced.
DATA SOURCE: FINVIZ.
With the S&P 500 offering up a dividend yield of only 2% at the moment, these five companies offer payouts that are much higher than that of the index. But are any of these stocks actually worth buying? Let's take a closer look at these companies' current growth prospects and valuations to determine if any of them are worth owning.
Growth prospects
All of the companies on this list are big, established pharma stocks that have been dishing out dividends for years. However, in the age of megablockbuster drugs that are losing their patent protection, each company faces its own set of growth challenges in the years ahead.
Lets look at that list of five companies again, but this time let's include their future estimated growth rates based on what analysts are currently projecting.
Here's what that list looks like now.
DATA SOURCE: FINVIZ
The projected growth rates for these companies are all over the map, ranging from anemic to strong. Analysts are expecting double-digit growth for both AbbVie and Eli Lilly, with J&J and Pfizer in the upper-single-digit range.
Merck, on the other hand, isn't expected to do much. That's probably because its blockbuster drug Januvia is facing some real competition , which could weigh on its growth prospects from here. To me, that's a big enough reason to remove it from contention.
Valuation
Having a good idea of growth is one thing, but smart investing is all about getting good growth for a reasonable price. That's where valuation work comes in.
I'm a firm believer that you can't just look at any one metric to judge a company's value. For that reason, I like to look at a range of numbers when I'm trying to figure out how the market is pricing companies.
Here's a handful of valuation numbers on each of these companies that could help us refine the list further.
DATA SOURCE: FINVIZ and author's calcuation.
This list should help illustrate why I like to use a range of numbers to judge value. After all, if you only used trailing P/E you might immediately rule out Pfizer from contention. However, when you look at the forward P/E ratio, it actually looks quite cheap.
While none of these companies seem outrageously priced right now, Eli Lilly is trading at the highest premium to next year's earnings, so I'd suggest we remove it from out list. That's especially true when you consider that it currently offers up the lowest yield of the group and also sports one of the highest payout ratios .
These three stocks look like buys
Running these five companies through this simple test leaves us AbbVie, Pfizer, and Johnson & Johnson. I'm happy to call each company a buy right now.
AbbVie offers investors the best combination of yield, growth, and value right now, but you could argue that it's being priced properly. That's because its autoimmune drug, Humira, is responsible for generating more than 60% of AbbVie's total revenue last year, and with its U.S. patent set to expire this this December, the door could be open to biosimilar competition. Management isn't worried, having stated that the drug is protected until at least 2022, which is why it's projecting double-digit earnings growth from now until 2020. If that proves to be accurate, then buying shares today could prove to be profit-friendly.
Image source: Johnson & Johnson.
Pfizer's future is also looking quite bright. The the company's top line is poised for growth on the back of recent product launches such as the blood thinner Eliquis, the breast-cancer drug Ibrance, and the pneumococcal vaccine, Prevnar 13. It's also poised to be a major player in the biosimilar market thanks to its Hospira acquisition. Add in a strong pipeline and a cheap valuation, and this company looks like a strong buy.
That brings us to Johnson & Johnson, the bluest blue chip of them all. J&J is so big and so well diversified that its business is basically immune to market conditions. Want proof? The company has increased its adjusted earnings for 32 consecutive years , and its dividend has been boosted for 54 years in a row. That's amazing, and when you consider that 70% of the company's sales come from businesses where it holds the No. 1 or No. 2 position and that it plows billions into R&D each year, I'd argue that the company stands a great chance of keeping those streaks alive for decades to come.
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 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 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. | That's because its autoimmune drug, Humira, is responsible for generating more than 60% of AbbVie's total revenue last year, and with its U.S. patent set to expire this this December, the door could be open to biosimilar competition. Analysts are expecting double-digit growth for both AbbVie and Eli Lilly, with J&J and Pfizer in the upper-single-digit range. These three stocks look like buys Running these five companies through this simple test leaves us AbbVie, Pfizer, and Johnson & Johnson. | Analysts are expecting double-digit growth for both AbbVie and Eli Lilly, with J&J and Pfizer in the upper-single-digit range. These three stocks look like buys Running these five companies through this simple test leaves us AbbVie, Pfizer, and Johnson & Johnson. AbbVie offers investors the best combination of yield, growth, and value right now, but you could argue that it's being priced properly. | These three stocks look like buys Running these five companies through this simple test leaves us AbbVie, Pfizer, and Johnson & Johnson. Analysts are expecting double-digit growth for both AbbVie and Eli Lilly, with J&J and Pfizer in the upper-single-digit range. AbbVie offers investors the best combination of yield, growth, and value right now, but you could argue that it's being priced properly. | Analysts are expecting double-digit growth for both AbbVie and Eli Lilly, with J&J and Pfizer in the upper-single-digit range. These three stocks look like buys Running these five companies through this simple test leaves us AbbVie, Pfizer, and Johnson & Johnson. AbbVie offers investors the best combination of yield, growth, and value right now, but you could argue that it's being priced properly. |
26507.0 | 2016-07-20 00:00:00 UTC | iShares Core S&P Total U.S. Stock Market ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-core-sp-total-us-stock-market-etf-experiences-big-inflow-2016-07-20 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $162.3 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 43,350,000 to 45,000,000). Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.5%, AbbVie Inc. (Symbol: ABBV) is up about 0.7%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.4%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $98.75 as the 52 week high point - that compares with a last trade of $98.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.5%, AbbVie Inc. (Symbol: ABBV) is up about 0.7%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.4%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $98.75 as the 52 week high point - that compares with a last trade of $98.70. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.5%, AbbVie Inc. (Symbol: ABBV) is up about 0.7%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.4%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $98.75 as the 52 week high point - that compares with a last trade of $98.70. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.5%, AbbVie Inc. (Symbol: ABBV) is up about 0.7%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $162.3 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 43,350,000 to 45,000,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $98.75 as the 52 week high point - that compares with a last trade of $98.70. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.5%, AbbVie Inc. (Symbol: ABBV) is up about 0.7%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $162.3 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 43,350,000 to 45,000,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $98.75 as the 52 week high point - that compares with a last trade of $98.70. |
26508.0 | 2016-07-19 00:00:00 UTC | A Four-Stock 4% Dividend Growth Portfolio (ABBV, BPY, TD, WU) | ABBV | https://www.nasdaq.com/articles/a-four-stock-4-dividend-growth-portfolio-abbv-bpy-td-wu-2016-07-19 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The market is soaring to record highs, making all stocks too expensive to buy, right?
Wrong.
While exuberance is in the air, there are still a few overlooked gems paying dividends nearly 4% with strong growth potential.
We can easily build a portfolio of four stocks with overall strong revenue growth, growing dividends and a 3.9% average portfolio yield. That yield will only grow in the coming years thanks to each company's moat, making this a durable portfolio for an IRA or for investors eyeing retirement in the next decade or beyond.
So what's in it?
We've got four names: AbbVieInc ( ABBV ), Brookfield Property PartnersLP ( BPY ), Toronto-Dominion Bank ( TD ) and Western Union Company ( WU ) - names that have on average gone up just 2.4% in the last year, with none of them at 52-week highs (although some are close). At a glance, our portfolio looks like this:
Note that each of these companies is a large-cap stock with several years of dividend payout history. Why these stocks?
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Let's go through them one by one.
Under-Appreciated Innovation: AbbVie Inc (ABBV)
AbbVie recently received FDA approval for a Phase-2 study of a new treatment for a highly aggressive brain tumor that children sometimes develop. The company has many popular drugs, such as Humira, Biaxin, Survanta and Vicodin.
The company's years of proven research and development of drugs has made it popular in the past, but right now the stock is in a slump. There's no real good reason for this. Last year, revenues grew 14.6% and operating margins soared from 17% to 33%. The company also hiked its dividend at the beginning of this year-the fourth dividend hike in 5 years:
If AbbVie sustains its 7.3% annualized dividend growth, the company's dividend will be $1.15 in a decade. At the stock's current price, that will be a 7.3% annual dividend yield. Since AbbVie's product pipeline remains strong, it is a great candidate for buy-and-hold retiree investors today.
Durable Retail Presence: Brookfield Property Partners LP (BPY)
Brookfield Property Partners is a REIT that specializes in regional shopping malls. Almost immediately, many investors will recoil with horror for all the same reasons: e-commerce is killing retail, malls are dead now that teenagers have Snapchat, and so on. But this isn't quite accurate. BPY has been extremely selective and strategic in choosing its properties and geographical footprint in high yielding areas that are resisting these headline-grabbing trends. The fact is that, yes, the internet is booming and teens are glued to their phones, but people are still going to some malls in some parts of the country.
This is why Brookfield's funds from operations went up 13.6% from a year ago over the last fiscal year, causing dividend coverage to remain a strong 106%. That has also helped the company grow dividends since its IPO in 2013:
Since inception, Brookfield has grown its dividend by an annualized 3.7%.
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In a decade, our dividends will be 40.3 cents, giving us a 6.9% yield.
A Competitive Bank: Toronto-Dominion Bank (TD)
Many Americans don't know TD Bank is Canadian, but Toronto-Dominion's quiet emergence in America as a popular retail bank in urban areas is a testament to the company's ability to expand beyond its borders. Revenue growth is less impressive with this one, at just mid-single digits on a year-over-year basis, but the important metric here is dividends, which have been growing sharply over the last few years (while dividend coverage from cash flow remains solid):
There is just one problem with TD's dividend payments, as the chart above shows: currency fluctuations are a real risk both to investors and the company itself. As the company accounts in Canadian dollars, the hit to oil in 2014 hit the currency, and thus TD's dividend as seen in U.S. dollars.
That's not really a problem over the long term, however, as I'm projecting a 5.7% dividend growth rate over 5 years-and that's artificially low across TD's history, due to the oil issue. If we still keep this as a conservative expectation for the next decade, though, in 10 years our dividend yield will be 6.8% of today's prices.
Oil or not, this aggressive high-growth bank is a great pick.
Cashing in on Emerging Markets with Less Risk: Western Union Company (WU)
Emerging markets are a great growth driver, but low commodity prices hurt them terribly. Then there are issues of corruption, rule of law, unreliable accounting practices (just ask anyone who's bought Chinese stocks in the last decade about that). Emerging market stocks are not for everyone. There's a way to get into this market growth without the risk, however, with an old familiar American name: Western Union.
Some first-level types see WU as a fossil, quickly replaced by Paypal Holdings Inc ( PYPL ), Square Inc ( SQ ) and other high-tech interrupters. But Western Union remains the gold standard for remittance payments in much of the world, and several developing countries have Western Union branches even in the most remote villages where percentage income growth is at its strongest around the world.
Still, Western Union is not showing revenue growth, with income actually falling 2.2% last fiscal year. That doesn't change the fact that WU remains a highly profitable company with a wide moat in many parts of the world. Operating margins have remained around 20% for the last 3 years, which is why WU decided to buy over $1 billion in shares last year.
On top of that, WU has one of the highest dividend growth rates out there:
Doubling its payouts in the last 5 years, WU has rewarded shareholders who have stayed with the company despite the technological innovation narrative that drove exuberance in Paypal and Square over the last few years. With a 14.9% dividend growth rate over the last half-decade, WU holders from 5 years ago saw their yield-on-cost soar from 1.6% to 3.2%. Since the stock price is virtually unchanged since then, you can buy WU today and still capture that same yield.
If Western Union continues this pace of dividend payments, we will enjoy a 12.8% dividend yield in 10 years based on the stock's current price. That seems unreal, absurd, extreme-but it's there in the numbers. The big question for investors is whether WU can maintain this increase in payouts with flat revenues, which is why the market hasn't capitalized on the dividend growth yet.
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I believe WU can. The company's buyback plan accounts for over 12% of shares outstanding. After that, the company will still have plenty of net income left over to continue buying back shares if they can't grow revenues. That's the beauty of a cash generating operation: even if you're dead in the water, you're still rich.
And 3 Big 8%+ Yields Available Today
Yes, the market is at new highs, and many stocks are expensive. Dividend growth investors have essentially been stuck waiting for the market to correct before buying more, but there's no reason to wait. There are four great dividend growth stocks at reasonable prices right now with tremendous growth potential. It just takes a bit of patience to see those dividend yields really soar.
If you don't have the patience (or time) to wait, there are some high yield dividend stocks and funds that are still affordably priced and offer a high rate of income today. I'm talking about 8%, 8.4% and 11% annual dividends with up to 15% additional price upside. Click here and I'll show you what these income investments are along with the names, tickers and buy prices for my three favorites.
The post A Four-Stock 4% Dividend Growth Portfolio (ABBV, BPY, TD, WU) 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. | We've got four names: AbbVieInc ( ABBV ), Brookfield Property PartnersLP ( BPY ), Toronto-Dominion Bank ( TD ) and Western Union Company ( WU ) - names that have on average gone up just 2.4% in the last year, with none of them at 52-week highs (although some are close). Under-Appreciated Innovation: AbbVie Inc (ABBV) AbbVie recently received FDA approval for a Phase-2 study of a new treatment for a highly aggressive brain tumor that children sometimes develop. The company also hiked its dividend at the beginning of this year-the fourth dividend hike in 5 years: If AbbVie sustains its 7.3% annualized dividend growth, the company's dividend will be $1.15 in a decade. | We've got four names: AbbVieInc ( ABBV ), Brookfield Property PartnersLP ( BPY ), Toronto-Dominion Bank ( TD ) and Western Union Company ( WU ) - names that have on average gone up just 2.4% in the last year, with none of them at 52-week highs (although some are close). Under-Appreciated Innovation: AbbVie Inc (ABBV) AbbVie recently received FDA approval for a Phase-2 study of a new treatment for a highly aggressive brain tumor that children sometimes develop. The company also hiked its dividend at the beginning of this year-the fourth dividend hike in 5 years: If AbbVie sustains its 7.3% annualized dividend growth, the company's dividend will be $1.15 in a decade. | The company also hiked its dividend at the beginning of this year-the fourth dividend hike in 5 years: If AbbVie sustains its 7.3% annualized dividend growth, the company's dividend will be $1.15 in a decade. We've got four names: AbbVieInc ( ABBV ), Brookfield Property PartnersLP ( BPY ), Toronto-Dominion Bank ( TD ) and Western Union Company ( WU ) - names that have on average gone up just 2.4% in the last year, with none of them at 52-week highs (although some are close). Under-Appreciated Innovation: AbbVie Inc (ABBV) AbbVie recently received FDA approval for a Phase-2 study of a new treatment for a highly aggressive brain tumor that children sometimes develop. | We've got four names: AbbVieInc ( ABBV ), Brookfield Property PartnersLP ( BPY ), Toronto-Dominion Bank ( TD ) and Western Union Company ( WU ) - names that have on average gone up just 2.4% in the last year, with none of them at 52-week highs (although some are close). Under-Appreciated Innovation: AbbVie Inc (ABBV) AbbVie recently received FDA approval for a Phase-2 study of a new treatment for a highly aggressive brain tumor that children sometimes develop. The company also hiked its dividend at the beginning of this year-the fourth dividend hike in 5 years: If AbbVie sustains its 7.3% annualized dividend growth, the company's dividend will be $1.15 in a decade. |
26509.0 | 2016-07-14 00:00:00 UTC | Fundamentals That Will Impact All Our Portfolios, Domestic And Internationally | ABBV | https://www.nasdaq.com/articles/fundamentals-will-impact-all-our-portfolios-domestic-and-internationally-2016-07-14 | nan | nan | By Peter Knight :
1933-1939 vs. 2009-2016 - You be the judge:
1933: Economic stimulus per capita: $746 (inflation-adjusted to $13,785 in 2016 dollars)
1933-1939: Federal debt to GDP moved from 39.40% to 43.25%
1933-1939: National debt per capita: $663 ($11,458 in 2016 dollars)
Vs.
2009: Economic stimulus per capita - $2,691 ($3,003 in 2016 dollars)
2008-2016: Bank bailouts already paid - $14,426 per capita
2008-2016: US commitment to bank bailouts - $16.8 trillion, $52,688 per capita
2008-2016: Federal debt-to-GDP ratio moved from 67.85% to 105.20%
2016: National debt per capita - $60,215
Roosevelt's Economic Stimulus,The New Dealor "3Rs", cost a total of $50 billion ($876 billion in 2016 dollars) to fund:
Relief for the unemployed and poor;
Recovery of the economy to normal levels; and
Reform of the financial system to prevent a repeat recession or depression.
Roosevelt's New Deal injected money directly into the economy, rebuilding infrastructure, creating jobs, enhancing the quality of life for the current and future generations of US citizens. Roosevelt's economic stimulus was accompanied by accurate economic reporting, ensuring citizens could objectively monitor progress of their elected officials to ensure the United States was on the right path.
The face value of Obama's"economic stimulus" was $858 billion ($960 billion in 2016 dollars), the majority of it tax credits and programs already on deck to be funded.
Obama's economic stimulus, according to the hard data, has done irreparable long-term damage to the US dollar, debt market, taxpayer and US economy. 2009 stimulus was sold as countercyclical. In other words, when the economy is slow, the Federal government acts as a spender of last resort, injecting money into the economy hopefully in places where those dollars have a high velocity . Didn't happen, over $4.6 trillion has already been paid out to the banks that caused the crisis. Savers at the same time are being stripped of trillions in interest income by the largest negative rates of return in history for the longest period of time in history, removing trillionsfrom the economy . During the Obama stimulus, the national debt increased by 94%, the debt-to-GDP ratio rose to 105% (113% World War II all-time high) and the US taxpayer responsible for the tab has nothing to show for it except a bill they can will to their children.
Roosevelt's New Deal put millions of Americans back to work. The Civilian Conservation Corps alone employed over two million men (2.98% of the 1933 US population). New Deal programs built roads, bridges, dams, airports, railways, schools, courthouses, city halls, hospitals, post offices from coast to coast, strengthening America's infrastructure and putting people who wanted to work back to work.
Obama's stimulus was void of substance for US citizens. The majority of the stimulus package were tax incentives and programs already on deck to be funded; in other words, the $47 billion in handouts to aid low income and the unemployed was on deck to be funded, but were included in the American Recovery and Reinvestment Act of 2009 to increase the represented total stimulus amount.
Roosevelt's New Deal projects included; the Triborough Bridge, LaGuardia Airport, Lincoln Tunnel, Overseas Highway, Dams in Tennessee, Shasta Dam in California, Hoover Dam on the Colorado River, Grand Coulee Dam in Washington State, the nation's first freeway in Los Angeles, Golden Gate Bridge, San Francisco-Oakland Bay Bridge, 469-mile-long Blue Ridge Parkway, Great Smoky Mountains and Shenandoah National Park, just to name a few. See this SA post for pictures and more information in the New Deal projects.
Obama's American Recovery and Reinvestment Act of 2009 showcased clean, renewable efficient energy programs.
Let's compare Roosevelt's 1933 New Deal clean, renewable and efficient energy programs to Obama's in 2009
Obama's clean, renewable, efficient energy programs cost $68.4 billion, plus tax incentives. President Obama said he "is committed to taking responsible stepsto address climate change , promote clean energy and energy efficiency, to ensure a cleaner, more stable environment for future generations" and "development of innovative, low-cost clean energy technologies for tomorrow" including rooftop solar, energy storage (batteries), smart grid technology, programmable thermostats, methane gas capture. The program also touted achieving an economy-wide target to reduce emissions by 26-28% below 2005 levels before 2025, but nothing big on wind (just tax credits) or hydroelectric power ( Source: The White House) .
What Obama's $68.4 billion bought US taxpayers
Utility-scale solar in the US now averages 5 cents per kilowatt-hour (more than seven times the cost of hydroelectric power). All solar power in United States satisfies less than 0.5% of the US power needs.
Rooftop Solar
Source: PV-Tech
Energy storage (batteries)
Smart grid technology
Programmable thermostats
Methane gas capture
Cost of production, 7 cents per kilowatt-hour (kWh) or 10 times the cost of hydroelectric power; farmers also get a 4 cent per kilowatt-hour credit (Source: NY Times) .
During Obama's economic stimulus, new EPA carbon regulations came into play that according to the US Chamber of Commerce will increase energy costs, reduce GDP by $51 billion and cost 442,000 jobs by 2022.
Roosevelt's idea in 1933 forclean, renewable and efficient energy programs was different
In the US, hydropower is produced for an average of 0.7 cents per kilowatt-hour (kWh) or 1/7 the cost of solar, 1/10th of methane gas capture.
Hydroelectric power is very efficient; "hydro turbines can convert as much as 90% of the available energy into electricity. The best fossil fuel plants are about 50% efficient.
The Hoover Dam cost $859 million in 2016 dollars
The dam's construction employed thousands of workers. Now in its 81st year of operation, it continues to control flooding and provide water and clean energy to millions in Arizona, southern California, and southern Nevada. The Hoover Dam generates on average 4 billion kilowatt-hours of hydroelectric power each year. The plant has a rated capacity of 2,998,000 horsepower.
Shasta Dam in California cost $633 million in 2016 dollars
Construction employed thousands. Now in its 71st year of operation, it continues to control flooding and provide water and clean energy to millions in northern California.
The Grand Coulee Dam in Washington State cost $928 million in 2016 dollars
Construction employed thousands. Now in its 74th year of operation, it continues to control flooding and provide water and clean energy to millions of people in Washington State.
Total cost of the three dams: $2.68 billion in 2016 dollars
For more than 70 years, these dams have controlled floods and provided water and clean power to millions of homes and businesses at 1/3 to 1/10th the cost of the Obama clean energy programs.
Total cost of Obama's clean energy programs: $68.4 billion
Cost of rebuilding America during the Great Depression
From 1933 to 1939, the national debt grew from $22.54 billion to $40.44 billion, or plus 79.41% (converted into 2016 dollars from $416.53 billion to $698.93 billion or + $284.40 billion).
Source:usgovernmentspending.com
From 2008 to 2016, the US national debt grew from $9.98 trillion to $19.43 trillion or plus 94.69%
Source: usgovernmentspending.com
Debt to GDP is where you see the difference between a stimulus program that works and one that doesn't
One that works:
From 1933 to 1939, the Federal debt-to-GDP ratio moved from 39.40% to 43.25%.
Source: usgovernmentspending.com
From 2008 to 2016, the Federal debt-to-GDP ratio moved from 67% to 105% (all-time high from World War II was 113%).
Source: usgovernmentspending.com
Roosevelt's reforms, first executive order and first act as president
When Roosevelt took office, the Great Depression was crippling the US economy. In response, the new president called a special session of Congress the day after the inauguration and declared a four-day banking holiday that shut down the banking system, including the Federal Reserve . This action was followed a few days later by the passage of the Emergency Banking Act, which was intended to restore Americans' confidence in banks when they reopened and rebuild confidence in the nation's banking system.
Emergency Banking Act
Title I expanded presidential authority during a banking crisis, including regulation of all banking functions, including "any transactions in foreign exchange, transfers of credit between or payments by banking institutions as defined by the President , and export, hoarding, melting, or earmarking of gold or silver coin."
Title II gave the comptroller of the currency the power to restrict the operations of a bank with impaired assets and to appoint a conservator , who "shall take possession of the books, records, and assets of every description of such bank, and take such action as may be necessary to conserve the assets of such bank pending further disposition of its business."
Title III allowed the secretary of the Treasury to determine whether a bank needed additional funds to operate and "with the approval of the President request the Reconstruction Finance Corporation to make loans secured."
Other legislation also helped make the financial landscape more solid, such as the Banking Act of 1932 and the Reconstruction Finance Corporation Act of 1932. The Emergency Banking Act of 1933 itself is regarded by many as helping to set the nation's banking system right during the Great Depression (Source : Federal Reserve Bank of St. Louis) .
President Roosevelt attributed the Great Depression to "unscrupulous bankers and money lenders" . He let them go bankrupt, his administration " tried to jail those responsible" for enabling rampant speculation and " unethical lending practices of the banks that led the eventual crash of 1929 (1932-34 Pecora Hearings). Unfortunately, there were no specific rules in place to prosecute "unscrupulous bankers and money lenders" and he created the SEC to try and prevent future abuses.
Many of Roosevelt's New Deal programs remain active today, with some still operating under the original names, including the Federal Deposit Insurance Corporation (FDIC), the Federal Crop Insurance Corporation (( FCIC )), the Federal Housing Administration (FHA), the Tennessee Valley Authority (TVA), the Securities and Exchange Commission (SEC) and the largest Social Security.
Roosevelt accomplished this as he recovered from polio and dealt with Hitler (Germany), Mussolini (Italy) and Hirohito (Japan) and prepared the United States for, and to win World War II.
Obama's reforms, first executive order and fist act as president
Obama took office January 20, 2009. Like 1933, in 2009, the US was in the bowels of a financial crisis; unemployment was at a 25-year high and climbing.
After a flubbed oath of office that forced him to take it over again, he gave a strangely uninspiring and forgettable address. President and Mrs. Obama found time for Hollywood celebrities, Washington glitterati, and politicos of every shape and size, but somehow had no room on their dance card for the 48 Medal of Honor winners who attended the "Salute to Heroes" ball. It was the first time in the ball's 56-year history the Commander in Chief was a no show.
The day after the inauguration as the 44th president, his first executive order was to officially close off his personal records to the public.
Nine days later his first act, the Lilly Ledbetter Fair Pay Act of 2009. The act states that the 180-day statute of limitations for filing an equal-pay lawsuits regarding pay discrimination resets with each new paycheck affected by that discriminatory action.
Obama's reforms and policy on the banking crisis
Rather than try hold those responsible for the banking crisis accountable as Roosevelt did, Obama's "economic stimulus" continued to supplement the $700 billion President Bush authorized for the banks in October 2008.
According to the Special Inspector General for TARP, the bailout commitment total for the US government is now up to $16.8 trillion with $4.6 trillion already paid out. Yes, it was trillions not billions, and the banks are now even larger and still too big to fail. $16.8 trillion bank bailout commitments equates to $116,525 per taxpayer, $52,688 per capita. $4.6 trillion that has already been paid out equates to $31,905 per taxpayer, $14,426 per capita ( Sources:Inspector GeneralandForbes ).
Economic stimulus for the US taxpayer and citizen was more modest with a face value $858 billion (including tax incentives); the $858 billion equates to $5,951 per taxpayer or $2,610 per capita.
February 17, 2009, American Recovery and Reinvestment Act. The primary purpose of ARRA was to save and create jobs almost immediately. Secondary purpose to provide temporary relief programs for those most affected by the recession.
April 27, 2009, Obama "buzzes" New York City in Air Force One, causing 911 survivors to panic.
May 15, 2009, provision of the stimulus package caused outrage in the Canadian business community. The government in Canada "retaliated" by enacting restrictions on trade with the US.
The American Recovery and Reinvestment Act of 2009, Obama's "solution to the Great Recession."
It gets even worse
"Economic stimulus" drops to about $42 billion after you pull out the tax credits, pork barrel energy programs and what was already on deck to be paid. $42 billion equates to about $291 per taxpayer, or $131.72 per capita.
What "economic stimulus" did for savers
$42 billion is 4.25% of the minimum we know that savers lost in interest income from the largest negative rates of return in history for the longest period of time in history (This also assumes that you are in the 9% minority who give current BLS.GOV inflation calculations creditability).
The math on negative rates of return
1957 to 2007
Average Treasury rate = 6.48%
Average reported CPI = 4.10%
Average positive rate of return = +2.38%
Source :Federal Reserve
Positive rate of return; the CPI (in red) is below deposit rates.
SourceFederal Reserve
Negative rate; the reported CPI (in red) is above deposit rates.
Source: Federal Reserve
What negative rates of return have cost savers
Nearly $1 trillion confirmed in negative rates of return (below the CPI). Over $3.8 trillion relative to the 1957-2007 positive rate of return average.
Source: Federal Reserve
In reality it's likely far worse than a total of $3.8 trillion
91% of professional traders surveyed believe inflation is being under reported, 63% believe true inflation is twice what is reported. Pre-1980 BLS.GOV inflation calculation methods measure a constant standard of living; current methods measure a minimum standard of living. 1980 pre-revision BLS.GOV calculation methods put inflation three times higher than what is currently reported by the BLS.GOV.
The CPI not only dictates Treasury rates, but all other governmental expenditures that are linked to the CPI rate like Social Security benefit increases.
From 2008 to 2015, an average of $1.2 trillion has been removed from the economy annually due to lost interest income on US Treasury debt and increases that did not occur to Social Security recipients directly as a result of the current inflation misrepresentations by the BLS.GOV. Details, all supporting charts and data :
How does striping savers, Social Security recipients, soldiers, policemen, firemen, every other government employee, their suppliers and the free market out of trillions "stimulate an economy"?
What did economic stimulus do for borrowers?
In 2009, the Fed Funds bank borrowing rate dropped to 0.13%,
the prime rate remained unchanged at 3.25% until December 2015, then bumped up to 3.50%, and
consumer credit card rates remained above 13.00%, close to the 20-year average of 14.22%.
Fed Funds bank borrowing rate (red) relative to bank lending rates:
Red = Fed Funds bank borrowing rate
Black = Prime lending rate
Green = Average credit card rate
Blue = 30-year conventional mortgage rate
Source :Federal Reserve
Not that Japan is any example to follow, but when Japan's deposit rates went to zero, the Japanese at least had the conscience to lower their prime lending rate to 0.95%
At 0.95%, Japan's prime rate is less than 1/3 of the 3.00% gross profit margin between the US Fed Funds rate and prime lending rate.
Source :Bank of Japan
What "economic stimulus" did for the US Treasury
Enabled the Treasury to finance over 10 trillion in new deficit spending at the lowest rates in history.
Allowed the US Treasury to refinance existing Federal debt at the lowest rates in history ( Maturity Extension Program ).
Locked in the US Treasury's debt service cost at the lowest rates for the longest period of time in history; the average US Treasury duration is now nearly six years, and average yield less than 2.75%.
Red = Federal debt
Blue = Federal debt held by Federal Reserve banks
Light Blue = Social Security
Green = Federal debt service cost that the Fed stopped reporting
Source :Federal Reserve
What "economic stimulus" did for the US economy
The US debt to GDP ratio is currently the worst since World War II at 105% and is quickly closing in on the all-time high of 113%.
Current debt-to-GDP ratio, 105%
Debt to GDP in 2009 when "economic recovery" officially began, 80.10%
Debt to GDP at the height of the Great Depression, 39%
All-time high debt to GDP during World War II, 113%
Source :Federal Reserve
Budget deficits still exceed $400+ billion annually. Each 1.00% increase in debt service will add $192 billion to the current $400+ billion annual deficits.
Source : Federal Reserve
The tax receipt growth to Federal debt ratio is by far the worst in history. From 2008 to 2015, the US national debt increased by 104% while tax receipts increased by only 36%.
If rates rise, it will crush tax receipts and eventually generate new high annual budget deficits.
Red = National debt
Green = Debt service cost
Black = Personal income tax receipts
Blue = Corporate tax receipts
The worst debt to personal income ratio in history
Red = National debt
Green = Personal income
Source :Federal Reserve
The worst debt to employed population ratio in history.
Red = National debt
Green = Non-farm payroll
Black = Total population
Source : Federal Reserve
Millions in the US annually are still losing their homes.
US Mortgage delinquency rates remain at 6.16% in 2016
6.16% is nearly twice the pre-recession all-time high of 3.36%
Nearly three times the pre-recession average of 2.24%
Source :Federal Reserve
Home ownership in the 21st century is at a new all-time low.
Source :Federal Reserve
The worst trade deficits on record; over $5 trillion has left the US for foreign shores since "economic stimulus and recovery" began.
From 1960 to 2007, the cumulative trade deficit was $7.73 trillion
From 2008 to 2016, $5.13 trillion
Cumulative total increase from 2008 to 2016 66.31%
Since 1960, $12.86 trillion in wealth has transferred from domestic to foreign accounts.
Source1960-2013 Federal Reserve
Source2014-2016 Trading Economics
"Quantitative Easing," which leads to inflation and dollar devaluation.
"Quantitative Easing" created $4.19 trillion with keypunch entries backed by no tangible assets or income flow to:
Bail out the banks that facilitated the debt crisis.
Purchase record amounts of US Federal debt that no one else would buy at non competitive interest rates.
Force and hold rates at historic lows enabling the US Treasury to finance over $10 trillion in new Federal debt at the lowest rates in history.
$4.19 trillion is nearly five times greater than total Federal debt was during the "inflationary debt crisis" of 1980 when short-term rates soared above 18%.
1980 Federal debt = 863 billion ( $2.50 trillion in 2016 dollars )
2016 Federal debt = 19.23 trillion
Fed's balance sheet
Red = 2.46 trillion in US Treasury
Green = 1.73 trillion in bad bank debt
Source :Federal Reserve
During the "economic stimulus," the US attained and maintained the worst debt rating in its history.
13 countries now have a higher debt rating than the US; most have the same or higher deposit rates.
Supporting Data
How the US did against China, the world's second largest economy during "economic stimulus"
China by the Fed's own numbers buried the US during "economic stimulus and recovery."
The worst growth ratio on record against China.
Blue = US GDP growth
Red = China GDP growth
Source :Federal Reserve
The worst debt-to-GDP ratio on record.
Blue = US debt to GDP
Red = China's debt to GDP
Source :Federal Reserve
The "balance" of trade was beyond ugly
Blue = US "balance" of trade
Red = China's "balance" of trade
Source :Federal Reserve
The widest spread on record between the US's and China's short-term interest rates.
Source :Federal Reserve
During "economic stimulus and recovery," the USD had an overall depreciation of 10.27% against the Chinese renminbi despite massive intervention by the Chinese to devalue their currency.
Source :Federal Reserve
The World Bank tells us China's economy will surpass the US's by 2019.
Greenspan enabled the financial crisis
Greenspan's agenda one week after leaving the Fed.
7 February, 2006, Lehman Brothers paid Greenspan $250,000 to meet with 15 of its most important hedge fund clients in Lehman's executive dining room. Greenspan's primary theme was the white-hot U.S. housing market was slowing down, but evidence of it would not show up statistically for several months and it could take more than a year.
Housing prices fell, global investor demand for mortgage-related securities evaporated, many of the attendees at the 7 February, 2016, Lehman Brothers dinner that negated Greenspan's advice watched their hedge funds implode as subprime mortgage failures ignited the largest financial crisis in US history.
15 September, 2008, Lehman Brothers filed for bankruptcy; at the time, it was the largest BK in history, as its assets far surpassed those of previous bankrupt giants such as WorldCom and Enron.
In the video below Greenspan apologized for nearly two decades of failed monetary policy that put the US into the largest financial crisis in history, but kept Lehman's 250K fee and still earns over 100K per "speaking engagement"
Bernanke made it worse
31 January, 2006, Bernanke becomes Fed chair. How could this clueless wonder calls on the market earn him the job to navigate the US out of crisis.
They didn't, most traders I know believe Bernanke was put in because he was clueless after Greenspan get the Fed into so much trouble by essentially enabling the banking crisis.
Fed independence from the US government collapsed. The US government gave the Fed two options, do exactly what you're told or we'll audit you for the first time in 102 years. An audit would pull your alumni off the 25K to 250K per hour speaking tour and onto the jail tour. Bernanke assumed the position for the Federal Treasury rather than the Federal Justice System and currently receives 100K to 250K an hour on the speaking tour.
Now Grandma Yellen has assumed the position and is doing exactly what she is told by the federal Government telling economic recovery fairy tales that no one believes.
Fed creditability with the market is at a new all-time low
Yellen's latest fairytale tells us the economy is in "recovery," and there will be eight rate hikes between now and December 2018; the market says less than two.
A-C on the chart below shows the market's expectations for rate hikes:
A) In June 2011, the market was pricing in three 0.25% rate hikes by March 2019, with the spread between the September 2016 (GEU16) and March 2019 (GEH19) deliveries at 0.75, position value at $1,875.
B) By November 2013, optimism for US economic recovery and rate normalization peaked with the market pricing in nine 0.25% rate hikes, the spread moved to 2.25, position value $5,625.00 USD.
C) Current rate hike expectations have dropped to less than two 0.25% hikes, with the spread at 0.3750, position value at $937.50.
D) If the market had faith in the Fed, the spread between the September 2016 (GEU16) and March 2019 (GEH19) deliveries would be 2.25, reflecting the Fed's expected eight 0.25% hikes; position value $5,625.00.
E) I think the Fed is lying about the economic recovery and rate hikes while the market is overly pessimistic (basically it's telling you to move down into the bunker). I believe we'll see four 0.25 rate hikes between now and March 2019. I'm in this position at 0.3750 position value $937.50, my objective is 0.8750 position value $2,187.50 quotes . I believe the rate hike won't be generated by "economic recovery," but the US's inability to borrow as it fires up more QE and its debt creditability erodes. Give new meaning to the phrase "collateral damage" (as in borrowing collateral):
The only way the US can fix its debt problem with more debt is if the money borrowed goes to programs like Roosevelt's which injected money directly into the economy.
1933 economic stimulus per capita; $746 or $13,785 in 2016 dollars
1933 to 1939, the Federal debt-to-GDP ratio moved from 39.40% to 43.25%
1939 national debt per capita $663 or $11,458 in 2016 dollars
Obama's stimulus injected money directly into the banks that caused the problem, and pork programs at the same, it removed money from the economy through negative rates of return and BLS.GOV inflation misrepresentations.
2009 economic stimulus per capita; $2,691 or $3,003 in 2016 dollars
2008-2016 Bank bailouts already paid per capita $14,426
2008 to 2016, the Federal debt-to-GDP ratio moved from 67.85% to 105.20%
2016 national debt per capita $60,215
2016 total bank bailouts guaranteed by the US government $52,688 per capita
Trying to fix a bad debt problem with an even greater bad debt has and never will work.
Hopefully, the FOMC will figure out Banqiao banking just doesn't work and misreporting inflation may work in the short term, but will have horrific long-term consequences.
FOMC voting memberswho determine monetary policy and set rates for the United States
Enough of the bad news
The good news is the bad news generates major market moves and powerful trends. It's going to be a fun year for traders who are on their game and have strategies in place to capture them.
If Greece, a country with a GDP the size of Orange County, California, or the UK (3.94% of global GDP), can generate the moves we've seen, just think of how much fun we're going to have in the US markets (23.32% of global GDP) with the kind of fundamentals we have and an election year on deck.
My purpose in writing these long-winded articles is so I can reference them on this site over the next year as I write about specific trades in shares, indices, debt instruments, currencies, metals and energies.
I think it's time for all to brush on the sectors you've forgotten about, your shorting and collar strategies. Metals are sure to shine, debt instruments look like they be a downer (rates higher), and we should have the opportunity to pick up our favorite US shares at much better prices after the selling hemorrhage stalls.
Few of my favorite US stocks and ETFs I'll be writing about use my own trades as examples (both short and long). If there is interest, I'll expand to international markets.
Apple (NASDAQ:( AAPL )
Bank of America ( BAC )
Microsoft (NASDAQ: MSFT )
Alphabet ([[ GOOG ]], [[ GOOGL ]])
Pfizer (NYSE: PFE )
Cisco (NASDAQ: CSCO )
Goldman Sachs (NYSE: GS )
Moody's (NYSE: MCO )
Oracle (NYSE: ORCL )
AT&T (NYSE: T )
AbbVie (NYSE: ABBV )
JPMorgan Chase (NYSE: JPM )
Baxter International, Inc. ( BAX )
General Electric Company ( GE )
SPDR S&P 500 Trust ETF ( SPY )
SPDR Dow Jones Industrial Average ETF ( DIA )
iShares MSCI Emerging Markets ETF ( EEM )
SPDR S&P Metals and Mining ETF ( XME )
SPDR Gold Trust ETF ( GLD )
iPath S&P 500 VIX Short-Term Futures ETN ( VXX )
Market Vectors Gold Miners ETF ( GDX )
Ford Motor Company ( F )
Financial Select Sector SPDR ETF ( XLF )
iShares China Large-Cap ETF ( FXI )
Shares Russell 2000 ETF ( IWM )
COMEX Gold Trust ( IAU )
Physical Swiss Gold Shares ( SGOL )
DB Gold Fund ( DGL )
DB Gold Double Long ETN ( DGP )
UltraShort Gold ( GLL )
Gold Trust ( OUNZ )
Ultra Gold ( UGL )
DB Gold Double Short ETN ( DZZ )
3x Long Gold ETN ( UGLD )
DB Gold Short ETN ( DGZ )
3x Inverse Gold ETN ( DGLD )
Gartman Gold/Yen ETF ( GYEN )
Gartman Gold/Euro ETF ( GEUR )
E-TRACS UBS Bloomberg CMCI Gold ETN ( UBG )
X-Links Gold Shares Covered Call ETN ) GLDI )
Derivatives
Precious metals
Energy
Debt instruments
Currencies
S&P 500
Dow
NASDAQ 100
FTSE 100
EuroStoxx 50
Nikkei 225
Volatility will be high, so trade with the trend; when possible, use option collars to define your risk on trades and for the duration of every trading period.
I run a family office from the Virgin Islands, have about 1/3 of assets in US markets and like to get some online international camaraderie going as we batten down the hatches getting ready for the next leg of this adventure.
I have been a professional trader for over 20 years including time on the floor. My sole professional purpose is the preservation and enhancement of family wealth. I don't sell a newsletter, I don't manage US funds (only non-US), but I do enjoy trading the liquidity of US markets, especially on days like Brexit.
Good luck, America. I can feel the pain and disappointment you must being going through looking at your economic numbers. I sure hope you can come up with a better line up of leaders this fall.
See also IMF And China Accelerate Creation Of New Global Reserve Currency on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV ) JPMorgan Chase (NYSE: JPM ) Baxter International, Inc. ( BAX ) General Electric Company ( GE ) SPDR S&P 500 Trust ETF ( SPY ) SPDR Dow Jones Industrial Average ETF ( DIA ) iShares MSCI Emerging Markets ETF ( EEM ) SPDR S&P Metals and Mining ETF ( XME ) SPDR Gold Trust ETF ( GLD ) iPath S&P 500 VIX Short-Term Futures ETN ( VXX ) Market Vectors Gold Miners ETF ( GDX ) Ford Motor Company ( F ) Financial Select Sector SPDR ETF ( XLF ) iShares China Large-Cap ETF ( FXI ) Shares Russell 2000 ETF ( IWM ) COMEX Gold Trust ( IAU ) Physical Swiss Gold Shares ( SGOL ) DB Gold Fund ( DGL ) DB Gold Double Long ETN ( DGP ) UltraShort Gold ( GLL ) Gold Trust ( OUNZ ) Ultra Gold ( UGL ) DB Gold Double Short ETN ( DZZ ) 3x Long Gold ETN ( UGLD ) DB Gold Short ETN ( DGZ ) 3x Inverse Gold ETN ( DGLD ) Gartman Gold/Yen ETF ( GYEN ) Gartman Gold/Euro ETF ( GEUR ) E-TRACS UBS Bloomberg CMCI Gold ETN ( UBG ) X-Links Gold Shares Covered Call ETN ) GLDI ) Derivatives Precious metals Energy Debt instruments Currencies President and Mrs. Obama found time for Hollywood celebrities, Washington glitterati, and politicos of every shape and size, but somehow had no room on their dance card for the 48 Medal of Honor winners who attended the "Salute to Heroes" ball. From 2008 to 2015, an average of $1.2 trillion has been removed from the economy annually due to lost interest income on US Treasury debt and increases that did not occur to Social Security recipients directly as a result of the current inflation misrepresentations by the BLS.GOV. | AbbVie (NYSE: ABBV ) JPMorgan Chase (NYSE: JPM ) Baxter International, Inc. ( BAX ) General Electric Company ( GE ) SPDR S&P 500 Trust ETF ( SPY ) SPDR Dow Jones Industrial Average ETF ( DIA ) iShares MSCI Emerging Markets ETF ( EEM ) SPDR S&P Metals and Mining ETF ( XME ) SPDR Gold Trust ETF ( GLD ) iPath S&P 500 VIX Short-Term Futures ETN ( VXX ) Market Vectors Gold Miners ETF ( GDX ) Ford Motor Company ( F ) Financial Select Sector SPDR ETF ( XLF ) iShares China Large-Cap ETF ( FXI ) Shares Russell 2000 ETF ( IWM ) COMEX Gold Trust ( IAU ) Physical Swiss Gold Shares ( SGOL ) DB Gold Fund ( DGL ) DB Gold Double Long ETN ( DGP ) UltraShort Gold ( GLL ) Gold Trust ( OUNZ ) Ultra Gold ( UGL ) DB Gold Double Short ETN ( DZZ ) 3x Long Gold ETN ( UGLD ) DB Gold Short ETN ( DGZ ) 3x Inverse Gold ETN ( DGLD ) Gartman Gold/Yen ETF ( GYEN ) Gartman Gold/Euro ETF ( GEUR ) E-TRACS UBS Bloomberg CMCI Gold ETN ( UBG ) X-Links Gold Shares Covered Call ETN ) GLDI ) Derivatives Precious metals Energy Debt instruments Currencies By Peter Knight : 1933-1939 vs. 2009-2016 - You be the judge: 1933: Economic stimulus per capita: $746 (inflation-adjusted to $13,785 in 2016 dollars) 1933-1939: Federal debt to GDP moved from 39.40% to 43.25% 1933-1939: National debt per capita: $663 ($11,458 in 2016 dollars) Vs. 2009: Economic stimulus per capita - $2,691 ($3,003 in 2016 dollars) 2008-2016: Bank bailouts already paid - $14,426 per capita 2008-2016: US commitment to bank bailouts - $16.8 trillion, $52,688 per capita 2008-2016: Federal debt-to-GDP ratio moved from 67.85% to 105.20% 2016: National debt per capita - $60,215 Roosevelt's Economic Stimulus,The New Dealor "3Rs", cost a total of $50 billion ($876 billion in 2016 dollars) to fund: Relief for the unemployed and poor; Recovery of the economy to normal levels; and Reform of the financial system to prevent a repeat recession or depression. Red = National debt Green = Debt service cost Black = Personal income tax receipts Blue = Corporate tax receipts The worst debt to personal income ratio in history Red = National debt Green = Personal income Source :Federal Reserve The worst debt to employed population ratio in history. | AbbVie (NYSE: ABBV ) JPMorgan Chase (NYSE: JPM ) Baxter International, Inc. ( BAX ) General Electric Company ( GE ) SPDR S&P 500 Trust ETF ( SPY ) SPDR Dow Jones Industrial Average ETF ( DIA ) iShares MSCI Emerging Markets ETF ( EEM ) SPDR S&P Metals and Mining ETF ( XME ) SPDR Gold Trust ETF ( GLD ) iPath S&P 500 VIX Short-Term Futures ETN ( VXX ) Market Vectors Gold Miners ETF ( GDX ) Ford Motor Company ( F ) Financial Select Sector SPDR ETF ( XLF ) iShares China Large-Cap ETF ( FXI ) Shares Russell 2000 ETF ( IWM ) COMEX Gold Trust ( IAU ) Physical Swiss Gold Shares ( SGOL ) DB Gold Fund ( DGL ) DB Gold Double Long ETN ( DGP ) UltraShort Gold ( GLL ) Gold Trust ( OUNZ ) Ultra Gold ( UGL ) DB Gold Double Short ETN ( DZZ ) 3x Long Gold ETN ( UGLD ) DB Gold Short ETN ( DGZ ) 3x Inverse Gold ETN ( DGLD ) Gartman Gold/Yen ETF ( GYEN ) Gartman Gold/Euro ETF ( GEUR ) E-TRACS UBS Bloomberg CMCI Gold ETN ( UBG ) X-Links Gold Shares Covered Call ETN ) GLDI ) Derivatives Precious metals Energy Debt instruments Currencies By Peter Knight : 1933-1939 vs. 2009-2016 - You be the judge: 1933: Economic stimulus per capita: $746 (inflation-adjusted to $13,785 in 2016 dollars) 1933-1939: Federal debt to GDP moved from 39.40% to 43.25% 1933-1939: National debt per capita: $663 ($11,458 in 2016 dollars) Vs. 2009: Economic stimulus per capita - $2,691 ($3,003 in 2016 dollars) 2008-2016: Bank bailouts already paid - $14,426 per capita 2008-2016: US commitment to bank bailouts - $16.8 trillion, $52,688 per capita 2008-2016: Federal debt-to-GDP ratio moved from 67.85% to 105.20% 2016: National debt per capita - $60,215 Roosevelt's Economic Stimulus,The New Dealor "3Rs", cost a total of $50 billion ($876 billion in 2016 dollars) to fund: Relief for the unemployed and poor; Recovery of the economy to normal levels; and Reform of the financial system to prevent a repeat recession or depression. Fed Funds bank borrowing rate (red) relative to bank lending rates: Red = Fed Funds bank borrowing rate Black = Prime lending rate Green = Average credit card rate Blue = 30-year conventional mortgage rate Source :Federal Reserve Not that Japan is any example to follow, but when Japan's deposit rates went to zero, the Japanese at least had the conscience to lower their prime lending rate to 0.95% At 0.95%, Japan's prime rate is less than 1/3 of the 3.00% gross profit margin between the US Fed Funds rate and prime lending rate. | AbbVie (NYSE: ABBV ) JPMorgan Chase (NYSE: JPM ) Baxter International, Inc. ( BAX ) General Electric Company ( GE ) SPDR S&P 500 Trust ETF ( SPY ) SPDR Dow Jones Industrial Average ETF ( DIA ) iShares MSCI Emerging Markets ETF ( EEM ) SPDR S&P Metals and Mining ETF ( XME ) SPDR Gold Trust ETF ( GLD ) iPath S&P 500 VIX Short-Term Futures ETN ( VXX ) Market Vectors Gold Miners ETF ( GDX ) Ford Motor Company ( F ) Financial Select Sector SPDR ETF ( XLF ) iShares China Large-Cap ETF ( FXI ) Shares Russell 2000 ETF ( IWM ) COMEX Gold Trust ( IAU ) Physical Swiss Gold Shares ( SGOL ) DB Gold Fund ( DGL ) DB Gold Double Long ETN ( DGP ) UltraShort Gold ( GLL ) Gold Trust ( OUNZ ) Ultra Gold ( UGL ) DB Gold Double Short ETN ( DZZ ) 3x Long Gold ETN ( UGLD ) DB Gold Short ETN ( DGZ ) 3x Inverse Gold ETN ( DGLD ) Gartman Gold/Yen ETF ( GYEN ) Gartman Gold/Euro ETF ( GEUR ) E-TRACS UBS Bloomberg CMCI Gold ETN ( UBG ) X-Links Gold Shares Covered Call ETN ) GLDI ) Derivatives Precious metals Energy Debt instruments Currencies Red = Federal debt Blue = Federal debt held by Federal Reserve banks Light Blue = Social Security Green = Federal debt service cost that the Fed stopped reporting Source :Federal Reserve What "economic stimulus" did for the US economy The US debt to GDP ratio is currently the worst since World War II at 105% and is quickly closing in on the all-time high of 113%. 1980 Federal debt = 863 billion ( $2.50 trillion in 2016 dollars ) 2016 Federal debt = 19.23 trillion Fed's balance sheet Red = 2.46 trillion in US Treasury Green = 1.73 trillion in bad bank debt Source :Federal Reserve During the "economic stimulus," the US attained and maintained the worst debt rating in its history. |
26510.0 | 2016-07-14 00:00:00 UTC | Amgen and Daiichi Sankyo Team Up for Biosimilars in Japan | ABBV | https://www.nasdaq.com/articles/amgen-and-daiichi-sankyo-team-up-for-biosimilars-in-japan-2016-07-14 | nan | nan | Amgen Inc.AMGN announced an exclusive agreement with Daiichi Sankyo Company, Limited for the commercialization of nine biosimilars in Japan including biosimilars of AbbVie's ABBV Humira and Roche Holding AG's RHHBY Avastin and Herceptin.
The deal with Daiichi Sankyo will see Amgen taking responsibility for the development and manufacturing of the biosimilars. While Daiichi Sankyo will file for marketing approval and will also be responsible for the distribution and commercialization in Japan, Amgen will have a limited right to co-promote the products. However, Amgen will hold all additional distribution and commercialization rights for the biosimilar programs outside Japan. Specific financial terms of the agreement were undisclosed.
We note that the FDA's Arthritis Advisory Committee has voted in favor of an approval of Amgen's ABP 501, a biosimilar version of Humira. The recommendation did not come as a surprise given the favorable briefing documents that were released by the FDA ahead of the panel meeting. The advisory panel's opinion will now be reviewed by the FDA, with a final response on the approval status of ABP 501 expected by Sep 25.
AMGEN INC Price
AMGEN INC Price | AMGEN INC Quote
The approval of ABP 501 would be a huge boost for Amgen considering the commercial potential of Humira and the fact that Amgen itself is facing biosimilar competition for a few of its key products (like Neupogen). However, patents covering Humira should protect the drug from competition through at least 2022.
Biosimilar threats facing Amgen have gotten more intense with the FDA's Arthritis Advisory panel backing Sandoz's biosimilar version of Amgen's blockbuster drug, Enbrel. Sandoz is Novartis AG's NVS generic arm.
The race to develop biosimilars is heating up with a host of pharmaceutical and biotech companies in fierce competition.
Amgen is a Zacks Rank #3 (Hold) stock. Roche is a better-ranked stock in the health care sector, carrying a Zacks Rank #2 (Buy).
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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 announced an exclusive agreement with Daiichi Sankyo Company, Limited for the commercialization of nine biosimilars in Japan including biosimilars of AbbVie's ABBV Humira and Roche Holding AG's RHHBY Avastin and Herceptin. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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. While Daiichi Sankyo will file for marketing approval and will also be responsible for the distribution and commercialization in Japan, Amgen will have a limited right to co-promote the products. | Amgen Inc.AMGN announced an exclusive agreement with Daiichi Sankyo Company, Limited for the commercialization of nine biosimilars in Japan including biosimilars of AbbVie's ABBV Humira and Roche Holding AG's RHHBY Avastin and Herceptin. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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. Biosimilar threats facing Amgen have gotten more intense with the FDA's Arthritis Advisory panel backing Sandoz's biosimilar version of Amgen's blockbuster drug, Enbrel. | Amgen Inc.AMGN announced an exclusive agreement with Daiichi Sankyo Company, Limited for the commercialization of nine biosimilars in Japan including biosimilars of AbbVie's ABBV Humira and Roche Holding AG's RHHBY Avastin and Herceptin. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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 Price AMGEN INC Price | AMGEN INC Quote The approval of ABP 501 would be a huge boost for Amgen considering the commercial potential of Humira and the fact that Amgen itself is facing biosimilar competition for a few of its key products (like Neupogen). | Amgen Inc.AMGN announced an exclusive agreement with Daiichi Sankyo Company, Limited for the commercialization of nine biosimilars in Japan including biosimilars of AbbVie's ABBV Humira and Roche Holding AG's RHHBY Avastin and Herceptin. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The advisory panel's opinion will now be reviewed by the FDA, with a final response on the approval status of ABP 501 expected by Sep 25. |
26511.0 | 2016-07-14 00:00:00 UTC | The Zacks Analyst Blog Highlights: Juno, Amgen, AbbVie, Gilead and CytRx | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-juno-amgen-abbvie-gilead-and-cytrx-2016-07-14 | nan | nan | For Immediate Release
Chicago, IL - July 14, 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 Juno ( JUNO ), Amgen ( AMGN ), AbbVie ( ABBV ), Gilead ( GILD ) and CytRx ( CYTR ).
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
This week there were the usual regulatory and pipeline updates from the biotech sector. Juno ( JUNO ), a company focused on immuno-oncology treatments, was in the news with the FDA first placing a clinical hold on a pivotal study and then lifting it. Amgen ( AMGN ) also got some positive news flow on the regulatory front with the FDA approving a new dosing option for its PCSK9 inhibitor and its biosimilar version of Humira getting a positive recommendation from an FDA advisory panel.
Recap of the Week's Most Important Stories
1. It's been quite a week for immuno-oncology focused Juno which first saw its shares slump on a FDA clinical hold and is now looking at a recovery with the hold being lifted. Last week, shares fell 31.9% when the company's pivotal phase II study (ROCKET) was placed on clinical hold by the FDA due to two deaths (Read more: Juno Suffers Setback, Pivotal Study on Clinical Hold ). But with the FDA lifting the clinical hold yesterday and the company resuming the study under a revised protocol, Juno should recover most of the lost ground (Read more: Comeback for Juno Stock? FDA Lifts Clinical Hold ).
2. Amgen also got some good news on the regulatory front - firstly, the company's biosimilar version of AbbVie's ( ABBV ) Humira got a positive FDA advisory panel vote and secondly, the company's monthly single-dose administration option for its PCSK9 inhibitor, Repatha, gained FDA approval. This makes Repatha the first and only PCSK9 inhibitor to offer a monthly single-dose delivery option, thereby giving it an edge over Regeneron and Sanofi's Praluent (Read more: Amgen's Repatha Gains FDA Approval for New Dosing Option ).
Meanwhile, the FDA's advisory panel voting in favor of Amgen's Humira biosimilar, ABP 501, is not surprising considering the favorable FDA briefing documents that were released earlier (Read more: Amgen Humira Biosimilar Briefing Documents Look Good ). A decision from the FDA regarding the approval status of ABP 501 should be out bySep 25, 2016.
3. Shortly after gaining FDA approval for its latest hepatitis C virus (HCV) treatment, Epclusa, Gilead ( GILD ) gained EU approval as well for the drug (Read more: Gilead's Pan-Genotypic HCV Drug Epclusa Gains EU Approval ). Meanwhile, the EMA's Pharmacovigilance Risk Assessment Committee (PRAC) has completed its review of Gilead's blood cancer drug, Zydelig. Earlier this year, safety concerns related to the use of the drug had surfaced.
While the PRAC confirmed that Zydelig's benefits outweigh its risks in the treatment of chronic lymphocytic leukemia (CLL) and follicular lymphoma, the risk of serious infections with Zydelig was also confirmed. The PRAC has provided some recommendations related to the use of Zydelig which will be passed on to the EMA's Committee for Medicinal Products for Human Use (CHMP) for adoption of the agency's final position.
4. CytRx's ( CYTR ) shares plunged on initial results from a late-stage study which showed that aldoxorubicin failed to achieve the primary endpoint compared to investigator's choice therapy in patients with relapsed or refractory soft tissue sarcomas (STS). Although the company pointed out that enrollment was interrupted by a clinical hold and a second analysis will take place later, shares were down 59.8% on the news.
5. AbbVie got Rare Pediatric Disease Designation from the FDA for its experimental cancer treatment, ABT-414. The designation is for the treatment of pediatric patients with EGFR-amplified diffuse intrinsic pontine glioma (DIPG), highly aggressive and difficult to treat brain tumors found at the base of the brain (Read more: AbbVie's ABT-414 Gets Rare Pediatric Disease Status in U.S. ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Juno ( JUNO ), Amgen ( AMGN ), AbbVie ( ABBV ), Gilead ( GILD ) and CytRx ( CYTR ). Amgen also got some good news on the regulatory front - firstly, the company's biosimilar version of AbbVie's ( ABBV ) Humira got a positive FDA advisory panel vote and secondly, the company's monthly single-dose administration option for its PCSK9 inhibitor, Repatha, gained FDA approval. AbbVie got Rare Pediatric Disease Designation from the FDA for its experimental cancer treatment, ABT-414. | Stocks recently featured in the blog include Juno ( JUNO ), Amgen ( AMGN ), AbbVie ( ABBV ), Gilead ( GILD ) and CytRx ( CYTR ). Amgen also got some good news on the regulatory front - firstly, the company's biosimilar version of AbbVie's ( ABBV ) Humira got a positive FDA advisory panel vote and secondly, the company's monthly single-dose administration option for its PCSK9 inhibitor, Repatha, gained FDA approval. Click to get this free report JUNO THERAPEUTC (JUNO): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CYTRX CORP (CYTR): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report JUNO THERAPEUTC (JUNO): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CYTRX CORP (CYTR): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Juno ( JUNO ), Amgen ( AMGN ), AbbVie ( ABBV ), Gilead ( GILD ) and CytRx ( CYTR ). Amgen also got some good news on the regulatory front - firstly, the company's biosimilar version of AbbVie's ( ABBV ) Humira got a positive FDA advisory panel vote and secondly, the company's monthly single-dose administration option for its PCSK9 inhibitor, Repatha, gained FDA approval. | Want the latest recommendations from Zacks Investment Research? Stocks recently featured in the blog include Juno ( JUNO ), Amgen ( AMGN ), AbbVie ( ABBV ), Gilead ( GILD ) and CytRx ( CYTR ). Amgen also got some good news on the regulatory front - firstly, the company's biosimilar version of AbbVie's ( ABBV ) Humira got a positive FDA advisory panel vote and secondly, the company's monthly single-dose administration option for its PCSK9 inhibitor, Repatha, gained FDA approval. |
26512.0 | 2016-07-14 00:00:00 UTC | 3 Big Pharma Stocks That Could Raise Their Dividends | ABBV | https://www.nasdaq.com/articles/3-big-pharma-stocks-could-raise-their-dividends-2016-07-14 | nan | nan | There are few things I find more satisfying than watching my dividends grow.
While most U.S.-based big pharma companies are struggling to make their dividend payments, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) could easily raise their dividends in the quarters ahead. Over in Switzerland, Novartis (NYSE: NVS) is poised to continue its annual dividend raising streak as well.
Let's have a closer look what these companies are offering and how they'll keep those payouts growing.
1. Johnson & Johnson: A dividend-raising legend
In April, Johnson & Johnson increased its quarterly dividend payment by 6.7% to $3.20 per share annually, marking 54 consecutive years of raises. Those payments take up about 57% of trailing-12-month earnings, or just 48% of this year's earnings estimates. Either way you slice it, there's plenty of room for the dividend to grow beyond the 2.6% yield the stock offers at recent prices.
While consumer goods and medical devices comprise a slight majority of J&J's top line, it's the pharmaceutical segment that's driving the bottom line -- and thus the dividend -- higher. Last November, J&J's multiple myeloma treatment, Darzalex, earned a conditional approval for treatment of patients who have not responded to at least three prior lines of therapy.
About 30,000 Americans are diagnosed with multiple myeloma in the U.S. each year, but far fewer fail to respond to three different lines of therapy. Luckily, Darzalex could earn an important expansion to treat patients earlier. Investigators added Darzalex to a standard regimen that included Celgene 's Revlimid for patients who had progressed after one prior line of therapy. In the group receiving Darzalex, 78% of patients were alive at 18 months without disease progression, versus just 52% in the group receiving the Revlimid regimen alone.
Celgene expects Revlimid sales to reach about $6.7 billion this year. It's hard to tell whether Darzalex will reach these heights, but it will almost certainly play an important role in earlier multiple-myeloma treatment settings. This will go a long way toward helping J&J continue its streak of substantial dividend raises.
2. AbbVie: Room for more raises
If you include the dividend history of AbbVie's former parent company, Abbott , then AbbVie has a 44-year streak of annual dividend raises. Following the 2013 spinoff, AbbVie shareholders have been treated to frequent hikes that have pushed the quarterly payout up 42.5% to $0.57, or $2.28 annually, for a yield of about 3.6% at current prices.
Despite the hikes, the company only needs about 48% of this year's estimated earnings to make payments. That leaves plenty of runway for more increases, and its share of sales from recently purchased leukemia therapy Imbruvica should help extend the tarmac.
Earlier this year, Imbruvica pills earned FDA approval for treatment of patients with the most common form of leukemia, giving this large group its first chemotherapy-free treatment option. Worldwide sales of the drug could eventually contribute $7 billion annually to AbbVie's top line, helping it to continue increasing dividends well into the future.
3. Novartis: High yield -- and expectations
Since its inception in 1996, Novartis AG has increased its annual dividend for 19 consecutive years. For U.S. holders of its ADRs, currency fluctuations between the dollar and the Swiss franc can alter those increases for better or worse, but the company is poised to make some big increases in the years ahead.
The company tends to propose a dividend amount for the previous year in February. The most recent payment of 2.70 Swiss francs would equal about $2.75 per share today, but it was $2.67 at time of the annual payout earlier this year. For U.S. ADR holders, the most recent payment translates to a yield of about of 3.3% at recent prices and exchange rates.
Image source: Novartis.
The most recent payment required less than 60% of the company's expected earnings for this year, giving Novartis plenty of room to increase its dividend next February. The company's new heart failure pill, Entresto, could help it make much bigger increases in the years to come.
Heart failure sounds more like a cause of death than a disease, but for about 5.1 million Americans, it's a chronic condition characterized by the heart's inability to pump enough blood through the body. Novartis' Entresto has been shown to reduce the risk of death from heart attack or stroke by 20% over the standard of care, and it's currently approved to treat about 2.2 million heart-failure patients in the U.S. alone.
Entresto also reduces costly hospitalizations, and a study published in The Journal of the American Medical Association showed that its price of about $4,560 per year is actually cost-effective, considering the reductions in total spending associated with heart failure. At its peak, this drug could contribute up to $10 billion annually to Novartis' top line, making big dividend hikes in the future a breeze.
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 Abbott Laboratories and 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 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. | Worldwide sales of the drug could eventually contribute $7 billion annually to AbbVie's top line, helping it to continue increasing dividends well into the future. While most U.S.-based big pharma companies are struggling to make their dividend payments, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) could easily raise their dividends in the quarters ahead. AbbVie: Room for more raises If you include the dividend history of AbbVie's former parent company, Abbott , then AbbVie has a 44-year streak of annual dividend raises. | While most U.S.-based big pharma companies are struggling to make their dividend payments, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) could easily raise their dividends in the quarters ahead. Worldwide sales of the drug could eventually contribute $7 billion annually to AbbVie's top line, helping it to continue increasing dividends well into the future. AbbVie: Room for more raises If you include the dividend history of AbbVie's former parent company, Abbott , then AbbVie has a 44-year streak of annual dividend raises. | While most U.S.-based big pharma companies are struggling to make their dividend payments, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) could easily raise their dividends in the quarters ahead. AbbVie: Room for more raises If you include the dividend history of AbbVie's former parent company, Abbott , then AbbVie has a 44-year streak of annual dividend raises. Following the 2013 spinoff, AbbVie shareholders have been treated to frequent hikes that have pushed the quarterly payout up 42.5% to $0.57, or $2.28 annually, for a yield of about 3.6% at current prices. | While most U.S.-based big pharma companies are struggling to make their dividend payments, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) could easily raise their dividends in the quarters ahead. AbbVie: Room for more raises If you include the dividend history of AbbVie's former parent company, Abbott , then AbbVie has a 44-year streak of annual dividend raises. Following the 2013 spinoff, AbbVie shareholders have been treated to frequent hikes that have pushed the quarterly payout up 42.5% to $0.57, or $2.28 annually, for a yield of about 3.6% at current prices. |
26513.0 | 2016-07-14 00:00:00 UTC | 3 Dividend Aristocrats to Avoid | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-avoid-2016-07-14 | nan | nan | Dividend aristocrats are among the most respected stocks in the market. Among other requirements, dividend aristocrats are companies that have proven their financial quality by raising their dividends over 25 consecutive years or more. It takes a solid business to sustain growing dividends over the long term, but investment decisions should be based on forward-looking considerations, not past performance.
The fact alone that a company is included in the dividend aristocrats group doesn't necessarily make it a smart purchase. In that spirit, our contributors share with our readers three dividend aristocrats that they are not planning to buy any time soon.
This dividend aristocrat doesn't taste so good
Tyler Crowe : Investing in a dividend aristocrat is typically based on the premise that a company has generated great returns over the long term. If you are looking for that kind of stability, you might be able to forgive a company if it doesn't exactly keep pace with the S&P 500 on a total return basis. Looking at agriculture giant Archer Daniels Midland (NYSE: ADM) , though, it's awfully hard to see why an investor would be willing to tolerate that amount of underperformance just for the comfort of a constantly growing dividend.
ADM Total Return Price data by YCharts .
On the surface, Archer Daniels Midland checks all the boxes that would lead to spectacular returns. It has raised its dividend every year for 40 years and has bought back about a quarter of its shares outstanding over the past 25 years. There are two reasons that the company probably hasn't been that great of a long-term investment compared to other dividend aristocrats. One is that the company's return on invested capital has mostly been in the low single digits for the better part of the past 20 years. That's just the way it is when you are in a commoditized business like food processing, where there isn't a whole lot of pricing power.
Then there is the matter that all of those dividend raises have been rather modest, and the yield is quite low. Today, the stock trades at a dividend yield of 2.7%, which is close to the highest it has ever traded at. Today's yield might look appealing, but yield for Archer Daniels Midland has been tepid for so many years that the company hasn't been a great dividend aristocrat investment.
No connection
Andres Cardenal :AT&T (NYSE: T) is a top player among telecom operators, an industry which is going through major challenges. Internet and related technologies are aggressively reducing communication costs across the board, which is putting substantial pressure on prices and profit margins in the sector. With the acquisition of DIRECTV, AT&T has also gained sizable exposure to the pay-TV industry, and this business could face a considerable threat due to growing demand for online video streaming services in the middle term.
AT&T has increased its dividends in the last 32 consecutive years, and the stock is paying a dividend yield of 4.5% at current prices. This is materially higher than the average dividend yield of 2.5% for companies in the S&P 500 index, so the yield is quite attractive, especially in times of historically low interest rates.
However, dividend growth has been under pressure lately, and it will probably remain subdued over the coming years. The company has raised its quarterly dividend per share by $0.01 per year since 2008; this translates to a modest dividend increase of 2.1% for 2016.
AT&T is on the wrong side of major technological trends, and this means that the company will probably need to protect financial resources as opposed to aggressively distributing cash to investors in the form of dividends. The dividend yield is quite tempting, but investors would be better advised to focus on companies with superior potential for growth going forward.
AbbVie: not your typical dividend aristocrat
George Budwell : Dividend aristocrats tend to have noteworthy free cash flows that have stood the test of time. After all, companies have to post 25 consecutive years of dividend increases to even make this elite list. The Illinois-based drugmaker AbbVie (NYSE: ABBV) , though, was able to piggyback on the success of its former parent company, Abbott Laboratories , to find a home on this closely watched list of top dividend stocks .
While AbbVie's unusual path toward becoming a dividend aristocrat shouldn't necessarily ring alarm bells, the fact that 60% of the company's net revenue currently stems from a single product -- the anti-inflammatory drug Humira -- is cause for concern. The long and short of it is that Humira is set to go off patent at the end of this year, and there's no guarantee that AbbVie's broader patent portfolio will keep biosimilar competition at bay for an extended period of time.
Complicating matters further, AstraZeneca (NYSE: AZN) and Gilead Sciences (NASDAQ: GILD) are both developing drugs to compete directly against AbbVie's blood cancer drug Imbruvica. In fact, Astra's experimental drug acalabrutinib has the potential to make a major dent in Imbruvica's market share down the line, as it's specifically designed to be more potent and safer. That's certainly not welcome news for AbbVie shareholders, given that Imbruvica is expected to eventually take the reins from Humira as the company's flagship product.
All told, income-seeking investors are probably best served by shying away from AbbVie, at least until the company's intellectual property strategy surrounding Humira has been put to the test.
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 .
Andrés Cardenal owns shares of Gilead Sciences. George Budwell has no position in any stocks mentioned. Tyler Crowe 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. | The Illinois-based drugmaker AbbVie (NYSE: ABBV) , though, was able to piggyback on the success of its former parent company, Abbott Laboratories , to find a home on this closely watched list of top dividend stocks . While AbbVie's unusual path toward becoming a dividend aristocrat shouldn't necessarily ring alarm bells, the fact that 60% of the company's net revenue currently stems from a single product -- the anti-inflammatory drug Humira -- is cause for concern. AbbVie: not your typical dividend aristocrat George Budwell : Dividend aristocrats tend to have noteworthy free cash flows that have stood the test of time. | AbbVie: not your typical dividend aristocrat George Budwell : Dividend aristocrats tend to have noteworthy free cash flows that have stood the test of time. The Illinois-based drugmaker AbbVie (NYSE: ABBV) , though, was able to piggyback on the success of its former parent company, Abbott Laboratories , to find a home on this closely watched list of top dividend stocks . While AbbVie's unusual path toward becoming a dividend aristocrat shouldn't necessarily ring alarm bells, the fact that 60% of the company's net revenue currently stems from a single product -- the anti-inflammatory drug Humira -- is cause for concern. | AbbVie: not your typical dividend aristocrat George Budwell : Dividend aristocrats tend to have noteworthy free cash flows that have stood the test of time. The Illinois-based drugmaker AbbVie (NYSE: ABBV) , though, was able to piggyback on the success of its former parent company, Abbott Laboratories , to find a home on this closely watched list of top dividend stocks . While AbbVie's unusual path toward becoming a dividend aristocrat shouldn't necessarily ring alarm bells, the fact that 60% of the company's net revenue currently stems from a single product -- the anti-inflammatory drug Humira -- is cause for concern. | AbbVie: not your typical dividend aristocrat George Budwell : Dividend aristocrats tend to have noteworthy free cash flows that have stood the test of time. The Illinois-based drugmaker AbbVie (NYSE: ABBV) , though, was able to piggyback on the success of its former parent company, Abbott Laboratories , to find a home on this closely watched list of top dividend stocks . While AbbVie's unusual path toward becoming a dividend aristocrat shouldn't necessarily ring alarm bells, the fact that 60% of the company's net revenue currently stems from a single product -- the anti-inflammatory drug Humira -- is cause for concern. |
26514.0 | 2016-07-12 00:00:00 UTC | ITOT, MMM, ABBV, SBUX: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/itot-mmm-abbv-sbux-etf-inflow-alert-2016-07-12 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $58.3 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 42,750,000 to 43,350,000). Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.2%, AbbVie Inc. (Symbol: ABBV) is up about 0.9%, and Starbucks Corp. (Symbol: SBUX) is up by about 0.6%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.9599 as the 52 week high point - that compares with a last trade of $97.69. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.2%, AbbVie Inc. (Symbol: ABBV) is up about 0.9%, and Starbucks Corp. (Symbol: SBUX) is up by about 0.6%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.9599 as the 52 week high point - that compares with a last trade of $97.69. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.2%, AbbVie Inc. (Symbol: ABBV) is up about 0.9%, and Starbucks Corp. (Symbol: SBUX) is up by about 0.6%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.9599 as the 52 week high point - that compares with a last trade of $97.69. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.2%, AbbVie Inc. (Symbol: ABBV) is up about 0.9%, and Starbucks Corp. (Symbol: SBUX) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $58.3 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 42,750,000 to 43,350,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.9599 as the 52 week high point - that compares with a last trade of $97.69. | Among the largest underlying components of ITOT, in trading today 3M Co (Symbol: MMM) is up about 0.2%, AbbVie Inc. (Symbol: ABBV) is up about 0.9%, and Starbucks Corp. (Symbol: SBUX) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $58.3 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 42,750,000 to 43,350,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.9599 as the 52 week high point - that compares with a last trade of $97.69. |
26515.0 | 2016-07-12 00:00:00 UTC | AbbVie's ABT-414 Gets Rare Pediatric Disease Status in U.S. | ABBV | https://www.nasdaq.com/articles/abbvies-abt-414-gets-rare-pediatric-disease-status-in-u.s.-2016-07-12 | nan | nan | AbbVie Inc.ABBV announced that its oncology candidate, ABT-414, has been granted Rare Pediatric Disease Designation in the U.S. for the treatment of pediatric patients with epidermal growth factor receptor (EGFR)-amplified diffuse intrinsic pontine glioma (DIPG) - highly aggressive and difficult-to-treat brain tumors found at the base of the brain.
The designation was granted based on a proposed pediatric sub-study 'nested' within the ongoing phase II study on ABT-414 in adults with recurrent EGFR-amplified glioblastoma that is being conducted in collaboration with the European Organization for Research and Treatment of Cancer.
In 2014, ABT-414 received Orphan Drug Designation in both the U.S. and the EU for the treatment of adult glioblastoma and glioma, respectively.
ABBVIE INC Price
ABBVIE INC Price | ABBVIE INC Quote
We note that AbbVie is developing ABT-414 with certain components in-licensed from Life Science Pharmaceuticals, Inc. and Seattle Genetics SGEN .
According to the press release issued by AbbVie, brainstem tumors comprise approximately 10-15% of all pediatric brain tumors. Each year, approximately 200-400 children are affected by DIPG in the U.S.
Given the limited options for the treatment of glioblastoma and glioma, there is urgent need for new treatments in this field. If successfully developed and commercialized, ABT-414 will be able to boost the company's portfolio.
Currently available drugs for the treatment of glioblastoma include Avastin, Tamodar and Gliadel.
AbbVie currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include GW Pharmaceuticals plc GWPH and Innoviva, Inc. INVA . Both stocks sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc.ABBV announced that its oncology candidate, ABT-414, has been granted Rare Pediatric Disease Designation in the U.S. for the treatment of pediatric patients with epidermal growth factor receptor (EGFR)-amplified diffuse intrinsic pontine glioma (DIPG) - highly aggressive and difficult-to-treat brain tumors found at the base of the brain. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote We note that AbbVie is developing ABT-414 with certain components in-licensed from Life Science Pharmaceuticals, Inc. and Seattle Genetics SGEN . According to the press release issued by AbbVie, brainstem tumors comprise approximately 10-15% of all pediatric brain tumors. | Click to get this free report SEATTLE GENETIC (SGEN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report INNOVIVA INC (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that its oncology candidate, ABT-414, has been granted Rare Pediatric Disease Designation in the U.S. for the treatment of pediatric patients with epidermal growth factor receptor (EGFR)-amplified diffuse intrinsic pontine glioma (DIPG) - highly aggressive and difficult-to-treat brain tumors found at the base of the brain. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote We note that AbbVie is developing ABT-414 with certain components in-licensed from Life Science Pharmaceuticals, Inc. and Seattle Genetics SGEN . | AbbVie Inc.ABBV announced that its oncology candidate, ABT-414, has been granted Rare Pediatric Disease Designation in the U.S. for the treatment of pediatric patients with epidermal growth factor receptor (EGFR)-amplified diffuse intrinsic pontine glioma (DIPG) - highly aggressive and difficult-to-treat brain tumors found at the base of the brain. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote We note that AbbVie is developing ABT-414 with certain components in-licensed from Life Science Pharmaceuticals, Inc. and Seattle Genetics SGEN . Click to get this free report SEATTLE GENETIC (SGEN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report INNOVIVA INC (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie currently carries a Zacks Rank #3 (Hold). AbbVie Inc.ABBV announced that its oncology candidate, ABT-414, has been granted Rare Pediatric Disease Designation in the U.S. for the treatment of pediatric patients with epidermal growth factor receptor (EGFR)-amplified diffuse intrinsic pontine glioma (DIPG) - highly aggressive and difficult-to-treat brain tumors found at the base of the brain. ABBVIE INC Price ABBVIE INC Price | ABBVIE INC Quote We note that AbbVie is developing ABT-414 with certain components in-licensed from Life Science Pharmaceuticals, Inc. and Seattle Genetics SGEN . |
26516.0 | 2016-07-11 00:00:00 UTC | Amgen Humira Biosimilar Briefing Documents Look Good | ABBV | https://www.nasdaq.com/articles/amgen-humira-biosimilar-briefing-documents-look-good-2016-07-11 | nan | nan | Briefing documents issued by the FDA ahead of an advisory panel meeting for Amgen Inc.'sAMGN ABP 501, a biosimilar version of AbbVie Inc.'s ABBV Humira, look good.
Amgen is seeking FDA approval for ABP 501 for indications for which Humira is approved 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.
According to the briefing documents, the data on ABP 501 shows that it is highly similar to Humira in RA and PsO. The documents also note that the evidence indicates that the extrapolation of biosimilarity to the indications for which Amgen is seeking approval (JIA, PsA, AS, adult CD, and UC), is scientifically justified.
Overall, the documents look favorable and the approval of ABP 501 would be a huge boost for Amgen which itself is facing biosimilar threats for quite a few of its key drugs. U.S. sales of Humira were about $8.4 billion in 2015. Of course, with Humira being its flagship product and a major contributor to the top line, AbbVie will leave no stone unturned to delay the entry of direct biosimilar competition.
While Humira's composition of matter patent in the U.S. is expected to expire in Dec 2016, AbbVie has several non-composition of matter patents covering Humira in the U.S. with none of these expected to expire before 2022.
The FDA's arthritis advisory panel will be meeting tomorrow to review ABP 501. While the FDA is not required to do so, it usually follows the advice of its panel. The agency is expected to respond on the approval status of ABP 501 by Sep 25, 2016.
AMGEN INC Price
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Meanwhile, the arthritis advisory panel will be meeting on Jul 13 to review a biosimilar version (Sandoz's GP2015), of Amgen's blockbuster drug, Enbrel.
Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. A couple of better-ranked stocks in the health care sector are Fibrocell Science, Inc. FCSC and Innoviva, Inc. INVA - both are Zacks Rank #1 (Strong Buy) stocks.
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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. | Briefing documents issued by the FDA ahead of an advisory panel meeting for Amgen Inc.'sAMGN ABP 501, a biosimilar version of AbbVie Inc.'s ABBV Humira, look good. Of course, with Humira being its flagship product and a major contributor to the top line, AbbVie will leave no stone unturned to delay the entry of direct biosimilar competition. While Humira's composition of matter patent in the U.S. is expected to expire in Dec 2016, AbbVie has several non-composition of matter patents covering Humira in the U.S. with none of these expected to expire before 2022. | Briefing documents issued by the FDA ahead of an advisory panel meeting for Amgen Inc.'sAMGN ABP 501, a biosimilar version of AbbVie Inc.'s ABBV Humira, look good. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report FIBROCELL SCIEN (FCSC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INNOVIVA INC (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. Of course, with Humira being its flagship product and a major contributor to the top line, AbbVie will leave no stone unturned to delay the entry of direct biosimilar competition. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report FIBROCELL SCIEN (FCSC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INNOVIVA INC (INVA): Free Stock Analysis Report To read this article on Zacks.com click here. Briefing documents issued by the FDA ahead of an advisory panel meeting for Amgen Inc.'sAMGN ABP 501, a biosimilar version of AbbVie Inc.'s ABBV Humira, look good. Of course, with Humira being its flagship product and a major contributor to the top line, AbbVie will leave no stone unturned to delay the entry of direct biosimilar competition. | Briefing documents issued by the FDA ahead of an advisory panel meeting for Amgen Inc.'sAMGN ABP 501, a biosimilar version of AbbVie Inc.'s ABBV Humira, look good. Both Amgen and AbbVie are Zacks Rank #3 (Hold) stocks. Of course, with Humira being its flagship product and a major contributor to the top line, AbbVie will leave no stone unturned to delay the entry of direct biosimilar competition. |
26517.0 | 2016-07-06 00:00:00 UTC | Amgen's Kyprolis Gains Approval in EU for Label Expansion | ABBV | https://www.nasdaq.com/articles/amgens-kyprolis-gains-approval-in-eu-for-label-expansion-2016-07-06 | nan | nan | Amgen Inc.AMGN received encouraging news with the European Commission (EC) approving a variation to the company's marketing authorization for Kyprolis to include its use in combination with dexamethasone alone for the treatment of adults with multiple myeloma who have received at least one prior therapy.
EU approval was largely expected as the Committee for Medicinal Products for Human Use had issued a favorable opinion this May.
We note that this is the second approval for Kyprolis by the EC in less than a year. In Nov 2015, Kyprolis had gained approval in the EU in combination with Celgene Corporation's CELG Revlimid (lenalidomide) and dexamethasone for the treatment of adults with multiple myeloma who have received at least one prior therapy, based on the ASPIRE study data.
The latest approval in the EU follows the FDA approval of a supplemental new drug application for Kyprolis earlier this year, based on the ENDEAVOR study data. In Jan 2016, Kyprolis' accelerated approval was converted to full approval in the U.S. In addition, the FDA expanded Kyprolis' label to allow its use as a single agent for the treatment of patients with relapsed or refractory multiple myeloma who have received one or more lines of therapy.
We remind investors that Kyprolis became a part of Amgen's portfolio following its acquisition of Onyx. The drug has registered total sales of $512 million in 2015. Kyprolis' label expansion would expand the patient population and increase its commercial potential significantly.
Other approved drugs for the treatment of multiple myeloma include the recently approved AbbVie Inc. ABBV /Bristol-Myers Squibb Company's BMY Empliciti among others.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other approved drugs for the treatment of multiple myeloma include the recently approved AbbVie Inc. ABBV /Bristol-Myers Squibb Company's BMY Empliciti among others. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): 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. EU approval was largely expected as the Committee for Medicinal Products for Human Use had issued a favorable opinion this May. | Other approved drugs for the treatment of multiple myeloma include the recently approved AbbVie Inc. ABBV /Bristol-Myers Squibb Company's BMY Empliciti among others. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): 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. In Nov 2015, Kyprolis had gained approval in the EU in combination with Celgene Corporation's CELG Revlimid (lenalidomide) and dexamethasone for the treatment of adults with multiple myeloma who have received at least one prior therapy, based on the ASPIRE study data. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): 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. Other approved drugs for the treatment of multiple myeloma include the recently approved AbbVie Inc. ABBV /Bristol-Myers Squibb Company's BMY Empliciti among others. Amgen Inc.AMGN received encouraging news with the European Commission (EC) approving a variation to the company's marketing authorization for Kyprolis to include its use in combination with dexamethasone alone for the treatment of adults with multiple myeloma who have received at least one prior therapy. | Other approved drugs for the treatment of multiple myeloma include the recently approved AbbVie Inc. ABBV /Bristol-Myers Squibb Company's BMY Empliciti among others. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): 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 note that this is the second approval for Kyprolis by the EC in less than a year. |
26518.0 | 2016-07-06 00:00:00 UTC | UCB's Vimpat Approved in Japan for Partial Onset Seizures | ABBV | https://www.nasdaq.com/articles/ucbs-vimpat-approved-in-japan-for-partial-onset-seizures-2016-07-06 | nan | nan | UCB S.A.UCBJF and partner Daiichi Sankyo Company Limited, announced that the Japanese Ministry of Health, Labor and Welfare (MHLW) has approved its anti-epileptic drug, Vimpat, as an adjunctive therapy in the treatment of partial onset seizures, with or without secondary generalization, in adults with epilepsy who have not obtained sufficient response to other anti-epileptic drugs.
The recommended dose starts at 100mg/day, which can be increased to an initial therapeutic dose of 200mg/day at intervals of at least 1 week, each given orally in 2 divided doses.
UCB and Daiichi Sankyo will jointly commercialize Vimpat in Japan. While UCB manufactures and supplies the product, Daiichi Sankyo will manage distribution and book sales.
We note that Vimpat is approved in the U.S., both as an adjunct therapy and monotherapy, for the treatment of partial onset seizures in people with epilepsy who are 17 years and older. The drug is also approved in the EU as an adjunct therapy in the treatment of partial onset seizures with or without secondary generalization in patients aged 16 years and older with epilepsy. A Marketing Authorisation Application for Vimpat, as monotherapy in the treatment of partial onset seizures, is currently under review in the EU.
Meanwhile, Vimpat is being evaluated as an adjunct therapy in two phase III studies - for the treatment of partial onset seizures in pediatrics and for the treatment of primary generalized tonic-clonic seizures. Results from the former study are expected in 2017, while that from the latter study are expected in 2019.
According to information provided by the company, epilepsy affects approximately 65 million people worldwide. Approximately 1 in every 26 people is expected to suffer from epilepsy in their lifetime. In Japan, approximately 1 million individuals are estimated to be affected by the disease.
Drugs currently approved to treat epilepsy include Novartis AG's NVS Tegretol, AbbVie Inc.'s ABBV Depakote and Johnson & Johnson's JNJ Topamax.
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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. | Drugs currently approved to treat epilepsy include Novartis AG's NVS Tegretol, AbbVie Inc.'s ABBV Depakote and Johnson & Johnson's JNJ Topamax. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report UCB SA (UCBJF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. UCB S.A.UCBJF and partner Daiichi Sankyo Company Limited, announced that the Japanese Ministry of Health, Labor and Welfare (MHLW) has approved its anti-epileptic drug, Vimpat, as an adjunctive therapy in the treatment of partial onset seizures, with or without secondary generalization, in adults with epilepsy who have not obtained sufficient response to other anti-epileptic drugs. | Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report UCB SA (UCBJF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Drugs currently approved to treat epilepsy include Novartis AG's NVS Tegretol, AbbVie Inc.'s ABBV Depakote and Johnson & Johnson's JNJ Topamax. UCB S.A.UCBJF and partner Daiichi Sankyo Company Limited, announced that the Japanese Ministry of Health, Labor and Welfare (MHLW) has approved its anti-epileptic drug, Vimpat, as an adjunctive therapy in the treatment of partial onset seizures, with or without secondary generalization, in adults with epilepsy who have not obtained sufficient response to other anti-epileptic drugs. | Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report UCB SA (UCBJF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Drugs currently approved to treat epilepsy include Novartis AG's NVS Tegretol, AbbVie Inc.'s ABBV Depakote and Johnson & Johnson's JNJ Topamax. UCB S.A.UCBJF and partner Daiichi Sankyo Company Limited, announced that the Japanese Ministry of Health, Labor and Welfare (MHLW) has approved its anti-epileptic drug, Vimpat, as an adjunctive therapy in the treatment of partial onset seizures, with or without secondary generalization, in adults with epilepsy who have not obtained sufficient response to other anti-epileptic drugs. | Drugs currently approved to treat epilepsy include Novartis AG's NVS Tegretol, AbbVie Inc.'s ABBV Depakote and Johnson & Johnson's JNJ Topamax. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report UCB SA (UCBJF): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Vimpat is approved in the U.S., both as an adjunct therapy and monotherapy, for the treatment of partial onset seizures in people with epilepsy who are 17 years and older. |
26519.0 | 2016-07-05 00:00:00 UTC | How Gilead's New Hepatitis C Virus Combination Stacks Up to the Competition | ABBV | https://www.nasdaq.com/articles/how-gileads-new-hepatitis-c-virus-combination-stacks-competition-2016-07-05 | nan | nan | Antiviral champ Gilead Sciences (NASDAQ: GILD) recently earned FDA approval for another hepatitis C virus (HCV) combination treatment, Epclusa.
Epclusa is poised to boost Gilead's numbers by filling an important niche that has been somewhat overlooked, and Bristol-Myers Squibb (NYSE: BMY) is about to lose hundreds of millions annually in the process.
Gilead could really use the win in the hepatitis C space, too, since competing drugs from AbbVie (NYSE: ABBV) and Merck & Co. (NYSE: MRK) have entered the HCV space have stolen some market share from Gilead's previous combination sensation, Harvoni.
Let's take a closer look at Epclusa's and Harvoni's advantages over existing treatment options, and what it could mean for Gilead's sales in the years ahead.
Ribavirin... yuck!
Ribavirin is poorly tolerated antiviral, with long list of unpleasant and dangerous side effects, including abnormal breakdown of red blood cells that can lead to a heart attack. Gilead's Harvoni for treatment of HCV genotype 1, the most common type, only requires a combination of ribavirin in patients with advanced cirrhosis.
AbbVie's Viekira Pak is only approved for HCV type 1 and requires testing to see if patients have a strain of 1a or 1b. If they're among about 55% of U.S. HCV type 1 patients with strain 1a, Viekira Pak treatment requires combination with ribavirin.
Merck's Zepatier is approved for types 1 and 4 but also requires combination with ribavirin in patients with a strain of the virus resistant to certain antivirals, which also involves a test.
Despite Harvoni's advantages, entrance of these rivals from Merck and AbbVie have pressured its sales, which slid from $3.57 billion in Q1 2015 to $3.02 billion in Q1 2016.
Epclusa is the first drug approved for treatment of all six major forms of HCV, and with the exception of patients with moderate to severe cirrhosis, it doesn't require nasty ribavirin. It also doesn't require genetic testing of the patient's virus. Epclusa's list price of $74,650 is more expensive than Merck's Zepatier, but it's below AbbVie's Viekira Pak, as well as Gilead's own Harvoni and Sovaldi.
After undisclosed rebates and discounts, the true price of these treatments is extremely murky, but Epclusa's advantages over its competition are clear.
About type 3
There are an estimated 492,000 people infected with HCV type 3 in the U.S. and Canada. In Western Europe, there's another 1.3 million, and probably 54 million worldwide. Although first-quarter Harvoni sales slid, solo-pill Sovaldi jumped 31% to $1.28 billion over Q1 2015. This is largely because, unlike its rivals from Merck and AbbVie, Sovaldi earned approval for treatment of HCV type 3 in combination with ribavirin for 24 weeks, back in 2013.
Last summer, type 3 patients received some great news when Daklinza from Bristol-Myers earned FDA approval for treatment of the HCV type 3 in combination with Sovaldi, without the need for ribavirin. Despite the expense of combining the two, Bristol recorded Daklinza sales of $420 million in first quarter.
Given Daklinza's list price of $63,000 for a 12-week regimen, and another $84,000 for Sovaldi, Epclusa's list price of "only" $74,760 may have just brought Bristol's Daklinza party to an end.
And type 2
There are an estimated 567,000 people in the U.S. and Canada, 583,000 in Western Europe, and 16.5 million worldwide infected with HCV type 2 virus. Gilead's Epclusa will most likely have this population all to itself for quite some time, if approved outside the U.S. as expected.
Gilead's stock popped 5% on the day of the widely expected Epclusa FDA approval announcement, but it ended the day trading at less than 7 times this year's expected earnings per share. It's hard to understand why Wall Street doesn't think providing HCV type 2 and 3 populations their first ribavirin-free treatment option will lead to growth in the years ahead, but that's what the stock price says.
Beyond hepatitis
Aside from HCV, the company recently earned approvals in the U.S. and EU for Odefsey, the smallest single-tablet HIV-1 regimen. This is its second, based on tenofovir alafenamide, and the first, Genvoya, which earned FDA approval last November, reached U.S. sales of $141 million in the first quarter this year.
Looking further ahead, Gilead's recent purchase of Nimbus Therapeutics and its promising non-alcoholic steatohepatitis candidates could drive growth in the years to come. The good news is, the stock is so cheap now that even if sales remain flat, you'll still come out ahead through massive share repurchases and a growing dividend that's currently yielding 2.4% at recent prices.
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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 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. | Gilead could really use the win in the hepatitis C space, too, since competing drugs from AbbVie (NYSE: ABBV) and Merck & Co. (NYSE: MRK) have entered the HCV space have stolen some market share from Gilead's previous combination sensation, Harvoni. AbbVie's Viekira Pak is only approved for HCV type 1 and requires testing to see if patients have a strain of 1a or 1b. Despite Harvoni's advantages, entrance of these rivals from Merck and AbbVie have pressured its sales, which slid from $3.57 billion in Q1 2015 to $3.02 billion in Q1 2016. | Gilead could really use the win in the hepatitis C space, too, since competing drugs from AbbVie (NYSE: ABBV) and Merck & Co. (NYSE: MRK) have entered the HCV space have stolen some market share from Gilead's previous combination sensation, Harvoni. AbbVie's Viekira Pak is only approved for HCV type 1 and requires testing to see if patients have a strain of 1a or 1b. Despite Harvoni's advantages, entrance of these rivals from Merck and AbbVie have pressured its sales, which slid from $3.57 billion in Q1 2015 to $3.02 billion in Q1 2016. | Gilead could really use the win in the hepatitis C space, too, since competing drugs from AbbVie (NYSE: ABBV) and Merck & Co. (NYSE: MRK) have entered the HCV space have stolen some market share from Gilead's previous combination sensation, Harvoni. AbbVie's Viekira Pak is only approved for HCV type 1 and requires testing to see if patients have a strain of 1a or 1b. Despite Harvoni's advantages, entrance of these rivals from Merck and AbbVie have pressured its sales, which slid from $3.57 billion in Q1 2015 to $3.02 billion in Q1 2016. | Gilead could really use the win in the hepatitis C space, too, since competing drugs from AbbVie (NYSE: ABBV) and Merck & Co. (NYSE: MRK) have entered the HCV space have stolen some market share from Gilead's previous combination sensation, Harvoni. AbbVie's Viekira Pak is only approved for HCV type 1 and requires testing to see if patients have a strain of 1a or 1b. Despite Harvoni's advantages, entrance of these rivals from Merck and AbbVie have pressured its sales, which slid from $3.57 billion in Q1 2015 to $3.02 billion in Q1 2016. |
26520.0 | 2016-07-03 00:00:00 UTC | The Big Loser After Gilead's Latest Approval May Not Be Who You Think (Hint: It's not AbbVie, Inc.) | ABBV | https://www.nasdaq.com/articles/big-loser-after-gileads-latest-approval-may-not-be-who-you-think-hint-its-not-abbvie-inc | nan | nan | Image source: stockmonkeys.com via Flickr.
Guess what? The FDA approved Gilead Sciences (NASDAQ: GILD) newest hepatitis C drug, Epclusa, earlier this week. Not surprised? You're not alone. After delivering 98% cure rates and arguably best-in-class safety in trials, just about everyone believed the FDA would give Epclusa a green light.
Yet Gilead Sciences shares jumped 4% higher on news of Epclusa's approval, leaving many to wonder why a green light hadn't been priced into shares ahead of the decision. To understand why investors got more optimistic following Epclusa's approval, you need to understand the company's plans for the drug.
Gilead Sciences' hepatitis C strategy
Although Epclusa is the first drug to win approval for use in patients with every hepatitis C genotype, its use might be more limited than you think, at least at first.
Leading up to the FDA decision, investors were wondering how Gilead Sciences would price Epclusa and whether Epclusa would cannabilize the company's existing market share in the indication. Management addressed both of those questions after the FDA go-ahead.
As a reminder, Gilead Sciences is the market share-leading maker of hepatitis C drugs, and last year, it hauled in more than $19 billion in hepatitis C drug sales. The company markets two hepatitis C drugs: Sovaldi, a drug often used in non-genotype 1 patients, and Harvoni, a treatment for genotype 1 and genotype 4 patients.
Of the two, Harvoni is most important to the company, because genotype 1 accounts for about 70% of the 2.7 million Americans diagnosed with HCV and Harvoni's sales represent about 70% of Gilead Sciences' first-quarter hepatitis C sales.
Obviously, Gilead Sciences had to consider carefully how it would position Epclusa so that it posed the least risk to stealing away Harvoni sales. Its decision to price Epclusa at $74,500 for a 12-week course of therapy may successfully do that.
Although Epclusa's list price is lower than Harvoni's $94,500, the price insurers pay for Harvoni has dropped significantly in the past 18 months as competitors have launched cheaper, competing therapies.
AbbVie Inc .(NYSE: ABBV) set the price for Viekira Pak $10,000 lower than Harvoni when it won approval, and then AbbVie negotiated additional discounts to secure exclusivity with Express Scripts, the nation's largest pharmacy benefit manager.
Similarly, Merck & Co. (NYSE: MRK) won FDA approval of Zepatier, a genotype 1 drug, earlier this year, and when it did, management priced it at only $54,600 for a full 12-week treatment course.
Rather than undercut existing genotype 1 drugs, it would seem Epclusa will be more expensive than Harvoni, Viekira Pak, and Zepatier on a net basis. Assuming Gilead Sciences holds the line and doesn't negotiate Harvoni-like discounts, then it's likely most payers will continue to steer patients to Harvoni, Viekira Pak, and Zepatier. That would be a good thing for Gilead Sciences, because AbbVie's deal with Express Scripts makes it most likely that any genotype 1 market share Epclusa wins would come at Harvoni's expense.
Therefore, Gilead Sciences appears to be positioning Epclusa to significantly disrupt genotype 2 and genotype 3 treatment. Those genotypes are particularly tough-to-treat and currently, doctors usually prescribe multi-drug combination therapies as standard of care. For example, combining Sovaldi with either ribavirin (a prior--generation therapy that can cause side effects) or Bristol-Myers Squibb 's(NYSE: BMY) Daklinza is common.
While combination approaches like these can be effective, they can also be very expensive. Insurers have to pay for each drug used in a combination therapy separately, so the cost of these approaches often eclipses $100,000. Additionally, combination therapies can cause more side effects, reducing patient adherence rates and negatively affecting cure rates. When that happens, it can result in the costly retreatment of patients.
Considering the pitfalls associated with using combination approaches, I think that Epclusa will quickly become the standard of care in these patients. Importantly, it will become that standard without Gilead Sciences' having to cut Epclusa's price to win market share.
Looking ahead
AbbVie is more insulated than Merck and Bristol-Myers Squibb from Epclusa's challenge because of its sweetheart deal with Express Scripts. Sales of Merck's Zepatier are only trickling in so far, so it appears to me that it's Bristol-Myers Squibb that could be hardest hit by Epclusa. If so, then there could be a billion-dollar swing in hepatitis C market share in the coming year. Last quarter, Bristol-Myers Squibb's U.S. hepatitis C sales totaled $259 million.
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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 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. | (NYSE: ABBV) set the price for Viekira Pak $10,000 lower than Harvoni when it won approval, and then AbbVie negotiated additional discounts to secure exclusivity with Express Scripts, the nation's largest pharmacy benefit manager. That would be a good thing for Gilead Sciences, because AbbVie's deal with Express Scripts makes it most likely that any genotype 1 market share Epclusa wins would come at Harvoni's expense. AbbVie Inc . | (NYSE: ABBV) set the price for Viekira Pak $10,000 lower than Harvoni when it won approval, and then AbbVie negotiated additional discounts to secure exclusivity with Express Scripts, the nation's largest pharmacy benefit manager. AbbVie Inc . That would be a good thing for Gilead Sciences, because AbbVie's deal with Express Scripts makes it most likely that any genotype 1 market share Epclusa wins would come at Harvoni's expense. | That would be a good thing for Gilead Sciences, because AbbVie's deal with Express Scripts makes it most likely that any genotype 1 market share Epclusa wins would come at Harvoni's expense. AbbVie Inc . (NYSE: ABBV) set the price for Viekira Pak $10,000 lower than Harvoni when it won approval, and then AbbVie negotiated additional discounts to secure exclusivity with Express Scripts, the nation's largest pharmacy benefit manager. | That would be a good thing for Gilead Sciences, because AbbVie's deal with Express Scripts makes it most likely that any genotype 1 market share Epclusa wins would come at Harvoni's expense. AbbVie Inc . (NYSE: ABBV) set the price for Viekira Pak $10,000 lower than Harvoni when it won approval, and then AbbVie negotiated additional discounts to secure exclusivity with Express Scripts, the nation's largest pharmacy benefit manager. |
26521.0 | 2016-07-01 00:00:00 UTC | Owens-Illinois, Korn Ferry, AbbVie and Johnson & Johnson highlighted as Zacks Bull and Bear of the Day | ABBV | https://www.nasdaq.com/articles/owens-illinois-korn-ferry-abbvie-and-johnson-johnson-highlighted-as-zacks-bull-and-bear-of | nan | nan | For Immediate Release
Chicago, IL - July 01, 2016 - Zacks Equity Research highlights Owens-Illinois ( OI ) as the Bull of the Day and Korn Ferry ( KFY ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on AbbVie Inc. ( ABBV ) and Johnson & Johnson ( JNJ ).
Here is a synopsis of all four stocks:
Bull of the Day:
Owens-Illinois ( OI ) has met or beat the Zacks Consensus Estimate in each of the last seven quarters. Over that span, there were only two meets and more importantly to aggressive growth investors, the last two reports saw solid beats on the top line. The stock is a Zacks Rank #1 (Strong Buy) and today it is the Bull of the Day.
The Numbers
OI beat the Zacks Consensus Estimate of $0.40 by $0.08 for a 20% positive earnings surprise. The topline was equally as impressive with the company reporting revenues of $1.588B and that was $60M more than expected for a 3.9% positive revenue surprise.
As a result of the great performance Wall Street sent shares of OI higher by more than 4% in the session following the release.
Description
Owens-Illinois makes glass containers. The Company's principal product lines are glass containers for the food and beverage industries. Owens-Illinois was founded in 1903 and is headquartered in Perrysburg, Ohio.
Earnings History
As noted above the company has a solid recent history of beating the number. With five of the last seven reports coming in ahead of the Zacks Consensus Estimate there is a clear signal here that company executives know how to manage Wall Street.
When I expand my view back another seven quarters I see another five beats, but I add on two misses. The 14 quarter history is a solid one, with 10 beats, 2 misses and 2 meets.
Estimates
Estimates have been moving higher almost all year. The 2016 Zacks Consensus Estimate was $2.15 in February, but moved higher by two and three cents in the following two months. A big move higher of a dime in May brought the number to $2.30, and it remained at that level for the month of June.
The 2017 Zacks Consensus Estimate moved from $2.41 to $2.55 over the same time period albeit with fewer actual increases.
Valuation
The valuation for OI is nothing if not enticing. The forward PE of 7.5x is less than half the industry average of 16x. Just because one metric is super low, don't expect the stock to just double to catch up to the industry average. To support that argument, look at the price to book of 6.6x when the industry average is 7x. The price to sales multiple of 0.4x is only one third of the 1.2x industry average.
To me, the valuation looks very attractive to a company that is looking at double the industry average revenue growth for this year. Analysts are looking for 9.5% revenue growth for OI this year compared to 4.3% revenue growth for the broader industry.
More growth at a discount? That is what I love to see.
Bear of the Day :
Korn Ferry ( KFY ) posted back to back beats of the Zacks Consensus Estimate. That doesn't make a stock the Bear of the Day, so let's figure out why the stock is now a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
The Numbers
KFY beat the Zacks Consensus Estimate of $0.54 by $0.04 for a 7.4% positive earnings surprise in the most recent quarter.
This wasn't the reason the stock fell some 21% the session following the release, so read on for why it did fall. Description
Korn/Ferry offers leadership and talent consulting services. It operates in around 37 countries and is based in Los Angeles.
Earnings History
Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for KFY, as there is one miss over the last five quarters that have been reported.
Estimates
Here is the real reason the stock is a Zacks Rank #5 (Strong Sell) and the Bear of the Day. The Zacks Consensus Estimate has fallen over the last month. The FY16 estimate stood at $2.56 in May but fell to $2.42 in June.
Next year has also saw a big move lower in estimates with the 2017 Zacks Consensus Estimate moving from $2.92 in May to $2.75 in June.
Additional content:
AbbVie, J&J's Imbruvica Gets Breakthrough Therapy Status
AbbVie Inc. ( ABBV ) and Johnson & Johnson's ( JNJ ) Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. 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 (ODD) for the indication.
Breakthrough Therapy Designation helps fasten the development and review of drugs which are being evaluated for the treatment of serious conditions and where preliminary clinical evidence indicates that the drug may be substantially better than existing treatments on clinically significant endpoint(s).
Currently, no treatments are available specifically for cGVHD with most patients being prescribed glucocorticoids, a systemic steroid treatment. However, according to the Fred Hutchinson Cancer Research Center, research shows that serious health complications can arise from the long-term use of steroids.
Earlier BTDs for Oncology Indications
Imbruvica has previously received BTD for oncology indications including for the treatment of patients with relapsed or refractory mantle cell lymphoma (MCL), the treatment of Waldenström's macroglobulinemia (WM) and the treatment of patients with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) with a deletion of the short arm of chromosome 17 (del 17p).
Pipeline in a Molecule
Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. Currently approved for certain types of blood cancer, Imbruvica has multi-billion dollar potential and AbbVie is exploring the potential to expand Imbruvica's label into solid tumors and autoimmune diseases. AbbVie is positioning Imbruvica as a "pipeline in a molecule" - the treatment is in several studies including 14 phase III studies.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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. | In addition, Zacks Equity Research provides analysis on AbbVie Inc. ( ABBV ) and Johnson & Johnson ( JNJ ). Additional content: AbbVie, J&J's Imbruvica Gets Breakthrough Therapy Status AbbVie Inc. ( ABBV ) and Johnson & Johnson's ( JNJ ) Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. Pipeline in a Molecule Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. | Additional content: AbbVie, J&J's Imbruvica Gets Breakthrough Therapy Status AbbVie Inc. ( ABBV ) and Johnson & Johnson's ( JNJ ) Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. Click to get this free report OWENS-ILLINOIS (OI): Free Stock Analysis Report KORN/FERRY INTL (KFY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on AbbVie Inc. ( ABBV ) and Johnson & Johnson ( JNJ ). | Click to get this free report OWENS-ILLINOIS (OI): Free Stock Analysis Report KORN/FERRY INTL (KFY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on AbbVie Inc. ( ABBV ) and Johnson & Johnson ( JNJ ). Additional content: AbbVie, J&J's Imbruvica Gets Breakthrough Therapy Status AbbVie Inc. ( ABBV ) and Johnson & Johnson's ( JNJ ) Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. | Want the latest recommendations from Zacks Investment Research? In addition, Zacks Equity Research provides analysis on AbbVie Inc. ( ABBV ) and Johnson & Johnson ( JNJ ). Additional content: AbbVie, J&J's Imbruvica Gets Breakthrough Therapy Status AbbVie Inc. ( ABBV ) and Johnson & Johnson's ( JNJ ) Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. |
26522.0 | 2016-07-01 00:00:00 UTC | AbbVie Humira Gains FDA Approval for Yet Another Indication | ABBV | https://www.nasdaq.com/articles/abbvie-humira-gains-fda-approval-for-yet-another-indication-2016-07-01 | nan | nan | AbbVie Inc.ABBV announced a label expansion for its anti-inflammatory drug, Humira, in the U.S. With the label expansion, Humira can now be used for the treatment of adults suffering from non-infectious intermediate, posterior and panuveitis. Approval makes Humira the first and only FDA-approved non-corticosteroid treatment for this indication.
We note that this is the tenth FDA approval for Humira in the U.S. This approval comes after Humira gained approval in the EU last month for the treatment of non-infectious intermediate, posterior and panuveitis in adults who have had an inadequate response to corticosteroids, in patients in need of corticosteroid-sparing, or in whom corticosteroid treatment is inappropriate.
Humira is currently approved in the U.S. for several indications including psoriatic arthritis, ankylosing spondylitis, moderate-to-severe rheumatoid arthritis, polyarticular juvenile idiopathic arthritis, Crohn's disease (CD), hidradenitis suppurativa, ulcerative colitis, and chronic plaque psoriasis. It is also approved for the treatment of moderate-to-severe CD in children six years of age and older.
We note that Humira enjoys orphan drug status in the U.S. for the treatment of certain forms of uveitis, which affect a population of fewer than 200,000 patients. The orphan drug status should now make Humira eligible for seven years of market exclusivity for the treatment of adults with non-infectious intermediate, posterior and panuveitis.
We note that Humira is the key growth driver at AbbVie. The drug recorded total sales of $14 billion in 2015, reflecting an 11.7% surge. Label expansion should boost the commercial potential of the drug.
AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the healthcare sector include Pfizer Inc. PFE , Bristol-Myers Squibb Company BMY and Johnson & Johnson JNJ . While Pfizer and Bristol-Myers are Zacks Rank #1 (Strong Buy) stocks, Johnson & Johnson carries a Zacks Rank #2 (Buy).
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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 a label expansion for its anti-inflammatory drug, Humira, in the U.S. With the label expansion, Humira can now be used for the treatment of adults suffering from non-infectious intermediate, posterior and panuveitis. We note that Humira is the key growth driver at AbbVie. AbbVie is a Zacks Rank #3 (Hold) stock. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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 announced a label expansion for its anti-inflammatory drug, Humira, in the U.S. With the label expansion, Humira can now be used for the treatment of adults suffering from non-infectious intermediate, posterior and panuveitis. We note that Humira is the key growth driver at AbbVie. | AbbVie Inc.ABBV announced a label expansion for its anti-inflammatory drug, Humira, in the U.S. With the label expansion, Humira can now be used for the treatment of adults suffering from non-infectious intermediate, posterior and panuveitis. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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. We note that Humira is the key growth driver at AbbVie. | AbbVie Inc.ABBV announced a label expansion for its anti-inflammatory drug, Humira, in the U.S. With the label expansion, Humira can now be used for the treatment of adults suffering from non-infectious intermediate, posterior and panuveitis. We note that Humira is the key growth driver at AbbVie. AbbVie is a Zacks Rank #3 (Hold) stock. |
26523.0 | 2016-07-01 00:00:00 UTC | An Overnight Double! Could These Drugmakers Be Next? | ABBV | https://www.nasdaq.com/articles/overnight-double-could-these-drugmakers-be-next-2016-07-01 | nan | nan | Image source: Getty Images.
Tesaro (NASDAQ: TSRO) saw its shares increase 108% on Wednesday after announcing that its cancer drug, niraparib, extended progression-free survival -- a measure of how long it takes a tumor to start growing again -- in patients with ovarian cancer.
Niraparib belongs to a class of drugs that inhibit poly ADP-ribose polymerase (PARP), which repairs DNA damage. In the presence of a PARP inhibitor, the DNA damage isn't repaired, and the cell eventually dies.
Tesaro's results were quite impressive. In patients with BRCA mutations, which increase the amount of DNA damage, progression-free survival was extended from 5.5 months in the group receiving placebo to 21 months for those taking niraparib. Patients with tumors that were homologous recombination deficient, which also have trouble repairing DNA, saw progression-free survival increase from 3.8 months on placebo to 12.9 months on niraparib.
Tesaro plans to share the full data set at a medical meeting in October, but it's clear the doubling of the share price was clearly well deserved. It's not every day you see a drug tripling the progression-free survival of the control arm.
Missed the Tesaro double? Other opportunities
Tesaro isn't the only company with a PARP inhibitor. AstraZeneca (NYSE: AZN) gained FDA approval for its PARP inhibitor Lynparza in late 2014, but it's only approved for patients who have already received three or more chemotherapy treatments. Tesaro's trial, dubbed NOVA, tested niraparib in patients who were responding to platinum-based chemotherapy.
AstraZeneca is testing Lynparza in the same sort of maintenance-therapy setting in a trial dubbed SOLO2. Results from that trial and another one AstraZeneca is running -- called SOLO1, in untreated patients with BRCA mutations -- are expected soon.
In addition to ovarian cancer, other companies, including Tesaro, are testing PARP inhibitors in breast cancer where mutations in BRCA genes are also seen. Medivation (NASDAQ: MDVN) and AbbVie (NYSE: ABBV) are both taking a two-pronged approach for their PARP inhibitors, talazoparib and veliparib, respectively, testing them in breast cancer patients who have BRCA mutations and in combination with chemotherapy drugs that work by creating DNA damage. Combining the two should, in theory, have a synergistic effect. AbbVie is also testing the veliparib-chemotherapy combination in lung cancer.
Finally, Clovis Oncology (NASDAQ: CLVS) has a PARP inhibitor, rucaparib, that's already under review by the Food and Drug Administration through a rolling submission. In May, Clovis Oncology said it plans to finish up the FDA marketing application this quarter -- that ends today -- and submit an application to European regulators by the end of the year. If approved, rucaparib would be initially used for patients with advanced ovarian cancer who have BRCA mutations, but Clovis has an ongoing trial exploring the drug in earlier-stage ovarian cancer and plans for other trials, including one in prostate cancer.
Another double in the works?
For a clinical trial results or FDA approvals to double the value of a share, the company needs to be small enough that the results are substantially meaningful to its bottom line and/or unexpected.
That leaves out AstraZeneca and AbbVie. There's no possible way positive clinical trial results are going to double their value given those companies' size. Their PARP inhibitor programs should nevertheless increase their value if successful.
Medivation is too big to double as well, but it's an interesting case because Sanofi (NYSE: SNY) is in the middle of a hostile bid to buy Medivation. The Tesaro data gives Medivation ammunition to get Sanofi to raise its $9.3 billion buyout offer. Medivation is currently trading almost 10% higher than Sanofi's bid, so investors clearly think a higher bid is possible.
That leaves Clovis, which was up 22% yesterday after Tesaro announced its clinical trial results but has given some of that back today. At a market cap under $550 million, the biotech has plenty of room to run if it can show that rucaparib can compete with the rest of the PARP inhibitors.
Even if none of the companies experience an overnight double like Tesaro did, the PARP inhibitor space is clearly one investors should be watching.
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Brian Orelli and The Motley Fool have 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. | Medivation (NASDAQ: MDVN) and AbbVie (NYSE: ABBV) are both taking a two-pronged approach for their PARP inhibitors, talazoparib and veliparib, respectively, testing them in breast cancer patients who have BRCA mutations and in combination with chemotherapy drugs that work by creating DNA damage. AbbVie is also testing the veliparib-chemotherapy combination in lung cancer. That leaves out AstraZeneca and AbbVie. | Medivation (NASDAQ: MDVN) and AbbVie (NYSE: ABBV) are both taking a two-pronged approach for their PARP inhibitors, talazoparib and veliparib, respectively, testing them in breast cancer patients who have BRCA mutations and in combination with chemotherapy drugs that work by creating DNA damage. AbbVie is also testing the veliparib-chemotherapy combination in lung cancer. That leaves out AstraZeneca and AbbVie. | Medivation (NASDAQ: MDVN) and AbbVie (NYSE: ABBV) are both taking a two-pronged approach for their PARP inhibitors, talazoparib and veliparib, respectively, testing them in breast cancer patients who have BRCA mutations and in combination with chemotherapy drugs that work by creating DNA damage. AbbVie is also testing the veliparib-chemotherapy combination in lung cancer. That leaves out AstraZeneca and AbbVie. | Medivation (NASDAQ: MDVN) and AbbVie (NYSE: ABBV) are both taking a two-pronged approach for their PARP inhibitors, talazoparib and veliparib, respectively, testing them in breast cancer patients who have BRCA mutations and in combination with chemotherapy drugs that work by creating DNA damage. AbbVie is also testing the veliparib-chemotherapy combination in lung cancer. That leaves out AstraZeneca and AbbVie. |
26524.0 | 2016-06-30 00:00:00 UTC | The Zacks Analyst Blog Highlights: Gilead, Regulus, AbbVie, The Medicines and GW Pharma | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-gilead-regulus-abbvie-the-medicines-and-gw-pharma-2016 | nan | nan | For Immediate Release
Chicago, IL - June 30, 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 Gilead ( GILD ), Regulus ( RGLS ), AbbVie ( ABBV ), The Medicines Company ( MDCO ) and GW Pharma ( GWPH ).
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
Gilead ( GILD ) once again showed its expertise in the hepatitis C virus (HCV) segment by gaining FDA approval for yet another drug, Epclusa. However, another company, Regulus ( RGLS ), suffered a setback related to its experimental HCV treatment.
Recap of the Week's Most Important Stories
1. Gilead got some good news for both its key franchises - HIV and HCV. The company gained European approval for its HIV treatment, Odefsey, the second single tablet regimen containing the Descovy backbone and the third product in the company's new TAF portfolio to gain approval in Europe (Read more: Gilead's HIV Treatment Odefsey Gains Approval in EU ).
Meanwhile, Gilead continues to expand its blockbuster HCV franchise. The company gained FDA approval for Epclusa, the first all-oral, pan-genotypic, single tablet regimen for the treatment of adults with genotype 1-6 chronic HCV. Epclusa is also approved for use in certain other patient populations (Read more: Why Is Gilead Sciences Stock Gaining Today? ).
2. Regulus suffered a setback with the company receiving a verbal notice from the FDA placing its IND for experimental HCV treatment, RG-101, on clinical hold. The clinical hold was placed after the company reported a second serious adverse event (SAE) of jaundice in an early-stage study. The news led to a 49.3% decline in the company's stock price.
Meanwhile, AbbVie ( ABBV ) decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. Efforts to restructure the partnership proved futile and resulted in global rights to the treatment being returned to Infinity. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations.
Meanwhile, Infinity said it will be cutting its workforce by 58% and will close certain studies that were being conducted on duvelisib. The company will explore strategic options for the duvelisib program, and will focus on submitting a NDA in the fourth quarter of 2016.
3. The Medicines Company ( MDCO ) got a boost with its experimental antibiotic, Carbavance, meeting FDA as well as EMA pre-specified primary endpoints in a late-stage study (TANGO I) in patients with complicated urinary tract infections (cUTI). Plans are on to seek FDA approval early next year. Carbavance is one of the four candidates in the company's pipeline that are estimated to have blockbuster potential (Read more: The Medicines Co.'s Carbavance Scores in Phase III Study ).
4. GW Pharma's ( GWPH ) shares are up on positive data from a late-stage study on Epidiolex for the treatment of Lennox-Gastaut syndrome (LGS), a rare and severe form of childhood-onset epilepsy. Earlier this year, Epidiolex had fared well in another late-stage study that was conducted for Dravet syndrome. The company expects to file for FDA approval in the first half of 2017 (Read more: GW Pharmaceuticals Stock Up on Positive Epidiolex Data ).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Gilead ( GILD ), Regulus ( RGLS ), AbbVie ( ABBV ), The Medicines Company ( MDCO ) and GW Pharma ( GWPH ). Meanwhile, AbbVie ( ABBV ) decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations. | Stocks recently featured in the blog include Gilead ( GILD ), Regulus ( RGLS ), AbbVie ( ABBV ), The Medicines Company ( MDCO ) and GW Pharma ( GWPH ). Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report REGULUS THERAP (RGLS): Free Stock Analysis Report MEDICINES CO (MDCO): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ( ABBV ) decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report REGULUS THERAP (RGLS): Free Stock Analysis Report MEDICINES CO (MDCO): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Gilead ( GILD ), Regulus ( RGLS ), AbbVie ( ABBV ), The Medicines Company ( MDCO ) and GW Pharma ( GWPH ). Meanwhile, AbbVie ( ABBV ) decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. | Want the latest recommendations from Zacks Investment Research? Stocks recently featured in the blog include Gilead ( GILD ), Regulus ( RGLS ), AbbVie ( ABBV ), The Medicines Company ( MDCO ) and GW Pharma ( GWPH ). Meanwhile, AbbVie ( ABBV ) decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. |
26525.0 | 2016-06-30 00:00:00 UTC | AbbVie, J&J's Imbruvica Gets Breakthrough Therapy Status | ABBV | https://www.nasdaq.com/articles/abbvie-jjs-imbruvica-gets-breakthrough-therapy-status-2016-06-30 | nan | nan | AbbVie Inc.ABBV and Johnson & Johnson's JNJ Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. 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 (ODD) for the indication.
Breakthrough Therapy Designation helps fasten the development and review of drugs which are being evaluated for the treatment of serious conditions and where preliminary clinical evidence indicates that the drug may be substantially better than existing treatments on clinically significant endpoint(s).
Currently, no treatments are available specifically for cGVHD with most patients being prescribed glucocorticoids, a systemic steroid treatment. However, according to the Fred Hutchinson Cancer Research Center, research shows that serious health complications can arise from the long-term use of steroids.
Earlier BTDs for Oncology Indications
Imbruvica has previously received BTD for oncology indications including for the treatment of patients with relapsed or refractory mantle cell lymphoma (MCL), the treatment of Waldenström's macroglobulinemia (WM) and the treatment of patients with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) with a deletion of the short arm of chromosome 17 (del 17p).
Pipeline in a Molecule
Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. Currently approved for certain types of blood cancer, Imbruvica has multi-billion dollar potential and AbbVie is exploring the potential to expand Imbruvica's label into solid tumors and autoimmune diseases. AbbVie is positioning Imbruvica as a "pipeline in a molecule" - the treatment is in several studies including 14 phase III studies.
AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the healthcare sector include Pfizer Inc. PFE and Bristol-Myers Squibb Company BMY - both are Zacks Rank #1 (Strong Buy) stocks. Johnson & Johnson carries a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc.ABBV and Johnson & Johnson's JNJ Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. Pipeline in a Molecule Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. Currently approved for certain types of blood cancer, Imbruvica has multi-billion dollar potential and AbbVie is exploring the potential to expand Imbruvica's label into solid tumors and autoimmune diseases. | AbbVie Inc.ABBV and Johnson & Johnson's JNJ Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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. Pipeline in a Molecule Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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 and Johnson & Johnson's JNJ Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. Pipeline in a Molecule Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. | AbbVie is a Zacks Rank #3 (Hold) stock. AbbVie Inc.ABBV and Johnson & Johnson's JNJ Imbruvica got a fourth Breakthrough Therapy Designation (BTD), this time for a non-cancer indication. Pipeline in a Molecule Imbruvica became a part of AbbVie's portfolio following its acquisition of Pharmacyclics. |
26526.0 | 2016-06-30 00:00:00 UTC | 3 Dividend Growth Stocks to Buy in July | ABBV | https://www.nasdaq.com/articles/3-dividend-growth-stocks-buy-july-2016-06-30 | nan | nan | If you're looking to plant seeds of growing income, take a look at these three dividend growth stocks. Image source: Getty Images.
One of the best ways to find investing success is to buy and hold companies with a track record of dividend growth. Not only does it take a solid business with excellent management to routinely grow earnings and support increased payouts, but the dividend growth itself can really add up over time.
We asked three of our top contributors to give us a dividend growth stock worth buying now, and they gave us an energy company with a strong core business, and two well-known pharmaceutical companies with a bevy of blockbuster drugs driving profits. Here's a closer look at what they had to say.
1. This energy stalwart is set for years of dividend growth
Jason Hall : I've written about Phillips 66 (NYSE: PSX) for a couple of years now, and even with the oil and gas downturn having some impact on its refining profits, the company remains one of my favorite dividend growth investments. And with the recent sell-off of its stock, you can now capture a nearly 3% dividend yield, and reasonably expect to see your payouts go up for years to come.
Since being spun out of ConocoPhillips and paying its first dividend in 2012, management has regularly said that dividend increases and share buybacks are core priorities with excess cash flows. Well, the 215% they've increased dividends in that short period shows that they're dead-serious about paying investors back. Furthermore, the company pays out well under half of its profits in dividends, meaning there's still room to grow it while still investing in growth.
If it's a company with steady, dependable cash flows, and the ability to continue increasing payouts in coming years, then Phillips 66 might be ideal for your portfolio.
2. This out-of-favor biotech might belong in your portfolio
Brian Feroldi : There's no question that biotechnology stocks are out of favor with investors right now. The sector wide sell-off has taken down the market values of companies of all sizes, which is presenting a great opportunity for investors who are willing to invest against the grain.
One biotech stock that is dirt cheap right now is Gilead Sciences (NASDAQ: GILD) . Shares have been hit so hard that they now trade for about seven times trailing earnings. Even with an extremely low payout ratio of about 14% the company offers investors a market-beating dividend yield of 2.27%. So what gives?
Simply put, the market is scared that the biotech's glory days are over. Last quarter, combined sales of its blockbuster hepatitis-C drugs Harvoni and Sovaldi fell for the first time ever, causing many traders to bail. However, I think they overlooked the fact that company-wide revenue still managed to grow by more than 3% despite the hep-C headwind.
Longer term investors should know that this slowdown could be temporary. Gilead just won FDA approval for its next generation hep-C treatment that can be used on all six versions of the disease. That is a claim that no other hep-c treatment can make, which holds promise to restore the company's pricing power and put its hep-C franchise back into growth mode.
There's also more to Gilead than just its hepatitis-C franchise. Gilead is also the top dog in treating HIV/AIDS, and it recently launched three new drugs -- Genvoya, Descovy, and Odefsey -- that are poised for growth.
While investors wait for its new drugs to pick up the slack, the company is buying back its shares as fast as it can. The company retired $8 billion worth of its own stock last quarter, greatly reducing the share count. Even still, the company has more than $21 billion in cash on its books, and it produced more than $17.8 billion in free cash flow over the last twelve months. That also provides it with plenty of room to continue to buy back shares and raise the dividend rapidly from here.
With a cheap share price, a market beating dividend yield, and a shareholder-friendly culture, I think investors who buy Gilead's stock today have plenty of ways to win. That makes this stock a great choice for investors who are looking for value, yield, and potential growth.
3. A little more risk could mean a lot more reward
Todd Campbell : Often, companies with shares yielding more than the S&P 500 aren't the fastest-growers, but AbbVie Inc. (NYSE: ABBV) provides investors with both a market-beating dividend yield and solid double-digit top-line sales and profit growth. Importantly, since shares have slipped a bit since their peak earlier this month, they can be bought on sale.
AbbVie was spun-off by dividend aristocrat Abbott Labs in 2013, and its best selling drug is Humira, a widely used medicine for autoimmune diseases such as rheumatoid arthritis. Last year, Humira sales totaled $14 billion, making it the planet's top-selling drug.
In Q1, Humira prescription growth helped AbbVie's top line and bottom line improve 18.2% and 32.5% versus a year ago, respectively. Usually, investors have to pay up to buy that kind of growth, but shares of AbbVie trade at just 11 times next year's earnings estimate.
That discount valuation is due to Humira's formulation patent expiring in December. However, Humira's method of use patents could keep copy-cat competitors at bay, which has management thinking Humira's sales will grow to $18 billion in 2020 in spite of the patent loss.
If management's right, then AbbVie has time to expand into new markets and develop a Humira successor. The company's already making a splash in cancer treatment thanks to its top-selling blood cancer drug Imbruvica, and work is under way on next-generation drugs that may work better than Humira.
Admittedly, Humira's patent risk creates uncertainty, which makes this pick a bit riskier than others, but investors get a nice 3.8% yield for accepting that risk. Assuming management can keep look-a-likes off the market a while longer, shares might be worth buying.
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Brian Feroldi owns shares of Gilead Sciences. Jason Hall owns shares of Phillips 66. Todd Campbell 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 was spun-off by dividend aristocrat Abbott Labs in 2013, and its best selling drug is Humira, a widely used medicine for autoimmune diseases such as rheumatoid arthritis. A little more risk could mean a lot more reward Todd Campbell : Often, companies with shares yielding more than the S&P 500 aren't the fastest-growers, but AbbVie Inc. (NYSE: ABBV) provides investors with both a market-beating dividend yield and solid double-digit top-line sales and profit growth. In Q1, Humira prescription growth helped AbbVie's top line and bottom line improve 18.2% and 32.5% versus a year ago, respectively. | A little more risk could mean a lot more reward Todd Campbell : Often, companies with shares yielding more than the S&P 500 aren't the fastest-growers, but AbbVie Inc. (NYSE: ABBV) provides investors with both a market-beating dividend yield and solid double-digit top-line sales and profit growth. AbbVie was spun-off by dividend aristocrat Abbott Labs in 2013, and its best selling drug is Humira, a widely used medicine for autoimmune diseases such as rheumatoid arthritis. In Q1, Humira prescription growth helped AbbVie's top line and bottom line improve 18.2% and 32.5% versus a year ago, respectively. | A little more risk could mean a lot more reward Todd Campbell : Often, companies with shares yielding more than the S&P 500 aren't the fastest-growers, but AbbVie Inc. (NYSE: ABBV) provides investors with both a market-beating dividend yield and solid double-digit top-line sales and profit growth. AbbVie was spun-off by dividend aristocrat Abbott Labs in 2013, and its best selling drug is Humira, a widely used medicine for autoimmune diseases such as rheumatoid arthritis. In Q1, Humira prescription growth helped AbbVie's top line and bottom line improve 18.2% and 32.5% versus a year ago, respectively. | Usually, investors have to pay up to buy that kind of growth, but shares of AbbVie trade at just 11 times next year's earnings estimate. A little more risk could mean a lot more reward Todd Campbell : Often, companies with shares yielding more than the S&P 500 aren't the fastest-growers, but AbbVie Inc. (NYSE: ABBV) provides investors with both a market-beating dividend yield and solid double-digit top-line sales and profit growth. AbbVie was spun-off by dividend aristocrat Abbott Labs in 2013, and its best selling drug is Humira, a widely used medicine for autoimmune diseases such as rheumatoid arthritis. |
26527.0 | 2016-06-29 00:00:00 UTC | Infinity Regains Duvelisib Rights, Announces Restructuring | ABBV | https://www.nasdaq.com/articles/infinity-regains-duvelisib-rights-announces-restructuring-2016-06-29 | nan | nan | Infinity Pharmaceuticals, Inc.INFI announced that AbbVie Inc. ABBV has exercised its right to terminate the collaboration with the company for the development and commercialization of duvelisib. Both companies had entered into discussions related to the restructuring of the partnership, which failed to arrive at a mutually attractive financial structure for the continuation of the collaboration.
With the termination of this agreement, Infinity has regained worldwide rights to duvelisib. Neither Infinity nor AbbVie will owe future financial obligations to each other. The termination of the agreement will be effective from Sep 23, 2016.
We note that Infinity had entered into a collaboration and license agreement with AbbVie to jointly develop and commercialize duvelisib for oncology indications in Sep 2014.
Currently, Infinity is exploring strategic options for the duvelisib program that will support the submission of global regulatory applications and commercialization of duvelisib. Infinity will continue to focus its efforts on filing a new drug application for duvelisib with the FDA in the fourth quarter of 2016.
The company's filing strategy includes the incorporation of data from both DUO and DYNAMO studies. While DUO is a randomized phase III monotherapy study in patients with relapsed/refractory chronic lymphocytic leukemia (CLL), DYNAMO is a single-arm, phase II monotherapy study in patients with refractory indolent non-Hodgkin lymphoma (iNHL).
Infinity plans to seek feedback from the FDA regarding the DYNAMO data, which was announced earlier this month. In addition, the company expects to report top-line data from the DUO study, based on the results of an interim analysis, in the third quarter of 2016.
Additionally, the company plans to focus on SYNCHRONY - a combination study on duvelisib plus Gazyva in CLL or small lymphocytic lymphoma patients who were previously treated with a Bruton's tyrosine kinase inhibitor and FRESCO - a combination study in patients with relapsed/refractory follicular lymphoma planned to evaluate the potential of duvelisib to replace chemotherapy.
The company intends to discuss with the FDA the potential for FRESCO to serve as a confirmatory study for full approval in follicular lymphoma if duvelisib receives an accelerated approval based on the DYNAMO study.
Announces Restructuring Plan
Infinity announced that it also plans to eliminate 100 positions across the organization, representing approximately 58% of the company's workforce. Earlier this month, the company had said that it will close down its discovery research organization impacting 21% of the company's workforce or 46 positions.
The company's restructuring plans also include closing BRAVURA, a phase III study on duvelisib in patients with relapsed iNHL and CONTEMPO, a phase Ib/II study on duvelisib in treatment-naïve patients with follicular lymphoma. Moreover, Infinity will not proceed with the phase Ib/II study on duvelisib in combination with Venclexta.
The company currently expects to incur severance, benefit and related costs of approximately $8 million, with future cash outlays of $5 million expected to be paid at end 2016 and up to approximately $3 million expected to be paid at end 2017. The company currently expects clinical trial and related development close down costs between $5 million and $7 million, and expects the related cash outlays to be paid during the end of this year.
The company expects this restructuring to be substantially completed by Jul 15, 2016, and to be fully completed by Dec 31, 2016.
Considering that Infinity is highly dependent on successful development of duvelisib for growth, the termination of the duvelisib agreement with AbbVie is a huge setback for Infinity. The company is now solely responsible for the development of the candidate and has to bear all related costs.
Infinity currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company BMY and Pfizer Inc. PFE , both sporting a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that Infinity had entered into a collaboration and license agreement with AbbVie to jointly develop and commercialize duvelisib for oncology indications in Sep 2014. Infinity Pharmaceuticals, Inc.INFI announced that AbbVie Inc. ABBV has exercised its right to terminate the collaboration with the company for the development and commercialization of duvelisib. Neither Infinity nor AbbVie will owe future financial obligations to each other. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Infinity Pharmaceuticals, Inc.INFI announced that AbbVie Inc. ABBV has exercised its right to terminate the collaboration with the company for the development and commercialization of duvelisib. Neither Infinity nor AbbVie will owe future financial obligations to each other. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Infinity Pharmaceuticals, Inc.INFI announced that AbbVie Inc. ABBV has exercised its right to terminate the collaboration with the company for the development and commercialization of duvelisib. Neither Infinity nor AbbVie will owe future financial obligations to each other. | Infinity Pharmaceuticals, Inc.INFI announced that AbbVie Inc. ABBV has exercised its right to terminate the collaboration with the company for the development and commercialization of duvelisib. We note that Infinity had entered into a collaboration and license agreement with AbbVie to jointly develop and commercialize duvelisib for oncology indications in Sep 2014. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26528.0 | 2016-06-29 00:00:00 UTC | Biotech Stock Roundup: Gilead Gets FDA Nod for HCV Drug, Regulus Hit by Clinical Hold | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-gilead-gets-fda-nod-hcv-drug-regulus-hit-clinical-hold-2016-06-29 | nan | nan | Gilead GILD once again showed its expertise in the hepatitis C virus (HCV) segment by gaining FDA approval for yet another drug, Epclusa. However, another company, Regulus RGLS suffered a setback related to its experimental HCV treatment.
Recap of the Week's Most Important Stories
1. Gilead got some good news for both its key franchises - HIV and HCV. The company gained European approval for its HIV treatment, Odefsey, the second single tablet regimen containing the Descovy backbone and the third product in the company's new TAF portfolio to gain approval in Europe (Read more: Gilead's HIV Treatment Odefsey Gains Approval in EU ).
Meanwhile, Gilead continues to expand its blockbuster HCV franchise. The company gained FDA approval for Epclusa, the first all-oral, pan-genotypic, single tablet regimen for the treatment of adults with genotype 1-6 chronic HCV. Epclusa is also approved for use in certain other patient populations (Read more: Why Is Gilead Sciences Stock Gaining Today? ).
2. Regulus suffered a setback with the company receiving a verbal notice from the FDA placing its IND for experimental HCV treatment, RG-101, on clinical hold. The clinical hold was placed after the company reported a second serious adverse event (SAE) of jaundice in an early-stage study. The news led to a 49.3% decline in the company's stock price.
Meanwhile, AbbVie ABBV decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. Efforts to restructure the partnership proved futile and resulted in global rights to the treatment being returned to Infinity. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations.
Meanwhile, Infinity said it will be cutting its workforce by 58% and will close certain studies that were being conducted on duvelisib. The company will explore strategic options for the duvelisib program, and will focus on submitting a NDA in the fourth quarter of 2016.
3. The Medicines Company MDCO got a boost with its experimental antibiotic, Carbavance, meeting FDA as well as EMA pre-specified primary endpoints in a late-stage study (TANGO I) in patients with complicated urinary tract infections (cUTI). Plans are on to seek FDA approval early next year. Carbavance is one of the four candidates in the company's pipeline that are estimated to have blockbuster potential (Read more: The Medicines Co.'s Carbavance Scores in Phase III Study ).
4. GW Pharma's GWPH shares are up on positive data from a late-stage study on Epidiolex for the treatment of Lennox-Gastaut syndrome (LGS), a rare and severe form of childhood-onset epilepsy. Earlier this year, Epidiolex had fared well in another late-stage study that was conducted for Dravet syndrome. The company expects to file for FDA approval in the first half of 2017 (Read more: GW Pharmaceuticals Stock Up on Positive Epidiolex Data ).
5. Clinical-stage biotech company Xencor XNCR has signed up with Novartis for the development and commercialization of a couple of pipeline candidates focused on cancer. The deal will see Xencor getting an upfront payment of $150 million and sharing development costs with Novartis. Importantly, Xencor could earn up to $2.41 billion in the form of milestone payments as well as royalties. The deal is a major positive as it not only provides Xencor with a strong partner, it will also bring in funds.
Performance
The NASDAQ Biotechnology Index was down 1.63% over the last five trading days. Weakness reflected uncertainty regarding the impact of Brexit on biotech stocks especially companies which generate significant sales in the EU.
MEDICAL-BIOMED/GENETICS Industry Price Index
MEDICAL-BIOMED/GENETICS Industry Price Index
Among major biotech stocks, Gilead gained 0.6% over the last five trading days while Alexion ALXN was impacted by the Brexit sell-off with shares declining 7.4%. Over the last six months, Alexion lost 39.2%.
What's Next in the Biotech World?
Watch out for the usual pipeline updates and data presentations from biotech companies.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, AbbVie ABBV decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations. Click to get this free report ALEXION PHARMA (ALXN): Free Stock Analysis Report MEDICINES CO (MDCO): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report XENCOR INC (XNCR): Free Stock Analysis Report REGULUS THERAP (RGLS): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report ALEXION PHARMA (ALXN): Free Stock Analysis Report MEDICINES CO (MDCO): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report XENCOR INC (XNCR): Free Stock Analysis Report REGULUS THERAP (RGLS): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ABBV decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations. | Click to get this free report ALEXION PHARMA (ALXN): Free Stock Analysis Report MEDICINES CO (MDCO): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report XENCOR INC (XNCR): Free Stock Analysis Report REGULUS THERAP (RGLS): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ABBV decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations. | Meanwhile, AbbVie ABBV decided to terminate its collaboration with Infinity Pharma for the development and commercialization of experimental cancer treatment, duvelisib. AbbVie's decision was not exactly unexpected considering top-line data from the phase II DYNAMO study, while positive, fell short of expectations. Click to get this free report ALEXION PHARMA (ALXN): Free Stock Analysis Report MEDICINES CO (MDCO): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GW PHARMA-ADR (GWPH): Free Stock Analysis Report XENCOR INC (XNCR): Free Stock Analysis Report REGULUS THERAP (RGLS): Free Stock Analysis Report To read this article on Zacks.com click here. |
26529.0 | 2016-06-28 00:00:00 UTC | Why Is Gilead Sciences (GILD) Stock Gaining Today? | ABBV | https://www.nasdaq.com/articles/why-gilead-sciences-gild-stock-gaining-today-2016-06-28 | nan | nan | As the global markets continue to deal with the effects of the Brexit, at least one company is bouncing back strong on Tuesday. Gild Sciences GILD gained nearly 3.5% in morning trading today following the approval of its new hepatitis C drug.
The Foster City, California-based biopharmaceutical company announced today that the U.S. Food and Drug Administration (FDA) has approved Epclusa, the first all-oral, single tablet regimen for the treatment of all six genotypes of the hepatitis C virus (HCV).
"The approval of Epclusa represents an important step forward in the global effort to control and potentially eliminate HCV as it provides a safe, simple and effective cure for the majority of HCV-infected patients, regardless of genotype," said Ira Jacobson, MD, an investigator in the Epclusa clinical trials.
The FDA expedited Epclusa's approval process through its Priority Review and Breakthrough Therapy program, which can be applied to potential treatments that offer major advances over existing treatments.
Gilead is already well known for its Hepatitis treatment options, and its existing drugs Harvoni and Sovaldi were responsible for nearly $4.3 billion in revenue last quarter. However, these treatments have been criticized for their high price tags, and they are only effective for patients with the first four genotypes of HCV.
While about 3.2 million people in the United States have HCV, the vast majority of patients have genotypes one and two, with less than 1% of patients contracting genotypes five and six. Nevertheless, Epclusa's simplicity and effectiveness should help give Gilead a leg up on its competition, including AbbVie's ABBV Viekira Pak treatment.
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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. | Nevertheless, Epclusa's simplicity and effectiveness should help give Gilead a leg up on its competition, including AbbVie's ABBV Viekira Pak treatment. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The Foster City, California-based biopharmaceutical company announced today that the U.S. Food and Drug Administration (FDA) has approved Epclusa, the first all-oral, single tablet regimen for the treatment of all six genotypes of the hepatitis C virus (HCV). | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, Epclusa's simplicity and effectiveness should help give Gilead a leg up on its competition, including AbbVie's ABBV Viekira Pak treatment. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, Epclusa's simplicity and effectiveness should help give Gilead a leg up on its competition, including AbbVie's ABBV Viekira Pak treatment. The Foster City, California-based biopharmaceutical company announced today that the U.S. Food and Drug Administration (FDA) has approved Epclusa, the first all-oral, single tablet regimen for the treatment of all six genotypes of the hepatitis C virus (HCV). | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, Epclusa's simplicity and effectiveness should help give Gilead a leg up on its competition, including AbbVie's ABBV Viekira Pak treatment. Gild Sciences GILD gained nearly 3.5% in morning trading today following the approval of its new hepatitis C drug. |
26530.0 | 2016-06-28 00:00:00 UTC | Think Healthcare M&A Is Dead? Think Again. | ABBV | https://www.nasdaq.com/articles/think-healthcare-ma-dead-think-again-2016-06-28 | nan | nan | Many healthcare investors became concerned about the fallout that happened after the failed merger between sector giants Pfizer (NYSE: PFE) and Allergan (NYSE: AGN) .
In this segment from The Motley Fool's Industry Focus: Healthcare podcast, Kristine Harjes and Todd Campbell field a question asked by Foolish intern Amanda Way about the aftermath of the Pfizer/Allergan no-go. They explain why the death of that deal does not at all spell out the death of M&A activity in the healthcare space. Also, they go over how investors should look at buying into smaller drugmakers that might get snapped up by bigger fish, and why many companies in the sector are still interested in M&A as a growth strategy.
A transcript follows the video.
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This podcast was recorded on Jun. 22, 2016.
Amanda Way: Ben Estep, another investing team intern, points out that M&A -- which stands for mergers and acquisitions -- topped $4 trillion last year, and many of these deals seemed to be formed in odd ways just to lower taxes. He specifically noted the fall off through the Pfizer/Allergan deal, which I know you guys covered on this show in detail. His question specifically was, "Is the only way for a lot of big companies to continue generating earnings growth through M&A and creative deals to lower taxes, and should investors and companies heavily involved in M&A be concerned"?
Kristine Harjes: Todd, I'm going to let you take a swing at this one first.
Todd Campbell: What we are talking about here are the tax inversions, right? Where you had a U.S. company that would then go out and acquire a company that had a headquarters somewhere else, such as Ireland, where the corporate tax rate was very low. That kind of M&A was financially rewarding to the acquirer because they were able to significantly reduce their costs without having to do much of anything. They could basically say, "Hey guess what, we're now headquartered over here in Ireland, and as a result if we've got $50 billion in sales, we're now paying a couple billion dollars less in taxes." Yes, mega-tax inversion deals are now DOA -- dead on arrival. I don't anticipate we'll see any more of these now that Allergan and Pfizer broke off their deal following some changes to tax inversion rules from the Treasury Department late last year.
Harjes: We can talk about regulatory risk, and that right there, that's a regulatory effect that healthcare industry had to deal with.
Campbell: Absolutely! They had to deal with that. Does that mean that you don't want to invest in Pfizer and Allergan anymore? Not necessarily. You've got two very different companies that have great, theoretically, great pipelines. That's what you should be focusing on. Is M&A, as a whole, dead now? No! There's ways to grow your company in your sales, in your profitability, by going back to the grassroots of M&A -- looking for promising new drugs that are coming through the pipeline that can either shore up your market share or expand you into new indications.
Harjes: So despite these tax inversions deals being pretty solidly less lucrative now, I agree with you, Todd, that we are not going to see as many companies going at M&A with this perspective, but it is still a humongous trend within the industry. I think it is something to be aware of. It's not necessarily a concern for investors that are invested in these companies that are very into M&A, but it depends on management's perspective on it. You get companies like Pfizer, for example, right after the Allergan deal fell through, not too long after it, they go out and they make a pretty splashy acquisition for $5.2 billion acquisition of Anacor (NASDAQ: ANAC) , essentialy just for one drug that is competing in a pretty competitive market for a specific type of eczema.
Just recently on the show we were talking about AbbVie (NYSE: ABBV) bought Stemcentrx for $5.8 billion. There are a lot of companies out there trying to grow by acquisition.
Campbell: Right, and if you were an investor and you were at one point looking and saying, "What Irish company is going to get bought next?", and trying to figure out that, stop doing that. Instead, let's take a look at de-risked clinical-stage companies -- and by de-risked, I mean maybe there are stage III or beyond or approaching regulatory approval. Those are probably the ones that are going to end up being the biggest targets from here.
Harjes: As opposed to the really early-stage ones. I'll also throw it out there that you never want to be buying any of these smaller companies simply because you think that they are going to be bought out, but it almost is one and the same to say "I think that this is a really attractive buy for a big pharma" and "I think this is a really attractive company on its own." Those two are very tightly intertwined, and so you want to be focused on the latter -- the "I think this is a great company " -- but if it's a great company then it's probably also a great buyout candidate.
Campbell: Yeah, it all depends on the evaluation. It's always going to come down to product, pipeline, and profitability. If you consider those three things, worst-case scenario, you end up buying a good stock for the long haul. Maybe not one that gets taken out right away, but you'll still end up being relatively happy with the purchase, hopefully.
Harjes: Exactly. I wouldn't be concerned about M&A as a big red flag unless that is the entire business model, in which case, that's the kind of company that is really coming under a lot of scrutiny, could potentially face more regulatory risk going forward, and then you want to watch out.
Campbell: Right, and the other thing to watch too, especially with these companies that have been "serial acquirers," is just this whole concept of how are they reporting their numbers, GAAP numbers versus non-GAAP numbers. Are they reporting clean numbers, or are they adjusted and include all sorts of kitchen-sink type stuff?
Harjes: Yes, I completely agree.
Kristine Harjes has no position in any stocks mentioned. Todd Campbell 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. | Just recently on the show we were talking about AbbVie (NYSE: ABBV) bought Stemcentrx for $5.8 billion. In this segment from The Motley Fool's Industry Focus: Healthcare podcast, Kristine Harjes and Todd Campbell field a question asked by Foolish intern Amanda Way about the aftermath of the Pfizer/Allergan no-go. There's ways to grow your company in your sales, in your profitability, by going back to the grassroots of M&A -- looking for promising new drugs that are coming through the pipeline that can either shore up your market share or expand you into new indications. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Just recently on the show we were talking about AbbVie (NYSE: ABBV) bought Stemcentrx for $5.8 billion. In this segment from The Motley Fool's Industry Focus: Healthcare podcast, Kristine Harjes and Todd Campbell field a question asked by Foolish intern Amanda Way about the aftermath of the Pfizer/Allergan no-go. | Just recently on the show we were talking about AbbVie (NYSE: ABBV) bought Stemcentrx for $5.8 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. His question specifically was, "Is the only way for a lot of big companies to continue generating earnings growth through M&A and creative deals to lower taxes, and should investors and companies heavily involved in M&A be concerned"? | Just recently on the show we were talking about AbbVie (NYSE: ABBV) bought Stemcentrx for $5.8 billion. In this segment from The Motley Fool's Industry Focus: Healthcare podcast, Kristine Harjes and Todd Campbell field a question asked by Foolish intern Amanda Way about the aftermath of the Pfizer/Allergan no-go. Harjes: We can talk about regulatory risk, and that right there, that's a regulatory effect that healthcare industry had to deal with. |
26531.0 | 2016-06-27 00:00:00 UTC | Regulus Therapeutics Inc. Clinical Hold: Should Investors Be Yellow-Bellied? | ABBV | https://www.nasdaq.com/articles/regulus-therapeutics-inc-clinical-hold-should-investors-be-yellow-bellied-2016-06-27 | nan | nan | Image source: Getty Images.
When it comes to serious adverse events in clinical trials, one could be a fluke. But as Regulus Therapeutics (NASDAQ: RGLS) discovered, if the same side effect happens a second time, the Food and Drug Administration often breaks out the stop sign.
On Monday after the close, the biotech announced that the FDA put its lead drug RG-101 on a clinical hold after a second case of jaundice occurred in a patient taking its long-acting hepatitis C drug RG-101. The disease, caused by high levels of a cellular breakdown product called bilirubin, turns the skin yellow, but it can lead to more severe complications.
Patient with jaundice.
Image source: James Heilman, MD via Wikimedia .
As in the first case, there are extenuating circumstances with this case. The patient had end-stage renal disease and was on dialysis, which could have been the cause of the jaundice. Bilirubin is supposed to be excreted by the liver, so jaundice can occur in patients with livers that aren't functioning properly.
In fact, the patient's doctor said the jaundice was unlikely related to taking RG-101. The patient developed jaundice 117 days after receiving a single dose of RG-101.
Nevertheless, the FDA isn't taking any chances and put the program on hold. RG-101 works by down-regulating a microRNA in the liver called miR-122 that is essential for the stability, replication, and translation of hepatitis C virus.
Fortunately for Regulus, the three ongoing clinical trials have already enrolled and treated all the patients, so the hold only affects future studies. Regulus plans to present the results of the ongoing clinical trials once the patients have been in the trial long enough to know if they've been cured of hepatitis C.
What now?
Considering the patients' health, there's a good chance that the RG-101 isn't causing the jaundice. But proving that a drug isn't causing an effect is a lot harder than proving that it is doing something.
Regulus' management wasn't willing to speculate about what it'll need to do to lift the clinical hold, arguing that they shouldn't speculate since the formal FDA letter should arrive within 30 days. That may be prudent, but it adds uncertainty that investors generally don't like.
Best-case scenario is that the agency only wants additional monitoring of patients' bilirubin levels but allows Regulus to run other additional trials without any other restrictions.
While it's possible that the FDA would just shut down the entire RG-101 program, that seems unlikely, given that the rate of jaundice is about 1%. But the FDA could conclude that RG-101 is adding to the potential for jaundice and ask Regulus not to test the drug in patients with compromised livers, which could be problematic for Regulus' plan for RG-101.
Regulus is rather late to the hepatitis C drug market. Gilead Sciences (NASDAQ: GILD) , Merck (NYSE: MRK) , and AbbVie (NYSE: ABBV) all have already-approved cocktails that are capable of curing most patients. For Regulus to see meaningful sales of RG-101, it needs to find a niche that Gilead, Merck, and AbbVie aren't filling. Patients with end-stage renal disease often don't respond as well as healthier patients to the cocktails from Gilead, Merck, and AbbVie, so there's potential -- as long as the FDA doesn't take it away -- for RG-101 to treat those patients.
The other possibility is for RG-101 to be combined with another long-acting hepatitis C drug that could make the treatment into a single-treatment cure. Gilead, Merck, and AbbVie are taken orally, but they have to be taken for a few months, so a needle prick or two could trump the hassle of remembering to pop a pill every day for a few months. Regulus is testing a combination of RG-101 with an oral version of GlaxoSmithKline 's(NYSE: GSK) GSK2878175, but GlaxoSmithKline is also developing a long-acting injectable version of the drug that could be used in later trials.
While a combination of RG-101 and GlaxoSmithKline's GSK2878175 might be able to compete with the current cocktails from Gilead, Merck, and AbbVie if it had similar efficacy, the potential for jaundice could cause doctors to shy away from the drugs, especially since the solution for treating many side effects is to stop treatment, but that isn't really possible for long-acting drugs that are only dosed once.
Considering the uncertainty, until we know Regulus' plan to get RG-101 off the FDA clinical hold, it's understandable that investors might be a little anxious and send shares lower.
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Brian Orelli has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gilead Sciences (NASDAQ: GILD) , Merck (NYSE: MRK) , and AbbVie (NYSE: ABBV) all have already-approved cocktails that are capable of curing most patients. For Regulus to see meaningful sales of RG-101, it needs to find a niche that Gilead, Merck, and AbbVie aren't filling. Patients with end-stage renal disease often don't respond as well as healthier patients to the cocktails from Gilead, Merck, and AbbVie, so there's potential -- as long as the FDA doesn't take it away -- for RG-101 to treat those patients. | Patients with end-stage renal disease often don't respond as well as healthier patients to the cocktails from Gilead, Merck, and AbbVie, so there's potential -- as long as the FDA doesn't take it away -- for RG-101 to treat those patients. Gilead Sciences (NASDAQ: GILD) , Merck (NYSE: MRK) , and AbbVie (NYSE: ABBV) all have already-approved cocktails that are capable of curing most patients. For Regulus to see meaningful sales of RG-101, it needs to find a niche that Gilead, Merck, and AbbVie aren't filling. | Patients with end-stage renal disease often don't respond as well as healthier patients to the cocktails from Gilead, Merck, and AbbVie, so there's potential -- as long as the FDA doesn't take it away -- for RG-101 to treat those patients. While a combination of RG-101 and GlaxoSmithKline's GSK2878175 might be able to compete with the current cocktails from Gilead, Merck, and AbbVie if it had similar efficacy, the potential for jaundice could cause doctors to shy away from the drugs, especially since the solution for treating many side effects is to stop treatment, but that isn't really possible for long-acting drugs that are only dosed once. Gilead Sciences (NASDAQ: GILD) , Merck (NYSE: MRK) , and AbbVie (NYSE: ABBV) all have already-approved cocktails that are capable of curing most patients. | Patients with end-stage renal disease often don't respond as well as healthier patients to the cocktails from Gilead, Merck, and AbbVie, so there's potential -- as long as the FDA doesn't take it away -- for RG-101 to treat those patients. While a combination of RG-101 and GlaxoSmithKline's GSK2878175 might be able to compete with the current cocktails from Gilead, Merck, and AbbVie if it had similar efficacy, the potential for jaundice could cause doctors to shy away from the drugs, especially since the solution for treating many side effects is to stop treatment, but that isn't really possible for long-acting drugs that are only dosed once. Gilead Sciences (NASDAQ: GILD) , Merck (NYSE: MRK) , and AbbVie (NYSE: ABBV) all have already-approved cocktails that are capable of curing most patients. |
26532.0 | 2016-06-27 00:00:00 UTC | Better Buy: Merck & Co. Inc. vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy-merck-co-inc-vs-abbvie-2016-06-27 | nan | nan | Image source: Getty Images.
The pharmaceutical sector has been an extremely lucrative industry over time, allowing investors to profit from the development of treatments that have improved the quality of life for billions of people across the globe. Among pharmaceutical companies, Merck & Co. (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the most successful and profitable over the long run, and their share prices have posted impressive long-term returns for shareholders. More recently, though, the pharmaceutical sector has come under fire from lawmakers and consumer advocates who argue that the balance between medical need and corporate profits has swung too far away from what the general public wants. As a result, many stocks in the industry have pulled back, and value investors want to know which of the Big Pharma stocks could be the most attractive right now. Let's look more closely at Merck and AbbVie using a range of common metrics to evaluate their merits.
Stock performance and valuation
The pharmaceutical industry hasn't been among the top performers lately, and both Merck and AbbVie have lost ground over the past year. Merck's decline has been relatively modest, producing a 2% loss on a total return basis since June 2015. AbbVie has done worse, falling 14% over the same timeframe.
Ordinarily, when one stock falls more than another, you can expect that its shares will become a better value. A quick look at earnings on a trailing basis confirms that idea in the case of Merck and AbbVie. After its recent decline, AbbVie now trades at 18 times trailing earnings, and although that's not particularly cheap compared to the broader market, it's not unreasonably high. By contrast, Merck trades at a trailing earnings multiple of 34, almost double what AbbVie fetches right now.
MRK Total Return Price data by YCharts
When you look to incorporate expectations about future earnings into the equation, the gap narrows, but AbbVie still retains a cheaper valuation. Based on forward estimates, Merck's stock price is about 15 times expected future earnings. AbbVie, on the other hand, trades at a forward earnings multiple of less than 11. Even though AbbVie has seen its stock lag recently, its earnings multiples make it a somewhat more compelling investment than Merck solely on a valuation basis.
Dividends
One of the attractive elements of the pharmaceutical industry is that it tends to produce solid cash flow, and the companies in the industry tend to return much of that cash flow to investors in the form of dividends. Both AbbVie and Merck have very attractive dividends right now. Merck's stock currently yields 3.3%, while the dividend yield for AbbVie is even higher at 3.8%.
Yet even though current yield is valuable, it's even more important for a stock to demonstrate that it can give its shareholders even larger dividend payments in the future. AbbVie has the prestigious status of being a Dividend Aristocrat, having inherited the long history of more than 40 years of annual dividend increases from former parent Abbott Labs . Since becoming a separately traded company in 2013, AbbVie has boosted its dividend four times and now pays a more than 40% higher dividend than it did three years ago.
Merck hasn't been as consistent with its dividend increases, and the boosts it has made haven't been as large. For instance, Merck went from 2004 to 2011 without increasing its dividend at all, using capital instead to do stock buybacks and to finance acquisitions. Since 2011, the company has made annual dividend increases, but they've been minimal at just a penny per share each year. Based on these factors, AbbVie looks better from a dividend standpoint than Merck.
MRK Dividend data by YCharts
Growth prospects and risk
In pharma, growth comes from new products, and the risk is always that a promising treatment won't survive the rigorous clinical trial process. Both Merck and AbbVie have their share of strong potential and sizable risk. In Merck's most recent quarter, for instance, the company saw sales of its key diabetes drug franchise Januvia and Janumet rise 1%, reversing course from a sales drop in the previous quarter. Cancer treatment Keytruda also pushed higher, and declines in past blockbuster Singulair were limited to just 3%, stabilizing from bigger losses in the past. However, the recent launch of hepatitis C treatment Zepatier hasn't gone nearly as well as expected, with Merck reporting just $50 million in the once-daily oral medication in the first quarter. Even with the disappointing launch, though, Merck boosted its guidance for revenue and earnings for the full year.
For AbbVie, the Humira franchise has been a key element of its long-term success, and it has also been a substantial source of risk as its initial patent expiration loomed. By taking steps to keep potential biosimilar treatments of the market for more than five years into the future, AbbVie has worked hard to protect the profit potential from Humira. However, other possible weak spots exist in AbbVie's list of offerings, including hepatitis C drug Viekira and leukemia and lymphoma treatment Imbruvica. Moreover, from a financial standpoint, AbbVie has aggressively turned to acquisitions to bolster its list of approved products and pipeline of future drugs, and that has put nearly $32 billion in debt on its balance sheet. That's more than Merck has even though AbbVie is much smaller, and that leverage arguably puts AbbVie's risk profile somewhat higher than Merck's.
From an overall standpoint, both Merck and AbbVie have pros and cons. AbbVie's higher dividends and cheaper valuation reflect the higher risk involved, while Merck offers considerable income opportunities with growth prospects as well despite its higher valuation. For those with a risk tolerance that can support it, going with AbbVie looks like the slightly better buy under current conditions.
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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 .
Dan Caplinger 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. | MRK Total Return Price data by YCharts When you look to incorporate expectations about future earnings into the equation, the gap narrows, but AbbVie still retains a cheaper valuation. Moreover, from a financial standpoint, AbbVie has aggressively turned to acquisitions to bolster its list of approved products and pipeline of future drugs, and that has put nearly $32 billion in debt on its balance sheet. Among pharmaceutical companies, Merck & Co. (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the most successful and profitable over the long run, and their share prices have posted impressive long-term returns for shareholders. | AbbVie's higher dividends and cheaper valuation reflect the higher risk involved, while Merck offers considerable income opportunities with growth prospects as well despite its higher valuation. Among pharmaceutical companies, Merck & Co. (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the most successful and profitable over the long run, and their share prices have posted impressive long-term returns for shareholders. Let's look more closely at Merck and AbbVie using a range of common metrics to evaluate their merits. | Merck's stock currently yields 3.3%, while the dividend yield for AbbVie is even higher at 3.8%. That's more than Merck has even though AbbVie is much smaller, and that leverage arguably puts AbbVie's risk profile somewhat higher than Merck's. AbbVie's higher dividends and cheaper valuation reflect the higher risk involved, while Merck offers considerable income opportunities with growth prospects as well despite its higher valuation. | Since becoming a separately traded company in 2013, AbbVie has boosted its dividend four times and now pays a more than 40% higher dividend than it did three years ago. Among pharmaceutical companies, Merck & Co. (NYSE: MRK) and AbbVie (NYSE: ABBV) have been two of the most successful and profitable over the long run, and their share prices have posted impressive long-term returns for shareholders. Let's look more closely at Merck and AbbVie using a range of common metrics to evaluate their merits. |
26533.0 | 2016-06-24 00:00:00 UTC | 3 Dividend Aristocrats to Buy at Bargain-Bin Prices | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-at-bargain-bin-prices-2016-06-24 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dividend Aristocrats Index contains high quality dividend growth stocks in the S&P 500 that have managed to boost their dividend payouts for at least 25 consecutive years.
Source: Simon Cunningham via Flickr
Rising dividends are often the sign of a profitable and healthy firm. Only about 10% of S&P 500 member companies are dividend aristocrats and possess the attractive qualities needed to lift dividends for such a long period.
Not surprisingly, the Dividend Aristocrats Index has outperformed the S&P 500 by approximately 3% per year over the last decade.
7 Stocks to Buy Now for the Millennial Takeover
The following are three stocks in the Dividend Aristocrats Index that are down at least 10% over the last year and potentially offer some value today.
Dividend Aristocrats to Buy Now: Target Corporation (TGT)
Source: Mike Mozart via Flickr (Modified)
Dividend Yield: 3.5%
Target Corporation ( TGT ) opened its first discount store in 1962 and it has grown to have nearly 1,800 locations across the country.
The company's stores sell a wide range of everyday essentials and fashionable merchandise at discounted prices. Wal-Mart Stores, Inc. ( WMT ) is the only general merchandise retailer that is larger than Target in America.
As one of biggest brick-and-mortar retailers in the world, Target has meaningful purchasing power over its suppliers, allowing it to offer higher quality merchandise at lower prices than its smaller rivals.
Most of its products are in non-discretionary categories, making the company a relatively strong performer during recessions - Target's sales grew each year during the financial crisis.
Target has increased its dividend for nearly 50 consecutive years and is set to join the Dividend Kings list within the next two years.
The company recently increased its dividend by 7% and has grown its dividend by approximately 20% per year over its last 10 fiscal years.
With a dividend payout ratio near 40%, the company's dividend should have plenty of room for continued growth.
While the retail environment has been challenging for most brick-and-mortar players this year, Target's stores should continue generating excellent free cash flow for many years to come.
Shares of Target trade at a forward price-to-earnings ratio of 12.25 and offer a dividend yield of 3.5%, which is meaningfully higher than its five-year average dividend yield of 2.5%.
Dividend Aristocrats to Buy Now: Archer Daniels Midland Company (ADM)
Dividend Yield: 2.8%
Archer Daniels Midland Company ( ADM ) is a major player in the agricultural services industry.
The company primarily processes crops such as corn and oilseeds and turns them into products used in food, animal feed, chemical and energy markets.
Archer Daniels Midland's stock has been hit by weakness in crop and oil prices over the last year, but the company continues to enjoy high barriers to entry.
The company's core operations are very capital intensive, as procuring, storing, processing and selling agricultural commodities requires a massive supply chain.
Furthermore, Archer Daniels Midland has the biggest grain terminal and shipping network in America and it maintains hundreds of processing plants and storage facilities located around the globe.
New entrants and smaller competitors simply cannot afford to replicate the company's logistical network and know-how. It's no wonder why Archer Daniels Midland has been in business for more than 100 years.
The company's most important financial ratios are also in good shape, which has made its dividend payment extremely reliable. Archer Daniels Midland has raised its dividend for more than 40 consecutive years, while recording 13% compound annual growth in its dividend over the last decade. This is certainly a blue-chip dividend stock .
Despite the macro headwinds weighing on the company, Archer Daniels Midland's payout ratio sits near 45% over the trailing 12-months. This is a very healthy payout ratio that provides a good margin of safety and room for continued dividend growth.
7 Stocks You Should Dump From Your Retirement Portfolio
Shares of Archer Daniels Midland trade at a forward price-to-earnings ratio of 13.9 and offer a dividend yield of 2.8%, which is higher than their five-year average dividend yield of 2.1%.
Dividend Aristocrats to Buy Now: Abbott Laboratories (ABT)
Source: Images Money via Flickr (Modified)
Dividend Yield: 2.7%
AbbottLaboratories ' ( ABT ) roots can be traced back more than 125 years ago. The company decided to spin off its pharmaceuticals business Abbvie Inc ( ABBV ) in early 2013, leaving it with four diversified healthcare segments - nutritionals, generic drugs, medical devices and diagnostics.
Approximately half of Abbott's sales are direct to consumers and patients, and the business sells a large portfolio of more than 10,000 products. Abbott's geographical reach is also impressive with about 50% of sales generated in emerging markets.
The stock has been weak because of foreign currency headwinds and news in April that the company planned to acquire St. Jude Medical, Inc. ( STJ ) in a $25 billion deal. Many growth investors likely sold out of Abbott on news of the acquisition, which will give Abbott control over more of a turnaround type of situation.
Regardless, the company's competitive advantages remain intact, in my view.
With more than a century of operating history, Abbott has acquired leading market share positions for many of its products and has a number of well-known brands.
Many of the company's markets are also highly regulated, protected by patents, require substantial research and development spending and demand global distribution networks. All of these factors have resulted in reliable dividend payments.
Abbott has paid uninterrupted dividends since 1924 and increased its dividend for more than 40 consecutive years.
Following its spinoff of AbbVie in 2013, Abbott paid a quarterly dividend of 14 cents per share. Management raised the dividend by 57% in 2014 and boosted the company's payout by another 9% in 2015.
With a payout ratio near 40% and numerous opportunities for long-term earnings growth, Abbott seems likely to continue raising its dividend at a high-single digit rate going forward.
Shares of Abbott trade at a forward price-to-earnings ratio of 15.4 and offer a dividend yield of 2.7%, which is somewhat higher than their five-year average dividend yield of 2.4%.
As of this writing, Simply Safe Dividends was long ABT in its Long-term Dividend Growth portfolio .
The post 3 Dividend Aristocrats to Buy at Bargain-Bin Prices 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 company decided to spin off its pharmaceuticals business Abbvie Inc ( ABBV ) in early 2013, leaving it with four diversified healthcare segments - nutritionals, generic drugs, medical devices and diagnostics. Following its spinoff of AbbVie in 2013, Abbott paid a quarterly dividend of 14 cents per share. As one of biggest brick-and-mortar retailers in the world, Target has meaningful purchasing power over its suppliers, allowing it to offer higher quality merchandise at lower prices than its smaller rivals. | The company decided to spin off its pharmaceuticals business Abbvie Inc ( ABBV ) in early 2013, leaving it with four diversified healthcare segments - nutritionals, generic drugs, medical devices and diagnostics. Following its spinoff of AbbVie in 2013, Abbott paid a quarterly dividend of 14 cents per share. Dividend Aristocrats to Buy Now: Target Corporation (TGT) Source: Mike Mozart via Flickr (Modified) Dividend Yield: 3.5% Target Corporation ( TGT ) opened its first discount store in 1962 and it has grown to have nearly 1,800 locations across the country. | The company decided to spin off its pharmaceuticals business Abbvie Inc ( ABBV ) in early 2013, leaving it with four diversified healthcare segments - nutritionals, generic drugs, medical devices and diagnostics. Following its spinoff of AbbVie in 2013, Abbott paid a quarterly dividend of 14 cents per share. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dividend Aristocrats Index contains high quality dividend growth stocks in the S&P 500 that have managed to boost their dividend payouts for at least 25 consecutive years. | The company decided to spin off its pharmaceuticals business Abbvie Inc ( ABBV ) in early 2013, leaving it with four diversified healthcare segments - nutritionals, generic drugs, medical devices and diagnostics. Following its spinoff of AbbVie in 2013, Abbott paid a quarterly dividend of 14 cents per share. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dividend Aristocrats Index contains high quality dividend growth stocks in the S&P 500 that have managed to boost their dividend payouts for at least 25 consecutive years. |
26534.0 | 2016-06-23 00:00:00 UTC | Noteworthy ETF Outflows: VUG, V, ABBV, SBUX | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows-vug-v-abbv-sbux-2016-06-23 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $499.2 million dollar outflow -- that's a 2.4% decrease week over week (from 196,997,408 to 192,322,823). Among the largest underlying components of VUG, in trading today Visa Inc (Symbol: V) is up about 0.7%, AbbVie Inc. (Symbol: ABBV) is up about 1%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.7%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average:
Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $111.92 as the 52 week high point - that compares with a last trade of $107.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VUG, in trading today Visa Inc (Symbol: V) is up about 0.7%, AbbVie Inc. (Symbol: ABBV) is up about 1%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.7%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $111.92 as the 52 week high point - that compares with a last trade of $107.52. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of VUG, in trading today Visa Inc (Symbol: V) is up about 0.7%, AbbVie Inc. (Symbol: ABBV) is up about 1%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.7%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $111.92 as the 52 week high point - that compares with a last trade of $107.52. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of VUG, in trading today Visa Inc (Symbol: V) is up about 0.7%, AbbVie Inc. (Symbol: ABBV) is up about 1%, and Starbucks Corp. (Symbol: SBUX) 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 Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $499.2 million dollar outflow -- that's a 2.4% decrease week over week (from 196,997,408 to 192,322,823). For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $111.92 as the 52 week high point - that compares with a last trade of $107.52. | Among the largest underlying components of VUG, in trading today Visa Inc (Symbol: V) is up about 0.7%, AbbVie Inc. (Symbol: ABBV) is up about 1%, and Starbucks Corp. (Symbol: SBUX) is higher by about 0.7%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $92.47 per share, with $111.92 as the 52 week high point - that compares with a last trade of $107.52. 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). |
26535.0 | 2016-06-21 00:00:00 UTC | 7 Pharmaceutical Stocks With Dividends Yielding More Than 3% | ABBV | https://www.nasdaq.com/articles/7-pharmaceutical-stocks-dividends-yielding-more-3-2016-06-21 | nan | nan | Image credit: Simon Cunningham on Flickr.
Many income-focused investors naturally gravitate toward stocks that offer up the highest dividend yield. For healthcare investors, that typically means choosing from a list of big pharmaceutical stocks, since large-cap drug companies tend to offer some of the highest yields in the sector. However, investors who base their investing decision solely on a company's dividend yield might wind up making a poor decision. After all, a high yield is one way that the market signals that a company is in danger of reducing or eliminating its quarterly payout.
To see this principle in action, let's take a look at seven pharmaceutical stocks with market caps of at least $2 billion and rank them by their current dividend yield. Doing so produces a list that looks like this:
Data source: Finviz.
If the only metric that you used to make investment decisions was the dividend yield, then you would probably conclude that AstraZeneca (NYSE: AZN) and GlaxoSmithKline PLC (NYSE: GSK) are the best buys from this group . After all, both of those companies offer dividend yields of more than 5%, which is more than double that of the S&P 500 index.
However, investing wisely is rarely about trying to maximize a single metric, and that's especially true with the dividend yield. There are plenty of other factors you need to consider before you buy shares in any company, such as valuation, growth prospects, and risk.
To drive that last point home, let's have another look at that same list of companies, but with a small twist. This time around, I'll add in two simple valuation metrics and what kind of profit growth analysts are expecting from the company over the next five years.
Here's what that updated table looks like:
Data source: Finviz.
As you can see, adding in just a few other metrics starts to give potential investors a more complete picture. Yes, AstraZeneca and GlaxoSmithKline offer up the highest dividend yields from the group, but they also have the worst estimated growth prospects . That's a big reason why the markets are shunning those stocks, which has pushed up their dividend yields.
Pharmaceutical stocks I'd suggest avoiding
GlaxoSmithKline has been struggling recently because one of its best-selling drugs, Advair, has seen all of its key patents expire. GlaxoSmithKline has been working on breathing new life into its respiratory franchise with the release of Breo Ellipta and Anoro Ellipta, but sales of each struggled out of the gate. Things have picked up recently, but the company is fighting an uphill battle as it tries to replace the lost revenue from Advair. That's why the markets are not exactly predicting a rosy future for this company's bottom line over the next few years, which I think makes this one a stock to avoid .
The story with AstraZeneca is quite similar. Patent expirations have taken a major toll on the company's top line as sales have been in decline since peaking in 2010. The future doesn't look any better, because it lost patent protection on Nexium last year, and it's slated to lose patent protection on another key drug, Crestor, later this year. That's a big reason why investors have pushed this company's yield up so high -- because profits are expected to head in the wrong direction for several more years. And it's reason enough for me to want to avoid this stock.
In fact, I'd suggest that investors should avoid any drugmaker from this list that is not going to grow its bottom line by at least 5% over the coming years. Why bother investing in slow-growth stocks if there are better opportunities out there with similar valuation multiples? That immediately removes AstraZeneca, GlaxoSmithKline, Novartis , and Merck & Co. from our list of stocks to consider.
Image source: Getty Images.
That leaves us with three potential investable companies: Sanofi (NYSE: SNY) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) . Let's take a closer look at each to see if we can figure out if any of them are worth buying.
Sanofi is a questionable company to invest in right now. The company has been plagued with leadership issues and has made a few high-profile bad bets . That's a big reason why its stock has been stuck in the mud for years and why it remains in turnaround mode.
However, its near-term future looks questionable to me since its cash-cow diabetes drug Lantus is facing some serious challenges . To help combat the potential sales decline of Lantus, Sanofi expects to launch six new major drugs between now and 2020. That's exciting, but it also represents a real risk that the launches may not go according to plan, which could put its long-term growth targets in jeopardy. In addition, the company is planning on using layoffs to help it reach its profit targets, which I find uninspiring. That makes me want to stay away from this company's stock for the time being.
These two drug companies are worth buying
The metrics on the table above suggest that AbbVie's stock could be a smart choice. Not only does it offer up a yield of 3.74%, but analysts are also projecting profit growth of more than 16% over the next five years. That's a compelling combination, so what does AbbVie have going for it that's allowing it to grow so fast?
The answer there is Humira, its best-selling anti-inflammation drug that is approved to treat a wide range of indications. AbbVie sold more than $14 billion worth of Humira last year, which was up a huge 19% over the prior year when you adjust for currency fluctuations. AbbVie's management team believes that Humira will continue to grow quickly over the coming years, and when you add in the contributions of its other fast-growing drugs -- like its cancer drug, Imbruvica, and its hepatitis C cure, Viekira Pak -- this company's growth prospects look bright. That's why management has stuck its neck out and projected double-digit rates between now and 2020. If true, that makes AbbVie's stock a buy in my book, especially with shares trading around 11 times next year's earnings.
Finally, let's look at Pfizer. A few years ago Pfizer was the poster child for patent risk. Sales plunged in the wake of it losing patent protection on Lipitor, its blockbuster cholesterol-busting drug. However, that loss forced the company to undergo a massive restructuring, which is now starting to pay off.
Pfizer is now positioned for strong growth over the coming years, thanks in large part to three big trends. First, it's going to be a major player in the shift toward biologic drugs thanks to its $17 billion acquisition of Hospira last year. Second, its pneumococcal vaccine, Prevnar 13, has become a cash cow, and Europe offers strong growth prospects. Third, its recently launched best cancer drug, Ibrance, is already on pace for megablockbuster status. Add in a solid pipeline and I think that the company's forward price-to-earnings ratio of only 13 makes this stock a buy.
There's more to healthcare investing than just a big dividend yield
As you can see, it's well worth the time to do a bit more research on a stock before you hit the "Buy" button. I'm a big fan of high dividend yields , but only when the companies behind the stocks also offers up solid long-term growth prospects. If they don't, then you are probably better off staying far away.
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Brian Feroldi has no position in any stocks mentioned. Like this article? Follow him on Twitter where he goes by the handle@Longtermmind-set or connect with him onLinkedIn to 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. | That leaves us with three potential investable companies: Sanofi (NYSE: SNY) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) . These two drug companies are worth buying The metrics on the table above suggest that AbbVie's stock could be a smart choice. That's a compelling combination, so what does AbbVie have going for it that's allowing it to grow so fast? | That leaves us with three potential investable companies: Sanofi (NYSE: SNY) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) . These two drug companies are worth buying The metrics on the table above suggest that AbbVie's stock could be a smart choice. That's a compelling combination, so what does AbbVie have going for it that's allowing it to grow so fast? | AbbVie's management team believes that Humira will continue to grow quickly over the coming years, and when you add in the contributions of its other fast-growing drugs -- like its cancer drug, Imbruvica, and its hepatitis C cure, Viekira Pak -- this company's growth prospects look bright. That leaves us with three potential investable companies: Sanofi (NYSE: SNY) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) . These two drug companies are worth buying The metrics on the table above suggest that AbbVie's stock could be a smart choice. | That leaves us with three potential investable companies: Sanofi (NYSE: SNY) , AbbVie (NYSE: ABBV) , and Pfizer (NYSE: PFE) . These two drug companies are worth buying The metrics on the table above suggest that AbbVie's stock could be a smart choice. That's a compelling combination, so what does AbbVie have going for it that's allowing it to grow so fast? |
26536.0 | 2016-06-19 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-johnson-johnson-2016-06-19 | nan | nan | We know AbbVie's main Humira patents, those related to the compound itself, are expected to expire this December in the U.S., and in October 2018 in the EU. Complicating matters are a stack of patents related to the drug in the U.S. extending out to 2022 that make estimating the timing and severity of biosimilar competition for the drug guesswork at best.
AbbVie's more recent shot on goal, an attempt to challenge Gilead Sciences in the hepatitis C virus space with the launch of Viekira Pak, has stalled. Last year, sales of the drug reached $1.64 billion, and first-quarter sales suggest an annualized run rate of about $1.66 billion.
Its next largest growth driver, Imbruvica, is coincidentally partnered with J&J, and the two share profits equally. Toward the end of the first quarter, the blood-cancer pill earned approval for first-line solo treatment of the most common form of leukemia. As this large group of patients' first chemotherapy-free option, it could become one of the best-selling cancer therapies of its day, with peak annual sales over $5 billion.
The big difference here is J&J realized this drug's potential back in 2011 and paid its discoverer, Pharmacyclics, just $150 million upfront for rights to its potential sales. Last year, AbbVie shelled out $21 billion for Pharmacyclics and its share of Imbruvica sales.
In the years ahead, J&J's recently approved multiple myeloma therapy, Darzalex, might rack up annual sales of $5 billion as well. This is another result of an early stage collaboration deal, this time with Denmark's Genmab.
While several of J&J's early collaborations have been incredibly successful, AbbVie's most recent acquisition has the industry scratching its head in wonder. It shelled out $5.8 billion for privately held Stemcentryx and its clinical-stage cancer hopeful, Rova-T, which failed to impress at a recent scientific conference.
And the winner is...
AbbVie's recent splurges and subsequent $29.5 billion in long-term debt are concerning and should be watched closely. Its recent clinical-stage investment track record doesn't hold a candle to J&J's, either.
The good news is that AbbVie doesn't have a lumbering medical-device segment weighing it down. As much as I am a fan of Johnson & Johnson, when you consider recent valuation and dividend factors, AbbVie ultimately looks like the better buy right now.
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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 more recent shot on goal, an attempt to challenge Gilead Sciences in the hepatitis C virus space with the launch of Viekira Pak, has stalled. We know AbbVie's main Humira patents, those related to the compound itself, are expected to expire this December in the U.S., and in October 2018 in the EU. Last year, AbbVie shelled out $21 billion for Pharmacyclics and its share of Imbruvica sales. | Last year, AbbVie shelled out $21 billion for Pharmacyclics and its share of Imbruvica sales. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. We know AbbVie's main Humira patents, those related to the compound itself, are expected to expire this December in the U.S., and in October 2018 in the EU. | Last year, AbbVie shelled out $21 billion for Pharmacyclics and its share of Imbruvica sales. We know AbbVie's main Humira patents, those related to the compound itself, are expected to expire this December in the U.S., and in October 2018 in the EU. AbbVie's more recent shot on goal, an attempt to challenge Gilead Sciences in the hepatitis C virus space with the launch of Viekira Pak, has stalled. | We know AbbVie's main Humira patents, those related to the compound itself, are expected to expire this December in the U.S., and in October 2018 in the EU. Last year, AbbVie shelled out $21 billion for Pharmacyclics and its share of Imbruvica sales. AbbVie's more recent shot on goal, an attempt to challenge Gilead Sciences in the hepatitis C virus space with the launch of Viekira Pak, has stalled. |
26537.0 | 2016-06-16 00:00:00 UTC | Daily Dividend Report: ABBV, GPT, CMN, OXM, DEL | ABBV | https://www.nasdaq.com/articles/daily-dividend-report-abbv-gpt-cmn-oxm-del-2016-06-16 | nan | nan | AbbVie ( ABBV ) declared a quarterly cash dividend of $0.57 per share. The cash dividend is payable Aug. 15, 2016 to stockholders of record at the close of business on July 15, 2016.
Gramercy Property Trust ( GPT ) declared a second quarter 2016 dividend on the Company's common shares in the amount of $0.11 per share, payable on July 15, 2016 to common shareholders of record as of the close of business on June 30, 2016.
Cantel Medical Corp. ( CMN ) authorized a regular semiannual cash dividend of $0.06 per outstanding share of the Company's Common Stock. The dividend is payable on July 29, 2016 to shareholders of record at the close of business on July 15, 2016.
Oxford Industries ( OXM ) declared a cash dividend of $0.27 per share on common stock. The dividend is payable on July 29, 2016 to shareholders of record as of the close of business on July 15, 2016.
Deltic Timber Corporation ( DEL ) announced a quarterly dividend of $0.100 per share will be paid to stockholders of record as of September 1, 2016, with a payment date of September 15, 2016.
VIDEO: Daily Dividend Report: ABBV, GPT, CMN, OXM, DEL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) declared a quarterly cash dividend of $0.57 per share. VIDEO: Daily Dividend Report: ABBV, GPT, CMN, OXM, DEL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Gramercy Property Trust ( GPT ) declared a second quarter 2016 dividend on the Company's common shares in the amount of $0.11 per share, payable on July 15, 2016 to common shareholders of record as of the close of business on June 30, 2016. | VIDEO: Daily Dividend Report: ABBV, GPT, CMN, OXM, DEL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie ( ABBV ) declared a quarterly cash dividend of $0.57 per share. Gramercy Property Trust ( GPT ) declared a second quarter 2016 dividend on the Company's common shares in the amount of $0.11 per share, payable on July 15, 2016 to common shareholders of record as of the close of business on June 30, 2016. | VIDEO: Daily Dividend Report: ABBV, GPT, CMN, OXM, DEL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie ( ABBV ) declared a quarterly cash dividend of $0.57 per share. Gramercy Property Trust ( GPT ) declared a second quarter 2016 dividend on the Company's common shares in the amount of $0.11 per share, payable on July 15, 2016 to common shareholders of record as of the close of business on June 30, 2016. | AbbVie ( ABBV ) declared a quarterly cash dividend of $0.57 per share. VIDEO: Daily Dividend Report: ABBV, GPT, CMN, OXM, DEL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The cash dividend is payable Aug. 15, 2016 to stockholders of record at the close of business on July 15, 2016. |
26538.0 | 2016-06-15 00:00:00 UTC | Infinity (INFI) at 52-Week Low on Disappointing Duvelisib Data | ABBV | https://www.nasdaq.com/articles/infinity-infi-at-52-week-low-on-disappointing-duvelisib-data-2016-06-15 | nan | nan | Infinity Pharmaceuticals, Inc. 's INFI shares plunged 69.2% to hit a new 52-week low, after the company announced unfavorable data from the phase II DYNAMO study on its lead candidate, duvelisib, for the treatment of refractory indolent non-Hodgkin lymphoma (iNHL).
The DYNAMO study was evaluating the safety and efficacy of duvelisib (25 mg), administered twice daily as monotherapy, in patients with follicular lymphoma (FL), small lymphocytic lymphoma (SLL) or marginal zone lymphoma whose disease has progressed and who are refractory to Rituxan (rituximab) and to either chemotherapy or radioimmunotherapy.
Data revealed that duvelisib demonstrated an overall response rate of 46%, all partial responses and below expectations. Side effects were, however, reportedly reversible and clinically manageable.
INFINITY PHARMA Price
INFINITY PHARMA Price | INFINITY PHARMA Quote
Infinity Pharma said that it is planing to seek feedback from the FDA to determine the path forward with respect to duvelisib in the iNHL indication.
We note that Infinity Pharma has a collaboration and license agreement with AbbVie Inc. ABBV for the development and commercialization of duvelisib in oncology indications. Currently, the companies are in discussions to explore the next steps for the parties' collaboration. As a result of the pending resolution, the companies have decided to halt a phase Ib/II study on duvelisib, which was evaluating the candidate in combination with Venclexta (venetoclax) for the treatment of relapsed or refractory indolent or aggressive NHL, chronic lymphocytic leukemia (CLL), or SLL.
Meanwhile, Infinity Pharma said that it will initiate a restructuring process, under which it has decided to shut down its discovery research organization. The move is estimated to impact 21% or 46 members, of the company's workforce.
In addition, Infinity Pharma stated that its previously announced financial guidance for 2016 is no longer applicable. The company plans to provide an updated guidance, following the resolution of its strategic activities.
Our Take
The results of the DYNAMO study are highly disappointing as the company is heavily dependent on duvelisib for growth. Further, we remain concerned on the Infinity Pharma's future alliance with AbbVie.
Note that Infinity Pharma is not new to pipeline setbacks. Earlier, the company had to discontinue the development of duvelisib in the rheumatoid arthritis indication after the candidate failed to meet the primary endpoint in the phase II ASPIRA study.
Currently, duvelisib is being evaluated for the treatment of previously treated FL (DYNAMO+R - phase III) and relapsed/refractory CLL (DUO - phase III).
Going ahead, we expect investors to focus on further details related to the development of duvelisib in other indications.
Infinity Pharma currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company BMY and Pfizer Inc. PFE , both sporting a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that Infinity Pharma has a collaboration and license agreement with AbbVie Inc. ABBV for the development and commercialization of duvelisib in oncology indications. Further, we remain concerned on the Infinity Pharma's future alliance with AbbVie. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Infinity Pharma has a collaboration and license agreement with AbbVie Inc. ABBV for the development and commercialization of duvelisib in oncology indications. Further, we remain concerned on the Infinity Pharma's future alliance with AbbVie. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Infinity Pharma has a collaboration and license agreement with AbbVie Inc. ABBV for the development and commercialization of duvelisib in oncology indications. Further, we remain concerned on the Infinity Pharma's future alliance with AbbVie. | We note that Infinity Pharma has a collaboration and license agreement with AbbVie Inc. ABBV for the development and commercialization of duvelisib in oncology indications. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Further, we remain concerned on the Infinity Pharma's future alliance with AbbVie. |
26539.0 | 2016-06-15 00:00:00 UTC | OEF, V, MO, ABBV: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/oef-v-mo-abbv-large-outflows-detected-etf-2016-06-15 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares S&P 100 ETF (Symbol: OEF) where we have detected an approximate $37.0 million dollar outflow -- that's a 0.9% decrease week over week (from 46,800,000 to 46,400,000). Among the largest underlying components of OEF, in trading today Visa Inc (Symbol: V) is off about 0.2%, Altria Group Inc (Symbol: MO) is down about 0.1%, and AbbVie Inc. (Symbol: ABBV) is up by about 1.6%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average:
Looking at the chart above, OEF's low point in its 52 week range is $71.52 per share, with $94.97 as the 52 week high point - that compares with a last trade of $92.59. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of OEF, in trading today Visa Inc (Symbol: V) is off about 0.2%, Altria Group Inc (Symbol: MO) is down about 0.1%, and AbbVie Inc. (Symbol: ABBV) is up by about 1.6%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $71.52 per share, with $94.97 as the 52 week high point - that compares with a last trade of $92.59. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of OEF, in trading today Visa Inc (Symbol: V) is off about 0.2%, Altria Group Inc (Symbol: MO) is down about 0.1%, and AbbVie Inc. (Symbol: ABBV) is up by about 1.6%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $71.52 per share, with $94.97 as the 52 week high point - that compares with a last trade of $92.59. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of OEF, in trading today Visa Inc (Symbol: V) is off about 0.2%, Altria Group Inc (Symbol: MO) is down about 0.1%, and AbbVie Inc. (Symbol: ABBV) is up by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares S&P 100 ETF (Symbol: OEF) where we have detected an approximate $37.0 million dollar outflow -- that's a 0.9% decrease week over week (from 46,800,000 to 46,400,000). For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $71.52 per share, with $94.97 as the 52 week high point - that compares with a last trade of $92.59. | Among the largest underlying components of OEF, in trading today Visa Inc (Symbol: V) is off about 0.2%, Altria Group Inc (Symbol: MO) is down about 0.1%, and AbbVie Inc. (Symbol: ABBV) is up by about 1.6%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $71.52 per share, with $94.97 as the 52 week high point - that compares with a last trade of $92.59. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). |
26540.0 | 2016-06-14 00:00:00 UTC | Why Infinity Pharmaceuticals Inc. Is Being Obliterated Today | ABBV | https://www.nasdaq.com/articles/why-infinity-pharmaceuticals-inc-being-obliterated-today-2016-06-14 | nan | nan | What: Shareholders of the clinical-stage biotech InfinityPharmaceuticals (NASDAQ: INFI) are having a very rough day. The stock has collapsed, shedding more than 70% of its value as of 11:30 a.m. EDT today after management reported disappointing top-line results from an important clinical study.
So what: Infinity Pharmaceuticals released data from its phase 2 monotherapy study of duvelisib, the company's investigational compound being researched as a possible treatment for non-Hodgkin lymphoma. This 129-patient study was being run in conjunction with its collaboration partner, AbbVie (NYSE: ABBV) .
The results showed that duvelisib was able to meet its primary endpoint, demonstrating an overall response rate of 46%. Unfortunately, that response rate was far lower than the two companies were looking for and is an inferior result when compared to currently available treatment options. That suggests that even if duvelisib does manage to find its way to market, it could have a very hard time competing against other therapies.
As a result, Infinity has announced that it is in "ongoing, collaborative discussions" with AbbVie to explore what's next regarding their collaboration. While those talks are ongoing, AbbVie and Infinity have agreed to put another AbbVie-sponsored phase 1b/2 study of duvelisib on hold.
To help preserve the company's financial position, Infinity Pharmaceutical's management team has announced that the will be closing down its discovery research organization, resulting in the loss of roughly 21% of its workforce.
This is how Infinity CEO Adeline Perkins explained the decision:
Now what: Given that the majority of this company's value was tied to the future success of duvelisib, it's hard to see how Infinity will be able to recover from this crushing blow. While it did report more than $192 million in cash on its books as of March 31, it's currently burning through about $40 million per quarter. Even with the cost savings from the workforce reduction, its cash pile is certain to dwindle at a rapid rate from here, and with its share price down so much, issuing new shares to raise capital isn't likely to be a viable option.
Infinity Pharmaceuticals was a risky investment before this announcement was made, and there are now serious questions about its long-term viability. I'd advise any investor who is thinking about bargain hunting on this beaten-down stock to look elsewhere for investment opportunities.
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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 129-patient study was being run in conjunction with its collaboration partner, AbbVie (NYSE: ABBV) . As a result, Infinity has announced that it is in "ongoing, collaborative discussions" with AbbVie to explore what's next regarding their collaboration. While those talks are ongoing, AbbVie and Infinity have agreed to put another AbbVie-sponsored phase 1b/2 study of duvelisib on hold. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This 129-patient study was being run in conjunction with its collaboration partner, AbbVie (NYSE: ABBV) . As a result, Infinity has announced that it is in "ongoing, collaborative discussions" with AbbVie to explore what's next regarding their collaboration. | This 129-patient study was being run in conjunction with its collaboration partner, AbbVie (NYSE: ABBV) . As a result, Infinity has announced that it is in "ongoing, collaborative discussions" with AbbVie to explore what's next regarding their collaboration. While those talks are ongoing, AbbVie and Infinity have agreed to put another AbbVie-sponsored phase 1b/2 study of duvelisib on hold. | As a result, Infinity has announced that it is in "ongoing, collaborative discussions" with AbbVie to explore what's next regarding their collaboration. This 129-patient study was being run in conjunction with its collaboration partner, AbbVie (NYSE: ABBV) . While those talks are ongoing, AbbVie and Infinity have agreed to put another AbbVie-sponsored phase 1b/2 study of duvelisib on hold. |
26541.0 | 2016-06-14 00:00:00 UTC | Amgen's Biosimilar of AbbVie's Humira to Face FDA Panel | ABBV | https://www.nasdaq.com/articles/amgens-biosimilar-of-abbvies-humira-to-face-fda-panel-2016-06-14 | nan | nan | Amgen Inc.AMGN announced that the FDA's Arthritis Advisory Committee will review data supporting the company's biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira.
A final decision regarding the approval status of ABP 501 is expected by Sep 25, 2016. It is also under review in the EU.
Humira, an anti-TNF-α monoclonal antibody, is approved in many countries for the treatment of a wide range of inflammatory diseases. The drug recorded worldwide sales of $14 billion in 2015 and was one of the top-selling products in the U.S. in 2014.
Currently, Amgen has nine biosimilar candidates in its portfolio representing annual revenues of more than $3 billion. The company plans to launch its first biosimilar in 2017 followed by four others through 2019, subject to approval.
We note that Amgen itself is facing biosimilar competition in the U.S. Zarxio, the first FDA-approved biosimilar, was launched by Novartis AG's NVS generic arm, Sandoz, in Sep 2015. Zarxio is the biosimilar version of Amgen's blockbuster drug, Neupogen. A couple of key drugs from Amgen's portfolio - Neulasta and Enbrel - could also start facing biosimilar competition soon.
Notably, Sandoz's biosimilar version of Enbrel is expected to come up before the FDA's Arthritis Advisory Committee next month.
Considering that the market for biosimilars is highly lucrative, competition in this space is intensifying with pharmaceutical and biotech companies racing to develop the same.
Amgen is a Zacks Rank #3 (Hold) stock. Bristol-Myers Squibb Company BMY is a better-ranked stock in the health care sector, carrying a Zacks Rank #1 (Strong Buy).
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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 announced that the FDA's Arthritis Advisory Committee will review data supporting the company's biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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. Considering that the market for biosimilars is highly lucrative, competition in this space is intensifying with pharmaceutical and biotech companies racing to develop the same. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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 announced that the FDA's Arthritis Advisory Committee will review data supporting the company's biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira. We note that Amgen itself is facing biosimilar competition in the U.S. Zarxio, the first FDA-approved biosimilar, was launched by Novartis AG's NVS generic arm, Sandoz, in Sep 2015. | Amgen Inc.AMGN announced that the FDA's Arthritis Advisory Committee will review data supporting the company's biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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 note that Amgen itself is facing biosimilar competition in the U.S. Zarxio, the first FDA-approved biosimilar, was launched by Novartis AG's NVS generic arm, Sandoz, in Sep 2015. | Amgen Inc.AMGN announced that the FDA's Arthritis Advisory Committee will review data supporting the company's biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, Sandoz's biosimilar version of Enbrel is expected to come up before the FDA's Arthritis Advisory Committee next month. |
26542.0 | 2016-06-11 00:00:00 UTC | My Favorite Clinical-Stage Biotech Stocks to Buy | ABBV | https://www.nasdaq.com/articles/my-favorite-clinical-stage-biotech-stocks-buy-2016-06-11 | nan | nan | Image source: stockmonkeys.com , via Flickr .
Perhaps no industry faces tougher odds than biotechnology. Historically, 90% of drugs entering clinical trials have flopped, and failure rates in tough-to-treat indications, like cancer, have been even worse. But the reward that can come from investing in biotech stocks that overcome those odds can be significant. While there's no guarantee that these three clinical-stage biotech stocks will make the grade, I think each of these companies has a good shot; if I'm right, then investing in them could prove profit-friendly.
Galapagos NV
I'm a fan of investing in clinical-stage companies which are working with biotech companies that have "been there, done that," and Galapagos NV 's(NASDAQ: GLPG) collaborations with AbbVie Inc . (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) set Galapagos apart from many other young companies in this industry.
That's because AbbVie and Gilead Sciences have a history of focusing on de-risked research and development programs. While every biotech company has failures, these two Goliaths have proven that they know a thing or two about finding and developing top-selling medicines.
AbbVie is working with Galapagos on cystic fibrosis drugs, and recently, optimism about the potential creation of best-in-class combination therapies led to AbbVie doubling down on its collaboration.
Currently, there's no cure for the 80,000 patients with cystic fibrosis worldwide, and given that the average patient's lifespan is about half that of those without this disease, there's a tremendous unmet need for new treatment options.
By combining multiple drugs into one therapy, AbbVie and Galapagos believe they have a shot at overcoming mutations that prevent the transport of chloride across cell membranes in 90% of cystic fibrosis patients. Because ineffective chloride transport leads to organ damage, the two could reshape patient treatment if they succeed.
Human trials of their combination approach are expected to begin soon. While that means that research is in the uber-early stages where many drugs fail, it could be a good sign that AbbVie just bumped its milestone payments to Galapagos up to $600 million from $350 million, depending on the achievement of specific goals. Investors may also get insight into potential safety and efficacy of a future combination program in coming months, because data from trials of one of the drugs in their combination therapy -- GLPG 1837 -- is expected in the second half of the year.
While AbbVie's work with Galapagos is in the early stages, Gilead Sciences' collaboration with Galapagos is further along. In a deal that could potentially be worth up to $2.1 billion to Galapagos, Gilead Sciences signed on last December to usher Galapagos' JAK1 inhibitor, filgotinib, into registration-ready phase 3 trials. At the same time, Gilead Sciences also took a 15% equity stake in Galapagos, suggesting that Gilead Sciences is pretty confident that this drug will eventually pan out.
Phase 3 trials of filgotinib in rheumatoid arthritis and Crohn's disease will begin soon, and a phase 2/3 trial in ulcerative colitis is also on deck. Because these autoimmune diseases are multibillion-dollar indications, late-stage success could be needle-moving for Galapagos and its investors.
Image source: Juno Therapeutics.
Juno Therapeutics and Kite Pharma
CAR-T stocks were hot commodities in 2015, but shares cooled off earlier this year alongside a broader biotech industry sell-off. Interest in CAR-T developers is returning, however, ahead of key catalysts, and that may make this a good time to consider buying shares in Juno Therapeutics(NASDAQ: JUNO) and Kite Pharma(NASDAQ: KITE) . Both of these companies are working on CAR-T therapies that reengineer a patient's T-cells to better find, attach to, and destroy B-cell cancers.
The most advanced CAR-T therapy in Juno Therapeutics' pipeline is JCAR015, a drug that's being studied for use in acute lymphoblastic leukemia, or ALL. Juno Therapeutics is enrolling patients in phase 2 ALL studies which it thinks could support an FDA accelerated approval by the end of 2017. The company's optimism is rooted in the fact that about 70% of patients are responding to JCAR015 treatment.
Juno Therapeutics is also developing JCAR014, a second-generation CAR-T therapy that has delivered complete remission rates of up to 100% in blood cancers. Importantly, JCAR014's safety appears to be better than what has been previously seen in CAR-T patients. In the past, CAR-T patients have suffered from dangerous cytokine storms that can be life-threatening, but severe cytokine release syndrome has been less common in JCAR014 patients.
Over at Kite Pharma, its most advanced CAR-T therapy is KTE-C19, an approach that's being evaluated in aggressive non-Hodgkin lymphoma patients.
In studies, 22 of 41 patients with aggressive non-Hodgkin lymphoma treated with KTE-C19 achieved a complete response, with one of seven patients with chemorefractory NHL remaining a complete responder at nine months and two patients with chemorefractory NHL remaining complete responders at six months. Because the median overall survival in tough-to-treat NHL patients is historically about 3.6 months, KTE-C19's results appear to be very good.
Like Juno Therapeutics, Kite Pharma thinks its mid-stage results can win it an accelerated FDA approval. The company intends to file for that approval before the end of 2016, and if it delivers on that timing, it could be on track to be the first company with a CAR-T treatment on the market.
Both Juno Therapeutics and Kite Pharma have deep-pocketed collaborators coaching them and cheering them on.
Celgene owns about 10% of Juno Therapeutics, and it exercised its ex-North America and China rights to various Juno Therapeutics CAR-Ts, including JCAR015 and JCAR014, in April. Meanwhile, Amgen Inc. is teamed up with Kite Pharma on next-generation CAR-Ts, and these two companies hope to get the first next-generation therapy into human trials next year.
Looking forward
Galapagos, Juno Therapeutics, and Kite Pharma don't have any drugs currently on the market, and that makes them risky companies for investors to own. However, all three of these companies have well-heeled partners, healthy cash stockpiles, and R&D programs that could begin paying off soon.
Overall, while these three clinical-stage biotech stocks won't be right for every portfolio, they may be worth owning by investors who are willing to accept the risk of trial failure.
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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By combining multiple drugs into one therapy, AbbVie and Galapagos believe they have a shot at overcoming mutations that prevent the transport of chloride across cell membranes in 90% of cystic fibrosis patients. Galapagos NV I'm a fan of investing in clinical-stage companies which are working with biotech companies that have "been there, done that," and Galapagos NV 's(NASDAQ: GLPG) collaborations with AbbVie Inc . (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) set Galapagos apart from many other young companies in this industry. | While AbbVie's work with Galapagos is in the early stages, Gilead Sciences' collaboration with Galapagos is further along. Galapagos NV I'm a fan of investing in clinical-stage companies which are working with biotech companies that have "been there, done that," and Galapagos NV 's(NASDAQ: GLPG) collaborations with AbbVie Inc . (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) set Galapagos apart from many other young companies in this industry. | Galapagos NV I'm a fan of investing in clinical-stage companies which are working with biotech companies that have "been there, done that," and Galapagos NV 's(NASDAQ: GLPG) collaborations with AbbVie Inc . (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) set Galapagos apart from many other young companies in this industry. That's because AbbVie and Gilead Sciences have a history of focusing on de-risked research and development programs. | While AbbVie's work with Galapagos is in the early stages, Gilead Sciences' collaboration with Galapagos is further along. Galapagos NV I'm a fan of investing in clinical-stage companies which are working with biotech companies that have "been there, done that," and Galapagos NV 's(NASDAQ: GLPG) collaborations with AbbVie Inc . (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) set Galapagos apart from many other young companies in this industry. |
26543.0 | 2016-06-11 00:00:00 UTC | AbbVie's Rova-T Update at ASCO: Good or Bad? | ABBV | https://www.nasdaq.com/articles/abbvies-rova-t-update-asco-good-or-bad-2016-06-11 | nan | nan | After AbbVie Inc. (NYSE: ABBV) spent $5.8 billion upfront to buy Stemcentrx this year to get its hands on Rova-T, a drug for solid tumors, investor optimism for a breakthrough presentation at last week's American Society of Clinical Oncology (ASCO) conference spiked. AbbVie's presentation at ASCO showed that Rova-T can help some small cell lung cancer patients, but investors seemed to yawn at the results. Are investors underappreciating Rova-T?
In this clip from the Motley Fool's Industry Focus: Healthcare podcast, healthcare analyst Kristine Harjes and contributor Todd Campbell discuss Rova-T's potential impact on AbbVie.
A transcript follows the video.
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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 .
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This podcast was recorded on June 8, 2016.
Kristine Harjes: Let's say you want to take a highlight from ASCO of a larger company; something that stood out to me was AbbVie. We finally got a little bit of information on a purchase that AbbVie made in April of this past year for $5.8 billion. They bought a company called Stemcentrx, essentially for their lead candidate, which is called Rova-T. We finally got some more information about this drug.
Todd Campbell: A lot of investors were shaking their heads. Who's Stemcentrx and why are they paying $5.8 billion for it? We got a little bit more insight into that at ASCO, absolutely. Rova-T is under development as a treatment for small cell lung cancer. Small cell lung cancer is very hard to treat. It affects thousands of patients. Thousands of patients unfortunately pass away every year because of it.
In trials, Rova-T does a better job at shrinking tumor sizes than what many people may otherwise have seen in the past. Specifically, they took a look at a patient population of about 60 people. Rova-T targets a particular protein called DLL3 that's expressed on small cell lung cancer tumors. Of those people, there were 26 patients that had very high levels of expression of that DLL3, and 40% roughly of those patients responded to this therapy. And 89% of those patients had stable disease. That's really, really impressive given the poor prognosis for small cell lung cancer.
Harjes: I just like this drug's story. It's an antibody conjugate, which means it's double-sided. It works like a trojan horse. The protein binds to this DLL3, and it's invited inside of the tumor cell, the cancerous cells. Then it's inside, snuck in, and it releases the other component of the drug, which is an extremely potent chemotherapy drug. That's a really good story. We've warned on the show in the past not to get too, too excited about stories. Todd, you might disagree with me here, but I actually didn't think that the data seemed that promising. It didn't really look like they provided results that were that much better than the current standard of care.
There are some positives still here. It has an orphan drug designation which means that if it gets approved, AbbVie can be reimbursed for a huge chunk of the expenses incurred in the development. It seems to me like small cell lung cancer is not going to be the indication that makes up for the whole $5.8 billion purchase. It leads me wondering, are there other cancer types that over express DLL3? Could AbbVie take this drug and target those? If so, then this might have been an incredibly smart purchase. For now, I'm hesitant about this decision.
Campbell: Well, the answer is yes. They think that they can use this drug in various tumors that also express DLL3. That has AbbVie's management thinking that this drug could -- again, conceivably, management is always bullish -- generate $5 billion in annual sales someday. That's a pretty pie-in-the-sky forecast.
Harjes: If that's true, then that's a great price, the $5.8 [billion].
Campbell: Yeah. You take a risk. When you buy drugs that are in mid-stage trials, you take a risk, right? AbbVie is taking a risk, right? Could Rova-T fail, fall flat on its face, end up being a dud? Absolutely. Could it also become a very large and important cancer-fighting drug? Absolutely. AbbVie's management had to weigh those two things and figure out how de-risk is this program, and what's the likelihood of this thing succeeding?
I think that what you may have seen out of ASCO's, people were looking for this drug to be a silver bullet. They're a little bit disappointed that maybe it's not as magical as maybe they had hoped to have seen. This is still, I think, solid data. A registrational study, enabling study, is slated to begin later this year. Theoretically, data will read out on that study next year. If it's good, then the company can file for approval. If it's not, then all bets are off.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After AbbVie Inc. (NYSE: ABBV) spent $5.8 billion upfront to buy Stemcentrx this year to get its hands on Rova-T, a drug for solid tumors, investor optimism for a breakthrough presentation at last week's American Society of Clinical Oncology (ASCO) conference spiked. AbbVie's presentation at ASCO showed that Rova-T can help some small cell lung cancer patients, but investors seemed to yawn at the results. It has an orphan drug designation which means that if it gets approved, AbbVie can be reimbursed for a huge chunk of the expenses incurred in the development. | AbbVie's presentation at ASCO showed that Rova-T can help some small cell lung cancer patients, but investors seemed to yawn at the results. In this clip from the Motley Fool's Industry Focus: Healthcare podcast, healthcare analyst Kristine Harjes and contributor Todd Campbell discuss Rova-T's potential impact on AbbVie. After AbbVie Inc. (NYSE: ABBV) spent $5.8 billion upfront to buy Stemcentrx this year to get its hands on Rova-T, a drug for solid tumors, investor optimism for a breakthrough presentation at last week's American Society of Clinical Oncology (ASCO) conference spiked. | After AbbVie Inc. (NYSE: ABBV) spent $5.8 billion upfront to buy Stemcentrx this year to get its hands on Rova-T, a drug for solid tumors, investor optimism for a breakthrough presentation at last week's American Society of Clinical Oncology (ASCO) conference spiked. AbbVie's presentation at ASCO showed that Rova-T can help some small cell lung cancer patients, but investors seemed to yawn at the results. In this clip from the Motley Fool's Industry Focus: Healthcare podcast, healthcare analyst Kristine Harjes and contributor Todd Campbell discuss Rova-T's potential impact on AbbVie. | AbbVie's presentation at ASCO showed that Rova-T can help some small cell lung cancer patients, but investors seemed to yawn at the results. After AbbVie Inc. (NYSE: ABBV) spent $5.8 billion upfront to buy Stemcentrx this year to get its hands on Rova-T, a drug for solid tumors, investor optimism for a breakthrough presentation at last week's American Society of Clinical Oncology (ASCO) conference spiked. In this clip from the Motley Fool's Industry Focus: Healthcare podcast, healthcare analyst Kristine Harjes and contributor Todd Campbell discuss Rova-T's potential impact on AbbVie. |
26544.0 | 2016-06-10 00:00:00 UTC | Biotech Buzz: ASCO Winners and Losers and Biogen's Discouraging Failure | ABBV | https://www.nasdaq.com/articles/biotech-buzz-asco-winners-and-losers-and-biogens-discouraging-failure-2016-06-10 | nan | nan | It's a wrap. The annual American Society of Clinical Oncology (ASCO) conference has come to a close and that's got us wondering which companies deserve a gold star and which don't. The Motley Fool's Kristine Harjes and Todd Campbell weigh in on why Immunomedics (NASDAQ: IMMU) may have been ASCO's biggest loser and CAR-T drug developers Juno Therapeutics (NASDAQ: JUNO) and Kite Pharma (NASDAQ: KITE) its biggest winners. The two industry watchers also discuss AbbVie Inc. 's(NYSE: ABBV) Rova-T and whether the data AbbVie presented at ASCO last weekend justifies the $5.8 billion it paid to get its hands on that drug.
And if that isn't reason enough to tune into this week's show, Harjes and Campbell also offer up their thoughts on Biogen Inc. 's(NASDAQ: BIIB) recent clinical trial failure and they debate whether investors should be buyers. See who makes the most compelling argument on this edition of The Motley Fool's Industry Focus: Healthcare podcast.
A full transcript follows the video.
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This podcast was recorded on June 8, 2016.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. It is Wednesday, June 8th, 2016. We're covering healthcare news from ASCO, which was a huge cancer research conference that happened last week. We'll touch on the big data release from Biogen that sent the stock down almost 13% yesterday. I'm Kristine Harjes and I've got Todd Campbell on the line. He is one of our Motley Fool healthcare writers. What's going on, Todd?
Todd Campbell: Hi, Kristine. I don't know if it's happening for you or for listeners, but I feel like it's raining tree pollen right now.
Harjes: My gosh. Yesterday, I was sharing an Uber with a girl who was just sneezing the entire ride down. I wasn't affected, fortunately, but I guess it's pretty bad here in Alexandria as well.
Campbell: Maybe we should do a show coming up on allergy drugs soon.
Harjes: Sure. Yeah. It's healthcare. We're allowed to do that. When you talk about allergen, that's Allergan . It's basically the same, right?
Campbell: There you go.
Harjes: Anyhow, our first topic of the day, as I mentioned, is ASCO, which was the American Society of Clinical Oncology. They had their really important meeting where a lot of drug developers will present data and other interesting tidbits. It was held in Chicago.
You highlighted for me a loser and a couple of winners. We're talking before the show. Let's take the bad news first. That's generally my preference. You called out Immunomedics as a loser. Why?
Campbell: This got to be the strangest thing I've ever seen in years of following healthcare out of ASCO. Immunomedics is a small cap company that's working on cancer drugs, right? Its shares had taken off earlier this year after ASCO had granted approval for it to make a presentation, an oral presentation on one of its drugs that treats triple-negative breast cancer. The presentation was supposed to go off on Friday. But on Thursday night, ASCO sent management a note saying, "Sorry. We're not going to let you present after all."
Harjes: That seems like it came pretty last minute. Did they not know going into it that they're going to say this?
Campbell: Well, what's weird about this, and I think that a lot of investors sold off shares on Friday not really fully understanding what ASCO was saying. What's interesting about this is that ASCO wasn't pulling the presentation because of, say, it didn't believe the efficacy or the validity of what Immunomedics was going to say. Instead, it was because of a, we'll call it, technical formality. In that at ASCO, if you're going to present, we have very strict rules on embargoing information. Apparently, Immunomedics management outlined or detailed the information that it was scheduled to present at an industry conference in April that violated those embargo rules and, thus, they got yanked.
Harjes: Interestingly, the results were actually not that great that the company did eventually present. The stock was down 14% on Friday just due to this formality. Then later, you had fairly disappointing results and it went down even further. The fact that many people dropped out due to what's essentially just an asterisk on the rules signals to me that ASCO is used by a lot of short-term traders as this big catalyst event where you bid up shares beforehand hoping for a big news. Then you'll profit on the news. That's just not very Foolish to me.
Campbell: No. If this teaches investors or reminds investors a valuable lesson, I think this is saying more about short-term trading than it's saying about anything else, the quality of the drug, or investing in biotech, or anything. As is usually the case when it comes to investing, buy the rumor, sell the news. Well, people bought ahead of the potential for a post-ASCO pop. Of course with no ASCO presentation, there was no pop. They bailed and went on to look for other ideas.
That being said, I don't think that this is necessarily a stock that people want to bargain hunt. It's got a negative book value. It's got a little bit of cash, but it's got more debt than it has cash. It's got a drug that's intriguing that it looks like it works pretty well in pre-treated patients with triple-negative breast cancer, but it's still uncertain when they could file and if the FDA would accept that filing earlier, not when it could eventually even reach the market, if it does.
Harjes: Enough of the loser, one of potentially many losers from this conference, and maybe onto some winners. It seems like the CAR-T developers were, in general, taking victory laps.
Campbell: We haven't talked about CAR-T lately on the show. We talked about it a bunch of...
Harjes: Let's remind the listeners what it is. Good idea.
Campbell: Yeah, we talked a lot about it last year. Just to give a quick 10-second elevator pitch on it, what you're talking about is a type of cancer drug that reenergizes or supercharges the immune system to better find and destroy cancer or the cancer cells. It does that by removing the T-cells from the patients' bodies, reengineering to be able to find particular proteins that cells exhibit and then reintroducing those cells back into the patient's body, setting those T-cells loose to go and find and kill those cancer cells. It's a very, very interesting and intriguing proposition. The data that came out of ASCO certainly adds to the support to the concept that CAR-Ts could be a game-changing way of treating blood cancer specifically.
Harjes: Did any particular companies stand out to you?
Campbell: The two companies that I think are the ones that are investable or should be considered by investors are Juno Therapeutics and Kite Pharma. Those two companies are both working on programs that address significant unmet need in things like acute lymphoblastic leukemia, for example. Juno, which has actually teamed up with Celgene , had a bunch of different data come out of ASCO on JCAR015, JCAR014, JCAR017. I think that the thing that investors need to know is that the news that came out or what they released at ASCO was that these drugs work incredibly well versus what's on the market today. JCAR015 had complete responses in up to 91% of patients that were dosed. JCAR014 had response at 100% of patients with relapsing acute lymphoblastic leukemia responded to that treatment. JCAR017, 93% of pediatric and young adult patients with ALL saw a complete remission. Just really pretty outstanding results in these patient populations.
Harjes: Yeah, these numbers were pretty amazing, very, very encouraging. The thing to remember for investors is that these are still fairly early stage companies. Let's say you want to take a highlight from ASCO of a larger company; something that stood out to me was AbbVie. We finally got a little bit of information on a purchase that AbbVie made in April of this past year for $5.8 billion. They bought a company called Stemcentrx, essentially for their lead candidate, which is called Rova-T. We finally got some more information about this drug.
Campbell: A lot of investors were shaking their heads. Who's Stemcentrx and why are they paying $5.8 billion for it? We got a little bit more insight into that at ASCO, absolutely. Rova-T is under development as a treatment for small cell lung cancer. Small cell lung cancer is very hard to treat. It affects thousands of patients. Thousands of patients, unfortunately, pass away every year because of it.
In trials, Rova-T does a better job at shrinking tumor sizes than what many people may otherwise have seen in the past. Specifically, they took a look at a patient population of about 60 people. Rova-T targets a particular protein called DLL3 that's expressed on small cell lung cancer tumors. Of those people, there were 26 patients that had very high levels of expression of that DLL3. 40% roughly of those patients responded to this therapy. 89% of those patients had stable disease. That's really, really impressive given the poor prognosis for small cell lung cancer.
Harjes: I just like this drug's story. It's an antibody conjugate which means it's double-sided. It works like a trojan horse. The protein binds to this DLL3, and it's invited inside of the tumor cell, the cancerous cells. Then its inside, snuck in and it releases the other component of the drug, which is an extremely potent chemotherapy drug. That's a really good story. We've warned on the show in the past not to get too, too excited about stories. Todd, you might disagree with me here, but I actually didn't think that the data seemed that promising. It didn't really look like they provided results that were that much better than the current standard of care.
There are some positive still here. It has an orphan drug designation which means that if it gets approved, AbbVie can be reimbursed for a huge chunk of the expenses incurred in the development. It seems to me like small cell lung cancer is not going to be the indication that makes up for the whole $5.8 billion purchase. It leads me wondering, are there other cancer types that over express DLL3? Could AbbVie take this drug and target those? If so, then this might have been an incredibly smart purchase. For now, I'm hesitant about this decision.
Campbell: Well, the answer is yes. They think that they can use this drug in various tumors that also express DLL3. That has AbbVie's management thinking that this drug could, again, conceivably, management is always bullish, generate $5 billion in annual sales someday. That's a pretty pie in the sky forecast.
Harjes: If that's true, then that's a great price, the 5.8.
Campbell: Yeah. You take a risk. When you buy drugs that are in mid-stage trials, you take a risk, right? AbbVie is taking a risk, right? Could Rova-T fail, fall flat on its face, end up being a dud? Absolutely. Could it also become a very large and important cancer fighting drug? Absolutely. AbbVie's management had to weigh those two things and figure out how derisk is this program and what's the likelihood of this thing succeeding?
I think that what you may have seen out of ASCO's, people were looking for this drug to be a silver bullet. They're a little bit disappointment that maybe it's not as magical as maybe they had hoped to have seen. This is still, I think, solid data. Registrational study, enabling study is slated to begin later this year. Theoretically, data will read out on that study next year. If it's good, then the company can file for approval. If it's not, then all bets are off.
Harjes: Got you. Speaking of high-risk, high-reward propositions, I want to turn to the last topic of the day which is Biogen as a general stock within the healthcare space is not your typical high-risk, high-reward stock, but they have a couple of trials going on that are fairly risky. They're not obvious wins. There is a lot of hope tied to this one particular trial -- that was known as the SYNERGY trial -- that was in multiple sclerosis and, unfortunately, had pretty bad news delivered yesterday. That the drug, anti-LINGO, failed to meet both primary and secondary end points.
Campbell: Biogen is a biotech goliath. They get tons of financial firepower. That financial firepower is being used to take a couple of moonshots. One of those moonshots was this drug that you just mentioned, anti-LINGO-1. They were studying Anti-LINGO-1 as a potential first ever drug that could be used to reverse the effects of multiple sclerosis. If you follow Biogen at all, and I'm sure some of our listeners have, they are already a giant in multiple sclerosis treatment. However, all of their therapies simply delayed disease progression. They don't reverse the course of this disease. Unfortunately, the trial result showed that anti-LINGO-1 wasn't effective, and it actually didn't even slow the progression of the disease. It's kind of a lose-lose in that regard.
Harjes: This was extremely disappointing because the drug was hoped to be the first ever drug to be able to actually repair the damaged myelin sheath that is involved with this disease so to actually be able to reverse it.
Campbell: Right. The myelin sheath that basically covers part of the cell in the central nervous system that allows for the fast transmission of signals. Once it gets damaged by... It's usually damaged by inflammation or immune system reaction. That signaling gets thrown out of kilter, if you will. That causes the symptoms of the disease. If you could repair the myelin sheath, then theoretically you could restore that fast signaling. Unfortunately, that didn't happen in this trial.
Harjes: That being said, Biogen is still the market share leader in what is roughly a $17 billion market for multiple sclerosis. Why is that so hard to say? MS treatments. The company was down 12.7% yesterday, which for a stock that huge, that's a really, really large tank. The question that I have for you, Todd, we'll wrap up the show with it, going forward, is Biogen a buy, a sell or a hold?
Campbell: It's a buy. It's a buy. Listen, this is a biotech goliath that's on the same level as owning a Celgene or a Gilead . It needs to be a core holding in biotechnology portfolios. They still got tons of drugs in the pipeline. They're doing some really interesting research on Alzheimer's disease. They're fairly well-insulated from competition in multiple sclerosis. They're growing their top and the bottom line still.
I think that this is a stock that people tuck in. They buy it on sale and they recognize that, yes, trials fail. Some trials will succeed. On balance, Biogen has, I guess, the financial firepower to get it through those stumbles like it endured this past week.
Harjes: I have to say I don't disagree with you much, but I actually am not quite as bullish here. It seems to me like they might be losing grip on the MS market a little bit. You have new therapies coming to market. You've got Novartis with Gilenya. Biogen right now, it seems to be relying pretty heavily on these moonshots. They had anti-LINGO-1 and we just discussed that whole story and how disappointing that was. They have another Alzheimer's candidate that is also as much, if not more of a moonshot. It could be huge. To me, when I'm looking at buying a big relatively safe biotech, I don't want to buy it because of small chance moonshots.
Campbell: Well, I'll give you that. Alzheimer's disease especially is extremely hard to treat. There are no cures. The failure rate in clinical trial is about 99%.
Harjes: Yet, I still think a lot of the valuation of this company is tied to hopes for that drug.
Campbell: I don't know. You're only paying 12 or 13 times earnings to buy this company right now. I think that they'll be OK. I think that they'll be able to... Even if their pipeline doesn't generate out, the multibillion dollar blockbusters, I think they still have plenty of interesting opportunities. I also like the idea of owning it to get the potential for the spin-off of its hemophilia drugs later this year. That's a whole other show.
Harjes: Yeah. We could probably do an entire show about Biogen. We'll add it to the idea's list. I guess, for now, we'll agree to disagree.
Listeners, dig in to the story, read up. We've got plenty of great articles on fool.com, not only about Biogen, but also about the different ASCO data readouts and news on every company that we've discussed today as well as a handful of others. Have fun reading up. Todd, thanks so much for your thoughts today and helping me get this news out there.
As always, people on the program may have interest in the stocks that they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. For Todd Campbell, I'm Kristine Harjes. Thanks for listening and Fool on!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 two industry watchers also discuss AbbVie Inc. 's(NYSE: ABBV) Rova-T and whether the data AbbVie presented at ASCO last weekend justifies the $5.8 billion it paid to get its hands on that drug. Let's say you want to take a highlight from ASCO of a larger company; something that stood out to me was AbbVie. We finally got a little bit of information on a purchase that AbbVie made in April of this past year for $5.8 billion. | The two industry watchers also discuss AbbVie Inc. 's(NYSE: ABBV) Rova-T and whether the data AbbVie presented at ASCO last weekend justifies the $5.8 billion it paid to get its hands on that drug. Let's say you want to take a highlight from ASCO of a larger company; something that stood out to me was AbbVie. We finally got a little bit of information on a purchase that AbbVie made in April of this past year for $5.8 billion. | The two industry watchers also discuss AbbVie Inc. 's(NYSE: ABBV) Rova-T and whether the data AbbVie presented at ASCO last weekend justifies the $5.8 billion it paid to get its hands on that drug. Let's say you want to take a highlight from ASCO of a larger company; something that stood out to me was AbbVie. We finally got a little bit of information on a purchase that AbbVie made in April of this past year for $5.8 billion. | The two industry watchers also discuss AbbVie Inc. 's(NYSE: ABBV) Rova-T and whether the data AbbVie presented at ASCO last weekend justifies the $5.8 billion it paid to get its hands on that drug. Let's say you want to take a highlight from ASCO of a larger company; something that stood out to me was AbbVie. We finally got a little bit of information on a purchase that AbbVie made in April of this past year for $5.8 billion. |
26545.0 | 2016-06-10 00:00:00 UTC | 7 Best ETF Picks: Investing Nimbly With Some Excitement Thrown In | ABBV | https://www.nasdaq.com/articles/7-best-etf-picks-investing-nimbly-some-excitement-thrown-2016-06-10 | nan | nan | Investors scoffed at the "sell in May and go away" adage and sent stock ETFs higher in the past month. A sharp oil rally offset both a dismal employment report and more evidence that corporate America's profits are getting crushed.
SPDR S&P 500 ( SPY ) set a string of 2016 highs in June, as the U.S. stock market built on its rebound from the February market bottom.
Still, caution is the word at the world's largest investment manager.
In the U.S., the latest job growth figures -- the weakest in almost six years -- cast doubt on the recovering economy's ability to absorb an interest-rate hike this summer. In the U.K., a key June 23 referendum will decide whether Britain stays in the European Union.
Those uncertainties add up to big risks for global markets, according to BlackRock.
"We believe now is a good time to dial down equity and credit risk," Richard Turnill, BlackRock's global chief investment strategist, wrote in a June 6 research note. He favors dividend growers in an unstable environment, to be found in an exchange traded fund such as ProShares S&P 500 Dividend Aristocrats ( NOBL ). NOBL invests exclusively in S&P 500 companies with the longest track records of year-over-year dividend growth. These "aristocrats" include medical device maker Medtronic ( MDT ) and drugmaker AbbVie ( ABBV ).
In the month ended last Tuesday, United States Oil ( USO ), a best-performing ETF of 2016 , added 11.5%. The commodity ETF invests in crude futures, which on June 8 surged to their highest level in nearly a year.
Among equities, technology stocks emerged from their recent sloth to help lead the S&P higher.
IShares PHLX Semiconductor (SOXX) jumped 11.7% in the past month, as No. 1 holding Broadcom (AVGO) climbed to a 52-week high after its fiscal Q2 report. Ambarella (AMBA), parts supplier to GoPro (GPRO), also soared after its earnings report.
SPY posted a 2.9% gain in the past month as the market resumed its uptrend.
IShares MSCI EAFE (EFA), holding foreign developed-market stocks, rose 3.6% in the same time. Vanguard FTSE Emerging Markets (VWO) tacked on 5.2%.
The Outlook
For ETF investors, the key question is whether the S&P 500 can hold above the 2,100 resistance level in the second half of 2016. We asked two money managers for their best investing ideas so that portfolios aren't range-bound, even if the broad market moves sideways:
Kimberly D. Woody, senior portfolio manager, GlobaltInvestments in Atlanta, Ga.; assets under advisement: roughly $1.8 billion.
The S&P 500 remains sandwiched in a multiyear trading range, which calls for more nimble tactical trading, not large strategic tilts. The choice before American voters is as stark as ever, with far-reaching implications for the economy as well as for multiple industries. We believe it unlikely that markets race higher before global risks abate and until more clarity is seen on the U.S. political front. Positive developments in the global economy, currency and commodity markets have led to calmer global equity and bond markets. We remain hopeful for increased economic momentum, but more evidence of recovery is needed to justify increasing risk in portfolios.
Guggenheim BulletShares 2016 Corporate Bond (BSCG) belongs to the Guggenheim BulletShares suite, with which investors get an instrument that behaves like a bond of similar maturity. For example, a "bullet" dated 2017 will own and hold bonds maturing in 2017. ETFs with target durations have to buy and sell bonds to maintain their stated maturity while the bullets roll down the curve (assuming it's upward sloping) like a regular bond. Additionally, you get the benefits of diversification by owning a basket of bonds. Because the bonds are held to maturity, returns are maximized if rates have risen over the holding period.
Market Vectors Gold Miners (GDX) holds roughly 40 stocks. Though gold stocks and miners have been in extended bear markets since their peak in 2011, there is a fundamental rationale for buying GDX. In the event of global instability, GDX may attract investors, as it is considered a safe haven. Conversely, should the world economy reignite, creating increased demand for gold, the miners stand to realize an outsize benefit relative to the physical commodity. The miners have reduced fixed costs to an extent that continued lower variable input costs (labor, energy and consumables) should drive exponential gains in profitability. What is clear is a lack of clarity as to which scenario plays out. In our opinion, GDX is very attractive as one of very few investments offering a hedge against what is essentially increased volatility in either direction.
PowerShares International Dividend Achievers (PID) provides global exposure through a universe of quality American and Global Depository Receipts with a five-year history of dividend increases. PID tracks a dividend-yield-weighted index. The fund's sector weighting is tilted toward industrials, energy, financials and basic materials. Canada, the United Kingdom, Australia and the United States are the top countries represented within the fund, accounting for over 60% of the holdings. With a 12-month yield of approximately 3.75%, solid liquidity and only 12% exposure to emerging markets, this ETF offers an attractive risk exposure for those seeking a relatively attractive and growing income stream. International markets have sustained quite a bit of damage since their peak and offer significant value.
Robert Davis, partner and chief investment officer, Round Table Wealth Management in New York City; assets under management: $1 billion.
Our near-term view is cautious as it relates to stocks. Earnings have been significantly reduced since the start of the year, and valuations remain at a premium in certain defensive sectors. Growth is not absent, however, as the small-cap growth sector is demonstrating increased earnings, and we believe this is an area of opportunity after a meaningful sell-off in the first half of the year. We also view high-yield bonds as an attractive area, as those securities are higher in the capital structure and provide a meaningful yield to get investors through what could be a flat market leading up to the presidential election.
SPDR Barclays High Yield Bond (JNK) offers a compelling 6.30% income yield to investment portfolios. By moving up the capital structure from equities, we expect investors to be "paid to wait" should the equity markets flatten out during the summer amid weaker corporate earnings and premium valuations for defensive stocks. Investors should be mindful of exiting this ETF should interest-rate spread premiums compress towards longer-term averages.
IShares Russell 2000 Growth (IWO) holds 1,170 micro-, small- and midcap stocks. Growth style investing is out of favor, yet over the past year, small-cap growth earnings are up and valuations are down. Contrarians take note: According to Bloomberg data, the small-cap growth index has increased earnings 25% over the prior 12 months, yet the multiple paid for those earnings declined 39%. By comparison, the Russell 1000 Value Index's earnings declined 9.7%, while the P/E multiple increased 4.3%.
VelocityShares Daily Inverse VIX Short-Term (XIV) and VelocityShares VIX Short-Term (VIIX) are for investors who want more short-term trading excitement during the dog days of summer. When the VIX volatility futures curve is in contango , XIV shorts longer-dated VIX futures that roll down the curve to be purchased back near expiration at a lower price. Similarly, buying the VelocityShares VIX Short-Term when the VIX futures curve is in backwardation should allow investors to profit from that ETF's structure of buying longer-dated VIX futures that roll towards a higher-priced spot price.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These "aristocrats" include medical device maker Medtronic ( MDT ) and drugmaker AbbVie ( ABBV ). "We believe now is a good time to dial down equity and credit risk," Richard Turnill, BlackRock's global chief investment strategist, wrote in a June 6 research note. Conversely, should the world economy reignite, creating increased demand for gold, the miners stand to realize an outsize benefit relative to the physical commodity. | These "aristocrats" include medical device maker Medtronic ( MDT ) and drugmaker AbbVie ( ABBV ). Market Vectors Gold Miners (GDX) holds roughly 40 stocks. With a 12-month yield of approximately 3.75%, solid liquidity and only 12% exposure to emerging markets, this ETF offers an attractive risk exposure for those seeking a relatively attractive and growing income stream. | These "aristocrats" include medical device maker Medtronic ( MDT ) and drugmaker AbbVie ( ABBV ). Positive developments in the global economy, currency and commodity markets have led to calmer global equity and bond markets. By moving up the capital structure from equities, we expect investors to be "paid to wait" should the equity markets flatten out during the summer amid weaker corporate earnings and premium valuations for defensive stocks. | These "aristocrats" include medical device maker Medtronic ( MDT ) and drugmaker AbbVie ( ABBV ). Investors scoffed at the "sell in May and go away" adage and sent stock ETFs higher in the past month. Positive developments in the global economy, currency and commodity markets have led to calmer global equity and bond markets. |
26546.0 | 2016-06-09 00:00:00 UTC | Why Galapagos NV Shares Soared 30.5% in May | ABBV | https://www.nasdaq.com/articles/why-galapagos-nv-shares-soared-305-may-2016-06-09 | nan | nan | Image source: Flickr user Stockmonkeys.com.
What: After AbbVie Inc .(NYSE: ABBV) expanded a collaboration with the company to work on therapies for cystic fibrosis, shares in Galapagos NV (NASDAQ: GLPG) jumped 30.5% last month, according to S&P Global Market Intelligence .
So what: On April, 29, AbbVie and Galapagos announced that the two were expanding their cystic fibrosis partnership.
Specifically, AbbVie has agreed to increase the potential milestones it will pay Galapagos for phases 1 and 2 trials to $600 million from the $350 million promised previously. The increase is due to success the two are having in creating multiple therapies that may be used in a triplet combination therapy addressing up to 90% of 80,000 patients globally diagnosed with this life-altering disease.
The companies plan to initiate human trials of triplet therapy in patients with an amenable F508del mutation beginning next year. In pre-clinical studies, triplet combinations under development have shown that they can significantly increase chloride transport when compared to Orkambi. Orkambi won approval for use in F508del patients in 2015 and in the first quarter, Vertex Pharmaceuticals (NASDAQ: VRTX) reported Orkambi sales of $223 million.
Momentum stemming from the expanded partnership with AbbVie was strengthened in late May when Gilead Sciences (NASDAQ: GILD) announced plans to move filgotinib -- a drug for the treatment of rheumatoid arthritis that's being co-developed with Galapagos -- into phase 3 trials. A phase 3 study in rheumatoid arthritis will commence in the third quarter. Gilead Sciences also announced plans to initiate phase 3 studies of filgotinib in Crohn's disease and phase 2/3 studies in ulcerative colitis in the coming months.
Other key collaboration terms remain in place: tiered royalty payments on net sales, ranging from mid-teens to 20%. Galapagos retains commercial rights to China and South Korea, and has an option to co-promote in Belgium, Netherlands, and Luxembourg.
Now what: Galapagos' collaborations appear to be progressing smoothly, and given that its work with AbbVie and Gilead Sciences targets billion-dollar blockbuster indications, investors are right to be encouraged.
However, investors should remember that the cystic fibrosis drugs are in the earliest stages of development, and because of that, there's no telling what the clinical outcome of trials may be. Additionally, while filgotinib has shown solid efficacy and safety in trials so far, plenty of phase 3 trials miss their mark, so there's risk associated with the Gilead Sciences program, too.
Overall, Galapagos is an incredibly intriguing company that's got top-tier partnerships and potentially top-selling medications in the works. Stashing Galapagos away in risk-tolerant portfolios could be profit-friendly over the long haul, but investors will need to expect a lot of pops and drops along the way due to how many trials it's got planned.
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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. | (NYSE: ABBV) expanded a collaboration with the company to work on therapies for cystic fibrosis, shares in Galapagos NV (NASDAQ: GLPG) jumped 30.5% last month, according to S&P Global Market Intelligence . Momentum stemming from the expanded partnership with AbbVie was strengthened in late May when Gilead Sciences (NASDAQ: GILD) announced plans to move filgotinib -- a drug for the treatment of rheumatoid arthritis that's being co-developed with Galapagos -- into phase 3 trials. What: After AbbVie Inc . | (NYSE: ABBV) expanded a collaboration with the company to work on therapies for cystic fibrosis, shares in Galapagos NV (NASDAQ: GLPG) jumped 30.5% last month, according to S&P Global Market Intelligence . What: After AbbVie Inc . So what: On April, 29, AbbVie and Galapagos announced that the two were expanding their cystic fibrosis partnership. | (NYSE: ABBV) expanded a collaboration with the company to work on therapies for cystic fibrosis, shares in Galapagos NV (NASDAQ: GLPG) jumped 30.5% last month, according to S&P Global Market Intelligence . Momentum stemming from the expanded partnership with AbbVie was strengthened in late May when Gilead Sciences (NASDAQ: GILD) announced plans to move filgotinib -- a drug for the treatment of rheumatoid arthritis that's being co-developed with Galapagos -- into phase 3 trials. What: After AbbVie Inc . | So what: On April, 29, AbbVie and Galapagos announced that the two were expanding their cystic fibrosis partnership. Momentum stemming from the expanded partnership with AbbVie was strengthened in late May when Gilead Sciences (NASDAQ: GILD) announced plans to move filgotinib -- a drug for the treatment of rheumatoid arthritis that's being co-developed with Galapagos -- into phase 3 trials. What: After AbbVie Inc . |
26547.0 | 2016-06-09 00:00:00 UTC | 3 Reasons to Buy AbbVie Inc. | ABBV | https://www.nasdaq.com/articles/3-reasons-buy-abbvie-inc-2016-06-09 | nan | nan | Image source: AbbVie Inc.
Biotechnology stocks are regaining a bit of their luster lately; but not every biotech stock is right for your portfolio. Is AbbVie Inc. (NYSE: ABBV) a name you can stash away for the long haul? I think so. Here are three reasons why.
1. Sidestepping the Humira threat
One of the biggest reasons not to buy shares in AbbVie is its heavy reliance on Humira, the top-selling autoimmune disease drug commonly used to treat rheumatoid arthritis and psoriasis. With more than $14 billion in annual sales, Humira accounts for 60% of AbbVie's revenue, and that's admittedly a big problem given that patents protecting Humira in the U.S. expire later this year. The risk to Humira sales posed by future copycats shouldn't be ignored, but it should be kept in perspective.
Humira is losing protection on its formulary patent, but it's still protected by method-of-use patents that could delay competitors for a few more years. In May, the U.S. Patent Office agreed to review challenges to some of those method-of-use patents; however, a decision from that review isn't expected until May 2017. If the decision goes against AbbVie, it can file an appeal that would delay the process another year.
In fact, AbbVie's management is so convinced that its patent portfolio can keep lookalikes in check that it recently forecast Humira sales growing, rather than shrinking, to $18 billion in 2020.
Image source: AbbVie Inc.
2. Expanding into new markets
Up until recently, AbbVie has been known as an autoimmune disease giant; but it's quickly transforming itself into a much-more diversified company. Last year, it spent $21 billion acquiring Pharmacyclics to get its hands on the chronic lymphocytic leukemia (CLL) drug Imbruvica. Imbruvica is commonly used as the second-line therapy in this indication, and a recent label expansion into the first-line setting has pushed its annualized sales into billion-dollar-blockbuster territory.
AbbVie also spent $5.8 billion earlier this year to buy Stemcentrx, a company with a small-cell lung-cancer (SCLC) drug ready for registrational-stage clinical studies. That drug, Rova-T, targets a protein commonly expressed on solid tumors.
So far, results have been solid, especially in the third-line treatment setting where there are currently no FDA-approved treatment options. In 12 SCLC patients who over express this protein, and who have failed on two prior treatment regimens, 92% of them experienced at least a stabilization of their disease.
AbbVie also notched an FDA go ahead in April for Venclexta, a second-line therapy for CLL patients possessing the 17p deletion mutation. Because most patients with CLL see their disease return, and 20% of relapsing CLL patients have this mutation, Venclexta could generate hundreds of millions of dollars in additional annual revenue for AbbVie.
The FDA also recently gave the nod to Zinbryta, a multiple sclerosis drug that AbbVie developed in concert with MS drug Goliath Biogen . Zinbryta's black-box warning means it may be destined for niche status , but its once-monthly dosing could make it a good option for patients whose disease fails to be controlled by other medications.
3. Leveraging its financial firepower
Sidestepping threats to Humira and grabbing share in new markets could give AbbVie the time it needs to put its balance sheet to work to further insulate itself against competition.
Exiting March, AbbVie had $8.5 billion in cash and short-term investments on its books, which generates $2.1 billion in quarterly operating cash flow. The company's $24 billion in trailing 12-month sales, and $5 billion in trailing 12-month net income, means there's plenty of money to fuel R&D, keep its foot on the M&A pedal, and pay investor-friendly dividends. (Shares currently yield a healthy 3.6%.)
Last quarter, AbbVie plowed 15.9% of its revenue back into R&D, including programs evaluating four different potential Humira successors. If AbbVie's deep pockets allow it to buy additional late-stage drugs and innovate a Humira 2.0, then it may significantly be able to blunt sales that will be lost when Humira finally faces off against competitors.
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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 also spent $5.8 billion earlier this year to buy Stemcentrx, a company with a small-cell lung-cancer (SCLC) drug ready for registrational-stage clinical studies. Leveraging its financial firepower Sidestepping threats to Humira and grabbing share in new markets could give AbbVie the time it needs to put its balance sheet to work to further insulate itself against competition. Image source: AbbVie Inc. Biotechnology stocks are regaining a bit of their luster lately; but not every biotech stock is right for your portfolio. | Sidestepping the Humira threat One of the biggest reasons not to buy shares in AbbVie is its heavy reliance on Humira, the top-selling autoimmune disease drug commonly used to treat rheumatoid arthritis and psoriasis. Image source: AbbVie Inc. Biotechnology stocks are regaining a bit of their luster lately; but not every biotech stock is right for your portfolio. Is AbbVie Inc. (NYSE: ABBV) a name you can stash away for the long haul? | Sidestepping the Humira threat One of the biggest reasons not to buy shares in AbbVie is its heavy reliance on Humira, the top-selling autoimmune disease drug commonly used to treat rheumatoid arthritis and psoriasis. With more than $14 billion in annual sales, Humira accounts for 60% of AbbVie's revenue, and that's admittedly a big problem given that patents protecting Humira in the U.S. expire later this year. If AbbVie's deep pockets allow it to buy additional late-stage drugs and innovate a Humira 2.0, then it may significantly be able to blunt sales that will be lost when Humira finally faces off against competitors. | Sidestepping the Humira threat One of the biggest reasons not to buy shares in AbbVie is its heavy reliance on Humira, the top-selling autoimmune disease drug commonly used to treat rheumatoid arthritis and psoriasis. With more than $14 billion in annual sales, Humira accounts for 60% of AbbVie's revenue, and that's admittedly a big problem given that patents protecting Humira in the U.S. expire later this year. Image source: AbbVie Inc. Biotechnology stocks are regaining a bit of their luster lately; but not every biotech stock is right for your portfolio. |
26548.0 | 2016-06-07 00:00:00 UTC | 3 Dividend Aristocrats to Buy in June | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-buy-june-2016-06-07 | nan | nan | If a company successfully raises its dividend for 25 years in a row, it joins the ranks of a select group of businesses called Dividend Aristocrats. Given that the business world is brutally competitive, it's extremely challenging to join this elite group, so when a company manages to do so it proves that the business is built to last.
We Fools greatly admire this group of companies and believe that almost every investor should find a place for at least a few of them in his or her portfolio. Knowing that, we asked a team of Motley Fool specialists to share a Dividend Aristocrat they think is a buy right now. Read below to see what they had to say:
Matt DiLallo
Despite the volatility of oil prices , ExxonMobil (NYSE: XOM) has been able to grow its dividend each year for more than 30 years. It even increased its payout this year, though it was by the smallest rate since 2011. Further, the last time the oil giant cut its payout was the year Harry Truman entered the White House.
That history aside, what matters to dividend investors is the company's ability to keep that income-growth train rolling. Admittedly, right now the company is facing some pressures due to weaker oil prices, which has cut into its cash flow. During the first quarter, cash flow from operations and asset sales totaled $5 billion, which wasn't enough to cover the $5.1 billion it spent in capital expenditures, let alone its $3.7 billion in shareholder distributions. However, that was due to very weak oil and gas price realizations after oil crashed below $30 a barrel.
Oil has subsequently started to recover and is poised to continue to rally due to the growing belief that supplies are expected to be back in balance with demand before the end of the year. Moreover, after two years of underinvestment, the oil market could be woefully undersupplied by the end of next year unless oil averages $70 a barrel, according to analysts. Meanwhile, oil would need to average $90 a barrel in order to ensure long-term supply/demand balance in 2018 and beyond. In other words, unless oil demand falls off the table -- instead of growing as it has been doing -- its price should be much higher in the future, which would enable ExxonMobil to continue to grow its dividend.
Bottom line, oil prices might be down right now, but prices don't appear likely to stay low for too much longer. That bodes well for ExxonMobil's future.
Brian Feroldi
I think that dividend-focused investors should take a closer look at pharma giant AbbVie (NYSE: ABBV) right now. The company has positioned itself for double-digit growth over the next few years, and its dividend yield is a market-beating 3.5% right now. That's a nice combination that any investor should appreciate.
AbbVie's stock has been a big winner over the past few years thanks in large part to Humira, its best-selling multi-indication anti-inflammatory drug. Last year, AbbVie sold more than $14 billion worth of Humira worldwide, up an impressive 19% over the prior year if you strip out currency movements.
PHOTO CREDIT: IMAGES_OF_MONEY FLICKR (CREATIVE COMMONS).
Management expects that sales of Humira will continue to grow at a rapid clip for years to come, and when you add in the expected growth of the rest of its lineup -- like its cancer drug, Imbruvica, and its hepatitis C cure, Viekira Pak -- they are calling for earnings to grow by double-digit rates between now and 2020.
That's a bold prediction , and while the growth sounds great, many on Wall Street are concerned that biosimilar competition could put a stop to Humira's growth. While that's a potential risk, management remains confident that Humira is well-protected from copycats until at least 2022, which is why they are willing to provide such a long-term growth forecast.
AbbVie has a history of living up to its expectations, so I'm inclined to believe the outlook. If you agree, then AbbVie's stock looks quite cheap right now. Shares are trading for about 11 times next year's earnings estimates, giving shares a price/earnings to growth (PEG) ratio of about 0.83 (anything below 1 is considered cheap).
AbbVie's stock offers investors income, growth, and value right now. I find that to be a compelling combination.
Tim Green
There are only a few dozen companies that have earned the title of dividend aristocrat, and most of them trade at a substantial premium. Wal-Mart (NYSE: WMT) , which is in the middle of making heavy investments that have eaten away at its bottom line, is one of the cheaper aristocrats available.
Wal-Mart already sells nearly $500 billion worth of products each year around the world, but the company recognized last year that it needed to make some major investments in order to drive growth going forward. Higher wages and increased training are raising costs and driving down profits, but the hope is that this extra spending will improve employee morale and customer satisfaction. Wal-Mart is also getting serious about e-commerce, increasing its capital spending dedicated to online sales and rolling out initiatives like online grocery order and pickup.
Because shares of Wal-Mart have been beaten down since hitting highs in early 2015, the dividend yield is currently about 2.85%. Based on Wal-Mart's earnings guidance for this year, it will pay out about half of its earnings in dividend payments. But the company expects earnings growth to resume next year, driven by its various initiatives, and that means that dividend growth could pick up as well. With Wal-Mart offering a dividend yield well above historical levels for the stock, June is a good time to consider picking up some shares.
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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. | Brian Feroldi I think that dividend-focused investors should take a closer look at pharma giant AbbVie (NYSE: ABBV) right now. AbbVie's stock has been a big winner over the past few years thanks in large part to Humira, its best-selling multi-indication anti-inflammatory drug. Last year, AbbVie sold more than $14 billion worth of Humira worldwide, up an impressive 19% over the prior year if you strip out currency movements. | AbbVie's stock offers investors income, growth, and value right now. Brian Feroldi I think that dividend-focused investors should take a closer look at pharma giant AbbVie (NYSE: ABBV) right now. AbbVie's stock has been a big winner over the past few years thanks in large part to Humira, its best-selling multi-indication anti-inflammatory drug. | Brian Feroldi I think that dividend-focused investors should take a closer look at pharma giant AbbVie (NYSE: ABBV) right now. AbbVie's stock has been a big winner over the past few years thanks in large part to Humira, its best-selling multi-indication anti-inflammatory drug. Last year, AbbVie sold more than $14 billion worth of Humira worldwide, up an impressive 19% over the prior year if you strip out currency movements. | AbbVie's stock offers investors income, growth, and value right now. Brian Feroldi I think that dividend-focused investors should take a closer look at pharma giant AbbVie (NYSE: ABBV) right now. AbbVie's stock has been a big winner over the past few years thanks in large part to Humira, its best-selling multi-indication anti-inflammatory drug. |
26549.0 | 2016-06-06 00:00:00 UTC | S&P 500 Movers: ABBV, RIG | ABBV | https://www.nasdaq.com/articles/sp-500-movers-abbv-rig-2016-06-06 | nan | nan | In early trading on Monday, shares of Transocean ( RIG ) topped the list of the day's best performing components of the S&P 500 index, trading up 6.6%. Year to date, Transocean has lost about 16.2% of its value.
And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 3.9%. AbbVie is showing a gain of 5.4% looking at the year to date performance.
Two other components making moves today are Best Buy ( BBY ), trading down 3.5%, and CF Industries Holdings ( CF ), trading up 6.3% on the day.
VIDEO: S&P 500 Movers: ABBV, RIG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 3.9%. AbbVie is showing a gain of 5.4% looking at the year to date performance. VIDEO: S&P 500 Movers: ABBV, RIG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 3.9%. VIDEO: S&P 500 Movers: ABBV, RIG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie is showing a gain of 5.4% looking at the year to date performance. | VIDEO: S&P 500 Movers: ABBV, RIG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 3.9%. AbbVie is showing a gain of 5.4% looking at the year to date performance. | And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 3.9%. VIDEO: S&P 500 Movers: ABBV, RIG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie is showing a gain of 5.4% looking at the year to date performance. |
26550.0 | 2016-06-06 00:00:00 UTC | What AbbVie Bought for $5.8 Billion | ABBV | https://www.nasdaq.com/articles/what-abbvie-bought-58-billion-2016-06-06 | nan | nan | It's no secret that AbbVie (NYSE: ABBV) is overly dependant on its best-selling drug, Humira, and is trying to diversify by buying oncology assets. Its latest purchase was privately held Stemcentryx, for a whopping $5.8 billion.
Investors knew Stemcentryx's lead candidate, rovalpituzumab tesirine (Rova-T), is in a trials for small-cell lung cancer, a disease that affects a large but underserved group of patients. We even know how it works, but how well was shrouded in mystery.
AbbVie promised to pull back the curtain on Rova-T at the annual meeting of the American Society of Clinical Oncologists on Sunday. Let's take a closer look at the the candidate in light of recent revelations to see if AbbVie is chasing rainbows or making smart purchases.
What we knew
When AbbVie announced its latest splurge, we knew that Stemcentryx scientists had elucidated an overabundance of a protein called delta-like 3, or DLL3, on the surface of certain lung tumor cells.
We also knew that Rova-T is two sided compound, known as an antibody drug conjugate. On one side is a protein that binds to DLL3, connected to an extremely potent chemotherapy drug. Once the protein side binds to DLL3 on the cancer cell's surface, it's invited inside, where it releases the chemo-bomb. This way it should selectively destroy tumor cells, without damaging healthy tissues.
What we learned
On Sunday, investigators announced results from a phase 1 dose determination trial with 74 small-cell lung cancer patients, about half of which progressed after one prior line of therapy, and the other half after two. The results weren't bad, but they hardly justify a $5.8 billion acquisition on their own.
Image source: AbbVie.
The main goal of the trial was to determine a maximum tolerated dose and a response rate. Going forward, it looks as if investigators will use 0.3 mg/kg, and dose limiting toxicity wasn't much higher than this. In other words, it may not be as poorly tolerated as most chemotherapy, but it isn't candy. The 60 patients who received between 0.2 mg/kg and 0.4 mg/kg were pooled for analysis. Just 18% of the 60-patient group showed a response, but among the patients with overexpression of DLL3 on half or more of examined tumor cells, the response rate was 39%, and median overall survival was 5.8 months.
What, then, does AbbVie see in this drug? When small-cell lung cancer patients progress after treatment with standard chemotherapy, the second treatment is often topotecan, an orally delivered chemo drug. In a previous trial with small-cell lung cancer patients who progressed after their first-line round of therapy, topotecan extended overall survival to 25.9 weeks, or about six months, a significant improvement over patients receiving only "best supportive care," which exhibited median overall survival of 13.9 weeks, or about 3.2 months.
It's an imperfect comparison, but 5.8 months in the small, mixed group of second- and third-line patients with DLL3 overexpression treated with Rova-T, compared with about six months for second-line patients receiving topotecan, a drug the FDA approved in 1996, doesn't bode well for AbbVie's expensive new candidate.
The bigger picture
Lung cancer diagnoses are less common than several others, but survival rates are so dismal they lead to more deaths than any other group of malignancies. Among lung cancers, the small-cell varieties have the worst prognosis, and there hasn't been a significant improvement in treatment options for decades. This means Rova-T's chances of winning approval are pretty good, but it might have some entrenched competition.
Image source: AbbVie.
Opdivo from Bristol-Myers Squibb (NYSE: BMY) has made an enormous impact on the treatment of non -small-cell lung cancer and might play a role in the underserved small-cell indication as well. At the same conference, Bristol-Myers presented data from a small-cell lung cancer trial with patients who progressed after at least one prior therapy. A group receiving a combination of Opdivo and Yervoy reached overall survival of 7.75 months, longer than the high-expression DLL3 Rova-T group in AbbVie's study.
One patient in this group died, but given the severity of the disease, the combination of already-approved drugs from Bristol might play a role in the small-cell lung cancer indication before AbbVie has a chance to launch Rova-T in this space.
What's next?
The recently reported results certainly support funding the larger, open-label phase 2 study that Stemcentryx began earlier this year. It's expected to enroll 154 patients whose disease progressed after receiving at least two prior therapies.
Rova-T has received an orphan-drug designation from the FDA for treatment of small-cell lung cancer. This is a sort of incentive for developing drugs to treat smaller patient populations. The designation itself means little, but if approved, the developer, now AbbVie, becomes eligible for reimbursement of a significant chunk of the expenses incurred during its development.
AbbVie submitted a breakthrough-therapy designation application to the FDA for Rova-T that could speed up the development and review process. After the less-than-exciting improvement over existing therapies exhibited in the phase 1 presentation, the agency might not grant AbbVie's $5.8 billion candidate the coveted designation.
There may be other cancer types that overexpress DLL3, and AbbVie might try developing Rova-T to treat them. However, I don't see this drug becoming the first-line standard of care in small-cell lung cancer, or recouping the enormous upfront investment AbbVie poured into it.
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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 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image source: AbbVie. One patient in this group died, but given the severity of the disease, the combination of already-approved drugs from Bristol might play a role in the small-cell lung cancer indication before AbbVie has a chance to launch Rova-T in this space. It's no secret that AbbVie (NYSE: ABBV) is overly dependant on its best-selling drug, Humira, and is trying to diversify by buying oncology assets. | Image source: AbbVie. It's no secret that AbbVie (NYSE: ABBV) is overly dependant on its best-selling drug, Humira, and is trying to diversify by buying oncology assets. AbbVie promised to pull back the curtain on Rova-T at the annual meeting of the American Society of Clinical Oncologists on Sunday. | Image source: AbbVie. It's an imperfect comparison, but 5.8 months in the small, mixed group of second- and third-line patients with DLL3 overexpression treated with Rova-T, compared with about six months for second-line patients receiving topotecan, a drug the FDA approved in 1996, doesn't bode well for AbbVie's expensive new candidate. One patient in this group died, but given the severity of the disease, the combination of already-approved drugs from Bristol might play a role in the small-cell lung cancer indication before AbbVie has a chance to launch Rova-T in this space. | Image source: AbbVie. What, then, does AbbVie see in this drug? It's no secret that AbbVie (NYSE: ABBV) is overly dependant on its best-selling drug, Humira, and is trying to diversify by buying oncology assets. |
26551.0 | 2016-06-06 00:00:00 UTC | Why Best Buy Co Inc (BBY), AbbVie Inc (ABBV), Smith & Wesson Holding Corp (SWHC) are Three of Today’s Worst Stocks | ABBV | https://www.nasdaq.com/articles/why-best-buy-co-inc-bby-abbvie-inc-abbv-smith-wesson-holding-corp-swhc-are-three-of-todays | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Traders may have been hesitant to plow into the market on Friday, but a new week brought rekindled confidence with it. Even without the help of any major economic news (and despite a mixed message from Fed Chairperson Janet Yellen ), the S&P 500 mustered a gain of 0.49% today, closing at 2109.41.
Not every name jumped on the rally bandwagon, though. Best Buy Co Inc (NYSE: BBY ), AbbVie Inc (NYSE: ABBV ) and Smith & Wesson Holding Corp (NASDAQ: SWHC ) were all left behind. Here's what went wrong for each.
AbbVie Inc (ABBV)
How does the old saying go? You pay your money, you take your chances? That's what pharmaceutical company AbbVie did in April, and now, ABBV owners are wishing the company hadn't.
At this year's annual American Society for Clinical Oncology (ASCO) conference, AbbVie delivered disappointing news this pat weekend about recurrent/refractory small-cell lung cancer (SCLC) drug Rova-T, which became part of the AbbVie portfolio two months ago when the company acquired its developer, Stemcentrx , to the tune of $5.8 billion . Rova-T didn't perform horribly in its early-stage trials, but given the price tag of the acquisition and the hype, it didn't perform well enough.
It didn't take long for analysts to pile on. Cowen and Co., for instance, downgraded ABBV from "Outperform" to "Market Perform," calling the drug's efficacy thus far "underwhelming."
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ABBV ended the day down 3.41%.
Smith & Wesson Holding Corp (SWHC)
The official quarterly numbers won't be posted until June 16th . If the ancillary data related to gun sales from last month is any indication, though, Smith & Wesson may not meet expectations when it reports its fiscal Q3 numbers late next week.
According to data from the Federal Bureau of Investigation released late last week, background checks as a precursor to firearm sales slumped to 1.87 million in May . That was 18% better than May 2015's background checks for the purpose of purchasing a gun, but it was also an eight-month low, suggesting firearm sales have peaked.
That was enough to spark a 5% selloff from SWHC, leading to an 11.8% setback for the past two trading days.
Best Buy Co Inc (BBY)
Last, but not least, Best Buy shares fell more than 3% on Monday on the heels of reports that its CEO has been shedding his stake in the company's stock…by a lot. All told, CEO Hubert Joly sold nearly 44% of his shares of BBY, bringing the total down to 511,000 as of last week. That's roughly $16 million worth left.
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Company spokesperson Jeff Shelman defended the sale, saying
"Hubert's sale is solely related to his desire to diversify his overall personal holdings. He remains firmly committed to Best Buy and is excited to lead the company in this next phase. He has absolutely no plans and no desire to explore other opportunities."
Investors, however, were less than impressed by his apparent lack of confidence in the company he's leading.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Why Best Buy Co Inc (BBY), AbbVie Inc (ABBV), Smith & Wesson Holding Corp (SWHC) are Three of Today's Worst Stocks appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Buy Co Inc (NYSE: BBY ), AbbVie Inc (NYSE: ABBV ) and Smith & Wesson Holding Corp (NASDAQ: SWHC ) were all left behind. AbbVie Inc (ABBV) How does the old saying go? That's what pharmaceutical company AbbVie did in April, and now, ABBV owners are wishing the company hadn't. | Best Buy Co Inc (NYSE: BBY ), AbbVie Inc (NYSE: ABBV ) and Smith & Wesson Holding Corp (NASDAQ: SWHC ) were all left behind. More From InvestorPlace The 5 Best Stocks to Buy for June 9 Cheap Stocks to Buy Now Under $10 The post Why Best Buy Co Inc (BBY), AbbVie Inc (ABBV), Smith & Wesson Holding Corp (SWHC) are Three of Today's Worst Stocks appeared first on InvestorPlace . AbbVie Inc (ABBV) How does the old saying go? | Best Buy Co Inc (NYSE: BBY ), AbbVie Inc (NYSE: ABBV ) and Smith & Wesson Holding Corp (NASDAQ: SWHC ) were all left behind. More From InvestorPlace The 5 Best Stocks to Buy for June 9 Cheap Stocks to Buy Now Under $10 The post Why Best Buy Co Inc (BBY), AbbVie Inc (ABBV), Smith & Wesson Holding Corp (SWHC) are Three of Today's Worst Stocks appeared first on InvestorPlace . AbbVie Inc (ABBV) How does the old saying go? | AbbVie Inc (ABBV) How does the old saying go? More From InvestorPlace The 5 Best Stocks to Buy for June 9 Cheap Stocks to Buy Now Under $10 The post Why Best Buy Co Inc (BBY), AbbVie Inc (ABBV), Smith & Wesson Holding Corp (SWHC) are Three of Today's Worst Stocks appeared first on InvestorPlace . Best Buy Co Inc (NYSE: BBY ), AbbVie Inc (NYSE: ABBV ) and Smith & Wesson Holding Corp (NASDAQ: SWHC ) were all left behind. |
26552.0 | 2016-06-06 00:00:00 UTC | Monday's ETF with Unusual Volume: DHS | ABBV | https://www.nasdaq.com/articles/mondays-etf-unusual-volume-dhs-2016-06-06 | nan | nan | The WisdomTree High Dividend Fund ETF ( DHS ) is seeing unusually high volume in afternoon trading Monday, with over 162,000 shares traded versus three month average volume of about 63,000. Shares of DHS were up about 0.5% on the day.
Components of that ETF with the highest volume on Monday were Ford Motor ( F ), trading up about 1.1% with over 14.5 million shares changing hands so far this session, and Pfizer ( PFE ), up about 0.8% on volume of over 12.4 million shares. Bristow Group ( BRS ) is the component faring the best Monday, up by about 15.2% on the day, while AbbVie ( ABBV ) is lagging other components of the WisdomTree High Dividend Fund ETF, trading lower by about 4.1%.
VIDEO: Monday's ETF with Unusual Volume: DHS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bristow Group ( BRS ) is the component faring the best Monday, up by about 15.2% on the day, while AbbVie ( ABBV ) is lagging other components of the WisdomTree High Dividend Fund ETF, trading lower by about 4.1%. The WisdomTree High Dividend Fund ETF ( DHS ) is seeing unusually high volume in afternoon trading Monday, with over 162,000 shares traded versus three month average volume of about 63,000. Components of that ETF with the highest volume on Monday were Ford Motor ( F ), trading up about 1.1% with over 14.5 million shares changing hands so far this session, and Pfizer ( PFE ), up about 0.8% on volume of over 12.4 million shares. | Bristow Group ( BRS ) is the component faring the best Monday, up by about 15.2% on the day, while AbbVie ( ABBV ) is lagging other components of the WisdomTree High Dividend Fund ETF, trading lower by about 4.1%. The WisdomTree High Dividend Fund ETF ( DHS ) is seeing unusually high volume in afternoon trading Monday, with over 162,000 shares traded versus three month average volume of about 63,000. VIDEO: Monday's ETF with Unusual Volume: DHS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bristow Group ( BRS ) is the component faring the best Monday, up by about 15.2% on the day, while AbbVie ( ABBV ) is lagging other components of the WisdomTree High Dividend Fund ETF, trading lower by about 4.1%. The WisdomTree High Dividend Fund ETF ( DHS ) is seeing unusually high volume in afternoon trading Monday, with over 162,000 shares traded versus three month average volume of about 63,000. Components of that ETF with the highest volume on Monday were Ford Motor ( F ), trading up about 1.1% with over 14.5 million shares changing hands so far this session, and Pfizer ( PFE ), up about 0.8% on volume of over 12.4 million shares. | Bristow Group ( BRS ) is the component faring the best Monday, up by about 15.2% on the day, while AbbVie ( ABBV ) is lagging other components of the WisdomTree High Dividend Fund ETF, trading lower by about 4.1%. The WisdomTree High Dividend Fund ETF ( DHS ) is seeing unusually high volume in afternoon trading Monday, with over 162,000 shares traded versus three month average volume of about 63,000. Shares of DHS were up about 0.5% on the day. |
26553.0 | 2016-06-06 00:00:00 UTC | AbbVie at ASCO: Early-Stage Data on ABT-414 and Rova-T | ABBV | https://www.nasdaq.com/articles/abbvie-asco-early-stage-data-abt-414-and-rova-t-2016-06-06 | nan | nan | AbbVie Inc.ABBV was present at the ongoing annual meeting of the American Society of Clinical Oncology (ASCO) with early-stage data on a couple of its pipeline candidates - ABT-414 and rovalpituzumab tesirine (Rova-T). Both are antibody drug conjugates (ADC) - while ABT-414 is being investigated for epidermal growth factor receptor (EGFR) amplified, recurrent glioblastoma (GBM), Rova-T is being evaluated in patients with recurrent or refractory small cell lung cancer (SCLC), identified with high expression of delta-like protein 3 (DLL3).
Safety and preliminary efficacy results from an expansion cohort of one arm (Arm C) of a three-arm open-label phase I study on ABT-414 showed no dose-limiting toxicities and frequent, reversible ocular toxicities. Moreover, about 30% of patients treated with ABT-414 as monotherapy were progression free at six months.
According to information provided by AbbVie in its press release, amplified EGFR is the most common genetic mutation associated with malignant GBM, an aggressive brain cancer. Given the median survival of 15 months after diagnosis and two-year survival rate of 30%, there remains significant unmet need for a new treatment option for this type of brain cancer.
ABT-414 is currently in a randomized phase II study in patients with EGFR-amplified GBM.
Meanwhile, there was a lot of interest in the Rova-T data, considering AbbVie shelled out $5.8 billion and could pay up to an additional $4 billion (on the achievement of milestones) to Stemcentrx under an acquisition agreement.
New data on Rova-T from a phase Ia/Ib, multicenter, open label, dose escalation study showed a confirmed overall response rate (ORR) of 39% and clinical benefit rate (stable disease or better) of 89% in patients with recurrent or refractory SCLC, identified with high expression of DLL3.
Median overall survival was 5.8 months and a one-year overall survival (OS) rate of 32% was also observed in the recurrent/refractory second- and third-line patient population.
18% of evaluable patients experienced tumor shrinkage, while 68% achieved clinical benefit (having at least stable disease). Almost all the patients who responded to the treatment had elevated levels of DLL3 in their tumor.
According to information provided by AbbVie in its press release, SCLC is an aggressive, difficult-to-treat form of cancer that accounts for roughly 13-15% of all lung cancers. The 5-year survival rate for extensive-stage SCLC is less than 5% with limited treatment options available for the more than 234,000 people diagnosed every year with SCLC.
Rova-T is currently in a single-arm phase II pivotal study in patients with DLL3-positive SCLC that has worsened despite at least two prior therapies - according to AbbVie, Rova-T has blockbuster potential and could be launched in 2018.
AbbVie is a Zacks Rank #5 (Strong Sell) stock. Some better-ranked stocks in the health care sector include Pfizer Inc. PFE , Bristol-Myers Squibb Company BMY and Johnson & Johnson JNJ . While Pfizer and Bristol-Myers are Zacks Rank #1 (Strong Buy) stocks, Johnson & Johnson is a Zacks Rank #2 (Buy) stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc.ABBV was present at the ongoing annual meeting of the American Society of Clinical Oncology (ASCO) with early-stage data on a couple of its pipeline candidates - ABT-414 and rovalpituzumab tesirine (Rova-T). According to information provided by AbbVie in its press release, amplified EGFR is the most common genetic mutation associated with malignant GBM, an aggressive brain cancer. Meanwhile, there was a lot of interest in the Rova-T data, considering AbbVie shelled out $5.8 billion and could pay up to an additional $4 billion (on the achievement of milestones) to Stemcentrx under an acquisition agreement. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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 was present at the ongoing annual meeting of the American Society of Clinical Oncology (ASCO) with early-stage data on a couple of its pipeline candidates - ABT-414 and rovalpituzumab tesirine (Rova-T). According to information provided by AbbVie in its press release, amplified EGFR is the most common genetic mutation associated with malignant GBM, an aggressive brain cancer. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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 was present at the ongoing annual meeting of the American Society of Clinical Oncology (ASCO) with early-stage data on a couple of its pipeline candidates - ABT-414 and rovalpituzumab tesirine (Rova-T). According to information provided by AbbVie in its press release, amplified EGFR is the most common genetic mutation associated with malignant GBM, an aggressive brain cancer. | AbbVie Inc.ABBV was present at the ongoing annual meeting of the American Society of Clinical Oncology (ASCO) with early-stage data on a couple of its pipeline candidates - ABT-414 and rovalpituzumab tesirine (Rova-T). According to information provided by AbbVie in its press release, amplified EGFR is the most common genetic mutation associated with malignant GBM, an aggressive brain cancer. Meanwhile, there was a lot of interest in the Rova-T data, considering AbbVie shelled out $5.8 billion and could pay up to an additional $4 billion (on the achievement of milestones) to Stemcentrx under an acquisition agreement. |
26554.0 | 2016-06-04 00:00:00 UTC | Is AbbVie's Stock Too Risky? | ABBV | https://www.nasdaq.com/articles/abbvies-stock-too-risky-2016-06-04 | nan | nan | Since being spun-off from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has blossomed into a top dividend growth stock. For instance, the drugmaker has earned the coveted dividend aristocrat status as a result of its strong shareholder rewards program, and it's posted industry-leading levels of revenue growth for most of its short history as an independent entity.
Despite its impressive track record, though, AbbVie is entering a transitional period as a result of having its top-selling anti-inflammatory drug, Humira, go off patent at the end of this year. With this in mind, let's take a deeper look to consider if investors should remain patient with this drugmaker, or whether it's time to hit the exits.
AbbVie's biggest risk factors may not be what you think
Truth be told, Humira's looming patent expiration probably isn't a major risk factor for AbbVie's shareholders right now for a couple of reasons -- although it is the topic that garners the most ink when analysts discuss the stock's risk-to-reward ratio. First, AbbVie has cobbled together an impressive array of additional patents that should keep biosimilars off the market until at least 2022 -- that is, unless the ongoing and presumably forthcoming legal challenges to Humira's IP bear fruit.
Even then, there's a good chance that biosimilars wouldn't make a huge dent in Humira's sales because copycat biologics simply don't come with much of a discount, meaning that doctors have little incentive to prescribe an unfamiliar knock-off drug that hasn't gone through rigorous clinical testing.
That doesn't mean AbbVie's stock isn't risky. In fact, AbbVie's risk profile has ballooned over the past year or so, largely because of management's efforts to fight off the biosimilar threat to Humira. Specifically, the two biggest risks facing AbbVie's shareholders at present are the weak competitive moats of Imbruvica and Viekira Pak, as well as the company's sky-high debt load.
Here's why AbbVie's risk profile has been growing by leaps and bounds
Since becoming an independent entity, AbbVie's management has been tasked with building a portfolio of drugs that could withstand the entrance of biosimilar versions of Humira. To do so, AbbVie initially targeted the high-growth hepatitis C market by launching Viekira -- the drugmaker's answer to Gilead Sciences '(NASDAQ: GILD) megablockbuster hep C franchise composed of Sovaldi and Harvoni.
AbbVie then bought its next franchise-level product by offering $21 billion for a buyout of Pharmacyclics and its Bruton's tyrosine kinase (BTK) inhibitor Imbruvica that's indicated for multiple blood-based disorders. Unfortunately, these two recent additions to AbbVie's product portfolio may not be the long-term answer to Humira's patent expiration.
Image source: Pharmacyclics.
One competitor that's not making it easy for AbbVie or Gilead to succeed in the hepatitis C market is Merck (NYSE: MRK) and its new hep C drug, Zepatier. Merck decided to significantly undercut both AbbVie and Gilead's stated list prices for their respective hep C drugs in an effort to rapidly gain market share.
Source: AbbVie
As Zepatier offers a superior dosing regimen (1 v. up to 6 pills a day) and a more palatable list price ($54,600 v. $83,319 for a 12-week regimen) compared to Viekira, AbbVie's hep C revenues could drop markedly within the next year or so.
Imbruvica, for its part, is considered to be a game-changing drug for several life-threatening blood disorders such as chronic lymphocytic leukemia, mantle cell lymphoma, and Waldenstrom's macroglobulinemia. However, the drug is known to produce a host of problematic side effects, such as bleeding, rash, and atrial fibrillation. Researchers are thus exploring the use so-called "second-generation" BTK inhibitors that are designed to be more potent and safer than Imbruvica, which poses a major threat to Imbruvica's long-term sales forecasts.
AstraZeneca (NYSE: AZN) , for example, recently acquired 55% of privately held Acerta Pharma to gain access to its second-generation BTK inhibitor, acalabrutinib, that's expected to compete directly against Imbruvica across a host of indications. Adding insult to injury, Astra has the right to buy Acerta lock, stock, and barrel for roughly one-third of what AbbVie paid for Pharmacyclics.
Finally, AbbVie hasn't been shy about attempting to buy its way out of the Humira patent cliff, amassing roughly $32 billion in debt in the process. The net result is that AbbVie sports an unsightly debt-to-equity ratio of 687% right now. Putting this metric into context, the average debt-to-equity ratio among major drugmakers stood at 84.8% at the end of the first quarter of 2016, showing that AbbVie has worrisome level of debt, even for a biopharma company.
Despite this heavy debt load, though, AbbVie is still in strong financial shape, evinced by its 12-month, trailing interest coverage ratio of 10.2 that implies the company makes enough money to comfortably cover its interest payments. So, the real question is whether or not the drugmaker can either maintain, or perhaps grow, its current revenue levels to keep its heavy debt load from becoming a problem later on down the road.
Is AbbVie too risky?
While the financial media hasn't discussed these specific risk factors to a large degree, they're not exactly a secret. AbbVie's management, for instance, has repeatedly attempted to refocus investors' attention on its emerging late-stage clinical pipeline that could possibly generate multiple future blockbusters down the road. For example, the company's brass has been touting the experimental JAK1 inhibitor ABT-494 for its tremendous promise as an important new treatment for both rheumatoid arthritis and Crohn's disease.
Even so, AbbVie's $21 billion buyout of Pharmacylics is starting to look like a major misstep that could weigh on the biotech's shares for years to come, and its foray into the hep C market doesn't appear to be a viable long-term value driver for the company. After all, Astra struck a far more favorable deal to acquire the commercial rights to acalabrutinib, and this experimental drug may significantly erode Imbruvica's market share going forward.
The bottom line is that the onus to create long-term shareholder value is now squarely on AbbVie's clinical pipeline, as the drugmaker's peak sales projections for Imbruvica are looking increasingly suspect. That's a risky proposition for a company with as much debt as AbbVie, which is why investors may want to consider watching this dividend aristocrat from the safety of the sidelines for the time being.
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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. | To do so, AbbVie initially targeted the high-growth hepatitis C market by launching Viekira -- the drugmaker's answer to Gilead Sciences '(NASDAQ: GILD) megablockbuster hep C franchise composed of Sovaldi and Harvoni. Since being spun-off from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has blossomed into a top dividend growth stock. Despite its impressive track record, though, AbbVie is entering a transitional period as a result of having its top-selling anti-inflammatory drug, Humira, go off patent at the end of this year. | AbbVie's biggest risk factors may not be what you think Truth be told, Humira's looming patent expiration probably isn't a major risk factor for AbbVie's shareholders right now for a couple of reasons -- although it is the topic that garners the most ink when analysts discuss the stock's risk-to-reward ratio. Merck decided to significantly undercut both AbbVie and Gilead's stated list prices for their respective hep C drugs in an effort to rapidly gain market share. Since being spun-off from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has blossomed into a top dividend growth stock. | AbbVie's biggest risk factors may not be what you think Truth be told, Humira's looming patent expiration probably isn't a major risk factor for AbbVie's shareholders right now for a couple of reasons -- although it is the topic that garners the most ink when analysts discuss the stock's risk-to-reward ratio. Here's why AbbVie's risk profile has been growing by leaps and bounds Since becoming an independent entity, AbbVie's management has been tasked with building a portfolio of drugs that could withstand the entrance of biosimilar versions of Humira. Source: AbbVie As Zepatier offers a superior dosing regimen (1 v. up to 6 pills a day) and a more palatable list price ($54,600 v. $83,319 for a 12-week regimen) compared to Viekira, AbbVie's hep C revenues could drop markedly within the next year or so. | That doesn't mean AbbVie's stock isn't risky. Merck decided to significantly undercut both AbbVie and Gilead's stated list prices for their respective hep C drugs in an effort to rapidly gain market share. Since being spun-off from Abbott Laboratories in 2013, AbbVie (NYSE: ABBV) has blossomed into a top dividend growth stock. |
26555.0 | 2016-06-03 00:00:00 UTC | Stock Market News for June 03, 2016 | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-june-03-2016-2016-06-03 | nan | nan | Benchmarks finished in the green on Thursday following encouraging U.S. private sector jobs data and gains in healthcare stocks. Moreover, late rebound in oil prices following a decline in crude inventories also boosted investor sentiment. All the three key U.S. indexes ended in positive territory with the S&P 500 settled at its highest level since Nov 3, 2015 and the Nasdaq registered seven straight session rise.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) increased 0.3%, to close at 17,838.56. The S&P 500 also rose 0.3% to close at 2,105.26. The tech-laden Nasdaq Composite Index closed at 4,971.36, gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 4% to settle at 13.63. A total of around 6.4 billion shares were traded on Thursday, lower than the last 20-session average of 7 billion shares. Advancers outpaced declining stocks on the NYSE. For 63% stocks that advanced, 34% declined.
Yesterday, a report from Automatic Data Processing, Inc. ( ADP ) revealed that private sector employers added 173,000 jobs in May, which was higher than April's readings. Also, job additions for April were revised up by 10,000 to 166,000.
The U.S Department of Labor reported that seasonally adjusted initial claims decreased 1,000 to 267,000 in the week ending May 28, posting third straight weekly fall. Initial claims were also less than the consensus estimate of 268,000.
Initial claims remained below 300,000 for 65 consecutive weeks, its longest stretch since 1973. Also, the 4-week moving average came in at 276,750 last week, lower than 278,500 reported for the week ending May 21. Rise in number of jobs in the private sector and decline in initial claims highlighted economic growth, which in turn had a positive impact on investor sentiment.
In company news, Johnson & Johnson's ( JNJ ) shares increased 1.5% after the company said that it will buy Vogue International LLC for $3.3 billion cash. Moreover, shares of Humana Inc. ( HUM ) and Aetna Inc. ( AET ) jumped 5.6% and 4.1%, respectively, on news that the latter have sold $13 billion bonds to help its $34 billion deal to acquire Humana. Gains in Johnson & Johnson, Humana and Aetna led the Health Care Select Sector SPDR ETF (XLV) to increase 1.3%, becoming the biggest gainer among the S&P 500 sectors.
Key stocks from the healthcare sector including AbbVie Inc. ( ABBV ), Medtronic plc ( MDT ), Bristol-Myers Squibb Company ( BMY ), Allergan plc ( AGN ) and Amgen Inc. ( AMGN ) increased 3.6%, 3.1%, 1.6%, 2% and 1.2%, respectively. Dow components Merck & Co. Inc. ( MRK ), Pfizer Inc. ( PFE ) and UnitedHealth Group Incorporated ( UNH ) rose 0.9%, 0.4% and 1.1%, respectively.
Gains in healthcare stocks offset losses in energy stocks. Earlier on the day, oil prices declined after OPEC members failed to come to any agreement regarding crude production freeze in yesterday's meeting in Vienna, which weighed on energy sector.
However, oil prices made a late recovery to end in positive territory after the U.S. Energy Information Administration (EIA) reported that the U.S. commercial crude oil inventories fell 1.4 million barrels to 535.7 million for the week ended May 27. It was in contrast to an increase of 2.4 million barrels reported by the American Petroleum Institute (API) a day earlier.
Moreover, total motor gasoline inventories declined by 1.5 million barrels last week. Fall in oil and gasoline inventories had a positive impact on oil prices. Both the WTI and Brent crude increased 0.3% and 0.6% to $49.17 per barrel and $50.04 a barrel, respectively.
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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. | Key stocks from the healthcare sector including AbbVie Inc. ( ABBV ), Medtronic plc ( MDT ), Bristol-Myers Squibb Company ( BMY ), Allergan plc ( AGN ) and Amgen Inc. ( AMGN ) increased 3.6%, 3.1%, 1.6%, 2% and 1.2%, respectively. Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article The Dow Jones Industrial Average (DJI) increased 0.3%, to close at 17,838.56. | Key stocks from the healthcare sector including AbbVie Inc. ( ABBV ), Medtronic plc ( MDT ), Bristol-Myers Squibb Company ( BMY ), Allergan plc ( AGN ) and Amgen Inc. ( AMGN ) increased 3.6%, 3.1%, 1.6%, 2% and 1.2%, respectively. Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. However, oil prices made a late recovery to end in positive territory after the U.S. Energy Information Administration (EIA) reported that the U.S. commercial crude oil inventories fell 1.4 million barrels to 535.7 million for the week ended May 27. | Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Key stocks from the healthcare sector including AbbVie Inc. ( ABBV ), Medtronic plc ( MDT ), Bristol-Myers Squibb Company ( BMY ), Allergan plc ( AGN ) and Amgen Inc. ( AMGN ) increased 3.6%, 3.1%, 1.6%, 2% and 1.2%, respectively. The U.S Department of Labor reported that seasonally adjusted initial claims decreased 1,000 to 267,000 in the week ending May 28, posting third straight weekly fall. | Key stocks from the healthcare sector including AbbVie Inc. ( ABBV ), Medtronic plc ( MDT ), Bristol-Myers Squibb Company ( BMY ), Allergan plc ( AGN ) and Amgen Inc. ( AMGN ) increased 3.6%, 3.1%, 1.6%, 2% and 1.2%, respectively. Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Gains in healthcare stocks offset losses in energy stocks. |
26556.0 | 2016-06-03 00:00:00 UTC | 3 Reasons AbbVie's and Biogen's Latest MS Drug Might Flop | ABBV | https://www.nasdaq.com/articles/3-reasons-abbvies-and-biogens-latest-ms-drug-might-flop-2016-06-03 | nan | nan | For a big pharma with about $23 billion in annual revenue and the widest margins in its industry, AbbVie (NYSE: ABBV) stock has been awfully volatile over the past couple of years. Competitors are lining up to take on its top product, Humira, so these jitters are clearly a symptom of the biosimilar blues.
Humira, a popular anti-inflammatory, is still responsible for about 60% of the company's total revenue, but a flurry of acquisitions and collaborations are making progress toward reducing its Humira dependence. However, a collaboration with Biogen (NASDAQ: BIIB) to commercialize multiple sclerosis drug Zinbryta probably won't be one of them.
The blue-chip biotech and AbbVie are basically splitting profits and losses down the middle. After running the largest and longest head-to-head clinical trial in multiple sclerosis history, the partners may not break even on Zinbryta in the years ahead. Here are a few reasons why.
1. FDA warnings
Black-box warnings will do to a drug launch what a cup of sugar will do to your gas mileage. These are the FDA's most severe warnings, and the Zinbryta salesforce has some pretty serious ones to deal with.
At the top of the list is risk of severe liver injury, with cases reported up to four months after the last dose. Before a patient can begin Zinbryta, physicians need to be certain their liver is in tip-top condition, and they must conduct monthly blood tests for six months following the patient's last dose.
Because of its safety profile, the FDA recommends reserving Zinbryta for patients who continue relapsing after treatment with two or more multiple sclerosis drugs.
2. A small niche
Zinbryta's black box also includes a number of immune-related disorders, but one important warning missing from the label is the risk of an opportunistic brain infection, progressive multifocal leukoencephalopathy, or PML. This black-box warning is on Biogen's Tysabri, and its more recent inclusion on Tecfidera's (non-black-box) list of warnings and precautions has slowed that drug's growth trajectory significantly.
There are a small group of patients who continue relapsing after trying safer, less effective drugs who are also at risk of developing PML. For those patients, Sanofi 's Lemtrada is an option. However, this drug won FDA approval back in 2001 but is selling at an annualized run rate of about $394 million.
Lemtrada's black-box warnings make Zinbryta's seem like a walk in the park. That isn't its only disadvantage. When it comes to reducing lesions detected by MRI scans, Sanofi's drug failed to significantly outperform the standard of care, while Zinbryta showed a 54% reduction. However, when it comes to relapses, 78% of patients on Lemtrada remained relapse-free versus 67% in the Zinbryta trial.
While these were both tested against a standard of care, they weren't head-to-head studies, so these comparisons need to be taken with a grain of salt. However, I wouldn't be surprised if Zinbryta pressures sales of Lemtrada for about a year.
3. A new standard
AbbVie's and Sanofi's sales of Zinbryta and Lemtrada could find themselves up against a drug from Roche (NASDAQOTH: RHHBY) that threatens to redefine treatment of relapsing multiple sclerosis.
Image source: Roche.
The Swiss drugmaker's still-experimental Ocrevus is the first drug ever to significantly slow progression in the 10% to 15% of multiple sclerosis patients with the steadily progressing form of the disease. Roche plans to file an application soon for this and the larger relapsing indication all these previously mentioned drugs compete in.
While the FDA will grant an expedited review to the application for treatment of primary progressive multiple sclerosis, Ocrevus could earn approval for the relapsing indication just less than a year from now.
Zinbryta reduced the annualized rate of relapse by 45% over the standard of care. That's slightly less impressive than Ocrevus' performance against a similar drug. When it comes to watery or fatty brain lesions, patients receiving Ocrevus showed some impressive reductions versus the standard of care in two separate trials, detailed here .
Again, these weren't head-to-head trials between Ocrevus and Zinbryta, but Roche's drug looks as if it has Zinbryta beat in terms of efficacy. If it earns approval without black-box warnings, as is widely expected, there will be little reason for patients to risk treatment with the drug from AbbVie and Biogen.
Abbvie's top-line growth following its split from Abbott has been impressive. First-quarter sales rose a whopping 31.9% over the same period last year through expansion of its cancer program, and the recent approval of Venclexta is another giant step forward. With plenty of growth drivers to look forward to, AbbVie is on sale , but I'm afraid Zinbryta isn't one of the bargains.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A new standard AbbVie's and Sanofi's sales of Zinbryta and Lemtrada could find themselves up against a drug from Roche (NASDAQOTH: RHHBY) that threatens to redefine treatment of relapsing multiple sclerosis. For a big pharma with about $23 billion in annual revenue and the widest margins in its industry, AbbVie (NYSE: ABBV) stock has been awfully volatile over the past couple of years. The blue-chip biotech and AbbVie are basically splitting profits and losses down the middle. | For a big pharma with about $23 billion in annual revenue and the widest margins in its industry, AbbVie (NYSE: ABBV) stock has been awfully volatile over the past couple of years. The blue-chip biotech and AbbVie are basically splitting profits and losses down the middle. A new standard AbbVie's and Sanofi's sales of Zinbryta and Lemtrada could find themselves up against a drug from Roche (NASDAQOTH: RHHBY) that threatens to redefine treatment of relapsing multiple sclerosis. | A new standard AbbVie's and Sanofi's sales of Zinbryta and Lemtrada could find themselves up against a drug from Roche (NASDAQOTH: RHHBY) that threatens to redefine treatment of relapsing multiple sclerosis. For a big pharma with about $23 billion in annual revenue and the widest margins in its industry, AbbVie (NYSE: ABBV) stock has been awfully volatile over the past couple of years. The blue-chip biotech and AbbVie are basically splitting profits and losses down the middle. | A new standard AbbVie's and Sanofi's sales of Zinbryta and Lemtrada could find themselves up against a drug from Roche (NASDAQOTH: RHHBY) that threatens to redefine treatment of relapsing multiple sclerosis. If it earns approval without black-box warnings, as is widely expected, there will be little reason for patients to risk treatment with the drug from AbbVie and Biogen. For a big pharma with about $23 billion in annual revenue and the widest margins in its industry, AbbVie (NYSE: ABBV) stock has been awfully volatile over the past couple of years. |
26557.0 | 2016-06-02 00:00:00 UTC | 2 Top Stocks for Retirees | ABBV | https://www.nasdaq.com/articles/2-top-stocks-retirees-2016-06-02 | nan | nan | You've spent your over four decades in the working world, toiling to make sure you and your family were taken care of. Once you enter retirement, it's time to pursue your passions, spend time with family and friends, and take a nap whenever you want to. The very last thing you want to do is worry about money.
But with the typical American retiring at 62 and living until 82 (male) to 85 (female) years old, your nest egg needs to be able to provide for at least 20 years. That's why selecting the very best stocks for your retirement portfolio is so important.
Below are two stocks that share three important characteristics for retirees: They have sizable and healthy dividends, they trade for a fair price, and -- most importantly -- they have significant competitive advantages that should make them just as relevant two decades from now.
What makes Verizon such a good stock for retirees?
There are only four major telecoms left in America, and none has a larger market share than Verizon (NYSE: VZ) . Here's where the four -- including AT&T , Sprint , and T-Mobile -- currently stand, according to Statista.
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Currently, the company pays out a 4.46% dividend yield, and that yield is very healthy. Over the past year, Verizon took in $18.7 billion in free cash flow, but used just 46% of that to pay its dividend. In other words, the dividend is very safe if times get tough for the economy. And if they don't, there's lots of room for growth. In fact, the company has increased its payout every year for the past 11 years.
The stock is also fairly priced, trading at just 11 times free cash flow. The broader market, for comparison's sake, trades for 24 times earnings. Of course, part of that is because Verizon is a slower grower. But that should be just fine for retirees, who can benefit by reinvesting their dividends at these prices and reap the benefits of future advances in the stock price.
Finally, Verizon has a sizable moat surrounding it. The telecom industry is highly regulated and -- as I said before -- Verizon has the largest chunk of it. After buying out Vodafone 's(NASDAQ: VOD) stake in Verizon Wireless, one out of every three wireless customers are on Verizon's network. Given the ubiquity of mobile connectivity, and its importance to our everyday lives, I don't see Verizon's business declining any time soon.
Is AbbVie really a good retirement portfolio candidate?
One of my goals here is to offer a diverse set of choices. While Verizon is a huge telecom, AbbVie (NYSE: ABBV) is one of the nation's largest pharmaceutical companies. The company's three most important drugs on the market today are Humira (rheumatoid arthritis), Imbruvica (cancer), and Viekira Pak (Hepatitis C).
Of course, there are patent expirations on all such drugs, which reduces the company's competitive advantages. But there are two things that lead me to believe AbbVie will still be an important player 20 years from now. Over the short term, the company has three promising drugs either in its pipeline or about to be offered on the market: venetoclax (leukemia), Empliciti (multiple myeloma), and ZYNBRYTA (multiple sclerosis).
Over a longer time frame, I think Abbvie's cash position gives it its most important advantage. Currently, the company is sitting on $8.6 billion in cash. While it also has a sizable debt load, it churned out $7.6 billion in free cash flow -- more than enough to cover its obligations. That amount of cash means AbbVie can buy out smaller companies that develop breakthrough technologies and use its size and distribution network to take these newer drugs to market.
Given that optionality, the company's price tag of just 13 times trailing free cash flow seems more than fair. Analysts seem to think so, too -- as the company currently has a price-to-earnings growth ratio of 0.80 (anything below 1.0 means it's considered cheap).
Just as importantly, AbbVie has a very healthy 3.6% dividend yield. Over the past year, only 45% of the aforementioned free cash flow was used on its dividend. As with Verizon, this means it is a safe dividend with lots of room for growth.
While there's always a threat of not coming out with a blockbuster drug, AbbVie's position in the market and its cash cushion should provide enough of a moat to make it a solid dividend stock for any retiree's portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That amount of cash means AbbVie can buy out smaller companies that develop breakthrough technologies and use its size and distribution network to take these newer drugs to market. While there's always a threat of not coming out with a blockbuster drug, AbbVie's position in the market and its cash cushion should provide enough of a moat to make it a solid dividend stock for any retiree's portfolio. Is AbbVie really a good retirement portfolio candidate? | While there's always a threat of not coming out with a blockbuster drug, AbbVie's position in the market and its cash cushion should provide enough of a moat to make it a solid dividend stock for any retiree's portfolio. Is AbbVie really a good retirement portfolio candidate? While Verizon is a huge telecom, AbbVie (NYSE: ABBV) is one of the nation's largest pharmaceutical companies. | While there's always a threat of not coming out with a blockbuster drug, AbbVie's position in the market and its cash cushion should provide enough of a moat to make it a solid dividend stock for any retiree's portfolio. Is AbbVie really a good retirement portfolio candidate? While Verizon is a huge telecom, AbbVie (NYSE: ABBV) is one of the nation's largest pharmaceutical companies. | Is AbbVie really a good retirement portfolio candidate? While Verizon is a huge telecom, AbbVie (NYSE: ABBV) is one of the nation's largest pharmaceutical companies. But there are two things that lead me to believe AbbVie will still be an important player 20 years from now. |
26558.0 | 2016-06-01 00:00:00 UTC | Biotech Stock Roundup: Sarepta Shoots Up on FDA Delay, Ionis Falls on Pipeline News | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-sarepta-shoots-fda-delay-ionis-falls-pipeline-news-2016-06-01 | nan | nan | This week, the biotech sector saw quite a few updates on the regulatory and pipeline front. While companies like Sarepta SRPT , Biogen BIIB , AbbVie ABBV and Intercept ICPT came out with encouraging news, Ionis IONS suffered a setback.
Recap of the Week's Most Important Stories
1. Sarepta's shares shot up 26.7% on news that the FDA will not be able to deliver a decision regarding the approval status of the company's experimental Duchenne muscular dystrophy (DMD) treatment, eteplirsen, by May 26. The agency informed the company that it continues to review the NDA and will return with a decision in a timely manner. The news has raised hopes among investors as well as the medical community that the agency may very well decide to approve eteplirsen (Read more: Why is Sarepta Therapeutics Stock Soaring 20% Today? ).
We remind investors that DMD drugs have not really had much success on the regulatory front so far. While PTC Therapeutics had received a "refusal to file" letter from the FDA for its experimental DMD treatment, Translarna, BioMarin's Kyndrisa received a complete response letter (CRL) earlier this year. BioMarin, in fact, announced this week that it does not intend to continue with the development of Kyndrisa. The company withdrew its marketing application in the EU following discussions with the Committee for Medicinal Products for Human Use (CHMP) which indicated the drug would receive a negative opinion from the CHMP.
2. Across the pond, quite a few drugs received positive CHMP opinions including Biogen's Tysabri (label expansion for use in relapsing-remitting multiple sclerosis patients with highly active disease activity despite a full and adequate course of treatment with at least one disease modifying therapy) as well as Gilead's GILD experimental hepatitis C virus (HCV) drug, Epclusa (Read more: Gilead's New HCV Drug Epclusa Wins CHMP Backing ). Amgen's cancer drug Kyprolis and AbbVie's flagship product Humira also got positive CHMP opinions for label expansions (Read more: Merck, AbbVie & Amgen Drugs a Step Closer to EU Approval ).
3. The FDA granted approval to Biogen and AbbVie's multiple sclerosis (MS) treatment Zinbryta making it the first once-monthly, self-administered MS treatment to be approved. However, the label has a black box warning regarding the risk of hepatic injury, including autoimmune hepatitis, and other immune-mediated disorders. Moreover, only prescribers, pharmacies and patients enrolled in the Zinbryta Risk Evaluation and Mitigation Strategy (REMS) Program, which includes required monthly liver function tests, will have access to the treatment. (Read more: Biogen & AbbVie's Multiple Sclerosis Drug Gets FDA Nod ).
AbbVie's cancer treatment, Imbruvica, also gained EU approval for the first-line treatment of chronic lymphocytic leukemia (CLL) patients. The label expansion was expected as the CHMP had recently issued a positive opinion for this indication. With this label expansion, Imbruvica can now be used across all lines of CLL.
4. Ionis' shares were down 39.4% on news that Glaxo, which has the option to exclusively license Ionis' IONIS-TTRRx, has decided against initiating a phase III outcome study in patients with TTR amyloid cardiomyopathy. The study had been placed on clinical hold earlier this year due to safety findings in the ongoing NEURO-TTR study. (Read more: Ionis Down, Glaxo Dumps IONIS-TTRRx Phase III Study Plans ).
5. Intercept's Ocaliva gained accelerated approval in the U.S. for the treatment of primary biliary cholangitis (PBC) making it the first new medicine to be approved for PBC in almost two decades. Shares were up on the news though approval was largely expected as an FDA advisory panel had voted unanimously in favor of approving the drug. (Read more: Intercept's Liver Dug Ocaliva Approved by the FDA ). Of course, Ocaliva's main potential lies in the nonalcoholic steatohepatitis (NASH) market which represents blockbuster potential.
Vertex VRTX also got some good news with the FDA granting priority review for the company's regulatory application for the use of cystic fibrosis drug Orkambi in a children aged 6 to 11 years. The FDA will issue a response regarding the label expansion by Sep 30.
Performance
All major biotech stocks performed well last week with Biogen gaining the most (6.15%). Over the last six months, Biogen was up 1% while Vertex lost 27.99% during this period.
The NASDAQ Biotechnology Index was up 2.79% over the last four trading days (See the last biotech stock roundup here: XenoPort Soars on Acquisition Deal, AbbVie Crohn's Disease Drug Fares Well ).
What's Next in the Biotech World?
Several biotech companies will be attending the annual meeting of the American Society of Clinical Oncology (ASCO) to showcase data on their cancer treatments.
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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 NASDAQ Biotechnology Index was up 2.79% over the last four trading days (See the last biotech stock roundup here: XenoPort Soars on Acquisition Deal, AbbVie Crohn's Disease Drug Fares Well ). While companies like Sarepta SRPT , Biogen BIIB , AbbVie ABBV and Intercept ICPT came out with encouraging news, Ionis IONS suffered a setback. Amgen's cancer drug Kyprolis and AbbVie's flagship product Humira also got positive CHMP opinions for label expansions (Read more: Merck, AbbVie & Amgen Drugs a Step Closer to EU Approval ). | The FDA granted approval to Biogen and AbbVie's multiple sclerosis (MS) treatment Zinbryta making it the first once-monthly, self-administered MS treatment to be approved. Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report IONIS PHARMACT (IONS): Free Stock Analysis Report SAREPTA THERAP (SRPT): Free Stock Analysis Report INTERCEPT PHARM (ICPT): Free Stock Analysis Report To read this article on Zacks.com click here. While companies like Sarepta SRPT , Biogen BIIB , AbbVie ABBV and Intercept ICPT came out with encouraging news, Ionis IONS suffered a setback. | Amgen's cancer drug Kyprolis and AbbVie's flagship product Humira also got positive CHMP opinions for label expansions (Read more: Merck, AbbVie & Amgen Drugs a Step Closer to EU Approval ). Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report IONIS PHARMACT (IONS): Free Stock Analysis Report SAREPTA THERAP (SRPT): Free Stock Analysis Report INTERCEPT PHARM (ICPT): Free Stock Analysis Report To read this article on Zacks.com click here. While companies like Sarepta SRPT , Biogen BIIB , AbbVie ABBV and Intercept ICPT came out with encouraging news, Ionis IONS suffered a setback. | While companies like Sarepta SRPT , Biogen BIIB , AbbVie ABBV and Intercept ICPT came out with encouraging news, Ionis IONS suffered a setback. Amgen's cancer drug Kyprolis and AbbVie's flagship product Humira also got positive CHMP opinions for label expansions (Read more: Merck, AbbVie & Amgen Drugs a Step Closer to EU Approval ). The FDA granted approval to Biogen and AbbVie's multiple sclerosis (MS) treatment Zinbryta making it the first once-monthly, self-administered MS treatment to be approved. |
26559.0 | 2016-06-01 00:00:00 UTC | SSO, AMGN, CVS, ABBV: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/sso-amgn-cvs-abbv-large-outflows-detected-etf-2016-06-01 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $39.8 million dollar outflow -- that's a 2.6% decrease week over week (from 23,200,000 to 22,600,000). Among the largest underlying components of SSO, in trading today Amgen Inc (Symbol: AMGN) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $49.31 per share, with $69.03 as the 52 week high point - that compares with a last trade of $65.92. 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 SSO, in trading today Amgen Inc (Symbol: AMGN) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $39.8 million dollar outflow -- that's a 2.6% decrease week over week (from 23,200,000 to 22,600,000). 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 SSO, in trading today Amgen Inc (Symbol: AMGN) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $49.31 per share, with $69.03 as the 52 week high point - that compares with a last trade of $65.92. 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 SSO, in trading today Amgen Inc (Symbol: AMGN) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $39.8 million dollar outflow -- that's a 2.6% decrease week over week (from 23,200,000 to 22,600,000). For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $49.31 per share, with $69.03 as the 52 week high point - that compares with a last trade of $65.92. | Among the largest underlying components of SSO, in trading today Amgen Inc (Symbol: AMGN) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.5%, and AbbVie Inc. (Symbol: ABBV) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $39.8 million dollar outflow -- that's a 2.6% decrease week over week (from 23,200,000 to 22,600,000). For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $49.31 per share, with $69.03 as the 52 week high point - that compares with a last trade of $65.92. |
26560.0 | 2016-05-31 00:00:00 UTC | Merck, AbbVie & Amgen Drugs a Step Closer to EU Approval | ABBV | https://www.nasdaq.com/articles/merck-abbvie-amgen-drugs-step-closer-eu-approval-2016-05-31 | nan | nan | Merck & Co. Inc.MRK , AbbVie Inc. ABBV and Amgen Inc. AMGN are all a step closer to gaining EU approval for their regulatory applications for Zepatier, Humira and Kyprolis, respectively. The companies announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has issued positive opinions regarding their respective drugs.
CHMP Positive on Merck's HCV Drug, Zepatier
Merck is looking to get its hepatitis C virus treatment, Zepatier, approved in the EU. Zepatier is already approved in the U.S. where it was launched earlier this year with first quarter 2016 sales coming in at $50 million. With the CHMP issuing a positive opinion, approval should come in mid-2016.
Merck said that it continues to work on achieving manufacturing readiness to supply the EU market. On its first quarter call, the company had said that the EMA cited Merck's third-party manufacturer for issues largely related to inadequate record keeping and the need for improvement in their quality management systems.
The company currently expects the European launch in the fourth quarter of 2016 or the first quarter of 2017.
Positive Opinion for AbbVie's Humira Label Expansion
AbbVie is looking to expand the label of its flagship product, Humira, for the treatment of non-infectious intermediate, posterior and panuveitis in adult patients who have had an inadequate response to corticosteroids or in whom corticosteroid treatment is inappropriate.
Approval would make Humira the first biologic treatment option in the EU for certain patients with non-infectious intermediate, posterior and panuveitis.
Currently approved for several indications, Humira is AbbVie's top revenue grosser with 2015 sales coming in at $14 billion. The product continues to see strong growth in the dermatology and gastroenterology markets.
Amgen's Kyprolis Gets Positive CHMP Opinion
Amgen's cancer treatment, Kyprolis, also got a positive CHMP opinion for expanding the label to include treatment in combination with dexamethasone alone for adult patients with multiple myeloma who have received at least one prior therapy.
Kyprolis' label was expanded in the U.S. earlier this year for this indication. With both the ASPIRE and ENDEAVOR data in its U.S. label, Kyprolis looks well-positioned to gain share.
Merck and Amgen are both Zacks Rank #3 (Hold) stocks while AbbVie is a Zacks Rank #5 (Strong Sell) stock. A better-ranked stock in the health care sector is Pfizer, Inc. PFE , a Zacks Rank #1 (Strong Buy) company.
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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. | Merck & Co. Inc.MRK , AbbVie Inc. ABBV and Amgen Inc. AMGN are all a step closer to gaining EU approval for their regulatory applications for Zepatier, Humira and Kyprolis, respectively. Positive Opinion for AbbVie's Humira Label Expansion AbbVie is looking to expand the label of its flagship product, Humira, for the treatment of non-infectious intermediate, posterior and panuveitis in adult patients who have had an inadequate response to corticosteroids or in whom corticosteroid treatment is inappropriate. Currently approved for several indications, Humira is AbbVie's top revenue grosser with 2015 sales coming in at $14 billion. | Positive Opinion for AbbVie's Humira Label Expansion AbbVie is looking to expand the label of its flagship product, Humira, for the treatment of non-infectious intermediate, posterior and panuveitis in adult patients who have had an inadequate response to corticosteroids or in whom corticosteroid treatment is inappropriate. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report MERCK & CO INC (MRK): 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. Merck & Co. Inc.MRK , AbbVie Inc. ABBV and Amgen Inc. AMGN are all a step closer to gaining EU approval for their regulatory applications for Zepatier, Humira and Kyprolis, respectively. | Positive Opinion for AbbVie's Humira Label Expansion AbbVie is looking to expand the label of its flagship product, Humira, for the treatment of non-infectious intermediate, posterior and panuveitis in adult patients who have had an inadequate response to corticosteroids or in whom corticosteroid treatment is inappropriate. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report MERCK & CO INC (MRK): 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. Merck & Co. Inc.MRK , AbbVie Inc. ABBV and Amgen Inc. AMGN are all a step closer to gaining EU approval for their regulatory applications for Zepatier, Humira and Kyprolis, respectively. | Merck & Co. Inc.MRK , AbbVie Inc. ABBV and Amgen Inc. AMGN are all a step closer to gaining EU approval for their regulatory applications for Zepatier, Humira and Kyprolis, respectively. Merck and Amgen are both Zacks Rank #3 (Hold) stocks while AbbVie is a Zacks Rank #5 (Strong Sell) stock. Positive Opinion for AbbVie's Humira Label Expansion AbbVie is looking to expand the label of its flagship product, Humira, for the treatment of non-infectious intermediate, posterior and panuveitis in adult patients who have had an inadequate response to corticosteroids or in whom corticosteroid treatment is inappropriate. |
26561.0 | 2016-05-30 00:00:00 UTC | Biogen & AbbVie's Multiple Sclerosis Drug Gets FDA Nod | ABBV | https://www.nasdaq.com/articles/biogen-abbvies-multiple-sclerosis-drug-gets-fda-nod-2016-05-30 | nan | nan | Biogen Inc.BIIB and AbbVie Inc. ABBV have gained FDA approval for their multiple sclerosis (MS) treatment, Zinbryta. The once-monthly, self-administered, subcutaneous treatment has been approved for relapsing forms of multiple sclerosis (RMS) in patients who have had an inadequate response to two or more MS therapies.
FDA approval makes Zinbryta the first once-monthly, self-administered MS treatment to be approved. Approval comes with a black box warning regarding the risk of hepatic injury, including autoimmune hepatitis, and other immune-mediated disorders. Moreover, only prescribers, pharmacies and patients enrolled in the Zinbryta Risk Evaluation and Mitigation Strategy (REMS) Program, which includes required monthly liver function tests, will have access to the treatment.
Zinbryta is currently under regulatory review in the EU, Switzerland, Canada and Australia. EU approval should come shortly considering the European Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) issued a positive opinion in late April.
Zinbryta's approval comes as a boost for Biogen, which already has a strong position in the MS market. However, Biogen has been facing its share of troubles in this market following the emergence of a progressive multifocal leukoencephalopathy (PML)-related death of a patient on the company's oral MS treatment, Tecfidera. Biogen's interferon business is also facing challenges with the market shifting towards orals. The company has been working on strengthening its position in the MS market and recently decided to spin-off of its hemophilia business so that it can focus on developing and bringing neurology products to market. The company plans to speed up its efforts to bring new treatments for MS, spinal muscular atrophy (SMA), Alzheimer's disease, Parkinson's disease, amyotrophic lateral sclerosis (ALS), and neuropathic pain to market.
Meanwhile, AbbVie is looking to strengthen its product portfolio and diversify its revenue base. With quite a few companies working on bringing biosimilar versions of Humira, AbbVie's flagship product, to market, AbbVie has been working on reducing its dependence on Humira.
While Biogen is a Zacks Rank #3 (Hold) stock, AbbVie is a Zacks Rank #5 (Strong Sell) stock. Some better-ranked stocks in the health care sector include Bristol-Myers Squibb Company BMY and Pfizer, Inc. PFE - both Zacks Rank #1 (Strong Buy) stocks.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biogen Inc.BIIB and AbbVie Inc. ABBV have gained FDA approval for their multiple sclerosis (MS) treatment, Zinbryta. Meanwhile, AbbVie is looking to strengthen its product portfolio and diversify its revenue base. With quite a few companies working on bringing biosimilar versions of Humira, AbbVie's flagship product, to market, AbbVie has been working on reducing its dependence on Humira. | Biogen Inc.BIIB and AbbVie Inc. ABBV have gained FDA approval for their multiple sclerosis (MS) treatment, Zinbryta. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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. Meanwhile, AbbVie is looking to strengthen its product portfolio and diversify its revenue base. | Biogen Inc.BIIB and AbbVie Inc. ABBV have gained FDA approval for their multiple sclerosis (MS) treatment, Zinbryta. While Biogen is a Zacks Rank #3 (Hold) stock, AbbVie is a Zacks Rank #5 (Strong Sell) stock. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): 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. | While Biogen is a Zacks Rank #3 (Hold) stock, AbbVie is a Zacks Rank #5 (Strong Sell) stock. Biogen Inc.BIIB and AbbVie Inc. ABBV have gained FDA approval for their multiple sclerosis (MS) treatment, Zinbryta. Meanwhile, AbbVie is looking to strengthen its product portfolio and diversify its revenue base. |
26562.0 | 2016-05-27 00:00:00 UTC | US IPO Weekly Recap: US Foods delivers as five IPOs raise $1.5 billion | ABBV | https://www.nasdaq.com/articles/us-ipo-weekly-recap-us-foods-delivers-five-ipos-raise-15-billion-2016-05-27 | nan | nan | Five IPOs raised $1.5 billion as the year's biggest week concluded the year's biggest month of IPO activity - further evidence that the IPO market's rebound is underway. Three were IPOs of profitable LBO'd companies, bringing the 2016 total up to six. While the tech sector has remained largely absent, high-growth venture-backed software provider Twilio ( TWLO ) became the year's first "unicorn" to file, while Nutanix (NTNX) updated financials; both IPOs appear to be targeting a June offer date.
In the past week, the S&P 500 traded up 2.3% while the Renaissance IPO Index gained 2.7%. Further supporting potential IPO issuance, the VIX Volatility Index closed the week just above 13, its lowest point this year. The 31 deals year-to-date have raised $5.4 billion, down about 55% from last year on both deal count and proceeds. In May, 15 IPOs priced, a 25% decline from last year, but up from just 8 in April, and 8 in the entire 1Q16. The year's returns are weighted toward the aftermarket, as mediocre first-day pops (averaging +4%) have improved to an average total return of 19%.
US Foods delivers
US Foods (USFD), the nation's second-largest food distributor, received a warm welcome from investors on its $1 billion IPO, pricing above the midpoint and returning 9%. Its valuation still represents a discount to food distributor peers Sysco ( SYY ) and Performance Food Group (PFGC), a 2015 IPO. The discount could reflect US Foods' failure to to re-accelerate growth after the merger with Sysco fell through in mid-2015, and its remaining debt.
The price for payment analytics: Medical claims auditor Cotiviti prices up and trades down
Cotiviti (COTV) raised $238 million by pricing above the midpoint, but dropped 10% on its first day, the first IPO to do so since Amplify Snack Brands (BETR) in August. With over $550 million in annual sales, Cotiviti is a dominant player in its industry, and it may have attracted initial excitement based on its robust organic growth, strong adjusted EBITDA margins and its discount to peers on EBITDA. However, companies offering "health tech" solutions must contend with uncertainty over their niche in the rapidly-evolving US healthcare landscape. Other concerns could have been customer concentration, leverage and the impact of its non-core retail segment.
Gypsum Management and Supply (GMS) priced at the low end of the $21-$23 range and closed the week up 7%. It has benefited from the residential and commercial construction recovery since 2011, but recently has experienced slower organic growth and limited pricing power in its wallboard segment.
Midland States Bancorp (MSBI), which had been scheduled for the prior week, raised $80 million (16% insider) and broke issue on its debut, despite cutting the proposed range. Based in Illinois, Midland owns nearly $3 billion in assets and has relied on an aggressive acquisition strategy to drive earnings growth.
Reata Pharmaceuticals (RETA) priced at $11, well below its $14-$16 range, but the company increased its IPO shares to still raise about $60 million (50% from insiders, down from 75%). The price was right for IPO investors as the biotech ended the week up 27%, reaching a valuation of almost $300 million - what it originally targeted. Reata had received over $1 billion from AbbVie ( ABBV ) before its lead candidate failed a pivotal Phase 3 trial in 2013, and it is now testing the drug candidate for various forms of pulmonary hypertension.
Formed by the CEOs of Landry's and Jefferies, Landcadia (LCAHU) raised $250 million in the year's fifth blank check company, down from the original $300 million deal size. It ended the week flat.
Find out why institutional investors rely on Renaissance Capital's Pre-IPO Research for these IPOs.
Follow us on Twitter ( @IPOtweet ) for IPO news as it happens and register for our updates on the IPO market.
Pipeline update: Twilio ventures into IPO territory with year's first "unicorn" filing
Twilio ( TWLO ), which powers voice and SMS functionality on mobile applications, filed for a $100 million IPO. Valued at $1.1 billion in July 2015, Twilio has had impressive sales growth and recently became cash flow (CFFO) positive, highlighting the new playbook for the pre-IPO tech company out of Silicon Valley. Fellow tech unicorn Nutanix (NTNX) also updated its financial results this week, demonstrating another quarter of high growth and positive CFFO. Backed by Polaris and Flagship Ventures, immunotherapy biotech Selecta Biosciences (SELB) filed to raise $75 million, while small-cap bank Paragon Commercial (PBNC) filed to raise $29 million in a Nasdaq uplisting.
Just one IPO, NantHealth (NH), is on the calendar for the upcoming shortened holiday week.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 4% year-to-date, while the S&P 500 is up 3%. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 4% year-to-date, while ACWX is up 1%. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include NN Group and Aena S.A. To find out if this is the best ETF for you, visit ourIPO Investing page .
The article US IPO Weekly Recap: US Foods delivers as five IPOs raise $1.5 billion originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Reata had received over $1 billion from AbbVie ( ABBV ) before its lead candidate failed a pivotal Phase 3 trial in 2013, and it is now testing the drug candidate for various forms of pulmonary hypertension. While the tech sector has remained largely absent, high-growth venture-backed software provider Twilio ( TWLO ) became the year's first "unicorn" to file, while Nutanix (NTNX) updated financials; both IPOs appear to be targeting a June offer date. Midland States Bancorp (MSBI), which had been scheduled for the prior week, raised $80 million (16% insider) and broke issue on its debut, despite cutting the proposed range. | Reata had received over $1 billion from AbbVie ( ABBV ) before its lead candidate failed a pivotal Phase 3 trial in 2013, and it is now testing the drug candidate for various forms of pulmonary hypertension. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include NN Group and Aena S.A. To find out if this is the best ETF for you, visit ourIPO Investing page . | Reata had received over $1 billion from AbbVie ( ABBV ) before its lead candidate failed a pivotal Phase 3 trial in 2013, and it is now testing the drug candidate for various forms of pulmonary hypertension. Five IPOs raised $1.5 billion as the year's biggest week concluded the year's biggest month of IPO activity - further evidence that the IPO market's rebound is underway. The article US IPO Weekly Recap: US Foods delivers as five IPOs raise $1.5 billion originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. | Reata had received over $1 billion from AbbVie ( ABBV ) before its lead candidate failed a pivotal Phase 3 trial in 2013, and it is now testing the drug candidate for various forms of pulmonary hypertension. US Foods delivers US Foods (USFD), the nation's second-largest food distributor, received a warm welcome from investors on its $1 billion IPO, pricing above the midpoint and returning 9%. The price was right for IPO investors as the biotech ended the week up 27%, reaching a valuation of almost $300 million - what it originally targeted. |
26563.0 | 2016-05-26 00:00:00 UTC | The Zacks Analyst Blog Highlights: XenoPort, Biodel and AbbVie | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-xenoport-biodel-and-abbvie-2016-05-26 | nan | nan | For Immediate Release
Chicago, IL - May 26, 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 XenoPort ( XNPT ), Biodel ( BIOD ) and AbbVie ( ABBV ) .
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: Xenoport Soars on Acquisition Deal
Acquisitions and deals are picking up pace in the biotech sector with quite a few announcements being made over the last few days. XenoPort ( XNPT ) agreed to be acquired by Arbor Pharmaceuticals and saw its shares shoot up on the news. Meanwhile, specialty biopharma company Biodel ( BIOD ) will be combining with Albireo.
Apart from this, AbbVie ( ABBV ) came out with encouraging interim data on its recently in-licensed immunology drug.
Recap of the Week's Most Important Stories
1. XenoPort's shares shot up 56.4% on news that the company has agreed to be acquired by Arbor Pharmaceuticals for a total equity value of about $467 million - a 60% premium to XenoPort's closing share price on May 20. Arbor should be better-positioned to market XenoPort's Horizant, currently approved for restless legs syndrome and postherpetic neuralgia (Read more: Xenoport to be Acquired by Arbor Pharmaceuticals; Stock Up ).
2. Specialty biopharma company Biodel is combining with Albireo Limited, a privately held biopharmaceutical company to form an entity that will focus on orphan pediatric liver diseases and other liver and gastrointestinal diseases and disorders.
Lead pipeline candidate, A4250, is in a phase II study in children with cholestatic liver disease. The target is to develop A4250 for the treatment of progressive familial intrahepatic cholestasis, an orphan pediatric liver disease with no approved drugs.
Albireo has another pipeline candidate, elobixibat, which is currently being evaluated in a phase III program by a Japanese licensee for the treatment of chronic constipation.
3. AbbVie's recently in-licensed biologic compound, risankizumab, fared well in a phase II, proof-of concept study in patients with moderate-to-severe Crohn's disease. About twice as many patients on risankizumab achieved clinical remission compared to placebo after 12 weeks. The interim results indicate that selective blockade of IL-23 with risankizumab could present patients with a new treatment option. Moderate-to-severe Crohn's disease patients who have failed anti-TNF therapy currently have limited treatment options. The study will continue up to 52 weeks.
AbbVie had licensed risankizumab from Boehringer Ingelheim with the intention of boosting its immunology pipeline. Risankizumab is currently in phase III development for psoriasis.
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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 recently in-licensed biologic compound, risankizumab, fared well in a phase II, proof-of concept study in patients with moderate-to-severe Crohn's disease. Stocks recently featured in the blog include XenoPort ( XNPT ), Biodel ( BIOD ) and AbbVie ( ABBV ) . Apart from this, AbbVie ( ABBV ) came out with encouraging interim data on its recently in-licensed immunology drug. | Stocks recently featured in the blog include XenoPort ( XNPT ), Biodel ( BIOD ) and AbbVie ( ABBV ) . Click to get this free report XENOPORT INC (XNPT): Free Stock Analysis Report BIODEL INC (BIOD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from this, AbbVie ( ABBV ) came out with encouraging interim data on its recently in-licensed immunology drug. | Click to get this free report XENOPORT INC (XNPT): Free Stock Analysis Report BIODEL INC (BIOD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include XenoPort ( XNPT ), Biodel ( BIOD ) and AbbVie ( ABBV ) . Apart from this, AbbVie ( ABBV ) came out with encouraging interim data on its recently in-licensed immunology drug. | Want the latest recommendations from Zacks Investment Research? Stocks recently featured in the blog include XenoPort ( XNPT ), Biodel ( BIOD ) and AbbVie ( ABBV ) . Apart from this, AbbVie ( ABBV ) came out with encouraging interim data on its recently in-licensed immunology drug. |
26564.0 | 2016-05-25 00:00:00 UTC | 3 Big Pharma Stocks Under the Microscope: BMY, ABBV, LLY | ABBV | https://www.nasdaq.com/articles/3-big-pharma-stocks-under-the-microscope%3A-bmy-abbv-lly-2016-05-25 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
Pharmaceutical companies have been on the defensive lately, with fire coming from all directions.
Source: Images Money via Flickr (Modified)
Drug pricing practices have become a key concern as the presidential campaign cycle ramps up, and it's a fight that will take place on two fronts - both in the media and in the legislative branch of government.
If that were not enough to deal with, big pharma stocks also have to contend with activist investors at the gate demanding a breakup of the industry giants in an attempt to unlock value with the belief that the parts are greater than the whole.
Critics claim that the diversified model leads to muddled management as businesses with different growth rates and capital needs vie for resources.
The 10 Best Healthcare Stocks to Buy in a Rocky Market
With these themes in mind, we'll use Profit Scanner , powered by Recognia, to look at three key players in the space to see if widespread concerns are beginning to take their toll on pharmaceutical stocks or if bullish activity is running counter to the narrative we're being fed.
Big Pharma Stocks Under the Microscope: Bristol-Myers Squibb Co (BMY)
Bristol-Myers Squibb Co ( BMY ) is "engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products." Its pharmaceutical products include chemically synthesized drugs and products that come from biological processes.
While the market has been kind to the stock over the past few months, there are signs of exhaustion, which is why BMY has stalled a bit over the past week or so.
In the chart above, we see that BMY has been in an established upward trend for the time horizon represented by the moving average period (21 bars). Moving averages are used to smooth out the volatility or "noise" in a price series, making it easier to discover the underlying trend.
By plotting the average price over the last several bars, the line is less "jerky" than plotting the actual prices. With the price of BMY recently crossing below the moving average, a bearish event triggered, meaning that we could see some additional downside movement with the stock in the weeks ahead.
Big Pharma Stocks Under the Microscope: AbbVie Inc (ABBV)
AbbVie Inc ( ABBV ) is a research-based biopharmaceutical company that develops and markets therapies addressing a range of diseases and conditions such as chronic autoimmune diseases, oncology, neurological disorders and other serious health conditions.
In the chart above, we see yet another break below the 21-day moving average, hinting that the recent selloff is more industry-related, as opposed to having anything to do with some kind of isolated "fundamental" deterioration from within the company itself.
Since May 11, there have been nine bearish short-term signals produced by Profit Scanner . And in that time, the stock has declined from $62.70 to $60.18 per share - a 4% move lower.
The Top 10 S&P 500 Dividend Stocks to Buy Now
One likely reason why we haven't seen the stock punished more is due to the fact that when a stock falls through an important moving average, there is likely a rebound back up to the underside of the moving average (now higher above) to measure the strength of the bearish signal. Should shares then decline and make lower price lows, we'll know the initial move down was a valid trend-changer.
Big Pharma Stocks Under the Microscope: Eli Lilly and Co (LLY)
Eli Lilly and Co ( LLY ) is engaged in the drug-manufacturing business, and it works to discover, develop, manufacture and market products in two key areas - human pharmaceutical and animal health products.
After a huge run throughout 2014 and much of 2015, LLY became a little winded. While the late March "bull run" did manage to break the longer-term slide, it's difficult to gauge whether or not the April's bullish follow-through was for real. What we do know so far in May is that the profit-takers are out in full force.
In the chart above, Profit Scanner shows us just how tricky it has been to maintain a firm grip on any upside momentum generated.
The signals provided over the past month or so have been dominated by the bears. Profit Scanner recently gave us a negative "momentum" event where price was found to be trading lower than it was in the 10 bars prior.
Momentum is significant because it signals the strength of price trends. A healthy price trend tends to exhibit strong momentum, but that's just not the case with LLY at this point in time.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner's technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.
The post 3 Big Pharma Stocks Under the Microscope: BMY, ABBV, LLY 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. | Big Pharma Stocks Under the Microscope: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) is a research-based biopharmaceutical company that develops and markets therapies addressing a range of diseases and conditions such as chronic autoimmune diseases, oncology, neurological disorders and other serious health conditions. The post 3 Big Pharma Stocks Under the Microscope: BMY, ABBV, LLY appeared first on InvestorPlace . Source: Images Money via Flickr (Modified) Drug pricing practices have become a key concern as the presidential campaign cycle ramps up, and it's a fight that will take place on two fronts - both in the media and in the legislative branch of government. | Big Pharma Stocks Under the Microscope: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) is a research-based biopharmaceutical company that develops and markets therapies addressing a range of diseases and conditions such as chronic autoimmune diseases, oncology, neurological disorders and other serious health conditions. The post 3 Big Pharma Stocks Under the Microscope: BMY, ABBV, LLY appeared first on InvestorPlace . Big Pharma Stocks Under the Microscope: Bristol-Myers Squibb Co (BMY) Bristol-Myers Squibb Co ( BMY ) is "engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products." | Big Pharma Stocks Under the Microscope: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) is a research-based biopharmaceutical company that develops and markets therapies addressing a range of diseases and conditions such as chronic autoimmune diseases, oncology, neurological disorders and other serious health conditions. The post 3 Big Pharma Stocks Under the Microscope: BMY, ABBV, LLY appeared first on InvestorPlace . The 10 Best Healthcare Stocks to Buy in a Rocky Market With these themes in mind, we'll use Profit Scanner , powered by Recognia, to look at three key players in the space to see if widespread concerns are beginning to take their toll on pharmaceutical stocks or if bullish activity is running counter to the narrative we're being fed. | Big Pharma Stocks Under the Microscope: AbbVie Inc (ABBV) AbbVie Inc ( ABBV ) is a research-based biopharmaceutical company that develops and markets therapies addressing a range of diseases and conditions such as chronic autoimmune diseases, oncology, neurological disorders and other serious health conditions. The post 3 Big Pharma Stocks Under the Microscope: BMY, ABBV, LLY appeared first on InvestorPlace . Big Pharma Stocks Under the Microscope: Eli Lilly and Co (LLY) Eli Lilly and Co ( LLY ) is engaged in the drug-manufacturing business, and it works to discover, develop, manufacture and market products in two key areas - human pharmaceutical and animal health products. |
26565.0 | 2016-05-25 00:00:00 UTC | Billionaires Are Bailing on Gilead Sciences -- Should You, Too? | ABBV | https://www.nasdaq.com/articles/billionaires-are-bailing-gilead-sciences-should-you-too-2016-05-25 | nan | nan | Image source: Gilead Sciences, Inc.
While following blindly in the footsteps of billionaires is risky, it's always interesting to see what stocks legendary investing gurus are selling, especially when it involves a widely held stock like Gilead Sciences (NASDAQ: GILD) . Last quarter, five billionaires tracked by The Motley Fool sold 6 million shares of Gilead Sciences. With billionaires heading for the exits in this big biotech, is it time for you to sell shares, too?
Stall speed?
Gilead Sciences' sales have rocketed higher over the past three years thanks to the launch of next-generation hepatitis C drugs that reduce treatment duration and deliver 90%-plus cure rates.
However, now that Gilead Sciences' revenue has tripled since the launch of Sovaldi and Harvoni, growth may be tougher to come by than it has been previously, especially following the introduction of competing HCV therapies from Bristol-Myers Squibb , AbbVie Inc. , and Merck & Co . All three of those companies are deep-pocketed and have shown a willingness to battle over price to win away market share in this big market.
Image source: Gilead Sciences, Inc.
Globally, more than 150 million people have hepatitis C, and in the United States alone, there are 3 million hepatitis C patients. Because of the size of this indication, revenue associated with hepatitis C treatments eclipses $20 billion annually.
Gilead Sciences, however, already controls the lion's share of that market, and since new competitors are driving down prices, Gilead Sciences' growth in this indication relies on increasing prescription volume by more than prices are falling.
So far, evidence suggests that script volume is climbing, but that the benefit of higher volume isn't offsetting the drag of lower prices. In Q1, Gilead Sciences' Harvoni revenue fell to $3 billion from $3.58 billion a year ago.
Billionaire sellers
Anticipating stalling sales growth led some of Wall Street's biggest money managers to move to the sidelines in the company's stock last quarter.
The biggest billionaire seller of Gilead Sciences shares in Q1 was D.E. Shaw, the legendary manager of the quantitatively driven hedge fund that's named after him. In Q1, D.E. Shaw cut loose more than 3.9 million shares of Gilead Sciences.
James Simon, whose investing chops have allowed him to amass a net worth of $14 billion, also put Gilead Sciences' shares on the chopping block. Last quarter, Simon's Renaissance Technology sold 1.6 million shares of the company.
Billionaire Glenn Russell Dubin's Highbridge Capital Management also took shares in Gilead Sciences off the table in the first quarter, lightening his load by 672,600 shares.
Image source: Gilead Sciences, Inc.
Looking forward
Although it's disappointing to Gilead Sciences bulls to see these top investors walk away, they might want to take a long-term view and stick it out with their shares.
Gilead Sciences is rolling out a slate of new therapies addressing HIV, and those drugs are insulating the company's market share in that indication while also offering growth. Last quarter, Gilead Sciences' sales of its various HIV therapies improved by over 18% to $2.8 billion.
The company's also expecting an FDA decision soon on its latest hepatitis C drug. If approved, this drug can shore up market share and possibly firm up pricing. The drug, which delivers cure rates in the high 90% range, would be the first pan-genotype HCV drug approved by the FDA.
Additionally, GIlead Sciences' pipeline has intriguing therapies addressing potential blockbuster indications, including nonalcoholic steteohepatitis, a liver disease that's increasingly leading to liver transplants.
If Gilead Sciences can maintain market share in its key indications and then expand into new markets, then the pause in revenue could be short-term. Given that the company's got a balance sheet boasting more than $21 billion in cash, and that it recently upped its dividend payout so that its shares now yield more than 2%, picking up shares for the long haul while they're on sale might be savvy.
Something big just happened
I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the U.S. as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they've tripled the stock market's return over the last 13 years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.
Click here to be among the first people to hear about David and Tom's newest stock recommendations.
*"Look Who's on Top Now" appeared in The Wall Street Journal in Aug. 2013, which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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, now that Gilead Sciences' revenue has tripled since the launch of Sovaldi and Harvoni, growth may be tougher to come by than it has been previously, especially following the introduction of competing HCV therapies from Bristol-Myers Squibb , AbbVie Inc. , and Merck & Co . Gilead Sciences' sales have rocketed higher over the past three years thanks to the launch of next-generation hepatitis C drugs that reduce treatment duration and deliver 90%-plus cure rates. Billionaire sellers Anticipating stalling sales growth led some of Wall Street's biggest money managers to move to the sidelines in the company's stock last quarter. | However, now that Gilead Sciences' revenue has tripled since the launch of Sovaldi and Harvoni, growth may be tougher to come by than it has been previously, especially following the introduction of competing HCV therapies from Bristol-Myers Squibb , AbbVie Inc. , and Merck & Co . Last quarter, five billionaires tracked by The Motley Fool sold 6 million shares of Gilead Sciences. Billionaire sellers Anticipating stalling sales growth led some of Wall Street's biggest money managers to move to the sidelines in the company's stock last quarter. | However, now that Gilead Sciences' revenue has tripled since the launch of Sovaldi and Harvoni, growth may be tougher to come by than it has been previously, especially following the introduction of competing HCV therapies from Bristol-Myers Squibb , AbbVie Inc. , and Merck & Co . Gilead Sciences, however, already controls the lion's share of that market, and since new competitors are driving down prices, Gilead Sciences' growth in this indication relies on increasing prescription volume by more than prices are falling. Billionaire Glenn Russell Dubin's Highbridge Capital Management also took shares in Gilead Sciences off the table in the first quarter, lightening his load by 672,600 shares. | However, now that Gilead Sciences' revenue has tripled since the launch of Sovaldi and Harvoni, growth may be tougher to come by than it has been previously, especially following the introduction of competing HCV therapies from Bristol-Myers Squibb , AbbVie Inc. , and Merck & Co . Image source: Gilead Sciences, Inc. Globally, more than 150 million people have hepatitis C, and in the United States alone, there are 3 million hepatitis C patients. Billionaire sellers Anticipating stalling sales growth led some of Wall Street's biggest money managers to move to the sidelines in the company's stock last quarter. |
26566.0 | 2016-05-24 00:00:00 UTC | ABBV Stock: Could AbbVie Inc’s Gamble on Stemcentrx Pay Off? | ABBV | https://www.nasdaq.com/articles/abbv-stock-could-abbvie-incs-gamble-stemcentrx-pay-2016-05-24 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Like most people, you probably thought, "What the hell?" when you heard that Facebook Inc ( FB ) acquired WhatsApp for $19 billion. That was what I thought too.
And I felt that way again just before the end of April when AbbVie Inc ( ABBV ) announced that it would acquire another startup, a biotech this time, in deal reportedly in the region of $10.2 billion. That startup is Stemcentrx .
I will attempt to discuss a number of reasons why this deal makes sense for ABBV.
The State of ABBV Stock
ABBV stock is down by about 8.6% over the last year, and a big part of that is the impending patent expiration of it mega-blockbuster drug, Humira. And it's a worthy reason to a send stock down, considering that it's the world's best-selling drug, as well as bringing in a hollering 61% of AbbVie's total sales.
Humira will lose patent protecting this year and when it does, it's likely to witness sizeable competition from look-alike drugs - although, ABBV is still projecting sales growth into next year. In any case, though, Humira will eventually lose sales.
So, ABBV is currently working on ways to protect its business from the impending sales drop attributable to Humira's loss of patent. Last year, ABBV spent about $21 billion to acquire Pharmacyclics to move to a leading position in the hematology cancer space.
The acquisition of Stemcentrx is a move to get treatments into market for solid tumors. Stemcentrx science is deep-rooted in targeting cancer stem cells to stop the propagation of cancer.
The fact that this deal will give ABBV access to Stemcentrx's small cell lung cancer pipeline (SCLC) candidate, Rova-T, is a good indication that this deal could prove astute in the end.
Rova-T is being developed as a third-line therapy for the treatment of SCLC. One thing you want to note is that SCLC is a hard-to-treat kind of cancer. Unfortunately, the five-year survival rate of patients in the third-line therapy stage of SCLC is about 6%, and there are not many treatments in the market at this stage.
The brilliant thing is that results from clinical studies for Rova-T have been heartening. For instance, in a phase 2 study, 44% of SCLC patients whose conditions are linked to DLL3 - an antibody drug conjugate - responded favorably to Rova-T, while maintaining a non-alarming safety profile.
Yes, there's still a long way to go for Rova-T, especially considering that nine out of ten cancer drugs fail to see the light of the day.
One other thing offers hope that Rova-T could be big.
The American Society of Clinical Oncology (ASCO) selected Rova-T to be presented as a "best of ASCO." There are two reasons to appreciate this. First, only 1%, yes ONE percent, of all ASCO presentations are classified as best of ASCO. So this is indicative of a keen interest of the clinical oncology society in Rova-T.
Second, you want to note that stem cell therapy still has a number of controversies surrounding it in the healthcare society. So that the oncology society is interested in Rova-T suggests that Stemcentrx is doing something right.
And even if Rova-T doesn't make it to the market, ABBV still has a talented oncology team at hand. Because more than anything, it's the science behind Rova-T, brought about by the team, that interests the clinical oncology society.
3 Cheap Stocks Set to Double Their Dividends
So ABBV is bound to make a big move in the oncology space.
Takeaway for AbbVie
While AbbVie might have made a smart move by acquiring Stemcentrx, it's only a good move in the right direction. It does little to alleviate the risk associated with the potential decrease in sales once Humira loses patent protection.
In other words, I would only keep ABBV stock on my watch list at the moment, rather than buy it.
As of this writing, Craig Adeyanju did not hold a position in any of the aforementioned securities.
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The post ABBV Stock: Could AbbVie Inc's Gamble on Stemcentrx Pay Off? 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 I felt that way again just before the end of April when AbbVie Inc ( ABBV ) announced that it would acquire another startup, a biotech this time, in deal reportedly in the region of $10.2 billion. And it's a worthy reason to a send stock down, considering that it's the world's best-selling drug, as well as bringing in a hollering 61% of AbbVie's total sales. I will attempt to discuss a number of reasons why this deal makes sense for ABBV. | The fact that this deal will give ABBV access to Stemcentrx's small cell lung cancer pipeline (SCLC) candidate, Rova-T, is a good indication that this deal could prove astute in the end. And I felt that way again just before the end of April when AbbVie Inc ( ABBV ) announced that it would acquire another startup, a biotech this time, in deal reportedly in the region of $10.2 billion. I will attempt to discuss a number of reasons why this deal makes sense for ABBV. | The State of ABBV Stock ABBV stock is down by about 8.6% over the last year, and a big part of that is the impending patent expiration of it mega-blockbuster drug, Humira. The fact that this deal will give ABBV access to Stemcentrx's small cell lung cancer pipeline (SCLC) candidate, Rova-T, is a good indication that this deal could prove astute in the end. More From InvestorPlace 30 Stocks the Smart Money Just Bought or Dumped AAPL Stock - Buy Apple Inc., But Not on the Rumors The post ABBV Stock: Could AbbVie Inc's Gamble on Stemcentrx Pay Off? | The State of ABBV Stock ABBV stock is down by about 8.6% over the last year, and a big part of that is the impending patent expiration of it mega-blockbuster drug, Humira. Last year, ABBV spent about $21 billion to acquire Pharmacyclics to move to a leading position in the hematology cancer space. More From InvestorPlace 30 Stocks the Smart Money Just Bought or Dumped AAPL Stock - Buy Apple Inc., But Not on the Rumors The post ABBV Stock: Could AbbVie Inc's Gamble on Stemcentrx Pay Off? |
26567.0 | 2016-05-24 00:00:00 UTC | 3 Stocks With Better Dividends Than Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/3-stocks-better-dividends-johnson-johnson-2016-05-24 | nan | nan | Johnson & Johnson
But many investors already hold it as a core position, and while they may be sorely tempted to add to their holdings, it's always a mistake to depend too heavily on the performance of a single stock. In addition, the company looks expensive right now, so it may make sense to wait for a pullback before buying again.
So where should investors be looking for diversification alternatives to J&J that offer better dividends? Without further ado, here are three stocks our contributors believe could be better choices.
Brian Feroldi: Investors might not be as familiar with the name AbbVie (NYSE: ABBV) as they are with Johnson & Johnson, but if dividends are what they're after, I'd suggest giving this pharma giant a closer look.
AbbVie's stock hit the markets in 2013, after being spun off from its former parent (and dividend aristocrat) Abbott Laboratories . The stock has since crushed the returns of Johnson & Johnson, Abbott Laboratories, and the S&P 500 in general over that time period.
Largely responsible for the stock's success has been AbbVie's megablockbuster chemotherapy and immunosuppressant drug, Humira. In 2015, sales of Humira were more than $14 billion, making it the world's top-selling drug. And it's still growing at an impressive rate -- more than 19% year over year on a currency-neutral basis.
Of course, there's a downside to having such a massive winner like Humira in its lineup. Last year, the drug accounted for more than 60% of AbbVie's total revenue, so stalling or declining sales could cause a world of hurt. Moreover, one of Humira's key U.S. patents will expire at the end of this year, which some believe could open it up to biosimilar competition. That's a real threat.
Management, to its credit, is well aware of the risks, and it's done its best to assure investors that AbbVie's future still looks bright. Management also believes that Humira is well protected from competitors until at least 2022 due to additional patents, and when you add in the fast growth of newer drugs -- such as its hepatitis C cure, Viekira Pak, and its cancer drug, Imbruvica -- they believe that sales in 2020 will top $37 billion. That guidance suggests that annual revenue and earnings growth will be in the double digits over the next few years.
If you're a believer in management's long-term outlook, then AbbVie looks like a bargain. It's trading for 11 times next year's earnings estimates and offers a dividend yield of 3.82%. That's a compelling combination for a stock that could grow at an above-average rate.
Cory Renauer : Financial-services stocks have taken it on the chin over the past year, dragging T. Rowe Price Group (NASDAQ: TROW) down along with its peers. As a result, its dividend yield is a juicy 2.88%, just a bit above J&J's.
Add in the occasional "special" dividend, like the $2.00 per share it paid last April on top of the quarterly $0.52 it paid last March, and this highly profitable stock is bound to keep you smiling in the years ahead.
Looking forward, there's plenty of runway to keep those distribution increases coming. In light of last year's whopping special dividend, the most recent increase was a modest 3.8% bump to $0.54 per quarter. The company used only 44.6% of profits recorded during the first quarter to pay out $135.9 million in dividends to its happy shareholders -- a payout ratio slightly lower than J&J's 48.2% in the first quarter.
Another reason for the relatively modest dividend raise announced in February was a prescient decision last December to boost the stock-repurchase authorization by 12 million shares to 20.9 million, The stock dipped on fears of a global economic slowdown and rising interest rates, and management scooped up a little over 1.15% of shares outstanding.
The debt-free asset manager has made 30 consecutive annual dividend increases and will have a few million less in stock to pay out on as it continues its streak in the years ahead.
Cheryl Swanson: J&J currently yields only about 2.84%, a respectable but hardly spectacular yield. If you're willing to absorb a little more risk in return for a much higher dividend, I'd suggest HCP (NYSE: HCP) , the only real estate investment trust (REIT) in the S&P Dividend Aristocrats Index. With a 6.74% yield, HCP makes its money by renting out healthcare properties such as senior-living, acute-care, and medical-office buildings.
As any investor who survived the recession of 2007 to 2009 can attest, the real estate market can be very unstable. But healthcare REITs tend to be less so because governments and individuals can't really cut back on healthcare spending, no matter how good or bad the overall economy is.
In particular, HCP holds 1,200 properties and has recently increased its dividend yet again, marking 31 consecutive years. Still, it's a mistake to assume that a dividend aristocrat is invincible. In particular, HCP has faced murky headwinds because of some of its facilities reliance on Medicare and Medicaid reimbursements, which can unexpectedly shift and make businesses less profitable.
That's why HCP's surprise announcement and terrific earnings last quarter should see this stock heading right back up again. Management solved its biggest problem by announcing the spinoff of government reimbursement reliant ManorCare into a separate REIT, which should improve HCP's financial position and stability. In fact, with the company's exposure to ManorCare ending, I see an opportunity for more annual total return potential than J&J.
Something big just happened
I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was the best performing in the U.S. as reported by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they've tripled the stock market's return over the last 13 years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.
Click here to be among the first people to hear about David and Tom's newest stock recommendations.
*"Look Who's on Top Now" appeared in The Wall Street Journal in Aug. 2013, which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Brian Feroldi: Investors might not be as familiar with the name AbbVie (NYSE: ABBV) as they are with Johnson & Johnson, but if dividends are what they're after, I'd suggest giving this pharma giant a closer look. AbbVie's stock hit the markets in 2013, after being spun off from its former parent (and dividend aristocrat) Abbott Laboratories . Largely responsible for the stock's success has been AbbVie's megablockbuster chemotherapy and immunosuppressant drug, Humira. | Brian Feroldi: Investors might not be as familiar with the name AbbVie (NYSE: ABBV) as they are with Johnson & Johnson, but if dividends are what they're after, I'd suggest giving this pharma giant a closer look. AbbVie's stock hit the markets in 2013, after being spun off from its former parent (and dividend aristocrat) Abbott Laboratories . Largely responsible for the stock's success has been AbbVie's megablockbuster chemotherapy and immunosuppressant drug, Humira. | Brian Feroldi: Investors might not be as familiar with the name AbbVie (NYSE: ABBV) as they are with Johnson & Johnson, but if dividends are what they're after, I'd suggest giving this pharma giant a closer look. AbbVie's stock hit the markets in 2013, after being spun off from its former parent (and dividend aristocrat) Abbott Laboratories . Largely responsible for the stock's success has been AbbVie's megablockbuster chemotherapy and immunosuppressant drug, Humira. | Brian Feroldi: Investors might not be as familiar with the name AbbVie (NYSE: ABBV) as they are with Johnson & Johnson, but if dividends are what they're after, I'd suggest giving this pharma giant a closer look. AbbVie's stock hit the markets in 2013, after being spun off from its former parent (and dividend aristocrat) Abbott Laboratories . Largely responsible for the stock's success has been AbbVie's megablockbuster chemotherapy and immunosuppressant drug, Humira. |
26568.0 | 2016-05-20 00:00:00 UTC | A Heavy Hitter Just Stepped Up to the Cystic Fibrosis Plate | ABBV | https://www.nasdaq.com/articles/heavy-hitter-just-stepped-cystic-fibrosis-plate-2016-05-20 | nan | nan | What you're looking at on the left is Vertex's groundbreaking dual combination drug, Orkambi. Approved by the FDA last summer, it's aimed at the largest genetic subset of cystic fibrosis patients, those with two copies of the F508del mutation in the gene that produces the CFTR protein.
What you're looking at on the right is a three-drug combination from Galapagos that appears more than five times as effective at restoring CFTR function as Vertex's Orkambi.
Back in 2013, AbbVie was so impressed with Galapagos' discovery technology that it fronted the company $45 million to produce some cystic fibrosis candidates. It looks like AbbVie got its money's worth.
Although Galapagos might not have the necessary resources to speed its candidates through the development process alone, its partner spent $4.4 billion last year on R&D. Here's why that might make Vertex investors a bit nervous.
All eggs in the cystic fibrosis treatment basket
In the first quarter, Vertex recorded $223.1 million in sales from Orkambi, and expects sales of the drug to reach at least $1 billion by the end of the year. Kalydeco is a single drug therapy for a smaller subset of cystic fibrosis patients that's expected to reach at least $685 million in sales this year. Despite the success of these two cystic fibrosis drugs -- its only commercial-stage products -- Vertex is pushing so hard on the R&D pedal that it posted a loss of $41.6 million in the first quarter.
Vertex's drugs are the only ones approved which treat the underlying cause of the disease. While they command a six-figure annual price tag, the company is reinvesting as much as possible into developing treatments for as many cystic fibrosis patients as possible. Such noble efforts aren't cheap, and if its treatments suddenly lost share of the space to a competitor from AbbVie and Galapagos, the company could be in trouble.
Before running for the exits, here are a few things Vertex investors should understand.
Reasons to stay calm
The results above are pre clinical; in other words, they're laboratory observations. It's a long way from the lab to the pharmacy, and over 99% of preclinical candidates never get there.
Another calming fact for Vertex shareholders is the nature of AbbVie's agreement with Galapagos. While the partners are committed to producing a triple therapy, Galapagos is responsible for development through phase 2. If a candidate looks promising after that point, AbbVie will step in to write the big checks.
Image source: Cystic Fibrosis Foundation.
I think it could be a while before AbbVie needs to get out its checkbook. Galapagos didn't begin dosing people with one of its candidates until this January. The early stage trial recruited healthy volunteers to basically check for side effects, and to learn how it behaves in actual humans.
In February it dosed its first cystic fibrosis patient with GLPG1837, which is a CFTR potentiator in the same class as Kalydeco. Its role is to increase the potential of the channel being open; the study was supposed to enroll up to six patients.
Earlier this month Galapagos began another healthy-volunteer study with a second potentiator. Maybe the first potentiator didn't work so well, or maybe Galapagos is just using an early clinical-stage shotgun approach. The important thing to bear in mind is that it's a long way from developing a triple combination.
First Galapagos will need to prove one of its drugs is safe and effective in a large population over a long amount of time. From that point it can begin trials with a second, then a third. Regulators are extremely hesitant about allowing more than one unknown entity at a time during trials, and when it comes to approvals it's practically unheard of. Odds are that it will be years at best before we can make concrete conclusions about the laboratory triple threat displayed above.
In the meantime Vertex is accumulating real-world data with thousands of patients, and has some triple combinations up its sleeve that, if all goes well, could be well entrenched before any of Galapagos' and AbbVie's combinations make their first sales.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Such noble efforts aren't cheap, and if its treatments suddenly lost share of the space to a competitor from AbbVie and Galapagos, the company could be in trouble. Back in 2013, AbbVie was so impressed with Galapagos' discovery technology that it fronted the company $45 million to produce some cystic fibrosis candidates. It looks like AbbVie got its money's worth. | Back in 2013, AbbVie was so impressed with Galapagos' discovery technology that it fronted the company $45 million to produce some cystic fibrosis candidates. It looks like AbbVie got its money's worth. Such noble efforts aren't cheap, and if its treatments suddenly lost share of the space to a competitor from AbbVie and Galapagos, the company could be in trouble. | Back in 2013, AbbVie was so impressed with Galapagos' discovery technology that it fronted the company $45 million to produce some cystic fibrosis candidates. In the meantime Vertex is accumulating real-world data with thousands of patients, and has some triple combinations up its sleeve that, if all goes well, could be well entrenched before any of Galapagos' and AbbVie's combinations make their first sales. It looks like AbbVie got its money's worth. | In the meantime Vertex is accumulating real-world data with thousands of patients, and has some triple combinations up its sleeve that, if all goes well, could be well entrenched before any of Galapagos' and AbbVie's combinations make their first sales. Back in 2013, AbbVie was so impressed with Galapagos' discovery technology that it fronted the company $45 million to produce some cystic fibrosis candidates. It looks like AbbVie got its money's worth. |
26569.0 | 2016-05-18 00:00:00 UTC | Bear of the Day: AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/bear-day-abbvie-abbv-2016-05-18 | nan | nan | AbbVie (ABBV) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares.
According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences (CHRS) to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis.
But ABBV shares were already pushed into the cellar of the Zacks Rank before this news because of a slide in earnings estimates over the past 30 days. Full-year 2106 profit projections fell from $5.00 to $4.77 and the 2017 consensus EPS estimate dropped from $5.99 to $5.73.
And that loss of earnings momentum is what makes ABBV today's Bear of the Day by virtue of its Zacks #5 Rank (Strong Sell). This simply means that relative to over 4,000 other stocks across all sectors, ABBV has poor prospects for a price advance because of the magnitude and agreement of negative EPS revisions from analysts.
The Coherus Challenge
Part of this action by analysts in the past month may have been in anticipation of the move by Federal patent authorities. Coherus management revealed at an investor conference in January that the company planned to file an application this year to market a biosimilar (generic) version of Humira.
On Tuesday, Coherus Chief Executive Denny Lanfear said they are "confident that this will lead to a final decision nullifying" the patent.
Shares Coherus shot up nearly 16% to $18.83 on very strong volume of 1.6 million shares, over five times their daily average.
AbbVie responded "we are confident in the validity of our patents and will vigorously defend them."
"Humira is protected by many patents covering all aspects of its manufacture, formulation and indications, and the patents are the result of AbbVie's investment in biologic innovation and the unique attributes of Humira," a spokesperson said.
According to the Dow Jones article by Anne Steele, Humira was the second best-selling drug in the U.S. in 2015 and is AbbVie's largest source of revenue.
AbbVie has also been preparing for this competitive battle by taking out about 70 patents for Humira, one of the largest patent portfolios ever assembled for a single drug.
Again from Steele, "The drug's primary U.S. patent is due to expire in December, but AbbVie says the additional patents should keep copycat versions of Humira off the U.S. market until at least 2022, and possibly longer."
Bottom Line for ABBV: Watch the Zacks Rank
While this patent battle could actually become a multi-year war, after today's big news the analysts may continue to revise ABBV estimates downward. And that could keep it in the basement of the Zacks Rank for a while.
So if you are looking at big Biopharma stocks right now, check out Johnson & Johnson (JNJ), Pfizer (PFE), or Abbott Labs(ABT) , all with a Zacks #2 Rank (Buy).
Kevin Cook is a Senior Stock Strategist for Zacks where he runs the Follow The Money portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. This simply means that relative to over 4,000 other stocks across all sectors, ABBV has poor prospects for a price advance because of the magnitude and agreement of negative EPS revisions from analysts. According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences (CHRS) to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis. | Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report COHERUS BIOSC (CHRS): 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. AbbVie (ABBV) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences (CHRS) to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis. | AbbVie (ABBV) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences (CHRS) to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report COHERUS BIOSC (CHRS): 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. | But ABBV shares were already pushed into the cellar of the Zacks Rank before this news because of a slide in earnings estimates over the past 30 days. Again from Steele, "The drug's primary U.S. patent is due to expire in December, but AbbVie says the additional patents should keep copycat versions of Humira off the U.S. market until at least 2022, and possibly longer." Bottom Line for ABBV: Watch the Zacks Rank While this patent battle could actually become a multi-year war, after today's big news the analysts may continue to revise ABBV estimates downward. |
26570.0 | 2016-05-18 00:00:00 UTC | PharMerica, AbbVie, Red Robin Gourmet Burgers, Habit Restaurants and Shake Shack highlighted as Zacks Bull and Bear of the Day | ABBV | https://www.nasdaq.com/articles/pharmerica-abbvie-red-robin-gourmet-burgers-habit-restaurants-and-shake-shack-highlighted | nan | nan | For Immediate Release
Chicago, IL - May 18, 2016- Zacks Equity Research highlights PharMerica Corporation ( PMC ) as the Bull of the Day and AbbVie ( ABBV ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Red Robin Gourmet Burgers, Inc. ( RRGB ), Habit Restaurants, Inc. ( HABT ) and Shake Shack, Inc. ( SHAK ).
Here is a synopsis of all five stocks:
Bull of the Day:
PharMerica Corporation ( PMC ) is an $800 million pharmacy services provider for institutional customers and patients in long-term care settings.
The stock became a Zacks #1 Rank recently after another solid earnings report where they once again beat analyst EPS estimates by 20% for the fourth consecutive quarter.
On May 6 the company reported total revenue of $524.5 million, up 2.5% from last year's first quarter, and beating the analyst consensus by 3%. The top-line beat was driven by a higher-than-expected number of prescriptions dispensed, which totaled 8.6 million. Revenue per prescription dispensed in the quarter came in at $60.66.
Analysts Prescribe Better Outlook
In response to the company's outlook and reaffirmed 2016 guidance of revenue in the range of $2.125 billion to $2.150 billion and adjusted EPS in the range of $1.95 to $2.05, analysts scrambled to raise estimates.
In the past 30 days, the 2016 consensus went from $1.74 to $2.02 and full-year 2017 projections rose 15% from $1.96 to $2.26.
Analysts at KeyBanc Capital Markets described the quarter as offering solid evidence of PharMerica's value proposition. Specifically they noted "The company remains on track toward creating value by expanding its mix of faster growing specialty/diversified pharmacy services and using its cash flow to fold in small LTC and home infusion pharmacy acquisitions." The analysts reiterated their Overweight rating and raised their price target from $33 to $34.
Under the Hood of a Key Pharmacy Player
PharMerica offers a broad range of pharmacy services across multiple settings of care ranging from hospitals to nursing facilities and even in-home pharmacy services required after a hospital stay. The specialize in senior/long-term care and specialty oncology services that traditional community pharmacies don't address.
PharMerica was formed as a public company in 2007 through the combination of the institutional pharmacy business of national healthcare services company Kindred Healthcare, Inc. and pharmaceutical services company AmerisourceBergen Corporation.
According to Wikipedia, "In August 2011, pharmacy services provider Omnicare made a bid of $457 million for all outstanding shares of PharMerica. The Federal Trade Commission sued Omnicare to block the deal on the basis that the FTC believed the acquisition would lead to higher drug prices. In February 2012, Omnicare allowed its offer to the shareholders of PharMerica to expire."
I'm sure that PMC shareholders since 2012 are quite satisfied with this result as the shares have advanced from the low teens. And I think that the recently tested multi-year support tested in March at $20 gives a good risk-reward reference for the stock.
Bottom Line: PMC Delivers
PharMerica ranks as an industry-leading U.S. provider of institutional pharmacy services in terms of annual revenues.
And those strong revenues create a compelling value case with a remarkable Price-to-Sales ratio of 0.40.
This is why PMC has one of the top Zacks composite style scores of "A" for all three metrics of Value, Growth, and Momentum.
And it's why you should consider PMC one of your top plays in the pharmacy industry.
Bear of the Day :
AbbVie ( ABBV ) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares.
According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis.
But ABBV shares were already pushed into the cellar of the Zacks Rank before this news because of a slide in earnings estimates over the past 30 days. Full-year 2106 profit projections fell from $5.00 to $4.77 and the 2017 consensus EPS estimate dropped from $5.99 to $5.73.
And that loss of earnings momentum is what makes ABBV today's Bear of the Day by virtue of its Zacks #5 Rank (Strong Sell). This simply means that relative to over 4,000 other stocks across all sectors, ABBV has poor prospects for a price advance because of the magnitude and agreement of negative EPS revisions from analysts.
The Coherus Challenge
Part of this action by analysts in the past month may have been in anticipation of the move by Federal patent authorities. Coherus management revealed at an investor conference in January that the company planned to file an application this year to market a biosimilar (generic) version of Humira.
On Tuesday, Coherus Chief Executive Denny Lanfear said they are "confident that this will lead to a final decision nullifying" the patent.
Shares Coherus shot up nearly 16% to $18.83 on very strong volume of 1.6 million shares, over five times their daily average.
AbbVie responded "we are confident in the validity of our patents and will vigorously defend them."
"Humira is protected by many patents covering all aspects of its manufacture, formulation and indications, and the patents are the result of AbbVie's investment in biologic innovation and the unique attributes of Humira," a spokesperson said.
According to the Dow Jones article by Anne Steele, Humira was the second best-selling drug in the U.S. in 2015 and is AbbVie's largest source of revenue.
AbbVie has also been preparing for this competitive battle by taking out about 70 patents for Humira, one of the largest patent portfolios ever assembled for a single drug.
Again from Steele, "The drug's primary U.S. patent is due to expire in December, but AbbVie says the additional patents should keep copycat versions of Humira off the U.S. market until at least 2022, and possibly longer."
Bottom Line for ABBV: Watch the Zacks Rank
While this patent battle could actually become a multi-year war, after today's big news the analysts may continue to revise ABBV estimates downward. And that could keep it in the basement of the Zacks Rank for a while.
Additional content:
Burger Stocks Earnings Recap: HABT, RRGB, SHAK
Red Robin Gourmet Burgers, Inc. ( RRGB ) reported its first-quarter earnings before the market opened on Tuesday, capping off the earnings season for the niche burger stocks.
For Red Robin, quarter one was not too friendly. Although the company reported earnings of $1.27 per share, which beat the Zacks Consensus Estimate of $1.10, shares tumbled over 18% on weak sales numbers and lowered guidance.
The sit-down burger chain posted revenues of $402.1 million, which missed our consensus estimate of $416 million. Furthermore, the company lowered its revenue guidance from its previously expected 8.5% to 9.5% growth range. Red Robin now expects its 2016 revenue to grow by just 8%.
Another burger specialist, The Habit Restaurants, Inc. ( HABT ), also reported its first-quarter earnings recently . The Irvine, California-based chain posted earnings of 10 cents per share, which was in-line with the Zacks Consensus Estimate.
The Habit narrowly missed revenue expectations, posting $67 million versus our consensus estimate of $68 million. Additionally, the company said it expects 2016 revenue to be within the range of $286 million to $290 million. Our consensus estimate currently sits at $288 million.
Finally, Shake Shack, Inc. ( SHAK ) also reported earnings last week. The burger chain from New York posted earnings of eight cents per share, which just beat the Zacks Consensus Estimate of seven cents. The company also edged out our revenue estimate of $53 million with its reported $54 million in quarterly revenue.
Shake Shack also raised its guidance. The company now expects revenues in the range of $245 million to $249 million, up from $237-$242 million projected earlier. Shake Shack also said it now plans to open 16 stores this year, up from its previous goal of 13.
Stay tuned for the latest on all things burger stock related, as well as the rest of the restaurant business!
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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. | Bear of the Day : AbbVie ( ABBV ) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. For Immediate Release Chicago, IL - May 18, 2016- Zacks Equity Research highlights PharMerica Corporation ( PMC ) as the Bull of the Day and AbbVie ( ABBV ) as the Bear of the Day. According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis. | Click to get this free report PHARMERICA CORP (PMC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report RED ROBIN GOURM (RRGB): Free Stock Analysis Report HABIT RESTRNTS (HABT): Free Stock Analysis Report SHAKE SHACK INC (SHAK): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - May 18, 2016- Zacks Equity Research highlights PharMerica Corporation ( PMC ) as the Bull of the Day and AbbVie ( ABBV ) as the Bear of the Day. Bear of the Day : AbbVie ( ABBV ) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. | Click to get this free report PHARMERICA CORP (PMC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report RED ROBIN GOURM (RRGB): Free Stock Analysis Report HABIT RESTRNTS (HABT): Free Stock Analysis Report SHAKE SHACK INC (SHAK): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - May 18, 2016- Zacks Equity Research highlights PharMerica Corporation ( PMC ) as the Bull of the Day and AbbVie ( ABBV ) as the Bear of the Day. Bear of the Day : AbbVie ( ABBV ) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. | For Immediate Release Chicago, IL - May 18, 2016- Zacks Equity Research highlights PharMerica Corporation ( PMC ) as the Bull of the Day and AbbVie ( ABBV ) as the Bear of the Day. Bear of the Day : AbbVie ( ABBV ) was big in the news this week after Federal regulators agreed to review a key patent for the anti-inflammatory drug Humira, knocking the stock down 3.5% on over three times the average volume of 9 million shares. According to a story from Dow Jones on Tuesday by Anne Steele, the US Patent and Trademark Office's Patent Trial and Appeal Board took up a petition by hopeful rival Coherus BioSciences to look at AbbVie's patent on a Humira dosing regimen to treat rheumatoid arthritis. |
26571.0 | 2016-05-17 00:00:00 UTC | S&P 500 Movers: ABBV, URI | ABBV | https://www.nasdaq.com/articles/sp-500-movers-abbv-uri-2016-05-17 | nan | nan | In early trading on Tuesday, shares of United Rentals ( URI ) topped the list of the day's best performing components of the S&P 500 index, trading up 6.0%. Year to date, United Rentals has lost about 10.9% of its value.
And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 5.5%. AbbVie is lower by about 0.4% looking at the year to date performance.
Two other components making moves today are WestRock ( WRK ), trading down 3.7%, and Freeport-McMoran Copper & Gold ( FCX ), trading up 5.1% on the day.
VIDEO: S&P 500 Movers: ABBV, URI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 5.5%. VIDEO: S&P 500 Movers: ABBV, URI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie is lower by about 0.4% looking at the year to date performance. | VIDEO: S&P 500 Movers: ABBV, URI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 5.5%. AbbVie is lower by about 0.4% looking at the year to date performance. | VIDEO: S&P 500 Movers: ABBV, URI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 5.5%. AbbVie is lower by about 0.4% looking at the year to date performance. | And the worst performing S&P 500 component thus far on the day is AbbVie ( ABBV ), trading down 5.5%. VIDEO: S&P 500 Movers: ABBV, URI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie is lower by about 0.4% looking at the year to date performance. |
26572.0 | 2016-05-17 00:00:00 UTC | Why AbbVie Inc (ABBV), GrubHub Inc (GRUB) and LendingClub Corp (LC) Are 3 of Today’s Worst Stocks | ABBV | https://www.nasdaq.com/articles/why-abbvie-inc-abbv-grubhub-inc-grub-and-lendingclub-corp-lc-are-3-of-todays-worst-stocks | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Between surging inflation and a strong uptick in housing starts and building permits, Janet Yellen was given another batch of reasons to accelerate rather than decelerate her rate-hike timeline. Inflation grew at its fastest pace in three years last month , even if the bulk of the increase was driven by rising but still-low gasoline prices.
Spooked investors sent the S&P 500 to a close of 2047.21, down 0.94% from Monday's close.
Leading the way lower were AbbVie Inc (NYSE: ABBV ), LendingClub Corp (NYSE: LC ) and GrubHub Inc (NYSE: GRUB ). Here's what went wrong for each.
AbbVie Inc (ABBV)
Drugmaker AbbVie thought its rheumatoid arthritis drug Humira was all its own, with no legal threats on the horizon. As it turns out, AbbVie was wrong.
On Tuesday, biopharma company Coherus Biosciences Inc (NASDAQ: CHRS ) announced the U.S. patent office was reviewing a claim that would allow it to make a biosimilar version of the Humira .
10 Stocks That Have Nothing Left to Give
The drug's patent doesn't expire until 2025, but through a technicality unique to the way drug is created and works, Coherus may be allowed to begin making its own version of the drug well before the patent expires . At stake is a sizeable piece of the $14 billion worth of annual revenue Humira currently drives.
ABBV closed down by more 3.5% today.
GrubHub Inc (GRUB)
Food delivery outfit GrubHub didn't do anything wrong to deserve the near 8% stumble its stock took today.
Indeed, the company just upped its Q2 and full-year revenue guidance to reflect the recent - and smart - acquisition of LAbite, which actually served to strengthen a budding rally effort from GRUB. Rather, GRUB became yet another victim of Amazon.com, Inc. (NASDAQ: AMZN ), which is stepping further and further into GrubHub's food-delivery turf.
On Tuesday morning, Amazon announced it would begin offering restaurant delivery services in Manhattan and Dallas , bringing the total number of meal delivery markets Amazon serves to ten, and counting.
The expanding footprint of Amazon's food delivery offer poses a serious threat to companies like GrubHub, as the company can afford to offer its service for free to Prime Customers, and then recoup any such losses on the service by monetizing those customers in other ways.
LendingClub Corp (LC)
Finally, anyone who thought the LendingClub drama ended when CEO Renaud Laplanche stepped down following a violation of the company's integrity policy was mistaken. A whole new batch of drama was drubbed up today, sending LC shares more than 8% lower for the session.
No accusations have been made yet, and the company didn't explain the nature of the request. The mere fact that the Department of Justice has subpoenaed certain records kept by the company , however, is a major red flag for LC shareholders.
Most plausibly, the records in question pertain to reports that loans sold to buyers weren't of the credit-quality they were said to be. That discovery is the same reason Laplanche removed himself as the company's chief executive.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Why AbbVie Inc (ABBV), GrubHub Inc (GRUB) and LendingClub Corp (LC) Are 3 of Today's Worst Stocks appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Leading the way lower were AbbVie Inc (NYSE: ABBV ), LendingClub Corp (NYSE: LC ) and GrubHub Inc (NYSE: GRUB ). AbbVie Inc (ABBV) Drugmaker AbbVie thought its rheumatoid arthritis drug Humira was all its own, with no legal threats on the horizon. As it turns out, AbbVie was wrong. | Leading the way lower were AbbVie Inc (NYSE: ABBV ), LendingClub Corp (NYSE: LC ) and GrubHub Inc (NYSE: GRUB ). The post Why AbbVie Inc (ABBV), GrubHub Inc (GRUB) and LendingClub Corp (LC) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . AbbVie Inc (ABBV) Drugmaker AbbVie thought its rheumatoid arthritis drug Humira was all its own, with no legal threats on the horizon. | The post Why AbbVie Inc (ABBV), GrubHub Inc (GRUB) and LendingClub Corp (LC) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . Leading the way lower were AbbVie Inc (NYSE: ABBV ), LendingClub Corp (NYSE: LC ) and GrubHub Inc (NYSE: GRUB ). AbbVie Inc (ABBV) Drugmaker AbbVie thought its rheumatoid arthritis drug Humira was all its own, with no legal threats on the horizon. | ABBV closed down by more 3.5% today. The post Why AbbVie Inc (ABBV), GrubHub Inc (GRUB) and LendingClub Corp (LC) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . Leading the way lower were AbbVie Inc (NYSE: ABBV ), LendingClub Corp (NYSE: LC ) and GrubHub Inc (NYSE: GRUB ). |
26573.0 | 2016-05-17 00:00:00 UTC | Health Care Sector Update for 05/17/2016: CHRS,ABBV,CYTX,AEGR | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-05172016-chrsabbvcytxaegr-2016-05-17 | nan | nan | Top Health Care Stocks
JNJ -0.65%
PFE -1.24%
MRK -1.52%
ABT -0.75%
AMGN -2.15%
Health care stocks were mostly lower this afternoon, with the NYSE Health Care Index posing a 1.0% retreat while shares of health care companies in the S&P 500 were down 1.3% as a group.
In company news, shares of AbbVie ( ABBV ) and Coherus BioSciences ( CHRS ) were speeding in opposite directions Tuesday after the U.S. Patent Trial and Appeal Board sided with Coherus in the companies' fight over the patents underlying AbbVie's Humira rheumatoid arthritis treatment.
Humira is AbbVie's best selling drug with around $14 in yearly sales, or about 61% of the company's total sales. Coherus in January unveiled plans to market a biosimilar version of Humira and CEO Denny Lanfear today said he was confident the patent office decision "will lead to a final decision nullifying" the AbbVie patent.
Specifically, the patent and appeals panel accepted Coherus' petition for an inter partes review of AbbVie's U.S. Patent 8,889,135 and an indication for twice-monthly subcutaneous injections to treat rheumatoid arthritis. The review is expected to take about a year and AbbVie could delay an unfavorable decision by another year by asking for an appeal.
CHRS shares were up almost 16% at $18.85 apiece, earlier climbing to a session high of $20.00 a share. ABBV shares were down over 4% at $59.75 each, rebounding from an earlier decline as low as $58.50 a share.
In other sector news,
(+) CYTX, Discloses plans to present an update on use of its Cytori CEll Therapy in the French SCLERADEC I and II clinical trials.
(-) AEGR. Swings to Q1 adjusted net loss of $1.72 per share, reversing $0.06 per share profit last year and exceeding expectations for a $0.27 per share loss. Revenue falls 39.9% to $35.7 mln, also lagging $43 mln consensus call.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, shares of AbbVie ( ABBV ) and Coherus BioSciences ( CHRS ) were speeding in opposite directions Tuesday after the U.S. Patent Trial and Appeal Board sided with Coherus in the companies' fight over the patents underlying AbbVie's Humira rheumatoid arthritis treatment. Coherus in January unveiled plans to market a biosimilar version of Humira and CEO Denny Lanfear today said he was confident the patent office decision "will lead to a final decision nullifying" the AbbVie patent. Humira is AbbVie's best selling drug with around $14 in yearly sales, or about 61% of the company's total sales. | In company news, shares of AbbVie ( ABBV ) and Coherus BioSciences ( CHRS ) were speeding in opposite directions Tuesday after the U.S. Patent Trial and Appeal Board sided with Coherus in the companies' fight over the patents underlying AbbVie's Humira rheumatoid arthritis treatment. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Humira is AbbVie's best selling drug with around $14 in yearly sales, or about 61% of the company's total sales. | In company news, shares of AbbVie ( ABBV ) and Coherus BioSciences ( CHRS ) were speeding in opposite directions Tuesday after the U.S. Patent Trial and Appeal Board sided with Coherus in the companies' fight over the patents underlying AbbVie's Humira rheumatoid arthritis treatment. Humira is AbbVie's best selling drug with around $14 in yearly sales, or about 61% of the company's total sales. Coherus in January unveiled plans to market a biosimilar version of Humira and CEO Denny Lanfear today said he was confident the patent office decision "will lead to a final decision nullifying" the AbbVie patent. | In company news, shares of AbbVie ( ABBV ) and Coherus BioSciences ( CHRS ) were speeding in opposite directions Tuesday after the U.S. Patent Trial and Appeal Board sided with Coherus in the companies' fight over the patents underlying AbbVie's Humira rheumatoid arthritis treatment. The review is expected to take about a year and AbbVie could delay an unfavorable decision by another year by asking for an appeal. ABBV shares were down over 4% at $59.75 each, rebounding from an earlier decline as low as $58.50 a share. |
26574.0 | 2016-05-17 00:00:00 UTC | Noteworthy Tuesday Option Activity: DAL, CHD, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-dal-chd-abbv-2016-05-17 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Delta Air Lines, Inc. (Symbol: DAL), where a total volume of 88,594 contracts has been traded thus far today, a contract volume which is representative of approximately 8.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 77.3% of DAL's average daily trading volume over the past month, of 11.5 million shares. Particularly high volume was seen for the $50 strike call option expiring September 16, 2016 , with 28,321 contracts trading so far today, representing approximately 2.8 million underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
Church & Dwight Co., Inc. (Symbol: CHD) options are showing a volume of 4,372 contracts thus far today. That number of contracts represents approximately 437,200 underlying shares, working out to a sizeable 67.6% of CHD's average daily trading volume over the past month, of 647,125 shares. Especially high volume was seen for the $95 strike call option expiring May 20, 2016 , with 1,805 contracts trading so far today, representing approximately 180,500 underlying shares of CHD. Below is a chart showing CHD's trailing twelve month trading history, with the $95 strike highlighted in orange:
And AbbVie Inc. (Symbol: ABBV) options are showing a volume of 54,672 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 65.5% of ABBV's average daily trading volume over the past month, of 8.4 million shares. Especially high volume was seen for the $59 strike put option expiring May 20, 2016 , with 13,880 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $59 strike highlighted in orange:
For the various different available expirations for DAL options , CHD options , or ABBV options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $59 strike put option expiring May 20, 2016 , with 13,880 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing CHD's trailing twelve month trading history, with the $95 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) options are showing a volume of 54,672 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 65.5% of ABBV's average daily trading volume over the past month, of 8.4 million shares. | Below is a chart showing CHD's trailing twelve month trading history, with the $95 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) options are showing a volume of 54,672 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 65.5% of ABBV's average daily trading volume over the past month, of 8.4 million shares. Especially high volume was seen for the $59 strike put option expiring May 20, 2016 , with 13,880 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. | That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 65.5% of ABBV's average daily trading volume over the past month, of 8.4 million shares. Below is a chart showing CHD's trailing twelve month trading history, with the $95 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) options are showing a volume of 54,672 contracts thus far today. Especially high volume was seen for the $59 strike put option expiring May 20, 2016 , with 13,880 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. | Especially high volume was seen for the $59 strike put option expiring May 20, 2016 , with 13,880 contracts trading so far today, representing approximately 1.4 million underlying shares of ABBV. Below is a chart showing CHD's trailing twelve month trading history, with the $95 strike highlighted in orange: And AbbVie Inc. (Symbol: ABBV) options are showing a volume of 54,672 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 65.5% of ABBV's average daily trading volume over the past month, of 8.4 million shares. |
26575.0 | 2016-05-16 00:00:00 UTC | 3 Cheap Stocks Set to Double Their Dividends | ABBV | https://www.nasdaq.com/articles/3-cheap-stocks-set-double-their-dividends-2016-05-16 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Plenty of investors judge a stock's dividend by one thing: the current yield. It's a key figure, to be sure, but it's just a starting point. If you're investing for the long haul, dividend growth is way more important.
To see how focusing solely on current yield distorts the payout picture, take a look at Microsoft Corporation ( MSFT ). The stock currently boasts a 2.6% dividend yield, just above the S&P 500 average of 2.2%.
That's not bad, but it masks the 125% boost in the company's dividend over the past five years: if you'd bought MSFT back then, when the stock was trading around $25.70 - roughly half of today's level - you'd already be banking a 5.6% yield on your initial buy.
Before you ask, no, I don't recommend buying Microsoft now, despite its glowing dividend history. That's because the software giant's payout hikes could be a lot smaller in the next five years than they were in the last five.
Why? For one, its payout ratio has broken over 100%, which means it's paid out more in dividends in the last 12 months than it's earned-never a good sign for future increases.
And two, the profits backstopping those payouts flat-lined in the first quarter as the terminally ill PC market dragged down Windows 10 sales, offsetting Microsoft's growth in mobile and the cloud.
The 7 Best Tech Stocks … Of 2020!
Luckily, the three stocks below face no such roadblocks. Not only do they have the low payout ratios and rising earnings they need to double their payouts in the next five years, they're trading at bargain valuations, to boot.
The Anti-Microsoft
Ingersoll-Rand PLC ( IR ) is about as unexciting a business as you'll find. The 145-year-old company makes air compressors, heating and air conditioning systems, pumps, tools and golf carts.
The stock's 1.9% dividend yield is equally unexciting, but the company is the fastest dividend grower of my three picks, nearly tripling its payout in the past five years.
Manufacturing is a volatile business, but 76% of Ingersoll-Rand's revenue comes from heating and air conditioning, a market that's forecast to grow at a 9% compound annual rate in the next five years as the need for ever-more-efficient gear drives demand higher.
Wall Street sees IR's earnings per share paralleling that rise, gaining 9.1% this year and another 9.8% in 2017. That, plus the company's low payout ratio - just 43% of its last 12 months of earnings - makes another big dividend hike next February (Ingersoll-Rand boosted its payout by 10% last February) a lock.
The stock has gained 19% this year, as investors have come to see Ingersoll-Rand as more than just another cyclical industrial stock, but its forward P/E ratio still clocks in at 16.2, a nice discount to its industry (18.2).
Apple's Favorite Carmaker?
If the latest rumors about the Apple Inc. ( AAPL ) Car are right, you can expect to hear a lot more about Canadian auto-parts supplier Magna International Inc. ( MGA ) in the next five years: it's reportedly in talks with the tech giant about building its mysterious new ride.
The rumors highlight Magna's ability to assemble whole vehicles under contract, a rarity in the components business and a big draw for tech giants, like Apple and Alphabet Inc ( GOOGL ), looking to sell their own electric- and self-driving cars.
Meantime, the boom in U.S. auto sales still has lots of room to run, thanks to cheap fuel, continued low interest rates and America's geriatric vehicle fleet, which is around 11.4 years old, on average.
Magna, which yields 2.5% today, has doubled its dividend in the last five years, so if you'd bought back then, you'd already be yielding a tidy 3.9% on your original buy. A repeat performance looks likely, thanks to Magna's ultra-low 18% payout ratio, which gives it plenty of room to maneuver, even if car sales downshift.
And if Tim Cook does sign on, it would light a fire under Magna's stock, which is already one of the best deals on the lot at just 7.7 times forward earnings.
A Prescription for Dividend Growth
AbbVie Inc ( ABBV ) has only been around since 2013, when it was spun off from Abbott Laboratories ( ABT ), but it's hiked its payout by 42% in that time. It also boasts the highest yield of my five picks, at 3.6%, so you're already off to a running start on the payout front.
Buying drug stocks is all about the pipeline, and AbbVie just snagged a potential hit through its $5.8-billion deal for Stemcentrx, which is developing a treatment for small cell lung cancer (SCLC) called Rova T.
There are about 224,000 lung-cancer cases diagnosed in the U.S. every year, and SCLC accounts for 15% of those. There aren't many other treatments, which is why AbbVie pegs Rova T's potential sales at $5 billion a year if it makes it through the testing phase. That represents about 22% of the company's annual revenue of $23 billion.
Of course, an experimental drug can fail at any point, but no matter what happens, AbbVie will remain a free cash flow machine. In the first quarter, it generated $1.24 a share in FCF, easily covering its $0.57 dividend. The stock also trades at just 12.5 times forward earnings.
These Ignored Investments Can Double Your Income Overnight
AbbVie, Magna and Ingersoll-Rand are all great buys now, but even if they double their payouts in the next five years, the yield on your original buy still won't be anywhere near what my three favorite high-yield investments pay right now.
7 Dividend Stocks You Can Hold With Your Eyes Closed
These hidden gems throw off 8.0%, 8.4% and even 11% yields today. And your downside risk is minimal: even if the market takes a tumble, these top-notch dividend plays will simply trade flat … and we'll still collect those fat 8% to 11% yields.
Best case, they'll jump 20% … and we'll still collect those fat dividends!
I'm not the only one pounding the table on them. So is Jeffrey Gundlach, one of the top fund managers on the planet.
He's been dubbed the "Bond God" for his 20-year track record and the extraordinary performance of DoubleLine, the $85-billion asset-management firm he co-founded in 2009. Right now, Gundlach's calling these rock-solid yield plays a "slam dunk" and a "no-brainer"-and I agree 100%.
Even better, my top three picks are trading at discounts of 7% to 15%, so double-digit gains will practically fall into your lap as mainstream investors catch on to what they've been missing.
Click here to get the full story and the names of these three rock-solid income picks now .
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The post 3 Cheap Stocks Set to Double Their Dividends 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. | A Prescription for Dividend Growth AbbVie Inc ( ABBV ) has only been around since 2013, when it was spun off from Abbott Laboratories ( ABT ), but it's hiked its payout by 42% in that time. Buying drug stocks is all about the pipeline, and AbbVie just snagged a potential hit through its $5.8-billion deal for Stemcentrx, which is developing a treatment for small cell lung cancer (SCLC) called Rova T. There are about 224,000 lung-cancer cases diagnosed in the U.S. every year, and SCLC accounts for 15% of those. There aren't many other treatments, which is why AbbVie pegs Rova T's potential sales at $5 billion a year if it makes it through the testing phase. | A Prescription for Dividend Growth AbbVie Inc ( ABBV ) has only been around since 2013, when it was spun off from Abbott Laboratories ( ABT ), but it's hiked its payout by 42% in that time. Buying drug stocks is all about the pipeline, and AbbVie just snagged a potential hit through its $5.8-billion deal for Stemcentrx, which is developing a treatment for small cell lung cancer (SCLC) called Rova T. There are about 224,000 lung-cancer cases diagnosed in the U.S. every year, and SCLC accounts for 15% of those. There aren't many other treatments, which is why AbbVie pegs Rova T's potential sales at $5 billion a year if it makes it through the testing phase. | These Ignored Investments Can Double Your Income Overnight AbbVie, Magna and Ingersoll-Rand are all great buys now, but even if they double their payouts in the next five years, the yield on your original buy still won't be anywhere near what my three favorite high-yield investments pay right now. A Prescription for Dividend Growth AbbVie Inc ( ABBV ) has only been around since 2013, when it was spun off from Abbott Laboratories ( ABT ), but it's hiked its payout by 42% in that time. Buying drug stocks is all about the pipeline, and AbbVie just snagged a potential hit through its $5.8-billion deal for Stemcentrx, which is developing a treatment for small cell lung cancer (SCLC) called Rova T. There are about 224,000 lung-cancer cases diagnosed in the U.S. every year, and SCLC accounts for 15% of those. | These Ignored Investments Can Double Your Income Overnight AbbVie, Magna and Ingersoll-Rand are all great buys now, but even if they double their payouts in the next five years, the yield on your original buy still won't be anywhere near what my three favorite high-yield investments pay right now. A Prescription for Dividend Growth AbbVie Inc ( ABBV ) has only been around since 2013, when it was spun off from Abbott Laboratories ( ABT ), but it's hiked its payout by 42% in that time. Buying drug stocks is all about the pipeline, and AbbVie just snagged a potential hit through its $5.8-billion deal for Stemcentrx, which is developing a treatment for small cell lung cancer (SCLC) called Rova T. There are about 224,000 lung-cancer cases diagnosed in the U.S. every year, and SCLC accounts for 15% of those. |
26576.0 | 2016-05-13 00:00:00 UTC | SPDR S&P Dividend ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/spdr-sp-dividend-etf-experiences-big-outflow-2016-05-13 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Dividend ETF (Symbol: SDY) where we have detected an approximate $350.8 million dollar outflow -- that's a 2.6% decrease week over week (from 167,503,658 to 163,203,658). Among the largest underlying components of SDY, in trading today HCP, Inc. (Symbol: HCP) is down about 0.4%, Old Republic International Corp. (Symbol: ORI) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.1%. For a complete list of holdings, visit the SDY Holdings page » The chart below shows the one year price performance of SDY, versus its 200 day moving average:
Looking at the chart above, SDY's low point in its 52 week range is $46.22 per share, with $81.85 as the 52 week high point - that compares with a last trade of $81.22. 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 SDY, in trading today HCP, Inc. (Symbol: HCP) is down about 0.4%, Old Republic International Corp. (Symbol: ORI) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.1%. For a complete list of holdings, visit the SDY Holdings page » The chart below shows the one year price performance of SDY, versus its 200 day moving average: Looking at the chart above, SDY's low point in its 52 week range is $46.22 per share, with $81.85 as the 52 week high point - that compares with a last trade of $81.22. 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 SDY, in trading today HCP, Inc. (Symbol: HCP) is down about 0.4%, Old Republic International Corp. (Symbol: ORI) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.1%. For a complete list of holdings, visit the SDY Holdings page » The chart below shows the one year price performance of SDY, versus its 200 day moving average: Looking at the chart above, SDY's low point in its 52 week range is $46.22 per share, with $81.85 as the 52 week high point - that compares with a last trade of $81.22. 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. | Among the largest underlying components of SDY, in trading today HCP, Inc. (Symbol: HCP) is down about 0.4%, Old Republic International Corp. (Symbol: ORI) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Dividend ETF (Symbol: SDY) where we have detected an approximate $350.8 million dollar outflow -- that's a 2.6% decrease week over week (from 167,503,658 to 163,203,658). For a complete list of holdings, visit the SDY Holdings page » The chart below shows the one year price performance of SDY, versus its 200 day moving average: Looking at the chart above, SDY's low point in its 52 week range is $46.22 per share, with $81.85 as the 52 week high point - that compares with a last trade of $81.22. | Among the largest underlying components of SDY, in trading today HCP, Inc. (Symbol: HCP) is down about 0.4%, Old Republic International Corp. (Symbol: ORI) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Dividend ETF (Symbol: SDY) where we have detected an approximate $350.8 million dollar outflow -- that's a 2.6% decrease week over week (from 167,503,658 to 163,203,658). For a complete list of holdings, visit the SDY Holdings page » The chart below shows the one year price performance of SDY, versus its 200 day moving average: Looking at the chart above, SDY's low point in its 52 week range is $46.22 per share, with $81.85 as the 52 week high point - that compares with a last trade of $81.22. |
26577.0 | 2016-05-13 00:00:00 UTC | The Zacks Analyst Blog Highlights: Medivation, Juno, Kite, ARIAD and AbbVie | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-medivation-juno-kite-ariad-and-abbvie-2016-05-13 | nan | nan | For Immediate Release
Chicago, IL - May 13, 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 Medivation ( MDVN ), Juno ( JUNO ), Kite ( KITE ), ARIAD ( ARIA ) and AbbVie ( ABBV ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Thursday's Analyst Blog:
Biotech Stock Roundup: MDVN Rumors Continue
Earnings remained in focus this week as well with several small and mid-sized biotech companies reporting results. Meanwhile, Medivation ( MDVN ) remains in the news as the acquisition saga continues with more companies rumored to be interested in buying the firm.
Other updates include data presentations as well as label expansions and product approvals.
Recap of the Week's Most Important Stories
1. With first quarter earnings season drawing to a close, several small and mid-sized biotech companies reported results over the last five trading days. Most of these are companies like Juno ( JUNO ), Kite ( KITE ) and Repros which have no approved products in their portfolios and are still in the development stage. In such a scenario, investors are more focused on the pipelines and cash burn.
Kite and Juno are key names in the immuno-oncology space with both looking to bring their lead candidates to market in 2017. While Juno's JCAR015 is in a registrational phase II study (ROCKET) in adult patients with relapsed/refractory acute lymphoblastic leukemia (Read more: Juno Posts Wider Loss in Q1, Focus on Pipeline ), Kite's KTE-C19 is in the pivotal phase of a phase I-II study (ZUMA-1) in patients with refractory diffuse large B cell lymphoma including primary mediastinal B cell lymphoma and transformed follicular lymphoma (Read more: Kite Pharma Posts Narrower-than-Expected Loss in Q1 ).
2. Medivation, which had rejected an unsolicited offer from French drugmaker Sanofi, continues to be in the news as speculation increases about other companies being interested in acquiring Medivation. The latest rumor is that the company is now interested in selling itself. According to a Reuters article, Pfizer and Amgen are some of the companies that have signed non-disclosure agreements with Medivation.
3. As part of its ongoing strategic review, ARIAD ( ARIA ) has decided to divest its European operations and out-license Iclusig in Europe and a few other countries to Incyte. This deal will allow ARIAD to focus its efforts in the U.S. and it also provides the company with a non-dilutive source of funds. Under this agreement, ARIAD stands to receive up to $275 million including an upfront payment of $140 million plus tiered royalties starting from 32% that could go up to 50%.
4. The FDA expanded the label of AbbVie's ( ABBV ) cancer treatment, Imbruvica. The label now includes new data from two late-stage studies supporting its expanded use in patients with chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL).
AbbVie and Bristol-Myers also gained EU approval for their blood cancer treatment, Empliciti making it the first and only immunostimulatory antibody approved for multiple myeloma in the EU.
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MEDIVATION INC (MDVN): Free Stock Analysis Report
JUNO THERAPEUTC (JUNO): Free Stock Analysis Report
KITE PHARMA INC (KITE): Free Stock Analysis Report
ARIAD PHARMA (ARIA): Free Stock Analysis Report
ABBVIE INC (ABBV): 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 Medivation ( MDVN ), Juno ( JUNO ), Kite ( KITE ), ARIAD ( ARIA ) and AbbVie ( ABBV ). The FDA expanded the label of AbbVie's ( ABBV ) cancer treatment, Imbruvica. AbbVie and Bristol-Myers also gained EU approval for their blood cancer treatment, Empliciti making it the first and only immunostimulatory antibody approved for multiple myeloma in the EU. | Stocks recently featured in the blog include Medivation ( MDVN ), Juno ( JUNO ), Kite ( KITE ), ARIAD ( ARIA ) and AbbVie ( ABBV ). Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report JUNO THERAPEUTC (JUNO): Free Stock Analysis Report KITE PHARMA INC (KITE): Free Stock Analysis Report ARIAD PHARMA (ARIA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The FDA expanded the label of AbbVie's ( ABBV ) cancer treatment, Imbruvica. | Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report JUNO THERAPEUTC (JUNO): Free Stock Analysis Report KITE PHARMA INC (KITE): Free Stock Analysis Report ARIAD PHARMA (ARIA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Medivation ( MDVN ), Juno ( JUNO ), Kite ( KITE ), ARIAD ( ARIA ) and AbbVie ( ABBV ). The FDA expanded the label of AbbVie's ( ABBV ) cancer treatment, Imbruvica. | Stocks recently featured in the blog include Medivation ( MDVN ), Juno ( JUNO ), Kite ( KITE ), ARIAD ( ARIA ) and AbbVie ( ABBV ). The FDA expanded the label of AbbVie's ( ABBV ) cancer treatment, Imbruvica. AbbVie and Bristol-Myers also gained EU approval for their blood cancer treatment, Empliciti making it the first and only immunostimulatory antibody approved for multiple myeloma in the EU. |
26578.0 | 2016-05-12 00:00:00 UTC | New Strong Sell Stocks for May 12th | ABBV | https://www.nasdaq.com/articles/new-strong-sell-stocks-for-may-12th-2016-05-12 | nan | nan | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) list today:
1st Constitution BancorpFCCY
Abaxis IncABAX
American Midstream Partners LPAMID
AbbVie IncABBV
AmerisourceBergen Corp.ABC
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ABAXIS INC (ABAX): Free Stock Analysis Report
AMERISOURCEBRGN (ABC): Free Stock Analysis Report
AMER MIDSTREAM (AMID): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
1ST CONSTIT BCP (FCCY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) list today: 1st Constitution BancorpFCCY Abaxis IncABAX American Midstream Partners LPAMID AbbVie IncABBV AmerisourceBergen Corp.ABC View the entire Zacks Rank #5 List . Click to get this free report ABAXIS INC (ABAX): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) list today: 1st Constitution BancorpFCCY Abaxis IncABAX American Midstream Partners LPAMID AbbVie IncABBV AmerisourceBergen Corp.ABC View the entire Zacks Rank #5 List . Click to get this free report ABAXIS INC (ABAX): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) list today: 1st Constitution BancorpFCCY Abaxis IncABAX American Midstream Partners LPAMID AbbVie IncABBV AmerisourceBergen Corp.ABC View the entire Zacks Rank #5 List . Click to get this free report ABAXIS INC (ABAX): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) list today: 1st Constitution BancorpFCCY Abaxis IncABAX American Midstream Partners LPAMID AbbVie IncABBV AmerisourceBergen Corp.ABC View the entire Zacks Rank #5 List . Click to get this free report ABAXIS INC (ABAX): Free Stock Analysis Report AMERISOURCEBRGN (ABC): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days. |
26579.0 | 2016-05-10 00:00:00 UTC | Stock Market News for May 10, 2016 | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-may-10-2016-2016-05-10 | nan | nan | Benchmarks closed mixed on Monday after gains in healthcare stocks offset declines in energy stocks. Gains in biotech stocks had a positive impact on broader healthcare sector. However, oil prices decline dragged energy stocks downward, which in turn weighed on investor sentiment. Both the S&P 500 and Nasdaq ended in the red, while the Dow finished in the red.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) decreased 0.2%, to close at 17,705.91. However, the S&P 500 rose 0.1% to close at 2,058.69. The tech-laden Nasdaq Composite Index closed at 4,750.21, gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) decreased 1% to settle at 14.57. A total of around 6.8 billion shares were traded on Monday, lower than the last 20-session average of 7.2 billion shares. Decliners outpaced advancing stocks on the NYSE. For 52% stocks that declined, 45% advanced.
Shares of Teva Pharmaceutical Industries Limited ( TEVA ) increased 5.1% after the company's first quarter earnings came in at $1.20 per share, beating Zacks Consensus Estimates of $1.13. Teva posted revenues of $4.81 billion, surpassing Zacks Consensus Estimates of $4.75 billion. Teva's better-than-expected earnings results boosted investor sentiment.
Moreover, Allergan plc's ( AGN ) shares rose 6% after Teva anticipated that its $40.5 billion acquisition of Allergan's drug business will be completed by June. Strong gains in shares of Allergan along with a gain of 6.1% in shares of Mallinckrodt Public Limited Company (MNK) boosted the healthcare sector.
The Health Care Select Sector SPDR ETF (XLV) advanced 1.1%, becoming the biggest gainer among the S&P 500 sectors. Key stocks from the sector including Biogen Inc. ( BIIB ), Celgene Corporation ( CELG ), AbbVie Inc. ( ABBV ), Amgen Inc. ( AMGN ) and Gilead Sciences Inc. ( GILD ) increased 2.5%, 2.2%, 1.9%, 1.5% and 1.2%, respectively. Dow components Johnson & Johnson ( JNJ ), Pfizer Inc. ( PFE ) and Merck & Co. Inc. ( MRK ) rose 0.9%, 0.7% and 0.9%, respectively. The iShares Nasdaq Biotechnology ETF (IBB) rose 2.6%, registering its best gains since April 21.
However, oil prices declined after the impact of Canadian wildfire on crude output declined. Moreover, Saudi Arabia's oil minister Ali al-Naimi was replaced by Saudi Arabia's state oil company, Saudi Aramco's chairman Khalid al-Falih. This in turn raised uncertainty over the oil policy of one of the leading oil producing countries of the world.
Also, crude inventories in the delivery hub of Cushing, Oklahoma have reportedly increased 1.4 million barrels last week. Both the WTI crude and Brent crude fell 2.8% and 4% to $43.44 per barrel and $43.63 a barrel, respectively.
Following oil price decline, the Energy Select Sector SPDR (XLE) decreased 1.5% and was the biggest loser among the major S&P 500 sectors. Key components including, Spectra Energy Corp. ( SE ), Occidental Petroleum Corporation ( OXY ), Halliburton Company ( HAL ), Southwestern Energy Company ( SWN ), Tesoro Corporation ( TSO ), Schlumberger Limited ( SLB ) and Chesapeake Energy Corporation ( CHK ) decreased 0.8%, 0.7%, 1.9%, 2.2%, 2.8%, 3.1% and 10.7%, respectively.
Additionally, as per preliminary data reported by China's General Administration of Custom, its oil imports increased 7.6% last month from a year ago. However, imports and exports declined 10.9% and 1.8%, respectively year over year. Meanwhile, foreign exchange reserves of the world's second largest economy rose for the second consecutive month to $3.22 trillion last month.
The Materials Select Sector SPDR ETF (XLB) declined 1.2% and was the second biggest loser among the S&P 500 sectors. Key holdings such as Freeport-McMoRan Inc. ( FCX ), Newmont Mining Corporation ( NEM ), LyondellBasell Industries N.V. ( LYB ), Ecolab Inc. ( ECL ), E. I. du Pont de Nemours and Company ( DD ), The Dow Chemical Company ( DOW ) and Alcoa Inc. ( AA ) decreased 10.8%, 6.7%, 1.1%, 1.4%, 0.3%, 0.6% and 5.8%, respectively.
Separately, shares of LendingClub Corporation ( LC ) slumped 34.9% after the company reported that its CEO Renaud Laplanche have resigned. This occurred after LendingClub's Board discovered that Laplanche has made "non-conforming sales" of loans worth $22 million to an institutional investor, consequently violating company's business practices. President Scott Sanborn will replace Laplanche.
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TEVA PHARM ADR (TEVA): Free Stock Analysis Report
ALLERGAN PLC (AGN): Free Stock Analysis Report
BIOGEN INC (BIIB): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
SPECTRA ENERGY (SE): Free Stock Analysis Report
OCCIDENTAL PET (OXY): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
SOUTHWESTRN ENE (SWN): Free Stock Analysis Report
TESORO CORP (TSO): 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. | Key stocks from the sector including Biogen Inc. ( BIIB ), Celgene Corporation ( CELG ), AbbVie Inc. ( ABBV ), Amgen Inc. ( AMGN ) and Gilead Sciences Inc. ( GILD ) increased 2.5%, 2.2%, 1.9%, 1.5% and 1.2%, respectively. Click to get this free report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report SPECTRA ENERGY (SE): Free Stock Analysis Report OCCIDENTAL PET (OXY): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report SOUTHWESTRN ENE (SWN): Free Stock Analysis Report TESORO CORP (TSO): Free Stock Analysis Report To read this article on Zacks.com click here. For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article The Dow Jones Industrial Average (DJI) decreased 0.2%, to close at 17,705.91. | Key stocks from the sector including Biogen Inc. ( BIIB ), Celgene Corporation ( CELG ), AbbVie Inc. ( ABBV ), Amgen Inc. ( AMGN ) and Gilead Sciences Inc. ( GILD ) increased 2.5%, 2.2%, 1.9%, 1.5% and 1.2%, respectively. Click to get this free report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report SPECTRA ENERGY (SE): Free Stock Analysis Report OCCIDENTAL PET (OXY): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report SOUTHWESTRN ENE (SWN): Free Stock Analysis Report TESORO CORP (TSO): Free Stock Analysis Report To read this article on Zacks.com click here. Key components including, Spectra Energy Corp. ( SE ), Occidental Petroleum Corporation ( OXY ), Halliburton Company ( HAL ), Southwestern Energy Company ( SWN ), Tesoro Corporation ( TSO ), Schlumberger Limited ( SLB ) and Chesapeake Energy Corporation ( CHK ) decreased 0.8%, 0.7%, 1.9%, 2.2%, 2.8%, 3.1% and 10.7%, respectively. | Click to get this free report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report SPECTRA ENERGY (SE): Free Stock Analysis Report OCCIDENTAL PET (OXY): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report SOUTHWESTRN ENE (SWN): Free Stock Analysis Report TESORO CORP (TSO): Free Stock Analysis Report To read this article on Zacks.com click here. Key stocks from the sector including Biogen Inc. ( BIIB ), Celgene Corporation ( CELG ), AbbVie Inc. ( ABBV ), Amgen Inc. ( AMGN ) and Gilead Sciences Inc. ( GILD ) increased 2.5%, 2.2%, 1.9%, 1.5% and 1.2%, respectively. Shares of Teva Pharmaceutical Industries Limited ( TEVA ) increased 5.1% after the company's first quarter earnings came in at $1.20 per share, beating Zacks Consensus Estimates of $1.13. | Key stocks from the sector including Biogen Inc. ( BIIB ), Celgene Corporation ( CELG ), AbbVie Inc. ( ABBV ), Amgen Inc. ( AMGN ) and Gilead Sciences Inc. ( GILD ) increased 2.5%, 2.2%, 1.9%, 1.5% and 1.2%, respectively. Click to get this free report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report SPECTRA ENERGY (SE): Free Stock Analysis Report OCCIDENTAL PET (OXY): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report SOUTHWESTRN ENE (SWN): Free Stock Analysis Report TESORO CORP (TSO): Free Stock Analysis Report To read this article on Zacks.com click here. However, oil prices decline dragged energy stocks downward, which in turn weighed on investor sentiment. |
26580.0 | 2016-05-06 00:00:00 UTC | New Strong Sell Stocks for May 6th | ABBV | https://www.nasdaq.com/articles/new-strong-sell-stocks-for-may-6th-2016-05-06 | nan | nan | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
1st Constitution BancorpFCCY
Abaxis IncABAX
AbbVie IncABBV
AIXTRON SEAIXG
American Railcar Industries, IncARII
View the entire Zacks Rank #5 List .
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AMER RAILCAR (ARII): Free Stock Analysis Report
AIXTRON AG-ADR (AIXG): Free Stock Analysis Report
ABAXIS INC (ABAX): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
1ST CONSTIT BCP (FCCY): 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. | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: 1st Constitution BancorpFCCY Abaxis IncABAX AbbVie IncABBV Click to get this free report AMER RAILCAR (ARII): Free Stock Analysis Report AIXTRON AG-ADR (AIXG): Free Stock Analysis Report ABAXIS INC (ABAX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): Free Stock Analysis Report To read this article on Zacks.com click here. American Railcar Industries, IncARII View the entire Zacks Rank #5 List . | Click to get this free report AMER RAILCAR (ARII): Free Stock Analysis Report AIXTRON AG-ADR (AIXG): Free Stock Analysis Report ABAXIS INC (ABAX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): 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. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: 1st Constitution BancorpFCCY Abaxis IncABAX AbbVie IncABBV | Click to get this free report AMER RAILCAR (ARII): Free Stock Analysis Report AIXTRON AG-ADR (AIXG): Free Stock Analysis Report ABAXIS INC (ABAX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): 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. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: 1st Constitution BancorpFCCY Abaxis IncABAX AbbVie IncABBV | Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: 1st Constitution BancorpFCCY Abaxis IncABAX AbbVie IncABBV Click to get this free report AMER RAILCAR (ARII): Free Stock Analysis Report AIXTRON AG-ADR (AIXG): Free Stock Analysis Report ABAXIS INC (ABAX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report 1ST CONSTIT BCP (FCCY): Free Stock Analysis Report To read this article on Zacks.com click here. Want the latest recommendations from Zacks Investment Research? |
26581.0 | 2016-05-04 00:00:00 UTC | Billionaire Larry Robbins' Top Five Stocks | ABBV | https://www.nasdaq.com/articles/billionaire-larry-robbins-top-five-stocks-2016-05-04 | nan | nan | Today is the Sohn Investment Conference in New York, where many of the top billionaire investors and hedge fund managers give their outlook on the stock market, the economy and talk about their favorite long and short picks.
Today we're going to talk about the first speaker at Sohn today, billionaire Larry Robbins.
Robbins runs the $10 billion hedge fund Glenview Capital Management. Glenview Capital has produced almost 20% annualized returns (before fees) since 2000. That’s $5 for every dollar produced by the S&P 500 over the same period. He famously bet that Obamacare would cause a boon for hospital and insurance stocks. In fact, Robbin’s Obamacare wager is widely considered one of the most profitable trades of the past decade. Glenview has made (both realized and paper gains) more than $3 billion in profits after buying up hospital and insurance stocks since 2012.
This hugely profitable bet made Robbins a billionaire and has catapulted his hedge fund to one of the best performing hedge funds over the past 5 years. In 2013 he posted a 101% return.
Like many of the other activists or billionaire investors Robbins’ edge is control. He takes big stakes in companies and he wants board seats. As you probably recognize, this is common practice for the best billionaire investors in the world. Control equals edge. And you must have an edge in markets to generate outsized returns (i.e. returns above and beyond what the broad market gives you – which is about 8% over the long run).
Today at Sohn, Robbins reiterated his bullish healthcare theme. He reiterated his long positions in Abbvie (ABBV), saying it’s even a better opportunity today than it was last year. Robbins also said that Brookdale Senior Living (BKD) ,which is one of the largest operators of senior and assisted living homes, should not be down as much as it is (Brookdale is down 50% over the last year). These were the two stocks he discussed last year but haven’t done well over the past month. With that, you have a chance to buy Robbins on the dip.
He wrapped up his presentation today talking about Anthem (ANTM) and its potential merger with Cigna (CI). Robbins believes Anthem has huge upside regardless of whether the merger gets approved or not as managed care is a great business and Anthem has an “overcapitalized” or strong balance sheet.
The top 5 Holdings of billionaire Larry Robbins and Glenview Capital Management are: Humana (HUM) 8%, Monsanto (MON) 7%, Cigna Corp (CI) 6%, HCA Holdings (HCA) 5.5%, Thermo Fisher Scientific (TMO) 5%.
Tomorrow we want to talk about a few more presenters at this year’s Sohn conference. Among them, billionaire Stan Druckenmiller, the legendary right hand man of the macro investing pioneer George Soros. Druckenmiller had a lot of company a couple of years ago at the conference when he criticized the Fed for trying to solve the world’s problems with monetary policy – staying too easy for too long. He hasn’t always been right, but he continues to be a doom and gloomer on the world.
Join us here to get all of our in-depth analysis on the bigger picture, and our carefully curated stock portfolio of the best stocks that are owned by the world's best investors.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | He reiterated his long positions in Abbvie (ABBV), saying it’s even a better opportunity today than it was last year. Today is the Sohn Investment Conference in New York, where many of the top billionaire investors and hedge fund managers give their outlook on the stock market, the economy and talk about their favorite long and short picks. Among them, billionaire Stan Druckenmiller, the legendary right hand man of the macro investing pioneer George Soros. | He reiterated his long positions in Abbvie (ABBV), saying it’s even a better opportunity today than it was last year. Today is the Sohn Investment Conference in New York, where many of the top billionaire investors and hedge fund managers give their outlook on the stock market, the economy and talk about their favorite long and short picks. Robbins runs the $10 billion hedge fund Glenview Capital Management. | He reiterated his long positions in Abbvie (ABBV), saying it’s even a better opportunity today than it was last year. Today is the Sohn Investment Conference in New York, where many of the top billionaire investors and hedge fund managers give their outlook on the stock market, the economy and talk about their favorite long and short picks. This hugely profitable bet made Robbins a billionaire and has catapulted his hedge fund to one of the best performing hedge funds over the past 5 years. | He reiterated his long positions in Abbvie (ABBV), saying it’s even a better opportunity today than it was last year. Today we're going to talk about the first speaker at Sohn today, billionaire Larry Robbins. Glenview Capital has produced almost 20% annualized returns (before fees) since 2000. |
26582.0 | 2016-05-04 00:00:00 UTC | IVV, GE, PM, ABBV: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/ivv-ge-pm-abbv-etf-outflow-alert-2016-05-04 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $93.3 million dollar outflow -- that's a 0.1% decrease week over week (from 344,050,000 to 343,600,000). Among the largest underlying components of IVV, in trading today General Electric Co (Symbol: GE) is off about 0.9%, Philip Morris International Inc (Symbol: PM) is trading flat, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. 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 $147.21 per share, with $215.23 as the 52 week high point - that compares with a last trade of $206.60. 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 General Electric Co (Symbol: GE) is off about 0.9%, Philip Morris International Inc (Symbol: PM) is trading flat, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. 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 $147.21 per share, with $215.23 as the 52 week high point - that compares with a last trade of $206.60. 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 General Electric Co (Symbol: GE) is off about 0.9%, Philip Morris International Inc (Symbol: PM) is trading flat, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. 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 $147.21 per share, with $215.23 as the 52 week high point - that compares with a last trade of $206.60. 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 General Electric Co (Symbol: GE) is off about 0.9%, Philip Morris International Inc (Symbol: PM) is trading flat, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $93.3 million dollar outflow -- that's a 0.1% decrease week over week (from 344,050,000 to 343,600,000). 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 $147.21 per share, with $215.23 as the 52 week high point - that compares with a last trade of $206.60. | Among the largest underlying components of IVV, in trading today General Electric Co (Symbol: GE) is off about 0.9%, Philip Morris International Inc (Symbol: PM) is trading flat, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $93.3 million dollar outflow -- that's a 0.1% decrease week over week (from 344,050,000 to 343,600,000). 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 $147.21 per share, with $215.23 as the 52 week high point - that compares with a last trade of $206.60. |
26583.0 | 2016-05-03 00:00:00 UTC | What Sent Medivation, Inc.'s Shares Soaring 25.1% In April | ABBV | https://www.nasdaq.com/articles/what-sent-medivation-incs-shares-soaring-251-april-2016-05-03 | nan | nan | SOURCE: FLICKR USER STOCKMONKEYS.COM
What: Following reports that companies eager to expand their presence in oncology could be knocking on the company's door, shares of Medivation, skyrocketed 25.1% last month, according to data from S&P Global Market Intelligence .
So what: There aren't too many profitable mid sized cancer companies out there and that has led to a flurry of rumors regarding a potential Medivation acquisition.
Last month, those rumors reached a crescendo as Sanofi acknowledged that it had been attempting to wrestle Medivation's board to the negotiating table since March. Unable to accomplish that, Sanofi went public on April 28 with a $9.3 billion bid to acquire Medivation.
While Sanofi notes its offer reflects a significant premium to where Medivation's stock had been trading prior to merger and acquisition speculation, I don't think its offer is sufficient to win the votes necessary for this combination to happen.
Frankly, I think the offer undervalues Medivation's Xtandi, a fast-growing prostate cancer medicine that's under evaluation for use in breast cancer patients too. Xtandi won approval for use in the post-chemotherapy metastatic prostate cancer setting in 2012 and in 2014, the FDA expanded Xtandi's label to include its use in pre-chemotherapy patients as well.
Since Xtandi's launch, it has become the most prescribed prostate cancer drug in these indications, generating annualized sales of more than $2 billion. That has me thinking that it could similarly succeed if approved for use in non-metastatic prostate cancer patients. Studies under way are evaluating Xtandi's use in non-metastatic patients and if data is positive, it could significantly increase Xtandi's addressable patient population.
Xtandi could also become used to treat advanced breast cancer patients with specific genetic markers someday. Phase 2 trials are expected to offer up results in the coming 12 months, and if they lead to an eventual approval in breast cancer, it could open the door to tens of thousands of additional patients per year. According to the National Cancer Institute, more than 220,000 patients are diagnosed with breast cancer every year in the U.S. alone.
Now what: Medivation shares Xtandi's rights with Astellas and it's possible that Astellas will want to buy Medivation itself to gain 100% rights to this drug.
Other companies, including Gilead Sciences and Novartis have expressed an interest in expanding their oncology product portfolios. And, AbbVie, has been on the hunt recently, too. All of these companies have deep pockets that could easily digest a deal that's valued at north of $10 billion.
Of course, there's always the possibility that Medivation has no interest in selling at any price. Deals often fall by the wayside, therefore, investors who are interested in owning Medivation should do so because of Xtandi and Medivation's product pipeline, not M&A rumors. Overall, Xtandi's potential in new patient populations could mean billions in sales and profit and its other drugs in development are in late stages and thus, they could move the needle down the road as well. Therefore, justifying a stake in Medivation isn't hard, regardless of whether a suitor ever convinces the board to sell.
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The article What Sent Medivation, Inc.'s Shares Soaring 25.1% In April originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences and Medivation.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. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And, AbbVie, has been on the hunt recently, too. Last month, those rumors reached a crescendo as Sanofi acknowledged that it had been attempting to wrestle Medivation's board to the negotiating table since March. Phase 2 trials are expected to offer up results in the coming 12 months, and if they lead to an eventual approval in breast cancer, it could open the door to tens of thousands of additional patients per year. | And, AbbVie, has been on the hunt recently, too. Frankly, I think the offer undervalues Medivation's Xtandi, a fast-growing prostate cancer medicine that's under evaluation for use in breast cancer patients too. Studies under way are evaluating Xtandi's use in non-metastatic patients and if data is positive, it could significantly increase Xtandi's addressable patient population. | And, AbbVie, has been on the hunt recently, too. Frankly, I think the offer undervalues Medivation's Xtandi, a fast-growing prostate cancer medicine that's under evaluation for use in breast cancer patients too. Now what: Medivation shares Xtandi's rights with Astellas and it's possible that Astellas will want to buy Medivation itself to gain 100% rights to this drug. | And, AbbVie, has been on the hunt recently, too. Frankly, I think the offer undervalues Medivation's Xtandi, a fast-growing prostate cancer medicine that's under evaluation for use in breast cancer patients too. Other companies, including Gilead Sciences and Novartis have expressed an interest in expanding their oncology product portfolios. |
26584.0 | 2016-05-03 00:00:00 UTC | Regeneron Pharmaceuticals Inc Has a Lot to Prove on May 5 | ABBV | https://www.nasdaq.com/articles/regeneron-pharmaceuticals-inc-has-lot-prove-may-5-2016-05-03 | nan | nan | IMAGE SOURCE: REGENERON.
RegeneronPharmaceuticals is set to report first-quarter 2016 results on Thursday, May 5, before the market opens. Regeneron's shareholders have taken a beating over the last few months after the company's fourth-quarter results showed slowing sales growth of its hit eye-disease drug Eylea, causing some traders to bail.
If that weren't bad enough, news broke in April that Amgen had won a lawsuit against Regeneron and its partner Sanofi : The jury ruled that the duo's new PCSK9 inhibitor, Praluent, infringes on two of Amgen's patents. Damages have yet to be set, but Amgen is going for the jugular and is attempting to get Praluent pulled from the market.
Against a backdrop like that, you can bet that the company will be looking to prove that its future is still bright when it releases earnings. Knowing that, here are a few key areas that investors will want to get more information on to see if this company still deserves its premium multiple.
Will Eylea's sales growth remain robust?
Sales of Eylea spiked 44% in the U.S. and 39% in international markets last quarter. That's a phenomenal result in absolute terms, but it was a bit light compared to the 50% U.S. sales growth management had predicted.
Investors were also disappointed to learn that management called for sales growth of only 20% in the U.S. for all of 2016, which is a significant deceleration from the 54% sales growth that it put up in 2015.
What's even more puzzling about that forecast is that Eylea's label was expanded by the Food and Drug Administration in March 2015 to be used as a treatment for diabetic retinopathy in patients with diabetic macular edema. That indication is the most frequent cause of vision loss in patients with diabetes, so in theory, it should have provided a big tailwind to the drug's growth in 2016.
That raises the question: Is the 20% U.S. sales growth guidance a low hurdle that the company can easily clear, or are the days of Eylea's extreme growth truly behind us?
What's the story with Praulent?
Regeneron and Sanofi officially launched Praluent for sale in the third quarter of last year, and the drug is off to a slow start. Revenue was only $7 million last quarter, though that was partly because Regeneron provided plenty of samples and free product to interested patients who lacked insurance coverage.
That's likely to have been a smart move, as Praluent is in a heated race with Amgen's drug Repatha to establish market share in a potential multibillion-dollar indication , so it's too early to judge based on sales data alone.
IMAGE SOURCE: REGENERON PHARMACEUTICALS.
For that reason, sales figures are far less important to investors than the status of its lawsuit with Amgen. The most likely outcome of the trial is that Sanofi and Regeneron will have to make royalty payments to Amgen, but we cannot yet rule out the chance that Praluent will be pulled from the market completely.
Investors should listen in for any clues to see if this drug could still have a bright future.
Pipeline updates
Given Eylea's slowing growth and Praluent's uncertain future, the two potential blockbuster drugs in Regeneron's pipeline -- sarilumab and dulipumab -- might have to take center stage in this report.
Sarilumab is currently in regulators' hands as a potential treatment for active rheumatoid arthritis, which is a multibillion-dollar market currently dominated by AbbVie 's megablockbuster drug Humira.
In March, Regeneron released results from a phase 3 trial that compared sarilumab to Humira, and the results confirmed that sarilumab did a better job of treating the symptoms of rheumatoid arthritis after 24 weeks than Humira did. That hints that if sarilumab wins approval on its Oct. 30, 2016, PDUFA date, then it could be in a position to steal a substantial amount of market share away from AbbVie. That's a big reason why some analysts believe that sarilumab's sales could eventually top $1 billion.
Investors also got a fresh look at dupilumab in early April after Regeneron and Sanofi released results from two phase 3 trials using the compound to treat moderate to severe atopic dermatitis. Dupilumab outperformed a placebo in a number ofcategories , and it did so safely, which bodes well for its regulatory chances.
The company announced plans to submit dupilumab for review in the third quarter of this year, and peak sales estimates are roughly $4 billion, so this is a drug that investors should watch closely.
Will Regeneron produce a report that gets the company's stock moving in the right direction again? Investors will have their answers in a few short days.
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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 .
The article Regeneron Pharmaceuticals Inc Has a Lot to Prove on May 5 originally appeared on Fool.com.
Brian Feroldihas no position in any stocks mentioned. Like this article? Follow him on Twitter where he goes by the handle@Longtermmind-set or connect with him onLinkedInto see more articles like this.The Motley Fool owns shares of Regeneron 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 .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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. | Sarilumab is currently in regulators' hands as a potential treatment for active rheumatoid arthritis, which is a multibillion-dollar market currently dominated by AbbVie 's megablockbuster drug Humira. That hints that if sarilumab wins approval on its Oct. 30, 2016, PDUFA date, then it could be in a position to steal a substantial amount of market share away from AbbVie. Regeneron's shareholders have taken a beating over the last few months after the company's fourth-quarter results showed slowing sales growth of its hit eye-disease drug Eylea, causing some traders to bail. | Sarilumab is currently in regulators' hands as a potential treatment for active rheumatoid arthritis, which is a multibillion-dollar market currently dominated by AbbVie 's megablockbuster drug Humira. That hints that if sarilumab wins approval on its Oct. 30, 2016, PDUFA date, then it could be in a position to steal a substantial amount of market share away from AbbVie. Pipeline updates Given Eylea's slowing growth and Praluent's uncertain future, the two potential blockbuster drugs in Regeneron's pipeline -- sarilumab and dulipumab -- might have to take center stage in this report. | Sarilumab is currently in regulators' hands as a potential treatment for active rheumatoid arthritis, which is a multibillion-dollar market currently dominated by AbbVie 's megablockbuster drug Humira. That hints that if sarilumab wins approval on its Oct. 30, 2016, PDUFA date, then it could be in a position to steal a substantial amount of market share away from AbbVie. Regeneron's shareholders have taken a beating over the last few months after the company's fourth-quarter results showed slowing sales growth of its hit eye-disease drug Eylea, causing some traders to bail. | Sarilumab is currently in regulators' hands as a potential treatment for active rheumatoid arthritis, which is a multibillion-dollar market currently dominated by AbbVie 's megablockbuster drug Humira. That hints that if sarilumab wins approval on its Oct. 30, 2016, PDUFA date, then it could be in a position to steal a substantial amount of market share away from AbbVie. That indication is the most frequent cause of vision loss in patients with diabetes, so in theory, it should have provided a big tailwind to the drug's growth in 2016. |
26585.0 | 2016-05-02 00:00:00 UTC | Good News: Gilead Sciences Discounted Its Drugs Again | ABBV | https://www.nasdaq.com/articles/good-news-gilead-sciences-discounted-its-drugs-again-2016-05-02 | nan | nan | Image source: Gilead Sciences, inc.
Gilead Sciences reported its Q1 2016 earnings on April 29, and on the surface things looked pretty ugly for the hepatitis C treatment leader. Gilead missed analyst estimates on both revenue and earnings, and HCV revenue per patient declined substantially as the company provided more, and deeper, discounts to payers.
Why lower revenue per patient is a good thing (or at least necessary)
Gilead Executive VP Paul Carter explained on theearnings callthat sales fell in part because "several of the large commercial payers opened up access to patients regardless of their fibrosis scores during quarter 1. The consequence of that was that they triggered a discount that had been previously negotiated in order to incentivize that opening up of restrictions." (Quotes from S&P Global Market Intelligence .)
So Gilead's making less money right now per patient -- but in exchange, it's opening up more (less sick) patients to its HCV blockbusters Sovaldi and Harvoni.
This could be a big deal for Gilead. One of the big risks for the company's future growth in hepatitis C has been the steep prices for Sovaldi and Harvoni. In the U.S., Sovaldi's list price is $84,000 for a course of treatment, while Harvoni's is $93,500. That's not cheap, and payers have tried to control costs by restricting the potential beneficiaries of these therapies to those with more advanced HCV infections -- a smaller pool of patients with higher fibrosis scores.
If you dig in, you can already see the positive trends beginning. U.S. new patient starts on Gilead HCV treatments increased by 10% sequentially to 55,000 in Q1 of 2016, reflecting the beginning of what could be a substantial expansion in the treatment ramp-up. The mix of patients intending to begin treatment on a Gilead drug also shifted toward those lower fibrosis scores (i.e. healthier), with 56% in F0-F2 and only 44% having F3-F4 scores. Compare that score mix to Q4 2015 (50% F0-F2, 50% F3-F4) and Q3 2015 (51% F0-F2, 49% F3-F4).
There were other contributing factors, too
Gilead's payer mix shifted toward government payers in the U.S., such as Medicaid and the VA, which get extra discounts and so drag revenue per patient down further. But those discounts are helping Gilead expand into additional patient pools, vacuuming up volume while competitors Merck and AbbVie continue to play catch-up.
Gilead's patient mix is also shifting toward shorter treatment durations, with around 43% of the intent-to-treat population shifting to eight-week treatment instead of 12 or 24 weeks. Eight weeks of treatment means Gilead brings in less revenue per patient (it charges by the pill), but it could be good news for the company as it faces increased European competition. Carter noted on the call that in Europe "some payers ... are treating the products a bit more like commodities" instead of crediting Gilead for a differentiated profile. Well, AbbVie's HCV cocktail Viekira Pak generally has to be taken for 12 to 24 weeks, and Merck's Zepatier is a 12- to 16-week drug. So Gilead may be able to differentiate itself in Europe by pointing to the eight-week duration, which should both save payers money and improve patient treatment compliance. Seems like a potential win-win.
Lower prices were inevitable
With three players fighting for market share, Gilead has to discount its drugs. Management made the right call to do so now rather than lose market share. And given that Gilead's market share remains greater than 90% in the United States, this is a smart move to maintain the company's dominance and expand the patient pool it can treat. And with non-GAAP operating margin at 69%, Gilead has the room to make it up on volume.
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 .
The article Good News: Gilead Sciences Discounted Its Drugs Again originally appeared on Fool.com.
Michael Douglass 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 .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But those discounts are helping Gilead expand into additional patient pools, vacuuming up volume while competitors Merck and AbbVie continue to play catch-up. Well, AbbVie's HCV cocktail Viekira Pak generally has to be taken for 12 to 24 weeks, and Merck's Zepatier is a 12- to 16-week drug. That's not cheap, and payers have tried to control costs by restricting the potential beneficiaries of these therapies to those with more advanced HCV infections -- a smaller pool of patients with higher fibrosis scores. | But those discounts are helping Gilead expand into additional patient pools, vacuuming up volume while competitors Merck and AbbVie continue to play catch-up. Well, AbbVie's HCV cocktail Viekira Pak generally has to be taken for 12 to 24 weeks, and Merck's Zepatier is a 12- to 16-week drug. Gilead missed analyst estimates on both revenue and earnings, and HCV revenue per patient declined substantially as the company provided more, and deeper, discounts to payers. | But those discounts are helping Gilead expand into additional patient pools, vacuuming up volume while competitors Merck and AbbVie continue to play catch-up. Well, AbbVie's HCV cocktail Viekira Pak generally has to be taken for 12 to 24 weeks, and Merck's Zepatier is a 12- to 16-week drug. Gilead missed analyst estimates on both revenue and earnings, and HCV revenue per patient declined substantially as the company provided more, and deeper, discounts to payers. | But those discounts are helping Gilead expand into additional patient pools, vacuuming up volume while competitors Merck and AbbVie continue to play catch-up. Well, AbbVie's HCV cocktail Viekira Pak generally has to be taken for 12 to 24 weeks, and Merck's Zepatier is a 12- to 16-week drug. The mix of patients intending to begin treatment on a Gilead drug also shifted toward those lower fibrosis scores (i.e. healthier), with 56% in F0-F2 and only 44% having F3-F4 scores. |
26586.0 | 2016-04-28 00:00:00 UTC | The Zacks Analyst Blog Highlights: Biogen, Sarepta, Catalyst Pharmaceuticals, AbbVie and Gilead | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-biogen-sarepta-catalyst-pharmaceuticals-abbvie-and | nan | nan | For Immediate Release
Chicago, IL - April 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 ), Sarepta ( SRPT ), Catalyst Pharmaceuticals ( CPRX ), AbbVie ( ABBV ) and Gilead ( GILD ).
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
Biogen ( BIIB ) kick-started the earnings season for the biotech sector with an earnings beat. Meanwhile, companies like Sarepta ( SRPT ) and Catalyst Pharmaceuticals ( CPRX ) saw their share prices falling on regulatory news.
Recap of the Week's Most Important Stories
1. Earnings reports for the biotech sector are yet to come out in full force with Biogen being the only major biotech company to have reported results so far. Biogen's first-quarter results were mixed with the company surpassing earnings expectations but missing on revenues by a slight margin. Cost control and a lower share count helped boost earnings.
Investor focus was on Tecfidera's performance - sales grew from the year-ago period but declined sequentially with the product seeing some inventory drawdown. Biogen, which had increased its marketing efforts for Tecfidera in the U.S. by launching a TV campaign to raise patient awareness about MS and Tecfidera, said that it does not intend to purchase additional TV spots beyond mid-2016 (Read more: Biogen Tops on Q1 Earnings, Slight Revenue Miss ).
2. Catalyst Pharma's shares crashed on news that the FDA has asked the company to conduct an additional adequate and well-controlled study on Firdapse for the resubmission of the NDA for the candidate. This means a delay in gaining approval as well as additional R&D costs. Several more short-term toxicology studies also have to be conducted by the company. Firdapse is being developed for the treatment of Lambert-Eaton myasthenic syndrome (LEMS). The only encouraging takeaway from the company's meeting with the FDA is that the agency is open to a study design that could fulfill the requirement with a small, short-term study.
3. Sarepta's shares tumbled with an FDA advisory panel voting against approving the company's lead pipeline candidate, eteplirsen, for the treatment of Duchenne muscular dystrophy (DMD). The vote does not really come as a surprise given the tone of the briefing documents that were released earlier this year in January. Next up on the schedule is the FDA's final decision regarding the approval status of the experimental treatment in late May. Although the FDA is not required to, it usually follows the recommendation of its advisory panels.
So far this year, companies developing DMD treatments are yet to taste success on the regulatory front - while BioMarin's Kyndrisa got a complete response letter earlier this year, the FDA issued a "refusal to file" letter to PTC Therapeutics for its experimental DMD treatment, Translarna.
4. AbbVie ( ABBV ) continues to work on expanding its pipeline and recently entered into a couple of deals both aimed at developing cancer treatments. The deal with CytomX is for the co-development and co-commercialization of Probody Drug Conjugates against CD71 and will see AbbVie paying at least $500 million (upfront plus milestone payments) apart from a profit share and royalties.
Meanwhile, the other deal is with argenx, focused on the development and commercialization of ARGX-115. Under this immuno-oncology focused deal, AbbVie could shell out at least $685 million.
5. Gilead ( GILD ) gained EU approval for two doses of its HIV treatment, Descovy, making it the company's second TAF-based therapy to receive marketing authorization in the EU. Descovy had gained approval in the U.S. earlier this month and is considered to have blockbuster potential.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Biogen ( BIIB ), Sarepta ( SRPT ), Catalyst Pharmaceuticals ( CPRX ), AbbVie ( ABBV ) and Gilead ( GILD ). AbbVie ( ABBV ) continues to work on expanding its pipeline and recently entered into a couple of deals both aimed at developing cancer treatments. The deal with CytomX is for the co-development and co-commercialization of Probody Drug Conjugates against CD71 and will see AbbVie paying at least $500 million (upfront plus milestone payments) apart from a profit share and royalties. | Stocks recently featured in the blog include Biogen ( BIIB ), Sarepta ( SRPT ), Catalyst Pharmaceuticals ( CPRX ), AbbVie ( ABBV ) and Gilead ( GILD ). Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report SAREPTA THERAP (SRPT): Free Stock Analysis Report CATALYST PHARMA (CPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) continues to work on expanding its pipeline and recently entered into a couple of deals both aimed at developing cancer treatments. | Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report SAREPTA THERAP (SRPT): Free Stock Analysis Report CATALYST PHARMA (CPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Biogen ( BIIB ), Sarepta ( SRPT ), Catalyst Pharmaceuticals ( CPRX ), AbbVie ( ABBV ) and Gilead ( GILD ). AbbVie ( ABBV ) continues to work on expanding its pipeline and recently entered into a couple of deals both aimed at developing cancer treatments. | Stocks recently featured in the blog include Biogen ( BIIB ), Sarepta ( SRPT ), Catalyst Pharmaceuticals ( CPRX ), AbbVie ( ABBV ) and Gilead ( GILD ). AbbVie ( ABBV ) continues to work on expanding its pipeline and recently entered into a couple of deals both aimed at developing cancer treatments. The deal with CytomX is for the co-development and co-commercialization of Probody Drug Conjugates against CD71 and will see AbbVie paying at least $500 million (upfront plus milestone payments) apart from a profit share and royalties. |
26587.0 | 2016-04-28 00:00:00 UTC | AbbVie (ABBV) Beats on 1Q Earnings, Lowers View on Deal | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-beats-1q-earnings-lowers-view-deal-2016-04-28 | nan | nan | AbbVie Inc.ABBV reported first quarter 2016 earnings of $1.15 per share, up 22.3% from the year-ago quarter and a couple of cents above the Zacks Consensus Estimate.
Revenues increased 18.2% to $5.96 billion in the first quarter of 2016, just above the Zacks Consensus Estimate of $5.91 billion.
The Quarter in Details
Key drug Humira recorded growth of 14.9% with revenues coming in at $3.6 billion. U.S. sales increased 31.9% ($2.2 billion) driven by growth across all three major market categories: rheumatology, dermatology and gastroenterology. Ex-U.S. sales declined 4.6% to $1.4 billion, impacted by negative currency movement (4.6%). 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 29.8% to $68 million) and Creon (up 18.2% to $150 million). Meanwhile, products like Synagis and Kaletra (HIV) recorded a decline in revenues.
HCV product Viekira recorded sales of $414 million, down from $554 million in the fourth quarter of 2015. Additional competition has entered the market in the form of Merck & Co. Inc.'s MRK Zepatier. AbbVie recorded Imbruvica U.S. sales of $325 million and $56 million of international profit sharing.
Announces Acquisition to Expand Oncology Pipeline
In addition to releasing first quarter results, AbbVie announced that it will be acquiring cancer drugmaker Stemcentrx in a cash and stock deal worth $5.8 billion plus up to an additional $4 billion on the achievement of milestones.
With this acquisition, AbbVie will gain a late-stage candidate (rovalpituzumab tesirine or Rova-T), four additional early-stage compounds in solid tumor indications and a significant portfolio of pre-clinical assets.
Rova-T is currently in registrational studies for small cell lung cancer (SCLC) - according to AbbVie, Rova-T has blockbuster potential and could be launched in 2018.
Lowers 2016 Outlook
AbbVie lowered its 2016 EPS outlook to reflect the impact of the Stemcentrx acquisition which is expected to dilute earnings by 20 cents. The company's new guidance is $4.62 to $4.82 per share. The Zacks Consensus Estimate is currently $4.99 per share.
Once the deal closes, expected in the second quarter of 2016, AbbVie plans to execute an accelerated share repurchase program of up to $4 billion.
Our Take
AbbVie's first quarter results were good with the company surpassing expectations on all fronts. Humira and Imbruvica continued to perform well while the sequential decline in Viekira sales does not come as a surprise considering 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. The company has been signing quite a few deals lately especially with the aim of increasing its presence in the cancer market. Last year's $21 billion Pharmacyclics acquisition helped AbbVie diversify its revenue base into cancer with Imbruvica representing multi-billion dollar potential.
AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include Celgene Corp. CELG and Gilead Sciences Inc. GILD . Both are Zacks Rank #2 (Buy) stocks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With this acquisition, AbbVie will gain a late-stage candidate (rovalpituzumab tesirine or Rova-T), four additional early-stage compounds in solid tumor indications and a significant portfolio of pre-clinical assets. Last year's $21 billion Pharmacyclics acquisition helped AbbVie diversify its revenue base into cancer with Imbruvica representing multi-billion dollar potential. AbbVie Inc.ABBV reported first quarter 2016 earnings of $1.15 per share, up 22.3% from the year-ago quarter and a couple of cents above the Zacks Consensus Estimate. | Lowers 2016 Outlook AbbVie lowered its 2016 EPS outlook to reflect the impact of the Stemcentrx acquisition which is expected to dilute earnings by 20 cents. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV reported first quarter 2016 earnings of $1.15 per share, up 22.3% from the year-ago quarter and a couple of cents above the Zacks Consensus Estimate. | AbbVie Inc.ABBV reported first quarter 2016 earnings of $1.15 per share, up 22.3% from the year-ago quarter and a couple of cents above the Zacks Consensus Estimate. Announces Acquisition to Expand Oncology Pipeline In addition to releasing first quarter results, AbbVie announced that it will be acquiring cancer drugmaker Stemcentrx in a cash and stock deal worth $5.8 billion plus up to an additional $4 billion on the achievement of milestones. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc.ABBV reported first quarter 2016 earnings of $1.15 per share, up 22.3% from the year-ago quarter and a couple of cents above the Zacks Consensus Estimate. AbbVie recorded Imbruvica U.S. sales of $325 million and $56 million of international profit sharing. Announces Acquisition to Expand Oncology Pipeline In addition to releasing first quarter results, AbbVie announced that it will be acquiring cancer drugmaker Stemcentrx in a cash and stock deal worth $5.8 billion plus up to an additional $4 billion on the achievement of milestones. |
26588.0 | 2016-04-28 00:00:00 UTC | AbbVie (ABBV) Tops 1Q Earnings Estimates, Announces Deal | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-tops-1q-earnings-estimates-announces-deal-2016-04-28 | nan | nan | North Chicago, IL-based AbbVieABBV , which has been in the news thanks to its hepatitis C virus (HCV) treatment Viekira Pak as well as its acquisition of Pharmacyclics, is best known for its autoimmune disease drug, Humira.
Humira, the company's flagship product which is approved for a wide range of indications, is a major contributor to AbbVie's top line. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on Viekira's performance as well as pipeline updates. Key players in the HCV market include Gilead's Sovaldi and Harvoni and Merck's recently launched Zepatier.
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 4.85%.
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 Beat : ABBV's first quarter earnings came in at $1.15 per share, beating the Zacks Consensus Estimate of $1.13.
RevenuesBeat : AbbVie posted revenues of approximately $5.96 billion, just above the Zacks Consensus Estimate of $5.91 billion.
Key Stats : Humira sales came in at $3.6 billion. First-quarter Imbruvica sales were $381 million. Viekira sales were $414 million in the first quarter.
Announces Acquisition Deal : In addition to reporting first quarter results, AbbVie announced that it will be expanding its presence in oncology through the acquisition of Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) for about $5.8 billion in cash and stock and another $4 billion on the achievement of milestones.
Lowers 2016 Outlook : AbbVie lowered its 2016 EPS outlook to reflect the impact of the Stemcentrx acquisition which is expected to dilute earnings by 20 cents. The company's new guidance is $4.62 to $4.82 per share. The Zacks Consensus Estimate is currently $4.99 per share.
Check back later for our full write up on this ABBV earnings report.
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ABBVIE INC (ABBV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | North Chicago, IL-based AbbVieABBV , which has been in the news thanks to its hepatitis C virus (HCV) treatment Viekira Pak as well as its acquisition of Pharmacyclics, is best known for its autoimmune disease drug, Humira. Humira, the company's flagship product which is approved for a wide range of indications, is a major contributor to AbbVie's top line. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on Viekira's performance as well as pipeline updates. | We have highlighted some of the key stats from this just-revealed announcement below: Earnings Beat : ABBV's first quarter earnings came in at $1.15 per share, beating the Zacks Consensus Estimate of $1.13. 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 AbbVieABBV , which has been in the news thanks to its hepatitis C virus (HCV) treatment Viekira Pak as well as its acquisition of Pharmacyclics, is best known for its autoimmune disease drug, Humira. | We have highlighted some of the key stats from this just-revealed announcement below: Earnings Beat : ABBV's first quarter earnings came in at $1.15 per share, beating the Zacks Consensus Estimate of $1.13. Announces Acquisition Deal : In addition to reporting first quarter results, AbbVie announced that it will be expanding its presence in oncology through the acquisition of Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) for about $5.8 billion in cash and stock and another $4 billion on the achievement of milestones. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Meanwhile, the Pharmacyclics acquisition has diversified AbbVie's product portfolio with the addition of Imbruvica. We have highlighted some of the key stats from this just-revealed announcement below: Earnings Beat : ABBV's first quarter earnings came in at $1.15 per share, beating the Zacks Consensus Estimate of $1.13. North Chicago, IL-based AbbVieABBV , which has been in the news thanks to its hepatitis C virus (HCV) treatment Viekira Pak as well as its acquisition of Pharmacyclics, is best known for its autoimmune disease drug, Humira. |
26589.0 | 2016-04-28 00:00:00 UTC | Health Care Sector Update for 04/28/2016: INSY, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-04282016-insy-abbv-2016-04-28 | nan | nan | Top Health-care stocks:
JNJ: -0.4%
PFE: flat
ABT: -9.2%
MRK: flat
AMGN: -0.2%
Health-care shares were mainly lower in pre-market trade on Thursday.
In health-care stocks news, commercial-stage specialty pharmaceutical company Insys Therapeutics ( INSY ) said Thursday that for Q1, its earnings were better-than-expected and revenue topped analysts' expectations
Shares in the company were unchanged at $14.52 pre-bell. The stock has traded between $12.50 and $46.17 over the past 52 weeks.
And AbbVie ( ABBV ) said it will acquire Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) currently in registrational trials for small cell lung cancer (SCLC).
Shares in the company were 3.6% lower at $58.49 pre-bell. The stock has traded between $45.45 and $71.60 over the past 52 weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And AbbVie ( ABBV ) said it will acquire Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) currently in registrational trials for small cell lung cancer (SCLC). Health-care shares were mainly lower in pre-market trade on Thursday. In health-care stocks news, commercial-stage specialty pharmaceutical company Insys Therapeutics ( INSY ) said Thursday that for Q1, its earnings were better-than-expected and revenue topped analysts' expectations Shares in the company were unchanged at $14.52 pre-bell. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And AbbVie ( ABBV ) said it will acquire Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) currently in registrational trials for small cell lung cancer (SCLC). Top Health-care stocks: | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And AbbVie ( ABBV ) said it will acquire Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) currently in registrational trials for small cell lung cancer (SCLC). In health-care stocks news, commercial-stage specialty pharmaceutical company Insys Therapeutics ( INSY ) said Thursday that for Q1, its earnings were better-than-expected and revenue topped analysts' expectations Shares in the company were unchanged at $14.52 pre-bell. | And AbbVie ( ABBV ) said it will acquire Stemcentrx and its lead late-stage asset rovalpituzumab tesirine (Rova-T) currently in registrational trials for small cell lung cancer (SCLC). Top Health-care stocks: PFE: flat |
26590.0 | 2016-04-28 00:00:00 UTC | Earnings Reaction History: AbbVie Inc., 30.0% Follow-Through Indicator, 2.6% Sensitive | ABBV | https://www.nasdaq.com/articles/earnings-reaction-history-abbvie-inc-300-follow-through-indicator-26-sensitive-2016-04-28 | nan | nan | Expected Earnings Release: 04/28/2016, Premarket
Avg. Extended-Hours Dollar Volume: $6,121,596
AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 28.6%
Average next regular session additional gain: 3%
Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 28.6% of the time (2 events) the stock posted additional gains in the following regular session by an average of 3.0%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 33.3%
Average next regular session additional loss: 0.3%
Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 33.3% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 0.3% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 28.6% Average next regular session additional gain: 3% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 28.6% of the time (2 events) the stock posted additional gains in the following regular session by an average of 3.0%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 33.3% Average next regular session additional loss: 0.3% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 33.3% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 0.3% by the following regular session close. Extended-Hours Dollar Volume: $6,121,596 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 28.6% Average next regular session additional gain: 3% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 28.6% of the time (2 events) the stock posted additional gains in the following regular session by an average of 3.0%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 33.3% Average next regular session additional loss: 0.3% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 33.3% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 0.3% by the following regular session close. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 28.6% Average next regular session additional gain: 3% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 28.6% of the time (2 events) the stock posted additional gains in the following regular session by an average of 3.0%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 33.3% Average next regular session additional loss: 0.3% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 33.3% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 0.3% by the following regular session close. Extended-Hours Dollar Volume: $6,121,596 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Extended-Hours Dollar Volume: $6,121,596 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 28.6% Average next regular session additional gain: 3% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 28.6% of the time (2 events) the stock posted additional gains in the following regular session by an average of 3.0%. |
26591.0 | 2016-04-28 00:00:00 UTC | Health Care ETFs Can Still Strengthen on Increased M&A Activity | ABBV | https://www.nasdaq.com/articles/health-care-etfs-can-still-strengthen-increased-ma-activity-2016-04-28 | nan | nan | While the health industry has underperformed so far this year, health care stocks and sector-related exchange traded funds can gain momentum on increased merger and acquisition activity.
About $144 billion in deals for biotechnology, health care and pharmaceutical companies have been announced this year, with Abbott Laboratories ( ABT ) agreeing to acquire St Jude Medical Inc. ( STJ ) for $25 billion and AbbVie Inc. ( ABBV ) buying Stemcentrx for $5.8 billion, Bloomberg reports.
Premiums on health care deals are also holding, with almost 30% of deals this year commanding premiums of 40% to 50%, mirroring premiums paid this time last year.
The rash of new deals is already up 27% on a dollar basis from a year ago when the industry was on its way to over a 12-year record in deal making. Businesses are expanding their product lines through acquisitions as they face increased competition and look to new merchandise to raise sales.
"We are likely see more M&A in health care this year as companies streamline their portfolios and seek to build up those areas of higher future growth," Nigel Jones, co-head of health care at Linklaters law firm, told Bloomberg.
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More companies may continue to capitalize on the ongoing low interest rate environment and engage in greater merger and acquisitions, or at least try to squeeze out some deals before the Federal Reserve decides to hike rates again.
"Large M&A is likely to continue in the coming months, not only in health care but also in other sectors, as financing remains cheap and companies have loads of cash to put to use and expand their portfolios," Tomasz Michalski, an economics professor at the HEC business school, told Bloomberg.
ETF investors can also capitalize on the spate of acquisitions through health care-related ETFs that tilt toward mid- and small-cap stocks, or smaller companies that are more likely to be buyout targets. For instance, the Guggenheim S&P Equal Weight Healthcare ETF (NYSEArca: RYH ) , which equally weights its component holdings, includes a 30.4% tilt toward mid-caps, alon gwith 48.3% large-caps and 21.4% mega-caps. The PowerShares S&P SmallCap Health Care Portfolio (NasdaqGS: PSCH ) focuses more on smaller companies, with a 59.9% tilt toward small-caps and 40.1% in micro-caps.
Additionally, looking at biotechnology-related ETFs, the BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC ) tracks potential up-and-coming biotechnology companies that are in the clinical trials stage. The Loncar Cancer Immunotheraphy ETF (NasdaqGM: CNCR) tracks companies that are developing new classes of therapies. The ALPS Medical Breakthroughs ETF (NYSEArca: SBIO ) focuses on small- and mid-cap companies that have one or more drugs in either Phase II or Phase III U.S. FDA clinical trials. The broader SPDR S&P Biotech ETF (NYSEArca: XBI ) follows an equal-weight index of biotechnology companies, with 26.8% in micro-caps, 35.0% small-caps and 20.9% mid-caps.
Want more Healthcare ETF news and analysis? Visit www.etftrends.com/healthcare
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This article was provided by our partner Tom Lydon of etftrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | About $144 billion in deals for biotechnology, health care and pharmaceutical companies have been announced this year, with Abbott Laboratories ( ABT ) agreeing to acquire St Jude Medical Inc. ( STJ ) for $25 billion and AbbVie Inc. ( ABBV ) buying Stemcentrx for $5.8 billion, Bloomberg reports. "Large M&A is likely to continue in the coming months, not only in health care but also in other sectors, as financing remains cheap and companies have loads of cash to put to use and expand their portfolios," Tomasz Michalski, an economics professor at the HEC business school, told Bloomberg. The PowerShares S&P SmallCap Health Care Portfolio (NasdaqGS: PSCH ) focuses more on smaller companies, with a 59.9% tilt toward small-caps and 40.1% in micro-caps. | About $144 billion in deals for biotechnology, health care and pharmaceutical companies have been announced this year, with Abbott Laboratories ( ABT ) agreeing to acquire St Jude Medical Inc. ( STJ ) for $25 billion and AbbVie Inc. ( ABBV ) buying Stemcentrx for $5.8 billion, Bloomberg reports. Premiums on health care deals are also holding, with almost 30% of deals this year commanding premiums of 40% to 50%, mirroring premiums paid this time last year. For instance, the Guggenheim S&P Equal Weight Healthcare ETF (NYSEArca: RYH ) , which equally weights its component holdings, includes a 30.4% tilt toward mid-caps, alon gwith 48.3% large-caps and 21.4% mega-caps. | About $144 billion in deals for biotechnology, health care and pharmaceutical companies have been announced this year, with Abbott Laboratories ( ABT ) agreeing to acquire St Jude Medical Inc. ( STJ ) for $25 billion and AbbVie Inc. ( ABBV ) buying Stemcentrx for $5.8 billion, Bloomberg reports. "We are likely see more M&A in health care this year as companies streamline their portfolios and seek to build up those areas of higher future growth," Nigel Jones, co-head of health care at Linklaters law firm, told Bloomberg. Trending on ETF Trends How The Fed is Boosting Dividend ETFs 4 Oil ETFs Ignited by Recent Surges ETF Flows Show Investors Are Riding the Stock Market Rebound Water ETFs Are Making a Big Splash Why It's Time to Consider High Dividend ETFs More companies may continue to capitalize on the ongoing low interest rate environment and engage in greater merger and acquisitions, or at least try to squeeze out some deals before the Federal Reserve decides to hike rates again. | About $144 billion in deals for biotechnology, health care and pharmaceutical companies have been announced this year, with Abbott Laboratories ( ABT ) agreeing to acquire St Jude Medical Inc. ( STJ ) for $25 billion and AbbVie Inc. ( ABBV ) buying Stemcentrx for $5.8 billion, Bloomberg reports. ETF investors can also capitalize on the spate of acquisitions through health care-related ETFs that tilt toward mid- and small-cap stocks, or smaller companies that are more likely to be buyout targets. The PowerShares S&P SmallCap Health Care Portfolio (NasdaqGS: PSCH ) focuses more on smaller companies, with a 59.9% tilt toward small-caps and 40.1% in micro-caps. |
26592.0 | 2016-04-27 00:00:00 UTC | Pre-Market Earnings Report for April 28, 2016 : MO, BMY, MA, ABBV, CELG, UPS, CL, DOW, TWC, COP, TMO, EPD | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-april-28-2016-mo-bmy-ma-abbv-celg-ups-cl-dow-twc-cop-tmo-epd | nan | nan | The following companies are expected to report earnings prior to market open on 04/28/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
Altria Group ( MO ) is reporting for the quarter ending March 31, 2016. The tobacco company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.68. This value represents a 7.94% increase compared to the same quarter last year. The last two quarters MO had negative earnings surprises; the latest report they missed by -1.47%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for MO is 20.18 vs. an industry ratio of 21.20.
Bristol-Myers Squibb Company ( BMY ) is reporting for the quarter ending March 31, 2016. The large cap pharmaceutical company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.66. This value represents a 7.04% decrease compared to the same quarter last year. In the past year BMY has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 35.71%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for BMY is 29.16 vs. an industry ratio of 17.30, 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 March 31, 2016. The financial transactions company's consensus earnings per share forecast from the 16 analysts that follow the stock is $0.85. This value represents a 6.59% decrease compared to the same quarter last year. In the past year MA 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 MA is 27.56 vs. an industry ratio of 22.30, 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 March 31, 2016. The large cap pharmaceutical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.13. This value represents a 20.21% 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 12.21 vs. an industry ratio of 17.30.
Celgene Corporation ( CELG ) is reporting for the quarter ending March 31, 2016. The biomedical (gene) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.05. This value represents a 10.53% increase compared to the same quarter last year. CELG missed the consensus earnings per share in the 4th calendar quarter of 2015 by -1.96%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CELG is 22.13 vs. an industry ratio of -18.80, implying that they will have a higher earnings growth than their competitors in the same industry.
United Parcel Service, Inc. ( UPS ) is reporting for the quarter ending March 31, 2016. The transportation company's consensus earnings per share forecast from the 13 analysts that follow the stock is $1.22. This value represents a 8.93% 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 4th calendar quarter where they beat the consensus by 11.35%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for UPS is 18.44 vs. an industry ratio of -63.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Colgate-Palmolive Company ( CL ) is reporting for the quarter ending March 31, 2016. The cleaning company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.63. This value represents a 4.55% decrease compared to the same quarter last year. CL missed the consensus earnings per share in the 2nd calendar quarter of 2015 by -1.41%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CL is 24.90 vs. an industry ratio of 22.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Dow Chemical Company ( DOW ) is reporting for the quarter ending March 31, 2016. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.83. This value represents a 1.19% decrease compared to the same quarter last year. In the past year DOW has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 32.86%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for DOW is 15.60 vs. an industry ratio of 28.40.
Time Warner Cable Inc ( TWC ) is reporting for the quarter ending March 31, 2016. The cable tv company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.73. This value represents a 4.85% increase compared to the same quarter last year. Zacks Investment Research reports that the 2016 Price to Earnings ratio for TWC is 28.53 vs. an industry ratio of 13.50, implying that they will have a higher earnings growth than their competitors in the same industry.
ConocoPhillips ( COP ) is reporting for the quarter ending March 31, 2016. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-1.07. This value represents a 494.44% decrease compared to the same quarter last year. COP missed the consensus earnings per share in the 4th calendar quarter of 2015 by -40.63%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for COP is -24.41 vs. an industry ratio of -39.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Thermo Fisher Scientific Inc ( TMO ) is reporting for the quarter ending March 31, 2016. The medical instruments company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.74. This value represents a 6.75% increase compared to the same quarter last year. In the past year TMO has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 0.47%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for TMO is 18.34 vs. an industry ratio of -5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Enterprise Products Partners L.P. ( EPD ) is reporting for the quarter ending March 31, 2016. The oil/gas company's consensus earnings per share forecast from the 13 analysts that follow the stock is $0.32. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2016 Price to Earnings ratio for EPD is 20.34 vs. an industry ratio of 15.30, 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 March 31, 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 12.21 vs. an industry ratio of 17.30. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending March 31, 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 12.21 vs. an industry ratio of 17.30. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending March 31, 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 12.21 vs. an industry ratio of 17.30. | AbbVie Inc. ( ABBV ) is reporting for the quarter ending March 31, 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 12.21 vs. an industry ratio of 17.30. |
26593.0 | 2016-04-26 00:00:00 UTC | 3 Healthcare Stocks Under the Microscope | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-under-the-microscope-2016-04-26 | nan | nan | InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
According to Bain & Co. partner Nirad Jain, 2015 was a record-breaking year for healthcare companies as $540 billion traded hands through mergers and acquisitions and private equity deals.
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Unfortunately for healthcare stocks as a whole, this hasn't translated into broad enthusiasm. Although revenue for healthcare stocks will likely increase thanks to higher demand , accusations of improprieties within the industry have cast a dark shadow. That raises an unwanted challenge, especially as the current earnings season isn't exactly a runaway winner.
The indelible image of Martin Shkreli - former CEO of Turing Pharmaceuticals - refusing to testify before Congress gave most Americans all the ammunition they needed to blast the broad healthcare sector. Here was a punk kid getting rich off of insider trading and drug price manipulation while tens of thousands of patients suffered from the subsequent financial burden.
Like clockwork, several candidates for the White House took up the cause, shining a judgmental light on healthcare stocks.
While lurid stories will always make headlines, the general reason for higher drug prices is fundamentally quite mundane. Both advances in biotechnology and the Food and Drug Administration's willingness to play game have contributed to a surge of new treatments becoming available to the public.
Pharmaceutical companies with specific specialties were a big driver of supply. Sales of specialty drugs rang up $151 billion at the register last year, which was an increase of 20% from 2014 sales.
7 Healthcare Stocks That Are Fit as a Fiddle
That's not to excuse any of the pharmaceutical industry's shenanigans. Real harm has occurred because of several controversial backroom antics. Also, there are serious questions about the overall economy as powerhouse companies have produced disappointing forecasts. And so, here are three healthcare stocks that will face extra scrutiny ahead of their earnings reports.
Healthcare Stocks Under a Microscope: Valeant Pharmaceuticals Intl Inc (VRX)
Can things get any uglier for Valeant Pharmaceuticals Intl Inc ( VRX )?
That is really the only question investors will be asking. Anything else is like the placement of deck chairs on the Titanic. Over the trailing 52 weeks, VRX stock briefly exceeded $260 a pop. Today, those shares are down to around $35, or an 86% loss in the markets.
Controversies stemming from accounting irregularities , combined with sharply reduced guidance for 2016, have contributed to the malaise in VRX.
Year-to-date, VRX stock is down about 65%, which is not the type of performance you want heading into your first quarter of fiscal year 2016 earnings result. The earnings per share target for VRX is $1.37, down almost a dollar from the year-ago quarter's consensus estimate.
What's worse, VRX is in uncharted territory. Valeant produced a string of earnings beats until things started to unravel in Q4 FY2015. Wall Street will want to see exceptionally strong numbers to even consider VRX as a viable opportunity.
A clean 10-K filing could do it. However, that's far from a safe bet.
In addition, the balance sheet has been saddled with a ballooning debt exposure since the 2008 financial crisis. VRX has already warned about a potential default on debt , which really hampers their credibility. Although they're not necessarily at risk for going under, it's going to take some time for Valeant to get things in order.
While it's tempting to view VRX as a contrarian play, it's also an incredibly speculative perspective. Until management can really plug the holes in their business, it's much safer to sit this one out.
Healthcare Stocks Under a Microscope: Perrigo Company (PRGO)
Perhaps no other company in the healthcare sector is having as bad a start to 2016 as Perrigo Company ( PRGO ).
After making a slight gain in January, PRGO has stared at a wall of red ink. On a YTD basis, shares are down nearly 31%. Preliminary reports for Q1 sales are below consensus estimates . Pricing challenges and a tough competitive environment forced PRGO to reduce this year's earnings guidance. There are also some hiccups with Perrigo's acquisition of Omega Pharma .
But dominating headlines is the coup d'état pulled by rival Valeant.
Former PRGO head Joseph Papa is now in the captain's seat for VRX. That's a major plus for the down-in-the-dumps pharmaceutical company, which should benefit their long journey to credibility. The problem for PRGO is that it is now left without one of the healthcare industry's most prized human assets.
Papa's replacement, John Hendrickson, is somewhat of a wild card because not much is known about him.
Looking ahead to its Q1 FY2016 report, analysts expect PRGO to hit an EPS of $1.89. This is 11 cents higher than the year-ago quarter's estimate. That might be a bit of a tall order considering the markets' reaction to the sales disappointment.
The other issue to consider is a potential takeover bid, especially if a weak earnings result further discounts the value of PRGO stock.
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For Perrigo's new CEO, this is a baptism by fire. Unfortunately, there's little time for PRGO to make a cohesive case to its shareholders.
Healthcare Stocks Under a Microscope: AbbVie Inc (ABBV)
On the more positive side among healthcare stocks is AbbVie Inc . ( ABBV ).
Unlike VRX or PRGO, ABBV has a much more positive outlook, with a 3% YTD performance. AbbVie's partnership with Roche Holding Ltd. (ADR) ( RHHBY ) for a leukemia fighting drug won early approval from the FDA.
Better yet, the treatment has shown encouraging signs under clinical testing, leading to the expedited approval. ABBV is also aggressively expanding its oncology portfolio with key asset acquisitions.
That's not to say that ABBV doesn't have its fair share of challenges. Primarily, the current drug pricing issue will be a concern moving forward. Although ABBV shows a steady increase in annual revenue trends over the past seven years, net income growth is comparatively inconsistent. That is in line with industry developments, where companies are sacrificing profitability with rebates and financial assistance programs to help patients cope with rising healthcare costs.
There is also evidence to suggest that specialty drugs may go through a demand surge upon introduction, but then peter out as the treatment becomes widely distributed. Such trends are negatively impacting hepatitis C therapies offered by ABBV.
It's also an important factor to consider for AbbVie's Q1 FY2016 earnings report. Analysts have high hopes for ABBV, pegging EPS estimates at $1.14, or 29 cents higher than the Q1 target from the year prior. However, based on the general sentiment towards the healthcare industry, there may be a risk of overconfidence.
Ultimately, ABBV is a good stock in a very pressured environment. It may be better to wait until some ongoing industry concerns are addressed.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
The post 3 Healthcare Stocks Under the Microscope 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 Under a Microscope: AbbVie Inc (ABBV) On the more positive side among healthcare stocks is AbbVie Inc . ( ABBV ). Unlike VRX or PRGO, ABBV has a much more positive outlook, with a 3% YTD performance. | Healthcare Stocks Under a Microscope: AbbVie Inc (ABBV) On the more positive side among healthcare stocks is AbbVie Inc . ( ABBV ). Unlike VRX or PRGO, ABBV has a much more positive outlook, with a 3% YTD performance. | Healthcare Stocks Under a Microscope: AbbVie Inc (ABBV) On the more positive side among healthcare stocks is AbbVie Inc . ( ABBV ). Unlike VRX or PRGO, ABBV has a much more positive outlook, with a 3% YTD performance. | Healthcare Stocks Under a Microscope: AbbVie Inc (ABBV) On the more positive side among healthcare stocks is AbbVie Inc . ( ABBV ). Unlike VRX or PRGO, ABBV has a much more positive outlook, with a 3% YTD performance. |
26594.0 | 2016-04-26 00:00:00 UTC | Worried About Social Security? Buy These 4 Stocks | ABBV | https://www.nasdaq.com/articles/worried-about-social-security-buy-these-4-stocks-2016-04-26 | nan | nan | AbbVie's huge outperformance over this period is owed to the massive success of just one drug -- Humira. Last year, worldwide sales of Humira topped $14 billion, up 16% over the previous year after adjusting for currency fluctuation, making it the best-selling drug in the world. In fact, Humira is such a massive winner that it was responsible for generating more than 60% of AbbVie's total revenue last year.
That last point has the markets worried, as Humira's U.S. patent is set to expire this this December. If a competitor can successfully bring a biosimilar version of Humira to market, it could cause the company's top line to recede in a hurry.
Management has downplayed the biosimiliar threat and has stated that the company is protected until at least 2022. In fact, when you add in the expected growth of its new cancer drug Imbruvica and its hepatitis C cure Viekira Pak to the rest of its lineup, the company has projected that its 2020 sales will exceed $37 billion. If that prediction comes true, the company could easily grow its earnings by double digits over that time period.
It takes gusto for a management team to stick its neck out like that and project good times for at least another five years, and I'm inclined to agree with the bullishness. I think AbbVie's stock offers investors a great combination of growth, value, and income right now, which is why it could be a great buy for anyone who wants to shore up a future income stream.
Cory Renauer : If you're looking for a stock to provide steadily growing income in the form of dividends, T. Rowe Price Group is right up your alley. The investment manager has raised its distribution for 30 consecutive years, and I wouldn't be surprised if it continues for 30 more.
Last year, a special cash dividend of $2 per share in addition to the $2.08 regular dividend put some multiple of $4.08 in the brokerage accounts of every shareholder. Meanwhile, the company also has repurchased more than enough of its own stock to offset the dilutive effect of stock-based compensation.
I'll admit there are some juicier yields available at the moment, but few can hold a candle to T. Rowe's rate of dividend increases. Over the past 10- and three-year periods it's raised the distribution by 16.3%, and 15.2%, respectively. Add in the prospect of whopping special dividends every few years, and it's hard to contain my excitement for this company -- but it gets even better.
We all know that past performance doesn't guarantee future returns, but there are a couple of reasons to suspect T. Rowe will continue its performance. With a whopping $763.1 billion in assets under management at the end of last year, the company enjoys immense economies of scale. This sitution allows it to retain talented staff to manage benchmark-beating retirement funds at rates that smaller competitors can't compete with.
Looking at what could be a volatile 2016, T. Rowe's most recent quarterly dividend increase -- paid last month -- was a modest 4% to $0.54 per share. The average analyst is expecting T. Rowe to earn $4.57 per share, putting the forward payout ratio at a comfortable 47% of consensus earnings estimates.
Without any debt to service, and free cash flow that exceeds earnings, there's plenty of room for steady dividend increases in the years ahead, even if we suffer a years-long bear market.
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Brian Feroldi has no position in any stocks mentioned. Cory Renauer owns shares of Abbott Laboratories, Johnson & Johnson, and Procter & Gamble. Dan Caplinger has no position in any stocks mentioned. Matthew Frankel has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool recommends Procter & Gamble. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 huge outperformance over this period is owed to the massive success of just one drug -- Humira. In fact, Humira is such a massive winner that it was responsible for generating more than 60% of AbbVie's total revenue last year. I think AbbVie's stock offers investors a great combination of growth, value, and income right now, which is why it could be a great buy for anyone who wants to shore up a future income stream. | AbbVie's huge outperformance over this period is owed to the massive success of just one drug -- Humira. In fact, Humira is such a massive winner that it was responsible for generating more than 60% of AbbVie's total revenue last year. I think AbbVie's stock offers investors a great combination of growth, value, and income right now, which is why it could be a great buy for anyone who wants to shore up a future income stream. | AbbVie's huge outperformance over this period is owed to the massive success of just one drug -- Humira. In fact, Humira is such a massive winner that it was responsible for generating more than 60% of AbbVie's total revenue last year. I think AbbVie's stock offers investors a great combination of growth, value, and income right now, which is why it could be a great buy for anyone who wants to shore up a future income stream. | AbbVie's huge outperformance over this period is owed to the massive success of just one drug -- Humira. In fact, Humira is such a massive winner that it was responsible for generating more than 60% of AbbVie's total revenue last year. I think AbbVie's stock offers investors a great combination of growth, value, and income right now, which is why it could be a great buy for anyone who wants to shore up a future income stream. |
26595.0 | 2016-04-25 00:00:00 UTC | Centene (CNC) Q1 Earnings: Surprise in Store for Stock? | ABBV | https://www.nasdaq.com/articles/centene-cnc-q1-earnings%3A-surprise-in-store-for-stock-2016-04-25 | nan | nan | Centene Corp . CNC is scheduled to report first-quarter 2016 results before the opening bell on Apr 26. In the last quarter, this company delivered an 11.76% positive earnings surprise. Let's see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
Centene's diversified product portfolio is likely to have benefitted the to-be-reported quarter's results. Solid membership should drive premiums and service revenues higher and in turn aid margin expansion. Solid membership came on the back of expansion into states.
Medical costs ratio is likely to remain stable.
Exchange business is expected to remain favorable in the quarter.
However, general and administrative costs ratio is expected to have increased. Interest expense may have increased owing to a higher debt level. Investment income is expected to remain soft.
Management estimates adjusted earnings per share between $4.05 and $4.40 in 2016 of which it expects about 45% in the first half of the year. But the company also estimated first-quarter earnings to be lower than the second quarter owing to business seasonality, reflecting only a month's impact from Health Net acquisitions and an extra day due to the leap year.
With respect to the surprise trend, Centene Corp surpassed expectations in each of the last four quarters, with an average beat of 8.40%.
The company's share price has been on an uptrend over the last few days. We wait to see how the stock reacts to the quarter's results.
Earnings Whispers
Our proven model does not conclusively show that Centene Corp will beat the Zacks Consensus Estimate in the first quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP : Centene Corp's Most Accurate estimate is pegged at 71 cents per share, which is below the Zacks Consensus Estimate of 74 cents. The Earnings ESP is thus -4.05%.
Zacks Rank : Centene has a Zacks Rank #3, which increases the predictive power of ESP. However, a negative ESP makes surprise prediction difficult.
The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. The company is scheduled to release first-quarter earnings results on Apr 28.
Amgen Inc. AMGN has an Earnings ESP of +3.52% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on Apr 28.
Humana Inc. HUM has an Earnings ESP of +0.55% and a Zacks Rank #3. The company is set to report first-quarter earnings results on May 4.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report CENTENE CORP (CNC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Solid membership should drive premiums and service revenues higher and in turn aid margin expansion. | Stocks to Consider Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report CENTENE CORP (CNC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks to Consider Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report CENTENE CORP (CNC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank : Centene has a Zacks Rank #3, which increases the predictive power of ESP. | Stocks to Consider Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report HUMANA INC NEW (HUM): Free Stock Analysis Report CENTENE CORP (CNC): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank : Centene has a Zacks Rank #3, which increases the predictive power of ESP. |
26596.0 | 2016-04-25 00:00:00 UTC | Aetna (AET) Q1 Earnings: Is a Surprise in Store for Stock? | ABBV | https://www.nasdaq.com/articles/aetna-aet-q1-earnings%3A-is-a-surprise-in-store-for-stock-2016-04-25 | nan | nan | Aetna Inc.AET is scheduled to report first-quarter results before the opening bell on Apr 28. In the last quarter, this company delivered a 14.17% positive earnings surprise. Let's see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
Aetna expects its prescription drug plan (PDP) membership to increase over 0.45 million in the first quarter. Membership growth along with business growth should lead to margin expansion.
The company also expects its Medicare Advantage membership to increase more than 6% in the to-be-reported quarter with individual Medicare Advantage growing its membership by 10%.
Total medical membership is projected at 22.7 million to 22.8 million for the first quarter. This reflects a decline from the 2015 level due to commercial ASC decline of about 0.75 million members and 0.18 million less members in group commercial insured. However, membership growth in government businesses is estimated at about 0.17 million.
Broad-based Medicaid business is expected to drive the results of the segment.
The company also expects its ACA-compliant businesses to see improved margins in the first quarter.
However, the company does not expect any material improvement in individual commercial business. Medical costs may rise in the first quarter. Also, the absence of share buyback may dent the bottom line.
With respect to the surprise trend, Aetna surpassed expectations in each of the last four quarters, with an average beat of 13.57%.
Earnings Whispers
Our proven model does not conclusively show that Aetna will beat the Zacks Consensus Estimate in the first quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP : Aetna's Most Accurate estimate is pegged at $2.19 per share, which is below the Zacks Consensus Estimate of $2.22. The Earnings ESP is thus -1.35%.
Zacks Rank : Aetna has a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Moreover, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Anthem, Inc. ANTM has an Earnings ESP of +0.30% and a Zacks Rank #2. The company is scheduled to release first-quarter earnings results on Apr 27.
AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. The company is scheduled to release first-quarter earnings results on Apr 28.
Amgen Inc. AMGN has an Earnings ESP of +3.52% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on Apr 28.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ANTHEM INC (ANTM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. With respect to the surprise trend, Aetna surpassed expectations in each of the last four quarters, with an average beat of 13.57%. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ANTHEM INC (ANTM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Stocks to Consider Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter: Anthem, Inc. ANTM has an Earnings ESP of +0.30% and a Zacks Rank #2. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ANTHEM INC (ANTM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Zacks ESP : Aetna's Most Accurate estimate is pegged at $2.19 per share, which is below the Zacks Consensus Estimate of $2.22. | AbbVie Inc. ABBV has an Earnings ESP of +1.77% and a Zacks Rank #3. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report ANTHEM INC (ANTM): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. However, membership growth in government businesses is estimated at about 0.17 million. |
26597.0 | 2016-04-25 00:00:00 UTC | Big Drug Stocks to Report This Week: LLY, GSK, VRTX, BMY, ABBV | ABBV | https://www.nasdaq.com/articles/big-drug-stocks-report-week-lly-gsk-vrtx-bmy-abbv-2016-04-25 | nan | nan | Several major biotech and pharma companies will be reporting first quarter results this week as we head into the peak of the earnings season. Overall, about 183 S&P 500 members are scheduled to report this week and by the end of the week, more than 60% of the index's total membership will have reported their results.
According to our Earnings Trend report, the results so far show more positive earnings and revenue surprises as well as fewer negative revisions to second quarter estimates. However, despite the better-than-expected performance so far, total Q1 earnings and revenues are still expected to decline from the year-ago period thereby representing the 4th quarter in a row of earnings declines for the index.
What's in Store for Drug Stocks?
Medical is one of the sectors expected to perform well in the first quarter with earnings expected to grow 2% on revenue growth of 9%. Johnson & Johnson kicked off the earnings season for pharma stocks with a beat and an improved outlook. Abbott followed suit with an earnings beat and a raised outlook.
Among biotech companies, Biogen, famous for its multiple sclerosis treatments, reported better-than-expected earnings.
But the majority of pharma and biotech companies are yet to report results. This week, we expect to see a flurry of earnings reports with companies like Eli Lilly and Company LLY , GlaxoSmithKline plc GSK , Vertex Pharmaceuticals Incorporated VRTX , Bristol-Myers Squibb Company BMY and AbbVie Inc. ABBV slated to report in the first half of the week.
Let's see how these players are poised ahead of the scheduled announcements.
Lilly is set to report first quarter 2016 earnings results on Apr 26 before the market opens. This Zacks Rank #2 (Buy) company has a negative Earnings ESP , which makes it difficult to conclusively predict an earnings beat this quarter. While products like Trulicity, Cyramza, Humalog, and Trajenta should continue performing well, Alimta could continue to experience some softening in later lines of therapy (second line and beyond) reflecting the launch of Cyramza in the second-line setting as well as competition from immuno-oncology agents (read more: Will Currency & Competition Hurt Lilly's Q1 Earnings? ).
U.K.-based Glaxo will be reporting first quarter results on Apr 27. Glaxo's Zacks Rank #3 (Hold) and Earnings ESP of 0.00% make it difficult to conclusively predict an earnings beat this quarter. Several products are facing generic competition and the Consumer Healthcare business is expected to be sluggish in the first quarter due to the year-over-year comparison in Flonase's performance. But new products should help drive growth in the Pharma segment this year while currency will be a tailwind (read more: Glaxo Q1 Earnings: What's in Store for the Stock? ).
Vertex, known for its strong presence in the cystic fibrosis (CF) market, will be reporting on Apr 27 as well. Once again, it is difficult to conclusively predict an earnings beat for Vertex this quarter given the company's Zacks Rank #3 and Earnings ESP of 0.00%. First quarter sales could be impacted by some inventory stocking in the fourth quarter. Operating expenses will also shoot up as Vertex develops its pipeline and works on expanding Kalydeco's and Orkambi's labels and continues to invest in the Orkambi launch (read more: Vertex to Report Q1 Earnings: Is a Surprise in Store? ).
Bristol-Myers, which has a very strong earnings track record, is scheduled to report first-quarter 2016 results on Apr 28. However, with the company sporting a Zacks Rank #2 and a negative Earnings ESP, it is difficult to conclusively predict an earnings beat this quarter. So while cancer drugs in the company's portfolio should continue performing well, the HIV and HCV businesses will remain under competitive pressure (read more: Bristol-Myers Q1 Earnings: Can the Stock Surprise? ).
AbbVie is also reporting first quarter results on Apr 28. This company, which is best known for its flagship product, Humira, is expected to beat earnings expectations - AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.77%. Strong Imbruvica and Humira sales should drive performance (read more: AbbVie Likely to Beat on Q1 Earnings: Stock to Gain? ).
Stay Tuned! Check later on our full write-up on earnings releases of these stocks.
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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 week, we expect to see a flurry of earnings reports with companies like Eli Lilly and Company LLY , GlaxoSmithKline plc GSK , Vertex Pharmaceuticals Incorporated VRTX , Bristol-Myers Squibb Company BMY and AbbVie Inc. ABBV slated to report in the first half of the week. AbbVie is also reporting first quarter results on Apr 28. This company, which is best known for its flagship product, Humira, is expected to beat earnings expectations - AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.77%. | This week, we expect to see a flurry of earnings reports with companies like Eli Lilly and Company LLY , GlaxoSmithKline plc GSK , Vertex Pharmaceuticals Incorporated VRTX , Bristol-Myers Squibb Company BMY and AbbVie Inc. ABBV slated to report in the first half of the week. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie is also reporting first quarter results on Apr 28. | This week, we expect to see a flurry of earnings reports with companies like Eli Lilly and Company LLY , GlaxoSmithKline plc GSK , Vertex Pharmaceuticals Incorporated VRTX , Bristol-Myers Squibb Company BMY and AbbVie Inc. ABBV slated to report in the first half of the week. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie is also reporting first quarter results on Apr 28. | AbbVie is also reporting first quarter results on Apr 28. This company, which is best known for its flagship product, Humira, is expected to beat earnings expectations - AbbVie has a Zacks Rank #3 and an Earnings ESP of +1.77%. This week, we expect to see a flurry of earnings reports with companies like Eli Lilly and Company LLY , GlaxoSmithKline plc GSK , Vertex Pharmaceuticals Incorporated VRTX , Bristol-Myers Squibb Company BMY and AbbVie Inc. ABBV slated to report in the first half of the week. |
26598.0 | 2016-04-25 00:00:00 UTC | 5 Biotech Stocks to Bet on This Earnings Season | ABBV | https://www.nasdaq.com/articles/5-biotech-stocks-to-bet-on-this-earnings-season-2016-04-25 | nan | nan | After a ho-hum fourth-quarter earnings season, investors are on the edge of their seats for the first quarter. The start of 2016 was mired by macroeconomic issues like wildly swinging oil prices and a slowdown in China.
The volatility which was sparked off in the second half of 2015 by Democratic Presidential candidate Hillary Clinton's price gouging tweet continued to plague the biotech sector in 2016 as well. The NYSE ARCA Biotech Index (^BTK) and NASDAQ Biotechnology Index (^NBI) have declined 11.6% and 12.0%, respectively, so far this year.
Notwithstanding the decline, things surely look far better now than they did a couple of months back. Last week, Biogen Inc. (BIIB) reported better-than-expected earnings for the first quarter of 2016 even though revenues fell short of expectations.
It has been a busy year so far for the biotech sector. M&A and licensing deals continue to be a key area of focus with Shire (SHPG) announcing the acquisition of Baxalta Inc. (BXLT) for $32 billion right at the onset of 2016. The acquisition is expected to close by mid-year. And last week, rumors of AstraZeneca (AZN) making a bid for Xtandi maker Medivation (MDVN) surfaced.
Meanwhile, new product approvals along with label expansion of existing drugs and regular pipeline updates for key drugs kept investors' attention glued to the sector. Earlier in the month, the FDA's Gastrointestinal Drugs Advisory Committee voted unanimously in favor of Intercept Pharmaceuticals' (ICPT) lead pipeline candidate, Ocaliva (obeticholic acid) while AbbVie along with partner Roche (RHHBY) received accelerated approval for oncology drug Venclexta (venetoclax) for previously treated chronic lymphocytic leukemia with a 17p deletion.
On the other hand, BioMarin Pharmaceutical Inc. (BMRN) was dealt a blow when the company received a Complete Response Letter for Kyndrisa for the treatment of Duchenne muscular dystrophy (DMD) amenable to exon 51 skipping. Sucampo Pharmaceuticals, Inc. (SCMP) too slumped recently when a phase II study on pipeline candidate, cobiprostone, failed to meet the primary endpoint in a trial on patients with non-erosive reflux disease or symptomatic gastroesophageal reflux disease.
Nevertheless, given the strong fundamentals, healthy pipelines and the drive to find innovative treatments for rare diseases, the happening biotech sector should be a good bet for investors. Here we help you to identify some companies in the biotech sector that have the potential to beat earnings in their upcoming releases. These stocks are well positioned in today's market environment, and could see considerable upside riding on the aforementioned trends. An earnings beat should help these stocks gain investor confidence and show a favorable price movement.
How to Pick?
Given a large number of industry participants, pinpointing stocks that have the potential to beat estimates could appear to be a daunting task. But our proprietary methodology makes it fairly simple. One way to narrow down the list of choices this earnings season is by looking at stocks that have the combination of a favorable Zacks Rank - Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) - and a positive Earnings ESP .
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Below are five biotech stocks we believe are best positioned to stand out as we take a stand in the ongoing earnings season:
Biotech bigwig, Gilead Sciences ( GILD ) carries a Zacks Rank #2 with an Earnings ESP of +1.65%. Gilead's key areas of focus include human immunodeficiency virus (HIV), liver diseases such as chronic hepatitis C virus (HCV) infection and chronic hepatitis B virus (HBV) infection, cardiovascular, hematology/oncology and inflammation/respiratory. The company is a leader in the HCV market with key drugs like Sovaldi and Harvoni.
The company has an excellent track record and registered positive earnings surprises in the last four quarters with an average beat of 7.8%. The company is expected to report first-quarter results on Apr 28.
Seattle Genetics, Inc . ( SGEN ) is also looking up this season with a Zacks Rank #3 with an Earnings ESP of +63.64%. Seattle Genetics primarily focuses on the development and commercialization of therapies targeted for the treatment of cancer. The company's only marketed product, Adcetris, is approved for relapsed Hodgkin lymphoma and relapsed systemic anaplastic large cell lymphoma. The company is expected to report first-quarter results on Apr 28.
BioMarin Pharmaceutical Inc . ( BMRN ) carries a Zacks Rank #3 with an Earnings ESP of +22.35%. The company's product portfolio comprises five marketed products, namely, Aldurazyme, Naglazyme, Kuvan, Firdapse and Vimizim. The company is expected to report first-quarter results on Apr 28.
AbbVie Inc. ( ABBV ) carries a Zacks Rank #3 with an Earnings ESP of +1.77%. The company has a presence in the rheumatoid arthritis, cancer, HIV, HCV, testosterone, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), Crohn's disease (moderate to severe) and ulcerative colitis (moderate to severe), among others. The company has an impressive track record with an average earnings beat of 4.85%. The company is expected to report first-quarter results on Apr 28.
Amgen Inc. ( AMGN ) carries a Zacks Rank #3 with an Earnings ESP of +2.56%. Amgen has a strong presence in the supportive cancer care, nephrology and autoimmune disease markets with drugs like Enbrel, Neulasta, Epogen, and Neupogen among others. The company has an excellent track record and registered positive earnings surprises in the last four quarters with an average beat of 13.7%. The company is expected to report first-quarter results on Apr 28.
Bottom Line
Although hurdles remain in the form of biosimilars and currency headwinds, investors would do well to keep an eye on these potential outperformers given their solid Zacks Rank and positive Zacks Earnings ESP.
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GILEAD SCIENCES (GILD): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier in the month, the FDA's Gastrointestinal Drugs Advisory Committee voted unanimously in favor of Intercept Pharmaceuticals' (ICPT) lead pipeline candidate, Ocaliva (obeticholic acid) while AbbVie along with partner Roche (RHHBY) received accelerated approval for oncology drug Venclexta (venetoclax) for previously treated chronic lymphocytic leukemia with a 17p deletion. AbbVie Inc. ( ABBV ) carries a Zacks Rank #3 with an Earnings ESP of +1.77%. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), Crohn's disease (moderate to severe) and ulcerative colitis (moderate to severe), among others. | AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), Crohn's disease (moderate to severe) and ulcerative colitis (moderate to severe), among others. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report SEATTLE GENETIC (SGEN): Free Stock Analysis Report BIOMARIN PHARMA (BMRN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier in the month, the FDA's Gastrointestinal Drugs Advisory Committee voted unanimously in favor of Intercept Pharmaceuticals' (ICPT) lead pipeline candidate, Ocaliva (obeticholic acid) while AbbVie along with partner Roche (RHHBY) received accelerated approval for oncology drug Venclexta (venetoclax) for previously treated chronic lymphocytic leukemia with a 17p deletion. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report SEATTLE GENETIC (SGEN): Free Stock Analysis Report BIOMARIN PHARMA (BMRN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier in the month, the FDA's Gastrointestinal Drugs Advisory Committee voted unanimously in favor of Intercept Pharmaceuticals' (ICPT) lead pipeline candidate, Ocaliva (obeticholic acid) while AbbVie along with partner Roche (RHHBY) received accelerated approval for oncology drug Venclexta (venetoclax) for previously treated chronic lymphocytic leukemia with a 17p deletion. AbbVie Inc. ( ABBV ) carries a Zacks Rank #3 with an Earnings ESP of +1.77%. | Earlier in the month, the FDA's Gastrointestinal Drugs Advisory Committee voted unanimously in favor of Intercept Pharmaceuticals' (ICPT) lead pipeline candidate, Ocaliva (obeticholic acid) while AbbVie along with partner Roche (RHHBY) received accelerated approval for oncology drug Venclexta (venetoclax) for previously treated chronic lymphocytic leukemia with a 17p deletion. AbbVie Inc. ( ABBV ) carries a Zacks Rank #3 with an Earnings ESP of +1.77%. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), Crohn's disease (moderate to severe) and ulcerative colitis (moderate to severe), among others. |
26599.0 | 2016-04-23 00:00:00 UTC | 3 Things to Watch in Gilead Sciences, Inc.'s First-Quarter Results | ABBV | https://www.nasdaq.com/articles/3-things-watch-gilead-sciences-incs-first-quarter-results-2016-04-23 | nan | nan | Image source: Gilead Sciences.
After dropping more than 17% at one point, shares of Gilead Sciences are now back to roughly breakeven year to date. Whether the regained momentum will continue or come to a screeching halt depends heavily on what the biotech has to say on April 28. That's when Gilead announces its 2016 first-quarter earnings results. Here are three key things for investors to watch in that announcement.
1. Any hepatitis C franchise hiccups
Concerns about potential problems for Gilead's juggernaut hepatitis C franchise have been overblown so far. Harvoni took the torch from Sovaldi and has carried it well. Combined sales for the two hep C drugs totaled a whopping $19.1 billion last year. However, there are some potential issues that just might have shown up in the first quarter.
Competition from Merck 's Zepatier stands out as the most visible challenge that Gilead faces. Don't expect a very big impact for Gilead in the first quarter, though. Merck won FDA approval for its hepatitis C treatment in January.
This isn't Gilead's first competitive threat. AbbVie launched Viekira Pak in early 2015. Even though the rival scored some early points by landing an agreement with a major pharmacy benefits manager, Gilead roared back with its own deals. Harvoni and Sovaldi have easily outpaced Viekira Pak in sales.
However, the threat from Merck could be more serious. Merck priced Zepatier well below Harvoni, Sovaldi, and Viekira Pak. Gilead will definitely try to sway payers based on Harvoni's solid real-world safety and efficacy profile. While both Gilead and AbbVie already discount their drugs significantly from the list prices, the companies could be pushed to lower prices even more to prevent Zepatier from winning market share.
International sales for Harvoni will likely make the difference between a good or bad quarter for Gilead. The biotech should post solid growth in Europe. Pay special attention to sales in other international markets where Harvoni is just getting started.
2.Genvoya vs. Stribild
I wouldn't expect any big surprises from Gilead's HIV/AIDS mainstays Truvada and Atripla. Odefsey and Descovy gained regulatory approval too late to impact first quarter. There is an HIV battle to keep your eye on, though: Genvoya vs. Stribild.
Gilead won FDA approval for Genvoya on Nov. 5, 2015. Within two weeks after approval, Genvoy gained preferred status in the U.S. Department of Health and Human Services treatment guidelines. In less than two months on the market, the drug generated sales of $44 million.
That sounds great, but there's one problem. Most of Genvoya's sales are stemming from switches to the new drug from patients who used Stribild in the past. Gilead estimates that 80% of the Genvoya business in the fourth quarter came from switches. And the company thinks that around 90% of those switches were from Stribild.
If Genvoya grows mainly at Stribild's expense, Gilead doesn't benefit much overall. On the other hand, if the first-quarter results show that Genvoya's sales growth significantly outpaces any negative impact on Stribild, that's potentially good news for the rest of 2016.
3. Cash plans
Last year, Gilead added a whopping $14.5 billion to its cash reserves, including cash equivalents and marketable securities. The biotech ended 2015 with a cash stockpile topping $26 billion.
Gilead used some of that cash in the first quarter to buy back more shares. Its board of directors approved an accelerated share repurchase program in February to spend $5 billion on buybacks by the end of April. That amount would come from a previous authorization. The board also approved another share repurchase program of $12 billion. The biotech is also using some of the cash to pay higher dividends. The board approved a 10% dividend increase effective in the second quarter of 2016.
The big question is: What does Gilead plan to do with its cash outside of share buybacks and dividend increases? The big biotech did shell out some money in early April to acquire Nimbus Apollo, a subsidiary of Nimbus Therapeutics. However, that cost Gilead $400 million up front -- practically pocket change for the company.
In his fourth-quarterearnings callcomments, Gilead's John Milligan noted that its financial strength enabled it to be "thoughtful and opportunistic in pursuing partnerships or acquisitions." Look for hints of any thoughts and opportunities along those lines in Gilead's first-quarter discussion.
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The article 3 Things to Watch in Gilead Sciences, Inc.'s First-Quarter Results originally appeared on Fool.com.
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 .
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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 launched Viekira Pak in early 2015. While both Gilead and AbbVie already discount their drugs significantly from the list prices, the companies could be pushed to lower prices even more to prevent Zepatier from winning market share. Even though the rival scored some early points by landing an agreement with a major pharmacy benefits manager, Gilead roared back with its own deals. | AbbVie launched Viekira Pak in early 2015. While both Gilead and AbbVie already discount their drugs significantly from the list prices, the companies could be pushed to lower prices even more to prevent Zepatier from winning market share. Merck priced Zepatier well below Harvoni, Sovaldi, and Viekira Pak. | While both Gilead and AbbVie already discount their drugs significantly from the list prices, the companies could be pushed to lower prices even more to prevent Zepatier from winning market share. AbbVie launched Viekira Pak in early 2015. Cash plans Last year, Gilead added a whopping $14.5 billion to its cash reserves, including cash equivalents and marketable securities. | AbbVie launched Viekira Pak in early 2015. While both Gilead and AbbVie already discount their drugs significantly from the list prices, the companies could be pushed to lower prices even more to prevent Zepatier from winning market share. Merck priced Zepatier well below Harvoni, Sovaldi, and Viekira Pak. |
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