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27000.0 | 2015-04-01 00:00:00 UTC | Wednesday's ETF with Unusual Volume: PPH | ABBV | https://www.nasdaq.com/articles/wednesdays-etf-unusual-volume-pph-2015-04-01 | nan | nan | The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 506,000 shares traded versus three month average volume of about 85,000. Shares of PPH were off about 0.8% on the day.
Components of that ETF with the highest volume on Wednesday were Mylan ( MYL ), trading off about 1.7% with over 20.0 million shares changing hands so far this session, and Pfizer ( PFE ), down about 0.9% on volume of over 13.4 million shares. Novo Nordisk ( NVO ) is the component faring the best Wednesday, higher by about 1.6% on the day, while AbbVie ( ABBV ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.2%.
VIDEO: Wednesday's ETF with Unusual Volume: PPH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Novo Nordisk ( NVO ) is the component faring the best Wednesday, higher by about 1.6% on the day, while AbbVie ( ABBV ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.2%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 506,000 shares traded versus three month average volume of about 85,000. Components of that ETF with the highest volume on Wednesday were Mylan ( MYL ), trading off about 1.7% with over 20.0 million shares changing hands so far this session, and Pfizer ( PFE ), down about 0.9% on volume of over 13.4 million shares. | Novo Nordisk ( NVO ) is the component faring the best Wednesday, higher by about 1.6% on the day, while AbbVie ( ABBV ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.2%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 506,000 shares traded versus three month average volume of about 85,000. VIDEO: Wednesday's ETF with Unusual Volume: PPH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Novo Nordisk ( NVO ) is the component faring the best Wednesday, higher by about 1.6% on the day, while AbbVie ( ABBV ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.2%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 506,000 shares traded versus three month average volume of about 85,000. Components of that ETF with the highest volume on Wednesday were Mylan ( MYL ), trading off about 1.7% with over 20.0 million shares changing hands so far this session, and Pfizer ( PFE ), down about 0.9% on volume of over 13.4 million shares. | Novo Nordisk ( NVO ) is the component faring the best Wednesday, higher by about 1.6% on the day, while AbbVie ( ABBV ) is lagging other components of the Pharmaceutical ETF, trading lower by about 3.2%. The Pharmaceutical ETF ( PPH ) is seeing unusually high volume in afternoon trading Wednesday, with over 506,000 shares traded versus three month average volume of about 85,000. Shares of PPH were off about 0.8% on the day. |
27001.0 | 2015-04-01 00:00:00 UTC | Why Coherus BioSciences Inc. Shares Burst Today | ABBV | https://www.nasdaq.com/articles/why-coherus-biosciences-inc-shares-burst-today-2015-04-01 | nan | nan | Although we don't believe intiming the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares in Coherus BioSciences tumbled by as much as 10% today after the company priced a dilutive equity offering at $29 per share.
So What : According to the Tufts Center for the Study of Drug Development, it costs $1.4 billion to develop a new drug, so it's not too surprising to see a clinical stage drug developer like Coherus tap equity markets for funding.
Overall, Coherus is offering 4,137,931 shares of common stock, which should generate gross proceeds of $120 million.
The company has also allotted an additional 620,689 shares to an overallotment program, which could increase the amount of money that Coherus raises in the offering.
If the offering goes off as planned, it will significantly increase the company's cash stockpile. Thanks to its IPO last November, Coherus had $150.4 million on the books exiting December.
Now What: The money will give Coherus additional financial flexibility that it can use to advance its biosimilars research program.
Currently, the company is evaluating a host of biosimilar candidates, including biosimilar alternatives to Amgen 's top-selling Neulasta and AbbVie 's top-selling Humira. The company's ongoing phase 3 trial of Neulasta could result in an FDA filing for approval either later this year or early next year. Meanwhile, its research into a biosimilar to Humira could lead to an FDA filing in the second half of 2016. Coherus is also evaluating other biosimilar candidates in pre-clinical studies, so this influx of cash could help support moving one or two of them into the clinic too.
As a result, despite this offering diluting existing investors, Coherus is a stock to watch. The FDA approved the first biosimilar earlier this year, and expectations are that many more approvals will follow. That has analysts thinking that the biosimilar market could be worth $20 billion or more in the coming years.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article Why Coherus BioSciences Inc. Shares Burst 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 or may not 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 - 2015 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. | Currently, the company is evaluating a host of biosimilar candidates, including biosimilar alternatives to Amgen 's top-selling Neulasta and AbbVie 's top-selling Humira. The company has also allotted an additional 620,689 shares to an overallotment program, which could increase the amount of money that Coherus raises in the offering. Coherus is also evaluating other biosimilar candidates in pre-clinical studies, so this influx of cash could help support moving one or two of them into the clinic too. | Currently, the company is evaluating a host of biosimilar candidates, including biosimilar alternatives to Amgen 's top-selling Neulasta and AbbVie 's top-selling Humira. So What : According to the Tufts Center for the Study of Drug Development, it costs $1.4 billion to develop a new drug, so it's not too surprising to see a clinical stage drug developer like Coherus tap equity markets for funding. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Currently, the company is evaluating a host of biosimilar candidates, including biosimilar alternatives to Amgen 's top-selling Neulasta and AbbVie 's top-selling Humira. What: Shares in Coherus BioSciences tumbled by as much as 10% today after the company priced a dilutive equity offering at $29 per share. So What : According to the Tufts Center for the Study of Drug Development, it costs $1.4 billion to develop a new drug, so it's not too surprising to see a clinical stage drug developer like Coherus tap equity markets for funding. | Currently, the company is evaluating a host of biosimilar candidates, including biosimilar alternatives to Amgen 's top-selling Neulasta and AbbVie 's top-selling Humira. Overall, Coherus is offering 4,137,931 shares of common stock, which should generate gross proceeds of $120 million. The Motley Fool has no position in any of the stocks mentioned. |
27002.0 | 2015-03-31 00:00:00 UTC | The Zacks Analyst Blog Highlights: Google, Johnson & Johnson, AbbVie, Yahoo and Microsoft - Press Releases | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-google-johnson-johnson-abbvie-yahoo-and-microsoft-press | nan | nan | For Immediate Release
Chicago, IL - March 31, 2015 - 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 Google Inc. ( GOOGL - Free Report ), Johnson & Johnson ( JNJ - Free Report ), AbbVie ( ABBV - Free Report ), Yahoo ( YHOO - Free Report ) and Microsoft ( MSFT - Free Report ).
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Here are highlights from Monday's Analyst Blog:
Google, Johnson & Johnson Team Up for Surgical Robots
Search giant Google Inc. ( GOOGL - Free Report ) continues to expand its empire in every possible sector. It recently entered into a strategic alliance with leading health care products manufacturer, Johnson & Johnson ( JNJ - Free Report ). Per the alliance, Google will build a robotic-assisted surgical program in a bid to extend its footprint in the health care sector.
The collaboration is between the life-sciences division of Google X - the research unit behind projects such as self-driving cars, delivery drones, Internet balloons - and Ethicon, a medical device unit in J&J's family of companies. The deal will be completed in the second quarter of the year after receiving approval from U.S. antitrust authorities. However, the financial terms of the deal have been kept under wraps.
Under the partnership, the companies will use their capabilities, intellectual property and expertise to search for ways to include highly developed imaging and sensors in surgical tools to complement surgeons' abilities and assist surgeons in the operating theater by giving them real-time advice. Google will provide its resources and intellectual property to the pharmaceutical firm for the purpose.
Robotic technology has been gaining popularity in operating theaters as more and more patients now choose "minimally-invasive" procedures, which require doctors to make smaller incisions. These help in reducing pain and scarring and also enable faster healing than in case of open operations. Nearly 3 million of such lighter-touch operations are carried out in the U.S. every year.
This is not the first time that Google is trying to push into health care. Last year, it collaborated with biotechnology drugmaker AbbVie ( ABBV - Free Report ), for a joint venture to formulate treatments for cancer and Alzheimer's.
It also launched Google Fit health data platform, an open multi-OS API for fitness apps and devices. The program will allow developers to track fitness data, sync it across devices and store it in a central place. The Google Fit service is similar to the recently introduced services from Apple and Samsung.
The recent move will help Google to expand its reach in the ever-expanding field of medicine and create high revenue generating prospects going forward.
Google has been struggling to maintain its lead in the search and advertising market with competitors like Yahoo ( YHOO - Free Report ) and Microsoft ( MSFT - Free Report ) doing their best to pick up market share.
Therefore, the company has been firing on all cylinders, ranging from the high-speed Internet access business to advanced research on self-driving cars and robotics, to grow. If successful, these efforts could help it diversify its revenue source and expand its business beyond search.
Google has a Zacks Rank #3 (Hold).
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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 the Google Inc. ( GOOGL - Free Report ), Johnson & Johnson ( JNJ - Free Report ), AbbVie ( ABBV - Free Report ), Yahoo ( YHOO - Free Report ) and Microsoft ( MSFT - Free Report ). Last year, it collaborated with biotechnology drugmaker AbbVie ( ABBV - Free Report ), for a joint venture to formulate treatments for cancer and Alzheimer's. Get the full Report on GOOGL - FREE Get the full Report on JNJ - FREE Get the full Report on ABBV - FREE Get the full Report on YHOO - FREE Get the full Report on MSFT - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. | Stocks recently featured in the blog include the Google Inc. ( GOOGL - Free Report ), Johnson & Johnson ( JNJ - Free Report ), AbbVie ( ABBV - Free Report ), Yahoo ( YHOO - Free Report ) and Microsoft ( MSFT - Free Report ). Get the full Report on GOOGL - FREE Get the full Report on JNJ - FREE Get the full Report on ABBV - FREE Get the full Report on YHOO - FREE Get the full Report on MSFT - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report YAHOO! | Stocks recently featured in the blog include the Google Inc. ( GOOGL - Free Report ), Johnson & Johnson ( JNJ - Free Report ), AbbVie ( ABBV - Free Report ), Yahoo ( YHOO - Free Report ) and Microsoft ( MSFT - Free Report ). Get the full Report on GOOGL - FREE Get the full Report on JNJ - FREE Get the full Report on ABBV - FREE Get the full Report on YHOO - FREE Get the full Report on MSFT - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report YAHOO! | Stocks recently featured in the blog include the Google Inc. ( GOOGL - Free Report ), Johnson & Johnson ( JNJ - Free Report ), AbbVie ( ABBV - Free Report ), Yahoo ( YHOO - Free Report ) and Microsoft ( MSFT - Free Report ). Last year, it collaborated with biotechnology drugmaker AbbVie ( ABBV - Free Report ), for a joint venture to formulate treatments for cancer and Alzheimer's. Get the full Report on GOOGL - FREE Get the full Report on JNJ - FREE Get the full Report on ABBV - FREE Get the full Report on YHOO - FREE Get the full Report on MSFT - FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. |
27003.0 | 2015-03-31 00:00:00 UTC | The Single Worst Practice of the Drug Industry | ABBV | https://www.nasdaq.com/articles/single-worst-practice-drug-industry-2015-03-31 | nan | nan | For millions of ordinary folks like you and me, generic drugs make needed prescription medicines affordable. Generics also reduce the dent in our collective pocketbooks come tax time by cutting billions of dollars annually from the costs of taxpayer-funded healthcare programs such as Medicare and Medicaid.
But if you're a Big Pharma with blockbuster-branded drugs, generic drugs are the enemy. Last year, about 84% of the 4 billion prescriptions written were for generic medicines. The huge discount for a generic med -- up to 90% less than the cost of a branded counterpart -- makes it very rare for patients to switch back to the branded drug once a generic becomes available.
With generic equivalents threatening to obliterate the sales of prized drugs, it comes as no surprise that the Big Pharma giants have developed some pretty questionable legal maneuvers to head off this competition.
While some of these tactics might be defensible, one really raises the hackles on consumers' and taxpayers' necks. Called "pay for delay," it allows many pharmaceutical and biotech companies to make deals that enable them to continue to enjoy monopoly pricing much longer than they otherwise would be able to. The Federal Trade Commission claims this tactic adds up to $3.5 billion in higher drug costs every year for taxpayers and consumers.
Let's make a deal
On a company-to-company basis, the specifics of these deals -- which are also called reverse payment, or exclusion payment -- vary widely. But they all boil down to this: As part of a patent litigation settlement, the branded-drug manufacturer pays a competitor an agreed-upon sum to delay the release of the latter's generic alternative.
Hence, "pay for delay." Or, as we might call it today, "go slow or go home."
It's obvious what Big Pharma gets out of these deals. By keeping the generic drug off the market, companies can continue to control the market for their branded drug. But why do generic companies go along with this? It turns out the loss of revenue loss from keeping a generic off the market is vastly less than the loss of sales at the branded-drug company. So Big Pharma can pay a sum big enough for each company to profit.
Who are the losers in these deals? Patients. In the case of uninsured individuals, the consequences can be devastating. To see the impact, let's look at one pay-for-delay case the FTC is pursuing.
The case involves the drug Provigil, which is often prescribed for multiple sclerosis-related fatigue. A generic version should have gone on market in 2005, but the FTC said brand-name drug manufacturer Cephalon paid more than $200 million to four different generic-drug manufacturers, which therefore agreed to kept their generic versions off the market until 2012. In the meantime, MS patients without insurance had to pay up to $1,200 each month for the drug, or manage without it.
What about patients with insurance? They aren't off the hook, either. Karen Winkler was a 46-year old mother in need of treatment for multiple sclerosis-related fatigue. In an interview with PBS NewsHour , she explained that at the time that Provigil's generics were blocked, she had three young children, and the cost burden was a severe hardship for her family. Her doctor had told her to expect a generic version, but instead Cephalon's pay-for-delay deal kept her paying "$700 for a three-month supply of Provigil, out-of-pocket, even with insurance." Despite overwhelming fatigue, Winkler said, "for years, I'd skip pills or split doses just to get by." Eventually, she stopped taking the medicine "because I could no longer afford its high price."
Overall costs and the latest deals
Prescription drugs vary widely in price. Looking at an overall average, the Federal Trade Commission estimates pay-for-delay deals add $4,590 to a single drug over 17 months. When you project that over the typical five-year length of a pay-for-delay scheme, we're talking about $16,200 in extra spending per patient, per drug, assuming treatment continues over that length of time.
Provigil's generics are on the market now, dropping the cost for the drug to about $16 for a three-month supply. But many other pay-for-delay deals are still in effect. In September, the The Wall Street Journalreported that the FTC had sued several drug makers -- including AbbVie Inc . , Abbott Laboratories , and Teva Pharmaceutical -- for striking deals that delayed the availability of the blockbuster AndroGel testosterone replacement therapy.
And that's just the tip of the iceberg.
A 2012 FTC report cited 40 potential pay-to-delay deals, up from 28 the year before. Looking back to 2005, annual reports by the FTC show as many as 142 generics have been delayed by pay-for-delay tactics, with drug companies raking in an estimated $98 billion in additional branded-drug sales when generic versions were delayed.
Pay-for-delay deals are currently blocking generic versions of popular drugs Nexium (heartburn and GERD), Nuvigil (narcolepsy), Niaspan (high cholesterol), and Aggrenox (stroke prevention), according to a report from consumer group U.S. PIRG.
A good idea gone wrong
The genesis of pay-for-delay goes back to the Hatch-Waxman Act of 1984. The act was supposed to spur competition by encouraging generic-drug makers to challenge brand-name patents. The first successful generic challenger was therefore granted incentives, including a period of marketing exclusivity for its generic drug.
At first, the scheme worked beautifully. But soon, a problem arose.
Rather than compete with the generics, branded-drug companies started creating legal mechanisms in which the brand manufacturer would sue the generic for infringement, then pay a sum of money for an noncompetition agreement. In 2005, when a few appellate courts upheld these agreements, pay-for-delay deals began snowballing.
Thus far, the FTC has had limited success in overturning these deals, but the legal landscape could be changing. Recently, a Supreme Court decision in a reverse payment case discarded lower-court rulings that deemed these agreements automatically legal, and instead declared that reverse payments could violate antitrust laws.
Summing up
The market for drugs is not like the market for a new appliance or an iPhone. When patients don't have reasonably priced access to needed drugs, drug companies risk angering patients and significantly damaging their reputations. Critical questions can then be raised about corporate ethics. Karen Winkler spoke for many patients who have suffered from pay-for-delay deals when she said "It's definitely not moral. It's not humane. It's not fair."
While profits are an important piece of the puzzle for drug companies, at the risk of being branded a hopeless idealist, I don't believe achieving sustainable profit targets and meeting the needs of patients are inherently incompatible. Many great American CEOs in the past didn't believe so, either. For instance, in 1950, George W. Merck, the founder of Merck , said, "We try never to forget that medicine is for the people. It is not for profits. The profits follow, and if we have remembered that, they will never fail to appear."
George Merck was in part responsible for the development of synthetic vitamins, sulfas, antibiotics, and hormones. Under his guidance, Merck generated profits to satisfy shareholders while also greatly improving the lives of patients. Profits before patients is a terrific performance metric, or best practice, for this industry. Here's hoping more multinational pharmaceutical companies aspire to pursue both profit and making a meaningful difference in the quality of life of the patients their drugs treat.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article The Single Worst Practice of the Drug Industry originally appeared on Fool.com.
Cheryl Swanson has no position in any stocks mentioned. The Motley Fool recommends Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 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 September, the The Wall Street Journalreported that the FTC had sued several drug makers -- including AbbVie Inc . Generics also reduce the dent in our collective pocketbooks come tax time by cutting billions of dollars annually from the costs of taxpayer-funded healthcare programs such as Medicare and Medicaid. With generic equivalents threatening to obliterate the sales of prized drugs, it comes as no surprise that the Big Pharma giants have developed some pretty questionable legal maneuvers to head off this competition. | In September, the The Wall Street Journalreported that the FTC had sued several drug makers -- including AbbVie Inc . For millions of ordinary folks like you and me, generic drugs make needed prescription medicines affordable. Looking at an overall average, the Federal Trade Commission estimates pay-for-delay deals add $4,590 to a single drug over 17 months. | In September, the The Wall Street Journalreported that the FTC had sued several drug makers -- including AbbVie Inc . By keeping the generic drug off the market, companies can continue to control the market for their branded drug. A generic version should have gone on market in 2005, but the FTC said brand-name drug manufacturer Cephalon paid more than $200 million to four different generic-drug manufacturers, which therefore agreed to kept their generic versions off the market until 2012. | In September, the The Wall Street Journalreported that the FTC had sued several drug makers -- including AbbVie Inc . Last year, about 84% of the 4 billion prescriptions written were for generic medicines. A generic version should have gone on market in 2005, but the FTC said brand-name drug manufacturer Cephalon paid more than $200 million to four different generic-drug manufacturers, which therefore agreed to kept their generic versions off the market until 2012. |
27004.0 | 2015-03-30 00:00:00 UTC | Biogen/AbbVie's MS Drug Zinbryta Under Review in the EU - Analyst Blog | ABBV | https://www.nasdaq.com/articles/biogen-abbvies-ms-drug-zinbryta-under-review-in-the-eu-analyst-blog-2015-03-30 | nan | nan | BiogenBIIB and partner AbbVie Inc. ABBV announced that the European Medicines Agency has accepted for review their marketing application for multiple sclerosis (MS) candidate, Zinbryta (daclizumab). The companies are looking to get Zinbryta approved for the treatment of relapsing forms of MS in the EU.
According to the Multiple Sclerosis Association of America, nearly 400,000 individuals in the U.S. and 2.5 million people across the world suffer from MS.
We note that Biogen holds a strong position in the MS market with drugs like Avonex, Tysabri and Tecfidera in its portfolio. Late last year, the company launched another MS drug, Plegridy, for the treatment of people with relapsing forms of MS. Biogen's MS product sales were approximately $8 billion in 2014.
The MS market represents significant commercial potential and companies like Alkermes plc ALKS are looking to bring new treatments to market.
Meanwhile, Biogen has a few pipeline events lined up this year. The company expects to report data on candidates like neublastin (neuropathic pain; phase II). The company also expects to report data on label expansion studies of Tysabri, which is being developed for both secondary progressive MS (phase III) and acute ischemic stroke (phase II). In the meantime, Biogen intends to file a marketing application for its hemophilia B drug, Alprolix, in the EU this year.
We are encouraged by Biogen's effort to strengthen its position in the MS market and expect investor focus to remain on further company updates.
Biogen is a Zacks Rank #3 (Hold) stock. A better-ranked stock in the health care sector is Cambrex Corp. CBM , 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. | BiogenBIIB and partner AbbVie Inc. ABBV announced that the European Medicines Agency has accepted for review their marketing application for multiple sclerosis (MS) candidate, Zinbryta (daclizumab). Click to get this free report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALKERMES INC (ALKS): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report To read this article on Zacks.com click here. According to the Multiple Sclerosis Association of America, nearly 400,000 individuals in the U.S. and 2.5 million people across the world suffer from MS. We note that Biogen holds a strong position in the MS market with drugs like Avonex, Tysabri and Tecfidera in its portfolio. | BiogenBIIB and partner AbbVie Inc. ABBV announced that the European Medicines Agency has accepted for review their marketing application for multiple sclerosis (MS) candidate, Zinbryta (daclizumab). Click to get this free report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALKERMES INC (ALKS): Free Stock Analysis Report CAMBREX CORP (CBM): 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 BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALKERMES INC (ALKS): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report To read this article on Zacks.com click here. BiogenBIIB and partner AbbVie Inc. ABBV announced that the European Medicines Agency has accepted for review their marketing application for multiple sclerosis (MS) candidate, Zinbryta (daclizumab). Late last year, the company launched another MS drug, Plegridy, for the treatment of people with relapsing forms of MS. Biogen's MS product sales were approximately $8 billion in 2014. | BiogenBIIB and partner AbbVie Inc. ABBV announced that the European Medicines Agency has accepted for review their marketing application for multiple sclerosis (MS) candidate, Zinbryta (daclizumab). Click to get this free report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALKERMES INC (ALKS): Free Stock Analysis Report CAMBREX CORP (CBM): Free Stock Analysis Report To read this article on Zacks.com click here. The companies are looking to get Zinbryta approved for the treatment of relapsing forms of MS in the EU. |
27005.0 | 2015-03-30 00:00:00 UTC | Healthcare Merger Monday: These 3 Stocks Could Be Healthcare's Next Buyout Targets | ABBV | https://www.nasdaq.com/articles/healthcare-merger-monday-these-3-stocks-could-be-healthcares-next-buyout-targets-2015-03 | nan | nan | The investment bankers were busy this weekend with four healthcare industry acquisitions announced today. Teva Pharmaceuticals is buying Auspex Pharmaceuticals for $3.5 billion, Horizon Pharma picked up Hyperion Therapeutics for $1.1 billion, Cellular Dynamics was purchased by Fujifilm -- just a $307 million deal, but more than a 100% premium on Friday's close -- and in the pharmacy benefit management space, UnitedHealth Group bought Catamaran for $12.8 billion.
Which company might be acquired next? Read on to see why our team of healthcare experts think Esperion Therapeutics (NASDAQ: ESPR), BioMarin Pharmaceuticals (NASDAQ: BMRN), and Acadia Pharmaceuticals (NASDAQ: ACAD) could be next on the auction block.
Todd Campbell : First, let me state that investors shouldn't buy shares in a company just because they think a suitor could emerge. Instead, they should focus on buying companies like Esperion Therapeutics because of their potential as a stand-alone company and then consider an acquisition as an unlikely, yet welcome, outcome.
Esperion's ETC-1002, a cholesterol-busting medicine, just put up impressive mid-stage trial results showing that combining it with statins can significantly reduce cholesterol levels in patients. If those results are duplicated in to-be-held phase 3 trials, then Esperion could have a multibillion-dollar blockbuster therapy on its hands.
Express Scripts estimates that 71 million Americans have high cholesterol, and since tens of millions of patients already take statins, ETC-1002 could become a big seller someday. Just how big is uncertain, but Esperion's co-founder is Roger Newton, the co-inventor of the wildly successful Lipitor.
Indeed, Lipitor was the world's biggest-selling drug of all time, notching $125 billion in sales prior to losing patent protection. ETC-1002 isn't likely to be that successful, but it could certainly have blockbuster potential. Analysts think PCSK9 cholesterol fighters making their way through the FDA approval process could rake in $2 billion a year, or more. With a billion-dollar opportunity like that ahead of it, I wouldn't be shocked if a large drugmaker makes a bid for Esperion -- especially if the upcoming phase 3 trials pan out.
Brian Orelli: I'll second Todd's assertion that you shouldn't buy a company simply because it might get acquired. That's a pretty poor investment thesis, especially since there's usually a lot going on behind closed doors that investors aren't privy to: What premium on the current price is management willing to accept? Does confidential information the company shares with potential acquires make it more or less attractive?
Take BioMarin Pharmaceuticals, for instance. The biotech has been rumored to be a takeover target for years since BioMarin specializes in orphan drugs, a specialty pharma has an appetite for. While the company remains independent for reasons no one outside of BioMarin's management really knows, it's still a solid company, and investors have been rewarded nevertheless.
With the company approaching profitability , BioMarin still looks like an attractive bolt-on acquisition for a pharma looking to add a few already-approved drugs and a decent pipeline.
There's one caveat here, though. BioMarin recently acquired Prosensa for its Duchenne Muscular Dystrophy drug, drisapersen, which isn't approved yet and has a bit of a checkered past, having failed a phase 3 trial. Potential acquirers are likely to wait until the biotech is able to gain FDA or EU approval to sell drisapersen before acquiring BioMarin, because the likelihood of approval is hard to quantify.
Alternatively, an acquirer might offer BioMarin's shareholders a "contingent value rights" that pays them more after the acquisition if drisapersen is approved, which is actually the mechanism that allowed BioMarin to acquire Prosensa.
George Budwell : Acadia Pharmaceuticals has repeatedly been the subject of the buyout rumor mill ever since it reported stellar late-stage results for its experimental Parkinson's disease psychosis drug Nuplazid (pimavanserin) over two years ago. And the underlying reasons for these lingering rumors are easy to understand.
First off, this devastating disease has no real treatment options beyond supportive care, meaning Nuplazid wouldn't face any meaningful competition upon its commercial launch. Experts thus have the drug's peak sales pegged at nearly $3 billion a year.
And with a market cap of about $3.3 billion at present, Acadia appears to be fairly valued in light of Nuplazid's value proposition, giving any buyer a good bit of upside potential going forward.
So, which big pharma might be lurking in the shadows? My money is on AbbVie . AbbVie already has an important new Parkinson's disease drug in Duopa -- so a buyout of Acadia would significantly strengthen the drugmaker's position in this vastly under-served market.
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The article Healthcare Merger Monday: These 3 Stocks Could Be Healthcare's Next Buyout Targets originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. George Budwell owns shares of AbbVie. Todd Campbell owns shares of BioMarin Pharmaceutical. The Motley Fool recommends BioMarin Pharmaceutical, Catamaran, Express Scripts, Teva Pharmaceutical Industries, and UnitedHealth. The Motley Fool owns shares of Catamaran and Express Scripts.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 - 2015 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. | My money is on AbbVie . AbbVie already has an important new Parkinson's disease drug in Duopa -- so a buyout of Acadia would significantly strengthen the drugmaker's position in this vastly under-served market. George Budwell owns shares of AbbVie. | My money is on AbbVie . AbbVie already has an important new Parkinson's disease drug in Duopa -- so a buyout of Acadia would significantly strengthen the drugmaker's position in this vastly under-served market. George Budwell owns shares of AbbVie. | My money is on AbbVie . AbbVie already has an important new Parkinson's disease drug in Duopa -- so a buyout of Acadia would significantly strengthen the drugmaker's position in this vastly under-served market. George Budwell owns shares of AbbVie. | My money is on AbbVie . AbbVie already has an important new Parkinson's disease drug in Duopa -- so a buyout of Acadia would significantly strengthen the drugmaker's position in this vastly under-served market. George Budwell owns shares of AbbVie. |
27006.0 | 2015-03-25 00:00:00 UTC | 4 Top-Ranked Health Care ETFs for a Healthy Portfolio - ETF News And Commentary | ABBV | https://www.nasdaq.com/articles/4-top-ranked-health-care-etfs-healthy-portfolio-etf-news-and-commentary-2015-03-25 | nan | nan | After an incredible 2014, the health care sector is crushing the overall market this year too. This is largely owing to the bullish trend in both the pharma and biotech segments from strong earnings growth, a merger and acquisition frenzy and encouraging industry trends.
Earnings Growth
The health care sector was the second contributor to earnings growth in Q4 trailing autos and the largest contributor to revenue growth. It is expected to deliver earnings growth of 11.8% and revenue growth of 9.1% in Q1, as per the Zacks Industry Trend . While the results will be hurt by negative currency translations, new products will likely contribute to the results (read: Big Pharma Weak Guidance Put These ETFs in Focus ).
Mergers & Acquisitions
Recent mergers and acquisition activities at big giants like AbbVie ( ABBV ), Pfizer ( PFE ), Shire ( SHPG ) and Salix Pharmaceuticals ( SLXP ) have given a big boost to both pharma and biotech stocks this year. AbbVie is set to acquire Pharmacyclics ( PCYC ) for nearly $21 billion in one of the biggest deals of recent times while Pfizer ( PFE ) will buy Hospira ( HSP ) for $17 billion.
Meanwhile, Shire acquired rare-disease treatment developer NPS Pharmaceuticals for $5.2 billion and Salix will be taken over by VValeant Pharmaceuticals ( VRX ) after Endo International ( ENDP ) withdrew its proposal. With this, the mergers and acquisitions targeting both biotech and pharma reached $59.3 billion this year, up 94% year over year (read: Pharma ETFs to Soar No Matter Who Wins Salix ).
Other Factors
Another bullish trend seen in the health care space is expansion into emerging markets. Several companies whether big or small are looking to expand their presence in India, China, Brazil and other developing markets. Moreover, companies like Merck ( MRK ), Amgen, Biogen ( BIIB ), and Actavis ( ACT ) are eyeing deals for the development of the highly lucrative biosimilars, the generic versions of biologics.
Further, the industry is clearly benefiting from promising drug launches, cost-cutting efforts, an aging population, expanding insurance coverage, growing middle class, insatiable demand for new drugs, ever-increasing health care spending, and the Affordable Care Act or Obamacare. A larger number of insured Americans would be able to afford medicines under Obamacare. This would drive up revenues of biotechnology companies and lead to more profits.
Added to the strength is its non-cyclical nature, which provides a defensive tilt to the portfolio. Amid the global growth worries, strong dollar, and geopolitical tensions, the move to defensive stocks could make for a compelling choice for investors. Moreover, the health care sector has a solid Zacks Rank at the time of writing - about 62% of the industries under health care have Zacks Rank in the top 42%, spreading optimism in the sector (see: all the Health care ETFs here ).
Given these promising trends, investors should look at some of the top-ranked ETFs that target the broad health care segment and are expected to outperform in the months to come. These funds have enjoyed a strong momentum in the year-to-date period and have potentially superior weighting methodologies, which could allow these to continue leading the health care space going forward.
iShares U.S. Healthcare Providers ETF ( IHF )
This ETF follows the Dow Jones U.S. Select Healthcare Providers Index with exposure to companies that provide health insurance, diagnostics and specialized treatment. In total, the fund holds 49 securities in its basket with the largest allocation going to United Health ( UNH ) and Express Scripts ( ESRX ) at 13.8% and 9.1%, respectively. Other firms do not hold more than 7.05% of IHF.
The fund has been able to manage $799.3 million in its asset base while volume is moderate at about 68,000 shares per day on average. It charges 43 bps in annual fees and expenses and has added 14.2% so far this year. The fund has a Zacks ETF Rank of 1 or 'Strong Buy' rating with a Medium risk outlook (read: Top Ranked Healthcare Service ETF in Focus: IHF ).
Guggenheim S&P 500 Equal Weight Health Care ETF ( RYH )
This fund provides equal weight exposure of around 2% to 55 stocks and tracks the S&P 500 Equal Weight Index Health Care. HCA Holdings ( HCA ), Regeneron Pharmaceuticals ( REGN ) and Biogen occupy the top three positions in the basket. Health care providers and services takes the top spot at roughly 31.2% of the total, closely followed by pharmaceuticals (23.4%) and health care equipment and supplies (23.3%).
The product has accumulated $666.5 million in its asset base while it trades in moderate volume of around 51,000 shares. The expense ratio came in at 0.40%. The fund has added 10.1% so far this year and has a Zacks ETF Rank of 2 or 'Buy' rating with a Medium risk outlook.
SPDR S&P Health Care Services ETF ( XHS )
This product also uses the equal weight methodology by tracking the S&P Health Care Services Select Industry Index. Holding 56 stocks in its basket, each security accounts for less than 2.4% of total assets. Select Medical ( SEM ), ExamWorks Group ( EXAM ) and Kindred Healthcare ( KND ) are the top three holdings (read: Top-Ranked ETFs from Top-Performing Sectors ).
From an industry look, health care services accounts for one-third of the portfolio while health care facilities, managed and health care distributors take the remainder. This is often an overlooked fund with AUM of $183.4 million and average daily volume of less than 33,000 shares. The product charges 35 bps in annual fees and has gained 12.2% in the year-to-date timeframe. It has a Zacks ETF Rank of 2 with a Medium risk outlook.
PowerShares Dynamic Healthcare Sector Portfolio ( PTH )
This fund follows the DWA Healthcare Technical Leaders Index and holds a basket of 49 U.S. companies. The product has amassed $183.5 million in its asset base and charges 60 bps in fees and expenses from investors. Volume is light, exchanging less than 31,000 shares in hand on average. The ETF is pretty well spread out across components with Medivation ( MDVN ), Regeneron Pharmaceuticals and Actavis making up for top three firms with a combined 14.9% share. Other firms hold less than 4% share each.
In terms of industrial exposure, about half of the portfolio is allotted to biotechnology while health care providers and services and health care equipment and supplies round off to the top three spots. PTH has returned 15.2% in the year-to-date time frame and has a Zacks ETF Rank of 2 with a High risk outlook.
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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. | Mergers & Acquisitions Recent mergers and acquisition activities at big giants like AbbVie ( ABBV ), Pfizer ( PFE ), Shire ( SHPG ) and Salix Pharmaceuticals ( SLXP ) have given a big boost to both pharma and biotech stocks this year. AbbVie is set to acquire Pharmacyclics ( PCYC ) for nearly $21 billion in one of the biggest deals of recent times while Pfizer ( PFE ) will buy Hospira ( HSP ) for $17 billion. Click to get this free report ISHARS-US H C P (IHF): ETF Research Reports GUGG-SP5 EW HEA (RYH): ETF Research Reports SPDR-SP HLTH CR (XHS): ETF Research Reports PWRSH-DW HLT MO (PTH): ETF Research Reports ABBVIE INC (ABBV): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report ISHARS-US H C P (IHF): ETF Research Reports GUGG-SP5 EW HEA (RYH): ETF Research Reports SPDR-SP HLTH CR (XHS): ETF Research Reports PWRSH-DW HLT MO (PTH): ETF Research Reports ABBVIE INC (ABBV): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. Mergers & Acquisitions Recent mergers and acquisition activities at big giants like AbbVie ( ABBV ), Pfizer ( PFE ), Shire ( SHPG ) and Salix Pharmaceuticals ( SLXP ) have given a big boost to both pharma and biotech stocks this year. AbbVie is set to acquire Pharmacyclics ( PCYC ) for nearly $21 billion in one of the biggest deals of recent times while Pfizer ( PFE ) will buy Hospira ( HSP ) for $17 billion. | Click to get this free report ISHARS-US H C P (IHF): ETF Research Reports GUGG-SP5 EW HEA (RYH): ETF Research Reports SPDR-SP HLTH CR (XHS): ETF Research Reports PWRSH-DW HLT MO (PTH): ETF Research Reports ABBVIE INC (ABBV): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. Mergers & Acquisitions Recent mergers and acquisition activities at big giants like AbbVie ( ABBV ), Pfizer ( PFE ), Shire ( SHPG ) and Salix Pharmaceuticals ( SLXP ) have given a big boost to both pharma and biotech stocks this year. AbbVie is set to acquire Pharmacyclics ( PCYC ) for nearly $21 billion in one of the biggest deals of recent times while Pfizer ( PFE ) will buy Hospira ( HSP ) for $17 billion. | Mergers & Acquisitions Recent mergers and acquisition activities at big giants like AbbVie ( ABBV ), Pfizer ( PFE ), Shire ( SHPG ) and Salix Pharmaceuticals ( SLXP ) have given a big boost to both pharma and biotech stocks this year. AbbVie is set to acquire Pharmacyclics ( PCYC ) for nearly $21 billion in one of the biggest deals of recent times while Pfizer ( PFE ) will buy Hospira ( HSP ) for $17 billion. Click to get this free report ISHARS-US H C P (IHF): ETF Research Reports GUGG-SP5 EW HEA (RYH): ETF Research Reports SPDR-SP HLTH CR (XHS): ETF Research Reports PWRSH-DW HLT MO (PTH): ETF Research Reports ABBVIE INC (ABBV): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. |
27007.0 | 2015-03-23 00:00:00 UTC | This Market Could Grow 6250% in 10 Years | ABBV | https://www.nasdaq.com/articles/market-could-grow-6250-10-years-2015-03-23 | nan | nan | Big Pharma just looked into its future... and saw a whole new era dawning.
Last year, 32 large-molecule drugs, called biologics, with combined sales of $51 billion, lost patent protection. This year, another $28 billion worth will join them.
Contrary to what might be expected, pharmaceutical giants haven't been sweating the risk of low-cost generics disrupting their multibillion-dollar biologics market. Unlike chemical drugs, biologics are made from living cells, blood, or tissue. That makes them much harder for generic drug-makers to copy. In addition, until now, biologics enjoyed U.S. regulatory protection due to a lack of clarity regarding the approval process for biologics copycats.
But thanks to an FDA approval set in motion in 2010 by provisions in the Affordable Care Act, those days are over. It's been a long road, but Novartis ' (NYSE: NVS) Zarixo recently took the honors of being the first biosimilar approved for the U.S. market, a move that should bring down drug costs for consumers.
A new era in pharmaceuticals
Zarixo will provide a cheaper version of Amgen 's (NASDAQ: AMGN) $300-a-day cancer drug Neupogen.
This one drug could save cancer patients over $5.7 billion over the next 10 years. Sandoz, a unit of Novartis, is copying other Amgen blockbusters as well, including cancer drug Neulasta and rheumatoid arthritis medication Enbrel. Amgen's anemia drug Epogen is also at risk, with Hospira's biosimilar pending FDA approval. Just these four drugs generated nearly $11 billion in U.S. sales for Amgen last year. Sandoz also has expertise abroad in biosimilars, with global sales of $400 million in 2013.
While the coming biosimilars will likely strip major biologics makers of billions in revenue, the new market offers opportunities as well. Research group IMS Health projects that theglobal marketfor copycats of biologics should grow from $400 million in 2011, to an astounding $11 billion - $25 billion by 2020, accounting for between 4% and 10% of the total biologics market.
In other words, the market for biosimilars is poised to see an astounding 6,250% increase over 10 years.
Where to stake your claim
The FDA opening the door to biosimilars has far-reaching implications for stock investors. Millions of doses of these drugs are distributed worldwide, but it is their penetration into America -- the world's largest pharma market -- that should turn this field into a gold mine.
Citigroup projects a transfer of up to $110 billion in market value over the next decade to companies with a strong biosimilar presence, at the expense of companies whose biologics are exposed to new competition. As is true of any emerging market, it's notoriously difficult to predict how things will shake out. But here are several companies worth watching in the biosimilars space.
Pfizer: If you can't beat 'em, join 'em
Motley Fool Todd Campbell pointed out in " Psst... Pfizer Just Told Investors That This Is the Next Big Thing " that Pfizer 's (NYSE: PFE) recent move to buy biosimilars company Hospira could prove to be brilliant.
Hospira has expertise in the making and marketing of biosimilars. The company's drugs Retacrit and Nivestim are successful in Europe.
Pfizer is no slouch in biosimilars, either. Pfizer/Hospira has five biosimilars in development. Johnson & Johnson's (NYSE: JNJ) Remicade looks like it's in Pfizer/Hospira's crosshairs.
Remicade is one of the largest-selling treatments on the planet, and its patents are expiring in much of Europe. In the U.S., J&J will retain its exclusivity through 2018 on Remicade, but Hospira will continue launching its copycat in Europe, where it is licensed for the same diseases as Remicade.
Amgen copies the copiers
I own Amgen and don't plan to sell anytime soon. While the huge biotech stands to lose to companies targeting its original drugs, it stands to make as much, or more, money copying the copiers.
"The biosimilar market we're going after is dramatically larger" than what the company could lose, said Tony Hooper, Amgen's executive VP for global operations. Amgen is working on nine biosimilars based on competitors' drugs. The first should show up in 2017, with four more by 2019, including copycats of Roche 's Herceptin and AbbVie 's Humira.
A pure-play in biosimilars
Big Pharma has an advantage over small-cap companies in biosimilars because these drugs are so hard to develop and replicate. Companies like Amgen and Pfizer have the scientists and facilities to tear apart competitors' medications and figure out how to duplicate them.
But the biosimilar sector is enormous, and it's worth mentioning a pure play -- a company that focuses strictly on biosimilars. While the large drugmakers are considerably safer, for investors with nerves of steel, a small biotech working to make and sell biosimilars could be just the "David" ticket to beat the pharma Goliaths.
Founded in 2010, Coherus Biosciences ' (NASDAQ: CHRS) biosimilars target three blockbuster biologics. The company issued their IPO in November 2014, at the price of $13.50 per share.
Leading Coherus' pipeline is a biosimilar of the Amgen's blockbuster Enbrel. The rheumatoid arthritis drug is the third largest-selling drug in the world, with global sales in 2013 approaching $9 billion for this one drug alone. Coherus plans to file for FDA approval of its biosimilar version next year.
Another plus for this company is that Baxter International bought a partnership with Coherus on this drug, paying $246 million for commercial rights in Europe. In addition, the company has marketing collaborations in place with Medpace and Daiichi-Sanyo .
Coherus believes the biologics it's targeting should pull in nearly $30 billion by 2017, a highly optimistic management guesstimate that gives ample room for the stock to go much higher. Meanwhile, regulatory refusal and litigation possibilities from Big Pharma companies eager to protect their turf expose this small cap company to substantial risks. I admit I'm intrigued, as the drugs Coherus has its sights on should prove highly lucrative.
Summing up
Biosimilars may not automatically substitute for the brands they seek to replace. An intense battle is going on over this exact issue. Biosimilar makers want their drugs to carry the same names as brands, so doctors don't have to prescribe biosimilars specifically. Branded drug-makers want biosimilars to carry their own unique names. If the unique name camp prevails, branded prescription drugs will be better protected from competition.
Still, even if branded drug-makers get their way, it will only delay the inevitable.
The FDA approval of Zarxio cleared up any lingering doubts that these drugs will penetrate the U.S. market. Given the pressing need to rein in the soaring costs of healthcare, as well as growing frustration with the sky-high prices biologic drugs command, for the global trillion dollar pharmaceutical industry, a new era is dawning.
Editor's Note: The article has been corrected to reflect that Pfizer's Remicade biosimilar has not been submitted to the FDA for approval. The Motley Fool regrets the error.
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The article This Market Could Grow 6250% in 10 Years originally appeared on Fool.com.
Cheryl Swanson owns Amgen, Pfizer, and Baxter, but has no position in any other stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Citigroup 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 - 2015 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 first should show up in 2017, with four more by 2019, including copycats of Roche 's Herceptin and AbbVie 's Humira. While the large drugmakers are considerably safer, for investors with nerves of steel, a small biotech working to make and sell biosimilars could be just the "David" ticket to beat the pharma Goliaths. Given the pressing need to rein in the soaring costs of healthcare, as well as growing frustration with the sky-high prices biologic drugs command, for the global trillion dollar pharmaceutical industry, a new era is dawning. | The first should show up in 2017, with four more by 2019, including copycats of Roche 's Herceptin and AbbVie 's Humira. Sandoz, a unit of Novartis, is copying other Amgen blockbusters as well, including cancer drug Neulasta and rheumatoid arthritis medication Enbrel. Pfizer: If you can't beat 'em, join 'em Motley Fool Todd Campbell pointed out in " Psst... Pfizer Just Told Investors That This Is the Next Big Thing " that Pfizer 's (NYSE: PFE) recent move to buy biosimilars company Hospira could prove to be brilliant. | The first should show up in 2017, with four more by 2019, including copycats of Roche 's Herceptin and AbbVie 's Humira. Citigroup projects a transfer of up to $110 billion in market value over the next decade to companies with a strong biosimilar presence, at the expense of companies whose biologics are exposed to new competition. Pfizer: If you can't beat 'em, join 'em Motley Fool Todd Campbell pointed out in " Psst... Pfizer Just Told Investors That This Is the Next Big Thing " that Pfizer 's (NYSE: PFE) recent move to buy biosimilars company Hospira could prove to be brilliant. | The first should show up in 2017, with four more by 2019, including copycats of Roche 's Herceptin and AbbVie 's Humira. Just these four drugs generated nearly $11 billion in U.S. sales for Amgen last year. Coherus plans to file for FDA approval of its biosimilar version next year. |
27008.0 | 2015-03-23 00:00:00 UTC | Better Dividend Stock: AbbVie or Gilead Sciences, Inc.? | ABBV | https://www.nasdaq.com/articles/better-dividend-stock-abbvie-or-gilead-sciences-inc-2015-03-23 | nan | nan | Dividend stocks are without question a powerful asset for investors with a long-term outlook. Even so, the dynamic interplay among cash flow, M&A activity, and product development can make it difficult to select the right income-generating stocks for your portfolio.
These issues are particularly troublesome in the rapidly evolving healthcare sector, where cash flows are frequently plowed into expensive acquisitions and/or the development of new drugs.
AbbVie and Gilead Sciences are two dividend-paying healthcare companies that perhaps underscore these issues best. Namely, we've seen both companies invest heavily in their clinical pipelines and M&A activity of late, but still find a way to reward shareholders via a quarterly dividend.
Although both companies have generated market-crushing returns for investors over the last few years (shown by the chart below), they are fundamentally different types of dividend stocks .
For example, Gilead only recently started paying a dividend, whereas AbbVie has earned the distinction of being earmarked as a "dividend aristocrat" for consistently paying and raising its dividend. The two companies also offer drastically different yields, with AbbVie's current yield of 3.5% more than doubling Gilead's at 1.7%.
As history and current dividend yields don't say much about each company's prospects going forward -- or even their ability to support a payout, let's consider which stock offers the better opportunity right now.
AbbVie is in the midst of a dramatic makeover
After announcing a $21 billion buyout of Pharmacyclics earlier this month for the blood cancer drug Imbruvica, AbbVie has begun its hunt for post-Humira patent expiration revenue growth in earnest. The problem, though, is that this acquisition will probably cause earnings to absolutely crater in the short-term, once the deal closes sometime in the second-quarter.
This meaningful uptick in free cash led the biotech to offer its first dividend payment of $0.43 per share on a quarterly basis starting in the second quarter of this year. In the same breath, management also announced a $15 billion increase to its share repurchase program, showing their confidence in the company's performance moving forward.
Source: Gilead Sciences
And they appear to be correct in their assessment. According to some recent script estimates via IMS, Gilead's hep C drugs are on track to generate over $12 billion in U.S. sales in 2015. If that line holds, this record-breaking franchise could rake in more than $15 billion in total sales this year, leading to another blowout year in terms of beating consensus -- as well as annual guidance for that matter.
So which dividend stock is the better long-term buy?
AbbVie has a way of surprising the Street and this time may turn out to be no different. That being said, Gilead simply has more impressive cash flows right now and doesn't appear to be on the cusp of executing any major deals. As a result, Gilead looks like a much better option for investors seeking a stable yield and strong growth prospects for the long-haul.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Better Dividend Stock: AbbVie or Gilead Sciences, Inc.? originally appeared on Fool.com.
George Budwell owns shares of AbbVie and Gilead Sciences. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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 and Gilead Sciences are two dividend-paying healthcare companies that perhaps underscore these issues best. For example, Gilead only recently started paying a dividend, whereas AbbVie has earned the distinction of being earmarked as a "dividend aristocrat" for consistently paying and raising its dividend. The two companies also offer drastically different yields, with AbbVie's current yield of 3.5% more than doubling Gilead's at 1.7%. | For example, Gilead only recently started paying a dividend, whereas AbbVie has earned the distinction of being earmarked as a "dividend aristocrat" for consistently paying and raising its dividend. The article Better Dividend Stock: AbbVie or Gilead Sciences, Inc.? AbbVie and Gilead Sciences are two dividend-paying healthcare companies that perhaps underscore these issues best. | For example, Gilead only recently started paying a dividend, whereas AbbVie has earned the distinction of being earmarked as a "dividend aristocrat" for consistently paying and raising its dividend. The article Better Dividend Stock: AbbVie or Gilead Sciences, Inc.? AbbVie and Gilead Sciences are two dividend-paying healthcare companies that perhaps underscore these issues best. | The article Better Dividend Stock: AbbVie or Gilead Sciences, Inc.? AbbVie and Gilead Sciences are two dividend-paying healthcare companies that perhaps underscore these issues best. For example, Gilead only recently started paying a dividend, whereas AbbVie has earned the distinction of being earmarked as a "dividend aristocrat" for consistently paying and raising its dividend. |
27009.0 | 2015-03-22 00:00:00 UTC | 3 Things You Need to Know About Achillion Pharmaceuticals Inc. | ABBV | https://www.nasdaq.com/articles/3-things-you-need-know-about-achillion-pharmaceuticals-inc-2015-03-22 | nan | nan | Hepatitis C is one of the most attractive indications for drug development, and that could mean hep C-focused Achillion Pharmaceuticals (NASDAQ: ACHN) is perfectly positioned for a blockbuster opportunity. However, that opportunity could be at risk depending on how quickly competitors such as Gilead Sciences can roll out their own next-generation therapies.
Since Achillion Pharmaceuticals could be a poster child for high-risk, high-reward biotech stocks, let's consider three things that every investor ought to know before jumping in and buying shares.
That's an eye-popping return, but investors should recognize that Achillion Pharmaceuticals is a clinical-stage biotech company that doesn't yet have any revenue or marketed products.
Its drug nearest to commercialization is ACH-3102, which works similarly to Gilead Sciences' ledipasvir.
Achillion considers ACH-3102 to be a next-generation NS5A inhibitor. In midstage trials, combining ACH-3102 with Sovaldi produced a functional cure to 100% of patients in both an eight- and six-week treatment cycle. That's a marked improvement over the typical 12-week treatment course prescribed for Sovaldi and Viekira Pak. It's also an improvement over Harvoni, which can be used in 40% to 45% of genotype 1 patients over an eight-week cycle, but otherwise is prescribed for at least 12 weeks.
Achillion Pharmaceuticals is also researching ACH-3422 as a potential successor to Sovaldi in its drug duo. However, the company has yet to report any midstage study results for a combination of ACH-3422 and ACH-3102, so investors shouldn't count their chickens yet.
The company's only other drug in human trials is sovaprevir, a protease inhibitor that management hopes could one day become part of a hepatitis C triplet regimen alongside ACH-3102 and ACH-3422.
Investors should view Achillion Pharmaceuticals' shares as being unequivocally tied to the biotech's success, or failure, in treating hepatitis C, and that could be either very good or very bad.
3. Competitors could out-innovate it
In the coming years, treatment duration will be one of the most important battlegrounds for hepatitis C drugs. So far, Achillion Pharmaceuticals' ACH-3102 data suggests it has the best mousetrap.
However, a major risk could be coming in the form of even shorter treatments regimens being developed by both Gilead Sciences and Merck & Co . While neither company has delivered midstage success that rivals Achillion Pharmaceuticals' six-week data, either could roll out results down the road that could relegate Achillion to bit-player status.
Tying it together
Biotechnology stocks are notoriously hit-and-miss. The industry trades wildly on speculation tied to promising pipeline candidates and clinical trial news. Since Achillion Pharmaceuticals is leveraged to hepatitis C, and its pipeline is competing against some of the deepest pockets in the industry, there's a significant amount of risk in owning this stock. That said, Achillion appears to have an edge with ACH-3102 that it could exploit to carve out a treatment niche, and it could have an opportunity to be a much bigger player if ACH-3422 and sovaprevir pan out. Given that backdrop, this stock is best suited for the most speculative portfolios.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Things You Need to Know About Achillion Pharmaceuticals Inc. originally appeared on Fool.com.
Todd Campbell owns shares of Achillion and Gilead Sciences. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | Hepatitis C is one of the most attractive indications for drug development, and that could mean hep C-focused Achillion Pharmaceuticals (NASDAQ: ACHN) is perfectly positioned for a blockbuster opportunity. The company's only other drug in human trials is sovaprevir, a protease inhibitor that management hopes could one day become part of a hepatitis C triplet regimen alongside ACH-3102 and ACH-3422. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. | Investors should view Achillion Pharmaceuticals' shares as being unequivocally tied to the biotech's success, or failure, in treating hepatitis C, and that could be either very good or very bad. While neither company has delivered midstage success that rivals Achillion Pharmaceuticals' six-week data, either could roll out results down the road that could relegate Achillion to bit-player status. The Motley Fool owns shares of Gilead Sciences. | That's an eye-popping return, but investors should recognize that Achillion Pharmaceuticals is a clinical-stage biotech company that doesn't yet have any revenue or marketed products. Investors should view Achillion Pharmaceuticals' shares as being unequivocally tied to the biotech's success, or failure, in treating hepatitis C, and that could be either very good or very bad. While neither company has delivered midstage success that rivals Achillion Pharmaceuticals' six-week data, either could roll out results down the road that could relegate Achillion to bit-player status. | Investors should view Achillion Pharmaceuticals' shares as being unequivocally tied to the biotech's success, or failure, in treating hepatitis C, and that could be either very good or very bad. Todd Campbell owns shares of Achillion and Gilead Sciences. The Motley Fool owns shares of Gilead Sciences. |
27010.0 | 2015-03-22 00:00:00 UTC | Confessions of a Value Investor Stuck in a High-Growth Industry | ABBV | https://www.nasdaq.com/articles/confessions-value-investor-stuck-high-growth-industry-2015-03-22 | nan | nan | I'm a cheapskate. I'll buy a year's worth of ketchup when it's on sale, doing the discounted cash flow in my head to make sure the savings covers the lost interest. With rates as low as they've been, it's not that hard.
I should be a value investor. But my expertise is in drug development -- not exactly a value industry.
I first registered for a Fool account in 2001 while working on my PhD in cancer biology and have written full-time for The Motley Fool for going on eight years. I bought into Fool co-founder David Gardner's Rule Breaker investing style pretty early. It's easy to get excited about high-growth stocks even if it's hard to find any value.
Despite my conversion, I've just now come around to one of David's signs of a Rule Breaker:
Sign No. 6: You must find documented proof that [a stock] is overvalued according to the financial media.
The other five, which you can read about here , made perfect sense to me, so I just let my cheapskate-self ignore the last one as if it was the least important.
But I'm coming around. For biotech stocks, appearing overvalued may be as important, if not more important, than the other signs. Overpaying still doesn't feel right to me, but just because a stock looks expensive doesn't mean it won't go up in value. Having a premium price is a sign of strength.
"Expensive" stocks have cheaper capital
Developing drugs isn't cheap. IPOs generally don't raise enough cash to get a biotech all the way through the drug-development process, and small drugmakers typically need to do multiple secondary offerings between their IPO and becoming profitable.
When companies sell additional shares to raise capital, the current shareholders are diluted. There's nothing wrong with that mode of financing if shareholders end up owning a slightly smaller fraction of a much larger pie when clinical studies come back positive and value increases.
The key there is "slightly smaller." The higher the premium price, the smaller the dilution. Conversely, investors holding shares of a cheap biotech will own a much smaller portion of the company after raising the same amount of cash.
It's not unheard of for biotechs to increase their outstanding shares ten-fold or more when they have to raise capital on the cheap, which is what happened to MannKind .
Cheap stocks are usually cheap for a reason
Part of the appeal of biotechs is that their value can double literally overnight because of positive clinical trial data or FDA approval.
What's typically not mentioned when discussing why a stock spiked is that there is actually a low chance that positive event occurring. Investors didn't get it wrong for valuing a company so low; if the risk of failure is high, the potential reward has to be too.
It's like betting on a single number in roulette. Occasionally you're going to win -- and win big -- but there's also going to be a lot of losses in between.
Expensive stocks get more expensive
Pharmacyclics has been called overvalued for most of the company's history. That'll happen with a market cap around $6 billion with just positive phase 2 data, and $11 billion with just one drug on the market, and $12.5 billion with annual sales of just $548 million that the company has to share with partner Johnson & Johnson .
At the end of February, an analyst -- who will remain nameless, since I would have agreed with him -- downgraded Pharmacyclics because the stock had shot up on acquisition rumors that the company might get bought out for $17 to $18 billion.
Earlier this month, AbbVie agreed to purchase the company for approximately $21 billion.
Two premium-priced biotechs worth a look
Vertex Pharmaceuticals has a market cap around $31 billion, but sold just $464 million of its cystic fibrosis drug, Kalydeco, last year. Even if you use the run rate from the fourth quarter, it's still trading at a price-to-sales ratio of 62. The company is still burning cash on research and development, so there's no P/E to mention.
But Vertex has a new drug under review with the FDA that combines Kalydeco with another compound to treat a larger portion of the cystic fibrosis population. And it has more drugs in the clinic to treat even more cystic fibrosis patients. Given the unmet need, Vertex should be able to hit $5 billion in sales, making it fairly reasonably priced at its current market cap with upside from its oncology compounds that are further behind in the clinic.
Juno Therapeutics is more speculative, with no drugs on the market; it doesn't even have a treatment out of phase 2 trials yet. The company is years from having a product on the market, but it's being valued around $4.7 billion.
The biotech, which just IPOed a few months ago, sports a premium price because of its Chimeric Antigen Receptors and T Cell Receptors technologies, which it combined to make CAR-T, which helps train the immune system to attack cancerous cells. If the technology continues to work in later-stage trials, it'll give patients another option and could be a potential cure for some types of cancer.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Confessions of a Value Investor Stuck in a High-Growth Industry originally appeared on Fool.com.
Brian Orelli only has one bottle of ketchup in his pantry, but he found seven bottles of spaghetti sauce. He has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and Vertex Pharmaceuticals. and owns shares of 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 - 2015 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. | Earlier this month, AbbVie agreed to purchase the company for approximately $21 billion. There's nothing wrong with that mode of financing if shareholders end up owning a slightly smaller fraction of a much larger pie when clinical studies come back positive and value increases. Given the unmet need, Vertex should be able to hit $5 billion in sales, making it fairly reasonably priced at its current market cap with upside from its oncology compounds that are further behind in the clinic. | Earlier this month, AbbVie agreed to purchase the company for approximately $21 billion. Conversely, investors holding shares of a cheap biotech will own a much smaller portion of the company after raising the same amount of cash. That'll happen with a market cap around $6 billion with just positive phase 2 data, and $11 billion with just one drug on the market, and $12.5 billion with annual sales of just $548 million that the company has to share with partner Johnson & Johnson . | Earlier this month, AbbVie agreed to purchase the company for approximately $21 billion. Conversely, investors holding shares of a cheap biotech will own a much smaller portion of the company after raising the same amount of cash. That'll happen with a market cap around $6 billion with just positive phase 2 data, and $11 billion with just one drug on the market, and $12.5 billion with annual sales of just $548 million that the company has to share with partner Johnson & Johnson . | Earlier this month, AbbVie agreed to purchase the company for approximately $21 billion. Conversely, investors holding shares of a cheap biotech will own a much smaller portion of the company after raising the same amount of cash. That'll happen with a market cap around $6 billion with just positive phase 2 data, and $11 billion with just one drug on the market, and $12.5 billion with annual sales of just $548 million that the company has to share with partner Johnson & Johnson . |
27011.0 | 2015-03-21 00:00:00 UTC | Dividend Stocks: 2 to Avoid, 1 to Buy | ABBV | https://www.nasdaq.com/articles/dividend-stocks-2-avoid-1-buy-2015-03-21 | nan | nan | It's been proved time and time again that buying for the long haul outperforms short-term investing. It's also been shown that investing in dividend-paying stocks can produce higher returns than investing in non-dividend-paying stocks. However, not all dividend-paying stocks are created equal. For instance, here are two dividend stocks that I think are worth avoiding and one that I think can be owned for the long haul.
Royalty revenue set to slide
PDL Biopharma 's 8.2% dividend yield may be enticing, but the revenue backing up those dividend payments is about to drop. That's because the patent protection for PDL's Queen et al. monoclonal antibody patent portfolio is coming to an end.
Over the years, the Queen et al. patents kicked off a steady stream of revenue for PDL. Thanks to patent royalties tied to some of the planet's top-selling drugs, including Roche Holdings ' Avastin, PDL pocketed sales of $581 million in 2014.
However, with its long-in-the-tooth patent portfolio unlikely to continue kicking off cash, PDL is turning to a strategy of financing emerging biotech companies to fill the expected gap. That strategy may or may not pan out, and as a result, this dividend stock is just far too risky a bet for me.
Growing uncertainty
Many investors focus on dividend-paying stocks because they're relying on the dividend payments to supplement their income in retirement. If that's the case, then uncertainty surrounding Amgen 's future might mean that it's not a good fit for dividend portfolios.
Admittedly, the company isn't facing the same patent expiration sales headwinds that have weighed down some other big pharmaceutical companies, but with high-profile drugs such as Neupogen, Neulastala, and Epogen at risk of losing market share to biosimilar competitors, Amgen's sales could take a hit.
Earlier this month, the FDA approved Novartis ' biosimilar of Neupogen, and while biosimilars in other markets have only captured about 30% to 40% market share, most industry watchers think that biosimilars will eventually win away the lion's share of branded sales.
To offset the risk of expiring patents, Amgen has launched its own biosimilars program that has nine biosimilar candidates in development. That program could produce billions of dollars in sales someday -- or it could not.
Amgen could also blunt the risk to sales this August if it wins FDA approval of Repatha, a PCSK9-inhibiting cholesterol drug that many think could have multibillion-dollar blockbuster potential. However, peak sales forecasts are ripe for error, and this drug has yet to win the official FDA go-ahead.
Amgen's potential catalysts might be enough to entice a growth investor to own Amgen, but they may not provide enough justification for dividend investors, especially given that Amgen's 2% dividend yield isn't all that compelling. For that reason, this is a name that I'd hold off for now on owning in income portfolios.
Dominating indications
Both PDL and Amgen face risks tied to patent expirations, but that isn't much of a concern for Gilead Sciences .
Gilead Sciences is the globe's market-share leader in HIV medicine and hepatitis C treatment, and its sales have skyrocketed in the past year. Thanks to the FDA approval of its hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences' sales increased by 122% in 2014, and while growth will slow this year, there's still plenty to like about this company.
Across its HIV drugs, Gilead Sciences markets five therapies that are each on pace to eclipse $1 billion in sales in 2015. Its two fastest-growing of these drugs are Stribild and Complera, and those two multidrug, single-tablet therapies boast patent protection until 2029 and 2023, respectively.
Gilead Sciences' Sovaldi and Harvoni should remain cash cows for the foreseeable future, too. Despite AbbVie winning FDA approval for its hepatitis C treatment Viekira Pak in December, Sovaldi and Harvoni should be able to eclipse the $12.4 billion in combined sales that they generated last year again this year.
Gilead Sciences also has the distinction of having just approved its first dividend payment last quarter, a move that indicates that it feels very comfortable that it will continue to kick off plenty of operating cash in the coming years. Since cash on its balance sheet swelled from $2.6 billion exiting 2013 to $11.7 billion exiting 2014, there's plenty of financial firepower here to increase its dividend yield beyond its current 1.7% rate. If so, then buying shares in the company now at a forward P/E of less than 10 would seem to be a savvy move for the long term.
Tying it together
Patent expiration will remain the biggest risk to dividend-paying stocks in healthcare, and that's particularly true for PDL and Amgen. Both of those companies are taking steps to ensure that sales growth doesn't sputter and put dividend payouts in jeopardy. But neither offers the kind of clarity that most dividend investors require to make them part of an income portfolio. That suggests that a better bet is to own Gilead Sciences. Gilead Sciences' top sellers have plenty of patent protection, and it has a rock-solid balance sheet that could mean its dividend is both safe and likely to grow.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Dividend Stocks: 2 to Avoid, 1 to Buy 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 or may not have positions in the companies mentioned. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | Despite AbbVie winning FDA approval for its hepatitis C treatment Viekira Pak in December, Sovaldi and Harvoni should be able to eclipse the $12.4 billion in combined sales that they generated last year again this year. However, with its long-in-the-tooth patent portfolio unlikely to continue kicking off cash, PDL is turning to a strategy of financing emerging biotech companies to fill the expected gap. Gilead Sciences also has the distinction of having just approved its first dividend payment last quarter, a move that indicates that it feels very comfortable that it will continue to kick off plenty of operating cash in the coming years. | Despite AbbVie winning FDA approval for its hepatitis C treatment Viekira Pak in December, Sovaldi and Harvoni should be able to eclipse the $12.4 billion in combined sales that they generated last year again this year. Thanks to the FDA approval of its hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences' sales increased by 122% in 2014, and while growth will slow this year, there's still plenty to like about this company. Across its HIV drugs, Gilead Sciences markets five therapies that are each on pace to eclipse $1 billion in sales in 2015. | Despite AbbVie winning FDA approval for its hepatitis C treatment Viekira Pak in December, Sovaldi and Harvoni should be able to eclipse the $12.4 billion in combined sales that they generated last year again this year. Admittedly, the company isn't facing the same patent expiration sales headwinds that have weighed down some other big pharmaceutical companies, but with high-profile drugs such as Neupogen, Neulastala, and Epogen at risk of losing market share to biosimilar competitors, Amgen's sales could take a hit. Amgen's potential catalysts might be enough to entice a growth investor to own Amgen, but they may not provide enough justification for dividend investors, especially given that Amgen's 2% dividend yield isn't all that compelling. | Despite AbbVie winning FDA approval for its hepatitis C treatment Viekira Pak in December, Sovaldi and Harvoni should be able to eclipse the $12.4 billion in combined sales that they generated last year again this year. Thanks to the FDA approval of its hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences' sales increased by 122% in 2014, and while growth will slow this year, there's still plenty to like about this company. Across its HIV drugs, Gilead Sciences markets five therapies that are each on pace to eclipse $1 billion in sales in 2015. |
27012.0 | 2015-03-21 00:00:00 UTC | Drug Spending Is Soaring: 3 Takeaways You Can't Miss | ABBV | https://www.nasdaq.com/articles/drug-spending-soaring-3-takeaways-you-cant-miss-2015-03-21 | nan | nan | Spending on hepatitis C drugs saw a jaw-dropping 743% bump in 2014. Tune in to learn what that means -- and what it doesn't -- for drug makers Gilead Sciences and AbbVie , the two major players in the hepatitis C field.
The Express Scripts Drug Trend Report also had important news about SGLT2 drugs and PSCK9 inhibitors, used in the treatment of diabetes and to lower cholesterol, respectively. Join us for details on these major drug trends and what it means to investors, on this health care edition of Industry Focus.
A full transcript follows the video.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
Michael Douglass: Inside 2014's drug spending trends; this is Industry Focus.
[INTRO]
Hi Fools, health care analyst Michael Douglass here, and I'm on the phone with Todd Campbell, one of our contributors from New Hampshire.
Todd, spring has certainly come down here in Alexandria. I don't know if it's quite reached the Great White Northeast, though.
Todd Campbell: Yes, we've got a lot of gray because we haven't had any fresh snow!
Douglass: Oh gosh, that's the worst!
Campbell: We're now in the non-pretty stage of the snow season, heading straight on into the mud season.
Douglass: Got you. Lovely, looking forward to that!
Something interesting came out recently. Express Scripts did their commentary on drug spending from last year; a 13% increase in spend compared to the year before, driven by, was it 31 or 33% increase in specialty drugs?
Campbell: 31% upward in spending on specialty drugs. That was primarily driven by -- which I'm sure we'll get to in a minute -- the jump in spending on hepatitis C therapies.
Douglass: Yes, let's jump right into that number, because while the spending on hepatitis C drugs wasn't that big when compared to the totality, it was certainly the most impressive growth -- a 743% bump, to be precise, which is just ... I would probably use the word "jaw-dropping."
Campbell: Jaw-dropping, eye-opening, eye-popping. Any of those work.
Douglass: Yes. Let's talk our listeners through what happened there a little bit.
Campbell: I think the thing that investors really have to recognize here is that a lot of that spending jump is because so many people were warehoused for treatment ahead of the approval in December of 2013, for Sovaldi, which is Gilead Sciences' drug that got approved and went on to have an unbelievable year; $10 billion worth of sales last year from Sovaldi alone.
You're comparing that 743% jump to a very, very low baseline, because not that many people were treated in 2013.
But still, we're talking about just phenomenal spending on the category; Sovaldi with $10 billion in sales, Harvoni which got approved in October, doing over $2 billion in sales, and combined $12.4 billion in sales for Gilead Sciences' hepatitis C drugs in the first year following the approval.
Douglass: Yes. One of the things I think investors are dealing with, with Gilead -- and one of the reasons it's, for biotech at least, a comparatively cheap stock ... it doesn't have a price to earnings ratio in the hundreds -- is that the expectation is that drug spend increase is going to ramp down.
Although, still looking at what I would consider still pretty impressive spending increases. What, 66.5% increase in hepatitis C spend expected in 2015, 55% in '16, 44% in 2017. These are still pretty darn big numbers; maybe not 700%, but still pretty darn big.
Campbell: These are huge numbers. I think that investors are focusing too much attention on the competitive risk and the pricing concerns that came out after AbbVie got their drug, Viekira Pak, approved in December.
People have said, "They're going to have to do all this discounting, and it's a price war," etc., etc.
You still have to recognize that the price drop, yes that's going to crimp a little bit, but it's going to be more than offset, most likely, by an expanded population of treatable patients because now you've got these insurance companies that won't be rationing care anymore, to just the sickest of hep C patients.
Douglass: Right, and you also have the Medicaids engaging as well, and a lot of other government payers that Gilead sees a lot of opportunity for this year, particularly in Europe.
This is one of those things where, if you asked me what's the best stock in hepatitis C, as a Gilead shareholder -- and I know you are too -- we'd probably both say Gilead. But that's not to say that AbbVie's going to necessarily have an awful year either. This is one of those big, growing markets that can probably support multiple big players.
Campbell: Yes. A study just got conducted by the highly respected MD Anderson Cancer Center, in Texas. The study found -- or estimates forecast, however you want to look at it -- $136 billion is going to get spent on hep C medicine in the next five years; $136 billion. This is a truly massive market opportunity for these drug makers.
Douglass: Yes. Certainly a lot to go on there! And a story of course, for folks who have listened to Industry Focus for a while know, a story that's very near and dear to our hearts, one that we're always keeping a very close eye on, just because it's so interesting.
Let's talk about less impressive growth numbers -- it's pretty hard to get 700%! But in other areas, diabetes spending was up 18%. Express Scripts put a lot of that because of the approval of the new SGLT2 drugs like J&J 's Invokana
Campbell: Yes, Invokana was the first one to win approval, and as a result it's had the edge in gaining market share, and this is a new class of drug so it's going to be increasingly used. There's no getting around it.
Express Scripts is forecasting that spending will grow another 18% in each of the next three years. Now, that's pretty remarkable because diabetes is the biggest class for spending, out of any indication on the traditional side of health care spending.
It's the biggest by far; it's more than two times more per year, per member, than the next highest category, so you're talking about almost 20% growth per year for the next three years. A lot of that obviously is going to be tied to the increasing prevalence of the disease, but it's also because of these SGLT2 drugs, which work differently than prior generation drugs.
What these drugs do is help the kidney deal with blood sugar differently -- better. It helps to regulate those blood sugar levels better than you would be able to regulate using traditional long-acting and short-acting insulin.
This is a drug that's going to get used alongside of these other therapies, rather than instead of them. As a result, spending is going to climb for diabetics over the course of the next few years.
Douglass: Yes. It's interesting, when you look at the 2014 trend for diabetes, that 18%; you get a 16.3% bump in cost, and just a 1.7% bump in utilization. We certainly know that health care costs are a big concern for payers, for the public, for taxpayers; just for everybody!
But we're also going to see that continual growth in utilization as the population of folks who are diabetic increases.
Campbell: Right, and to take that one step further Michael, we have to also look at it and say utilization was up 1.7%, but if you look in all indications, utilization actually dipped slightly last year so that's pretty solid growth in utilization, and again that's tied to that prevalence.
Douglass: Absolutely. Let's talk, finally, about another class of drugs that Express Scripts called out, the PSCK9 inhibitors, which you and I have talked about a few times in the past. Let's start with a little bit of background on them, and then we can get into the opportunity and Express Scripts' worry there.
Campbell: Yes. For more than 20 years now, doctors and patients have been waging a war to get cholesterol levels down. Battles are being won, but the war is far from won. Heart disease remains the biggest killer of Americans every year. It accounts for about one out of every four deaths, so there's a significant unmet need to reduce the incidence of heart disease.
Statins are an important weapon in that. It's a huge market. Lipitor, at its peak before it lost patent expiration, was a $12 billion a year drug. This is the most widely prescribed category of drugs out there.
What's happening is that companies like Amgen are developing new drugs that work in a different way than statins, that can be used alongside statins to get cholesterol levels even lower.
What they're finding is that if you can reduce the level of bad cholesterol in the body, you've got potentially less of a chance of having a blockage that leads to either a heart attack or a stroke.
That has got Express Scripts' attention because it's looking at it and saying, "These are new biologic drugs. Statins have been around for 20 years. They're cheap, they're readily available, and they're used very widely. What happens if all of the people who are taking statins eventually start also taking these new PCSK9 drugs too?"
Express Scripts is guessing that the pricing of these drugs could come in around $10,000 a year, and with 71 million people with high cholesterol? It could be a massive, massive indication.
Douglass: Right. Of course, some caveats here, right? Will the PCSK9s ultimately end up being dosed alongside statins in all cases? Kind of hard to say, because right now they've been really targeting folks who cannot take statins. Whether that's a longer term opportunity or not, I think remains to be seen.
But, certainly a lot of potential. Just the initial numbers that you see for these PCSK9 inhibitors are in the $2-3 billion range, and frankly it could be bigger than that. There's, I think, a lot of excitement around those.
Campbell: Right. You make a great point; right now, neither of these drugs -- there's one from Sanofi and Regeneron , there's another one from Amgen -- they have not been approved by the FDA yet.
Amgen's going to get an FDA decision in August. The decision will be for a smaller patient pool, people who are basically intolerant to statins and still have very stubbornly high bad cholesterol levels. They have rare forms of genetic disease that make them intolerant.
At the beginning, yes, the patient population is going to be pretty small. I think what people are looking at is, they're saying, "We're assuming that over time, that will expand." Like you said, you need to take that with a grain of salt because anything can happen in clinical trials.
Douglass: Yes! As biotech investors find out, unfortunately every week, all too often what seems to be a slam dunk or seems to be a certainty, just doesn't end up happening.
Todd, thanks for your insight here today, as always. Folks, we got some great questions last week, and we'll get to them over the next couple weeks. If you've got anything on your mind; health care, biotech, pharmacy, med tech -- or insurance, for that matter -- anything at all related to health care that's on your mind, shoot us an email! HC@fool.com -- that's "HC" like "health care" at fool.com.
As always, as we usually let people know on Industry Focus, people on the program may have interests in the stocks they talk about. Usually we try to call it out, but sometimes we miss one. I think Todd and I both own J&J, by the way -- and The Motley Fool may have formal recommendations for or against stocks that are mentioned in this podcast, so don't buy or sell stocks based solely on what you hear.
Thanks much. Stay tuned for Industry Focus tomorrow. Check back to Fool.com for all of your investment needs, health care and otherwise, and Fool on!
The article Drug Spending Is Soaring: 3 Takeaways You Can't Miss originally appeared on Fool.com.
Michael Douglass has no position in any stocks mentioned. Todd Campbell owns shares of Gilead Sciences. The Motley Fool recommends Express Scripts, Gilead Sciences, and Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | Tune in to learn what that means -- and what it doesn't -- for drug makers Gilead Sciences and AbbVie , the two major players in the hepatitis C field. I think that investors are focusing too much attention on the competitive risk and the pricing concerns that came out after AbbVie got their drug, Viekira Pak, approved in December. But that's not to say that AbbVie's going to necessarily have an awful year either. | Tune in to learn what that means -- and what it doesn't -- for drug makers Gilead Sciences and AbbVie , the two major players in the hepatitis C field. I think that investors are focusing too much attention on the competitive risk and the pricing concerns that came out after AbbVie got their drug, Viekira Pak, approved in December. But that's not to say that AbbVie's going to necessarily have an awful year either. | Tune in to learn what that means -- and what it doesn't -- for drug makers Gilead Sciences and AbbVie , the two major players in the hepatitis C field. I think that investors are focusing too much attention on the competitive risk and the pricing concerns that came out after AbbVie got their drug, Viekira Pak, approved in December. But that's not to say that AbbVie's going to necessarily have an awful year either. | Tune in to learn what that means -- and what it doesn't -- for drug makers Gilead Sciences and AbbVie , the two major players in the hepatitis C field. I think that investors are focusing too much attention on the competitive risk and the pricing concerns that came out after AbbVie got their drug, Viekira Pak, approved in December. But that's not to say that AbbVie's going to necessarily have an awful year either. |
27013.0 | 2015-03-19 00:00:00 UTC | Aldeyra Initiates Phase II Sjogren-Larsson Syndrome Study - Analyst Blog | ABBV | https://www.nasdaq.com/articles/aldeyra-initiates-phase-ii-sjogren-larsson-syndrome-study-analyst-blog-2015-03-19 | nan | nan | Pipeline updates are highly awaited events in the pharma/biotech sector as they play an important role in deciding whether or not to invest in a particular company. These updates provide information on experimental drugs and at times give an insight into the commercial potential of the candidate once it is successfully developed and commercialized.
Earlier this week, Aldeyra Therapeutics, Inc.ALDX announced that it has started patient enrolment in a phase II study on its investigational candidate NS2 for the treatment of Sjögren-Larsson syndrome.
We note that currently NS2 is the only noteworthy candidate in Aldeyra's pipeline and the company is working on the development of this candidate for different indications. Apart from Sjögren-Larsson syndrome, the candidate is being developed for noninfectious anterior uveitis.
Along with the update on the Sjögren-Larsson syndrome study, Aldeyra announced that the FDA has accepted its amended protocol for conducting a phase II study on NS2 for the treatment of noninfectious anterior uveitis. Given the finalization of protocol, Aldeyra expects to start enrolling patients for the study in the first half of 2015. Preliminary data should be out by the end of 2015.
Meanwhile, some other companies are also working for the development of uveitis treatments. AbbVie ABBV is evaluating Humira in several phase III studies for uveitis and intends to file for the drug in the U.S. and the EU in this indication. XOMA Corporation XOMA is also evaluating gevokizumab in three pivotal studies for the treatment of non-infectious intermediate, posterior or pan-uveitis and Behçet's disease uveitis.
Aldeyra carries a Zacks Rank #3 (Hold). A better-ranked stock in the pharmaceutical sector is Lannett Company, Inc. LCI 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. | AbbVie ABBV is evaluating Humira in several phase III studies for uveitis and intends to file for the drug in the U.S. and the EU in this indication. Click to get this free report XOMA CORP (XOMA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ALDEYRA THERAPT (ALDX): Get Free Report To read this article on Zacks.com click here. Earlier this week, Aldeyra Therapeutics, Inc.ALDX announced that it has started patient enrolment in a phase II study on its investigational candidate NS2 for the treatment of Sjögren-Larsson syndrome. | Click to get this free report XOMA CORP (XOMA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ALDEYRA THERAPT (ALDX): Get Free Report To read this article on Zacks.com click here. AbbVie ABBV is evaluating Humira in several phase III studies for uveitis and intends to file for the drug in the U.S. and the EU in this indication. Earlier this week, Aldeyra Therapeutics, Inc.ALDX announced that it has started patient enrolment in a phase II study on its investigational candidate NS2 for the treatment of Sjögren-Larsson syndrome. | Click to get this free report XOMA CORP (XOMA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ALDEYRA THERAPT (ALDX): Get Free Report To read this article on Zacks.com click here. AbbVie ABBV is evaluating Humira in several phase III studies for uveitis and intends to file for the drug in the U.S. and the EU in this indication. Along with the update on the Sjögren-Larsson syndrome study, Aldeyra announced that the FDA has accepted its amended protocol for conducting a phase II study on NS2 for the treatment of noninfectious anterior uveitis. | AbbVie ABBV is evaluating Humira in several phase III studies for uveitis and intends to file for the drug in the U.S. and the EU in this indication. Click to get this free report XOMA CORP (XOMA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ALDEYRA THERAPT (ALDX): Get Free Report To read this article on Zacks.com click here. We note that currently NS2 is the only noteworthy candidate in Aldeyra's pipeline and the company is working on the development of this candidate for different indications. |
27014.0 | 2015-03-18 00:00:00 UTC | Why I'm Not Giving Up on This Tiny Biotech Stock (Yet) | ABBV | https://www.nasdaq.com/articles/why-im-not-giving-tiny-biotech-stock-yet-2015-03-18 | nan | nan | Since reporting in November that its promising hepatitis C drug ACH-3102 helped clear the virus from 100% of patients in a small clinical trial, shares in Achillion Pharmaceuticals have been one of the most volatile in biotechnology.
Shares have soared from less than $10 in early November to a peak of $16 in January, only to tumble back below $11 earlier this month.
Swings like that can cause even the most risk tolerant of us to question whether it's worth owning Achillion. After reconsidering its potential, however, I've decided to stick with it a bit longer. Here's why.
A busy year for hep C drugmakers
The approval of Gilead Sciences ' Sovaldi last year revolutionized hepatitis C treatment. Sovaldi cast aside reliance on side-affect-laden peginterferon and cut patient treatment times in half, to 12 weeks, all while delivering functional cure rates of 90% or more. Those advantages catapulted Sovaldi into a near-instant blockbuster drug that ended up generating more than $10 billion in sales last year.
Gilead Sciences notched a second big win with the approval of Harvoni, a genotype 1 treatment that doesn't rely on peginterferon or ribavirin -- another pesky prior-generation drug -- that can be used for as little as eight weeks and boasts cure rates in the high 90% range. Despite a lofty price tag, demand for Harvoni was so great that its sales were north of $2 billion in just its first quarter on the market.
Then there's AbbVie 's Viekira Pak, a multi-drug HCV genotype 1 cocktail that won FDA approval in December, which analysts think has billion-dollar sales potential this year.
In addition to Gilead Sciences and AbbVie, other drug makers also remain interested in addressing this sizable market. Merck & Co is developing in-house HCV drugs, and last summer, the company made a big splash when it announced its $3.85 billion acquisition of Achillion's HCV rival Idenix Pharmaceuticals.
Also, Bristol-Myers Squibb is carving out an HCV market niche overseas with daclatasvir, and a recent FDA filing for approval could mean that daclatasvir begins being used alongside Sovaldi in U.S. genotype 3 patients by year-end.
All that activity suggests to me that there is still value in developing best-in-class solutions for this widespread disease.
Source: Achillion Pharmaceuticals.
Innovating treatment
Although recently approved therapies like Sovaldi have done a great job at improving upon predecessors, there's still a lot of work to do. Treatments still don't work for all patients, and dosing regimens that last 12 weeks are ripe for non-adherence risks that could cause treatment to fail. For that reason, I think that Achillion's ACH-3102 might be a valuable product that can carve out a share of this lucrative market.
In November, Achillion reported that dosing ACH-3102 with Sovaldi for eight weeks provided a functional cure for all 12 patients in its trial, including those with high viral loads. In December, Achillion announced interim results that ACH-3102 alongside Sovaldi similarly cleared the virus in just six weeks. Those interim results were confirmed in February, when the trial was completed.
Delivering a functional cure in a treatment duration that halves the current standard of care is incredibly intriguing, but even more intriguing would be if Achillion's next study pans out similarly. After the six-week trial's success, Achillion announced that it's evaluating ACH-3102 alongside Sovaldi in a four- week regimen.
One-trick pony?
Significantly reducing the number of doses could mean that more patients complete therapy, and the cost of treating hepatitis C declines. If so, ACH-3102 could be attractive to competitors eager to outmaneuver Gilead Sciences, as well as to payers who might be more willing to back the use of this treatment over others in order to cut costs.
If a suitor can't ink a deal to acquire Achillion, then the company will have to go it alone. To that end, Achillion is developing ACH-3422 as a potential replacement for Sovaldi, and is evaluating the use of a protease inhibitor alongside those two drugs to further boost efficacy. It's too early to say whether ACH-3422 can work as well as Sovaldi in the mashup, or whether adding the protease inhibitor will work; but if such a triplet regimen is effective, it would give Achillion its own in-house HCV solution.
If these combinations fail, however, Achillion's success or failure rests on ACH-3102.
Looking forward
More than 150 million people have hepatitis C, including 9 million people in Europe, 3 million people in the U.S., and 1 million people in Japan. Last year, Gilead treated less than 150,000 HCV patients with its drugs, and this year, Gilead expects to treat about 200,000 patients. That means that millions of hepatitis C patients still need treatment, and that hepatitis C will remain a multibillion-per-year indication for a long time to come.
There's no guarantee that Achillion will end up being one of the companies able to capture a share of this massive market, but given that ACH-3102 could cut treatment periods in half, or more, I'm willing to ride this recent share price drop out a bit -- at least until I see what happens with the four-week trial.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why I'm Not Giving Up on This Tiny Biotech Stock (Yet) originally appeared on Fool.com.
Todd Campbell owns shares of Achillion and Gilead Sciences. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | Then there's AbbVie 's Viekira Pak, a multi-drug HCV genotype 1 cocktail that won FDA approval in December, which analysts think has billion-dollar sales potential this year. In addition to Gilead Sciences and AbbVie, other drug makers also remain interested in addressing this sizable market. Since reporting in November that its promising hepatitis C drug ACH-3102 helped clear the virus from 100% of patients in a small clinical trial, shares in Achillion Pharmaceuticals have been one of the most volatile in biotechnology. | Then there's AbbVie 's Viekira Pak, a multi-drug HCV genotype 1 cocktail that won FDA approval in December, which analysts think has billion-dollar sales potential this year. In addition to Gilead Sciences and AbbVie, other drug makers also remain interested in addressing this sizable market. Sovaldi cast aside reliance on side-affect-laden peginterferon and cut patient treatment times in half, to 12 weeks, all while delivering functional cure rates of 90% or more. | Then there's AbbVie 's Viekira Pak, a multi-drug HCV genotype 1 cocktail that won FDA approval in December, which analysts think has billion-dollar sales potential this year. In addition to Gilead Sciences and AbbVie, other drug makers also remain interested in addressing this sizable market. Since reporting in November that its promising hepatitis C drug ACH-3102 helped clear the virus from 100% of patients in a small clinical trial, shares in Achillion Pharmaceuticals have been one of the most volatile in biotechnology. | Then there's AbbVie 's Viekira Pak, a multi-drug HCV genotype 1 cocktail that won FDA approval in December, which analysts think has billion-dollar sales potential this year. In addition to Gilead Sciences and AbbVie, other drug makers also remain interested in addressing this sizable market. Treatments still don't work for all patients, and dosing regimens that last 12 weeks are ripe for non-adherence risks that could cause treatment to fail. |
27015.0 | 2015-03-17 00:00:00 UTC | Pharmacyclics' Imbruvica Encourages in a Phase III Study - Analyst Blog | ABBV | https://www.nasdaq.com/articles/pharmacyclics-imbruvica-encourages-in-a-phase-iii-study-analyst-blog-2015-03-17 | nan | nan | Pharmacyclics, Inc.PCYC announced that an Independent Data Monitoring Committee after reviewing the phase III HELIOS study has unanimously recommended that the study be unblinded based on clinically meaningful and statistically significant treatment benefit in patients receiving Imbruvica.
The international, randomized, double-blind and placebo-controlled HELIOS trial is comparing Imbruvica in combination with bendamustine and Rituxan (rituximab) versus placebo in combination with bendamustine and Rituxan in patients with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL). The study has met its primary endpoint, demonstrating a statistically significant improvement in progression-free survival (PFS).
Imbruvica is Pharmacyclics' sole marketed product. The product gained FDA approval in January this year for all lines of therapy for the treatment of patients suffering from Waldenstrom's macroglobulinemia (WM). This made Imbruvica the first and only FDA approved treatment for this indication.
Imbruvica is also approved for three other indications, including treatment of patients with mantle cell lymphoma (MCL) and CLL who have received at least one previous therapy and for CLL patients with a deletion of the short arm of chromosome 17. We are encouraged by the label expansion of Imbruvica.
Meanwhile, Pharmacyclics is working on expanding Imbruvica's label further and is evaluating the drug for indications like diffuse large B-cell lymphoma among others.
In the fourth quarter of 2014, Imbruvica's net product revenues in the U.S. rose 31% sequentially to $185 million. For 2015, the company expects Imbruvica U.S. net product revenues to be approximately $1 billion, representing a year-over-year jump of 103%. The increase is expected to be driven by higher market penetration of the four approved indications.
We note that Pharmacyclics has an agreement with Janssen Biotech, a Johnson & Johnson JNJ company, for Imbruvica. While Johnson & Johnson markets Imbruvica in ex-U.S. territories, the two companies jointly commercialize Imbruvica in the U.S.
Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics in a deal valued at approximately $21 billion. The deal is expected to close in mid-2015 (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ).
Pharmacyclics holds a Zacks Rank #3 (Hold). A better-ranked stock in the health care space is Theravance, Inc. THRX carrying a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics in a deal valued at approximately $21 billion. The deal is expected to close in mid-2015 (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). Click to get this free report THERAVANCE INC (THRX): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report THERAVANCE INC (THRX): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics in a deal valued at approximately $21 billion. The deal is expected to close in mid-2015 (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). | Click to get this free report THERAVANCE INC (THRX): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics in a deal valued at approximately $21 billion. The deal is expected to close in mid-2015 (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). | Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics in a deal valued at approximately $21 billion. The deal is expected to close in mid-2015 (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). Click to get this free report THERAVANCE INC (THRX): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. |
27016.0 | 2015-03-17 00:00:00 UTC | AbbVie to Buy Pharmacyclics: Biotech ETFs to Watch - ETF News And Commentary | ABBV | https://www.nasdaq.com/articles/abbvie-to-buy-pharmacyclics%3A-biotech-etfs-to-watch-etf-news-and-commentary-2015-03-17 | nan | nan | Drug maker AbbVie Inc. ( ABBV ) has recently agreed to buy biotech firm Pharmacyclics Inc. ( PCYC ), the maker of blockbuster blood cancer therapy, Imbruvica, for $21 billion in a cash and stock deal. With the recent deal, U.S. pharma M&A activity has touched $54.2 billion in the year-to-date frame, as per Dealogic.
Per the agreement, AbbVie will pay $261.25 per share in cash and stock, representing a 13% premium to Pharmacyclics' closing price on Wednesday. AbbVie will pay 58% cash and the rest in its common stock. However, Pharmacyclics stockholders have the option to elect cash, AbbVie shares or a combination of stock and cash (read: Nasdaq Hits 5,000 on Tech Mergers: Semiconductor ETFs Surge ).
The acquisition of Pharmacyclics will give AbbVie access to Imbruvica and boost its oncology drug pipeline. Imbruvica is approved in the U.S. to treat four forms of blood cancer and costs $100,000 a year. Moreover, it avoids certain serious side effects of chemotherapy. Sales of this oncology treatment are expected to touch $1 billion in the U.S. this year and $3.56 billion in 2018 .
Market Reaction
While Pharmacyclics' shares jumped 10.3% with more than 10 times its average daily volume to close at $254.22, AbbVie shares closed 5.6% lower on the day following the announcement of the deal.
Below, we have highlighted three ETFs having exposure to Pharmacyclics for investors keen on riding further gains, if any, in the stock through a basket form (read: Pharma ETFs in Focus on Valeant-Salix Deal ).
ETFs with Exposure toPharmacyclics
Columbia Select Large Cap Growth ETF (RWG)
The actively managed fund seeks long-term capital appreciation by providing exposure to large-cap stocks with above-average growth prospects. The fund uses fundamental and quantitative analysis to select stocks and presently holds 31 securities.
PCYC takes the top spot in the fund having 5.44% exposure. The fund is quite unpopular with an asset base of under $10 million and average trading volume of less than 1,500 shares. RWG charges 80 basis points as fees and has returned 6.9% this year.
NYSE Arca Biotechnology Index Fund ( FBT )
FBT tracks the NYSE Arca Biotechnology Index to measure the performance of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services (read: SBIO Vs. BBC: 2 Innovative Biotech ETFs Head-To-Head ).
The fund holds a well-diversified basket of 30 stocks with Pharmacyclics taking the second spot with 4.6% allocation. FBT manages an asset base of $2.9 billion and trades in good volumes of 200,000 shares a day. FBT charges investors 60 bps in fees per year and has returned 13.7% in the year-to-date frame.
Market Vectors Biotech ETF ( BBH )
This fund tracks the Market Vectors US Listed Biotech 25 Index, holding 26 securities in the basket. The product has so far amassed $741 million in its asset base and sees moderate trading volumes of roughly 165,000 shares a day (see all Health Care ETFs here ).
Pharmacyclics scores among the top 10 holdings having 4.55% exposure in the fund. The fund charges 35 basis points as fees and is up 11.3% this year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Per the agreement, AbbVie will pay $261.25 per share in cash and stock, representing a 13% premium to Pharmacyclics' closing price on Wednesday. The acquisition of Pharmacyclics will give AbbVie access to Imbruvica and boost its oncology drug pipeline. Drug maker AbbVie Inc. ( ABBV ) has recently agreed to buy biotech firm Pharmacyclics Inc. ( PCYC ), the maker of blockbuster blood cancer therapy, Imbruvica, for $21 billion in a cash and stock deal. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report COLUMBIA SLCGES (RWG): ETF Research Reports FT-AMEX BIOTEC (FBT): ETF Research Reports MKT VEC-BIOTECH (BBH): ETF Research Reports To read this article on Zacks.com click here. Drug maker AbbVie Inc. ( ABBV ) has recently agreed to buy biotech firm Pharmacyclics Inc. ( PCYC ), the maker of blockbuster blood cancer therapy, Imbruvica, for $21 billion in a cash and stock deal. Per the agreement, AbbVie will pay $261.25 per share in cash and stock, representing a 13% premium to Pharmacyclics' closing price on Wednesday. | Drug maker AbbVie Inc. ( ABBV ) has recently agreed to buy biotech firm Pharmacyclics Inc. ( PCYC ), the maker of blockbuster blood cancer therapy, Imbruvica, for $21 billion in a cash and stock deal. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report COLUMBIA SLCGES (RWG): ETF Research Reports FT-AMEX BIOTEC (FBT): ETF Research Reports MKT VEC-BIOTECH (BBH): ETF Research Reports To read this article on Zacks.com click here. Per the agreement, AbbVie will pay $261.25 per share in cash and stock, representing a 13% premium to Pharmacyclics' closing price on Wednesday. | Drug maker AbbVie Inc. ( ABBV ) has recently agreed to buy biotech firm Pharmacyclics Inc. ( PCYC ), the maker of blockbuster blood cancer therapy, Imbruvica, for $21 billion in a cash and stock deal. Per the agreement, AbbVie will pay $261.25 per share in cash and stock, representing a 13% premium to Pharmacyclics' closing price on Wednesday. AbbVie will pay 58% cash and the rest in its common stock. |
27017.0 | 2015-03-17 00:00:00 UTC | 3 Stocks Benefiting From Jaw-Dropping Growth in Specialty Drug Spending | ABBV | https://www.nasdaq.com/articles/3-stocks-benefiting-jaw-dropping-growth-specialty-drug-spending-2015-03-17 | nan | nan | Source: Flickr user Chris Potter .
Express Scripts ' data crunchers have released their report on drug-spending trends over the past year, and the results are nothing if not jaw-dropping.
According to the pharmacy benefit manager, Americans spent 30.9% more on specialty drug prescription medicine in 2014 than they did a year ago. Among the drug developers benefiting most from this surge in specialty drug spending are Gilead SciencesInc. , Celgene Corp , and AbbVie , so let's take a closer look.
No. 1: Gilead Sciences
No company has been a bigger beneficiary of specialty drug spending growth than Gilead Sciences. The company rolled out two revolutionary hepatitis C drugs last year, and each of them was priced at sky-high levels.
As a result, Express Scripts reports that spending on hepatitis C drugs soared by 742.6% last year. That rapid acceleration stems from both a significant unmet need for more effective, shorter-duration therapies, and price tags for Gilead Sciences' Sovaldi and Harvoni that clocked in at north of $1,000 per pill.
Although Gilead Sciences recently reported that it's offering steep discounts to these drugs this year to maintain market share, the company still expects to generate billions of dollars in sales from Sovaldi and Harvoni in 2015.
Last year, those two drugs generated a combined $12.4 billion in revenue for the company, leading to more than a doubling in Gilead Sciences' sales -- and that's with Harvoni only coming into the market in October. This year, the impact of these two drugs will be more muted, but it will still be positive.
Gilead Sciences expects revenue will grow by between 4.4% and 8.4% to between $26 billion and $27 billion in 2015. Given that there are more 3 million Americans and 9 million Europeans with hepatitis C, and the fact that Sovaldi and Harvoni treated just a fraction of them last year, it appears that rising specialty drug spending will remain an important tailwind for the company for the foreseeable future.
No. 2: Celgene Corporation
Celgene Corp is best known for its market dominance as a developer of the leading multiple myeloma drugs Revlimid and Pomalyst, but its 2013 FDA approval of Abraxane for pancreatic cancer also means it's a big beneficiary of rising spending on cancer therapies.
According to Express Scripts, spending on specialty drugs used to treat cancer jumped by 20.7% last year. That increase is mostly due to a larger, older population of patients being diagnosed with the disease, as well as the introduction of next-generation cancer therapies like Abraxane.
Despite concerns over its cost and its arguably limited ability to extend patient's lives, doctors are increasingly prescribing Abraxane. Last year, Abraxane's sales grew by 31% to $848 million thanks to growing script volume.
Since pancreatic cancer remains one of the globe's toughest-to-treat diseases, and cancer prevalence is likely to grow as baby boomers age, it's unlikely that demand for Abraxane will wane. For that reason, Celgene expects Abraxane's sales will eclipse $1 billion this year.
No. 3: AbbVie
Gilead Sciences' specialty drug success has been tied to new drug launches, and Celgene's has come thanks to an approval for a new indication, but AbbVie's specialty drug growth is due to Humira's long-standing dominance as a treatment for autoimmune disease.
Humira, which is used to treat conditions including arthritis and psoriasis, is the planet's top-selling medicine. In 2014, Humira raked in more than $12.5 billion in sales, up 17.7% from the year before. That's remarkable growth, especially for a drug with sales that are already so high, and one that's been on the market since 2002. However, that growth is unlikely to continue.
That's because Humira is slated to lose patent protection at the end of 2016, clearing the way for biosimilar drugmakers to launch competitors. While the upcoming competition means specialty drug spending trends for autoimmune drugs may not fuel AbbVie's growth for too many more years, AbbVie did recently acquire Pharmacyclics to get its hands on Imbruvica, a fast-growing blood cancer drug with sales of roughly $500 million last year -- its first year on the market. In January, Pharmacyclics estimated that Imbruvica could deliver sales of more than $1 billion this year. If so, AbbVie's acquisition means it will still benefit from increasing specialty drug spending trends.
Tying it together
Specialty drugs are complex to manufacture, so their pricing has historically been much higher than prior-generation small-molecule drugs. That's unlikely to change; however, pressure remains from payers for drugmakers like these to rein in soaring drug costs. Whether or not that means these companies will be forced to take increasingly bigger haircuts on their drug prices isn't certain, but given that each of these companies has a long track record of successfully navigating regulatory and market challenges, it's likely all three will continue to benefit from increased specialty drug spending in the future.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns, you will need to get in early -- check out The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Stocks Benefiting From Jaw-Dropping Growth in Specialty Drug Spending originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences, Celgene, and Pharmacyclics. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned.The Motley Fool recommends Celgene, Express Scripts, and Gilead Sciences. The Motley Fool owns shares of Express Scripts 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 - 2015 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. | , Celgene Corp , and AbbVie , so let's take a closer look. 3: AbbVie Gilead Sciences' specialty drug success has been tied to new drug launches, and Celgene's has come thanks to an approval for a new indication, but AbbVie's specialty drug growth is due to Humira's long-standing dominance as a treatment for autoimmune disease. While the upcoming competition means specialty drug spending trends for autoimmune drugs may not fuel AbbVie's growth for too many more years, AbbVie did recently acquire Pharmacyclics to get its hands on Imbruvica, a fast-growing blood cancer drug with sales of roughly $500 million last year -- its first year on the market. | 3: AbbVie Gilead Sciences' specialty drug success has been tied to new drug launches, and Celgene's has come thanks to an approval for a new indication, but AbbVie's specialty drug growth is due to Humira's long-standing dominance as a treatment for autoimmune disease. , Celgene Corp , and AbbVie , so let's take a closer look. While the upcoming competition means specialty drug spending trends for autoimmune drugs may not fuel AbbVie's growth for too many more years, AbbVie did recently acquire Pharmacyclics to get its hands on Imbruvica, a fast-growing blood cancer drug with sales of roughly $500 million last year -- its first year on the market. | 3: AbbVie Gilead Sciences' specialty drug success has been tied to new drug launches, and Celgene's has come thanks to an approval for a new indication, but AbbVie's specialty drug growth is due to Humira's long-standing dominance as a treatment for autoimmune disease. While the upcoming competition means specialty drug spending trends for autoimmune drugs may not fuel AbbVie's growth for too many more years, AbbVie did recently acquire Pharmacyclics to get its hands on Imbruvica, a fast-growing blood cancer drug with sales of roughly $500 million last year -- its first year on the market. , Celgene Corp , and AbbVie , so let's take a closer look. | While the upcoming competition means specialty drug spending trends for autoimmune drugs may not fuel AbbVie's growth for too many more years, AbbVie did recently acquire Pharmacyclics to get its hands on Imbruvica, a fast-growing blood cancer drug with sales of roughly $500 million last year -- its first year on the market. , Celgene Corp , and AbbVie , so let's take a closer look. 3: AbbVie Gilead Sciences' specialty drug success has been tied to new drug launches, and Celgene's has come thanks to an approval for a new indication, but AbbVie's specialty drug growth is due to Humira's long-standing dominance as a treatment for autoimmune disease. |
27018.0 | 2015-03-15 00:00:00 UTC | Should Gilead Sciences Inc.’s Slowing Growth Concern Investors? | ABBV | https://www.nasdaq.com/articles/should-gilead-sciences-incs-slowing-growth-concern-investors-2015-03-15 | nan | nan | The failure of the market to buy into Gilead Sciences ' amazing growth story is a flat-out mystery in the eyes of many investors. Despite growing product sales by an astounding 127% and non-GAAP earnings per share by 297% last year, the stock has now dropped by double-digits from its 52-week high:
Adding to this perplexing situation, Gilead's shares appear to be some of the cheapest in all of biotech, with a trailing 12-month P/E ratio of 13.4. Most of Gilead's closest biotech peers are garnering significantly higher premiums, as shown by the table below.
One possible explanation for this disconnect between Gilead's strong fundamentals and its somewhat troubling stock performance is that the company is projecting a marked decline in revenue growth this year. Management guided for revenue to rise by 6.1% to 10.2% in 2015 -- a far cry from that monstrous 127% spike in 2014.
As Gilead could still post double-digit sales growth in 2015, let's consider if this is indeed a major reason for the stock's weak performance of late, and whether investors should be concerned.
What's key here is that Gilead's management tends to be conservative when it comes to providing annual guidance, and the early script data, again, suggests the Street will have egg on its face for doubting the company's hep C franchise.
In light of Gilead's recent history, don't be surprised if the biotech exceeds the high end of its sales estimates over the course of the year. Unless something unexpected happens in the interim, or the entire market simply tanks, Gilead's shares are therefore probably primed for another 20% to 30% gain in 2015. So any concerns over this top biotech's tapering growth prospects come off as unwarranted, to put it mildly.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Should Gilead Sciences Inc.'s Slowing Growth Concern Investors? originally appeared on Fool.com.
George Budwell owns shares of AbbVie Inc. and Gilead Sciences. The Motley Fool recommends Celgene, Express Scripts, and Gilead Sciences. The Motley Fool owns shares of Express Scripts 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 - 2015 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. | George Budwell owns shares of AbbVie Inc. and Gilead Sciences. One possible explanation for this disconnect between Gilead's strong fundamentals and its somewhat troubling stock performance is that the company is projecting a marked decline in revenue growth this year. What's key here is that Gilead's management tends to be conservative when it comes to providing annual guidance, and the early script data, again, suggests the Street will have egg on its face for doubting the company's hep C franchise. | George Budwell owns shares of AbbVie Inc. and Gilead Sciences. The article Should Gilead Sciences Inc.'s Slowing Growth Concern Investors? The Motley Fool recommends Celgene, Express Scripts, and Gilead Sciences. | George Budwell owns shares of AbbVie Inc. and Gilead Sciences. Despite growing product sales by an astounding 127% and non-GAAP earnings per share by 297% last year, the stock has now dropped by double-digits from its 52-week high: Adding to this perplexing situation, Gilead's shares appear to be some of the cheapest in all of biotech, with a trailing 12-month P/E ratio of 13.4. The Motley Fool recommends Celgene, Express Scripts, and Gilead Sciences. | George Budwell owns shares of AbbVie Inc. and Gilead Sciences. The article Should Gilead Sciences Inc.'s Slowing Growth Concern Investors? The Motley Fool owns shares of Express Scripts and Gilead Sciences. |
27019.0 | 2015-03-15 00:00:00 UTC | Is This Number the Scariest Healthcare Statistic Out There? | ABBV | https://www.nasdaq.com/articles/number-scariest-healthcare-statistic-out-there-2015-03-15 | nan | nan | If left unchecked, drug spending growth of this magnitude could be unsustainable. In 2013, IMS Health reported that U.S. spending on medicine clocked in at about $329 billion.
If spending increases by 13.1% per year over the next 20 years, the amount spent annually on prescription medicine would surpass $3.8 trillion (yes, with a "t").
Taking matters into hand
Such a surge in drug spending would undeniably put patients at risk. Medical costs are the biggest reason for personal bankruptcy, particularly among patients with diseases like HIV and cancer.
In an attempt to blunt the risk to the system posed by runaway drug costs, pharmacy benefit managers, or PBMs, like Express Scripts and CVS Health -- the two largest PBMs -- are rethinking how they pay for drugs.
In December, Express Scripts negotiated a steep discount to AbbVie 's new hepatitis C drug Viekira Pak by offering exclusivity. In January, CVS Health similarly orchestrated a discount for Gilead Sciences ' competing hepatitis C drugs, also in exchange for exclusivity. Express Scripts estimates that its deal with AbbVie will save its clients $1 billion annually.
In addition to more aggressive price contracts with drugmakers, healthcare payers are also developing programs that can increase patient adherence to medicine to lower the risk of costly future healthcare events, as well as programs to increase the use of generic alternatives.
PBM programs that increase the use of lower cost generics could prove to be critical. Despite biologics' difficult-to-copy nature, technology advances are helping generic drugmakers develop biosimilars. While not exact copies, these biosimilars deliver similar efficacy to their brand name counterparts. So far, biosimilars have been a bigger story in Europe than in the U.S.; however, the FDA approved its first biosimilar this month when it gave Novartis ' Sandoz unit the go-ahead to begin marketing its biosimilar of the top-selling cancer drug Neupogen. That approval is likely to be the first of many over the coming years.
Looking ahead
The financial stakes are high for patients and drugmakers. If prices are too low, it could force drug developers to focus only on diseases that offer the biggest payoff. That could derail advances in a range of orphan diseases. However, if prices for medicine continue to grow at this rate, it's unlikely that the system will be able to afford it. Clearly, a middle ground is not only necessary, but in the best interest of everyone. Finding that middle ground, however, may remain difficult.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Is This Number the Scariest Healthcare Statistic Out There? 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 or may not have positions in the companies mentioned. The Motley Fool recommends CVS Health, Express Scripts, and Gilead Sciences. The Motley Fool owns shares of Express Scripts 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 - 2015 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 December, Express Scripts negotiated a steep discount to AbbVie 's new hepatitis C drug Viekira Pak by offering exclusivity. Express Scripts estimates that its deal with AbbVie will save its clients $1 billion annually. In January, CVS Health similarly orchestrated a discount for Gilead Sciences ' competing hepatitis C drugs, also in exchange for exclusivity. | In December, Express Scripts negotiated a steep discount to AbbVie 's new hepatitis C drug Viekira Pak by offering exclusivity. Express Scripts estimates that its deal with AbbVie will save its clients $1 billion annually. In addition to more aggressive price contracts with drugmakers, healthcare payers are also developing programs that can increase patient adherence to medicine to lower the risk of costly future healthcare events, as well as programs to increase the use of generic alternatives. | In December, Express Scripts negotiated a steep discount to AbbVie 's new hepatitis C drug Viekira Pak by offering exclusivity. Express Scripts estimates that its deal with AbbVie will save its clients $1 billion annually. In an attempt to blunt the risk to the system posed by runaway drug costs, pharmacy benefit managers, or PBMs, like Express Scripts and CVS Health -- the two largest PBMs -- are rethinking how they pay for drugs. | In December, Express Scripts negotiated a steep discount to AbbVie 's new hepatitis C drug Viekira Pak by offering exclusivity. Express Scripts estimates that its deal with AbbVie will save its clients $1 billion annually. In addition to more aggressive price contracts with drugmakers, healthcare payers are also developing programs that can increase patient adherence to medicine to lower the risk of costly future healthcare events, as well as programs to increase the use of generic alternatives. |
27020.0 | 2015-03-12 00:00:00 UTC | Salix Up on Endo Proposal Outstripping Valeant Offer - Analyst Blog | ABBV | https://www.nasdaq.com/articles/salix-up-on-endo-proposal-outstripping-valeant-offer-analyst-blog-2015-03-12 | nan | nan | Salix Pharmaceuticals Ltd.SLXP gained approximately 7% after the company announced that it has received an unsolicited proposal from Endo International ENDP . Endo has proposed to acquire all outstanding shares of common stock of Salix for a combination of shares (1.4607 of Endo common stock) and cash ($45.00 per share of common stock of Salix). The transaction is valued at $175.00 per Salix share.
Endo expects to close the transaction in the second quarter of 2015, subject to Salix's decision. Endo is confident of obtaining regulatory and shareholder approvals.
Endo's proposal represents an approximate 11% premium over the price offered by Valeant Pharmaceuticals International, Inc. VRX as per its merger agreement. We remind investors that last month, Valeant announced that it has entered into an agreement to acquire Salix for $158.00 per share in cash, amounting to a total enterprise value of approximately $14.5 billion (read more: Valeant Pharmaceuticals Earnings Eclipsed by the Salix Deal ).
How Does Endo Stand to Gain?
Salix is a leader in the U.S. gastrointestinal market with a wide variety of drugs such as Xifaxan 550 (reduction in the risk of overt hepatic encephalopathy recurrence in adults), Relistor (opioid-induced constipation for adults suffering from chronic non-cancer pain), Uceris (control of mild or moderate ulcerative colitis) and Apriso (maintenance of remission of ulcerative colitis in adults).
We note that Salix has been witnessing inventory issues for quite sometime which affected the company's fourth-quarter results negatively. However, Salix is actively working on reducing wholesaler inventory levels.
Endo expects the transaction to be accretive in the first year after completing the deal and to be accretive by 15-20% in 2017. The company has been quite aggressive on the acquisition front in the last two years with the latest being the acquisition of Auxilium Pharmaceuticals. The Salix deal is in line with the company's strategy.
The health care sector has been witnessing a flurry of mergers and acquisitions and licensing deals over the past few quarters. These deals show no signs of slowing down. Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics PCYC in a deal valued at approximately $21 billion (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ).
Endo carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Valeant, carrying a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics PCYC in a deal valued at approximately $21 billion (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Salix Pharmaceuticals Ltd.SLXP gained approximately 7% after the company announced that it has received an unsolicited proposal from Endo International ENDP . | Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics PCYC in a deal valued at approximately $21 billion (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Endo has proposed to acquire all outstanding shares of common stock of Salix for a combination of shares (1.4607 of Endo common stock) and cash ($45.00 per share of common stock of Salix). | Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics PCYC in a deal valued at approximately $21 billion (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). Endo has proposed to acquire all outstanding shares of common stock of Salix for a combination of shares (1.4607 of Endo common stock) and cash ($45.00 per share of common stock of Salix). | Earlier this month, AbbVie ABBV entered into an agreement to acquire Pharmacyclics PCYC in a deal valued at approximately $21 billion (read more: Pharmacyclics Set to Be Acquired by AbbVie for $21B ). Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report SALIX PHARM-LTD (SLXP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Salix Pharmaceuticals Ltd.SLXP gained approximately 7% after the company announced that it has received an unsolicited proposal from Endo International ENDP . |
27021.0 | 2015-03-11 00:00:00 UTC | Will Repros (RPRX) Miss Estimates This Earnings Season? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/will-repros-rprx-miss-estimates-this-earnings-season-analyst-blog-2015-03-11 | nan | nan | Repros Therapeutics Inc.RPRX is expected to report fourth-quarter 2014 results on Mar 12. Last quarter, the company had posted a positive earnings surprise of 17.95%. Let's see how things are shaping up for this announcement.
Factors at Play This Quarter
Repros, a development-stage biopharmaceutical company, focused on the development of a potential treatment for hormonal and reproductive system disorders, currently has two candidates in its pipeline: Androxal (secondary hypogonadism) and Proellex (uterine fibroids and endometriosis).
With Repros not having any approved product in its portfolio, investor focus should remain on the approval status of Androxal and pipeline updates.
Last month, Repros submitted a new drug application to the FDA for Androxal. The company is looking to get Androxal approved for the treatment of secondary hypogonadism in overweight men wishing to restore normal testicular function. Repros intends to submit a regulatory application in the EU in the first quarter of 2016. The company is seeking New Chemical Entity status for the product.
Meanwhile, the company is conducting a couple of phase IIb efficacy studies on Proellex for the treatment of uterine fibroids in women who experience heavy vaginal bleeding due to these benign tumors. Currently, Repros is looking for partnerships for funding its pipeline development activities and commercialization of its products, if approved.
We note that AbbVie's ABBV AndroGel is one of the currently available treatments for hypogonadism in the market.
Earnings Whispers?
Our proven model does not conclusively show that Repros is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: The Earnings ESP for Repros is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are a loss of 34 cents per share.
Zacks Rank: Repros carries a Zacks Rank #3. Repros' Zacks Rank #3 when combined with an ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the broader health care sector you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Aratana Therapeutics, Inc. PETX has an earnings ESP of +10.00% and carries a Zacks Rank #3. It is scheduled to report fourth-quarter results on Mar 13.
Catalyst Pharmaceutical Partners Inc. CPRX has an earnings ESP of +14.29% and carries a Zacks Rank #3. It is expected to report fourth-quarter results on Mar 18.
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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 AbbVie's ABBV AndroGel is one of the currently available treatments for hypogonadism in the market. Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report CATALYST PHARMA (CPRX): Free Stock Analysis Report ARATANA THERAP (PETX): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play This Quarter Repros, a development-stage biopharmaceutical company, focused on the development of a potential treatment for hormonal and reproductive system disorders, currently has two candidates in its pipeline: Androxal (secondary hypogonadism) and Proellex (uterine fibroids and endometriosis). | Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report CATALYST PHARMA (CPRX): Free Stock Analysis Report ARATANA THERAP (PETX): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie's ABBV AndroGel is one of the currently available treatments for hypogonadism in the market. Factors at Play This Quarter Repros, a development-stage biopharmaceutical company, focused on the development of a potential treatment for hormonal and reproductive system disorders, currently has two candidates in its pipeline: Androxal (secondary hypogonadism) and Proellex (uterine fibroids and endometriosis). | Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report CATALYST PHARMA (CPRX): Free Stock Analysis Report ARATANA THERAP (PETX): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie's ABBV AndroGel is one of the currently available treatments for hypogonadism in the market. Zacks Rank: Repros carries a Zacks Rank #3. | We note that AbbVie's ABBV AndroGel is one of the currently available treatments for hypogonadism in the market. Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report CATALYST PHARMA (CPRX): Free Stock Analysis Report ARATANA THERAP (PETX): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play This Quarter Repros, a development-stage biopharmaceutical company, focused on the development of a potential treatment for hormonal and reproductive system disorders, currently has two candidates in its pipeline: Androxal (secondary hypogonadism) and Proellex (uterine fibroids and endometriosis). |
27022.0 | 2015-03-11 00:00:00 UTC | Going after Vicodin: biotech KemPharm files for a $58 million IPO | ABBV | https://www.nasdaq.com/articles/going-after-vicodin-biotech-kempharm-files-58-million-ipo-2015-03-11 | nan | nan | KemPharm, which is developing an abuse-deterrent version of Vicodin, filed on Wednesday with the SEC to raise up to $58 million in an initial public offering.
The Coralville, IA-based company, which was founded in 2006, plans to list on the NASDAQ under the symbol KMPH. KemPharm initially filed confidentially on December 19, 2014. Cowen & Company and RBC Capital Markets are the joint bookrunners on the deal. No pricing terms were disclosed.
The article Going after Vicodin: biotech KemPharm files for a $58 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | KemPharm, which is developing an abuse-deterrent version of Vicodin, filed on Wednesday with the SEC to raise up to $58 million in an initial public offering. The Coralville, IA-based company, which was founded in 2006, plans to list on the NASDAQ under the symbol KMPH. Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. | The article Going after Vicodin: biotech KemPharm files for a $58 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The article Going after Vicodin: biotech KemPharm files for a $58 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The article Going after Vicodin: biotech KemPharm files for a $58 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned. |
27023.0 | 2015-03-11 00:00:00 UTC | Express Scripts Issues Report on Prescription Drug Spending - Analyst Blog | ABBV | https://www.nasdaq.com/articles/express-scripts-issues-report-on-prescription-drug-spending-analyst-blog-2015-03-11 | nan | nan | Branded drugs are becoming increasingly expensive due to double-digit brand inflation along with continued rise in the price of specialty drugs.
Hepatitis C (HCV) treatments have remained in focus in 2015 so far, a trend continuing from 2014. In particular, the pricing dynamics of these expensive treatments is worrisome.
As per new data released from pharmacy benefit manager (PBM) Express Scripts Holding Co. ESRX , new expensive HCV therapies coupled with the exploitation of loopholes for compounded medications, fueled a phenomenal 13.1% surge in drug spending in the U.S. in 2014. HCV and compounded medications accounted for more than half of the total increase in expenditure.
Excluding these therapies, however, the increase recorded was 6.4%. Meanwhile, specialty medications such as biologics, along with treatments for multiple sclerosis and cancer, accounted for over 31% of the total drug spending in 2014.
HCV medications accounted for 45% of the total increase in specialty expenditure even though it had the second-lowest prescription volume among the top 10 specialty conditions. This clearly brings pricing into focus. In addition, patients in the U.S. spent 743% more on HCV treatments in 2014 compared with 2013.
Gilead Sciences (GILD) is a key player in the HCV market with drugs like Sovaldi and Harvoni.
AbbVie Inc.'s ABBV all-oral, interferon-free therapy with/without ribavirin, Viekira Pak was approved in Dec 2014 by the FDA and the company currently expects global annualized sales run rate of more than $3 billion dollars for Viekira Pak by 2015-end.
We remind investors that Express Scripts has added AbbVie's Viekira Pak to its formulary and offers it as an exclusive option for GT 1 HCV patients, effective Jan 1, 2015. Express Scripts expects the treatment to result in savings of $1 billion in 2015.
Express Scripts' decision to choose low-priced Viekira Pak over its expensive counterparts like Gilead Sciences' GILD Sovaldi and Harvoni, and Johnson & Johnson's JNJ Olysio has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs.
While high rates of response and tolerability coupled with low discontinuation rates should help Viekira Pak gain market share, pricing will also play an equally important role.
On the other hand, new treatments for HCV are in similar focus. Achillion Pharmaceuticals ACHN is currently evaluating its experimental HCV treatment, ACH-3102. The company announced positive interim results from the study in Feb 2015. AbbVie is also working on its next-generation HCV program which includes ABT-493, a potent protease inhibitor, and ABT-530, a new NS5A inhibitor.
In view of these factors, Express Scripts believes that there is an urgent need to tightly manage the pharmacy benefit, implement smarter formularies, control compounded medication use and offer appropriate clinical support to ensure patients receive best possible treatments at better prices.
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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 Express Scripts has added AbbVie's Viekira Pak to its formulary and offers it as an exclusive option for GT 1 HCV patients, effective Jan 1, 2015. AbbVie Inc.'s ABBV all-oral, interferon-free therapy with/without ribavirin, Viekira Pak was approved in Dec 2014 by the FDA and the company currently expects global annualized sales run rate of more than $3 billion dollars for Viekira Pak by 2015-end. Express Scripts' decision to choose low-priced Viekira Pak over its expensive counterparts like Gilead Sciences' GILD Sovaldi and Harvoni, and Johnson & Johnson's JNJ Olysio has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs. | Express Scripts' decision to choose low-priced Viekira Pak over its expensive counterparts like Gilead Sciences' GILD Sovaldi and Harvoni, and Johnson & Johnson's JNJ Olysio has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs. Click to get this free report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.'s ABBV all-oral, interferon-free therapy with/without ribavirin, Viekira Pak was approved in Dec 2014 by the FDA and the company currently expects global annualized sales run rate of more than $3 billion dollars for Viekira Pak by 2015-end. | Express Scripts' decision to choose low-priced Viekira Pak over its expensive counterparts like Gilead Sciences' GILD Sovaldi and Harvoni, and Johnson & Johnson's JNJ Olysio has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs. Click to get this free report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.'s ABBV all-oral, interferon-free therapy with/without ribavirin, Viekira Pak was approved in Dec 2014 by the FDA and the company currently expects global annualized sales run rate of more than $3 billion dollars for Viekira Pak by 2015-end. | AbbVie Inc.'s ABBV all-oral, interferon-free therapy with/without ribavirin, Viekira Pak was approved in Dec 2014 by the FDA and the company currently expects global annualized sales run rate of more than $3 billion dollars for Viekira Pak by 2015-end. We remind investors that Express Scripts has added AbbVie's Viekira Pak to its formulary and offers it as an exclusive option for GT 1 HCV patients, effective Jan 1, 2015. Express Scripts' decision to choose low-priced Viekira Pak over its expensive counterparts like Gilead Sciences' GILD Sovaldi and Harvoni, and Johnson & Johnson's JNJ Olysio has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs. |
27024.0 | 2015-03-10 00:00:00 UTC | WisdomTree LargeCap Dividend Fund Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/wisdomtree-largecap-dividend-fund-experiences-big-outflow-2015-03-10 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $136.5 million dollar outflow -- that's a 5.8% decrease week over week (from 31,650,000 to 29,800,000). Among the largest underlying components of DLN, in trading today ConocoPhillips (Symbol: COP) is down about 1.2%, McDonald's Corp (Symbol: MCD) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average:
Looking at the chart above, DLN's low point in its 52 week range is $65.70 per share, with $75.56 as the 52 week high point - that compares with a last trade of $73.06. 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 DLN, in trading today ConocoPhillips (Symbol: COP) is down about 1.2%, McDonald's Corp (Symbol: MCD) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $136.5 million dollar outflow -- that's a 5.8% decrease week over week (from 31,650,000 to 29,800,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of DLN, in trading today ConocoPhillips (Symbol: COP) is down about 1.2%, McDonald's Corp (Symbol: MCD) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $65.70 per share, with $75.56 as the 52 week high point - that compares with a last trade of $73.06. 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 DLN, in trading today ConocoPhillips (Symbol: COP) is down about 1.2%, McDonald's Corp (Symbol: MCD) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $136.5 million dollar outflow -- that's a 5.8% decrease week over week (from 31,650,000 to 29,800,000). For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $65.70 per share, with $75.56 as the 52 week high point - that compares with a last trade of $73.06. | Among the largest underlying components of DLN, in trading today ConocoPhillips (Symbol: COP) is down about 1.2%, McDonald's Corp (Symbol: MCD) is off about 0.9%, and AbbVie Inc. (Symbol: ABBV) is lower by about 1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $65.70 per share, with $75.56 as the 52 week high point - that compares with a last trade of $73.06. 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). |
27025.0 | 2015-03-10 00:00:00 UTC | In Case You Missed It, Gilead Sciences, Inc.’s “Bad” News Is Actually Great | ABBV | https://www.nasdaq.com/articles/case-you-missed-it-gilead-sciences-incs-bad-news-actually-great-2015-03-10 | nan | nan | Source: Gilead Sciences, via Google Maps
The FDA approval in December of AbbVie's hepatitis C therapy Viekira Pak and the ensuing price cuts by AbbVie Inc and market leader Gilead Sciences to win market share are weighing down Gilead Sciences' share price. Although both companies have indicated that they've chopped prices to sure up customers, investors may want to start thinking about lower prices as a good thing, rather than a bad thing.
Tapping into a huge market
When Gilead Sciences launched its oral hepatitis C drug Sovaldi in December 2013, it revolutionized hepatitis C treatment.
Previously, hepatitis C patients were treated with side-effect laden cocktails that included peg interferon and ribavirin, lasted as long as 48 weeks, and offered cure rates that were less than ideal at between 50%-80%.
Sovaldi's once-daily, 12-week dosing didn't eliminate ribavirin altogether, but it did cast aside peg interferon for most patients, while delivering cure rates north of 90%. As a result, doctors eagerly embraced Sovaldi, turning it into the fastest drug to ever achieve billion dollar blockbuster status as it made its way to delivering a truly astounding $10.3 billion in full year sales last year.
Sovaldi's sales performance is truly remarkable in its own right, but Gilead Sciences strengthened its hepatitis C leadership in October when the company won the FDA go-ahead for its next-generation hepatitis C drug Harvoni.
Source: Gilead Sciences,
Harvoni, which is a Sovaldi plus ledipasvir mash-up, is used to treat hepatitis C genotype 1 patients. Importantly, the drug removes the need for both peg interferon and ribavirin while offering cure rates in the high 90% range. Due to its easier dosing regimen and rock-solid efficacy, Harvoni notched more than $2 billion in sales during its first quarter on the market.
As a result, GIlead Sciences' Sovaldi plus Harvoni sales totaled an eye-popping $12.4 billion last year -- and that's with Harvoni having only a single quarter on the market. That's quite an achievement, but I believe that, despite this year's price cuts, the long term opportunity for sales of these drugs could be significantly higher.
During Gilead Sciences' fourth quarter conference call, management indicated that its gross to net price discount on its hepatitis C drugs will grow from 22% last year to to 46% this year.
From the conference call, "This increase is a result of the recent and ongoing round of negotiations with payers and PBMs and includes the shift toward a higher proportion of public payers and higher prescribing of Harvoni among those payers with rebates to payers such as the Medicaids and the VA exceeding 50%."
On the surface, that admission of price cuts sounds horrible to investors. After all, why would shareholders be anything other than upset about discounting that could imperil Gilead Sciences' margins?
To answer that question, investors need to consider the big picture.
It's estimated that there are roughly 3 million people with hepatitis C in the United States. There's another 9 million Europeans that are diagnosed with the disease, and there's more than 1 million Japanese with hepatitis C. That means that the total addressable patient population for hepatitis C drugs is roughly 13 million people in developed markets -- where pricing power is best.
How many of these 13 million people were treated by Gilead Sciences drugs last year? Just 140,000 in the U.S. and a little more than 30,000 in Europe.
That's not a lot of people given the size of the market.
The reason that so few people were treated last year is because of Sovaldi and Harvoni's sky-high prices. Sovaldi, which clocks in at $84,000, and Harvoni, which has a price tag of $94,500, were so expensive that healthcare payers sought out every opportunity to limit their use.
In order to negotiate Sovaldi and Harvoni prices lower, healthcare payers ended up making concessions that include exclusivity and agreements that make these drugs much more widely available. As a result, there should be far less rationing of these hepatitis C drugs in 2015, a point that was also highlighted by Gilead Sciences' Executive Vice President Paul Carter when he said that "high levels of rebates are tied directly to opening up access and streamlining the process of starting a patient on therapy."
Looking ahead
Hepatitis C is an important disease that affects many people and the more quickly we can get revolutionary medicine to patients, the better it will be for everyone. While I don't have a projection for how many patients will ultimately be treated with Sovaldi, or Harvoni this year, I am quite confident that the number will total far more people than were treated in 2014.
For its part, Gilead Sciences estimates that it could treat as many as 250,000 patients this year. If that's true, then I think that Gilead Sciences hepatitis C drugs will have a much bigger and longer-lasting impact on the company's profitability than if they had remained more exclusively rationed. For that reason, I think that this pricing "bad news" may indeed end up being very good news.
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The article In Case You Missed It, Gilead Sciences, Inc.'s "Bad" News Is Actually Great 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 or may not have positions in the companies mentioned. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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. | Source: Gilead Sciences, via Google Maps The FDA approval in December of AbbVie's hepatitis C therapy Viekira Pak and the ensuing price cuts by AbbVie Inc and market leader Gilead Sciences to win market share are weighing down Gilead Sciences' share price. Previously, hepatitis C patients were treated with side-effect laden cocktails that included peg interferon and ribavirin, lasted as long as 48 weeks, and offered cure rates that were less than ideal at between 50%-80%. As a result, there should be far less rationing of these hepatitis C drugs in 2015, a point that was also highlighted by Gilead Sciences' Executive Vice President Paul Carter when he said that "high levels of rebates are tied directly to opening up access and streamlining the process of starting a patient on therapy." | Source: Gilead Sciences, via Google Maps The FDA approval in December of AbbVie's hepatitis C therapy Viekira Pak and the ensuing price cuts by AbbVie Inc and market leader Gilead Sciences to win market share are weighing down Gilead Sciences' share price. As a result, GIlead Sciences' Sovaldi plus Harvoni sales totaled an eye-popping $12.4 billion last year -- and that's with Harvoni having only a single quarter on the market. In order to negotiate Sovaldi and Harvoni prices lower, healthcare payers ended up making concessions that include exclusivity and agreements that make these drugs much more widely available. | Source: Gilead Sciences, via Google Maps The FDA approval in December of AbbVie's hepatitis C therapy Viekira Pak and the ensuing price cuts by AbbVie Inc and market leader Gilead Sciences to win market share are weighing down Gilead Sciences' share price. Sovaldi's sales performance is truly remarkable in its own right, but Gilead Sciences strengthened its hepatitis C leadership in October when the company won the FDA go-ahead for its next-generation hepatitis C drug Harvoni. As a result, GIlead Sciences' Sovaldi plus Harvoni sales totaled an eye-popping $12.4 billion last year -- and that's with Harvoni having only a single quarter on the market. | Source: Gilead Sciences, via Google Maps The FDA approval in December of AbbVie's hepatitis C therapy Viekira Pak and the ensuing price cuts by AbbVie Inc and market leader Gilead Sciences to win market share are weighing down Gilead Sciences' share price. As a result, GIlead Sciences' Sovaldi plus Harvoni sales totaled an eye-popping $12.4 billion last year -- and that's with Harvoni having only a single quarter on the market. How many of these 13 million people were treated by Gilead Sciences drugs last year? |
27026.0 | 2015-03-10 00:00:00 UTC | Cash In on One of Our Biggest Biotech Winners | ABBV | https://www.nasdaq.com/articles/cash-one-our-biggest-biotech-winners-2015-03-10 | nan | nan | Back in early April 2012, in a special report for Private Briefing readers called "The Biotech Buyout Binge," I explained that we would start seeing a slew of takeovers - engineered by cash-rich biopharmaceutical firms desperate to replace blockbusters that were losing patent protection.
We were right about the so-called "patent cliff." Here's how to play one of our biggest biotech winners now.
A Big Deal
And that's not all we were right about: One of the stocks we identified in that special report - Pharmacyclics Inc. (Nasdaq: PCYC ) - ended up being a buyout target, just as we predicted.
And Pharmacyclics is also the biggest winner we've brought you in Private Briefing 's three-and-half-year history - 818%.
Here's what happened.
On March 4, AbbVie Inc. (NYSE: ABBV ) - another Private Briefing recommendation - stunned investors by announcing it was buying Pharmacyclics for $21 billion.
But here's the part that matters to you: AbbVie is offering cash and stock worth $261.25 a share - a full 818% more than our original recommendation price of $28.47.
Before we sit back to savor the huge windfall, let's take a look at the actual deal.
Shares of Pharmacyclics - already up more than 500% - have skyrocketed even more in recent weeks on speculation that the blood-cancer drug-producing company had hit the auction block.
But the potential suitors were reported to be Novartis AG (ADR) (NYSE: NVS ) or Johnson & Johnson (NYSE: JNJ ), whose Janssen Biotech Inc. unit is actually partners on the Pharmacyclics blood-cancer drug Imbruvica. That partnership deal gives Pharmacyclics both milestone payments and 50% revenue sharing, but only assesses the company 40% of the costs.
But AbbVie, a Private Briefing winner whose shares have zoomed 74% since we recommended it as part of a "spin-off" combo play with Abbott Laboratories (NYSE: ABT ), was the suitor that emerged to snap up Pharmacyclics as a biotech prize.
The boards of directors of both companies have signed off on the deal, which is expected to close later this year.
AbbVie made this deal because it needs to lessen its reliance on Humira, its crown jewel anti-inflammatory drug and a true "blockbuster" with $12.5 billion of sales in 2014.
The company loses patent protection for Humira next year. And while AbbVie CEO Richard Gonzalez says there's an updated version of the drug - with clear advantages over the original - that should help beat back looming, cheaper "biosimilar" knockoffs, there's no guarantee the patent protection won't be lost.
Gonzalez maintains the $21 billion Pharmacyclics deal isn't just about diversifying away from Humira and finding future growth for his firm; Imbruvica also will provide a "patent cliff" buffer.
Imbruvica is already a blockbuster. It generated $548 million in revenue in the fourth quarter and is expected to go to at least to $5 billion a year at its peak - and maybe more. Indeed, the drug has received four indications in less than 15 months - the latest being for Waldenstrom's macroglobulinemia ( WM ), a rare form of cancer that's also known aslymphoplasmacytic lymphoma.
We've reported on all these U.S. Food and Drug Administration (FDA) approvals, including the last one, which we told Private Briefing readers about in early February.
The great thing about this stock is that you didn't even have to act on our initial "buy" recommendation to have really cashed in - we re-recommended Pharmacyclics a number of times after we first told you about it.
On May 16, 2012, just six weeks after our initial April 2 recommendation - with the stock still only trading at $29.31 a share - we recommended it again.
And we also re-recommended Pharmacyclics at $87 a share in the Feb. 15, 2013, report "This Biotech Is Gaining Groupies at a Stunning Rate."
We also re-recommended it in a Private Briefing report back in early December - when the stock was trading at about $139. And we brought it back to you one last time - in our Jan. 15 report "This Drug Just Gained 'Blockbuster' Status - and There's Still Time to Hitch a Ride," when the stock was still at only $143.25.
Finally, we actually brought it back before you one last time - on Monday - when the stock was still at only $221 a share.
That's not boasting: In all honesty, it's the great feeling that we made our readers some real money. In fact, following our initial recommendation, as the stock doubled for the first time, and continued its run, I heard from lots of you who'd hitched the ride and were cashing in.
That brings us to the deal itself - and what we think you should do.
Take This Next Step on AbbVie
AbbVie will pay $261.25 per share in cash and stock, a 13% premium to Pharmacyclics' closing price on Wednesday. The deal is structured as 58% cash and 42% AbbVie common stock. Pharmacyclics stockholders can elect cash, AbbVie stock or a combination - although that is subject to "proration," AbbVie said in a statement.
Our advice: With the stock trading at about $254 a share as I write this, it's not worth hanging around for the last few dollars. AbbVie is paying top dollar for Pharmacyclics, and there's always the chance the deal could fall apart - which is just what happened for AbbVie's proposed buyout of Shire Plc. (Nasdaq ADR: SHPG ) last year.
Profits in hand are worth more than slightly greater profits in the future. Plus, you can take this cash and redeploy it into another profit opportunity - like those we bring you here each week.
This is the 12th "deal stock" we've brought you since launching Private Briefing . Indeed, we've brought you two this week. In addition to the Pharmacyclics buyout, you also profited from the early week deal that has NXP Semiconductors NV (Nasdaq: NXPI ) spending $11.8 billion to buy out Freescale Semiconductor Ltd. (NYSE: FSL ).
Other buyout stocks have included LSI Corp. (Nasdaq: LSI ), Berry Petroleum Co. LLC (NYSE: BRY ), Crosstex Energy Inc. (Nasdaq: XTXI ), Pentair Plc. (NYSE: PNR ), Nexen Energy ULC (NYSE: NXY ), CNH Global, Aurizon Mines Ltd., Trius Therapeutics Inc., Astex Pharmaceuticals Inc., and Smithfield Foods Inc.
We love hearing from both our Private Briefing and Money Morning readers. If you've profited from any of the above we'd love to hear from you at PrivateBriefing@MoneyMapPress.com .
[Editor's Note: Unless otherwise directed, as we've done today, we recommend investors employ a 25% "trailing stop" on all holdings.]
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But AbbVie, a Private Briefing winner whose shares have zoomed 74% since we recommended it as part of a "spin-off" combo play with Abbott Laboratories (NYSE: ABT ), was the suitor that emerged to snap up Pharmacyclics as a biotech prize. And while AbbVie CEO Richard Gonzalez says there's an updated version of the drug - with clear advantages over the original - that should help beat back looming, cheaper "biosimilar" knockoffs, there's no guarantee the patent protection won't be lost. On March 4, AbbVie Inc. (NYSE: ABBV ) - another Private Briefing recommendation - stunned investors by announcing it was buying Pharmacyclics for $21 billion. | Take This Next Step on AbbVie AbbVie will pay $261.25 per share in cash and stock, a 13% premium to Pharmacyclics' closing price on Wednesday. On March 4, AbbVie Inc. (NYSE: ABBV ) - another Private Briefing recommendation - stunned investors by announcing it was buying Pharmacyclics for $21 billion. But here's the part that matters to you: AbbVie is offering cash and stock worth $261.25 a share - a full 818% more than our original recommendation price of $28.47. | But AbbVie, a Private Briefing winner whose shares have zoomed 74% since we recommended it as part of a "spin-off" combo play with Abbott Laboratories (NYSE: ABT ), was the suitor that emerged to snap up Pharmacyclics as a biotech prize. Take This Next Step on AbbVie AbbVie will pay $261.25 per share in cash and stock, a 13% premium to Pharmacyclics' closing price on Wednesday. On March 4, AbbVie Inc. (NYSE: ABBV ) - another Private Briefing recommendation - stunned investors by announcing it was buying Pharmacyclics for $21 billion. | On March 4, AbbVie Inc. (NYSE: ABBV ) - another Private Briefing recommendation - stunned investors by announcing it was buying Pharmacyclics for $21 billion. But here's the part that matters to you: AbbVie is offering cash and stock worth $261.25 a share - a full 818% more than our original recommendation price of $28.47. But AbbVie, a Private Briefing winner whose shares have zoomed 74% since we recommended it as part of a "spin-off" combo play with Abbott Laboratories (NYSE: ABT ), was the suitor that emerged to snap up Pharmacyclics as a biotech prize. |
27027.0 | 2015-03-09 00:00:00 UTC | Why AbbVie Inc.'s $21 Billion Deal Had To Happen | ABBV | https://www.nasdaq.com/articles/why-abbvie-incs-21-billion-deal-had-happen-2015-03-09 | nan | nan | Looking ahead
Whether or not Imbruvica can deliver on the industry's lofty expectations remains to be seen, but it's certainly positioned for success. A fast launch and the fact that there are more than 50 ongoing trials that could expand its market significantly could mean that this is just the kind of product that AbbVie needs to offset its risk to Humira. Pharmacyclics thinks that Imbruvica's addressable patient population in blood cancer alone could expand from 40,000 today to 374,000 over time. If so, then it seems that Pharmacylics guidance for more than $1 billion in Imbruvica sales this year isn't misplaced. Where the peak for Imbruvica could be remains to be seen, but with a motivated AbbVie at the helm and J&J as a partner, it's probably not wise to bet against its success.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why AbbVie Inc.'s $21 Billion Deal Had To Happen 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 or may not have positions in the companies mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | A fast launch and the fact that there are more than 50 ongoing trials that could expand its market significantly could mean that this is just the kind of product that AbbVie needs to offset its risk to Humira. Where the peak for Imbruvica could be remains to be seen, but with a motivated AbbVie at the helm and J&J as a partner, it's probably not wise to bet against its success. The article Why AbbVie Inc.'s $21 Billion Deal Had To Happen originally appeared on Fool.com. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. A fast launch and the fact that there are more than 50 ongoing trials that could expand its market significantly could mean that this is just the kind of product that AbbVie needs to offset its risk to Humira. Where the peak for Imbruvica could be remains to be seen, but with a motivated AbbVie at the helm and J&J as a partner, it's probably not wise to bet against its success. | A fast launch and the fact that there are more than 50 ongoing trials that could expand its market significantly could mean that this is just the kind of product that AbbVie needs to offset its risk to Humira. Where the peak for Imbruvica could be remains to be seen, but with a motivated AbbVie at the helm and J&J as a partner, it's probably not wise to bet against its success. The article Why AbbVie Inc.'s $21 Billion Deal Had To Happen originally appeared on Fool.com. | A fast launch and the fact that there are more than 50 ongoing trials that could expand its market significantly could mean that this is just the kind of product that AbbVie needs to offset its risk to Humira. Where the peak for Imbruvica could be remains to be seen, but with a motivated AbbVie at the helm and J&J as a partner, it's probably not wise to bet against its success. The article Why AbbVie Inc.'s $21 Billion Deal Had To Happen originally appeared on Fool.com. |
27028.0 | 2015-03-06 00:00:00 UTC | Stock Market News for March 06, 2015 - Market News | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-march-06-2015-market-news-2015-03-06 | nan | nan | Markets snapped a two-day losing streak on Thursday, somewhat boosted by the ECB announcing a trillion-dollar stimulus plan that will kick off on Monday. Benchmarks swung up and down, but mostly stayed in positive territory and had dropped into the red for a very brief period post noon. Higher-than-expected initial claims numbers had offset some gains yesterday. It was the year's second lightest trading session, as investors refrained from betting big bucks ahead of Friday's nonfarm payroll report. The jobs numbers may influence the timing of the Fed's rate hike decision.
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) gained 0.2% to close at 18,135.72. The Standard & Poor's 500 (S&P 500) added just 0.2% to move up to 2,101.04. The tech-laden Nasdaq Composite Index closed at 4,982.81; gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) dropped 1.3% to settle at 14.04. A total of about 5.7 billion shares were traded on Thursday, below the last five sessions' average of 6.5 billion. Advancers outpaced declining stocks on the NYSE. For 53% stocks that advanced, 43% declined.
Markets were somewhat aided by the European Central Bank (ECB) after it announced a 1 trillion euro ($1.1 trillion) bond-buying program. The repurchase is due to start from Monday, Mar 9. As announced in January, ECB will buy government bonds worth 60 billion euros a month through a quantitative easing program. The QE program will continue till Sep 2016. ECB President Mario Draghi said the ECB would purchase these bonds even if they have a negative yield. However, the negative yield should not cross -0.2%, as they need to be within the range of ECB's deposit rate.
The bank also increased growth and inflation targets. Growth estimates were revised up to 1.5%, 1.9% and 2.1% for 2015, 2016 and 2017 respectively. "The substantial, additional easing of our monetary policy stands, supports and reinforces the emergence of more favorable developments of the euro area economy, financial market conditions and the cost of external finance for the private economy have eased further. Borrowing conditions for firms and households have improved considerably," Draghi said.
However, the announcement of the planned commencement of the program from Mar 9 could help markets move only marginally higher. Some analysts said the muted reaction was due to apprehensions over ECB's execution of the plan. Also, as the monetary stimulus was already announced in January, the news may have already been factored into stocks.
Meanwhile, China revised its economic growth estimate to 7% for this year. The 7.4% recorded in 2014 was the slowest pace of growth in about 25 years.
Economic data was disappointing yesterday. New orders for manufactured goods in January dropped for the sixth consecutive month. The metric declined 0.2% to $470 billion. In contrast, the consensus estimate had expected a 0.3% gain.
Some gains were also offset by higher-than-expected addition in initial claims. The U.S. Department of Labor reported seasonally adjusted initial claims for the week ending Feb 28 at 320,000, up 7000 from prior week's unrevised level of 313,000. Gains in initial claims was also contrary to estimates of a decline to 299, 000.
Initial claims numbers came a day after Automatic Data Processing, Inc. ( ADP ) reported lower private-sector job creation numbers. A total of 212,000 private jobs were added in February, lower than the 250,000 job additions in January.
Now, investors await crucial nonfarm payrolls data on Friday. Consensus estimate predicts an addition of 235, 000 nonfarm jobs in February. Last month, the U.S. Department of Labor had reported that the U.S. economy created 257,000 new jobs in January. Nonetheless, another report indicating 200, 000 job additions would mean the 12th consecutive month of such gains.
Separately, the NASDAQ Biotechnology index hit an all-time high after gaining 2.2%. Gains were largely boosted by the news of AbbVie Inc. ( ABBV ) acquiring Pharmacyclics Inc. ( PCYC ) for nearly $21 billion. Pharmacyclics was among the biggest gainers of the index as it jumped 10.3%. AbbVie however dropped 5.7%.
The gains also helped the healthcare sector end in the green. Health Care Select Sector SPDR ETF (XLV) gained 0.4%. Key stocks from the sector such as Johnson & Johnson ( JNJ ), Gilead Sciences Inc. ( GILD ), Medtronic plc ( MDT ), Bristol-Myers Squibb Company ( BMY ) and Biogen Idec Inc. ( BIIB ) gained 0.9%, 0.3%, 0.4%, 0.6% and 2.8%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gains were largely boosted by the news of AbbVie Inc. ( ABBV ) acquiring Pharmacyclics Inc. ( PCYC ) for nearly $21 billion. AbbVie however dropped 5.7%. Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Gains were largely boosted by the news of AbbVie Inc. ( ABBV ) acquiring Pharmacyclics Inc. ( PCYC ) for nearly $21 billion. AbbVie however dropped 5.7%. | Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Gains were largely boosted by the news of AbbVie Inc. ( ABBV ) acquiring Pharmacyclics Inc. ( PCYC ) for nearly $21 billion. AbbVie however dropped 5.7%. | Gains were largely boosted by the news of AbbVie Inc. ( ABBV ) acquiring Pharmacyclics Inc. ( PCYC ) for nearly $21 billion. AbbVie however dropped 5.7%. Click to get this free report AUTOMATIC DATA (ADP): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. |
27029.0 | 2015-03-06 00:00:00 UTC | AbbVie (ABBV) in Focus: Stock Falls by 5.7% - Tale of the Tape | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-in-focus%3A-stock-falls-by-5.7-tale-of-the-tape-2015-03-06 | nan | nan | AbbVie Inc. ( ABBV ) saw a big move last session, as the company's shares fell by nearly 6% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This reverses the recent trend for ABBV as the stock is now up by nearly 3% since Feb 9.
On Mar 5, Rigrodsky & Long, P.A. announced that it is investigating potential legal claims against the board of directors of Pharmacyclics, Inc.The investigation is for alleged breaches of fiduciary duties and other violations with regard to the acquisition agreement with AbbVie.
Although this slump was obviously disappointing, the company has seen 2 positive revisions and its current year earnings consensus has moved higher over the past few weeks. This suggests that the recent slump might be a temporary blip on the radar for ABBV. So make sure to keep an eye on this stock going forward to see if yesterday's price decline is confirmed by more weakness, or if it can rebound in the weeks ahead.
ABBV currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
A better-ranked stock in the medical sector is Abaxis, Inc. ( ABAX ), holding 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 ) saw a big move last session, as the company's shares fell by nearly 6% on the day. This reverses the recent trend for ABBV as the stock is now up by nearly 3% since Feb 9. announced that it is investigating potential legal claims against the board of directors of Pharmacyclics, Inc.The investigation is for alleged breaches of fiduciary duties and other violations with regard to the acquisition agreement with AbbVie. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ABAXIS INC (ABAX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) saw a big move last session, as the company's shares fell by nearly 6% on the day. This reverses the recent trend for ABBV as the stock is now up by nearly 3% since Feb 9. | AbbVie Inc. ( ABBV ) saw a big move last session, as the company's shares fell by nearly 6% on the day. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ABAXIS INC (ABAX): Free Stock Analysis Report To read this article on Zacks.com click here. This reverses the recent trend for ABBV as the stock is now up by nearly 3% since Feb 9. | AbbVie Inc. ( ABBV ) saw a big move last session, as the company's shares fell by nearly 6% on the day. This reverses the recent trend for ABBV as the stock is now up by nearly 3% since Feb 9. announced that it is investigating potential legal claims against the board of directors of Pharmacyclics, Inc.The investigation is for alleged breaches of fiduciary duties and other violations with regard to the acquisition agreement with AbbVie. |
27030.0 | 2015-03-06 00:00:00 UTC | Pharmacyclics Set to Be Acquired by AbbVie for $21B - Analyst Blog | ABBV | https://www.nasdaq.com/articles/pharmacyclics-set-to-be-acquired-by-abbvie-for-%2421b-analyst-blog-2015-03-06 | nan | nan | Pharmacyclics Inc. 's PCYC shares were up 10.3% after a definitive agreement was announced under which AbbVie Inc. ABBV will acquire Pharmacyclics. AbbVie will pay $261.25 per share, consisting of cash (58%) and equity (42%). The deal is valued at approximately $21 billion and is expected to close in mid-2015.
AbbVie expects to finance the deal using a combination of existing cash, new debt and stock.
The acquisition of Pharmacyclics was not entirely unexpected. We remind investors that Pharmacyclics shares have been on an upswing since a report from Bloomberg suggested that the company is exploring its options including a potential sale.This was rumored to attract interest from the likes of Johnson & Johnson JNJ and Novartis NVS .
What's in It for AbbVie?
The acquisition of Pharmacyclics will add Imbruvica to AbbVie's portfolio. Imbruvica is Pharmacyclics' sole marketed product. The product gained FDA approval in January this year for all lines of therapy for the treatment of patients suffering from Waldenstrom's macroglobulinemia (WM). This makes Imbruvica the first and only FDA approved treatment for this indication.
Imbruvica is also approved for three other indications, including treatment of patients with mantle cell lymphoma (MCL) and chronic lymphocytic leukemia (CLL) who have received at least one previous therapy and for CLL patients with a deletion of the short arm of chromosome 17. We are encouraged by the label expansion of Imbruvica.
Meanwhile, Pharmacyclics is working on expanding Imbruvica's label further and is evaluating the drug for indications like small lymphocytic lymphoma and diffuse large B-cell lymphoma among others.
In the fourth quarter of 2014, Imbruvica's net product revenues in the U.S. rose 31% sequentially to $185 million. For 2015, the company continues to expect Imbruvica U.S. net product revenues to be approximately $1 billion, representing a year-over-year jump of 103%. The increase is expected to be driven by higher market penetration of the four approved indications.
We note that Pharmacyclics has an agreement with Janssen Biotech, a Johnson & Johnson company, for Imbruvica. While Johnson & Johnson markets Imbruvica in ex-U.S. territories, the two companies jointly commercialize Imbruvica in the U.S.
The acquisition will boost AbbVie's presence in hematological oncology. As per AbbVie's press release, the hematological oncology market is growing by leaps and bounds and will soon be worth $24 billion globally. This indeed offers an extremely lucrative opportunity. AbbVie expects Imbruvica peak sales for the company to exceed $7 billion.
The health care sector has been witnessing a flurry of mergers and acquisitions and licensing deals over the past few quarters. These deals show no signs of slowing down.
Pharmacyclics holds a Zacks Rank #2 (Buy). Another well-ranked stock in the health care space include Theravance, Inc. THRX 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. | As per AbbVie's press release, the hematological oncology market is growing by leaps and bounds and will soon be worth $24 billion globally. Pharmacyclics Inc. 's PCYC shares were up 10.3% after a definitive agreement was announced under which AbbVie Inc. ABBV will acquire Pharmacyclics. AbbVie will pay $261.25 per share, consisting of cash (58%) and equity (42%). | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report THERAVANCE INC (THRX): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. Pharmacyclics Inc. 's PCYC shares were up 10.3% after a definitive agreement was announced under which AbbVie Inc. ABBV will acquire Pharmacyclics. AbbVie will pay $261.25 per share, consisting of cash (58%) and equity (42%). | The acquisition of Pharmacyclics will add Imbruvica to AbbVie's portfolio. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report THERAVANCE INC (THRX): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. Pharmacyclics Inc. 's PCYC shares were up 10.3% after a definitive agreement was announced under which AbbVie Inc. ABBV will acquire Pharmacyclics. | What's in It for AbbVie? Pharmacyclics Inc. 's PCYC shares were up 10.3% after a definitive agreement was announced under which AbbVie Inc. ABBV will acquire Pharmacyclics. AbbVie will pay $261.25 per share, consisting of cash (58%) and equity (42%). |
27031.0 | 2015-03-05 00:00:00 UTC | Midday Update: Early Gains for U.S. Stocks Pressured By Weakness in Factory Orders | ABBV | https://www.nasdaq.com/articles/midday-update-early-gains-us-stocks-pressured-weakness-factory-orders-2015-03-05 | nan | nan | Wall Street was holding on to shallow gains Thursday after disappointing production data compromised early advances tied to the expected launch of a new stimulus package for the European Union next week. Investors largely shrugged off a larger-than-expected increase in new unemployment claims last week along with weak productivity data reported earlier today only to drive equities off their initial highs following an unexpected decline in January factory orders.
At mid-day, the Dow Jones Industrial Average and the S&P 500 were only fractionally higher while the Nasdaq Composite index was outperforming thanks to strength in biotechs following a $21 billion merger between AbbVie ( ABBV ) and Pharmacyclics ( PCYC ).
The European Central Bank helped kick-start the U.S. markets today with additional details of its massive bond-buying program. As-expected, the ECB did not cut interest rates but said it would start buying 50 billion euros in sovereign EU bonds each month starting on Monday, March 9. Perhaps even more encouraging for global investors was ECB President Mario Draghi's promise to continue the central bank's bond-buying program beyond 2016 if needed to reinflate the euro-zone economy.
Today's economic data was bearish across the board, beginning with a 7,000 increase in initial jobless claims during the seven days ended Feb. 8 to a 10-month high of 320,000, missing estimates for a 3,000 decline in new claims to 300,000.
Non-farm productivity fell 2.2% during Q4, matching a downwardly revised 2.2% decline in Q3 production, according to the Bureau of Labor Statistics. Labor costs jumped 4.1% over the final three months of 2014, topping estimates for a 3.1% increase, while Q3 labor costs were revised higher, from a 2.7% rise to a final 4.1% gain.
Also today, factory orders fell 0.2% during January, reversing forecasts for a 0.2% increase. December orders also were revised lower to a 3.5% decline from the 3.4% drop first reported.
Crude oil was down $0.25 to $51.29 per barrel. Natural gas was up $0.05 to $2.82 per 1 million BTU. Gold was up $0.70 to $1,201.70 an ounce, while silver was up $0.08 to $16.24 an ounce. Copper was up $0.01 to $2.66 per pound.
Among energy ETFs, the United States Oil Fund was down 0.66% to $18.86 with the United States Natural Gas Fund was up 1.71% to $14.28. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.68% to 21.56 while SPDR Gold Shares were up 024% to $115.38. The iShares Silver Trust was up 0.35% to $15.54.
Here's where the U.S. markets stand at mid-day:
NYSE Composite Index up 19.79 (+0.18%) to 11,024.47
Dow Jones Industrial Average up 46.81 (+0.26%) to 18,143.71
S&P 500 up 3.69 (+0.18%) to 2,102.22
Nasdaq Composite Index up 17.97 (+0.36%) to 4,985.12
GLOBAL SENTIMENT
Nikkei 225 Index up 0.26%
Hang Seng Index down 1.11%
Shanghai China Composite Index down 0.95%
FTSE 100 Index up 0.61%
CAC 40 up 0.94%
DAX up 1.00%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 0.44%
NYSE Financial Sector Index up 0.56%
NYSE Healthcare Sector Index up 0.26%
UPSIDE MOVERS
(+) ALG (+14.67%) Reported strong Q4 results
(+) PEIX (+27.42%) Reported Q4 results that topped analyst expectations
(+) KYTH (+23.16%) FDA made positive comments about its product candidate for the reduction of submental fat
DOWNSIDE MOVERS
(-) BRLI (-7.59%) Reported higher Q1 fiscal 2015 results that still missed the consensus estimates
(-) ABBV (-3.35%) Acquired Pharmacyclics ( PCYC ) for $21 billion
(-) JOY (-7.22%) Reported Q1 2015 results that were below Wall Street estimates, lowered FY guidance
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. | At mid-day, the Dow Jones Industrial Average and the S&P 500 were only fractionally higher while the Nasdaq Composite index was outperforming thanks to strength in biotechs following a $21 billion merger between AbbVie ( ABBV ) and Pharmacyclics ( PCYC ). (-) BRLI (-7.59%) Reported higher Q1 fiscal 2015 results that still missed the consensus estimates (-) ABBV (-3.35%) Acquired Pharmacyclics ( PCYC ) for $21 billion (-) JOY (-7.22%) Reported Q1 2015 results that were below Wall Street estimates, lowered FY guidance The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Wall Street was holding on to shallow gains Thursday after disappointing production data compromised early advances tied to the expected launch of a new stimulus package for the European Union next week. | (-) BRLI (-7.59%) Reported higher Q1 fiscal 2015 results that still missed the consensus estimates (-) ABBV (-3.35%) Acquired Pharmacyclics ( PCYC ) for $21 billion (-) JOY (-7.22%) Reported Q1 2015 results that were below Wall Street estimates, lowered FY guidance The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At mid-day, the Dow Jones Industrial Average and the S&P 500 were only fractionally higher while the Nasdaq Composite index was outperforming thanks to strength in biotechs following a $21 billion merger between AbbVie ( ABBV ) and Pharmacyclics ( PCYC ). Here's where the U.S. markets stand at mid-day: NYSE Composite Index up 19.79 (+0.18%) to 11,024.47 Dow Jones Industrial Average up 46.81 (+0.26%) to 18,143.71 S&P 500 up 3.69 (+0.18%) to 2,102.22 Nasdaq Composite Index up 17.97 (+0.36%) to 4,985.12 | (-) BRLI (-7.59%) Reported higher Q1 fiscal 2015 results that still missed the consensus estimates (-) ABBV (-3.35%) Acquired Pharmacyclics ( PCYC ) for $21 billion (-) JOY (-7.22%) Reported Q1 2015 results that were below Wall Street estimates, lowered FY guidance The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At mid-day, the Dow Jones Industrial Average and the S&P 500 were only fractionally higher while the Nasdaq Composite index was outperforming thanks to strength in biotechs following a $21 billion merger between AbbVie ( ABBV ) and Pharmacyclics ( PCYC ). Investors largely shrugged off a larger-than-expected increase in new unemployment claims last week along with weak productivity data reported earlier today only to drive equities off their initial highs following an unexpected decline in January factory orders. | (-) BRLI (-7.59%) Reported higher Q1 fiscal 2015 results that still missed the consensus estimates (-) ABBV (-3.35%) Acquired Pharmacyclics ( PCYC ) for $21 billion (-) JOY (-7.22%) Reported Q1 2015 results that were below Wall Street estimates, lowered FY guidance The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At mid-day, the Dow Jones Industrial Average and the S&P 500 were only fractionally higher while the Nasdaq Composite index was outperforming thanks to strength in biotechs following a $21 billion merger between AbbVie ( ABBV ) and Pharmacyclics ( PCYC ). Investors largely shrugged off a larger-than-expected increase in new unemployment claims last week along with weak productivity data reported earlier today only to drive equities off their initial highs following an unexpected decline in January factory orders. |
27032.0 | 2015-03-05 00:00:00 UTC | How These Healthcare Megadeals Helped Send the Market Higher | ABBV | https://www.nasdaq.com/articles/how-these-healthcare-megadeals-helped-send-market-higher-2015-03-05 | nan | nan | AbbVie made a big purchase overnight. Source: AbbVie.
As the stock market has climbed, many investors have become increasingly concerned about whether its gains are sustainable. One key signal that can determine whether stocks are overpriced comes from mergers and acquisitions. When potential target companies seem expensive, fewer acquirers are interested in making high-priced buyouts. But accelerating M&A activity suggests stocks are still cheap, and two sizable deals in the healthcare industry are sounding a bullish tone that helped lift the overall market Thursday. As of 11 a.m. EST, the Dow Jones Industrials were up 46 points, looking to avoid a three-day losing streak.
The biggest M&A announcement came from AbbVie , which late Wednesday announced a massive $21 billion purchase of biotech cancer-specialist Pharmacyclics . Under the deal, AbbVie will pay $261.25 for every share of Pharmacyclics, with AbbVie using an unspecified mix of cash and stock to pay for the transaction. In response, Pharmacyclics shares jumped 10.5% today, while AbbVie slumped 3.3% as shareholders considered the dilutive impact of the equity portion of the buyout. The deal gives AbbVie some much-needed diversification beyond its current blockbuster Humira, which is slated to lose some patent protection in the near future. Pharmacyclics makes the oncology treatment Imbruvica, which has multiple approvals for treating blood cancer and has advantages over similar treatments by avoiding some of the worst side effects of traditional chemotherapy. AbbVie will also get a promising pipeline of further potential blockbuster treatments. Given the patent challenges facing many drugmakers, acquisitions like this one are likely to continue throughout the industry.
Source: Mallinckrodt.
Elsewhere in the healthcare field, drug company Mallinckrodt agreed to purchase Ikaria for $2.3 billion from a private equity-led investor group. The move continues a long string of acquisitions for the St. Louis company, which recently spent about $7 billion in total to acquire Cadence Pharmaceuticals and Questcor Pharmaceuticals. Ikaria specializes in therapies to help critically ill infants in hospital neonatal intensive care units; according to Mallinckrodt, the buyout will expand the company's presence in hospital facilities while giving it another opportunity to broaden its overall offerings of products and treatments. Ikaria's mission to provide critical care in areas of what it calls "high unmet medical need" is directly in line with Mallinckrodt's overall aim to grow its business, and that makes the buyout worthy of Mallinckrodt's characterization of it as a "strategically compelling transaction."
Merger and acquisition activity typically won't alone lift the market. But as a sign that companies are still interested in making smart strategic purchases at current levels, healthy numbers of buyouts point to the potential for further stock market growth despite the big gains since 2009.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article How These Healthcare Megadeals Helped Send the Market Higher originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 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 made a big purchase overnight. Source: AbbVie. The biggest M&A announcement came from AbbVie , which late Wednesday announced a massive $21 billion purchase of biotech cancer-specialist Pharmacyclics . | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie made a big purchase overnight. Source: AbbVie. | Under the deal, AbbVie will pay $261.25 for every share of Pharmacyclics, with AbbVie using an unspecified mix of cash and stock to pay for the transaction. AbbVie made a big purchase overnight. Source: AbbVie. | AbbVie will also get a promising pipeline of further potential blockbuster treatments. AbbVie made a big purchase overnight. Source: AbbVie. |
27033.0 | 2015-03-05 00:00:00 UTC | On the ECB & China's Growth - Ahead of Wall Street | ABBV | https://www.nasdaq.com/articles/ecb-chinas-growth-ahead-wall-street-2015-03-05 | nan | nan | Thursday, March 5, 2015
Pre-open sentiment is pointing towards a modestly positive open for stocks today, a day ahead of the all-important non-farm payroll report for February. On today's data docket, the interest rate announcement from the European Central Bank (ECB) came as no surprise, though China's growth target downgrade likely surprised many.
ECB President Mario Draghi's press event will shed more light on the details of the central bank's bond purchase program. But its QE program hasn't gotten underway yet; the market has been doing the positive work for the central bank, with the lower value for the common currency helping spur the region's export sector. It is this transmission mechanism through the exchange - more than the programs' effect on credit conditions - that is giving the Euro-zone economy the growth nudge to push it away from a deflation path.
China's new 7% GDP growth target for this year, down from last year's +7.4% growth and the +7.5% previous growth, would still be the envy of any economy. But for market participants used to seeing double-digit GDP growth rates in recent years, this is quite a climb down. The positive angle of the lowered growth target could be that it's an acknowledgement from the authorities that they no longer have as much control over the growth drivers as they used. Chinese authorities would famously 'advise' the provincial leaderships to achieve specific growth targets who would then use an investments-driven model to come up with the desired numbers (some even accuse the authorities of cooking the books).
The growth downgrade would be a big positive in the long run if its inspiration is the realization that investments no longer move the needle as they used to. It has been a long-term goal of the country to shift the composition of growth from investments to domestic consumption, and this could be a an early indication of that change.
In corporate news, we got a weaker-than-expected earnings report from Joy Global ( JOY ), and AbbVie ( ABBV ) is acquiring cancer biotech company Pharmacylics ( PCYC ) for $21 billion.
Sheraz Mian
Director of Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In corporate news, we got a weaker-than-expected earnings report from Joy Global ( JOY ), and AbbVie ( ABBV ) is acquiring cancer biotech company Pharmacylics ( PCYC ) for $21 billion. Click to get this free report JOY GLOBAL INC (JOY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Thursday, March 5, 2015 Pre-open sentiment is pointing towards a modestly positive open for stocks today, a day ahead of the all-important non-farm payroll report for February. | Click to get this free report JOY GLOBAL INC (JOY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. In corporate news, we got a weaker-than-expected earnings report from Joy Global ( JOY ), and AbbVie ( ABBV ) is acquiring cancer biotech company Pharmacylics ( PCYC ) for $21 billion. On today's data docket, the interest rate announcement from the European Central Bank (ECB) came as no surprise, though China's growth target downgrade likely surprised many. | Click to get this free report JOY GLOBAL INC (JOY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. In corporate news, we got a weaker-than-expected earnings report from Joy Global ( JOY ), and AbbVie ( ABBV ) is acquiring cancer biotech company Pharmacylics ( PCYC ) for $21 billion. China's new 7% GDP growth target for this year, down from last year's +7.4% growth and the +7.5% previous growth, would still be the envy of any economy. | Click to get this free report JOY GLOBAL INC (JOY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. In corporate news, we got a weaker-than-expected earnings report from Joy Global ( JOY ), and AbbVie ( ABBV ) is acquiring cancer biotech company Pharmacylics ( PCYC ) for $21 billion. China's new 7% GDP growth target for this year, down from last year's +7.4% growth and the +7.5% previous growth, would still be the envy of any economy. |
27034.0 | 2015-03-05 00:00:00 UTC | Did AbbVie Just Grossly Overpay for Pharmacyclics Inc.? | ABBV | https://www.nasdaq.com/articles/did-abbvie-just-grossly-overpay-pharmacyclics-inc-2015-03-05 | nan | nan | Illinois-based drugmaker AbbVie is reportedly buying Pharmacyclics for $261.25 per share, or $21 billion, to boost its oncology pipeline.
At the end of the day, this deal appears rather worrisome for AbbVie shareholders. AbbVie's management now appears to be more concerned about its biggest drug Humira's looming patent expiration than they have let on, and the company's new hepatitis C drug, Viekira Pak, doesn't look like a long-term growth product. Still, it's hard to see how the Pharmacyclics deal solves the company's long-term growth problems or creates much value for shareholders.
To be fair, the premium built into this merger is in line with the spate of other recent deals among pharma companies. But perhaps that's the real problem: drugmakers in general are garnering sky-high valuations that aren't based on their underlying fundamentals. And AbbVie's hand is being forced, at the worst possible time, to head off Humira's patent expiration in 2016.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Did AbbVie Just Grossly Overpay for Pharmacyclics Inc.? originally appeared on Fool.com.
George Budwell owns shares of AbbVie. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | Illinois-based drugmaker AbbVie is reportedly buying Pharmacyclics for $261.25 per share, or $21 billion, to boost its oncology pipeline. At the end of the day, this deal appears rather worrisome for AbbVie shareholders. AbbVie's management now appears to be more concerned about its biggest drug Humira's looming patent expiration than they have let on, and the company's new hepatitis C drug, Viekira Pak, doesn't look like a long-term growth product. | Illinois-based drugmaker AbbVie is reportedly buying Pharmacyclics for $261.25 per share, or $21 billion, to boost its oncology pipeline. At the end of the day, this deal appears rather worrisome for AbbVie shareholders. AbbVie's management now appears to be more concerned about its biggest drug Humira's looming patent expiration than they have let on, and the company's new hepatitis C drug, Viekira Pak, doesn't look like a long-term growth product. | At the end of the day, this deal appears rather worrisome for AbbVie shareholders. AbbVie's management now appears to be more concerned about its biggest drug Humira's looming patent expiration than they have let on, and the company's new hepatitis C drug, Viekira Pak, doesn't look like a long-term growth product. Illinois-based drugmaker AbbVie is reportedly buying Pharmacyclics for $261.25 per share, or $21 billion, to boost its oncology pipeline. | Illinois-based drugmaker AbbVie is reportedly buying Pharmacyclics for $261.25 per share, or $21 billion, to boost its oncology pipeline. At the end of the day, this deal appears rather worrisome for AbbVie shareholders. AbbVie's management now appears to be more concerned about its biggest drug Humira's looming patent expiration than they have let on, and the company's new hepatitis C drug, Viekira Pak, doesn't look like a long-term growth product. |
27035.0 | 2015-03-05 00:00:00 UTC | Why Pharmacyclics Inc. Stock Burst Higher | ABBV | https://www.nasdaq.com/articles/why-pharmacyclics-inc-stock-burst-higher-2015-03-05 | nan | nan | Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What : Shares of the leukemia drugmaker Pharmacyclics are up by more than 10% in premarket trading this morning after the company announced that it has agreed to a merger with AbbVie for a reported $21 billion.
Per the press release, AbbVie will pay $261.25 per share for Pharmacyclics, with 58% of the buyout being paid in cash and the remaining 42% in AbbVie common stock. As such, Pharmacyclics shareholders will have the option of receiving all cash, AbbVie stock, or a mixture of the two. The deal is expected to be close by the middle of the year.
Johnson & Johnson and Novartis AG were both rumored to be close to a deal with the drugmaker, which has had its fair share of buyout rumors. But AbbVie reportedly jumped in at the last minute with a significantly larger offer late last night.
This buyout gives AbbVie access to Pharmacyclics' flagship blood cancer drug Imbruvica, which is currently approved for four different indications and undergoing clinical testing for several additional conditions.
So what : AbbVie has been under pressure to diversify its revenue base in the face of Humira's forthcoming patent expiration in 2016. Imbruvica should go a long way toward that goal given that Pharmacyclics is anticipating US Imbruvica sales to cross $1 billion this year. Imbruvica has shown clinical activity in a variety of malignancies. Overall, analysts believe the drug can potentially generate peak sales of about $6 billion by 2020.
Now what : There is a catch with this deal, though. J&J is Imbruvica's co-developer and is therefore entitled to 50% of the drug's profits. Although Pharmacyclics does have some early stage and preclinical product candidates, AbbVie might have to explore cutting an upfront cash deal with J&J to realize much upside from this deal, especially from a top-line perspective.
Given that Pharmacylics was trading at around half its current price at the beginning of 2015, there's been an enormous runup. From my vantage point, AbbVie's buyout looks like a good deal for Pharmacyclics shareholders.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Pharmacyclics Inc. Stock Burst Higher originally appeared on Fool.com.
George Budwell owns shares of AbbVie. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | What : Shares of the leukemia drugmaker Pharmacyclics are up by more than 10% in premarket trading this morning after the company announced that it has agreed to a merger with AbbVie for a reported $21 billion. This buyout gives AbbVie access to Pharmacyclics' flagship blood cancer drug Imbruvica, which is currently approved for four different indications and undergoing clinical testing for several additional conditions. Per the press release, AbbVie will pay $261.25 per share for Pharmacyclics, with 58% of the buyout being paid in cash and the remaining 42% in AbbVie 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. What : Shares of the leukemia drugmaker Pharmacyclics are up by more than 10% in premarket trading this morning after the company announced that it has agreed to a merger with AbbVie for a reported $21 billion. Per the press release, AbbVie will pay $261.25 per share for Pharmacyclics, with 58% of the buyout being paid in cash and the remaining 42% in AbbVie common stock. | Per the press release, AbbVie will pay $261.25 per share for Pharmacyclics, with 58% of the buyout being paid in cash and the remaining 42% in AbbVie common stock. This buyout gives AbbVie access to Pharmacyclics' flagship blood cancer drug Imbruvica, which is currently approved for four different indications and undergoing clinical testing for several additional conditions. Although Pharmacyclics does have some early stage and preclinical product candidates, AbbVie might have to explore cutting an upfront cash deal with J&J to realize much upside from this deal, especially from a top-line perspective. | Per the press release, AbbVie will pay $261.25 per share for Pharmacyclics, with 58% of the buyout being paid in cash and the remaining 42% in AbbVie common stock. Although Pharmacyclics does have some early stage and preclinical product candidates, AbbVie might have to explore cutting an upfront cash deal with J&J to realize much upside from this deal, especially from a top-line perspective. What : Shares of the leukemia drugmaker Pharmacyclics are up by more than 10% in premarket trading this morning after the company announced that it has agreed to a merger with AbbVie for a reported $21 billion. |
27036.0 | 2015-03-05 00:00:00 UTC | DJIA Index Gains 38 Points on ECB Stimulus News | ABBV | https://www.nasdaq.com/articles/djia-index-gains-38-points-ecb-stimulus-news-2015-03-05 | nan | nan | The DJIA Index gained 38 points today. The reason? The European Central Bank announced plans to begin its massive stimulus program next week, while a large M&A deal rocked the healthcare sector.
Investors remain cautious about the markets ahead of Friday's U.S. jobs report. Gold prices slipped below $1,200 on the day.
Today's Scorecard:
Dow: 18,135.72, +38.82,+0.21%
S&P 500: 2,101.04, +2.51,+0.12%
Nasdaq: 4,982.81, +15.67,+0.32%
What Moved the DJIA Index Today: The ECB announced it will begin its 1 trillion euro ($1.1 trillion) bond-buying program on March 9 and end it in September 2016. The stimulus package is part of a broader attempt by the central bank to boost stock prices and kick-start its flailing economy. The world's largest economic bloc also released financial forecasts for 2017. Shares of Deutsche Bank AG ( USA ) (NYSE: DB ) were up marginally on the day. (For a breakdown of three ways to profit from the European spending bonanza, go here .)
The Commerce Department announced today that new U.S. factory goods orders slipped for the sixth straight month. The troubling data suggests the manufacturing sector remains weak, raising new concerns about the health of the U.S. economy in the first quarter.
Now, check out the other top market stories - plus get our new profit tip for investors:
Supermarket Surge: Shares of Kroger Co. (NYSE: KR ) jumped more than 7% this afternoon on news that the nation's largest supermarket chain reported a 23% bump in quarterly profits. The firm also raised its 2015 forecast outlook, prompting optimism in the sector. The news comes the same day that shares of Costco Wholesale Corp. (Nasdaq: COST ) jumped more than 2.7% on news of rising profits. The sector continues to benefit from subdued gasoline prices, a trend that has given Americans more discretionary income.
Job Problems: This morning, the U.S. government announced that weekly initial jobless claims rose to 320,000, surpassing estimates of 295,000. This is the second consecutive week that benefits rose above 300,000. The news is concerning for the economy in the wake of yesterday's weak private-sector payrolls report.
Biotech Boom: Shares of AbbVie Inc. (Nasdaq: ABBV ) slipped more than 5% on news that the pharmaceutical giant will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for $21 billion. The deal will give AbbVie access to the promising blood cancer drug, Imbruvica, although Johnson & Johnson (NYSE: JNJ ) currently receives half the drug's revenue thanks to a prior deal. Shares of PCYC were up more than 10%. Today's pharma company deal is the largest biotech merger of 2015, and one that many Wall Street "experts" didn't see coming. Here's a recap of how you can profit from the next round of deals in the near future.
Oil Slumps: U.S. oil prices reversed course Thursday on concerns about oversupply. In addition, a stronger dollar and the United States' commitment to forge a nuclear deal with Iran is weighing down domestic prices. Today, WTI prices slipped more than 1.3% to hit $50.84 per barrel.
An Apple a Day: Shares of Apple Inc. (Nasdaq: AAPL ) slipped more than 1.6% today. Rumors emerged this morning that the tech firm might partner with entertainment giant HBO to launch the latter firm's highly anticipated streaming service. HBO is now expected to begin streaming in April and will cost customers $15 per month to access popular shows like "Game of Thrones." In addition, Apple has filed patents suggesting that future iPhones will be waterproof.
Money MorningTip of the Day:Facebook stock is a great long-term tech play. It could double by 2018.
Today's tip comes from Money Morning Tech Expert Michael A. Robinson:
Wall Street just doesn't understand the incredible value that Facebook Inc. (Nasdaq: FB) stock represents.
But I do. And I'm predicting FB stock will double in the next three years.
Facebook has moved beyond its early identity as a social networking site for young people. It's now the indisputable world leader in the social networking market, one that forecasters IBISWorld estimates at $9 billion.
Facebook's total user base now stands at nearly 1.4 billion - that's bigger than the population of China. And Facebook's global impact will keep growing, as half of everyone online now uses Facebook, and more than 60% of the world's 7 billion people have yet to get online.
Facebook is also benefiting from the mobile revolution. In Q4 2014, Facebook had 45 million mobile users active on a daily basis, a 34% increase from the year-ago quarter.
The company is doing a great job turning the mobile trend into money. Mobile ad sales in the quarter represented roughly 69% of total ad revenue, a 30% annual gain.
Now, here's why Facebook stock could double...
Over the past three years, it has grown earnings per share by an average of 57%.
To be conservative, let's cut that figure in half to 28.5%. To project how long it will take Facebook to double, we use my "Doubling Calculator" (aka the Rule of 72).
If we divide 72 by Facebook's 28.5% earnings growth rate, we find that profits will double in just about 2.5 years.
Remember, price appreciation follows earnings growth. So, giving Facebook a full three years to reach $161 is both conservative and realistic.
Robinson's full case for buying Facebook stock can be found here:This Leading Tech Stock Will Double by 2018
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About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotech Boom: Shares of AbbVie Inc. (Nasdaq: ABBV ) slipped more than 5% on news that the pharmaceutical giant will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for $21 billion. The deal will give AbbVie access to the promising blood cancer drug, Imbruvica, although Johnson & Johnson (NYSE: JNJ ) currently receives half the drug's revenue thanks to a prior deal. Today's tip comes from Money Morning Tech Expert Michael A. Robinson: Wall Street just doesn't understand the incredible value that Facebook Inc. (Nasdaq: FB) stock represents. | Biotech Boom: Shares of AbbVie Inc. (Nasdaq: ABBV ) slipped more than 5% on news that the pharmaceutical giant will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for $21 billion. The deal will give AbbVie access to the promising blood cancer drug, Imbruvica, although Johnson & Johnson (NYSE: JNJ ) currently receives half the drug's revenue thanks to a prior deal. Nasdaq: 4,982.81, +15.67,+0.32% What Moved the DJIA Index Today: The ECB announced it will begin its 1 trillion euro ($1.1 trillion) bond-buying program on March 9 and end it in September 2016. | Biotech Boom: Shares of AbbVie Inc. (Nasdaq: ABBV ) slipped more than 5% on news that the pharmaceutical giant will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for $21 billion. The deal will give AbbVie access to the promising blood cancer drug, Imbruvica, although Johnson & Johnson (NYSE: JNJ ) currently receives half the drug's revenue thanks to a prior deal. Now, check out the other top market stories - plus get our new profit tip for investors: Supermarket Surge: Shares of Kroger Co. (NYSE: KR ) jumped more than 7% this afternoon on news that the nation's largest supermarket chain reported a 23% bump in quarterly profits. | Biotech Boom: Shares of AbbVie Inc. (Nasdaq: ABBV ) slipped more than 5% on news that the pharmaceutical giant will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for $21 billion. The deal will give AbbVie access to the promising blood cancer drug, Imbruvica, although Johnson & Johnson (NYSE: JNJ ) currently receives half the drug's revenue thanks to a prior deal. Here's a recap of how you can profit from the next round of deals in the near future. |
27037.0 | 2015-03-05 00:00:00 UTC | The Under-the-Radar Reason Why Puma Biotechnology Inc. Rocketed 17% Higher | ABBV | https://www.nasdaq.com/articles/under-radar-reason-why-puma-biotechnology-inc-rocketed-17-higher-2015-03-05 | nan | nan | Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Puma Biotechnology , a clinical-stage biopharmaceutical company focused on developing novel cancer care therapies, rocketed higher by as much as 17% during Thursday's trading session following a price target increase from Citigroup and merger and acquisition activity within the biotech industry.
So what: First, following Puma Biotechnology's quarterly earnings release earlier this week, Citigroup maintained its "buy" rating on the company but slightly lifted its price target from $263 to $266, implying nearly 30% upside from yesterday's closing price.
More importantly, though, AbbVie agreed to purchase Pharmacyclics for nearly $21 billion. Pharmacyclics' key drug is Imbruvica, which was co-developed with Johnson & Johnson , and is designed to fight different types of blood cancers. In clinical studies it led to markedly higher overall response rates and response durability than the current standard of care that it was pitted against, leading Wall Street to project peak annual sales of the drug could hit as high as $9 billion, especially if it find new label indications.
In other words, AbbVie agreed to pay a hefty premium over where Pharmacyclics was valued just last month in order to secure a single, potent cancer drug, and many investors probably think Puma is next.
Now what: Puma Biotechnology is currently developing PB272 (also known as neratinib) for the neoadjuvant treatment of HER2-positive breast cancer, and potentially a number of other indications. In its I-SPY 2 trial as a neoadjuvant treatment it was shown to be nearly 95% superior to the current standard of treatment in HER2-positive/HR-negative breast cancer patients based on Bayesian predictive models. Puma is also planning on presenting or posting plenty of additional data this year on its leading experimental drug according to its latest quarterly filing.
Peak sales estimates for PB272 are literally all over the place because a lot is riding on whether it can gain additional labels. In general, Wall Street estimates for peak annual sales tend to fall between $3 billion and $6 billion. At the midpoint, and assuming a similar valuation of 2.3 times peak annual sales as given to Pharmacyclics by AbbVie, this would value Puma at roughly $343 per share under a similar scenario.
Now is Puma worth $343, or even the $237 it's trading at as of the time of this writing? It's a bit unfair to say as we have so much data left to see this year, and there are so many label expansion studies left to be uncovered. I'm a bit leery of supporting a $7 billion valuation on Puma considering it has nothing else in its pipeline. You heard me right, all nine onogng clinical studies involve PB272. Being tied to one drug can be a dangerous proposition if even the slightest thing goes wrong with safety, efficacy, or even in the manufacturing process post-approval.
For now I believe investors' best bet is to stick to the sidelines and wait for additional data from a handful of its midstage studies before making a decision on whether Puma is worth the price of admission.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article The Under-the-Radar Reason Why Puma Biotechnology Inc. Rocketed 17% Higher 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 name TMFUltraLong , track every pick he makes under the screen name TrackUltraLong , and check him out on Twitter, where he goes by the handle @TMFUltraLong .The Motley Fool owns shares of, and recommends Johnson & Johnson. It also owns shares of Citigroup.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. | In other words, AbbVie agreed to pay a hefty premium over where Pharmacyclics was valued just last month in order to secure a single, potent cancer drug, and many investors probably think Puma is next. More importantly, though, AbbVie agreed to purchase Pharmacyclics for nearly $21 billion. At the midpoint, and assuming a similar valuation of 2.3 times peak annual sales as given to Pharmacyclics by AbbVie, this would value Puma at roughly $343 per share under a similar scenario. | At the midpoint, and assuming a similar valuation of 2.3 times peak annual sales as given to Pharmacyclics by AbbVie, this would value Puma at roughly $343 per share under a similar scenario. More importantly, though, AbbVie agreed to purchase Pharmacyclics for nearly $21 billion. In other words, AbbVie agreed to pay a hefty premium over where Pharmacyclics was valued just last month in order to secure a single, potent cancer drug, and many investors probably think Puma is next. | At the midpoint, and assuming a similar valuation of 2.3 times peak annual sales as given to Pharmacyclics by AbbVie, this would value Puma at roughly $343 per share under a similar scenario. More importantly, though, AbbVie agreed to purchase Pharmacyclics for nearly $21 billion. In other words, AbbVie agreed to pay a hefty premium over where Pharmacyclics was valued just last month in order to secure a single, potent cancer drug, and many investors probably think Puma is next. | More importantly, though, AbbVie agreed to purchase Pharmacyclics for nearly $21 billion. In other words, AbbVie agreed to pay a hefty premium over where Pharmacyclics was valued just last month in order to secure a single, potent cancer drug, and many investors probably think Puma is next. At the midpoint, and assuming a similar valuation of 2.3 times peak annual sales as given to Pharmacyclics by AbbVie, this would value Puma at roughly $343 per share under a similar scenario. |
27038.0 | 2015-03-05 00:00:00 UTC | Top Pharmaceutical Companies Continue Massive M&A – Here's Your Profit Play | ABBV | https://www.nasdaq.com/articles/top-pharmaceutical-companies-continue-massive-ma-heres-your-profit-play-2015-03-05 | nan | nan | Two of the world's top pharmaceutical companies have announced a merger today (Thursday), and that's another major buy signal for one of our favorite profit opportunities.
AbbVie Inc. (NYSE: ABBV ) officials announced they will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for roughly $21 billion.
The deal gives AbbVie access to one of the world's top-selling cancer drugs, Imbruvica. Revenue from Imbruvica alone is expected to hit $1 billion in 2015 and $5.8 billion by 2020.
Today's pharma company deal is the largest biotech merger of 2015, and one that many Wall Street "experts" didn't see coming...
The Pharma Stock Profit Play Wall Street Is Missing
You see, Wall Street declared the market for healthcare M&A activity dead.
The federal government cracked down on "tax inversion" deals in September, and most experts thought that would deter M&A. A "tax inversion" is when a company buys an international firm and headquarters in that country to avoid the United States' high tax rate.
But Money Morning 's Defense and Tech Specialist Michael Robinson knew that M&A wasn't going to stop - especially among the top pharmaceutical companies.
His research showed that the M&A market was actually growing . Before today's deal, more than $35 billion had been spent on global healthcare mergers and acquisitions in 2015. That was up 124% from last year. Today's deal pushes that total over $57 billion.
AbbVie's acquisition of Pharmacyclics isn't a tax inversion deal. But it does show that the M&A market is far from "dead" like many predicted.
Healthcare M&A is going to continue. Top pharmaceutical companies go on the hunt for smaller firms when their older patents are about to expire. Instead of developing their own drugs - which can take up to 10 years and $1 billion - they buy other companies with new drugs.
That's the case with today's AbbVie/Pharmacyclics deal. The acquisition takes pressure off AbbVie's biggest revenue generator, Humira. The rheumatoid arthritis drug accounted for $3.36 billion in Q4 alone. However, the company expects sales of the drug to decline in 2017 and 2018.
A new report from Thomson Reuters shows the healthcare sector ranks third for deal making behind the telecom and financial sectors.
"M&A deals will remain a big driver for the whole healthcare industry," Robinson said. "The pickup in M&A activity will translate into healthy bonuses for bankers and lawyers, certainly, but it will also continue accelerate stocks in the biotech and pharmaceutical sectors way past the overall market."
"Since the start of 2014, the S&P 500 Health Care Index has soared 31.5%, and the Nasdaq Biotech Index has advanced 54.5%," he continued. "The wider Standard & Poor's 500 Index, meanwhile, has jumped just 14.3%."
Investors don't have to guess the next takeover target that will see its stock soar. Robinson has found an excellent way to profit from the entire healthcare M&A surge. It's up 17% in 2015, and has plenty of room to run...
The Single Best Way to Profit from Top Pharmaceutical Companies Now
Robinson recommends the SPDR S&P Pharmaceuticals (NYSE: XPH ) ETF. It's composed of some of the top pharmaceutical companies on the market and several aggressive small caps.
"XPH is not an M&A fund - but it's a great way to take advantage of the trend," Robinson said. "This ETF focuses on the industry's bread and butter: high earnings.
"And many companies in the fund's portfolio will likely end up growing through mergers. Or they could become targets themselves."
The ETF has 36 holdings, and the average market cap is $36 billion. Here's how Robinson explains some of the ETF's most important holdings:
Actavis Plc. (NYSE: ACT ) is a global specialty drug firm that makes generic and branded compounds. The firm markets approximately 1,000 products, including both prescription and over-the-counter drugs. The company has been on an acquisition binge. In November, the Dublin, Ireland-based firm said it will buy Botox-maker Allergan Inc. (NYSE: AGN ) - which XPH also holds - for $66 billion. And in July, it picked up Forest Laboratories Inc. for $25 billion.
Jazz Pharmaceuticals Plc. (Nasdaq: JAZZ ), also based in Dublin with substantial operations in California, has grown quickly since its founding in 2003. Buying products from other firms has played a big role in its global expansion. It has either licensed or acquired outright six major drugs in 11 years. It's best known for Xyrem, a drug that treats sleeping disorders. In late 2013, it agreed to acquire all of Italy's Gentium SPA (OTCMKTS ADR: GENTY ) for $1 billion.
Eli Lilly and Co. (NYSE: LLY ) is one of the best-known firms in pharmaceuticals. And now it is moving aggressively into high-margin products for animals. Last April, it announced the $5.4 billion acquisition of the animal health division from Novartis AG (NYSE ADR: NVS ). The move makes Lilly the world's second-largest animal healthcare business after Zoetis Inc. (NYSE: ZTS ), which XPH also holds. The world's 10th-largest pharmaceutical firm operates in 125 countries.
Merck & Co. Inc. (NYSE: MRK ) is a company I know well, having had lunch with a former CEO several years ago. He talked me into trying Claritin for my allergies, and I've been taking it ever since. The company is in a state of transition, as evidenced by its recent M&A activity. In December, Merck announced it is buying Cubist Pharmaceuticals Inc. (Nasdaq: CBST ) for $8.4 billion. The move followed a decision last May to sell Merck's consumer unit to Bayer AG (OTCMKTS ADR: BAYRY ) for $14 billion.
Since the start of 2014, XPH has gained 44.3%. That compares to just 10.2% for the Dow Jones and 14.3% for the S%P 500.
"The beauty of a play like this one is that rather than try to pick a single winner, we get the benefit of the entire sector's operations," Robinson said. "That makes XPH an excellent foundational investment to pave your road to wealth."
The Bottom Line: While Wall Street has declared the M&A market "dead," they are flat-out wrong. One of the best markets for M&A has been the pharmaceutical sector, having already reached $57 billion in 2015. And the market should continue to grow as companies with expiring patents continue to acquire smaller firms. The best way to profit from M&A among all the top pharmaceutical companies is the XPH ETF. It's up 17% in 2015 and will continue higher with the M&A market.
Make More Money This Year, No Matter What the Market Does...You can make 2015 your wealthiest year in a few simple moves.You just need the three common investing habits to dump immediately, the single most effective strategy for your portfolio, and five stocks to get you started to a wealthier you.Get all of that right now in this exclusive guide...
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Reuters: AbbVie Boosts Cancer Drug Pipeline with $21 Billion Pharmacyclics Deal
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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. (NYSE: ABBV ) officials announced they will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for roughly $21 billion. The deal gives AbbVie access to one of the world's top-selling cancer drugs, Imbruvica. AbbVie's acquisition of Pharmacyclics isn't a tax inversion deal. | Make More Money This Year, No Matter What the Market Does...You can make 2015 your wealthiest year in a few simple moves.You just need the three common investing habits to dump immediately, the single most effective strategy for your portfolio, and five stocks to get you started to a wealthier you.Get all of that right now in this exclusive guide... Related Articles : Reuters: AbbVie Boosts Cancer Drug Pipeline with $21 Billion Pharmacyclics Deal To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . AbbVie Inc. (NYSE: ABBV ) officials announced they will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for roughly $21 billion. The deal gives AbbVie access to one of the world's top-selling cancer drugs, Imbruvica. | Make More Money This Year, No Matter What the Market Does...You can make 2015 your wealthiest year in a few simple moves.You just need the three common investing habits to dump immediately, the single most effective strategy for your portfolio, and five stocks to get you started to a wealthier you.Get all of that right now in this exclusive guide... Related Articles : Reuters: AbbVie Boosts Cancer Drug Pipeline with $21 Billion Pharmacyclics Deal To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . AbbVie Inc. (NYSE: ABBV ) officials announced they will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for roughly $21 billion. The deal gives AbbVie access to one of the world's top-selling cancer drugs, Imbruvica. | AbbVie Inc. (NYSE: ABBV ) officials announced they will purchase Pharmacyclics Inc. (Nasdaq: PCYC ) for roughly $21 billion. The deal gives AbbVie access to one of the world's top-selling cancer drugs, Imbruvica. AbbVie's acquisition of Pharmacyclics isn't a tax inversion deal. |
27039.0 | 2015-03-02 00:00:00 UTC | XLV, UNH, ABBV, AGN: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/xlv-unh-abbv-agn-etf-inflow-alert-2015-03-02 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $169.8 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 181,265,324 to 183,615,324). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.8%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Allergan, Inc (Symbol: AGN) is up by about 0.6%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $55.39 per share, with $72.78 as the 52 week high point - that compares with a last trade of $72.66. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.8%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Allergan, Inc (Symbol: AGN) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $169.8 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 181,265,324 to 183,615,324). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.8%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Allergan, Inc (Symbol: AGN) is up by about 0.6%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $55.39 per share, with $72.78 as the 52 week high point - that compares with a last trade of $72.66. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.8%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Allergan, Inc (Symbol: AGN) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $169.8 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 181,265,324 to 183,615,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $55.39 per share, with $72.78 as the 52 week high point - that compares with a last trade of $72.66. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is up about 0.8%, AbbVie Inc. (Symbol: ABBV) is off about 0.2%, and Allergan, Inc (Symbol: AGN) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $169.8 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 181,265,324 to 183,615,324). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $55.39 per share, with $72.78 as the 52 week high point - that compares with a last trade of $72.66. |
27040.0 | 2015-03-02 00:00:00 UTC | These Stocks Just Raised Their Dividends | ABBV | https://www.nasdaq.com/articles/these-stocks-just-raised-their-dividends-2015-03-02 | nan | nan | With all the dividend raises occurring in this early part of the year, several likely suspects have decided to get in on the action.
These are the Dividend Aristocrats, the companies that have raised their distributions at least once annually for a minimum of 25 years in a row.
Last week, several of these blue bloods maintained this rarefied status by hiking their payouts. Here are three making their stockholders incrementally richer:
Coca-Cola( KO )
This top beverage company, which needs no introduction, is the most durable of our chosen Aristocrats based on longevity. With its latest quarterly dividend raise -- by 8% to $0.33 per share -- it's now lifted its payout for a hard-to-believe 53 consecutive years.
That should improve morale among Coca-Cola's many investors following a 55% drop in net profit in the firm's just-reported Q4 (to $770 million, its lowest quarterly figure in years).
KO Net Income (Quarterly) data by YCharts
That pain might not melt away soon; this most global of American firms is projecting a negative impact of 7 to 8 percentage points to pre-tax profit this year due to the strengthened dollar.
But there's substantial reason for optimism. Although sales of its carbonated products aren't advancing much, the company has done an admirable job selling the heck out of its non-fizzy beverages. Recently three products -- Gold Peak and FUZE teas, and I Lohas mineral water -- became billion dollar brands (i.e., annual sales totaling at least that amount).
That's why I believe Coca-Cola has good potential for the future. Also worth keeping in mind is that the firm is still in the black and, more importantly for dividend purposes, continuing to generate plenty of cash. At the end of Q4 its cash and equivalents stood at just under $9 billion, which is well above the approximately $5.8 billion it would hand out in its new, higher dividend should it be maintained for the rest of this year.
That payout is to be dispensed on April 1 to shareholders of record as of March 16.
Colgate-Palmolive( CL )
On the subject of durable companies that reliably spit out a dividend, this consumer goods giant is keeping its own streak alive. Last week it hiked its quarterly distribution by 6% to $0.38 per share.
This comes on the heels of a modest yet satisfying quarter for the firm. It edged past the market's expectations for its Q4 profitability, driven by strong organic growth contributed by all of its operating divisions.
This was good enough to boost the company's share price, which inched upwards by 2% the day after the results were announced.
CL data by YCharts
Going forward, this multinational conglomerate anticipates facing strong headwinds because of the recent, and likely sustained, rise of the US dollar (over 80% of its sales come from outside North America). But even in the face of that, the company's anticipating per-share earnings growth.
Meanwhile, Colgate-Palmolive has managed to keep its free cash flow remarkably steady over the past few years at around $2.5 billion. This is more than enough for the approximately $1.4 billion it'll need to pay a year's worth of the enhanced distribution.
Colgate-Palmolive will hand out that raised dividend on May 15 to stockholders of record as of April 23.
AbbVie( ABBV )
Technically, this pharmaceutical major shouldn't be a dividend aristocrat, because it's only existed since 2013. But AbbVie makes the team because it's a spinoff of Abbott Laboratories , a steady longtime dividend raiser. The former declared a fresh quarterly distribution last week of $0.51 per share, 4% higher than its predecessor.
Certain alarm bells might ring over that, since the company posted a net loss in its most recently reported quarter. This was due in no small part to a fat $1.6 billion-plus break-up fee it paid fellow pharmaceutical Shire PLC following an abandoned buyout attempt.
Yet in terms of core earnings drivers, AbbVie's doing well. Sales of its star drug Humira advanced by 14% on a currency-adjusted basis in Q4. Humira accounted for 63% of the company's revenue last year , but that doesn't mean it's the only good performer -- lung infection treatment Synagis and Parkinson's disease drug Synagis grew by a respective 5% and 9% in Q4.
ABBV Cash from Operations (Annual) data by YCharts
The current portfolio should continue to be popular and profitable, meanwhile the company's pipeline features treatments with a lot of potential. Considering that, I believe the firm will find a way to stay Aristocratic.
AbbVie's next distribution is to be paid on May 15 to shareholders of record as of April 15.
Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out , and some early viewers are claiming it's destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here !
The article These Stocks Just Raised Their Dividends originally appeared on Fool.com.
Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, owns and recommends shares of Apple and Bank of America, and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. 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 - 2015 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. | ABBV Cash from Operations (Annual) data by YCharts The current portfolio should continue to be popular and profitable, meanwhile the company's pipeline features treatments with a lot of potential. AbbVie( ABBV ) Technically, this pharmaceutical major shouldn't be a dividend aristocrat, because it's only existed since 2013. But AbbVie makes the team because it's a spinoff of Abbott Laboratories , a steady longtime dividend raiser. | ABBV Cash from Operations (Annual) data by YCharts The current portfolio should continue to be popular and profitable, meanwhile the company's pipeline features treatments with a lot of potential. AbbVie( ABBV ) Technically, this pharmaceutical major shouldn't be a dividend aristocrat, because it's only existed since 2013. But AbbVie makes the team because it's a spinoff of Abbott Laboratories , a steady longtime dividend raiser. | AbbVie( ABBV ) Technically, this pharmaceutical major shouldn't be a dividend aristocrat, because it's only existed since 2013. But AbbVie makes the team because it's a spinoff of Abbott Laboratories , a steady longtime dividend raiser. Yet in terms of core earnings drivers, AbbVie's doing well. | AbbVie( ABBV ) Technically, this pharmaceutical major shouldn't be a dividend aristocrat, because it's only existed since 2013. But AbbVie makes the team because it's a spinoff of Abbott Laboratories , a steady longtime dividend raiser. Yet in terms of core earnings drivers, AbbVie's doing well. |
27041.0 | 2015-02-26 00:00:00 UTC | Biotech Head-to-Head: Gilead vs. Celgene | ABBV | https://www.nasdaq.com/articles/biotech-head-head-gilead-vs-celgene-2015-02-26 | nan | nan | It's Fool versus Fool on this health care edition of Industry Focus. Michael Douglass argues for Gilead Sciences , while Todd Campbell goes to bat for Celgene . Which of these biotech giants is the better investment?
Both companies have had great runs in recent years, and both have hugely successful drugs approved for major indications. One has a rock-solid balance sheet, while the other offers investors an unusually generous look into the future. They're both great buys, but is one a better choice for your investing style?
A full transcript follows the video.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
Michael Douglass: Better buy: Gilead Sciences versus Celgene. This is Industry Focus.
[INTRO]
Hi Fools, health care analyst Michael Douglass here and I'm on the phone with contributor Todd Campbell, from New Hampshire. Todd, how's the weather up there today?
Todd Campbell: We actually have some sun shining.
Douglass: What? No, no, no!
Campbell: I know, it's shocking! It's shocking, and if you hear any noise in the background, that's the crew of people that are up on top of the roof, clearing the mountain of snow that has built up over the course of the last few weeks.
Douglass: Oh, gosh. Dan Caplinger, one of our very well-known contributors, the Director of Investment Planning for The Motley Fool, was showing me on FaceTime some of the stuff; just mountains of snow, people-sized, around his house. It's just incredible to me.
Campbell: Yes, this is an amazing year. But it's great. This is the perfect time to stay inside and research our stocks, right?
Douglass: Exactly, and what better stocks to research than Gilead Sciences and Celgene Corporation? These are a pair of big biotech stocks that have really been on a lot of investors' radar. They've both had, let's say, fairly incredible three- and five-year runs.
But let's unpack these stocks a little bit and talk about what the opportunities are. Full disclosure to anyone listening or watching, Todd and I, I think we both own both of these stocks, don't we?
Campbell: Yes, I own both of them so this is going to be like choosing between two favorite children!
Douglass: That is why we love our biotech. I'll go ahead and lead off with Gilead, and then Todd, why don't you talk Celgene? We'll have a little bit of interplay and then we'll wrap up with our two cents.
For me, Gilead Sciences, this is the HIV and now hepatitis C powerhouse. I think there's one number that really emphasizes just how big Gilead Sciences has gotten, compared to how it used to be -- or two numbers, I suppose.
The first one is diluted EPS, 12 months ended December 31, 2014, and that is $7.35. Go back one year to 2013, it was $1.81. We're talking an enormous -- almost 4x -- growth in earnings per share. That's the sort of growth that we want to see in biotech. We don't see it very often, but when we do, usually there are rich rewards.
This is a company that has really focused on rewarding shareholders through its tremendous hepatitis C success. Let me talk about the successes real quick. In HIV, I want to say it's 8 out of 10 newly diagnosed HIV patients are on a cocktail with a Gilead drug involved.
What we're seeing there is just enormous market share. Gilead is focused on helping develop the next generation of HIV cocktails and there will be a lot more about that in the coming months, but really huge opportunities for the company there.
Then let's not forget hepatitis C; Sovaldi brought in over $10 billion last year, in its first full year on the market. Harvoni is Sovaldi plus ledipasvir, which essentially means you can take it interferon and ribavirin-free for hepatitis C type 1 patients.
Enormous opportunity; early uptick looks like it could be as good as, maybe even better than Sovaldi, and it's a higher price point, so that's a huge opportunity for the company -- and this is a company that's instituted a dividend, which shows just how stable they think their cash flow is.
They're sitting on a mound of cash, they're beginning to fight in oncology. The future looks really bright for Gilead Sciences.
Campbell: I can't disagree with any of that! Gilead Sciences is, without a doubt, a cash flow king right now. It's cranking out a tremendous amount of money. There's no getting around it.
The only reason that I'm going to talk about Celgene today instead of Gilead is because I think that investors in biotech tend to focus on growth rates, and there's no doubt in my mind -- you highlighted these numbers; they're fantastic for 2014 -- the point that I would make, however, is that Celgene's outlook for 2015 is good, but it's nowhere near as good as it was in 2014.
That makes me think that, if you're an investor in biotechnology stocks and you're interested in a company that's going to put up some really solid top and bottom line growth, I think you want to focus on Celgene.
The reason that I like Celgene is this. Here's a company that has been there and done that, just like Gilead has. It's a market dominator in its indication. It markets a slate of different drugs, it's got almost $7.8 billion in sales in 2014, so you're not talking about an emerging play. This is a company that is established.
This year, it's looking at seeing its sales grow by 22%, to $9.0-9.5 billion, which is great. That's fantastic growth. I think, for comparison, Gilead's looking at 4.4-8.4% growth in 2015 on the top line, depending on whether or you're using the low end of their guidance or the high end of their guidance.
Celgene should grow its top line more quickly, but that's not the only reason I like Celgene. Celgene is one of the few companies that actually is willing to give investors insight years ahead.
They're willing to go out and say, "You know what? We're going to tell you not only where guidance is for this current year, but we're going to give you an indication of where we think we're going to be further out, too."
In January, that guidance for 2017 is for between $13 and $14 billion in sales. They're looking at growing their sales from $7.7 billion in '14 to $13-14 billion by '17, and they're saying that at 2020 their revenue is going to be at least $20 billion.
Now, Gilead's obviously bigger, but that's dramatic sales growth over the course of the next five years, that investors really shouldn't ignore.
Fueling that growth, without doubt, is still going to be Revlimid. Revlimid is their multiple myeloma drug. It's approved as a second line therapy for this important indication. In February -- actually very recently, a few days back -- the FDA just gave Celgene the go-ahead to start marketing that drug as a first line therapy.
As a result, Celgene thinks, "We've got Revlimid. If it's selling at about a $5 billion run rate right now, we think that that drug could do $5.6-5.7 billion this year, and maybe $7 billion by 2017," so that drug should continue to post up some really solid growth.
It's also got a multiple myeloma drug for third line treatment in Pomalyst, that saw its sales grow 123% last year, to $679 million, and it's got a pancreatic cancer drug, Abraxane, that saw its sales grow 31% to $848 million last year, so you've got a lot of different drugs here that are all growing relatively quickly.
As a result, you've got a company that has, like Gilead, a rock-solid balance sheet, kicking off substantial shareholder-friendly cash flow.
Those are some of the reasons that I'm a fan of Celgene.
Douglass: Sure. I think you brought up a really important point, which is that Gilead -- which, to be fair, I have the suspicion that they're sandbagging a little bit on their top line guidance -- but that's just my personal opinion. You're 100% correct, that revenue growth looks like it's slowing down pretty dramatically.
Of course, people are also concerned because Gilead Sciences is more aggressively discounting its drugs to go ahead and get those public payers; your Medicaids, and of course some of the private insurers and the PBMs who have been pushing back on Sovaldi and Harvoni's cost, and of course in Europe as well, where they really require a coming-together on the price and dropping it a little bit, so I think there are some concerns for Gilead.
But let me also highlight, if I may, when you look at valuation -- and we don't talk valuation very much here in biotech, because how do you value a company that doesn't have earnings or sales, as so many biotechs do? But with Gilead and Celgene we've got earnings, we've got sales, we've got pretty consistent cash flows going on here. We've got indications of where these companies are.
When you look at the fact that, on a trailing 12 month measure price to earnings, Celgene 51 times earnings for price, Gilead 14 times earnings. You look at the forward -- and this is based on analyst estimates, so of course it could move -- Celgene's at 29 and Gilead's at 10 times earnings.
For me, gosh, you're paying so much more per dollar of earnings, even through next year, for a Celgene as compared to a Gilead. For me, that valuation difference makes a difference. It's why, actually, of the two, I've more recently purchased Gilead because I was just like, "Gosh, I think it's comparatively undervalued."
Campbell: Yes, it's hard to argue against ... it's a cheap stock. Gilead is a cheap stock.
Douglass: Yes. I can't believe we're saying this in biotech, but there is actually a fairly cheap stock!
Campbell: It's kind of fun to have a cheap stock to talk about in this space. It is. It's an inexpensive stock, and I think that the reason that it's inexpensive is because everybody has known for a long time that it's going to be a competitive marketplace for hepatitis C.
How much forward ... stocks tend to trade based upon what's going to happen tomorrow, not necessarily what happened yesterday, so what a lot of people have probably said is, "If the growth rate's going to slow for this, how much of a premium do I want to pay for next year earnings, especially if I don't know who the dominant player is going to be?"
AbbVie obviously coming out and releasing Viekira Pak in January, getting approval for it in December, has made a lot of people wonder, "How much market share will they get?"
I want to go out on record right now and say that there's no doubt in my mind, at least at this point, that Gilead is going to remain the dominant player in hep C this year. I think that Viekira Pak is an interesting drug. It will help a number of people. However, it's not nearly as good, in my eyes, as what Gilead's rolling out.
One of the other things, just to give a shout out, again, to the Gilead call here, is that we also have to think about what's going to happen later on down the pike. Who's going to have the next generation of shorter treatments in hepatitis C? I think Gilead's best positioned to do that as well.
That being said, I'm going to stick to my guns here and say that, in this space, I really think that investors are probably going to be more willing to reward Celgene's clarity into the future on revenue growth, than they will Gilead's.
These are both great stocks but I guess, in my eye, I tend to lean toward Celgene. But I'm obviously not going to try and talk you out of being long Gilead!
Douglass: Right! Especially, again, it's one of those things; "favorite" versus maybe "second favorite." Celgene and Gilead are both in both of our portfolios, and I think that's really important.
Folks, those of you who are listening, what do you think? What's your favorite biotech stock, whether or not it's Celgene or Gilead? Shoot us an email at hc@fool.com.
Also, one of the things that we talk a lot about here at The Motley Fool is trying to find the next big thing, the next big growth stock, the next thing that could really change the world, whether it's a hepatitis C cure, or personalized medicine, or electric cars, or the Internet of Things -- all of this stuff.
If you want to hear about how one of our co-founders, David Gardner, really looks at and seeks out growth stocks, shoot us an email at growth@fool.com and we'll tell you about that -- and then also about the Rule Breakers service, which David Gardner runs, which also focuses on growth stocks and on finding those next market-beating multi-bagger opportunities. Stocks that would definitely fit into that viewpoint, I think, would include a lot of your biotechs.
In summation, I think our answer is basically, if you're listening to Todd, "If you've got money they both look pretty darn good, but Celgene may be a little bit better." If you're listening to me, "Both look pretty darn good, Gilead may be just a little bit better," but I certainly wouldn't be sorry to go the other side on this.
Again, we're both in both of these stocks because we think they're just both fantastic, incredible growth businesses with huge opportunities and bright futures ahead. Thank you everybody for listening and watching us on Fool.com. For The Motley Fool, I'm Michael Douglass. Have a fantastic rest of your week, and Fool on!
The article Biotech Head-to-Head: Gilead vs. Celgene originally appeared on Fool.com.
Michael Douglass owns shares of Gilead Sciences and Celgene. Todd Campbell owns shares of Gilead Sciences and Celgene. The Motley Fool recommends Celgene and Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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 obviously coming out and releasing Viekira Pak in January, getting approval for it in December, has made a lot of people wonder, "How much market share will they get?" If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. Dan Caplinger, one of our very well-known contributors, the Director of Investment Planning for The Motley Fool, was showing me on FaceTime some of the stuff; just mountains of snow, people-sized, around his house. | AbbVie obviously coming out and releasing Viekira Pak in January, getting approval for it in December, has made a lot of people wonder, "How much market share will they get?" Michael Douglass: Better buy: Gilead Sciences versus Celgene. The only reason that I'm going to talk about Celgene today instead of Gilead is because I think that investors in biotech tend to focus on growth rates, and there's no doubt in my mind -- you highlighted these numbers; they're fantastic for 2014 -- the point that I would make, however, is that Celgene's outlook for 2015 is good, but it's nowhere near as good as it was in 2014. | AbbVie obviously coming out and releasing Viekira Pak in January, getting approval for it in December, has made a lot of people wonder, "How much market share will they get?" Michael Douglass argues for Gilead Sciences , while Todd Campbell goes to bat for Celgene . The only reason that I'm going to talk about Celgene today instead of Gilead is because I think that investors in biotech tend to focus on growth rates, and there's no doubt in my mind -- you highlighted these numbers; they're fantastic for 2014 -- the point that I would make, however, is that Celgene's outlook for 2015 is good, but it's nowhere near as good as it was in 2014. | AbbVie obviously coming out and releasing Viekira Pak in January, getting approval for it in December, has made a lot of people wonder, "How much market share will they get?" Then let's not forget hepatitis C; Sovaldi brought in over $10 billion last year, in its first full year on the market. The only reason that I'm going to talk about Celgene today instead of Gilead is because I think that investors in biotech tend to focus on growth rates, and there's no doubt in my mind -- you highlighted these numbers; they're fantastic for 2014 -- the point that I would make, however, is that Celgene's outlook for 2015 is good, but it's nowhere near as good as it was in 2014. |
27042.0 | 2015-02-24 00:00:00 UTC | Express Scripts Earnings Set the Stage for Growth | ABBV | https://www.nasdaq.com/articles/express-scripts-earnings-set-stage-growth-2015-02-24 | nan | nan | Source: Express Scripts.
As healthcare payers hunt for ways to rein in ever-higher drug costs, the pharmacy benefit manager Goliath Express Scripts Holding Company reported better-than-expected fourth-quarter results, and full year 2014 results that indicate revenue headwinds are easing.
By the numbers
Express Scripts' fourth-quarter sales totaled $26.31 billion, and those results outpaced the average consensus Wall Street analyst forecast by $630 million.
Express Scripts also announced that its earnings per share reached $1.39, which were both a penny above analysts' estimates, and 24% above the EPS reported in the fourth quarter of 2013.
For the full year, Express Scripts' sales totaled $100.9 billion, which was down slightly from the $104 billion the company notched in 2013. Express Scripts' EPS grew to $4.88 during 2014, up from $4.33 in 2013.
Behind the numbers
In 2013, Express Scripts lost a top customer when UnitedHealth Group decided to take its PBM business in-house. That client loss weighed down Express Scripts' full-year revenue results in 2014; however, that headwind should disappear in 2015 given that it's been more than a year since the last revenue from UnitedHealth was recorded.
Assuming Express Scripts doesn't suffer any significant additional client losses this year, investors should start seeing the top line begin growing again. If it does, then moves made by the company to reduce spending last year should allow more money to flow from revenue to the bottom line.
That appears to already be happening. In the fourth quarter, Express Scripts' revenue improved by $531 million, or 2%, versus a year ago, while in the third quarter, revenue had slipped by 1% versus the third quarter of 2013.
Thanks to that fourth-quarter performance, the company's year-over-year sales decline improved from -4.8% through the first nine months of last year to just -3.1% for the full year.
The company's cost-savings moves, which include integration savings tied to its 2012 megamerger with competitor Medco Health, are also already showing signs of improving the company's profitability.
In the fourth quarter, spending on SG&A improved to 4.38% of revenue from 4.78% of revenue the year before. For the full year, Express Scripts' spending on SG&A fell to $4.3 billion last year, down from $4.6 billion in 2013.
As a result, despite full-year sales slipping in 2014, the company still delivered $8.5 billion in adjusted gross profit, up from $8.49 billion in 2013.
Looking ahead
The pressure on healthcare payers to tamp down spending on prescription drugs provides significant tailwinds for PBMs like Express Scripts.
Express Scripts' ability to use its market might to negotiate stiff price cuts from drugmakers, such as in its recent exclusivity deal with AbbVie for the hepatitis C drug Viekira Pak, should allow the company to continue attracting big, high-quality clients.
As a result, Express Scripts is guiding for investors to expect that it will deliver EPS of between $5.35 and $5.49 in 2015. If it does, that would represent growth of between 10% and 13% from 2014 and would likely give Express Scripts plenty of financial flexibility to continue rewarding investors with shareholder-friendly buybacks. Last year, Express Scripts repurchased 62.1 million of its shares, and it still has 83.7 million shares remaining on its buyback authorization.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns, you will need to get in early -- check out The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Express Scripts Earnings Set the Stage for Growth 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 or may not have positions in the companies mentioned. The Motley Fool recommends Express Scripts and UnitedHealth Group. The Motley Fool owns shares of Express Scripts. 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 - 2015 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. | Express Scripts' ability to use its market might to negotiate stiff price cuts from drugmakers, such as in its recent exclusivity deal with AbbVie for the hepatitis C drug Viekira Pak, should allow the company to continue attracting big, high-quality clients. Assuming Express Scripts doesn't suffer any significant additional client losses this year, investors should start seeing the top line begin growing again. If you hope to outsmart Wall Street and realize multi-bagger returns, you will need to get in early -- check out The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. | Express Scripts' ability to use its market might to negotiate stiff price cuts from drugmakers, such as in its recent exclusivity deal with AbbVie for the hepatitis C drug Viekira Pak, should allow the company to continue attracting big, high-quality clients. As healthcare payers hunt for ways to rein in ever-higher drug costs, the pharmacy benefit manager Goliath Express Scripts Holding Company reported better-than-expected fourth-quarter results, and full year 2014 results that indicate revenue headwinds are easing. For the full year, Express Scripts' sales totaled $100.9 billion, which was down slightly from the $104 billion the company notched in 2013. | Express Scripts' ability to use its market might to negotiate stiff price cuts from drugmakers, such as in its recent exclusivity deal with AbbVie for the hepatitis C drug Viekira Pak, should allow the company to continue attracting big, high-quality clients. As healthcare payers hunt for ways to rein in ever-higher drug costs, the pharmacy benefit manager Goliath Express Scripts Holding Company reported better-than-expected fourth-quarter results, and full year 2014 results that indicate revenue headwinds are easing. In the fourth quarter, Express Scripts' revenue improved by $531 million, or 2%, versus a year ago, while in the third quarter, revenue had slipped by 1% versus the third quarter of 2013. | Express Scripts' ability to use its market might to negotiate stiff price cuts from drugmakers, such as in its recent exclusivity deal with AbbVie for the hepatitis C drug Viekira Pak, should allow the company to continue attracting big, high-quality clients. By the numbers Express Scripts' fourth-quarter sales totaled $26.31 billion, and those results outpaced the average consensus Wall Street analyst forecast by $630 million. Express Scripts also announced that its earnings per share reached $1.39, which were both a penny above analysts' estimates, and 24% above the EPS reported in the fourth quarter of 2013. |
27043.0 | 2015-02-22 00:00:00 UTC | 3 Biotech Stocks I'd Love to Stash Away in My Portfolio Forever | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-id-love-stash-away-my-portfolio-forever-2015-02-22 | nan | nan | No. 2: Gilead Sciences
Gilead Sciences shares have stalled since AbbVie won approval for its competing hepatitis C drug Viekira Pak in December. But that's OK. After all, stocks don't go up in a straight line, and when they do, they often retreat at some point along the way.
Sure, AbbVie's drug will cut into some of the market share for Gilead's market-leading hepatitis C drugs Sovaldi and Harvoni, which combined to generate more than $12 billion in sales during 2014, but I believe that it will be Gilead Sciences -- not AbbVie -- that rolls out the next generation of market dominating hepatitis C drugs. If so, Gilead Sciences could have plenty more running room in the indication.
In the U.S., there are roughly 3 million patients with hepatitis C, and that suggests it will take years for every patient in America to be treated. Additionally, there are over 150 million people globally that will need hepatitis C treatment, too. The sheer size of the patient population implies that hepatitis C drugs will remain blockbusters for years.
But, hepatitis C isn't the only reason I like Gilead Sciences long term. At the core of Gilead Sciences is a robust HIV drug franchise that includes five separate drugs that are on track to deliver more than one billion dollars in revenue this year. Altogether, sales of these HIV therapies eclipsed $10 billion in 2014, and since HIV patients are living much longer than they were a decade ago, it's unlikely that demand for those drugs will shrink.
Additionally, Gilead Sciences is also committed to establishing itself as a major player in oncology. The company's first cancer drug, Zydelig (idelalisib) launched last year, and it has five additional cancer drugs in development, too.
With the company's pockets overflowing thanks to its success so far, Gilead Sciences has the financial flexibility to fuel significant R&D and to reward investors. In January, the company decided to issue its first quarterly dividend of $0.43, and a bright future could mean that dividend payout climbs nicely in the future.
No. 3: Biogen Idec
Biogen Idec's dominance in multiple sclerosis is reason enough to like its stock, but Biogen Idec isn't simply relying on its MS blockbuster drugs Avonex, Tysabri, and Tecfidera to drive it higher in the future.
Last year, the company rolled out its first two hemophilia drugs, and while sales of those drugs totaled roughly $80 million in the fourth quarter, there should be plenty of room for growth. The hemophilia market is expected to grow from $8.5 billion in 2011 to $11.4 billion in 2016, and given that Biogen's two drugs have longer half-lives than previous therapies, it should be able to continue winning away share.
Biogen is also investing in research that could lead to additional drugs targeting other big markets. One of the most exciting of these drugs is BIIB-037, a treatment for Alzheimer's disease for which the company recently offered up some intriguing early stage results.
In a phase 1 study, BIIB-037 successfully reduced amyloid levels, suggesting that it could be used to destroy amyloid plagues that build up in the brain and are thought to be a reason behind the disease. Biogen's excitement over BIIB-037 is so high that it's skipping phase 2 trials and kicking off phase 3 trials in a move that it hopes will allow the drug to reach the market sooner. Results from that phase 3 trial probably won't be available until 2018, but given the need for Alzheimer's therapies, BIIB-037's potential helps make Biogen a name that could be worth sticking with for the long haul, too.
Staying the course
Owning companies for the long term can be hard, especially when the economy inevitably stumbles, but long-term thinking can help investors avoid the risk of reacting emotionally when times get tough. Building a solid foundation that includes owning great companies with rock solid balance sheets like these three may also help investors weather any eventual storms, and for that reason, I'm content to stash shares in these away for a long time.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Biotech Stocks I'd Love to Stash Away in My Portfolio Forever originally appeared on Fool.com.
Todd Campbell owns shares of Celgene, Gilead Sciences, and Biogen Idec. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. The Motley Fool recommends Celgene and Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | 2: Gilead Sciences Gilead Sciences shares have stalled since AbbVie won approval for its competing hepatitis C drug Viekira Pak in December. Sure, AbbVie's drug will cut into some of the market share for Gilead's market-leading hepatitis C drugs Sovaldi and Harvoni, which combined to generate more than $12 billion in sales during 2014, but I believe that it will be Gilead Sciences -- not AbbVie -- that rolls out the next generation of market dominating hepatitis C drugs. Results from that phase 3 trial probably won't be available until 2018, but given the need for Alzheimer's therapies, BIIB-037's potential helps make Biogen a name that could be worth sticking with for the long haul, too. | Sure, AbbVie's drug will cut into some of the market share for Gilead's market-leading hepatitis C drugs Sovaldi and Harvoni, which combined to generate more than $12 billion in sales during 2014, but I believe that it will be Gilead Sciences -- not AbbVie -- that rolls out the next generation of market dominating hepatitis C drugs. 2: Gilead Sciences Gilead Sciences shares have stalled since AbbVie won approval for its competing hepatitis C drug Viekira Pak in December. Todd Campbell owns shares of Celgene, Gilead Sciences, and Biogen Idec. | 2: Gilead Sciences Gilead Sciences shares have stalled since AbbVie won approval for its competing hepatitis C drug Viekira Pak in December. Sure, AbbVie's drug will cut into some of the market share for Gilead's market-leading hepatitis C drugs Sovaldi and Harvoni, which combined to generate more than $12 billion in sales during 2014, but I believe that it will be Gilead Sciences -- not AbbVie -- that rolls out the next generation of market dominating hepatitis C drugs. 3: Biogen Idec Biogen Idec's dominance in multiple sclerosis is reason enough to like its stock, but Biogen Idec isn't simply relying on its MS blockbuster drugs Avonex, Tysabri, and Tecfidera to drive it higher in the future. | Sure, AbbVie's drug will cut into some of the market share for Gilead's market-leading hepatitis C drugs Sovaldi and Harvoni, which combined to generate more than $12 billion in sales during 2014, but I believe that it will be Gilead Sciences -- not AbbVie -- that rolls out the next generation of market dominating hepatitis C drugs. 2: Gilead Sciences Gilead Sciences shares have stalled since AbbVie won approval for its competing hepatitis C drug Viekira Pak in December. But, hepatitis C isn't the only reason I like Gilead Sciences long term. |
27044.0 | 2015-02-22 00:00:00 UTC | There Are Crazy Valuations, and Then There Are the Valuations of These 3 Stocks | ABBV | https://www.nasdaq.com/articles/there-are-crazy-valuations-and-then-there-are-valuations-these-3-stocks-2015-02-22 | nan | nan | There are plenty of stocks with extreme valuations, and many of those valuations are based on very sound reasons. For example, if a company is projected to grow its earnings by over 20% per year, trading for 30 times forward earnings isn't unreasonable.
Photo credit: Keith Pomakis
However, some stocks have sky-high valuations that we can't figure out. Our analysts here discuss three examples and explain why their high valuations don't make a ton of sense.
Dan Caplinger
I'll inspire the wrath of many followers of the Fool's premium services, but I'm starting to think video-streaming specialist Netflix has gotten ahead of itself from a valuation standpoint. I'll be the first to admit that Netflix has shown superior growth recently, and its potential to expand around the world gives it an amazing opportunity that could dramatically bolster its future revenue. Moreover, by charging just a pittance in the U.S., Netflix has left itself room to increase its subscription rates without coming close to what you'd pay for a basic cable television subscription.
Even with Netflix's amazing opportunities, though, paying more than 100 times trailing earnings for shares is a stretch. Looking out to 2016, investors expect Netflix to earn about $5.57 per share, which would mark growth of about 30% from the company's 2014 results. Yet even with those projections, Netflix trades at more than 80 times 2016 forward earnings estimates. Admittedly, those following Netflix have been overly pessimistic about its earnings growth in the past, and faster growth rates could justify current valuations. But with so much already built into the stock price, I'm wary of putting money into Netflix right now.
Selena Maranjian
One particular stock that seems to have a crazy valuation is nevertheless appealing to me: Celgene Corporation , a major biotech player with a market capitalization recently near $93 billion. Like many companies with steep valuations, investors have high hopes and expectations for this company.
How overvalued is it? Well, its recent price-to-earnings (P/E) ratio was near 50, well above its five-year average of 34, while its price-to-sales ratio and price-to-cash-flow ratios were both more than 50% above their five-year averages. That's certainly not inviting.
How did Celgene's value rise so much? To start, many investors are excited about its offerings and its pipeline. It boasts the $5 billion-a-year multiple myeloma drug Revlimid, the $848 million-a-year cancer drug Abraxane, and the $680 million-a-year multiple myeloma drug Pomalyst. The company also recently launched its first autoimmune drug, Otezla, for psoriasis, and all four of those drugs are enjoying double-or triple-digit sales growth. Its pipeline is promising thanks to collaborations and -- in some cases -- equity stakes with emerging biotech companies.
Though Celgene's stock might seem too pricey to buy right now, it's actually appealingly priced. The current P/E might be high, but the company's revenue and earnings have grown briskly, respectively at 35% and 44% annually on average, over the past decade. Between 2013 and 2014, revenue grew 18%, while net income grew 38%. Given all that, its P/E based on the next four quarters of earnings is actually low -- only about 18, which isn't much more than half its five-year average. Its profit margins are fat, with gross margin recently at a whopping 95% and net marginstopping 20%, and its free cash flow tops $2 billion annually. Celgene's valuation might seem crazy, but so does its potential.
Keith Speights
You won't find too many stocks with higher price-to-earnings multiples than Pharmacyclics . The biotech's trailing P/E ratio stands at 147, and the forward multiple is even higher at 251.
What's behind Pharmacyclics' sky-high valuation? One drug. Pharmacyclics and development partner Johnson & Johnson in 2013 won FDA approval for Imbruvica as a treatment for mantle cell lymphoma, and they followed up with approval in 2014 for chronic lymphocytic leukemia. The companies just last month secured FDA approval for Imbruvica in treating another rare blood cancer, Waldenstrom's macroglobulinemia.
Imbruvica has already proven a success story, generating about $1 billion in sales last year. Some predict the drug could ultimately hit peak annual sales of $6 billion. However, Pharmacyclics receives only 50% of the profit from Imbruvica, with J&J taking the other half. Imbruvica also faces stiff competition from the likes of AbbVie and Celgene.
It's a great drug. Pharmacyclics is arguably a great up-and-coming biotech. But a great stock to buy? Not if you believe share prices eventually reflect actual earnings potential.
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The article There Are Crazy Valuations, and Then There Are the Valuations of These 3 Stocks originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. Keith Speights owns shares of Celgene. Selena Maranjian owns shares of Celgene, Johnson & Johnson, and Netflix. The Motley Fool recommends Celgene, Johnson & Johnson, and Netflix. The Motley Fool owns shares of Johnson & Johnson and Netflix. 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 - 2015 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. | Imbruvica also faces stiff competition from the likes of AbbVie and Celgene. Dan Caplinger I'll inspire the wrath of many followers of the Fool's premium services, but I'm starting to think video-streaming specialist Netflix has gotten ahead of itself from a valuation standpoint. I'll be the first to admit that Netflix has shown superior growth recently, and its potential to expand around the world gives it an amazing opportunity that could dramatically bolster its future revenue. | Imbruvica also faces stiff competition from the likes of AbbVie and Celgene. It boasts the $5 billion-a-year multiple myeloma drug Revlimid, the $848 million-a-year cancer drug Abraxane, and the $680 million-a-year multiple myeloma drug Pomalyst. Selena Maranjian owns shares of Celgene, Johnson & Johnson, and Netflix. | Imbruvica also faces stiff competition from the likes of AbbVie and Celgene. Selena Maranjian One particular stock that seems to have a crazy valuation is nevertheless appealing to me: Celgene Corporation , a major biotech player with a market capitalization recently near $93 billion. The Motley Fool recommends Celgene, Johnson & Johnson, and Netflix. | Imbruvica also faces stiff competition from the likes of AbbVie and Celgene. Even with Netflix's amazing opportunities, though, paying more than 100 times trailing earnings for shares is a stretch. Looking out to 2016, investors expect Netflix to earn about $5.57 per share, which would mark growth of about 30% from the company's 2014 results. |
27045.0 | 2015-02-21 00:00:00 UTC | Pssst... Pfizer Just Told Investors That This is the Next Big Thing | ABBV | https://www.nasdaq.com/articles/pssst-pfizer-just-told-investors-next-big-thing-2015-02-21 | nan | nan | Source: Flickr user Bill Brooks .
When drugmaking Goliath Pfizer recently agreed to purchase Hospira Inc . , a maker of specialty drugs and biosimilas, it sent a signal to investors that biosimilars could be the next big thing in healthcare.
Pfizer's vote of confidence in biosimilars -- the generic alternatives to biologic-based medicines such as AbbVie 's megablockbuster drug Humira -- isn't misplaced. According to Frost & Sullivan, the biosimilar market is expected to surge from just $172 million in 2010 to more than $4 billion in 2017. With growth like that, investors ought to pay attention.
Billions at stake
Pfizer's willingness to spend $17 billion, including debt, to acquire Hospira could prove to be brilliant .
Pfizer has struggled to recoup the sales it lost when Lipitor, its $12 billion-per-year cholesterol buster, went off-patent in 2011. Hospira's expertise in injection-based medicine and its early leadership in the making and marketing of biosimilars could turn Pfizer into a growth company again.
According to IMS Health , biologics will account for 19% to 20% of total drug spending in 2017, which would make the biologics market worth $221 billion that year. Since $70 billion in branded biologics are expected to be off-patent by 2018, cost-conscious healthcare payers are likely to embrace biosimilars, which are typically 30% to 40% less expensive than their biologic cousins.
Market leaders
The revenue opportunity for biosimilars could prove bigger than the revenue opportunity for generic small molecule drugs. Biologics typically carry price tags far higher than traditional small molecule drugs, and biosimilars' price discount is far less than the 70% to 90% discount for traditional generics.
Hospira was arguably among the most compelling of the publicly traded companies developing biosimilars, but other large drugmakers are also spending big bucks to create biosimilar businesses.
For example, Amgen is putting its biologics expertise to work in a bid to carve out a large chunk of the biosimilar market.
Amgen has nine biosimilars in development and expects these drugs could begin making their way to the market as early as 2017.Earlier this month, Amgen reported that ABP 501, a biosimilar to AbbVie's Humira, showed itself to be clinically equivalent to Humira in a phase 3 trial. That trial studied ABP 501 head-to-head against Humira in 526 patients with moderate-to-severe rheumatoid arthritis. Previously, ABP 501 had also proven clinically equivalent to Humira in psoriasis. If those results hold up, Amgen could be positioned to compete for Humira's $12.5 billion in annual sales when the drug loses patent protection at the end of 2016. Amgen also expects this year to report phase 3 trial data for its biosimilar of Roche 's top-selling cancer drug Avastin.
Source: Novartis
Novartis ' Sandoz generic unit is also likely to be a big player in biosimilars. Sandoz already has three biosimilars approved abroad, where those three drugs racked up more than $400 million in sales in 2013. Sandoz's three biosimilars serve as alternatives to the blockbuster biologics Epogen, Neupogen, and human growth hormone. In addition, Sandoz has five other biosimilars in phase 3 trials, including alternatives to Humira, Rituxan, and Enbrel.
Looking ahead
Biosimilars are already on the market in Europe, but the FDA has been slow to approve them in the United States. However, a key FDA advisory panel announced in January that it backed approval for Novartis' Neupogen biosimilar. If that product wins an official FDA go-ahead this year, it could mark the dawn of a new and highly profit-friendly era that could deliver billions of dollars to Pfizer, Amgen, and Novartis investors.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Pssst... Pfizer Just Told Investors That This is the Next Big Thing 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 or may not 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 - 2015 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. | Pfizer's vote of confidence in biosimilars -- the generic alternatives to biologic-based medicines such as AbbVie 's megablockbuster drug Humira -- isn't misplaced. Amgen has nine biosimilars in development and expects these drugs could begin making their way to the market as early as 2017.Earlier this month, Amgen reported that ABP 501, a biosimilar to AbbVie's Humira, showed itself to be clinically equivalent to Humira in a phase 3 trial. If those results hold up, Amgen could be positioned to compete for Humira's $12.5 billion in annual sales when the drug loses patent protection at the end of 2016. | Pfizer's vote of confidence in biosimilars -- the generic alternatives to biologic-based medicines such as AbbVie 's megablockbuster drug Humira -- isn't misplaced. Amgen has nine biosimilars in development and expects these drugs could begin making their way to the market as early as 2017.Earlier this month, Amgen reported that ABP 501, a biosimilar to AbbVie's Humira, showed itself to be clinically equivalent to Humira in a phase 3 trial. Market leaders The revenue opportunity for biosimilars could prove bigger than the revenue opportunity for generic small molecule drugs. | Amgen has nine biosimilars in development and expects these drugs could begin making their way to the market as early as 2017.Earlier this month, Amgen reported that ABP 501, a biosimilar to AbbVie's Humira, showed itself to be clinically equivalent to Humira in a phase 3 trial. Pfizer's vote of confidence in biosimilars -- the generic alternatives to biologic-based medicines such as AbbVie 's megablockbuster drug Humira -- isn't misplaced. Hospira's expertise in injection-based medicine and its early leadership in the making and marketing of biosimilars could turn Pfizer into a growth company again. | Amgen has nine biosimilars in development and expects these drugs could begin making their way to the market as early as 2017.Earlier this month, Amgen reported that ABP 501, a biosimilar to AbbVie's Humira, showed itself to be clinically equivalent to Humira in a phase 3 trial. Pfizer's vote of confidence in biosimilars -- the generic alternatives to biologic-based medicines such as AbbVie 's megablockbuster drug Humira -- isn't misplaced. Hospira's expertise in injection-based medicine and its early leadership in the making and marketing of biosimilars could turn Pfizer into a growth company again. |
27046.0 | 2015-02-20 00:00:00 UTC | Daily Dividend Report: ABT, STT, APA, IRM, ABBV, CL, CP, LO | ABBV | https://www.nasdaq.com/articles/daily-dividend-report-abt-stt-apa-irm-abbv-cl-cp-lo-2015-02-20 | nan | nan | Abbott ( ABT ) declared a quarterly common dividend of 24 cents per share. This marks the 365th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable May 15, 2015, to shareholders of record at the close of business on April 15, 2015.
State Street ( STT ) declared a quarterly cash dividend of $0.30 per share of common stock, payable April 16, 2015 to common shareholders of record as of April 1, 2015.
Apache Corporation ( APA ) has declared regular cash dividends on the company's common shares. The dividend on common shares of 25 cents per share is payable on May 22, 2015, to stockholders of record on April 22, 2015.
Iron Mountain ( IRM ) declared a cash dividend of $0.475 per share on the common stock of the company, payable on March 20, 2015 to shareholders of record at the close of business on March 6, 2015.
AbbVie ( ABBV ) increased the company's quarterly cash dividend by 4 percent from $0.49 per share to $0.51 per share. The cash dividend is payable May 15, 2015 to stockholders of record at the close of business on April 15, 2015.
Colgate-Palmolive Company increased the ongoing quarterly common stock cash dividend by 6%. The increase will be effective in the second quarter, 2015. The new rate of $.38 per share is up from $.36 per share. The Board declared that the second quarter dividend is to be paid on May 15, 2015 to shareholders of record as of April 23, 2015. On an annualized basis, the new dividend rate is $1.52 versus $1.44 per share previously. The Company has paid uninterrupted dividends on its common stock since 1895.
Canadian Pacific Railway (CP) declared a quarterly dividend of thirty-five cents ($0.35) Canadian per share on the outstanding Common Shares. The dividend is payable on April 27, 2015 to holders of record at the close of business on March 27, 2015.
And, Lorillard (LO) approved a 7% increase in the quarterly dividend on its common stock from $0.615 per share to $0.66 per share. The dividend is payable on March 10, 2015 to stockholders of record as of March 2, 2015.
VIDEO: Daily Dividend Report: ABT, STT, APA, IRM, ABBV, CL, CP, LO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: ABT, STT, APA, IRM, ABBV, CL, CP, LO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie ( ABBV ) increased the company's quarterly cash dividend by 4 percent from $0.49 per share to $0.51 per share. Apache Corporation ( APA ) has declared regular cash dividends on the company's common shares. | VIDEO: Daily Dividend Report: ABT, STT, APA, IRM, ABBV, CL, CP, LO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie ( ABBV ) increased the company's quarterly cash dividend by 4 percent from $0.49 per share to $0.51 per share. State Street ( STT ) declared a quarterly cash dividend of $0.30 per share of common stock, payable April 16, 2015 to common shareholders of record as of April 1, 2015. | AbbVie ( ABBV ) increased the company's quarterly cash dividend by 4 percent from $0.49 per share to $0.51 per share. VIDEO: Daily Dividend Report: ABT, STT, APA, IRM, ABBV, CL, CP, LO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. State Street ( STT ) declared a quarterly cash dividend of $0.30 per share of common stock, payable April 16, 2015 to common shareholders of record as of April 1, 2015. | AbbVie ( ABBV ) increased the company's quarterly cash dividend by 4 percent from $0.49 per share to $0.51 per share. VIDEO: Daily Dividend Report: ABT, STT, APA, IRM, ABBV, CL, CP, LO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Abbott ( ABT ) declared a quarterly common dividend of 24 cents per share. |
27047.0 | 2015-02-20 00:00:00 UTC | Will Express Scripts (ESRX) Beat Q4 Earnings Estimates? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/will-express-scripts-esrx-beat-q4-earnings-estimates-analyst-blog-2015-02-20 | nan | nan | Express Scripts ( ESRX ) is set to report fourth-quarter and full-year 2014 results on Feb 23, 2015.
Express Scripts reported in-line results in the last quarter. However, the average earnings miss over the last four quarters is 0.29%. Let us see how things are shaping up for this announcement.
Factors at Play in Q4
Express Scripts stands to benefit from increased generic utilization, shift towards mail orders, strong specialty growth and an aging population. Branded drugs are becoming increasingly expensive due to double-digit brand inflation, continued rise in the price of specialty drugs and overwhelming regulatory burden pushing demand for generics.
Specialty drugs are projected to grow significantly over the next three years driven by inflation, new drugs (particularly for indications like Hepatitis C) and increased utilization of the same. Hence, clients need innovative solutions to counter this trend. In Dec 2014, Express Scripts announced an update to its National Preferred Formulary, providing access to AbbVie's ( ABBV ) Viekira Pak over Gilead Sciences' ( GILD ) treatments over favorable pricing terms. Moreover, consumers are taking a proactive approach in managing their healthcare decisions. All these trends bode well for the company as they allow it to create solutions such as home delivery programs, narrow networks, restricted formularies and specialized care. Increased generic uptake and higher use of mail orders should help the company improve its margins and profitability.
Meanwhile, Express Scripts has been actively pursuing deals and acquisitions to drive growth. In Apr 2012, Express Scripts had acquired healthcare company, Medco Health Solutions, for $29.1 billion. We view the acquisition as a positive for the company and are impressed by the integration process. It should boost results in the forthcoming quarters.
What Our Model Indicates
Our proven model does not conclusively show that Express Scripts is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. That is not the case here as you will see below.
Zacks ESP : Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the aforementioned estimates currently stand at $1.38.
Zacks Rank : Express Scripts currently carries a Zacks Rank #3 which increases the predictive power of ESP. Hoever, a 0.00% ESP makes surprise prediction difficult.
However, we caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Stocks that Warrant a Look
Here is one other company in the broader health care sector you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Isis Pharmaceuticals, Inc. ( ISIS ) has an earnings ESP of +33.33% and carries a Zacks Rank #2. It is expected to report its fourth-quarter 2014 results on Feb 27, 2015.
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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 Dec 2014, Express Scripts announced an update to its National Preferred Formulary, providing access to AbbVie's ( ABBV ) Viekira Pak over Gilead Sciences' ( GILD ) treatments over favorable pricing terms. Click to get this free report ISIS PHARMACEUT (ISIS): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play in Q4 Express Scripts stands to benefit from increased generic utilization, shift towards mail orders, strong specialty growth and an aging population. | Click to get this free report ISIS PHARMACEUT (ISIS): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In Dec 2014, Express Scripts announced an update to its National Preferred Formulary, providing access to AbbVie's ( ABBV ) Viekira Pak over Gilead Sciences' ( GILD ) treatments over favorable pricing terms. Factors at Play in Q4 Express Scripts stands to benefit from increased generic utilization, shift towards mail orders, strong specialty growth and an aging population. | Click to get this free report ISIS PHARMACEUT (ISIS): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In Dec 2014, Express Scripts announced an update to its National Preferred Formulary, providing access to AbbVie's ( ABBV ) Viekira Pak over Gilead Sciences' ( GILD ) treatments over favorable pricing terms. Zacks Rank : Express Scripts currently carries a Zacks Rank #3 which increases the predictive power of ESP. | Click to get this free report ISIS PHARMACEUT (ISIS): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In Dec 2014, Express Scripts announced an update to its National Preferred Formulary, providing access to AbbVie's ( ABBV ) Viekira Pak over Gilead Sciences' ( GILD ) treatments over favorable pricing terms. Factors at Play in Q4 Express Scripts stands to benefit from increased generic utilization, shift towards mail orders, strong specialty growth and an aging population. |
27048.0 | 2015-02-20 00:00:00 UTC | Friday's ETF with Unusual Volume: PTH | ABBV | https://www.nasdaq.com/articles/fridays-etf-unusual-volume-pth-2015-02-20 | nan | nan | The PowerShares DWA Healthcare Momentum Portfolio ETF ( PTH ) is seeing unusually high volume in afternoon trading Friday, with over 77,000 shares traded versus three month average volume of about 26,000. Shares of PTH were up about 1% on the day.
Components of that ETF with the highest volume on Friday were Ariad Pharmaceuticals ( ARIA ), trading up about 7.8% with over 9.6 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 1.7% on volume of over 4.8 million shares. Newlink Genetics ( NLNK ) is lagging other components of the PowerShares DWA Healthcare Momentum Portfolio ETF Friday, trading lower by about 2.3%.
VIDEO: Friday's ETF with Unusual Volume: PTH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF with the highest volume on Friday were Ariad Pharmaceuticals ( ARIA ), trading up about 7.8% with over 9.6 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 1.7% on volume of over 4.8 million shares. The PowerShares DWA Healthcare Momentum Portfolio ETF ( PTH ) is seeing unusually high volume in afternoon trading Friday, with over 77,000 shares traded versus three month average volume of about 26,000. Newlink Genetics ( NLNK ) is lagging other components of the PowerShares DWA Healthcare Momentum Portfolio ETF Friday, trading lower by about 2.3%. | Components of that ETF with the highest volume on Friday were Ariad Pharmaceuticals ( ARIA ), trading up about 7.8% with over 9.6 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 1.7% on volume of over 4.8 million shares. The PowerShares DWA Healthcare Momentum Portfolio ETF ( PTH ) is seeing unusually high volume in afternoon trading Friday, with over 77,000 shares traded versus three month average volume of about 26,000. Newlink Genetics ( NLNK ) is lagging other components of the PowerShares DWA Healthcare Momentum Portfolio ETF Friday, trading lower by about 2.3%. | Components of that ETF with the highest volume on Friday were Ariad Pharmaceuticals ( ARIA ), trading up about 7.8% with over 9.6 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 1.7% on volume of over 4.8 million shares. The PowerShares DWA Healthcare Momentum Portfolio ETF ( PTH ) is seeing unusually high volume in afternoon trading Friday, with over 77,000 shares traded versus three month average volume of about 26,000. VIDEO: Friday's ETF with Unusual Volume: PTH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF with the highest volume on Friday were Ariad Pharmaceuticals ( ARIA ), trading up about 7.8% with over 9.6 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 1.7% on volume of over 4.8 million shares. The PowerShares DWA Healthcare Momentum Portfolio ETF ( PTH ) is seeing unusually high volume in afternoon trading Friday, with over 77,000 shares traded versus three month average volume of about 26,000. Shares of PTH were up about 1% on the day. |
27049.0 | 2015-02-20 00:00:00 UTC | Noteworthy ETF Outflows: JKD, PEP, MO, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows-jkd-pep-mo-abbv-2015-02-20 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Morningstar Large-Cap ETF (Symbol: JKD) where we have detected an approximate $24.7 million dollar outflow -- that's a 3.3% decrease week over week (from 6,050,000 to 5,850,000). Among the largest underlying components of JKD, in trading today PepsiCo Inc. (Symbol: PEP) is off about 0.9%, Altria Group Inc (Symbol: MO) is off about 1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1%. For a complete list of holdings, visit the JKD Holdings page » The chart below shows the one year price performance of JKD, versus its 200 day moving average:
Looking at the chart above, JKD's low point in its 52 week range is $106.26 per share, with $126.28 as the 52 week high point - that compares with a last trade of $123.07. 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 JKD, in trading today PepsiCo Inc. (Symbol: PEP) is off about 0.9%, Altria Group Inc (Symbol: MO) is off about 1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1%. For a complete list of holdings, visit the JKD Holdings page » The chart below shows the one year price performance of JKD, versus its 200 day moving average: Looking at the chart above, JKD's low point in its 52 week range is $106.26 per share, with $126.28 as the 52 week high point - that compares with a last trade of $123.07. 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 JKD, in trading today PepsiCo Inc. (Symbol: PEP) is off about 0.9%, Altria Group Inc (Symbol: MO) is off about 1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1%. For a complete list of holdings, visit the JKD Holdings page » The chart below shows the one year price performance of JKD, versus its 200 day moving average: Looking at the chart above, JKD's low point in its 52 week range is $106.26 per share, with $126.28 as the 52 week high point - that compares with a last trade of $123.07. 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 JKD, in trading today PepsiCo Inc. (Symbol: PEP) is off about 0.9%, Altria Group Inc (Symbol: MO) is off about 1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Morningstar Large-Cap ETF (Symbol: JKD) where we have detected an approximate $24.7 million dollar outflow -- that's a 3.3% decrease week over week (from 6,050,000 to 5,850,000). For a complete list of holdings, visit the JKD Holdings page » The chart below shows the one year price performance of JKD, versus its 200 day moving average: Looking at the chart above, JKD's low point in its 52 week range is $106.26 per share, with $126.28 as the 52 week high point - that compares with a last trade of $123.07. | Among the largest underlying components of JKD, in trading today PepsiCo Inc. (Symbol: PEP) is off about 0.9%, Altria Group Inc (Symbol: MO) is off about 1%, and AbbVie Inc. (Symbol: ABBV) is higher by about 1%. For a complete list of holdings, visit the JKD Holdings page » The chart below shows the one year price performance of JKD, versus its 200 day moving average: Looking at the chart above, JKD's low point in its 52 week range is $106.26 per share, with $126.28 as the 52 week high point - that compares with a last trade of $123.07. 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). |
27050.0 | 2015-02-19 00:00:00 UTC | Why Momenta Pharmaceuticals, Inc. Jumped Higher Today | ABBV | https://www.nasdaq.com/articles/why-momenta-pharmaceuticals-inc-jumped-higher-today-2015-02-19 | nan | nan | Although we don't believe intiming the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What:Momenta Pharmaceuticals shares surged by more than 10% earlier Thursday, just two days after reporting lower-than-expected fourth-quarter sales and profit. Shares closed Thursday up 3% from the previous day's close.
So What: The generic-drug and biosimilars company markets a generic formulation of the cardiology drug Lovenox, and is developing a slate of generic biosimilars that could eventually compete for billions of dollars in revenue as high-priced biologics lose patent protection.
During the fourth quarter, Momenta's sales totaled $21.4 million. However, the majority of those sales -- some $16.4 million -- came from collaboration revenue paid by Baxter International under the terms of the companies' agreement to develop a biosimilar for AbbVie's Humira and Bristol-Myers Squibb's Orencia.
In addition to that collaboration revenue, Momenta also reported that it received $4.7 million in royalties from Novartis ' Sandoz generic unit in the quarter under the terms of its agreement with Sandoz on sales of generic Lovenox.
Momenta also updated investors on its spending, reporting that R&D expenses totaled $26.2 million in the quarter, and general and administrative expenses were $11.1 million. Since the company's expenses continue to outpace its revenue, the amount of cash on Momenta's books slipped from $245.7 million exiting December 2013 to $191.5 million coming out of 2014.
Now what: Lovenox royalties were essentially flat year over year due to lower prices, and collaboration revenue could fall in 2015. Baxter has decided to opt out of collaborating on Momenta's Orencia biosimilar, and has chosen not to expand its agreement to include other biosimilars outside of Humira. As a result, Momenta expects that its cash-burn rate will reach $30 million in the first quarter.
Momenta is seeking a new collaborator on its Orencia biosimilar, and there is the potential that the FDA will approve its biosimilar of Teva Pharmaceutical 's multibillion-dollar multiple sclerosis blockbuster Copaxone this year. An application for its Copaxone biosimilar has been submitted by Momenta's development partner Novartis; however, Teva's legal maneuvering has delayed an FDA decision. Overall, the market potential for biosimilars is arguably massive , and that suggests that Momenta could benefit long term -- especially if it can offset its costs through new collaborations.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Momenta Pharmaceuticals, Inc. Jumped Higher Today originally appeared on Fool.com.
Todd Campbell has no position in any stocks mentioned. The Motley Fool recommends Baxter International, Momenta Pharmaceuticals, and Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 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, the majority of those sales -- some $16.4 million -- came from collaboration revenue paid by Baxter International under the terms of the companies' agreement to develop a biosimilar for AbbVie's Humira and Bristol-Myers Squibb's Orencia. An application for its Copaxone biosimilar has been submitted by Momenta's development partner Novartis; however, Teva's legal maneuvering has delayed an FDA decision. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. | However, the majority of those sales -- some $16.4 million -- came from collaboration revenue paid by Baxter International under the terms of the companies' agreement to develop a biosimilar for AbbVie's Humira and Bristol-Myers Squibb's Orencia. In addition to that collaboration revenue, Momenta also reported that it received $4.7 million in royalties from Novartis ' Sandoz generic unit in the quarter under the terms of its agreement with Sandoz on sales of generic Lovenox. The Motley Fool recommends Baxter International, Momenta Pharmaceuticals, and Teva Pharmaceutical Industries. | However, the majority of those sales -- some $16.4 million -- came from collaboration revenue paid by Baxter International under the terms of the companies' agreement to develop a biosimilar for AbbVie's Humira and Bristol-Myers Squibb's Orencia. In addition to that collaboration revenue, Momenta also reported that it received $4.7 million in royalties from Novartis ' Sandoz generic unit in the quarter under the terms of its agreement with Sandoz on sales of generic Lovenox. Momenta is seeking a new collaborator on its Orencia biosimilar, and there is the potential that the FDA will approve its biosimilar of Teva Pharmaceutical 's multibillion-dollar multiple sclerosis blockbuster Copaxone this year. | However, the majority of those sales -- some $16.4 million -- came from collaboration revenue paid by Baxter International under the terms of the companies' agreement to develop a biosimilar for AbbVie's Humira and Bristol-Myers Squibb's Orencia. During the fourth quarter, Momenta's sales totaled $21.4 million. Momenta is seeking a new collaborator on its Orencia biosimilar, and there is the potential that the FDA will approve its biosimilar of Teva Pharmaceutical 's multibillion-dollar multiple sclerosis blockbuster Copaxone this year. |
27051.0 | 2015-02-18 00:00:00 UTC | Is Gilead Sciences Inc. Stock Cheap Now? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc-stock-cheap-now-2015-02-18 | nan | nan | The stock market doesn't always make sense or act on rational terms. Sometimes good stocks are sold off for little or no reason.
That appears to be the case with Gilead Sciences . Gilead's shares have tanked due to pricing pressure from AbbVie 's newly approved hepatitis C combo therapy Viekira Pak. Specifically, investors have steadily marched out of the stock after management announced a whopping 46% price discount for Gilead hep C treatments Sovaldi and Harvoni during the company's fourth-quarter conference call. The net result has been this:
It appears to me that investors decided to completely ignore all the fantastic news emanating from the company. In fact, this massive sell-off makes absolutely no sense when viewed against Gilead's staggering growth metrics and value proposition going forward.
With this in mind, let's dig into the company's latest earnings release and consider why shares are perhaps shockingly cheap at current levels.
Any way you slice it, Gilead is cheap
If we begin by simply comparing Gilead's 12-month trailing P/E and forward P/E ratios, calculated using generally accepted accounting principles estimates of earnings per share, to some of its closest peers, a clear and consistent pattern becomes evident. Simply put, Gilead is one of the cheapest large-cap healthcare stocks around, as shown by the table below:
But P/E ratios can never tell the full story and perhaps only offer limited insight into a biotech's true value proposition. For that, we need to look at Gilead's revenue projections for 2015, as well as consider the company's clinical pipeline.
Source: Gilead
Revenue streams are overflowing
In 2014, Gilead grew its revenue to $24.5 billion, up a mind-boggling 127% year over year. While about half of total revenue was generated from the hep C dynamic duo of Harvoni and Sovaldi ($12.4 billion to be exact), the company did see enormous growth in other core products, especially its HIV franchise. Stribild sales, for example, more than doubled to $1.2 billion for the full year, compared to the previous year.
For 2015, management estimates revenue will grow at a respectable 14.3% to about $28.5 billion. Moreover, the steep pricing discounts for its hep C drugs should be offset, at least partially, by higher sales volumes due to greater access to the drugs in the U.S. and Europe.
So this red-hot biotech won't double its revenue again this year, but it should remain one of the fastest-growing large-cap healthcare companies in the world. Unfortunately, the market is acting like Gilead just lost a top-selling drug to the patent cliff.
Gilead's pipeline should keep the good times rolling
Unlike most large biotechs, Gilead hasn't exactly pursued a "shotgun" approach to drug development. Indeed, its clinical pipeline is demonstrably smaller than those of AbbVie, Pfizer, or J&J.
That said, Gilead has been tremendously successfully at advancing its most promising clinical candidates into late-stage development and eventually into the regulatory review phase, evinced by the recent approvals of Harvoni, Stribild, and Zydelig.
When this company puts its weight behind a certain drug, the chances of success are probably better than average. That's great news for investors.
Right now, Gilead is pushing a pan-genotypic protease inhibitor, GS-9857, in combination with Sovaldi, into clinical development, with the the hope of shortening hepatitis C treatment duration from eight weeks to possibly as low as four weeks. This drug would act as a counterbalance to experimental rivals such as Achillion Pharmaceuticals ' ACH-3102 and help the company maintain its market-leading position in the valuable, yet competitive, hep C space.
Outside of the hep C realm, investors should keep a close eye on Gilead's FXR agonists from the newly acquired Phenex Pharmaceuticals, which are indicated for a host of liver diseases. These experimental compounds are expected to begin midstage testing later this year and could be fertile ground for Gilead's next blockbuster drug.
Should you buy Gilead right now?
Gilead is a great long-term buy, despite what the moody market is saying at present. There is no immediate competitor to the dominance of Harvoni and Sovaldi in the hep C market, and the company is rapidly working toward another breakthrough drug in this space that could significantly reduce treatment duration. Moreover, management has repeatedly shown a penchant for picking strong experimental candidates, making it highly likely another blockbuster drug will come down the pike soon.
Overall, the market will more than likely come to its senses at some point to properly value Gilead, suggesting now is indeed the time to grab some shares.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Is Gilead Sciences Inc. Stock Cheap Now? originally appeared on Fool.com.
George Budwell owns shares of AbbVie Inc. and Gilead Sciences. The Motley Fool recommends Celgene, Gilead Sciences, and Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | Gilead's shares have tanked due to pricing pressure from AbbVie 's newly approved hepatitis C combo therapy Viekira Pak. Indeed, its clinical pipeline is demonstrably smaller than those of AbbVie, Pfizer, or J&J. George Budwell owns shares of AbbVie Inc. and Gilead Sciences. | Gilead's shares have tanked due to pricing pressure from AbbVie 's newly approved hepatitis C combo therapy Viekira Pak. Indeed, its clinical pipeline is demonstrably smaller than those of AbbVie, Pfizer, or J&J. George Budwell owns shares of AbbVie Inc. and Gilead Sciences. | Gilead's shares have tanked due to pricing pressure from AbbVie 's newly approved hepatitis C combo therapy Viekira Pak. Indeed, its clinical pipeline is demonstrably smaller than those of AbbVie, Pfizer, or J&J. George Budwell owns shares of AbbVie Inc. and Gilead Sciences. | Gilead's shares have tanked due to pricing pressure from AbbVie 's newly approved hepatitis C combo therapy Viekira Pak. Indeed, its clinical pipeline is demonstrably smaller than those of AbbVie, Pfizer, or J&J. George Budwell owns shares of AbbVie Inc. and Gilead Sciences. |
27052.0 | 2015-02-17 00:00:00 UTC | Not Too Late to Ride on Q4 Earnings: 3 Biotech Picks - Earnings ESP | ABBV | https://www.nasdaq.com/articles/not-too-late-to-ride-on-q4-earnings%3A-3-biotech-picks-earnings-esp-2015-02-17 | nan | nan | The biotech sector saw a shift in dynamics toward the end of 2014 after pharmacy benefit manager Express Scripts (ESRX) entered into an agreement with AbbVieInc. (ABBV).
Express Scripts added lower priced Viekira Pak to its formulary, as an exclusive option for patients suffering from genotype 1 hepatitis C virus (HCV) infection, removing high-priced Gilead Sciences Inc.'s (GILD) Sovaldi and Harvoni and Johnson & Johnson's (JNJ) HCV drug Olysio from its National Preferred Formulary. This triggered concerns about pricing pressure on high-priced biotech drugs.
Gilead went on to state on its fourth quarter call that the company too is undertaking several pricing measures including an increase in discount, charge back and rebates due to the ongoing commercial payer contract negotiations. Gilead has entered into agreements with several pharmacy benefit managers and health care service companies including Cigna (CI) and Aetna for its HCV drugs.
Meanwhile, the sector continues to witness a flurry of mergers and acquisitions and licensing deals in the last few quarters. These deals show no signs of slowing down with the latest one being between Pfizer Inc. (PFE) and Hospira (HSP). Hospira will be acquired by Pfizer by the second half of 2015 in a deal valued at approximately $17 billion.
Focus on Q4 Earnings
The Q4 earnings season has been good so far for the biotech sector. Among the large biotech companies, several including Amgen Inc. (AMGN), Gilead and Regeneron (REGN) have reported better-than-expected results.
Thus, it may be a good idea to look at some companies in the biotech sector that have the potential to beat earnings in their upcoming releases. Although the earnings season is almost winding up, it is not too late to take positions in this bustling corner of the health care space. These stocks are well positioned in today's market environment, and could see considerable upside riding on the aforementioned trends. An earnings beat should help these stocks gain investor confidence and show a favorable price movement.
How to Pick?
Given a large number of biotech participants, pinpointing stocks that have the potential to beat estimates could appear to be a daunting task. But our proprietary methodology makes it fairly simple. One way to narrow down the list of choices this earnings season is by looking at stocks that have the combination of a favorable Zacks Rank - Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) - and a positive Zacks Earnings ESP .
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Below are three biotech stocks we believe are best positioned to stand out this earnings season.
Infinity Pharmaceuticals, Inc. ( INFI ) is a Zacks Rank #2 (Buy) stock with an Earnings ESP of +17.17%. The Zacks Consensus Estimate for fourth quarter 2014 is a loss of 99 cents. The company has registered positive earnings surprises in three of the last four quarters with an average beat of 86.88%.
This Cambridge, MA-based company is engaged in discovering and developing treatments for difficult-to-treat diseases. Duvelisib is the lead pipeline candidate at Infinity Pharma, which otherwise does not have any approved product in the market. The company is developing the candidate in collaboration with AbbVie for oncology indications. Infinity Pharma's net loss guidance for 2014 improved drastically from $170 -$180 million to $20 - $30 million owing to this deal.
- Infinity Pharma will be reporting fourth-quarter 2014 results after market close on Feb 24.
Pharmacyclics, Inc. ( PCYC ) , based in Sunnyvale, CA, is a Zacks Rank #2 stock with an earnings ESP of +9.09%. The Zacks Consensus Estimate for the fourth quarter 2014 is 88 cents.
Pharmacyclics, Inc. focuses on developing and commercializing innovative small-molecule candidates for treating cancer and immune mediated diseases. The company has a solid track record of delivering positive surprises with an average beat of 8.71% in the last four quarters. The company is expected to beat expectations in the fourth quarter as well. Pharmacyclics' sole marketed product, Imbruvica, should continue to perform well. For the fourth quarter of 2014, U.S. net product revenues are expected to be approximately $185 million, representing a sequential increase of approximately 31%.
- Pharmacyclics is scheduled to announce its fourth-quarter 2014 financial results after market closes on Feb 18.
Sarepta Therapeutics, Inc. ( SRPT ), based in Cambridge, MA, is focused on the discovery and development of RNA-based therapeutics targeting rare and infectious diseases. The stock carries a Zacks Rank #3 (Hold), with an earnings ESP of +12.05%. The Zacks Consensus Estimate for the to-be-reported quarter is an 83 cent loss.
Although the surprise history for this clinical-stage company has been mixed with two positive surprises in the trailing four quarters, it is poised for a beat this season. The company's lead pipeline candidate eteplirsen is being developed for the treatment of Duchenne muscular dystrophy.
- Sarepta is expected to report fourth-quarter 2014 results on Feb 26.
Bottom Line
Despite challenges like increasing competition, pricing pressure and the potential launch of biosimilars, we believe that key industry fundamentals remain intact. Newer therapies should aid growth. A sneak peek at the space for some outperformers, backed by a solid Zacks Rank and a positive earnings ESP, could be a great idea for investors to still gain from this earnings season.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The biotech sector saw a shift in dynamics toward the end of 2014 after pharmacy benefit manager Express Scripts (ESRX) entered into an agreement with AbbVieInc. (ABBV). The company is developing the candidate in collaboration with AbbVie for oncology indications. | The biotech sector saw a shift in dynamics toward the end of 2014 after pharmacy benefit manager Express Scripts (ESRX) entered into an agreement with AbbVieInc. (ABBV). The company is developing the candidate in collaboration with AbbVie for oncology indications. | The biotech sector saw a shift in dynamics toward the end of 2014 after pharmacy benefit manager Express Scripts (ESRX) entered into an agreement with AbbVieInc. (ABBV). The company is developing the candidate in collaboration with AbbVie for oncology indications. | The biotech sector saw a shift in dynamics toward the end of 2014 after pharmacy benefit manager Express Scripts (ESRX) entered into an agreement with AbbVieInc. (ABBV). The company is developing the candidate in collaboration with AbbVie for oncology indications. |
27053.0 | 2015-02-17 00:00:00 UTC | Surprise! We Still Need Drugmakers to Develop Revolutionary Hepatitis C Drugs | ABBV | https://www.nasdaq.com/articles/surprise-we-still-need-drugmakers-develop-revolutionary-hepatitis-c-drugs-2015-02-17 | nan | nan | Source: Gilead Sciences.
All of the market's chatter surrounding Gilead Sciences ' and AbbVie 's hepatitis C drugs this past year may have you thinking that these companies have won the decades long battle against this tough-to-treat disease. However, a study released in September by the pharmacy benefit manager juggernaut CVS Health found that 8.1% of patients in drug plans it manages taking Gilead's Sovaldi quit taking their medication prior to completing the 12-week treatment schedule. That discontinuation rate was quadruple the rate observed during clinical trials and reinforces just how badly patients still need new hepatitis C treatment options. http://www.cvshealth.com/sites/default/files/hepatitisCutilization.pdf
Improving the improvements
There's absolutely no doubt in my mind that the FDA's December 2013 approval of Sovaldi was a game-changing advance in patient treatment.
A decade ago, patients were treated with a cocktail comprising side effect-laden peginterferon and ribavirin that offered coin-flip cure rates. The 48-week treatment course was so difficult to stick with that during clinical trials a whopping 27% of patients stopped taking their medicine prior to completing the regimen.
The FDA's 2011 approval of Vertex Pharmaceuticals ' Incivek improved cure rates to 80% and cut treatment duration to 24 weeks; however, since peginterferon and ribavirin were still required alongside Incivek, nonadherence rates remained a big problem.
As a result, doctors and patients applauded the launch of Sovaldi, an oral drug that delivers 90%-plus cure rates over a 12-week treatment schedule. However, while Sovaldi casts aside the use of peginterferon for many patients, ribavirin remains necessary. According to CVS Health, 9% of patients taking that combination discontinued treatment before completing the 12-week treatment period.
Welcoming the next generation
This past October, the hepatitis C community welcomed Gilead Sciences' second-generation hepatitis C drug Harvoni.
Harvoni is a single tablet combination pill that includes Sovaldi and ledipasvir, a drug that targets the NS5A protein that plays an important role in hepatitis C's viral replication. In clinical trials, Harvoni's once-daily pill delivered cure rates in the mid-to-high 90% range over both an eight-week and a 12-week treatment period. Importantly, thanks to Harvoni not requiring treatment with peginterferon and ribavirin, the number of people who dropped out of its trials totaled less than 1%.
Source: AbbVie
In December, the FDA also approved AbbVie's competing hepatitis C drug, Viekira Pak. Viekira Pak is a cocktail of drugs delivered via up to four pills daily. In clinical trials, it delivered cure rates in the mid-90% range. However, the combination of a more onerous pill burden and the fact that Viekira Pak treatment still includes use of ribavirin in many patients, resulted in adherence rates below 90%.
Remaining work
Harvoni and Viekira Pak are only approved for use in genotype 1 patients, and, much like Sovaldi (and its predecessors), both remain far from perfect drugs.
With neither gaining FDA approval for use outside of genotype 1, and with AASLD treatment guidelines only recommending their use in genotype 1 and 4 patients, millions of patients globally must still rely on Sovaldi.
Additionally, while Harvoni posted far better adherence rates in clinical trials than did Viekira Pak, the real-world nonadherence rates for both drugs are likely to be higher than those achieved in these controlled settings.
Based on Sovaldi's real-world adherence rate, Harvoni's discontinuation rate could end up in the middle single-digits and Viekira Pak's nonadherence rate could also grow significantly above the numbers observed in trials. If so, that could mean the treatments still come up short for millions of people.
Looking ahead
Considerable advances still need to be made in hepatitis C treatment if we hope to effectively cure every one of the estimated 150 million people with the disease globally. Ultimately, the Holy Grail of hepatitis C treatment is delivering 100% functional cure rates across all genotypes in as little time as possible. We've made huge inroads toward achieving that lofty goal, but there is still a significant unmet need for new therapies. Investors, doctors, and patients should remain focused on hepatitis C research and development pipelines.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Surprise! We Still Need Drugmakers to Develop Revolutionary Hepatitis C Drugs 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 or may not have positions in the companies mentioned. Legal beagles won't let Todd ask them, or let them tell him. The Motley Fool recommends CVS Health, Gilead Sciences, and Vertex Pharmaceuticals. The Motley Fool owns shares of 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 - 2015 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. | All of the market's chatter surrounding Gilead Sciences ' and AbbVie 's hepatitis C drugs this past year may have you thinking that these companies have won the decades long battle against this tough-to-treat disease. Source: AbbVie In December, the FDA also approved AbbVie's competing hepatitis C drug, Viekira Pak. Harvoni is a single tablet combination pill that includes Sovaldi and ledipasvir, a drug that targets the NS5A protein that plays an important role in hepatitis C's viral replication. | All of the market's chatter surrounding Gilead Sciences ' and AbbVie 's hepatitis C drugs this past year may have you thinking that these companies have won the decades long battle against this tough-to-treat disease. Source: AbbVie In December, the FDA also approved AbbVie's competing hepatitis C drug, Viekira Pak. However, a study released in September by the pharmacy benefit manager juggernaut CVS Health found that 8.1% of patients in drug plans it manages taking Gilead's Sovaldi quit taking their medication prior to completing the 12-week treatment schedule. | All of the market's chatter surrounding Gilead Sciences ' and AbbVie 's hepatitis C drugs this past year may have you thinking that these companies have won the decades long battle against this tough-to-treat disease. Source: AbbVie In December, the FDA also approved AbbVie's competing hepatitis C drug, Viekira Pak. That discontinuation rate was quadruple the rate observed during clinical trials and reinforces just how badly patients still need new hepatitis C treatment options. | All of the market's chatter surrounding Gilead Sciences ' and AbbVie 's hepatitis C drugs this past year may have you thinking that these companies have won the decades long battle against this tough-to-treat disease. Source: AbbVie In December, the FDA also approved AbbVie's competing hepatitis C drug, Viekira Pak. The FDA's 2011 approval of Vertex Pharmaceuticals ' Incivek improved cure rates to 80% and cut treatment duration to 24 weeks; however, since peginterferon and ribavirin were still required alongside Incivek, nonadherence rates remained a big problem. |
27054.0 | 2015-02-17 00:00:00 UTC | Waiting for the Momenta to Regain | ABBV | https://www.nasdaq.com/articles/waiting-momenta-regain-2015-02-17 | nan | nan | There's potential for a lot to happen for Momenta Pharmaceuticals this year, but at this point the biotech is waiting on quite a few outside forces: potential partner(s), the FDA, and the court system.
While that would normally make for a rather boringearnings conference call there was news on Momenta's fourth quarter call about its collaboration with Baxter . As part of the 2011 partnership, Baxter had the option of licensing up to six biosimilar drugs, but following a decision to reorganize and focus on late-stage drugs, Baxter let the option expire and returned rights to its second pick, M834, to Momenta.
Losing a partner is a big deal, but this definitely appears to be one of those it's-not-you-it's-me kind of breakups. Baxter isn't even saying that biosimilars are a bad investment since the company is still retaining rights to the first biosimilar selected as part of the partnership, M923, a knockoff of AbbVie 's Humira. Baxter is running a 300 person clinical trial comparing M923 to the branded version, which should read out in the fourth quarter, putting it on track for regulatory approval in 2017.
Now that Momenta has regained rights to M834, which the biotech disclosed is a biosimilar version of Bristol-Myers Squibb 's Orencia, it's free to license the drug to another company. Hopefully that'll happen before the drug moves into the clinic next year, as the clinical trials aren't cheap. Momenta has six more biosimilars further behind in development, which the company can package with M834 if it wants to do a deal with a similar structure to the one with Baxter.
While the biosimilar program is years away from generating income, Momenta could get revenue from its generic version of Teva Pharmaceuticals ' Copaxone this year. Momenta and partner Novartis are still waiting on an approval from the FDA for the generic.
If the approval comes in before September 1, Novartis will have to decide whether it wants to make an at-risk launch, as Teva has one patent that doesn't expire until then. A Court of Appeals for the Federal Circuit found the patent invalid, but last month the Supreme Court sent the case back to the appeals court. It appears unlikely -- although not impossible -- that the appeals court will make a decision before the patent expires on September 1.
Momenta and Novartis are also waiting on the court system to make a decision in their patent lawsuit against Amphastar and Teva, which launched a generic version of Sanofi 's Lovenox to compete with Momenta and Novartis' copycat. Momenta claims that their manufacturing method infringes on one of Momenta's patents. If the court agrees -- the next decision could come this year -- Momenta and Novartis could eventually be awarded damages.
The award -- or potentially a settlement -- could mean hundreds of millions for Momenta. The company received just $4.7 million off sales of the drug in the fourth quarter, compared to the more than $80 million per quarter it was getting back in 2011 before Amphastar and Teva launched their competing generic.
With all this waiting and uncertain timing, Momenta has to be careful with its cash situation. The company ended last year with $191.5 million, including $18.3 million that it raised by selling stock through an "at the market" program. With a $30 million burn expected for the first quarter, the company has a year and half of cash, but has the option to extend that runway by selling more shares through its at the market program or by licensing the drugs in its pipeline, which could bring in upfront cash and/or lower expenses that would be picked up by the partner.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Waiting for the Momenta to Regain originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Baxter International and Momenta Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 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. | Baxter isn't even saying that biosimilars are a bad investment since the company is still retaining rights to the first biosimilar selected as part of the partnership, M923, a knockoff of AbbVie 's Humira. Baxter is running a 300 person clinical trial comparing M923 to the branded version, which should read out in the fourth quarter, putting it on track for regulatory approval in 2017. Now that Momenta has regained rights to M834, which the biotech disclosed is a biosimilar version of Bristol-Myers Squibb 's Orencia, it's free to license the drug to another company. | Baxter isn't even saying that biosimilars are a bad investment since the company is still retaining rights to the first biosimilar selected as part of the partnership, M923, a knockoff of AbbVie 's Humira. As part of the 2011 partnership, Baxter had the option of licensing up to six biosimilar drugs, but following a decision to reorganize and focus on late-stage drugs, Baxter let the option expire and returned rights to its second pick, M834, to Momenta. It appears unlikely -- although not impossible -- that the appeals court will make a decision before the patent expires on September 1. | Baxter isn't even saying that biosimilars are a bad investment since the company is still retaining rights to the first biosimilar selected as part of the partnership, M923, a knockoff of AbbVie 's Humira. There's potential for a lot to happen for Momenta Pharmaceuticals this year, but at this point the biotech is waiting on quite a few outside forces: potential partner(s), the FDA, and the court system. As part of the 2011 partnership, Baxter had the option of licensing up to six biosimilar drugs, but following a decision to reorganize and focus on late-stage drugs, Baxter let the option expire and returned rights to its second pick, M834, to Momenta. | Baxter isn't even saying that biosimilars are a bad investment since the company is still retaining rights to the first biosimilar selected as part of the partnership, M923, a knockoff of AbbVie 's Humira. There's potential for a lot to happen for Momenta Pharmaceuticals this year, but at this point the biotech is waiting on quite a few outside forces: potential partner(s), the FDA, and the court system. Momenta and Novartis are also waiting on the court system to make a decision in their patent lawsuit against Amphastar and Teva, which launched a generic version of Sanofi 's Lovenox to compete with Momenta and Novartis' copycat. |
27055.0 | 2015-02-16 00:00:00 UTC | Deal-Hungry Pfizer Won't Stop With Hospira; Who Could Be Next? | ABBV | https://www.nasdaq.com/articles/deal-hungry-pfizer-wont-stop-hospira-who-could-be-next-2015-02-16 | nan | nan | Courtesy of Flickr, Creative Commons/ David Goehring
Pfizer finally got its sweet deal!
After being spurned repeatedly by British drugmaker AstraZeneca , Pfizer recently anted up $17 billion for a much smaller drug company, Hospira . The deal represents a hefty 39% premium over the Illinois-based company's previous day close, but Pfizer's investors immediately applauded, tacking $6 billion onto Pfizer's market value the day after the deal was announced.
While the acquisition surprised almost everyone, I think it's a savvy move. Hospira will allow Pfizer to beef up its established products business, which has been on a downward trajectory, declining 9% year over year last year to $25 billion. The Hospira acquisition should boost that unit by $4 billion , making it the largest one by revenue, which could position it for a possible spinoff.
With Hospira, Pfizer is also tapping into biosimilars -- one of the most exciting new markets for drugmakers in the U.S. Biosimilars are lower-price knockoffs of costly biologic drugs that have been immune from competition in the United States.
All that could be changing. Biosimilars have long been available in Europe, and the FDA is on the cusp of approving them in the United States. Recently, an advisory panel to the FDA recommended approval of a biosimilar of the blockbuster Amgen drug Neupogen. If the agency gives the drug the go-ahead, it will be the first biosimilar in the U.S. and will pave the way for more of these drugs to enter the marketplace.
Hospira is already one of the largest providers of biosimilars in Europe. According to the The Wall Street Journal , adding Hospira's ready-made lineup of biosimilars to its pipeline should transform Pfizer into a leading player in biosimilars. We're not talking chickenfeed. Theglobal marketfor biosimilars could soar to $20 billion in annual sales in five years.
Pfizer's CEO Ian Read is known for being a big thinker, and let's face it -- amid the recent spate of Big Pharma megadeals, $17 billion looks like chump change. The logic goes that if Pfizer was willing to shell out $120 billion for AstraZeneca last spring, then it has plenty left, and Read isn't going to sit around and wait. "You don't go from potentially paying $120 billion for a major deal to something that's basically an hors d'oeuvre," said John Boris, of SunTrust Banks. "M&A will continue to be dominant."
For his part, Pfizer's CEO has said he's " aggressively looking at all alternatives," and analysts are bandying about a list of possible targets. So, who could be next on Pfizer's shopping list?
Tax inversion deals are still on the table for Pfizer
Two things motivated Pfizer's failed pursuit of AstraZeneca: (1) a non-U.S. address that could reduce its taxes, and (2) a way to get into the uberhot world of cancer immunotherapies. Pfizer made some progress with the latter through its $2.9 billion deal with Merck signed in November. But it is still pinned down with a U.S. tax bill.
A White House crackdown in the autumn thwarted several pending transactions and has made tax-saving moves called inversions more difficult and less lucrative. Still, despite Capitol Hill's attempt to discourage tax inversions -- like the one Pfizer attempted by making a bid for AstraZeneca -- Pfizer's CEO Ian Read has said he's not deterred.
During the Q4earnings callwith analysts, Read pointed out that the inversion payoff would be less immediate under Treasury's new limits on their tax benefits. But that doesn't mean it wouldn't be worth the effort. "If we believe the value is still there and we believe, under our interpretation of these rules, there is still value, I see no reason why we wouldn't be able to do an inversion," Read told Bloomberg in an interview.
Recently, high profile Bernstein analyst Tim Anderson said that Pfizer execs told him the company needs an inversion deal to compete on equal footing with overseas companies, both for tax-rate purposes and for access to overseas cash. That's why analysts figure it could make a run at fellow Big Pharma GlaxoSmithKline . Glaxo's size might allow Read to make the tax inversion move he intended with AstraZeneca. The two companies' businesses would also have revenue and cost synergies.
A Pfizer/Glaxo merger would also create a "genuinely world class" vaccines operation, according to Berenberg's Alistair Campbell. Glaxo's slate of childhood and adult vaccines could be added to Pfizer's Prevnar franchise, and the size of the deal would cement Pfizer's spot as the top Big Pharma -- an honor it lost after its best-selling drug Lipitor went off patent.
Actavis , a Dublin, Ireland-headquartered company, is another possibility, if it stops expanding. Actavis was in talks with Pfizer back in September, but its price tag got a lot steeper when it agreed to swallow Allergan last November for $66 billion. A takeover by Pfizer could be big enough to overcome the U.S. Treasury's stricter rules on inversions and lower Pfizer's tax bill, which currently stands at 27%, according to Kevin Kedra, an analyst at Gabelli & Co.
Deals tied to spinoff possibilities
Probably one of the more likely possibilities is Mylan . As Pfizer's established product unit, Mylan could beef up Pfizer's established products division for sale or spinoff, much the way the Hospira deal will.
Mylan and Pfizer already have a relationship on projects including EpiPen, but the tax implications would be harder to navigate. The Pennsylvania drugmaker is attempting to lower its own tax bill by buying part of Abbott Laboratories ' generic-drugs business, as well as shifting its legal address to the Netherlands. Research firm Jefferies believes Mylan could become an attractive takeover target for Pfizer, once that deal closes.
AbbVie and Bristol-Myers Squibb are on the radar as well, according to analysts. Bristol-Myers would help Pfizer juice up its oncology offerings, which could eventually be another divestment option. By contrast, AbbVie's strongest product is rheumatoid arthritis medication Humira, but Humira goes off patent in the U.S. next year, and its other offerings, even the newly approved Viekira Pak for hepatitis C can't be expected to make up the $10.6 billion Humira earns.
Pfizer has been very eager to power up its generics business, which is why Israel-based Teva Pharmaceuticals was approached by Pfizer about a possible merger, according to Biospace . But Teva stiff-armed Pfizer immediately, and that bid was rejected. By contrast, Hospira's Board of Directors has already signed off on the Pfizer deal. The merger is slated to close in the second half of 2015, subject to regulatory approval and a shareholder vote.
Meanwhile, Pfizer, which still has a stack of cash, a stable of rapidly aging drugs, and a history of using deals to strip out costs and shore up revenue, is surely already eyeing its next target.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Deal-Hungry Pfizer Won't Stop With Hospira; Who Could Be Next? originally appeared on Fool.com.
Cheryl Swanson owns shares of Actavis. 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 - 2015 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 and Bristol-Myers Squibb are on the radar as well, according to analysts. By contrast, AbbVie's strongest product is rheumatoid arthritis medication Humira, but Humira goes off patent in the U.S. next year, and its other offerings, even the newly approved Viekira Pak for hepatitis C can't be expected to make up the $10.6 billion Humira earns. The Pennsylvania drugmaker is attempting to lower its own tax bill by buying part of Abbott Laboratories ' generic-drugs business, as well as shifting its legal address to the Netherlands. | AbbVie and Bristol-Myers Squibb are on the radar as well, according to analysts. By contrast, AbbVie's strongest product is rheumatoid arthritis medication Humira, but Humira goes off patent in the U.S. next year, and its other offerings, even the newly approved Viekira Pak for hepatitis C can't be expected to make up the $10.6 billion Humira earns. The deal represents a hefty 39% premium over the Illinois-based company's previous day close, but Pfizer's investors immediately applauded, tacking $6 billion onto Pfizer's market value the day after the deal was announced. | AbbVie and Bristol-Myers Squibb are on the radar as well, according to analysts. By contrast, AbbVie's strongest product is rheumatoid arthritis medication Humira, but Humira goes off patent in the U.S. next year, and its other offerings, even the newly approved Viekira Pak for hepatitis C can't be expected to make up the $10.6 billion Humira earns. The deal represents a hefty 39% premium over the Illinois-based company's previous day close, but Pfizer's investors immediately applauded, tacking $6 billion onto Pfizer's market value the day after the deal was announced. | AbbVie and Bristol-Myers Squibb are on the radar as well, according to analysts. By contrast, AbbVie's strongest product is rheumatoid arthritis medication Humira, but Humira goes off patent in the U.S. next year, and its other offerings, even the newly approved Viekira Pak for hepatitis C can't be expected to make up the $10.6 billion Humira earns. Glaxo's size might allow Read to make the tax inversion move he intended with AstraZeneca. |
27056.0 | 2015-02-15 00:00:00 UTC | 1 George Soros Quote Every Investor Should Read Right Now | ABBV | https://www.nasdaq.com/articles/1-george-soros-quote-every-investor-should-read-right-now-2015-02-15 | nan | nan | Stocks in general have gotten off to a rocky start in 2015, and healthcare stocks in particular have run into turbulent times. Top healthcare names like AbbVie , Gilead Sciences , and Isis Pharmaceuticals have all seen their share prices nosedive compared to their 52-week highs:
On a pure valuation basis, these three stocks actually look rather cheap, but the market continues to push them lower. AbbVie and Gilead, for instance, are both trading well below the sector average in terms of their forward price-to-earnings ratios. And Isis Pharmaceuticals' monstrous pipeline consisting of over 36 antisense drugs in clinical trials, with several being blockbuster candidates, makes its $7 billion market cap seem almost absurd.
In times like these, it can be hard to stick it out, waiting for moody Mr. Market to realize his wayward ways. That's why I like to take a deep breath when my portfolio tanks and bear in mind the sage advice of superinvestors like George Soros.
So, unless something has fundamentally changed in how the market functions, Soros' insightful observation should be reason enough to stay invested for the long term.
How does this advice apply in cases like AbbVie, Gilead, and Isis?
If we take a long-term view of the market and don't let our emotions get the best of us, there is one glaringly simple reason to buy these stocks now: People aren't going to stop getting sick just because the stock market is cranky.
Most industrialized nations are seeing their average age rise at a rapid clip, and a larger proportion of individuals now have access to healthcare than ever before. What this means is that sales volumes for pharmaceutical products should continue to climb for the foreseeable future.
Perhaps pricing issues with payers and unfavorable currency exchanges will cause share prices for phama companies to dip even lower in the near term, but history shows the long-term trend is up.
And as Soros aptly states, the forthcoming rebound will more than likely compensate investors for the short-term pain. That's why I continue to buy all three of these stocks during their most recent dips, and think savvy investors may want to follow suit.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 1 George Soros Quote Every Investor Should Read Right Now originally appeared on Fool.com.
George Budwell owns shares of AbbVie, Gilead Sciences, and Isis Pharmaceuticals. The Motley Fool recommends Gilead Sciences and Isis Pharmaceuticals. The Motley Fool owns shares of 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 - 2015 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. | Top healthcare names like AbbVie , Gilead Sciences , and Isis Pharmaceuticals have all seen their share prices nosedive compared to their 52-week highs: On a pure valuation basis, these three stocks actually look rather cheap, but the market continues to push them lower. AbbVie and Gilead, for instance, are both trading well below the sector average in terms of their forward price-to-earnings ratios. How does this advice apply in cases like AbbVie, Gilead, and Isis? | George Budwell owns shares of AbbVie, Gilead Sciences, and Isis Pharmaceuticals. Top healthcare names like AbbVie , Gilead Sciences , and Isis Pharmaceuticals have all seen their share prices nosedive compared to their 52-week highs: On a pure valuation basis, these three stocks actually look rather cheap, but the market continues to push them lower. AbbVie and Gilead, for instance, are both trading well below the sector average in terms of their forward price-to-earnings ratios. | Top healthcare names like AbbVie , Gilead Sciences , and Isis Pharmaceuticals have all seen their share prices nosedive compared to their 52-week highs: On a pure valuation basis, these three stocks actually look rather cheap, but the market continues to push them lower. AbbVie and Gilead, for instance, are both trading well below the sector average in terms of their forward price-to-earnings ratios. How does this advice apply in cases like AbbVie, Gilead, and Isis? | Top healthcare names like AbbVie , Gilead Sciences , and Isis Pharmaceuticals have all seen their share prices nosedive compared to their 52-week highs: On a pure valuation basis, these three stocks actually look rather cheap, but the market continues to push them lower. AbbVie and Gilead, for instance, are both trading well below the sector average in terms of their forward price-to-earnings ratios. How does this advice apply in cases like AbbVie, Gilead, and Isis? |
27057.0 | 2015-02-15 00:00:00 UTC | The Small-Cap Biotech Stock You Should Be Watching | ABBV | https://www.nasdaq.com/articles/small-cap-biotech-stock-you-should-be-watching-2015-02-15 | nan | nan | Small-cap biotechnology stocks offer some of the most breathtaking opportunities in the market, but some are better than others. For example, these three tiny biotech stocks are favorites among our Motley Fool experts, and that could mean they're worth watching.
Source: Portola Pharmaceuticals.
: Warfarin's decades long dominance as an anticoagulant used to treat heart disease and post-operative patients is waning, and that could be great news for Portola Pharmaceuticals .
Since the 1950s, doctors have turned to warfarin to help keep blood flowing freely in patients, but warfarin is far from a perfect drug. It requires continuous monitoring and diet changes and can cause brain hemorrhages. For those reasons, doctors are rapidly prescribing next-generation factor Xa inhibitors such as Johnson & Johnson 's Xarelto instead of warfarin. However, despite the 76% jump in Xarelto's sales to $1.5 billion last year, factor Xa inhibitors have one bid drawback: They lack an antidote. Portola could soon change that.
Portola has already reported phase 3 results showing that its drug andexanet alfa controls bleeding and reverses the anticoagulant effects of factor Xa drugs such as Xarelto. Studies are ongoing, but the data so far seems to suggest that demand for andexanet alfa could make it a top seller and that an eventual approval (if it happens) could expand the overall market use of factor Xa drugs. If that does happen, Portola could have another moneymaking drug in the wings. In fact, the company is studying its own factor Xa inhibitor, betrixaban, that could one day compete against Xarelto.
Keith Speights : Recent negative news could ultimately led to positives for another small biotech -- Achillion Pharmaceuticals . Achillion's stock has taken a beating over the past few weeks as a pricing war erupted between AbbVie and Gilead Sciences .
All three companies make hepatitis C drugs, but Achillion is still in development with its two lead hep-C candidates, ACH-3102 and sovaprevir, both of which are in phase 2 testing. Achillion also has a phase 1 hepatitis C drug, ACH-3422.
There are some who would probably say that Achillion's likelihood of being acquired isn't as great as it used to be. And they might proclaim that the hepatitis C drug market isn't as appealing now, with the price competition under way. Maybe, but there's still plenty of upside potential for this stock, in my view.
With shares down more than 30% from January highs, any good news should send Achillion's shares upward. I also suspect that Achillion's pipeline could still be attractive to either AbbVie or Bristol-Myers Squibb . There's plenty of risk, of course, but Achillion is one small-cap biotech I'd definitely watch closely.
: Inovio Pharmaceuticals develops synthetic DNA vaccines -- which can't replicate or spread in host cells -- to be delivered through electrical pulses that boost cellular intake. Inovio's pipeline includes potential preventative and therapeutic vaccines for cancer, influenza, hepatitis C, malaria, and even HIV. But the problem with Inovio is that the company hasn't gotten a single drug approved since being founded over three decades ago.
Last September, Inovio investors cheered when Roche agreed to pay the company up to $412.5 million (and a $10 million upfront payment) and royalties for exclusive licenses on two vaccines -- INO-5150 for prostate cancer and INO-1800 for hepatitis B. Unfortunately, Roche walked away from INO-5150 last November, erasing a large portion of those potential payments, although it's still sticking with INO-1800.
Investors interested in Inovio's immunotherapy technology should keep an eye on VGX-3100, its most advanced vaccine. A phase 3 trial to test VGX-3100 on cervical dysplasia, a common cause of cervical cancer, is expected to start in 2016. However, Inovio stated that its cash forecast throughout 2017 excluded funding for that trial, which means that a share-diluting secondary offering might happen before then.
Therefore, Inovio is a highly speculative bet at the moment, but biotech investors interested in new immunotherapies should keep an eye on its progress.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article The Small-Cap Biotech Stock You Should Be Watching originally appeared on Fool.com.
Keith Speights owns shares of Portola, Achillion, and Gilead Sciences. Leo Sun has no position in any stocks mentioned. Todd Campbell owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | Achillion's stock has taken a beating over the past few weeks as a pricing war erupted between AbbVie and Gilead Sciences . I also suspect that Achillion's pipeline could still be attractive to either AbbVie or Bristol-Myers Squibb . Studies are ongoing, but the data so far seems to suggest that demand for andexanet alfa could make it a top seller and that an eventual approval (if it happens) could expand the overall market use of factor Xa drugs. | Achillion's stock has taken a beating over the past few weeks as a pricing war erupted between AbbVie and Gilead Sciences . I also suspect that Achillion's pipeline could still be attractive to either AbbVie or Bristol-Myers Squibb . In fact, the company is studying its own factor Xa inhibitor, betrixaban, that could one day compete against Xarelto. | Achillion's stock has taken a beating over the past few weeks as a pricing war erupted between AbbVie and Gilead Sciences . I also suspect that Achillion's pipeline could still be attractive to either AbbVie or Bristol-Myers Squibb . Portola has already reported phase 3 results showing that its drug andexanet alfa controls bleeding and reverses the anticoagulant effects of factor Xa drugs such as Xarelto. | Achillion's stock has taken a beating over the past few weeks as a pricing war erupted between AbbVie and Gilead Sciences . I also suspect that Achillion's pipeline could still be attractive to either AbbVie or Bristol-Myers Squibb . Achillion also has a phase 1 hepatitis C drug, ACH-3422. |
27058.0 | 2015-02-14 00:00:00 UTC | 2 Small Biotech Stocks Dreaming Big in Hepatitis C | ABBV | https://www.nasdaq.com/articles/2-small-biotech-stocks-dreaming-big-hepatitis-c-2015-02-14 | nan | nan | Hepatitis C treatment has progressed by leaps and bounds in the past few years, and appears to be accelerating even more quickly now. Cure rates have increased, treatment times are plummeting, and side effects are falling away. Is now the time to jump into the biotechs researching new drugs?
Industry Focus takes a look at Regulus Therapeutics and Achillion Pharmaceuticals , two small biotechs with intriguing hepatitis C treatments, examining where they stand in relation to the big players -- both clinically and commercially -- and what even risk-tolerant Fools need to know before taking the plunge.
A full transcript follows the video.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
Michael Douglass: Hi Fools, health care analyst Michael Douglass here today with one of our health care contributors, Todd Campbell, a frequent guest and contributor here on Industry Focus. Todd, how are you doing?
Todd Campbell: I'm doing great. We actually have some sunshine up here in New Hampshire, rather than some snow, so I've got a big smile on my face!
Douglass: That's got to be a little bit of a relief! I know we've had a lot of weather issues up in the Northeast.
Also, just to let folks who may be watching us, following us by video today, we're in a different studio. We're trying out a few different layouts for Industry Focus, so I'm here perched in front of this big mic, feeling kind of like an old-style radio DJ and pretty excited about it. It's one of my childhood dreams, so nice to get to fulfill that!
All right, let's jump right into today's topic. We want to talk about two biotechs that are dreaming big in hepatitis C. Of course hepatitis C is a massive market with enormous need. Let's go into the history of hepatitis C market over the last few years or a decade. Todd, why don't you go ahead and start us off?
Campbell: Yes. I think it's very helpful, from an investor's perspective, to understand where we've been and the advances that have been made so far, before we start looking at what drugs might be coming in the future. A decade ago, most patients were treated with a mashup of peginterferon and ribavirin.
Douglass: Lots of side effects.
Campbell: Yes, those were not pretty drugs. You had a coin-flip cure rate, and the treatment duration was 48 weeks. When you're feeling horrible on the medication and it lasts that long, you're bound to get a lot of people drop out. It was almost a third; 27-28% of people would discontinue that therapy, so it was really an inefficient solution for patients.
The first major advance from that doublet was in 2011, where Vertex Pharmaceuticals got Incivek approved. You probably remember, Michael, Incivek fought -- Merck had a competing drug to Incivek -- ended up becoming the dominant player, the fastest drug to reach $1 billion in sales at the time.
The reason that it was such a successful drug is that it cut the treatment time in half. Treatment time dropped to 24 weeks. Not only did it do that, but it bumped up the cure rates from 50% to 80%, so you had a better drug, you could take it for less time. However, there was a big problem; you still had to take ribavirin and peginterferon with it.
Douglass: So you still had all those nasty side effects.
Campbell: Yes. You didn't solve that problem, and you still had a problem with adherence.
Then you fast forward again, to the December 2013 approval of Sovaldi. That was probably the biggest game changer of all because now you took the treatment duration to 12 weeks, in many cases you eliminated peginterferon -- you still had to take ribavirin -- and you ended up with cure rates that were better than 90%.
That was a major, major advance in the treatment of hep C. Now you're getting to a point where the developments are coming so much more rapidly. In October Gilead won approval for Harvoni, its second generation hep C drug, in genotype 1.
Douglass: Which eliminates the use of interferon there in 1, which is big.
Campbell: Yes, huge. Now you get rid of ribavirin, you get rid of peginterferon, 45% of genotype 1 can take Harvoni for as little as eight weeks, and you can get mid-to-high 90% cure rates.
It's been a pretty remarkable decade for advances in this category, but I would argue there's still a lot to be done. That's why we're having this conversation with investors today, to talk about what might be coming.
Douglass: Right, exactly.
Even though we're focusing on these two smaller biotechs, it's important to note that when you look at your big players -- your Gilead, for example -- one of the big things they're looking at is reducing that treatment duration further, trying to get a cure for hepatitis C in less than 12 weeks -- in six weeks, or eight weeks, or four weeks even is what people are starting to talk about -- numbers that were absolutely inconceivable, even as little as two years ago.
Campbell: It is mind-numbing really, when you think about it. I think that CVS recently did a study that looked at Sovaldi adherence and I think 7-8% of people discontinued, versus 27% less than 10 years ago.
Yes, the advances have just been quite remarkable, and at the forefront of that is Gilead Sciences. You've got a company that last year alone in hepatitis C generated $10 billion in sales on Sovaldi and another $2 billion from Harvoni.
They are a Goliath in the space, and they are spending a lot of money on researching that next generation, which is going to be a drug that's going to cut across all genotypes and it's going to shorten duration times to potentially six weeks, maybe less.
Douglass: Yes. This is one of those things where, with health care it's always important to dream big, and then to wait and watch for that data because that can fundamentally shift that investing thesis.
So, then. Let's talk about these two small biotechs that reported hepatitis C related news over the last couple weeks. Let's start with Regulus.
Campbell: Yes, Regulus is an interesting stock because it's been around for a little while. It's got a pretty decent heritage, but they really haven't been able to have a clinical success yet, as far as a commercialized drug.
The company was founded by Isis and Alnylam , two big players in RNA, to basically research microRNA therapeutics, or drugs that work on microRNA, which controls how genes work, if you will.
What Regulus is studying is, can we control genes that are associated with the replication of hepatitis C? And if we can control those microRNAs, can we basically cure hepatitis C much quicker and potentially offer a cure in some cases, believe it or not, with one or two doses?
Douglass: Of course that quick-dose opportunity is just, oh my gosh! That certainly is something the market was excited about, but the data didn't look so good this last time.
Campbell: It was mixed. Let's face it, for Regulus it's a very early stage trial. They're still feeling it out to see what makes the most sense to pursue. They've got a lot of different programs out there, including studying the drug as administered by a 2 mg injection, a 4 mg injection, potentially an 8 mg injection.
They're thinking, "What if we give it once and then we follow up with a booster shot in 30 days?" They're also looking at combining it with Johnson & Johnson 's Olysio as a potential for the next stage.
But again, this is very early stage. If you look at the most recent data it was the 4 mg trial, 9 out of 14 patients that were administered the drug were hepatitis C-free 57 days later. That's better than half, on a single dose, being disease-free.
Whether or not that holds up, though, without a booster shot ... I don't know how promising that is. There are a ton of question marks with this. It's intriguing. Hey, they're dreaming big.
Douglass: Yes.
Campbell: No question. But it's a speculative stock.
Douglass: Right. In, let's face it, a pretty speculative space. People go into health care, not usually because they're too risk averse. At least for me, health care and tech are the aggressive end of my portfolio -- and this is on the speculative end of speculative, in general.
Campbell: Right. You look at biotech as being, "Wow, these stocks can pop and drop so dramatically based on any news," and this is a company that could really pop and really drop. This is not one to go into with rose-colored lenses.
Douglass: Right, exactly. I'm sure we'll talk a little bit more about the investing thesis with both these stocks in a bit, but let's go into Achillion as well.
Achillion, a little bit more advanced of a hep C player, still a pretty small stock. I want to say their market cap is $1 billion and some; a pretty small stock. They also reported news pretty recently.
Campbell: Yes. I think, of the two, Achillion is a little bit more intriguing to me because they seem to be a little bit further along. They're not recreating a new wheel. They're basically reinventing an existing wheel to make it better.
They have a drug, ACH-3102. ACH-3102 is the same type of drug as one of the two drugs that are in Gilead Sciences' Harvoni. What they did is say, "If we can improve upon that drug, and then still combine it with Sovaldi, can we get cure rates in a much shorter duration?"
They first tested it out at eight weeks. They said, "Let's look at a dozen people and see whether or not we can cure them in eight weeks." Sure enough, combining ACH-3102 with Sovaldi cured all 12 of these patients, so far, over eight weeks.
Then they said, "It worked so well with eight weeks, let's take a look at six weeks." They went out and did the same study. "Let's combine it with Sovaldi, see what happens," and sure enough 12 weeks later, after stopping treatment, they're all cured still.
So, wow. "Six weeks worked with this drug. Now let's go out and we'll study four weeks." Obviously, that trial is just getting under way so we won't have results from them for a while, but that would be pretty remarkable, to be able to think, "I can now go from 45% of people in genotype 1 being able to take Harvoni for eight weeks, to everyone potentially being able to take this mashup for only four weeks."
Douglass: Yes, the opportunity there is incredible. Just to be clear, this is basically taking ACH-3102, which is their NS5A inhibitor, and combining it with Gilead's new Sovaldi -- as opposed to Gilead's current Harvoni, which is their NS5A inhibitor, ledipasvir, plus their new Sovaldi.
It's basically switching that one thing out, and seeing if you can get a lift without actually comparing it directly to Harvoni.
Of course, that's one of the things we have to keep in mind with these trials, is that since there was no direct head-to-head it's a little hard to make pronouncements as to whether one's better or not. That said, certainly the data were very encouraging and I think that's something investors are going to want to watch very closely.
Campbell: Yes. The stock has been up and down a lot recently, and one of the reasons for that is that they're also working on a drug called ACH-3422 that would replace Sovaldi in that combination therapy, so basically be able to toss out Sovaldi and then have a whole in-house solution.
Results were kind of mixed. They weren't awesome. They weren't fantastic, so I'm not sure whether or not 3422 is better than Sovaldi. They'll have to prove that out, so again this one falls back into that speculative zone where we don't know what happens when you take ...
We're talking 12 people! It's not what you call a patient population that can make you say, "All right, this is definitely going to work for everybody." A lot more study needs to happen for this company as well, and for these drugs.
Douglass: Yes, really tiny patient population, and that of course is an immediate, "Oh gosh. If we're going to have a really big disease, we'll want to see that bigger Phase III trial before we get really particularly excited about Achillion's potential. You can kind of see it.
Two things in health care; you want to see clinical success, and you want to see commercial success. Given that Achillion is going to be -- if it goes alone, and if all the clinical trial data works out and everything -- it's still going to be pretty late to the party.
I saw one analyst estimating that the combo could be out in 2020 or something like that. We're not saying that there's an immediate opportunity here. You're going to instead have big players like Gilead and like AbbVie vacuuming up, and curing, a lot of people and figuring out how to best market and control this market in a lot of ways, before a smaller player like an Achillion could even get to market.
Campbell: Yes, that's a great point. Hepatitis C, the next decade you're going to cure ... we'll call it the majority of patients.
Douglass: Hopefully! Hopefully. That is the plan, anyway. That seems to be the likely case.
Campbell: Yes. Last year, Gilead treated 170,000 patients, and that was with a lot of restrictions on access to the drug. This year, because of AbbVie coming on the scene and some negotiations that were made with different payers, theoretically a lot more people could have access to that drug, so maybe you treat 200,000, I don't know.
You've got 2.7-3.0 million, depending on who you listen to, people in the U.S. -- and then of course the advances that these companies are developing already, in-house, like Gilead. It remains to be seen how big an opportunity this is, and how long-lasting that opportunity is for these companies if they succeed in these late-stage trials, and if they can convince FDA regulators to approve them.
Douglass: And then if they can overcome what are going to be very experienced marketing teams who are used to talking about data. The build-out for this could be enormous, and it may be that for someone like an Achillion or a Regulus, if they achieve clinical success, partnering with somebody that ...
There has been buyout speculation, so I'm just going to throw it out; perhaps a buyout. We'll see. I don't encourage investors to invest based on thoughts of buyouts because so often they don't happen, as Shire Plc investors discovered last year.
Campbell: Yes, you're right Michael. There's been a lot of activity in the space. You have Merck making a $3 billion acquisition last year to lock up some clinical stage hep C drugs. But you're right, investors shouldn't buy a company banking on its ability to get acquired. It's better to buy it based upon the data that you see in front of you.
With companies like this, they're speculative. They shouldn't be in anything other than the speculative portion of investor portfolios.
Douglass: Right. And honestly I'll tell you, too speculative for my blood. I am proudly a Gilead Sciences shareholder, and really continue to like their opportunities.
Todd, thank you very much for your take. Folks, one thing I want to share with you is that here at The Motley Fool we're always trying to identify what the next big winner could be, what the next big player could be, what company could next really fundamentally change the world.
One of the big ways we do that is with David Gardner's Rule Breakers service, which is a high-growth-oriented stock service. If you're interested in learning more about it, shoot us an email at growth@fool.com and we'll be happy to send you along a special offer to the Rule Breakers service.
Todd, again, thanks for your time. Folks, check back to the Industry Focus podcast, and of course Fool.com, for all of your investing needs, and Fool on!
The article 2 Small Biotech Stocks Dreaming Big in Hepatitis C originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences. Michael Douglass owns shares of Gilead Sciences, Isis Pharmaceuticals, and Johnson & Johnson. The Motley Fool recommends Alnylam Pharmaceuticals, CVS Health, Gilead Sciences, Isis Pharmaceuticals, Johnson & Johnson, and Vertex Pharmaceuticals. The Motley Fool owns shares of 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 - 2015 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. | You're going to instead have big players like Gilead and like AbbVie vacuuming up, and curing, a lot of people and figuring out how to best market and control this market in a lot of ways, before a smaller player like an Achillion could even get to market. This year, because of AbbVie coming on the scene and some negotiations that were made with different payers, theoretically a lot more people could have access to that drug, so maybe you treat 200,000, I don't know. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. | You're going to instead have big players like Gilead and like AbbVie vacuuming up, and curing, a lot of people and figuring out how to best market and control this market in a lot of ways, before a smaller player like an Achillion could even get to market. This year, because of AbbVie coming on the scene and some negotiations that were made with different payers, theoretically a lot more people could have access to that drug, so maybe you treat 200,000, I don't know. The company was founded by Isis and Alnylam , two big players in RNA, to basically research microRNA therapeutics, or drugs that work on microRNA, which controls how genes work, if you will. | You're going to instead have big players like Gilead and like AbbVie vacuuming up, and curing, a lot of people and figuring out how to best market and control this market in a lot of ways, before a smaller player like an Achillion could even get to market. This year, because of AbbVie coming on the scene and some negotiations that were made with different payers, theoretically a lot more people could have access to that drug, so maybe you treat 200,000, I don't know. Michael Douglass: Hi Fools, health care analyst Michael Douglass here today with one of our health care contributors, Todd Campbell, a frequent guest and contributor here on Industry Focus. | You're going to instead have big players like Gilead and like AbbVie vacuuming up, and curing, a lot of people and figuring out how to best market and control this market in a lot of ways, before a smaller player like an Achillion could even get to market. This year, because of AbbVie coming on the scene and some negotiations that were made with different payers, theoretically a lot more people could have access to that drug, so maybe you treat 200,000, I don't know. Michael Douglass: Hi Fools, health care analyst Michael Douglass here today with one of our health care contributors, Todd Campbell, a frequent guest and contributor here on Industry Focus. |
27059.0 | 2015-02-14 00:00:00 UTC | 3 Biotech Stocks I Love | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-i-love-2015-02-14 | nan | nan | Tecfidera's rapid ascent into a multibillion-dollar blockbuster is reason enough for me to like Biogen Idec, but the company is also expanding into new indications. Last year, Biogen Idec launched two hemophilia drugs, and sales of those drugs climbed from $47 million in the third quarter to $77 million during the fourth quarter. Overall, Biogen Idec's revenue jumped an impressive 40% to $9.7 billion in 2014.
The combination of rock-steady growth for its MS drugs and the promise of newly launched therapies have Biogen Idec guiding for sales growth of between 14% and 16% in 2015, and if that happens, the company thinks it can deliver adjusted EPS of between $16.60 and $17 this year. With growth like that, what's not to like?
No. 3: Gilead Sciences
Gilead Sciences may be the most successful underdog in biotechnology. Despite the company's 137% year-over-year sales growth in the fourth quarter, worries over new competition from AbbVie 's recently approved hepatitis C drug Viekira Pak have some investors turning their backs on the company. Not me.
I believe there are bound to be highs and lows in any relationship, and last year's doubling in sales was indeed a high.
Now that the company has a full year of Sovaldi sales under its belt, year-over-year growth will be tougher to generate in 2015. Gilead Sciences' hepatitis C drug sales were north of $12 billion last year, and price discounts to shore up market share this year have the company guiding investors to expect that its revenue growth will drop to the mid to high single digits in 2015.
That outlook may disappoint some, but there's still plenty to like about Gilead Sciences. The company's $10 billion-a-year HIV drug franchise continues to deliver solid sales growth, and Gilead Sciences is already developing its next generation of hepatitis C therapies that could offer shorter treatment durations and functional cures to even the tough-to-treat patients.
Additionally, the approval of the company's blood cancer drug Zydelig last year hints that Gilead Sciences' next opportunity is in oncology -- a massive indication that could eventually add billions of dollars in new revenue. As a result, despite slowing growth suggesting that this could be a less exciting year for investors than 2014, I'm still thinking long term on this one.
One more thing
All three of these biotechnology companies are big market cap companies that are profitable and kicking off plenty of money that can be used to reward investors. Celgene and Biogen Idec's cash stockpiles increased by 33% and 51% in the past year to $7.55 billion and $1.84 billion, respectively. Meanwhile, Gilead Sciences' cash soared by 350% to $11.7 billion last year. That means all three of these companies have the financial flexibility to fuel R&D, acquisitions, buybacks, and in the case of Gilead Sciences' newly announced dividend program, dividend increases.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns, you will need to get in early -- check out The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Biotech Stocks I Love originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences and Celgene. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in these companies. The Motley Fool recommends Celgene and Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | Despite the company's 137% year-over-year sales growth in the fourth quarter, worries over new competition from AbbVie 's recently approved hepatitis C drug Viekira Pak have some investors turning their backs on the company. The company's $10 billion-a-year HIV drug franchise continues to deliver solid sales growth, and Gilead Sciences is already developing its next generation of hepatitis C therapies that could offer shorter treatment durations and functional cures to even the tough-to-treat patients. Additionally, the approval of the company's blood cancer drug Zydelig last year hints that Gilead Sciences' next opportunity is in oncology -- a massive indication that could eventually add billions of dollars in new revenue. | Despite the company's 137% year-over-year sales growth in the fourth quarter, worries over new competition from AbbVie 's recently approved hepatitis C drug Viekira Pak have some investors turning their backs on the company. Last year, Biogen Idec launched two hemophilia drugs, and sales of those drugs climbed from $47 million in the third quarter to $77 million during the fourth quarter. The combination of rock-steady growth for its MS drugs and the promise of newly launched therapies have Biogen Idec guiding for sales growth of between 14% and 16% in 2015, and if that happens, the company thinks it can deliver adjusted EPS of between $16.60 and $17 this year. | Despite the company's 137% year-over-year sales growth in the fourth quarter, worries over new competition from AbbVie 's recently approved hepatitis C drug Viekira Pak have some investors turning their backs on the company. The combination of rock-steady growth for its MS drugs and the promise of newly launched therapies have Biogen Idec guiding for sales growth of between 14% and 16% in 2015, and if that happens, the company thinks it can deliver adjusted EPS of between $16.60 and $17 this year. Gilead Sciences' hepatitis C drug sales were north of $12 billion last year, and price discounts to shore up market share this year have the company guiding investors to expect that its revenue growth will drop to the mid to high single digits in 2015. | Despite the company's 137% year-over-year sales growth in the fourth quarter, worries over new competition from AbbVie 's recently approved hepatitis C drug Viekira Pak have some investors turning their backs on the company. The combination of rock-steady growth for its MS drugs and the promise of newly launched therapies have Biogen Idec guiding for sales growth of between 14% and 16% in 2015, and if that happens, the company thinks it can deliver adjusted EPS of between $16.60 and $17 this year. Gilead Sciences' hepatitis C drug sales were north of $12 billion last year, and price discounts to shore up market share this year have the company guiding investors to expect that its revenue growth will drop to the mid to high single digits in 2015. |
27060.0 | 2015-02-14 00:00:00 UTC | In Case You Missed It, There's a New Fastest Growing Drug in the World | ABBV | https://www.nasdaq.com/articles/case-you-missed-it-theres-new-fastest-growing-drug-world-2015-02-14 | nan | nan | TRx = total prescriptions written, NRx = new prescriptions written. Source: Bloomberg Intelligence.
By comparison, it took Harvoni less than three months post-launch to rack up more than 7,000 prescriptions written per week. For the week beginning Jan. 23, Harvoni scripts topped 7,800! Based on Harvoni's rapid ramp up to nearly 8,000 scripts a week and its higher price point, if it had these additional days added in, its sales could easily have surpassed $2.5 billion for the quarter, in my opinion.
Whether Harvoni can keep that pace with new competition on the horizon, however, is the great mystery.
Gilead gets some competition
As you may know, Gilead Sciences is not the only show in town when it comes to treating HCV.
In December, the FDA approved AbbVie 's drug combo Viekira Pak for genotype 1 HCV. Some patients are eligible to take AbbVie's combination of drugs without ribavirin, while others will need to include ribavirin as well. The key point, however, is that Viekira Pak has similar efficacy after 12 weeks as Sovaldi. Although the price point difference between Viekira Pak and Sovaldi was negligible, it was the multi-year deal AbbVie struck with pharmacy-benefits manager Express Scripts that got Wall Street talking.
Announced just days after Viekira Pak was approved, the agreement nets Express Scripts a sizable discount for Viekira Pak and makes it the exclusive HCV-1 treatment for in-network patients. As you might imagine, Gilead's stock hiccupped in a big way on the news.
Source: CVS Health.
But Gilead also fought back. It, too, formed agreements with insurer Aetna and pharmacy benefits manager CVS Health to supply Harvoni at a discounted price in order to be the exclusive HCV-1 therapy for HCV-1 members of these networks.
It's certainly not hard to see why consumers might prefer Harvoni considering it does not have to be taken with ribavirin. Not to mention that Harvoni is a once-daily pill, compared to AbbVie, which could involve taking up to six pills on a daily basis. It's ultimately more convenient for the patient.
On top of AbbVie's new therapy, Merck is on pace to file a new drug application for its HCV doublet known as grazoprevir/elbasvir (previously MK-5172/MK-8742) by midyear. In HCV-1 patients it too exhibited SVR rates of between 90% and 97% after 12 weeks, signaling that it's highly effective. If approved, it could also become a significant player.
Gilead holds its own
In spite of these headwinds I suspect that Gilead Sciences will be able to hold its own in the HCV space.
For starters, there's an unfortunately large number of HCV patients worldwide that still need treatment. It's going to take a long time to get to them all, giving these companies a decade or longer of run time to reap the benefits of sales from their HCV drugs.
Sovaldi pill. Source: Gilead Sciences.
Secondly, Sovaldi isn't going quietly into that good night. It's still a superior choice for the less common genotype 2 & 3 HCV patients since it doesn't involve the use of interferon. That alone should keep Sovaldi safely in the category of blockbuster drug.
More importantly, though, Harvoni looks like it's going to play a critical role in HCV-1 for the time being. Nothing against Merck's doublet or AbbVie's Viekira Pak, but Harvoni is more convenient, doesn't need to be taken with ribavirin, and was the first to market. I project it has the potential to deliver in excess of $10 billion in sales in 2015, likely making it the second best-selling drug in 2015 behind only anti-inflammatory drug Humira.
With that in mind, I continue to view Gilead Sciences as an attractive investment opportunity, and envision a growing and bright future for Harvoni and a bulk of currently afflicted HCV patients.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article In Case You Missed It, There's a New Fastest Growing Drug in the World 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 Express Scripts and Gilead Sciences. It also recommends CVS Health and Vertex Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 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 the price point difference between Viekira Pak and Sovaldi was negligible, it was the multi-year deal AbbVie struck with pharmacy-benefits manager Express Scripts that got Wall Street talking. In December, the FDA approved AbbVie 's drug combo Viekira Pak for genotype 1 HCV. Some patients are eligible to take AbbVie's combination of drugs without ribavirin, while others will need to include ribavirin as well. | In December, the FDA approved AbbVie 's drug combo Viekira Pak for genotype 1 HCV. Nothing against Merck's doublet or AbbVie's Viekira Pak, but Harvoni is more convenient, doesn't need to be taken with ribavirin, and was the first to market. Some patients are eligible to take AbbVie's combination of drugs without ribavirin, while others will need to include ribavirin as well. | In December, the FDA approved AbbVie 's drug combo Viekira Pak for genotype 1 HCV. Some patients are eligible to take AbbVie's combination of drugs without ribavirin, while others will need to include ribavirin as well. Although the price point difference between Viekira Pak and Sovaldi was negligible, it was the multi-year deal AbbVie struck with pharmacy-benefits manager Express Scripts that got Wall Street talking. | Nothing against Merck's doublet or AbbVie's Viekira Pak, but Harvoni is more convenient, doesn't need to be taken with ribavirin, and was the first to market. In December, the FDA approved AbbVie 's drug combo Viekira Pak for genotype 1 HCV. Some patients are eligible to take AbbVie's combination of drugs without ribavirin, while others will need to include ribavirin as well. |
27061.0 | 2015-02-14 00:00:00 UTC | 1 Number Shows Why Gilead Sciences, Inc. Shareholders Should Be Thrilled Right Now | ABBV | https://www.nasdaq.com/articles/1-number-shows-why-gilead-sciences-inc-shareholders-should-be-thrilled-right-now-2015-02 | nan | nan | Source: Gilead Sciences
Thanks to launching the billion dollar blockbuster hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences posted some pretty eye-popping numbers in 2014. In fact, these numbers are so impressive that I'm going to reel off a few them:
Sales soared by 122% to $24.9 billion,
Cash on the books tripled to $11.7 billion.
Margins expanded by more than 20%.
Those are envy-inspiring results, but out of all of Gilead Sciences numbers, there is one number that stands apart in showing why this company is poised to remain a biotechnology mainstay for years to come. What is this most-important number?
A near tripling of the company's earnings!
Dominating indications
Before I dig a bit deeper into how Gilead Sciences racked up this jaw-dropping earnings growth, let's begin with a quick refresher on the company.
Gilead Sciences' success is rooted in the company's market share-leading HIV drugs. The company markets five separate HIV therapies that are each on track to deliver over $1 billion in sales this year. These drugs include Atripla, Truvada, Stribild, Complera, and Viread. Across these market-dominating HIV treatments, the company is generating sales of more than $10 billion a year.
The company's success in HIV would already justify top-shelf status for Gilead Sciences, but its position as a tier-one biotechnology stock has been solidified by Gilead Sciences' emergence as a dominant player in hepatitis C.
In 2012, Gilead Sciences spent more than $11 billion to acquire Pharmasset to get its hands on Pharmasset's promising hepatitis C drug sofosbuvir. Then it spent countless additional dollars ushering sofosbuvir, later named Sovaldi, through late stage clinical trials in which Sovaldi notched hepatitis C cure rates eclipsing 90%.
After those results led to an FDA approval in December 2013, Sovaldi went on to rack up over $10 billion in sales during its first full year on the market. That success has been a major victory for Gilead Sciences, but the company didn't stop there. Gilead Sciences notched another important win last October when the FDA also approved its second-generation HCV drug Harvoni. Offering cure rates in the high 90% range, Harvoni has become an instant success, producing over $2 billion in sales during the fourth quarter alone.
Tripling its profit
Thanks to the ongoing success of its HIV drugs and the breathtaking climb in sales of its hepatitis C drugs, Gilead Sciences' soaring revenue is proving to be a profit bonanza for investors.
Most of the time, rising sales boost margins as fixed costs are leveraged across more total dollars. Gilead Sciences hasn't proven to be an exception. Since the company already had back-office sales, administrative support and production capacity, it didn't need to spend nearly as much to launch its hepatitis C drugs as it would have spent if these were its first products.
The benefit of leverage can most directly be seen in the company's ratio of selling, general, and administrative expenses to sales. In 2014, soaring sales resulted in the percentage of revenue spent on SG&A to drop from 13.9% to 11.1% last year. Similar success was also seen in the company's spending on R&D. Despite bumping up its spending on future potential drugs by hundreds of millions of dollars last year, the percentage of sales spent on R&D plummeted from 17.4% to 10.4%. As a result, the company's operating margin -- as I noted at the beginning of this article -- surged. That surge, combined with share buybacks, led to adjusted earnings per share of $8.09, which was a whopping 297% higher than the earnings reported in 2013!
Why it matters
According to Tufts Center for the Study of Drug Development, it costs $1.4 billion to successfully develop and commercialize a new drug. That means that biotechnology companies are always hunting for the financing to pursue potential game-changing therapies and that often those potential therapies end up being abandoned because of thin wallets. Thanks to its earnings surge, that won't be the case at Gilead Sciences.
In fact, Gilead Sciences' tripling in earnings is kicking off so much cash that in addition to financing its pipeline of future HIV and hepatitis C drugs to fend off competitors, it's also ramping its research efforts in cancer.
Last summer, Gilead Sciences launched its blood cancer drug Zydelig, and the company is conducting a slate of other cancer studies that could someday turn it a major oncology player.
The tripling in earnings has also given the company so much financial flexibility that the company recently decided to begin rewarding investors with a $0.43 quarterly dividend payment -- something that is relatively unheard of among Gilead Sciences' biotechnology peers.
Although earnings growth for Gilead Sciences is expected to be more timid this year, investors aren't likely to be too disappointed at year end. Following Gilead Sciences' fourth quarter earnings, Wall Street analysts think that Gilead Sciences EPS will climb 18.4% to $9.58 this year. That may not be as thrilling as the tripling in 2014, but it's still pretty darn good.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 1 Number Shows Why Gilead Sciences, Inc. Shareholders Should Be Thrilled Right Now 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 or may not have positions in the companies mentioned. The Motley Fool recommends Express Scripts and Gilead Sciences. The Motley Fool owns shares of Express Scripts 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 - 2015 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. | Dominating indications Before I dig a bit deeper into how Gilead Sciences racked up this jaw-dropping earnings growth, let's begin with a quick refresher on the company. In fact, Gilead Sciences' tripling in earnings is kicking off so much cash that in addition to financing its pipeline of future HIV and hepatitis C drugs to fend off competitors, it's also ramping its research efforts in cancer. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. | Source: Gilead Sciences Thanks to launching the billion dollar blockbuster hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences posted some pretty eye-popping numbers in 2014. Following Gilead Sciences' fourth quarter earnings, Wall Street analysts think that Gilead Sciences EPS will climb 18.4% to $9.58 this year. The Motley Fool owns shares of Express Scripts and Gilead Sciences. | Source: Gilead Sciences Thanks to launching the billion dollar blockbuster hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences posted some pretty eye-popping numbers in 2014. The company's success in HIV would already justify top-shelf status for Gilead Sciences, but its position as a tier-one biotechnology stock has been solidified by Gilead Sciences' emergence as a dominant player in hepatitis C. In 2012, Gilead Sciences spent more than $11 billion to acquire Pharmasset to get its hands on Pharmasset's promising hepatitis C drug sofosbuvir. Tripling its profit Thanks to the ongoing success of its HIV drugs and the breathtaking climb in sales of its hepatitis C drugs, Gilead Sciences' soaring revenue is proving to be a profit bonanza for investors. | Source: Gilead Sciences Thanks to launching the billion dollar blockbuster hepatitis C drugs Sovaldi and Harvoni, Gilead Sciences posted some pretty eye-popping numbers in 2014. A near tripling of the company's earnings! The Motley Fool owns shares of Express Scripts and Gilead Sciences. |
27062.0 | 2015-02-12 00:00:00 UTC | AbbVie Seeks Japanese Approval for HCV Cocktail Treatment - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvie-seeks-japanese-approval-for-hcv-cocktail-treatment-analyst-blog-2015-02-12 | nan | nan | AbbVie Inc. ( ABBV ) has filed a new drug application with the Japanese Ministry of Health, Labour and Welfare for its experimental hepatitis C virus (HCV) treatment. AbbVie's all-oral, ribavirin and interferon free, 12-week, two direct-acting antiviral treatment comprises a fixed-dose of paritaprevir/ritonavir (150/100 mg) in combination with ombitasvir (25 mg), dosed once daily. The company is looking to get the combination approved for the treatment of patients with genotype 1 (GT1) chronic HCV infection.
The NDA submission comes close on the heels of AbbVie's three-drug HCV regimen, Viekira Pak and Viekirax + Exviera, gaining approval both in the U.S. (Dec 2014) and EU (Jan 2015).
We believe that AbbVie's two-drug direct-acting HCV regimen has a good chance of gaining approval based on high rates of response and low discontinuation rates.
While Viekira recorded sales of $48 million in the fourth quarter of 2014, AbbVie estimates Viekira to achieve global annualized sales of more than $3 billion by the end of 2015.
We remind investors that pharmacy benefit manager (PBM), Express Scripts ( ESRX ), has added Viekira to its formulary and offered it as an exclusive option for GT 1 HCV patients, starting Jan 1, 2015. Express Scripts' decision to choose lower-priced Viekira over other expensive HCV drugs like Gilead's ( GILD ) Sovaldi and Harvoni has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs.
Meanwhile, the race to bring shorter duration HCV drugs is heating up with Achillion Pharmaceuticals ( ACHN ) announcing positive interim data on its experimental HCV treatment, ACH-3102, being evaluated in combination with Gilead's Sovaldi. Results showed that all patients including those with a high baseline viral load in the six-week treatment duration arm achieved 100% sustained viral response at 12 weeks.
We expect the HCV market and pricing competition to remain in focus in 2015.
AbbVie currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Achillion carrying a Zacks #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. | AbbVie Inc. ( ABBV ) has filed a new drug application with the Japanese Ministry of Health, Labour and Welfare for its experimental hepatitis C virus (HCV) treatment. The NDA submission comes close on the heels of AbbVie's three-drug HCV regimen, Viekira Pak and Viekirax + Exviera, gaining approval both in the U.S. (Dec 2014) and EU (Jan 2015). AbbVie's all-oral, ribavirin and interferon free, 12-week, two direct-acting antiviral treatment comprises a fixed-dose of paritaprevir/ritonavir (150/100 mg) in combination with ombitasvir (25 mg), dosed once daily. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) has filed a new drug application with the Japanese Ministry of Health, Labour and Welfare for its experimental hepatitis C virus (HCV) treatment. AbbVie's all-oral, ribavirin and interferon free, 12-week, two direct-acting antiviral treatment comprises a fixed-dose of paritaprevir/ritonavir (150/100 mg) in combination with ombitasvir (25 mg), dosed once daily. | Express Scripts' decision to choose lower-priced Viekira over other expensive HCV drugs like Gilead's ( GILD ) Sovaldi and Harvoni has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) has filed a new drug application with the Japanese Ministry of Health, Labour and Welfare for its experimental hepatitis C virus (HCV) treatment. | Express Scripts' decision to choose lower-priced Viekira over other expensive HCV drugs like Gilead's ( GILD ) Sovaldi and Harvoni has triggered intense pricing competition in the HCV market with both AbbVie and Gilead striking deals with PBMs. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) has filed a new drug application with the Japanese Ministry of Health, Labour and Welfare for its experimental hepatitis C virus (HCV) treatment. |
27063.0 | 2015-02-11 00:00:00 UTC | Biotech Stock Roundup: Achillion Impresses with HCV Data, Regeneron 4Q Results Top Estimates - Analyst Blog | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-achillion-impresses-hcv-data-regeneron-4q-results-top-estimates | nan | nan | The hepatitis C virus (HCV) market continues to be in the news even in the midst of fourth quarter earnings season. While Achillion Pharmaceuticals ( ACHN ) came out with positive interim data on its experimental HCV treatment, Gilead ( GILD ) struck a deal with yet another health service company for its HCV treatment.
Recap of the Week's Most Important Stories
1. Achillion's shares jumped 7.8% on encouraging interim data from a mid-stage study being conducted on the company's experimental HCV treatment, ACH-3102. The ongoing study is evaluating ACH-3102 in combination with Gilead's Sovaldi. Results showed that all patients including those with a high baseline viral load in the six-week treatment duration arm achieved SVR12.
With these encouraging results in hand, Achillion intends to see if the treatment duration can be cut further (4 weeks). Although competition in the HCV market is pretty intense given the presence of companies like Gilead and AbbVie ( ABBV ), there is still room in the market for new improved therapies.
2. Gilead continues to sign up with pharmacy benefit managers (PBMs) and health care service companies for its HCV drugs, Sovaldi and Harvoni. The company recently signed up with Cigna under which Harvoni will be the only preferred brand prescription drug treatment for HCV patients. Pricing competition in the HCV market will be a key focus in 2015 with both AbbVie and Gilead signing up with PBMs. (Read more: Can Gilead Boost HCV Sales with Health Service Deals? )
3. Regeneron's ( REGN ) fourth quarter results were better-than-expected with Eylea performing well. However, the company's Eylea sales guidance for 2015 fell short of expectations. This year the company has an important regulatory event coming up with the FDA expected to decide on the approval status of the company's PCSK9 inhibitor, Praluent, by Jul 24. (Read more: Regeneron Beats on Q4 Earnings Driven by Eylea Sales )
4. Armed with positive top-line results from a phase I study, Alkermes ( ALKS ) is looking to move its experimental multiple sclerosis treatment, ALKS 8700, into pivotal development this year. (Read more: Alkermes Reports Positive Data on Multiple Sclerosis Drug )
Performance
Over the last five trading days, Celgene's ( CELG ) shares were up the most (2.18%) among major biotechs. Celgene recorded the highest gain (38.9%) among major biotechs over the last six months as well. Gilead's shares were down 8.27% over the past five trading days.
Overall, the NASDAQ Biotechnology Index remained almost flat (0.02%) over the last five trading days (See the last biotech stock roundup here: Biogen Impresses with 4Q Results, Gilead & AbbVie HCV Drugs in Focus ).
What's Next in the Biotech World?
Several mid-sized and small biotech companies like XenoPort ( XNPT ) are yet to come out with fourth quarter results.
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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. | Overall, the NASDAQ Biotechnology Index remained almost flat (0.02%) over the last five trading days (See the last biotech stock roundup here: Biogen Impresses with 4Q Results, Gilead & AbbVie HCV Drugs in Focus ). Although competition in the HCV market is pretty intense given the presence of companies like Gilead and AbbVie ( ABBV ), there is still room in the market for new improved therapies. Pricing competition in the HCV market will be a key focus in 2015 with both AbbVie and Gilead signing up with PBMs. | Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report ALKERMES INC (ALKS): 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 XENOPORT INC (XNPT): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. Although competition in the HCV market is pretty intense given the presence of companies like Gilead and AbbVie ( ABBV ), there is still room in the market for new improved therapies. Pricing competition in the HCV market will be a key focus in 2015 with both AbbVie and Gilead signing up with PBMs. | Overall, the NASDAQ Biotechnology Index remained almost flat (0.02%) over the last five trading days (See the last biotech stock roundup here: Biogen Impresses with 4Q Results, Gilead & AbbVie HCV Drugs in Focus ). Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report ALKERMES INC (ALKS): 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 XENOPORT INC (XNPT): Free Stock Analysis Report ACHILLION PHARM (ACHN): Free Stock Analysis Report To read this article on Zacks.com click here. Although competition in the HCV market is pretty intense given the presence of companies like Gilead and AbbVie ( ABBV ), there is still room in the market for new improved therapies. | Although competition in the HCV market is pretty intense given the presence of companies like Gilead and AbbVie ( ABBV ), there is still room in the market for new improved therapies. Pricing competition in the HCV market will be a key focus in 2015 with both AbbVie and Gilead signing up with PBMs. Overall, the NASDAQ Biotechnology Index remained almost flat (0.02%) over the last five trading days (See the last biotech stock roundup here: Biogen Impresses with 4Q Results, Gilead & AbbVie HCV Drugs in Focus ). |
27064.0 | 2015-02-11 00:00:00 UTC | Notable ETF Outflow Detected - DLN, PEP, ABBV, UTX | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-dln-pep-abbv-utx-2015-02-11 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $55.8 million dollar outflow -- that's a 2.3% decrease week over week (from 32,450,000 to 31,700,000). Among the largest underlying components of DLN, in trading today PepsiCo Inc. (Symbol: PEP) is up about 2.3%, AbbVie Inc. (Symbol: ABBV) is up about 1.6%, and United Technologies Corp. (Symbol: UTX) is lower by about 0.5%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average:
Looking at the chart above, DLN's low point in its 52 week range is $64.09 per share, with $75.42 as the 52 week high point - that compares with a last trade of $74.26. 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 DLN, in trading today PepsiCo Inc. (Symbol: PEP) is up about 2.3%, AbbVie Inc. (Symbol: ABBV) is up about 1.6%, and United Technologies Corp. (Symbol: UTX) is lower 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 WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $55.8 million dollar outflow -- that's a 2.3% decrease week over week (from 32,450,000 to 31,700,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of DLN, in trading today PepsiCo Inc. (Symbol: PEP) is up about 2.3%, AbbVie Inc. (Symbol: ABBV) is up about 1.6%, and United Technologies Corp. (Symbol: UTX) is lower by about 0.5%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $64.09 per share, with $75.42 as the 52 week high point - that compares with a last trade of $74.26. 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 DLN, in trading today PepsiCo Inc. (Symbol: PEP) is up about 2.3%, AbbVie Inc. (Symbol: ABBV) is up about 1.6%, and United Technologies Corp. (Symbol: UTX) is lower 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 WisdomTree LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $55.8 million dollar outflow -- that's a 2.3% decrease week over week (from 32,450,000 to 31,700,000). For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $64.09 per share, with $75.42 as the 52 week high point - that compares with a last trade of $74.26. | Among the largest underlying components of DLN, in trading today PepsiCo Inc. (Symbol: PEP) is up about 2.3%, AbbVie Inc. (Symbol: ABBV) is up about 1.6%, and United Technologies Corp. (Symbol: UTX) is lower by about 0.5%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $64.09 per share, with $75.42 as the 52 week high point - that compares with a last trade of $74.26. 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). |
27065.0 | 2015-02-10 00:00:00 UTC | Will Pfizer Inc. Break Up in 2015? | ABBV | https://www.nasdaq.com/articles/will-pfizer-inc-break-2015-2015-02-10 | nan | nan | Source: Flickr via user William Murphy.
Pfizer is the world's largest drugmaker, reporting nearly $50 billion in sales last year. Even so, its stock has drastically underperformed the broader market over the past decade:
The pharma giant's stock is seemingly stuck in a rut, largely because of the loss of exclusivity for former top sellers such as Celebrex and Lipitor. But the truth is slightly more complex.
Pfizer has been churning out major new products such as its pneumonia and meningitis vaccine, Prevnar-13, during this time period. The problem, though, is that the company's massive market cap of roughly $200 billion makes it difficult for any single product to move the needle in terms of its top or bottom lines.
In fact, the drugmaker's bottom line has more or less remained flat in recent years, primarily as a result of its aggressive share buyback program:
The inherent inertia that goes hand-in-hand with being such a large company has also made the return to the growth track a long and arduous task. Nonetheless, Pfizer appears close to seeing the light at the end of tunnel, so to speak.
After jettisoning its animal health business with the IPO of Zoetis in 2013, reorganizing its corporate structure in 2014 and buying intravenous generic drugmaker Hospira to kick off 2015, Pfizer appears set to split into two separate businesses. Here's what investors need to know moving forward.
How a split might be organized
On its fourth-quarter conference call, management was decidedly not forthcoming about whether the company will split in 2015 -- or how a split might be structured. The issue at hand is that Pfizer can't simply divide itself into an old (global established products) versus a new (innovative products) products business.
Given that the established product line is seeing its top line plummet (sales dropped another 7% in the fourth quarter, for example), it would probably sink like a stone as a stand-alone entity. At the same time, legacy products such as Lipitor are diluting the positive impact of newer growth products in cardiovascular care, oncology, and vaccines.
So management's monumental task is to figure out how to package its established products line in a way that would create value for shareholders. And that's where the recent Hospira acquisition appears to come into play.
Source: Wikimedia
Hospira gives Pfizer a nice asset to pair up with its established products business, clearing the way for a logical split.
That said, the pharma behemoth may choose to do a second deal to bulk up its innovative products business first. As it currently stands, innovative products make up less than half of total sales, and Pfizer only spent roughly $17 billion to acquire Hospira, leaving ample cash reserves for another buyout.
Is Pfizer a strong buy ahead of these forthcoming changes?
As management repeatedly stressed on the call, the company may not execute a split in 2015. After the Hospira deal, though, it appears that management is indeed working toward this goal before year's end.
So the burning question now appears to be how the innovative products business will be packaged to create the largest amount of value. If management wants to add bulk to this business in terms of market cap and/or lower its effective tax rate, we could see yet another acquisition.
Based on their growth prospects and respective market caps, Actavis , AbbVie and Bristol-Myers Squibb have all been floated as potential buyout or merger candidates for Pfizer's innovative products business. And that's a huge unknown for investors going forward.
All three companies offer an intriguing mix of strengths and weaknesses as takeover targets. The pairing that would probably unlock the largest amount of value for shareholders appears to be Dublin-based Actavis, given that it would help to shrink Pfizer's effective tax rate that topped 30% at one point last year, and still offer shareholders a high growth business partner. But AbbVie and Bristol certainly wouldn't be bad consolation prizes either.
So getting back to the original question of whether Pfizer is now a buy or not: The answer looks like a resounding 'yes'. Management has taken the bold steps toward dealing with its ongoing patent problems, and is on the cusp of creating an exciting new growth-oriented business via another buyout.
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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. | Based on their growth prospects and respective market caps, Actavis , AbbVie and Bristol-Myers Squibb have all been floated as potential buyout or merger candidates for Pfizer's innovative products business. But AbbVie and Bristol certainly wouldn't be bad consolation prizes either. In fact, the drugmaker's bottom line has more or less remained flat in recent years, primarily as a result of its aggressive share buyback program: The inherent inertia that goes hand-in-hand with being such a large company has also made the return to the growth track a long and arduous task. | Based on their growth prospects and respective market caps, Actavis , AbbVie and Bristol-Myers Squibb have all been floated as potential buyout or merger candidates for Pfizer's innovative products business. But AbbVie and Bristol certainly wouldn't be bad consolation prizes either. The problem, though, is that the company's massive market cap of roughly $200 billion makes it difficult for any single product to move the needle in terms of its top or bottom lines. | Based on their growth prospects and respective market caps, Actavis , AbbVie and Bristol-Myers Squibb have all been floated as potential buyout or merger candidates for Pfizer's innovative products business. But AbbVie and Bristol certainly wouldn't be bad consolation prizes either. After jettisoning its animal health business with the IPO of Zoetis in 2013, reorganizing its corporate structure in 2014 and buying intravenous generic drugmaker Hospira to kick off 2015, Pfizer appears set to split into two separate businesses. | Based on their growth prospects and respective market caps, Actavis , AbbVie and Bristol-Myers Squibb have all been floated as potential buyout or merger candidates for Pfizer's innovative products business. But AbbVie and Bristol certainly wouldn't be bad consolation prizes either. Pfizer is the world's largest drugmaker, reporting nearly $50 billion in sales last year. |
27066.0 | 2015-02-10 00:00:00 UTC | How to Profit from Elon Musk's "Space Internet" | ABBV | https://www.nasdaq.com/articles/how-profit-elon-musks-space-internet-2015-02-10 | nan | nan | While you're checking your stocks on your iPhone and daydreaming about what Frank Underwood will be up to on "House of Cards" later this month, consider this: More than 3 billion people on Earth still have no or poor access to the Internet.
Whoever figures out a way to get those billions online will likely have created a profit gold mine.
Elon Musk , of Tesla Motors Inc. (Nasdaq: TSLA ) electric vehicles and SpaceX rockets fame, thinks he has the solution: a network of hundreds of low-orbiting satellites that will deliver high-speed, low-cost Internet to the most remote places on Earth.
Today, I'm going to show you how to profit from a company already helping to make Musk's latest dream a reality. Because he's not going to be able to build this "Space Internet" alone.
But that's just a piece of one of the biggest puzzles going in today's stock market. This tech company has made a series of moves that don't seem to fit together - but I see them playing out into a smart investment that will make shareholders major dollars over the long term.
It's got Wall Street perplexed.
However, I'm an expert "jigsawer" - and today we're going to solve this puzzle together...
Putting It All Together
Times like these make me glad I spent so many hours as a kid putting together jigsaw puzzles at the kitchen table with my mom and grandmother.
As a challenge - and to make it more fun - we never looked at the picture on the puzzle box before we finished. We considered that "cheating."
In other words, we had to make sense of the all the pieces on our own.
And over the past few years, many of the moves from Google Inc. (Nasdaq: GOOG , GOOGL ) - driverless cars, robotics, wearable technology, life-extension healthcare, and now satellites - have seemed like so many jigsaw-puzzle pieces dumped on the floor.
While many on Wall Street couldn't see it, Google was laying out its vision for the future - if you knew what to look for.
I have to admit. I had trouble seeing it at first, too.
But last fall, when Google signed a $1.16 billion, 60-year lease to take over NASA's Moffett Airfield in Silicon Valley, it started to come together for me.
Google is sidestepping around the tech sector's latest squabbles and trends and is building the ultimate conglomerate of the near future.
Wall Streeters might see Google's moves beyond online search and mobile advertising as distractions and "pet projects" of the company's starry-eyed executives.
But really, these moves into robotics and satellites arise naturally from Google's constant innovations in its current operations - and they will form the heart of the franchise going forward.
Now you know why I've told you folks to think of Google as the ultimate ETF on futuristic technology - but one that throws off enormous free cash flow and profits today.
With that in mind, let's take a look at the three main areas it hopes to dominate in the next few years.
Global Wireless
As the world's largest search engine, the only way Google can obtain new customers for its primary business is by going after those 3 billion people with poor Internet access.
Google is doing that by disrupting the hyper-growth world of wireless communications the same way it did to online search 15 years ago.
That's why Google recently joined with Fidelity National Information Services (NYSE: FIS ) in a $1 billion investment in Space Exploration Technologies Corp. (SpaceX).
That gives Google about 10% of Elon Musk's SpaceX. And it advances the Mountain View, Calif.-based company's bid to use satellites to provide wireless web access to the two-thirds of the world's 7 billion people who lack good Internet service.
By backing SpaceX, Google wants to launch a new generation of small satellites that will beam web signals to remote regions of the world.
Along those same lines, Google is also testing a service known as Project Loon that uses high-altitude balloons to beam 4G LTE cellular signals down to Earth. It has tested Project Loon in Northeast Brazil, California's Central Valley, and New Zealand.
The payoff for either approach could be huge for Google - it could give the firm as many as 4.6 billion new customers.
Google also recently announced that it's working with Cablevision Systems Corp. (NYSE: CVC ) on an advanced smartphone technology.
The service will ferret through cellular connections, provided by Sprint Corp. (NYSE: S ) and T-Mobile US Inc. (NYSE: TMUS ), and Wi-Fi "hotspots," and then pick whichever offers the best service at any moment.
And it could debut before the end of this summer.
Smarter Robots
Google's move into robotics makes more sense when you think of the company's search engine as more than a simple tool - but as a form of artificial intelligence. And then consider what robots as intelligent as Google's search engine would be able to do.
The company's decision to cosponsor a major robotics museum exhibition speaks volumes about its aspirations in this field.
Robot Revolution, the show, kicks off May 21 at Chicago's Museum of Science and Industry.
Google's sponsorship underscores just how quickly it has become one of the nation's leading robotics firms - and hints at its future programs.
Its biggest foray occurred in late 2013 when it acquired robotics pioneer Boston Dynamics. Founded in 1992, Boston Dynamics has collaborated with NASA and Harvard University and counts the Pentagon as a key client.
A YouTube video of Boston Dynamics' BigDog robot scrambling over rough terrain has been viewed some 16.5 million times. The video shows the bot climbing hills, traversing snow, and stabilizing itself after a person kicked it.
Besides Boston Dynamics, Google has purchased at least six other firms in the sector. They include SCHAFT, a small Japanese firm working on humanoid bots, and Vision Factory, an Oxford, U.K., startup that has developed advanced computer vision systems.
And Google has done more than just about any firm in the world in developing robotic cars. Begun in secret in 2009, the company's self-driving car project has already logged more than 700,000 miles on the road. One of Google's bot cars got a driver's license in Nevada in 2012.
Like I said, Google is pursuing robotics technology as a natural extension of its search-related research and development into machine learning and artificial intelligence.
Quite simply, Google wants to become the operating system - or brains - for advanced robots that build products, drive cars, and assist humans at work and home.
Longer Life
The final piece of Google's future puzzle - life extension - hasn't quite fit into our jigsaw yet. But it's becoming clearer and clearer nearly every week.
That part of the company made waves Jan. 29 when an article in The Atlantic disclosed that Google X labs have begun making artificial human skin.
Google wants to build a FitBit-style wristband that can detect impending heart attacks as well as cancer and other diseases.
To test their device, Google scientists needed to create realistic human arms, complete with skin. Once completed, the wristband will harness nanoparticles to search a patient's body for disease symptoms long before they show through X-rays, MRIs, or other conventional technology.
For Google, this was the second major piece of medical news in just a few days.
Google X confirmed on Jan. 27 that it has joined forces with Biogen Idec Inc. (Nasdaq: BIIB ), a large-cap biotech firm known for its multiple sclerosis ( MS ) drugs.
Harnessing sensors, software, and data-mining tools, the companies want to use new insights to help determine why MS progresses differently among individuals in the hopes of finding better treatments.
The Biogen joint venture follows a similar pact Google reached in January 2014 with Novartis AG (NYSE ADR: NVS ). Under that alliance, Novartis is using Google's smart contact lens to measure glucose levels in diabetes patients.
And in its biggest medical deal to date, Google joined forces with AbbVie Inc. (NYSE: ABBV ) in September to create California Life Sciences (Calico) in a quest to extend life. The two companies have agreed to invest up to $1.5 billion in drug research.
Focused on analyzing genetic data, Calico intends to use this information to create innovative treatments for age-related diseases.
Google (Nasdaq: GOOG) Stock: 50% Gains Ahead
As you might expect when confronted with such a puzzler, Wall Street investors have caused Google stock to lag the overall market over the last year. But that's about to change as the puzzle reveals itself.
With a market cap of $360 billion, the stock trades at roughly $528 a share. In the fourth quarter, Google's earnings per share jumped 40% to $6.91 a share.
If it just had annual increases of half that amount, it could double earnings in about three and a half years. To be conservative, I'm projecting that earnings and the stock price could rise by 50% over that period.
That makes Google both a play on exciting future tech and a foundational investment for today.
In other words, you don't have to wait until the puzzle is complete to profit from the company's vision of the future.
2014 Was a Boom Year for the U.S. Auto Industry.Automakers reported their strongest U.S. sales since 2006. Collectively, they sold 16.5 million cars, up 5.9% from 2013. As the auto industry surges, so too will this sector of Silicon Valley.Here's where the real capital of the auto industry lies...
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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. | And in its biggest medical deal to date, Google joined forces with AbbVie Inc. (NYSE: ABBV ) in September to create California Life Sciences (Calico) in a quest to extend life. Elon Musk , of Tesla Motors Inc. (Nasdaq: TSLA ) electric vehicles and SpaceX rockets fame, thinks he has the solution: a network of hundreds of low-orbiting satellites that will deliver high-speed, low-cost Internet to the most remote places on Earth. Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. | And in its biggest medical deal to date, Google joined forces with AbbVie Inc. (NYSE: ABBV ) in September to create California Life Sciences (Calico) in a quest to extend life. That's why Google recently joined with Fidelity National Information Services (NYSE: FIS ) in a $1 billion investment in Space Exploration Technologies Corp. (SpaceX). Smarter Robots Google's move into robotics makes more sense when you think of the company's search engine as more than a simple tool - but as a form of artificial intelligence. | And in its biggest medical deal to date, Google joined forces with AbbVie Inc. (NYSE: ABBV ) in September to create California Life Sciences (Calico) in a quest to extend life. And over the past few years, many of the moves from Google Inc. (Nasdaq: GOOG , GOOGL ) - driverless cars, robotics, wearable technology, life-extension healthcare, and now satellites - have seemed like so many jigsaw-puzzle pieces dumped on the floor. Smarter Robots Google's move into robotics makes more sense when you think of the company's search engine as more than a simple tool - but as a form of artificial intelligence. | And in its biggest medical deal to date, Google joined forces with AbbVie Inc. (NYSE: ABBV ) in September to create California Life Sciences (Calico) in a quest to extend life. But that's just a piece of one of the biggest puzzles going in today's stock market. Smarter Robots Google's move into robotics makes more sense when you think of the company's search engine as more than a simple tool - but as a form of artificial intelligence. |
27067.0 | 2015-02-10 00:00:00 UTC | Stock Market News for February 10, 2015 - Market News | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-february-10-2015-market-news-2015-02-10 | nan | nan | Markets ended in negative territory for second-consecutive day as intensified concern about Greece's debt negotiations continued to hurt investor sentiment. Moreover, China's disappointing trade data also had a negative impact on benchmarks on Monday. However, rise in oil prices limited some of the day's losses.
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) declined 0.5% to close at 17,729.21. The Standard & Poor 500 (S&P 500) lost 0.4% to close at 2,046.74. The tech-laden Nasdaq Composite Index closed at 4,726.01; decreasing 0.4%. The fear-gauge CBOE Volatility Index (VIX) jumped 7.3% to settle at 18.55. A total of about 6.2 billion shares were traded on Monday, below last five sessions' average of 7.8 billion. Decliners outpaced advancing stocks on the NYSE. For 57% stocks that declined, 40% advanced.
On Sunday, Greek Prime Minister Alexis Tsipras announced that the government will not ask for extension of its bailout program from creditors. This announcement came after the Eurozone's officials asked Greece's government on Friday to apply for an extension of its bailout program by Feb 16. Tsipras' announcement increased the odds of "Grexit" to a great extent. Moreover, Standard & Poor's decision to push the country's sovereign rating further into junk territory is a reflection of this risk.
In his speech, Tsipras said: "The new government is not justified in asking for an extension… Because it cannot ask for an extension of mistakes." He also added: "The Greek people gave a strong and clear mandate to immediately end austerity and change policies… Therefore the bailout was first cancelled by its very own failure and its destructive results."
Meanwhile, China's General Administration of Customs reported that exports declined 3.3% year over year in January, following a 9.7% rise in December. Moreover, the economy witnessed a 19.9% drop in January's imports, wider than December's decline of 2.4%. This has resulted in higher trade surplus for January at $60 billion compared with $49.6 billion in December. The data indicated that the world's second-largest economy is having difficulty in reviving its economy as both foreign and domestic demand is experiencing serious weakness.
The Health Care Select Sector SPDR (XLV) was the biggest decliner among the S&P 500 sectors. The sector declined 1.2% on Monday. Key healthcare stocks including AbbVie Inc. ( ABBV ), Alexion Pharmaceuticals, Inc. ( ALXN ), Regeneron Pharmaceuticals, Inc. ( REGN ) and Actavis plc ( ACT ) lost 2.5%, 2.4%, 1.8% and 1.5%, respectively.
Separately, the Energy Select Sector SPDR (XLE) emerged as the only gainer among the S&P 500 sectors on Monday as oil prices gained for third-consecutive day. The prices of WTI crude oil and Brent crude oil rose 2.2% and 0.9% to $52.86 per barrel and $58.34 a barrel, respectively. The sector gained 0.1% yesterday following rise in oil prices. Key energy stocks including Marathon Petroleum Corporation ( MPC ), Chevron Corporation ( CVX ), Halliburton Company ( HAL ) and Baker Hughes Incorporated ( BHI ) rose 1.3%, 0.8%, 0.4% and 0.3%, respectively.
In company news, shares of McDonald's Corp. ( MCD ) declined 1.4% after reporting a decline of 1.8% in global comparable sales in January. The company said that weak demand in Asia was one of the main reasons behind disappointing results. However, Hasbro Inc.'s ( HAS ) shares jumped 7% after announcing a year-on-year increase of 8.9% in fourth quarter adjusted earnings per share to $1.22. The company also reported net revenue of $1.30 billion which increased 1% year over year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Key healthcare stocks including AbbVie Inc. ( ABBV ), Alexion Pharmaceuticals, Inc. ( ALXN ), Regeneron Pharmaceuticals, Inc. ( REGN ) and Actavis plc ( ACT ) lost 2.5%, 2.4%, 1.8% and 1.5%, respectively. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ALEXION PHARMA (ALXN): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report HASBRO INC (HAS): Free Stock Analysis Report To read this article on Zacks.com click here. Markets ended in negative territory for second-consecutive day as intensified concern about Greece's debt negotiations continued to hurt investor sentiment. | Key healthcare stocks including AbbVie Inc. ( ABBV ), Alexion Pharmaceuticals, Inc. ( ALXN ), Regeneron Pharmaceuticals, Inc. ( REGN ) and Actavis plc ( ACT ) lost 2.5%, 2.4%, 1.8% and 1.5%, respectively. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ALEXION PHARMA (ALXN): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report HASBRO INC (HAS): Free Stock Analysis Report To read this article on Zacks.com click here. Key energy stocks including Marathon Petroleum Corporation ( MPC ), Chevron Corporation ( CVX ), Halliburton Company ( HAL ) and Baker Hughes Incorporated ( BHI ) rose 1.3%, 0.8%, 0.4% and 0.3%, respectively. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ALEXION PHARMA (ALXN): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report HASBRO INC (HAS): Free Stock Analysis Report To read this article on Zacks.com click here. Key healthcare stocks including AbbVie Inc. ( ABBV ), Alexion Pharmaceuticals, Inc. ( ALXN ), Regeneron Pharmaceuticals, Inc. ( REGN ) and Actavis plc ( ACT ) lost 2.5%, 2.4%, 1.8% and 1.5%, respectively. Separately, the Energy Select Sector SPDR (XLE) emerged as the only gainer among the S&P 500 sectors on Monday as oil prices gained for third-consecutive day. | Key healthcare stocks including AbbVie Inc. ( ABBV ), Alexion Pharmaceuticals, Inc. ( ALXN ), Regeneron Pharmaceuticals, Inc. ( REGN ) and Actavis plc ( ACT ) lost 2.5%, 2.4%, 1.8% and 1.5%, respectively. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ALEXION PHARMA (ALXN): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report HASBRO INC (HAS): Free Stock Analysis Report To read this article on Zacks.com click here. On Sunday, Greek Prime Minister Alexis Tsipras announced that the government will not ask for extension of its bailout program from creditors. |
27068.0 | 2015-02-09 00:00:00 UTC | Why Shares of Regulus Therapeutics Inc. Crashed | ABBV | https://www.nasdaq.com/articles/why-shares-regulus-therapeutics-inc-crashed-2015-02-09 | nan | nan | Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What : Shares of Regulus Therapeutics broke down today, falling by over 10% after the company released disappointing news for its closely watched hep C treatment RG-101. Specifically, Regulus noted that only 64% of patients receiving a single 4 mg/kg subcutaneous dose of the experimental treatment (9 out of 14 total) were effectively clear of the virus after about 8 weeks or 57 days.
Although these patients will need to be followed until the standard 12-week benchmark is reached, this low effective cure rate so far doesn't appear to bode well for the drug.
So what : What's important to understand is that the currently available treatments from AbbVie and Gilead Sciences tend to show functional cures of between 90% to 99%, depending on the patient population. So 64% simply won't cut it.
Topping it off, Achillion Pharmaceuticalsannounced stellar results for its experimental hep C drug, ACH-3102, this morning, with the compound helping to produce 100% cure rates after a mere 6-weeks of treatment. In short, Regulus appears to be way behind the proverbial eight ball when it comes to developing a next-generation hep C treatment at this point.
Now what : Although management tried to sound optimistic about today's top-line data release, they did admit to a change in their developmental plans for RG-101 moving forward. Namely, future studies will center on combining RG-101 with other next-gen treatments in order to generate sustained responses, as well as upping the number of injections. Put simply, RG-101 probably won't see the light of day as a monotherapy anytime soon.
Given that Regulus is unlikely to beat out the long-line of competitors gunning to develop hep C therapies with shorter treatment times, RG-101's value proposition looks significantly diminished following this data release. So today's drop does appear to be justified -- and I'm not too confident in the stock's prospects here.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Shares of Regulus Therapeutics Inc. Crashed originally appeared on Fool.com.
George Budwell owns shares of AbbVie and Gilead Sciences. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | So what : What's important to understand is that the currently available treatments from AbbVie and Gilead Sciences tend to show functional cures of between 90% to 99%, depending on the patient population. George Budwell owns shares of AbbVie and Gilead Sciences. Specifically, Regulus noted that only 64% of patients receiving a single 4 mg/kg subcutaneous dose of the experimental treatment (9 out of 14 total) were effectively clear of the virus after about 8 weeks or 57 days. | So what : What's important to understand is that the currently available treatments from AbbVie and Gilead Sciences tend to show functional cures of between 90% to 99%, depending on the patient population. George Budwell owns shares of AbbVie and Gilead Sciences. So 64% simply won't cut it. | So what : What's important to understand is that the currently available treatments from AbbVie and Gilead Sciences tend to show functional cures of between 90% to 99%, depending on the patient population. George Budwell owns shares of AbbVie and Gilead Sciences. What : Shares of Regulus Therapeutics broke down today, falling by over 10% after the company released disappointing news for its closely watched hep C treatment RG-101. | So what : What's important to understand is that the currently available treatments from AbbVie and Gilead Sciences tend to show functional cures of between 90% to 99%, depending on the patient population. George Budwell owns shares of AbbVie and Gilead Sciences. Although these patients will need to be followed until the standard 12-week benchmark is reached, this low effective cure rate so far doesn't appear to bode well for the drug. |
27069.0 | 2015-02-07 00:00:00 UTC | Does This Small Biotech Have the Making of a Blockbuster? | ABBV | https://www.nasdaq.com/articles/does-small-biotech-have-making-blockbuster-2015-02-07 | nan | nan | Source: Flickr user Stockmonkeys.com.
When it comes to developing billion-dollar blockbuster drugs, the odds are stacked against biotech companies. About 90% of drugs that enter clinical trials fail, and of those that do eventually get approved, few achieve blockbuster status. Regardless, our top Motley Fool contributors think there are three small biotech companies that can overcome the odds and eventually launch a top seller.
Cheryl Swanson : If you've heard of Enanta Pharmaceuticals , you probably know it as AbbVie 's small-cap partner in the development of Viekira Pak, one of a new wave of treatments for hepatitis C. But the tiny biotech is also developing a new type of antibiotics -- the first in 30 years -- called bicyclolides.
Enanta's funding partner on that venture is none other than the National Institute of Allergy and Infectious Diseases, or NIAID. Not only does NIAID's partnership provide the possibility of up to $43 million in research, but the FDA also began special programs for such drugs through the GAIN Act. Such drugs now have a five-year exclusivity extension, as well as an expedited approval process. Those benefits, along with the urgent and growing threat of resistant strains, are nothing to be sneezed at.
Enanta is chasing another potential blockbuster in nonalcoholic steatohepatitis, or NASH, a liver-scarring disease that affects around 5% of Americans. Enanta's NASH program is in the early stage, but the company has a tidy cash hoard to fund research. Enanta has already pocketed $227 million from AbbVie for Viekira Pak, and the drug's recent EU approval will send another $80 million its way, as well as royalties on future sales.
Enanta's NASH program looks particularly promising, since it's an extension of the company's core competency in hep-C. Investing in small-cap biotechs can pay off, and I think Enanta looks promising, but remember that how investigational compounds will perform in actual trials is next to impossible to predict. Be careful out there.
: Biotechnology waste bins are packed with clinical trial failures, and, as Cheryl alluded to, that means it's incredibly difficult for investors to accurately predict which of today's emerging biotech companies is likely to hit the jackpot with a billion-dollar blockbuster.
However, one company that may have what it takes to overcome the odds and deliver that kind of success is Ophthotech Corporation . I like Ophthotech's chances for a few reasons . First, Ophthotech's Fovista targets age-related macular degeneration, an indication that already supports Novartis ' and Regeneron 's multibillion-dollar blockbuster drugs Lucentis and Eylea, respectively.
Second, Fovista is in final phase 3 trials following phase 2 results that prompted Novartis to ink a collaboration deal for international rights to Fovista that could be worth $1 billion, plus royalties, to Ophthotech.
Third, since Fovista is being studied for use alongside Lucentis and Eylea, rather than instead of both, Ophthotech doesn't have to convince regulators that Fovista works better than them; it only has to show regulators that it improves their results. For those reasons, I think that a late-stage trial success could put Ophthotech's Fovista in a position to be a billion-dollar drug.
: Intercept Pharmaceuticals ' obeticholic acid, or OCA, could be a megablockbuster, but probably not in the first indication it's approved for.
The biotech has already presented positive data from a phase 3 trial testing OCA in a chronic liver disease called primary biliary cirrhosis, or PBC. The company plans to submit its marketing application to the FDA and EU regulators in the first half of this year. If approved, OCA will be used in the approximately 40% of patients with PBC who don't adequately respond to the current standard of care.
The real upside for Intercept is in NASH, a large, growing liver disease for which there aren't any approved drugs. Phase 2 data suggests that OCA is helping NASH patients, but the proper endpoints to measure efficacy are unclear. Intercept plans to start a phase 3 trial in NASH patients in the first half of this year, after working out the details of the trial with U.S. and EU regulators.
Intercept trades well off its 52-week high that was set after the phase 2 NASH trial was deemed a success, as investors are worried about some safety issues and perhaps some realizations that phase 2 success doesn't necessarily guarantee a positive phase 3 result.
I think if you're going to buy Intercept right now, you should own it for the potential in PBC and stick to treating NASH and primary sclerosing cholangitis, another liver disease that's even further behind, as potential upsides. At a market cap of $4 billion, there's already quite a bit of the sales for PBC priced in, but fortunately there's a high likelihood of approval for that indication, at least.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Does This Small Biotech Have the Making of a Blockbuster? originally appeared on Fool.com.
Brian Orelli , Cheryl Swanson , and The Motley Fool have no position in any stocks mentioned. Todd Campbell is long Ophthotech. Try any of our Foolish newsletter services free for 30 days . We Fools don't 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 - 2015 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. | Cheryl Swanson : If you've heard of Enanta Pharmaceuticals , you probably know it as AbbVie 's small-cap partner in the development of Viekira Pak, one of a new wave of treatments for hepatitis C. But the tiny biotech is also developing a new type of antibiotics -- the first in 30 years -- called bicyclolides. Enanta has already pocketed $227 million from AbbVie for Viekira Pak, and the drug's recent EU approval will send another $80 million its way, as well as royalties on future sales. : Biotechnology waste bins are packed with clinical trial failures, and, as Cheryl alluded to, that means it's incredibly difficult for investors to accurately predict which of today's emerging biotech companies is likely to hit the jackpot with a billion-dollar blockbuster. | Cheryl Swanson : If you've heard of Enanta Pharmaceuticals , you probably know it as AbbVie 's small-cap partner in the development of Viekira Pak, one of a new wave of treatments for hepatitis C. But the tiny biotech is also developing a new type of antibiotics -- the first in 30 years -- called bicyclolides. Enanta has already pocketed $227 million from AbbVie for Viekira Pak, and the drug's recent EU approval will send another $80 million its way, as well as royalties on future sales. When it comes to developing billion-dollar blockbuster drugs, the odds are stacked against biotech companies. | Cheryl Swanson : If you've heard of Enanta Pharmaceuticals , you probably know it as AbbVie 's small-cap partner in the development of Viekira Pak, one of a new wave of treatments for hepatitis C. But the tiny biotech is also developing a new type of antibiotics -- the first in 30 years -- called bicyclolides. Enanta has already pocketed $227 million from AbbVie for Viekira Pak, and the drug's recent EU approval will send another $80 million its way, as well as royalties on future sales. Second, Fovista is in final phase 3 trials following phase 2 results that prompted Novartis to ink a collaboration deal for international rights to Fovista that could be worth $1 billion, plus royalties, to Ophthotech. | Cheryl Swanson : If you've heard of Enanta Pharmaceuticals , you probably know it as AbbVie 's small-cap partner in the development of Viekira Pak, one of a new wave of treatments for hepatitis C. But the tiny biotech is also developing a new type of antibiotics -- the first in 30 years -- called bicyclolides. Enanta has already pocketed $227 million from AbbVie for Viekira Pak, and the drug's recent EU approval will send another $80 million its way, as well as royalties on future sales. When it comes to developing billion-dollar blockbuster drugs, the odds are stacked against biotech companies. |
27070.0 | 2015-02-07 00:00:00 UTC | Can You Guess the Stock Putting Gilead Sciences to Shame? (Hint: It's Not AbbVie) | ABBV | https://www.nasdaq.com/articles/can-you-guess-stock-putting-gilead-sciences-shame-hint-its-not-abbvie-2015-02-07 | nan | nan | Building on its lead
However, that could prove to be just the tip of the iceberg for Pharmacyclics and J&J. The two companies are studying Imbruvica in 58 ongoing clinical trials that cut across hematology and solid tumor treatment, including as a therapy for use in treating lung, breast, colon, and pancreatic cancer.
Of those trials, 13 are in phase 3, and that could mean that additional label expansions occur in the coming year or two. If so, Pharmacyclics and J&J believe that the total patient population that could benefit from Imbruvica could grow from 55,000 people today to 374,000 patients in the future.
Establishing a beachhead
The sheer volume of activity surrounding Imbruvica has analysts expecting that the drug could easily become a $3 billion-a-year drug. Analyst estimates for Zydelig's peak sales of $1.2 billion are far more timid.
Regardless, Gilead Sciences views Zydelig as the first of a series of cancer-fighting compounds that it intends to launch in the coming years. Other therapies that Gilead Sciences is developing include momelotinib, a JAK inhibitor for the treatment of myelofibrosis and pancreatic cancer, GS-9973 and GS-9901 for blood cancers, and GS-5745 for solid tumor indications.
Looking ahead
Imbruvica's opportunity as a monotherapy already appears to be bigger than Zydelig's, but Imbruvica's sales potential isn't limited to its use as a stand-alone drug.
Pharmacyclics and J&J are studying Imbruvica's efficacy alongside a host of top-selling oncology drugs, such as Revlimid. Additional studies are also being conducted to evaluate whether Imbruvica can improve outcomes when paired up with some of cancer's most promising new treatments, too. For example, Imbruvica is being combined with Bristol-Myers Squibb 's recently approved PD-1 inhibitor Opdivo as a potential therapy for non-Hodgkin lymphoma.
Based on all of the activity surrounding Imbruvica, it wouldn't be surprising if Pharmacyclics maintains its leadership over Gilead Sciences in oncology. But with Gilead Sciences raking in billions of dollars in sales from its market-leading HIV and hepatitis C drugs, investors shouldn't count it out -- at least not yet.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Can You Guess the Stock Putting Gilead Sciences to Shame? (Hint: It's Not AbbVie) originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences and Pharmacylics. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may or may not have positions in the companies mentioned. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | (Hint: It's Not AbbVie) originally appeared on Fool.com. The two companies are studying Imbruvica in 58 ongoing clinical trials that cut across hematology and solid tumor treatment, including as a therapy for use in treating lung, breast, colon, and pancreatic cancer. But with Gilead Sciences raking in billions of dollars in sales from its market-leading HIV and hepatitis C drugs, investors shouldn't count it out -- at least not yet. | (Hint: It's Not AbbVie) originally appeared on Fool.com. The two companies are studying Imbruvica in 58 ongoing clinical trials that cut across hematology and solid tumor treatment, including as a therapy for use in treating lung, breast, colon, and pancreatic cancer. Other therapies that Gilead Sciences is developing include momelotinib, a JAK inhibitor for the treatment of myelofibrosis and pancreatic cancer, GS-9973 and GS-9901 for blood cancers, and GS-5745 for solid tumor indications. | (Hint: It's Not AbbVie) originally appeared on Fool.com. Looking ahead Imbruvica's opportunity as a monotherapy already appears to be bigger than Zydelig's, but Imbruvica's sales potential isn't limited to its use as a stand-alone drug. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. | (Hint: It's Not AbbVie) originally appeared on Fool.com. Looking ahead Imbruvica's opportunity as a monotherapy already appears to be bigger than Zydelig's, but Imbruvica's sales potential isn't limited to its use as a stand-alone drug. The Motley Fool owns shares of Gilead Sciences and Johnson & Johnson. |
27071.0 | 2015-02-06 00:00:00 UTC | 3 Things You Ought to Know About Gilead's Tumble | ABBV | https://www.nasdaq.com/articles/3-things-you-ought-know-about-gileads-tumble-2015-02-06 | nan | nan | Why are some investors dropping Gilead Sciences , when the company just reported 137% year over year sales growth? As Healthcare contributor Todd Campbell points out, the answer can be seen in which investors are jumping ship and which are staying.
Campbell explains why some short-termers are getting out, and which three factors the long-term Foolish investor should bear in mind in order to see beyond the headlines and make a more informed decision on Gilead Sciences, especially now while the share price is down.
A full transcript follows the video.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
Todd Campbell: Gilead Sciences reports a blockbuster quarter, yet shares fall. Here are three things you ought to know, on this health care edition of Industry Focus.
Hello fellow Motley Fools, this is Healthcare Contributor Todd Campbell. Despite us having some technical difficulties at Fool HQ today, I want to take a couple minutes and discuss Gilead Sciences' recently announced fourth quarter and full year earnings results.
In particular, I want to discuss three items that investors may want to consider prior to deciding whether or not to buy or sell Gilead Sciences shares.
However, before I discuss those three points, I want to discuss the elephant in the room, which is why is it that Gilead Sciences shares are tumbling despite the company reporting 137% year over year sales growth in the fourth quarter?
I think the reason for that tumble stems from the fact that there are two separate types of investors. There are short-term investors who tend to jump in and out of stocks, looking for whatever's hot today. Then there are long-term investors who, like most of us at The Motley Fool, like to consider disruptive companies and the impact they can make over a matter of years, not over a matter of days.
In Gilead Sciences' fourth quarter earnings report they issued guidance for 2015. That guidance calls for sales to run at about $26 billion to $27 billion in 2015. At the low end, that would be 4.5% growth over the lofty levels registered in 2014.
Frankly, I don't think that's enough to keep those short-term investors happy, so it's probably not surprising to see shares selling off a little bit as those short-term investors step aside and look for higher-growth opportunities elsewhere.
But for long-term investors, people who are looking for those disruptive companies that can continue to grow sales and profits for years not for days, there are three points that I want to make; three things, if you will, to consider beyond what you're reading in the headlines.
Those three points involve the HIV drug franchise, operating margins, and -- surprise! -- Sovaldi still matters.
First off, let's talk about the HIV franchise. In the past year, most of the attention on Gilead Sciences has focused not on the HIV drugs but on the hepatitis C drugs Sovaldi, which was approved in December 2013, and Harvoni, which was approved in genotype 1 patients in October.
Sure, in the past year those two drugs have combined to generate $10 billion-plus in sales. But the HIV franchise also generates $10 billion in sales per year, and that business is growing by double digits.
In the fourth quarter sales of HIV drugs were up 15.5% to $2.8 billion, and for the full year sales rose 13.2% to $10.1 billion.
Now, Sovaldi did $10 billion in sales. Harvoni, in its first quarter, did $2 billion in sales. Either way, no matter how you look at it, HIV is still going to account for roughly half of Gilead Sciences' revenue in 2015, so investors shouldn't rely solely on the opportunity for growth in hepatitis C. They should also be considering what the potential is in the HIV drugs.
From my perspective, the HIV franchise has plenty of years' worth of running room left to go. One of the reasons that I believe that is because historically adherence rates to HIV medicine were less than they should have been -- less than ideal.
That's because there was a difficulty in getting access to insurance; the high cost of drugs just simply made it so that many HIV patients would have to go off and go on, and go off and go on their medication.
Now, with Medicaid expansion in many states and health care exchanges, those patients are having a much easier time staying on their medication. That's going to mean the scrip volume for HIV drugs is likely to trend higher, not lower.
The other tailwind that's likely to support HIV franchises over the coming years is the fact that HIV patients, because of these advances, are living much longer. Since HIV drugs have to be taken continuously, that means that there's going to be ongoing demand for Gilead Sciences' drugs for years to come.
The second point I wanted to make today is that operating margin at Gilead Sciences is not only strong, but it's growing. In 2013 the operating margin was about 45% and in 2014 the operating margin is about 67%.
Now, there are a number of reasons that operating margin has climbed, but the biggest reason is the fact that volume has grown to such a level that it's being leveraged against fixed costs and that's making the company overall more profitable.
If the company didn't think that those operating margins were going to remain at similar levels, they probably wouldn't have gone out and issued a $0.43 cash quarterly dividend for investors. Frankly, the company has become so profitable, it's kicking out so much cash, that there's a tremendous amount of financial flexibility to not only support the dividend payout, but also to continue to invest in next-generation therapies and the research pipeline.
When investors ask, "What should I be focusing on as far as the financials?" when it comes to Gilead and mature companies about the size of Gilead, I like to look at the operating margin. In this case, that makes me want to be long -- and in fact I am long.
The third point that I wanted to make for investors is that Sovaldi, the drug that was launched in December 2013, isn't going anywhere soon. That drug is likely to remain a major contributor to sales in 2015, and that's because Sovaldi is a pan-genotype drug.
It's not used just to treat genotype 1, which is what Harvoni and AbbVie 's competing drug Viekira Pak are approved to treat. It's used to treat genotypes 2 and 3 and 5 and 6, so there's still a tremendous amount of demand for Sovaldi.
To put that demand into perspective, last quarter Sovaldi sales were about $1.7 billion. Now, the company says that about 30% of those sales came from genotype 1. Those genotype 1 sales are probably going to disappear this year, now that Viekira Pak is available.
But even if you lop 30% off of the $1.7 billion, you still end up with a drug that's doing about $1.2 billion in quarterly sales; $1.2 times four gets you $4.8. Harvoni did $2 billion in sales in its first quarter on the market. That's another $8 billion, so you're talking about a 2015 run rate for sales for hepatitis C of about $12-12.5 billion.
Throw on top of that the fact that you've got this HIV drug franchise generating another $10 billion in revenue, you've got operating margins that are accelerating and are very high, respectable, and you've got a recipe that may suggest that Gilead Sciences shares, at least for long-term investors, are offering an attractive entry, especially given the fact that the valuation has gotten even cheaper over the course of the last couple days.
Looking at it earlier this morning on a 2015 basis, the shares were trading at about 9 times estimated earnings.
Those three things are things that I would be considering when it comes to evaluating whether or not I'd want to be long Gilead Sciences following its fourth quarter earnings, and would want to own it in 2015.
I hope you found that helpful. As The Motley Fool, we always want to provide a little bit deeper dive; a little bit deeper, broader understanding of the situations that are affecting companies that we feel offer a lot of interest to investors.
Obviously, if you have any additional questions, feel free to reach out and let us know. Until then, Fool on!
The article 3 Things You Ought to Know About Gilead's Tumble originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | It's not used just to treat genotype 1, which is what Harvoni and AbbVie 's competing drug Viekira Pak are approved to treat. Campbell explains why some short-termers are getting out, and which three factors the long-term Foolish investor should bear in mind in order to see beyond the headlines and make a more informed decision on Gilead Sciences, especially now while the share price is down. Despite us having some technical difficulties at Fool HQ today, I want to take a couple minutes and discuss Gilead Sciences' recently announced fourth quarter and full year earnings results. | It's not used just to treat genotype 1, which is what Harvoni and AbbVie 's competing drug Viekira Pak are approved to treat. Despite us having some technical difficulties at Fool HQ today, I want to take a couple minutes and discuss Gilead Sciences' recently announced fourth quarter and full year earnings results. However, before I discuss those three points, I want to discuss the elephant in the room, which is why is it that Gilead Sciences shares are tumbling despite the company reporting 137% year over year sales growth in the fourth quarter? | It's not used just to treat genotype 1, which is what Harvoni and AbbVie 's competing drug Viekira Pak are approved to treat. However, before I discuss those three points, I want to discuss the elephant in the room, which is why is it that Gilead Sciences shares are tumbling despite the company reporting 137% year over year sales growth in the fourth quarter? In the fourth quarter sales of HIV drugs were up 15.5% to $2.8 billion, and for the full year sales rose 13.2% to $10.1 billion. | It's not used just to treat genotype 1, which is what Harvoni and AbbVie 's competing drug Viekira Pak are approved to treat. In the past year, most of the attention on Gilead Sciences has focused not on the HIV drugs but on the hepatitis C drugs Sovaldi, which was approved in December 2013, and Harvoni, which was approved in genotype 1 patients in October. In the fourth quarter sales of HIV drugs were up 15.5% to $2.8 billion, and for the full year sales rose 13.2% to $10.1 billion. |
27072.0 | 2015-02-06 00:00:00 UTC | Can Gilead Boost HCV Sales with Health Service Deals? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/can-gilead-boost-hcv-sales-with-health-service-deals-analyst-blog-2015-02-06 | nan | nan | Gilead Sciences Inc. ( GILD ) has entered into agreements with several pharmacy benefit managers and health care service companies for its blockbuster hepatitis C virus (HCV) drugs, Sovaldi (launched in the U.S. in Dec 2013 and EU in Jan 2014) and Harvoni (launched in the U.S. in Oct 2014).
Earlier this week, Gilead entered into an agreement with the health service company Cigna ( CI ). As per the terms of the agreement, Cigna will include Harvoni as the only preferred brand prescription drug treatment for customers with HCV genotype 1. This will enable Cigna clients and customers gain access to Harvoni at a significantly lower cost.
Prior to this, the company had entered into an agreement with Aetna which will result in lower pricing for Sovaldi and Harvoni for Aetna customers.
Will These Collaborations Boost Revenues?
Presently, the HCV market is quite lucrative. As per data from Centers for Disease Control and Prevention, approximately 3.2 million people in the U.S. suffer from chronic HCV infection.
The HCV market is also very competitive. We remind investors that AbbVie's ( ABBV ) Viekira Pak gained FDA approval for the treatment of patients with chronic genotype 1 HCV infection, including those with compensated cirrhosis, in December last year.
Leading pharmacy benefit manager Express Scripts ( ESRX ) has added AbbVie's lower priced Viekira Pak to its formulary as an exclusive option for genotype 1 HCV patients. Express Scripts' decision to choose lower-priced Viekira Pak over other expensive HCV drugs has triggered concerns about pricing pressure on Sovaldi and Harvoni.
On its fourth-quarter conference call, Gilead stated that it is undertaking several pricing measures including an increase in discount, charge back and rebates due to the ongoing commercial payer contract negotiations.
Gilead expects 2015 product sales in the range of $26-$27 billion reflecting an increase of 6% to 10% over 2014. The company's 2015 revenue guidance came in below our expectations. We are concerned about additional pricing measures in the form of rebates and discounts which could hamper Harvoni sales in 2015.
In the fourth quarter of 2014, Harvoni and Sovaldi generated revenues of $2.1 billion and $1.7 billion respectively. Going forward, we expect investor focus to remain on the sales ramp up of Harvoni.
Gilead currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the health care space is Alnylam Pharmaceuticals, Inc. ( ALNY ) holding 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. | We remind investors that AbbVie's ( ABBV ) Viekira Pak gained FDA approval for the treatment of patients with chronic genotype 1 HCV infection, including those with compensated cirrhosis, in December last year. Leading pharmacy benefit manager Express Scripts ( ESRX ) has added AbbVie's lower priced Viekira Pak to its formulary as an exclusive option for genotype 1 HCV patients. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report CIGNA CORP (CI): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Leading pharmacy benefit manager Express Scripts ( ESRX ) has added AbbVie's lower priced Viekira Pak to its formulary as an exclusive option for genotype 1 HCV patients. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report CIGNA CORP (CI): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that AbbVie's ( ABBV ) Viekira Pak gained FDA approval for the treatment of patients with chronic genotype 1 HCV infection, including those with compensated cirrhosis, in December last year. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report CIGNA CORP (CI): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that AbbVie's ( ABBV ) Viekira Pak gained FDA approval for the treatment of patients with chronic genotype 1 HCV infection, including those with compensated cirrhosis, in December last year. Leading pharmacy benefit manager Express Scripts ( ESRX ) has added AbbVie's lower priced Viekira Pak to its formulary as an exclusive option for genotype 1 HCV patients. | We remind investors that AbbVie's ( ABBV ) Viekira Pak gained FDA approval for the treatment of patients with chronic genotype 1 HCV infection, including those with compensated cirrhosis, in December last year. Leading pharmacy benefit manager Express Scripts ( ESRX ) has added AbbVie's lower priced Viekira Pak to its formulary as an exclusive option for genotype 1 HCV patients. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report CIGNA CORP (CI): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27073.0 | 2015-02-06 00:00:00 UTC | Gilead, Amgen Q4 Earnings & Weak Outlook Affect Biotech ETFs - ETF News And Commentary | ABBV | https://www.nasdaq.com/articles/gilead-amgen-q4-earnings-weak-outlook-affect-biotech-etfs-etf-news-and-commentary-2015-02 | nan | nan | The biotech sector stood out last year and the NASDAQ Biotechnology Index delivered a stellar 34% return for 2014.
Despite some temporary glitches and rough trading in between; encouraging industry trends, increasing merger and acquisition activities, several important product approvals and label expansions, ever-increasing health care spending and an aging population led the sector to easily outperform the broader U.S. equity markets (read: 3 Biotech ETF Winners from 2014's Best Performing Sector ).
The strong performance continued into the New Year with most of the biotech ETFs trading in the green in the year-to-date frame. However, the industry has started to show some weakness lately. Unlike the third quarter wherein most of the well-known industry players easily managed to beat our estimates on both earnings and revenues, the fourth quarter saw some of them reporting mixed financial results.
Though the top players like Gilead ( GILD) and Amgen ( AMGN ) have reported strong results, a not-so-inspiring outlook by Gilead continued to hammer the company's stock prices post earnings. Pricing war in the hepatitis C virus (HCV) market has led the company to guide revenues for 2015 lower than Street estimates (read: Gilead Falls on AbbVie and Express Scripts Deal: 3 Biotech ETFs to Watch ).
Biotech Earnings in Focus
GILD Earnings in Focus
The company reported solid fourth-quarter numbers as net income more than quadrupled to an adjusted $3.88 billion from $930 million in the year-ago quarter. Adjusted earnings per share came in at $2.43, easily surpassing the Zacks Consensus Estimate of $2.27. Revenues rose 134.3% to $7.31 billion topping our estimates of $6.69 billion.
Strong sales of the HCV drugs, Harvoni and Sovaldi, helped boost net profits, beating Wall Street forecasts. Sales of Sovaldi came in at $1.73 billion for the reported quarter, while sales of the improved combination drug - Harvoni - totaled $2.11 billion.
Gilead declared its first quarterly dividend of 43 cents, or $1.72 annually, which will be paid from the second quarter of 2015, pending approval. The company will also begin a $15 billion share repurchasing program to be completed within five years.
However, the company said it plans to offer steeper-than-expected discounts on its HCV drugs to health insurers and other group payers which made investors jittery. The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc (ABBV) and its much cheaper HCV treatment Viekira Pak in the market. The discounts Gilead plans to offer this year will hurt its top line, leading to a sales estimate of $26 billion to $27 billion from the company for 2015, below the average Wall Street estimate of $28.6 billion.
AMGN Earnings in Focus
The company reported earnings of $2.16 per share, well above the Zacks Consensus Estimate of $2.05, driven by higher revenues. Moreover, total revenues increased 6.4% to $5,331 million in the reported quarter, beating the Zacks Consensus Estimate of $5,192 million.
Amgen maintained its previously issued guidance for 2015. The company expects to earn $9.05-$9.40 per share on total revenues of $20.8 billion to $21.3 billion. The Zacks Consensus Estimate for earnings and revenues are $9.35 per share and $20.9 billion, respectively.
BIIB Earnings in Focus
Biogen ( BIIB ) reported mixed fourth quarter results, beating the bottom-line estimates, but marginally missing on the top line. However, the company provided a strong outlook for 2015 and expects earnings in the range of $16.60-$17.00 per share on revenue growth of 14-16%.
Alexion Earnings
Alexion ( ALXN ) also reported mixed fourth quarter results, beating on revenues, but missing the earnings estimates. The company provided a disappointing outlook for 2015 and expects net product sales in the range of $2.55-$2.6 billion, below the Zacks Consensus Estimate of $2.72 billion.
Market Impact
Given the disappointing revenue guidance due to steeper-than-expected discounts on anti-viral drugs, Gilead's shares plunged 4.5% in after-market trading on the day of the earnings release. Also, the stock closed 8% lower on Feb 4. Weakness in Gilead has fueled concerns about pricing pressure on the overall biotech sector, dragging down other players. Amgen shares are trading more than 1.5% lower post its results, while Alexion shares have plunged more than 5% post earnings.
The dull performance of these companies has put biotech ETFs in focus. Investors should carefully watch the movement of these funds and take advantage of any opportunity that arises.
iShares Nasdaq Biotechnology ETF ( IBB )
This fund provides exposure to 151 firms by tracking the Nasdaq Biotechnology Index. IBB is one of the most popular funds in the biotech space with an AUM of $7.2 billion and an average trading volume of 1.4 million shares (see: all the Healthcare ETFs here ).
Biogen, Gilead, Celgene and Amgen are the top four holdings with 9.8%, 8.3%, 7.9% and 7.1% allocations, respectively. The ETF has lost 2.5% in the past one week but is up 33.5% in the past one year. IBB currently has a Zacks ETF Rank #2 or Buy rating.
Market Vectors Biotech ETF (BBH)
This fund tracks the Market Vectors US Listed Biotech 25 Index, holding 26 securities in the basket. The product has so far amassed $722.8 million in its asset base and sees moderate trading volumes of roughly 148,000 shares a day. Gilead, Amgen, Celgene and Biogen occupy the top four spots in the fund, with a combined exposure of more than 40%. The fund has lost 2.4% in the past five trading sessions but is up 24.5% in the past one year. BBH currently has a Zacks ETF Rank #1 or Strong Buy rating.
Dynamic Biotech & Genome ( PBE )
This fund provides exposure to 30 firms by tracking the Dynamic Biotech & Genome Intellidex Index. Biogen, Gilead and Amgen are among the top 10 holdings with a combined exposure of 16%.
The product has amassed $1492.3 million in its asset base while it trades in lower volumes of 71,000 shares per day. PBE has lost 2.8% in the past one week and currently has a Zacks ETF Rank #2 or Buy rating (read: The Complete Guide to Biotech ETFs ).
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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. | Pricing war in the hepatitis C virus (HCV) market has led the company to guide revenues for 2015 lower than Street estimates (read: Gilead Falls on AbbVie and Express Scripts Deal: 3 Biotech ETFs to Watch ). The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc (ABBV) and its much cheaper HCV treatment Viekira Pak in the market. Market Impact Given the disappointing revenue guidance due to steeper-than-expected discounts on anti-viral drugs, Gilead's shares plunged 4.5% in after-market trading on the day of the earnings release. | Pricing war in the hepatitis C virus (HCV) market has led the company to guide revenues for 2015 lower than Street estimates (read: Gilead Falls on AbbVie and Express Scripts Deal: 3 Biotech ETFs to Watch ). The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc (ABBV) and its much cheaper HCV treatment Viekira Pak in the market. Though the top players like Gilead ( GILD) and Amgen ( AMGN ) have reported strong results, a not-so-inspiring outlook by Gilead continued to hammer the company's stock prices post earnings. | Pricing war in the hepatitis C virus (HCV) market has led the company to guide revenues for 2015 lower than Street estimates (read: Gilead Falls on AbbVie and Express Scripts Deal: 3 Biotech ETFs to Watch ). The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc (ABBV) and its much cheaper HCV treatment Viekira Pak in the market. The discounts Gilead plans to offer this year will hurt its top line, leading to a sales estimate of $26 billion to $27 billion from the company for 2015, below the average Wall Street estimate of $28.6 billion. | Pricing war in the hepatitis C virus (HCV) market has led the company to guide revenues for 2015 lower than Street estimates (read: Gilead Falls on AbbVie and Express Scripts Deal: 3 Biotech ETFs to Watch ). The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc (ABBV) and its much cheaper HCV treatment Viekira Pak in the market. The Zacks Consensus Estimate for earnings and revenues are $9.35 per share and $20.9 billion, respectively. |
27074.0 | 2015-02-04 00:00:00 UTC | Why Achillion Pharmaceuticals, Inc. Stock Is Crashing Today | ABBV | https://www.nasdaq.com/articles/why-achillion-pharmaceuticals-inc-stock-crashing-today-2015-02-04 | nan | nan | Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What : Shares of hepatitis C drugmaker Achillion Pharmaceuticals sank by more than 20% at one point today. Although there was no specific catalyst driving the stock's downfall, it appears to be cratering as a result of the bevy of disappointing news emanating from fellow hep C drugmakers AbbVie , Gilead Sciences , and Merck .
AbbVie kicked off the streak of hep C drugmaker disappointments with its earnings report earlier this week. In the report, management stated that the commercial uptake of its drug, Viekira Pak, will take longer than expected, and sales probably won't reach the Street's lofty estimates of nearly $3 billion in 2015.
Gilead added to the misery yesterday on itsearnings call giving annual sales estimates for its hep C franchise of Harvoni and Sovaldi that fell short of some estimates by a staggering $1.5 billion.
And in a rare move, the Food and Drug Administration rescinded its Breakthrough Therapy designation for Merck's hep C combo treatment consisting of grazoprevir/elbasvir today. While the FDA didn't provide any details on the decision, it appears that the agency no longer views additional hep C drugs as a major priority, hurting Achillion's chances of garnering an accelerated review for its offerings down the road.
So what : Achillion is a one trick pony in many ways, and this avalanche of bad news in the hep C market would appear to limit the stock's upside potential. Put simply, this clinical-stage biotech appears to be getting into the game too late, and additional drugs won't receive any favors from the FDA moving forward.
Now what : Achillion's shareholders were hoping for a buyout this year, but that no longer appears to be a likely scenario. AbbVie, Gilead, and Merck are all working on new hep C combos of their own that would shorten treatment times without the need for interferon, meaning that Achillion's pipeline probably offers little value for these market leaders at this point.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Achillion Pharmaceuticals, Inc. Stock Is Crashing Today originally appeared on Fool.com.
George Budwell owns shares of AbbVie and Gilead Sciences. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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 there was no specific catalyst driving the stock's downfall, it appears to be cratering as a result of the bevy of disappointing news emanating from fellow hep C drugmakers AbbVie , Gilead Sciences , and Merck . AbbVie kicked off the streak of hep C drugmaker disappointments with its earnings report earlier this week. AbbVie, Gilead, and Merck are all working on new hep C combos of their own that would shorten treatment times without the need for interferon, meaning that Achillion's pipeline probably offers little value for these market leaders at this point. | Although there was no specific catalyst driving the stock's downfall, it appears to be cratering as a result of the bevy of disappointing news emanating from fellow hep C drugmakers AbbVie , Gilead Sciences , and Merck . AbbVie kicked off the streak of hep C drugmaker disappointments with its earnings report earlier this week. AbbVie, Gilead, and Merck are all working on new hep C combos of their own that would shorten treatment times without the need for interferon, meaning that Achillion's pipeline probably offers little value for these market leaders at this point. | Although there was no specific catalyst driving the stock's downfall, it appears to be cratering as a result of the bevy of disappointing news emanating from fellow hep C drugmakers AbbVie , Gilead Sciences , and Merck . AbbVie, Gilead, and Merck are all working on new hep C combos of their own that would shorten treatment times without the need for interferon, meaning that Achillion's pipeline probably offers little value for these market leaders at this point. AbbVie kicked off the streak of hep C drugmaker disappointments with its earnings report earlier this week. | Although there was no specific catalyst driving the stock's downfall, it appears to be cratering as a result of the bevy of disappointing news emanating from fellow hep C drugmakers AbbVie , Gilead Sciences , and Merck . AbbVie, Gilead, and Merck are all working on new hep C combos of their own that would shorten treatment times without the need for interferon, meaning that Achillion's pipeline probably offers little value for these market leaders at this point. AbbVie kicked off the streak of hep C drugmaker disappointments with its earnings report earlier this week. |
27075.0 | 2015-02-04 00:00:00 UTC | 5 Things AbbVie Inc.'s Management Wants You to Know | ABBV | https://www.nasdaq.com/articles/5-things-abbvie-incs-management-wants-you-know-2015-02-04 | nan | nan | Source: AbbVie
By most measures, AbbVie performed well in the fourth quarter of 2014. Earnings handily beat expectations. Revenue increased in line with consensus forecasts. And yet shares dropped over 4% on Friday after the company released its financial results.
What happened? During AbbVie'searnings call the company provided projections for hepatitis C drug Viekira Pak that disappointed analysts. This underscores how the message from a company's management team about the future usually outweighs numbers from the prior quarter. In case you missed it, here are the key things from AbbVie's call that management wants investors to know. (Quotes courtesy of Thomson Reuters StreetEvents .)
1. Under-promised and over-delivered
Chairman and CEO Rick Gonzalez spoke only a few seconds before noting that sales and earnings topped the company's projections for the year. Gonzalez pointed out that when AbbVie was first spun off from Abbott Labs two years ago a key priority was to "return to strong growth in 2015". He added that the company was "able to achieve that goal a year ahead of schedule".
You can't blame AbbVie's management for bragging just a little bit about 2014. They hewed closely to the old mantra that you should under-promise and over-deliver. Despite a pullback in share prices over the last couple of months, investors have still benefited from the company's beating expectations. AbbVie's stock is up 22% over the last 12 months.
2. Humira still has plenty of juice
The solid results from 2014 came largely on the back of AbbVie's star performer, Humira. The drug saw operational growth of nearly 19% year-over-year. Rick Gonzalez highlighted just how successful Humira has been by noting that it "has averaged well over $1 billion of growth per year for the past eight years".
Management doesn't see any signs that Humira is losing much steam. Gonzalez stated that they expect Humira will experience operational growth in the mid-teens for 2015. AbbVie anticipates decisions in the U.S. and Europe for use of Humira in treating chronic skin disease hidradenitis suppurativa. Management thinks the market for this indication could approach $1 billion annually.However, it's worth keeping in mind that the drug is set to lose patent protection in the U.S. by December 2016.
3. Viekira Pak is on track
Gonzalez said that the company is "pleased with our progress" when it comes to hepatitis C drug Viekira Pak. AbbVie estimates that over 40% of Americans will have access to Viekira Pak. More than 20% of those stem from exclusive contracts, most importantly from the deal that AbbVie struck with Express Scripts , the nation's largest pharmacy benefits manager.
AbbVie CEO Rick Gonzalez. Source: AbbVie
AbbVie projects global annual sales for Viekira Pak will top $3 billion in 2015. The company's vagueness disconcerted some analysts, who were expecting sales of $3.11 billion. To be fair, though, Rick Gonzalez stated that the company would provide "more specific guidance... as the year unfolds". His reminder that AbbVie is "early in our launch" for Viekira and that "there are numerous factors at play" should be kept in mind when assessing the $3 billion figure.
4. The pipeline is percolating
Management didn't spend a lot of time talking about AbbVie's pipeline but did emphasize several key products in development. Cancer drug ABT-199 was one mentioned. AbbVie expects to submit the drug for regulatory approval as a treatment for chronic lymphocytic leukemia later this year.
Daclizumab, also known as Zinbryta, stands out as perhaps the most exciting prospect in AbbVie's pipeline right now. The drug, which is being developed by AbbVie and Biogen Idec , targets treatment of patients with relapsing remitting multiple sclerosis. AbbVie and Biogen should submit for regulatory approval of daclizumab in the first half of 2015.
5. 2015 looks solid
AbbVie confirmed its previous 2015 earnings guidance of $4.25 to $4.45 per share. Analysts expect at or above the top end of that range.
One question mark for AbbVie relates to currency fluctuations. CFO Bill Chase acknowledged that currency rates could impact sales. However, he also stated that AbbVie is comfortable with its earnings guidance despite the risk of foreign exchange rate fluctuation.
Shareholders can take heart especially from one comment from CEO Rick Gonzalez. He noted that AbbVie "generates significant cash flow which we expect will grow in 2015". Gonzalez said that the company plans to return much of that cash to shareholders primarily through increasing dividends. AbbVie bumped its quarterly dividend payment up by 17% beginning in February 2015.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 5 Things AbbVie Inc.'s Management Wants You to Know originally appeared on Fool.com.
Keith Speights owns shares of Express Scripts but doesn't own AbbVie despite a bullish view on the stock. As luck would have it, AbbVie has outperformed Express Scripts over the last year.C'est la vie -- and ce'st l'AbbVie, too. The Motley Fool recommends and owns shares of Express Scripts. 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 - 2015 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. | Source: AbbVie By most measures, AbbVie performed well in the fourth quarter of 2014. During AbbVie'searnings call the company provided projections for hepatitis C drug Viekira Pak that disappointed analysts. In case you missed it, here are the key things from AbbVie's call that management wants investors to know. | During AbbVie'searnings call the company provided projections for hepatitis C drug Viekira Pak that disappointed analysts. Source: AbbVie AbbVie projects global annual sales for Viekira Pak will top $3 billion in 2015. Keith Speights owns shares of Express Scripts but doesn't own AbbVie despite a bullish view on the stock. | Source: AbbVie By most measures, AbbVie performed well in the fourth quarter of 2014. Source: AbbVie AbbVie projects global annual sales for Viekira Pak will top $3 billion in 2015. During AbbVie'searnings call the company provided projections for hepatitis C drug Viekira Pak that disappointed analysts. | Keith Speights owns shares of Express Scripts but doesn't own AbbVie despite a bullish view on the stock. Source: AbbVie By most measures, AbbVie performed well in the fourth quarter of 2014. During AbbVie'searnings call the company provided projections for hepatitis C drug Viekira Pak that disappointed analysts. |
27076.0 | 2015-02-04 00:00:00 UTC | Gilead Tops Q4 Earnings Estimates, 2015 Outlook Disappoints - Analyst Blog | ABBV | https://www.nasdaq.com/articles/gilead-tops-q4-earnings-estimates-2015-outlook-disappoints-analyst-blog-2015-02-04 | nan | nan | Gilead Sciences, Inc .'s ( GILD ) fourth-quarter earnings (including stock-based compensation expenses) of $2.38 per share surpassed the Zacks Consensus Estimate of $2.27. Moreover, reported earnings were way above the year-ago figure of 52 cents per share.
Gilead Sciences Inc. - Quarterly EPS | FindTheBest
Including one-time items, the company reported fourth-quarter earnings of $2.18 per share, well above the year-ago figure of 47 cents per share.
Total revenues of $7.3 billion were no comparison to the year-ago figure of $3.1 billion. Quarterly revenues were above the Zacks Consensus Estimate of $6.7 billion.
Full-year 2014 revenues increased 122.2% to $24.9 billion, topping the Zacks Consensus Estimate of $24.3 billion. Earnings (including stock-based compensation expenses) increased to $7.91 per share, way above $1.93 per share in the year-ago period. Earnings were also above the Zacks Consensus Estimate of $7.72 per share.
Quarter in Detail
Product sales more than doubled (137.3% growth) to approximately $7.2 billion driven by the inclusion of sales from hepatitis C virus (HCV) drugs, Sovaldi (launched in the U.S. in Dec 2013 and EU in Jan 2014) and Harvoni (launched in the U.S. in Oct 2014).
Harvoni recorded revenues of $2.1 billion, higher than Sovaldi, which registered sales of $1.7 billion in the fourth quarter of 2014. Sovaldi sales declined approximately 40% sequentially owing to availability of newer HCV therapies.
Antiviral product sales for the quarter registered massive growth of 154.7% to $6.7 billion driven by Sovaldi and Harvoni. Other anti-viral products, such as HIV treatments Complera/Eviplera (up 32.8% to $348 million) and Stribild (up 88.7% to $385 million) performed very well. Sales of older HIV drugs like Truvada (up 10.2% to $897 million) and Viread (up 16.5% to $311 million) were also impressive. However, Atripla sales declined 0.9% to $925 million.
Other products including Letairis, Ranexa and AmBisome recorded sales of $181 million (up 30.2%), $144 million (up 10.8%) and $104 million (up 10.6%), respectively. Newly launched Zydelig also performed well, recording revenues of $17 million.
Research & development (R&D) expenses (including stock-based compensation expenses) climbed 73.8% to $940 million in the fourth quarter of 2014 due to increased investment in pipeline. Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses) increased 65.9% to $851 million. SG&A expenses shot up primarily due to a non-tax deductible cumulative catch-up fee of $460 million associated with final regulations in the Affordable Care Act. Costs associated with the marketing of Sovaldi and Harvoni also pushed up SG&A expenses.
2015 Guidance
Gilead expects product sales in the range of $26-$27 billion, above the $24.9 billion recorded in 2014. The Zacks Consensus Estimate of $28.8 billion is above the guidance range.
Adjusted product gross margin for 2015 is projected in the range of 87-92%. R&D expenses (excluding stock-based compensation expenses and other special items) are projected in the range of $3-$3.3 billion, well over 2014 levels. The increase reflects Gilead's efforts to develop its pipeline. SG&A expenses are also projected in the range of $3-$3.3 billion, well above the 2014 figure.
Meanwhile, the company announced the initiation of a dividend program under which the company plans to make quarterly dividend payments of 43 cents per share, starting from the second quarter of 2015.
Additionally, the company approved the repurchase of up to an additional $15 billion of the company's common stock. The company already has a repurchase program in place, which was authorized in May 2014. As of Dec 31, 2014, approximately $3 billion remained in the program. The company plans to carry out the $15 billion repurchase program within five years after the completion of the May 2014 program.
Our Take
Gilead posted strong fourth-quarter results with both earnings and revenues beating our expectations. We are nevertheless concerned about additional pricing measures to reduce HCV spending in the form of rebates and discounts which could lead to a slowdown in Harvoni sales in 2015. The company's 2015 revenue guidance came in below our expectations. The stock was down in early trading. We note that several companies including AbbVie Inc. ( ABBV ) have launched their HCV treatments in the market.
We are pleased with the company's dividend and repurchase program, which should increase shareholder return. Going forward, we expect investor focus to remain on the ramp up of Harvoni.
Gilead currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care space include Alnylam Pharmaceuticals, Inc. ( ALNY ) and Affymax, Inc. ( AFFY ). Both stocks hold 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. | We note that several companies including AbbVie Inc. ( ABBV ) have launched their HCV treatments in the market. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 's ( GILD ) fourth-quarter earnings (including stock-based compensation expenses) of $2.38 per share surpassed the Zacks Consensus Estimate of $2.27. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): 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. 's ( GILD ) fourth-quarter earnings (including stock-based compensation expenses) of $2.38 per share surpassed the Zacks Consensus Estimate of $2.27. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): 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. Harvoni recorded revenues of $2.1 billion, higher than Sovaldi, which registered sales of $1.7 billion in the fourth quarter of 2014. | We note that several companies including AbbVie Inc. ( ABBV ) have launched their HCV treatments in the market. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Research & development (R&D) expenses (including stock-based compensation expenses) climbed 73.8% to $940 million in the fourth quarter of 2014 due to increased investment in pipeline. |
27077.0 | 2015-02-04 00:00:00 UTC | Amgen Reveals Positive Results on Biosimilar Candidate - Analyst Blog | ABBV | https://www.nasdaq.com/articles/amgen-reveals-positive-results-on-biosimilar-candidate-analyst-blog-2015-02-04 | nan | nan | Amgen Inc. ( AMGN ) announced encouraging results from a phase III study on its biosimilar candidate ABP 501. The study is evaluating the efficacy and safety of ABP 501 in comparison to AbbVie Inc.'s ( ABBV ) Humira in adults suffering from moderate-to-severe plaque psoriasis.
Results revealed that ACR20 measurements were within the pre-specified margin for ABP 501 at week 24 as compared to Humira. Also the safety and immunogenicity of ABP 501 were comparable to that of Humira.
ABP 501 is being developed as a biosimilar to Humira. Humira is approved in a number of countries for the treatment of several inflammatory diseases including rheumatoid arthritis, plaque psoriasis, polyarticular juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease and ulcerative colitis.
Our Take
We are encouraged by the positive results of ABP 501. If approved, the candidate may eat into a significant portion of Humira sales. AbbVie recorded Humira sales of $6.5 billion for the full year 2014.
Amgen currently has nine biosimilar candidates in its portfolio representing huge commercial opportunity. The company plans to launch its first biosimilar in 2017 followed by four others through 2019. The company plans to reveal data from a phase III study on its biosimilar version of Roche's ( RHHBY ) Avastin in the second half of 2015.
Meanwhile, Amgen itself is expected to face biosimilar competition in the U.S. for its branded product Neupogen which may affect its top-line results.
Amgen is a Zacks Rank #2 (Buy) stock. AMAG Pharmaceuticals, Inc. ( AMAG ) is another equally well-ranked stock in the biotech sector.
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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 study is evaluating the efficacy and safety of ABP 501 in comparison to AbbVie Inc.'s ( ABBV ) Humira in adults suffering from moderate-to-severe plaque psoriasis. AbbVie recorded Humira sales of $6.5 billion for the full year 2014. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The study is evaluating the efficacy and safety of ABP 501 in comparison to AbbVie Inc.'s ( ABBV ) Humira in adults suffering from moderate-to-severe plaque psoriasis. AbbVie recorded Humira sales of $6.5 billion for the full year 2014. | Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The study is evaluating the efficacy and safety of ABP 501 in comparison to AbbVie Inc.'s ( ABBV ) Humira in adults suffering from moderate-to-severe plaque psoriasis. AbbVie recorded Humira sales of $6.5 billion for the full year 2014. | The study is evaluating the efficacy and safety of ABP 501 in comparison to AbbVie Inc.'s ( ABBV ) Humira in adults suffering from moderate-to-severe plaque psoriasis. AbbVie recorded Humira sales of $6.5 billion for the full year 2014. Click to get this free report AMGEN INC (AMGN): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27078.0 | 2015-02-04 00:00:00 UTC | Health Care Sector Update for 02/04/2015: ACHN,MRK,GILD,ABBV,CTRV,PACB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-02042015-achnmrkgildabbvctrvpacb-2015-02-04 | nan | nan | Top Health Care Stocks
JNJ -1.28%
PFE +0.85%
ABT -1.57%
MRK -3.22%
AMGN -0.47%
Health care stocks were mostly lower today with the NYSE Health Care Sector Index declining about 0.5% and shares of health care companies in the S&P 500 falling about 1.4% as a group.
In company news, Achillion ( ACHN ) and other hepatitis C drug-maker tumbled Wednesday after Merck & Co. ( MRK ) said U.S. regulators last week notified it they are planning to rescind breakthrough-therapy designation for the company's grazoprevir/elbasvir combination therapy for chronic HCV infection.
The upcoming move by the U.S. Food and Drug Administration follows reports late yesterday that Gilead Sciences told analysts and investors participating on a conference call it will be offering steeper-than-expected discounts on its hepatitis C drugs to health insurers and other group payers.
ACHN shares were down over 17% at $12.03 each shortly before the closing bell, only recovering slightly from a session low of $11.65 a share.
MRK was down nearly 3% in late trade at $59.32 a share while GILD shares slid almost 8% at $99.03 each. Shares of Abbvie ( ABBV ), another health care firm that developed a HCV medication, was down more than 7% at $57.26 near Wednesday's close.
In other sector news,
(+) CTRV, Together with Chimerix ( CMRX ), receives patent extension for its CMX157 antiviral drug, which CTRV is developing to treat hepatitis B virus.
(-) PACB, Q4 net loss of $0.26 per share is $0.01 wider than analyst expectations. Revenue climbs 85.7% year over year to $16.9 mln, topping consensus by $2.01 mln.
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. | Shares of Abbvie ( ABBV ), another health care firm that developed a HCV medication, was down more than 7% at $57.26 near Wednesday's close. In company news, Achillion ( ACHN ) and other hepatitis C drug-maker tumbled Wednesday after Merck & Co. ( MRK ) said U.S. regulators last week notified it they are planning to rescind breakthrough-therapy designation for the company's grazoprevir/elbasvir combination therapy for chronic HCV infection. The upcoming move by the U.S. Food and Drug Administration follows reports late yesterday that Gilead Sciences told analysts and investors participating on a conference call it will be offering steeper-than-expected discounts on its hepatitis C drugs to health insurers and other group payers. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shares of Abbvie ( ABBV ), another health care firm that developed a HCV medication, was down more than 7% at $57.26 near Wednesday's close. Top Health Care Stocks | Shares of Abbvie ( ABBV ), another health care firm that developed a HCV medication, was down more than 7% at $57.26 near Wednesday's close. Health care stocks were mostly lower today with the NYSE Health Care Sector Index declining about 0.5% and shares of health care companies in the S&P 500 falling about 1.4% as a group. The upcoming move by the U.S. Food and Drug Administration follows reports late yesterday that Gilead Sciences told analysts and investors participating on a conference call it will be offering steeper-than-expected discounts on its hepatitis C drugs to health insurers and other group payers. | Shares of Abbvie ( ABBV ), another health care firm that developed a HCV medication, was down more than 7% at $57.26 near Wednesday's close. Top Health Care Stocks ACHN shares were down over 17% at $12.03 each shortly before the closing bell, only recovering slightly from a session low of $11.65 a share. |
27079.0 | 2015-02-04 00:00:00 UTC | Merck & Co., Inc. Earnings: 1 Sentence That Changed Everything | ABBV | https://www.nasdaq.com/articles/merck-co-inc-earnings-1-sentence-changed-everything-2015-02-04 | nan | nan | Source: Flickr user ZEISS Microscopy.
Put plainly, Wall Street and investors aren't too happy with pharmaceutical giant Merck after the company reported its fourth-quarter earnings results before the opening bell.
Merck's top-line takes a beating
For the quarter, Merck watched as its total revenue slumped 7% to $10.48 billion from $11.32 billion in Q4 2013. At fault was a 3% decline caused by negative currency translation (i.e., the effects from a stronger U.S. dollar) and a 4% reduction in sales tied to tougher competition and the expectation of patent exclusivity losses .
Source: Merck & Co.,
Weakness came from a number of areas within its pharmaceutical product portfolio, where sales slipped 4%. Including the negative effects of currency translation, cholesterol drug Zetia/Vytorin had sales dip by 10% or $120 million year-over-year in Q4, Remicade sales sank 10% to $557 million during the quarter, and Nasonex sales tumbled 18% to $268 million.
Bright spots included a 7% rebound in Singulair revenue to $319 million in spite of the drug being off patent, a 34% increase in Proquad, M-MRII and Varivax revenue, and a 2% increase in DPP-4 inhibitor Januvia/Janumet to $1.65 billion. It remains Merck's best-selling drug and was responsible for nearly 16% of its sales this past quarter.
Profit for the quarter came in at an adjusted $0.87 per share, which was down slightly from the $0.88 per share in adjusted EPS reported last year. Comparably, Wall Street was expecting Merck to deliver a profit of $0.86 per share on $10.47 billion in revenue, according to S&P Capital IQ .
One sentence that changed everything
Despite these rather ho-hum results that Wall Street was pretty much expecting, it was one sentence buried within Merck's earnings report that told you everything you needed to know about where its share price was likely headed today.
The sentence in question reads: "On Jan. 30, 2015, the company received notification from the FDA of its intent to rescind the Breakthrough Therapy Designation status for this combination treatment regimen [MK-5172/MK-8742 for hepatitis C], citing the availability of other recently approved treatments for Genotype 1 patients."
Source: Merck & Co.,
The hepatitis C market is huge -- potentially a $20 billion per year industry. Globally there are approximately 180 million people with this disease, including some 3.2 million in the United States per the Centers for Disease Control and Prevention. Merck wants a piece of that pie along with a number of other drug developers. Unfortunately, the Food and Drug Administration may have made their task just a bit more arduous.
Even though Merck announced that its plans to file for a new drug application in the first-half of this year for its HCV combo therapy MK-5172/MK-8742 remains unchanged, losing the breakthrough designation could mean a standard review instead of a priority review, as well as losing any chance of a rolling application while extensive later-stage studies are ongoing. In other words, it means Merck shareholders have to sit on their hands just a little bit longer before this HCV combo has a shot at finding its way onto pharmacy shelves.
That may look like potentially bad news on the surface with Gilead Sciences ' Sovaldi and Harvoni, and AbbVie 's Viekira Pak already approved and racking up huge sales totals. Keep in mind, though, that even after a full year, Gilead managed to treat less than 150,000 people, so there's more than enough opportunity for a couple of drug developers in the HCV space, including Merck. There could still be plenty of opportunity if Merck's combo is approved.
Merck's "green shoots"
To pull from an adopted phrase that sprouted up shortly after the Great Recession, Merck also exhibited a number of green shoots which lend hope for the future.
Source: Merck & Co.,
Topping that list was its announcement that an estimated 2,000 patients were receiving Keytruda, the company's breakthrough designated cancer immunotherapy that was approved as a last line of defense for certain types of metastatic melanoma in September. The anti-PD-1 therapy wound up generating $50 million in its first quarter on the market and is currently being studied in about 30 other cancers and 20 additional combination settings. I'd suggest the chances of Keytruda finding success in other cancer types is pretty good, and most Wall Street analysts expect Keytruda to achieve blockbuster status.
Merck also witnessed a number of key FDA approvals in 2014 beyond just Keytruda. Belsomra was approved for the treatment of insomnia and Zerbaxa as a treatment for Gram-positive bacteria in the hospital setting. Zerbaxa was a part of Cubist Pharmaceuticals' hospital care portfolio, but Merck announced its acquisition of Cubist late last year. Add in Merck's acquisition of Idenix Pharmaceuticals along with the potential to combine a handful of in-house compounds with Idenix's HCV portfolio, and it's possible Merck could have a nice array of fresh revenue sources soon enough.
For now things look bleak
In spite of these green shoots, things aren't looking great for 2015. Merck's guidance calls for between $38.3 billion and $39.8 billion in full-year revenue, inclusive of a $2.6 billion negative impact from foreign currency translation and around a $1 billion hit from acquisitions and divestitures. Adjusted EPS is expected to be in the range of $3.32 to $3.47. All told, these figures represent a notable drop-off from the $42.2 billion in revenue and $3.49 in EPS the company just reported for the full year. They also happen to be below Wall Street's forecast.
My personal opinion is that investors, for the time being, are giving Merck a pass on its weak results in lieu of Keytruda's approval and the company's integration of Idenix and Cubist. However, I don't anticipate that shareholders will remain patient for long. By 2016 they're going to want to see definitive results, including an end to the revenue slide caused by increasing competition and patent exclusivity losses. I continue to believe investors' best bet is to watch this pharma giant from the sidelines until we see a concrete change in the direction of its sales (and I don't mean just based on currency moves).
As for this year, I'd focus your attention less on Merck's desire to get its HCV combo approved and more on Keytruda and how it performs in a plethora of early and midstage trials.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Merck & Co., Inc. Earnings: 1 Sentence That Changed Everything 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That may look like potentially bad news on the surface with Gilead Sciences ' Sovaldi and Harvoni, and AbbVie 's Viekira Pak already approved and racking up huge sales totals. At fault was a 3% decline caused by negative currency translation (i.e., the effects from a stronger U.S. dollar) and a 4% reduction in sales tied to tougher competition and the expectation of patent exclusivity losses . Source: Merck & Co., Topping that list was its announcement that an estimated 2,000 patients were receiving Keytruda, the company's breakthrough designated cancer immunotherapy that was approved as a last line of defense for certain types of metastatic melanoma in September. | That may look like potentially bad news on the surface with Gilead Sciences ' Sovaldi and Harvoni, and AbbVie 's Viekira Pak already approved and racking up huge sales totals. Put plainly, Wall Street and investors aren't too happy with pharmaceutical giant Merck after the company reported its fourth-quarter earnings results before the opening bell. Source: Merck & Co., The hepatitis C market is huge -- potentially a $20 billion per year industry. | That may look like potentially bad news on the surface with Gilead Sciences ' Sovaldi and Harvoni, and AbbVie 's Viekira Pak already approved and racking up huge sales totals. Merck's top-line takes a beating For the quarter, Merck watched as its total revenue slumped 7% to $10.48 billion from $11.32 billion in Q4 2013. Add in Merck's acquisition of Idenix Pharmaceuticals along with the potential to combine a handful of in-house compounds with Idenix's HCV portfolio, and it's possible Merck could have a nice array of fresh revenue sources soon enough. | That may look like potentially bad news on the surface with Gilead Sciences ' Sovaldi and Harvoni, and AbbVie 's Viekira Pak already approved and racking up huge sales totals. Including the negative effects of currency translation, cholesterol drug Zetia/Vytorin had sales dip by 10% or $120 million year-over-year in Q4, Remicade sales sank 10% to $557 million during the quarter, and Nasonex sales tumbled 18% to $268 million. Merck also witnessed a number of key FDA approvals in 2014 beyond just Keytruda. |
27080.0 | 2015-02-04 00:00:00 UTC | Notable Two Hundred Day Moving Average Cross - ABBV | ABBV | https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-abbv-2015-02-04 | nan | nan | In trading on Wednesday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $58.13, changing hands as low as $56.65 per share. AbbVie Inc. shares are currently trading down about 7% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $45.50 per share, with $70.76 as the 52 week high point - that compares with a last trade of $57.11.
According to the ETF Finder at ETF Channel, ABBV makes up 8.57% of the First Trust US IPO Index Fund ETF (Symbol: FPX) which is trading lower by about 0.4% on the day Wednesday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $58.13, changing hands as low as $56.65 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $45.50 per share, with $70.76 as the 52 week high point - that compares with a last trade of $57.11. AbbVie Inc. shares are currently trading down about 7% on the day. | In trading on Wednesday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $58.13, changing hands as low as $56.65 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $45.50 per share, with $70.76 as the 52 week high point - that compares with a last trade of $57.11. AbbVie Inc. shares are currently trading down about 7% on the day. | In trading on Wednesday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $58.13, changing hands as low as $56.65 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $45.50 per share, with $70.76 as the 52 week high point - that compares with a last trade of $57.11. AbbVie Inc. shares are currently trading down about 7% on the day. | In trading on Wednesday, shares of AbbVie Inc. (Symbol: ABBV) crossed below their 200 day moving average of $58.13, changing hands as low as $56.65 per share. According to the ETF Finder at ETF Channel, ABBV makes up 8.57% of the First Trust US IPO Index Fund ETF (Symbol: FPX) which is trading lower by about 0.4% on the day Wednesday. AbbVie Inc. shares are currently trading down about 7% on the day. |
27081.0 | 2015-02-04 00:00:00 UTC | Surprise! Gilead Sciences Inc. to Pay a Dividend | ABBV | https://www.nasdaq.com/articles/surprise-gilead-sciences-inc-pay-dividend-2015-02-04 | nan | nan | Gilead Sciences reported a better than expected fourth-quarter earnings report yesterday. But the real surprise was the company's decision to starting paying a dividend starting in the second quarter of 2015.
According to CFO Robin Washington's comments on the conference call, Gilead will pay an annual dividend of $1.72 per share ($0.43 on a quarterly basis), which translates into roughly $2.6 billion in yearly payouts, based on the biotech's current share count.
In a nutshell, the market has failed to buy into Gilead's growth story, presumably over fears stemming from Viekira Pak's launch and the pushback from payers over the cost of Gilead's hep C drugs Sovaldi and Harvoni.
Now that these headwinds appear to be resolved for the most part, I think management is attempting to unlock the company's latent value by growing its shareholder base. A dividend should broaden the shareholder community by intriguing income-oriented investors.
Perhaps most importantly, these types of investors tend to take a longer term view of the markets, which could help to dampen down the biotech's recent volatility in share price. As the chart below illustrates, Gilead's shares have been on an absolute roller coaster ride compared to the broader biotech industry:
A dividend should thus be a good thing for Gilead moving forward -- a savvy decision on management's part and a good use of the company's rising free cash flows.
A dividend may mark the end of an era for Gilead
Gilead's monstrous growth under CEO John Martin has been driven primarily by a suite of acquisitions that have helped to greatly diversify the company's drug portfolio. Indeed, it was the $11.2 billion buyout of Pharmasset in 2011 that gave rise to Gilead's hep C franchise in the first place.
Simply put, John has frequently used the company's free cash to pursue the acquisition of potentially game-changing new drugs, with some of the most important deals soaring into the multi-billion dollar range.
Gilead might not be so keen to engage in high dollar acquisitions moving forward, and instead, may focus on smaller deals like its recent buyout of Phenex Pharmaceuticals for a reported $470 million. The problem is that management is essentially earmarking about 20% of revenues for shareholder rewards over the next five years (dividends and buybacks).
So unless management wants to dip into its $11.7 billion in cash and cash equivalents, we probably won't see this top biotech make a huge splash on the M&A scene soon. Then again, biotech valuations are presently at such inflated levels that this may not be a bad thing.
Is Gilead a buy on the back of this surprising news?
I've thought that Gilead has been a great pickup for several quarters now , as it appears set to continue its evolution into one of the biggest drugmakers in the world. So this dividend news only peaks my interest all that much more.
Given Gilead's rock-solid cash flows, a bevy of significant shareholder rewards now in place, and the best hep C franchise in the game, investors may want to take a good long look at this premium name in the healthcare sector.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Surprise! Gilead Sciences Inc. to Pay a Dividend originally appeared on Fool.com.
George Budwell owns shares of AbbVie and Gilead Sciences. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | George Budwell owns shares of AbbVie and Gilead Sciences. Simply put, John has frequently used the company's free cash to pursue the acquisition of potentially game-changing new drugs, with some of the most important deals soaring into the multi-billion dollar range. Gilead might not be so keen to engage in high dollar acquisitions moving forward, and instead, may focus on smaller deals like its recent buyout of Phenex Pharmaceuticals for a reported $470 million. | George Budwell owns shares of AbbVie and Gilead Sciences. But the real surprise was the company's decision to starting paying a dividend starting in the second quarter of 2015. As the chart below illustrates, Gilead's shares have been on an absolute roller coaster ride compared to the broader biotech industry: A dividend should thus be a good thing for Gilead moving forward -- a savvy decision on management's part and a good use of the company's rising free cash flows. | George Budwell owns shares of AbbVie and Gilead Sciences. According to CFO Robin Washington's comments on the conference call, Gilead will pay an annual dividend of $1.72 per share ($0.43 on a quarterly basis), which translates into roughly $2.6 billion in yearly payouts, based on the biotech's current share count. As the chart below illustrates, Gilead's shares have been on an absolute roller coaster ride compared to the broader biotech industry: A dividend should thus be a good thing for Gilead moving forward -- a savvy decision on management's part and a good use of the company's rising free cash flows. | George Budwell owns shares of AbbVie and Gilead Sciences. Is Gilead a buy on the back of this surprising news? Gilead Sciences Inc. to Pay a Dividend originally appeared on Fool.com. |
27082.0 | 2015-02-03 00:00:00 UTC | What's Behind Gilead Sciences' Strong Q4 but Weak 2015 Outlook? | ABBV | https://www.nasdaq.com/articles/whats-behind-gilead-sciences-strong-q4-weak-2015-outlook-2015-02-03 | nan | nan | Investors anxiously awaiting Gilead Sciences ' fourth-quarter financial results can now take a deep breath. The biotech announced those results after the market close on Tuesday. Gilead's shares initially climbed slightly in after-hours trading but then fell by 5%. Here are the key details from Gilead's fourth quarter and a look further into 2015.
By the numbers
Gilead reported fourth-quarter revenue of $7.3 billion, a whopping 135% year-over-year increase from the $3.1 billion in revenue from the same period in 2013. This figure easily beat the average analysts' estimate of $6.72 billion. Full-year revenue for 2014 came in at $24.9 billion, compared with $11.2 billion in the previous year.
GAAP fourth-quarter earnings were $3.5 billion, or $2.18 per diluted share -- a huge jump over the $791 million, or $0.47 per diluted share, reported for the fourth quarter of 2013. Gilead reported non-GAAP earnings for the quarter of $3.9 billion, or $2.43 per diluted share, compared with $930 million, or $0.55 per diluted share, in the same period last year. This earnings result beat the consensus analyst expectation of $2.22 per share.
For the full year of 2014, Gilead announced GAAP earnings of $12.1 billion, or $7.35 per diluted share, compared with $3.1 billion, or $1.81 per diluted share in the previous year. Non-GAAP earnings for full-year 2014 came in at $13.3 billion, or $8.09 per diluted share, reflecting a large increase from the $3.5 billion, or $2.04 per diluted share, reported for 2013.
Behind the numbers
All eyes were definitely on Gilead's hepatitis C franchise. Harvoni racked up sales of $2.107 billion in the fourth quarter, while Sovaldi generated sales of $1.732 billion. The two drugs combined for $10.283 billion in 2014 and by themselves accounted for most of Gilead's year-over-year revenue growth.
Harvoni.
Gilead also benefited from growth in several of its HIV/AIDS drugs. Stribild and Complera/Eplivera were the big winners, with 88% and 33% year-over-year sales increases, respectively. Truvada and Viread also saw solid growth.
The only bad news on the HIV/AIDS front was a slight decline in sales for Atripla compared with the fourth quarter of 2013. That decrease was expected, though, as Gilead's other drugs take center stage. All of the company's antiviral drugs (excluding Harvoni and Sovalid) combined for fourth-quarter sales of $2.887 billion, compared with $2.502 billion in the same period for 2013.
Many investors might tend to overlook Gilead's other drugs, but they also performed well. Other drugs, including Letairis, Ranexa, and AmBisome, generated sales of $496 million during the fourth quarter, compared with $402 million in the fourth quarter of 2013.
Looking ahead
With Gilead reporting strong results for the fourth quarter, why would shares drop in after-hours trading? The answer lies in the company's outlook for this year.
The biotech projects net product sales of $26 billion to $27 billion. That reflects an increase over the $24.474 in product sales reported for 2014. However, Wall Street was expecting revenue (which includes both product sales and other sources such as royalties) of $28.65 billion. Gilead might have leaned toward a conservative outlook, but investors hoped for stronger growth.
The big challenge is competition. AbbVie kicked off a pricing battle after gaining FDA approval for its hepatitis C drug, Viekira Pak. That move forced Gilead to respond by lowering prices to counteract AbbVie's scoring of an exclusive deal with the nation's largest pharmacy benefits manager, Express Scripts .
Despite the disappointment over a lower-than-desired outlook for 2015, investors do have cause to celebrate, as Gilead announced the initiation of a quarterly dividend program. The company plans to pay a dividend of $0.43 per share, which represents a yield of around 1.6%. Gilead's board also approved a new five-year, $15 billion share-repurchase program.
Some will probably fret about Gilead's forecast for hepatitis C franchise sales growth. Long-term investors, though, will focus on the generally positive business fundamentals for the company, combined with its attractive valuation -- and breathe easy.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article What's Behind Gilead Sciences' Strong Q4 but Weak 2015 Outlook? originally appeared on Fool.com.
Keith Speights owns shares of Express Scripts and Gilead Sciences. The Motley Fool recommends Express Scripts and Gilead Sciences. The Motley Fool owns shares of Express Scripts 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 - 2015 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. | That move forced Gilead to respond by lowering prices to counteract AbbVie's scoring of an exclusive deal with the nation's largest pharmacy benefits manager, Express Scripts . AbbVie kicked off a pricing battle after gaining FDA approval for its hepatitis C drug, Viekira Pak. Long-term investors, though, will focus on the generally positive business fundamentals for the company, combined with its attractive valuation -- and breathe easy. | AbbVie kicked off a pricing battle after gaining FDA approval for its hepatitis C drug, Viekira Pak. That move forced Gilead to respond by lowering prices to counteract AbbVie's scoring of an exclusive deal with the nation's largest pharmacy benefits manager, Express Scripts . Gilead reported non-GAAP earnings for the quarter of $3.9 billion, or $2.43 per diluted share, compared with $930 million, or $0.55 per diluted share, in the same period last year. | AbbVie kicked off a pricing battle after gaining FDA approval for its hepatitis C drug, Viekira Pak. That move forced Gilead to respond by lowering prices to counteract AbbVie's scoring of an exclusive deal with the nation's largest pharmacy benefits manager, Express Scripts . Gilead reported non-GAAP earnings for the quarter of $3.9 billion, or $2.43 per diluted share, compared with $930 million, or $0.55 per diluted share, in the same period last year. | AbbVie kicked off a pricing battle after gaining FDA approval for its hepatitis C drug, Viekira Pak. That move forced Gilead to respond by lowering prices to counteract AbbVie's scoring of an exclusive deal with the nation's largest pharmacy benefits manager, Express Scripts . Harvoni racked up sales of $2.107 billion in the fourth quarter, while Sovaldi generated sales of $1.732 billion. |
27083.0 | 2015-02-03 00:00:00 UTC | IYH, GILD, AMGN, ABBV: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/iyh-gild-amgn-abbv-etf-outflow-alert-2015-02-03 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $81.0 million dollar outflow -- that's a 3.8% decrease week over week (from 14,350,000 to 13,800,000). Among the largest underlying components of IYH, in trading today Gilead Sciences, Inc. (Symbol: GILD) is off about 0.7%, Amgen Inc (Symbol: AMGN) is off about 0.7%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average:
Looking at the chart above, IYH's low point in its 52 week range is $115.40 per share, with $150.81 as the 52 week high point - that compares with a last trade of $147.14. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IYH, in trading today Gilead Sciences, Inc. (Symbol: GILD) is off about 0.7%, Amgen Inc (Symbol: AMGN) is off about 0.7%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $115.40 per share, with $150.81 as the 52 week high point - that compares with a last trade of $147.14. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IYH, in trading today Gilead Sciences, Inc. (Symbol: GILD) is off about 0.7%, Amgen Inc (Symbol: AMGN) is off about 0.7%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $115.40 per share, with $150.81 as the 52 week high point - that compares with a last trade of $147.14. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IYH, in trading today Gilead Sciences, Inc. (Symbol: GILD) is off about 0.7%, Amgen Inc (Symbol: AMGN) is off about 0.7%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $81.0 million dollar outflow -- that's a 3.8% decrease week over week (from 14,350,000 to 13,800,000). For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $115.40 per share, with $150.81 as the 52 week high point - that compares with a last trade of $147.14. | Among the largest underlying components of IYH, in trading today Gilead Sciences, Inc. (Symbol: GILD) is off about 0.7%, Amgen Inc (Symbol: AMGN) is off about 0.7%, and AbbVie Inc. (Symbol: ABBV) is higher by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $115.40 per share, with $150.81 as the 52 week high point - that compares with a last trade of $147.14. 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). |
27084.0 | 2015-02-03 00:00:00 UTC | Should You Buy AbbVie Inc. Stock on This Dip? | ABBV | https://www.nasdaq.com/articles/should-you-buy-abbvie-inc-stock-dip-2015-02-03 | nan | nan | Shares of the Illinois-based drugmaker AbbVie have slumped in a big way of late, perhaps reflecting the dampened expectations for the company's new hepatitis C therapy Viekira Pak. In fact, shares have now fallen by over 13% from their 52-week high following the high-volume sell-off that accompanied the company's fourth-quarter earnings release, as shown by this chart:
Weaker than expected projections for Viekira Pak going forward appear to have accelerated the stock's decline. Prior to management's recent update, the Street expected sales to top $3 billion in 2015. But the drug's relatively slow uptake compared to other next-generation hep C drugs puts it on track for something closer to $2.5 billion. And the potential launch of Merck 's rival therapy in 2016 could cut deeply into sales next year.
Putting all this doom and gloom aside for the moment, it's important to remember AbbVie has richly rewarded its shareholders, through the market-trouncing performance of its stock, billions in share buybacks, and multiple increases to the dividend, since the company was spun off from Abbott Laboratories in January 2013.
With this in mind, let's consider if this dip represents a compelling buying opportunity, or if it truly is time to hit the exits on this top healthcare stock.
.
AbbVie offers far more than hep C drugs
I think the negative sentiment surrounding AbbVie on account of Viekira Pak not being a true rival to Gilead Sciences ' Harvoni is shortsighted in many ways.
For example, based on the promising outlook for key products like Humira for a host of inflammatory diseases and Duodopa for symptoms associated with Parkinson's disease, AbbVie management is forecasting an astonishing 28% to 34% increase in earnings per share this year. Outside of Gilead and Celgene , you would be hard-pressed to find another large-cap biopharma growing as quickly.
Also, unlike its rapidly growing peers, AbbVie offers a dividend. The drugmaker has one of the highest yields in the healthcare sector (now topping 3.2%), and its rising cash flow suggests this high yield should be stable for the long term. The same can't be said for many other high yielders in healthcare that are facing steep declines in revenue from the ravages of the patent cliff.
What truly sets AbbVie apart from many of its biopharma brethren, though, is its often-overlooked pipeline of more than 40 ongoing clinical trials and multiple potential blockbusters.
AbbVie and partner Biogen Idec , for instance, last year successfully completed late-stage trials for the monoclonal antibody daclizumab as a potential treatment for the relapsing remitting form of multiple sclerosis, meaning a regulatory filing should be close at hand. This single drug is expected to generate upward of $700 million in revenue by 2020 , before eventually reaching blockbuster status.
Then there's the company's host of high-value experimental oncology compounds in late-stage development, as shown below. If ABT-199 can gain a regulatory approval as a treatment for relapsed chronic lymphocytic leukemia, its sales should exceed $2 billion in short order, according to Goldman Sachs.
.
AbbVie's pipeline also holds several additional gems that simply haven't garnered the attention they deserve in light of Viekira's commercial launch and the upcoming patent expiration for Humira.
Is AbbVie a good long-term buy?
After this recent sell-off, AbbVie's shares are now trading at a forward price-to-earnings ratio of 13. That dropoff is way overdone in my book, especially for a Dividend Aristocrat like AbbVie.
With multiple business and clinical catalysts expected over the year, I have a hard time believing this stock will remain at this level much longer. So I'd say this is indeed a good time to pick up some shares.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Should You Buy AbbVie Inc. Stock on This Dip? originally appeared on Fool.com.
George Budwell owns shares of AbbVie and Gilead Sciences. The Motley Fool recommends Celgene and Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | Putting all this doom and gloom aside for the moment, it's important to remember AbbVie has richly rewarded its shareholders, through the market-trouncing performance of its stock, billions in share buybacks, and multiple increases to the dividend, since the company was spun off from Abbott Laboratories in January 2013. AbbVie and partner Biogen Idec , for instance, last year successfully completed late-stage trials for the monoclonal antibody daclizumab as a potential treatment for the relapsing remitting form of multiple sclerosis, meaning a regulatory filing should be close at hand. Shares of the Illinois-based drugmaker AbbVie have slumped in a big way of late, perhaps reflecting the dampened expectations for the company's new hepatitis C therapy Viekira Pak. | What truly sets AbbVie apart from many of its biopharma brethren, though, is its often-overlooked pipeline of more than 40 ongoing clinical trials and multiple potential blockbusters. Shares of the Illinois-based drugmaker AbbVie have slumped in a big way of late, perhaps reflecting the dampened expectations for the company's new hepatitis C therapy Viekira Pak. Putting all this doom and gloom aside for the moment, it's important to remember AbbVie has richly rewarded its shareholders, through the market-trouncing performance of its stock, billions in share buybacks, and multiple increases to the dividend, since the company was spun off from Abbott Laboratories in January 2013. | Shares of the Illinois-based drugmaker AbbVie have slumped in a big way of late, perhaps reflecting the dampened expectations for the company's new hepatitis C therapy Viekira Pak. Putting all this doom and gloom aside for the moment, it's important to remember AbbVie has richly rewarded its shareholders, through the market-trouncing performance of its stock, billions in share buybacks, and multiple increases to the dividend, since the company was spun off from Abbott Laboratories in January 2013. AbbVie offers far more than hep C drugs I think the negative sentiment surrounding AbbVie on account of Viekira Pak not being a true rival to Gilead Sciences ' Harvoni is shortsighted in many ways. | AbbVie offers far more than hep C drugs I think the negative sentiment surrounding AbbVie on account of Viekira Pak not being a true rival to Gilead Sciences ' Harvoni is shortsighted in many ways. Shares of the Illinois-based drugmaker AbbVie have slumped in a big way of late, perhaps reflecting the dampened expectations for the company's new hepatitis C therapy Viekira Pak. Putting all this doom and gloom aside for the moment, it's important to remember AbbVie has richly rewarded its shareholders, through the market-trouncing performance of its stock, billions in share buybacks, and multiple increases to the dividend, since the company was spun off from Abbott Laboratories in January 2013. |
27085.0 | 2015-02-03 00:00:00 UTC | Eli Lilly/Boehringer Type II Diabetes Drug Gains FDA Nod - Analyst Blog | ABBV | https://www.nasdaq.com/articles/eli-lilly-boehringer-type-ii-diabetes-drug-gains-fda-nod-analyst-blog-2015-02-03 | nan | nan | Eli Lilly and Company ( LLY ) and partner Boehringer Ingelheim have gained FDA approval for Glyxambi (Jardiance/Tradjenta) tablets for use as an adjunct to diet and exercise to improve glycemic control in adults with type II diabetes when treatment with both Jardiance and Tradjenta are considered appropriate.
The approval of Glyxambi makes it the first-in-class in the U.S. to combine a sodium glucose co-transporter 2 (SGLT2) inhibitor (Jardiance) with a dipeptidyl peptidase-4 (DPP-4) inhibitor (Tradjenta).
We are encouraged by the FDA approval of Glyxambi. According to information issued by Eli Lilly, an estimated 387 million people across the world suffer from type I or type II diabetes with type II diabetes accounting for about 90% to 95% of all adult diabetes cases in the U.S.
Meanwhile, Eli Lilly is working on strengthening its diabetes franchise. In Dec 2014, Eli Lilly entered into a worldwide licensing agreement with Adocia for the development of an ultra-rapid insulin, BioChaperone Lispro, for the treatment of patients suffering from type I and type II diabetes.
The FDA approval of Glyxambi comes as a major positive for Eli Lilly. Eli Lilly needs to develop new products to make up for the loss of revenues from the genericization of drugs like Cymbalta and Evista among others. The genericization of Cymbalta and Evista affected the company's fourth-quarter revenues.
Eli Lilly is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include AbbVie ( ABBV ), Celgene Corp. ( CELG ) and Impax Laboratories Inc. ( IPXL ). While Celgene and Impax hold a Zacks Rank #1 (Strong Buy), AbbVie carries a Zacks Rank #2(Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the health care sector include AbbVie ( ABBV ), Celgene Corp. ( CELG ) and Impax Laboratories Inc. ( IPXL ). While Celgene and Impax hold a Zacks Rank #1 (Strong Buy), AbbVie carries a Zacks Rank #2(Buy). Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | While Celgene and Impax hold a Zacks Rank #1 (Strong Buy), AbbVie carries a Zacks Rank #2(Buy). Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector include AbbVie ( ABBV ), Celgene Corp. ( CELG ) and Impax Laboratories Inc. ( IPXL ). | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector include AbbVie ( ABBV ), Celgene Corp. ( CELG ) and Impax Laboratories Inc. ( IPXL ). While Celgene and Impax hold a Zacks Rank #1 (Strong Buy), AbbVie carries a Zacks Rank #2(Buy). | Some better-ranked stocks in the health care sector include AbbVie ( ABBV ), Celgene Corp. ( CELG ) and Impax Laboratories Inc. ( IPXL ). While Celgene and Impax hold a Zacks Rank #1 (Strong Buy), AbbVie carries a Zacks Rank #2(Buy). Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27086.0 | 2015-02-03 00:00:00 UTC | Gilead Sciences Beats Q4 Earnings Estimates, GILD Falls on Revenue Outlook - Stocks in the News | ABBV | https://www.nasdaq.com/articles/gilead-sciences-beats-q4-earnings-estimates-gild-falls-revenue-outlook-stocks-news-2015-02 | nan | nan | Gilead Sciences Inc ( GILD ), reaping huge sales from its two controversial hepatitis C drugs, reported fourth-quarter earnings Tuesday that beat analyst estimates.
Net income at the biotech giant more than quadrupled to an adjusted $3.88 billion, or $2.43 per share, compared with $930 million, or 55 cents per share, a year earlier. That beat by 16 cents the $2.27 projected by the Zacks Consensus Estimate.
Revenues rose to $7.31 billion from $3.12 billion a year earlier. Analysts surveyed for the Zacks Consensus Estimate had been expecting revenues of $6.69 billion.
After falling short of Wall Street estimates last quarter, Foster City, California-based Gilead has returned to its impressive growth streak. The introduction of hepatitis C drug Harvoni, an expensive follow-up on the company's frequently discussed Sovaldi, in particular bolstered profits. But investors are turning skeptical about Gilead's ability to maintain these high revenues, as the competition increases and insurance companies demand discounts for patients.
Harvoni Success
Sovaldi, a hepatitis C treatment approved by the FDA in Dec 2013, advertises cure rates of 90 percent. Its price tag, however, has thrust the drug into a national discussion about healthcare affordability. Patients pay $1,000 per pill, which adds up to $84,000 for the 12-week treatment.
Despite the controversy, Gilead has seen enormous growth in the past year. 117,000 people have been treated since the drug's launch, and the massive profits caused Gilead shares to rise 36 percent in 2014.
Tuesday's earnings beat reflected continued interest in the company's hepatitis C products. Harvoni, a new drug treating the same virus, received FDA approval in Oct 2014. The drug is a once-daily single tablet regimen, an improvement on Sovaldi, which is a combination therapy.
But that convenience comes at an even higher price: $1,125 per pill, or $94,000 for the 12-week treatment. Harvoni is offered at different treatment lengths, however, giving customers the option to choose between an 8-week treatment for $63,000 instead.
The high costs of either drug prevented increases in Gilead product sales. Revenue from Sovaldi rose was $1.18 billion in the fourth quarter of 2014 and $8.5 billion for the year. Harvoni brought in $2 billion during its first quarter on the market.
Future Concerns
The strong finish for the year signaled two noteworthy developments for investors. Gilead declared its first quarterly dividend of 43 cents, or $1.72 annually, which will begin in the second quarter of 2015, pending approval. The company will also begin a $15 billion share repurchasing program to be completed within five years.
Guidance for 2015, however, has some investors worried. The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc ( ABBV ) and its much cheaper hepatitis C drug Viekira Pak. The discounts Gilead plans to offer this year will hurt its top line, leading to sales estimate of $26 billion to $27 billion. Analysts were projecting $28.5 billion for revenue (read more: AbbVie (ABBV) Tops 4Q Estimates, Affirms View ).
Doubts about Gilead's ability to maintain its growth through high prices are reflected in its Zacks Rank. The company currently holds a Zacks Rank #4 (Sell), based on margin concerns and its impending price war with AbbVie.
Gilead shares slumped $6.17, or 5.8 percent, to $101.01 in after-hours trading.
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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 high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc ( ABBV ) and its much cheaper hepatitis C drug Viekira Pak. Analysts were projecting $28.5 billion for revenue (read more: AbbVie (ABBV) Tops 4Q Estimates, Affirms View ). The company currently holds a Zacks Rank #4 (Sell), based on margin concerns and its impending price war with AbbVie. | Analysts were projecting $28.5 billion for revenue (read more: AbbVie (ABBV) Tops 4Q Estimates, Affirms View ). Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc ( ABBV ) and its much cheaper hepatitis C drug Viekira Pak. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc ( ABBV ) and its much cheaper hepatitis C drug Viekira Pak. Analysts were projecting $28.5 billion for revenue (read more: AbbVie (ABBV) Tops 4Q Estimates, Affirms View ). | Analysts were projecting $28.5 billion for revenue (read more: AbbVie (ABBV) Tops 4Q Estimates, Affirms View ). The high costs of Sovaldi and Harvoni have intensified competition with AbbVie Inc ( ABBV ) and its much cheaper hepatitis C drug Viekira Pak. The company currently holds a Zacks Rank #4 (Sell), based on margin concerns and its impending price war with AbbVie. |
27087.0 | 2015-02-03 00:00:00 UTC | Roche's Anti-PDL1 Gets Breakthrough Status for Lung Cancer - Analyst Blog | ABBV | https://www.nasdaq.com/articles/roches-anti-pdl1-gets-breakthrough-status-for-lung-cancer-analyst-blog-2015-02-03 | nan | nan | Roche 's ( RHHBY ) subsidiary, Genentech, announced that the FDA has granted Breakthrough Therapy designation to its investigational immunotherapy MPDL3280A (anti-PDL1) for the treatment of PD-L1 positive non-small cell lung cancer (NSCLC) in patients whose disease progressed during or after platinum-based chemotherapy (in addition to an appropriate targeted therapy for those with an EGFR mutation-positive or ALK-positive tumor).
We note that this is the second Breakthrough status obtained by MPDL3280A. In May 2014, the candidate was designated as Breakthrough Therapy for the treatment of metastatic bladder cancer.
Breakthrough Therapy designation is granted to candidates that are being developed for the treatment of serious diseases to expedite the process of development and review so as to ensure quick access to these therapies by patients following their approval.
According to the American Cancer Society, over 221,000 Americans are expected to be diagnosed with lung cancer in 2015. Moreover, NSCLC accounts for 85% of all types of lung cancer.
Roche is developing MPDL3280A as a treatment of the PD-L1 expression in cancer. The company said that while all studies are evaluating MPDL3280A for the PD-L1 expression, some are specifically studying the candidate for tumors characterized as PD-L1 positive. Roche intends to initiate additional phase III studies on MPDL3280A for other types of tumor in 2015.
Meanwhile, AbbVie ( ABBV ) is evaluating its investigational compound, veliparib (in combination with chemotherapy) in four phase III studies for the treatment of previously untreated locally advanced or metastatic squamous NSCLC. Veliparib is also being evaluated for non-squamous NSCLC in a separate study.
Roche carries a Zacks Rank #5 (Sell). Some better-ranked stocks in the health care sector are Impax Laboratories Inc. ( IPXL ) and Teva Pharmaceutical Industries Limited ( TEVA ). While Impax carries a Zacks Rank #1 (Strong Buy), Teva hold 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. | Meanwhile, AbbVie ( ABBV ) is evaluating its investigational compound, veliparib (in combination with chemotherapy) in four phase III studies for the treatment of previously untreated locally advanced or metastatic squamous NSCLC. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Roche 's ( RHHBY ) subsidiary, Genentech, announced that the FDA has granted Breakthrough Therapy designation to its investigational immunotherapy MPDL3280A (anti-PDL1) for the treatment of PD-L1 positive non-small cell lung cancer (NSCLC) in patients whose disease progressed during or after platinum-based chemotherapy (in addition to an appropriate targeted therapy for those with an EGFR mutation-positive or ALK-positive tumor). | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ( ABBV ) is evaluating its investigational compound, veliparib (in combination with chemotherapy) in four phase III studies for the treatment of previously untreated locally advanced or metastatic squamous NSCLC. Roche 's ( RHHBY ) subsidiary, Genentech, announced that the FDA has granted Breakthrough Therapy designation to its investigational immunotherapy MPDL3280A (anti-PDL1) for the treatment of PD-L1 positive non-small cell lung cancer (NSCLC) in patients whose disease progressed during or after platinum-based chemotherapy (in addition to an appropriate targeted therapy for those with an EGFR mutation-positive or ALK-positive tumor). | Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, AbbVie ( ABBV ) is evaluating its investigational compound, veliparib (in combination with chemotherapy) in four phase III studies for the treatment of previously untreated locally advanced or metastatic squamous NSCLC. Roche 's ( RHHBY ) subsidiary, Genentech, announced that the FDA has granted Breakthrough Therapy designation to its investigational immunotherapy MPDL3280A (anti-PDL1) for the treatment of PD-L1 positive non-small cell lung cancer (NSCLC) in patients whose disease progressed during or after platinum-based chemotherapy (in addition to an appropriate targeted therapy for those with an EGFR mutation-positive or ALK-positive tumor). | Meanwhile, AbbVie ( ABBV ) is evaluating its investigational compound, veliparib (in combination with chemotherapy) in four phase III studies for the treatment of previously untreated locally advanced or metastatic squamous NSCLC. Click to get this free report ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Roche 's ( RHHBY ) subsidiary, Genentech, announced that the FDA has granted Breakthrough Therapy designation to its investigational immunotherapy MPDL3280A (anti-PDL1) for the treatment of PD-L1 positive non-small cell lung cancer (NSCLC) in patients whose disease progressed during or after platinum-based chemotherapy (in addition to an appropriate targeted therapy for those with an EGFR mutation-positive or ALK-positive tumor). |
27088.0 | 2015-02-03 00:00:00 UTC | Repros Files for Androxal in the U.S. for Hypogonadism - Analyst Blog | ABBV | https://www.nasdaq.com/articles/repros-files-for-androxal-in-the-u.s.-for-hypogonadism-analyst-blog-2015-02-03 | nan | nan | Repros Therapeutics Inc. ( RPRX ) submitted a New Drug Application (NDA) for its lead candidate Androxal. Repros is looking to get the candidate approved for the treatment of secondary hypogonadism in overweight men wishing to restore normal testicular function.
Towards the end of last year Repros announced the submission of a complete response to the guidance provided by the FDA regarding the expected NDA submission for Androxal. In Nov 2014, Repros had received a detailed guidance regarding the filing of the candidate.
While providing its guidance, the FDA said that no additional studies were required for the NDA filing of Androxal. However, the FDA stated that the company may require additional safety studies, particularly on cardiovascular risks, in the future.
The company expects to submit regulatory application in the EU in the first quarter of 2016. The company is seeking New Chemical Entity status for the product.
AbbVie Inc.'s ( ABBV ) AndroGel is one of the currently available treatments for hypogonadism in the market.
Androxal's success is crucial for Repros as it has no approved product in its portfolio yet. The company has been struggling with higher research and development expenses over the last few quarters. We expect investor focus to stay on the regulatory status of Androxal going forward.
Repros carries a Zacks Rank #2 (Buy). Other favorable stocks in the health care space include Celgene Corp. ( CELG ) and AMAG Pharmaceuticals, Inc. ( AMAG ). While Celgene sports a Zacks Rank #1 (Strong Buy), AMAG carries a Zacks Rank #2.
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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.'s ( ABBV ) AndroGel is one of the currently available treatments for hypogonadism in the market. Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Repros Therapeutics Inc. ( RPRX ) submitted a New Drug Application (NDA) for its lead candidate Androxal. | Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.'s ( ABBV ) AndroGel is one of the currently available treatments for hypogonadism in the market. While Celgene sports a Zacks Rank #1 (Strong Buy), AMAG carries a Zacks Rank #2. | Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.'s ( ABBV ) AndroGel is one of the currently available treatments for hypogonadism in the market. Towards the end of last year Repros announced the submission of a complete response to the guidance provided by the FDA regarding the expected NDA submission for Androxal. | AbbVie Inc.'s ( ABBV ) AndroGel is one of the currently available treatments for hypogonadism in the market. Click to get this free report REPROS THERAPEU (RPRX): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Repros Therapeutics Inc. ( RPRX ) submitted a New Drug Application (NDA) for its lead candidate Androxal. |
27089.0 | 2015-02-02 00:00:00 UTC | Novo Nordisk's Q4 Earnings Rise Y/Y, Provides 2015 Outlook - Analyst Blog | ABBV | https://www.nasdaq.com/articles/novo-nordisks-q4-earnings-rise-y-y-provides-2015-outlook-analyst-blog-2015-02-02 | nan | nan | Novo Nordisk ( NVO ) reported fourth-quarter 2014 earnings of 42 cents per American Depository Receipt (ADR), up 1.7% from the year-ago period. Revenues increased 4.2% year over year to $4.1 billion. The top-line was mainly driven by strong sales of Victoza and modern insulin including Levemir.
All growth rates mentioned below are on a year-over-year and local currency basis.
The Quarter in Detail
Total revenue grew 10% in local currency driven by sales growth in North America (up 11%), international operations (up 20%) and China (10%). Although North America was a major contributor from the geographical perspective, partial loss of reimbursement with a large pharmacy benefit manager in North America and expanded Medicaid and Medicare Part D utilization negatively affected growth.
Novo Nordisk's diabetes care segment recorded sales growth of 9%. Modern insulin generated strong revenues (up 6%) driven by NovoRapid (up 4%) and Levemir (13%) and NovoMix (flat year-over-year). The company's key drug, Victoza, witnessed sales growth of 19%.
Sales in the biopharmaceuticals segment increased 12%. Norditropin's sales were up 10% while NovoSeven's sales increased 9%. Other products witnessed 31% sales growth.
Research and development expenses increased 6% due to diabetes pipeline development. Sales and distribution costs remained flat year over year while administration costs decreased by 2%.
Full Year Results
In 2014, earnings per share increased 7.8% year over year to $1.79 per share. The company generated revenues of $15.8 billion, up 6.4% from the previous year.
2015 Outlook
Novo Nordisk expects sales growth in 2015 in the range of 6%−9%. The company expects strong performance of modern insulin as well as Victoza and Tresiba. New launches like Saxenda and Xultophy are also expected to contribute to the top line.
However, Novo Nordisk expects sales to be affected by increase in rebate levels in the U.S. and intensifying competition in the diabetes and biopharmaceuticals markets coupled with macroeconomic factors in a number of markets in International Operations.
Novo Nordisk expects operating profit growth around 10% in local currencies.
Pipeline Update
Novo Nordisk is working on strengthening its pipeline. In Dec 2014, Novo Nordisk completed the phase IIIb DUAL V study on its diabetes product, Xultophy. Xultophy was launched in Switzerland in Jan 2015 following its approval in Sep 2014.
Novo Nordisk's obesity drug, Saxenda, received FDA approval for the treatment of obesity in Dec 2014. The company is preparing for the U.S. launch of the drug in the first half of 2015. Additionally, Novo Nordisk expects to receive marketing authorization for the product from the European Commission in the March-April timeframe. Notably, the European Medicines Agency's Committee for Medicinal Products for Human Use recommended Saxenda for the treatment of obesity In Jan 2015.
Meanwhile, the company completed patient enrolment in the cardiovascular outcomes study (DEVOTE) on Tresiba and accumulated the required number of major adverse cardiovascular events (MACEs) for conducting a pre-specified interim analysis. The company said that it will decide during the first half of 2015 whether to submit the result of this interim analysis to the FDA or to wait for the completion of the DEVOTE study. The full study is expected to be completed in the second half of 2016.
Additionally, in Dec 2014, Novo Nordisk initiated the sixth and final pivotal study (SUSTAIN 5) in the global phase IIIa program on semaglutide as a treatment for type II diabetes. The study will investigate the efficacy and safety of semaglutide as an add-on to basal insulin compared to placebo.
Our Take
With Victoza, Levemir and Tresiba performing satisfactorily, Novo Nordisk's 2014 performance was encouraging. However, the company faced a tough time sustaining revenue growth owing to generic competition for its oral anti-diabetic drug, Prandin, and challenging rebate and contract environment in the U.S. In 2015, new launches are expected to support top-line growth.
We expect investor focus to remain on updates on the DEVOTE study.
Novo Nordisk carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector are Impax Laboratories Inc. ( IPXL ), AbbVie Inc. ( ABBV ) and Mallinckrodt plc ( MNK ). While Impax holds a Zacks Rank #1 (Strong Buy), AbbVie and Mallinckrodt 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. | Some better-ranked stocks in the health care sector are Impax Laboratories Inc. ( IPXL ), AbbVie Inc. ( ABBV ) and Mallinckrodt plc ( MNK ). While Impax holds a Zacks Rank #1 (Strong Buy), AbbVie and Mallinckrodt carry a Zacks Rank #2 (Buy). Click to get this free report NOVO-NORDISK AS (NVO): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report To read this article on Zacks.com click here. | While Impax holds a Zacks Rank #1 (Strong Buy), AbbVie and Mallinckrodt carry a Zacks Rank #2 (Buy). Click to get this free report NOVO-NORDISK AS (NVO): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector are Impax Laboratories Inc. ( IPXL ), AbbVie Inc. ( ABBV ) and Mallinckrodt plc ( MNK ). | Click to get this free report NOVO-NORDISK AS (NVO): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector are Impax Laboratories Inc. ( IPXL ), AbbVie Inc. ( ABBV ) and Mallinckrodt plc ( MNK ). While Impax holds a Zacks Rank #1 (Strong Buy), AbbVie and Mallinckrodt carry a Zacks Rank #2 (Buy). | Click to get this free report NOVO-NORDISK AS (NVO): Free Stock Analysis Report IMPAX LABORATRS (IPXL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector are Impax Laboratories Inc. ( IPXL ), AbbVie Inc. ( ABBV ) and Mallinckrodt plc ( MNK ). While Impax holds a Zacks Rank #1 (Strong Buy), AbbVie and Mallinckrodt carry a Zacks Rank #2 (Buy). |
27090.0 | 2015-02-02 00:00:00 UTC | Why Gilead Sciences, Inc. Shares Roared Higher By 11% in January | ABBV | https://www.nasdaq.com/articles/why-gilead-sciences-inc-shares-roared-higher-11-january-2015-02-02 | nan | nan | What: Shares of Gilead Sciences , a global pharmaceutical giant focused on developing therapies to fight a number of chronic diseases, roared higher by 11% in January per S&P Capital IQ following the announcement of two key agreements for its hepatitis C drugs, and after announcing an acquisition.
So what: In late December, the worry had been that Gilead Sciences was going to see its oral blockbuster hepatitis C therapy Sovaldi, and its cocktail drug Harvoni, pushed out of pharmacy-benefit management circles because of their exorbitant cost (Sovaldi and Harvoni run $84,000 and $94,500 respectively for a standard 12-week treatment course). Following a multi-year exclusive agreement between PBM Express Scripts and AbbVie over Viekira Pak, AbbVie's hepatitis C combo therapy, it looked as if this fear could be a reality.
Source: Gilead Sciences.
However, last month we witnessed Gilead form pacts with CVS as well as Aetna to offer them attractive pricing on Sovaldi and Harvoni as long as they remained these providers' therapies of choice for hepatitis C. In other words, this went a long way toward alleviating fears that Gilead's hepatitis C products were going to be pushed to the wayside.
Also, Gilead announced in early January that it had acquired Phenex Pharmaceuticals' development program which contains a number of small molecules targeted at liver diseases, including nonalcoholic steatohepatitis, or NASH. NASH affects millions in the U.S. and could be another broad indication possibility for Gilead.
Under the terms of the deal, Gilead paid Phenex an upfront fee and could be on the line for development milestone payments as well. All told, the deal could end up costing Gilead up to $470 million. But, if it winds up netting the company a NASH drug then it could wind up being pennies on the dollar!
Now what: It's looking as if the only thing that can stop Gilead Sciences stock from advancing are the emotions of investors.
A pricing war between Gilead and its peers isn't out of the question, especially if new drugs come to market in the near future, but any worries over declining usage of Sovaldi and Harvoniover the next couple of years have been tamed for the time being.
Lost in all of this is the fact that Gilead also possesses Stribild, a four-in-one next-generation HIV/AIDS compound that could go a long way toward fighting the most deadly infectious disease in the world based on total annual deaths. It's a drug that I believe has the potential to double in sales in 2015 to possibly $2.3 billion. Gilead investor would be wise not to lose track of Stribild, as it's an important piece of the puzzle.
Looking ahead, Gilead is valued at a mere 11 times forward earnings with a growth rate of around 25% . That's pretty cheap in my book and all the more reason that both growth and value investors should consider this stock for their investment portfolio.
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The article Why Gilead Sciences, Inc. Shares Roared Higher By 11% in January 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 Express Scripts and Gilead Sciences. It also recommends CVS Health. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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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. | Following a multi-year exclusive agreement between PBM Express Scripts and AbbVie over Viekira Pak, AbbVie's hepatitis C combo therapy, it looked as if this fear could be a reality. Also, Gilead announced in early January that it had acquired Phenex Pharmaceuticals' development program which contains a number of small molecules targeted at liver diseases, including nonalcoholic steatohepatitis, or NASH. A pricing war between Gilead and its peers isn't out of the question, especially if new drugs come to market in the near future, but any worries over declining usage of Sovaldi and Harvoniover the next couple of years have been tamed for the time being. | Following a multi-year exclusive agreement between PBM Express Scripts and AbbVie over Viekira Pak, AbbVie's hepatitis C combo therapy, it looked as if this fear could be a reality. What: Shares of Gilead Sciences , a global pharmaceutical giant focused on developing therapies to fight a number of chronic diseases, roared higher by 11% in January per S&P Capital IQ following the announcement of two key agreements for its hepatitis C drugs, and after announcing an acquisition. The article Why Gilead Sciences, Inc. Shares Roared Higher By 11% in January originally appeared on Fool.com. | Following a multi-year exclusive agreement between PBM Express Scripts and AbbVie over Viekira Pak, AbbVie's hepatitis C combo therapy, it looked as if this fear could be a reality. What: Shares of Gilead Sciences , a global pharmaceutical giant focused on developing therapies to fight a number of chronic diseases, roared higher by 11% in January per S&P Capital IQ following the announcement of two key agreements for its hepatitis C drugs, and after announcing an acquisition. However, last month we witnessed Gilead form pacts with CVS as well as Aetna to offer them attractive pricing on Sovaldi and Harvoni as long as they remained these providers' therapies of choice for hepatitis C. In other words, this went a long way toward alleviating fears that Gilead's hepatitis C products were going to be pushed to the wayside. | Following a multi-year exclusive agreement between PBM Express Scripts and AbbVie over Viekira Pak, AbbVie's hepatitis C combo therapy, it looked as if this fear could be a reality. However, last month we witnessed Gilead form pacts with CVS as well as Aetna to offer them attractive pricing on Sovaldi and Harvoni as long as they remained these providers' therapies of choice for hepatitis C. In other words, this went a long way toward alleviating fears that Gilead's hepatitis C products were going to be pushed to the wayside. The article Why Gilead Sciences, Inc. Shares Roared Higher By 11% in January originally appeared on Fool.com. |
27091.0 | 2015-02-02 00:00:00 UTC | Will Gilead (GILD) Miss Q4 Earnings on Low HCV Drug Sales? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/will-gilead-gild-miss-q4-earnings-on-low-hcv-drug-sales-analyst-blog-2015-02-02 | nan | nan | Gilead Sciences, Inc. ( GILD ) is set to report fourth-quarter 2014 results on Feb 3 after the market closes. Last quarter, the company delivered a positive earnings surprise of 9.15%. Let's see how things are shaping up for this announcement.
Sovaldi and Harvoni in Focus
Gilead's blockbuster hepatitis C virus (HCV) treatment, Sovaldi, is expected to contribute meaningfully to the company's top line in the fourth quarter, as it has done so since its launch in the U.S. in Dec 2013. According to Gilead, approximately 117,000 patients have been treated with Sovaldi in the U.S. since its launch. Its new HCV drug, Harvoni (approved in Oct 2014) was also received well. Furthermore, Zydelig newly approved in the U.S. for treating three cancer forms - chronic lymphocytic leukemia (CLL), follicular B-cell non-Hodgkin lymphoma and small lymphocytic lymphoma - will also contribute to Gilead's top line.
However, we are concerned about the future of the HCV products given the Express Scripts-AbbVie ( ESRX / ABBV ) deal. Express Scripts has added AbbVie's lower priced Viekira Pak to its formulary, which will be the exclusive option for genotype 1 HCV patients from Jan 1, 2015. Express Scripts' decision to choose lower-priced Viekira Pak over other expensive HCV drugs has triggered concerns about pricing pressure on Sovaldi and Harvoni.
Meanwhile, for Sovaldi and Harvoni, Gilead has entered into agreements with other pharmacy benefit managers and health care benefit companies including Aetna which will result in lower pricing for the HCV drugs for Aetna customers.
At the time of releasing third-quarter results, Gilead raised the low end of its net product sales guidance. The company expects net product sales in the range of $22 billion to $23 billion.
We believe that investor focus will remain on updates on the performance of Sovaldi, Harvoni and Zydelig. Investors are also looking forward to the company's outlook for 2015, which is expected to be revealed along with the earnings release.
Earnings Whispers?
Our proven model does not conclusively show that Gilead is likely to beat the Zacks Consensus Estimate in the fourth quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. Unfortunately, this is not the case here, as elaborated below.
Negative Zacks ESP: Earnings ESP for Gilead is -3.97%. This is because the Most Accurate estimate stands at $2.18 while the Zacks Consensus Estimate is higher at $2.27.
Zacks Rank: Gilead's Zacks Rank #4 (Sell) decreases the predictive power of the earnings ESP. This when combined with a negative ESP makes an earnings beat difficult.
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.
Actavis ( ACT ) has an earnings ESP of +4.38% and carries a Zacks Rank #3. It is expected to report fourth-quarter results on Feb 18.
Acorda Therapeutics, Inc. ( ACOR ) has an Earnings ESP of +106.67% and a Zacks Rank #3. The company is expected to release results on Feb 12.
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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. | Express Scripts has added AbbVie's lower priced Viekira Pak to its formulary, which will be the exclusive option for genotype 1 HCV patients from Jan 1, 2015. However, we are concerned about the future of the HCV products given the Express Scripts-AbbVie ( ESRX / ABBV ) deal. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ACORDA THERAPT (ACOR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ACORDA THERAPT (ACOR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. However, we are concerned about the future of the HCV products given the Express Scripts-AbbVie ( ESRX / ABBV ) deal. Express Scripts has added AbbVie's lower priced Viekira Pak to its formulary, which will be the exclusive option for genotype 1 HCV patients from Jan 1, 2015. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ACORDA THERAPT (ACOR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. However, we are concerned about the future of the HCV products given the Express Scripts-AbbVie ( ESRX / ABBV ) deal. Express Scripts has added AbbVie's lower priced Viekira Pak to its formulary, which will be the exclusive option for genotype 1 HCV patients from Jan 1, 2015. | However, we are concerned about the future of the HCV products given the Express Scripts-AbbVie ( ESRX / ABBV ) deal. Express Scripts has added AbbVie's lower priced Viekira Pak to its formulary, which will be the exclusive option for genotype 1 HCV patients from Jan 1, 2015. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report ACORDA THERAPT (ACOR): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. |
27092.0 | 2015-02-01 00:00:00 UTC | Can Biotech Duplicate Its 2014 Performance, or Is It Time to Jump Ship? | ABBV | https://www.nasdaq.com/articles/can-biotech-duplicate-its-2014-performance-or-it-time-jump-ship-2015-02-01 | nan | nan | Although biotech stocks as a whole handily outpaced the S&P 500 returns last year, there's no guarantee that investors will be similarly rewarded this year. To get insight into whether biotech stocks can continue climbing, we asked three top Motley Fool contributors to give us their opinion. Read on to learn what they think.
: Bringing a new drug to market not only costs big bucks (a staggering $5 billion , according to Forbes ), but only one in 1,000 drugs makes it to human testing, and less than 20% of those are ever approved for human use. This dynamic makes high drug pricing extremely important to biotech investors.
The recent deal between Express Scripts and AbbVie to exclude Gilead Science 's pricey hep-C treatments set the stage for a potentially serious pricing war in biotech stocks. Gilead's shares slumped 14.3% on the news, and the company lost an astounding $24 billion in market capitalization.
Although Gilead recovered, playing hardball against high drug pricing is rapidly expanding. When asked what's next on his chopping block, Express Scripts CEO George Paz , speaking at the JP Morgan Healthcare Conference, said forthcoming bad-cholesterol meds (PCSK9 inhibitors) are "the short term, and cancer is a long term."
Biotechs are the stock market darlings for now. But if profit margins end up significantly lower than many anticipate this year, they could quickly fall out of favor. Bottom line: This sector is anything but crash-proof in 2015.
: Cheryl's point regarding the risk of pricing pressure shouldn't be ignored, but I believe that those price risks will be more than offset by rising demand.
For example, Gilead Sciences and AbbVie will undoubtedly get paid less this year for their hepatitis C drugs than they would've gotten paid last year, but total script volume is likely to jump. In 2014, sky-high prices forced healthcare payers to ration access to Gilead Sciences' Sovaldi, but new exclusivity deals are likely to reduce the need for that kind of behavior. If so, thousands more patients with less advanced stages of the disease could be treated, and that could mean that overall revenue and profit at these companies heads higher, not lower. If I'm right, then investors may end up focusing more on that growth than on shrinking, but still healthy, margins.
I also think that biotech stocks could repeat their winning ways this year because of significant pipeline news flow. Biotech stocks tend to trade up or down more on tomorrow's potential than today's profit, and that may suggest that the significant influx of capital into the industry over the past three years -- and the corresponding surge in clinical-stage drugs in biotech pipelines -- could translate into a steady stream of trial data that keeps investors interested in owning stocks in the industry.
George Budwell : Biotech stocks trade perhaps as much on optimism as anything else. And while the push-back from payers may dampen expectations this year, as Cheryl aptly notes, I think the commercial launch of several game-changing new classes of drugs, over the next year or so, should help to keep investors excited about the industry going forward.
On the cancer front, for instance, Bristol-Myers Squibb and Merck are both in the process of bringing a powerful new type of immunotherapy to the market, namely "PD-1 inhibitors." Although the initial regulatory filings for Bristol and Merck's respective drugs aren't exactly blockbuster material, they are expected to eventually generate revenues in the multibillion-dollar range, as their clinical testing for other types of cancers progresses.
And then there's the host of new PCSK9-inhibitors, coming down the pike from the likes of Amgen , Pfizer , and Sanofi . These next-gen cholesterol drugs are not only showing impressive results in terms of lowering bad cholesterol levels, but they're also exhibiting improvements in heart disease outcomes. If this trend holds to the final data readouts in the ongoing late-stage trials, these drugs could post monstrous sales numbers.
With the industry going through an unprecedented innovation boom, I think biotech will ultimately shrug off the pricing pressure issue and push higher in 2015.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Can Biotech Duplicate Its 2014 Performance, or Is It Time to Jump Ship? originally appeared on Fool.com.
Cheryl Swanson and Todd Campbell own shares of Gilead Sciences.George Budwell owns shares of AbbVie and Gilead Sciences. The Motley Fool recommends Express Scripts and Gilead Sciences. The Motley Fool owns shares of Express Scripts, Gilead Sciences, and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days . We Fools don't 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 - 2015 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 recent deal between Express Scripts and AbbVie to exclude Gilead Science 's pricey hep-C treatments set the stage for a potentially serious pricing war in biotech stocks. For example, Gilead Sciences and AbbVie will undoubtedly get paid less this year for their hepatitis C drugs than they would've gotten paid last year, but total script volume is likely to jump. Cheryl Swanson and Todd Campbell own shares of Gilead Sciences.George Budwell owns shares of AbbVie and Gilead Sciences. | Cheryl Swanson and Todd Campbell own shares of Gilead Sciences.George Budwell owns shares of AbbVie and Gilead Sciences. The recent deal between Express Scripts and AbbVie to exclude Gilead Science 's pricey hep-C treatments set the stage for a potentially serious pricing war in biotech stocks. For example, Gilead Sciences and AbbVie will undoubtedly get paid less this year for their hepatitis C drugs than they would've gotten paid last year, but total script volume is likely to jump. | The recent deal between Express Scripts and AbbVie to exclude Gilead Science 's pricey hep-C treatments set the stage for a potentially serious pricing war in biotech stocks. For example, Gilead Sciences and AbbVie will undoubtedly get paid less this year for their hepatitis C drugs than they would've gotten paid last year, but total script volume is likely to jump. Cheryl Swanson and Todd Campbell own shares of Gilead Sciences.George Budwell owns shares of AbbVie and Gilead Sciences. | The recent deal between Express Scripts and AbbVie to exclude Gilead Science 's pricey hep-C treatments set the stage for a potentially serious pricing war in biotech stocks. For example, Gilead Sciences and AbbVie will undoubtedly get paid less this year for their hepatitis C drugs than they would've gotten paid last year, but total script volume is likely to jump. Cheryl Swanson and Todd Campbell own shares of Gilead Sciences.George Budwell owns shares of AbbVie and Gilead Sciences. |
27093.0 | 2015-02-01 00:00:00 UTC | This Could Be Game-Changing News in the Battle Against Multiple Sclerosis | ABBV | https://www.nasdaq.com/articles/could-be-game-changing-news-battle-against-multiple-sclerosis-2015-02-01 | nan | nan | Source: Flickr user Dominik Golenia.
For a disease that affects more than 400,000 people in the United States and approximately 2.5 million around the globe, multiple sclerosis is arguably not getting its fair share of attention from drug developers and researchers. According to the National Institutes of Health, which has an annual budget near $40 billion, only $115 million is expected to be spent on MS research in 2015.
What makes MS a particularly scary disease -- beyond just its more serious complications like loss of vision and/or paralysis -- is that there are a number of unknowns even after decades of research. For example, scientists are still uncertain what causes MS, although they have a hunch it has to do with some combination of genetics and environmental factors, since the rate of MS prevalence above the 37th parallel is about to double what it is below the 37th parallel.
In recent years, MS diagnoses have been on the rise, although researchers simply attribute this to earlier diagnosis and better detection of the disease. MS can strike anyone at any age, but it's most often diagnosed when people are between the ages of 20 and 40.
Clearly, MS patients need help now, and not just in curbing their symptoms, but in actually finding ways to stop or reverse their disease. Thankfully, new research out of Northwestern University's Feinberg School of Medicine just might offer some game-changing and positive news.
Potentially game-changing news for select MS patients
Based on a study published in the Journal of the American Medical Association by Dr. Richard Burt and his team at Northwestern University, utilizing nonmyeloablative hematopoietic stem cell transplantation resulted in substantial improvements in select MS patients' quality of life and neurological disability.
Source: Flickr user LWP Kommunikacio.
What's hematopoietic stem cell transplantation, or HSCT? It's the process whereby researchers harvest a user's own stem cells from their bone marrow or peripheral blood (stem cells can come from a donor as well), and subsequently infuse these potent stem cells back into the body in an effort to get an MS patients' immune system back onto the right track.
For its study, Northwestern University researchers examined 123 patients with relapse-remitting MS and 28 with secondary progressive MS who had been previously treated with HSCT. At a median of 30 months following treatment, researchers observed that 64% of those tested at the 48-month mark had demonstrated significant Expanded Disability Status Scale (EDSS) scores, as well as 50% of those tested at the 24-month mark. This marked the first true long-term and sustainable improvement in EDSS scores recorded in a clinical study involving MS.
HSCT was also associated with improved cognitive function and quality of life with these patients, as well as a reduction in the volume of brain lesions as demonstrated by the use of an MRI. Furthermore, the relapse-free survival rate after four years was 80%, and the progression-free survival rate (i.e., disease stabilization) was 87%.
There are two notable downsides worth mentioning. First, EDSS scores for those with secondary progressive MS didn't improve. The implication is that HSCT may only work in earlier stages of the disease, although that's merely an educated guess on my part following this study, and would require additional research.
The other concern is HSCT comes with a number of possible complications. HSCT is an aggressive treatment usually reserved for aggressive forms of cancer, so the complications data could be a bit misleading, but its safety profile is nonetheless something worth keeping a close eye on.
Quality of life improvements are already here
It would truly be a great thing if researchers could safely find a way to treat earlier stages of MS in a way that leads to long-term disease stabilization, or perhaps even a cure. Of course, as a realist, I also understand that more time and testing will be needed before this becomes a reality.
The good news is that a handful of drug developers have devoted substantial research and development dollars toward improving MS patients' quality of life. I'm happy to say we're already seeing improvements.
Although Sanofi 's Aubagio and Novartis ' Gilenya are helping, it's really Biogen Idec 's Tecfidera that's making a world of difference .
Source: Biogen Idec.
Tecfidera is a pill MS patients take twice daily that, in clinical studies, lessened relapse rates by 49% and reduced new or expanding lesions as observed via an MRI by 71% to 99%, depending on the study. Best of all, Tecfidera was a substantial improvement in safety relative to Aubagio, which comes with a serious black-box warning concerning the potential for severe liver problems, and Gilenya, which, in rare cases, has the potential to cause cardiovascular problems. Strong efficacy and a safer product is the ultimate goal of drug developers, and a reason Tecfidera has been such a runaway success for MS patients.
There's room for more improvement, though. One compelling experimental therapy currently being examined is daclizumab for relapse-remitting MS. Developed by Biogen Idec and AbbVie , daclizumab delivered encouraging results in a late-stage study known as DECIDE, the results of which were announced over the summer. The results showed that daclizumab was superior to Biogen's injectable Avonex based on the study's primary endpoint and led to a statistically significant 45% reduction in annualized relapse rate relative to Avonex.
What's really intriguing about daclizumab is that it's a once-monthly injection, making it a very convenient and quick treatment option for relapse-remitting MS patients. I'd opine that its chances of approval by the Food and Drug Administration are better than 50-50.
Source: Alberta Innovation and Advanced Education via Flickr .
Another interesting solution could be to take an existing medication like Tecfidera and, as a play on words, put it on steroids. Alkermes announced the initiation in July of a phase 1 study utilizing a novel monomethyl furmarate (MMF) molecule to treat MS. Tecfidera is a dimethyl fumerate compound that breaks down into MMF once in the body. The idea for Alkermes is to develop a non-inferior MS product in terms of efficacy that potentially has an improved safety profile relative to Tecfidera.
Moving forward one step at a time
This is an encouraging week if you're a relapse-remitting MS patient, as it signals that new therapies may soon be on the way. It also reminds the medical community that more funding and research is needed to help fight this currently incurable disease. I'll continue to look toward Biogen Idec to lead the charge in helping to control MS symptoms and progression, but I remain hopeful that one day, these drug developers will have a genuine cure for MS.
Although your personal health comes first, don't forget your financial health either: The $60k Social Security bonus most retirees completely overlook
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The article This Could Be Game-Changing News in the Battle Against Multiple Sclerosis originally appeared on Fool.com.
Sean Williams has no position in any stocks mentioned. 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 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 - 2015 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 by Biogen Idec and AbbVie , daclizumab delivered encouraging results in a late-stage study known as DECIDE, the results of which were announced over the summer. For a disease that affects more than 400,000 people in the United States and approximately 2.5 million around the globe, multiple sclerosis is arguably not getting its fair share of attention from drug developers and researchers. Potentially game-changing news for select MS patients Based on a study published in the Journal of the American Medical Association by Dr. Richard Burt and his team at Northwestern University, utilizing nonmyeloablative hematopoietic stem cell transplantation resulted in substantial improvements in select MS patients' quality of life and neurological disability. | Developed by Biogen Idec and AbbVie , daclizumab delivered encouraging results in a late-stage study known as DECIDE, the results of which were announced over the summer. Potentially game-changing news for select MS patients Based on a study published in the Journal of the American Medical Association by Dr. Richard Burt and his team at Northwestern University, utilizing nonmyeloablative hematopoietic stem cell transplantation resulted in substantial improvements in select MS patients' quality of life and neurological disability. For its study, Northwestern University researchers examined 123 patients with relapse-remitting MS and 28 with secondary progressive MS who had been previously treated with HSCT. | Developed by Biogen Idec and AbbVie , daclizumab delivered encouraging results in a late-stage study known as DECIDE, the results of which were announced over the summer. Potentially game-changing news for select MS patients Based on a study published in the Journal of the American Medical Association by Dr. Richard Burt and his team at Northwestern University, utilizing nonmyeloablative hematopoietic stem cell transplantation resulted in substantial improvements in select MS patients' quality of life and neurological disability. For its study, Northwestern University researchers examined 123 patients with relapse-remitting MS and 28 with secondary progressive MS who had been previously treated with HSCT. | Developed by Biogen Idec and AbbVie , daclizumab delivered encouraging results in a late-stage study known as DECIDE, the results of which were announced over the summer. For its study, Northwestern University researchers examined 123 patients with relapse-remitting MS and 28 with secondary progressive MS who had been previously treated with HSCT. Quality of life improvements are already here It would truly be a great thing if researchers could safely find a way to treat earlier stages of MS in a way that leads to long-term disease stabilization, or perhaps even a cure. |
27094.0 | 2015-01-31 00:00:00 UTC | Can You Guess What Legal Drug Outsells the NFL? | ABBV | https://www.nasdaq.com/articles/can-you-guess-what-legal-drug-outsells-nfl-2015-01-31 | nan | nan | Humira's rocket-like sales growth may be coming to an end
Despite Humira's importance to AbbVie's top and bottom-lines, the drug is facing a serious threat. Specifically, the drug is scheduled to lose patent protection in the U.S. in Dec. 2016 and in the EU in 2018.
Because Humira accounts for over 60% of the company's total sales at present, this looming patent expiration issue is certainly cause for concern.
That said, AbbVie's management hasn't sweated it, pushing the drug into several additional clinical trials to continue expanding its label.
While it may seem like a bad idea to continuing investing heavily in a drug nearing the end of its market exclusivity, AbbVie is probably right for doing so. What's key to understand is that Humira is a biological-based medicine, and biologics are protected by extremely high standards in regards to the approval of generic rivals called "biosimilars" in the U.S.
In fact, the first biosimilar ever in the U.S. -- Novartis ' EP2006 indicated as a biosimilar for Amgen 's Neupogen -- is only now closing in a regulatory approval, nearly 5 years after the regulatory pathway for biosimilars was put into place by the Affordable Care Act in 2010.
Although multiple companies are hoping to launch a biosimilar for Humira in 2017, the fact of the matter is that the nature of the regulatory pathway for biosimilars probably prohibits such an event from immediately taking place, giving the drug a few more years of exclusivity beyond its patent expiration.
Foolish takeaways
The NFL is an enormously successful business by any measure. But top-selling medicines like Humira show just how large the pharmaceutical industry has become, and the drug's double-digit growth rate suggests that this trend is likely to continue for the foreseeable future. As a result, the outlook for innovative drugmakers like AbbVie is as bright as ever, making them excellent stocks to own for the long-haul.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Can You Guess What Legal Drug Outsells the NFL? originally appeared on Fool.com.
George Budwell owns shares of AbbVie. 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 - 2015 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. | Humira's rocket-like sales growth may be coming to an end Despite Humira's importance to AbbVie's top and bottom-lines, the drug is facing a serious threat. That said, AbbVie's management hasn't sweated it, pushing the drug into several additional clinical trials to continue expanding its label. While it may seem like a bad idea to continuing investing heavily in a drug nearing the end of its market exclusivity, AbbVie is probably right for doing so. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Humira's rocket-like sales growth may be coming to an end Despite Humira's importance to AbbVie's top and bottom-lines, the drug is facing a serious threat. That said, AbbVie's management hasn't sweated it, pushing the drug into several additional clinical trials to continue expanding its label. | Humira's rocket-like sales growth may be coming to an end Despite Humira's importance to AbbVie's top and bottom-lines, the drug is facing a serious threat. That said, AbbVie's management hasn't sweated it, pushing the drug into several additional clinical trials to continue expanding its label. While it may seem like a bad idea to continuing investing heavily in a drug nearing the end of its market exclusivity, AbbVie is probably right for doing so. | Humira's rocket-like sales growth may be coming to an end Despite Humira's importance to AbbVie's top and bottom-lines, the drug is facing a serious threat. That said, AbbVie's management hasn't sweated it, pushing the drug into several additional clinical trials to continue expanding its label. While it may seem like a bad idea to continuing investing heavily in a drug nearing the end of its market exclusivity, AbbVie is probably right for doing so. |
27095.0 | 2015-01-31 00:00:00 UTC | 3 Small-Cap Biotech Stocks That Could Be Top Stocks in 2015 | ABBV | https://www.nasdaq.com/articles/3-small-cap-biotech-stocks-could-be-top-stocks-2015-2015-01-31 | nan | nan | Source: Flickr user stockmonkeys.com .
The pop-and-drop nature of the biotech industry makes owning stocks in the sector particularly dicey. But for investors willing to take on the risk of failure, a number of intriguing small-cap biotech companies are working on important new therapies that could make a big impact on patients' lives and investors' wallets. Here are three of thesecompanies.
No. 1: Portola Pharmaceuticals
A major shift in standard of care is occurring in the treatment of heart disease and post-operative patients. For decades, doctors relied on warfarin to keep blood from clotting in these patients, but a new class of Factor Xa inhibitors is quickly displacing warfarin's long-standing dominance. Those drugs include Xarelto from Johnson & Johnson and Eliquis from Bristol-Myers Squibb and Pfizer . Although sales of Xarelto jumped 76% last year to $1.5 billion, and sales of Eliquis surged from $71 million in fourth-quarter 2013 to$281 million in fourth-quarter 2014, these drugs have one big problem: they lack an antidote. That means doctors have few good options for reversing their effect in the event of emergency surgery or a bleeding situation. However, that could soon change.
Portola is developing andexanet alfa, a Factor Xa reversal agent that is so promising that, despite Portola retaining all rights to the drug, Johnson & Johnson, Bristol-Myers, and Pfizer are helping fund its research. So far, it appears to be money well spent. In November, Portola reported phase 3 trial results showing andexanet alfa effectively reversed Eliquis, and in January the company reported similar success in reversing Xarelto in a phase 3 trial. Since demand for factor Xa drugs is climbing, and 2% to 5% of patients who receive them could suffer events requiring treatment by andexant alfa, Portola should find a willing market for its product -- if it can win FDA approval. To support its efforts for accelerated Food and Drug Administration approval, Portola is conducting a phase 4 trial that, if successful, should give it the data necessary to file for approval by the end of this year.
No. 2: Ophthotech
The aging baby boomer population means demand for drugs that reverse age-related vision loss should rise significantly in coming years. Novartis ' Lucentis and Regeneron 's Eylea, which are approved to treat wet state, age-related macular degeneration, are already top sellers , with Novartis and partner Roche garnering$4 billion in Lucentis sales per year and Regeneron and partner Bayer collecting $2.8 billion annually in Eylea sales .
Ophthotech is developing Fovista to be used alongside these drugs. In a phase 2b trial reported last year, patients receiving Fovista and Lucentis saw their vision improve to 10.6 letters on a standard eye chart, versus just a 6.5-letter improvement when taking Lucentis alone. The results were good enough to prompt Novartis to ink a deal that could be worth up to $1 billion in up-front and milestone money to Ophthotech in exchange for rights to market Fovista abroad. Ophthotech has retained U.S. rights (so far) and is conducting additional phase 3 trials it hopes will prove Fovista is equally effective when used alongside Eylea. Results from those trials are expected in 2016.
No. 3: Achillion Pharmaceuticals
Gilead Sciences has shown that developing new, more effective treatments for hepatitis C is very profit-friendly. The company's Sovaldi, which launched in December 2013, generated more than $8.5 billion in sales during the first nine months of 2014 alone. Sovaldi's success -- and the expected success of Gilead's next-generation drug Harvoni, a combination of Sovaldi and ledipasvir, and AbbVie 's competing Viekira Pak -- suggest Achillion could eventually have a winner on its hands, too.
Achillion is developing ACH-3102, a drug that targets the same NS5A protein that Gilead Sciences' ledipasvir targets. Harvoni is only approved for use in a shorter eight-week treatment cycle (as opposed to the traditional 12-week cycle) for about 45% of hepatitis C genotype 1 patients, while small midstage trials suggest combining Sovaldi with ACH-3102 could be effective for most patients over a treatment course as short as six weeks . Achillion is also developing its own Sovaldi alternative, which could eventually be paired with ACH-3102. If Achillion can deliver functional cure rates over a shorter treatment period, it could eventually carve out a healthy chunk of market share, or convince a larger player to acquire it.
Question marks remain
Although these three companies have intriguing catalysts that could propel shares higher this year, each is also an emerging-stage biotech without any products yet on the market. That means trial failures could significantly derail their businesses and cause share price to tumble. Given that backdrop, these companies are best suited to investors who can handle the potential risk of a failure.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Small-Cap Biotech Stocks That Could Be Top Stocks in 2015 originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences, Portola, Ophthotech, and Achillion. Todd owns E.B. Capital Markets, LLC. E.B. Capital's institutional clients may or may not have positions in the companies mentioned. Legal beagles won't let me ask them or let them tell me. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | Sovaldi's success -- and the expected success of Gilead's next-generation drug Harvoni, a combination of Sovaldi and ledipasvir, and AbbVie 's competing Viekira Pak -- suggest Achillion could eventually have a winner on its hands, too. Since demand for factor Xa drugs is climbing, and 2% to 5% of patients who receive them could suffer events requiring treatment by andexant alfa, Portola should find a willing market for its product -- if it can win FDA approval. If Achillion can deliver functional cure rates over a shorter treatment period, it could eventually carve out a healthy chunk of market share, or convince a larger player to acquire it. | Sovaldi's success -- and the expected success of Gilead's next-generation drug Harvoni, a combination of Sovaldi and ledipasvir, and AbbVie 's competing Viekira Pak -- suggest Achillion could eventually have a winner on its hands, too. In November, Portola reported phase 3 trial results showing andexanet alfa effectively reversed Eliquis, and in January the company reported similar success in reversing Xarelto in a phase 3 trial. In a phase 2b trial reported last year, patients receiving Fovista and Lucentis saw their vision improve to 10.6 letters on a standard eye chart, versus just a 6.5-letter improvement when taking Lucentis alone. | Sovaldi's success -- and the expected success of Gilead's next-generation drug Harvoni, a combination of Sovaldi and ledipasvir, and AbbVie 's competing Viekira Pak -- suggest Achillion could eventually have a winner on its hands, too. Portola is developing andexanet alfa, a Factor Xa reversal agent that is so promising that, despite Portola retaining all rights to the drug, Johnson & Johnson, Bristol-Myers, and Pfizer are helping fund its research. In November, Portola reported phase 3 trial results showing andexanet alfa effectively reversed Eliquis, and in January the company reported similar success in reversing Xarelto in a phase 3 trial. | Sovaldi's success -- and the expected success of Gilead's next-generation drug Harvoni, a combination of Sovaldi and ledipasvir, and AbbVie 's competing Viekira Pak -- suggest Achillion could eventually have a winner on its hands, too. But for investors willing to take on the risk of failure, a number of intriguing small-cap biotech companies are working on important new therapies that could make a big impact on patients' lives and investors' wallets. In November, Portola reported phase 3 trial results showing andexanet alfa effectively reversed Eliquis, and in January the company reported similar success in reversing Xarelto in a phase 3 trial. |
27096.0 | 2015-01-31 00:00:00 UTC | Gilead Sciences' Future in 3 Simple Slides | ABBV | https://www.nasdaq.com/articles/gilead-sciences-future-3-simple-slides-2015-01-31 | nan | nan | Thanks to the launch of the hepatitis C drug Sovaldi in December 2013, Gilead Sciences ' sales and income roughly doubled in the past year. The company's sales surge -- and the corresponding boost to the company's balance sheet -- shouldn't be ignored, but investors are right to wonder what might lie ahead for the biotech giant, especially in the wake of AbbVie launching its own hepatitis C drug in December. Fortunately, Gilead Sciences recently offered up insight into its future, including three slides that sum up the company's opportunities nicely.
1. Dominating HIV therapy
While Gilead Sciences' hepatitis C drugs have gotten all the press in the past year, the backbone of its success remains HIV treatment.
The company markets the planet's top-selling HIV medicines, including five therapies that are likely to eclipse billion dollar blockbuster status this year. As the following slide shows, Gilead Sciences' Stribild, Complera, Atripla, and Truvada are by far the most widely used HIV medicines.
Overall, Gilead Sciences' HIV drugs generate sales of more than $10 billion a year, but Gilead Sciences' future in HIV could be even brighter thanks to TAF, a new formulation of its top-selling HIV drug Viread, which is a key component in the single tablet regimens Stribild, Complera, and Atripla.
TAF delivers the same efficacy as Viread, but at a much lower dose, and that means that TAF is less toxic and more easily combined with other HIV drugs to create additional all-in-one tablets. By replacing Viread with TAF in its various single pill combination therapies, Gilead Sciences solidifies its HIV franchise by extending patent protection beyond Viread's patent expiration in 2017.
2. Advancing hepatitis C leadership
Sovaldi sales totaled more than $8.5 billion through the first nine months of 2014, and hepatitis C sales likely went higher in the fourth quarter thanks to the FDA approval of Harvoni in October for use in genotype 1 HCV patients.
But worries remain that AbbVie's recently approved hepatitis C drug cocktail Viekira Pak could cut into Gilead Sciences' market share and force a price war that could weigh down top line sales. Those price war worries are already playing out given that AbbVie reportedly offered a price discount to secure exclusivity with the pharmacy benefit manager Express Scripts , and Gilead Sciences similarly discounted the cost of its drugs to land exclusivity on drug plans that rely on CVS Health .
However, before investors get too antsy about that risk, they should know that Gilead Sciences is already developing the next generation of hepatitis C drugs. These new formulations combine Sovaldi with GS-5816 and possibly GS-9857 in a bid to create more effective therapies that can be used to treat all genotypes of the disease. If those studies go well, then any negative impact from AbbVie could prove to be short-lived.
And another thing
Gilead Sciences' opportunity to continue generating significant sales in HIV and HCV, as well as its opportunity to expand into oncology and develop a NASH treatment, are intriguing, but one of the most compelling reasons to own Gilead Sciences may be its financials. Exiting the third quarter, the company had $6.2 billion in cash on the books and another $1.375 billion in long-term investments. That's up from $2.1 billion in cash and $439 million in long-term investments exiting 2013. Since the company's likely to continue to generate substantial cash flow again this year, its balance sheet should improve even more in 2015. With a stable of top-sellers, a growing cash stockpile, and forward price to earnings ratio of less than 10, Gilead Sciences could remain among the most attractive stocks in the industry.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Gilead Sciences' Future in 3 Simple Slides 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 or may not have positions in the companies mentioned. Legal beagles won't let me ask them or let them tell me. The Motley Fool recommends CVS Health, Express Scripts, Gilead Sciences, and Johnson & Johnson. The Motley Fool owns shares of 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 - 2015 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. | But worries remain that AbbVie's recently approved hepatitis C drug cocktail Viekira Pak could cut into Gilead Sciences' market share and force a price war that could weigh down top line sales. The company's sales surge -- and the corresponding boost to the company's balance sheet -- shouldn't be ignored, but investors are right to wonder what might lie ahead for the biotech giant, especially in the wake of AbbVie launching its own hepatitis C drug in December. Those price war worries are already playing out given that AbbVie reportedly offered a price discount to secure exclusivity with the pharmacy benefit manager Express Scripts , and Gilead Sciences similarly discounted the cost of its drugs to land exclusivity on drug plans that rely on CVS Health . | The company's sales surge -- and the corresponding boost to the company's balance sheet -- shouldn't be ignored, but investors are right to wonder what might lie ahead for the biotech giant, especially in the wake of AbbVie launching its own hepatitis C drug in December. But worries remain that AbbVie's recently approved hepatitis C drug cocktail Viekira Pak could cut into Gilead Sciences' market share and force a price war that could weigh down top line sales. Those price war worries are already playing out given that AbbVie reportedly offered a price discount to secure exclusivity with the pharmacy benefit manager Express Scripts , and Gilead Sciences similarly discounted the cost of its drugs to land exclusivity on drug plans that rely on CVS Health . | But worries remain that AbbVie's recently approved hepatitis C drug cocktail Viekira Pak could cut into Gilead Sciences' market share and force a price war that could weigh down top line sales. The company's sales surge -- and the corresponding boost to the company's balance sheet -- shouldn't be ignored, but investors are right to wonder what might lie ahead for the biotech giant, especially in the wake of AbbVie launching its own hepatitis C drug in December. Those price war worries are already playing out given that AbbVie reportedly offered a price discount to secure exclusivity with the pharmacy benefit manager Express Scripts , and Gilead Sciences similarly discounted the cost of its drugs to land exclusivity on drug plans that rely on CVS Health . | The company's sales surge -- and the corresponding boost to the company's balance sheet -- shouldn't be ignored, but investors are right to wonder what might lie ahead for the biotech giant, especially in the wake of AbbVie launching its own hepatitis C drug in December. But worries remain that AbbVie's recently approved hepatitis C drug cocktail Viekira Pak could cut into Gilead Sciences' market share and force a price war that could weigh down top line sales. Those price war worries are already playing out given that AbbVie reportedly offered a price discount to secure exclusivity with the pharmacy benefit manager Express Scripts , and Gilead Sciences similarly discounted the cost of its drugs to land exclusivity on drug plans that rely on CVS Health . |
27097.0 | 2015-01-31 00:00:00 UTC | 3 Biotech Giants That Shouldn't Pay a Dividend | ABBV | https://www.nasdaq.com/articles/3-biotech-giants-shouldnt-pay-dividend-2015-01-31 | nan | nan | It's been shown that dividend-paying stocks outperform their non-dividend paying counterparts, but focusing on dividends may not be the best strategy when it comes to big biotech stocks. Read on to learn why three Motley Fool contributors don't think it makes sense for these big biotech companies to pay investors a dividend.
Cheryl Swanson : Take a little trip through history with me. On April 21, 2011, Amgen announced it would become the first big cap biotech company to pay a dividend. On that day, Amgen's stock fell 5% .
While on the very same day , rival large-cap Biogen Idec rocketed up 21% pre-market, based on positive news about an experimental drug (BG-12) that went on to be the multibillion-dollar-selling multiple sclerosis treatment Tecfidera.
See where I'm going?
This is just one example showcasing a broader point: Biotech shares move upward by creating high-impact drugs and accomplishing high-value acquisitions, rather than distributing dollars to investors. Biogen is currently spending about $1.5 billion a year on R&D, which drove the launch of three new drugs last year. By contrast, Amgen launched one. And if that doesn't impress you, consider this: Amgen's five-year total return (from end-of-year 2014) was 201%; Biogen's was 534.9%
I love dividends, and Amgen's performance has given investors no reason to frown. But if you want me to really jump up and down, give me a biotech like Biogen that focuses its attention on increasing its share price.
LeoSun : Some investors want Gilead Sciences to pay a dividend. Several of Gilead's smaller industry peers, including Amgen and AbbVie , pay dividends. However, Gilead prefers buybacks to dividends. It spent 34% of its free cash flow over the past 12 months to buy back $3.4 billion in stock as part of a $5 billion buyback plan it announced back in 2011.
Some investors questioned why that cash couldn't be spent on dividends, especially when Gilead's free cash flow over the past 12 months improved 173% because of strong sales of Sovaldi, its hepatitis C drug, which generated $8.55 billion in revenue (49% of its top line) during the first nine months of 2014.
However, spending on a dividend, or even a buyback, neglects the opportunity for Gilead to diversify its drug portfolio. Recall that before Sovaldi was approved, investors were worried that the 2017 patent expiration of Viread, the core drug in its HIV combo franchise, would sink the stock. Gilead avoided that fate by acquiring Pharmasset, the maker of Sovaldi and other hep-C drugs, for $11 billion in 2011. Under CEO John Martin, Gilead made around a dozen acquisitions to decrease its dependence on its core HIV drugs.
Ultimately, I'd much rather see Gilead spend more cash on R&D for new drugs and diversification via inorganic growth instead of paying a dividend.
Todd Campbell :Celgene Corporation is a market-leading player in cancer treatment with $7.6 billion in sales and a rock-solid balance sheet, but the company has far too much future growth opportunity to justify paying a dividend to shareholders.
Instead, Celgene should continue to focus on R&D, acquisitions, and collaborations. After all, that strategy has already paid off big for the company. For example, its R&D spending has rewarded investors with the $5 billion-a-year blockbuster multiple myeloma drug Revlimid and the soon-to-be billion-dollar blockbuster Pomalyst. Its $2.9 billion acquisition of Abraxis landed it the pancreatic cancer drug Abraxane that is also on track to eclipse the billion-dollar sales mark this year. And a slew of drug development deals with emerging biotech stars such as Agios suggest a steady stream of drug launches for years to come.
Those opportunities have Celgene estimating that its sales will more than double to $20 billion between now and 2020. With a track record of success as good as that, I'd be disappointed if Celgene short-changed its future growth by spending money on a dividend.
This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Biotech Giants That Shouldn't Pay a Dividend originally appeared on Fool.com.
Cheryl Swanson owns shares of Agios, Celgene, and Gilead Sciences. Leo Sun has no position in any stocks mentioned. Todd Campbell owns shares of Gilead Sciences and Celgene. The Motley Fool recommends Celgene and Gilead Sciences. The Motley Fool owns shares of 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 - 2015 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. | Several of Gilead's smaller industry peers, including Amgen and AbbVie , pay dividends. While on the very same day , rival large-cap Biogen Idec rocketed up 21% pre-market, based on positive news about an experimental drug (BG-12) that went on to be the multibillion-dollar-selling multiple sclerosis treatment Tecfidera. Todd Campbell :Celgene Corporation is a market-leading player in cancer treatment with $7.6 billion in sales and a rock-solid balance sheet, but the company has far too much future growth opportunity to justify paying a dividend to shareholders. | Several of Gilead's smaller industry peers, including Amgen and AbbVie , pay dividends. Some investors questioned why that cash couldn't be spent on dividends, especially when Gilead's free cash flow over the past 12 months improved 173% because of strong sales of Sovaldi, its hepatitis C drug, which generated $8.55 billion in revenue (49% of its top line) during the first nine months of 2014. Cheryl Swanson owns shares of Agios, Celgene, and Gilead Sciences. | Several of Gilead's smaller industry peers, including Amgen and AbbVie , pay dividends. Read on to learn why three Motley Fool contributors don't think it makes sense for these big biotech companies to pay investors a dividend. Some investors questioned why that cash couldn't be spent on dividends, especially when Gilead's free cash flow over the past 12 months improved 173% because of strong sales of Sovaldi, its hepatitis C drug, which generated $8.55 billion in revenue (49% of its top line) during the first nine months of 2014. | Several of Gilead's smaller industry peers, including Amgen and AbbVie , pay dividends. It's been shown that dividend-paying stocks outperform their non-dividend paying counterparts, but focusing on dividends may not be the best strategy when it comes to big biotech stocks. Read on to learn why three Motley Fool contributors don't think it makes sense for these big biotech companies to pay investors a dividend. |
27098.0 | 2015-01-30 00:00:00 UTC | Eli Lilly's 4Q Earnings Beat, Revenue Outlook Lowered - Analyst Blog | ABBV | https://www.nasdaq.com/articles/eli-lillys-4q-earnings-beat-revenue-outlook-lowered-analyst-blog-2015-01-30 | nan | nan | Eli Lilly & Company ( LLY ) reported fourth-quarter 2014 adjusted earnings per share of 75 cents, a penny above the Zacks Consensus Estimate and the year-ago earnings.
Eli Lilly and Company - Quarterly EPS | FindTheBest
Fourth-quarter revenues fell 12% to $5.121 billion, reflecting generic competition for Cymbalta and Evista in the U.S. as well as negative currency movement. However, revenues were slightly above the Zacks Consensus Estimate of $5.108 billion.
Reported earnings (including special items) declined 40% to 40 cents per share in the fourth quarter of 2014.
Eli Lilly's full-year earnings declined 33% to $2.78 per share. Revenues fell 15% to $19.6 billion.
Generics & Currency Hit Revenues
Fourth-quarter revenues declined 9% due to lower volume and 4% due to currency fluctuation. This was partially offset by 1% due to higher prices. The lower volume was mainly due to the Dec 2013 genericization of Cymbalta in the U.S. and the Mar 2014 patent expiry of Evista in the U.S.
U.S. revenues declined 19% to $2.453 billion reflecting lower volume resulting from the loss of patent protection on Cymbalta and Evista as well as wholesaler buying patterns. Ex-U.S. revenues declined 3% to $2.669 billion mainly due to unfavorable currency movement.
During the fourth quarter, Zyprexa recorded a 27% decline in revenues, which came in at $253.1 million.
Cymbalta sales fell 58% to $367.3 million. U.S. sales plunged 89% to $62.8 million due to the loss of patent exclusivity in Dec 2013. Ex-U.S. sales remained flat at $304.5 million with higher volume being offset by unfavorable currency movement.
Evista sales fell 74% to $72.1 million. U.S. sales dropped 91% to $19.4 million, due to the loss of exclusivity in Mar 2014. Ex-U.S. sales declined 21% to $52.7 million due to lower prices and unfavorable currency movement.
Products which recorded growth in the fourth quarter included Effient (up 6% to $137.8 million), Humulin (up 7% to $395.6 million), Cialis (up 6% to $622.4 million) and Forteo (up 6% to $380.8 million).
Eli Lilly's Animal Health segment contributed $633.3 million (up 9%) to revenues. Higher volume for food animal products led to the increase. The Lohmann acquisition also boosted sales. Sales in the U.S. grew 5% due to higher prices partially offset by lower volume for companion animal products due to competition and market dynamics.
Eli Lilly is looking to strengthen its Animal Health division and acquired Novartis' ( NVS ) animal health business earlier this year.
Earnings Guidance Maintained
Eli Lilly maintained its 2015 earnings guidance of $3.10 - $3.20 per share. However, revenues are now expected in the range of $19.5 billion - $20.0 billion (previous guidance: $20.3 billion and $20.8 billion).
The Zacks Consensus Estimate for earnings and revenues is currently $3.12 per share and $20.4 billion, respectively.
The company now expects gross margin of about 78% (up from prior guidance of 76.5%).
Marketing, selling and administrative expenses are expected in the range of $6.3 billion - $6.6 billion (old guidance: $6.5 billion - $6.8 billion). Meanwhile, research and development expenses are expected to come in at $4.7 billion - $4.9 billion (old guidance: $4.8 billion - $5.0 billion).
Our Take
Although Eli Lilly's fourth-quarter results were slighltly above expectations, the genericization of Cymbalta and Evista impacted revenues. Basically, 2014 has been an extremely challenging year for Eli Lilly with both products seeing a sharp decline in sales.
However, some of the company's key products and the animal health business should help partially offset the impact of genericization. The company also has some new products in its portfolio which should start contributing to revenues.
Eli Lilly is also working on controlling costs and is slated to return to growth from 2015.
Eli Lilly is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include AbbVie ( ABBV ) and Celgene Corp. ( CELG ). While Celgene is a Zacks Rank #1 (Strong Buy) stock, AbbVie carries a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the health care sector include AbbVie ( ABBV ) and Celgene Corp. ( CELG ). While Celgene is a Zacks Rank #1 (Strong Buy) stock, AbbVie carries a Zacks Rank #2 (Buy). Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): 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 LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector include AbbVie ( ABBV ) and Celgene Corp. ( CELG ). While Celgene is a Zacks Rank #1 (Strong Buy) stock, AbbVie carries a Zacks Rank #2 (Buy). | Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the health care sector include AbbVie ( ABBV ) and Celgene Corp. ( CELG ). While Celgene is a Zacks Rank #1 (Strong Buy) stock, AbbVie carries a Zacks Rank #2 (Buy). | Some better-ranked stocks in the health care sector include AbbVie ( ABBV ) and Celgene Corp. ( CELG ). While Celgene is a Zacks Rank #1 (Strong Buy) stock, AbbVie carries a Zacks Rank #2 (Buy). Click to get this free report LILLY ELI & CO (LLY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27099.0 | 2015-01-30 00:00:00 UTC | AbbVie Q4 Earnings Beat Expectations on Humira Strength - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvie-q4-earnings-beat-expectations-humira-strength-analyst-blog-2015-01-30 | nan | nan | AbbVie Inc. ( ABBV ) reported fourth quarter 2014 earnings of 89 cents per share, up 8.5% from the year-ago earnings and surpassing the Zacks Consensus Estimate of 85 cents.
Abbvie Inc. - Earnings Surprise | FindTheBest
Revenues increased 5.1% to $5.371 billion in the fourth quarter of 2014, in-line with the Zacks Consensus Estimate. Results were boosted by Humira's strong performance.
Including one-time items, the company reported a loss of 51 cents in the fourth quarter of 2014 compared to earnings of 70 cents per share in the year-ago period. Reported quarter figure includes charges related to the cancelled Shire ( SHPG ) deal.
The company's full year 2014 earnings increased 5.7% to $3.32 per share. Revenues increased 6.2% to $19.9 billion.
Humira Remains the Growth Driver
Key drug Humira recorded growth of 10.6% with revenues coming in at $3.363 billion. U.S. sales increased 15.8% ($1.932 billion). Ex-U.S. sales increased 4.3% to $1.431 billion. Growing awareness, favorable clinical data, additional indications and expansion into new markets should help the product to continue contributing significantly to the top-line.
Other products that performed well include Creon (up 30.6% to $151 million), and Duodopa (up 14.7% to $56 million). Recently launched hepatitis C virus (HCV) product Viekira Pak recorded sales of $48 million.
Dyslipidemia franchise (comprising products like TriCor/TriLipix and Niaspan) revenues increased 13.6% to $104 million.
Confirms Outlook
AbbVie confirmed its earnings guidance of $4.25 to $4.45 per share. The Zacks Consensus Estimate of $4.51 is above the guidance range.
Our Take
AbbVie's fourth quarter results were strong with the company beating on earnings expectations thanks to strong Humira sales. AbbVie is looking to reduce its dependence on Humira and the recent approval and launch of HCV treatment, Viekira Pak, is a step in this direction.
AbbVie's pipeline represents significant potential -- the company's late-stage pipeline includes several compounds or indications in phase III development targeting therapeutic areas like HCV, immunology and endometriosis.
AbbVie is a Zacks Rank #2 (Buy) stock. An equally well-ranked stock in the biotech sector is Alnylam Pharmaceuticals, Inc. ( ALNY ). A better-ranked stock in the biotech sector is Celgene ( CELG ) 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. | Abbvie Inc. - Earnings Surprise | FindTheBest Revenues increased 5.1% to $5.371 billion in the fourth quarter of 2014, in-line with the Zacks Consensus Estimate. AbbVie is looking to reduce its dependence on Humira and the recent approval and launch of HCV treatment, Viekira Pak, is a step in this direction. AbbVie Inc. ( ABBV ) reported fourth quarter 2014 earnings of 89 cents per share, up 8.5% from the year-ago earnings and surpassing the Zacks Consensus Estimate of 85 cents. | AbbVie Inc. ( ABBV ) reported fourth quarter 2014 earnings of 89 cents per share, up 8.5% from the year-ago earnings and surpassing the Zacks Consensus Estimate of 85 cents. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. Abbvie Inc. - Earnings Surprise | FindTheBest Revenues increased 5.1% to $5.371 billion in the fourth quarter of 2014, in-line with the Zacks Consensus Estimate. | AbbVie Inc. ( ABBV ) reported fourth quarter 2014 earnings of 89 cents per share, up 8.5% from the year-ago earnings and surpassing the Zacks Consensus Estimate of 85 cents. Abbvie Inc. - Earnings Surprise | FindTheBest Revenues increased 5.1% to $5.371 billion in the fourth quarter of 2014, in-line with the Zacks Consensus Estimate. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. | Abbvie Inc. - Earnings Surprise | FindTheBest Revenues increased 5.1% to $5.371 billion in the fourth quarter of 2014, in-line with the Zacks Consensus Estimate. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report ALNYLAM PHARMA (ALNY): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) reported fourth quarter 2014 earnings of 89 cents per share, up 8.5% from the year-ago earnings and surpassing the Zacks Consensus Estimate of 85 cents. |
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