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26600.0 | 2016-04-22 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-latest-13f-filers-holds-abbvie-2016-04-22 | nan | nan | At Holdings Channel , we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 13 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen .
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers:
In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 12/31/2015 to 03/31/2016, with 7 having decreased their positions and 1 new position.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 03/31/2016 reporting period (out of the 564 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 12/31/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds increased their holdings by 1,501,074 shares in the aggregate, from 35,718,817 up to 37,219,891 for a share count increase of approximately 4.20%. The overall top three funds holding ABBV on 03/31/2016 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc. (Symbol: ABBV).
10 S&P 500 Components Hedge Funds Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel , we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 13 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc. (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 12/31/2015 to 03/31/2016, with 7 having decreased their positions and 1 new position. | At Holdings Channel , we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 13 of these funds. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 12/31/2015 to 03/31/2016, with 7 having decreased their positions and 1 new position. Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 03/31/2016 reporting period (out of the 564 we looked at in total). | Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 12/31/2015 to 03/31/2016, with 7 having decreased their positions and 1 new position. We then compared that number to the sum total of ABBV shares those same funds held back at the 12/31/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. The overall top three funds holding ABBV on 03/31/2016 were: We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 4 of the above funds having increased existing ABBV positions from 12/31/2015 to 03/31/2016, with 7 having decreased their positions and 1 new position. We then compared that number to the sum total of ABBV shares those same funds held back at the 12/31/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. At Holdings Channel , we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2016 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 13 of these funds. |
26601.0 | 2016-04-22 00:00:00 UTC | Health Care Sector Update for 04/22/2016: CTMX,ABBV,PACB,AMBS | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-04222016-ctmxabbvpacbambs-2016-04-22 | nan | nan | Top Health Care Stocks
JNJ -0.47%
PFE -0.17%
MRK +0.15%
ABT -0.04%
AMGN -0.80%
Health care stocks were narrowly mixed, with the NYSE Health Care Index declining about 0.2% while shares of health care companies in the S&P 500 were down about 0.1% as a group.
In company news, CytomX Therapeutics ( CTMX ) was hanging on to a narrow gain during recent Friday trading, giving back nearly all of a 4% advance that initially followed the specialty drugmaker announcing a collaboration contract with AbbVie ( ABBV ) to develop probody drug conjugates against CD71, a potential new target to treat leukemia and lymphoma.
As part of the agreement, CytomX will receive a $30 million upfront payment and could receive up to $470 million in additional compensation as the partnership reaches certain development, regulatory and commercial milestones and as certain pre-determined outcomes are achieved.
AbbVie will lead global marketing and commercial activities with CytomX eligible to share in any U.S. profits as well as tiered double-digit percentage royalties on net product sales outside of the United States. CTMX also maintains an option to co-promote any drug candidate developed during the collaboration in this country.
CTMX shares were slightly higher at $13.50 apiece, rising about 0.4% after previously reaching a session high of $14.00 a share. ABBV shares also were narrowly lower, slipping about 0.31% to $61.20 a share, giving back an earlier rise to $61.99 a share.
In other sector news,
(+) PACB, (+17.1%) Q1 net loss of $0.23 per share comes in a penny less than expected. Revenue rises 8.2% over last year to $19.1 mln, also exceeding the $17.7 mln consensus.
(-) AMBS, (-19.2%) Prices $1.5 mln private placement of 10% senior secured convertible promissory notes due April 2017 with three existing institutional investors, who also received warrants to buy up to 1.35 mln shares of AMBS common stock.
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, CytomX Therapeutics ( CTMX ) was hanging on to a narrow gain during recent Friday trading, giving back nearly all of a 4% advance that initially followed the specialty drugmaker announcing a collaboration contract with AbbVie ( ABBV ) to develop probody drug conjugates against CD71, a potential new target to treat leukemia and lymphoma. AbbVie will lead global marketing and commercial activities with CytomX eligible to share in any U.S. profits as well as tiered double-digit percentage royalties on net product sales outside of the United States. ABBV shares also were narrowly lower, slipping about 0.31% to $61.20 a share, giving back an earlier rise to $61.99 a share. | 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, CytomX Therapeutics ( CTMX ) was hanging on to a narrow gain during recent Friday trading, giving back nearly all of a 4% advance that initially followed the specialty drugmaker announcing a collaboration contract with AbbVie ( ABBV ) to develop probody drug conjugates against CD71, a potential new target to treat leukemia and lymphoma. AbbVie will lead global marketing and commercial activities with CytomX eligible to share in any U.S. profits as well as tiered double-digit percentage royalties on net product sales outside of the United States. | ABBV shares also were narrowly lower, slipping about 0.31% to $61.20 a share, giving back an earlier rise to $61.99 a share. In company news, CytomX Therapeutics ( CTMX ) was hanging on to a narrow gain during recent Friday trading, giving back nearly all of a 4% advance that initially followed the specialty drugmaker announcing a collaboration contract with AbbVie ( ABBV ) to develop probody drug conjugates against CD71, a potential new target to treat leukemia and lymphoma. AbbVie will lead global marketing and commercial activities with CytomX eligible to share in any U.S. profits as well as tiered double-digit percentage royalties on net product sales outside of the United States. | In company news, CytomX Therapeutics ( CTMX ) was hanging on to a narrow gain during recent Friday trading, giving back nearly all of a 4% advance that initially followed the specialty drugmaker announcing a collaboration contract with AbbVie ( ABBV ) to develop probody drug conjugates against CD71, a potential new target to treat leukemia and lymphoma. ABBV shares also were narrowly lower, slipping about 0.31% to $61.20 a share, giving back an earlier rise to $61.99 a share. AbbVie will lead global marketing and commercial activities with CytomX eligible to share in any U.S. profits as well as tiered double-digit percentage royalties on net product sales outside of the United States. |
26602.0 | 2016-04-21 00:00:00 UTC | Better Buy: Pfizer Inc. vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy-pfizer-inc-vs-abbvie-2016-04-21 | nan | nan | AbbVie and Pfizer currently offer two of the highest dividend payouts among major drugmakers, with respective yields of 3.8% and 3.7%, according to S&P Global Market Intelligence . Nonetheless, both of these large-cap biopharmas are facing some stiff headwinds at the moment that could ultimately threaten their dividend programs.
Image source: Flickr via user stockmonkeys.com.
Specifically, AbbVie is presently staring down the pending patent expiration of its flagship anti-inflammatory medicine Humira. And Pfizer is fresh off of its break-up with Botox-maker Allergan , meaning that it might be willing to try its hand (yet again) at finally closing a megamerger to resolve its lingering problems with the so-called patent cliff. With this in mind, let's consider which of these top dividend stocks is the better buy right now.
Which company offers the safer dividend?
AbbVie and Pfizer have both been raising their dividend payouts on a consistent basis over the last few years, with AbbVie even garnering the coveted "Dividend Aristocrat" status for its rich shareholder rewards program. Even so, both companies sport fairly high trailing-12-month payout and debt-to-equity ratios:
Data source: S&P Global Market Intelligence.
While AbbVie's payout ratio isn't exactly sky high, the drugmaker's debt-to-equity ratio is certainly noteworthy, implying that it may run into trouble paying its long-term debt later down the road. Specifically, if the biotech's long-term growth drivers don't pan out as expected (more on this below), AbbVie could be forced to slash its dividend as a result of its high debt load.
Pfizer's story centers around its flagging Global Established Products business that saw a noteworthy 14% decline in annual revenue in 2015 due to the introduction of generic competitors for former top-selling drugs like Celebrex and Lyrica -- leading, in large part, to the drugmaker's substantial trailing-12-month payout ratio. Going forward, Pfizer should have ample free cash flow to support its dividend at current levels, perhaps giving the drugmaker the edge in this comparison.
Short- and long-term value drivers
AbbVie is currently in the midst of building a firewall against biosimilars to Humira that should give the biotech enough time to develop its other high-dollar assets in oncology, inflammatory and immune disorders, and infectious diseases.
All told, AbbVie's management estimates that biosimilar competition won't come into play until at least 2022 due to its broad defense strategy consisting of brand loyalty, patent litigation, new formulations, and a new delivery device designed to enhance the product's value to patients.
So, the biotech has perhaps a five-year runway to bring important experimental drugs like ABT-494 for rheumatoid arthritis and Crohn's disease to market before Humira's revenue really starts to drop off due to the introduction of biosimilars. In the meantime, AbbVie is hoping to build on its initial foray into the hepatitis C space with newer therapies offering shorter treatment cycles, and to continue to expand the label of its newly acquired blood-cancer drug Imbruvica.
Image source: Pharmacyclics .
Pfizer's efforts, in terms of growing its top line, are primarily centered around the commercial launches of its newer growth products like Prevnar 13, Ibrance, and Eliquis. Longer term, the drugmaker is making strides toward developing a first-in-class PCSK9 inhibitor called bococizumab for the treatment of high cholesterol levels. Meanwhile, it's also building a top flight immuno-oncology platform headlined by its anti-PD-L1 antibody avelumab that's presently in clinical trials for certain types of stomach and lung cancer, among others.
Which dividend stock is the better buy?
The wild card here is Pfizer's M&A plans moving forward. If Pfizer doesn't choose to buy another growth-oriented pharma to offset its declining Global Established Products business, investors can expect the drugmaker's annual revenue to grow by less than 4% in 2017, per the Street's estimates -- even despite monstrous growth levels emanating from both Ibrance and Prevnar 13 and a rapidly developing pipeline of high-value experimental-stage drugs. In the same breath, a sizable merger could force Pfizer to draw down its shareholder rewards programs, lessening its appeal as an income-generating stock. In short, it's hard to nail down what Pfizer is really going to look like as an investing vehicle in the next year or so.
Turning to AbbVie, the Street is forecasting that this biotech's top-line should rise by a healthy 9.1% next year, implying that its high debt levels shouldn't impact its dividend in the near term. Looking further out, though, the sustainability of its top-notch yield is going to depend on the biotech's ability to successfully develop ABT-494, as well as to grow Imbruvica's market share by a substantial margin.
The bottom line is that both of these pharma stocks are in a transitory period in their respective life cycles. But AbbVie seems to be further along when it comes to moving beyond Humira as its dominant value driver -- although it still has a considerable amount of work to do to fully enter the next stage of its evolution.
So, while the dividend programs and long-term outlooks of both companies remain an open question to a large degree, I think AbbVie is probably the better buy for investors looking for stable income and reasonable growth prospects right now. After all, AbbVie has executed on its stated plans to start diversifying its revenue base heading into Humira's date with the patent cliff, providing some reassurance that the company is indeed headed in the right direction. Pfizer, on the other hand, has repeatedly failed to locate a suitable merger partner over the last two years in order to close the book on its patent problems, whereby blunting the value of its innovative products business, as well as its diverse clinical pipeline.
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The article Better Buy: Pfizer Inc. vs. AbbVie originally appeared on Fool.com.
George Budwell owns shares of Allergan and Pfizer. 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 .
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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. | All told, AbbVie's management estimates that biosimilar competition won't come into play until at least 2022 due to its broad defense strategy consisting of brand loyalty, patent litigation, new formulations, and a new delivery device designed to enhance the product's value to patients. AbbVie and Pfizer currently offer two of the highest dividend payouts among major drugmakers, with respective yields of 3.8% and 3.7%, according to S&P Global Market Intelligence . Specifically, AbbVie is presently staring down the pending patent expiration of its flagship anti-inflammatory medicine Humira. | While AbbVie's payout ratio isn't exactly sky high, the drugmaker's debt-to-equity ratio is certainly noteworthy, implying that it may run into trouble paying its long-term debt later down the road. AbbVie and Pfizer currently offer two of the highest dividend payouts among major drugmakers, with respective yields of 3.8% and 3.7%, according to S&P Global Market Intelligence . Specifically, AbbVie is presently staring down the pending patent expiration of its flagship anti-inflammatory medicine Humira. | AbbVie and Pfizer currently offer two of the highest dividend payouts among major drugmakers, with respective yields of 3.8% and 3.7%, according to S&P Global Market Intelligence . AbbVie and Pfizer have both been raising their dividend payouts on a consistent basis over the last few years, with AbbVie even garnering the coveted "Dividend Aristocrat" status for its rich shareholder rewards program. Specifically, AbbVie is presently staring down the pending patent expiration of its flagship anti-inflammatory medicine Humira. | AbbVie and Pfizer currently offer two of the highest dividend payouts among major drugmakers, with respective yields of 3.8% and 3.7%, according to S&P Global Market Intelligence . Specifically, AbbVie is presently staring down the pending patent expiration of its flagship anti-inflammatory medicine Humira. AbbVie and Pfizer have both been raising their dividend payouts on a consistent basis over the last few years, with AbbVie even garnering the coveted "Dividend Aristocrat" status for its rich shareholder rewards program. |
26603.0 | 2016-04-21 00:00:00 UTC | The 3 Best Stocks In The 3 Worst Sectors (SLB, Citigroup, ABBV) | ABBV | https://www.nasdaq.com/articles/the-3-best-stocks-in-the-3-worst-sectors-slb-citigroup-abbv-2016-04-21 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There's an old real estate adage that says that you should never buy the best house in a bad neighborhood. But when it comes to investing, sometimes the best stocks in the worst sectors, like Schlumberger ( SLB ), Citigroup ( C ) and AbbVie ( ABBV ), are excellent long-term value plays for patient investors.
Schlumberger (SLB)
The energy sector has actually bounced back pretty nicely of late, but most energy stocks are still severely depressed compared to where they were a couple of years ago. There are certainly better short-term value plays in the space than SLB. But if you want a best-in-class stock that is relatively low-risk and has positioned itself perfectly for the eventual rebound in oil prices , SLB is a great play. Not only is SLB financially healthy enough to weather the downturn in oil prices, its aggressive buyout of Cameron International Corporation ( CAM ) was both opportunistic and strategic.
Rival Halliburton ( HAL ) agreed to buy Baker Hughes ( BHI ) back in November 2014. The latest news on that deal is that the U.S. Justice Department is suing to block it. SLB announced its $14.8 billion buyout of CAM in August 2015, and because the two companies offer complementary product lines, SLB has already closed the deal.
8 Bargain Dividend Stocks to Buy Now
SLB, which was already the world's largest oil services company prior to the CAM acquisition, has expanded its business scope, trimmed the fat and is ready to boom when oil prices and production begin to ramp up again.
Citigroup (C)
Before you start yelling at me through your screen for declaring Citigroup the best stock in the financial sector, hear me out. Just look at the numbers. Citigroup currently offers the best value of any large U.S. bank by any metric you could imagine. It has an incredibly cheap 8.3 forward P/E ratio and trades at only 64% of book value. If you factor in growth, Citigroup's PEG ratio is a minuscule 0.43, less than half that of any other large U.S. bank.
Citigroup has shed its riskiest assets and is now poised to generate average annual earnings growth of 18.2 percent over the next five years. Again, this growth is the best among all the big banks. Just this week, Citi was the only one of the eight "too big to fail" banks to have its living will pass both the Federal Reserve and the FDIC's tests. The only one.
Post-crisis Citigroup has completely redefined its business, and in due time it will shed its reputation as a dangerous investment as well.
AbbVie (ABBV)
Healthcare stocks have really taken a dive so far in 2016, and ABBV stock is down 4.6% in the past year.
None of the large cap healthcare stocks offer the one-two punch of value and growth that ABBV does. The stock currently trades at a forward P/E of only 10.1 compared to peers that are trading in the 12-16 range. In addition, according to Finviz, ABBV is projected to grow earnings by an average annual rate of 17.3% over the next five years. That growth and value combo gives ABBV the lowest PEG (1.1) of all the 57 large cap healthcare stocks.
Citi analysts also recognized the value opportunity in ABBV back in February when they upgraded the stock to a "Buy" on the strength of the company's drug pipeline.
As of this writing, Wayne Duggan was long HAL, SLB and BHI.
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The post The 3 Best Stocks In The 3 Worst Sectors (SLB, Citigroup, ABBV) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But when it comes to investing, sometimes the best stocks in the worst sectors, like Schlumberger ( SLB ), Citigroup ( C ) and AbbVie ( ABBV ), are excellent long-term value plays for patient investors. Citi analysts also recognized the value opportunity in ABBV back in February when they upgraded the stock to a "Buy" on the strength of the company's drug pipeline. AbbVie (ABBV) Healthcare stocks have really taken a dive so far in 2016, and ABBV stock is down 4.6% in the past year. | But when it comes to investing, sometimes the best stocks in the worst sectors, like Schlumberger ( SLB ), Citigroup ( C ) and AbbVie ( ABBV ), are excellent long-term value plays for patient investors. None of the large cap healthcare stocks offer the one-two punch of value and growth that ABBV does. AbbVie (ABBV) Healthcare stocks have really taken a dive so far in 2016, and ABBV stock is down 4.6% in the past year. | But when it comes to investing, sometimes the best stocks in the worst sectors, like Schlumberger ( SLB ), Citigroup ( C ) and AbbVie ( ABBV ), are excellent long-term value plays for patient investors. AbbVie (ABBV) Healthcare stocks have really taken a dive so far in 2016, and ABBV stock is down 4.6% in the past year. More From InvestorPlace 7 Dividend Stocks With Oodles of Room to Grow 5 Stocks to Buy for an April Money Shower 7 Dividend Stocks That Have Paid Investors Since the 19th Century The post The 3 Best Stocks In The 3 Worst Sectors (SLB, Citigroup, ABBV) appeared first on InvestorPlace . | But when it comes to investing, sometimes the best stocks in the worst sectors, like Schlumberger ( SLB ), Citigroup ( C ) and AbbVie ( ABBV ), are excellent long-term value plays for patient investors. More From InvestorPlace 7 Dividend Stocks With Oodles of Room to Grow 5 Stocks to Buy for an April Money Shower 7 Dividend Stocks That Have Paid Investors Since the 19th Century The post The 3 Best Stocks In The 3 Worst Sectors (SLB, Citigroup, ABBV) appeared first on InvestorPlace . AbbVie (ABBV) Healthcare stocks have really taken a dive so far in 2016, and ABBV stock is down 4.6% in the past year. |
26604.0 | 2016-04-21 00:00:00 UTC | The Zacks Analyst Blog Highlights: Medivation, Synta, AbbVie, Gilead and Orexigen | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-medivation-synta-abbvie-gilead-and-orexigen-2016-04-21 | nan | nan | For Immediate Release
Chicago, IL - April 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 Medivation ( MDVN ), Synta ( SNTA ), AbbVie ( ABBV ), Gilead ( GILD ) and Orexigen ( OREX ).
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
Medivation ( MDVN ) is back in the news again this week with AstraZeneca rumored to be interested in acquiring the company. Meanwhile, Synta's ( SNTA ) shares shot up on news regarding the company's merger deal with Madrigal.
Meanwhile, companies like AbbVie ( ABBV ) and Gilead ( GILD ) were present with data at The International Liver Congress.
Recap of the Week's Most Important Stories
1. Once again, acquisition rumors regarding Medivation have surfaced with British drug maker AstraZeneca rumored to be considering a bid for the San Francisco-based company. According to the SundayTimes , sources claim that AstraZeneca has held internal talks but is yet to make a formal offer. AstraZeneca has supposedly been looking at the company for the last 6 months and is contemplating a bid of £7 billion.
This is the second time this month that Medivation has been rumored to be an acquisition target. Earlier this month, it was reported that Medivation had supposedly turned down an offer from Sanofi.
With Xtandi bringing in multi-million dollar sales and being developed for additional indications, Medivation has often been considered an acquisition target.
2. Orexigen ( OREX ) terminated its recently-initiated, multi-year CONVENE cardiovascular outcomes trial (CVOT) on obesity drug, Contrave. The move comes shortly after the company acquired full U.S. rights to the drug from Takeda. This was the second CVOT for the drug with the earlier study being terminated due to the revelation of interim data from that study.
Orexigen said that it intends to make certain changes for the optimization of the Contrave / Mysimba post-marketing requirement studies and remains committed to meeting the FDA's post-marketing requirements for Contrave which include completion of a CVOT with a study report due to the FDA by Jan 2022. The company intends to finalize a revised protocol and will start a new CVOT after discussions with the FDA.
3. Synta's shares shot up with the company announcing that it will be merging with private company Madrigal. The combined company will focus on cardiovascular-metabolic diseases and non-alcoholic steatohepatitis (NASH). Earlier, Synta was focused on cancer treatments but the company suffered a setback last year when it decided to terminate a late-stage study on a key pipeline candidate (advanced non-small cell lung cancer) due to futility. Soon thereafter, the company decided to cut down its workforce.
The Madrigal merger will provide Synta with a mid-stage candidate being developed for NASH and other indications (Read more: Synta Stock Up on Merger Deal with Madrigal Pharmaceuticals ).
4. Gilead presented results from many mid-stage and late-stage studies on its experimental pan-genotypic, fixed-dose combination hepatitis C virus (HCV) treatments as well as three investigational agents for the treatment of NASH and primary sclerosing cholangitis (PSC) at The International Liver Congress. The company also presented new data on Harvoni showcasing its use in adolescents.
Meanwhile, detailed 48-week results from two large late-stage studies on once-daily tenofovir alafenamide (TAF) 25 mg for certain types of chronic hepatitis B virus (HBV) infection were also presented. TAF is currently under regulatory review in the U.S., EU and Japan with a response in the U.S. expected by Nov 11 (Read more: Gilead Presents Multiple HCV and HBV Data at Liver Congress ).
5. AbbVie was also present at the meeting with new phase II data on its investigational, once-daily, ribavirin-free, pan-genotypic regimen of ABT-493 and ABT-530 for HCV genotypes 1-6.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Medivation ( MDVN ), Synta ( SNTA ), AbbVie ( ABBV ), Gilead ( GILD ) and Orexigen ( OREX ). Meanwhile, companies like AbbVie ( ABBV ) and Gilead ( GILD ) were present with data at The International Liver Congress. AbbVie was also present at the meeting with new phase II data on its investigational, once-daily, ribavirin-free, pan-genotypic regimen of ABT-493 and ABT-530 for HCV genotypes 1-6. | Stocks recently featured in the blog include Medivation ( MDVN ), Synta ( SNTA ), AbbVie ( ABBV ), Gilead ( GILD ) and Orexigen ( OREX ). Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report SYNTA PHARMACT (SNTA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report OREXIGEN THERAP (OREX): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, companies like AbbVie ( ABBV ) and Gilead ( GILD ) were present with data at The International Liver Congress. | Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report SYNTA PHARMACT (SNTA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report OREXIGEN THERAP (OREX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Medivation ( MDVN ), Synta ( SNTA ), AbbVie ( ABBV ), Gilead ( GILD ) and Orexigen ( OREX ). Meanwhile, companies like AbbVie ( ABBV ) and Gilead ( GILD ) were present with data at The International Liver Congress. | Stocks recently featured in the blog include Medivation ( MDVN ), Synta ( SNTA ), AbbVie ( ABBV ), Gilead ( GILD ) and Orexigen ( OREX ). Meanwhile, companies like AbbVie ( ABBV ) and Gilead ( GILD ) were present with data at The International Liver Congress. AbbVie was also present at the meeting with new phase II data on its investigational, once-daily, ribavirin-free, pan-genotypic regimen of ABT-493 and ABT-530 for HCV genotypes 1-6. |
26605.0 | 2016-04-21 00:00:00 UTC | 3 Odd-Ball Dividend Stocks That Pay Through Retirement | ABBV | https://www.nasdaq.com/articles/3-odd-ball-dividend-stocks-that-pay-through-retirement-2016-04-21 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to loading your portfolio with dividend stocks for retirement, there are a lot of places you can go. However, if you want the cream of the crop, then you go to the "Dividend Aristocrats". That's because these companies have been paying, and raising, dividends for more than 25 consecutive years.
That's a tall order because it requires a company to continually generate enough cash to be able to do so. The fact that these dividend stocks managed to do so through the early 1990s recession, the 9/11 recession and the financial crisis, demonstrates their resilience.
These dividend stocks also represent the ultimate safe haven, since a company that's able to manage its capital so efficiently for so long is highly unlikely to be crippled.
Instead of offering the traditional dividend stocks for retirement, though, I'm going outside the box while still remaining on the list.
8 Bargain Dividend Stocks to Buy Now
Here are three odd-ball dividend stocks that will pay through retirement.
Odd-Ball Dividend Stocks for Retirement: Helmerick & Payne, Inc. (HP)
Dividend Yield: 4.3%
I'm a big fan of energy, but usually only the big producers. So I was shocked when I discovered Helmerick & Payne, Inc. ( HP ), an oil services play that is holding up very strongly amidst the oil price crash. I hadn't heard of Helmerick & Payne before, yet I am impressed by the fact that is still turned a $422 million profit last year and generated $285 million of free cash flow.
This is almost impossible to find with most oil services dividend stocks.
That's probably because, unlike most dividend stocks in the sector, HP also has more cash than debt - $718 million vs. $492 million. Moreover, it drew down most of that debt last year, yet only pays about 3% on it.
HP has been paying its dividend for the past 43 years, and right now, that yield is at 4.3%. I think it's a good time to get in because the stock is also 20% off its 52-week high.
Odd-Ball Dividend Stocks for Retirement: AbbVie Inc (ABBV)
Dividend Yield: 3.8%
The only reason I even know about AbbVie Inc ( ABBV ) was because it came up in conversation with a dermatologist I know. He was discussing biological treatments for psoriasis … ABBV has one of the best-selling treatments called Humira. It also develops pharmaceuticals for leukemia, hepatitis, HIV, testosterone replacement, hypthyroidism and prostate cancer.
It is always a shock to discover something like a massive pharma company I'd never heard of. I mean, this is a $99 billion company that somehow I never knew about. ABBV pays a 3.8% yield to boot.
7 Dividend Stocks With Oodles of Room to Grow
Even more amazing is that it's a growth stock with 17% earnings-per-share growth, even after all these years. It generated $7 billion in free cash flow last year and only paid about 44% in dividends. And somehow it only trades at 19 times earnings.
Odd-Ball Dividend Stocks for Retirement: Old Republic International Corporation (ORI)
Dividend Yield: 4.1%
It's difficult to hold dividend stocks for retirement without selecting an insurance company. That's because insurance, done properly, is a fantastic long-term business.
Old Republic International Corporation (ORI) has been doing it longer than almost anybody - 93 years. As long as ORI or any insurance company underwrites properly, it will collect more in premiums than it pays in claims, and over time will invest the profits. As time goes on, those profits will compound and get paid out as dividends.
As a company like ORI evolves, it also moves into more and more types of insurance products. My favorites are the ones with high margins like extended auto warranty, home warranty and travel accident insurance.
Yet, it also handles the specialty stuff like errors and omissions insurance, insurance for directors and officers, employee fidelity, guaranteed asset protection and surety bonds. In fact , they cover just about every sector where liability exists. It pays a 4.1% yield and has been delivering dividends for 34 straight years.
Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance. As of this writing, he did not hold a position in any of the aforementioned securities. He has 20 years' experience in the stock market, and has written more than 1,200 articles on investing. He also is the Manager of the forthcoming Liberty Portfolio. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com . As of this writing, he has no position in any of the aforementioned securities.
The post 3 Odd-Ball Dividend Stocks That Pay Through Retirement 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. | Odd-Ball Dividend Stocks for Retirement: AbbVie Inc (ABBV) Dividend Yield: 3.8% The only reason I even know about AbbVie Inc ( ABBV ) was because it came up in conversation with a dermatologist I know. He was discussing biological treatments for psoriasis … ABBV has one of the best-selling treatments called Humira. ABBV pays a 3.8% yield to boot. | Odd-Ball Dividend Stocks for Retirement: AbbVie Inc (ABBV) Dividend Yield: 3.8% The only reason I even know about AbbVie Inc ( ABBV ) was because it came up in conversation with a dermatologist I know. He was discussing biological treatments for psoriasis … ABBV has one of the best-selling treatments called Humira. ABBV pays a 3.8% yield to boot. | Odd-Ball Dividend Stocks for Retirement: AbbVie Inc (ABBV) Dividend Yield: 3.8% The only reason I even know about AbbVie Inc ( ABBV ) was because it came up in conversation with a dermatologist I know. He was discussing biological treatments for psoriasis … ABBV has one of the best-selling treatments called Humira. ABBV pays a 3.8% yield to boot. | Odd-Ball Dividend Stocks for Retirement: AbbVie Inc (ABBV) Dividend Yield: 3.8% The only reason I even know about AbbVie Inc ( ABBV ) was because it came up in conversation with a dermatologist I know. He was discussing biological treatments for psoriasis … ABBV has one of the best-selling treatments called Humira. ABBV pays a 3.8% yield to boot. |
26606.0 | 2016-04-21 00:00:00 UTC | Roche (RHHBY) Beats on Q1 Sales, New Launches in Focus (revised) | ABBV | https://www.nasdaq.com/articles/roche-rhhby-beats-on-q1-sales-new-launches-in-focus-revised-2016-04-21 | nan | nan | Roche Holding ( RHHBY ) reported sales of $13.7 billion (CHF12.4 billion), easily beating the Zacks Consensus Estimate of $12.9 billion.
Sales were up 5% year over year in local currency. Growth was driven primarily 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.
Results in Detail
Sales at the Pharmaceuticals division increased 4% to CHF9.8 billion driven by growth in the European region. Sales of the HER2 breast cancer franchise (+9%) were driven by strong demand for Herceptin, Perjeta and Kadcyla. Sales of Herceptin grew 4% on the back of higher demand due to a longer duration of treatment in combination with Perjeta, while the subcutaneous formulation of Herceptin is being increasingly adopted across Europe. Sales of Perjeta were strong in both Europe and the U.S.
Sales of Avastin were up 4% due to increased demand in the ovarian, colorectal, lung and cervical cancer indications, following its launch in Europe and emerging markets. Strong sales of Rituxan/MabThera (+3%) also contributed significantly to the top line.
Sales of the immunology franchise were driven by strong uptake of Esbriet, (+96%) and increased sales of Actemra/RoActemra (+14%) and Xolair (+22). The new subcutaneous formulation of Actemra, along with its use as a single agent, boosted sales. Strong demand, thanks to favorable clinical data and expanding patient access, drove Esbriet sales.
Uptake of new launches -- Cotellic in skin cancer and Alecensa in lung cancer -- were also encouraging.
However, sales of Pegasys (-50%) were hurt by competition from a new generation of treatments, while Valcyte/Cymevene (-21%) and Xeloda (-17%) faced generic competition. Sales of Tamiflu and Lucentis also declined in the U.S.
Revenues at the Diagnostics division were CHF2.6 billion, up 5% driven by solid performance of the professional diagnostics (+7%) unit, which was in turn, fueled by the immunodiagnostics business (+12%). Tissue diagnostics (+13%) and Molecular Diagnostics (+11%) also performed impressively. However, sales of diabetes care tanked 11% due to the continued spill-over of Medicare prices to commercial plans for the blood glucose monitoring portfolio in the U.S.
2016 Outlook
Roche expects sales to increase in low-to-mid single digits. The company expects core earnings to grow at a higher rate than sales. Moreover, Roche intends to increase its dividend further in 2016.
Pipeline Update
Roche's lead cancer immunotherapy drug, atezolizumab, was granted priority review by the FDA for advanced bladder cancer and non-small cell lung cancer (NSCLC). Atezolizumab is being investigated in a broad phase III clinical program in solid and hematologic cancers.
In addition, the FDA granted breakthrough therapy designation to ocrelizumab for primary progressive multiple sclerosis in Feb 2016. The company plans to file the candidate for both relapsing and primary progressive multiple sclerosis in the first half of 2016.
Roche conducted two identical phase III studies on lebrikizumab in patients with severe asthma. In Mar 2016, the company announced that one study met its primary clinical endpoint, while the second failed to achieve statistical significance. Hence, Roche is currently evaluating its future course of action for the asthma program.
Last week, Roche, along with its partner AbbVie Inc. ( ABBV ), announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion.
In Feb 2016, the FDA approved Gazyva for the treatment of relapsed or rituximabrefractory follicular lymphoma, the most common type of indolent non-Hodgkin lymphoma (NHL). Roche expects an approval in Europe later this year. We note that Gazyva is being evaluated in a large clinical program in NHL. Data from the phase III studies in diffuse large B cell lymphoma is expected later in 2016.
Our Take
Roche currently carries a Zacks Rank #3 (Hold). Sales in the first quarter were better than expected driven by broad based demand. New drug approvals such as those of Cotellic and Alecensa, also boosted sales. Oncology drugs were impacted by buying patterns in the U.S., which, however, will ease out as the year progresses. Tamiflu was impacted by a weak flu season.
Headwinds in the form of currency volatility, along with 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.
Nevertheless, we are impressed by the company's efforts to grow its portfolio beyond oncology and foray into new avenues such as multiple sclerosis and asthma.
Investors interested in the health care sector may consider Novo Nordisk A/S ( NVO ) and Johnson & Johnson ( JNJ ). Both stocks carry a Zacks Rank #2 (Buy).
(We are reissuing this article to correct a mistake. The original article, issued yesterday, April 20, 2016, should no longer be relied upon.)
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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. | Last week, Roche, along with its partner AbbVie Inc. ( ABBV ), announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. Sales of Avastin were up 4% due to increased demand in the ovarian, colorectal, lung and cervical cancer indications, following its launch in Europe and emerging markets. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. Last week, Roche, along with its partner AbbVie Inc. ( ABBV ), announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. Roche Holding ( RHHBY ) reported sales of $13.7 billion (CHF12.4 billion), easily beating the Zacks Consensus Estimate of $12.9 billion. | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. Last week, Roche, along with its partner AbbVie Inc. ( ABBV ), announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. Sales of the immunology franchise were driven by strong uptake of Esbriet, (+96%) and increased sales of Actemra/RoActemra (+14%) and Xolair (+22). | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. Last week, Roche, along with its partner AbbVie Inc. ( ABBV ), announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. Roche expects an approval in Europe later this year. |
26607.0 | 2016-04-18 00:00:00 UTC | ITOT, SLB, ABBV, CELG: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/itot-slb-abbv-celg-large-inflows-detected-etf-2016-04-18 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $51.9 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 39,650,000 to 40,200,000). Among the largest underlying components of ITOT, in trading today Schlumberger Ltd. (Symbol: SLB) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is up about 0.4%, and Celgene Corp. (Symbol: CELG) is higher by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.87 as the 52 week high point - that compares with a last trade of $94.68. 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 Schlumberger Ltd. (Symbol: SLB) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is up about 0.4%, and Celgene Corp. (Symbol: CELG) is higher by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.87 as the 52 week high point - that compares with a last trade of $94.68. 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 Schlumberger Ltd. (Symbol: SLB) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is up about 0.4%, and Celgene Corp. (Symbol: CELG) is higher by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $76.41 per share, with $97.87 as the 52 week high point - that compares with a last trade of $94.68. 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 Schlumberger Ltd. (Symbol: SLB) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is up about 0.4%, and Celgene Corp. (Symbol: CELG) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $51.9 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 39,650,000 to 40,200,000). 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 $97.87 as the 52 week high point - that compares with a last trade of $94.68. | Among the largest underlying components of ITOT, in trading today Schlumberger Ltd. (Symbol: SLB) is up about 0.3%, AbbVie Inc. (Symbol: ABBV) is up about 0.4%, and Celgene Corp. (Symbol: CELG) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $51.9 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 39,650,000 to 40,200,000). 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 $97.87 as the 52 week high point - that compares with a last trade of $94.68. |
26608.0 | 2016-04-18 00:00:00 UTC | Trade of the Day: Halozyme Therapeutics, Inc. (NASDAQ:HALO) | ABBV | https://www.nasdaq.com/articles/trade-of-the-day%3A-halozyme-therapeutics-inc.-nasdaq%3Ahalo-2016-04-18 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
To receive further updates on this Halozyme Therapeutics, Inc. (NASDAQ: HALO ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Momentum Options today.
Halozyme Therapeutics (HALO) has both a compelling technical picture and a fundamental profile. Looking at the chart, HALO saw shares gap below major support at $14 at the start the year. This level served as prior support since late October of 2015, and the freefall to $7 was due to lowered revenue guidance from the company.
However, HALO traded to a high of $12.05 on Friday. Continued closes above $12 would be bullish for a run at $12.50-$13 over the near term. Rising support is at $11.75-$11.50 and the 100-day moving average.
The fundamental picture is interesting, as the company is now expected to lose $1 a share for 2016. There are nine analysts that cover HALO, and their estimates range from a loss of $0.65 to a loss of $1.14 a share for the year. However, I'm not sure if these analysts have updated their homework.
The short story on Halozyme Therapeutics is that it has two promising drugs. One is focused on breast cancer, with Phase 1 trials possibly beginning this year or next. Halozyme's second drug targets pancreatic cancer, and it is currently in a Phase 3 trial.
In mid-January, Halozyme Therapeutics said that revenues for 2016 would likely come in between $110-$125 million. Estimates by the suits-and-ties had revenue topping $130 million. This was the main reason that major support at $14 cracked, and shares folded like a cheap lawn chair to below $7 by early February. I have waited patiently for three months for a recovery in HALO, and it finally looks like one has materialized.
The reason I'm questioning the estimates from the slick-talking pros is that Halozyme actually reported a better-than-expected quarter in late February. It announced a profit of $0.03 a share versus estimates for a loss of $0.08. Revenue also came in north of $52 million. The forecast had called for revenue of $42 million, which underestimated the quarterly numbers by 25%.
The important point I want to make, which I'm not sure the analysts noticed in the fine print, is that the company's revenue forecast excluded payments from any global collaboration and licensing agreements that might be signed this year.
In 2015, Halozyme recorded $48 million in upfront payments from its partnerships that were not included in the 2015 guidance issued at the beginning of last year. The company currently has an agreement with AbbVie Inc (NYSE: ABBV ) and another with Eli Lilly and Co (NYSE: LLY ), which was inked in December.
The current market cap for Halozyme is at $1.5 billion, which makes it ripe as a takeover target. A 50% premium to the current price would equate to a $2.25 billion market cap and a value for the stock of $17-$18. Of course, this is speculation on my part, but bigger companies usually like buying smaller companies with rising revenue and cutting-edge technology.
The one thing I do appreciate from Wall Street analysts are their price targets. Let's start with the most recent ones I could find and work backwards.
On Feb. 1, one brokerage firm initiated coverage of the stock with a "Buy" rating and $10 price target. Shares were north of $8 at the time. This was a nice, conservative call for a 25% return on the stock when it was near its lows. This has clearly been exceeded, but the analyst has not issued an update that I'm aware of.
In late January, with shares north of $9, UBS lowered its price target on HALO from $28 to $22, but it kept its "Buy" rating in place. At the time, UBS issued the price downgrade due to weakness in the biotech sector. With shares sinking south of $7, this was a good call by UBS, but there has been no follow-up despite the tremendous rebound in the stock.
In early December of 2015, Wells Fargo started coverage of HALO with an "Outperform" rating and a price target range of $30-$34.
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In November of 2015, with HALO just under $16, an analyst from Citi issued coverage of the stock with a "Buy" rating and a $25 price target.
And, finally, in late September of 2015, Barclay's was bullish on HALO with an "Overweight" rating and a price target of $27. Shares were above $18 at the time.
Needless to say, after spending many long hours doing both the fundamental and technical analysis on HALO, I have high hopes for the stock and an options trade on it.
Buy to open the HALO May 13 calls (HALO160520C00013000) at current levels .
My exit target for the HALO calls is in the $1.20-$1.80 range. I have a Stop Limit to exit if the calls trade down to $0.65.
To receive further instructions on this trade, please sign-up for a risk-free, 60-day trial of Momentum Options and take advantage of50% off the introductory rate for the next three days only.
The post Trade of the Day: Halozyme Therapeutics, Inc. (NASDAQ:HALO) 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 currently has an agreement with AbbVie Inc (NYSE: ABBV ) and another with Eli Lilly and Co (NYSE: LLY ), which was inked in December. The important point I want to make, which I'm not sure the analysts noticed in the fine print, is that the company's revenue forecast excluded payments from any global collaboration and licensing agreements that might be signed this year. Needless to say, after spending many long hours doing both the fundamental and technical analysis on HALO, I have high hopes for the stock and an options trade on it. | The company currently has an agreement with AbbVie Inc (NYSE: ABBV ) and another with Eli Lilly and Co (NYSE: LLY ), which was inked in December. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this Halozyme Therapeutics, Inc. (NASDAQ: HALO ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Momentum Options today. In late January, with shares north of $9, UBS lowered its price target on HALO from $28 to $22, but it kept its "Buy" rating in place. | The company currently has an agreement with AbbVie Inc (NYSE: ABBV ) and another with Eli Lilly and Co (NYSE: LLY ), which was inked in December. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this Halozyme Therapeutics, Inc. (NASDAQ: HALO ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Momentum Options today. In late January, with shares north of $9, UBS lowered its price target on HALO from $28 to $22, but it kept its "Buy" rating in place. | The company currently has an agreement with AbbVie Inc (NYSE: ABBV ) and another with Eli Lilly and Co (NYSE: LLY ), which was inked in December. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips To receive further updates on this Halozyme Therapeutics, Inc. (NASDAQ: HALO ) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Momentum Options today. Looking at the chart, HALO saw shares gap below major support at $14 at the start the year. |
26609.0 | 2016-04-17 00:00:00 UTC | 4 Healthcare Stocks That Are Looking Cheap | ABBV | https://www.nasdaq.com/articles/4-healthcare-stocks-are-looking-cheap-2016-04-17 | nan | nan | After an indiscriminate beating of drug and device makers to begin the year, there are quite a few healthcare stocks on sale. I've pulled out a couple smaller companies poised for explosive growth, and a couple underappreciated big pharmas that have somehow flown under the radar.
Tiny heart pump maker Abiomed recently tapped into a enormous U.S. market unopposed. A recent upset from clinical stage biotech Celldex has its shares trading lower than I think they should be.
If it's big drugmakers you want, it appears major developments at AbbVie and Roche have also gone unnoticed.
AbbVie: Offsetting Humira
Clearly the biggest weight holding back AbbVie stock is fear of incoming biosimilar competition for megablockbuster Humira. I'm inclined to interpret the U.S. Patent and Trademark Office's refusal to even review some Humira patents that Amgen contends are invalid as reason to expect the $8.4 billion in U.S. annual sales AbbVie enjoyed last year will continue for several more at least.
On the plus side, recently acquired Imbruvica became the first FDA-approved, chemo-free, first-line treatment option for patients with the most common form of leukemia. This and previous indications could help Imbruvica contribute $6 billion in annual revenue for AbbVie, up from the $659 million it recorded last year.
At 18-times trailing earnings, AbbVie isn't "cheap" by this standard measure. Rather, this is a stock for investors looking for growth at a reasonable price as measured by an extremely low forward PEG ratio.
Roche: Outclassing the competition
Another recent approval that should lead to significant growth for AbbVie brings us to our next Big Pharma player, Roche. The two have partnered on recently approved first-in-class BCL-2 blocker Venclexta.
Aimed at difficult to treat leukemia patients -- with further label expansions possible -- its unique mechanism could provide an important treatment option that could net the partners $2 billion in peak sales.
Although a bit more expensive than AbbVie on a PEG ratio basis, Roche's rock solid product line is on more stable ground. That said, I feel it's about to launch upwards when and if Ocrevus, formerly ocrelizumab, reshapes the multiple sclerosis space. Another first-in-class candidate, Roche will be presenting phase 3 Ocrevus data at the American Academy of Neurology April 17 through 21, that Biogen investors will want to watch.
It's early, but it seems Ocrevus may have Biogen's blockbuster multiple sclerosis treatment Tecfidera beat in terms of both safety and efficacy. If approved, sales could move the needle significantly for the Swiss pharma giant.
Celldex: Failure or opportunity?
Recently, shares of Celldex Therapeutics crashed when its lead candidate failed to prolong survival in patients with a deadly brain cancer. Rintega did prolong survival far beyond the historical figures for patients on the standard chemotherapy, but the placebo group in this trial survived even longer.
In the wake the Rintega's failure, it seems the market has overlooked the company's pipeline and balance sheet. Targeted cancer therapy CDX-011 is in a 300-patient phase 2 trial designed to support an FDA application for conditional approval in advanced triple negative breast cancer. Top-line results, expected in November, will allow us to better estimate its chances.
As for the company's balance sheet, it ended 2015 with almost $290 million in cash and marketable securities. At recent prices, that means more than 60% of the company's market cap is basically cash.
If the CDX-011 trial results prove positive, the market might wake up and realize Rintega wasn't the company's only asset. There are four other wholly owned clinical-stage candidates in the Celldex pipeline probably worth far more than the recent stock price suggests.
Abiomed: Big cash flows from tiny pumps
This brings us to Abiomed's volatile stock . Abiomed makes tiny heart pumps that recently became the only FDA approved devices of their nature able to treat the roughly 100,000 Americans that suffer low blood flow following a heart attack or surgery. This is in addition to last year's approval for use during procedures such as angioplasty.
Abiomed's Impella pumps are injected into a major artery in the leg or chest then slide into the heart. The pump actually remains in the aorta -- the huge artery that leads to the rest of the body -- with an inlet valve inside the heart. They have been used "off-label" in post-heart attack patients for years, but Abiomed was officially unable to market them for the indication.
Possible competition from St. Jude Medical could be on the way for use during angioplasty procedures, but for now it seems Abiomed has the post heart attack space all to itself. The company's shares are trading at about 34 times trailing earnings, but I still consider it somewhat cheap given its chance to dominate this space.
Something for everyone
The past year has been rough on the healthcare sector as a whole, and drug and device makers have been hit particularly hard. But, I'd venture to say the worst is over.
Although many companies have recovered, there are still bargains out there to suit almost any investing style. From big pharma, to clinical stage biotechs, to tiny heart pump makers -- bargains abound.
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The article 4 Healthcare Stocks That Are Looking Cheap originally appeared on Fool.com.
Cory Renauer has no position in any stocks mentioned. The Motley Fool recommends Biogen and Celldex Therapeutics. 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. | If it's big drugmakers you want, it appears major developments at AbbVie and Roche have also gone unnoticed. AbbVie: Offsetting Humira Clearly the biggest weight holding back AbbVie stock is fear of incoming biosimilar competition for megablockbuster Humira. I'm inclined to interpret the U.S. Patent and Trademark Office's refusal to even review some Humira patents that Amgen contends are invalid as reason to expect the $8.4 billion in U.S. annual sales AbbVie enjoyed last year will continue for several more at least. | If it's big drugmakers you want, it appears major developments at AbbVie and Roche have also gone unnoticed. AbbVie: Offsetting Humira Clearly the biggest weight holding back AbbVie stock is fear of incoming biosimilar competition for megablockbuster Humira. I'm inclined to interpret the U.S. Patent and Trademark Office's refusal to even review some Humira patents that Amgen contends are invalid as reason to expect the $8.4 billion in U.S. annual sales AbbVie enjoyed last year will continue for several more at least. | Roche: Outclassing the competition Another recent approval that should lead to significant growth for AbbVie brings us to our next Big Pharma player, Roche. If it's big drugmakers you want, it appears major developments at AbbVie and Roche have also gone unnoticed. AbbVie: Offsetting Humira Clearly the biggest weight holding back AbbVie stock is fear of incoming biosimilar competition for megablockbuster Humira. | Roche: Outclassing the competition Another recent approval that should lead to significant growth for AbbVie brings us to our next Big Pharma player, Roche. If it's big drugmakers you want, it appears major developments at AbbVie and Roche have also gone unnoticed. AbbVie: Offsetting Humira Clearly the biggest weight holding back AbbVie stock is fear of incoming biosimilar competition for megablockbuster Humira. |
26610.0 | 2016-04-15 00:00:00 UTC | Will J&J (JNJ) Pull a Surprise Again in Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/will-jj-jnj-pull-surprise-again-q1-earnings-2016-04-15 | nan | nan | Johnson & JohnsonJNJ , a bellwether in the health care sector, will be reporting results on Apr 19, before the opening bell.
J&J's track record has been pretty good with the company beating earnings estimates throughout 2015. The average earnings surprise over the last four quarters is 1.84%.
Let's have a look at how things are shaping up for the first quarter of the year.
Factors at Play
While unfavorable currency movement, which impacted fourth quarter sales by 6.8%, will impact first quarter results as well, products like Stelara, Imbruvica, Xarelto and Invega Sustenna, which are a part of J&J's Pharma segment, should continue performing well. Imbruvica's label was expanded in early March for the first-line treatment of patients suffering from chronic lymphocytic leukemia. This has expanded the patient population significantly.
Meanwhile, robust market growth and increased penetration with the psoriatic arthritis indication should boost Stelara sales. Concerta should also continue to benefit from the reclassification of generic competitor products in the U.S. Investors will also be focused on the performance of the company's new cancer treatment, Darzalex, which was approved in Nov 2015. On its fourth quarter call, J&J had reported that the product is off to a good start, with strong underlying market demand.
However, Olysio sales will keep declining due to additional competition while Invega will be impacted by generic competition. Moreover, sales of the company's SGLT2 inhibitor, Invokana/Invokamet, could be affected by the addition of warnings regarding the increased risk of bone fractures.
In addition to this, investors will be interested in knowing whether the company is losing any share to Boehringer Ingelheim/Eli Lilly and Company's LLY SGLT2 inhibitor, Jardiance, considering the favorable long-term cardiovascular (CV) outcomes data on Jardiance.
Zytiga is also facing increased competition while Remicade is being affected by biosimilar competition in Europe. A biosimilar version of Remicade was also approved in the U.S. in April.
Overall, the Pharma segment should continue growing this year albeit at a slower pace compared to 2015 as many of the products are beginning to mature in their growth trajectory. However, longer-term, Johnson and Johnson should benefit from new product launches - the company is targeting 10 new molecular entity (NME) filings by 2019, each of which have blockbuster potential.
The Medical Device business has also been under pressure with several markets in this segment facing challenges in the form of austerity measures, pricing pressure and a slowdown in elective surgeries, which have all contributed to more tempered growth rates. Softglobal marketconditions and pricing challenges will continue impacting the performance of this business.
In fact, earlier this year, J&J had announced restructuring actions for this segment which will see the company cutting approximately 3,000 jobs. The company has also been pretty active in divesting lower growth assets in this segment.
Meanwhile, the consumer business which is slowly recovering from the impact of the manufacturing issues that had affected this segment, is experiencing market pressure in China where volumes have slowed due to lower demand resulting from shift in consumer behavior and the emergence of new retail channels in the country.
The company's M&A strategy will be a key focus area on the first quarter call. J&J's share buyback program (worth up to $10 billion) should also boost the bottom-line.
What Our Model Indicates
Our proven model does not conclusively show that J&J is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat earnings. That is not the case here as you will see below.
Negative Zacks ESP : The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.83%.
Zacks Rank : J&J carries a Zacks Rank #2. J&J's Zacks Rank #2 when combined with an ESP of -1.83% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
AbbVie Inc. ABBV has an Earnings ESP of +0.88% and carries a Zacks Rank #3. It will be reporting results on Apr 28.
The Earnings ESP for Sanofi SNY is +9.86% and it carries a Zacks Rank #2. The company is scheduled to release results on Apr 29.
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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 +0.88% and carries a Zacks Rank #3. Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Imbruvica's label was expanded in early March for the first-line treatment of patients suffering from chronic lymphocytic leukemia. | Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.88% and carries a Zacks Rank #3. Factors at Play While unfavorable currency movement, which impacted fourth quarter sales by 6.8%, will impact first quarter results as well, products like Stelara, Imbruvica, Xarelto and Invega Sustenna, which are a part of J&J's Pharma segment, should continue performing well. | Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.88% and carries a Zacks Rank #3. Factors at Play While unfavorable currency movement, which impacted fourth quarter sales by 6.8%, will impact first quarter results as well, products like Stelara, Imbruvica, Xarelto and Invega Sustenna, which are a part of J&J's Pharma segment, should continue performing well. | AbbVie Inc. ABBV has an Earnings ESP of +0.88% and carries a Zacks Rank #3. Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Concerta should also continue to benefit from the reclassification of generic competitor products in the U.S. Investors will also be focused on the performance of the company's new cancer treatment, Darzalex, which was approved in Nov 2015. |
26611.0 | 2016-04-15 00:00:00 UTC | UnitedHealth (UNH) May Beat Q1 Earnings: Will Stock Gain? | ABBV | https://www.nasdaq.com/articles/unitedhealth-unh-may-beat-q1-earnings%3A-will-stock-gain-2016-04-15 | nan | nan | We expect UnitedHealth Group Inc.UNH to beat expectations when it reports first-quarter results on Apr 19, before market opens.
Why a Likely Positive Surprise?
Our proven model shows that UnitedHealth has the right combination of the two key ingredients to beat earnings estimates.
Zacks ESP:Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.58%. This is because the Most Accurate estimate of $1.73 is pegged higher than the Zacks Consensus Estimate of $1.72. The positive ESP is a meaningful indicator of a likely positive earnings surprise.
Zacks Rank: UnitedHealth carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank of #1, 2 or 3 have a significantly higher chance of beating on earnings.
The Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earnings?
With a leading market presence across all private health insurance segments of North America and South America, UnitedHealth is poised to deliver better numbers in the to-be-reported quarter. Also, Medicare Advantage remains well positioned to increase the membership base to about 0.3 million and is on track to achieve 0.325-0.400 million members in net growth for 2016.
Also, the strong performing Optum segment is likely to have driven the first-quarter top line and margin, supported by Medicaid and the International segment. The company's well diversified portfolio continues to add to the upside.
The positive trend is seen in the trailing four-quarter average surprise of +4.26%.
However, the insurer is expected to have incurred losses from individual insurance business offered via public exchanges created under the Health Care Reform Act. For 2016, the insurer expects as much as $500 million in losses on the Obamacare plans.
Other Stocks to Consider
Here are three other stocks from the medical sector which you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter:
AbbVie Inc. ABBV with an Earnings ESP of +0.88% and a Zacks Rank #3. The company will release first-quarter earnings results on Apr 28.
DaVita HealthCare Partners Inc. DVA with an Earnings ESP of +5.75% and a Zacks Rank #3 (Hold). The company is expected to release first-quarter earnings results on May 2.
Humana Inc. HUM with an Earnings ESP of 0.55% and a Zacks Rank #3. The company is expected to release 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. | Other Stocks to Consider Here are three other stocks from the medical sector which you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV with an Earnings ESP of +0.88% and a Zacks Rank #3. Click to get this free report HUMANA INC NEW (HUM): Free Stock Analysis Report UNITEDHEALTH GP (UNH): Free Stock Analysis Report DAVITA HEALTHCR (DVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that UnitedHealth has the right combination of the two key ingredients to beat earnings estimates. | Click to get this free report HUMANA INC NEW (HUM): Free Stock Analysis Report UNITEDHEALTH GP (UNH): Free Stock Analysis Report DAVITA HEALTHCR (DVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Here are three other stocks from the medical sector which you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV with an Earnings ESP of +0.88% and a Zacks Rank #3. We expect UnitedHealth Group Inc.UNH to beat expectations when it reports first-quarter results on Apr 19, before market opens. | Other Stocks to Consider Here are three other stocks from the medical sector which you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV with an Earnings ESP of +0.88% and a Zacks Rank #3. Click to get this free report HUMANA INC NEW (HUM): Free Stock Analysis Report UNITEDHEALTH GP (UNH): Free Stock Analysis Report DAVITA HEALTHCR (DVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP:Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.58%. | Other Stocks to Consider Here are three other stocks from the medical sector which you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter: AbbVie Inc. ABBV with an Earnings ESP of +0.88% and a Zacks Rank #3. Click to get this free report HUMANA INC NEW (HUM): Free Stock Analysis Report UNITEDHEALTH GP (UNH): Free Stock Analysis Report DAVITA HEALTHCR (DVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The positive ESP is a meaningful indicator of a likely positive earnings surprise. |
26612.0 | 2016-04-14 00:00:00 UTC | AbbVie Reveals Positive Data on Combination HCV Therapy | ABBV | https://www.nasdaq.com/articles/abbvie-reveals-positive-data-on-combination-hcv-therapy-2016-04-14 | nan | nan | AbbVie Inc.ABBV announced data from a post-hoc analysis of five phase III trials - PEARL-IV, SAPPHIRE-II, TURQUOISE-II, PEARL-II and TURQUOISE-III.
Data from the trials showed that the patients with genotype 1 (GT1) chronic hepatitis C virus (HCV) infection, who received the recommended regimen of Viekirax (ombitasvir/paritaprevir/ritonavir tablets) + Exviera (dasabuvir tablets), with or without ribavirin, achieved high sustained virologic response rates after 48 weeks of post-treatment irrespective of the presence of baseline resistance-associated variants (RAVs).
Results also showed that 97% of patients with GT1a chronic HCV infection, with or without baseline NS5A RAVs, achieved SVR at 48 weeks when receiving the recommended regimen with ribavirin.
AbbVie's leading HCV treatment - Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin - was approved by the FDA in Dec 2014. In Jan 2015, the Viekirax+Exviera combination was approved in Europe for the treatment of genotype 1 (GT1) chronic HCV infection, Viekirax is also approved in Europe for the treatment of chronic HCV genotype 4 (GT4) infection.
The FDA also approved Technivie (ombitasvir, paritaprevir and ritonavir) for use in combination with ribavirin in Jul 2015 for the treatment of adults with HCV GT4 infection.
Meanwhile, pricing pressure in the HCV market remains a significant matter of concern. We note that Gilead Sciences, Inc. GILD , the lead player in the HCV market, has signed up with several pharmacy benefit managers. Viekira Pak faces stiff competition from Gilead's Sovaldi and Harvoni. Further, the addition of warnings to the labels of Viekira Pak and Technivie could hurt AbbVie's sales.
AbbVie currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Novo Nordisk A/S NVO and Eli Lilly and Company LLY . 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. | AbbVie's leading HCV treatment - Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin - was approved by the FDA in Dec 2014. AbbVie Inc.ABBV announced data from a post-hoc analysis of five phase III trials - PEARL-IV, SAPPHIRE-II, TURQUOISE-II, PEARL-II and TURQUOISE-III. Further, the addition of warnings to the labels of Viekira Pak and Technivie could hurt AbbVie's sales. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. AbbVie Inc.ABBV announced data from a post-hoc analysis of five phase III trials - PEARL-IV, SAPPHIRE-II, TURQUOISE-II, PEARL-II and TURQUOISE-III. AbbVie's leading HCV treatment - Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin - was approved by the FDA in Dec 2014. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. AbbVie Inc.ABBV announced data from a post-hoc analysis of five phase III trials - PEARL-IV, SAPPHIRE-II, TURQUOISE-II, PEARL-II and TURQUOISE-III. AbbVie's leading HCV treatment - Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin - was approved by the FDA in Dec 2014. | AbbVie's leading HCV treatment - Viekira Pak, an all-oral, short-course, interferon-free therapy, with or without ribavirin - was approved by the FDA in Dec 2014. Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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. AbbVie Inc.ABBV announced data from a post-hoc analysis of five phase III trials - PEARL-IV, SAPPHIRE-II, TURQUOISE-II, PEARL-II and TURQUOISE-III. |
26613.0 | 2016-04-14 00:00:00 UTC | The Zacks Analyst Blog Highlights: Intercept, Clovis, AbbVie, Relypsa and Horizon Pharma | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-intercept-clovis-abbvie-relypsa-and-horizon-pharma-2016 | nan | nan | For Immediate Release
Chicago, IL - April 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 Intercept ( ICPT ), Clovis ( CLVS ), AbbVie ( ABBV ), Relypsa ( RLYP ) and Horizon Pharma ( HZNP ).
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
Key highlights in the biotech sector this week include a couple of FDA advisory panel meetings -- while Intercept ( ICPT ) got a favorable recommendation, Clovis ( CLVS ) did not fare so well and may be looking at a significant delay in the potential approval of its product.
Meanwhile, AbbVie ( ABBV ) and partner Roche gained accelerated approval for their leukemia treatment. And this week's rumored takeover target is Relypsa ( RLYP ).
Recap of the Week's Most Important Stories
1. Clovis suffered a huge setback with the company facing a possible delay in the FDA approval of its lead pipeline candidate, rociletinib. The agency's advisory panel has recommended that the FDA should wait for results from an ongoing late-stage study (TIGER-3) before deciding on the approval status of the experimental lung cancer treatment.
Clovis, which touched a 52-week low earlier this week on the release of unfavorable briefing documents (Read more: Clovis Hits 52-week Low Post Rociletinib Briefing Documents ), expects patient enrollment in the TIGER-3 study to complete in late 2018. While the FDA is not required to follow the advice of its advisory panels, it usually does so. At present, it does not look likely that the FDA will grant approval on the PDUFA date of Jun 28.
2. Intercept, on the other hand, got a favorable recommendation from an FDA advisory panel which voted unanimously (17-0) in favor of granting accelerated approval to the company's lead pipeline candidate, Ocaliva, for the treatment of a rare chronic liver disease, primary biliary cholangitis (PBC). With the panel voting in its favor, approval should come by May 29(Read more: Intercept's Ocaliva Gets Favorable FDA Panel Vote ).
3. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. Approved for a type of blood cancer in patients with a specific chromosomal abnormality, Venclexta was found to provide 80% overall response rate in a mid-stage study (Read more: Roche/AbbVie's Lymphocytic Leukemia Drug Gets FDA Nod ).
4. This week's rumored buyout target is Relypsa. The company's shares shot up 67% on a Reuters article saying that Relypsa is exploring the possibility of a potential sale following interest from prospective buyers (Read more: Relypsa Soars 67% in Thursday Trading on Buyout Rumors ).
5. Horizon Pharma's ( HZNP ) shares crashed with the company's detailed guidance for the first two quarters of the year falling short of expectations. With the company expecting a major part of its sales and EBITDA to come in the second half of the year, investors are concerned about the company's ability to meet targets (Read more: Why is Horizon Pharma Crashing Today? ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include Intercept ( ICPT ), Clovis ( CLVS ), AbbVie ( ABBV ), Relypsa ( RLYP ) and Horizon Pharma ( HZNP ). Approved for a type of blood cancer in patients with a specific chromosomal abnormality, Venclexta was found to provide 80% overall response rate in a mid-stage study (Read more: Roche/AbbVie's Lymphocytic Leukemia Drug Gets FDA Nod ). Meanwhile, AbbVie ( ABBV ) and partner Roche gained accelerated approval for their leukemia treatment. | Stocks recently featured in the blog include Intercept ( ICPT ), Clovis ( CLVS ), AbbVie ( ABBV ), Relypsa ( RLYP ) and Horizon Pharma ( HZNP ). Click to get this free report INTERCEPT PHARM (ICPT): Free Stock Analysis Report CLOVIS ONCOLOGY (CLVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report RELYPSA INC (RLYP): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ( ABBV ) and partner Roche gained accelerated approval for their leukemia treatment. | Click to get this free report INTERCEPT PHARM (ICPT): Free Stock Analysis Report CLOVIS ONCOLOGY (CLVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report RELYPSA INC (RLYP): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Intercept ( ICPT ), Clovis ( CLVS ), AbbVie ( ABBV ), Relypsa ( RLYP ) and Horizon Pharma ( HZNP ). Meanwhile, AbbVie ( ABBV ) and partner Roche gained accelerated approval for their leukemia treatment. | Stocks recently featured in the blog include Intercept ( ICPT ), Clovis ( CLVS ), AbbVie ( ABBV ), Relypsa ( RLYP ) and Horizon Pharma ( HZNP ). Meanwhile, AbbVie ( ABBV ) and partner Roche gained accelerated approval for their leukemia treatment. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. |
26614.0 | 2016-04-13 00:00:00 UTC | Biotech Stock Roundup: FDA Advisory Panels Say Yes to Intercept, No to Clovis | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-fda-advisory-panels-say-yes-intercept-no-clovis-2016-04-13 | nan | nan | Key highlights in the biotech sector this week include a couple of FDA advisory panel meetings -- while Intercept ICPT got a favorable recommendation, Clovis CLVS did not fare so well and may be looking at a significant delay in the potential approval of its product.
Meanwhile, AbbVie ABBV and partner Roche gained accelerated approval for their leukemia treatment. And this week's rumored takeover target is Relypsa RLYP .
Recap of the Week's Most Important Stories
1. Clovis suffered a huge setback with the company facing a possible delay in the FDA approval of its lead pipeline candidate, rociletinib. The agency's advisory panel has recommended that the FDA should wait for results from an ongoing late-stage study (TIGER-3) before deciding on the approval status of the experimental lung cancer treatment.
Clovis, which touched a 52-week low earlier this week on the release of unfavorable briefing documents (Read more: Clovis Hits 52-week Low Post Rociletinib Briefing Documents ), expects patient enrollment in the TIGER-3 study to complete in late 2018. While the FDA is not required to follow the advice of its advisory panels, it usually does so. At present, it does not look likely that the FDA will grant approval on the PDUFA date of Jun 28.
2. Intercept, on the other hand, got a favorable recommendation from an FDA advisory panel which voted unanimously (17-0) in favor of granting accelerated approval to the company's lead pipeline candidate, Ocaliva, for the treatment of a rare chronic liver disease, primary biliary cholangitis (PBC). With the panel voting in its favor, approval should come by May 29 (Read more: Intercept's Ocaliva Gets Favorable FDA Panel Vote ).
3. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. Approved for a type of blood cancer in patients with a specific chromosomal abnormality, Venclexta was found to provide 80% overall response rate in a mid-stage study (Read more: Roche/AbbVie's Lymphocytic Leukemia Drug Gets FDA Nod ).
4. This week's rumored buyout target is Relypsa. The company's shares shot up 67% on a Reuters article saying that Relypsa is exploring the possibility of a potential sale following interest from prospective buyers (Read more: Relypsa Soars 67% in Thursday Trading on Buyout Rumors ).
5. Horizon Pharma's HZNP shares crashed with the company's detailed guidance for the first two quarters of the year falling short of expectations. With the company expecting a major part of its sales and EBITDA to come in the second half of the year, investors are concerned about the company's ability to meet targets (Read more: Why is Horizon Pharma Crashing Today? ).
Performance
Alexion ALXN gained (3.73%) the most last week among major biotech stocks, while Vertex declined slightly (0.94%). Meanwhile, Vertex VRTX lost 26.38% over the last six months with Amgen recording a gain (4.89%) during this period.
The NASDAQ Biotechnology Index was up 2.31% over the last five trading days (See the last biotech stock roundup here: Gilead's HIV Drug Approved, Regeneron Up on Positive Data ).
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. | Approved for a type of blood cancer in patients with a specific chromosomal abnormality, Venclexta was found to provide 80% overall response rate in a mid-stage study (Read more: Roche/AbbVie's Lymphocytic Leukemia Drug Gets FDA Nod ). Meanwhile, AbbVie ABBV and partner Roche gained accelerated approval for their leukemia treatment. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. | Click to get this free report ALEXION PHARMA (ALXN): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report CLOVIS ONCOLOGY (CLVS): Free Stock Analysis Report RELYPSA INC (RLYP): Free Stock Analysis Report INTERCEPT PHARM (ICPT): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ABBV and partner Roche gained accelerated approval for their leukemia treatment. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. | Click to get this free report ALEXION PHARMA (ALXN): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report CLOVIS ONCOLOGY (CLVS): Free Stock Analysis Report RELYPSA INC (RLYP): Free Stock Analysis Report INTERCEPT PHARM (ICPT): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ABBV and partner Roche gained accelerated approval for their leukemia treatment. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. | Meanwhile, AbbVie ABBV and partner Roche gained accelerated approval for their leukemia treatment. AbbVie and Roche got accelerated approval for their breakthrough therapy cancer drug, Venclexta. Approved for a type of blood cancer in patients with a specific chromosomal abnormality, Venclexta was found to provide 80% overall response rate in a mid-stage study (Read more: Roche/AbbVie's Lymphocytic Leukemia Drug Gets FDA Nod ). |
26615.0 | 2016-04-13 00:00:00 UTC | AbbVie's Venclexta Notches FDA Win, But Investors Might Want To Temper Enthusiasm | ABBV | https://www.nasdaq.com/articles/abbvies-venclexta-notches-fda-win-investors-might-want-temper-enthusiasm-2016-04-13 | nan | nan | SOURCE: ABBVIE, INC
AbbVie Inc . made a big splash entering the blood cancer treatment market with its $21 billion deal to buy Pharmacyclics last year. The move single-handedly landed AbbVie one of the fastest growing cancer drugs on the planet and it signaled AbbVie's commitment to expand beyond its top-selling Humira to become a global oncology market leader.
This week, a FDA approval of AbbVie's Venclexta in some patients with relapsing chronic lymphocytic leukemia puts the company a step closer to its goal, but a drug on the horizon with ties to AstraZeneca plc may eventually temper demand for Venclexta, and for that reason, investors may want to keep their peak sales estimates for Venclexta in check.
Winning share
Buying Pharmacyclics landed AbbVie 50% of the rights to Imbruvica, a BTK-inhibiting therapy that is approved for use in chronic lymphocytic leukemia (CLL), mantle cell lymphoma, and Waldenstrom's macroglobulinemia, and that was co-developed by Johnson & Johnson .
Since winning approval for use as a second-line therapy in CLL, Imbruvica sales have stormed higher. Last quarter, Imbruvica revenue clocked in at $343 million, making its path to billion dollar blockbuster status a short one.
Imbruvica's impressive start has industry-watchers thinking its peak sales could exceed $6 billion, a heady-forecast that may have recently become more attainable following a competitors stumble and a recent FDA approval for its use in more patients.
Gilead Sciences launched its competing CLL drug, Zydelig, around the same time as Imbruvica, however, Zydelig's arguably less attractive safety profile kept a lid on its sales last year, and this year, Zydelig may be relegated to niche drug following last month's announcement that Gilead Sciences' has shuttered six Zydelig clinical trials following patient deaths.
Additionally, Imbruvica's market position should also improve this year following the FDA's clearing of its use in the first line CLL setting last month. Opening up Imbruvica to this larger CLL patient population is expected to catapult the drug's sales to $1.8 billion this year, according to AbbVie's CFO William Chase.
SOURCE: ABBVIE, INC.
Delivering another win
Now that Imbruvica has been bumped up to first-line status, AbbVie hopes that Venclexta's approval in the second-line setting means that it will slot in right behind it to become another top seller in the indication.
That's not unreasonable thinking given that CLL is the most common form of leukemia. Roughly 15,000 cases of CLL are diagnosed annually and unfortunately, most CLL patients see their disease return at some point after responding to first-line therapy. Yes, Imbruvica's efficacy means that more patients will be disease free for longer than they were previously, but Imbruvica isn't a cure and that means there's likely to remain a significant need for relapsing CLL therapies -- especially in patients with 17p deletion who lack a key gene associated with suppressing cancer cells.
In clinical trials, 80% patients with 17p deletion who have seen their disease return following one previous therapy saw a complete or partial remission on Venclexta. For that reason, Venclexta is undeniably a new and important weapon in doctor toolboxes for this indication.
Reasons for caution
A response rate like that could have investors thinking Venclexta has Imbruvica-like commercial opportunity, however, there are a couple reasons why that may not be the case.
First, only 20% of the relapsing CLL patient population possesses the 17p deletion targeted by Venclexta and that means the drug will target a much smaller addressable market than Imbruvica.
Secondly, a second-generation BTK-inhibitor that could challenge Imbruvica could also shift the use of Venclexta from second line use to a third-line treatment.
In December, Netherlands-based Acerta Pharma presented data on its BTK-inhibitor acalabrutinib showing a 95% response rate during phase 1/2 trials in relapsing CLL patients. In 17p deletion patients -- Venclexta's target indication -- 100% of patients had a positive response to acalabrutinib. Importantly, acalabrutinib's safety in this trial could position it as best-in-class, helping insure its use prior to other agents like Venclexta.
Acalabrutinib's performance was so compelling that AstraZeneca handed Acerta Pharma $2.5 billion in exchange for 55% ownership only days after Acerta Pharma's presentation. AstraZeneca has an option to buy the remainder of Acerta Pharma later, and its first filings for FDA approval of acalabrutinib in blood cancer are being targeted for later this year.
Looking ahead
Sadly, none of these drugs cure the disease and that means that Imbruvica, Venclexta, and acalabrutinib (if approved) could all play an important role in this indication. However, since acalabrutinib could cause Venclexta's use to shrink as early as 2017, investors might not want to buy AbbVie's shares solely because of Venclexta's approval.
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The article AbbVie's Venclexta Notches FDA Win, But Investors Might Want To Temper Enthusiasm originally appeared on Fool.com.
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. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Johnson & 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 .
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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. | Opening up Imbruvica to this larger CLL patient population is expected to catapult the drug's sales to $1.8 billion this year, according to AbbVie's CFO William Chase. Delivering another win Now that Imbruvica has been bumped up to first-line status, AbbVie hopes that Venclexta's approval in the second-line setting means that it will slot in right behind it to become another top seller in the indication. AbbVie Inc . | This week, a FDA approval of AbbVie's Venclexta in some patients with relapsing chronic lymphocytic leukemia puts the company a step closer to its goal, but a drug on the horizon with ties to AstraZeneca plc may eventually temper demand for Venclexta, and for that reason, investors may want to keep their peak sales estimates for Venclexta in check. Winning share Buying Pharmacyclics landed AbbVie 50% of the rights to Imbruvica, a BTK-inhibiting therapy that is approved for use in chronic lymphocytic leukemia (CLL), mantle cell lymphoma, and Waldenstrom's macroglobulinemia, and that was co-developed by Johnson & Johnson . AbbVie Inc . | This week, a FDA approval of AbbVie's Venclexta in some patients with relapsing chronic lymphocytic leukemia puts the company a step closer to its goal, but a drug on the horizon with ties to AstraZeneca plc may eventually temper demand for Venclexta, and for that reason, investors may want to keep their peak sales estimates for Venclexta in check. AbbVie Inc . The move single-handedly landed AbbVie one of the fastest growing cancer drugs on the planet and it signaled AbbVie's commitment to expand beyond its top-selling Humira to become a global oncology market leader. | However, since acalabrutinib could cause Venclexta's use to shrink as early as 2017, investors might not want to buy AbbVie's shares solely because of Venclexta's approval. AbbVie Inc . The move single-handedly landed AbbVie one of the fastest growing cancer drugs on the planet and it signaled AbbVie's commitment to expand beyond its top-selling Humira to become a global oncology market leader. |
26616.0 | 2016-04-12 00:00:00 UTC | Roche/AbbVie's Lymphocytic Leukemia Drug Gets FDA Nod | ABBV | https://www.nasdaq.com/articles/roche-abbvies-lymphocytic-leukemia-drug-gets-fda-nod-2016-04-12 | nan | nan | Roche Holding AGRHHBY , along with its partner AbbVie Inc. ABBV , announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion.
Leukemia will need to be detected by an FDA-approved test. AbbVie will commercialize the drug outside the U.S., while both the countries will commercialize the drug in the U.S.
According to Roche, Venclexta is the first drug to be approved for restoring a process in which cells self-destruct (apoptosis) by selectively blocking the BCL-2 protein.
Accelerated approval allows a conditional approval of a drug that addresses an unmet medical need for a serious condition based on early evidence suggesting clinical benefit. However, continued approval in this indication is contingent upon the verification and description of the drug's clinical benefit in confirmatory trials.
We remind investors that Venclexta was granted Breakthrough Therapy Designation by the FDA for the same indication. Roche's Marketing Authorization Application (MAA) for the candidate is currently under review in the EU.
Meanwhile, Venclexta is currently in phase III studies for the treatment of relapsed, refractory and previously untreated CLL. The candidate is also being evaluated for other types of blood cancers including indolent non-Hodgkin's lymphoma, diffuse large B-cell lymphoma, acute myeloid leukemia and multiple myeloma.
The approval of Venclexta further strengthens Roche's hematology portfolio, which already boasts drugs like MabThera/Rituxan (rituximab) and Gazyva. The company also has a deep pipeline comprising an anti-PDL1 antibody (atezolizumab/MPDL3280A), an anti-CD79b antibody drug conjugate (polatuzumab vedotin/RG7596) and a small-molecule antagonist of MDM2 (idasanutlin/RG7388).
Roche has a strong presence in the oncology market. In particular, the company dominates the breast cancer space with strong demand for its HER2 franchise, which includes drugs like Herceptin, Perjeta and Kadcyla.
Approval of new drugs for leukemia will further broaden its oncology portfolio and somewhat offset the loss of revenues resulting from the generic competition for Xeloda, Zelboraf and Pegasys.
Roche currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Novo Nordisk A/S NVO and Eli Lilly and Company LLY . 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. | Roche Holding AGRHHBY , along with its partner AbbVie Inc. ABBV , announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. AbbVie will commercialize the drug outside the U.S., while both the countries will commercialize the drug in the U.S. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): 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 ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Roche Holding AGRHHBY , along with its partner AbbVie Inc. ABBV , announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. AbbVie will commercialize the drug outside the U.S., while both the countries will commercialize the drug in the U.S. | Roche Holding AGRHHBY , along with its partner AbbVie Inc. ABBV , announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie will commercialize the drug outside the U.S., while both the countries will commercialize the drug in the U.S. | Roche Holding AGRHHBY , along with its partner AbbVie Inc. ABBV , announced that the FDA has granted accelerated approval to Venclexta (venetoclax) for the treatment of patients suffering from previously treated chronic lymphocytic leukemia (CLL) with a 17p deletion. AbbVie will commercialize the drug outside the U.S., while both the countries will commercialize the drug in the U.S. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
26617.0 | 2016-04-12 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for April 13, 2016 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-ex-dividend-date-scheduled-april-13-2016-2016-04-12 | nan | nan | AbbVie Inc. ( ABBV ) will begin trading ex-dividend on April 13, 2016. A cash dividend payment of $0.57 per share is scheduled to be paid on May 16, 2016. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 11.76% increase over the same period a year ago. At the current stock price of $58.5, the dividend yield is 3.9%.
The previous trading day's last sale of ABBV was $58.5, representing a -18.3% decrease from the 52 week high of $71.60 and a 28.71% increase over the 52 week low of $45.45.
ABBV is a part of the Health Care sector, which includes companies such as Johnson & Johnson ( JNJ ) and Pfizer, Inc. ( PFE ). ABBV's current earnings per share, an indicator of a company's profitability, is $1.69. Zacks Investment Research reports ABBV's forecasted earnings growth in 2016 as 16.72%, compared to an industry average of 3.9%.
For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
Market Vectors Pharmaceutical ETF ( PPH )
SPDR Select Sector Fund - Health Care ( XLV )
iShares U.S. Healthcare ETF ( IYH )
Vanguard Health Care ETF - DNQ ( VHT )
WisdomTree U.S. Quality Dividend Growth Fund ( DGRW ).
The top-performing ETF of this group is DGRW with an increase of 3.15% over the last 100 days. PPH has the highest percent weighting of ABBV at 4.65%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2016 as 16.72%, compared to an industry average of 3.9%. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. | The following ETF(s) have ABBV as a top-10 holding: Market Vectors Pharmaceutical ETF ( PPH ) SPDR Select Sector Fund - Health Care ( XLV ) iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF - DNQ ( VHT ) WisdomTree U.S. Quality Dividend Growth Fund ( DGRW ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie Inc. ( ABBV ) will begin trading ex-dividend on April 13, 2016. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of ABBV was $58.5, representing a -18.3% decrease from the 52 week high of $71.60 and a 28.71% increase over the 52 week low of $45.45. The following ETF(s) have ABBV as a top-10 holding: Market Vectors Pharmaceutical ETF ( PPH ) SPDR Select Sector Fund - Health Care ( XLV ) iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF - DNQ ( VHT ) WisdomTree U.S. Quality Dividend Growth Fund ( DGRW ). | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. ABBV's current earnings per share, an indicator of a company's profitability, is $1.69. The following ETF(s) have ABBV as a top-10 holding: Market Vectors Pharmaceutical ETF ( PPH ) SPDR Select Sector Fund - Health Care ( XLV ) iShares U.S. Healthcare ETF ( IYH ) Vanguard Health Care ETF - DNQ ( VHT ) WisdomTree U.S. Quality Dividend Growth Fund ( DGRW ). |
26618.0 | 2016-04-10 00:00:00 UTC | 3 Big Battles Brewing in Biotech | ABBV | https://www.nasdaq.com/articles/3-big-battles-brewing-biotech-2016-04-10 | nan | nan | SOURCE: FLICKR USER STOCKMONKEYS.COM.
Competitors are always angling to dethrone established leaders, and that's no different in the world of biopharma. Research money often gets prioritized toward indications that offer blockbuster potential, and even slight advantages can shift the market share landscape significantly. Soon, the FDA will weigh in on drugs from three companies that could reshape existing markets. Let's learn more about them and what may be at stake.
Big pharma goes after an upstart
The FDA approval of Relypsa 's hyperkalemia drug Veltassa last October means that it has a first-to-market advantage, but if AstraZeneca plc 's competing hyperkalemia drug, ZS-9, gets the regulatory go-ahead in May, it could be the bigger seller of the two drugs.
AstraZeneca spent $2.7 billion on ZS Pharma last fall, and if the FDA opts for a more favorable prescribing label for ZS-9 than Veltassa, then it could prove to be money well spent. Veltassa's label includes a black-box warning of interactions with other oral drugs, and as a result, other oral drugs shouldn't be taken within six hours of Veltassa.
Because hyperkalemia, or abnormally high levels of potassium in the blood, often occurs in patients with significant medical needs, such as those with chronic kidney disease and heart failure, a cleaner label for ZS-9 could be a big advantage.
Overall, industry watchers think this market could eventually be worth $1 billion or more, and that means these companies are likely to fight tooth-and-nail to be the market share leader.
SOURCE: SYNERGY PHARMACEUTICALS.
No. 2: An upstart challenges a fast grower
On Jan. 29, small-cap biotech Synergy Pharmaceuticals filed for FDA approval of plecanatide, a drug for the treatment of chronic idiopathic constipation (CIC).
If approved, plecanatide will face off against Ironwood Pharmaceuticals and Allegan plc 's fast-growing CIC drug, Linzess. U.S. sales of Linzess, which won FDA approval in 2012, clocked in at $455 million last year, up 53% from 2014.
Plecanatide could mount a solid challenge to Ironwood and Allergan's Linzess, because in trials, the rate of occurrence of diarrhea was arguably lower for plecanatide than it was for Linzess. Allergan and Ironwood hope to launch a lower-dose version of Linzess that could decrease the risk of diarrhea and insulate it more from a plecanatide threat, so it's not clear who will eventually be the winner in this indication. Given that Ironwood pegs Linzess' peak annual sales at $2 billion, this is one battle worth watching.
No. 3: Two biggies prepare to duke it out
Incyte Corporation and Eli Lilly & Co . have filed for FDA approval of a new JAK-inhibiting therapy, baricitinib, that could win away business from AbbVie Inc .'s top-selling Humira in rheumatoid arthritis.
Humira has a 22% market share in the $18 billion RA drug market, and baricitinib delivered arguably best-in-class results in clinical trials. Specifically, baricitinib outpaced the commonly used disease-modifying antirheumatic drug (DMARD) methotrexate in early RA patients, and it improved symptoms in patients who failed to respond to anti-TNF drugs such as Humira. Importantly, baricitinib also outpaced Humira in a head-to-head study involving patients who fail to improve on DMARD therapy, suggesting that it, rather than Humira, could be used first in that patient population.
Adding confidence to that possibility is that, unlike Humira, baricitinib is dosed orally, rather than via injection.
Humira has been a mainstay in this indication for years, and doctors are comfortable with its use, so it may take some time for baricitinib's market share to build, but nonetheless, this could be the biggest battle over market-share turf in this indication in years, and that means investors need to be paying attention to it.
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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. | have filed for FDA approval of a new JAK-inhibiting therapy, baricitinib, that could win away business from AbbVie Inc . Because hyperkalemia, or abnormally high levels of potassium in the blood, often occurs in patients with significant medical needs, such as those with chronic kidney disease and heart failure, a cleaner label for ZS-9 could be a big advantage. 2: An upstart challenges a fast grower On Jan. 29, small-cap biotech Synergy Pharmaceuticals filed for FDA approval of plecanatide, a drug for the treatment of chronic idiopathic constipation (CIC). | have filed for FDA approval of a new JAK-inhibiting therapy, baricitinib, that could win away business from AbbVie Inc . Big pharma goes after an upstart The FDA approval of Relypsa 's hyperkalemia drug Veltassa last October means that it has a first-to-market advantage, but if AstraZeneca plc 's competing hyperkalemia drug, ZS-9, gets the regulatory go-ahead in May, it could be the bigger seller of the two drugs. 2: An upstart challenges a fast grower On Jan. 29, small-cap biotech Synergy Pharmaceuticals filed for FDA approval of plecanatide, a drug for the treatment of chronic idiopathic constipation (CIC). | have filed for FDA approval of a new JAK-inhibiting therapy, baricitinib, that could win away business from AbbVie Inc . Big pharma goes after an upstart The FDA approval of Relypsa 's hyperkalemia drug Veltassa last October means that it has a first-to-market advantage, but if AstraZeneca plc 's competing hyperkalemia drug, ZS-9, gets the regulatory go-ahead in May, it could be the bigger seller of the two drugs. Humira has a 22% market share in the $18 billion RA drug market, and baricitinib delivered arguably best-in-class results in clinical trials. | have filed for FDA approval of a new JAK-inhibiting therapy, baricitinib, that could win away business from AbbVie Inc . Big pharma goes after an upstart The FDA approval of Relypsa 's hyperkalemia drug Veltassa last October means that it has a first-to-market advantage, but if AstraZeneca plc 's competing hyperkalemia drug, ZS-9, gets the regulatory go-ahead in May, it could be the bigger seller of the two drugs. Humira has a 22% market share in the $18 billion RA drug market, and baricitinib delivered arguably best-in-class results in clinical trials. |
26619.0 | 2016-04-08 00:00:00 UTC | ProShares UltraPro S&P500 Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/proshares-ultrapro-sp500-experiences-big-outflow-2016-04-08 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $18.5 million dollar outflow -- that's a 2.4% decrease week over week (from 12,400,000 to 12,100,000). Among the largest underlying components of UPRO, in trading today Facebook, Inc. (Symbol: FB) is off about 0.9%, Amazon.com Inc. (Symbol: AMZN) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average:
Looking at the chart above, UPRO's low point in its 52 week range is $42.98 per share, with $73.66 as the 52 week high point - that compares with a last trade of $63.08. 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 UPRO, in trading today Facebook, Inc. (Symbol: FB) is off about 0.9%, Amazon.com Inc. (Symbol: AMZN) is up about 0.8%, 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 ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $18.5 million dollar outflow -- that's a 2.4% decrease week over week (from 12,400,000 to 12,100,000). 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 UPRO, in trading today Facebook, Inc. (Symbol: FB) is off about 0.9%, Amazon.com Inc. (Symbol: AMZN) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $42.98 per share, with $73.66 as the 52 week high point - that compares with a last trade of $63.08. 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 UPRO, in trading today Facebook, Inc. (Symbol: FB) is off about 0.9%, Amazon.com Inc. (Symbol: AMZN) is up about 0.8%, 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 ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $18.5 million dollar outflow -- that's a 2.4% decrease week over week (from 12,400,000 to 12,100,000). For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $42.98 per share, with $73.66 as the 52 week high point - that compares with a last trade of $63.08. | Among the largest underlying components of UPRO, in trading today Facebook, Inc. (Symbol: FB) is off about 0.9%, Amazon.com Inc. (Symbol: AMZN) is up about 0.8%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.6%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $42.98 per share, with $73.66 as the 52 week high point - that compares with a last trade of $63.08. 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). |
26620.0 | 2016-04-07 00:00:00 UTC | Stock Market News for April 07, 2016 | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-april-07-2016-2016-04-07 | nan | nan | Benchmarks closed in the green on Wednesday following gains in biotech and energy stocks. Record gains in biotech stocks also had a positive impact on health care sector. Increase in oil prices following decline in crude inventories boosted energy stocks. The Nasdaq touched its highest level for the year till date. However, minutes of the Federal Open Market Committee's (FOMC) March's policy meeting showed that policymakers held differing views about April rate hike chances, which in turn limited some of yesterday's gains.
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 more than 0.6%, or 112.73 points, to close at 17,716.05. The S&P 500 rose 1.1% to close at 2,066.66. The tech-laden Nasdaq Composite Index closed at 4,920.72, gaining 1.6%. The fear-gauge CBOE Volatility Index (VIX) decreased 8.6% to settle at 14.09. A total of around 6.9 billion shares were traded on Wednesday, lower than the last 20-session average of 7.2 billion shares. Advancers outpaced declining stocks on the NYSE. For 72% stocks that advanced, 24% declined.
Health-care stocks rose yesterday following strong gains in Pfizer Inc. ( PFE ) and Allergan plc ( AGN ). Despite calling off the planned merger between the two pharmaceutical giants, shares of Pfizer and Allergan jumped 5% and 3.5% respectively. Both the companies indicated that they may explore separate deals for the betterment of their financial conditions.
Allergan CEO Brent Saunders said that the company "could act immediately if" it gets "the right opportunity with the right growth profile and the right strategic logic." Pfizer is also considering new acquisitions to boost growth and revenue. Additionally, approval of multi-dose vial presentation of Pfizer's Prevenar vaccine by European regulators also boosted the company's shares.
The Health Care Select Sector SPDR (XLV) increased 2.7% and was the best performer among the S&P 500 sectors. Its other key stocks from the sector including, Merck & Co. Inc. ( MRK ), AbbVie Inc. ( ABBV ), Bristol-Myers Squibb Company ( BMY ), Endo International plc ( ENDP ) and Medtronic plc ( MDT ) increased 2.6%, 2.3%, 1.2%, 8.6% and 2.4%, respectively.
Additionally, iShares Nasdaq Biotechnology (IBB) rose 6%, posting its best percentage gain since March 12, 2009. Key biotech stocks including, Amgen Inc. ( AMGN ), Biogen Inc. ( BIIB ), Gilead Sciences Inc. ( GILD ), Celgene Corporation ( CELG ) and Vertex Pharmaceuticals Incorporated ( VRTX ) increased 4.4%, 5.3%, 2%, 6% and 8.5%, respectively.
Moreover, oil prices increased following a decline in crude inventories. The U.S. Energy Information Administration (EIA) reported Wednesday that the U.S. commercial crude oil inventories fell 4.9 million barrels to 529.9 million for the week ended April 1. The surprise fall in crude inventories was mainly because of rise in refinery activity and fall in imports. Both the WTI crude and Brent crude increased by 4.9% to $37.73 per barrel and $39.84 a barrel, respectively.
The Energy Select Sector SPDR (XLE) increased 2.2% and was the second biggest gainer among the S&P 500 sectors. Its key components including, Schlumberger Ltd ( SLB ), EOG Resources ( EOG ), Occidental Petroleum Corporation ( OXY ) and Pioneer Natural Resources Co. ( PXD ) increased 0.7%, 1%, 4% and 1.3%, respectively. Dow components Chevron Corp ( CVX ) and Exxon Mobil Corp ( XOM ) rose 2.3% and 1.3%, respectively.
Further, the minutes on Federal Reserve's March two-day policy meeting released on Wednesday indicated that the Fed officials shared diverse views regarding rate hike chances. Some Fed officials believed that "a cautious approach to raising rates would be prudent." They also "noted their concern that raising the target range" this month might "signal a sense of urgency they did not think appropriate."
However, other Fed policymakers "indicated that an increase in the target range" in the Committee's April meeting could be appropriate "if the incoming economic data" could reach "their expectations." They expect inflation rate to rise to 2% "over the medium term," stronger labor market and "moderate growth in output."
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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. | Its other key stocks from the sector including, Merck & Co. Inc. ( MRK ), AbbVie Inc. ( ABBV ), Bristol-Myers Squibb Company ( BMY ), Endo International plc ( ENDP ) and Medtronic plc ( MDT ) increased 2.6%, 2.3%, 1.2%, 8.6% and 2.4%, respectively. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report SCHLUMBERGER LT (SLB): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. However, minutes of the Federal Open Market Committee's (FOMC) March's policy meeting showed that policymakers held differing views about April rate hike chances, which in turn limited some of yesterday's gains. | Its other key stocks from the sector including, Merck & Co. Inc. ( MRK ), AbbVie Inc. ( ABBV ), Bristol-Myers Squibb Company ( BMY ), Endo International plc ( ENDP ) and Medtronic plc ( MDT ) increased 2.6%, 2.3%, 1.2%, 8.6% and 2.4%, respectively. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report SCHLUMBERGER LT (SLB): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Key biotech stocks including, Amgen Inc. ( AMGN ), Biogen Inc. ( BIIB ), Gilead Sciences Inc. ( GILD ), Celgene Corporation ( CELG ) and Vertex Pharmaceuticals Incorporated ( VRTX ) increased 4.4%, 5.3%, 2%, 6% and 8.5%, respectively. | Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report SCHLUMBERGER LT (SLB): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Its other key stocks from the sector including, Merck & Co. Inc. ( MRK ), AbbVie Inc. ( ABBV ), Bristol-Myers Squibb Company ( BMY ), Endo International plc ( ENDP ) and Medtronic plc ( MDT ) increased 2.6%, 2.3%, 1.2%, 8.6% and 2.4%, respectively. Increase in oil prices following decline in crude inventories boosted energy stocks. | Its other key stocks from the sector including, Merck & Co. Inc. ( MRK ), AbbVie Inc. ( ABBV ), Bristol-Myers Squibb Company ( BMY ), Endo International plc ( ENDP ) and Medtronic plc ( MDT ) increased 2.6%, 2.3%, 1.2%, 8.6% and 2.4%, respectively. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN PLC (AGN): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report ENDO INTL PLC (ENDP): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report SCHLUMBERGER LT (SLB): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Increase in oil prices following decline in crude inventories boosted energy stocks. |
26621.0 | 2016-04-07 00:00:00 UTC | After Hours Most Active for Apr 7, 2016 : S, FTR, HPQ, RF, ABBV, BAC, NRG, SIRI, AAPL, MSFT, NAVI, CSCO | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-apr-7-2016-s-ftr-hpq-rf-abbv-bac-nrg-siri-aapl-msft-navi-csco-2016 | nan | nan | The NASDAQ 100 After Hours Indicator is up .32 to 4,475.61. The total After hours volume is currently 59,287,156 shares traded.
The following are the most active stocks for the after hours session :
Sprint Corporation ( S ) is unchanged at $3.51, with 4,068,806 shares traded. As reported in the last short interest update the days to cover for S is 8.338096; this calculation is based on the average trading volume of the stock.
Frontier Communications Corporation ( FTR ) is unchanged at $5.34, with 2,505,101 shares traded. As reported in the last short interest update the days to cover for FTR is 8.169869; this calculation is based on the average trading volume of the stock.
HP Inc. ( HPQ ) is unchanged at $11.99, with 2,355,190 shares traded. HPQ's current last sale is 82.69% of the target price of $14.5.
Regions Financial Corporation ( RF ) is unchanged at $7.60, with 1,977,352 shares traded. RF's current last sale is 76% of the target price of $10.
AbbVie Inc. ( ABBV ) is unchanged at $59.30, with 1,869,917 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range".
Bank of America Corporation ( BAC ) is unchanged at $12.85, with 1,781,402 shares traded.BAC is scheduled to provide an earnings report on 4/14/2016, for the fiscal quarter ending Mar2016. The consensus earnings per share forecast is 0.23 per share, which represents a 27 percent increase over the EPS one Year Ago
NRG Energy, Inc. ( NRG ) is unchanged at $12.24, with 1,719,767 shares traded. As reported by Zacks, the current mean recommendation for NRG is in the "buy range".
Sirius XM Holdings Inc. ( SIRI ) is unchanged at $3.82, with 1,628,543 shares traded. As reported by Zacks, the current mean recommendation for SIRI is in the "buy range".
Apple Inc. ( AAPL ) is +0.04 at $108.58, with 1,433,038 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Microsoft Corporation ( MSFT ) is unchanged at $54.46, with 1,125,151 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Navient Corporation ( NAVI ) is unchanged at $11.60, with 1,012,216 shares traded. As reported by Zacks, the current mean recommendation for NAVI is in the "buy range".
Cisco Systems, Inc. ( CSCO ) is unchanged at $27.60, with 996,118 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ( ABBV ) is unchanged at $59.30, with 1,869,917 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". As reported in the last short interest update the days to cover for S is 8.338096; this calculation is based on the average trading volume of the stock. | AbbVie Inc. ( ABBV ) is unchanged at $59.30, with 1,869,917 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". The total After hours volume is currently 59,287,156 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $59.30, with 1,869,917 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". The following are the most active stocks for the after hours session : Sprint Corporation ( S ) is unchanged at $3.51, with 4,068,806 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $59.30, with 1,869,917 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". As reported by Zacks, the current mean recommendation for NRG is in the "buy range". |
26622.0 | 2016-04-05 00:00:00 UTC | AbbVie Up, Wins CHMP Backing for Humira's Expanded Use | ABBV | https://www.nasdaq.com/articles/abbvie-up-wins-chmp-backing-for-humiras-expanded-use-2016-04-05 | nan | nan | AbbVie Inc.ABBV announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has given an opinion in favor of expanding Humira's label in the EU. The company's shares gained 3.1% on the news.
Humira is under review in the EU for the treatment of moderately-to-severely active Crohn's disease in pediatric patients (aged six years and above) who have had an inadequate response to conventional therapy including primary nutrition therapy and a corticosteroid and/or an immunomodulator, or who are intolerant to or have contraindications for such therapies.
The drug is currently approved in the EU for the treatment of severe active Crohn's disease in pediatric patients (aged six years and above). With the CHMP issuing a positive opinion, we believe that chances of Humira gaining EU approval for an expanded use are pretty high.
Humira is currently approved in the EU for several indications including the treatment of adults with moderate-to-severe active rheumatoid arthritis, severe active ankylosing spondylitis (AS), severe axial spondyloarthritis without radiographic evidence of AS, moderate-to-severe chronic plaque psoriasis, active and progressive psoriatic arthritis, moderately-to-severely active ulcerative colitis, and active moderate-to-severe hidradenitis suppurativa.
Humira is also approved for use in pediatric patients with active enthesitis-related arthritis, severe chronic plaque psoriasis, and active polyarticular juvenile idiopathic arthritis.
We note that Humira is the key growth driver at AbbVie. The drug recorded total sales of $14 billion in 2015, reflecting a 12% surge. A label expansion should further boost the drug's sales.
In fact, AbbVie is already working on expanding Humira's label. The company is evaluating the drug for the treatment of uveitis. Regulatory applications are filed in both the U.S. and the EU with decisions expected in the second half of 2016.
AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include AMAG Pharmaceuticals, Inc. AMAG , Actelion Ltd. ALIOF and Emergent BioSolutions, Inc. EBS . All the three 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 the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has given an opinion in favor of expanding Humira's label in the EU. We note that Humira is the key growth driver at AbbVie. In fact, AbbVie is already working on expanding Humira's label. | Click to get this free report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has given an opinion in favor of expanding Humira's label in the EU. We note that Humira is the key growth driver at AbbVie. | Click to get this free report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has given an opinion in favor of expanding Humira's label in the EU. We note that Humira is the key growth driver at AbbVie. | In fact, AbbVie is already working on expanding Humira's label. AbbVie Inc.ABBV announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has given an opinion in favor of expanding Humira's label in the EU. We note that Humira is the key growth driver at AbbVie. |
26623.0 | 2016-04-03 00:00:00 UTC | This Could Be the Next Big Pharma Buyout | ABBV | https://www.nasdaq.com/articles/could-be-next-big-pharma-buyout-2016-04-03 | nan | nan | Sales of Jazz's top product, Xyrem, for treatment of narcolepsy symptoms grew about 23% to $955 million last year. Before we hear of any offers, one important event needs to play out.
While Xyrem has been a spectacular growth driver, it's also the subject of ongoing patent legislation. Jazz holds 20 Xyrem patents, but not the almighty composition-of-matter patent.Smelling an opportunity, seven different drugmakers have filed applications for approval of generic versions, although Jazz insists its patents will stand up for the drug that made up about 73% of the company's total sales last year. Potential suitors are right to be concerned.
Last summer, the Patent Trial and Appeal Board began proceedings involving six Jazz patents regarding distribution of Xyrem. The company expects a decision in mid-July. If the judge rules strongly in favor of letting Jazz maintain Xyrem exclusivity, expect acquisition offers to pop up like dandelions.
If judges rule unfavorably for Jazz, and Xyrem begins facing generic competition, there's still a chance some suitors could come calling later in the year. Jazz is awaiting phase 3 results for JZP-110, a candidate for both narcolepsy and the much wider obstructive sleep apnea indication. If approved for both, it could top Xyrem's success. Results from this trial aren't expected until the end of the year, so we'll have to wait a bit longer to see how it plays out.
Cheryl Swanson : Big pharma companies, like all of us, enjoy bargains. And gene therapy company Bluebird Bio is flashing blue-plate special pricing right now, making this company a much more enticing takeover target. While the clinical-stage biotech is no stranger to takeover speculation, no one could call Bluebird a bargain last year. Inflated expectations sent the stock up 750% in less than two years, to reach an all-time high last summer.
Bluebird has since fallen out of favor with Wall Street, however. In November, a somewhat disappointing update on Bluebird's Lenti-D phase 2/3 trial had analysts slashing price targets to the bone. The question now is whether the clinical-stage biotech could bounce back, especially since more definitive data is due on the Lenti-D program in a few weeks at the American Academy of Neurology conference.
Whatever that data shows -- or analysts assume it to show -- Bluebird has another asset much more important to big pharma buyers. Along with Kite Pharma and Juno Therapeutics , Bluebird is a leader in CAR-T therapies, often touted as the next big thing in cancer treatment. Late last year, preliminary studies from the National Cancer Institute showed selective data on Bluebird's CAR-T cancer program that was impressive. One advanced cancer patient with multiple myeloma experienced a complete remission eight weeks after treatment. Celgene has already opted into Bluebird's first CAR-T clinical trial, handing over $10 million to jump in, which could end up a "try before you buy" deal. There's no guarantee Bluebird is on the right track with its curative drugs. But the well-funded company is now trading at less than twice its cash level, making it the kind of bargain not often seen in smaller biotechs with a highly promising pipeline.
Todd Campbell : I think Cheryl is on to something with her theory that formerly white-hot stocks working on next-generation CAR-T cancer therapies could be the focus of future M&A, but I think that it's Kite Pharma that's the more likely buyout candidate.
Kite Pharma is conducting a pivotal phase 2 trial of KTE-C19, a CAR-T therapy targeting diffuse large B-cell lymphoma (DLBCL), and interim results are expected this year. Kite Pharma thinks that solid interim data could allow it to file for FDA approval ahead of final data in 2017. If so, then Kite Pharma could conceivably have its first CAR-T on the market next year.
That accelerated timeline could be very attractive to a large biopharma, such as Gilead Sciences or Amgen -- two companies that might otherwise balk at forking out big money to buy an early stage cancer company.
Adding conviction to my thinking is that Kite Pharma's C-suite is packed with people who have been previously associated with M&A. CEO Belldegrun was at Cougar Biotechnology when J&J bought it. CFO Butitta was CFO of NextWave when Pfizer bought it in 2012. and, Chief Commercial Officer Shawn Cline Tomasello worked for Pharmacyclics when AbbVie bought it. The list goes on and on.
Who might acquire Kite Pharma is anyone's guess, but Amgen is already collaborating with the company, and Kite Pharma's chief medical officer, David Chang, is the former head of oncology at Amgen.
Sean Williams : The air has been let out of a number majority of biotech stock valuations in 2016, which is beginning to make this industry quite attractive from a possible takeover standpoint. One company that I suspect could begin to draw some interest, and a possible buyout, is Radius Health .
The lynchpin of Radius Health's portfolio is abaloparatide, a once-daily injectable therapy designed to treat osteoporosis. Wall Street and Radius' shareholders had anxiously been waiting for Amgen and its partner UCB to report late-stage data on romosozumab, a once-monthly injectable solution for osteoporosis that was viewed as abaloparatide's greatest competitor. In February Amgen and UCB delivered. Their late-stage trial hit both co-primary endpoint of reducing the relative risk of vertebral fractures through 12- and 24-months by 73% and 75%, respectively. However, romosozumab did not reach clinical significance in a secondary endpoint of reducing relative risk of non-vertebral fractures in the 12- or 24-month periods examined.
On the other hand, abaloparatide reduced vertebral fractures by 86% in the ACTIVE study at the 18-montn mark, and it did lead to a statistically significant reduction in non-vertebral fractures of 43%. In other words, Radius Health's lead drug looks as if it has a clear path to superiority. This could very well make it an attractive asset for a larger drugmaker to acquire.
Additionally, Radius Health is more than likely looking for a partner in Europe that'll help market abaloparatide. In effect, it's actively seeking a world-renowned drug giant to for assistance, or perhaps a buyout. While nothing is written in stone, I'd keep a close eye on Radius as a buyout candidate within the industry.
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The article This Could Be the Next Big Pharma Buyout originally appeared on Fool.com.
Brian Feroldi has no position in any stocks mentioned. Cheryl Swanson owns shares of Amgen and Johnson & Johnson. Cory Renauer owns shares of Johnson & Johnson. Kristine Harjes owns shares of Johnson & Johnson. Sean Williams has no position in any stocks mentioned. Todd Campbell has no position in any stocks mentioned. The Motley Fool recommends Bluebird Bio, Johnson & Johnson, and Juno Therapeutics. 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. | CFO Butitta was CFO of NextWave when Pfizer bought it in 2012. and, Chief Commercial Officer Shawn Cline Tomasello worked for Pharmacyclics when AbbVie bought it. Kite Pharma is conducting a pivotal phase 2 trial of KTE-C19, a CAR-T therapy targeting diffuse large B-cell lymphoma (DLBCL), and interim results are expected this year. Sean Williams : The air has been let out of a number majority of biotech stock valuations in 2016, which is beginning to make this industry quite attractive from a possible takeover standpoint. | CFO Butitta was CFO of NextWave when Pfizer bought it in 2012. and, Chief Commercial Officer Shawn Cline Tomasello worked for Pharmacyclics when AbbVie bought it. In November, a somewhat disappointing update on Bluebird's Lenti-D phase 2/3 trial had analysts slashing price targets to the bone. However, romosozumab did not reach clinical significance in a secondary endpoint of reducing relative risk of non-vertebral fractures in the 12- or 24-month periods examined. | CFO Butitta was CFO of NextWave when Pfizer bought it in 2012. and, Chief Commercial Officer Shawn Cline Tomasello worked for Pharmacyclics when AbbVie bought it. Jazz holds 20 Xyrem patents, but not the almighty composition-of-matter patent.Smelling an opportunity, seven different drugmakers have filed applications for approval of generic versions, although Jazz insists its patents will stand up for the drug that made up about 73% of the company's total sales last year. Todd Campbell : I think Cheryl is on to something with her theory that formerly white-hot stocks working on next-generation CAR-T cancer therapies could be the focus of future M&A, but I think that it's Kite Pharma that's the more likely buyout candidate. | CFO Butitta was CFO of NextWave when Pfizer bought it in 2012. and, Chief Commercial Officer Shawn Cline Tomasello worked for Pharmacyclics when AbbVie bought it. Whatever that data shows -- or analysts assume it to show -- Bluebird has another asset much more important to big pharma buyers. Along with Kite Pharma and Juno Therapeutics , Bluebird is a leader in CAR-T therapies, often touted as the next big thing in cancer treatment. |
26624.0 | 2016-04-01 00:00:00 UTC | Better Buy: AbbVie vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-vs-johnson-johnson-2016-04-01 | nan | nan | Investors have made a lot of money from Big Pharma stocks over the past few years. Two of the biggest winners have quite different backgrounds. AbbVie is a spin-off less than four years old. Johnson & Johnson has been around since Grover Cleveland was president. But that's the past. Which of these two stocks has the brighter future? Here are arguments for both AbbVie and J&J.
The case for AbbVie
Few pharmaceutical stocks have performed as well as AbbVie since the company was formed in 2013. AbbVie's share price climbed over 60% after Abbott Labs spun off its proprietary pharmaceuticals business as a new entity.
Dividend-seeking investors should particularly like AbbVie. The company's dividend yield currently tops 4%. And while the nice yields for some big drugmakers come with scary payout ratios, that's not true for AbbVie. Its payout ratio is just over 64%.
AbbVie's past success has been powered largely by one product -- Humira. The multi-indication anti-inflammatory drug racked up sales of $14 billion last year, reflecting a healthy year-over-year gain.
There's more to AbbVie than just Humira, though. Hepatitis C drug Viekira Pak contributed $554 million in revenue for 2015 in its first year on the market. New cancer drug Imbruvica made another $343 million for AbbVie. A couple of other drugs, Creon and Lupron, saw double-digit percentage growth last year with combined sales of $420 million.
AbbVie also claims 17 clinical trials in phase 3. Some of those are for Imbruvica targeting additional indications, but most are for drugs not yet on the market.
What's not to like about AbbVie? The biggest risk for the company stems from loss of patent protection for Humira. U.S. patents for Humira expire in December 2016, while European patents expire in April 2018. AbbVie will likely do everything it can to hold off rival biosimilars from entering the market. The company also has a potential replacement for Humira, ABT-494, in a late-stage study. Still, though, any significant dip in Humira's sales would hurt AbbVie.
The case for Johnson & Johnson
Johnson & Johnson stands among the elite group of so-called "Dividend Aristocrats", which are companies that have consistently increased dividend payments each year for 20 consecutive years. J&J's yield of 2.79% isn't quite as high as AbbVie's. However, its payout ratio of less than 54% is one of the best among dividend-paying Big Pharma stocks.
Unlike AbbVie, J&J's fortunes aren't heavily dependent on one drug. The company's top-selling drug, Zytiga, generated 2015 sales of $2.23 billion, but was followed relatively closely by Invega and Xarelto with sales of over $1.8 billion each.
J&J also has several rising stars in its portfolio. Imbruvica, which was co-developed by AbbVie and J&J, is making plenty of money for both companies. Sales for type 2 diabetes drug Invokana are soaring. J&J also plans to submit a dozen new drugs for regulatory approval over the next four years, notably including cancer drug imetelstat.
J&J also doesn't rely only on pharmaceutical sales. The company is truly a healthcare juggernaut, with multi-billion-dollar consumer products and medical device business units. On the negative side, Johnson and Johnson's revenue dropped across the board from 2014 to 2015. All three of the company's business segments reported year-over-year sales declines, much of which was tied to currency fluctuations outside of the company's control. As you might expect, that resulted in lower earnings as well.
Better buy
AbbVie has emerged as a major success story over the past few years. However, I think the advantage in a head-to-head battle goes to Johnson & Johnson. If I had to sum up why J&J is a great pick in one word, that word would be "stability".
It's quite likely that you, your parents, your grandparents, and probably your great-grandparents bought products made by Johnson & Johnson. J&J has increased its dividend not just the 20 consecutive years requires to join the dividend aristocrats club; the company has bumped up its dividend payment every year for 53 years in a row .
J&J also has a cash stockpile (including cash equivalents and short term investments) of over $38 billion. That's plenty to ensure steady dividend payments plus money leftover to scoop up smaller companies that could help with long-term growth when the opportunities arise. Bigger isn't necessarily always better, but in the case of Johnson & Johnson the old saying rings true.
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The article Better Buy: AbbVie vs. Johnson & Johnson originally appeared on Fool.com.
Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Johnson & 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 .
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. | AbbVie is a spin-off less than four years old. Here are arguments for both AbbVie and J&J. The case for AbbVie Few pharmaceutical stocks have performed as well as AbbVie since the company was formed in 2013. | New cancer drug Imbruvica made another $343 million for AbbVie. AbbVie is a spin-off less than four years old. Here are arguments for both AbbVie and J&J. | The case for AbbVie Few pharmaceutical stocks have performed as well as AbbVie since the company was formed in 2013. AbbVie is a spin-off less than four years old. Here are arguments for both AbbVie and J&J. | There's more to AbbVie than just Humira, though. What's not to like about AbbVie? AbbVie is a spin-off less than four years old. |
26625.0 | 2016-03-31 00:00:00 UTC | How Biotech Is Getting Berned by Sanders | ABBV | https://www.nasdaq.com/articles/how-biotech-getting-berned-sanders-2016-03-31 | nan | nan | SOURCE: BERNIE SANDERS.
Presidential hopeful Bernie Sanders took the battle against high drug prices up a notch this week.
The Vermont senator and 11 other members of Congress sent letter to the National Institutes of Health (NIH) calling for hearings to discuss whether the agency should exercise its march-in patent rights to Medivation and Astellas Pharma 's Xtandi, a widely used prostate cancer drug.
The news sent Medivation's shares reeling, but the fall-out from a NIH hearing could have broad implications for all of biotech.
What's Xtandi?
Xtandi is a commonly used treatment for pre- and post-chemotherapy prostate cancer patients, and prostate cancer is the second most common form of cancer in men. Last year, more than 220,000 cases of prostate cancer were diagnosed in the United States alone.
Xtandi is made and marketed by Medivation and Astellas Pharma, but its patents -- up until recently -- were owned by UCLA. Earlier this month, UCLA sold its patent rights to Xtandi to a private investment group for $520 million.
UCLA discovered Xtandi while conducting NIH-funded research into why prostate cancer can grow even after patients receive treatment that limits testosterone production. UCLA licensed its Xtandi patents to Medivation in 2005, after which Medivation conducted extensive human clinical trials showing that the risk of death in patients who had previously undergone testosterone reducing therapy was 29% lower in Xtandi patients than in patients receiving a placebo.
The FDA approved Xtandi for use in metastatic castration-resistant prostate cancer patients who had undergone chemotherapy in 2012, and it was approved for use in the pre-chemotherapy setting in 2014.
Why Xtandi?
To understand why Sanders and others in Washington are singling out Xtandi, it helps to understand more about federal research funding and patents.
Before 1980, universities and other institutions that received federal grants to conduct research had to turn over patents to the government, rather than use them for their own benefit. However, the government was prohibited from issuing exclusive licenses to companies, so only about 5% of the 30,000 or so patents it had accumulated were ever licensed.
In recognition that this system was broken, and to spark development of future discoveries, Congress passed the Bayh-Dole Act in December 1980. This act grants universities and other recipients of federal funding the right to pursue ownership of their federally funded discoveries and to license patents resulting from this funding to drugmakers, such as UCLA did with Medivation on Xtandi.
To protect American consumers from harm, the Bayh-Dole Act also provides the government entity that provided federal funding the right to exercise march-in rights, which allow the government to ignore patent exclusivity if the agency that provided the funding resulting in the patent determines that a licensee of that patent is violating specific criteria, including a failure to make use of the patent or a failure to satisfy the health and safety needs of consumers.
It's this final criterion that Sanders and others think Medivation and Astellas Pharma are violating. Because Medivation and Astellas charge $129,000 for Xtandi in the U.S. -- roughly three times prices charged abroad -- Sanders argues that Americans are being unduly harmed.
Uncommonly used
Requesting the use of the act's march-in provision isn't unprecedented. Five march-in petitions have been made to the NIH since the act's passage in 1980, including a petition to exercise march-in rights on Norvir, an AIDS drug marketed by AbbVie 's predecessor, Abbott Labs.
The petition to exercise march-in rights on Norvir came following a decision by AbbVie to raise Norvir's price 400% in 2003. The NIH reviewed the matter to see if it should execute its patent rights and concluded that drug pricing, in and of itself, doesn't justify overturning patents via the march-in provision.
Specifically, the NIH concluded:
Super-sized impact
If the NIH were to exercise its march-in rights to Xtandi, the impact on the biotech industry could be enormous.
The NIH funnels roughly 80% of its $31 billion budget to researchers via grants every year, and because it's a major source of academic funding, NIH grants have had a hand in developing some of the most widely used medicine in America.
For example, in the 40-year period following the Bayh-Dole Act's passage, the FDA approved 153 drugs that were rooted in federal funding, including 36 biologics and 15 vaccines. Among these 153 drugs are perennial top-sellers, such as AbbVie's autoimmune drug Humira, which posted $14 billion in sales last year and has ties to research done at Rockefeller University.
However, the indication that appears to have benefited most in the post Bayh-Dole Act period is cancer. According to a 2011 study published in the New England Journal of Medicine, oncology drugs accounted for 40 of the 153 FDA approved drugs that have stemmed from federal funding. Given that cancer drug costs are typically high, a ruling against Medivation could significantly affect the licensees of these oncology patents.
Looking ahead
In the past, the NIH has distanced itself from the pricing debate, but if that were to change, it could set a precedent that leads to questioning patents protecting some of the industry's best-selling medicines. In turn, that could potentially undermine the existing relationship between university researchers and private companies. If that were to cause drugmakers to abandon those relationships in favor of their own internally developed drugs, then it could delay, or thwart, scientific breakthroughs, especially in rare and tough-to-treat diseases where trial failure is highest. Because of that risk, the NIH will probably tread carefully.
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The article How Biotech Is Getting Berned by Sanders originally appeared on Fool.com.
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 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 .
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. | Five march-in petitions have been made to the NIH since the act's passage in 1980, including a petition to exercise march-in rights on Norvir, an AIDS drug marketed by AbbVie 's predecessor, Abbott Labs. The petition to exercise march-in rights on Norvir came following a decision by AbbVie to raise Norvir's price 400% in 2003. Among these 153 drugs are perennial top-sellers, such as AbbVie's autoimmune drug Humira, which posted $14 billion in sales last year and has ties to research done at Rockefeller University. | Five march-in petitions have been made to the NIH since the act's passage in 1980, including a petition to exercise march-in rights on Norvir, an AIDS drug marketed by AbbVie 's predecessor, Abbott Labs. The petition to exercise march-in rights on Norvir came following a decision by AbbVie to raise Norvir's price 400% in 2003. Among these 153 drugs are perennial top-sellers, such as AbbVie's autoimmune drug Humira, which posted $14 billion in sales last year and has ties to research done at Rockefeller University. | Five march-in petitions have been made to the NIH since the act's passage in 1980, including a petition to exercise march-in rights on Norvir, an AIDS drug marketed by AbbVie 's predecessor, Abbott Labs. The petition to exercise march-in rights on Norvir came following a decision by AbbVie to raise Norvir's price 400% in 2003. Among these 153 drugs are perennial top-sellers, such as AbbVie's autoimmune drug Humira, which posted $14 billion in sales last year and has ties to research done at Rockefeller University. | Five march-in petitions have been made to the NIH since the act's passage in 1980, including a petition to exercise march-in rights on Norvir, an AIDS drug marketed by AbbVie 's predecessor, Abbott Labs. The petition to exercise march-in rights on Norvir came following a decision by AbbVie to raise Norvir's price 400% in 2003. Among these 153 drugs are perennial top-sellers, such as AbbVie's autoimmune drug Humira, which posted $14 billion in sales last year and has ties to research done at Rockefeller University. |
26626.0 | 2016-03-30 00:00:00 UTC | 3 High-Yield Dividend Stocks Wealthy Investors Should Buy | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-wealthy-investors-should-buy-2016-03-30 | nan | nan | As evidence of management's confidence in its strategy to protect Humira, the C-suite offered up guidance in January that calls for Humira sales to climb, rather than shrink, to $18 billion in 2020.
If management is right, then AbbVie still has time to build momentum for other drugs that can offset any future impact from biosimilars. Yes, AbbVie's got risks, but investors with deep enough pockets may find its 4% dividend yield attractive enough to warrant accepting those risks.
Daniel Miller : This pick will surprise anybody who has read a Caterpillar article by me over the past two years. That said, if you're a wealthy investor who can hold on to stocks for the long-term despite current headwinds, Caterpillar's dividend yield of about 4% and consistent dividend raises make it a valuable option.
The questions facing potential Caterpillar investors are simple: Is the dividend safe and when will its business improve? Unfortunately, the answer to the latter isn't 2016. Business headwinds include uncertain China and Brazil economies, continued anemic construction demand, weakness in oil and gas markets, slumping commodity prices, and, to top it all off, a strong U.S. dollar.
The truth is those headwinds aren't going away this year, and Caterpillar's business will hurt because of it -- sales and revenue are expected to drop another 10% this year. The good news is that Caterpillar's becoming a much leaner and more efficient operation for when the good times come back and the dividend appears safe.
More specifically, while its dividend payout ratio recently jumped over 80%, it's worth noting that it's much lower when you back out restructuring costs, which won't always weigh on profits. Also, Caterpillar's machinery, energy, and transportation (ME&T) debt-to-capital ratio checked in just under 40% at the end of 2015, within its historical range. And the company's ME&T operating cash flow was a $5.2 billion last year. Management has noted that strong cash flow and maintaining its dividend -- which, for the record, wasn't cut during the financial crisis -- are high priorities.
For wealthy investors who can hang on to shares for many years, Caterpillar has a solid balance sheet and strong cash flow and continues to cut global costs, making it a solid stock that will pay you a 4% yield while you wait for its global business environment to improve.
Steve Symington : To be honest, I think it's a misconception that "wealthy" investors should approach the stock market any differently than any other retail investor. Any person should be able to appreciate the value of letting their money "work" for them through buying shares of good-quality, high-yield dividend stocks . To that end, I think Retail Opportunity Investments fits the bill perfectly. Retail Opportunity Investments focuses on buying and revitalizing grocery-anchored shopping centers in the western United States, primarily in densely populated, middle- to upper-class neighborhoods.
Most recently, the company has demonstrated that its slew of acquisitions -- including $479.6 million to acquire 12 new grocery-anchored properties last year alone -- is beginning to fall to the bottom line in earnest. Last quarter, revenue rose 22.9% year over year, and funds from operations (an effective measure for its cash flow from operations) grew 28.2% to $25.9 million, and 19% on a per-share basis, to $0.25. What's more, it just capped its second consecutive year with a portfolio leased rate above 97%, and demonstrated healthy pricing power with a more than 18% increase on same-space comparative base rent.
As a real estate investment trust, Retail Opportunity Investments also must return at least 90% of its taxable net income to shareholders in the form of dividends, which makes for an attractive current annual dividend yield of 3.7% at today's prices. For any investor willing to buy shares in these still-early stages of growth and watch as Retail Opportunity Investments steadily expands its presence, I think the power of compounding returns should result in staggering financial rewards.
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The article 3 High-Yield Dividend Stocks Wealthy Investors Should Buy originally appeared on Fool.com.
Daniel Miller has no position in any stocks mentioned. Steve Symington owns shares of Retail Opportunity Investments. Todd Campbell has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Retail Opportunity Investments. 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. | If management is right, then AbbVie still has time to build momentum for other drugs that can offset any future impact from biosimilars. Yes, AbbVie's got risks, but investors with deep enough pockets may find its 4% dividend yield attractive enough to warrant accepting those risks. Unfortunately, the answer to the latter isn't 2016. Business headwinds include uncertain China and Brazil economies, continued anemic construction demand, weakness in oil and gas markets, slumping commodity prices, and, to top it all off, a strong U.S. dollar. | If management is right, then AbbVie still has time to build momentum for other drugs that can offset any future impact from biosimilars. Yes, AbbVie's got risks, but investors with deep enough pockets may find its 4% dividend yield attractive enough to warrant accepting those risks. For wealthy investors who can hang on to shares for many years, Caterpillar has a solid balance sheet and strong cash flow and continues to cut global costs, making it a solid stock that will pay you a 4% yield while you wait for its global business environment to improve. | If management is right, then AbbVie still has time to build momentum for other drugs that can offset any future impact from biosimilars. Yes, AbbVie's got risks, but investors with deep enough pockets may find its 4% dividend yield attractive enough to warrant accepting those risks. That said, if you're a wealthy investor who can hold on to stocks for the long-term despite current headwinds, Caterpillar's dividend yield of about 4% and consistent dividend raises make it a valuable option. | If management is right, then AbbVie still has time to build momentum for other drugs that can offset any future impact from biosimilars. Yes, AbbVie's got risks, but investors with deep enough pockets may find its 4% dividend yield attractive enough to warrant accepting those risks. And the company's ME&T operating cash flow was a $5.2 billion last year. |
26627.0 | 2016-03-28 00:00:00 UTC | AstraZeneca or AbbVie: Which Is Better for Dividend Growth Investors? | ABBV | https://www.nasdaq.com/articles/astrazeneca-or-abbvie-which-better-dividend-growth-investors-2016-03-28 | nan | nan | AZN Dividends Paid (TTM) data by YCharts
Shifting tides
While AstraZeneca's dividend payout hasn't budged over the past few years, there's a chance that the company could begin to increase it again in the future, and if so, then it could become a good option for dividend growth investors.
Following Pfizer 's now-failed attempt to acquire it in 2014, AstraZeneca has outlined an aggressive strategy that includes returning to top-line growth and cutting costs to boost profitability. As a result, AstraZeneca projects that its revenue could climb from $24.7 billion last year to $45 billion by 2023.
That's a pretty remarkable forecast, given that sales of top-seller Nexium slipped 26% to $2.5 billion last year following the loss of patent protection in the U.S., and sales of its $5 billion megablockbuster cholesterol-busting drug Crestor will undeniably sink when it loses patent protection this year.
SOURCE: ASTRAZENECA.
Clearly, management is confident that a slate of recently and soon-to-launch drugs can more than make up for the patent headwinds. Last year, sales of its heart disease drug Brilinta surged 44% to $619 million, and revenue from its diabetes drug Farxiga climbed 137% to $492 million.
The company's recent launch of the lung cancer drug Tagrisso is off to a quick start, hauling in $19 million between its November launch and year-end, and its ovarian cancer drug Lynparza brought in $95 million in its first year on the market. Overall, AstraZeneca believes that these and other cancer drugs in development, including its PD-L1 durvalumab, could be the backbone for its revenue growth over the coming years.
While AstraZeneca is attempting to kick-start itself back into a growth story, AbbVie is working hard to sidestep a big threat.
In December, the composition-of-matter patent protecting its $14 billion-per-year autoimmune disease drug Humira will expire. That expiration could have dire consequences on AbbVie, because Humira represents 60% of its revenue.
Yet management appears unfazed by the risk to its best-seller. In January, it outlined a long-term forecast that includes growing, rather than shrinking, sales of Humira, to $18 billion in 2020. That optimism is based on an assumption that methods-of-use patents can hold off generic competition until the early 2020s. If so, then AbbVie should have a few more years of top-line growth that can fuel additional dividend increases. If not, then AbbVie could find itself in the same position AstraZeneca was a few years ago, when it was forced to stop increasing its dividend.
However, even if Humira does face generic competition sooner than management hopes, it may not mean AbbVie's dividend can't keep growing. If AbbVie can continue to grow demand for its blood cancer drug Imbruvica and its hepatitis C drugs, and launch a Humira successor, then it might not see sales suffer as much as they might otherwise.
Looking ahead
A turnaround is in progress at AstraZeneca that could turn it into an attractive stock for dividend growth, but until that turnaround pays off with significant top- and bottom-line growth, it remains AbbVie that's the better dividend growth bet. Yes, AbbVie's got a big risk ahead of it with Humira, but it may be able to delay and eventually sidestep that threat via other fast-growing drugs, and if so, then its recent pace of dividend increases may continue for years to come.
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The article AstraZeneca or AbbVie: Which Is Better for Dividend Growth Investors? originally appeared on Fool.com.
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 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 .
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. | While AstraZeneca is attempting to kick-start itself back into a growth story, AbbVie is working hard to sidestep a big threat. Yes, AbbVie's got a big risk ahead of it with Humira, but it may be able to delay and eventually sidestep that threat via other fast-growing drugs, and if so, then its recent pace of dividend increases may continue for years to come. That expiration could have dire consequences on AbbVie, because Humira represents 60% of its revenue. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. While AstraZeneca is attempting to kick-start itself back into a growth story, AbbVie is working hard to sidestep a big threat. That expiration could have dire consequences on AbbVie, because Humira represents 60% of its revenue. | Looking ahead A turnaround is in progress at AstraZeneca that could turn it into an attractive stock for dividend growth, but until that turnaround pays off with significant top- and bottom-line growth, it remains AbbVie that's the better dividend growth bet. While AstraZeneca is attempting to kick-start itself back into a growth story, AbbVie is working hard to sidestep a big threat. That expiration could have dire consequences on AbbVie, because Humira represents 60% of its revenue. | The article AstraZeneca or AbbVie: Which Is Better for Dividend Growth Investors? While AstraZeneca is attempting to kick-start itself back into a growth story, AbbVie is working hard to sidestep a big threat. That expiration could have dire consequences on AbbVie, because Humira represents 60% of its revenue. |
26628.0 | 2016-03-24 00:00:00 UTC | AbbVie Inc.'s Big Win Over Gilead Sciences Wasn't in Hepatitis C | ABBV | https://www.nasdaq.com/articles/abbvie-incs-big-win-over-gilead-sciences-wasnt-hepatitis-c-2016-03-24 | nan | nan | SOURCE: ABBVIE INC.
Following the launch of Viekira Pak in January 2015, industry watchers speculated that AbbVie may win away significant market share from Gilead Sciences ' hepatitis C drug Harvoni. That hasn't happened, but what has happened is that AbbVie's Imbruvica, a therapy used to treat blood cancers, has delivered the equivalent of a knockout blow to Gilead Sciences' cancer drug, Zydelig.
Battling titans
AbbVie and Gilead Sciences are two biotech giants. However, they've taken different paths to get there.
AbbVie's success has come on the heels of Humira, an anti-TNF biologic that is used to treat various autoimmune diseases, while Gilead Sciences success has been built on the back of a slate of top-selling HIV drugs.
Although the two companies' success has come from treating very different indications, both share the honor of marketing drugs that are among the planet's best sellers. AbbVie's Humira raked in more than $14 billion in revenue last year, while Gilead Sciences' HIV drugs generate more than $10 billion in combined sales annually.
Gilead Sciences also has the distinction of marketing Harvoni and Sovaldi, two hepatitis C drugs that hauled in a combined $19.2 billion in revenue in 2015.
Because revenue at both of these companies is highly concentrated within their respective markets, each company has been investing billions of dollars to expand into other indications, and that expansion has led AbbVie to attempt to dethrone Gilead Sciences in hepatitis C and both companies to square off against each other in cancer.
SOURCE: ABBVIE INC.
A tie score
So far, Gilead Sciences is the undeniable winner in hepatitis C and AbbVie's the unmistakable winner in cancer.
Despite launching Viekira Pak to widespread support from payers eager to see competition lower their hepatitis C treatment costs, Viekira Pak hasn't made nearly the dent in the indication as management initially predicted.
Yes, Viekira Pak sales were a healthy $1.64 billion last year, but AbbVie's C-suite had forecast a $3 billion run rate exiting 2015, and annualized fourth-quarter sales came in at roughly $2 billion instead.
Importantly, Viekira Pak seems to have done little to slow Harvoni's momentum. In the fourth quarter of 2014, its first quarter on the market, Harvoni's sales totaled $2.1 billion. However, Harvoni's sales grew to $13.9 billion in 2015, including $3.35 billion in the fourth quarter.
Cleary, AbbVie is losing to Gilead in hepatitis C. However, AbbVie's Imbruvica is decisively beating Gilead Sciences' Zydelig in cancer.
Even though Imbruvica and Zydelig launched within months of each other as treatments for relapsing chronic lymphocytic leukemia (CLL) in 2014, Imbruvica has stolen the show in the indication.
Both drugs demonstrated efficacy in clinical-stage trials, but severe adverse effects, including liver toxicity, in Zydelig's studies led to a black-box warning on its label and the FDA's mandating of a risk-management strategy to educate doctors and patients on its risks. The FDA didn't include a black-box warning, nor did it mandate a risk-management strategy, for Imbruvica.
Given Imbruvica's apparent safety advantage, it's not surprising that it's become the best-in-class option of the two drugs. Imbruvica has an annualized sales run rate in excess of $1.2 billion exiting 2015, while Zydelig sales are tracking at an annualized clip of only $160 million.
Looking ahead
AbbVie has next-generation hepatitis C treatments in the works that it hopes can mount a more significant challenge to Gilead Sciences in the future, but for now, Gilead Sciences remains entrenched as the market share leader.
The shuttering of its Zydelig trials makes Gilead Sciences' plans in cancer uncertain, and Imbruvica won approval for use in newly diagnosed CLL patients earlier this month, which significantly broadens its addressable market. As a result, it appears it may be game, set, and match in favor of AbbVie in this battle.
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The article AbbVie Inc.'s Big Win Over Gilead Sciences Wasn't in Hepatitis C originally appeared on Fool.com.
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. The Motley Fool owns shares of and recommends Express Scripts, Gilead Sciences, and Johnson & 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 .
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. | Following the launch of Viekira Pak in January 2015, industry watchers speculated that AbbVie may win away significant market share from Gilead Sciences ' hepatitis C drug Harvoni. That hasn't happened, but what has happened is that AbbVie's Imbruvica, a therapy used to treat blood cancers, has delivered the equivalent of a knockout blow to Gilead Sciences' cancer drug, Zydelig. Battling titans AbbVie and Gilead Sciences are two biotech giants. | Following the launch of Viekira Pak in January 2015, industry watchers speculated that AbbVie may win away significant market share from Gilead Sciences ' hepatitis C drug Harvoni. AbbVie's Humira raked in more than $14 billion in revenue last year, while Gilead Sciences' HIV drugs generate more than $10 billion in combined sales annually. That hasn't happened, but what has happened is that AbbVie's Imbruvica, a therapy used to treat blood cancers, has delivered the equivalent of a knockout blow to Gilead Sciences' cancer drug, Zydelig. | Because revenue at both of these companies is highly concentrated within their respective markets, each company has been investing billions of dollars to expand into other indications, and that expansion has led AbbVie to attempt to dethrone Gilead Sciences in hepatitis C and both companies to square off against each other in cancer. Cleary, AbbVie is losing to Gilead in hepatitis C. However, AbbVie's Imbruvica is decisively beating Gilead Sciences' Zydelig in cancer. Looking ahead AbbVie has next-generation hepatitis C treatments in the works that it hopes can mount a more significant challenge to Gilead Sciences in the future, but for now, Gilead Sciences remains entrenched as the market share leader. | Following the launch of Viekira Pak in January 2015, industry watchers speculated that AbbVie may win away significant market share from Gilead Sciences ' hepatitis C drug Harvoni. Because revenue at both of these companies is highly concentrated within their respective markets, each company has been investing billions of dollars to expand into other indications, and that expansion has led AbbVie to attempt to dethrone Gilead Sciences in hepatitis C and both companies to square off against each other in cancer. Cleary, AbbVie is losing to Gilead in hepatitis C. However, AbbVie's Imbruvica is decisively beating Gilead Sciences' Zydelig in cancer. |
26629.0 | 2016-03-24 00:00:00 UTC | 8 High-Quality, High-Dividend Stocks to Buy for Q2 | ABBV | https://www.nasdaq.com/articles/8-high-quality-high-dividend-stocks-to-buy-for-q2-2016-03-24 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While the market looks like it's going to end the first calendar quarter of 2016 with a gain, it's also pretty clear a valuation headwind is starting to blow again.
As such, investors looking to for stock-price appreciation are going to find little worth owning at this time. The smart-money move right now headed into the second quarter is seeking out high- dividend stocks to generate income and avoid the struggle growth stocks are apt to find in a low-growth environment.
But which high-dividend stocks are the best ones to own?
7 Low-Risk Healthcare Stocks to Buy Now
There are several quality names out there, but these eight - which range in yields from 3% to nearly 7% - should be at the top of any list of high-dividend stocks to consider before we get too deep into Q2, and too deep into a lethargic time of year.
Here they are, in order of yield …
High-Quality, High-Dividend Stocks to Buy: Wal-Mart Stores, Inc. (WMT)
WMT Dividend Yield: 3%
Walmart ( WMT ) isn't a name too often included on a list of dividend stocks to buy, let alone a list of high-dividend stocks. In fact, last quarter's disappointing results were a reminder that the world's biggest retailer continues to face problems, not the least of which is the distinct possibility that the company is approaching a market-penetration plateau .
But, although it's going through some serious overhaul pains, Walmart is reshaping itself to compete in 2016 and beyond. The centerpieces of that overhaul are a serious e-commerce effort, and an investment in employees .
In the meantime, with a current dividend yield of only 3%, it's not like WMT is a real head-turner. Just bear in mind the company has a long, reliable history of dividend increases , and if Wal-Mart's revamp efforts take hold, those increases may well be bigger than the market presently anticipates.
High-Quality, High-Dividend Stocks to Buy: Wells Fargo & Co (WFC)
WFC Dividend Yield: 3.1%
Wells Fargo ( WFC ) may not be a show-stopper with a dividend yield of 3.1%, but it's a solid payout, and more important, it's a payout that has been on the rise. Wells Fargo has steadily upped the dividend since the 1980s, and while that did get interrupted by the 2008-09 financial crisis with a cut to the payout, WFC resumed increases in 2012 and now has a payout greater than its pre-crisis peak.
It's a quality dividend too, only taking about a third of the company's typical net earnings, leaving plenty of room for turbulence, and payout growth.
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Where WFC really shines, though, is in its quality of earnings. Its return on assets for each of the past three years was well over 1% , versus the industry norm of right around 1%. It's a sign of just how well the company is run.
High-Quality, High-Dividend Stocks to Buy: AbbVie Inc (ABBV)
ABBV Dividend Yield: 4.1%
Those who know the AbbVie ( ABBV ) story well will know it's exceedingly reliant on its flagship drug Humira, which accounts for more than 60% of its revenue. Although it recently won a patent victory against potential a potential rival drug from Amgen, Inc. ( AMGN ), other players like Germany's The Merck Group are still forging ahead with biosimilar versions of the drug . The legal battle will almost certainly be waged against AbbVie again in the future.
So why has ABBV been added to a list of high-quality dividend stocks to buy? Because, since a 20% pullback from June's highs, the worst-case scenario has already been priced in … and then some.
While Humira has competition brewing, AbbVie is much more than just Humira, even if the current revenue mix doesn't reflect it yet. The pipeline is impressive, with venetoclax and ABT-494 standing ready to make waves .
Point being, the company has plenty of firepower to keep paying - and increasing - its dividend. It's presently paying out 57 cents per quarter, translating into a yield of 4.1% .
High-Quality, High-Dividend Stocks to Buy: Weyerhaeuser Co (WY)
WY Dividend Yield: 4.1%
Weyerhaeuser ( WY ) isn't exactly a household name, though odds are good every household has something in that ultimately came from Weyerhaeuser. The company grows timber that's eventually turned into building lumber or turned into paper.
It's not been an easy business to be in lately. Paper and timber prices have been under the same pressure most other commodities have been under for a while, and WY hasn't been immune to that headwind. Weyerhaeuser shares are down nearly 20% from their early-2015 highs, and that's with the 36% bounce since the February low.
Nevertheless, the errant pullback has beefed up the dividend yield to a healthy 4.1%, and though WY is still the victim of some doubts, most investors are now starting to realize the wood and paper industry is a little more resilient than it's been given credit for.
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The kicker: WY is doubly undervalued because in addition to the commodity rout sending shares lower, the expected implosion of construction activity also never materialized .
High-Quality, High-Dividend Stocks to Buy: Ford Motor Company (F)
F Dividend Yield: 4.6%
In mid-January, the idea of "peak auto sales" was first floated, suggesting that 2015's record auto sales was as good as it's going to get .
The logic of the premise made sense, more or less, save one facet… auto sales are linked to the economic cycle, and are not cyclical in and of themselves. If the U.S. and the world has yet to enter a recession, this year should be as strong for the auto market as 2015 was. Indeed, there's a good chance the global economy - and China in particular - wiggles its way back into a mode of economic strength after a recent lull.
Enter Ford ( F ). Already in a downtrend from its mid-2014 peak, Ford shares fell 27% from their October high to their early February low, with the last segment of that pullback spurred by the idea of peak auto sales.
Big mistake. The end result is Ford shares valued at a trailing price-to-earnings ratio of 7.4 and a plausible forward-looking P/E of 6.6.
The dividend yield over 4% is just a little extra gravy.
High-Quality, High-Dividend Stocks to Buy: AT&T Inc. (T)
T Dividend Yield: 5%
In the shadow of its 16% gain since early January, it would be easy to assume the yield on new purchases of AT&T ( T ) would be too low to bother with.
But that's not the case.
Even with the recent rally and foray into new multi-year-high territory, T is paying out dividends at a pace of 5%, arguably qualifying it as one of the market's highest-quality high-dividend stocks.
The case against AT&T starts with posing the possibility that the wireless market is already crowded and highly competitive , with four key players all jockeying for the same (mostly) stagnant number of customers.
It's an incomplete argument, however.
While it is true that stiff competition and a limited number of customers is forcing prices from all providers lower, AT&T simply has the size and funding to keep its lead in the wireless market, keeping it positioned to monetize those subscribers in other ways …
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… which it seems like it is. The company is signed up for the upcoming FCC bandwidth auction , which it may well need to serve as the digital highway for a new 5G device . If AT&T can be one of the early names in 5G, it will cement its place as king of the hill.
High-Quality, High-Dividend Stocks to Buy: Monmouth R.E. Inv. Corp. (MNR)
MNR Dividend Yield: 5.6%
Monmouth Real Estate Investment Corp. ( MNR ) seems to be the exception to that norm. Even as other REITs have been struggling, MNR has been on the rise, up 8% year-to-date, and up 245% since its September low. Yet, even with the big gain, Monmouth is still offering a yield of 5.56%. It's paid reliably too, going on 17 years now.
But what makes MNR different? It's an industrial REIT, renting space to business rather than people. Like residential, it's a cyclical business, but the ebbs and flows aren't nearly as wild as they are for individuals.
Just to paint a picture of the caliber of tenants Monmouth Real Estate Investment Corp. attracts, as of earlier this month it's leasing another 125,000 square feet to none other than General Electric Company ( GE ).
High-Quality, High-Dividend Stocks to Buy: British American Tobacco PLC (ADR) (BTI)
BTI Dividend Yield: 6%
Finally, income-seekers on the hunt for high-quality, high-dividend stocks may want to take a closer look at British American Tobacco ( BTI ).
It's cliche to tout a cigarette maker as a way to secure reliable revenue. Nicotine is addictive, and besides, the war on smoking has been taken up a notch by the advent of e-cigarettes. Yet, there it is… British American Tobacco continues to ramp up its net income, even as revenue dwindles.
The company is fighting a losing battle, of course; there's no justifiable (net) reason anyone should smoke, and even smokers know it. It's going to be a long while before that headwind actually starts to crimp the current dividend yield of 6%.
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Only two-thirds of its net income is currently passed along to shareholders as dividends, and the company has been hyper-reliable about upping its payout for decades now .
As of this writing, James Brumley held a position in T.
The post 8 High-Quality, High-Dividend Stocks to Buy for Q2 appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | High-Quality, High-Dividend Stocks to Buy: AbbVie Inc (ABBV) ABBV Dividend Yield: 4.1% Those who know the AbbVie ( ABBV ) story well will know it's exceedingly reliant on its flagship drug Humira, which accounts for more than 60% of its revenue. The legal battle will almost certainly be waged against AbbVie again in the future. So why has ABBV been added to a list of high-quality dividend stocks to buy? | High-Quality, High-Dividend Stocks to Buy: AbbVie Inc (ABBV) ABBV Dividend Yield: 4.1% Those who know the AbbVie ( ABBV ) story well will know it's exceedingly reliant on its flagship drug Humira, which accounts for more than 60% of its revenue. The legal battle will almost certainly be waged against AbbVie again in the future. So why has ABBV been added to a list of high-quality dividend stocks to buy? | High-Quality, High-Dividend Stocks to Buy: AbbVie Inc (ABBV) ABBV Dividend Yield: 4.1% Those who know the AbbVie ( ABBV ) story well will know it's exceedingly reliant on its flagship drug Humira, which accounts for more than 60% of its revenue. The legal battle will almost certainly be waged against AbbVie again in the future. So why has ABBV been added to a list of high-quality dividend stocks to buy? | High-Quality, High-Dividend Stocks to Buy: AbbVie Inc (ABBV) ABBV Dividend Yield: 4.1% Those who know the AbbVie ( ABBV ) story well will know it's exceedingly reliant on its flagship drug Humira, which accounts for more than 60% of its revenue. The legal battle will almost certainly be waged against AbbVie again in the future. So why has ABBV been added to a list of high-quality dividend stocks to buy? |
26630.0 | 2016-03-23 00:00:00 UTC | Gilead Sciences' Cancer Folly | ABBV | https://www.nasdaq.com/articles/gilead-sciences-cancer-folly-2016-03-23 | nan | nan | SOURCE: GILEAD SCIENCES.
Gilead Sciences reported last week that it has halted six trials that were evaluating the use of its oncology drug, Zydelig, in newly diagnosed cancer patients. The news came alongside an FDA warning to doctors of unexpected deaths within those trials, and it's a big blow to Gilead Sciences' plans to become a major player in the i1ndication.
Diversifying revenue
Gilead Sciences' foray into oncology is part of a two-pronged strategy to expand its sales beyond its top-selling HIV drugs, which rake in over $10 billion in sales annually.
Given that the company already controls over 80% market share in HIV, management has spent billions of dollars researching drugs that can be used in the multibillion-dollar hepatitis C and cancer markets.
So far, the company's efforts in hepatitis C have been far more successful than its efforts in oncology. Last year, Gilead Sciences two hepatitis C drugs -- Sovaldi and Harvoni -- hauled in more than $19 billion in revenue for the company, while sales of Zydelig totaled just $132 million.
Beaten out
Zydelig is approved to treat relapsing chronic lymphocytic cancer (CLL), relapsing follicular B-cell non-Hodgkin's cancer, and relapsing small lymphocytic lymphoma.
Because roughly 15,000 new cases of CLL are diagnosed annually in the U.S. and most CLL patients eventually see their disease return, expectations that Zydelig would become a top seller when it won FDA approval were high.
However, its Imbruvica, a competing CLL therapy that was approved around the same time as Zydelig, has become the CLL drug of choice among doctors.
Imbruvica was developed by AbbVie 's Pharmacyclics and Johnson & Johnson , and it won FDA approval in February 2014. Exiting December, it was selling at an annualized $1.2 billion clip and this year, the gap between Imbruvica and Zydelig will widen following Imbruvica's approval for use in previously untreated CLL patients on March 4.
Coming up short
Industry watchers were projecting $1.5 billion in peak annual sales for Zydelig when it won approval, so Zydelig's anemic performance thus far is already a big disappointment. Now that Gilead Sciences has shuttered trials that could have expanded Zydelig into the more lucrative first-line setting, those peak sales targets appear to be miles off-the-mark.
Gilead Sciences' decision to halt those trials probably wasn't a comfortable one. It can cost hundreds of millions of dollars or more to usher drugs through clinical studies. However, the decision was a necessary one.
According to the FDA, severe side-effects, including multiple deaths, occurred in the trials, which prompted the agency to send out a letter to doctors warning them of Zydelig's risks, and reminding them to report any adverse side effects noticed in Zydelig patients. EU regulators also reached out to doctors, advising them to prescribe antibiotics to patients to help prevent a specific form of pneumonia that's occurred in Zydelig patients.
Looking ahead
Zydelig's trial failure is disheartening to everyone who is eager to see new cancer treatment options become available, and while investors won't know the impact of this news on Zydelig's prescription volume for another quarter or two, it's hard to imagine that Zydelig will ever become anything more than a niche drug at this point.
If so, then Gilead Sciences' cancer strategy has taken a big step into the realm of uncertainty. The company does have some other cancer trials under way, including one in myelofibrosis that's interesting, but it's not clear to me what drug could serve as a backbone to Gilead Sciences' oncology program. Yes, Gilead Sciences has the financial firepower to buy its way into the indication, but cancer research is notoriously difficult, and therefore it may be best to ignore oncology as a reason to be long Gilead Sciences' shares until its strategy becomes more clear.
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The article Gilead Sciences' Cancer Folly originally appeared on Fool.com.
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. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Johnson & 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 .
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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. | Imbruvica was developed by AbbVie 's Pharmacyclics and Johnson & Johnson , and it won FDA approval in February 2014. The news came alongside an FDA warning to doctors of unexpected deaths within those trials, and it's a big blow to Gilead Sciences' plans to become a major player in the i1ndication. Last year, Gilead Sciences two hepatitis C drugs -- Sovaldi and Harvoni -- hauled in more than $19 billion in revenue for the company, while sales of Zydelig totaled just $132 million. | Imbruvica was developed by AbbVie 's Pharmacyclics and Johnson & Johnson , and it won FDA approval in February 2014. Beaten out Zydelig is approved to treat relapsing chronic lymphocytic cancer (CLL), relapsing follicular B-cell non-Hodgkin's cancer, and relapsing small lymphocytic lymphoma. The Motley Fool owns shares of and recommends Gilead Sciences. | Imbruvica was developed by AbbVie 's Pharmacyclics and Johnson & Johnson , and it won FDA approval in February 2014. Gilead Sciences reported last week that it has halted six trials that were evaluating the use of its oncology drug, Zydelig, in newly diagnosed cancer patients. Last year, Gilead Sciences two hepatitis C drugs -- Sovaldi and Harvoni -- hauled in more than $19 billion in revenue for the company, while sales of Zydelig totaled just $132 million. | Imbruvica was developed by AbbVie 's Pharmacyclics and Johnson & Johnson , and it won FDA approval in February 2014. Last year, Gilead Sciences two hepatitis C drugs -- Sovaldi and Harvoni -- hauled in more than $19 billion in revenue for the company, while sales of Zydelig totaled just $132 million. Yes, Gilead Sciences has the financial firepower to buy its way into the indication, but cancer research is notoriously difficult, and therefore it may be best to ignore oncology as a reason to be long Gilead Sciences' shares until its strategy becomes more clear. |
26631.0 | 2016-03-22 00:00:00 UTC | Which Big Pharma Is the Best Dividend Stock? | ABBV | https://www.nasdaq.com/articles/which-big-pharma-best-dividend-stock-2016-03-22 | nan | nan | Next, there's a second tier of big pharma stocks with strong dividend yields. AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Sanofi (NYSE: SNY) all hover around the 4% level.
So should you just go with Glaxo -- or maybe flip a coin to decide between it and AstraZeneca? Not so fast. While both stocks come with tasty dividends now, that doesn't necessarily mean that they're the best bets. For example, what if GlaxoSmithKline slashes its dividend next year and AbbVie bumps its dividend a lot higher? That would change the picture altogether.
Looking at the future (and a little at the past)
Our challenge is that it's impossible to know for sure what will happen next year and beyond. It's tough enough to forecast what might happen this year. As physicist Niels Bohr once said, "Prediction is very difficult, especially about the future."
But if we can't predict the future with any certainty, there are still some things we can look at to give us a reasonably good sense of which big pharma dividends might be on solid ground, and which might be shaky. One key metric is the dividend payout ratio.
The dividend payout ratio is calculated by dividing a company's earnings by its dividend payment. A very high payout ratio could indicate a company liable to have trouble down the road with continuing to maintain its current dividend levels.
Based on the numbers, AstraZeneca and Pfizer will either have to generate higher earnings or reduce their payouts. Glaxo and AbbVie appear to be in pretty good shape to at least maintain dividends at current levels. Sanofi doesn't seem to be in immediate trouble, but its payout ratio is still pretty high.
There are a couple of problems with relying too much on dividend payout ratios, though. First, earnings numbers can be affected by one-time events that make a payout ratio look better or worse than the real story for the company. Glaxo, for example, generated significant additional revenue and earnings in 2015 from a major deal with Novartis , making its current payout ratio look more appealing than it would otherwise.
Second, they're based on past earnings, not on earnings that the company is likely to make in the future. To gain a better feel for the future earnings potential of these giant drugmakers, we need to look at their current products and their pipelines.
Glaxo experienced year-over-year sales declines in 2015 from its pharmaceuticals and vaccines. Slowing sales for Advair have hurt. On the other hand, the company is seeing strong growth from its HIV drugs Tivicay and Triumeq, and the Fluarix vaccine. Glaxo also counts around 40 drugs in its pipeline, with eight in late-stage clinical trials.
AstraZeneca also took a hit last year, with revenue dropping 7%. Declining sales of Crestor due to patent expiration present an especially big challenge for the company. AstraZeneca has a few bright spots: Sales of Brilinta, Bydureon, and Farxiga are growing briskly. Its pipeline includes over 30 treatments in late-stage clinical trials.
2015 turned out quite nicely for AbbVie, though. The company reported solid year-over-year revenue and earnings gains, powered by Humira, Creon, and newer drugs Imbruvica and Viekira. AbbVie has over 40 clinical studies in progress, 17 of which are in phase 3. The main hurdle for the company is that Humira faces the loss of U.S. patent protection at the end of 2016, and could eventually face competition from biosimilars.
Pfizer, on the other hand, saw revenue and earnings fall in 2015 compared to the prior year. Patent losses continue to weigh heavily. However, the company does have some rising stars -- most notably Xeljanz and the Prevnar family of vaccines. Pfizer also has a robust pipeline of 90 programs, including 38 in registration or late-stage trials.
It's a mixed picture for Sanofi. The French drugmaker reported higher year-over-year revenues in 2015, but lower earnings. Many of Sanofi's drugs continue to perform well, with multiple sclerosis treatments Aubagio and Lemtrada especially standing out. The company's pipeline holds lots of potential also, with 46 drugs and vaccines in clinical trials; 14 of those are in phase 3 or registration.
And the winner is...
So which big pharma is the best dividend stock? Let me first state which stocks aren't the best.
I'm leery of AstraZeneca's high dividend. The drugmaker is already paying out more in dividends than it makes on the bottom line. That can't continue indefinitely. I question whether AstraZeneca's pipeline will deliver quickly enough to avoid potential dividend cuts.
My take is that AbbVie, Pfizer, and Sanofi will likely keep their dividends flowing near current levels at least over the next few years. Despite challenges for all three companies, I like the potential for the drugs in their pipelines. However, although these three have great dividend yields, they're definitely in the second tier.
Glaxo has the highest dividend yield of them all. Although its low payout ratio is only a temporary result of the Novartis deal, I don't think the company's dividend is in any jeopardy. I don't expect tremendous earnings growth for Glaxo any time soon, but we're talking about income rather than growth. When all factors are considered, GlaxoSmithKline stands as the best big pharma dividend stock.
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The article Which Big Pharma Is the Best Dividend Stock? originally appeared on Fool.com.
Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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. | AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Sanofi (NYSE: SNY) all hover around the 4% level. For example, what if GlaxoSmithKline slashes its dividend next year and AbbVie bumps its dividend a lot higher? Glaxo and AbbVie appear to be in pretty good shape to at least maintain dividends at current levels. | AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Sanofi (NYSE: SNY) all hover around the 4% level. For example, what if GlaxoSmithKline slashes its dividend next year and AbbVie bumps its dividend a lot higher? Glaxo and AbbVie appear to be in pretty good shape to at least maintain dividends at current levels. | For example, what if GlaxoSmithKline slashes its dividend next year and AbbVie bumps its dividend a lot higher? AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Sanofi (NYSE: SNY) all hover around the 4% level. Glaxo and AbbVie appear to be in pretty good shape to at least maintain dividends at current levels. | My take is that AbbVie, Pfizer, and Sanofi will likely keep their dividends flowing near current levels at least over the next few years. AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Sanofi (NYSE: SNY) all hover around the 4% level. For example, what if GlaxoSmithKline slashes its dividend next year and AbbVie bumps its dividend a lot higher? |
26632.0 | 2016-03-22 00:00:00 UTC | 7 Low-Risk Healthcare Stocks to Buy Now | ABBV | https://www.nasdaq.com/articles/7-low-risk-healthcare-stocks-to-buy-now-2016-03-22 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The reliable growth of healthcare is something that risk-averse investors can believe in right now, even as Wall Street gives them little else to be hopeful about.
For starters, there is the built-in growth for healthcare investments thanks to the demographic push of aging Baby Boomers who need more care.
Additionally, there is built-in stability for healthcare stocks because patients will naturally cut back on other discretionary spending before they forgo drugs or therapies that extend their lives and reduce their pain. That means even in a rough macro environment, healthcare stocks will remain pretty firm.
10 Blue Chips With Fat Stacks of Cash to Spend
If you're looking for low-risk investments right now, then, you can't do much better than healthcare stocks. And here are seven that offer big potential in 2016.
Healthcare Stocks to Buy: AbbVie Inc (ABBV)
AbbVie Inc (NYSE: ABBV ) is a biopharmaceutical company that was spun off from Abbott Laboratories (NYSE: ABT ) in 2013, with ABT getting the higher-growth research of the legacy portfolio and AbbVie taking the mature business.
That sounds like investors in ABBV are stuck with a dud, on the surface, but the numbers show AbbVie is far from dead.
In fact, ABBV offers passive income growth, as well as a company that has a bright future thanks to immediate growth potential.
For instance, the current yield is over 4% after a 12% dividend bump earlier this year. Furthermore, the payout is up 43% from the 40-cent dividend ABBV shares paid at as recently as the beginning of 2014.
Looking at the growth side now, investors should be encouraged by the fact that AbbVie is projected to see 14% revenue growth this year and another 10% growth in fiscal 2017. Profits are set to soar, too, up 17% this year, according to estimates, and up 19% next.
Throw in the attractive forward price-to-earnings ratio of 9.5, and it's hard not to like this healthcare play both for stability and for breakout potential in 2016.
Healthcare Stocks to Buy: UnitedHealth Group Inc (UNH)
UnitedHealth Group Inc (NYSE: UNH ) is one of the best-performing large-cap stocks year-to-date, with a roughly 9% return since Jan. 1 vs. a flat market.
What's more, in addition to growing its insurance business UNH is increasingly getting into the drug game; a recent deal between its OptumRx unit and Walgreens Boots Alliance Inc (NASDAQ: WBA ) will help it compete with pharmacy benefits managers CVS Health Corp (NYSE: CVS ) and Express Scripts Holding Company (NYSE: ESRX ). That's increasingly important as UnitedHealth looks to growth avenues beyond simply insurance policies.
10 Cinderella Stocks to Buy for 2016
Throw in a 1.6% dividend and a reasonable forward P/E of 14.6 and you have a stable and well-priced investment worth your money.
Healthcare Stocks to Buy: Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE: JNJ ) has a lot to offer jittery investors in 2016, including a vaunted AAA credit rating from Standard & Poor's that is shared by just two other U.S. companies - proof-positive of stability in any market.
Valuation-wise, JNJ is also reasonably priced right now at just 15.6 times next year's earnings.
Hilary Kramer, editor of GameChangers , recently wrote that the consumer health giant is also attractive because of its income potential and current yield of about 2.8%.
"The strong yield is the result of more than 50 straight years of increasing the payout … and that trend is sustainable, too. The stock's payout ratio is just 53% right now, which is lower than the five-year average," Kramer wrote.
It's noteworthy, too, that Johnson & Johnson is actually up by about 4% this year to outperform the market despite some negative publicity that included the approval of a biosimilar arthritis treatment .
The fact that JNJ is moving higher even amid this FDA ruling is a good sign that investors have faith in the company's overall drug portfolio - as well as the stability of its consumer health business that produces items including Band-Aids and Tylenol.
Healthcare Stocks to Buy: SPDR S&P Biotech ETF (XBI)
The exchange-traded fund SPDR S&P Biotech ETF (NYSEARCA: XBI ) is my favorite way to play healthcare because it's a safer way to play the explosive potential of small development-stage biotechs without the boom and bust that comes from individual stock picks in the space.
This biotech ETF is admittedly smaller than some of the other healthcare funds that are out there, both in its total assets under management and the companies that it invests in. But that's why investors should like it - because other funds regularly hold big positions in megacap companies like Gilead Sciences (NASDAQ: GILD ) that hold big drug portfolios and are relatively mature already.
The XBI that has no more than 2.2% weighting for a single stock right now, and includes more smaller and mid-cap companies than other funds. It also is more diversified, without a bulky investment in just a few positions.
8 Stocks to Buy That Are Growing Faster Than NFLX
Case in point: Its No. 1 holding right now is Novavax, Inc. (NASDAQ: NVAX ) a $1.5 billion biotech that is only 2.12% of the entire portfolio. That's the kind of company you want, with the kind of diversification you need to stay safe. Get more details here on the official site for XBI.
Healthcare Stocks to Buy: HCP, Inc. (HCP)
HCP, Inc. (NYSE: HCP ) is a real estate investment trust that's a member of the S&P Dividend Aristocrats - meaning it has increased its dividend annually for over 20 years running.
Shares are admittedly down more than 15% year-to-date, but this generous dividend history and a juicy 6.9% yield make the short-term trouble for shares more than worth the trouble.
Moreover, HCP is the kind of company that is literally not at all concerned with the next few months and instead focused on the next few years - even the next few decades. As a company that holds healthcare properties including senior living facilities and medical offices, the reliable rent from its tenants mean reliable dividends and revenue for shareholders to take to the bank.
There admittedly isn't a lot of growth here, with the top line for HCP forecast to be flat both this year and next. Furthermore, earnings are actually down from 2015. However, the juicy dividends and the potential for long-term returns could make this a nice bargain buy for shareholders with patience.
Healthcare Stocks to Buy: Baxter International Inc (BAX)
Baxter International Inc (NYSE: BAX ) is a rock-solid, low-beta healthcare play that may not set the world on fire with parabolic growth, but is a great place to hide out if you're uncertain about your portfolio right now.
In 2015, Baxter split into two separate companies as its biotech business was spun off as Baxalta Inc (NYSE: BXLT ). And while some investors were worried this would undercut the growth potential of the core business of BAX, that hasn't been the case, as shares have risen 14% in the last six months vs. just 6% for the S&P 500 in the same period.
The only thing the spin-off has done, it seems, is to move the riskiest part of the business off to a separate ticker symbol and made BAX even more bulletproof.
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The top line of Baxter admittedly isn't going anywhere. But earnings are set to grow 9% this fiscal year and keep the company firm in a troubled market.
Healthcare Stocks to Buy: Pfizer Inc. (PFE)
Pfizer Inc. (NYSE: PFE ) is another sleepy stock that investors have counted out. However, despite underperforming so far in 2016, PFE is a Big Pharma play that can offer stability and income for investors in an otherwise uncertain environment.
Yes, revenue is challenged for Pfizer considering blockbuster drugs are in decline amid patent expirations, and the strong dollar is creating a headwind overseas to add even more pain. However, Pfizer offers a 4.1% dividend that is very sustainable - even after a recent dividend increase.
And looking forward, its $160 billion merger with Allergan plc (NYSE: AGN ) could yield big results down the road in the form of new treatments that replace some of the legacy drugs that are losing patent protection. This combination of stability and income with growth potential makes PFE an interesting play, particularly given its affordable forward P/E of about 12 right now.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforementioned securities.
The post 7 Low-Risk Healthcare Stocks to Buy Now appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) is a biopharmaceutical company that was spun off from Abbott Laboratories (NYSE: ABT ) in 2013, with ABT getting the higher-growth research of the legacy portfolio and AbbVie taking the mature business. That sounds like investors in ABBV are stuck with a dud, on the surface, but the numbers show AbbVie is far from dead. In fact, ABBV offers passive income growth, as well as a company that has a bright future thanks to immediate growth potential. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) is a biopharmaceutical company that was spun off from Abbott Laboratories (NYSE: ABT ) in 2013, with ABT getting the higher-growth research of the legacy portfolio and AbbVie taking the mature business. That sounds like investors in ABBV are stuck with a dud, on the surface, but the numbers show AbbVie is far from dead. In fact, ABBV offers passive income growth, as well as a company that has a bright future thanks to immediate growth potential. | Healthcare Stocks to Buy: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) is a biopharmaceutical company that was spun off from Abbott Laboratories (NYSE: ABT ) in 2013, with ABT getting the higher-growth research of the legacy portfolio and AbbVie taking the mature business. That sounds like investors in ABBV are stuck with a dud, on the surface, but the numbers show AbbVie is far from dead. In fact, ABBV offers passive income growth, as well as a company that has a bright future thanks to immediate growth potential. | Looking at the growth side now, investors should be encouraged by the fact that AbbVie is projected to see 14% revenue growth this year and another 10% growth in fiscal 2017. Healthcare Stocks to Buy: AbbVie Inc (ABBV) AbbVie Inc (NYSE: ABBV ) is a biopharmaceutical company that was spun off from Abbott Laboratories (NYSE: ABT ) in 2013, with ABT getting the higher-growth research of the legacy portfolio and AbbVie taking the mature business. That sounds like investors in ABBV are stuck with a dud, on the surface, but the numbers show AbbVie is far from dead. |
26633.0 | 2016-03-21 00:00:00 UTC | 3 Large-Cap Stocks With the Highest Net Profit Margins | ABBV | https://www.nasdaq.com/articles/3-large-cap-stocks-highest-net-profit-margins-2016-03-21 | nan | nan | Image source: Pictures of Money via Flickr.
The stock market has been a volatile beast in 2016, and even that might be a brutal understatement.
We witnessed the worst percentage dip over a two-week period to begin a new year ever , and we've followed that up with a pretty voracious rally that's essentially erased the majority of our rough start. Nonetheless, this increase in volatility has some investors questioning whether they want ride this investing rollercoaster or if they'd prefer to be a casual spectators.
Over the last couple of weeks, we've analyzed a number of ways investors can stay invested with less worry by focusing on companies with strong cash flows or high cash balances . Today, we'll offer up a new set of large-cap companies and a new point of focus: net profit margin.
The importance of net profit margin
Just as it sounds, net profit margin is a measure of how profitable a company is. It analyzes how much net profit a company generates after accounting for all the costs of running the business, then divides that figure by total revenue. The result is the net profit margin.
Net profit margin can be of particular importance for two primary reasons.
Image source: Pixabay.
First, it can tell us a lot about the nature of a business. A net profit margin that rises over time could suggest that the management of a company is doing a good job at controlling and/or reducing costs. Conversely, it may also signify an expanding product line and/or improved pricing power, which would allow profits to grow while costs rise at a slower pace, remain static, or fall.
The other role net profit margin plays is to give us some insight into the nature of the competition a company faces. High net profit margins often signify a company that has a dominant market share, a dominant product, or operates in an arena where few competitors exist, meaning it has little in the way of pricing power concerns.
In other words, net profit margin can potentially be a useful tool in spotting top-performing companies.
Three large-caps with the highest net profit margins
With this in mind, let's have a brief look at three large- and megacap stocks that are currently sporting trailing 12-month net profit margins in excess of 50%.
Gilead Sciences
It may surprise no one to discover that drugmaker Gilead Sciences offers the highest net profit margin in its industry at 55.5% over the trailing 12-month period. Drug developers are natural contenders to have high net profit margins because of their pricing power, but quite a few struggle with high marketing and research and development costs, as well as competition.
Image source: Gilead Sciences.
What has allowed Gilead Sciences to stand out is its dominance in treating hepatitis C, and to a lesser degree HIV. Gilead's Sovaldi and Harvoni maintain better than 90% market share in treating HCV patients, and they do so with arguably high price points of $1,000 per pill and $1,125 per pill, respectively. Over a standard 12-week treatment, Sovaldi and Harvoni will run a patient $84,000 to $94,500 based on its wholesale cost. Although new entrants have emerged, such as Merck 's Zepatier and AbbVie 's Viekira Pak, neither offers the same convenience or quality of care as Harvoni. Gilead appears likely to retain its HCV dominance for years to come.
Likewise, the drugs in Gilead's HIV portfolio have only faced competition from treatments of a select few companies. Right now, its toughest competitor is ViiV Healthcare with its duo of Tivicay and Triumeq. However, Gilead's newest HIV product, Genvoya, which contains a new version of tenofovir that reduces its concentration in the bloodstream and focuses higher concentrations on cells where the HIV-1 virus replicates, costs more than $31,000 annually.
When it comes to profits, cash flow, and business efficiency, Gilead is a tough cookie to beat. This might make it a company worth considering for your portfolio.
Baidu
Chinese search engine giant Baidu is another company that pumps out profits and efficiency with a trailing 12-month net profit margin of 50.7%. Like Gilead, dominant market share is what's helped power its stunningly high margins.
Image source: Pixabay.
According to China Internet Watch, as of the second quarter of 2015, Baidu controlled just shy of 80% of all Internet search in China. By comparison, Google China was sitting at nearly 11%, and Sogou was just above 6%. In other words, Baidu has more than seven times the market share of its next-closest competitor. This makes Baidu the go-to when it comes to advertisers, and it gives the company unparalleled pricing and bargaining power.
If there is one thing shareholders in Baidu may want to keep in mind, it's the company's strategy to push heavily into online-to-offline, or O2O, commerce. Baidu is looking to retain its market share by creating a search and services universe that'll keep consumers from wandering away to third-party websites. In this way, it hopes to create new channels for revenue generation and keep its existing customers loyal. However, O2O is requiring some hefty investments, which could wind up being a near-term drag on Baidu's net profit margin.
Nonetheless, as China's dominant force in search, Baidu should be able to keep the cash and profits rolling in.
General Growth Properties
Lastly, you might be surprised to find real estate investment trust General Growth Properties among the companies with highest net profit margins. Over the trailing 12-month period, General Growth Properties, which is also known as GGP, has tallied a very respectable 54.4% net profit margin.
Image source: Pixabay.
General Growth Properties is one of the largest owners and operators of malls in America. When the economy is firing on all cylinders, GGP can count on retailers to fill in vacant spaces, and the company can easily pass on rental increases to its tenants. In many instances, GGP also benefits from locking its major tenants into long-term contracts. This helps create some semblance of steady cash flow for the company.
Like most retail REITs, GGP has standard operating costs that reduce net income and net profit margin. Examples would include real estate taxes, property maintenance, marketing, general and administrative expenses, depreciation and amortization, and doubtful accounts. However, there are some inconsistent gains that GGP can also book on occasion that appear to have really assisted its net profit margin over the last 12 months. In particular, GGP will, from time to time, dispose of properties for a profit, which it did with a handful of sites in 2015. Doing so pumped up its net income and boosted its net profit margin over the 50% mark.
Can GGP maintain a profit margin above 50%? More than likely not, considering that asset sales aren't a guarantee from one year to the next. The retail-REIT industry can also be somewhat competitive and dependent on the health of the U.S. economy. While this doesn't mean GGP isn't worth investment consideration, it does mean that investors should consider the possibility that its current net profit margin is too good to be true.
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The article 3 Large-Cap Stocks With the Highest Net Profit Margins originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of and recommends Baidu and 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 .
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. | Although new entrants have emerged, such as Merck 's Zepatier and AbbVie 's Viekira Pak, neither offers the same convenience or quality of care as Harvoni. We witnessed the worst percentage dip over a two-week period to begin a new year ever , and we've followed that up with a pretty voracious rally that's essentially erased the majority of our rough start. Conversely, it may also signify an expanding product line and/or improved pricing power, which would allow profits to grow while costs rise at a slower pace, remain static, or fall. | Although new entrants have emerged, such as Merck 's Zepatier and AbbVie 's Viekira Pak, neither offers the same convenience or quality of care as Harvoni. High net profit margins often signify a company that has a dominant market share, a dominant product, or operates in an arena where few competitors exist, meaning it has little in the way of pricing power concerns. General Growth Properties Lastly, you might be surprised to find real estate investment trust General Growth Properties among the companies with highest net profit margins. | Although new entrants have emerged, such as Merck 's Zepatier and AbbVie 's Viekira Pak, neither offers the same convenience or quality of care as Harvoni. The importance of net profit margin Just as it sounds, net profit margin is a measure of how profitable a company is. Three large-caps with the highest net profit margins With this in mind, let's have a brief look at three large- and megacap stocks that are currently sporting trailing 12-month net profit margins in excess of 50%. | Although new entrants have emerged, such as Merck 's Zepatier and AbbVie 's Viekira Pak, neither offers the same convenience or quality of care as Harvoni. The importance of net profit margin Just as it sounds, net profit margin is a measure of how profitable a company is. Baidu Chinese search engine giant Baidu is another company that pumps out profits and efficiency with a trailing 12-month net profit margin of 50.7%. |
26634.0 | 2016-03-21 00:00:00 UTC | After Hours Most Active for Mar 21, 2016 : QQQ, CSCO, INTC, GE, EBAY, RF, PFE, VAL, ABBV, BAC, AAPL, AMAT | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-mar-21-2016-qqq-csco-intc-ge-ebay-rf-pfe-val-abbv-bac-aapl-amat | nan | nan | The NASDAQ 100 After Hours Indicator is up .35 to 4,427.33. The total After hours volume is currently 35,917,172 shares traded.
The following are the most active stocks for the after hours session :
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.02 at $107.77, with 2,507,604 shares traded. This represents a 27.18% increase from its 52 Week Low.
Cisco Systems, Inc. ( CSCO ) is unchanged at $28.19, with 2,091,407 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Intel Corporation ( INTC ) is -0.01 at $32.33, with 1,487,038 shares traded. As reported by Zacks, the current mean recommendation for INTC is in the "buy range".
General Electric Company ( GE ) is -0.01 at $31.08, with 1,380,332 shares traded. GE's current last sale is 94.18% of the target price of $33.
eBay Inc. ( EBAY ) is unchanged at $24.34, with 1,339,030 shares traded. EBAY's current last sale is 86.93% of the target price of $28.
Regions Financial Corporation ( RF ) is unchanged at $8.21, with 1,065,468 shares traded. RF's current last sale is 82.1% of the target price of $10.
Pfizer, Inc. ( PFE ) is +0.05 at $30.12, with 1,035,513 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
Valspar Corporation (The) ( VAL ) is unchanged at $103.22, with 1,008,970 shares traded., following a 52-week high recorded in today's regular session.
AbbVie Inc. ( ABBV ) is unchanged at $56.01, with 966,706 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range".
Bank of America Corporation ( BAC ) is unchanged at $13.84, with 931,677 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Apple Inc. ( AAPL ) is +0.01 at $105.92, with 917,977 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Applied Materials, Inc. ( AMAT ) is unchanged at $20.73, with 788,465 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Apr 2016. The consensus EPS forecast is $0.32. As reported by Zacks, the current mean recommendation for AMAT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ( ABBV ) is unchanged at $56.01, with 966,706 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". Regions Financial Corporation ( RF ) is unchanged at $8.21, with 1,065,468 shares traded. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie Inc. ( ABBV ) is unchanged at $56.01, with 966,706 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". | AbbVie Inc. ( ABBV ) is unchanged at $56.01, with 966,706 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". eBay Inc. ( EBAY ) is unchanged at $24.34, with 1,339,030 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $56.01, with 966,706 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". The NASDAQ 100 After Hours Indicator is up .35 to 4,427.33. |
26635.0 | 2016-03-18 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Eli Lilly | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-eli-lilly-2016-03-18 | nan | nan | Pharmaceutical heavyweights AbbVie and Eli Lilly are both headquartered in the American Midwest, but their similarities stop there. Spun off from Abbott Laboratories in 2013, from a certain point of view AbbVie is an infant. Eli Lilly's primary focus has been pharmaceuticals since the 19th century.
So far this year Lilly has been dragged down with the rest of the S&P Pharmaceuticals ETF , of which AbbVie is not a component. It's lack of membership in the beaten up ETF could partially account for its relative buoyancy among its big pharma peers, but that's hardly reason enough to make an investment decision.
Let's look at some more differences between the two companies to see which is the better buy.
Product focus
AbbVie has steadily increased revenue since its inception. Eli Lilly on the other hand has done just the opposite. A closer look at the forces behind these top-line rises and falls will give us clues to whether the trends will continue.
AbbVie's sales of the extremely popular anti-inflammatory, Humira grew 12% last year to a whopping $14 billion. Unfortunately Humira alone was responsible for more than 61% of Abbvie's total. It's only other blockbuster, hepatitis C virus combination Viekira Pak, contributed $1.6 billion in its first full year of sales. Unfortunately, recent entry of Merck 's Daklinza, along with Gilead Sciences ' dominate position in the hepatitis C space may lead to a sophomore slump.
Abbvie's composition of matter patents for Humira expire this December in the U.S., and late 2018 in Europe. While composition of matter patents are basically bulletproof, additional patents related to methods of use, formulation, education programs, and so on, are sometimes vulnerable. AbbVie insists its additional U.S. patents for Humira expire no earlier than 2022.
Legal staff from heavyweights Amgen , Merck, and Novartis , just to name a few, are working around the clock to find and exploit any vulnerabilities, and begin marketing biosimilar versions of Humira themselves. This means the exact date AbbVie begins suffering competition for Humira is questionable.
Also in question is just how much pricing pressure a Humira biosimilar would apply to its reference product. Based on what we've seen in Europe, where biosimilars have been available for a decade now, they generally enter the market at a 20% to 30% discount to their reference products, unlike small-molecule generics which often begin selling at 80%+ discounts.
In contrast to AbbVie, Eli Lilly's revenue stream is far more diverse, but less vibrant. Six separate products contributed 5% or more to Lilly's annual revenue of $19.96 billion last year. Among its six top sellers, just three produced anemic growth between 1% and 2%, and the others fell significantly. For example, sales of former top product Cymbalta, which lost U.S. exclusivity in 2013, declined 36% to just over $1 billion last year.
Eli Lilly's exclusivity woes don't end with Cymbalta. Key U.S. patents on Cialis, Alimta, and Strattera, -- the combined U.S. sales of which made up 15% of 2015 global sales -- all expire next year.
Pipeline focus
Although I'd say AbbVie's existing product line is looking stronger than Lilly's, it's drugs in development that make investing in pharmaceuticals exciting. Approved late last year, Lilly's Portrazza for treatment of lung cancer in combination with two forms of chemotherapy might be a dud. In trials leading to its approval, adding Portrazza to the standard chemo regimen extended median overall survival from 9.9 months to 11.5 months. At a list price of $11,430 per month, it may struggle to gain a lot of traction.
Perhaps Lilly's leading clinical stage candidate is Alzheimer's hopeful solanezumab. After its first phase 3 failure, a redesigned trial involving patients in earlier stages of the disease may make the difference. A more recent change from two primary goals to just one should improve its chances even further. Although the odds of success are long, any proof it can treat the underlying cause of Alzheimer's disease would make this a near instant blockbuster.
While Lilly's best clinical asset is a hail mary, it's hard to choose which of AbbVie's late stage programs to be most excited about. It looks like AbbVie's $21 billion gamble on Pharmacyclics, and rights to Imbruvica, will pay off. It recently became the first FDA-approved, chemo-free, first-line treatment option for patients with the most common form of leukemia. With 15,000 new patients each year, and additional label expansions possible, AbbVie's predictions that this drug could eventually boost its top line by $7 billion annually could be an understatement.
Beyond Imbruvica, AbbVie has just as much to be excited about with its first-in-class BCL-2 inhibitor venetoclax, developed in partnership with Roche . The drug has an orphan drug designation. In January AbbVie announced the FDA and EMA have both accepted applications, although for different genetically defined groups of leukemia patients. The FDA granted venetoclax a priority review so it could potentially reach pharmacy shelves about halfway through the year.
In the numbers
Clearly AbbVie has Eli Lilly beat when it comes to current and upcoming products, but what do the numbers say?
Let's start with distributing profits: Eli Lilly has paid dividends for decades, but it remained frozen for several years, until it began raising it again recently. AbbVie obviously can't claim a long history of increasing dividends, but when it split from Abbott Laboratories it also split the distribution which, when combined, continued to grow at an impressive pace, while Lilly's was still frozen.
If that's not enough convincing, at recent prices Lilly's 2.9% dividend yield is enticing, but AbbVie's 4.1% yield is almost irresistible. AbbVie's yield is not only higher, but it is using a smaller percentage of its profits to make those payments.
What about valuations, you say? Lilly's current price over 2016 consensus earnings-per-share estimates, or forward P/E ratio, seems awfully high for a company with little to look forward to.
AbbVie's forward P/E ratio is extremely pessimistic. I hardly think Humira losses will occur at the rate its valuation suggests. Recent advances in leukemia and other blood cancers with venetoclax and Imbruvica should more than offset Humira losses, making AbbVie the better buy.
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The article Better Buy: AbbVie Inc. vs. Eli Lilly originally appeared on Fool.com.
Cory Renauer owns shares of Abbott Laboratories. 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. | With 15,000 new patients each year, and additional label expansions possible, AbbVie's predictions that this drug could eventually boost its top line by $7 billion annually could be an understatement. Pharmaceutical heavyweights AbbVie and Eli Lilly are both headquartered in the American Midwest, but their similarities stop there. Spun off from Abbott Laboratories in 2013, from a certain point of view AbbVie is an infant. | AbbVie obviously can't claim a long history of increasing dividends, but when it split from Abbott Laboratories it also split the distribution which, when combined, continued to grow at an impressive pace, while Lilly's was still frozen. If that's not enough convincing, at recent prices Lilly's 2.9% dividend yield is enticing, but AbbVie's 4.1% yield is almost irresistible. Pharmaceutical heavyweights AbbVie and Eli Lilly are both headquartered in the American Midwest, but their similarities stop there. | Pipeline focus Although I'd say AbbVie's existing product line is looking stronger than Lilly's, it's drugs in development that make investing in pharmaceuticals exciting. AbbVie obviously can't claim a long history of increasing dividends, but when it split from Abbott Laboratories it also split the distribution which, when combined, continued to grow at an impressive pace, while Lilly's was still frozen. Recent advances in leukemia and other blood cancers with venetoclax and Imbruvica should more than offset Humira losses, making AbbVie the better buy. | Pipeline focus Although I'd say AbbVie's existing product line is looking stronger than Lilly's, it's drugs in development that make investing in pharmaceuticals exciting. Pharmaceutical heavyweights AbbVie and Eli Lilly are both headquartered in the American Midwest, but their similarities stop there. Spun off from Abbott Laboratories in 2013, from a certain point of view AbbVie is an infant. |
26636.0 | 2016-03-16 00:00:00 UTC | Repros Gives EU Update on Secondary Hypogonadism Drug | ABBV | https://www.nasdaq.com/articles/repros-gives-eu-update-on-secondary-hypogonadism-drug-2016-03-16 | nan | nan | Repros Therapeutics Inc.RPRX announced that it has started the process of gaining EU approval for its lead pipeline candidate, enclomiphene, for the treatment of patients suffering from secondary hypogonadism.
Repros is seeking EU approval for enclomiphene through a central filing and therefore expects a response regarding the candidate's approval status by the fourth quarter of 2017.
We note that Repros' efforts to gain approval for enclomiphene in the U.S. for the treatment of secondary hypogonadism in overweight men wishing to restore normal testicular function suffered a setback with the FDA issuing a complete response letter (CRL).
The FDA stated in its CRL that by taking into account recent scientific developments, the design of the phase III studies on enclomiphene is no longer sufficient to prove clinical benefit. Therefore, the regulatory agency asked the company to conduct an additional phase III study or studies on the candidate in order to get it approved for the target population. The FDA also raised concerns regarding study entry criteria, titration and bioanalytical method validation of the phase III program.
In Jan 2016, Repros initiated a placebo-controlled, double-blind and proof-of-concept phase II study (ZA-205) on enclomiphene in obese secondary hypogonadal men to assess its impact on metabolic parameters and quality of life under a routine diet and exercise. Six-month data from this study is expected in the third quarter of 2016.
We note that enclomiphene will face intense competition from currently marketed testosterone replacement therapies, upon approval, some of which include AbbVie Inc.'s ABBV AndroGel and Allergan plc's AGN AndroDerm.
Considering that Repros has no approved product in its portfolio at the moment, and enclomiphene being its lead pipeline candidate, investor focus is expected to remain on updates pertaining to its development.
Repros carries a Zacks Rank #3 (Hold). Actelion Ltd. ALIOF 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. | We note that enclomiphene will face intense competition from currently marketed testosterone replacement therapies, upon approval, some of which include AbbVie Inc.'s ABBV AndroGel and Allergan plc's AGN AndroDerm. Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Repros' efforts to gain approval for enclomiphene in the U.S. for the treatment of secondary hypogonadism in overweight men wishing to restore normal testicular function suffered a setback with the FDA issuing a complete response letter (CRL). | Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that enclomiphene will face intense competition from currently marketed testosterone replacement therapies, upon approval, some of which include AbbVie Inc.'s ABBV AndroGel and Allergan plc's AGN AndroDerm. Repros Therapeutics Inc.RPRX announced that it has started the process of gaining EU approval for its lead pipeline candidate, enclomiphene, for the treatment of patients suffering from secondary hypogonadism. | Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that enclomiphene will face intense competition from currently marketed testosterone replacement therapies, upon approval, some of which include AbbVie Inc.'s ABBV AndroGel and Allergan plc's AGN AndroDerm. We note that Repros' efforts to gain approval for enclomiphene in the U.S. for the treatment of secondary hypogonadism in overweight men wishing to restore normal testicular function suffered a setback with the FDA issuing a complete response letter (CRL). | Click to get this free report ALLERGAN PLC (AGN): Free Stock Analysis Report ACTELION LTD (ALIOF): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that enclomiphene will face intense competition from currently marketed testosterone replacement therapies, upon approval, some of which include AbbVie Inc.'s ABBV AndroGel and Allergan plc's AGN AndroDerm. Repros is seeking EU approval for enclomiphene through a central filing and therefore expects a response regarding the candidate's approval status by the fourth quarter of 2017. |
26637.0 | 2016-03-16 00:00:00 UTC | iShares S&P 500 Growth ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/ishares-sp-500-growth-etf-experiences-big-outflow-2016-03-16 | 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 500 Growth ETF (Symbol: IVW) where we have detected an approximate $51.1 million dollar outflow -- that's a 0.4% decrease week over week (from 118,950,000 to 118,500,000). Among the largest underlying components of IVW, in trading today MasterCard Inc (Symbol: MA) is off about 0.1%, Biogen Inc (Symbol: BIIB) is up about 1.9%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $85.21 per share, with $119.85 as the 52 week high point - that compares with a last trade of $113.39. 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 IVW, in trading today MasterCard Inc (Symbol: MA) is off about 0.1%, Biogen Inc (Symbol: BIIB) is up about 1.9%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $85.21 per share, with $119.85 as the 52 week high point - that compares with a last trade of $113.39. 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 IVW, in trading today MasterCard Inc (Symbol: MA) is off about 0.1%, Biogen Inc (Symbol: BIIB) is up about 1.9%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $85.21 per share, with $119.85 as the 52 week high point - that compares with a last trade of $113.39. 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 IVW, in trading today MasterCard Inc (Symbol: MA) is off about 0.1%, Biogen Inc (Symbol: BIIB) is up about 1.9%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $51.1 million dollar outflow -- that's a 0.4% decrease week over week (from 118,950,000 to 118,500,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $85.21 per share, with $119.85 as the 52 week high point - that compares with a last trade of $113.39. | Among the largest underlying components of IVW, in trading today MasterCard Inc (Symbol: MA) is off about 0.1%, Biogen Inc (Symbol: BIIB) is up about 1.9%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $85.21 per share, with $119.85 as the 52 week high point - that compares with a last trade of $113.39. 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). |
26638.0 | 2016-03-16 00:00:00 UTC | Biotech Stock Roundup: GW Pharma Soars on Epidiolex Data, Gilead's Zydelig in Trouble? | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-gw-pharma-soars-epidiolex-data-gileads-zydelig-trouble-2016-03-16 | nan | nan | Once again, it was a rough week for the biotech sector with the NASDAQ Biotechnology Index declining 3.37% over the last five trading days. While companies like GW Pharma GWPH shot up on positive pipeline data, Orexigen OREX announced a couple of deals related to its obesity drug, Contrave.
Recap of the Week's Most Important Stories
1. GW Pharma's shares were up a whopping 120.2% on news that the company's lead cannabinoid pipeline candidate, Epidiolex, scored in a late-stage study. The study was conducted in patients with Dravet syndrome, a rare and debilitating type of epilepsy for which no treatments are currently approved in the U.S. The next step in the company's development plan is to set up a pre-NDA meeting with the FDA to discuss a potential regulatory application (Read More: GW Pharmaceuticals Skyrockets on Favorable Epilepsy Data ).
2. Orexigen, known for its branded obesity treatment, Contrave, announced that it will be terminating its collaboration agreement with Takeda for the drug. The termination of this deal will result in Orexigen acquiring U.S. rights to the drug. Orexigen also said that it is partnering with Valeant for the commercialization of Contrave (EU trade name: Mysimba) in 18 Central and Eastern European countries and Turkey. Valeant intends to start selling Mysimba in the second half of the year.
3. Is Gilead's GILD blood cancer drug, Zydelig, in trouble? Problems for the drug have cropped up with regulatory authorities in both the U.S. and the EU looking into safety concerns (a higher rate of serious adverse events including deaths, mostly due to infections, have been observed in studies being conducted in combination with other cancer medicines) associated with the drug (Read More: Gilead's Zydelig under EU Review amid Safety Concerns ).
The FDA has also issued alerts to healthcare professionals about the higher rate of adverse events. Moreover, Gilead said that it is halting 6 ongoing studies in patients with chronic lymphocytic leukemia, small lymphocytic lymphoma and indolent non-Hodgkin lymphomas. Negative findings could well put a stop to Gilead's plans to expand the drug's label for use in combination with other treatments.
4. Regeneron REGN and partner Sanofi came out with positive head-to-head data on their experimental rheumatoid arthritis treatment, sarilumab, compared to AbbVie's ABBV Humira. Sarilumab, which could well be Regeneron's next blockbuster, is currently under FDA review with a response expected later this year (Read More: Regeneron/Sanofi Report Positive Sarilumab Phase III Data ).
5. Sarepta's SRPT shares are up with the FDA announcing that an advisory panel will meet on Apr 25 to review the company's experimental Duchenne muscular dystrophy (DMD) treatment, eteplirsen. The FDA had previously cancelled an advisory panel meeting earlier this year due to bad weather. Briefing documents issued at that time were not favorable with the agency raising concerns about the drug's efficacy.
We remind investors that experimental DMD treatments have not exactly fared well on the regulatory front -- while BioMarin got a complete response letter from the FDA for Kyndrisa in January, the agency issued a "refusal to file" letter for PTC Therapeutics' experimental DMD treatment, Translarna in February.
Performance
Most major biotech stocks lost ground last week with Regeneron declining 6.99% while Gilead gained 0.88%. Meanwhile, Vertex VRTX lost 38.85% over the last six months (See the last biotech stock roundup here: AbbVie's Imbruvica Label Expanded, Celldex Slumps on Study Update ).
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. | Regeneron REGN and partner Sanofi came out with positive head-to-head data on their experimental rheumatoid arthritis treatment, sarilumab, compared to AbbVie's ABBV Humira. Meanwhile, Vertex VRTX lost 38.85% over the last six months (See the last biotech stock roundup here: AbbVie's Imbruvica Label Expanded, Celldex Slumps on Study Update ). Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report OREXIGEN THERAP (OREX): 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 SAREPTA THERAP (SRPT): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report OREXIGEN THERAP (OREX): 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 SAREPTA THERAP (SRPT): Free Stock Analysis Report To read this article on Zacks.com click here. Regeneron REGN and partner Sanofi came out with positive head-to-head data on their experimental rheumatoid arthritis treatment, sarilumab, compared to AbbVie's ABBV Humira. Meanwhile, Vertex VRTX lost 38.85% over the last six months (See the last biotech stock roundup here: AbbVie's Imbruvica Label Expanded, Celldex Slumps on Study Update ). | Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report OREXIGEN THERAP (OREX): 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 SAREPTA THERAP (SRPT): Free Stock Analysis Report To read this article on Zacks.com click here. Regeneron REGN and partner Sanofi came out with positive head-to-head data on their experimental rheumatoid arthritis treatment, sarilumab, compared to AbbVie's ABBV Humira. Meanwhile, Vertex VRTX lost 38.85% over the last six months (See the last biotech stock roundup here: AbbVie's Imbruvica Label Expanded, Celldex Slumps on Study Update ). | Click to get this free report VERTEX PHARM (VRTX): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report OREXIGEN THERAP (OREX): 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 SAREPTA THERAP (SRPT): Free Stock Analysis Report To read this article on Zacks.com click here. Regeneron REGN and partner Sanofi came out with positive head-to-head data on their experimental rheumatoid arthritis treatment, sarilumab, compared to AbbVie's ABBV Humira. Meanwhile, Vertex VRTX lost 38.85% over the last six months (See the last biotech stock roundup here: AbbVie's Imbruvica Label Expanded, Celldex Slumps on Study Update ). |
26639.0 | 2016-03-14 00:00:00 UTC | Why AbbVie is a Top 25 SAFE Dividend Stock (ABBV) | ABBV | https://www.nasdaq.com/articles/why-abbvie-top-25-safe-dividend-stock-abbv-2016-03-14 | nan | nan | AbbVie Inc. (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.0% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel , AbbVie Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.27% of the SPDR S&P Dividend ETF ( SDY ), which holds $161,149,471 worth of ABBV shares.
AbbVie Inc. (Symbol: ABBV) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S . Solid return - hefty yield and strong DividendRank characteristics; A. Accelerating amount - consistent dividend increases over time; F . Flawless history - never a missed or lowered dividend; E. Enduring - at least two decades of dividend payments.
The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/13/2016. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson ( JNJ ), and Pfizer Inc ( PFE ).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. AbbVie Inc. (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel , AbbVie Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.27% of the SPDR S&P Dividend ETF ( SDY ), which holds $161,149,471 worth of ABBV shares. | AbbVie Inc. (Symbol: ABBV) made the "Dividend Channel S.A.F.E. AbbVie Inc. (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel , AbbVie Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.27% of the SPDR S&P Dividend ETF ( SDY ), which holds $161,149,471 worth of ABBV shares. | According to the ETF Finder at ETF Channel , AbbVie Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.27% of the SPDR S&P Dividend ETF ( SDY ), which holds $161,149,471 worth of ABBV shares. AbbVie Inc. (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. AbbVie Inc. (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | AbbVie Inc. (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel , AbbVie Inc. is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.27% of the SPDR S&P Dividend ETF ( SDY ), which holds $161,149,471 worth of ABBV shares. AbbVie Inc. (Symbol: ABBV) made the "Dividend Channel S.A.F.E. |
26640.0 | 2016-03-14 00:00:00 UTC | Colgate-Palmolive Company (CL) Tops 7 Dividend Stocks Increasing Payouts | ABBV | https://www.nasdaq.com/articles/colgate-palmolive-company-cl-tops-7-dividend-stocks-increasing-payouts-2016-03-14 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The past four weeks have been very good to stocks, which is particularly encouraging for the bulls after the rancid start to 2016.
Amidst the changing tide of bias from bear to bull during the past several weeks, there's been a constant parade of high-profile dividend stocks increasing payouts.
Last week, the parade continued with several huge companies increasing payouts and adding to their respective dividend yield, including a massive consumer products maker and one of the largest food producers in the world.
Here are seven dividend stocks increasing payouts.
Alexandria Real Estate Equities ( ARE ) increased the vitality of its quarterly payment by 3.9% to 80 cents per share from 77 cents. The life sciences REIT will begin its new, healthier payout on April 15 to shareholders of record as of March 31. ARE shares will become ex-dividend on March 29.
ARE Dividend Yield : 3.75%
10 Companies With Dangerous Dividends
Colgate-Palmolive ( CL ) added a penny more flavor, or 2.6%, to its dividend paste to 39 cents per share from 38 cents. The leading consumer products maker will put its new dividend in shareholder medicine cabinets on May 16 to owners of record as of April 22. The stock becomes ex-dividend on April 20.
CL Dividend Yield : 2.28%
Dollar General ( DG ) added 13.6% more dollars to its quarterly payment to 25 cents per share from 22 cents. The discount variety retailer will make its new dividend payable on April 12 to shareholders of record as of March 29. DG shares will officially be ex-dividend on March 24.
DG Dividend Yield : 1.18%
General Mills ( GIS ) served up a 4.5% bigger helping of quarterly dividends to 46 cents per share from 44 cents. The consumer and packaged foods giant will box its bigger dividend cereal box on May 2 to shareholders of record as of April 11. The shares will become ex-dividend on April 7.
GIS Dividend Yield : 3.01%
Piedmont Natural Gas ( PNY ) announced it will distribute a 3% bigger dividend to shareholders to 34 cents per share from 33 cents. The natural gas distributor will send its new dividend on April 15 to shareholders of record as of March 25. Piedmont shares will become ex-dividend on March 22.
PNY Dividend Yield : 2.28%
SpartanNash Co. ( SPTN ) restocked shareholder shelves with an 11.1% bigger dividend to 15 cents per share from 13.5 cents. The retail supermarket and discount drug retailer said it would make the new dividend payable March 31 to shareholders of record as of March 21. Spartan shares will go ex-dividend on March 17.
SPTN Dividend Yield : 2.04%
Vail Resorts ( MTN ) gave back a bigger bonus to shareholders of 30% to 81 cents per share from 62.25 cents. The resort management and real estate firm announced that its new dividend will be ready for occupation on April 13 to shareholders of record as of March 29. MTN shares will become ex-dividend on March 24.
MTN Dividend Yield : 2.47%
As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.
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The post Colgate-Palmolive Company (CL) Tops 7 Dividend Stocks Increasing Payouts 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. | More From InvestorPlace 5 Big Dividend Investing Mistakes (and How to Avoid Them)AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4%Dividend Stocks: AAPL And 2 Other Stocks Are Future Dynamos (BLK, RHI) The post Colgate-Palmolive Company (CL) Tops 7 Dividend Stocks Increasing Payouts appeared first on InvestorPlace . Amidst the changing tide of bias from bear to bull during the past several weeks, there's been a constant parade of high-profile dividend stocks increasing payouts. Last week, the parade continued with several huge companies increasing payouts and adding to their respective dividend yield, including a massive consumer products maker and one of the largest food producers in the world. | More From InvestorPlace 5 Big Dividend Investing Mistakes (and How to Avoid Them)AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4%Dividend Stocks: AAPL And 2 Other Stocks Are Future Dynamos (BLK, RHI) The post Colgate-Palmolive Company (CL) Tops 7 Dividend Stocks Increasing Payouts appeared first on InvestorPlace . CL Dividend Yield : 2.28% Dollar General ( DG ) added 13.6% more dollars to its quarterly payment to 25 cents per share from 22 cents. DG Dividend Yield : 1.18% General Mills ( GIS ) served up a 4.5% bigger helping of quarterly dividends to 46 cents per share from 44 cents. | More From InvestorPlace 5 Big Dividend Investing Mistakes (and How to Avoid Them)AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4%Dividend Stocks: AAPL And 2 Other Stocks Are Future Dynamos (BLK, RHI) The post Colgate-Palmolive Company (CL) Tops 7 Dividend Stocks Increasing Payouts appeared first on InvestorPlace . ARE Dividend Yield : 3.75% 10 Companies With Dangerous Dividends Colgate-Palmolive ( CL ) added a penny more flavor, or 2.6%, to its dividend paste to 39 cents per share from 38 cents. GIS Dividend Yield : 3.01% Piedmont Natural Gas ( PNY ) announced it will distribute a 3% bigger dividend to shareholders to 34 cents per share from 33 cents. | More From InvestorPlace 5 Big Dividend Investing Mistakes (and How to Avoid Them)AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4%Dividend Stocks: AAPL And 2 Other Stocks Are Future Dynamos (BLK, RHI) The post Colgate-Palmolive Company (CL) Tops 7 Dividend Stocks Increasing Payouts appeared first on InvestorPlace . The stock becomes ex-dividend on April 20. The natural gas distributor will send its new dividend on April 15 to shareholders of record as of March 25. |
26641.0 | 2016-03-14 00:00:00 UTC | Regeneron/Sanofi Report Positive Sarilumab Phase III Data | ABBV | https://www.nasdaq.com/articles/regeneron-sanofi-report-positive-sarilumab-phase-iii-data-2016-03-14 | nan | nan | Regeneron Pharmaceuticals, Inc.REGN and Sanofi SNY announced encouraging top-line data from a phase III monotherapy study (SARIL-RA-MONARCH) on their rheumatoid arthritis (RA) candidate, sarilumab.
The study included patients suffering from active RA who responded inadequately to, intolerant of, or inappropriate for methotrexate treatment. In the study, patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks).
Results showed that sarilumab was found to be superior to Humira in improving signs and symptoms in patients with active RA at week 24, thereby meeting the primary endpoint of the study. The study also met important secondary endpoints including other measures assessing improvements in signs and symptoms of RA and physical function. A regulatory filing in the EU is slated for the third quarter of 2016.
The SARIL-RA-MONARCH study is part of the broad phase III SARIL-RA program to evaluate sarilumab in seven studies in patients with moderate-to-severe RA. While four studies have been completed, the three remaining studies including SARIL-RA-MONARCH are currently in progress.
We note that sarilumab, which is an anti interleukin-6 receptor monoclonal antibody, is currently under FDA review for the treatment of patients suffering from active, moderate-to-severe RA. A response from the FDA is expected by Oct 30, 2016.
While Regeneron is a Zacks Rank #5 (Strong Sell) stock, Sanofi carries a Zacks Rank #3 (Hold). AMAG Pharmaceuticals, Inc. AMAG is a better-ranked stock in the health care sector, 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. | In the study, patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Regeneron Pharmaceuticals, Inc.REGN and Sanofi SNY announced encouraging top-line data from a phase III monotherapy study (SARIL-RA-MONARCH) on their rheumatoid arthritis (RA) candidate, sarilumab. | In the study, patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In the study, patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). Results showed that sarilumab was found to be superior to Humira in improving signs and symptoms in patients with active RA at week 24, thereby meeting the primary endpoint of the study. | In the study, patients were randomized to receive either a subcutaneous sarilumab monotherapy (200 mg every 2 weeks) or AbbVie Inc.'s ABBV Humira (adalimumab) monotherapy (40 mg every 2 weeks). Click to get this free report SANOFI-AVENTIS (SNY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Results showed that sarilumab was found to be superior to Humira in improving signs and symptoms in patients with active RA at week 24, thereby meeting the primary endpoint of the study. |
26642.0 | 2016-03-11 00:00:00 UTC | Instant Analysis: Regeneron Pharmaceuticals and Sanofi's Experimental Drug Bests an AbbVie Blockbust | ABBV | https://www.nasdaq.com/articles/instant-analysis-regeneron-pharmaceuticals-and-sanofis-experimental-drug-bests-abbvie | nan | nan | Of course, AbbVie didn't sell $14 billion worth of Humira based on its RA indication alone, as the drug is labeled to treat a huge number of other diseases. Humira is also approved to treat Plaque Psoriasis, Anklosing Spondylitis, Hidradenitis Suppurativa, Crohn's Disease, and more, so even if sarilumab does manage to win regulatory approval and steal some RA market share, it's not like Humira sales will crater.
It should be noted that the data from the study wasn't flawless, either. Patients who used sarilumab instead of Humira had a much higher risk of developing both Neutropenia -- or low white blood cell count -- and injection site erythema. That data could help AbbVie convince some providers that Humira is still the best treatment option for patients with RA, which could also work to stem any potential decline.
Still, Regeneron Pharmaceuticals and Sanofi certainly have the resources and skill to effectually launch sarilumab should it win approval. The FDA is currently reviewing sarilumab for approval and has set a target decision date of October 30, 2016, so it could be on the market by the end of the year. With analysts calling for peak sales for sarilumab to top $1 billion, this is a drug that AbbVie and Regeneron Pharmaceutical shareholders alike should keep on their radar.
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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. | Of course, AbbVie didn't sell $14 billion worth of Humira based on its RA indication alone, as the drug is labeled to treat a huge number of other diseases. That data could help AbbVie convince some providers that Humira is still the best treatment option for patients with RA, which could also work to stem any potential decline. With analysts calling for peak sales for sarilumab to top $1 billion, this is a drug that AbbVie and Regeneron Pharmaceutical shareholders alike should keep on their radar. | With analysts calling for peak sales for sarilumab to top $1 billion, this is a drug that AbbVie and Regeneron Pharmaceutical shareholders alike should keep on their radar. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Of course, AbbVie didn't sell $14 billion worth of Humira based on its RA indication alone, as the drug is labeled to treat a huge number of other diseases. | Of course, AbbVie didn't sell $14 billion worth of Humira based on its RA indication alone, as the drug is labeled to treat a huge number of other diseases. That data could help AbbVie convince some providers that Humira is still the best treatment option for patients with RA, which could also work to stem any potential decline. With analysts calling for peak sales for sarilumab to top $1 billion, this is a drug that AbbVie and Regeneron Pharmaceutical shareholders alike should keep on their radar. | Of course, AbbVie didn't sell $14 billion worth of Humira based on its RA indication alone, as the drug is labeled to treat a huge number of other diseases. That data could help AbbVie convince some providers that Humira is still the best treatment option for patients with RA, which could also work to stem any potential decline. With analysts calling for peak sales for sarilumab to top $1 billion, this is a drug that AbbVie and Regeneron Pharmaceutical shareholders alike should keep on their radar. |
26643.0 | 2016-03-10 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, Vertex, Celldex and Celgene | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-vertex-celldex-and-celgene-2016-03-10 | nan | nan | For Immediate Release
Chicago, IL - March 10, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include AbbVie ( ABBV ), Vertex ( VRTX ), Celldex ( CLDX ) and Celgene ( CELG ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday's Analyst Blog:
Biotech Stock Roundup
Issues like drug pricing, drug re-importation and Obamacare were in focus last week with Republican presidential candidate Donald Trump revealing his plans for healthcare reform. Meanwhile, companies like AbbVie ( ABBV ) and Vertex ( VRTX ) announced encouraging regulatory updates.
Recap of the Week's Most Important Stories
1. AbbVie signed a deal worth at least $595 million to boost its immunology pipeline. The deal with Boehringer Ingelheim provides AbbVie with a late-stage candidate for psoriasis and an early-stage candidate (Read More: AbbVie's Boehringer Deal to Boost Immunology Pipeline ).
AbbVie had another set of important news last week - the company said that its cancer treatment, Imbruvica (often referred to as a "pipeline in a molecule"), can now be used for the first-line treatment of patients suffering from chronic lymphocytic leukemia. This is the fifth indication for Imbruvica. Approval was based on phase III data which showed an 84% reduction in the risk of progression of death in the Imbruvica arm compared to chlorambucil.
Approval for first-line treatment will expand the patient population significantly. According to information provided in the press release, there are about 115,000 CLL patients in the U.S. with 15,000 new patients getting diagnosed every year.
2. Celldex's ( CLDX ) shares plunged 53.7% and touched a 52-week low on the company's announcement that it will be discontinuing a late-stage study on its lead pipeline candidate, Rintega. The company's decision was based on the recommendation of an independent Data Safety and Monitoring Board (DSMB) -- a pre-planned interim analysis of the study, which was being conducted in patients with newly diagnosed EGFRvIII-positive glioblastoma, showed that Rintega would not achieve statistical significance for overall survival, the primary endpoint.
3. Vertex's cystic fibrosis (CF) treatment, Orkambi, gained approval in Australia for use in people 12 years and above who have two copies of the F508del mutation. With this approval, the eligible patient population for Orkambi increases by around 1,000 people. The Australian reimbursement process has already started with additional information regarding the same expected next month.
Vertex is currently working on getting Orkambi approved for use in children (6 - 11 years old). The company intends to file for label expansion in the U.S., where about 2,400 children fall in this category, in the second quarter of 2016.
4. Celgene ( CELG ) is facing a patent challenge for one of its key products - Abraxane. Abraxane, which contributed $967.5 million to Celgene's top-line in 2015, is currently being evaluated for several types of solid tumors and also has the potential to be a part of immuno-oncology combination regimens. Needless to say, Celgene intends to defend its intellectual property rights covering Abraxane.
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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 AbbVie ( ABBV ), Vertex ( VRTX ), Celldex ( CLDX ) and Celgene ( CELG ). Meanwhile, companies like AbbVie ( ABBV ) and Vertex ( VRTX ) announced encouraging regulatory updates. AbbVie signed a deal worth at least $595 million to boost its immunology pipeline. | Stocks recently featured in the blog include AbbVie ( ABBV ), Vertex ( VRTX ), Celldex ( CLDX ) and Celgene ( CELG ). Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report CELLDEX THERAPT (CLDX): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, companies like AbbVie ( ABBV ) and Vertex ( VRTX ) announced encouraging regulatory updates. | AbbVie had another set of important news last week - the company said that its cancer treatment, Imbruvica (often referred to as a "pipeline in a molecule"), can now be used for the first-line treatment of patients suffering from chronic lymphocytic leukemia. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report CELLDEX THERAPT (CLDX): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include AbbVie ( ABBV ), Vertex ( VRTX ), Celldex ( CLDX ) and Celgene ( CELG ). | Stocks recently featured in the blog include AbbVie ( ABBV ), Vertex ( VRTX ), Celldex ( CLDX ) and Celgene ( CELG ). Meanwhile, companies like AbbVie ( ABBV ) and Vertex ( VRTX ) announced encouraging regulatory updates. AbbVie signed a deal worth at least $595 million to boost its immunology pipeline. |
26644.0 | 2016-03-10 00:00:00 UTC | AbbVie Inc (ABBV) Is About to Steamroll the Competition | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-is-about-to-steamroll-the-competition-2016-03-10 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc ( ABBV ) is the producer of Humira, the best-selling drug in the world in 2014, and certainly one of the top drugs of all time. In 2014, total sales for Humira were $12.5 billion; in 2015, sales were just over $14 billion.
Notably, Humira and several of the other top drugs, focus on autoimmune diseases, such as rheumatoid arthritis, Crohn's, psoriasis and ulcerative colitis. All of these diseases are becoming more prominent as the massive baby boomer generation matures - this major trend has placed ABBV ahead of the pack.
Adding to its sales strength is the fact that Humira is in a new class of drugs called 'biologics', which means it's made from animal proteins or bacteria. This makes the drug harder for generic firms to copy. And that's a good thing, given that Humira comes off patent later this year .
ABBV also has broadened the uses for Humira across a number of autoimmune diseases, and will retain some patent protection in specific areas beyond 2016.
That said, AbbVie isn't resting on its laurels. It is also moving aggressively into another highly profitable pharmaceutical area: Hepatitis C. Gilead Sciences, Inc. ( GILD ) is now the reigning champ in the HCV category, but ABBV is closing fast.
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HCV treatment is extremely expensive - $84,000 to $94,000 for an 12-week treatment using GILD drugs - but it's also 90% effective . Insurers are going along with the price since the alternative is paying for liver transplants and other chronic issues if the HCV is untreated. A liver transplant is more than $500,000 when considering necessary post-transplant procedures.
Good Fortunes for ABBV Ahead?
AbbVie is just about to enter the area with Viekira Pak : A once-daily HCV treatment that is said to slightly more effective than its competitor. Pricing will be competitive and it's certain to gain market share.
Also, just in the past few days ABBV announced that it entered a strategic deal for marketing rights to two experimental psoriasis drugs produced by Boehringer Ingelheim Pharmaceuticals, Inc .
For one of the drugs that is entering phase III trials now, ABBV has paid $595 million up front for rights to sell it.
Both drugs are biologics and seem to take a novel approach to helping the body manage these autoimmune issues. And if they're anywhere close to as effective as Humira, ABBV is going to dominate these categories for a long time to come.
The deal is very smart, since instead of competing with new contenders to Humira, it can gain market share in the space as Humira comes off patent. And given that it can cost up to $2 billion to take a drug through drug trials, getting a promising phase III candidate for a mere $595 million is a pretty good deal.
The psoriasis market was worth more than $30 billion in sales last year and given the increase in autoimmune diseases, this is going to be a strong market for decades to come. This is good news for ABBV stock, as the pharmaceutical company is well positioned to dominate.
Richard Band'sProfitable Investing advisory service helps retirement savers outperform the market without losing a minute of sleep along the way. His straightforward style and low-risk value approach has won seven Best Financial Advisory awards from the Newsletter and Electronic Publishers Foundation.
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The post AbbVie Inc (ABBV) Is About to Steamroll the Competition appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is also moving aggressively into another highly profitable pharmaceutical area: Hepatitis C. Gilead Sciences, Inc. ( GILD ) is now the reigning champ in the HCV category, but ABBV is closing fast. Also, just in the past few days ABBV announced that it entered a strategic deal for marketing rights to two experimental psoriasis drugs produced by Boehringer Ingelheim Pharmaceuticals, Inc . InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is the producer of Humira, the best-selling drug in the world in 2014, and certainly one of the top drugs of all time. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is the producer of Humira, the best-selling drug in the world in 2014, and certainly one of the top drugs of all time. Also, just in the past few days ABBV announced that it entered a strategic deal for marketing rights to two experimental psoriasis drugs produced by Boehringer Ingelheim Pharmaceuticals, Inc . For one of the drugs that is entering phase III trials now, ABBV has paid $595 million up front for rights to sell it. | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is the producer of Humira, the best-selling drug in the world in 2014, and certainly one of the top drugs of all time. Also, just in the past few days ABBV announced that it entered a strategic deal for marketing rights to two experimental psoriasis drugs produced by Boehringer Ingelheim Pharmaceuticals, Inc . More From InvestorPlace 9 Small Caps That Will Lead the Market Back5 Stocks to Buy for March7 A-Rated Tech Stocks to Buy Now The post AbbVie Inc (ABBV) Is About to Steamroll the Competition appeared first on InvestorPlace . | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is the producer of Humira, the best-selling drug in the world in 2014, and certainly one of the top drugs of all time. All of these diseases are becoming more prominent as the massive baby boomer generation matures - this major trend has placed ABBV ahead of the pack. ABBV also has broadened the uses for Humira across a number of autoimmune diseases, and will retain some patent protection in specific areas beyond 2016. |
26645.0 | 2016-03-10 00:00:00 UTC | AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4% | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv%3A-a-cheap-dividend-aristocrat-yielding-over-4-2016-03-10 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc ( ABBV ) is one of the more controversial dividend aristocrats for several reasons. As a relatively new spin-off (2013), the company has a much shorter dividend growth track record than traditional aristocrats.
The bigger challenge, however, is AbbVie's profit drivers. Most dividend aristocrats possess the characters we desire when searching for safe dividend stocks . They have entrenched market positions, compete in slow-changing industries, and generate cash flow from many different products and industries.
In AbbVie's case, over half of its business is concentrated in one product. While this can work for some companies that have powerful brands (e.g. Clorox ( CLX ) or Coca-Cola ( KO )), it's a risk in AbbVie's market of branded pharmaceutical drugs and makes the stock less desirable for our Top 20 Dividend Stocks portfolio .
However, the stock's safe 4.1% dividend yield, relatively cheap forward earnings multiple of 11.1, and above-average earnings growth prospects over the next few years make it worth a closer look.
AbbVie Business Overview
AbbVie was spun off from Abbott Laboratories on January 1, 2013, as a standalone biopharmaceutical company. Approximately 61% of the company's revenue comes from sales of Humira, a drug that treats arthritis. Some of its other major drugs are Imbruvica, which treats leukemia, and Viekira, which treats hepatitis C. The company reported nearly $23 billion in sales last year and sells its drugs in over 170 countries.
AbbVie Business Analysis
The branded pharmaceuticals industry has extremely high barriers to entry and offers potential for juicy profit margins - AbbVie generated a 33% operating margin last year and targets a 50% margin by 2020. Major pharma players invest billions of dollars and years of time in research and development to commercialize breakthrough drugs.
While the success rate is low, a successful drug can generate billions in profits that are protected for many years as a result of the intellectual property owned by the manufacturer. As seen below, AbbVie's primary markets combine to reach nearly $200 billion in size, providing the company with many different opportunities for growth.
Source: AbbVie Investor Presentation
AbbVie's management team expects the company to reach $37 billion in sales by 2020, which would represent more than a 60% increase from 2015's revenue level. Of this total, roughly half of total sales would come from the company's arthritis drug Humira, and another 13.5% would come from sales of leukemia drug Imbruvica.
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AbbVie also expects to launch over 20 new products by 2020 to reach to its goals and believes that its current pipeline has potential to achieve revenues of nearly $30 billion by 2024. As growth continues, operating margins are expected to expand by 100-200 basis points per year to drive double-digit earnings growth.
The company's success will hinge on the success of its drug pipeline and its ability to protect cash flows from Humira for as long as possible from biosimilar competitors.
AbbVie's Key Risks
We prefer to invest in pharmaceuticals that have diversified streams of income from their drugs. It's very hard for a complete outsider to forecast the timing and profitability of a company's drug pipeline, so finding businesses with enough diversification helps reduce this risk.
Johnson & Johnson ( JNJ ) is a great example. While pharmaceuticals drive over half of the company's profits, it is well diversified by drug and gets reliable cash flows from its consumer products and medical devices segments. The flop of any one drug will not endanger the business. You can read our analysis of Johnson & Johnson by clicking here .
On the other hand, AbbVie is much more concentrated. Sales of Humira accounted for over 60% of sales last year and are expected to represent nearly 50% of revenue by 2020 as well. AbbVie's composition of matter patents for Humira expire in the U.S. and Europe in December 2016 and October 2018, respectively.
However, the company hopes that it can litigate against biosimilar manufacturers of Humira for at least four or five years based on industry norms and its non-composition of matter patents. These patents covers area such as manufacturing and formulation and do not begin to expire until 2022.
The company obviously hopes to use these patents to litigate against new biosimilar competition for Humira, and it was successful earlier this year in defending against a patent review case filed by Amgen last year. If successful, AbbVie believes it can maintain strong profitability in the U.S. through 2022, but there is plenty of skepticism surrounding the matter.
Regardless of the ultimate timing, branded drugs cannot maintain their high profit margins forever. As patents expire, lower-cost competition emerges with knock-offs that quickly erode sales and margins. If new drugs have not been successful in the pipeline, earnings can erode very quickly.
This is a key point of controversy surrounding the stock. While management believes Humira sales can exceed $18 billion in 2020, some analysts see Humira revenue coming up at least 30% short of management's ambitions. AbbVie's forecast assumes that biosimilar versions of Humira will stay out of the U.S. until 2022, whereas some analysts see competition emerging in 2019 .
In addition to the risk posed by Humira's large contribution to company profits, the Food and Drug Administration (FDA) can also pose unexpected challenges. For example, during one week in October 2015, AbbVie's stock fell by more than 10% after the FDA warned that AbbVie's Viekira treatment caused liver injury to a small number of patients.
You just never know what might crop up any given week as it relates to new competition, unexpected developments in the drug pipeline, litigation, or other issues with existing treatments. For these reasons, we generally prefer to invest elsewhere in the market.
AbbVie Dividend Analysis
We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a dividend. ABBV's long-term dividend and fundamental data charts can all be seen by clicking here .
AbbVie Dividend Safety Score
Our Safety Score answers the question, "Is the current dividend payment safe?" We look at factors such as current and historical EPS and FCF payout ratios, debt levels, free cash flow generation, industry cyclicality, ROIC trends, and more. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.
For the time being, AbbVie's dividend payment is extremely safe. The company received a Dividend Safety Score of 78, which is excellent and places it in the top quartile of dividend-paying stocks.
AbbVie's free cash flow payout ratio over the last 12 months is a healthy 49%, which is roughly in line with the company's payout ratios realized since it was spun off in 2013. Given AbbVie's strong outlook over the next few years for continued growth, we think its payout ratio is very healthy for the time being.
Source: Simply Safe Dividends
In addition to its healthy payout ratio, AbbVie has generated sales growth in each of the last five years. We don't have data that goes back to the last recession, but pharma companies are generally recession-resistant because consumers still need to treat their illnesses regardless of how the economy is doing. The bigger risk to sales cyclicality is patent expirations of major drugs such as Humira. AbbVie needs to develop new drugs that can eventually replace those sales or else it could see a steep revenue decline that could endanger the dividend.
Source: Simply Safe Dividends
As we mentioned earlier, pharma manufacturers generate excellent free cash flow when they successfully commercial a major drug. Years of research and development spending has already been realized, so the company gets to enjoy healthy profits. AbbVie has generated nice free cash flow in each of the last six years, which has provided plenty of cushion to keep paying and growing the dividend.
Source: Simply Safe Dividends
Few businesses can generate operating margins in the teens, much less in the 30% range like AbbVie has done. Management expects margins to hit 50% by 2020, highlighting the extreme profitability enjoyed by pharma companies. High returns allow companies to compound their earnings faster and are usually a sign of competitive advantage (intellectual property and drug development expertise, in this case).
Source: Simply Safe Dividends
Some investors have expressed concern about AbbVie's balance sheet. At first glance, the company's $31.7 billion debt burden, largely resulting from AbbVie's $21 billion acquisition of Pharmacyclics in 2015, does raise some eyebrows.
However, AbbVie could cover all of its debt using the $8.4 billion it has in cash and about 3.1 years' worth of earnings before interest and taxes (EBIT), which is reasonably healthy. Standard & Poor's and Morningstar have given the company A and A- credit ratings, respectively. We would like to see AbbVie reduce its debt over the next few years while it is generating strong free cash flow from Humira. If Humira's revenue unexpectedly shrinks over the next five years, the balance sheet could become strained.
Source: Simply Safe Dividends
Overall, AbbVie's dividend looks very safe at the moment. The company has a healthy payout ratio, generates plenty of free cash flow, and is enjoying double-digit earnings growth.
However, the trajectory that Humira's revenue takes beyond the next few years, coupled with developments in AbbVie's drug pipeline, will significantly impact the safety of the dividend from 2020 and beyond.
AbbVie Dividend Growth Score
Our Growth Score answers the question, "How fast is the dividend likely to grow?" It considers many of the same fundamental factors as the Safety Score but places more weight on growth-centric metrics like sales and earnings growth and payout ratios. Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak.
AbbVie's Dividend Growth score of 89 is excellent. The company last increased its dividend by 12% in October 2015 and is included on the dividend aristocrats list despite being spun off at the start of 2013, when it continued its dividend growth streak as an independent business.
Abbott Laboratories, which spun off AbbVie, has a dividend growth streak of more than 40 consecutive years and is the reason why AbbVie is considered a dividend aristocrat. With that said, AbbVie has increased its dividend by 42% since 2013 with increases each year.
We believe AbbVie will continue recording at least a high-single dividend growth rate for the next few years. Growth will be fueled by the company's reasonable free cash flow payout ratio of 49% and strong business fundamentals as drug sales and margins are expected to increase significantly through 2020.
The main wild card impacting future dividend growth beyond the next few years is the rise of Humira competition, which could come as early as 2019 or as late as 2022. We will re-evaluate AbbVie's dividend growth potential as that time draws nearer.
ABBV Stock Valuation
ABBV's stock trades at 11.1x forward earnings estimates and has a dividend yield of 4.1%. For a stock with above-average growth prospects over the next few years, it appears to be very reasonably priced.
The seemingly low expectations attached to the stock are a reflection of investors' concerns about AbbVie's concentration in its Humira drug, which is set to experience competition in the U.S. market sometime over the next three to six years. With its European patent set to expire in 2018 as well, growth in international markets could also slow.
However, Evercore ISI's analyst Mark Schoenebaum estimated that AbbVie's 2020 guidance for sales and margins implies adjusted earnings per share of approximately $8.80. He applied a 16x P/E ratio to his estimate of 2020 earnings and discounted it back to 2015 using a 9% discount rate. The stock price resulting from his analysis was about $100 per share, which is nearly 100% higher than AbbVie's most recent closing price.
With expectations for double-digit earnings growth through 2020, AbbVie's total return potential certainly looks attractive at first glance. However, dividend investors must be willing to accept the higher uncertainty surrounding the company's cash flows beyond 2020.
AbbVie Conclusion: Look to Other Blue Chip Dividend Stocks
While the market's expectations seem to bake in a good amount of caution today, it's still hard to get comfortable with AbbVie's competitive landscape over the next five years. The key issue is how long the company's Humira drug can profit in the U.S. before biosimilar competition emerges. The difference of just a few years could really make or break the stock's performance over the coming years.
Unfortunately, we don't have an edge when it comes to analyzing this risk, nor do we have a comfortable method of evaluating AbbVie's large pipeline of new drugs that will launch over the next five years. The stock looks set to be a big winner if it delivers on management's 2020 goals (it trades for less than 7x implied 2020 earnings per share today), but we would ultimately prefer to stick with other blue chip dividend stocks that offer greater profit diversification and a slower pace of industry change.
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The post AbbVie (ABBV): A Cheap Dividend Aristocrat Yielding Over 4% appeared first on Simply Safe Dividends .
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The post AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4% 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 seemingly low expectations attached to the stock are a reflection of investors' concerns about AbbVie's concentration in its Humira drug, which is set to experience competition in the U.S. market sometime over the next three to six years. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is one of the more controversial dividend aristocrats for several reasons. The bigger challenge, however, is AbbVie's profit drivers. | More From InvestorPlace The 10 Best Index Funds to Buy No Matter WHAT the Market Is Doing10 Cheap Dividend Stocks to Buy10 Stocks to Buy and Hold Forever The post AbbVie Inc (ABBV): A Cheap Dividend Aristocrat Yielding Over 4% appeared first on InvestorPlace . InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is one of the more controversial dividend aristocrats for several reasons. The bigger challenge, however, is AbbVie's profit drivers. | AbbVie Dividend Analysis We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a dividend. Abbott Laboratories, which spun off AbbVie, has a dividend growth streak of more than 40 consecutive years and is the reason why AbbVie is considered a dividend aristocrat. AbbVie Conclusion: Look to Other Blue Chip Dividend Stocks While the market's expectations seem to bake in a good amount of caution today, it's still hard to get comfortable with AbbVie's competitive landscape over the next five years. | Source: Simply Safe Dividends In addition to its healthy payout ratio, AbbVie has generated sales growth in each of the last five years. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc ( ABBV ) is one of the more controversial dividend aristocrats for several reasons. The bigger challenge, however, is AbbVie's profit drivers. |
26646.0 | 2016-03-09 00:00:00 UTC | Is U.S. Demand for New Hepatitis C Drugs About to Explode? | ABBV | https://www.nasdaq.com/articles/us-demand-new-hepatitis-c-drugs-about-explode-2016-03-09 | nan | nan | Image source: Flickr user Bill Brooks.
Last year the Senate Finance Committee spent a lot of time investigating whether or not Gilead Sciences intended to maximize revenue from its franchise of groundbreaking hepatitis treatments. Surprising nobody, the investigation concluded maximizing revenue was indeed Gilead's goal, but it also unearthed some startling facts about coverage restrictions.
An underserved population
The low percentage of infected patients treated in 2014 is stunning. An estimated 2.7 million Americans are infected with hepatitis C. Just over a third of the population is covered by Medicaid or Medicare. That year less than 2.4% of roughly 700,000 Medicaid enrollees with Hepatitis C were treated with Sovaldi. In a seperate disclosure from Medicare, just 57,397 beneficiaries were treated with Sovaldi, Harvoni, or the now obsolete Olysio.
More recent data would be helpful, but given the numbers made available by the government, the addressable population was clearly underserved, and probably still is. The thing about hepatitis C is that many patients don't suffer any symptoms for years, but they're able to infect others. The responsible thing to do would be to treat as many as possible, as soon as possible.
Unfortunately, economic constraints make treating everyone today unfeasible. Many states with already overstretched Medicaid budgets have been rationing treatment only to those in dire need. It seems private insurers have taken state mandated restrictions as a cue to do the same, although just how restrictive they've been is unclear.
Insurers subpoenaed
A recently-launched probe could shine a light on the extent of denials before long. Beginning in December, and over the past few weeks, the office of New York Attorney General Eric Schneiderman has been requesting information regarding hepatitis C treatment coverage from 16 insurers, including Aetna and Anthem .
Image source: Flickr user Brian Turner.
The more recent subpoenas have requested the insurers reply by the end of the month, but the probe may already be having an effect. After the subpoenas became news, Anthem noted that Empire BlueCross BlueShield, its New York-based company, recently expanded coverage for hepatitis C treatments.
The expansion was made effective Dec. 7, 2015, but there was no press release. Don't hold your breath waiting for an announcement from Aetna either -- drawing attention to coverage restrictions whether they're presented upfront or not isn't a great policy.
From an investor's standpoint
The story broke after the markets closed on March 2, and the losses in share price for Anthem and Aetna have so far been minor.
I'm certain the probed insurers will point their fingers at the drugmakers and the high price of their treatments. I also expect New York's Attorney General isn't going to give a hoot where they point if advertised coverage and actual coverage don't line up. At the very least, between Anthem, Aetna, and the other 14 companies under the probe, I expect at least a few will be shelling out a bit more for New York's hepatitis C patients in the quarters ahead.
However, if the probe reveals unreasonable levels of denials that emboldens more law enforcement agencies to launch similar probes that force Aetna and Anthem to increase coverage, they could be in serious trouble. Over the past few years both have seen their overall profit margins dwindle to low single digits. Significantly increasing the number of hepatitis C patients they must treat could push earnings into negative territory.
The bright side
Luckily for the insurers, recent approvals for additional, highly effective hepatitis C treatments such as Viekira Pak from AbbVie , and more recently Zepatier from Merck & Co. have loosened Gilead's grip on the market, and driven the cost of treatment down significantly.
Just how far down is impossible to say because discounts and rebates negotiated between drugmakers and payers are considered proprietary and rarely disclosed. On the surface, Merck's list price of $54,600 for Zepatier undercuts Harvoni's by about 42% and is 34% lower than Viekira Pak's. For all we know, undisclosed discounts and rebates could set Zepatier, Viekira Pak, and Harvoni on equal footing, but I doubt it.
Price isn't everything
If the New York probes catch on and send demand for new hepatitis C treatments skyrocketing, which drugmaker is best positioned to gain?
The answer is not so simple. At first you might think Zepatier's competitive price will make it the go-to HCV treatment, but there are no caveats in the hippocratic oath for end-payer burden.
AbbVie's Viekira Pak entered the market late in 2014 at an $11,000 list price discount to Gilead's Harvoni. America's largest pharmacy benefit manager, Express Scripts , gave it exclusive access to its millions of patients in return for an undisclosed but "significant" discount to the list price. Despite all these advantages, Viekira Pak's safety profile couldn't stand up to that of Harvoni, and it barely dented Gilead's share of the hepatitis C space. Last year, Harvoni sales reached $13.8 billion, more than eight times that of Viekira Pak.
Would you like some ribavirin with that?
One cause of Viekira's underwhelming performance is a dosage regimen that includes poorly tolerated antiviral ribavirin for the majority of its indicated population. Harvoni's regimen also includes ribavirin, but only for patients with advanced cirrhosis and liver transplant recipients.
Merck's Zepatier is possibly a much stronger contender than Viekira, but I doubt it will seriously dent Gilead's HCV sales in the years ahead for a few simple reasons. First, just over a month after Zepatier's FDA approval, its label has more serious warnings and precautions than Harvoni's, which has treated tens of thousands of patients in the real world. Second, genotype 1a patients, which comprise a majority of HCV infections in the U.S., require a second genetic test for resistance to one of Zepatier's components. If positive, their treatment requires the addition of ribavirin.
Those are some pretty big hurdles for Zepatier to cross to earn a significant share of the HCV market from Gilead, but the biggest could be on its way. Last October, Gilead submitted an application for a pan-genotypic HCV antiviral that would eliminate the need for costly genotyping. The FDA has granted the application priority review, and Gilead expects a decision by the end of June.
I'm not going to place odds on the New York Attorney General's investigation leading to insurers reducing restrictions for HCV antivirals nationwide, but it's certainly worth watching. However, I am confident that if U.S. demand explodes -- or doesn't -- Gilead's dominance in this space will continue for years to come.
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The article Is U.S. Demand for New Hepatitis C Drugs About to Explode? originally appeared on Fool.com.
Cory Renauer has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Express Scripts and Gilead Sciences. The Motley Fool recommends Anthem. 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 bright side Luckily for the insurers, recent approvals for additional, highly effective hepatitis C treatments such as Viekira Pak from AbbVie , and more recently Zepatier from Merck & Co. have loosened Gilead's grip on the market, and driven the cost of treatment down significantly. AbbVie's Viekira Pak entered the market late in 2014 at an $11,000 list price discount to Gilead's Harvoni. Last year the Senate Finance Committee spent a lot of time investigating whether or not Gilead Sciences intended to maximize revenue from its franchise of groundbreaking hepatitis treatments. | The bright side Luckily for the insurers, recent approvals for additional, highly effective hepatitis C treatments such as Viekira Pak from AbbVie , and more recently Zepatier from Merck & Co. have loosened Gilead's grip on the market, and driven the cost of treatment down significantly. AbbVie's Viekira Pak entered the market late in 2014 at an $11,000 list price discount to Gilead's Harvoni. I'm not going to place odds on the New York Attorney General's investigation leading to insurers reducing restrictions for HCV antivirals nationwide, but it's certainly worth watching. | The bright side Luckily for the insurers, recent approvals for additional, highly effective hepatitis C treatments such as Viekira Pak from AbbVie , and more recently Zepatier from Merck & Co. have loosened Gilead's grip on the market, and driven the cost of treatment down significantly. AbbVie's Viekira Pak entered the market late in 2014 at an $11,000 list price discount to Gilead's Harvoni. Beginning in December, and over the past few weeks, the office of New York Attorney General Eric Schneiderman has been requesting information regarding hepatitis C treatment coverage from 16 insurers, including Aetna and Anthem . | The bright side Luckily for the insurers, recent approvals for additional, highly effective hepatitis C treatments such as Viekira Pak from AbbVie , and more recently Zepatier from Merck & Co. have loosened Gilead's grip on the market, and driven the cost of treatment down significantly. AbbVie's Viekira Pak entered the market late in 2014 at an $11,000 list price discount to Gilead's Harvoni. An underserved population The low percentage of infected patients treated in 2014 is stunning. |
26647.0 | 2016-03-08 00:00:00 UTC | Kiss Patent Protection Goodbye for These 3 Blockbuster Drugs in 2016 | ABBV | https://www.nasdaq.com/articles/kiss-patent-protection-goodbye-these-3-blockbuster-drugs-2016-2016-03-08 | nan | nan | Image by Tax Credits via Flickr.
When a big pharma company loses patent protection on a hit drug, it can blow a hole in the company's top line. Just ask investors in Pfizer , sales of whose megablockbuster cholesterol drug Lipitor plunged more than 90% after it lost patent protection in 2011. Pfizer's revenue has been in decline ever since.
Knowing that, we asked our team of Motley Fool contributors to look ahead to 2016 and name a company with a key drug that risks losing patent protection during the year. Read on to see which drugs they called out and see what their owners are doing to help soften the blow.
Brian Feroldi : Pharma giant AstraZeneca has a big challenge coming this May, when its top-selling cholesterol-busting drug, Crestor, is slated to lose patent protection. That's a big deal, considering worldwide sales of Crestor topped $5 billion in 2015, which represents more than 20% of the company's total revenue. Losing exclusivity in the U.S. puts the company in a bind, since more than half of Crestor's total sales come from the United States.
To help prepare for the decline, AstraZeneca has been pumping money into R&D to bring new drugs to market, and the company has made a lot of progress. AstraZeneca scored six regulatory approvals in 2015, which included new drugs that hold blockbuster potential, such as Tagrisso, which treats lung cancer, and Lynparza, which treats ovarian cancer.
Beyond its recent approval, the company also boasts a handful of other drugs that are producing great growth. Farxiga/Forxiga, which treats type 2 diabetes, grew sales 137% globally in 2015, and Brilinta/Brilique, an antiplatelet drug that lowers the risk of having a heart attack, grew sales 44%.
These new medicines look like they should pay off big time for the company, which is expecting low- to mid-single-digit revenue and earnings-per-share growth in 2016. That's a heck of an accomplishment for a company that expects to lose patent protection for its most successful drug, and it speaks to its commitment to invest so heavily in new medicines.
Cheryl Swanson: AbbVie will lose patent exclusivity on the composition of its flagship drug, Humira, in December. So what's up? Should AbbVie investors see this stock as a crippled donkey? After all, Humira, the best-selling drug on the planet, makes up two-thirds of AbbVie's sales.
If you listen to AbbVie CEO Richard Gonzalez, there's nothing to fear . AbbVie has over 70 additional patents protecting Humira that won't begin to expire until 2022. With that kind of legal armament, the company hopes to keep competition at bay for six years. In the Q3 2015earnings call Gonzalez said, "Any company seeking to market a biosimilar version of Humira will have to contend with our extensive patent estate, which AbbVie intends to enforce vigorously."
I'm inclined to think competition from new branded anti-inflammatory drugs using novel mechanisms, such as those that target IL-17, may have more of an impact on Humira than biosimilars will. Those include psoriasis drug Cosentyx from Novartis , which demonstrated a clear superiority to Amgen 's Enbrel in trials. The drug is a TNF inhibitor, similar to Humira, and could pose a competitive threat. Gonzalez has an answer for the IL-17 drugs as well, claiming they will be "relegated to the failure patient population, because physicians are comfortable" with AbbVie's drugs.
AbbVie is projecting double-digit earnings per share through 2020. But that's dependent on protecting Humira, growing Imbruvica sales ($5 billion projected by 2020), and launching 20 new products or indications in the next four years. If all pans out as Gonzalez expects, AbbVie's loss of its primary patent on Humira will be a non-event. But a healthy dose of skepticism about management promises can be a valuable asset -- so keep an eye on this one.
Sean Williams : One giant drug that'll be kissing its patent protection goodbye in the latter portion of this year is Merck 's Zetia, a statin designed to help patients lower their LDL-cholesterol along with proper diet. In 2015, based on Merck's recently released annual report, Zetia was its second best-selling drug, pulling in $2.65 billion.
In 2010, Merck entered into an agreement with generic-drug producer Glenmark Pharmaceuticals that will allow Glenmark to begin selling a generic version of Zetia on Dec. 12 this year. This pushed Zetia's expiration date forward by a tad (it originally was April 25, 2017). Although physicians and consumers aren't going to care about whether generic Zetia floods the market given that there's such a broad spectrum of new and foundational LDL-cholesterol-lowering treatments to choose from, it's a sizable blow to Merck. Usually, the introduction of generic drugs wipes out between 50% and 80% of cumulative sales within two years.
Thankfully for Merck, it has other avenues it can lean on, namely Keytruda and Zepatier. Keytruda is Merck's cancer immunotherapy drug that's currently being tested in around 100 combination studies and more than 30 tumor types. It works by helping expose cancer cells that normally hide from detection and supercharging the immune system to find and destroy these cells. With sales of Keytruda growing to $560 million in 2015, and its launch into second-line metastatic non-small-cell lung cancer looking promising, Keytruda could cross the $1 billion mark in annual sales for fiscal 2016.
Similarly, the introduction of Zepatier should allow Merck a taste of the hepatitis C market, which has a long enough tail to support more than a decade of growth. Merck's differentiated product, and its substantially lower wholesale cost, could garner Zepatier a decent amount of market share. Although Harvoni is projected to remain the clear market share leader, my suspicion is that Zepatier's annual sales could hit $1 billion by as soon as fiscal 2017.
Thus, while Zetia's loss will hurt, new product growth could quickly put shareholders' pain in the rearview mirror.
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The article Kiss Patent Protection Goodbye for These 3 Blockbuster Drugs in 2016 originally appeared on Fool.com.
Brian Feroldi has no position in any stocks mentioned. Cheryl Swanson owns shares of Amgen. Sean Williams 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 .
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. | In the Q3 2015earnings call Gonzalez said, "Any company seeking to market a biosimilar version of Humira will have to contend with our extensive patent estate, which AbbVie intends to enforce vigorously." Cheryl Swanson: AbbVie will lose patent exclusivity on the composition of its flagship drug, Humira, in December. Should AbbVie investors see this stock as a crippled donkey? | Cheryl Swanson: AbbVie will lose patent exclusivity on the composition of its flagship drug, Humira, in December. Should AbbVie investors see this stock as a crippled donkey? After all, Humira, the best-selling drug on the planet, makes up two-thirds of AbbVie's sales. | Cheryl Swanson: AbbVie will lose patent exclusivity on the composition of its flagship drug, Humira, in December. Should AbbVie investors see this stock as a crippled donkey? After all, Humira, the best-selling drug on the planet, makes up two-thirds of AbbVie's sales. | Should AbbVie investors see this stock as a crippled donkey? If all pans out as Gonzalez expects, AbbVie's loss of its primary patent on Humira will be a non-event. Cheryl Swanson: AbbVie will lose patent exclusivity on the composition of its flagship drug, Humira, in December. |
26648.0 | 2016-03-08 00:00:00 UTC | 3 Value Stocks Near 52-Week Lows Worth Buying | ABBV | https://www.nasdaq.com/articles/3-value-stocks-near-52-week-lows-worth-buying-2016-03-08 | nan | nan | Image source: Pixabay.
While many companies' shares are rising past their fair values now, others are trading at potentially bargain prices. The difficulty with bargain shopping, though, is that you may be understandably hesitant to buy stocks wallowing at 52-week lows. In an effort to separate the rebound candidates from the laggards, it makes sense to start by determining whether the market has overreacted to a company's bad news.
Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.
The 800-pound gorilla in biotech
Sometimes it's just too hard to ignore the 800-pound gorilla in the room, which is why I'd suggest value investors take note of biotech blue-chip Gilead Sciences .
Image source: Gilead Sciences.
Gilead has taken heat over the past year for a number of reasons. First, new competition is emerging in hepatitis C (HCV) and HIV. The approval of Merck 's Zepatier for HCV, and the success of ViiV Healthcare's Triumeq, has some investors clearly concerned that Gilead's best days are already in the rearview mirror. There are also concerns about prescription drug reform that haven't yet died down. Gilead is one of a handful of poster children for inflated drug prices, with its HCV pills Sovaldi and Harvoni running $1,000 and $1,125, respectively, per pill.
These concerns aside, there appears to be little to fear if you're a Gilead Sciences shareholder.
To begin with, Gilead's dominance in HCV should continue since it's the clear convenience leader. AbbVie 's Viekira Pak can require up to six pills per day (although AbbVie hopes to soon have a single-pill formulation on the market), while some Zepatier patients may need to take ribavirin, which has been shown to cause anemia and rashes. By contrast, Harvoni is a once-daily pill and nothing more for Gilead's genotype 1 HCV patients. Since it maintains overwhelmingly dominant market share in HCV, physicians and consumers also trust the product. It seems likely Harvoni and Sovaldi will continue to contribute $18 billion to $20 billion in annual sales.
Image source: Gilead Sciences.
A next-generation formulation in HIV known as Genvoya could also help Gilead counter Triumeq's market share gains. Genvoya is a once-daily pill with a new form for tenofovir, which is designed to provide for lower levels of the drug within the bloodstream, but higher concentrations within cells where HIV-1 replicates. This specialization could quickly make Genvoya a blockbuster.
As an addendum, you can't forget about Gilead's deep pipeline that's looking into other serious and unmet liver diseases, such as hepatitis B and nonalcoholic steatohepatitis, as well as its developing line of oncology products.
Valued at just seven times forward earnings and sporting a dividend yield of 2%, Gilead is a rare breed of value stock in the healthcare sector.
Ohio River value
Next up, we'll move from the realm of mega-cap stocks to a small-cap banking chain operating in the Ohio River Valley: First Merchants .
Like most banks, regardless of whether they're national or regional, First Merchants has come under pressure in recent months following concerns of a U.S. and/or global slowdown. First Merchants is centralized around Chicago, Indianapolis, and Columbus, three sizable cities that would certainly feel the impact if we see an industrial recession. Slowing growth could also halt the Federal Reserve's plans to raise interest rates further. Since 73% of revenue was interest-based in the fourth quarter, inaction from the Fed sort of takes the wind out of First Merchants' sails.
Nonetheless, there are a handful of reasons value investors may want this regional bank on their radar.
Image source: MyFuture.com via Flickr.
In First Merchants, we have a company capable of simultaneous double-digit organic and inorganic loan growth. For example, at the end of fiscal 2015, First Merchants' loan portfolio totaled $4.7 billion, a nearly 20% increase from the end of the prior year. Organic growth accounted for 11% of the surge, or $430 million, while acquisitions, of which First Merchants made two (Cooper State Bank and Ameriana Bank), accounted for 9%, or $339 million. Having multiple pathways to growth gives First Merchants flexibility its peers may not have.
Secondly, First Merchants' balance sheet is in pretty good shape. Its non-performing assets and 90-day delinquencies declined from $74.7 million in 2014 to $51.5 million as of the end of 2015 (and this included both acquisitions). Combine this with expected cost-savings from its two acquisitions, and it's possible First Merchants' core metrics will improve from their current levels.
The company has also been reinvesting in its online banking platform and mobile app in an effort to reach millennials who are likely to be the driving force for banks over the next decade.
A forward P/E of 11, coupled with a nearly 2% dividend yield and a successful organic and inorganic growth strategy, makes this a value stock worth eyeing.
A true "long-term" outlook
Finally, we'll turn our attention to the services sector and take a gander at why Matthews International is a value stock that should be considered for the long term.
Matthews itself is really a hodgepodge of three separate operating entities. It has a memorialization and casket segment that, until recently, made up the largest chunk of its revenue; a brand solutions business which is now its largest revenue driver; and an industrial segment. Like First Merchants above, slowing U.S. and global growth is often perceived as bad news for brand solutions businesses, and it's the main reason Matthews International shares have been under pressure of late.
The good news is there are plenty of reasons to believe a rebound is imminent.
Image source: Pixabay.
For starters, there simply aren't many companies that offer the variety of memorization products Matthews can, which means it's in an advantageous position when it comes to pricing and meeting customer needs. More importantly, a growing population means the likelihood of a growing need for memorialization plagues and caskets over the long run.
The merger between Matthews International and SGK Brand Solutions is also still playing out. Even though it's been two years since the buyout was announced, it's important to note that the integration of both brand solutions businesses hasn't happened overnight. Cost synergies are still expected, and SGK's focus on Asia and the U.S. should help diversify Matthews' brand solutions business away from its reliance on Europe.
Lastly, and this is more of a near-term benefactor, lower commodity costs are benefiting the company's casket, memorialization, and industrial segments. Combined with cost synergies from its recent purchase of Aurora Casket Company and SGK Brand Solutions, Matthews could deliver some surprising margin expansion in the coming quarters.
Currently trading at 13 times forward earnings, Matthews appears well-deserving of your attention.
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The article 3 Value Stocks Near 52-Week Lows Worth Buying originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.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 .
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. | AbbVie 's Viekira Pak can require up to six pills per day (although AbbVie hopes to soon have a single-pill formulation on the market), while some Zepatier patients may need to take ribavirin, which has been shown to cause anemia and rashes. As an addendum, you can't forget about Gilead's deep pipeline that's looking into other serious and unmet liver diseases, such as hepatitis B and nonalcoholic steatohepatitis, as well as its developing line of oncology products. A true "long-term" outlook Finally, we'll turn our attention to the services sector and take a gander at why Matthews International is a value stock that should be considered for the long term. | AbbVie 's Viekira Pak can require up to six pills per day (although AbbVie hopes to soon have a single-pill formulation on the market), while some Zepatier patients may need to take ribavirin, which has been shown to cause anemia and rashes. A forward P/E of 11, coupled with a nearly 2% dividend yield and a successful organic and inorganic growth strategy, makes this a value stock worth eyeing. Combined with cost synergies from its recent purchase of Aurora Casket Company and SGK Brand Solutions, Matthews could deliver some surprising margin expansion in the coming quarters. | AbbVie 's Viekira Pak can require up to six pills per day (although AbbVie hopes to soon have a single-pill formulation on the market), while some Zepatier patients may need to take ribavirin, which has been shown to cause anemia and rashes. Organic growth accounted for 11% of the surge, or $430 million, while acquisitions, of which First Merchants made two (Cooper State Bank and Ameriana Bank), accounted for 9%, or $339 million. Like First Merchants above, slowing U.S. and global growth is often perceived as bad news for brand solutions businesses, and it's the main reason Matthews International shares have been under pressure of late. | AbbVie 's Viekira Pak can require up to six pills per day (although AbbVie hopes to soon have a single-pill formulation on the market), while some Zepatier patients may need to take ribavirin, which has been shown to cause anemia and rashes. These concerns aside, there appears to be little to fear if you're a Gilead Sciences shareholder. A next-generation formulation in HIV known as Genvoya could also help Gilead counter Triumeq's market share gains. |
26649.0 | 2016-03-07 00:00:00 UTC | Analysts Forecast 16% Upside For The Holdings of SPYG | ABBV | https://www.nasdaq.com/articles/analysts-forecast-16-upside-holdings-spyg-2016-03-07 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P 500 Growth ETF (Symbol: SPYG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $112.28 per unit.
With SPYG trading at a recent price near $97.03 per unit, that means that analysts see 15.71% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPYG's underlying holdings with notable upside to their analyst target prices are Morgan Stanley (Symbol: MS), AbbVie Inc. (Symbol: ABBV), and Harman International Industries, Inc. (Symbol: HAR). Although MS has traded at a recent price of $26.13/share, the average analyst target is 34.71% higher at $35.20/share. Similarly, ABBV has 34.54% upside from the recent share price of $56.15 if the average analyst target price of $75.55/share is reached, and analysts on average are expecting HAR to reach a target price of $107.00/share, which is 32.44% above the recent price of $80.79. Below is a twelve month price history chart comparing the stock performance of MS, ABBV, and HAR:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of MS, ABBV, and HAR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPYG's underlying holdings with notable upside to their analyst target prices are Morgan Stanley (Symbol: MS), AbbVie Inc. (Symbol: ABBV), and Harman International Industries, Inc. (Symbol: HAR). Similarly, ABBV has 34.54% upside from the recent share price of $56.15 if the average analyst target price of $75.55/share is reached, and analysts on average are expecting HAR to reach a target price of $107.00/share, which is 32.44% above the recent price of $80.79. | Three of SPYG's underlying holdings with notable upside to their analyst target prices are Morgan Stanley (Symbol: MS), AbbVie Inc. (Symbol: ABBV), and Harman International Industries, Inc. (Symbol: HAR). Similarly, ABBV has 34.54% upside from the recent share price of $56.15 if the average analyst target price of $75.55/share is reached, and analysts on average are expecting HAR to reach a target price of $107.00/share, which is 32.44% above the recent price of $80.79. Below is a twelve month price history chart comparing the stock performance of MS, ABBV, and HAR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABBV has 34.54% upside from the recent share price of $56.15 if the average analyst target price of $75.55/share is reached, and analysts on average are expecting HAR to reach a target price of $107.00/share, which is 32.44% above the recent price of $80.79. Below is a twelve month price history chart comparing the stock performance of MS, ABBV, and HAR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPYG's underlying holdings with notable upside to their analyst target prices are Morgan Stanley (Symbol: MS), AbbVie Inc. (Symbol: ABBV), and Harman International Industries, Inc. (Symbol: HAR). | Below is a twelve month price history chart comparing the stock performance of MS, ABBV, and HAR: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPYG's underlying holdings with notable upside to their analyst target prices are Morgan Stanley (Symbol: MS), AbbVie Inc. (Symbol: ABBV), and Harman International Industries, Inc. (Symbol: HAR). Similarly, ABBV has 34.54% upside from the recent share price of $56.15 if the average analyst target price of $75.55/share is reached, and analysts on average are expecting HAR to reach a target price of $107.00/share, which is 32.44% above the recent price of $80.79. |
26650.0 | 2016-03-07 00:00:00 UTC | VUG, ABBV, UPS, BIIB: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/vug-abbv-ups-biib-large-outflows-detected-etf-2016-03-07 | 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 $48.6 million dollar outflow -- that's a 0.2% decrease week over week (from 194,483,941 to 194,011,637). Among the largest underlying components of VUG, in trading today AbbVie Inc. (Symbol: ABBV) is down about 1.6%, United Parcel Service Inc (Symbol: UPS) is trading flat, and Biogen Inc (Symbol: BIIB) is up by about 0.4%. 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 $102.28. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VUG, in trading today AbbVie Inc. (Symbol: ABBV) is down about 1.6%, United Parcel Service Inc (Symbol: UPS) is trading flat, and Biogen Inc (Symbol: BIIB) is up by about 0.4%. 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 $102.28. 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 AbbVie Inc. (Symbol: ABBV) is down about 1.6%, United Parcel Service Inc (Symbol: UPS) is trading flat, and Biogen Inc (Symbol: BIIB) is up by about 0.4%. 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 $102.28. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of VUG, in trading today AbbVie Inc. (Symbol: ABBV) is down about 1.6%, United Parcel Service Inc (Symbol: UPS) is trading flat, and Biogen Inc (Symbol: BIIB) is up 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 Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $48.6 million dollar outflow -- that's a 0.2% decrease week over week (from 194,483,941 to 194,011,637). 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 $102.28. | Among the largest underlying components of VUG, in trading today AbbVie Inc. (Symbol: ABBV) is down about 1.6%, United Parcel Service Inc (Symbol: UPS) is trading flat, and Biogen Inc (Symbol: BIIB) is up by about 0.4%. 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 $102.28. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). |
26651.0 | 2016-02-29 00:00:00 UTC | 2 Drug Stocks To Buy For Safe Dividends And 20% Gains | ABBV | https://www.nasdaq.com/articles/2-drug-stocks-to-buy-for-safe-dividends-and-20-gains-2016-02-29 | nan | nan | InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With all the bloviating on the campaign trail about reeling in drug costs these days, it's safe to say the pharmaceutical industry is under siege.
But it's not all the politicians' fault; many of the sector's injuries are self-inflicted. Case in point: Valeant Pharmaceuticals ( VRX ), whose stock has plunged 62% amid ongoing accounting concerns.
Investors, predictably, have voted with their feet: since the start of the year, the iShares US Pharmaceuticals ETF ( IHE ) has plunged almost 14%, nearly tripling the S&P 500's decline.
But as with any selloff, it's not just sickly stocks that are being punished. It's the healthy ones, too. I'm talking about companies that generate strong cash flows and fatten investors' wallets with buybacks and dividends-while also fattening their pipelines through R&D and acquisitions.
Here are two of my favorites now.
6 Stocks to Buy Now for Battered Bargains
Besides being great income plays, I expect both to tack on 20% gains by the end of 2016.
Pfizer Inc. (PFE): Portfolio Rx
If you're looking for a drug stock with a high, safe payout, look no further than Pfizer Inc. ( PFE ), with a 3.9% dividend yield that's the highest it's been in four years.
The drug giant hasn't been immune to the pharma smackdown, dropping 13% since early November. That plunge - plus a 7% dividend hike announced in December - is the reason for the high yield.
It's also whittled Pfizer's forward P/E ratio down to 12.3-a level not seen since 2012.
That ticks the income and value boxes. Now let's talk about growth, which has been AWOL in the past few years as Pfizer grappled with a so-called "patent cliff" that forced some of its top-selling drugs to go head-to-head with cheap generics.
The results? Downright ugly. Arthritis treatment Celebrex, for example, saw its sales nosedive 70% from 2013 to 2015, while cholesterol drug Lipitor suffered a 20% slide in that time.
And there are more patent headaches ahead, including Viagra in 2017 and epilepsy drug Lyrica in 2019. But the Pfizer story is now more about new drugs-and the company, which pumped an incredibly high 16% of its sales into R&D last year, has plenty to look forward to on that front.
A great example is Ibrance, for metastatic breast cancer, which the FDA signed off on last February. Ibrance clocked $723 million of sales this year, and Wall Street sees that hitting $3.2 billion in 2017 and eventually peaking at $6 billion. To put that in context, Pfizer's total 2015 revenue was $48.9 billion.
And the hits keep coming. The company's upcoming tie-up with Ireland-based Allergan plc ( AGN ), for instance, would create the world's biggest drug firm and bring Allergan's raft of in-demand drugs into the fold, not the least of which is anti-wrinkle treatment Botox, which racked up a 43% year-over-year sales gain in the fourth quarter.
Pfizer would also be able to shift its HQ to Ireland, thereby cutting its tax rate from 23.5% to between 17% and 18%. Lawmakers loathe these so-called "tax inversions" and have vowed to put the brakes on them, but Pfizer insists this one will go through.
Either way, the company's muscular pipeline and hefty share buybacks (it's slashed its share count by 22% in the past five years) should keep its earnings, share price and dividend rising. Wall Street agrees: the median price target now sits at $38.00, up 27% from today's level.
Gilead Sciences, Inc. (GILD): Healthy Dividend Growth
At first glance, Gilead Sciences, Inc. (GILD) may not seem terribly exciting from a dividend perspective. After all, it only started paying dividends last fall, and its annual rate of $1.72 yields just 2.0%, a hair below the S&P 500 , at 2.3%.
But for long-term investors, dividend growth is what really matters, and so far, I like what I see: on February 2, Gilead announced that it will hike its quarterly payout by 10%, bringing its annual rate to $1.88.
There's no doubt Gilead meets our bargain criteria, with a forward P/E ratio of just 7.3.
Why so low? Wall Street's worried competitors will steal a big slice of the hepatitis C market, of which Gilead's Harvoni and Sovaldi treatments hold 90%.
To be sure, Gilead leans heavily on these drugs, which supplied 63% of its 2015 revenue. And yes, competition is heating up: AbbVie Inc. ( ABBV ) released its Viekira Pak treatment in December 2014, and the FDA just signed off on Zepatier, from Merck & Co. ( MRK ), on January 28.
Both Zepatier and Viekira Pak are priced below Harvoni/Sovaldi. However, Gilead has already been offering deep discounts in the US, and that hasn't dinged the drugs' sales, which rose a combined 27% in 2015, to $19.1 billion.
Viekira Pak, by contrast, rang up just $554 million in its first year, and the analysts are only calling for $2 billion in Zepatier sales in 2020. Even if that comes to pass and more competitors enter the market between now and then, Gilead will still control the lion's share.
Also lost in the noise is Gilead's strong pipeline, including its next-generation hep C treatment, which the FDA will rule on by the end of June. The FDA also recently approved Gilead's Genvoya HIV drug, which should help increase the $11.1 billion of revenue the company collected from HIV treatments last year.
And I wouldn't bet against Gilead's ability to crank out more blockbusters: it pumped $3.0 billion (or 10% of sales) into R&D in 2015, an amount that's up tenfold in the last decade:
As with Pfizer, Wall Street sees big things ahead for the shares, too, with a median price target of $116, implying 30% upside from here.
Even though these two pharma giants look like great buys now, I actually like three other healthcare stocks even more. That's because they throw off dividends investors in Pfizer and Gilead can only dream of. I'm talking about payouts of 7.9%, 8.5% and 9.4%.
Like Pfizer and Gilead, they're capitalizing on the biggest demographic shift in US history -the aging of America's 77 million baby boomers-but they're doing it without the fierce competition and patent headaches these two companies have to deal with.
Instead, they're providing direct care to an elderly population that's exploding. Consider that 10,000 Americans turn 65 every single day-and will continue to do so for the next 15 years.
This bull market in aging Americans is already starting to drive my three picks' dividend yields higher. Check out the payout growth in my favorite firm, which raises its dividend every single quarter:
The best part? Most investors haven't heard of my three top picks. That means you can not only collect yields north of 8%, but you're positioned to grab 15-20% upside in the next 12 months as other investors pile into these reliable dividend-payers.
That's why I'm urging my subscribers to lock in these juicy dividends today, while they're still cheap. Click here to get the names of all three of these dream investments and discover how we're playing this megatrend now .
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The post 2 Drug Stocks To Buy For Safe Dividends And 20% Gains 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 yes, competition is heating up: AbbVie Inc. ( ABBV ) released its Viekira Pak treatment in December 2014, and the FDA just signed off on Zepatier, from Merck & Co. ( MRK ), on January 28. Now let's talk about growth, which has been AWOL in the past few years as Pfizer grappled with a so-called "patent cliff" that forced some of its top-selling drugs to go head-to-head with cheap generics. And I wouldn't bet against Gilead's ability to crank out more blockbusters: it pumped $3.0 billion (or 10% of sales) into R&D in 2015, an amount that's up tenfold in the last decade: As with Pfizer, Wall Street sees big things ahead for the shares, too, with a median price target of $116, implying 30% upside from here. | And yes, competition is heating up: AbbVie Inc. ( ABBV ) released its Viekira Pak treatment in December 2014, and the FDA just signed off on Zepatier, from Merck & Co. ( MRK ), on January 28. Gilead Sciences, Inc. (GILD): Healthy Dividend Growth At first glance, Gilead Sciences, Inc. (GILD) may not seem terribly exciting from a dividend perspective. But for long-term investors, dividend growth is what really matters, and so far, I like what I see: on February 2, Gilead announced that it will hike its quarterly payout by 10%, bringing its annual rate to $1.88. | And yes, competition is heating up: AbbVie Inc. ( ABBV ) released its Viekira Pak treatment in December 2014, and the FDA just signed off on Zepatier, from Merck & Co. ( MRK ), on January 28. Pfizer Inc. (PFE): Portfolio Rx If you're looking for a drug stock with a high, safe payout, look no further than Pfizer Inc. ( PFE ), with a 3.9% dividend yield that's the highest it's been in four years. Gilead Sciences, Inc. (GILD): Healthy Dividend Growth At first glance, Gilead Sciences, Inc. (GILD) may not seem terribly exciting from a dividend perspective. | And yes, competition is heating up: AbbVie Inc. ( ABBV ) released its Viekira Pak treatment in December 2014, and the FDA just signed off on Zepatier, from Merck & Co. ( MRK ), on January 28. Ibrance clocked $723 million of sales this year, and Wall Street sees that hitting $3.2 billion in 2017 and eventually peaking at $6 billion. Check out the payout growth in my favorite firm, which raises its dividend every single quarter: The best part? |
26652.0 | 2016-02-29 00:00:00 UTC | Should This Data Worry Gilead Sciences Inc.'s Investors? | ABBV | https://www.nasdaq.com/articles/should-data-worry-gilead-sciences-incs-investors-2016-02-29 | nan | nan | Image source: Gilead Sciences.
Investors in pharma giant Merck (NYSE: MRK) are probably smiling from ear to ear, as Advert Health Analytics recently published a report singing the praises of Merck's new hepatitis C drug, Zepatier.
The report looked at Zepatier's clinical trial data and compared it with that of Gilead Sciences ' (NASDAQ: GILD) hepatitis C drugs Harvoni and Sovaldi, which currently dominate the market. The report concluded that Zepatier will probably hold a clinical edge over Sovaldi, as its labeling suggests that it has a lower risk profile than Sovaldi.
Advert Health Analytics came to that conclusion by looking at the labeling for Sovaldi, noting that it listed cardiac arrest and suicidal ideation as potential adverse events, while Zepatier labeling did not. That difference caused Advert to reason that Zepatier appears to be less risky to use than Sovaldi, which could give Merck's drug an edge when providers are deciding which therapy to prescribe.
Advert also projected that the FDA might even require Gilead to eventually update its labeling on Sovaldi to include a number of additional adverse events, such as "progressive multifocal leukoencephalopathy, Stevens-Johnson syndrome, toxic epidermal necrolysis, and drug-induced liver injury."
Should this worry Gilead Sciences investors?
There's precedence for investors to worry that safety concerns could affect sales. In October of last year, pharma giant AbbVie received a warning letter from the FDA related to its two hepatitis C drugs, Viekira Pak and Technivie. The agency has received reports that at least 26 patients around the world experienced "liver injury" that could possibly linked to using their drugs. Shares of AbbVie were crushed when the news broke.
When the company reported its fourth-quarter earnings, it was obvious that the warning letter had an impact on physicians' use of Viekira. Stateside sales of Viekira dropped 19% from the previous quarter to $197 million, though it should be noted that setback didn't stop AbbVie from growing worldwide sales of Viekira 18% quarter over quarter.
Three reasons not to worry
This report might put Gilead in some hot water if its future sales were completely dependent on the success of Sovaldi, but I think investors can rest easy for now.
First, Gilead has already seen sales of Sovaldi decline, but that's primarily owing to the massive success of Harvoni. Total 2015 sales of Sovaldi were down 49% year over year to $5.2 billion, and the drop was even more severe in the United States. However, Gilead saw sales of Harvoni skyrocket more than 600% in 2015 to $13.8 billion worldwide, which easily overcame the Sovaldi decline.
Image Source: Gilead Sciences.
Second, it's important to remember that both Harvoni and Sovaldi have been on the market for more than a year and have helped to cure hundreds of thousands of patients. That means the drugs have a lot of real-world data on their side. Compare that with Zepatier, which hasn't been out in the wild for very long. While I have little doubt that it will remain a safe drug, we won't know for sure until providers have a chance to use the drug in a real-world setting.
Finally, investors should remember that Gilead is set to hear from the FDA about its new pan-genotype hepatitis C drug on June 28 that could render all of this research irrelevant. If that drug manages to win approval, it will probably help Gilead retain its title as dominant player in the hepatitis C market.
The market yawns
The market looks like it's brushing off this report as if there's nothing to worry about. The stock is currently trading for less than 8 times 2016 earnings estimates, and I'm content to hang on to my shares. I think the company's stock is so cheap that it could have meaningful upside if these fears prove to be overblown. Still, this report is an interesting development that Gilead's investors should keep an eye on.
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The article Should This Data Worry Gilead Sciences Inc.'s Investors? originally appeared on Fool.com.
Brian Feroldi 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 .
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. | In October of last year, pharma giant AbbVie received a warning letter from the FDA related to its two hepatitis C drugs, Viekira Pak and Technivie. Shares of AbbVie were crushed when the news broke. Stateside sales of Viekira dropped 19% from the previous quarter to $197 million, though it should be noted that setback didn't stop AbbVie from growing worldwide sales of Viekira 18% quarter over quarter. | In October of last year, pharma giant AbbVie received a warning letter from the FDA related to its two hepatitis C drugs, Viekira Pak and Technivie. Shares of AbbVie were crushed when the news broke. Stateside sales of Viekira dropped 19% from the previous quarter to $197 million, though it should be noted that setback didn't stop AbbVie from growing worldwide sales of Viekira 18% quarter over quarter. | In October of last year, pharma giant AbbVie received a warning letter from the FDA related to its two hepatitis C drugs, Viekira Pak and Technivie. Shares of AbbVie were crushed when the news broke. Stateside sales of Viekira dropped 19% from the previous quarter to $197 million, though it should be noted that setback didn't stop AbbVie from growing worldwide sales of Viekira 18% quarter over quarter. | In October of last year, pharma giant AbbVie received a warning letter from the FDA related to its two hepatitis C drugs, Viekira Pak and Technivie. Shares of AbbVie were crushed when the news broke. Stateside sales of Viekira dropped 19% from the previous quarter to $197 million, though it should be noted that setback didn't stop AbbVie from growing worldwide sales of Viekira 18% quarter over quarter. |
26653.0 | 2016-02-27 00:00:00 UTC | 3 Stocks With Bigger Dividends Than Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/3-stocks-bigger-dividends-johnson-johnson-2016-02-27 | nan | nan | SOURCE: FLICKR USER SIMON CUNNINGHAM
Johnson & Johnson is a dividend aristocrat with a seemingly bulletproof business model, but its 2.88% dividend yield may not be all that compelling to income investors, and as a result, some may be hunting for alternatives.
Although a high yield may provide more income in the short-term, it could also indicate a low-quality business that's too risky to keep in your portfolio. Therefore, we asked three of the Motley Fool's top contributors to highlight a few high-quality investment ideas with better-than-J&J yields to consider for portfolios. Read on to learn which three companies they picked and why.
Todd Campbell : Investors who seek out higher yields typically take on more risk. If that's OK with you, then you might want to consider taking a stab at AbbVie .
The company's 4.34% dividend yield is among the best out there, and concerns about risks to its top line stemming from the looming expiration of one of Humira's patents may be overblown.
Humira represents a whopping 60% of AbbVie's sales, and its composition of matter patent expires this year, but other patents could protect the drug from competition in the U.S. until 2022. That has management guiding for Humira sales to increase to $18 billion in 2020 from $14 billion today.
That's an eye-popping prediction given the risk to Humira, but AbbVie's total sales forecast for 2020 may be even more surprising. Management thinks its sales will grow from its current $24 billion annualized quarterly clip to $37 billion that year.
If management delivers on that goal, then there should be plenty of financial flexibility to support dividend and potentially, plenty of reason for investors to send AbbVie's shares higher. Only time will tell if AbbVie can sidestep competitors, but investors with a bit higher tolerance for risk might want to consider it.
Andres Cardenal : IBM is going through considerable challenges lately, global corporate spending remains lackluster, and currency headwinds are inflicting damage on the company's performance. IBM is also moving away from its hardware-related businesses and segments with low profit margins, which is putting additional pressure on sales.
In this context, IBM reported a 9% decline in revenue during the fourth quarter of 2015. The revenue decline in constant-currency terms was a much more moderate 2%, but still nothing to write home about. Not everything is bad news, though: IBM is now making 35% of total sales from its "strategic imperatives" group of high-growth businesses, and revenue from these segments jumped by a vigorous 26% in constant-currency terms last quarter.
It's hard to tell how long it may take for IBM to jump-start its sales growth, but its strategic imperative businesses, which include cloud computing, data analytics, mobile, social, and security, will most-probably represent a growing share of total revenue over time, and this bodes well for investors in IBM over the long term.
IBM has an amazing track record of making dividend payments through good and bad times. The company has paid uninterrupted dividends since 1916, and it has increased dividends annually for the last 20 years. At current prices, IBM stock is paying a big dividend yield of 4.3%, and this looks like a remarkably attractive valuation for such a strong dividend powerhouse.
Tyler Crowe: With the energy sector on such a vicious decline over the past couple of years, you could almost throw a dart at a list of energy companies and hit a company with a larger dividend yield than Johnson & Johnson. What matters, though, is finding a dividend that actually has a shot of making it through this energy downturn without being cut. With that in mind, one company yield-hungry investors should consider is Magellan Midstream Partners .
Most oil and gas pipeline companies have a majority of their assets involved in moving crude oil, natural gas, or natural gas liquids. By contrast, a majority of Magellan's pipeline assets transport refined petroleum products such as gasoline and diesel. Since gasoline and diesel demand is pretty inelastic, Magellan's pipelines are much less likely to run into the issue of seeing volume declines during this downturn. To add to this security, more than 85% of its gross profits come from fixed fees. These two elements translated to a company that actually increased its cash flow in 2015 -- and when it comes to pipeline companies, cash is king.
There is a flip side to this. The same factors that have protected it from the oil price downturn means that investors shouldn't expect a huge jump when the energy market rebounds. However, if you are looking for a high-yield investment -- Magellan now yields 4.9% -- that grows at a decent clip year in, year out, then it's probably worth taking a look at this stock.
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The article 3 Stocks With Bigger Dividends Than Johnson & Johnson originally appeared on Fool.com.
Andrés Cardenal owns shares of International Business Machines. Todd Campbell has no position in any stocks mentioned. Tyler Crowe 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 .
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. | If that's OK with you, then you might want to consider taking a stab at AbbVie . Humira represents a whopping 60% of AbbVie's sales, and its composition of matter patent expires this year, but other patents could protect the drug from competition in the U.S. until 2022. That's an eye-popping prediction given the risk to Humira, but AbbVie's total sales forecast for 2020 may be even more surprising. | If that's OK with you, then you might want to consider taking a stab at AbbVie . Humira represents a whopping 60% of AbbVie's sales, and its composition of matter patent expires this year, but other patents could protect the drug from competition in the U.S. until 2022. That's an eye-popping prediction given the risk to Humira, but AbbVie's total sales forecast for 2020 may be even more surprising. | If that's OK with you, then you might want to consider taking a stab at AbbVie . Humira represents a whopping 60% of AbbVie's sales, and its composition of matter patent expires this year, but other patents could protect the drug from competition in the U.S. until 2022. That's an eye-popping prediction given the risk to Humira, but AbbVie's total sales forecast for 2020 may be even more surprising. | If that's OK with you, then you might want to consider taking a stab at AbbVie . Humira represents a whopping 60% of AbbVie's sales, and its composition of matter patent expires this year, but other patents could protect the drug from competition in the U.S. until 2022. That's an eye-popping prediction given the risk to Humira, but AbbVie's total sales forecast for 2020 may be even more surprising. |
26654.0 | 2016-02-25 00:00:00 UTC | Notable ETF Outflow Detected - IWF, DIS, ABBV, UPS | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-iwf-dis-abbv-ups-2016-02-25 | 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 Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $69.8 million dollar outflow -- that's a 0.2% decrease week over week (from 301,350,000 to 300,600,000). Among the largest underlying components of IWF, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.8%, AbbVie Inc. (Symbol: ABBV) is trading flat, and United Parcel Service Inc (Symbol: UPS) is up by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $84.82 per share, with $103.50 as the 52 week high point - that compares with a last trade of $93.73. 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 IWF, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.8%, AbbVie Inc. (Symbol: ABBV) is trading flat, and United Parcel Service Inc (Symbol: UPS) is up by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $84.82 per share, with $103.50 as the 52 week high point - that compares with a last trade of $93.73. 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 IWF, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.8%, AbbVie Inc. (Symbol: ABBV) is trading flat, and United Parcel Service Inc (Symbol: UPS) is up by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $84.82 per share, with $103.50 as the 52 week high point - that compares with a last trade of $93.73. 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 IWF, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.8%, AbbVie Inc. (Symbol: ABBV) is trading flat, and United Parcel Service Inc (Symbol: UPS) is up 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 Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $69.8 million dollar outflow -- that's a 0.2% decrease week over week (from 301,350,000 to 300,600,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $84.82 per share, with $103.50 as the 52 week high point - that compares with a last trade of $93.73. | Among the largest underlying components of IWF, in trading today Walt Disney Co. (Symbol: DIS) is off about 0.8%, AbbVie Inc. (Symbol: ABBV) is trading flat, and United Parcel Service Inc (Symbol: UPS) is up by about 0.4%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $84.82 per share, with $103.50 as the 52 week high point - that compares with a last trade of $93.73. 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). |
26655.0 | 2016-02-24 00:00:00 UTC | Infinity (INFI) Q4 Loss Narrower than Expected, Revenues Lag | ABBV | https://www.nasdaq.com/articles/infinity-infi-q4-loss-narrower-than-expected-revenues-lag-2016-02-24 | nan | nan | Infinity Pharmaceuticals, Inc.INFI reported a loss of 80 cents per share in the fourth quarter of 20Array5, narrower than both the Zacks Consensus Estimate and the year-ago loss of 83 cents.
Infinity Pharmaceuticals Inc. (INFI) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany
Quarter in Detail
Since Infinity does not have any approved product in its portfolio yet, the company earns revenues in the form of royalties, license and milestone payments, and research and development support fees paid by its partners.
Quarterly revenues surged Array06.8% year over year to $9.Array million but missed the Zacks Consensus Estimate of $Array3.2 million.
In the reported quarter, R&D expenses climbed 7.8% to $38.9 million due to higher development expenses for duvelisib. Selling, general and administrative (SG&A) expenses were up 27% to $9.4 million primarily owing to the company's personal and commercial expenses for a potential launch of duvelisib in 20Array7.
Annual Results
For 20Array5, the company posted a loss of $2.62 per share, narrower than the Zacks Consensus Estimate of a loss of $2.65.
Full-year revenues of $Array09.Array million were down 38.9% from the 20Array4 level. The top line included license fee of $75.2 million associated with the milestone payment of $Array30 million and $33.9 million in research and development (R&D) services under its collaboration agreement with AbbVie Inc. ABBV .
20Array6 Outlook
Infinity expects revenues in the range of $225 million to $Array20 million, which includes an anticipated regulatory milestone worth $200 million from AbbVie. The Zacks Consensus Estimate for 20Array6 revenues is $Array6Array million.
The company expects net income in the range of $Array5 million to $35 million.
Pipeline Update
Infinity continues to progress with its pipeline candidates. Currently, the company is evaluating its lead candidate, duvelisib, in the phase III DUO study on patients with relapsed/refractory chronic lymphocytic leukemia, and in the phase II DYNAMO study on patients with refractory indolent non-Hodgkin lymphoma.
Results from the DUO study are expected in early second half of 20Array6, while results from the DYNAMO study are anticipated in the third quarter of the year. Moreover, Infinity plans to file regulatory applications for duvelisib in both the U.S. and the EU in the fourth quarter of 20Array6, assuming encouraging data from the studies.
In addition, the company expects to report initial data from the phase I/II CONTEMPO study on duvelisib in the second half of 20Array6. The study is evaluating the safety and equity of duvelisib in combination with Rituxan or Gazyva for follicular lymphoma in treatment-naïve patients.
Our Take
Infinity's fourth-quarter results were mixed, with the company reporting a narrower-than-expected loss, but revenues missing estimates. Nevertheless, given its continuous efforts on developing duvelisib and a potential launch in 20Array7, we expect investors focus to remain on further updates from the company.
Infinity currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Horizon Pharma plc HZNP and Anika Therapeutics Inc. ANIK , both sporting a Zacks Rank #Array (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. | The top line included license fee of $75.2 million associated with the milestone payment of $Array30 million and $33.9 million in research and development (R&D) services under its collaboration agreement with AbbVie Inc. ABBV . 20Array6 Outlook Infinity expects revenues in the range of $225 million to $Array20 million, which includes an anticipated regulatory milestone worth $200 million from AbbVie. Click to get this free report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | 20Array6 Outlook Infinity expects revenues in the range of $225 million to $Array20 million, which includes an anticipated regulatory milestone worth $200 million from AbbVie. Click to get this free report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The top line included license fee of $75.2 million associated with the milestone payment of $Array30 million and $33.9 million in research and development (R&D) services under its collaboration agreement with AbbVie Inc. ABBV . | 20Array6 Outlook Infinity expects revenues in the range of $225 million to $Array20 million, which includes an anticipated regulatory milestone worth $200 million from AbbVie. Click to get this free report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The top line included license fee of $75.2 million associated with the milestone payment of $Array30 million and $33.9 million in research and development (R&D) services under its collaboration agreement with AbbVie Inc. ABBV . | The top line included license fee of $75.2 million associated with the milestone payment of $Array30 million and $33.9 million in research and development (R&D) services under its collaboration agreement with AbbVie Inc. ABBV . Click to get this free report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 20Array6 Outlook Infinity expects revenues in the range of $225 million to $Array20 million, which includes an anticipated regulatory milestone worth $200 million from AbbVie. |
26656.0 | 2016-02-18 00:00:00 UTC | AbbVie Achieves #47 Analyst Rank, Surpassing Allergan | ABBV | https://www.nasdaq.com/articles/abbvie-achieves-47-analyst-rank-surpassing-allergan-2016-02-18 | nan | nan | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, AbbVie Inc. (Symbol: ABBV) has taken over the #47 spot from Allergan PLC (Symbol: AGN), according to ETF Channel . Below is a chart of AbbVie Inc. versus Allergan PLC plotting their respective rank within the S&P 500 over time (ABBV plotted in blue; AGN plotted in green):
Below is a three month price history chart comparing the stock performance of ABBV vs. AGN:
ABBV,AGN makes up 9.88% of the Pharmaceutical ETF ( PPH )
ABBV is currently trading off about 1%, while AGN is off about 0.5% midday Thursday.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, AbbVie Inc. (Symbol: ABBV) has taken over the #47 spot from Allergan PLC (Symbol: AGN), according to ETF Channel . Below is a chart of AbbVie Inc. versus Allergan PLC plotting their respective rank within the S&P 500 over time (ABBV plotted in blue; AGN plotted in green): Below is a three month price history chart comparing the stock performance of ABBV vs. AGN: ABBV,AGN makes up 9.88% of the Pharmaceutical ETF ( PPH ) ABBV is currently trading off about 1%, while AGN is off about 0.5% midday Thursday. Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a chart of AbbVie Inc. versus Allergan PLC plotting their respective rank within the S&P 500 over time (ABBV plotted in blue; AGN plotted in green): Below is a three month price history chart comparing the stock performance of ABBV vs. AGN: ABBV,AGN makes up 9.88% of the Pharmaceutical ETF ( PPH ) ABBV is currently trading off about 1%, while AGN is off about 0.5% midday Thursday. In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, AbbVie Inc. (Symbol: ABBV) has taken over the #47 spot from Allergan PLC (Symbol: AGN), according to ETF Channel . Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a chart of AbbVie Inc. versus Allergan PLC plotting their respective rank within the S&P 500 over time (ABBV plotted in blue; AGN plotted in green): Below is a three month price history chart comparing the stock performance of ABBV vs. AGN: ABBV,AGN makes up 9.88% of the Pharmaceutical ETF ( PPH ) ABBV is currently trading off about 1%, while AGN is off about 0.5% midday Thursday. In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, AbbVie Inc. (Symbol: ABBV) has taken over the #47 spot from Allergan PLC (Symbol: AGN), according to ETF Channel . Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, AbbVie Inc. (Symbol: ABBV) has taken over the #47 spot from Allergan PLC (Symbol: AGN), according to ETF Channel . Below is a chart of AbbVie Inc. versus Allergan PLC plotting their respective rank within the S&P 500 over time (ABBV plotted in blue; AGN plotted in green): Below is a three month price history chart comparing the stock performance of ABBV vs. AGN: ABBV,AGN makes up 9.88% of the Pharmaceutical ETF ( PPH ) ABBV is currently trading off about 1%, while AGN is off about 0.5% midday Thursday. Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
26657.0 | 2016-02-18 00:00:00 UTC | S&P 500 Analyst Moves: ABBV | ABBV | https://www.nasdaq.com/articles/sp-500-analyst-moves-abbv-2016-02-18 | nan | nan | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #47 analyst pick, moving up by 1 spot.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, AbbVie ( ABBV ) is lower by about 8.1%.
VIDEO: S&P 500 Analyst Moves: ABBV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #47 analyst pick, moving up by 1 spot. Looking at the stock price movement year to date, AbbVie ( ABBV ) is lower by about 8.1%. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #47 analyst pick, moving up by 1 spot. Looking at the stock price movement year to date, AbbVie ( ABBV ) is lower by about 8.1%. | VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #47 analyst pick, moving up by 1 spot. Looking at the stock price movement year to date, AbbVie ( ABBV ) is lower by about 8.1%. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #47 analyst pick, moving up by 1 spot. Looking at the stock price movement year to date, AbbVie ( ABBV ) is lower by about 8.1%. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
26658.0 | 2016-02-18 00:00:00 UTC | Forget AbbVie Inc.: Here Are 2 Better Dividend Stocks | ABBV | https://www.nasdaq.com/articles/forget-abbvie-inc-here-are-2-better-dividend-stocks-2016-02-18 | nan | nan | Image source: Pixabay.
AbbVie has long been a favorite name among income-seeking investors because it's a Dividend Aristocrat that offers a substantial yield of 4.3% at current levels, combined with the fact that the company has grown its top line at industry-leading levels since being spun off from Abbott Laboratories in 2013. AbbVie's glory days, though, may be coming to an abrupt end.
Because of the forthcoming patent expiration for the drugmaker's top-selling anti-inflammatory medicine Humira, AbbVie has taken an aggressive approach to mergers and acquisitions that has helped bring its total outstanding debt to over $32 billion at last count. The company's near-relentless approach to maintaining a top-notch yield has also driven its trailing-12-month payout ratio to an untenable 111%.
High debt levels and a payout ratio in excess of 100% tend be a bad mix for dividend stocks . That's why investors may want to look to safer names in healthcare like Gilead Sciences and Pfizer moving forward.
Gilead Sciences is poised to ramp up its dividend payout
Gilead is relatively new to the dividend game, initiating its first payout in company history only last year. However, the blue chip biotech has already announced a 10% hike in its quarterly payout to $0.47 per share starting in the second quarter of 2016.
As Gilead is projected to generate over $31 billion in total revenue in 2016 and is sitting on a pile of cash and equivalents totaling $26 billion, the biotech certainly has the firepower to push its yield higher if management chooses to do so. After all, its payout ratio will still fall short of even 10% following this upcoming increase to the quarterly distribution.
The potential downside risk for income-seeking investors is Gilead's reported interest in pursing a high-dollar buyout of a revenue-generating company in order to bolster its top line. Unfortunately, such an acquisition may result in a reduction in the company's shareholder reward programs in the near term.
Having said that, Gilead isn't exactly known for breaking the bank when it comes to M&A, meaning that the biotech's growing dividend program is probably safe going forward.
Pfizer remains committed to its dividend as the Allergan merger looms large
Despite announcing a plan to merge with Botox-maker Allergan in one of the largest deals in the history of the healthcare sector, Pfizer's management has repeatedly stated that it has no plans to reduce shareholder rewards in the near term. In fact, Pfizer recently announced a 7% increase to its quarterly payout starting in the first quarter of 2016.
Looking ahead, Pfizer's 4% yield at current levels appears to be safe even after this deal goes through sometime in the second half of 2016 for two reasons. The first key issue to understand is that Pfizer is actually going to lower its effective tax rate from around 24% to an estimated 15% once it moves to tax-friendly Ireland -- freeing up more cash for shareholder rewards in the process.
The other issue at play is that Pfizer has something along the lines of $50 billion in cash overseas. This mountain of cash should be more readily available to the drugmaker upon relocating to Ireland, meaning that it should have little problem supporting its current dividend and completing this megamerger with Allergan at the same time.
Are Gilead and Pfizer compelling buys right now?
I like both of these drugmakers at current levels. Gilead is presently trading at a highly compressed forward price-to-earnings ratio of 7.22, despite repeatedly proving its ability to fend off would-be competitors to its main revenue drivers. Pfizer, on the other hand, is set to create tremendous value for shareholders by merging with Allergan due to the latter's diverse portfolio of growth products like the constipation drug Linzess and the double-chin treatment Kybella -- along with the substantial tax benefits that are part and parcel of this merger.
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The article Forget AbbVie Inc.: Here Are 2 Better Dividend Stocks originally appeared on Fool.com.
George Budwell owns shares of Allergan PLC and Pfizer. 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 .
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. | Because of the forthcoming patent expiration for the drugmaker's top-selling anti-inflammatory medicine Humira, AbbVie has taken an aggressive approach to mergers and acquisitions that has helped bring its total outstanding debt to over $32 billion at last count. AbbVie has long been a favorite name among income-seeking investors because it's a Dividend Aristocrat that offers a substantial yield of 4.3% at current levels, combined with the fact that the company has grown its top line at industry-leading levels since being spun off from Abbott Laboratories in 2013. AbbVie's glory days, though, may be coming to an abrupt end. | AbbVie has long been a favorite name among income-seeking investors because it's a Dividend Aristocrat that offers a substantial yield of 4.3% at current levels, combined with the fact that the company has grown its top line at industry-leading levels since being spun off from Abbott Laboratories in 2013. AbbVie's glory days, though, may be coming to an abrupt end. Because of the forthcoming patent expiration for the drugmaker's top-selling anti-inflammatory medicine Humira, AbbVie has taken an aggressive approach to mergers and acquisitions that has helped bring its total outstanding debt to over $32 billion at last count. | AbbVie has long been a favorite name among income-seeking investors because it's a Dividend Aristocrat that offers a substantial yield of 4.3% at current levels, combined with the fact that the company has grown its top line at industry-leading levels since being spun off from Abbott Laboratories in 2013. AbbVie's glory days, though, may be coming to an abrupt end. Because of the forthcoming patent expiration for the drugmaker's top-selling anti-inflammatory medicine Humira, AbbVie has taken an aggressive approach to mergers and acquisitions that has helped bring its total outstanding debt to over $32 billion at last count. | AbbVie has long been a favorite name among income-seeking investors because it's a Dividend Aristocrat that offers a substantial yield of 4.3% at current levels, combined with the fact that the company has grown its top line at industry-leading levels since being spun off from Abbott Laboratories in 2013. AbbVie's glory days, though, may be coming to an abrupt end. Because of the forthcoming patent expiration for the drugmaker's top-selling anti-inflammatory medicine Humira, AbbVie has taken an aggressive approach to mergers and acquisitions that has helped bring its total outstanding debt to over $32 billion at last count. |
26659.0 | 2016-02-17 00:00:00 UTC | 3 Quotes Show Gilead Sciences' New CEO Is Ready to Deal | ABBV | https://www.nasdaq.com/articles/3-quotes-show-gilead-sciences-new-ceo-ready-deal-2016-02-17 | nan | nan | Source: Gilead Sciences.
Gilead Sciences ' long-standing CEO, John Martin, has handed over the reins to his longtime ally John Milligan, and that's raised questions over whether Milligan could kick off his era at the helm by making a big M&A splash. Although there's no telling what Milligan may do this year, his comments during the company's recent fourth-quarterearnings conference callindicates deal-making is a strong possibility.
Right off the bat
"I will continue to work hard to help Gilead's business grow beyond antivirals and into new therapeutic areas for the betterment of patients," Milligan said.
Milligan's comments, which were made when Martin introduced him at the start of the company's conference call, show he's committed right out of the gate to growing the company's pipeline beyond its core HIV and hepatitis C drugs.
Last year, sales of antiviral therapies used to treat those indications accounted for a whopping $30.2 billion of the company's $32.1 billion in revenue, and thus, antivirals are going to remain a key driver of the company's sales for a long time. However, expanding into new markets and reducing the company's reliance on those drugs is critical to the company's future growth, because emerging threats from ViiV Healthcarein HIV and from AbbVie and Johnson & Johnsonin HCV could mean stiff headwinds are up ahead.
Picking a direction
When Milligan was asked about Gilead Sciences' plans in oncology, Milligan suggested the company is OK with doubling down on the indication despite lackluster results so far. "It's pretty clear we have to do additional partnerships or find other avenues to broaden the revenue stream there for the future," he said.
Sales of the company's first cancer drug, Zydelig, have been slow to materialize, and at $132 million last year, sales remain a far cry south of the billion dollar-plus run-rate of AbbVie's Imbruvica, a drug that launched around the same time and that competes against Zydelg in chronic lymphoblastic leukemia.
Gilead Sciences is studying Zydelig in hope of expanding its use, and it's working on other oncology therapies, too, including promising kinase inhibitors, but a deal may be necessary if the company really wants to be a big player in this huge and growing market.
Accelerating the timeline
Milligan knows the the company has a bit of a problem on its hands. Gilead Sciences' rapid sales and profit growth is slowing as the market for hepatitis C therapy matures, and as a result, moving the needle isn't going to be easy now that sales are above $30 billion and competitors are vying for market share.
This year, the company thinks sales will slip to between $30 billion and $31 billion, and while Gilead Sciences' management is famous for sandbagging results to rein in analyst expectations, it's likely that its track record of double-digit top-line sales growth ended in 2015.
Given investors reward growth and punish stagnation, figuring out a way to spark sales has got to be on Milligan's radar. That's why Milligan had this to say:
"We're very interested in acquiring assets through partnerships or potentially acquisition that could help us grow in those areas. And with the tripling of our revenue over the last few years, the need to do so sooner rather than later is heightened."
Fool-worthy bottom line
Gilead Sciences' success is remarkable, but it also sets the bar high for Milligan, who will need to demonstrate a long-haul ability to out-compete and out-maneuver competitors if he wants to surpass Martin's achievements. Doing so will probably require Martin to orchestrate some savvy and transformative deal-making, but he's got plenty of financial flexibility at his fingertips. Gilead Sciences' cash war chest totaled an envy-inspiring $26.2 billion in December.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 3 Quotes Show Gilead Sciences' New CEO Is Ready to Deal originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences. Todd owns shares in 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 Gilead Sciences. The Motley Fool recommends Johnson & 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 .
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. | However, expanding into new markets and reducing the company's reliance on those drugs is critical to the company's future growth, because emerging threats from ViiV Healthcarein HIV and from AbbVie and Johnson & Johnsonin HCV could mean stiff headwinds are up ahead. Sales of the company's first cancer drug, Zydelig, have been slow to materialize, and at $132 million last year, sales remain a far cry south of the billion dollar-plus run-rate of AbbVie's Imbruvica, a drug that launched around the same time and that competes against Zydelg in chronic lymphoblastic leukemia. Right off the bat "I will continue to work hard to help Gilead's business grow beyond antivirals and into new therapeutic areas for the betterment of patients," Milligan said. | However, expanding into new markets and reducing the company's reliance on those drugs is critical to the company's future growth, because emerging threats from ViiV Healthcarein HIV and from AbbVie and Johnson & Johnsonin HCV could mean stiff headwinds are up ahead. Sales of the company's first cancer drug, Zydelig, have been slow to materialize, and at $132 million last year, sales remain a far cry south of the billion dollar-plus run-rate of AbbVie's Imbruvica, a drug that launched around the same time and that competes against Zydelg in chronic lymphoblastic leukemia. Gilead Sciences ' long-standing CEO, John Martin, has handed over the reins to his longtime ally John Milligan, and that's raised questions over whether Milligan could kick off his era at the helm by making a big M&A splash. | However, expanding into new markets and reducing the company's reliance on those drugs is critical to the company's future growth, because emerging threats from ViiV Healthcarein HIV and from AbbVie and Johnson & Johnsonin HCV could mean stiff headwinds are up ahead. Sales of the company's first cancer drug, Zydelig, have been slow to materialize, and at $132 million last year, sales remain a far cry south of the billion dollar-plus run-rate of AbbVie's Imbruvica, a drug that launched around the same time and that competes against Zydelg in chronic lymphoblastic leukemia. Last year, sales of antiviral therapies used to treat those indications accounted for a whopping $30.2 billion of the company's $32.1 billion in revenue, and thus, antivirals are going to remain a key driver of the company's sales for a long time. | However, expanding into new markets and reducing the company's reliance on those drugs is critical to the company's future growth, because emerging threats from ViiV Healthcarein HIV and from AbbVie and Johnson & Johnsonin HCV could mean stiff headwinds are up ahead. Sales of the company's first cancer drug, Zydelig, have been slow to materialize, and at $132 million last year, sales remain a far cry south of the billion dollar-plus run-rate of AbbVie's Imbruvica, a drug that launched around the same time and that competes against Zydelg in chronic lymphoblastic leukemia. Gilead Sciences' rapid sales and profit growth is slowing as the market for hepatitis C therapy matures, and as a result, moving the needle isn't going to be easy now that sales are above $30 billion and competitors are vying for market share. |
26660.0 | 2016-02-16 00:00:00 UTC | XBI, XON, BXLT, ABBV: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xbi-xon-bxlt-abbv-large-outflows-detected-etf-2016-02-16 | 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 Biotech ETF (Symbol: XBI) where we have detected an approximate $103.8 million dollar outflow -- that's a 6.5% decrease week over week (from 33,650,000 to 31,450,000). Among the largest underlying components of XBI, in trading today Intrexon Corp (Symbol: XON) is up about 1.9%, Baxalta Inc (Symbol: BXLT) is up about 0.1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average:
Looking at the chart above, XBI's low point in its 52 week range is $44.16 per share, with $91.11 as the 52 week high point - that compares with a last trade of $48.16. 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 XBI, in trading today Intrexon Corp (Symbol: XON) is up about 1.9%, Baxalta Inc (Symbol: BXLT) is up about 0.1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $44.16 per share, with $91.11 as the 52 week high point - that compares with a last trade of $48.16. 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 XBI, in trading today Intrexon Corp (Symbol: XON) is up about 1.9%, Baxalta Inc (Symbol: BXLT) is up about 0.1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $44.16 per share, with $91.11 as the 52 week high point - that compares with a last trade of $48.16. 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 XBI, in trading today Intrexon Corp (Symbol: XON) is up about 1.9%, Baxalta Inc (Symbol: BXLT) is up about 0.1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Biotech ETF (Symbol: XBI) where we have detected an approximate $103.8 million dollar outflow -- that's a 6.5% decrease week over week (from 33,650,000 to 31,450,000). For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $44.16 per share, with $91.11 as the 52 week high point - that compares with a last trade of $48.16. | Among the largest underlying components of XBI, in trading today Intrexon Corp (Symbol: XON) is up about 1.9%, Baxalta Inc (Symbol: BXLT) is up about 0.1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $44.16 per share, with $91.11 as the 52 week high point - that compares with a last trade of $48.16. 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). |
26661.0 | 2016-02-16 00:00:00 UTC | 3 Cheap Growth Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-cheap-growth-stocks-you-can-buy-right-now-2016-02-16 | nan | nan | Image source: AbbVie.
However, there are other reasons to believe that AbbVie could be in great shape. For example, growth from blood cancer drug Imbruvica and hepatitis C therapy Viekira Pak could power AbbVie to new heights over the next five years. Imbruvica has delivered substantially improved response rates in certain blood cancers, which has AbbVie thinking it could generate the company up to $7 billion in peak annual sales when all is said and done. Viekira Pak should see a benefit when a once-daily formulation is brought to market. Hepatitis C is a disease affecting 180 million people worldwide, so we're talking about a large moat for AbbVie.
AbbVie also has a very exciting pipeline beyond its established products. ABT-494 looks to be a next-generation rheumatoid arthritis treatment that, as a once-daily formulation, delivered ARC20 response rates ranging from 56% to 71% in patients with a poor anti-TNF treatment response, and an ARC20 response of 65% to 82% in methotrexate inadequate response patients in two mid-stage trials. Venetoclax, a BCL2 inhibitor, also showed strong efficacy in relapsed and refractory chronic lymphocytic leukemia patients in combination with Rituxan.
Slated to see EPS head well over $7 by 2019, and already paying a superior yield relative to the broader market, AbbVie could be a smart name for value and growth investors to consider.
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The article 3 Cheap Growth Stocks You Can Buy Right Now originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy .
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. | For example, growth from blood cancer drug Imbruvica and hepatitis C therapy Viekira Pak could power AbbVie to new heights over the next five years. Imbruvica has delivered substantially improved response rates in certain blood cancers, which has AbbVie thinking it could generate the company up to $7 billion in peak annual sales when all is said and done. Slated to see EPS head well over $7 by 2019, and already paying a superior yield relative to the broader market, AbbVie could be a smart name for value and growth investors to consider. | For example, growth from blood cancer drug Imbruvica and hepatitis C therapy Viekira Pak could power AbbVie to new heights over the next five years. Image source: AbbVie. However, there are other reasons to believe that AbbVie could be in great shape. | For example, growth from blood cancer drug Imbruvica and hepatitis C therapy Viekira Pak could power AbbVie to new heights over the next five years. Imbruvica has delivered substantially improved response rates in certain blood cancers, which has AbbVie thinking it could generate the company up to $7 billion in peak annual sales when all is said and done. Image source: AbbVie. | For example, growth from blood cancer drug Imbruvica and hepatitis C therapy Viekira Pak could power AbbVie to new heights over the next five years. Imbruvica has delivered substantially improved response rates in certain blood cancers, which has AbbVie thinking it could generate the company up to $7 billion in peak annual sales when all is said and done. Image source: AbbVie. |
26662.0 | 2016-02-13 00:00:00 UTC | 3 Top Dividend Stocks for Retirees to Buy | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-retirees-buy-2016-02-13 | nan | nan | Selena Maranjian : One appealing stock for retirees to consider buying is Realty Income. It's a real estate investment trust (REIT) and so must pay out at least 90% of its income as dividends. Thus, it sports a solid dividend that recently yielded 4.3% -- and that payout has increased by an annual average of about 7% over the past five years, via more than 80 increases since 1994. Realty Income makes monthly payments, too, instead of the more conventional quarterly ones.
So what does the company do? Well, it owns, operates, and leases real estate properties -- close to 4,500 of them. It does so very well, too, with overall occupancy rates recently topping 98% -- and never having dipped below 96%. About 80% of its properties are retail ones, with top tenants including Walgreens Boots Alliance , FedEx , and Dollar General . Close to 13% of its properties are industrial, and 6% are offices. Better still, no single tenant generates more than 7% of its revenue, giving its income a little more stability through diversification. Its properties are distributed geographically, too, across 49 states and Puerto Rico.
Realty Income is a solid choice for retirees seeking income. If its payout keeps rising over the coming decade at 5% annually, it will yield about 7% on the amount you invest in it today. Most of its tenants have signed long-term leases that include rent increases, and they are often also expected to pay for maintenance, taxes, and insurance, too. That removes much risk from Realty Income and leaves it positioned to collect regular rent checks. Since most of its tenants are retailers, they won't consider moving easily, either, as that would be disruptive to their customers. If you seek income in retirement, give this stock some consideration.
As you plan for your retirement, don't expect Social Security alone to keep you afloat. The average annual retirement benefit was recently just $16,000. Even if you can double that by having earned more than average and employing smart Social Security strategies, it likely won't be enough. Give dividend-paying stocks serious consideration, as they can be a great support in retirement.
The $15,978 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.
The article 3 Top Dividend Stocks for Retirees to Buy originally appeared on Fool.com.
Brian Feroldi has no position in any stocks mentioned. Brian Stoffel has no position in any stocks mentioned. Selena Maranjian owns shares of Realty Income and Verizon Communications. The Motley Fool recommends FedEx and Verizon Communications. 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. | About 80% of its properties are retail ones, with top tenants including Walgreens Boots Alliance , FedEx , and Dollar General . Most of its tenants have signed long-term leases that include rent increases, and they are often also expected to pay for maintenance, taxes, and insurance, too. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. | Thus, it sports a solid dividend that recently yielded 4.3% -- and that payout has increased by an annual average of about 7% over the past five years, via more than 80 increases since 1994. Well, it owns, operates, and leases real estate properties -- close to 4,500 of them. Selena Maranjian owns shares of Realty Income and Verizon Communications. | Selena Maranjian : One appealing stock for retirees to consider buying is Realty Income. Realty Income is a solid choice for retirees seeking income. If you seek income in retirement, give this stock some consideration. | If you seek income in retirement, give this stock some consideration. Even if you can double that by having earned more than average and employing smart Social Security strategies, it likely won't be enough. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. |
26663.0 | 2016-02-12 00:00:00 UTC | These 7 Single-Digit P/E Stocks Could Collectively Deliver $600 Billion in Free Cash Flow by 2020 | ABBV | https://www.nasdaq.com/articles/these-7-single-digit-pe-stocks-could-collectively-deliver-600-billion-free-cash-flow-2020 | nan | nan | Image source: Flickr user Zack McCarthy.
There are few ways to describe the start of 2016 for investors more aptly than "Yuck!" The first two weeks of the year marked the worst start in the markets' recorded history, and the subsequent three weeks haven't offered any improvement.
Using free cash flow to your advantage
So what's an investor to do? One of the smartest moves that can be considered is picking out high-quality, established businesses that are capable of generating significant cash flow regardless of whether or not the U.S. economy is slowing. But a company's perceived value also should be taken into consideration. Just because a company is generating cash flow doesn't mean that investors are going to be willing to chase a P/E of 50 in a volatile, falling market.
It was this thinking that prompted me to run a relatively simple stock screen that aimed to find companies trading at a substantial discount to the forward P/E of the S&P 500 -- in this instance a forward P/E under 10 -- and which offered substantial free cash flow generation -- arbitrarily I chose an average of $4 billion per year. Lastly, the overall dynamics of each company was taken into consideration -- i.e., if this a company that could outperform even during a recession.
Why focus on FCF? So many good things can come from strong FCF generation. There's more money to boost dividends, buy back shares of common stock, boost wages to keep top talent, and fund earnings accretive acquisitions.
Image source: Pixabay.
Seven single-digit stocks with serious free cash flow generation
The results of the stock screen above? How about seven single-digit P/E stocks that collectively could generate $600 billion in free cash flow, or FCF, by 2020.
1. Apple
There is no discussion about FCF without technology kingpin Apple , which wound up clearing nearly $70 billion in FCF in 2015. Apple has been helped by the introduction of the iPhone 6s, as well as consumers' seemingly insatiable appetite for all things Apple.
But Apple is transitioning beyond just a products company and becoming more of a platforms play. Apple Pay, the company's relatively new mobile-payment platform that offers improved financial protection, its Watch, which combines wearable technology with fashion, and even its experimental Apple Car, expands its reach into new markets on a regular basis. Apple's growth may be slowing from its expected lightning-fast pace, but its forward P/E of nine implies value.
Image source: Gilead Sciences.
2. Gilead Sciences
Gilead Sciences may not be a household name like Apple, but its dynamic duo of Harvoni and Sovaldi for hepatitis C brought in north of $19 billion in sales during 2015, and helped generate $20.3 billion in FCF. The World Health Organization estimates there are 180 million people infected with HCV worldwide, giving Gilead a sizable and extended market opportunity. It also doesn't hurt that, in terms of convenience and efficacy, Harvoni has been a superstar, and a pan-genotypic HCV therapy is also in development.
On top of hepatitis C, Gilead's HIV franchise with Stribild, and more recently Genvoya, are expected to contribute billions annually. Pharmaceuticals are a smart play in any market because people can't control when they get sick, which tends to lead to strong drug prices. Following the rough start, Gilead is now trading at just seven times forward earnings.
3. IBM
Big Blue may have fallen on hard times of late, but it's still a monster when it comes to legacy enterprise software and an up-and-coming giant in cloud-based software. It's also a company that Warren Buffett has taken a particular liking to. The Oracle of Omaha has scooped up more than 81 million shares of IBM , or nearly 8.5% of outstanding shares. Buffett is arguably the most-followed value investor.
The real story of late has been Big Blue's surging cloud revenue. Cloud revenue grew 57% year over year in 2015 on a constant-currency basis, and totaled $10.2 billion, or close to an eighth of IBM's total revenue. At this pace, around a quarter of IBM's sales could be cloud based by 2018/2019. Following a rough two-year patch, IBM is trading at less than nine times forward profits.
Image source: Teva Pharmaceutical.
4. Teva Pharmaceutical
Back to drugmakers, once again, with Teva Pharmaceutical . Teva is an interesting case because only half of its business is dependent on innovative brand-name drugs, such as Copaxone XR for relapsing multiple sclerosis. The other half of Teva's revenue generation comes from well over 1,000 unique molecules that it could market generically. Generic medicines may not offer the juiciest margins, but they make up for it in sheer volume. Generics offer endless pipeline potential for Teva.
Like Gilead, Teva benefits from the inelasticity in demand from nearly all of its medicines, brand name or generic. This makes Teva potentially investment-worthy regardless of what the stock market or U.S. economy are doing. Teva is currently trading at a forward P/E that's ever-so-slightly below 10.
5. Qualcomm
Competition might be pressuring Qualcomm of late, but the manufacturer of wireless connectivity chips still has a stranglehold command over its rivals. As it pertains to baseband market share, Qualcomm wrangled in 55% share in Q3 2015, and it also gobbled up 16% share in the tablet applications-processor market in Q3. Being such a longtime dominant player in wireless has allowed Qualcomm to establish seemingly unbreakable bonds with its large customers, and it's certainly helped when it comes to predictable cash flow generation.
The real excitement comes when examining Qualcomm's role in the Internet of Things. Imagine medical information being wirelessly sent to your doctor, or your thermostat and refrigerator working together to minimize energy usage. This is the future, and it's a big opportunity for wireless chipmakers like Qualcomm, which is valued at just nine times forward profits.
2016 F-150 Limited. Image source: Ford Motor.
6. Ford Motor
You can still put some pep in your portfolios' step with an automaker like Ford , which has found a way to take advantage of domestic and foreign growth. Ford's resurgence has come about due to a number of factors. It's focused on improving the feel of its interior cabins by boosting technological amenities and enhancing their spaciousness. It's improved its fuel efficiency in a big way with the implementation of its EcoBoost engine in a broader variety of vehicles. It's even looked to China, the world's largest auto market, to improve sales and profits, and taken care to offer lower price points for first-time buyers in domestic and foreign markets.
Ford also hasn't lost touch with the fact that its trucks and SUVs are its bread and butter. Trucks and SUVs sport better margins than many of Ford's sedans, and in 2015, Ford wound up selling 780,354 F-Series trucks in the U.S., the sixth consecutive year of growth. Ford shares are valued at just five times forward earnings.
7. AbbVie
Last but not least, we again return to the drugmakers, with AbbVie . AbbVie's Humira, a treatment for a handful of anti-inflammatory diseases, is currently the best-selling drug in the world. AbbVie sales topped the $14 billion mark in 2015, the first time any drug has ever hit that mark.
Image source: AbbVie.
However, AbbVie has more going for it than just Humira. Two drugs in its back pocket, Viekira Pak and Imbruvica, are set to drive growth for years to come. Imbruvica was acquired when AbbVie bought Pharmacyclics for $21 billion, and it looks to completely revolutionize the treatment of certain blood cancers.
AbbVie believes sales of Imbruvica could hit as much as $7 billion at their peak. Likewise, AbbVie should soon have a once-daily HCV version of Viekira Pak on the market, which could bring in billions annually. AbbVie is valued at just nine times forward earnings.
Cash, cash, and more cash!
Aside from all of these companies trading at single-digit P/Es, and having favorable long-term outlooks, they're also FCF giants. Utilizing their 2015 FCF, historical FCF growth, and taking into account various business dynamics, I've estimated total FCF generation between 2016 and 2020 for all seven companies. Keep in mind that this is purely subjective; but here's how much each company could bring to the table in FCF over the next five years:
Apple: $330 billion
Gilead Sciences: $85 billion
IBM: $70 billion
Teva Pharmaceutical: $25 billion
Qualcomm: $25 billion
Ford Motor: $40 billion
AbbVie: $25 billion
This works out to a cool $600 billion in cumulative FCF by 2020. Imagine how much of that could be used to grow dividends, buy back common stock, or be put to work to boost profitability!
It's probably also worth mentioning that all seven of these FCF giants pay a dividend. If you bought these seven stocks right now, your average yield would be 3.5%! That's more than 50% higher than the broad-based S&P 500.
If you want to put your money to work in a volatile market environment, consider following companies with strong FCF generation that are also attractive values relative to the broader market.
The $15,978 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.
The article These 7 Single-Digit P/E Stocks Could Collectively Deliver $600 Billion in Free Cash Flow by 2020 originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of and recommends Apple, Ford, Gilead Sciences, and Qualcomm. It also recommends Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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. | AbbVie Last but not least, we again return to the drugmakers, with AbbVie . AbbVie's Humira, a treatment for a handful of anti-inflammatory diseases, is currently the best-selling drug in the world. AbbVie sales topped the $14 billion mark in 2015, the first time any drug has ever hit that mark. | Keep in mind that this is purely subjective; but here's how much each company could bring to the table in FCF over the next five years: Apple: $330 billion Gilead Sciences: $85 billion IBM: $70 billion Teva Pharmaceutical: $25 billion Qualcomm: $25 billion Ford Motor: $40 billion AbbVie: $25 billion This works out to a cool $600 billion in cumulative FCF by 2020. AbbVie Last but not least, we again return to the drugmakers, with AbbVie . AbbVie's Humira, a treatment for a handful of anti-inflammatory diseases, is currently the best-selling drug in the world. | Keep in mind that this is purely subjective; but here's how much each company could bring to the table in FCF over the next five years: Apple: $330 billion Gilead Sciences: $85 billion IBM: $70 billion Teva Pharmaceutical: $25 billion Qualcomm: $25 billion Ford Motor: $40 billion AbbVie: $25 billion This works out to a cool $600 billion in cumulative FCF by 2020. AbbVie Last but not least, we again return to the drugmakers, with AbbVie . AbbVie's Humira, a treatment for a handful of anti-inflammatory diseases, is currently the best-selling drug in the world. | Keep in mind that this is purely subjective; but here's how much each company could bring to the table in FCF over the next five years: Apple: $330 billion Gilead Sciences: $85 billion IBM: $70 billion Teva Pharmaceutical: $25 billion Qualcomm: $25 billion Ford Motor: $40 billion AbbVie: $25 billion This works out to a cool $600 billion in cumulative FCF by 2020. AbbVie Last but not least, we again return to the drugmakers, with AbbVie . AbbVie's Humira, a treatment for a handful of anti-inflammatory diseases, is currently the best-selling drug in the world. |
26664.0 | 2016-02-12 00:00:00 UTC | 3 Reasons Bristol-Myers Squibb Co Stock Could Rise | ABBV | https://www.nasdaq.com/articles/3-reasons-bristol-myers-squibb-co-stock-could-rise-2016-02-12 | nan | nan | Public outcry over prescription drug expenses, a strong dollar, and a general pullback in the broader market have the SPDR S&P Pharmaceuticals index off more than 34% over the past six months. Although its industry has been sinking, Bristol-Myers Squibb stock has remained relatively buoyant.
1. Eliquis finally lifts off
After winning its first FDA approval in late 2012, next-generation blood thinner Eliquis didn't exactly burst out of the gates. Later expansion of its label to reduce clots following hip or knee replacement and for the treatment of thrombosis and embolism helped it take a huge leap forward. Last year, sales of the oral anticoagulant jumped 140% to $1.86 billion.
Eliquis isn't the only new oral anticoagulant out there, but it's on its way to becoming the top seller. Competition from Johnson & Johnson 's Xarelto has been fierce, but the market leader is barely a step ahead with $1.87 billion in sales last year. If both maintain their current trajectory, Eliquis will overtake Xarelto in the first quarter of 2016.
Eliquis' success is far more important to Bristol-Myers than Xarelto's is to the megaconglomerate. Eliquis sales comprised 11% of Bristol's total revenue last year. Another big year for the anticoagulant would significantly improve Bristol's top line and likely help nudge its share price upwards as well.
2. Rapid Opdivo expansion
Another potential blockbuster poised to move the needle for Bristol is its immuno-oncology star, Opdivo, a drug that blocks the PD-1 pathway that tumors exploit to hide from the immune system. Its main competitor in the anti-PD1 space, Keytruda from Merck& Co. , had a strong lead to begin 2015. By the end of the year ,that lead evaporated -- fourth quarter Opdivo sales of $475 million more than doubled those of Keytruda.
Image source: Bristol-Myers Squibb.
A large part of Opdivo's acceleration has been a string of important label expansions, the most notable of which is in lung cancer. While Keytruda is indicated for some lung cancer patients, it is limited to those with tumors that express high levels of PD-L1 -- a part of the blocked pathway. This means oncologists must perform an FDA-approved genetic test in order to prescribe it. Opdivo isn't hindered by this complicated diagnostic restriction.
The label continues to expand at a mind-boggling rate. Late last year the FDA approved Opdivo for treatment of advanced kidney cancer and another genetically defined group of advanced melanoma patients. More recently, the the agency approved another label expansion for Opdivo in combination with Bristol's first immuno-oncology drug, Yervoy, for treatment of certain melanoma patients.
Coming soon could be another expansion into advanced head-and-neck cancer. Earlier this year Opdivo proved so effective at prolonging survival in a phase 3 trial that data monitors suggested quitting early. Bristol hasn't announced the filing of an application yet, but I wouldn't be surprised if head-and-neck cancer patients become eligible for Opdivo treatment before the end of the year.
As these recent label expansions and additional filings in the years ahead propel Opdivo toward its peak annual sales estimate of $13 billion, the stock should rise as well.
3. Another immuno-oncology first
Opdivo wasn't the only cancer therapy Bristol-Myers won approval for late last year. Empliciti is a first-in-class immunostimulator that coaxes patients' own natural killer cells into attacking multiple myeloma cells. Developed in partnership with AbbVie , it's approved for treatment in combination with Celgene 's Revlimid and dexamethasone.
During a trial that led to its approval, adding Empliciti to the standard Revlimid/dexamethasone combination slowed disease progression by 30%. Also eliciting "oohs" and "aahs" from oncologists was a nearly 20% increase in the percentage of patients responding to the three-drug combo.
Image source: Bristol-Myers Squibb.
Although AbbVie collaborated in the development of Empliciti, Bristol-Myers is solely responsible for its commercialization. In return, Bristol will receive 70% of U.S. profits, with the remaining 30% going to AbbVie. For sales generated outside the U.S., AbbVie will receive an undisclosed royalty.
With a bit of luck, Empliciti could become a blockbuster for Bristol-Myers and AbbVie. It has some big hurdles to cross, and its list price of about $10,000 per month could weigh it down. For patients that have received three lines of treatment, it will compete with Johnson & Johnson's recently-approved Darzalex. With a list price of about $135,550 for a first full year of treatment, Darzalex isn't cheap, but it doesn't need to be combined with $14,000 per month of Revlimid.
Roughly 30,000 new cases of multiple myeloma are expected to be diagnosed in the U.S. this year. Just how many will progress after their first therapy and become eligible for an Empliciti regimen is just one unknown. Add in competition from Celgene's Pomalyst, Amgen 's Kyprolis, and Takeda 's Velcade, and Empliciti's future becomes cloudier still.
While it has potential to significantly boost Bristol's earnings, and in turn its share price, I wouldn't pin hopes of a Bristol-Myers stock rally on Empliciti alone. Luckily, it's not the only recently approved drug poised to drive the company's growth in the years ahead.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 3 Reasons Bristol-Myers Squibb Co Stock Could Rise originally appeared on Fool.com.
Cory Renauer owns shares of Johnson & Johnson. The Motley Fool owns shares of and recommends Celgene. The Motley Fool recommends Johnson & 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 .
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. | Developed in partnership with AbbVie , it's approved for treatment in combination with Celgene 's Revlimid and dexamethasone. Although AbbVie collaborated in the development of Empliciti, Bristol-Myers is solely responsible for its commercialization. In return, Bristol will receive 70% of U.S. profits, with the remaining 30% going to AbbVie. | Developed in partnership with AbbVie , it's approved for treatment in combination with Celgene 's Revlimid and dexamethasone. Although AbbVie collaborated in the development of Empliciti, Bristol-Myers is solely responsible for its commercialization. In return, Bristol will receive 70% of U.S. profits, with the remaining 30% going to AbbVie. | Developed in partnership with AbbVie , it's approved for treatment in combination with Celgene 's Revlimid and dexamethasone. Although AbbVie collaborated in the development of Empliciti, Bristol-Myers is solely responsible for its commercialization. In return, Bristol will receive 70% of U.S. profits, with the remaining 30% going to AbbVie. | Developed in partnership with AbbVie , it's approved for treatment in combination with Celgene 's Revlimid and dexamethasone. Although AbbVie collaborated in the development of Empliciti, Bristol-Myers is solely responsible for its commercialization. In return, Bristol will receive 70% of U.S. profits, with the remaining 30% going to AbbVie. |
26665.0 | 2016-02-11 00:00:00 UTC | This FDA Panel Decision Just Changed the Game | ABBV | https://www.nasdaq.com/articles/fda-panel-decision-just-changed-game-2016-02-11 | nan | nan | Now here's where things get interesting: Humira is approved to treat nine therapeutic inflammatory indications within the United States. If ABP 501 clears the FDA's hurdles and is also approved, might it be able to use Celltrion's extrapolation argument to attack all nine of Humira's therapeutic indications? These are the questions suddenly raised by the FDA panel's historic vote.
Two big unanswered questions
The introduction of biosimilars raises two big questions that we really don't have the answers to yet.
First, we need to see if the FDA will run with the idea of extrapolation and approve a biosimilar for multiple indications even though it was only tested in a narrow set of therapeutic indications. As noted above, it does tend to follow the suggestions of its FDA panel, but the correlation isn't perfect. We should know whether Celltrion's biosimilar candidate is a genuine threat to Johnson & Johnson's Remicade before the end of the first quarter.
If Celltrion proves victorious, then we move on to what could be the longest part of the biosimilar marketing process: clearing the legal hurdles. It's worth emphasizing that receiving regulatory approval is a different matter entirely than being legally cleared to market a drug. Johnson & Johnson is prepared to vigorously defend its patents, just as AbbVie, Roche , and other drug development giants are willing to do. There is no legal precedence when it comes to biosimilars, and arguably biosimilars have unique intellectual property of their own, which is going to make this matter extremely complicated. Manufacturing and development processes for biosimilars can be difficult to classify, making matters even more challenging.
Ultimately, the consumer should be excited about the eventual entrance of biosimilars into the marketplace since they're expected to price 10% to 50% below innovator drugs. However, for investors, this could turn into a murky mess for years to come. It's pretty cut-and-dried what happens when patents expire, but introducing a therapy based on living cells is an entirely different story that has an outcome that no one can predict at the moment.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 This FDA Panel Decision Just Changed the Game originally appeared on Fool.com.
Sean Williamshas no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool recommends Johnson & 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 .
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. | Johnson & Johnson is prepared to vigorously defend its patents, just as AbbVie, Roche , and other drug development giants are willing to do. If ABP 501 clears the FDA's hurdles and is also approved, might it be able to use Celltrion's extrapolation argument to attack all nine of Humira's therapeutic indications? If Celltrion proves victorious, then we move on to what could be the longest part of the biosimilar marketing process: clearing the legal hurdles. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Johnson & Johnson is prepared to vigorously defend its patents, just as AbbVie, Roche , and other drug development giants are willing to do. If Celltrion proves victorious, then we move on to what could be the longest part of the biosimilar marketing process: clearing the legal hurdles. | Johnson & Johnson is prepared to vigorously defend its patents, just as AbbVie, Roche , and other drug development giants are willing to do. First, we need to see if the FDA will run with the idea of extrapolation and approve a biosimilar for multiple indications even though it was only tested in a narrow set of therapeutic indications. There is no legal precedence when it comes to biosimilars, and arguably biosimilars have unique intellectual property of their own, which is going to make this matter extremely complicated. | Johnson & Johnson is prepared to vigorously defend its patents, just as AbbVie, Roche , and other drug development giants are willing to do. These are the questions suddenly raised by the FDA panel's historic vote. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool recommends Johnson & Johnson. |
26666.0 | 2016-02-11 00:00:00 UTC | ABBV a Top 25 Dividend Giant With $2.96B Held By ETFs | ABBV | https://www.nasdaq.com/articles/abbv-top-25-dividend-giant-296b-held-etfs-2016-02-11 | nan | nan | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $2.96B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 4.33% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points.
The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2016. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $2.96B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 4.33% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $2.96B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 4.33% yield, according to the most recent Dividend Channel''DividendRank'' report. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2016. | AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $2.96B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 4.33% yield, according to the most recent Dividend Channel''DividendRank'' report. The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2016. The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. | The report noted a strong quarterly dividend history at AbbVie Inc., and favorable long-term multi-year growth rates in key fundamental data points. The annualized dividend paid by AbbVie Inc. is $2.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/13/2016. AbbVie Inc. (Symbol: ABBV) has been named as a Top 25 ''Dividend Giant'' by ETF Channel , with a whopping $2.96B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 4.33% yield, according to the most recent Dividend Channel''DividendRank'' report. |
26667.0 | 2016-02-09 00:00:00 UTC | 3 Biotech Stocks to Buy in a Market Crash | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-buy-market-crash-2016-02-09 | nan | nan | Source: Flickr user Elliott Brown.
Gilead Sciences , Celgene Corp. , and Regeneron Pharmaceuticals aren't immune to market whims and whispers, but they do share one thing in common; a track record for developing multibillion dollar blockbuster drugs. Given that the NASDAQ Biotechnology ETF has plummeted 26.7% this year, is now a good time to buy shares in these industry titans? Read on to find out why I think adding them to your portfolio may be a profit-friendly move.
No. 1: Gilead Sciences
After launching not one but two multibillion-dollar blockbuster therapies for hepatitis C, Gilead Sciences has seen its annual revenue and earnings surge to $32 billion and $18 billion from $9.4 billion and $2.6 billion three years ago, respectively.
That's envy-inspiring growth, but Gilead Sciences shares have lost 15.7% of their value this year on fear that the company's hepatitis C dominance will be short-lived. As the argument goes, new therapies that work as well as Gilead Sciences' drugs but are cheaper will jeopardize the $19 billion in HCV revenue the company reported last year.
Although that's a risk, it may be foolish to bet against the company. In January 2015, AbbVie Inc . launched Viekira Pak, a cheaper HCV therapy, yet Gilead Sciences still held onto 90% market share in 2015. A similar scenario may play out this year following the recent approval of Merck & Co. 's HCV therapy, Zapatier.
Source: Gilead Sciences.
Zepatier offers solid efficacy and safety, but it's far from a slam dunk that doctors will shift patients to it from Gilead Sciences' Harvoni, a therapy that's arguably performed better in real-world use than it did in its already impressive clinical trials.
Zepatier requires testing to determine if polymorphisms are present in patients that could reduce its efficacy and its contraindicated in patients with moderate to severe liver damage and even if Zepatier does make headway, Gilead Sciences expects an FDA decision on its next generation HCV drug this summer. If that new therapy is approved, then it could allow Gilead Sciences to sidestep Zepatier's threat because Zepatier is only approved for use in genotype 1 and 4 patients and Gilead Sciences' new drug could be approved for use in all genotypes.
Given Gilead Sciences' track record and the fact that its shares trade at a paltry forward P/E ratio that's south of 7, long term investors might want to embrace its shares now that they're on sale.
No. 2: Celgene Corporation
Celgene Corporation has made a mint on the back of its top-selling multiple myeloma drug Revlimid and remarkably, Revlimid's sales, which totaled $5.8 billion in 2015, are still growing at a double digit pace.
Revlimid's approval last year for use as a first-line treatment means it's being prescribed to more patients than ever before, and given additional studies are evaluating Revlimid's use in other indications, sales could still be heading higher. Celgene's management forecasts that Revlimid sales will reach $6.6 billion this year and could eclipse $7 billion in 2017.
Celgene also markets the pancreatic cancer drug Abraxane and the third-line multiple myeloma drug Pomalyst -- two drugs that are on pace to achieve blockbuster status this year -- and Celgene thinks its proriasis drug Otezla could generate peak annual sales of $2 billion someday.
Celgene's ozanimod, a phase 3 oral therapy under development for multiple sclerosis, is also incredibly intriguing. Celgene got ozanimod when it bought Receptos last year and if phase 3 trials pan out, then ozanimod could hit the market with best-in-class safety that allows it to capture a big chunk of the $5 billion plus being spent annually on oral MS drugs.
Interestingly, Celgene's long-range guidance, which calls for a doubling of its sales to $21 billion and for EPS of at least $13 in 2020, only includes $1 billion in ozanimod sales. Therefore, if ozanimod hits the market early and does better than hoped, then Celgene's already heady forecast could end up being too low.
No. 3: Regeneron Pharmaceuticals
It's uncommon to see drugs already bringing in billions of dollars in sales grow by 40%, but that's exactly what happened to Regeneron's Eylea last year.
Greater use of Eylea in patients with vision loss tied to diabetes helped propel Eylea's global net sales to $4.1 billion in 2015. Sales of Eylea in the U.S. jumped 54% to $2.67 billion and sales outside the U.S. grew 36% to $1.41 billion.
Eylea's sales may keep heading higher because the drug is used to treat age related macular degeneration (AMD), a condition that's becoming more common as baby boomers become seniors. Eylea's sales could also increase if Regeneron wins market share away from Lucentis and Avastin, both of which are also multibillion-dollar drugs.
Additionally, the company won approval for its cholesterol-busting drug Praluent last summer and while sales of Praluent were a trickle at $11 million last quarter, the addressable market of patients who could benefit from additional cholesterol lowering therapy is massive. As reimbursement headwinds that may be holding back sales ease, it wouldn't shock me if Praluent sales take a big leap forward this year.
The company may also end up with a third top seller on the market later this year. The FDA is set to make a decision on Regeneron's rheumatoid arthritis drug sarilumab on Oct. 30. If regulators give sarilumab a green light, then it will compete against AbbVie's Humira -- the planet's best selling drug. Given Humira racks up $14 billion a year in sales and results from a trial comparing sarilumab head to head against Humira are expected this year, sarilumab could soon be one more reason investors will want to take advantage of the recent sell-off to add Regeneron to their portfolios.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 3 Biotech Stocks to Buy in a Market Crash originally appeared on Fool.com.
Todd Campbell owns shares of Celgene and Gilead Sciences. 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 Celgene and 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 .
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. | In January 2015, AbbVie Inc . If regulators give sarilumab a green light, then it will compete against AbbVie's Humira -- the planet's best selling drug. Gilead Sciences , Celgene Corp. , and Regeneron Pharmaceuticals aren't immune to market whims and whispers, but they do share one thing in common; a track record for developing multibillion dollar blockbuster drugs. | In January 2015, AbbVie Inc . If regulators give sarilumab a green light, then it will compete against AbbVie's Humira -- the planet's best selling drug. Zepatier requires testing to determine if polymorphisms are present in patients that could reduce its efficacy and its contraindicated in patients with moderate to severe liver damage and even if Zepatier does make headway, Gilead Sciences expects an FDA decision on its next generation HCV drug this summer. | In January 2015, AbbVie Inc . If regulators give sarilumab a green light, then it will compete against AbbVie's Humira -- the planet's best selling drug. 1: Gilead Sciences After launching not one but two multibillion-dollar blockbuster therapies for hepatitis C, Gilead Sciences has seen its annual revenue and earnings surge to $32 billion and $18 billion from $9.4 billion and $2.6 billion three years ago, respectively. | In January 2015, AbbVie Inc . If regulators give sarilumab a green light, then it will compete against AbbVie's Humira -- the planet's best selling drug. 1: Gilead Sciences After launching not one but two multibillion-dollar blockbuster therapies for hepatitis C, Gilead Sciences has seen its annual revenue and earnings surge to $32 billion and $18 billion from $9.4 billion and $2.6 billion three years ago, respectively. |
26668.0 | 2016-02-08 00:00:00 UTC | Notable ETF Inflow Detected - XBI, BXLT, XON, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-inflow-detected-xbi-bxlt-xon-abbv-2016-02-08 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Biotech ETF (Symbol: XBI) where we have detected an approximate $159.8 million dollar inflow -- that's a 10.9% increase week over week in outstanding units (from 30,350,000 to 33,650,000). Among the largest underlying components of XBI, in trading today Baxalta Inc (Symbol: BXLT) is off about 3%, Intrexon Corp (Symbol: XON) is down about 3.4%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average:
Looking at the chart above, XBI's low point in its 52 week range is $45.95 per share, with $91.11 as the 52 week high point - that compares with a last trade of $46.09. 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 XBI, in trading today Baxalta Inc (Symbol: BXLT) is off about 3%, Intrexon Corp (Symbol: XON) is down about 3.4%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $45.95 per share, with $91.11 as the 52 week high point - that compares with a last trade of $46.09. 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 XBI, in trading today Baxalta Inc (Symbol: BXLT) is off about 3%, Intrexon Corp (Symbol: XON) is down about 3.4%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $45.95 per share, with $91.11 as the 52 week high point - that compares with a last trade of $46.09. 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 XBI, in trading today Baxalta Inc (Symbol: BXLT) is off about 3%, Intrexon Corp (Symbol: XON) is down about 3.4%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Biotech ETF (Symbol: XBI) where we have detected an approximate $159.8 million dollar inflow -- that's a 10.9% increase week over week in outstanding units (from 30,350,000 to 33,650,000). For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $45.95 per share, with $91.11 as the 52 week high point - that compares with a last trade of $46.09. | Among the largest underlying components of XBI, in trading today Baxalta Inc (Symbol: BXLT) is off about 3%, Intrexon Corp (Symbol: XON) is down about 3.4%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Biotech ETF (Symbol: XBI) where we have detected an approximate $159.8 million dollar inflow -- that's a 10.9% increase week over week in outstanding units (from 30,350,000 to 33,650,000). For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $45.95 per share, with $91.11 as the 52 week high point - that compares with a last trade of $46.09. |
26669.0 | 2016-02-07 00:00:00 UTC | Is Gilead Sciences Finally Nearing a Bottom? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-finally-nearing-bottom-2016-02-07 | nan | nan | Image source: Gilead Sciences.
Gilead Sciences , the reigning HIV and hepatitis C drugmaker, has seen its shares drop by over 14% so far this year, according to data provided by S&P Capital IQ :
GILD data by YCharts .
The odd part of this story is that Gilead is still generating healthy levels of bottom-line and top-line growth. For example, Gilead recently announced that its full-year product sales for 2015 jumped by 31% to $32.2 billion and its non-GAAP EPS grew by a staggering 56% year over year.
Of course, Wall Street is deeply concerned about the growing market share of AbbVie 's rival hep C offering Viekira Pak, and the forthcoming commercial launch of Merck 's newly approved drug Zepatier -- along with the overall flattening of the hep C market inside the U.S. and parts of the EU. After all, these headwinds are projected to result in essentially flat sales of the biotech's hep C drugs Sovaldi and Harvoni within the U.S. this year.
Even so, Gilead's shares are starting to look exceedingly cheap at this point, implying that a bottom may finally be forming in this beaten-down biotech. For instance, the market is presently valuing Gilead at a paltry forward price-to-earnings ratio of 6.9.
With this in mind, let's take a deeper look at Gilead's prospects moving forward to consider if this top biotech stock has indeed hit rock bottom.
Gilead's hep C franchise isn't going to evaporate
While it's true that the biotech's hep C sales probably have peaked, the company is confident that it can rely on this particular franchise to generate enormous positive cash flows for years to come. After all, Gilead believes that there are over 3 million remaining hepatitis C patients within the U.S. who have yet to be treated.
The other underappreciated factor is Gilead's development of yet another major hep C product -- namely the all-oral, once-daily fixed dose combination of sofosbuvir and velpatasvir as a pan-genotypic hep C treatment. Based on the combo's impressive pivotal stage data, Gilead anticipates being able to launch this next-generation product in the U.S. in the second half of this year.
If approved, this new product would significantly add to Gilead's competitive moat in the ginormous hep C market, despite the fact that Merck is attempting to capture market share by undercutting Gilead on price.
Gilead has been busy creating deep value for shareholders
Unlike many biotechs that have been taking an aggressive approach to M&A to juice their top lines, Gilead has been far more cautious by striking a relatively small deal with Galapagos NV for the experimental anti-inflammatory drug filgotinib and using its remaining cash flows to reinvest in itself.
Specifically, Gilead spent $10 billion on share repurchases in 2015, and recently authorized yet another $12 billion worth of share buybacks going forward. The biotech also plans on spending a noteworthy $3.2 billion to $3.5 billion on its clinical activities in 2016 -- which covers both its internal programs such as its oncology pipeline and the external partnership with Galapagos to advance filgotinib into late-stage testing for high-dollar indications such as rheumatoid arthritis and Crohn's disease.
The wild card here is if Gilead decides to accelerate its growth by acquiring a revenue-generating biotech or biopharma this year. Interestingly enough, Gilead's management did note on their fourth-quarter conference call that "the environment has shifted dramatically in our favor for doing those sorts of partnerships and whatnot," presumably referring to the industry's widespread downturn over the last few months. Basically, Gilead has the cash to take advantage of what is quickly turning into a target-rich environment.
Is Gilead worth buying right now?
Gilead has stable cash flows, great management, and a top-notch clinical pipeline. While those are all compelling reasons to consider adding this biotech to your portfolio, the bigger issue is that Gilead has a mountain of cash that it can use to its advantage right now.
Last year, some of Gilead's closest peers like AbbVie and Merck rushed headlong into the M&A scene when valuations were simply out of sight, putting the health of their balance sheets at risk in the process. By taking a more patient approach, Gilead can now get more bang for its buck, so to speak -- if it chooses to enter the M&A fray. If not, the biotech can still continue to dramatically reduce its share count and build out its product portfolio organically.
All told, Gilead remains a great buy for patient investors because of its commitment to creating value for shareholders and because of management's keen ability to keep the long-view firmly in mind.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Is Gilead Sciences Finally Nearing a Bottom? originally appeared on Fool.com.
George Budwell has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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. | Last year, some of Gilead's closest peers like AbbVie and Merck rushed headlong into the M&A scene when valuations were simply out of sight, putting the health of their balance sheets at risk in the process. Of course, Wall Street is deeply concerned about the growing market share of AbbVie 's rival hep C offering Viekira Pak, and the forthcoming commercial launch of Merck 's newly approved drug Zepatier -- along with the overall flattening of the hep C market inside the U.S. and parts of the EU. Interestingly enough, Gilead's management did note on their fourth-quarter conference call that "the environment has shifted dramatically in our favor for doing those sorts of partnerships and whatnot," presumably referring to the industry's widespread downturn over the last few months. | Of course, Wall Street is deeply concerned about the growing market share of AbbVie 's rival hep C offering Viekira Pak, and the forthcoming commercial launch of Merck 's newly approved drug Zepatier -- along with the overall flattening of the hep C market inside the U.S. and parts of the EU. Last year, some of Gilead's closest peers like AbbVie and Merck rushed headlong into the M&A scene when valuations were simply out of sight, putting the health of their balance sheets at risk in the process. Specifically, Gilead spent $10 billion on share repurchases in 2015, and recently authorized yet another $12 billion worth of share buybacks going forward. | Of course, Wall Street is deeply concerned about the growing market share of AbbVie 's rival hep C offering Viekira Pak, and the forthcoming commercial launch of Merck 's newly approved drug Zepatier -- along with the overall flattening of the hep C market inside the U.S. and parts of the EU. Last year, some of Gilead's closest peers like AbbVie and Merck rushed headlong into the M&A scene when valuations were simply out of sight, putting the health of their balance sheets at risk in the process. Gilead's hep C franchise isn't going to evaporate While it's true that the biotech's hep C sales probably have peaked, the company is confident that it can rely on this particular franchise to generate enormous positive cash flows for years to come. | Of course, Wall Street is deeply concerned about the growing market share of AbbVie 's rival hep C offering Viekira Pak, and the forthcoming commercial launch of Merck 's newly approved drug Zepatier -- along with the overall flattening of the hep C market inside the U.S. and parts of the EU. Last year, some of Gilead's closest peers like AbbVie and Merck rushed headlong into the M&A scene when valuations were simply out of sight, putting the health of their balance sheets at risk in the process. Gilead's hep C franchise isn't going to evaporate While it's true that the biotech's hep C sales probably have peaked, the company is confident that it can rely on this particular franchise to generate enormous positive cash flows for years to come. |
26670.0 | 2016-02-06 00:00:00 UTC | Why Halozyme Therapeutics Inc Plunged 51% in January | ABBV | https://www.nasdaq.com/articles/why-halozyme-therapeutics-inc-plunged-51-january-2016-02-06 | nan | nan | What: Investors in human-enzyme specialist Halozyme Therapeutics had a month to forget, as its shares lost 51% of their value in January, according to data from S&P Capital IQ.
So what: With a drop like that, you'd expect that the company had a clinical trial go horribly wrong; but the month actually contained a number of positive releases:
The company entered into a $150 million credit agreement with its partners Roche and Baxalta , backed by its future royalty payments that it's entitled to receive from sales of Herceptin SC, MabThera SC and Hyqvia.
Halozyme announced its first clinical dosing of AbbVie 's Humira using its Enhanze technology. The dose triggered a $5 million milestone payment from AbbVie to Halozyme. If this collaboration works out, it could be entitled to a total of $130 million in additional payments, plus tiered royalty payments based on net sales.
The company presented at the JP Morgan Healthcare conference, where it shared its plans for the year, which included the initiation of a Phase 3 study using its PEGPH20 product candidate in conjunction with Abraxane as a potential treatment for metastatic pancreatic cancer patients. When added to its other clinical programs, the company expects to spend $240 million to $260 million, which will allow it to end 2016 with a cash balance of $140 million to $160 million.
Now what: While shares drifted lower all month long, they really took a tumble after the company provided its financial guidance for 2016, which suggests that the market was taken aback by the company's huge spending plans for the year ahead. For perspective, at its meeting last year, the company stated that it planned on spending roughly $150 million during the year, so you can see that this year's spending plan will add roughly $100 million to that number.
Only time will tell if the company's huge ramp in spending will pay off in the long run, but given that Halozyme has already made believers out of many of the giants in the space -- AbbVie, Roche, Baxalta, and many more have already signed on as partners -- I'm inclined to give them the benefit of the doubt for now.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Why Halozyme Therapeutics Inc Plunged 51% in January originally appeared on Fool.com.
Brian Feroldi 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 .
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. | Only time will tell if the company's huge ramp in spending will pay off in the long run, but given that Halozyme has already made believers out of many of the giants in the space -- AbbVie, Roche, Baxalta, and many more have already signed on as partners -- I'm inclined to give them the benefit of the doubt for now. Halozyme announced its first clinical dosing of AbbVie 's Humira using its Enhanze technology. The dose triggered a $5 million milestone payment from AbbVie to Halozyme. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Halozyme announced its first clinical dosing of AbbVie 's Humira using its Enhanze technology. The dose triggered a $5 million milestone payment from AbbVie to Halozyme. | Halozyme announced its first clinical dosing of AbbVie 's Humira using its Enhanze technology. The dose triggered a $5 million milestone payment from AbbVie to Halozyme. Only time will tell if the company's huge ramp in spending will pay off in the long run, but given that Halozyme has already made believers out of many of the giants in the space -- AbbVie, Roche, Baxalta, and many more have already signed on as partners -- I'm inclined to give them the benefit of the doubt for now. | The dose triggered a $5 million milestone payment from AbbVie to Halozyme. Halozyme announced its first clinical dosing of AbbVie 's Humira using its Enhanze technology. Only time will tell if the company's huge ramp in spending will pay off in the long run, but given that Halozyme has already made believers out of many of the giants in the space -- AbbVie, Roche, Baxalta, and many more have already signed on as partners -- I'm inclined to give them the benefit of the doubt for now. |
26671.0 | 2016-02-05 00:00:00 UTC | Gilead Sciences 2016 Guidance: Sandbagging Wall Street Again? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-2016-guidance-sandbagging-wall-street-again-2016-02-05 | nan | nan | Image source: Flickr user stockmonkeys.com.
Gilead Sciences has a reputation for being cautious with its financial guidance, and last year was no exception.
In February 2015, CEO John Martin forecast that Gilead Sciences' sales would grow to between $26 billion and $27 billion, but the company ended up delivering revenue of $32.6 billion.
Now, management thinks Gilead Sciences' sales will slip to between $30 billion and $31 billion in 2016. Could this be yet another example of Gilead Sciences sandbagging Wall Street expectations? Read on to see why Gilead Sciences management is cautious and what could allow them to over-deliver again this year.
Protecting the moat
Similar to 2015, Gilead Sciences enters 2016 with a big target on its back. Last year, it was AbbVie 's hepatitis C drug Viekira Pak that was taking aim at Gilead Sciences' top-selling drug Harvoni, and this year, it's Merck & Co's Zepatier that's firing the shot.
Merck & Co hopes that it will have better luck at wrestling away market share from Harvoni in the ultra-lucrative hepatitis C market than AbbVie did. Despite AbbVie inking high-profile exclusivity deals that led to a price war, Viekira Pak's $2.2 billion in annualized fourth-quarter sales came up shy of projections for a $3 billion sales run-rate by the end of last year.
Zepatier would appear to have a better chance at making a dent in Gilead Sciences' HCV dominance because Zepatier is dosed once daily, can be used with or without ribavirin, and arguably matches up better in terms of efficacy and safety to Harvoni than Viekira Pak does.
Those advantages to Viekira Pak suggest Zepatier is a bigger threat to Gilead Sciences' top-selling HCV drug Harvoni, but the biggest risk to Harvoni's market share may be Zepatier's list price. While Harvoni boasts a jaw-dropping $94,500 price tag, Zepatier's list price is just $54,600.
Image source: Gilead Sciences
Not so fast
In theory, Zepatier would appear to have the right combination to deliver a knockout punch to Harvoni, but in reality, Zepatier's challenge may fall flat.
Unlike Harvoni, Zepatier is only approved for use in genotype 1 and genotype 4 hepatitis C patients and its prescribing label calls for pre-screening to see if patients have specific polymorphisms that could extend patient treatment to 16 weeks from 12 weeks.
In clinical trials, those polymorphisms were found in about 10% of genotype 1 patients, and in those cases, Zepatier's cure rate slips below 90%.
Zepatier also requires liver testing to make sure that liver enzymes don't spike in patients and because of that risk, Zepatier won't be used in patients with moderate to severe liver disease.
Additionally, while Zepatier's price looks like a bargain on the surface, it's actually not that different than Harvoni, which is often sold at a discount to its list price that brings its average cost per patient down closer to $50,000.
Zepatier may also struggle to against Harvoni because up to 45% of genotype 1 patients qualify for a shorter and lower-cost 8-week regimen of Harvoni that improves patient adherence. Zepatier is dosed for a minimum of 12 weeks in patients.
Additional hurdles
Gilead Sciences' tepid forecast is also being blamed on uncertain demand from domestic and international government payers.
Last year, insufficient funding at the Department of Veterans Affairs significantly limited patient starts and while new funding removes that overhang for now, it's not clear how VA funding will shake out later in the year.
Medicaid is also a big wild card because roadblocks put in place to limit the use of HCV therapies in Medicaid patients to cut costs remain in place.
In Europe, volume discount deals that could push average prices lower could also put a drag on results and, after enjoying a significant tailwind from Japan in 2015, mandated price cuts in that market could drive down revenue, too.
Looking forward
The challenges facing Gilead Sciences are real, but the company has an excellent track record of innovating best-in-class products that allow it to side-step risks. In fact, the company's R&D prowess may be the biggest reason why Gilead Sciences ends up over-delivering this year.
In mid-August, the FDA will weigh in on Gilead Sciences next-generation hepatitis C drug. If approved, that drug will be the first pan-genotype therapy on the market, and that's important because it could eliminate costly genotype testing. This new therapy's cure rates and safety in trials indicate that it, rather than Zepatier, is destined to become the standard of care in hepatitis C. If so, then it could command a smaller discount to list price than Harvoni and Sovaldi monotherapy, boosting revenue per patient and Gilead Sciences' top-line in the back-half of the year.
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The article Gilead Sciences 2016 Guidance: Sandbagging Wall Street Again? originally appeared on Fool.com.
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. 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 .
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. | Last year, it was AbbVie 's hepatitis C drug Viekira Pak that was taking aim at Gilead Sciences' top-selling drug Harvoni, and this year, it's Merck & Co's Zepatier that's firing the shot. Merck & Co hopes that it will have better luck at wrestling away market share from Harvoni in the ultra-lucrative hepatitis C market than AbbVie did. Despite AbbVie inking high-profile exclusivity deals that led to a price war, Viekira Pak's $2.2 billion in annualized fourth-quarter sales came up shy of projections for a $3 billion sales run-rate by the end of last year. | Last year, it was AbbVie 's hepatitis C drug Viekira Pak that was taking aim at Gilead Sciences' top-selling drug Harvoni, and this year, it's Merck & Co's Zepatier that's firing the shot. Merck & Co hopes that it will have better luck at wrestling away market share from Harvoni in the ultra-lucrative hepatitis C market than AbbVie did. Despite AbbVie inking high-profile exclusivity deals that led to a price war, Viekira Pak's $2.2 billion in annualized fourth-quarter sales came up shy of projections for a $3 billion sales run-rate by the end of last year. | Last year, it was AbbVie 's hepatitis C drug Viekira Pak that was taking aim at Gilead Sciences' top-selling drug Harvoni, and this year, it's Merck & Co's Zepatier that's firing the shot. Merck & Co hopes that it will have better luck at wrestling away market share from Harvoni in the ultra-lucrative hepatitis C market than AbbVie did. Despite AbbVie inking high-profile exclusivity deals that led to a price war, Viekira Pak's $2.2 billion in annualized fourth-quarter sales came up shy of projections for a $3 billion sales run-rate by the end of last year. | Last year, it was AbbVie 's hepatitis C drug Viekira Pak that was taking aim at Gilead Sciences' top-selling drug Harvoni, and this year, it's Merck & Co's Zepatier that's firing the shot. Merck & Co hopes that it will have better luck at wrestling away market share from Harvoni in the ultra-lucrative hepatitis C market than AbbVie did. Despite AbbVie inking high-profile exclusivity deals that led to a price war, Viekira Pak's $2.2 billion in annualized fourth-quarter sales came up shy of projections for a $3 billion sales run-rate by the end of last year. |
26672.0 | 2016-02-04 00:00:00 UTC | The Zacks Analyst Blog Highlights: Biogen, Gilead, AbbVie, Intrexon and NewLink | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-biogen-gilead-abbvie-intrexon-and-newlink-2016-02-04 | nan | nan | For Immediate Release
Chicago, IL - February 04, 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 the Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Intrexon ( XON ) and NewLink ( NLNK ).
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: Q4 Earnings, Zika Virus Grab Attention
Many major biotech companies reported fourth quarter and full year 2015 results last week. Biogen's ( BIIB ) share price was up with the company topping estimates and seeing a sequential improvement in sales of its oral multiple sclerosis (MS) treatment, Tecfidera.
Meanwhile, the spread of the Zika virus has resulted in quite a few companies announcing their plans to explore potential treatments and vaccines.
Recap of the Week's Most Important Stories
First a look at earnings results. While companies like Vertex (Read more: Vertex Posts Narrower 4Q Loss, Maintains Outlook ), Biogen (Read more: Biogen Tops on Q4 Earnings by a Wide Margin, Provides View ), and Amgen (Read more: Amgen Tops on Q4 Earnings & Revenues, Ups 2016 Outlook ) performed well, Celgene's fourth quarter earnings fell short of expectations (Read more: Celgene Misses on Q4 Earnings, Reiterates 2016 Guidance ). Gilead's ( GILD ) earnings as well as revenues surpassed expectations. However, companies like Gilead and AbbVie ( ABBV ) will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount.
Quite a few companies are looking into developing treatment options for the Zika virus, which has instilled fear across the world. The mosquito-borne virus was declared an international public health emergency by the World Health Organization in Jan 2016. Pregnant women have been advised to avoid travel to 14 countries and territories in Latin America and the Caribbean, including Puerto Rico, Mexico and Haiti. With no current vaccine or course of treatment being available for the Zika virus, many companies are rushing to come up with solutions.
In a recent announcement, Inovio said that its technology can be readily used to target threatening infectious threats like MERS and Zika virus as well as other emergent infectious diseases. Intrexon ( XON ) is also working on controlling the spread of the virus. NewLink ( NLNK ) has also initiated a project to develop new treatment options for the Zika virus.
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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 the Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Intrexon ( XON ) and NewLink ( NLNK ). However, companies like Gilead and AbbVie ( ABBV ) will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include the Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Intrexon ( XON ) and NewLink ( NLNK ). Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. However, companies like Gilead and AbbVie ( ABBV ) will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. | Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include the Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Intrexon ( XON ) and NewLink ( NLNK ). However, companies like Gilead and AbbVie ( ABBV ) will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. | Stocks recently featured in the blog include the Biogen ( BIIB ), Gilead ( GILD ), AbbVie ( ABBV ), Intrexon ( XON ) and NewLink ( NLNK ). However, companies like Gilead and AbbVie ( ABBV ) will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. Click to get this free report BIOGEN INC (BIIB): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. |
26673.0 | 2016-02-03 00:00:00 UTC | Biotech Stock Roundup: Biogen, Amgen Top Estimates; Zika Virus Grabs Attention | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-biogen-amgen-top-estimates-zika-virus-grabs-attention-2016-02-03 | nan | nan | Many major biotech companies reported fourth quarter and full year 2015 results last week. Biogen's BIIB share price was up with the company topping estimates and seeing a sequential improvement in sales of its oral multiple sclerosis (MS) treatment, Tecfidera.
Meanwhile, the spread of the Zika virus has resulted in quite a few companies announcing their plans to explore potential treatments and vaccines.
Recap of the Week's Most Important Stories
1. First a look at earnings results. While companies like Vertex (Read more: Vertex Posts Narrower 4Q Loss, Maintains Outlook ), Biogen (Read more: Biogen Tops on Q4 Earnings by a Wide Margin, Provides View ), and Amgen (Read more: Amgen Tops on Q4 Earnings & Revenues, Ups 2016 Outlook ) performed well, Celgene's fourth quarter earnings fell short of expectations (Read more: Celgene Misses on Q4 Earnings, Reiterates 2016 Guidance ). Gilead's (GILD) earnings as well as revenues surpassed expectations. However, companies like Gilead and AbbVie ABBV will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount.
2. Quite a few companies are looking into developing treatment options for the Zika virus, which has instilled fear across the world. The mosquito-borne virus was declared an international public health emergency by the World Health Organization in Jan 2016. Pregnant women have been advised to avoid travel to 14 countries and territories in Latin America and the Caribbean, including Puerto Rico, Mexico and Haiti. With no current vaccine or course of treatment being available for the Zika virus, many companies are rushing to come up with solutions.
In a recent announcement, Inovio said that its technology can be readily used to target threatening infectious threats like MERS and Zika virus as well as other emergent infectious diseases. Intrexon XON is also working on controlling the spread of the virus. NewLink NLNK has also initiated a project to develop new treatment options for the Zika virus.
3. Incyte INCY suffered a setback last week with a mid-stage study (colorectal cancer) evaluating Jakafi (ruxolitinib) plus Stivarga (regorafenib) being stopped early due to lack of sufficient efficacy in an interim analysis. With Jakafi currently being evaluated for other types of cancer, investors remain jittery about Jakafi's chances of success in these studies (Read more: Incyte Halts Phase II Jakafi-Stivarga Combination Study ).
4. Axovant's AXON shares crashed 17.9% on fears that the company's experimental Alzheimer's disease treatment will share the same fate as Pfizer's PF-05212377. Pfizer recently provided information that it has terminated a mid-stage study comparing PF-05212377 to placebo in Alzheimer's disease patients on donepezil (trade name: Aricept). The study was shut down in late Oct 2015 as pre-specified, interim analysis futility criteria were met.
Pfizer's update led to a sell-off in Axovant's share price as Axovant's lead pipeline candidate, RVT-101, has the same mechanism of action (5HT6 receptor antagonist) as Pfizer's PF-05212377. RVT-101 is currently in the late-stage MINDSET study in which it is being evaluated for the treatment of mild-to-moderate Alzheimer's disease in patients on a stable background of donepezil therapy.
Performance
Most major biotech stocks declined last week with Biogen being the only one to record an increase (2.38%) thanks to its fourth quarter results and the sequential improvement in Tecfidera sales. Regeneron REGN lost 11.58% during this period. Meanwhile, Vertex lost 32.61% over the last six months.
The NASDAQ Biotechnology Index declined 4.57% over the last five trading days (See the last biotech stock roundup here: Sarepta Plunges on Briefing Documents, Acorda to Buy Biotie ).
What's Next in the Biotech World?
Several companies are yet to come out with their earnings results. Meanwhile, Vertex will be hearing from the FDA (FDA action date: Feb 7) regarding the approval status of Kalydeco for use in people (2 years and above) with one of 23 residual function mutations that result in CF - approval for this indication would accelerate access to more than 1,500 patients in the U.S.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, companies like Gilead and AbbVie ABBV will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report AXOVANT SCIENC (AXON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen's BIIB share price was up with the company topping estimates and seeing a sequential improvement in sales of its oral multiple sclerosis (MS) treatment, Tecfidera. | Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report AXOVANT SCIENC (AXON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. However, companies like Gilead and AbbVie ABBV will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. Many major biotech companies reported fourth quarter and full year 2015 results last week. | Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report AXOVANT SCIENC (AXON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. However, companies like Gilead and AbbVie ABBV will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. Meanwhile, the spread of the Zika virus has resulted in quite a few companies announcing their plans to explore potential treatments and vaccines. | Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report AXOVANT SCIENC (AXON): Free Stock Analysis Report NEWLINK GENETIC (NLNK): Free Stock Analysis Report To read this article on Zacks.com click here. However, companies like Gilead and AbbVie ABBV will face more competition and pricing pressure in the hepatitis C virus (HCV) market with the launch of Merck's Zepatier which has been priced at a significant discount. Meanwhile, the spread of the Zika virus has resulted in quite a few companies announcing their plans to explore potential treatments and vaccines. |
26674.0 | 2016-02-03 00:00:00 UTC | Gilead (GILD) Beats Q4 Earnings Estimates, Gives 2016 View | ABBV | https://www.nasdaq.com/articles/gilead-gild-beats-q4-earnings-estimates-gives-2016-view-2016-02-03 | nan | nan | Gilead Sciences, Inc. 's GILD fourth-quarter 2015 earnings (including stock-based compensation expenses) of $3.27 per share surpassed the Zacks Consensus Estimate of $2.91. Reported earnings were also way above the year-ago figure of $2.38 per share.
Total revenue of $8.5 billion surged 16.3% from the year-ago figure. Moreover, quarterly revenues easily surpassed the Zacks Consensus Estimate of $8.1 billion.
Full-year earnings (including stock-based compensation expenses) grew to $12.44 per share from $7.91 a year ago, while revenues came in at $32.6 billion, up 31.1%.
Quarter in Detail
Product sales soared approximately 16.4% to $8.4 billion. Antiviral product sales for the quarter registered growth of 17.2% to $7.9 billion driven by the launch of hepatitis C virus (HCV) infection products in Japan and continued launches of HCV products across Europe.
Gilead's blockbuster HCV drug, Harvoni, recorded revenues of $3.3 billion in the fourth quarter of 2015, up 58.8% year over year. However, sales of Sovaldi, another HCV drug at Gilead, registered a 10.7% year-over-year plunge to $1.5 billion due to the availability of newer HCV therapies.
Nevertheless, other anti-viral products, such as HIV treatments Complera/Eviplera (up 9.2% to $380 million) and Stribild (up 32.7% to $511 million) performed well. Sales of older HIV drugs like Truvada (up 4.3% to $936 million) were also impressive. However, Atripla sales declined 13.5% to $800 million. Moreover, the company expects Atripla sales to continue declining. Viread sales were also down 1.6% to $306 million.
Other products including Letairis, Ranexa and AmBisome recorded sales of $192 million (up 6.1%), $169 million (up 17.4%) and $74 million (down 28.8%), respectively. Newly launched Zydelig also performed well, recording revenues of $40 million, up 11% sequentially.
Research & development (R&D) expenses (including stock-based compensation expenses) were down 12.3% to $757 million. Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses) were up 24.9% to $1.1 billion.
2016 Guidance
Gilead provided its 2016 product sales guidance. The company expects product sales in the range of $30-$31 billion.
Adjusted product gross margin for 2016 is expected in the range of 88-90%. The company also provided its guidance for R&D expenses and SG&A expenses. R&D expenses (excluding stock-based compensation expenses and other special items) are projected in the range of $3.2-$3.5 billion, while SG&A expenses are expected to be $3.3 - $3.6 billion.
Dividend and Share Repurchase
The company also declared its first-quarter 2016 dividend. Gilead has declared a quarterly cash dividend of 43 cents per share of common stock, to be paid on Mar 30, 2016, to all stockholders of record as of the close of business on the record date of Mar 16, 2016.
Moreover, the company has repurchased shares worth $3.1 billion in the fourth quarter of 2015. Its board has also authorized an additional $12 billion share repurchase program to be initiated after the completion of the current $15 billion program, out of which $8 billion is remaining as on Dec 31, 2015. The repurchase of $5 billion shares is expected to be completed in the next three months.
Our Take
Gilead posted strong fourth-quarter results, with both earnings and revenues beating our expectations. We are nevertheless concerned about the slowdown in Harvoni sales. Pricing measures in the form of rebates and discounts could impact Harvoni sales further. The anticipated downtrend in Atripla sales due to newer HIV therapies is also concerning.
We note that several companies, including AbbVie Inc. ABBV , have launched their HCV treatments in the market. Late last month Merck & Co. Inc. MRK received FDA nod for HCV drug, Zepatier. Meanwhile several other companies are looking to bring their drugs to the market. Going forward, we expect investor focus to remain on Harvoni's performance. We also expect to see some merger & acquisition activities at the company as management has hinted that share repurchases could be reduced in the future due to acquisitions and other pipeline investments to drive long-term growth.
Gilead currently carries a Zacks Rank #3 (Hold). Anika Therapeutics Inc. ANIK is a better-ranked stock in the health care sector. It sports 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 several companies, including AbbVie Inc. ABBV , have launched their HCV treatments in the market. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead Sciences, Inc. 's GILD fourth-quarter 2015 earnings (including stock-based compensation expenses) of $3.27 per share surpassed the Zacks Consensus Estimate of $2.91. | Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that several companies, including AbbVie Inc. ABBV , have launched their HCV treatments in the market. Gilead Sciences, Inc. 's GILD fourth-quarter 2015 earnings (including stock-based compensation expenses) of $3.27 per share surpassed the Zacks Consensus Estimate of $2.91. | Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that several companies, including AbbVie Inc. ABBV , have launched their HCV treatments in the market. Antiviral product sales for the quarter registered growth of 17.2% to $7.9 billion driven by the launch of hepatitis C virus (HCV) infection products in Japan and continued launches of HCV products across Europe. | We note that several companies, including AbbVie Inc. ABBV , have launched their HCV treatments in the market. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead's blockbuster HCV drug, Harvoni, recorded revenues of $3.3 billion in the fourth quarter of 2015, up 58.8% year over year. |
26675.0 | 2016-02-02 00:00:00 UTC | Why Gilead Sciences Shares Tumbled 18% in January | ABBV | https://www.nasdaq.com/articles/why-gilead-sciences-shares-tumbled-18-january-2016-02-02 | nan | nan | Image source: Gilead Sciences.
What: Ahead of a competitor winning approval for its competing hepatitis C therapy, shares in Gilead Sciences fell 18% in January, according to S&P Capital IQ .
So what: Gilead Sciences gets more than half of its revenue from the sale of hepatitis C drugs and as a result, investors reined in their exposure to the company ahead of the FDA approval of Merck & Co. 's Zepatier on Jan. 28.
Given Merck's therapy put up impressive cure rates and a solid safety profile in clinical trials, the FDA's decision isn't surprising.
However, Merck's decision to price its new drug at a list price of $54,600 may have shocked some investors. The price is a steep discount to the $84,000 and $94,500 that Gilead Sciences charges for its hep C drugs Sovaldi and Harvoni, respectively.
The pricing decision certainly turns up the heat on Gilead Sciences and competitor AbbVie , which markets the HCV drug Viekira Pak.
Now what
The launch of Viekira Pak with a lower price in January 2015 led to Gilead Sciences matching prices to maintain market share, but revenue actually grew, rather than shrank, last year because lower prices resulted in more prescriptions being written.
Regardless, Gilead Sciences has an FDA decision coming up this June for its next-generation hepatitis C drug, and if approved, that drug could significantly limit any threat posed by Merck & Co.'s Zepatier because its efficacy and safety are arguably best in class.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Why Gilead Sciences Shares Tumbled 18% in January originally appeared on Fool.com.
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. 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 .
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. | The pricing decision certainly turns up the heat on Gilead Sciences and competitor AbbVie , which markets the HCV drug Viekira Pak. What: Ahead of a competitor winning approval for its competing hepatitis C therapy, shares in Gilead Sciences fell 18% in January, according to S&P Capital IQ . So what: Gilead Sciences gets more than half of its revenue from the sale of hepatitis C drugs and as a result, investors reined in their exposure to the company ahead of the FDA approval of Merck & Co. 's Zepatier on Jan. 28. | The pricing decision certainly turns up the heat on Gilead Sciences and competitor AbbVie , which markets the HCV drug Viekira Pak. What: Ahead of a competitor winning approval for its competing hepatitis C therapy, shares in Gilead Sciences fell 18% in January, according to S&P Capital IQ . Now what The launch of Viekira Pak with a lower price in January 2015 led to Gilead Sciences matching prices to maintain market share, but revenue actually grew, rather than shrank, last year because lower prices resulted in more prescriptions being written. | The pricing decision certainly turns up the heat on Gilead Sciences and competitor AbbVie , which markets the HCV drug Viekira Pak. So what: Gilead Sciences gets more than half of its revenue from the sale of hepatitis C drugs and as a result, investors reined in their exposure to the company ahead of the FDA approval of Merck & Co. 's Zepatier on Jan. 28. Now what The launch of Viekira Pak with a lower price in January 2015 led to Gilead Sciences matching prices to maintain market share, but revenue actually grew, rather than shrank, last year because lower prices resulted in more prescriptions being written. | The pricing decision certainly turns up the heat on Gilead Sciences and competitor AbbVie , which markets the HCV drug Viekira Pak. What: Ahead of a competitor winning approval for its competing hepatitis C therapy, shares in Gilead Sciences fell 18% in January, according to S&P Capital IQ . However, Merck's decision to price its new drug at a list price of $54,600 may have shocked some investors. |
26676.0 | 2016-02-02 00:00:00 UTC | Why Regeneron Pharmaceuticals Shares Fell 23% in January | ABBV | https://www.nasdaq.com/articles/why-regeneron-pharmaceuticals-shares-fell-23-january-2016-02-02 | nan | nan | Image source: Regeneron Pharmaceuticals.
What: Despite news that the FDA has accepted it and co-developer Sanofi 's application for approval of a key drug last month, shares in Regeneron Pharmaceuticals fell 22.6% in January, according to S&P Capital IQ.
So what: On January 8, the FDA accepted the application for approval of sarilumab, a human monoclonal antibody therapy for use in patients with moderate to severe rheumatoid arthritis.
The rheumatoid arthritis market is valued at $18 billion annually (and growing), and if approved, sarilumab will compete against AbbVie Inc .'s multibillion-dollar blockbuster Humira, which controls 22% market share in the indication.
Although sarilumab's opportunity is real, investors looked beyond that potential and sold their shares in Regeneron last month as part of a broader de-risking of portfolios that resulted in a 28% drop in the S&P Biotech ETF .
Now what
Since winning FDA approval for Praluent last summer, the two companies have announced a slate of contract wins with pharmacy benefit managers that could help sales climb in 2016.
Because tens of millions of people suffer from high cholesterol, including millions who are categorized as tough-to-treat who could conceivably benefit from Praluent, industry watchers think Praluent could be a multibillion-dollar drug. If so, it would mean Regeneron could potentially have three billion-dollar blockbusters on the market in 2017.
That would be enviable product line, but it may be a while before investors send Regeneron's shares back to their prior highs. Despite January's retreat, Regeneron's shares still trade at about 30 times forward EPS. That's not that expensive for biotech, but it's not a bargain, either.
Regardless, Regeneron is building a first-class lineup of medicine that should provide revenue and profit tailwinds for years to come, and for that reason, I think Regeneron is one company growth investors should be socking away in portfolios for the long haul.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Why Regeneron Pharmaceuticals Shares Fell 23% in January originally appeared on Fool.com.
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 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 .
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. | The rheumatoid arthritis market is valued at $18 billion annually (and growing), and if approved, sarilumab will compete against AbbVie Inc . What: Despite news that the FDA has accepted it and co-developer Sanofi 's application for approval of a key drug last month, shares in Regeneron Pharmaceuticals fell 22.6% in January, according to S&P Capital IQ. So what: On January 8, the FDA accepted the application for approval of sarilumab, a human monoclonal antibody therapy for use in patients with moderate to severe rheumatoid arthritis. | The rheumatoid arthritis market is valued at $18 billion annually (and growing), and if approved, sarilumab will compete against AbbVie Inc . What: Despite news that the FDA has accepted it and co-developer Sanofi 's application for approval of a key drug last month, shares in Regeneron Pharmaceuticals fell 22.6% in January, according to S&P Capital IQ. The article Why Regeneron Pharmaceuticals Shares Fell 23% in January originally appeared on Fool.com. | The rheumatoid arthritis market is valued at $18 billion annually (and growing), and if approved, sarilumab will compete against AbbVie Inc . What: Despite news that the FDA has accepted it and co-developer Sanofi 's application for approval of a key drug last month, shares in Regeneron Pharmaceuticals fell 22.6% in January, according to S&P Capital IQ. Although sarilumab's opportunity is real, investors looked beyond that potential and sold their shares in Regeneron last month as part of a broader de-risking of portfolios that resulted in a 28% drop in the S&P Biotech ETF . | The rheumatoid arthritis market is valued at $18 billion annually (and growing), and if approved, sarilumab will compete against AbbVie Inc . What: Despite news that the FDA has accepted it and co-developer Sanofi 's application for approval of a key drug last month, shares in Regeneron Pharmaceuticals fell 22.6% in January, according to S&P Capital IQ. Capital Markets, LLC. |
26677.0 | 2016-01-30 00:00:00 UTC | Here's Why Johnson & Johnson's Sales Fell Last Year | ABBV | https://www.nasdaq.com/articles/heres-why-johnson-johnsons-sales-fell-last-year-2016-01-30 | nan | nan | Image source: Johnson & Johnson.
Johnson & Johnson sales may have dropped 5.7% in the past year, but investors may benefit from ignoring the headline revenue decline and focusing instead on the company's plans for the future. That's because the majority of the revenue drop is tied to the performance of its flash-in-the-pan hepatitis C drug Olysio and currency exchange headwinds the company has little control over. If you toss aside the hepatitis C and currency impact and take into account non-recurring items like acquisitions and divestitures, Johnson & Johnson's global sales actually rose 6.5% in 2015, which is a whole lot better than the headline would have you believe.
Pop then drop
When Johnson & Johnson and Gilead Sciences won FDA approval for their respective hepatitis C drugs Olysio and Sovaldi in late 2013, they ushered in a new era oral HCV treatments that significantly improved outcomes and reduced treatment duration.
Initially, Sovaldi ended up having an edge in treating patients because Olysio stumbled in treating patients with the relatively common Q80K polymorphism, but doctors soon discovered that while Sovaldi matched up better than Olysio in less compromised patients, patients with tough-to-treat hepatitis C responded best to a combination therapy consisting of both Olysio and Sovaldi.
As a result, Olysio's sales outpaced industry watchers projections, surging to $2.3 billion in 2014.
Olysio's time in the spotlight, however, was never thought to be long-lived. That's because everyone recognized that Gilead Sciences' next-generation Harvoni, a single-tablet therapy for genotype 1 hepatitis C, would relegate the Sovaldi plus Olysio combination therapy to niche status. Harvoni won FDA approval in late 2014, and as a result, Olysio's sales fell to just $621 million in 2015.
Because Olysio's sales pop in 2014 could be viewed as a one-time "bonus," it may be more helpful to consider how Johnson & Johnson's results would look without it. On that basis, investors might have more to cheer about, because removing Olysio's sales from Johnson & Johnson's last two years of results leads to pharmaceuticals segment revenue increasing to $30.8 billion last year from $30 billion in 2014. That's a big improvement over the 2.7% drop to $31.4 billion in 2015 from $32.3 billion in 2014 that was reported.
Exchange headwinds
Olysio's impact is meaningful, but currency was an even bigger drag on Johnson & Johnson's results last year.
The company reports that on an ex-currency, operational basis, its sales improved by 1.8%, but currency conversion on sales outside the U.S. resulted in a 7.5% headwind that drove sales negative.
The significance of currency's effect is even more dramatic when you consider Johnson & Johnson's financial performance on a regional basis. In 2015, domestic revenue grew 2.6%, but international sales fell 13.1% because of a massive 14.2% currency drag.
Obviously, investors shouldn't ignore results that include currency altogether because currency can boost sales sometimes, too, but focusing on the operational results does paint a different picture in terms of how management is executing at the company.
For example, removing the impact of currency, the company's consumer and pharmaceuticals business grew by 2.7% and 4.2% last year, respectively, and the medical device business saw its sales decline by just 1.4%.
Looking ahead
Johnson & Johnson is enjoying rapid growth for its diabetes drug Invokana and its psoriasis drug Stelara, both of which are billion-dollar blockbusters, and demand remains high for other top sellers, including the schizophrenia drug Invega Sustenna and the anticoagulant Xarelto.
Revenue from those drugs could be supplemented nicely in the future by new products, including Darzalex, a new therapy for multiple myeloma, and Invokamet, a combination therapy consisting of Invokana and metformin, a widely used, front-line diabetes drug. Sales growth could also benefit from expanding the label of its cancer drug Imbruvica, a therapy co-marketed by AbbVie that industry watchers think may have $5 billion in peak sales potential.
Given Johnson & Johnson has a lot of needle-moving drugs on the market, or heading to the market soon, the most important number in the company's fourth-quarter financials may not be reported sales, but its operational guidance for 2016. If Johnson & Johnson can do better than the 4.5% and 6% it's forecasting, investors ought to send its shares higher.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Here's Why Johnson & Johnson's Sales Fell Last Year originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Johnson & 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 .
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. | Sales growth could also benefit from expanding the label of its cancer drug Imbruvica, a therapy co-marketed by AbbVie that industry watchers think may have $5 billion in peak sales potential. That's because the majority of the revenue drop is tied to the performance of its flash-in-the-pan hepatitis C drug Olysio and currency exchange headwinds the company has little control over. Pop then drop When Johnson & Johnson and Gilead Sciences won FDA approval for their respective hepatitis C drugs Olysio and Sovaldi in late 2013, they ushered in a new era oral HCV treatments that significantly improved outcomes and reduced treatment duration. | Sales growth could also benefit from expanding the label of its cancer drug Imbruvica, a therapy co-marketed by AbbVie that industry watchers think may have $5 billion in peak sales potential. Johnson & Johnson sales may have dropped 5.7% in the past year, but investors may benefit from ignoring the headline revenue decline and focusing instead on the company's plans for the future. Pop then drop When Johnson & Johnson and Gilead Sciences won FDA approval for their respective hepatitis C drugs Olysio and Sovaldi in late 2013, they ushered in a new era oral HCV treatments that significantly improved outcomes and reduced treatment duration. | Sales growth could also benefit from expanding the label of its cancer drug Imbruvica, a therapy co-marketed by AbbVie that industry watchers think may have $5 billion in peak sales potential. Johnson & Johnson sales may have dropped 5.7% in the past year, but investors may benefit from ignoring the headline revenue decline and focusing instead on the company's plans for the future. Pop then drop When Johnson & Johnson and Gilead Sciences won FDA approval for their respective hepatitis C drugs Olysio and Sovaldi in late 2013, they ushered in a new era oral HCV treatments that significantly improved outcomes and reduced treatment duration. | Sales growth could also benefit from expanding the label of its cancer drug Imbruvica, a therapy co-marketed by AbbVie that industry watchers think may have $5 billion in peak sales potential. Exchange headwinds Olysio's impact is meaningful, but currency was an even bigger drag on Johnson & Johnson's results last year. The Motley Fool owns shares of and recommends Gilead Sciences. |
26678.0 | 2016-01-30 00:00:00 UTC | AbbVie: There Ain't No Stinkin' Biosimilar Threat | ABBV | https://www.nasdaq.com/articles/abbvie-there-aint-no-stinkin-biosimilar-threat-2016-01-30 | nan | nan | Motley Fool healthcare contributor Todd Campbell shares with analyst Kristine Harjes why he thinks that AbbVie is a big winner now that the annual J.P. Morgan Healthcare Conference has wrapped up.
At the conference, AbbVie's management presented investors with long-term sales guidance for its best-selling drug, Humira. These estimates suggest that generic competitors may be kept at bay even after a key Humira patent expires at the end of this year. Is this realistic, and does it make AbbVie's shares worth buying? Find out in this clip of Industry Focus: Healthcare.
A full transcript follows the video.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 .
This podcast was recorded on Jan. 20, 2016.
Todd Campbell: AbbVie is, as you know, one of the biggest biopharma companies out there. It's a company that does $24 billion a year in annualized sales, but people have been nervous about this stock. For good reason.
KristineHarjes: The reason you're alluding to, I could probably say with certainty, is their humongous reliance on HUMIRA. Yeah?
Campbell: Yeah. Humongous.
Harjes: Yeah. Making us both nervous.
Campbell: They get 60%-plus of their sales from one drug, and that's the immunology drug Humira, which is used to treat conditions, say, like rheumatoid arthritis, and psoriasis. This is a big drug. It operates in a huge market, a $47 billion market. And this drug brings in $14 billion a year for AbbVie.
Harjes: Yeah, it's the best-selling drug on the planet.
Campbell: Yeah. And normally, that's a good thing.
Harjes: Yeah, people are probably like, "Why are they worried about this?"
Campbell: Yeah. What's scary about that is their composition of matter patent.
Harjes: That's the important one.
Campbell: It is. And it expires at the end of this year. And as a result, as we know from past history, when patents expire, generic drugs can come on the market. And when they do, they can gobble up a lot of market share, and a lot of sales.
Harjes: So the only reason that there is a little bit of a question mark on this one is because Humira is a biologic drug. So it's not particularly easy to get a generic version of that. You've heard us talk about biosimilars before on the show, that's what the generic version would be. It would be a biosimilar. So it's not a direct replica. It's not that easy.
Campbell: Right. These things are made from living organisms. You're not going to be able to duplicate it exactly.
Harjes: Exactly. So we have Amgen creating this biosimilar for Humira, and they're looking to get it approved. They filed in November for the FDA. But they're running up against these patent issues.
Campbell: What's interesting here, and I think this is what's intriguing or exciting about the J.P. Morgan Conference, is when AbbVie came out and addressed their investors, they said, essentially, "what biosimilar threat? We don't see that happening anytime soon." Although the composition of matter patent is expiring this year, AbbVie's management seems to be very confident that methods of use patents that protect Humira into the early 2020s will keep these biosimilars at bay. And if that's the case, then AbbVie is saying that their sales for Humira won't fall in the next few years, they'll actually grow.
Harjes: They'll actually grow! That's insane. I have never seen a company say that before. "Oh, yeah, we might lose patent on this key drug, and sales are going to grow!" That's not how this works.
Campbell: It doesn't. And granted, there's a lot of moving pieces to this. I'm not a patent lawyer. I've dug into some of the backstory here. Amgen and others are trying to show that these patents won't hold up. Amgen, Biogen , and these companies have, obviously, lots of resources, lots of people on their team, if you will, that are working hard to ensure that they don't violate these patents. So, there's still the chance that biosimilars come to the market before 2020. But at the same time, AbbVie ... you don't necessarily go out and tell investors a long-term forecast unless you feel pretty confident. In the case of AbbVie, they think Humira sales could go to $18 billion by 2020. And if so, their total sales could grow to $37 billion from their $24 billion pace today.
Harjes: Yeah. Those are pretty lofty numbers. But what stands out to me about that is that they're still pretty reliant on Humira even then. So, you've got the projection for Humira, but if you add up projections between Humira at $18 billion and their hepatitis C drug, the Viekira Pak at $3 billion projection for 2020, and then you've got Imbruvica that they're projecting $5 billion. So, you add this together, and you get $26 billion of their $37 billion of expected sales just from those three key drugs. So, to me, this looks like they're going to continue to have this reliance, this somewhat worrisome overdependence on Humira.
Campbell: Yeah. They're heavily reliant on those drugs, there's no question about that. They have very few drugs generating a bulk of sales, and that's something that investors are going to have to be aware of. They're going to have to track this. They do think that they can diversify over time. They've got some interesting drugs in oncology that are coming through the pipeline and starting to make their way through the FDA. This is one to watch.
But again, not many companies go out there and issue long-term forecasts. They're giving you a specific number that they're targeting for 2020. And the only other company in the biopharma space that jumps to mind that's done that is Celgene . So it's a very small grouping of companies that are willing to stick their neck out. And I think that'll resonate with investors. Once everything settles down here, I think investors are going to look at that and they're going to start to say, "Hmm, maybe this is an interesting stock for me to consider, especially given its tasty 5.7% dividend yield."
The article AbbVie: There Ain't No Stinkin' Biosimilar Threat originally appeared on Fool.com.
Kristine Harjes has no position in any stocks mentioned. Todd Campbell owns shares of Celgene. The Motley Fool owns shares of and recommends Celgene. The Motley Fool 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 .
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. | At the conference, AbbVie's management presented investors with long-term sales guidance for its best-selling drug, Humira. Campbell: What's interesting here, and I think this is what's intriguing or exciting about the J.P. Morgan Conference, is when AbbVie came out and addressed their investors, they said, essentially, "what biosimilar threat? Motley Fool healthcare contributor Todd Campbell shares with analyst Kristine Harjes why he thinks that AbbVie is a big winner now that the annual J.P. Morgan Healthcare Conference has wrapped up. | Motley Fool healthcare contributor Todd Campbell shares with analyst Kristine Harjes why he thinks that AbbVie is a big winner now that the annual J.P. Morgan Healthcare Conference has wrapped up. At the conference, AbbVie's management presented investors with long-term sales guidance for its best-selling drug, Humira. Although the composition of matter patent is expiring this year, AbbVie's management seems to be very confident that methods of use patents that protect Humira into the early 2020s will keep these biosimilars at bay. | Motley Fool healthcare contributor Todd Campbell shares with analyst Kristine Harjes why he thinks that AbbVie is a big winner now that the annual J.P. Morgan Healthcare Conference has wrapped up. Although the composition of matter patent is expiring this year, AbbVie's management seems to be very confident that methods of use patents that protect Humira into the early 2020s will keep these biosimilars at bay. At the conference, AbbVie's management presented investors with long-term sales guidance for its best-selling drug, Humira. | Motley Fool healthcare contributor Todd Campbell shares with analyst Kristine Harjes why he thinks that AbbVie is a big winner now that the annual J.P. Morgan Healthcare Conference has wrapped up. At the conference, AbbVie's management presented investors with long-term sales guidance for its best-selling drug, Humira. Is this realistic, and does it make AbbVie's shares worth buying? |
26679.0 | 2016-01-29 00:00:00 UTC | Health Care Sector Update for 01/29/2016: JNJ, PFE, ABT, MRK, AMGN, ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-01292016-jnj-pfe-abt-mrk-amgn-abbv-2016-01-29 | nan | nan | Top Health-care stocks:
JNJ: flat
PFE: +0.6%
ABT: flat
MRK: +1.9%
AMGN: +0.4%
Health-care shares were mainly higher in pre-market trade Friday.
In health-care stocks news, Merck ( MRK ) rose in pre-market trade after it said late Thursday that its ZEPATIER drug has been approved by the U.S. FDA for the treatment of chronic hepatitis C. ZEPATIER previously received breakthrough therapy designations for HCV GT1 and HCV GT4 infections.
Shares are up 1.9% at $50.11, with a 52-week range of $45.69 - $61.93.
And, AbbVie ( ABBV ) fell in pre-bell trade after it reported Q4 net earnings of $1.52 billion, or $0.92 per share, compared to a loss of $810 million, or a loss of $0.51 per share, in the prior year period. The company reported Q4 adjusted EPS of $1.13 per share, up from $0.89 per share in Q4 2014 and topping analyst estimates of $1.12. Total revenues of $6.40 billion were up from $5.45 billion in Q4 2014 and slightly exceeded analyst projections of $6.39 billion. AbbVie confirmed full year EPS guidance of $4.90 to $5.10, straddling Street estimates of $5.03.
Shares are down 3.1% at $54.10, with a 52-week range of $45.45 - $71.60.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And, AbbVie ( ABBV ) fell in pre-bell trade after it reported Q4 net earnings of $1.52 billion, or $0.92 per share, compared to a loss of $810 million, or a loss of $0.51 per share, in the prior year period. AbbVie confirmed full year EPS guidance of $4.90 to $5.10, straddling Street estimates of $5.03. In health-care stocks news, Merck ( MRK ) rose in pre-market trade after it said late Thursday that its ZEPATIER drug has been approved by the U.S. FDA for the treatment of chronic hepatitis C. ZEPATIER previously received breakthrough therapy designations for HCV GT1 and HCV GT4 infections. | 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 ) fell in pre-bell trade after it reported Q4 net earnings of $1.52 billion, or $0.92 per share, compared to a loss of $810 million, or a loss of $0.51 per share, in the prior year period. AbbVie confirmed full year EPS guidance of $4.90 to $5.10, straddling Street estimates of $5.03. | And, AbbVie ( ABBV ) fell in pre-bell trade after it reported Q4 net earnings of $1.52 billion, or $0.92 per share, compared to a loss of $810 million, or a loss of $0.51 per share, in the prior year period. AbbVie confirmed full year EPS guidance of $4.90 to $5.10, straddling Street estimates of $5.03. In health-care stocks news, Merck ( MRK ) rose in pre-market trade after it said late Thursday that its ZEPATIER drug has been approved by the U.S. FDA for the treatment of chronic hepatitis C. ZEPATIER previously received breakthrough therapy designations for HCV GT1 and HCV GT4 infections. | And, AbbVie ( ABBV ) fell in pre-bell trade after it reported Q4 net earnings of $1.52 billion, or $0.92 per share, compared to a loss of $810 million, or a loss of $0.51 per share, in the prior year period. AbbVie confirmed full year EPS guidance of $4.90 to $5.10, straddling Street estimates of $5.03. Top Health-care stocks: JNJ: flat |
26680.0 | 2016-01-29 00:00:00 UTC | Can Gilead (GILD) Keep the Earnings Streak Alive in Q4? | ABBV | https://www.nasdaq.com/articles/can-gilead-gild-keep-the-earnings-streak-alive-in-q4-2016-01-29 | nan | nan | Gilead Sciences Inc.GILD is scheduled to report fourth-quarter 2015 results on Feb 2. Gilead's earnings track record has been pretty good so far. Last quarter, the company delivered a positive earnings surprise of 5.28%. In fact, Gilead has posted a positive earnings surprise in each of the trailing four quarters, with an average beat of 5.91%. Let's see how things are shaping up for this announcement.
What to Expect from Q4 Results?
Gilead's blockbuster hepatitis C virus (HCV) treatments are expected to continue to contribute meaningfully to the company's top line in the fourth quarter. Other anti-viral products, such as the single-tablet HIV treatments, Complera/Eviplera and Stribild, should also keep up their performance.
However, Atripla revenues are expected to continue declining. Gilead's HCV drugs have been witnessing a slowdown in sales. In the third quarter of 2015, Sovaldi sales plunged 47.6% year over year owing to the availability of newer HCV therapies like Harvoni and AbbVie Inc.'s ABBV Viekira Pak, among others. Harvoni also witnessed a sequential fall in revenues due to a gradual decrease in demand from the retail market during the quarter.
However, Harvoni sales could benefit from the label expansion this quarter. With the label expansion, Harvoni can now be used for the treatment of patients with chronic HCV genotypes 4, 5 and 6 infection, and in patients co-infected with HIV. Additionally, Harvoni, in combination with ribavirin as a 12-week regimen, was approved as an alternate therapy to 24 weeks of Harvoni for treatment-experienced genotype 1 patients with cirrhosis.
Gilead expects product sales in the range of $30-$31 billion. We could see an update on the guidance based on the company's fourth-quarter performance. Meanwhile, the company is also actively pursuing share repurchases.
Why a Likely Positive Surprise?
Our proven model shows that Gilead is likely to beat earnings because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to post an earnings beat, and Gilead has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +2.75%. This is a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Gilead currently carries a Zacks Rank #1.
The combination of Gilead's Zacks Rank #1 and +2.75% ESP makes us reasonably confident of an earnings beat this season.
Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Apart from Gilead, here are a few health care stocks that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter.
Cytokinetics, Incorporated CYTK has an Earnings ESP of +6.45% and a Zacks Rank #3. The company is expected to release results on Feb 11.
AstraZeneca PLC AZN has an Earnings ESP of +24.32% and a Zacks Rank #2. The company is scheduled to report results on Feb 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. | In the third quarter of 2015, Sovaldi sales plunged 47.6% year over year owing to the availability of newer HCV therapies like Harvoni and AbbVie Inc.'s ABBV Viekira Pak, among others. Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CYTOKINETCS INC (CYTK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead's blockbuster hepatitis C virus (HCV) treatments are expected to continue to contribute meaningfully to the company's top line in the fourth quarter. | Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CYTOKINETCS INC (CYTK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In the third quarter of 2015, Sovaldi sales plunged 47.6% year over year owing to the availability of newer HCV therapies like Harvoni and AbbVie Inc.'s ABBV Viekira Pak, among others. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to post an earnings beat, and Gilead has the right mix. | Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CYTOKINETCS INC (CYTK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In the third quarter of 2015, Sovaldi sales plunged 47.6% year over year owing to the availability of newer HCV therapies like Harvoni and AbbVie Inc.'s ABBV Viekira Pak, among others. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to post an earnings beat, and Gilead has the right mix. | In the third quarter of 2015, Sovaldi sales plunged 47.6% year over year owing to the availability of newer HCV therapies like Harvoni and AbbVie Inc.'s ABBV Viekira Pak, among others. Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report CYTOKINETCS INC (CYTK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. However, Harvoni sales could benefit from the label expansion this quarter. |
26681.0 | 2016-01-29 00:00:00 UTC | Instant Analysis: Can Merck Make Waves In the Crowded Hepatitis C Space? | ABBV | https://www.nasdaq.com/articles/instant-analysis-can-merck-make-waves-crowded-hepatitis-c-space-2016-01-29 | nan | nan | Does it matter?
Moreover, AbbVie's Viekira Pak is only now starting to hit its stride following a slower-than-expected commercial launch, generating a healthy $554 million in global sales in the fourth-quarter of 2015. Of course, this is a far cry from the $4.8 billion Gilead pulled in from its hepatitis C drugs in the third quarter of 2015 (the last quarter from which we have data).
Looking ahead, Merck plans on the having the drug in the hands of wholesalers within a matter of weeks, meaning that Zepatier could start impacting AbbVie and Gilead's top-lines to some degree in the first-quarter of 2016. The good news for AbbVie and Gilead's shareholders is that it'll probably take a couple of quarters for Merck to establish the drug's place in the eyes of the major pharmacy benefit managers. As such, AbbVie and Gilead probably won't see a huge drop-off in market share right off the bat, but eventually this hefty price discount is almost certain to take a toll.
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George Budwell has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Moreover, AbbVie's Viekira Pak is only now starting to hit its stride following a slower-than-expected commercial launch, generating a healthy $554 million in global sales in the fourth-quarter of 2015. Looking ahead, Merck plans on the having the drug in the hands of wholesalers within a matter of weeks, meaning that Zepatier could start impacting AbbVie and Gilead's top-lines to some degree in the first-quarter of 2016. The good news for AbbVie and Gilead's shareholders is that it'll probably take a couple of quarters for Merck to establish the drug's place in the eyes of the major pharmacy benefit managers. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Moreover, AbbVie's Viekira Pak is only now starting to hit its stride following a slower-than-expected commercial launch, generating a healthy $554 million in global sales in the fourth-quarter of 2015. Looking ahead, Merck plans on the having the drug in the hands of wholesalers within a matter of weeks, meaning that Zepatier could start impacting AbbVie and Gilead's top-lines to some degree in the first-quarter of 2016. | Looking ahead, Merck plans on the having the drug in the hands of wholesalers within a matter of weeks, meaning that Zepatier could start impacting AbbVie and Gilead's top-lines to some degree in the first-quarter of 2016. The good news for AbbVie and Gilead's shareholders is that it'll probably take a couple of quarters for Merck to establish the drug's place in the eyes of the major pharmacy benefit managers. Moreover, AbbVie's Viekira Pak is only now starting to hit its stride following a slower-than-expected commercial launch, generating a healthy $554 million in global sales in the fourth-quarter of 2015. | Looking ahead, Merck plans on the having the drug in the hands of wholesalers within a matter of weeks, meaning that Zepatier could start impacting AbbVie and Gilead's top-lines to some degree in the first-quarter of 2016. Moreover, AbbVie's Viekira Pak is only now starting to hit its stride following a slower-than-expected commercial launch, generating a healthy $554 million in global sales in the fourth-quarter of 2015. The good news for AbbVie and Gilead's shareholders is that it'll probably take a couple of quarters for Merck to establish the drug's place in the eyes of the major pharmacy benefit managers. |
26682.0 | 2016-01-29 00:00:00 UTC | AbbVie's (ABBV) 4Q Earnings In-Line With Estimates | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-4q-earnings-in-line-with-estimates-2016-01-29 | 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 with Merck's recently approved Zepatier expected to enter the market shortly.
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 the last four quarters with an average surprise of 6.03%. Estimate revisions are mostly positive for 2016.
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:
In-Line Earnings : ABBV's fourth quarter earnings came in at $1.13 per share, in-line with the Zacks Consensus Estimate.
Revenues : AbbVie posted revenues of approximately $6.4 billion, almost in line with the Zacks Consensus Estimate.
Key Stats : Humira sales came in at $3.7 billion. Fourth-quarter Imbruvica sales were $343 million. Viekira sales were $554 million in the fourth quarter.
Confirms 2016 Outlook : AbbVie confirmed its 2016 EPS outlook of $4.90 - $5.10, representing double-digit growth. The Zacks Consensus Estimate is currently $5.04 per share.
Pre-Market Trading : Shares were down 2.06% in pre-market trading .
Check back later for our full write up on this ABBV earnings report.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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. 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: In-Line Earnings : ABBV's fourth quarter earnings came in at $1.13 per share, in-line with the Zacks Consensus Estimate. 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: In-Line Earnings : ABBV's fourth quarter earnings came in at $1.13 per share, in-line with the Zacks Consensus Estimate. 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. | 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: In-Line Earnings : ABBV's fourth quarter earnings came in at $1.13 per share, in-line with the Zacks Consensus Estimate. 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. |
26683.0 | 2016-01-29 00:00:00 UTC | Why is Gilead (GILD) Stock Falling Today? | ABBV | https://www.nasdaq.com/articles/why-gilead-gild-stock-falling-today-2016-01-29 | nan | nan | Image: Breaking Finance News
On Friday, shares of biopharmaceutical company Gilead Sciences Inc GILD have dropped 5.36% in afternoon trading after rival Merck & Co MRK received FDA approval for a less expensive hepatitis C alternative to Gilead's drug offering.
There is a more than 30% difference in price between Merck's treatment and Gilead's and other competitor AbbVie's ABBV hepatitis C drugs.
Without a doubt, Gilead dominates the hepatitis C treatment market, with its Sovaldi and Harvoni drugs having combined sales of over $14 billion in the first nine months of 2015.
But Merck's new product will likely provide intense rivalry in the space; the company already has plans to focus on a triple-drug combination to treat further variations of the hepatitis C virus in order to better compete with Gilead and other drug companies.
In other company news, Gilead announced today that current Chairman and CEO John C. Martin will take over the role of Executive Chairman of the company. The current president and Chief Operating Officer will be promoted to CEO and appointed to the company's board of directors.
"John Martin has led Gilead as CEO for the past 20 years, and under his stewardship, the company has developed and delivered therapeutic advancements to millions of people around the world. His legacy is clear - and the vision he has set will continue with his contributions as Executive Chairman," said John Cogan, PhD, Gilead's Lead Independent Director.
"Over the past 25 years, John Milligan has distinguished himself as an exceptional leader, serving in diverse management roles and overseeing multiple phases of growth and expansion into new therapeutic areas and geographies. The Board of Directors and I are confident in his ability to lead Gilead into the future," commented John Martin.
These management changes will take effect March 10, 2016.
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On Friday, shares of biopharmaceutical company Gilead Sciences Inc GILD have dropped 5.36% in afternoon trading after rival Merck & Co MRK received FDA approval for a less expensive hepatitis C alternative to Gilead's drug offering.
There is a more than 30% difference in price between Merck's treatment and Gilead's and other competitor AbbVie's ABBV hepatitis C drugs.
Without a doubt, Gilead dominates the hepatitis C treatment market, with its Sovaldi and Harvoni drugs having combined sales of over $14 billion in the first nine months of 2015.
But Merck's new product will likely provide intense rivalry in the space; the company already has plans to focus on a triple-drug combination to treat further variations of the hepatitis C virus in order to better compete with Gilead and other drug companies.
In other company news, Gilead announced today that current Chairman and CEO John C. Martin will take over the role of Executive Chairman of the company. The current president and Chief Operating Officer will be promoted to CEO and appointed to the company's board of directors.
"John Martin has led Gilead as CEO for the past 20 years, and under his stewardship, the company has developed and delivered therapeutic advancements to millions of people around the world. His legacy is clear - and the vision he has set will continue with his contributions as Executive Chairman," said John Cogan, PhD, Gilead's Lead Independent Director.
"Over the past 25 years, John Milligan has distinguished himself as an exceptional leader, serving in diverse management roles and overseeing multiple phases of growth and expansion into new therapeutic areas and geographies. The Board of Directors and I are confident in his ability to lead Gilead into the future," commented John Martin.
These management changes will take effect March 10, 2016.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There is a more than 30% difference in price between Merck's treatment and Gilead's and other competitor AbbVie's ABBV hepatitis C drugs. "Over the past 25 years, John Milligan has distinguished himself as an exceptional leader, serving in diverse management roles and overseeing multiple phases of growth and expansion into new therapeutic areas and geographies. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | There is a more than 30% difference in price between Merck's treatment and Gilead's and other competitor AbbVie's ABBV hepatitis C drugs. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Image: Breaking Finance News On Friday, shares of biopharmaceutical company Gilead Sciences Inc GILD have dropped 5.36% in afternoon trading after rival Merck & Co MRK received FDA approval for a less expensive hepatitis C alternative to Gilead's drug offering. | There is a more than 30% difference in price between Merck's treatment and Gilead's and other competitor AbbVie's ABBV hepatitis C drugs. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In other company news, Gilead announced today that current Chairman and CEO John C. Martin will take over the role of Executive Chairman of the company. | There is a more than 30% difference in price between Merck's treatment and Gilead's and other competitor AbbVie's ABBV hepatitis C drugs. Click to get this free report MERCK & CO INC (MRK): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In other company news, Gilead announced today that current Chairman and CEO John C. Martin will take over the role of Executive Chairman of the company. |
26684.0 | 2016-01-29 00:00:00 UTC | Merck's Hepatitis C Doublet Wins FDA Approval and Unveils Its Secret Weapon | ABBV | https://www.nasdaq.com/articles/mercks-hepatitis-c-doublet-wins-fda-approval-and-unveils-its-secret-weapon-2016-01-29 | nan | nan | Image source: Merck & Co.
Attention hepatitis C sufferers: You now have a new treatment option.
Merck joins a growing field
After the closing bell on Thursday, the Food and Drug Administration announced that it had approved Merck 's Zepatier, a once-daily tablet that combines elbasvir and grazoprevir for the treatment of genotypes 1 and 4. Genotype 1 is the most common form of HCV and represents about 70% of all diagnosed cases. In the 12- and 16-week clinical studies that led up to the approval of Zepatier, it demonstrated sustained virologic responses with and without a ribavirin of between 94% and 97% in genotype 1 patients and 97% to 100% in genotype 4 patients.
Merck's doublet will now dive headlong into competition with the likes of Gilead Sciences' Harvoni and AbbVie's Viekira Pak.
Image source: AbbVie.
Gilead's Harvoni has been the dominant therapy among genotype 1 HCV treatments because of its one pill per day administration (which Zepatier can now match). AbbVie's Viekira Pak may require an HCV patient take up to six pills per day, which isn't as convenient. Plus, administration of Viekira Pak may include the need for a ribavirin, which has been shown to cause rashes and anemia in some patients. AbbVie is working on a once-daily formulation for genotype 1 that it anticipates bringing to pharmacy shelves as soon as the second half of 2016.
Through the first nine months of fiscal 2015, Gilead Sciences' Harvoni generated $10.52 billion in global sales, with Sovaldi (Harvoni is a cocktail drug combining Sovaldi and ledipasvir) chipping in another $3.73 billion. Based on these figures, we're looking at the genuine possibility that Gilead raked in $19 billion solely from HCV sales in fiscal 2015.
Merck unveils its secret weapon
How much market share could Merck's Zepatier really manage to pull away from Gilead's Harvoni? The answer to this question really depends on three factors for HCV drug developers: efficacy, treatment timeframe, and price.
Image source: Gilead Sciences.
In terms of efficacy, Zepatier and Harvoni are quite comparable. I don't see anything that stands out that'll cause physicians to steer patients away from Harvoni and toward Zepatier based on disease clearance.
By a similar token, Zepatier's treatment timeframe doesn't offer a large benefit over Harvoni, but it could gobble up some share based on its 12- and 16-week timeframe for treatment-experienced patients with liver cirrhosis and potentially other complications, such as HIV. The current recommendation for a similar patient with Harvoni would involve a 24-week treatment timeframe.
On price, though, Merck unveiled its secret weapon. With Harvoni selling at a whopping 12-week wholesale cost of $94,500, and Viekira Pak at $83,319 for the same treatment timeframe, Merck chose to price Zepatier at "just" $54,600 for a 12-week treatment -- a remarkable 42% discount to Harvoni. According to The Wall Street Journal , Merck set that price because only a minority of HCV patients have been treated to date. The reason so many haven't, Merck surmises, is because of the high costs of previously available treatments. It's possible that some consumers and physicians will be wooed by this steep discount relative to Harvoni considering the two treatments' similar efficacy and convenience.
Of course, if you dig below the surface, Merck's price advantage could prove illusory. Listed wholesale drug prices are rarely ever paid by patients, and they certainly aren't paid by insurers. Health-benefit providers worked out long-term -- and in some instances, exclusive -- deals for Gilead's and AbbVie's HCV products in exchange for hefty gross-to-net discounts.
Although Gilead Sciences keeps its gross-to-net discounts somewhat of a guarded secret, and gross-to-net isn't the same as just saying a "discount from list price," Foolish biotech guru Brian Orelli reported early last year that Gilead's fiscal 2015 gross-to-net on Harvoni would be about 46%. Translation: Harvoni priced out at an average of just $51,000 per 12-week treatment, assuming these numbers held true through the year. In other words, Merck's lower price tag for Zepatier doesn't really make it a huge bargain compared to Harvoni so much as it potentially removes a lot of the haggling between Merck and insurers from the equation (thereby enabling the drug to get on formularies more quickly). Of course, it's also distinctly possible that $51,000 is Merck's initial salvo, and that Merck will also offer discounts to insurers, thereby preserving its pricing advantage.
Image source: Pictures of Money via Flickr.
Where does Merck fit in?
The big question on the minds of investors is what sort of market share Merck might be able to win. An analyst with investment firm Bernstein believes Merck can carve out about an 11% niche in HCV by 2017, working out to about $2.2 billion in annual sales. Of course, Merck's success will be dependent on the deals it strikes with insurers, and in its ability to penetrate a market currently dominated by Harvoni.
Looking out a little further into the future, what investors should be keeping their eyes on is Merck's once-daily triplet that's currently in clinical testing. The combination of grazoprevir, MK-3682, and MK-8408, which is a new version of elbasvir, demonstrated a cure rate of 91% in genotypes 1 through 3 in just eight weeks in a midstage study reported in November. If Merck can successfully undercut Harvoni's treatment timeframe without a substantial reduction in efficacy, we could see a new market leader in HCV. This triplet, if approved by the FDA, could find its way onto pharmacy shelves by 2018, or perhaps a tad sooner.
The approval of Zepatier was an expected, but still substantial, win for Merck. Considering that it has suffered through four years of declining top-line revenues (compounded by negative currency translations), Zepatier could be the spark that really ignites Merck's turnaround. If you don't have Merck on your radar, perhaps now is the time to add it.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Merck's Hepatitis C Doublet Wins FDA Approval and Unveils Its Secret Weapon originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.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. | Health-benefit providers worked out long-term -- and in some instances, exclusive -- deals for Gilead's and AbbVie's HCV products in exchange for hefty gross-to-net discounts. Merck's doublet will now dive headlong into competition with the likes of Gilead Sciences' Harvoni and AbbVie's Viekira Pak. Image source: AbbVie. | Merck's doublet will now dive headlong into competition with the likes of Gilead Sciences' Harvoni and AbbVie's Viekira Pak. Image source: AbbVie. AbbVie's Viekira Pak may require an HCV patient take up to six pills per day, which isn't as convenient. | Merck's doublet will now dive headlong into competition with the likes of Gilead Sciences' Harvoni and AbbVie's Viekira Pak. Image source: AbbVie. AbbVie's Viekira Pak may require an HCV patient take up to six pills per day, which isn't as convenient. | Merck's doublet will now dive headlong into competition with the likes of Gilead Sciences' Harvoni and AbbVie's Viekira Pak. Image source: AbbVie. AbbVie's Viekira Pak may require an HCV patient take up to six pills per day, which isn't as convenient. |
26685.0 | 2016-01-29 00:00:00 UTC | AbbVie Posts In-Line Earnings, Maintains 2016 Outlook | ABBV | https://www.nasdaq.com/articles/abbvie-posts-line-earnings-maintains-2016-outlook-2016-01-29 | nan | nan | AbbVie Inc.ABBV reported fourth quarter 2015 earnings of $1.13 per share, up 27% from the year-ago quarter and in-line with the Zacks Consensus Estimate.
Revenues increased 18.4% to $6.36 billion in the fourth quarter of 2015, almost in line with the Zacks Consensus Estimate.
Full year revenues grew 14.8% to $22.8 billion while earnings increased 29.2% to $4.29 per share.
The Quarter in Details
Key drug Humira recorded growth of 10.5% with revenues coming in at $3.7 billion. U.S. sales increased 20.7% ($2.3 billion) driven by growth across all three major market categories: rheumatology, dermatology and gastroenterology. Ex-U.S. sales declined 3.4% to $1.4 billion, impacted by negative currency movement (13.1%). 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 Lupron (up 13.4% to $235 million), Synthroid (up 3.7% to $194 million), and Creon (up 22.8% to $185 million). HCV product Viekira recorded sales of $554 million, up from $469 million in the third quarter of 2015.
AbbVie recorded Imbruvica U.S. sales of $295 million and $48 million of international profit sharing.
Meanwhile, products like AndroGel, Synagis and Kaletra (HIV) recorded a decline in revenues. While AndroGel 1% is facing generic competition, Kaletra was most likely impacted by negative market trends.
Maintains 2016 Guidance
The company maintained its 2016 EPS guidance of $4.90 - $5.10, representing double-digit growth. The Zacks Consensus Estimate is $5.04 per share.
AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include Celgene Corp. CELG , Gilead Sciences Inc. GILD and AstraZeneca plc AZN . While Celgene and Gilead are Zacks Rank #1 (Strong Buy) stocks, AstraZeneca 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. | AbbVie Inc.ABBV reported fourth quarter 2015 earnings of $1.13 per share, up 27% from the year-ago quarter and in-line with the Zacks Consensus Estimate. AbbVie recorded Imbruvica U.S. sales of $295 million and $48 million of international profit sharing. AbbVie is a Zacks Rank #3 (Hold) stock. | Click to get this free report ASTRAZENECA PLC (AZN): 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 fourth quarter 2015 earnings of $1.13 per share, up 27% from the year-ago quarter and in-line with the Zacks Consensus Estimate. AbbVie recorded Imbruvica U.S. sales of $295 million and $48 million of international profit sharing. | AbbVie Inc.ABBV reported fourth quarter 2015 earnings of $1.13 per share, up 27% from the year-ago quarter and in-line with the Zacks Consensus Estimate. Click to get this free report ASTRAZENECA PLC (AZN): 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 recorded Imbruvica U.S. sales of $295 million and $48 million of international profit sharing. | AbbVie Inc.ABBV reported fourth quarter 2015 earnings of $1.13 per share, up 27% from the year-ago quarter and in-line with the Zacks Consensus Estimate. AbbVie is a Zacks Rank #3 (Hold) stock. AbbVie recorded Imbruvica U.S. sales of $295 million and $48 million of international profit sharing. |
26686.0 | 2016-01-29 00:00:00 UTC | Earnings Reaction History: AbbVie Inc., 40.0% Follow-Through Indicator, 2.8% Sensitive | ABBV | https://www.nasdaq.com/articles/earnings-reaction-history-abbvie-inc-400-follow-through-indicator-28-sensitive-2016-01-29 | nan | nan | Expected Earnings Release: 01/29/2016, Premarket
Avg. Extended-Hours Dollar Volume: $5,775,040
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: 37.5%
Average next regular session additional gain: 2.9%
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 37.5% of the time (3 events) the stock posted additional gains in the following regular session by an average of 2.9%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 50%
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 50.0% 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: 37.5% Average next regular session additional gain: 2.9% 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 37.5% of the time (3 events) the stock posted additional gains in the following regular session by an average of 2.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 50% 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 50.0% 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: $5,775,040 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: 37.5% Average next regular session additional gain: 2.9% 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 37.5% of the time (3 events) the stock posted additional gains in the following regular session by an average of 2.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 50% 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 50.0% 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: 37.5% Average next regular session additional gain: 2.9% 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 37.5% of the time (3 events) the stock posted additional gains in the following regular session by an average of 2.9%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 50% 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 50.0% 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: $5,775,040 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Extended-Hours Dollar Volume: $5,775,040 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: 37.5% Average next regular session additional gain: 2.9% 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 37.5% of the time (3 events) the stock posted additional gains in the following regular session by an average of 2.9%. |
26687.0 | 2016-01-29 00:00:00 UTC | Roche's (RHHBY) Earnings Miss Estimates, Revenues Beat | ABBV | https://www.nasdaq.com/articles/roches-rhhby-earnings-miss-estimates-revenues-beat-2016-01-29 | nan | nan | Roche Holding AG' s RHHBY core earnings came in at $1.75 per American Depositary Receipt (ADR) in 2015 but missed the Zacks Consensus Estimate of $1.77.
Revenues of $50.1 billion (CHF48.1 billion) beat the Zacks Consensus Estimate of $48.8 billion. Revenue growth was driven primarily 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.
Results in Detail
Sales at the Pharmaceuticals division increased 5% to CHF37.3 billion on the back of growth in the oncology portfolio (8%), which was driven by the HER2 breast cancer franchise and Avastin. Sales of HER2 breast cancer franchise (+19%) were driven by strong demand for new drugs - Perjeta and Kadcyla - along with the legacy drug, Herceptin.
Sales of Avastin were up 9% due to increased demand in the ovarian, colorectal, lung and cervical cancer indications, following its launch in Europe and emerging markets. Strong sales of Rituxan/MabThera (+5%) were propelled by demand in the oncology and immunology indications.
Sales of the immunology franchise grew 24% driven by strong uptake of Esbriet, and increased sales of Actemra/RoActemra (+23%) and Xolair (+25). The new subcutaneous formulation of Actemra witnessed impressive uptake in the U.S. and EU markets. We note that the FDA granted breakthrough therapy designation to Actemra for systemic sclerosis in Jun 2015.
However, sales of Pegasys (-44%) were hurt by competition from a new generation of treatments, while Valcyte/Cymevene (-45%) and Xeloda (-31%) faced generic competition.
Revenues from the Diagnostics division were CHF10.8 billion, up 6% driven by solid performance of the professional diagnostics (+8%) unit, which was in turn fueled by the immunodiagnostics business (+13%). Tissue diagnostics (+12%) and Molecular Diagnostics (+10%) also performed impressively. However, sales of diabetes care declined 3% due to continuing challenging market conditions.
In 2015, Roche launched seven tests and eight instruments, including the new cobas 6800 and cobas 8800 systems in Molecular Diagnostics, and the Ventana HE 600 system in Tissue Diagnostics.
2016 Outlook
Roche expects sales in 2016 to increase in low- to mid-single digits. The company expects its core earnings per share to grow at a higher rate than sales in 2016. Roche intends to further increase its dividend in 2016.
Pipeline Update
Roche announced positive phase III data on pipeline candidate, ocrelizumab, in relapsing forms of multiple sclerosis (MS) and primary progressive MS (PPMS). The company plans to submit these data to the global health authorities in 2016 for a potential marketing approval.
Cotellic was approved for the treatment of metastatic melanoma in combination with Zelboraf in both the U.S. and the EU. In Dec 2015, the FDA granted accelerated approval to Alecensa for the treatment non-small cell lung cancer (NSCLC). A regulatory decision from the European Medicines Agency (EMA) is expected in 2016.
Meanwhile, Avastin was approved in the EU for the treatment of advanced cervical cancer. Perjeta, in combination with Herceptin and chemotherapy, was approved in the EU for the presurgical treatment of early HER2-positive breast cancer.
The FDA also granted priority review for a marketing application of venetoclax in Dec 2015 as monotherapy for previously treated chronic lymphocytic leukemia (CLL). The FDA also granted breakthrough therapy designation to venetoclax in combination with MabThera/Rituxan for relapsed or refractory CLL. We note that Roche is developing venetoclax in collaboration with AbbVie ABBV .
Further, the company expects to launch eight drugs over the next three years. In Jan 2016, Roche filed atezolizumab for approval in the U.S. for the treatment of patients with metastatic urothelial bladder cancer under the FDA's breakthrough therapy designation. It expects to complete a second filing for atezolizumab to the FDA soon for NSCLC.
Our Take
Roche currently carries a Zacks Rank #4 (Sell). Currency volatility, along with generic competition for Xeloda and Valcyte hurt the company's performance in 2015. Lucentis continues to decline owing to competitive pressures. Shares fell 3% following the company's announcement of its results.
We expect investor focus on new drug approvals as the introduction of biosimilars, (expected in the second half of 2017 in Europe) for key drugs like MabThera and Herceptin are expected to impact the top line, going forward.
Nevertheless, we are impressed by the company's efforts to grow its portfolio beyond oncology and enter new arenas such as multiple sclerosis and asthma.
Some better-ranked stocks in the health care sector are Celgene Corp. CELG and Gilead Sciences GILD . 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. | We note that Roche is developing venetoclax in collaboration with AbbVie ABBV . Click to get this free report ROCHE HLDG LTD (RHHBY): 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. Results in Detail Sales at the Pharmaceuticals division increased 5% to CHF37.3 billion on the back of growth in the oncology portfolio (8%), which was driven by the HER2 breast cancer franchise and Avastin. | Click to get this free report ROCHE HLDG LTD (RHHBY): 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. We note that Roche is developing venetoclax in collaboration with AbbVie ABBV . Sales of HER2 breast cancer franchise (+19%) were driven by strong demand for new drugs - Perjeta and Kadcyla - along with the legacy drug, Herceptin. | Click to get this free report ROCHE HLDG LTD (RHHBY): 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. We note that Roche is developing venetoclax in collaboration with AbbVie ABBV . Results in Detail Sales at the Pharmaceuticals division increased 5% to CHF37.3 billion on the back of growth in the oncology portfolio (8%), which was driven by the HER2 breast cancer franchise and Avastin. | We note that Roche is developing venetoclax in collaboration with AbbVie ABBV . Click to get this free report ROCHE HLDG LTD (RHHBY): 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. Results in Detail Sales at the Pharmaceuticals division increased 5% to CHF37.3 billion on the back of growth in the oncology portfolio (8%), which was driven by the HER2 breast cancer franchise and Avastin. |
26688.0 | 2016-01-28 00:00:00 UTC | Noteworthy ETF Outflows: XBI, BXLT, ABBV, CPHD | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows-xbi-bxlt-abbv-cphd-2016-01-28 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the SPDR S&P Biotech ETF (Symbol: XBI) where we have detected an approximate $188.2 million dollar outflow -- that's a 10.2% decrease week over week (from 35,800,000 to 32,150,000). Among the largest underlying components of XBI, in trading today Baxalta Inc (Symbol: BXLT) is down about 2.9%, AbbVie Inc. (Symbol: ABBV) is off about 3.2%, and Cepheid (Symbol: CPHD) is lower by about 3.3%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average:
Looking at the chart above, XBI's low point in its 52 week range is $48.90 per share, with $91.11 as the 52 week high point - that compares with a last trade of $49.50. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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 XBI, in trading today Baxalta Inc (Symbol: BXLT) is down about 2.9%, AbbVie Inc. (Symbol: ABBV) is off about 3.2%, and Cepheid (Symbol: CPHD) is lower by about 3.3%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $48.90 per share, with $91.11 as the 52 week high point - that compares with a last trade of $49.50. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XBI, in trading today Baxalta Inc (Symbol: BXLT) is down about 2.9%, AbbVie Inc. (Symbol: ABBV) is off about 3.2%, and Cepheid (Symbol: CPHD) is lower by about 3.3%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $48.90 per share, with $91.11 as the 52 week high point - that compares with a last trade of $49.50. 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 XBI, in trading today Baxalta Inc (Symbol: BXLT) is down about 2.9%, AbbVie Inc. (Symbol: ABBV) is off about 3.2%, and Cepheid (Symbol: CPHD) is lower by about 3.3%. 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 Biotech ETF (Symbol: XBI) where we have detected an approximate $188.2 million dollar outflow -- that's a 10.2% decrease week over week (from 35,800,000 to 32,150,000). For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $48.90 per share, with $91.11 as the 52 week high point - that compares with a last trade of $49.50. | Among the largest underlying components of XBI, in trading today Baxalta Inc (Symbol: BXLT) is down about 2.9%, AbbVie Inc. (Symbol: ABBV) is off about 3.2%, and Cepheid (Symbol: CPHD) is lower by about 3.3%. For a complete list of holdings, visit the XBI Holdings page » The chart below shows the one year price performance of XBI, versus its 200 day moving average: Looking at the chart above, XBI's low point in its 52 week range is $48.90 per share, with $91.11 as the 52 week high point - that compares with a last trade of $49.50. 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). |
26689.0 | 2016-01-28 00:00:00 UTC | 3 Things to Watch in Gilead Sciences' Q4 Results | ABBV | https://www.nasdaq.com/articles/3-things-watch-gilead-sciences-q4-results-2016-01-28 | nan | nan | Image source: Gilead Sciences.
If you're expecting Gilead Sciences to stumble when it announces fourth-quarter results on Feb. 2, history isn't on your side. It's been quite a while since the biotech truly disappointed in a quarterly earnings report.
Things could always change, though. Here are three key things to watch that could make the difference in whether the big biotech continues its winning ways.
1.Payer purse strings
Payer reimbursement restrictions remains the most significant challenge for Gilead's hepatitis C virus (HCV) drugs Harvoni and Sovaldi. The high price tags of the drugs has caused sticker shock for insurers and pharmacy benefit managers. In many cases, only patients with high fibrosis scores are eligible to receive reimbursement.
These tight payer purse strings have a ripple impact throughout the healthcare system. Many physicians are skittish about even writing a prescription for Harvoni or Sovaldi unless patients are very sick, because they are afraid payers will turn down payment. Those fears are warranted. The rejection rates for prescriptions for patients with lower fibrosis scores are high.
Gilead has been crossing its fingers that two factors will help sway payers to loose their restrictions. First, the biotech thinks that more stability in patient volumes will help. Payers were flooded with patients wanting Harvoni and Sovaldi when the drugs first hit the market. As time has passed, payers and PBMs should be better able to model the financial impact of the high-dollar drugs.
The other factor that Gilead hopes will help is increasing data showing the cost effectiveness of treating HCV patients using Harvoni and Sovaldi. In particular, Gilead would like payers to closely examine the total costs of treating less sick patients earlier.
Will either of these factors make a dent in the biotech's fourth-quarter numbers? Maybe not, but I'm definitely looking forward to seeing Gilead's profiles of HCV patients that are intended for treatment with its drugs. Any increase in the percentage of patients with lower fibrosis scores in this mix would bode well for the company headed into 2016.
2. International intrigue
Perhaps the best news for Gilead in the third quarter was how well HCV sales were growing in international markets. While Europe experienced strong growth in the third quarter of 2015 compared to the prior year, sales dipped from the second quarter. However, international sales outside of Europe soared 853% year over year.
It's quite possible that international sales will provide the spark that Gilead needs to keep its momentum going while it waits for U.S. payers to relax reimbursement restrictions. All international markets, including Europe, made up a third of the biotech's total HCV revenue last quarter. That portion should continue to climb, making international sales ever more important for Gilead.
And while Europe was something of a disappointment in the third quarter, I think that was only temporary. The sequential decline in European sales was probably a seasonal issue, which could set up fourth-quarter sales to shine.
3.Competitor's complications
Gilead also could benefit from AbbVie 's woes. In October, AbbVie had to update the label for rival HCV drug Viekira Pak because of safety concerns for patients with Child-Pugh B cirrhosis.
Will AbbVie's woes have any impact for Gilead's fourth-quarter sales? It's possible. While payer contracts wouldn't be affected, physician and patient perceptions very well could be. I wouldn't underestimate the potential for Viekira Pak's label change to reinforce suspicions that the drug just isn't as safe as Gilead's Harvoni and Sovaldi.
AbbVie reported third-quarter sales for Viekira Pak of $469 million. That's a far cry from the $4.8 billion that Harvoni and Sovaldi generated in the same period. However, should Gilead gain any appreciable market share from its main HCV rival, it could be enough to play a factor in the biotech's fourth-quarter performance.
Wild cards
You've probably noticed that all three of the above focus on Gilead's HCV drugs. There are other wild cards that could be key for the biotech in fourth quarter, though. Over 40% of Gilead's revenue stems from sales of non-HCV drugs.
Investors will want to pay particular attention to trends with Gilead's HIV franchise. Stribild and Truvada are doing well, but any setbacks on the HIV front could overcome good news for Harvoni and Sovaldi.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In October, AbbVie had to update the label for rival HCV drug Viekira Pak because of safety concerns for patients with Child-Pugh B cirrhosis. 3.Competitor's complications Gilead also could benefit from AbbVie 's woes. Will AbbVie's woes have any impact for Gilead's fourth-quarter sales? | In October, AbbVie had to update the label for rival HCV drug Viekira Pak because of safety concerns for patients with Child-Pugh B cirrhosis. 3.Competitor's complications Gilead also could benefit from AbbVie 's woes. Will AbbVie's woes have any impact for Gilead's fourth-quarter sales? | 3.Competitor's complications Gilead also could benefit from AbbVie 's woes. In October, AbbVie had to update the label for rival HCV drug Viekira Pak because of safety concerns for patients with Child-Pugh B cirrhosis. Will AbbVie's woes have any impact for Gilead's fourth-quarter sales? | Will AbbVie's woes have any impact for Gilead's fourth-quarter sales? 3.Competitor's complications Gilead also could benefit from AbbVie 's woes. In October, AbbVie had to update the label for rival HCV drug Viekira Pak because of safety concerns for patients with Child-Pugh B cirrhosis. |
26690.0 | 2016-01-28 00:00:00 UTC | Why Incyte's Shares Crashed 12% Today | ABBV | https://www.nasdaq.com/articles/why-incytes-shares-crashed-12-today-2016-01-28 | nan | nan | Image source: Incyte Corporation.
What: After reporting that it is pulling the plug on a key trial for its cancer drug Jakafi, shares in Incyte Corporation tumbled by 12.4% at 1:30 p.m. ET.
So what: Jakafi is Incyte's only FDA-approved drug on the market and it's used to treat myelofibrosis and polycthemia vera.
In Q3, Incyte reported that Jakafi's net product sales totaled $161 million, up 65% from a year ago, and that it had received an additional $18 million in royalties from co-marketer Novartis thanks to Jakafi's international sales.
Investors have been hoping that Jakafi's success in these other indications would carry over in ongoing trials designed to expand its use to more patients and, in turn, drive additional future sales growth. Therefore, shuttering the midstage combination trial of Jakafi in relapsed/refractory metastatic colorectal cancer patients with high C-reactive protein is disappointing.
The company's decision to abandon the study came after an interim look at trial data showed that Jakafi didn't work as well as management hoped.
Now what: Today's decision puts pressure on Jakafi's remaining cancer trials, including those exploring its use in pancreatic cancer, lung cancer, and breast cancer. It also increases the focus on other needle-moving drugs at Incyte, including baricitinib, a JAK1/JAK2 inhibitor targeting rheumatoid arthritis patients.
Last year, Incyte and co-developer Eli Lilly & Co. reported positive late-stage trial results showing that baricitinib works better than AbbVie 's Humira in RA patients that don't respond to disease-modifying drugs, and earlier this month, Eli Lilly & Co. filed for FDA approval of baricitinib.
Despite Jakafi coming up short in this one trial, the potential to earn meaningful royalties and milestones from Eli Lilly & Co. makes shares in this company intriguing on the sell-off, and for that reason, I think investors ought to add this one to their wish list.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 Why Incyte's Shares Crashed 12% Today originally appeared on Fool.com.
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 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 .
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. | Last year, Incyte and co-developer Eli Lilly & Co. reported positive late-stage trial results showing that baricitinib works better than AbbVie 's Humira in RA patients that don't respond to disease-modifying drugs, and earlier this month, Eli Lilly & Co. filed for FDA approval of baricitinib. Investors have been hoping that Jakafi's success in these other indications would carry over in ongoing trials designed to expand its use to more patients and, in turn, drive additional future sales growth. Therefore, shuttering the midstage combination trial of Jakafi in relapsed/refractory metastatic colorectal cancer patients with high C-reactive protein is disappointing. | Last year, Incyte and co-developer Eli Lilly & Co. reported positive late-stage trial results showing that baricitinib works better than AbbVie 's Humira in RA patients that don't respond to disease-modifying drugs, and earlier this month, Eli Lilly & Co. filed for FDA approval of baricitinib. What: After reporting that it is pulling the plug on a key trial for its cancer drug Jakafi, shares in Incyte Corporation tumbled by 12.4% at 1:30 p.m. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year, Incyte and co-developer Eli Lilly & Co. reported positive late-stage trial results showing that baricitinib works better than AbbVie 's Humira in RA patients that don't respond to disease-modifying drugs, and earlier this month, Eli Lilly & Co. filed for FDA approval of baricitinib. In Q3, Incyte reported that Jakafi's net product sales totaled $161 million, up 65% from a year ago, and that it had received an additional $18 million in royalties from co-marketer Novartis thanks to Jakafi's international sales. Now what: Today's decision puts pressure on Jakafi's remaining cancer trials, including those exploring its use in pancreatic cancer, lung cancer, and breast cancer. | Last year, Incyte and co-developer Eli Lilly & Co. reported positive late-stage trial results showing that baricitinib works better than AbbVie 's Humira in RA patients that don't respond to disease-modifying drugs, and earlier this month, Eli Lilly & Co. filed for FDA approval of baricitinib. What: After reporting that it is pulling the plug on a key trial for its cancer drug Jakafi, shares in Incyte Corporation tumbled by 12.4% at 1:30 p.m. The Motley Fool has no position in any of the stocks mentioned. |
26691.0 | 2016-01-27 00:00:00 UTC | Will Currency Volatility Keep Hurting Abbott's (ABT) Earnings? | ABBV | https://www.nasdaq.com/articles/will-currency-volatility-keep-hurting-abbotts-abt-earnings-2016-01-27 | nan | nan | Abbott LaboratoriesABT is scheduled to report fourth-quarter 2015 and full-year results before the opening bell on Jan 28, 2016.
Abbott Labs has an impressive track record with the company beating estimates in each of the trailing four quarters with an average earnings surprise of 5.55%. Let us see how things are shaping up for this announcement.
Will Currency Continue to Impact?
Although growth has slowed down in emerging markets, these economies still outpace the developing ones on the back of national policies that focus on expanding access to care; and favorable trends like increasing birth rates, aging populations, and adoption of western standards and technologies.
The nutrition business continues to drive revenues as the company expands its pediatric nutrition portfolio through product launches in the U.S. and ex-U.S. markets (including the launch of a non-GMO labeled formula, Similac Advance, in the U.S.; Eleva, in China). However, the adult nutrition business continues to be impacted by competition and market dynamics. On the other hand, the integration of CFR Pharmaceuticals boosted the established pharmaceuticals division (EPD).
For the fourth quarter, sales (on an operational basis) are expected to grow in the mid single digits. However, the top line may be adversely affected by currency fluctuation to the tune of 6.5%, leading to a sales decline in the low single digits. On a segmental basis, the company expects operational sale at the global nutritional business and diagnostic unit to grow in the mid single digits. Vascular sales are estimated to be relatively flat. The global diabetes care business is expected to grow in the low single digits on an operational basis. Growth at the medical optics business is anticipated to be in the mid single digits, while EPD is expected to continue generating low double-digit sales growth.
Concurrent with its third-quarter earnings release, Abbott Labs narrowed its full-year earnings per share outlook to $2.14-$2.16. Unfavorable movement in foreign currency rates will impact sales by about 8% in 2015.
What Our Model Indicates
Our proven model does not conclusively show that Abbott Labs is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to likely post an earnings beat. However, that is not the case here as you will see below.
Zacks ESP : The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.64%. This is because the Most Accurate estimate stands at 60 cents, while the Zacks Consensus Estimate is pegged higher at 61 cents.
Zacks Rank: Abbott Labs currently carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with Sell-rated stocks (Zacks Rank #4 and #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
AstraZeneca PLC AZN has an Earnings ESP of +24.32% and a Zacks Rank #2. The company is scheduled to report 2015 results on Feb 4.
Gilead Sciences Inc. GILD has an Earnings ESP of +2.75% and a Zacks Rank #1. The company will report fourth-quarter 2015 results on Feb 2.
AbbVie Inc. ABBV has an Earnings ESP of 0.88% and a Zacks Rank #3. The company is scheduled to report fourth-quarter 2015 results on Jan 29.
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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 0.88% and a Zacks Rank #3. Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report ABBOTT LABS (ABT): 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. Abbott Labs has an impressive track record with the company beating estimates in each of the trailing four quarters with an average earnings surprise of 5.55%. | Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report ABBOTT LABS (ABT): 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. AbbVie Inc. ABBV has an Earnings ESP of 0.88% and a Zacks Rank #3. On a segmental basis, the company expects operational sale at the global nutritional business and diagnostic unit to grow in the mid single digits. | Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report ABBOTT LABS (ABT): 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. AbbVie Inc. ABBV has an Earnings ESP of 0.88% and a Zacks Rank #3. Zacks ESP : The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.64%. | Click to get this free report ASTRAZENECA PLC (AZN): Free Stock Analysis Report ABBOTT LABS (ABT): 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. AbbVie Inc. ABBV has an Earnings ESP of 0.88% and a Zacks Rank #3. Zacks ESP : The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.64%. |
26692.0 | 2016-01-27 00:00:00 UTC | Amgen's Biosimilar of AbbVie's Humira under FDA Review | ABBV | https://www.nasdaq.com/articles/amgens-biosimilar-of-abbvies-humira-under-fda-review-2016-01-27 | nan | nan | Updates on the regulatory front are eagerly awaited by investors in the pharma/biotech sector as they impact the share price of the concerned company. Regulatory updates include events like filing of marketing applications, acceptance of these applications for review by the regulatory agencies, reviews by advisory panels and, finally, a response from the regulatory agency regarding the approval status.
Earlier this week, Amgen Inc.AMGN announced that its biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira, has been accepted for review by the FDA. A response from the FDA is expected by Sep 25, 2016.
We note that Humira, an anti-TNF-α monoclonal antibody, is approved in many countries for the treatment of a wide range of inflammatory diseases. Humira delivered worldwide sales of $10.3 billion in the first nine months of 2015 and was one of the top-selling products in the U.S. in 2014.
Amgen currently has nine biosimilar candidates in its portfolio representing huge commercial opportunity. The company is working on developing biosimilar versions of drugs like Avastin, Herceptin, Remicade, Rituxan and Erbitux.
However, 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. Additionally, Amgen is likely to face biosimilar competition for a couple of key drugs in its portfolio including Neulasta and Enbrel. Sandoz announced that regulatory applications for the biosimilar versions of both Neulasta and Enbrel are currently under FDA review.
As per sources, the market for biosimilars can grow to $20 billion in 2020. Not surprisingly, competition in this space is growing with pharmaceutical and biotech companies competing to develop biosimilars.
Amgen is a Zacks Rank #3 (Hold) stock. A better-ranked stock in the health care sector is Anika Therapeutics Inc. ANIK , 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. | Earlier this week, Amgen Inc.AMGN announced that its biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira, has been accepted for review by the FDA. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Updates on the regulatory front are eagerly awaited by investors in the pharma/biotech sector as they impact the share price of the concerned company. | Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this week, Amgen Inc.AMGN announced that its biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira, has been accepted for review by the FDA. Sandoz announced that regulatory applications for the biosimilar versions of both Neulasta and Enbrel are currently under FDA review. | Earlier this week, Amgen Inc.AMGN announced that its biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira, has been accepted for review by the FDA. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Regulatory updates include events like filing of marketing applications, acceptance of these applications for review by the regulatory agencies, reviews by advisory panels and, finally, a response from the regulatory agency regarding the approval status. | Earlier this week, Amgen Inc.AMGN announced that its biologics license application for ABP 501, a biosimilar version of AbbVie Inc.'s ABBV best-selling drug, Humira, has been accepted for review by the FDA. Click to get this free report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Zarxio is the biosimilar version of Amgen's blockbuster drug, Neupogen. |
26693.0 | 2016-01-26 00:00:00 UTC | Take Advantage Of The Correction: These Solid Dividend-Payers Are On Sale | ABBV | https://www.nasdaq.com/articles/take-advantage-correction-these-solid-dividend-payers-are-sale-2016-01-26 | nan | nan | I've said it before, but it bears repeating. There are only two ways to increase a stock's dividend yield: either raise the payout (which takes time) or decrease the share price (which can happen with lightning speed).
While everyone loves the former, they tend to despise the latter. That's understandable if the stock is retreating because of a material change that might pose a serious threat to earnings. But in many cases, the fundamentals are sound and then stock is simply moving along with the broad market current.
The S&P 500 has dropped more than 8% just since January 1. The overwhelming majority of stocks have fallen by more than 20% over the past three months.
So that $20 stock with the $0.50 per share annual dividend is now a $16 stock. Suddenly, what was once a 2.50% dividend yield is now a stronger 3.12%. We could get the same increase in yield if the dividend rose from 50 cents to 62 cents. But even at a healthy 10% annual pace, that would still take more than two years.
Though we hate it, the falling share price got us to that goal much more quickly. There's also the added benefit of capturing a 25% capital appreciation bounce once the panic subsides and the stock returns to $20.
Of course, while the math checks out, it's never easy to invest when the market is tanking. There is always the fear that the $16 stock that seems cheap today might be a $14 stock tomorrow. That's as true now as ever, which places even more importance on rigorous financial analysis.
To paraphrase Warren Buffett, the stock market is a voting machine in the short-term and a weighing machine in the long-term. We can't control what happens the next few months, but we can identify well-positioned market leaders with strong returns on capital, visible cash flows, and durable competitive advantages -- the type that can maintain or even increase their distributions.
For now, I want to focus my screen on stocks whose yields have been propelled above the 4% mark (the minimum for being eligible for my portfolio). To help weed out troubled companies that are falling for a reason, all candidates must have positive free cash flow, 15% or better return on equity (ROE), and positive expected earnings growth in 2016.
Action to Take: Like any stock screen, the stocks above were pulled from the broader market based on loose criteria, not hard in-depth research. Still, they are all quality businesses whose earnings are growing in this economy, not shrinking.
And thanks to the market's foul mood, you can lock in yields 38%, 55% and even up to 91% higher than they have been recently offering.
P.S. Analysts agree -- the market's historic bull-run could be coming to an end very soon. Don't let your portfolio be devastated when it does. These eight 'Hall of Fame' stocks gai ned 10% during the Great Recession ... and they can do it again. Learn more about this elite asset class in my brand new report here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There are only two ways to increase a stock's dividend yield: either raise the payout (which takes time) or decrease the share price (which can happen with lightning speed). There's also the added benefit of capturing a 25% capital appreciation bounce once the panic subsides and the stock returns to $20. We can't control what happens the next few months, but we can identify well-positioned market leaders with strong returns on capital, visible cash flows, and durable competitive advantages -- the type that can maintain or even increase their distributions. | There are only two ways to increase a stock's dividend yield: either raise the payout (which takes time) or decrease the share price (which can happen with lightning speed). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2016 StreetAuthority, LLC. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There are only two ways to increase a stock's dividend yield: either raise the payout (which takes time) or decrease the share price (which can happen with lightning speed). So that $20 stock with the $0.50 per share annual dividend is now a $16 stock. Action to Take: Like any stock screen, the stocks above were pulled from the broader market based on loose criteria, not hard in-depth research. | There are only two ways to increase a stock's dividend yield: either raise the payout (which takes time) or decrease the share price (which can happen with lightning speed). So that $20 stock with the $0.50 per share annual dividend is now a $16 stock. We can't control what happens the next few months, but we can identify well-positioned market leaders with strong returns on capital, visible cash flows, and durable competitive advantages -- the type that can maintain or even increase their distributions. |
26694.0 | 2016-01-25 00:00:00 UTC | See Which Of The Latest 13F Filers Holds AbbVie | ABBV | https://www.nasdaq.com/articles/see-which-latest-13f-filers-holds-abbvie-2016-01-25 | nan | nan | At Holdings Channel , we have reviewed the latest batch of the 26 most recent 13F filings for the 12/31/2015 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 18 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen . Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 09/30/2015 to 12/31/2015, with 8 having decreased their positions and 1 new position. Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 12/31/2015 reporting period (out of the 487 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. We found that between these two periods, funds reduced their holdings by 211,994 shares in the aggregate, from 28,001,729 down to 27,789,735 for a share count decline of approximately -0.76%. The overall top three funds holding ABBV on 12/31/2015 were: We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc. (Symbol: ABBV).
10 S&P 500 Components Hedge Funds Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel , we have reviewed the latest batch of the 26 most recent 13F filings for the 12/31/2015 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 18 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like AbbVie Inc. (Symbol: ABBV). Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 09/30/2015 to 12/31/2015, with 8 having decreased their positions and 1 new position. | At Holdings Channel , we have reviewed the latest batch of the 26 most recent 13F filings for the 12/31/2015 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 18 of these funds. We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. Below, let's take a look at the change in ABBV positions, for this latest batch of 13F filers: In terms of shares owned, we count 5 of the above funds having increased existing ABBV positions from 09/30/2015 to 12/31/2015, with 8 having decreased their positions and 1 new position. | Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABBV share count in the aggregate among all of the funds which held ABBV at the 12/31/2015 reporting period (out of the 487 we looked at in total). We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. The overall top three funds holding ABBV on 12/31/2015 were: We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | We then compared that number to the sum total of ABBV shares those same funds held back at the 09/30/2015 period, to see how the aggregate share count held by hedge funds has moved for ABBV. The overall top three funds holding ABBV on 12/31/2015 were: We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel , we have reviewed the latest batch of the 26 most recent 13F filings for the 12/31/2015 reporting period, and noticed that AbbVie Inc. (Symbol: ABBV) was held by 18 of these funds. |
26695.0 | 2016-01-24 00:00:00 UTC | What You Missed at the 2016 J.P. Morgan Healthcare Conference | ABBV | https://www.nasdaq.com/articles/what-you-missed-2016-jp-morgan-healthcare-conference-2016-01-24 | nan | nan | Last Thursday closed out the 34 th annual J.P. Morgan Healthcare Conference, where hundreds of healthcare companies gathered for announcements about their plans for 2016.
In this week's Industry Focus: Healthcare , Kristine Harjes and Todd Campbell go over three of the main highlights: AbbVie 's standout guidance announcement, Johnson & Johnson 's plans for M&A, and a huge, exciting new project that's seeking to radically transform cancer treatment as we know it.
A full transcript follows the video.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, 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 .
This podcast was recorded on Jan. 20, 2016.
Kristine Harjes: The Super Bowl of healthcare; this is Industry Focus.
Hello, everyone! Welcome to Industry Focus, healthcare edition. I'm your host, Kristine Harjes. I am joined by Motley Fool healthcare contributor Todd Campbell on the line via Skype. Todd, welcome back!
Todd Campbell: Always happy to be here! Looking forward to today's conversation.
Harjes: Yeah, me too. So, last week, really exciting time in healthcare, as alluded to. Basically the Super Bowl of healthcare was last week. It's a four-day long conference known as the J.P. Morgan Healthcare Conference. This was the 34th annual one? Yeah?
Campbell: Yeah, granddaddy of them all, too. 400 companies show up and basically update investors in the universe on how they're hoping to change the world for the better in terms of healthcare.
Harjes: Yeah. So, it's a really important event for the industry, definitely sets the tone for the rest of the year, since it always occurs in early January. And we get a lot of good news stories out of it. So, what stood out to you, Todd?
Campbell: Well, this was an interesting year. Unless you haven't turned on the television set or checked your Yahoo! Finance feed or something like that ... the market has been tumbling. Usually, when you've got J.P. Morgan going on, a lot of healthcare stocks will pop because of things that the management is saying. Obviously, with the market in a sell-off mode, that didn't really happen this time around. So a lot of the headlines, if you will, have been buried for these companies. So, a few that did stand out, that when all the dust settles, maybe people will start to go back and look at and say, "Hmm, this is intriguing to me," of those, I think one of the most intriguing was AbbVie. AbbVie is, as you know, one of the biggest biopharma companies out there. It's a company that does $24B a year in annualized sales, but people have been nervous about this stock. For good reason.
Harjes: The reason you're alluding to, I could probably say with certainty, is their humongous reliance on Humira. Yeah?
Campbell: Yeah. Humongous.
Harjes: Yeah. Making us both nervous.
Campbell: They get 60%+ of their sales from one drug, and that's the immunology drug Humira, which is used to treat conditions, say, like rheumatoid arthritis, and psoriasis. This is a big drug. It operates in a huge market, $47B market. And this drug brings in $14B a year for AbbVie.
Harjes: Yeah, it's the best-selling drug on the planet.
Campbell: Yeah. And normally, that's a good thing.
Harjes: Yeah, people are probably like, "Why are they worried about this?"
Campbell: Yeah. What's scary about that is their composition of matter patent.
Harjes: That's the important one.
Campbell: It is. And it expires at the end of this year. And as a result, as we know from past history, when patents expire, generic drugs can come on the market. And when they do, they can gobble up a lot of market share, and a lot of sales.
Harjes: So, the only reason that there is a little bit of a question mark on this one is because Humira is a biologic drug. So, it's not particularly easy to get a generic version of that. You've heard us talk about biosimilars before on the show, that's what the generic version would be. It would be a biosimilar. So, it's not a direct replica. It's not that easy.
Campbell: Right. These things are made from living organisms. You're not going to be able to duplicate it exactly.
Harjes: Exactly. So, we have Amgen creating this biosimilar for Humira, and they're looking to get it approved. They filed in November for the FDA. But they're running up against these patent issues.
Campbell: What's interesting here, and I think this is what's intriguing or exciting about the J.P. Morgan Conference, is when AbbVie came out and address their investors, they said, essentially, "What biosimilar threat? We don't see that happening any time soon." Although the composition of matter patent is expiring this year, AbbVie's management seems to be very confident that methods of use patents that protect Humira into the early 2020s will keep these biosimilars at bay. And if that's the case, then AbbVie is saying that their sales for Humira won't fall in the next few years, they'll actually grow.
Harjes: They'll actually grow! That's insane. I have never seen a company say that before. "Oh, yeah, we might lose patent on this key drug, and sales are going to grow!" That's not how this works.
Campbell: It doesn't. And granted, there's a lot of moving pieces to this. I'm not a patent lawyer. I've dug into some of the backstory here. Amgen and others are trying to show that these patents won't hold up. Amgen, Biogen , and these companies have, obviously, lots of resources, lots of people on their team, if you will, that are working hard to ensure that they don't violate these patents. So, there's still the chance that biosimilars come to the market before 2020. But at the same time, AbbVie... you don't necessarily go out and tell investors a long-term forecast unless you feel pretty confident. In the case of AbbVie, they think Humira sales could go to $18B by 2020. And if so, their total sales could grow to $37B from their $24B pace today.
Harjes: Yeah. Those are pretty lofty numbers. But what stands out to me about that is that they're still pretty reliant on Humira even then. So, you've got the projection for Humira, but if you add up projections between Humira at $18B and their hepatitis C drug, the Viekira Pak at $3B projection for 2020, and then you've got Imbruvica that they're projecting $5B. So, you add this together, and you get $26B of their $37B of expected sales just from those three key drugs. So, to me, this looks like they're going to continue to have this reliance, this somewhat worrisome overdependence on Humira.
Campbell: Yeah. They're heavily reliant on drugs, there's no question about that. They have very few drugs generating a bulk of sales, and that's something that investors are going to have to be aware of. They're going to have to track this. They do think that they can diversify over time. They've got some interesting drugs in oncology that are coming through the pipeline and starting to make their way through the FDA. This is one to watch.
But again, not many companies go out there and issue long-term forecasts. They're giving you a specific number that they're targeting for 2020. And the only other company in the biopharma space that jumps to mind that's done that is Celgene . So, it's a very small grouping of companies that are willing to stick their neck out. And I think that'll resonate with investors. Once everything settles down here, I think investors are going to look at that and they're going to start to say, "Hmm, maybe this is an interesting stock for me to consider, especially given its tasty 5.7% dividend yield."
Harjes: For sure. Speaking of dividend yields, let's talk a little bit about Johnson & Johnson. I found their call really interesting.
Campbell: Yeah, that was a really interesting J.P. Morgan presentation, too. One of the reasons is because J&J took the typical script of, "Here's my PowerPoint presentation, I'm going to put it up and walk you through it," and kind of threw it in the garbage and said, "Let's do a fireside chat instead. Let's just talk about healthcare, let's talk about what we're doing to improve healthcare."
And during that conversation, their CEO basically... I don't want to say tipped his hand, because it's not like he said they would buy X/Y/Z company. But he did say, "Hey, we're still on the hunt, and we're looking for small companies that we can tuck in as part of our goal for research and development, bring in some companies that are maybe in phase 2, and see if we can get some new drugs on the market that way."
Harjes: And this is a company that ended last quarter with $37B in cash and short-term investments. And they kick off some $11B a year in free cash. So, they have the money to do it. And to me, it just looks like it's a matter of time before they pull the trigger.
Campbell: Yeah. I think one of the things CEO Gorsky said in the conversation was, they went back and looked at the 10-20 years in the past and said how have they gotten their drugs on the market. 30% of their free cashflow goes toward R&D and M&A. And it's split, roughly, I think 55% goes to internal R&D, 45% goes to external deals, collaborations, acquisitions, and the like. It doesn't seem like that's going to change anytime soon.
Harjes: Gorsky weighed in on that split, the 55-45, saying that's a good balance, that's where they want to be.
Campbell: That means, probably, that investors who are trying to figure out, what does that mean for J&J, what targets might they be going after, in the past, $2B or less. It doesn't seem like they like to do you much larger than that. Hey, they could surprise us. But in the past, things like Cougar Biotech, which they bought to get ZYTIGA, a multi-billion-dollar prostate cancer drug. Recent deals have all been in that $2B or less area.
Harjes: The Cougar acquisition was $1B, if I recall. One that stands out to me that was a lot bigger than that was Synthes. I'm not sure if I'm saying that right. But in 2012, their biggest buyout up to that date. This was a $21B acquisition. And it didn't seem like it really went very well. So I'm wondering if this is Gorsky and Johnson & Johnson acknowledging that, "Hey, we have done bigger deals, and they haven't been great. So we're going to stick with the small deal route."
Campbell: Big deals are hard. You look at a big deal and say, "Okay, well, maybe I can capture some synergy." Obviously, Pfizer's trying to do that, and other companies are trying to do that, merge larger companies together, remove a lot of the costs and drop more money to the bottom line. But they're also very complex.
They're hard, there's a lot of moving pieces. It's not as simple as being able to say, "Hey, look, we found this really interesting small molecule or biologic drug, we just need some help getting it to the finish line." Yeah, I think, to your point, they're looking at it and saying, "You know what? Small deals may be more profitable for us over time, if we leverage all of our knowledge and experience for that benefit."
Harjes: So, along the lines of collaboration and working to get drugs to market, the most exciting thing that came out of J.P. Morgan, in my book, was a collaboration announced that was called Moonshot 2020.
Campbell: Yeah! This was, I think, probably the biggest news. In a normal year, this would have gotten investors' attention, and made them pretty darn excited. Patrick Soon-Shiong is probably, I'd call him in the top five of biotech entrepreneurs. He's a billionaire, he's successfully built and sold two multi-billion-dollar companies. And his latest venture, if you will, is Moonshot 2020, which involves a bunch of different companies, academic research organizations, government organizations, doctors, insurers, payers, you name it. He's brought them all together, and their goal is pretty crazy.
They want to take as many drugs as they can, figure out how to combine them together, they want to map out the genomes of 100,000 people, figure out what kind of cancers they have and how best to attack them, and basically spark a major revolution in cancer treatment over the course of the next 5+ years.
Harjes: And the thinking behind this is that, when you look at cancer immunotherapies, a lot of these drugs work best in combination. But it can be pretty tricky to test combinations of your drug with some other random company's developmental-stage drug. So, if you can bring them together, the hope is, through this project, they can test them in combination a lot more effectively, and they can track it. And you have all this information about the specific genetic mutations that each of these patients have, and you're going to have them, ideally, in this big old database that you can plug into and see exactly what works for what set of genetic mutations and information that you have, and hopefully be able to get really individualized and effective care to market faster.
Campbell: Yeah. This is a moonshot. But typically speaking, combination therapy trials have involved some sort of a novel new drug that's maybe still in the clinic, and how does that pair up with something that's already approved and on the market. And you're right, this is really kind of unique and game-changing in the way that they're looking at it and saying, "Okay, let's take everybody's pipelines, and let's dive into them and see, in those pipelines, what drugs may work best with other drugs," with the goal of creating therapies that are less toxic to patience than they are today, because obviously, chemotherapy is a shock-and-awe way of attacking cancer; and also are more effective.
And a big focus of this is going to be on immuno-oncology, focusing on how to reengineer the natural killer cells in our immune system and the T cells in our immune system so that they're better able to find and destroy cancer. And if they're able to do that, then we could see a really big change in the treatment paradigm and how we battle back against cancer.
Harjes: Some of the companies that are involved in this are Amgen, Celgene, GlaxoSmithKline , NantWorks, and also interestingly, both Independence Blue Cross and Bank of America , which is a self-insured company.
Campbell: Yeah, what's really interesting about that is that, for the first time that I can remember, you actually have payers, insurers -- Bank of America is self-insured -- working together with these companies on developing these next-generation therapies. That's kind of revolutionary.
Harjes: Yeah, it's pretty cool. Independence Blue Cross has about 10M people that they cover in 34 states and D.C. They said they'll cover the patient costs related to the trails for its members, and they'll cover the genomic sequencing, too.
Campbell: And what's also interesting too, it jumped out at me just as you were going through that list of names of those who are participating in the Moonshot, is Celgene, because anybody who's followed Patrick over the years knows that his last company was Abraxis, which is the maker of Abraxane, which he sold to Celgene just a few years ago.
Harjes: Right. I think there's also some NantWorks partnerships between Celgene and NantWorks.
Campbell: Well, he is an entrepreneur, so he's created this Moonshot, and he's tucking in his own companies that are doing some pretty interesting things, including NantKwest . So yeah, absolutely.
Harjes: As always, people on this program may have interests in the stocks we're talking about, and The Motley Fool may have formal recommendations for or against them, so don't buy or sell anything based solely on what you hear. But Moonshot is definitely something to keep an eye out for. And also, J&J going forward, and will AbbVie hit their guidance. Definitely a lot of interesting stories that came out of the J.P. Morgan Healthcare Conference.
If you're looking to read some more about what happened, the Fool has published a ton of articles on the conference and the different presentations. The article, is called " J.P. Morgan Healthcare Conference 2016 Roundup ," something like that. Give it a search, or shoot us an email, and I can send you the link. A whole list of articles that our contributors have written, distilling the news, pulling out the highlights. If you're looking for even more reading, maybe you're getting all snowed in... Todd, is it supposed to snow by you?
Campbell: Yeah. They're saying we're going to get hit pretty hard up here in New Hampshire.
Harjes: I wasn't sure if it was going to be that far up. I think I heard a foot for Boston.
Campbell: Yeah, we should get something, but you know, you never know with New England weather. Anything can happen.
Harjes: Of course. Well, they're calling for two feet in D.C. Anyways, all of our East Coast listeners, if you're going to end up being snowed in and want even more reading, definitely shoot us an email at industryfocus@fool.com. We've compiled a list, we went through all of our articles from 2015 and we pulled out Fool.com's absolute best from each month. It's maybe six or seven articles from every month of 2015, the best of the best, it's an awesome list, really interesting. I'm happy to send that to you, just write us in. Todd, thanks so much, as always, for being here. And we'll talk to you all next week.
The article What You Missed at the 2016 J.P. Morgan Healthcare Conference originally appeared on Fool.com.
Kristine Harjes owns shares of Johnson & Johnson. Todd Campbell owns shares of Bank of America and Celgene. The Motley Fool owns shares of and recommends Celgene. The Motley Fool recommends Bank of America, Biogen, Johnson & Johnson, and Yahoo. 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. | Campbell: What's interesting here, and I think this is what's intriguing or exciting about the J.P. Morgan Conference, is when AbbVie came out and address their investors, they said, essentially, "What biosimilar threat? In this week's Industry Focus: Healthcare , Kristine Harjes and Todd Campbell go over three of the main highlights: AbbVie 's standout guidance announcement, Johnson & Johnson 's plans for M&A, and a huge, exciting new project that's seeking to radically transform cancer treatment as we know it. So, a few that did stand out, that when all the dust settles, maybe people will start to go back and look at and say, "Hmm, this is intriguing to me," of those, I think one of the most intriguing was AbbVie. | In this week's Industry Focus: Healthcare , Kristine Harjes and Todd Campbell go over three of the main highlights: AbbVie 's standout guidance announcement, Johnson & Johnson 's plans for M&A, and a huge, exciting new project that's seeking to radically transform cancer treatment as we know it. So, a few that did stand out, that when all the dust settles, maybe people will start to go back and look at and say, "Hmm, this is intriguing to me," of those, I think one of the most intriguing was AbbVie. AbbVie is, as you know, one of the biggest biopharma companies out there. | In this week's Industry Focus: Healthcare , Kristine Harjes and Todd Campbell go over three of the main highlights: AbbVie 's standout guidance announcement, Johnson & Johnson 's plans for M&A, and a huge, exciting new project that's seeking to radically transform cancer treatment as we know it. So, a few that did stand out, that when all the dust settles, maybe people will start to go back and look at and say, "Hmm, this is intriguing to me," of those, I think one of the most intriguing was AbbVie. AbbVie is, as you know, one of the biggest biopharma companies out there. | In this week's Industry Focus: Healthcare , Kristine Harjes and Todd Campbell go over three of the main highlights: AbbVie 's standout guidance announcement, Johnson & Johnson 's plans for M&A, and a huge, exciting new project that's seeking to radically transform cancer treatment as we know it. So, a few that did stand out, that when all the dust settles, maybe people will start to go back and look at and say, "Hmm, this is intriguing to me," of those, I think one of the most intriguing was AbbVie. AbbVie is, as you know, one of the biggest biopharma companies out there. |
26696.0 | 2016-01-24 00:00:00 UTC | 3 High-Yield Dividend Stocks Wealthy Investors Should Consider Buying | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-wealthy-investors-should-consider-buying-2016-01-24 | nan | nan | Image source: Pictures of Money via Flickr.com .
Perhaps you have built a large nest egg over time, or perhaps you've stumbled into a lot of money lately (I'm talking to you, Powerball winners). Either way, investors out there with pretty sizable portfolios still have to put that pile of money to work somehow, otherwise it will slowly dwindle away until there's little left. If you have a considerable amount of wealth already, letting that money go to work and collecting dividend checks can be a great way to preserve that capital while being up close and personal with Robin Leach.
So, we asked three of our contributors to highlight a company that would fit well in a portfolio that's looking to generate high yield through dividends for those high-net-worth investors.
If you're sitting on a portfolio large enough to handle a bit of risk but are still eager to reap the benefit of a healthy dividend, you might want to consider adding AbbVie to your holdings.
Despite it paying a market-trouncing dividend yield of 5.7%, investors have shied away from AbbVie over concerns that biosimilar generic alternatives to its top-selling Humira will derail sales and profit.
The risk of biosimilars to Humira is real and shouldn't be ignored, but investors may want to temper their bets that Humira's sales will plummet. Recently, AbbVie's management outlined its guidance for the next five years, and included in it was a prediction that, despite the generic threat, Humira's sales will grow to more than $18 billion in 2018 from about $14 billion in 2015.
If Humira can keep biosimilars somewhat at bay, then AbbVie's top line should benefit from a flurry of R&D and its recent acquisition of fast-growing cancer drug Imbruvica. The company thinks it could launch 20 new drugs by 2020, and that Imbruvica's annual sales could climb to $5 billion from their current $1.2 billion pace.
Overall, AbbVie is projecting revenue of $37 billion in 2020, and that's far higher than the roughly $24 billion it's bringing in now. If management can deliver on that forecast, you can bet there will be plenty of dividend increases coming over the next few years!
Wealthy investors typically own a relatively large portfolio, which means they can assume above-average risk in the hunt for undervalued opportunities, since a bigger portfolio in relationship to your financial needs means higher risk tolerance. With this in mind, Las Vegas Sands looks like a remarkably attractive choice for dividend investors looking for huge yields and compelling upside potential.
Las Vegas Sands is being hurt by weak gaming demand in Macau, which is a major headwind for all casino operators in the region. Problems in Macau should be transitory by nature, though: Once the economy in China turns for the better, Las Vegas Sands should profit from booming demand due to the rise of the Chinese middle class in the decades ahead.
Gaming is a remarkably profitable industry, and the business generates healthy profitability through both good and bad economic times. Las Vegas Sands reported an adjusted EBITDA -- earnings before interest, taxes, depreciation, and amortization -- margin of around 36.4% of revenue during the third quarter of 2015. This means financial strength is no big reason for concern at this stage.
Las Vegas Sands has a rock-solid track record of dividend payments: It has increased dividends from $1 annually in 2012 to $2.88 in 2016. This represents an annual growth rate in dividends of over 30% through this period. At current prices, Las Vegas Sands stock is paying a big dividend yield of nearly 7.5%.
Whether you're wealthy or not, investing in strong dividend-paying stocks will always help give your portfolio a certain level of stability. For those with larger portfolios, hefty dividend payments can be used to make new additions to the portfolio, similar to how the Berkshire Hathaway empire was built. Typically, high yield and stability don't go together often, because companies overpromise on their dividends and ultimately need to cut them. However, one company that can provide some sizable dividends without adding unnecessary risk to one's portfolio is Holly Energy Partners (NYSE: HEP).
Holly Energy Partners is a oil and gas midstream and transportation company that is a subsidiary partnership of independent refiner HollyFrontier . The company operates a system of petroleum product and crude pipelines, storage tanks, and distribution terminals that mostly support HollyFrontier's refining business.
What really separates Holly Energy Partners from many of its master limited partnership peers that have been in trouble lately is that the management team has a much more conservative approach to growth and payouts to shareholders. This has allowed the company to avoid many of the pitfalls that have led to dividend and distribution cuts for other players in the space.
However, just because the company has been prudent about its growth doesn't mean it has been left behind. For more than a decade, the company has been increasing its distribution to its investors every quarter, like clockwork, while generating more than enough cash flow to pay unitholders and invest in growth.
HEP Dividend data by YCharts .
With the market souring on shares of Holly Energy Partners lately, investors can pick up shares today with a yield of 7.6%. That may sound like a payout destined for a cut, but with Holly Energy Partner's history of raising distributions and management teams at both Holly Energy Partners and HollyFrontier focused on shareholder value, investors will likely be able to count on those hefty payments for a while, and that will fuel some impressive portfolio growth.
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The article 3 High-Yield Dividend Stocks Wealthy Investors Should Consider Buying originally appeared on Fool.com.
Andres Cardenal has no position in any stocks mentioned. Todd Campbell has no position in any stocks mentioned. Tyler Crowe 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 .
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. | If you're sitting on a portfolio large enough to handle a bit of risk but are still eager to reap the benefit of a healthy dividend, you might want to consider adding AbbVie to your holdings. Despite it paying a market-trouncing dividend yield of 5.7%, investors have shied away from AbbVie over concerns that biosimilar generic alternatives to its top-selling Humira will derail sales and profit. Recently, AbbVie's management outlined its guidance for the next five years, and included in it was a prediction that, despite the generic threat, Humira's sales will grow to more than $18 billion in 2018 from about $14 billion in 2015. | If you're sitting on a portfolio large enough to handle a bit of risk but are still eager to reap the benefit of a healthy dividend, you might want to consider adding AbbVie to your holdings. Despite it paying a market-trouncing dividend yield of 5.7%, investors have shied away from AbbVie over concerns that biosimilar generic alternatives to its top-selling Humira will derail sales and profit. Recently, AbbVie's management outlined its guidance for the next five years, and included in it was a prediction that, despite the generic threat, Humira's sales will grow to more than $18 billion in 2018 from about $14 billion in 2015. | If you're sitting on a portfolio large enough to handle a bit of risk but are still eager to reap the benefit of a healthy dividend, you might want to consider adding AbbVie to your holdings. Despite it paying a market-trouncing dividend yield of 5.7%, investors have shied away from AbbVie over concerns that biosimilar generic alternatives to its top-selling Humira will derail sales and profit. Recently, AbbVie's management outlined its guidance for the next five years, and included in it was a prediction that, despite the generic threat, Humira's sales will grow to more than $18 billion in 2018 from about $14 billion in 2015. | If you're sitting on a portfolio large enough to handle a bit of risk but are still eager to reap the benefit of a healthy dividend, you might want to consider adding AbbVie to your holdings. Despite it paying a market-trouncing dividend yield of 5.7%, investors have shied away from AbbVie over concerns that biosimilar generic alternatives to its top-selling Humira will derail sales and profit. Recently, AbbVie's management outlined its guidance for the next five years, and included in it was a prediction that, despite the generic threat, Humira's sales will grow to more than $18 billion in 2018 from about $14 billion in 2015. |
26697.0 | 2016-01-22 00:00:00 UTC | Halozyme Gets $5M as AbbVie Begins Dosing in Humira Trial | ABBV | https://www.nasdaq.com/articles/halozyme-gets-%245m-as-abbvie-begins-dosing-in-humira-trial-2016-01-22 | nan | nan | Halozyme Therapeutics, Inc . HALO announced that AbbVie, Inc. ABBV has dosed the first patient in a clinical trial, which the latter is conducting to evaluate the safety and pharmacokinetics of Humira using the former's proprietary Enhanze technology.
We note that Halozyme's proprietary drug delivery platform, Enhanze, is based on its patented recombinant human hyaluronidase enzyme (rHuPH20). This enzyme temporarily degrades hyaluronan, a chain of natural sugars in the body, which, in turn, enables dispersion and absorption of injected therapeutic drugs.
We remind investors that Halozyme and AbbVie had entered into a collaboration and license agreement in Jun 2015. Per the terms of the agreement, Halozyme granted AbbVie the worldwide license to develop and commercialize products for up to nine targets.
These targets will combine rHuPH20 with AbbVie's proprietary compounds. In exchange, Halozyme received an initial payment of $23 million and is entitled to additional payments upon milestone achievements, totaling up to $130 million per target. Additionally, Halozyme is entitled to tiered royalty payments based on net sales of products that use the Enhanze technology.
Consequently, AbbVie paid a $5 million milestone payment to Halozyme on the dosing of the first subject in the abovementioned trial.
We remind investors that Halozyme has collaborated with several large pharmaceuticals for its Enhanze technology. These collaborations fetch revenues for the company in the form of milestone payments, license fees, reimbursements and royalties.
Last month, Halozyme entered into a global collaboration and license agreement with Eli Lilly and Company LLY for the development and commercialization of therapies that will combine the latter's compounds with the former's Enhanze platform.
Halozyme carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Baxalta, Inc. BXLT , with 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. | HALO announced that AbbVie, Inc. ABBV has dosed the first patient in a clinical trial, which the latter is conducting to evaluate the safety and pharmacokinetics of Humira using the former's proprietary Enhanze technology. We remind investors that Halozyme and AbbVie had entered into a collaboration and license agreement in Jun 2015. Per the terms of the agreement, Halozyme granted AbbVie the worldwide license to develop and commercialize products for up to nine targets. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report HALOZYME THERA (HALO): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BAXALTA INC (BXLT): Free Stock Analysis Report To read this article on Zacks.com click here. HALO announced that AbbVie, Inc. ABBV has dosed the first patient in a clinical trial, which the latter is conducting to evaluate the safety and pharmacokinetics of Humira using the former's proprietary Enhanze technology. We remind investors that Halozyme and AbbVie had entered into a collaboration and license agreement in Jun 2015. | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report HALOZYME THERA (HALO): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report BAXALTA INC (BXLT): Free Stock Analysis Report To read this article on Zacks.com click here. HALO announced that AbbVie, Inc. ABBV has dosed the first patient in a clinical trial, which the latter is conducting to evaluate the safety and pharmacokinetics of Humira using the former's proprietary Enhanze technology. We remind investors that Halozyme and AbbVie had entered into a collaboration and license agreement in Jun 2015. | HALO announced that AbbVie, Inc. ABBV has dosed the first patient in a clinical trial, which the latter is conducting to evaluate the safety and pharmacokinetics of Humira using the former's proprietary Enhanze technology. We remind investors that Halozyme and AbbVie had entered into a collaboration and license agreement in Jun 2015. Per the terms of the agreement, Halozyme granted AbbVie the worldwide license to develop and commercialize products for up to nine targets. |
26698.0 | 2016-01-20 00:00:00 UTC | 3 Healthcare Stocks That Actually Gained Ground Last Week | ABBV | https://www.nasdaq.com/articles/3-healthcare-stocks-actually-gained-ground-last-week-2016-01-20 | nan | nan | Image source: Flickr user stockmonkeys.com.
Despite the industry-moving J.P. Morgan Healthcare Conference being held earlier this month, the Healthcare Select Sector SPDR ETF has dropped more than 7% this year, including a 1.7% tumble last week. The sell-off took most healthcare stocks lower, however, shares in these three healthcare stocks bucked the trend and traded up. Here's why.
No. 1: AbbVie : Up 4.1%
After forecasting that sales of its top seller, Humira, would keep growing, shares in AbbVie jumped over 4% last week.
Previously, investors have been nervous about AbbVie's future because the company generates more than 60% its sales from Humira (the drug hauls in about $14 billion per year), and Humira's composition of matter patent expires at the end of this year.
The company's outlook, however, puts some investor worries to rest because AbbVie thinks remaining manufacturing and dosing patents could prevent biosimilars from eating into Humira's market share for a few more years. As a result, management predicts Humira sales will increase to $18 billion in 2020.
If Humira hits that sales target, AbbVie believes its total sales could reach $37 billion that year (up from around $24 billion in 2015), and that prospect makes AbbVie shares far more intriguing than they were before.
No. 2: Intuitive Surgical -- up 3.8%
At the J.P. Morgan conference, the maker of the Da Vinci surgical system reported that its fourth-quarter sales grew 12% year over year to $677 million, and that those sales resulted in full-year revenue growing 16% to $325 million.
Intuitive Surgical also said the number of surgical procedures conducted using the Da Vinci system increased by 14%, and that procedure growth in 2016 is forecast at between 9% and 12%.
Based on last week's rally, it appears investors think a healthy forecast for procedure growth and benefits tied to a larger installed number of systems bode well for sales of consumables. If so, Intuitive Surgical shares could benefit from a natural profit tailwind that insulates it against market risk.
No. 3: Anthem -- up 2.16%
The second largest national health insurer offered insight into its financials at the J.P. Morgan conference that suggest it's doing a better job at managing the profit headwinds associated with Obamacare enrollment that are plaguing competitors, including UnitedHealth Group .
The company will officially report its fourth-quarter financials on January 27, and when it does, management expects to deliver adjusted EPS of $10.16 for 2015 (handsomely ahead of its early 2015 predictions for above $9.70) and importantly, Anthem thinks adjusted EPS will climb to an adjusted $10.80 in 2016.
That's a pretty rosy forecast considering that profit worries at UnitedHealth have its management questioning whether or not it will continue to participate in the Obamacare marketplaces. Regardless, Anthem has a history of under-promising, so its 2016 forecast could end up proving to be a bit light; especially if it can wrestle savings from its ongoing dispute with its pharmacy benefit manager Express Scripts . According to Anthem, Express Scripts may owe it up to $3 billion in drug discounts -- a contention Express Scripts disputes. Nevertheless, a healthy forecast for earnings upside and potential benefits tied to its pending acquisition of Cigna (which could clear antitrust regulators and close this year) has investors increasingly hopeful.
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The article 3 Healthcare Stocks That Actually Gained Ground Last Week originally appeared on Fool.com.
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 Express Scripts and Intuitive Surgical. The Motley Fool recommends Anthem and UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's outlook, however, puts some investor worries to rest because AbbVie thinks remaining manufacturing and dosing patents could prevent biosimilars from eating into Humira's market share for a few more years. 1: AbbVie : Up 4.1% After forecasting that sales of its top seller, Humira, would keep growing, shares in AbbVie jumped over 4% last week. Previously, investors have been nervous about AbbVie's future because the company generates more than 60% its sales from Humira (the drug hauls in about $14 billion per year), and Humira's composition of matter patent expires at the end of this year. | 1: AbbVie : Up 4.1% After forecasting that sales of its top seller, Humira, would keep growing, shares in AbbVie jumped over 4% last week. Previously, investors have been nervous about AbbVie's future because the company generates more than 60% its sales from Humira (the drug hauls in about $14 billion per year), and Humira's composition of matter patent expires at the end of this year. The company's outlook, however, puts some investor worries to rest because AbbVie thinks remaining manufacturing and dosing patents could prevent biosimilars from eating into Humira's market share for a few more years. | Previously, investors have been nervous about AbbVie's future because the company generates more than 60% its sales from Humira (the drug hauls in about $14 billion per year), and Humira's composition of matter patent expires at the end of this year. If Humira hits that sales target, AbbVie believes its total sales could reach $37 billion that year (up from around $24 billion in 2015), and that prospect makes AbbVie shares far more intriguing than they were before. 1: AbbVie : Up 4.1% After forecasting that sales of its top seller, Humira, would keep growing, shares in AbbVie jumped over 4% last week. | 1: AbbVie : Up 4.1% After forecasting that sales of its top seller, Humira, would keep growing, shares in AbbVie jumped over 4% last week. Previously, investors have been nervous about AbbVie's future because the company generates more than 60% its sales from Humira (the drug hauls in about $14 billion per year), and Humira's composition of matter patent expires at the end of this year. The company's outlook, however, puts some investor worries to rest because AbbVie thinks remaining manufacturing and dosing patents could prevent biosimilars from eating into Humira's market share for a few more years. |
26699.0 | 2016-01-20 00:00:00 UTC | Galapagos (GLPG) Gives Update on Cystic Fibrosis Program | ABBV | https://www.nasdaq.com/articles/galapagos-glpg-gives-update-on-cystic-fibrosis-program-2016-01-20 | nan | nan | Galapagos NVGLPG , with partner AbbVie Inc. ABBV , announced its aim to develop a triple cystic fibrosis transmembrane conductance regulator (CFTR) combination therapy for the treatment of patients with cystic fibrosis (CF).
In order to identify the triple combination, the companies will develop multiple candidates and backups for each of the three components (1st generation correctors, next generation correctors, and potentiators).
Currently, Galapagos is evaluating GLPG2222, a 1st generation corrector, in a phase I study. Initiation of the study triggered a milestone payment of $10 million from AbbVie. Top-line data is expected in the second quarter of 2016. Galapagos expects to initiate a phase I study on GLPG2851, another 1st generation corrector, by 2016 end.
Meanwhile, the company expects to initiate a phase I study on GLPG2665, the first next-generation corrector, by mid 2016. An additional next-generation corrector, GLPG2737, is also expected to enter a phase I study in the fourth quarter of 2016.
Moreover, the company received approval in several countries to initiate an exploratory phase II program on GLPG1837, as a potentiator. A phase I study on an additional potentiator, GLPG2451, is expected to be initiated in the second quarter of 2016.
We remind investors that in Sep 2013, Galapagos and AbbVie had entered into a global collaboration agreement for the development and commercialization of potentiator and corrector molecules for the treatment of patients with CF. As per terms of the agreement, after the successful completion of phase II development conducted by Galapagos, AbbVie will be responsible for conducting phase III development, with Galapagos responsible for the financial contribution.
Till date, Galapagos has received upfront payment of $45 million and milestone payments of $20 million from AbbVie. In addition, Galapagos is eligible to receive up to $340 million of total additional payment for developmental and regulatory milestones, sales milestones, and additional tiered royalty payments, ranging from mid-teens to 20%.
According to information provided by the company, approximately 80,000 and 30,000 patients are affected by CF in the world and the U.S., respectively.
Galapagos currently carries a Zacks Rank #2 (Buy), while AbbVie has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Horizon Pharma plc HZNP and Ligand Pharmaceuticals Incorporated LGND , 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 remind investors that in Sep 2013, Galapagos and AbbVie had entered into a global collaboration agreement for the development and commercialization of potentiator and corrector molecules for the treatment of patients with CF. Galapagos NVGLPG , with partner AbbVie Inc. ABBV , announced its aim to develop a triple cystic fibrosis transmembrane conductance regulator (CFTR) combination therapy for the treatment of patients with cystic fibrosis (CF). Initiation of the study triggered a milestone payment of $10 million from AbbVie. | Galapagos NVGLPG , with partner AbbVie Inc. ABBV , announced its aim to develop a triple cystic fibrosis transmembrane conductance regulator (CFTR) combination therapy for the treatment of patients with cystic fibrosis (CF). As per terms of the agreement, after the successful completion of phase II development conducted by Galapagos, AbbVie will be responsible for conducting phase III development, with Galapagos responsible for the financial contribution. Click to get this free report LIGAND PHARMA-B (LGND): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. | As per terms of the agreement, after the successful completion of phase II development conducted by Galapagos, AbbVie will be responsible for conducting phase III development, with Galapagos responsible for the financial contribution. Click to get this free report LIGAND PHARMA-B (LGND): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Galapagos NVGLPG , with partner AbbVie Inc. ABBV , announced its aim to develop a triple cystic fibrosis transmembrane conductance regulator (CFTR) combination therapy for the treatment of patients with cystic fibrosis (CF). | We remind investors that in Sep 2013, Galapagos and AbbVie had entered into a global collaboration agreement for the development and commercialization of potentiator and corrector molecules for the treatment of patients with CF. Click to get this free report LIGAND PHARMA-B (LGND): Free Stock Analysis Report HORIZON PHARMA (HZNP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GALAPAGOS -ADR (GLPG): Free Stock Analysis Report To read this article on Zacks.com click here. Galapagos NVGLPG , with partner AbbVie Inc. ABBV , announced its aim to develop a triple cystic fibrosis transmembrane conductance regulator (CFTR) combination therapy for the treatment of patients with cystic fibrosis (CF). |
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