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27300.0 | 2014-10-29 00:00:00 UTC | Noteworthy ETF Inflows: SSO, ABBV, ACN, ADT | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows-sso-abbv-acn-adt-2014-10-29 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $59.5 million dollar inflow -- that's a 2.7% increase week over week in outstanding units (from 18,275,000 to 18,775,000). Among the largest underlying components of SSO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.1%, Accenture plc (Symbol: ACN) is up about 0.5%, and ADT Corp (Symbol: ADT) is lower by about 0.6%. The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $90.36 per share, with $123.59 as the 52 week high point - that compares with a last trade of $119.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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 SSO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.1%, Accenture plc (Symbol: ACN) is up about 0.5%, and ADT Corp (Symbol: ADT) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $59.5 million dollar inflow -- that's a 2.7% increase week over week in outstanding units (from 18,275,000 to 18,775,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $90.36 per share, with $123.59 as the 52 week high point - that compares with a last trade of $119.16. | Among the largest underlying components of SSO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.1%, Accenture plc (Symbol: ACN) is up about 0.5%, and ADT Corp (Symbol: ADT) is lower by about 0.6%. The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $90.36 per share, with $123.59 as the 52 week high point - that compares with a last trade of $119.16. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SSO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.1%, Accenture plc (Symbol: ACN) is up about 0.5%, and ADT Corp (Symbol: ADT) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $59.5 million dollar inflow -- that's a 2.7% increase week over week in outstanding units (from 18,275,000 to 18,775,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $90.36 per share, with $123.59 as the 52 week high point - that compares with a last trade of $119.16. | Among the largest underlying components of SSO, in trading today AbbVie Inc. (Symbol: ABBV) is down about 0.1%, Accenture plc (Symbol: ACN) is up about 0.5%, and ADT Corp (Symbol: ADT) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $59.5 million dollar inflow -- that's a 2.7% increase week over week in outstanding units (from 18,275,000 to 18,775,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $90.36 per share, with $123.59 as the 52 week high point - that compares with a last trade of $119.16. |
27301.0 | 2014-10-29 00:00:00 UTC | Gilead Beats on Q3 Earnings, Sovaldi Sales Fall Sequentially - Analyst Blog | ABBV | https://www.nasdaq.com/articles/gilead-beats-on-q3-earnings-sovaldi-sales-fall-sequentially-analyst-blog-2014-10-29 | nan | nan | Gilead Sciences, Inc. 's ( GILD ) third-quarter earnings (including stock-based compensation expenses) of $1.79 per share surpassed the Zacks Consensus Estimate of $1.64. Moreover, reported earnings were way above the year-ago figure of 49 cents per share.
Gilead Sciences, Inc - Earnings Surprise | FindTheBest
Including one-time items, the company reported third-quarter earnings of $1.67 per share, well above the year-ago figure of 47 cents.
Total revenues of $6.04 billion was no comparison to the year-ago figure of $2.78 billion. Quarterly revenues were above the Zacks Consensus Estimate of $5.89 billion. However, total revenues fell 7.5% on a sequential basis due to a slowdown in sales of the company's blockbuster hepatitis C virus (HCV) drug, Sovaldi. We expect investors to react negatively to the news.
Quarter in Detail
Product sales more than doubled (120.3% growth) to approximately $5.97 billion driven by the inclusion of Sovaldi sales.
The company's key growth driver, Sovaldi registered sales of $2.8 billion in the third quarter of 2014. However, Sovaldi sales declined 19.7% sequentially. On its third-quarter conference call, the company attributed the decline to physicians delaying the initiation of treatments in the U.S. in anticipation of Harvoni's approval. Harvoni is the first single-tablet regimen for patients suffering from genotype 1 HCV. It was cleared by the FDA on Oct 10.
Antiviral product sales for the quarter registered massive growth of 138% to $5.54 billion driven by Sovaldi. Other anti-viral products, such as HIV treatments Complera/Eviplera (up 57% to $330.3 million) and Stribild (up 128% to $328 million) performed very well. Sales of older HIV drugs like Truvada (up 8% to $875.5 million) and Viread (up 19% to $275.6 million) were also impressive. However, Atripla sales declined 1% to $894.8 million.
Other products including Letairis, Ranexa and AmBisome recorded sales of $146.4 million (up 8%), $132.5 million (up 14%) and $98.1 million (up 0.3%), respectively. Newly launched Zydelig also performed well, recording revenues of $5.86 million.
Research & development (R&D) expenses (including stock-based compensation expenses) climbed 21.4% to $626.6 million in the third quarter of 2014 due to increased investment in pipeline. Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses) surged 130.5% to $944.5 million. SG&A expenses shot up primarily due to a non-tax deductible cumulative catch-up fee of $337 million associated with final regulations in the Affordable Care Act issued during the quarter. Costs associated with the marketing of Sovaldi and Zydelig also pushed up SG&A expenses.
2014 Guidance Revised
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 (previous guidance: $21-$23 billion).
Adjusted product gross margin for 2014 is now projected in the range of 86% to 88% (old guidance: 85% to 88%). The adjusted effective tax rate is now pegged in the range of $17.5% to 19.5% (previous guidance: $17.5% to $20.5%).
The company continues to expect R&D expenses in the range of $2.3 billion to $2.4 billion. SG&A expenses are now expected in the range of $2.7 billion to $2.8 billion as compared to the previous guidance of $2.3 billion to $2.4 billion. The increase is attributable to the impact of IRS regulations related to the change and accounting for the branded prescription drug fee.
Our Take
Although the company posted strong third-quarter results with both earnings and revenues beating our expectations, we are concerned about the slowdown in Sovaldi sales. The drug was well received in the HCV market. According to Gilead, approximately 117,000 patients have been treated with Sovaldi in the U.S. since its launch late last year.
The sequential dip in Sovaldi sales is due to a warehousing effect as physicians and patients wait for Harvoni, an oral single tablet regimen for HCV. Harvoni is priced at $94,500 for a 12-week treatment. The price is comparable to the Sovaldi plus pegylated interferon and ribavirin regimen. In fact, it is estimated that half of the HCV genotype 1 patients may benefit from eight weeks of Harvoni treatment, which would reduce the cost by 33% for the patients. We note that several companies including AbbVie Inc. ( ABBV ) and Merck ( MRK ) are also looking to bring their next generation of HCV treatments to the market. Going forward, we expect investor focus to remain on the ramp up of Harvoni.
Gilead currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care space include Allergan Inc. ( AGN ) and AbbVie. 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.
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 ) and Merck ( MRK ) are also looking to bring their next generation of HCV treatments to the market. Some better-ranked stocks in the health care space include Allergan Inc. ( AGN ) and AbbVie. Click to get this free report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MERCK & CO INC (MRK): 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 ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MERCK & CO INC (MRK): 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 ) and Merck ( MRK ) are also looking to bring their next generation of HCV treatments to the market. Some better-ranked stocks in the health care space include Allergan Inc. ( AGN ) and AbbVie. | Click to get this free report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MERCK & CO INC (MRK): 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 ) and Merck ( MRK ) are also looking to bring their next generation of HCV treatments to the market. Some better-ranked stocks in the health care space include Allergan Inc. ( AGN ) and AbbVie. | We note that several companies including AbbVie Inc. ( ABBV ) and Merck ( MRK ) are also looking to bring their next generation of HCV treatments to the market. Some better-ranked stocks in the health care space include Allergan Inc. ( AGN ) and AbbVie. Click to get this free report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27302.0 | 2014-10-29 00:00:00 UTC | Will AbbVie (ABBV) Disappoint in this Earnings Season? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/will-abbvie-abbv-disappoint-in-this-earnings-season-analyst-blog-2014-10-29 | nan | nan | AbbVie Inc. ( ABBV ) is scheduled to report its third-quarter 2014 results before the opening bell on Oct 31. Last quarter, the company had posted a positive earnings surprise of 7.89%. The four-quarter trailing average beat is 4.43%. Let's see how things are shaping up for this announcement.
Factors at Play
AbbVie's revenues are expected to be affected by lower sales of key products like TriCor/Trilipix and Niaspan as they are facing generic competition. Both TriCor/Trilipix (down 84%) and Niaspan (down 91%) revenues declined in the U.S. in the second quarter.
AbbVie's flagship product, Humira, is expected to continue its strong performance in the third quarter. On its second-quarter call, the company had mentioned that it expects Humira to exhibit high-teens growth in the U.S. in the third quarter. The company had also mentioned that it expects third quarter earnings in the range of 77 cents to 79 cents per share.
Meanwhile, AbbVie's operating expenses are expected to increase slightly during the third quarter as the company continues to invest in its growth brands and pipeline.
Earnings Whispers?
Our proven model does not conclusively show that AbbVie 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, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for AbbVie is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 77 cents per share.
Zacks Rank: AbbVie carries a Zacks Rank #2 (Buy). Though a favorable Zacks Rank, increases the predictive power of the ESP, the company's 0.00% ESP 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.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements.
Teva Pharmaceutical Industries Limited ( TEVA ) has an earnings ESP of +1.63% and carries a Zacks Rank #1. It is scheduled to report third-quarter results on Oct 30.
AMAG Pharmaceuticals ( AMAG ) has an earnings ESP of +25.00% and carries a Zacks Rank #2. It is scheduled to report third-quarter results on Oct 30.
Incyte Corporation ( INCY ) has an earnings ESP of +1,300.00% and carries a Zacks Rank #3. It is scheduled to report third-quarter results on Oct 30.
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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. | Factors at Play AbbVie's revenues are expected to be affected by lower sales of key products like TriCor/Trilipix and Niaspan as they are facing generic competition. Meanwhile, AbbVie's operating expenses are expected to increase slightly during the third quarter as the company continues to invest in its growth brands and pipeline. AbbVie Inc. ( ABBV ) is scheduled to report its third-quarter 2014 results before the opening bell on Oct 31. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) is scheduled to report its third-quarter 2014 results before the opening bell on Oct 31. Factors at Play AbbVie's revenues are expected to be affected by lower sales of key products like TriCor/Trilipix and Niaspan as they are facing generic competition. | Zacks Rank: AbbVie carries a Zacks Rank #2 (Buy). Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) is scheduled to report its third-quarter 2014 results before the opening bell on Oct 31. | Zacks ESP: Earnings ESP for AbbVie is 0.00%. AbbVie Inc. ( ABBV ) is scheduled to report its third-quarter 2014 results before the opening bell on Oct 31. Factors at Play AbbVie's revenues are expected to be affected by lower sales of key products like TriCor/Trilipix and Niaspan as they are facing generic competition. |
27303.0 | 2014-10-28 00:00:00 UTC | 3 Generics Stocks to Buy Now - Analyst Blog | ABBV | https://www.nasdaq.com/articles/3-generics-stocks-buy-now-analyst-blog-2014-10-28 | nan | nan | The pharma sector experienced one of its most significant turning points 30 years ago when the Hatch-Waxman Act was signed into law, clearing the way for the launch of generic drugs which changed the pharma business forever. Since then, complicated regulations have been reinterpreted and revised.
Compliance has also increased for the industry. However, generic makers have also found new avenues of growth which make them a particularly viable investment choice.
Impressive Growth
The original legislation was intended to address the interests of innovative drug companies as well as generics makers. Protection was provided to innovators while they awaited patent approval. Additionally, a period was provided during which they could reap the fruits of their efforts.
After some initial hiccups, primarily caused by attempts to secure drug approval in haste, the generics segment has grown at a rapid pace. To illustrate just how fast this growth has been, data from market research firm IMS Health reveals that generics made up just 19% of U.S. prescription in 1984. This share had grown to 86% in 2013.
Geographic Expansion and M&As
Even though the Hatch-Waxman Act was a domestic legislation, its impact has been global. Global generics sales amounted to $260 million in 2012. According to IMS Health, this has occurred because of the need for cheaper medication in foreign markets as well as numerous patent expirations. This has helped generics firms expand geographically.
The global generics business is a fragmented one. However, the four biggest companies contribute over 40% of combined sales of 60 largest companies. This has been revealed in a report from market research company EvaluatePharma. This has been achieved by a series of mergers and acquisitions.
Inversion Wave
Another reason for such consolidation has been the series of foreign acquisitions undertaken to benefit from an easier tax regime. At 35%, the U.S. corporate tax rate is one of the highest rates in the world. A tax inversion involves the acquisition of a foreign company and subsequently adopting its home country's domicile. Alternatively, the combined entity can create a holding company in a country whose tax rate is lower.
Last month, the U.S. Treasury Department made several change to tax regulations pertaining to such mergers. New regulations make it tougher to gain tax benefits from an inversion. As a result, some companies such as Chicago-based AbbVie Inc. ( ABBV ) have pulled out of such deals.
On the other hand, Mylan, Inc. ( MYL ) and Abbott Laboratories ( ABT ) have decided to continue with their $5.3 billion deal. Per the deal, Mylan will acquire Abbott Laboratories' branded specialty and generics business in developed ex-U.S. markets. However, they have changed the terms of the transaction. This indicates that further mergers and acquisitions will continue in the sector.
Our Choices
Below we present three stocks which will gain from these trends, each of which also has a good Zacks Rank.
Actavis plc ( ACT ) is a specialty pharmaceutical company engaged in the development, manufacturing, marketing, sale and distribution of generic, branded generic, brand, biosimilar and over-the-counter (OTC) pharmaceutical products. The company, which was previously known as Watson Pharmaceuticals, Inc., became the third largest generics pharma company in the world following its Oct 2012 acquisition of Actavis Group.
Actavis holds a Zacks Rank #1 (Strong Buy) and has expected earnings growth of 40.2%. The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 18.04.
Mylan, Inc. specializes in the development, manufacture, marketing, and distribution of generic, branded, and branded generic pharmaceutical products, as well as active pharmaceutical ingredients (APIs). The company, which operates in about 140 countries and territories, is one of the leading generic and specialty pharmaceutical companies in the world. The company derives the majority of its revenues from the generics segment.
Apart from a Zacks Rank #1 (Strong Buy), the company has expected earnings growth of 18.7%. It has a P/E (F1) of 14.93x.
Mallinckrodt plc ( MNK ) is involved in drug development, manufacturing, marketing and distribution. This includes both branded and generic specialty drugs, active pharmaceutical ingredients and agents used in diagnostic imaging. The company has two operating segments, specialty pharmaceuticals and global medical imaging. Mallinckrodt has a large generics portfolio with a focus on pain management drugs.
Mallinckrodt holds a Zacks Rank #2 (Buy) and has expected earnings growth of 39.6%. It has a P/E (F1) of 13x.
Data from IMS health show that 29% of expenditure on prescription drugs in the U.S. can be attributed to generics. With the advent of products like biosimilars, generics companies now have new avenues of growth. This is why these stocks would make good additions to your portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a result, some companies such as Chicago-based AbbVie Inc. ( ABBV ) have pulled out of such deals. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. Impressive Growth The original legislation was intended to address the interests of innovative drug companies as well as generics makers. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. As a result, some companies such as Chicago-based AbbVie Inc. ( ABBV ) have pulled out of such deals. Actavis plc ( ACT ) is a specialty pharmaceutical company engaged in the development, manufacturing, marketing, sale and distribution of generic, branded generic, brand, biosimilar and over-the-counter (OTC) pharmaceutical products. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. As a result, some companies such as Chicago-based AbbVie Inc. ( ABBV ) have pulled out of such deals. Actavis plc ( ACT ) is a specialty pharmaceutical company engaged in the development, manufacturing, marketing, sale and distribution of generic, branded generic, brand, biosimilar and over-the-counter (OTC) pharmaceutical products. | As a result, some companies such as Chicago-based AbbVie Inc. ( ABBV ) have pulled out of such deals. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. Last month, the U.S. Treasury Department made several change to tax regulations pertaining to such mergers. |
27304.0 | 2014-10-28 00:00:00 UTC | Was AbbVie Inc. Wrong to Abandon Its Deal With Shire plc? | ABBV | https://www.nasdaq.com/articles/was-abbvie-inc-wrong-abandon-its-deal-shire-plc-2014-10-28 | nan | nan | Its top-selling drug, Vyvanse, saw sales climb 19% year over year to $355 million in the quarter, but growth occurred across Shire's product line. Sales of Lialda jumped 24% to $177 million, Elaprase sales climbed 31% to $169 million, and Cinryze grew 36% to $145 million. Overall, Shire boasts seven drugs with quarterly sales of roughly $100 million that each grew 19% or more year over year last quarter.
More profitable, too
Shire is also growing its bottom line more quickly than AbbVie. Shire's gross margin is 85.6% and its EBITDA grew from 38% to 45% in the past year. That led to earnings per share jumping 60% to $2.93 in the third quarter.
Based on its performance this year, Shire has also increased its EPS outlook for the full year from expectations for growth in the low to mid thirty percent range to growth in the high 30% range.
Over at AbbVie, the company's gross margin is just shy of 80% and since AbbVie pays more as a percentage of its sales for operating expenses like SG&A and R&D than Shire; its EPS growth is significantly trailing Shire. In Q2, AbbVie reported EPS of $0.82, unchanged from the prior year.
Looking ahead
Following its breakup with Shire, AbbVie's challenge remains the same. If it hopes to offset potential Humira headwinds in a few years, it needs to bolster its product line up with blockbuster type drugs, or highly profitable rare disease drugs (like those sold by Shire). Perhaps, AbbVie thinks it can accomplish this on its own by reinvesting the billions it had promised to pay for Shire into R&D, or perhaps AbbVie thinks it can acquire a different biotech that offers Shire-like advantages for less. Either way, it appears that Shire's in a better position than AbbVie.
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The article Was AbbVie Inc. Wrong to Abandon Its Deal With Shire plc? 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. Todd owns Gundalow Advisors, LLC. Gundalow's clients do 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 .
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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. | More profitable, too Shire is also growing its bottom line more quickly than AbbVie. Over at AbbVie, the company's gross margin is just shy of 80% and since AbbVie pays more as a percentage of its sales for operating expenses like SG&A and R&D than Shire; its EPS growth is significantly trailing Shire. In Q2, AbbVie reported EPS of $0.82, unchanged from the prior year. | More profitable, too Shire is also growing its bottom line more quickly than AbbVie. Over at AbbVie, the company's gross margin is just shy of 80% and since AbbVie pays more as a percentage of its sales for operating expenses like SG&A and R&D than Shire; its EPS growth is significantly trailing Shire. In Q2, AbbVie reported EPS of $0.82, unchanged from the prior year. | Over at AbbVie, the company's gross margin is just shy of 80% and since AbbVie pays more as a percentage of its sales for operating expenses like SG&A and R&D than Shire; its EPS growth is significantly trailing Shire. More profitable, too Shire is also growing its bottom line more quickly than AbbVie. In Q2, AbbVie reported EPS of $0.82, unchanged from the prior year. | Over at AbbVie, the company's gross margin is just shy of 80% and since AbbVie pays more as a percentage of its sales for operating expenses like SG&A and R&D than Shire; its EPS growth is significantly trailing Shire. Either way, it appears that Shire's in a better position than AbbVie. More profitable, too Shire is also growing its bottom line more quickly than AbbVie. |
27305.0 | 2014-10-28 00:00:00 UTC | Pfizer Q3 Earnings Top Estimates Despite Generic Pressure - Analyst Blog | ABBV | https://www.nasdaq.com/articles/pfizer-q3-earnings-top-estimates-despite-generic-pressure-analyst-blog-2014-10-28 | nan | nan | Pfizer Inc. ( PFE ) posted third quarter 2014 earnings of 57 cents per share, a penny above the Zacks Consensus Estimate but 2% below the year-ago earnings. Revenues, which declined 2% to $12.4 billion, were above the Zacks Consensus Estimate of $12.1 billion.
Pfizer Inc - Earnings Surprise | FindTheBest
Revenues were impacted by the loss of exclusivity of certain products including Detrol LA (in the U.S.), the expiry of the Spiriva collaboration in some countries and the Enbrel agreement.
The Quarter in Detail
While foreign exchange rates cut Pfizer's third quarter revenues marginally ($11 million), operational factors cut revenues by $270 million or 2%. International revenues grew 1% to $7.5 billion. Meanwhile, U.S. revenues declined 7% to $4.8 billion.
Although the Global Established Pharmaceutical (GEP) and Global Innovative Pharmaceutical (GIP) segments recorded a decline in revenues in the third quarter, the Global Oncology, Global Vaccines and Consumer Healthcare segments recorded growth.
The GEP segment recorded a 7% decline in revenues, which came in at $6.2 billion. Factors like the presence of additional generic competition for Detrol LA in the U.S., Viagra in several EU markets, and Aricept in Canada and the termination of the Spiriva collaboration in most countries led to the decline. However, Lyrica continued to perform well with total sales coming in at $1.3 billion, up 16%.
GIP segment revenues declined 4% to $3.5 billion reflecting the end of the Enbrel co-promotion agreement. This was partially offset by the performance of Lyrica in the U.S. and Japan and Eliquis and Xeljanz across the world.
Consumer Healthcare revenues increased 4% to $821 million. Revenues benefited from the May 2014 launch of Nexium 24HR.
Global Oncology revenues increased 16% to $551 million with performance being driven by Inlyta and Xalkori across the world. While Bosulif performed well in the U.S., Sutent fared well in emerging markets.
Global Vaccine revenues grew 19% to $1.1 billion. Prevnar 13 was positively impacted by government purchasing patterns and higher demand. Prevenar family international sales benefited from higher shipments associated with the Global Alliance for Vaccines and Immunization (GAVI) and the timing of government purchases in various emerging markets.
Selling, informational and administrative (SI&A) expenses declined 2% to $3.3 billion during the quarter. R&D expenses increased 10% to $1.8 billion.
Adjusts Outlook
Pfizer tightened its earnings outlook for 2014 to $2.23 - $2.27 per share (old guidance: $2.20 - $2.30) and brought down the higher end of its revenue guidance. The company now expects 2014 revenues of $48.7 billion - $49.7 billion (old guidance: $48.7 billion - $50.7 billion) - guidance reflects the impact of the genericization of Celebrex from Dec 2014. The Zacks Consensus Estimate for earnings and revenues is currently $2.26 per share and $49.3 billion, respectively.
Pfizer expects SI&A spend of $13.5 billion to $14 billion (old guidance: $13.3 billion to $14.3 billion) and R&D spend of $6.9 billion to $7.2 billion (old guidance: $6.7 billion to $7.2 billion).
Meanwhile, Pfizer, which repurchased shares worth $4.2 billion through Oct 27, expects to buy back shares worth $5 billion in 2014. A new $11 billion share buyback program was also authorized.
Our Take
Pfizer's third quarter results were better-than-expected with the company beating on both earnings and revenues despite the presence of generic competition. However, the company's top-line remains under pressure as later this year Celebrex generics are expected to enter the market.
We believe genericization and the expiration of a few co-promotion agreements will continue to hamper top-line growth. However, cost-cutting efforts and share buybacks should help Pfizer achieve its earnings guidance.
Pfizer is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include Biogen ( BIIB ), Allergan ( AGN ), and AbbVie ( ABBV ). While Biogen is a Zacks Rank #1 (Strong Buy) stock, Allergan and AbbVie 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. | Some better-ranked stocks in the health care sector include Biogen ( BIIB ), Allergan ( AGN ), and AbbVie ( ABBV ). While Biogen is a Zacks Rank #1 (Strong Buy) stock, Allergan and AbbVie hold a Zacks Rank #2 (Buy). Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): 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 Biogen ( BIIB ), Allergan ( AGN ), and AbbVie ( ABBV ). While Biogen is a Zacks Rank #1 (Strong Buy) stock, Allergan and AbbVie hold a Zacks Rank #2 (Buy). | Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): 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 Biogen ( BIIB ), Allergan ( AGN ), and AbbVie ( ABBV ). While Biogen is a Zacks Rank #1 (Strong Buy) stock, Allergan and AbbVie hold a Zacks Rank #2 (Buy). | Some better-ranked stocks in the health care sector include Biogen ( BIIB ), Allergan ( AGN ), and AbbVie ( ABBV ). While Biogen is a Zacks Rank #1 (Strong Buy) stock, Allergan and AbbVie hold a Zacks Rank #2 (Buy). Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27306.0 | 2014-10-27 00:00:00 UTC | S&P 500 Analyst Moves: ABBV | ABBV | https://www.nasdaq.com/articles/sp-500-analyst-moves-abbv-2014-10-27 | nan | nan | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #65 analyst pick, moving up by 20 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, AbbVie ( ABBV ) is showing a gain of 15.1%.
VIDEO: S&P 500 Analyst Moves: ABBV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #65 analyst pick, moving up by 20 spots. Looking at the stock price movement year to date, AbbVie ( ABBV ) is showing a gain of 15.1%. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #65 analyst pick, moving up by 20 spots. Looking at the stock price movement year to date, AbbVie ( ABBV ) is showing a gain of 15.1%. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #65 analyst pick, moving up by 20 spots. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at the stock price movement year to date, AbbVie ( ABBV ) is showing a gain of 15.1%. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie ( ABBV ) is now the #65 analyst pick, moving up by 20 spots. Looking at the stock price movement year to date, AbbVie ( ABBV ) is showing a gain of 15.1%. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
27307.0 | 2014-10-23 00:00:00 UTC | Revlimid: Celgene Corporation's Gift That Keeps on Giving | ABBV | https://www.nasdaq.com/articles/revlimid-celgene-corporations-gift-keeps-giving-2014-10-23 | nan | nan | Celgene posted a solid third quarter earnings report with product sales up 19% -- with most of that coming from increases in volume -- and adjusted earnings per share up 24%.
But when you dive down to the individual drug level, it was a tale of two cities with a couple of drugs outperforming and a couple of laggards.
Sales of flagship Revlimid grew 19% year over year. That's amazing considering the drug was approved in the U.S. almost nine years ago. The question as the drug approaches $5 billion in annual sales is whether Revlimid can continue to grow.
Fortunately, there are other opportunities for additional sales. Celgene is trying to get Revlimid approved as a first-line therapy for multiple myeloma; the Food and Drug Administration will make a decision in February, and a European decision is expected sometime in the first half of next year. Celgene is also testing Revlimid in other indications beyond multiple myeloma. We should see data from trials testing Revlimid in myelodysplastic syndromes and mantle cell lymphoma at the American Society of Hematology meeting in December that could expand its use for those diseases, and Celgene has ongoing clinical trials in other types of lymphoma.
Sales of Celgene's other multiple myeloma drug, Pomalyst, doubled year over year with U.S. sales up 54% and international sales up a whopping 402% although that was a based off a small base of just $12.5 million internationally in the year-ago quarter.
Turning to the stragglers, sales of Abraxane were up 25% year over year. While that doesn't sound like a laggard, it's a 1.4% decrease compared to the second quarter of this year. Management blamed uneven buying patterns in the U.S. for the decline; lagging sales in metastatic breast cancer aren't helping, although growth in lung cancer and pancreatic cancer are making up for the decline there. International sales were ealthier with sales up 9% quarter over quarter thanks to the launch in pancreatic cancer in Europe. Considering it's not even approved for lung cancer in Europe yet, we should seem more growth in the future.
Source: Celgene
And then there's the newest kid, Otezla. Sales came in at $17.6 million for its first full quarter on the market. That's a far cry from its full potential and smaller than analysts were expecting, especially considering that Otezla passed AbbVie 's Humira as the top-branded drug when looking at new treatment starts for psoriatic arthritis.
Part of the discrepancy comes from free titration packs that patients get when they start the medication while their insurance is being processed. Those won't show up in the sales number, but will eventually convert to sales once they're getting their medication from a pharmacy. More than half of doctors who have given out free trials have handed out three or more free trials, a good sign that they're comfortable with the benefit-risk profile of the drug.
Fourth quarter numbers should be more telling about Otezla's launch trajectory. In addition to converts from free trials, we'll see the first sales for psoriasis, which is four times the size of psoriatic arthritis, after the late-September approval for that indication.
Based on the solid quarter, Celgene increased its adjusted earnings guidance for the year by a nickel on both sides to a range of $3.65 to $3.70 per share. That implies fourth quarter adjusted quarter earnings of $0.95 to $1.00 per share, a 26% growth year over year. Look for more growth ahead, hopefully from all the drugs in its portfolio.
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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Revlimid: Celgene Corporation's Gift That Keeps on Giving originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Celgene. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 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's a far cry from its full potential and smaller than analysts were expecting, especially considering that Otezla passed AbbVie 's Humira as the top-branded drug when looking at new treatment starts for psoriatic arthritis. Based on the solid quarter, Celgene increased its adjusted earnings guidance for the year by a nickel on both sides to a range of $3.65 to $3.70 per share. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. | That's a far cry from its full potential and smaller than analysts were expecting, especially considering that Otezla passed AbbVie 's Humira as the top-branded drug when looking at new treatment starts for psoriatic arthritis. Sales of Celgene's other multiple myeloma drug, Pomalyst, doubled year over year with U.S. sales up 54% and international sales up a whopping 402% although that was a based off a small base of just $12.5 million internationally in the year-ago quarter. Management blamed uneven buying patterns in the U.S. for the decline; lagging sales in metastatic breast cancer aren't helping, although growth in lung cancer and pancreatic cancer are making up for the decline there. | That's a far cry from its full potential and smaller than analysts were expecting, especially considering that Otezla passed AbbVie 's Humira as the top-branded drug when looking at new treatment starts for psoriatic arthritis. Sales of Celgene's other multiple myeloma drug, Pomalyst, doubled year over year with U.S. sales up 54% and international sales up a whopping 402% although that was a based off a small base of just $12.5 million internationally in the year-ago quarter. International sales were ealthier with sales up 9% quarter over quarter thanks to the launch in pancreatic cancer in Europe. | That's a far cry from its full potential and smaller than analysts were expecting, especially considering that Otezla passed AbbVie 's Humira as the top-branded drug when looking at new treatment starts for psoriatic arthritis. Sales of flagship Revlimid grew 19% year over year. That implies fourth quarter adjusted quarter earnings of $0.95 to $1.00 per share, a 26% growth year over year. |
27308.0 | 2014-10-22 00:00:00 UTC | Biotech Stock Roundup: AbbVie Calls off Shire Acquisition, Will Amgen Consider Breakup? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-abbvie-calls-shire-acquisition-will-amgen-consider-breakup-analyst | nan | nan | Tax inversion deals are no longer looking so attractive given the notice issued by the U.S. Department of Treasury in September. In fact, AbbVie ( ABBV ) has dropped its plans to acquire Shire and will be paying a break-up fee. Meanwhile, Amgen ( AMGN ) is being urged to consider splitting into two companies which would create more value.
Recap of the Week's Most Important Stories
1. AbbVie called off its plans to acquire Shire - the company's decision to step back from the deal had a lot to do with the Sep 22 notice issued by the U.S. Department of Treasury related to tax inversion deals. The Shire acquisition would have allowed AbbVie to benefit from lower tax rates. However, the changes proposed by the Department of Treasury could very well destroy the financial benefits of these types of transactions.
With the termination of the deal, AbbVie will have to pay a breakup fee of $1.635 billion. Although the company announced a $5 billion share buyback plan and boosted its dividend, AbbVie remains highly dependent on Humira for growth. While the pipeline should start delivering, quite a few companies are working on developing biosimilar versions of Humira (Read more: AbbVie Drops Shire Deal, Announces Buyback, Ups Dividend ).
2. Amgen is being urged by hedge fund manager Daniel Loeb to split into two companies. This is not the first time that this opinion has been voiced. Loeb suggested that Amgen is likely to benefit if it splits into two companies with one focusing on the cash-generative mature products and the other on R&D-intensive growth products. Amgen's shares were up almost 5%. Companies that adopted the split route in the recent past include Abbott Laboratories and Theravance.
3. Regeneron ( REGN ) and partner Sanofi are facing a patent infringement lawsuit from Amgen regarding their PCSK9 inhibitor, alirocumab. Through this lawsuit, Amgen is trying to delay the entry of competitors in the highly lucrative cholesterol management market. Amgen has been ahead in the race having filed for approval of its PCSK9 inhibitor, evolocumab, this August.
However, Regeneron and Sanofi are targeting a year-end filing for their PCSK9 inhibitor and are planning to seek priority review, which means both drugs could gain approval around the same time (Read more: Amgen Sues Sanofi and Regeneron over PCSK9 Candidate ).
4. Pharmacyclics ( PCYC ) was in the news last week with the company signing an agreement with Roche under which its cancer treatment, Imbruvica, will be evaluated in combination with Roche's Gazyva (Read more: Pharmacyclics, Roche Ink Deal for Cancer Combo Therapy ). Moreover, Imbruvica gained EU approval for two types of blood cancer and Pharmacyclics is now looking to get Imbruvica's label expanded in the U.S. for Waldenstrom's macroglobulinemia, a slow-growing, currently incurable, rare type of B-cell lymphoma.
5. Repros Therapeutics' ( RPRX ) shares plunged almost 40% on news that its upcoming meeting with the FDA for its testosterone treatment, Androxal, scheduled for the first half of November, will be a Type C guidance meeting instead of a Type B Pre-NDA meeting. According to the FDA, a preliminary review of the company's briefing document showed that there was not enough clinical information for the meeting to be a Type B Pre-NDA meeting. The news is disappointing as this may well lead to a delay in the company's plans to file for regulatory approval by year end.
Performance
Last week, Regeneron was the biggest gainer among the major biotechs with share price increasing 16.14%. Meanwhile, Vertex recorded the highest gain (65.21%) among major biotechs over the last six months.
Overall, it was a good week for the biotech sector with the NASDAQ Biotechnology Index gaining 8.94% (See the last biotech stock roundup here: Gilead Nabs FDA Nod for Combo HCV Drug, Auxilium Accepts Endo Offer ).
What's Next in the Biotech World?
Several major biotech companies like Biogen, Celgene ( CELG ), Alexion, Gilead and Amgen will be reporting third quarter results in the next few days. Meanwhile, NPS Pharmaceuticals ( NPSP ) has an important regulatory date coming up with the FDA expected to decide on the approval status of Natpara for the long-term treatment of hypoparathyroidism.
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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. | Although the company announced a $5 billion share buyback plan and boosted its dividend, AbbVie remains highly dependent on Humira for growth. While the pipeline should start delivering, quite a few companies are working on developing biosimilar versions of Humira (Read more: AbbVie Drops Shire Deal, Announces Buyback, Ups Dividend ). In fact, AbbVie ( ABBV ) has dropped its plans to acquire Shire and will be paying a break-up fee. | Although the company announced a $5 billion share buyback plan and boosted its dividend, AbbVie remains highly dependent on Humira for growth. While the pipeline should start delivering, quite a few companies are working on developing biosimilar versions of Humira (Read more: AbbVie Drops Shire Deal, Announces Buyback, Ups Dividend ). Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report NPS PHARMA INC (NPSP): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie called off its plans to acquire Shire - the company's decision to step back from the deal had a lot to do with the Sep 22 notice issued by the U.S. Department of Treasury related to tax inversion deals. Click to get this free report REGENERON PHARM (REGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report REPROS THERAPEU (RPRX): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report NPS PHARMA INC (NPSP): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, AbbVie ( ABBV ) has dropped its plans to acquire Shire and will be paying a break-up fee. | AbbVie called off its plans to acquire Shire - the company's decision to step back from the deal had a lot to do with the Sep 22 notice issued by the U.S. Department of Treasury related to tax inversion deals. In fact, AbbVie ( ABBV ) has dropped its plans to acquire Shire and will be paying a break-up fee. The Shire acquisition would have allowed AbbVie to benefit from lower tax rates. |
27309.0 | 2014-10-22 00:00:00 UTC | Celgene Corporation's Earnings Preview: Pay Attention to New Kids | ABBV | https://www.nasdaq.com/articles/celgene-corporations-earnings-preview-pay-attention-new-kids-2014-10-22 | nan | nan | When Celgene reports third-quarter earnings on Thursday, flagship drug Revlimid will likely drive growth. With sales now north of $1 billion per quarter, the drug has reached megablockbuster status and makes up about two-thirds of Celgene's revenue.
But investors should keep an eye on the company's newer drugs as well. They're shrinking Revlimid's impact on the company.
Abraxane is close to being a blockbuster, with expected sales of $850 million to $900 million this year. In the second quarter, sales were up 39% year over year thanks to the drug's expanded approval into pancreatic cancer in the U.S. and Europe. With $400 million in sales in the first half of the year, Celgene needs $450 million in the second half to reach the low end of its goal.
Source: Celgene
Also keep an eye on Pomalyst, Celgene's multiple myeloma drug that was approved for sale in 2013. Sales were up 143% year over year, but that's comparing it to the first full quarter on the U.S. market without sales in Europe, where it wasn't approved until August 2013. Quarter-over-quarter growth was 19%, which isn't too shabby. If it can keep up that growth rate, sales would top $700 million for the year.
Finally, there's Otezla, which isn't going to move the revenue needle considering that it just launched in April after being approved for psoriatic arthritis by the Food and Drug Administration. In late September, the agency approved Otezla for plaque psoriasis as well. Sales for the expanded indication aren't going to have much impact on the third-quarter numbers, but management might give more color during the conference call about how the plaque psoriasis launch is going with a month of sales under its belt.
Psoriatic arthritis and plaque psoriasis are substantial markets, and Celgene is also going after other inflammation diseases, such as rheumatoid arthritis, ulcerative colitis, and Behcet's disease. Otezla has a big advantage over anti-inflammatory drugs -- AbbVie 's Humira, Johnson & Johnson 's Remicade, and Amgen 's Enbrel -- because it can be taken orally while the biologics have to be injected or infused.
Source: Celgene.
It's not hard to see Otezla as a blockbuster based on its competitors' sales, but it will take a few years to get there. Unless a patient can't tolerate the needle pricks, doctors aren't likely to switch patients to Otezla if the biologic is working. Celgene's best hope is to grab new patients them before they start one of the biologics. At the end of the second quarter, Otezla shared the market share lead for new patient starts in psoriatic arthritis, so it's off to a good start.
Boosted by this week's data on Crohn's disease drug GED-0301, Celgene is trading near its 52-week high -- which is also its all-time high -- so don't be surprised if the biotech has a little sell-off even if earnings are solid.
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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Celgene Corporation's Earnings Preview: Pay Attention to New Kids originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Celgene and Johnson & Johnson 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 - 2014 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. | Otezla has a big advantage over anti-inflammatory drugs -- AbbVie 's Humira, Johnson & Johnson 's Remicade, and Amgen 's Enbrel -- because it can be taken orally while the biologics have to be injected or infused. With sales now north of $1 billion per quarter, the drug has reached megablockbuster status and makes up about two-thirds of Celgene's revenue. Finally, there's Otezla, which isn't going to move the revenue needle considering that it just launched in April after being approved for psoriatic arthritis by the Food and Drug Administration. | Otezla has a big advantage over anti-inflammatory drugs -- AbbVie 's Humira, Johnson & Johnson 's Remicade, and Amgen 's Enbrel -- because it can be taken orally while the biologics have to be injected or infused. At the end of the second quarter, Otezla shared the market share lead for new patient starts in psoriatic arthritis, so it's off to a good start. The Motley Fool recommends Celgene and Johnson & Johnson and owns shares of Johnson & Johnson. | Otezla has a big advantage over anti-inflammatory drugs -- AbbVie 's Humira, Johnson & Johnson 's Remicade, and Amgen 's Enbrel -- because it can be taken orally while the biologics have to be injected or infused. Source: Celgene Also keep an eye on Pomalyst, Celgene's multiple myeloma drug that was approved for sale in 2013. Sales were up 143% year over year, but that's comparing it to the first full quarter on the U.S. market without sales in Europe, where it wasn't approved until August 2013. | Otezla has a big advantage over anti-inflammatory drugs -- AbbVie 's Humira, Johnson & Johnson 's Remicade, and Amgen 's Enbrel -- because it can be taken orally while the biologics have to be injected or infused. Sales were up 143% year over year, but that's comparing it to the first full quarter on the U.S. market without sales in Europe, where it wasn't approved until August 2013. The Motley Fool recommends Celgene and Johnson & Johnson and owns shares of Johnson & Johnson. |
27310.0 | 2014-10-22 00:00:00 UTC | Gilead's Hep C Dream Drug Faces Demanding Investors | ABBV | https://www.nasdaq.com/articles/gileads-hep-c-dream-drug-faces-demanding-investors-2014-10-22 | nan | nan | For decades, Charlotte Stewart was carrying around a virus that was like the houseguest that refused to leave: hepatitis C.
Stewart was first diagnosed with HCV in 1998, but she believes she contracted it as much as 20 years earlier, when she received two blood transfusions and three injections with blood-related products.
By the time the virus was detected, her liver was already showing the scarring, known as cirrhosis, that appears in the more advanced cases of the disease.
"Fortunately, that didn't get much worse, because I did do the treatment," Stewart, now 66, told IBD. "I did six rounds of treatment, with the sixth being Harvoni."
Harvoni is the new pill just launched this month byGilead Sciences ( GILD ), which Stewart got early because she participated in its clinical trials. Harvoni is a combination of the novel drug ledipasvir and sofosbuvir, which for nearly a year has been sold alone under the brand name Sovaldi.
High Hopes
Sovaldi's launch smashed all previous new drug launches. Since it came out in December 2013 it has racked up nearly $6 billion in sales -- and that's before Gilead's third-quarter report, which is due on Oct. 28. Since Harvoni is the new-and-improved Sovaldi, analysts expect it to treat even more patients.
Stewart's previous treatment experience shows just why Gilead is rolling in money right now.
Her first four treatments were variations on the combination of interferon and ribavirin, which was the standard at the time. She credits those treatments with slowing her liver damage, but they didn't get rid of the HCV and they did make her feel sick.
In fact, her third treatment round, which involved daily injections of interferon, drove down her blood-cell counts so low that she nearly landed in the hospital.
"It was very difficult going through those treatments," she said. "I always developed anemia. Achiness, fevers, chills and no energy."
In contrast, when she was in the Harvoni trial, she took one pill a day for 12 weeks and suffered no side effects. After 12 weeks, her viral load was undetectable -- and still is, more than a year later.
"Physically, I have more energy, and just overall better health," Stewart said. "Mentally and emotionally, it's like having a huge weight taken off you."
More than 90% of patients in the trial responded that way. Yet Gilead's stock fell 2% the day Harvoni was approved, and it kept falling the next three days after that.
In a way, that's been the story of Gilead's life since the Sovaldi launch. Though the company scores high by IBD metrics with a perfect Composite Rating of 99, its price/earnings multiple is more like that of a big pharma than a booming biotech, say drug analysts. And just about every hint of bad news seems to trigger a sell-off.
The biggest cause of concern has been price. Sovaldi's price of $1,000 a pill -- which adds up to $84,000 for a 12-week course -- came under fire from advocacy groups, insurers, pharmacy benefit managers and even members of Congress. However, nobody could really do anything about it so long as Sovaldi was so clearly superior to everything else on the market.
Gilead priced Harvoni basically at parity with Sovaldi. Since most patients still had to take interferon and ribavirin along with Sovaldi -- and those drugs are generic and therefore cheaper -- Gilead marked Harvoni up 12.5% from Sovaldi to cover for the cost of the two absent drugs.
However, Harvoni's official label allows that an eight-week treatment "can be considered" for patients without cirrhosis who haven't been treated before. Gilead estimates that 45% of patients may be eligible for this.
Given this, FBR analyst Andrew Berens estimates that the average cost of Harvoni treatment will be about $80,000.
However, he also pointed out that cirrhotic patients whose previous treatments have failed -- patients like Charlotte Stewart -- are recommended to take Harvoni for 24 weeks. He also says patients whose Sovaldi treatments have failed may represent an underrated opportunity.
"Using our HCV patient flow model, we calculate over 250,000 total patients needing re-treatment over Sovaldi's viable patent life, over $12 billion in the U.S. alone," Berens wrote in an Oct. 13 note, in which he raised his estimate of 2015 U.S. Harvoni sales to $8.9 billion from $8.1 billion.
But the longer-term threat to Gilead's pricing power is competition. The next few months will bring a lot more clarity on what that competition will look like.
The first real peer to Harvoni is expected to beAbbVie 's ( ABBV ) 3D regimen, which the FDA is due to make an approval decision on by Dec. 22.
In clinical trials, the 3D regimen has been comparable to Harvoni in safety and effectiveness, but it does involve three different drugs, which makes it easier for patients to mess up.
Discount Price?
AbbVie's management has been tight-lipped about how it will price the drug, leaving Wall Street to speculate about how much it will be willing to undercut Harvoni.
ISI Group analyst Mark Schoenebaum expects that it will probably price comparably and perhaps offer rebates to certain customers, but he estimates there's a 1% to 15% chance that AbbVie will price at a significant discount.
Before that happens -- on the second weekend in November, to be precise --Merck ( MRK ) will report mid-stage trial data on its own HCV program, which could potentially cut down the treatment time to four weeks.
That wouldn't launch for a few more years, but the drug industry tends to think in long time frames. When Gilead acquired sofosbuvir with its buyout of Pharmasset in Nov. 2011, it was already thinking about the fact that its legacy HIV franchise -- such blockbusters as Viread, Truvada and Atripla -- will start going off patent in 2018.
The HCV franchise is filling that space now, but Gilead hasn't exactly given up on HIV either. On Sept. 25, Gilead reported positive late-stage trial results for a drug that analysts have dubbed "son of Viread," because it's a similar compound but with fewer side effects.
Whatever the long-term future may hold, Gilead's near-term success is expected to roll on. Analysts polled by Thomson Reuters expect Gilead to report Q3 earnings of $1.92 a share, up 269% from the prior year. Sales are seen more than doubling to just less than $6 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 real peer to Harvoni is expected to beAbbVie 's ( ABBV ) 3D regimen, which the FDA is due to make an approval decision on by Dec. 22. AbbVie's management has been tight-lipped about how it will price the drug, leaving Wall Street to speculate about how much it will be willing to undercut Harvoni. ISI Group analyst Mark Schoenebaum expects that it will probably price comparably and perhaps offer rebates to certain customers, but he estimates there's a 1% to 15% chance that AbbVie will price at a significant discount. | 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 real peer to Harvoni is expected to beAbbVie 's ( ABBV ) 3D regimen, which the FDA is due to make an approval decision on by Dec. 22. AbbVie's management has been tight-lipped about how it will price the drug, leaving Wall Street to speculate about how much it will be willing to undercut Harvoni. | The first real peer to Harvoni is expected to beAbbVie 's ( ABBV ) 3D regimen, which the FDA is due to make an approval decision on by Dec. 22. AbbVie's management has been tight-lipped about how it will price the drug, leaving Wall Street to speculate about how much it will be willing to undercut Harvoni. ISI Group analyst Mark Schoenebaum expects that it will probably price comparably and perhaps offer rebates to certain customers, but he estimates there's a 1% to 15% chance that AbbVie will price at a significant discount. | The first real peer to Harvoni is expected to beAbbVie 's ( ABBV ) 3D regimen, which the FDA is due to make an approval decision on by Dec. 22. AbbVie's management has been tight-lipped about how it will price the drug, leaving Wall Street to speculate about how much it will be willing to undercut Harvoni. ISI Group analyst Mark Schoenebaum expects that it will probably price comparably and perhaps offer rebates to certain customers, but he estimates there's a 1% to 15% chance that AbbVie will price at a significant discount. |
27311.0 | 2014-10-21 00:00:00 UTC | 3 Drugs Critical to Johnson & Johnson's Future | ABBV | https://www.nasdaq.com/articles/3-drugs-critical-johnson-johnsons-future-2014-10-21 | nan | nan | Source: Johnson & Johnson
Johnson & Johnson is one of the planet's largest companies with operations that stretch from consumer goods to medical devices, but it's drug business growth has led to J&J's climbing sales.
In the past year, revenue in J&J's pharmaceutical unit is up 18%, handily outstripping results in its consumer segment, which has seen sales fall 0.6%, and its medical device business, in which revenue has slumped 5.2%. But J&J may be facing some headwinds in its drug business that could slow revenue growth next year, including an expected drop in sales for Olyisio, its hepatitis C drug, and increased competition for Zytiga, its prostate cancer drug. Given those risks, let's look more closely at J&J's fastest-growing drugs and see whether or not they may be able to overcome those stumbling blocks.
Higher hurdles
First, let's get our arms around the challenges facing Olysio and Zytiga.
J&J's Olysio won approval for use in hepatitis C patients just days prior to the FDA green lighting Gilead Sciences Sovaldi last year. While Olysio arguably under-performed Sovaldi during clinical trials, particularly in patients with the common Q80K polymorphism, Olysio has been a big success for J&J this year. That success came thanks to guidelines issued in January by the American Association for the Study of Liver Diseases, or AASLD, that recommend using a combination of Olysio and Sovaldi to treat patients unable, or unwilling, to take peg interferon -- a prior generation hepatitis C drug laden with side effects. The recommendations proved a boon for Olysio, helping it generate nearly $2 billion in sales through the first nine months of this year. However, Olysio's impressive run is about to come to an end. Last week, the FDA approved Gilead's second generation hepatitis C drug, Harvoni, and given that Harvoni posts cure rates in the high 90% range, its unlikely doctors will continue prescribing the pricier Olysio plus Sovaldi combination.
J&J's Zytiga, a treatment approved for post chemotherapy prostate cancer patients in 2011, has also been a star performer in 2014. Thanks to the FDA agreeing to expand Zytiga's label to include pre-chemotherapy prostate cancer patients in 2012, Zytiga's sales have soared. Through the first nine months of 2014, Zytiga's revenue totals $1.64 billion, up 37% from last year. However, that growth may nosedive now that the FDA has granted similar pre-chemotherapy label expansion to Medivation and Astellas' Xtandi. Xtandi has already captured more market share than Zytiga in the post chemotherapy indication, so it's likely to significantly cut into Zytiga's dominance in pre-chemotherapy, too.
Source: Johnson & Johnson
Overcoming obstacles
Since sales of those two drugs total more than $3.5 billion so far this year, J&J may have its work cut out for it if it hopes to post sales growth next year.
Fortunately, J&J has three other drugs that are also growing quickly and may do a lot of heavy lifting in 2015.
The first is Stelara, a drug used to treat autoimmune disease including psoriasis and psoriatic arthritis. Those are big indications that have helped propel competing drugs like AbbVie's Humira to billions in sales. Globally, more than 125 million people suffer from psoriasis and treating them has allowed J&J to grow Stelara's sales by 47% in the past year to $543 million in the third quarter.
The second is Invega Sustenna, a long acting treatment for schizophrenia. Schizophrenia is a notoriously tough-to-treat disease with a poor patient adherence rate, so long acting drugs like Invega Sustenna are important to reducing psychotic events. According to J&J, 80% of patients suffer at least one relapse within five years of diagnosis and according to the World Health Organization, there are more than 20 million people globally suffering from the disease. As a result, sales of Invega Sustenna have climbed 30% this year to more than $1.1 billion through the first nine months.
Thirdly, J&J is also enjoying growing demand for its anticoagulant, Xarelto, a next generation drug that is increasingly displacing warfarin, or Coumadin, in post-operative and heart disease patients. Xarelto's sales have surged 85% so far this year to $1 billion as doctors become increasingly comfortable with Xarelto, which requires less monitoring, fewer dose adjustments, and results in fewer brain hemorrhages than warfarin.
Looking ahead
J&J's headwinds aren't insurmountable. It's one of the most prolific investors in R&D and its pipeline is chock-full of intriguing drugs targeting high profile diseases including rheumatoid arthritis, depression, and cancer. In the short term, however, its drugs like Stelara, Invega Sustenna, and Xarelto that investors should be tracking. If they can continue to post robust sales growth, J&J may find that tough comparisons next year are a bit easier to overcome.
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The article 3 Drugs Critical to Johnson & Johnson's Future originally appeared on Fool.com.
Todd Campbell owns shares of Gilead Sciences and Medivation. 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 - 2014 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. | Those are big indications that have helped propel competing drugs like AbbVie's Humira to billions in sales. That success came thanks to guidelines issued in January by the American Association for the Study of Liver Diseases, or AASLD, that recommend using a combination of Olysio and Sovaldi to treat patients unable, or unwilling, to take peg interferon -- a prior generation hepatitis C drug laden with side effects. Schizophrenia is a notoriously tough-to-treat disease with a poor patient adherence rate, so long acting drugs like Invega Sustenna are important to reducing psychotic events. | Those are big indications that have helped propel competing drugs like AbbVie's Humira to billions in sales. Last week, the FDA approved Gilead's second generation hepatitis C drug, Harvoni, and given that Harvoni posts cure rates in the high 90% range, its unlikely doctors will continue prescribing the pricier Olysio plus Sovaldi combination. Thanks to the FDA agreeing to expand Zytiga's label to include pre-chemotherapy prostate cancer patients in 2012, Zytiga's sales have soared. | Those are big indications that have helped propel competing drugs like AbbVie's Humira to billions in sales. Source: Johnson & Johnson Johnson & Johnson is one of the planet's largest companies with operations that stretch from consumer goods to medical devices, but it's drug business growth has led to J&J's climbing sales. But J&J may be facing some headwinds in its drug business that could slow revenue growth next year, including an expected drop in sales for Olyisio, its hepatitis C drug, and increased competition for Zytiga, its prostate cancer drug. | Those are big indications that have helped propel competing drugs like AbbVie's Humira to billions in sales. But J&J may be facing some headwinds in its drug business that could slow revenue growth next year, including an expected drop in sales for Olyisio, its hepatitis C drug, and increased competition for Zytiga, its prostate cancer drug. Source: Johnson & Johnson Overcoming obstacles Since sales of those two drugs total more than $3.5 billion so far this year, J&J may have its work cut out for it if it hopes to post sales growth next year. |
27312.0 | 2014-10-21 00:00:00 UTC | AbbVie Drops Shire Deal, Announces Buyback, Ups Dividend - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvie-drops-shire-deal-announces-buyback-ups-dividend-analyst-blog-2014-10-21 | nan | nan | AbbVie Inc. ( ABBV ) announced that it has jointly agreed with Shire plc ( SHPG ) to terminate the planned acquisition of the latter, which was due to be completed by year end.
We remind investors that in Jul 2014, AbbVie had agreed to acquire Shire for approximately £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share). The deal was valued at approximately £32 billion.
AbbVie decided to terminate the proposed transaction following a thorough review of a notice issued by the U.S. Department of Treasury on Sep 22, 2014 related to the longstanding tax principles associated with tax inversion deals. AbbVie said that the manner in which the U.S. Treasury re-interpreted the tax principles has increased the level of risk and uncertainty that might potentially mitigate the financial benefits associated with such transactions.
With the termination of the deal, AbbVie will be making a break-up fee payment of approximately $1.635 billion to Shire.
AbbVie to Buy Back Shares & Boost Dividend
Along with calling off the Shire acquisition, AbbVie said that it will be buying back shares worth $5 billion and increasing its quarterly cash dividend by nearly 17%.
Our Take
Although AbbVie had not intended to acquire Shire solely for tax reduction purposes, it was a major incentive behind the agreement. The deal would have reduced AbbVie's effective tax rate to approximately 13% by 2016 from the current effective tax rate.
With the termination of the proposed acquisition, AbbVie has forgone the chance to add several multi-million dollar generating products to its portfolio.
AbbVie carries a Zacks Rank #3 (Hold), while Shire holds a Zacks Rank #2 (Buy). Some better-ranked stocks in the health care sector are Lannett Company, Inc. ( LCI ) and Enanta Pharmaceuticals, Inc. ( ENTA ), carrying a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ( ABBV ) announced that it has jointly agreed with Shire plc ( SHPG ) to terminate the planned acquisition of the latter, which was due to be completed by year end. AbbVie said that the manner in which the U.S. Treasury re-interpreted the tax principles has increased the level of risk and uncertainty that might potentially mitigate the financial benefits associated with such transactions. We remind investors that in Jul 2014, AbbVie had agreed to acquire Shire for approximately £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share). | AbbVie carries a Zacks Rank #3 (Hold), while Shire holds a Zacks Rank #2 (Buy). Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ENANTA PHARMA (ENTA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) announced that it has jointly agreed with Shire plc ( SHPG ) to terminate the planned acquisition of the latter, which was due to be completed by year end. | We remind investors that in Jul 2014, AbbVie had agreed to acquire Shire for approximately £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share). AbbVie to Buy Back Shares & Boost Dividend Along with calling off the Shire acquisition, AbbVie said that it will be buying back shares worth $5 billion and increasing its quarterly cash dividend by nearly 17%. Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ENANTA PHARMA (ENTA): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie decided to terminate the proposed transaction following a thorough review of a notice issued by the U.S. Department of Treasury on Sep 22, 2014 related to the longstanding tax principles associated with tax inversion deals. Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report ENANTA PHARMA (ENTA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) announced that it has jointly agreed with Shire plc ( SHPG ) to terminate the planned acquisition of the latter, which was due to be completed by year end. |
27313.0 | 2014-10-21 00:00:00 UTC | Daily Dividend Report: AAPL, ABBV, AEP, WPZ, LLY, SO, NSC, EXC, ETN, NBL, WHR, CCE, LLL, HLS | ABBV | https://www.nasdaq.com/articles/daily-dividend-report-aapl-abbv-aep-wpz-lly-so-nsc-exc-etn-nbl-whr-cce-lll-hls-2014-10-21 | nan | nan | Apple has declared a cash dividend of $.47 per share of the Company's common stock. The dividend is payable on November 13, 2014, to shareholders of record as of the close of business on November 10, 2014.
AbbVie ( ABBV ) declared an increase in the company's quarterly cash dividend from $0.42 per share to $0.49 per share, payable on Feb. 13, 2015 to stockholders of record as of Jan. 15, 2015.
American Electric Power ( AEP ) declared a regular quarterly cash dividend of 53 cents a share on the company's common stock, increasing the dividend 6 percent from the previous 50 cents a share. The dividend is payable Dec. 10, 2014, to shareholders of record as of Nov. 10, 2014.
Williams Partners L.P. ( WPZ ) announced that the regular quarterly cash distribution its common unitholders receive has been increased to $0.9285 per unit. The board of directors of the partnership's general partner has approved the quarterly cash distribution, which is payable on Nov. 7, 2014, to common unitholders of record at the close of business on Oct. 31.
Eli Lilly and Company ( LLY ) has declared a dividend for the fourth quarter of 2014 of $0.49 per share on outstanding common stock. The dividend is payable December 10, 2014 to shareholders of record at the close of business on November 14, 2014.
Southern Company announced a regular quarterly dividend of 52.50 cents per share on the company's common stock, payable Dec. 6, 2014, to shareholders of record as of Nov. 3, 2014.
Norfolk Southern Corporation ( NSC ) announced the regular quarterly dividend of 57 cents per share on its common stock, payable on Dec. 10, to stockholders of record on Nov. 7.
Exelon Corporation declared a regular quarterly dividend of $0.31 per share on Exelon's common stock. The dividend is payable on Dec. 10, 2014, to shareholders of record of Exelon as of 5:00 p.m. New York Time on Nov. 14, 2014.
Eaton (ETN) declared a quarterly dividend of $0.49 per ordinary share payable November 28, 2014 to shareholders of record at the close of business on November 14, 2014.
Noble Energy (NBL) has declared a quarterly cash dividend of 18 cents per common share payable on November 17, 2014 to the shareholders of record at the close of business on November 4, 2014.
Whirlpool Corporation (WHR) declared a quarterly dividend of 75 cents per share on the company's common stock. The dividend is payable December 15, 2014, to stockholders of record at the close of business on November 21, 2014.
The Coca-Cola Enterprises (CCE) declared a regular quarterly dividend of 25 cents per share. The dividend is payable December 4, 2014 to shareowners of record on November 21, 2014.
L-3 Communications (LLL) has declared the company's regular quarterly cash dividend of $0.60 per share, payable on December 15, 2014 to shareholders of record at the close of business on November 17, 2014.
And, HealthSouth Corporation (HLS) has declared a quarterly cash dividend of $0.21 per share on its common stock, payable on January 15, 2015, to holders of record on January 2, 2015.
VIDEO: Daily Dividend Report: AAPL, ABBV, AEP, WPZ, LLY, SO, NSC, EXC, ETN, NBL, WHR, CCE, LLL, HLS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) declared an increase in the company's quarterly cash dividend from $0.42 per share to $0.49 per share, payable on Feb. 13, 2015 to stockholders of record as of Jan. 15, 2015. VIDEO: Daily Dividend Report: AAPL, ABBV, AEP, WPZ, LLY, SO, NSC, EXC, ETN, NBL, WHR, CCE, LLL, HLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The board of directors of the partnership's general partner has approved the quarterly cash distribution, which is payable on Nov. 7, 2014, to common unitholders of record at the close of business on Oct. 31. | VIDEO: Daily Dividend Report: AAPL, ABBV, AEP, WPZ, LLY, SO, NSC, EXC, ETN, NBL, WHR, CCE, LLL, HLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie ( ABBV ) declared an increase in the company's quarterly cash dividend from $0.42 per share to $0.49 per share, payable on Feb. 13, 2015 to stockholders of record as of Jan. 15, 2015. Southern Company announced a regular quarterly dividend of 52.50 cents per share on the company's common stock, payable Dec. 6, 2014, to shareholders of record as of Nov. 3, 2014. | AbbVie ( ABBV ) declared an increase in the company's quarterly cash dividend from $0.42 per share to $0.49 per share, payable on Feb. 13, 2015 to stockholders of record as of Jan. 15, 2015. VIDEO: Daily Dividend Report: AAPL, ABBV, AEP, WPZ, LLY, SO, NSC, EXC, ETN, NBL, WHR, CCE, LLL, HLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Electric Power ( AEP ) declared a regular quarterly cash dividend of 53 cents a share on the company's common stock, increasing the dividend 6 percent from the previous 50 cents a share. | AbbVie ( ABBV ) declared an increase in the company's quarterly cash dividend from $0.42 per share to $0.49 per share, payable on Feb. 13, 2015 to stockholders of record as of Jan. 15, 2015. VIDEO: Daily Dividend Report: AAPL, ABBV, AEP, WPZ, LLY, SO, NSC, EXC, ETN, NBL, WHR, CCE, LLL, HLS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Southern Company announced a regular quarterly dividend of 52.50 cents per share on the company's common stock, payable Dec. 6, 2014, to shareholders of record as of Nov. 3, 2014. |
27314.0 | 2014-10-20 00:00:00 UTC | Will Abbott Labs (ABT) Miss on Earnings This Quarter? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/will-abbott-labs-abt-miss-on-earnings-this-quarter-analyst-blog-2014-10-20 | nan | nan | Abbott Laboratories ( ABT ) is scheduled to report third-quarter 2014 results before the opening bell on Oct 22, 2014.
Last quarter, Abbott Labs reported a positive earnings surprise of 5.9%. On average, Abbott Labs has posted a 10.3% positive surprise in the last four quarters. Let's see how things are shaping up for the third quarter.
Factors to Influence 3Q Results
Abbott Labs is an extremely diversified company with its presence in the diagnostics, nutrition, generics and medical devices markets after having separated its pharmaceutical business into a new company called AbbVie ( ABBV ) in Jan 2013.
However, the adoption of austerity measures by developed markets has been affecting revenues over the past few quarters. Unfavorable currency fluctuations along with the disruption in international pediatric nutrition sales in China also impacted sales and we expect to see an impact on the third quarter as well from the same.
Meanwhile, the company's Established Pharmaceuticals Division continues to be impacted by lower-than-expected growth rates and we expect further deceleration of growth in this segment in 2014.
In our view, all these factors should impact third-quarter results notwithstanding Abbott Labs' positive earnings streak in the last 12 months.
Earnings Whispers?
Our proven model conclusively shows that Abbott Labs is likely to miss earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 to likely have earnings beat. That is not the case here as you will see below.
Zacks ESP : The ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.67%. This is because the Most Accurate Estimate currently stands at 59 cents while the Zacks Consensus Estimate currently stands at 60 cents.
Zacks Rank #4 (Sell) : Abbott Labs currently carries a Zacks Rank #4. 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 to Consider
Here are some stocks in the broader healthcare sector that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Teva Pharmaceutical Industries Ltd. ( TEVA ) has an earnings ESP of +5.8% and carries a Zacks Rank #2 (Buy). It is scheduled to report its third-quarter results on Oct 30.
Ligand Pharmaceuticals Inc. ( LGND ) has an earnings ESP of +30.00% and carries a Zacks Rank #1 (Strong Buy). The company is scheduled to release its third-quarter results on Oct 27.
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ABBOTT LABS (ABT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Factors to Influence 3Q Results Abbott Labs is an extremely diversified company with its presence in the diagnostics, nutrition, generics and medical devices markets after having separated its pharmaceutical business into a new company called AbbVie ( ABBV ) in Jan 2013. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ( ABT ) is scheduled to report third-quarter 2014 results before the opening bell on Oct 22, 2014. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Influence 3Q Results Abbott Labs is an extremely diversified company with its presence in the diagnostics, nutrition, generics and medical devices markets after having separated its pharmaceutical business into a new company called AbbVie ( ABBV ) in Jan 2013. In our view, all these factors should impact third-quarter results notwithstanding Abbott Labs' positive earnings streak in the last 12 months. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Influence 3Q Results Abbott Labs is an extremely diversified company with its presence in the diagnostics, nutrition, generics and medical devices markets after having separated its pharmaceutical business into a new company called AbbVie ( ABBV ) in Jan 2013. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 to likely have earnings beat. | Factors to Influence 3Q Results Abbott Labs is an extremely diversified company with its presence in the diagnostics, nutrition, generics and medical devices markets after having separated its pharmaceutical business into a new company called AbbVie ( ABBV ) in Jan 2013. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, Abbott Labs reported a positive earnings surprise of 5.9%. |
27315.0 | 2014-10-20 00:00:00 UTC | Pre-Market Most Active for Oct 20, 2014 : ABBV, QQQ, IBM, TVIX, AAPL, CRH, BBRY, XIV, FB, BAC, AEG, NVO | ABBV | https://www.nasdaq.com/articles/pre-market-most-active-oct-20-2014-abbv-qqq-ibm-tvix-aapl-crh-bbry-xiv-fb-bac-aeg-nvo-2014 | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 1.87 to 3,817.34. The total Pre-Market volume is currently 4,203,478 shares traded.
The following are the most active stocks for the pre-market session :
AbbVie Inc. ( ABBV ) is unchanged at $53.37, with 980,720 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. The consensus earnings per share forecast is 0.77 per share, which represents a 82 percent increase over the EPS one Year Ago
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.16 at $93.16, with 849,731 shares traded. This represents a 14.52% increase from its 52 Week Low.
International Business Machines Corporation ( IBM ) is -12.39 at $169.66, with 836,425 shares traded. RTT News Reports: IBM Profit Declines, To Sell Microelectronics Business To Globalfoundries
VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is -0.02 at $4.56, with 699,554 shares traded. This represents a 82.4% increase from its 52 Week Low.
Apple Inc. ( AAPL ) is +0.78 at $98.45, with 545,783 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2014. The consensus EPS forecast is $1.3. RTT News Reports: European Markets Fall; SAP Declines On Outlook Cut
CRH PLC ( CRH ) is -0.09 at $21.13, with 505,102 shares traded.
BlackBerry Limited ( BBRY ) is +0.61 at $10.10, with 370,931 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Nov 2014. The consensus EPS forecast is $-0.06. BBRY's current last sale is 109.19% of the target price of $9.25.
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is +0.07 at $28.40, with 321,158 shares traded. This represents a 15.12% increase from its 52 Week Low.
Facebook, Inc. ( FB ) is +0.23 at $76.18, with 295,935 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Bank of America Corporation ( BAC ) is +0.01 at $16.22, with 272,483 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014. The consensus EPS forecast is $0.34. BAC's current last sale is 90.11% of the target price of $18.
Aegon NV ( AEG ) is -0.08 at $7.60, with 224,002 shares traded. AEG's current last sale is 71.43% of the target price of $10.64.
Novo Nordisk A/S ( NVO ) is -0.03 at $44.29, with 89,531 shares traded. NVO's current last sale is 79.47% of the target price of $55.73.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is unchanged at $53.37, with 980,720 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. RTT News Reports: IBM Profit Declines, To Sell Microelectronics Business To Globalfoundries VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is -0.02 at $4.56, with 699,554 shares traded. VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is +0.07 at $28.40, with 321,158 shares traded. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is unchanged at $53.37, with 980,720 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. The consensus earnings per share forecast is 0.77 per share, which represents a 82 percent increase over the EPS one Year Ago PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.16 at $93.16, with 849,731 shares traded. RTT News Reports: IBM Profit Declines, To Sell Microelectronics Business To Globalfoundries VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is -0.02 at $4.56, with 699,554 shares traded. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is unchanged at $53.37, with 980,720 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. The consensus earnings per share forecast is 0.77 per share, which represents a 82 percent increase over the EPS one Year Ago PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.16 at $93.16, with 849,731 shares traded. RTT News Reports: IBM Profit Declines, To Sell Microelectronics Business To Globalfoundries VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is -0.02 at $4.56, with 699,554 shares traded. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is unchanged at $53.37, with 980,720 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. The NASDAQ 100 Pre-Market Indicator is up 1.87 to 3,817.34. RTT News Reports: IBM Profit Declines, To Sell Microelectronics Business To Globalfoundries VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is -0.02 at $4.56, with 699,554 shares traded. |
27316.0 | 2014-10-20 00:00:00 UTC | What Johnson & Johnson Can Tell Us about Gilead Sciences, inc. Stock | ABBV | https://www.nasdaq.com/articles/what-johnson-johnson-can-tell-us-about-gilead-sciences-inc-stock-2014-10-20 | nan | nan | Source: Johnson & Johnson
Johnson & Johnson is one of the planet's biggest drugmakers. Its drugs are used for a variety of diseases, including cancer and autoimmune disorders, but it's J&J's sales of the hepatitis C drug Olysio that are most interesting to Gilead Sciences investors. That's because Olysio is mostly prescribed alongside Sovaldi in hepatitis C patients who are unwilling, or unable, to take peginterferon.
Since Olysio is commonly prescribed with Sovaldi and J&J reported its third quarter earnings last week, let's take a closer look and see what J&J's results may say about Gilead's third quarter performance.
Hand in hand
Olysio has proven a remarkable, if not surprising, success for J&J. The company won FDA approval just days prior to Sovaldi and most, including me, thought its sales would fall flat given that it underperformed Sovaldi during clinical trials. Instead, sales took off following updated guidelines from the American Association for The Study of Liver Diseases, or AASLD, which were released in January.
The AASLD guidance called for the combined use of Sovaldi and Olysio in patients who were either intolerant to peginterferon or who had failed on previous treatment with peginterferon and ribavirin. As a result, sales of Olysio totaled $354 million in the first quarter and surged to $831 million in the second quarter. That strength provided an early (if not precise) glimpse into what investors could expect when Gilead reported its own quarterly results. First quarter Sovaldi sales reached $2.2 billion and second quarter sales soared to $3.5 billion.
Olysio's ability to help forecast the direction of Sovaldi, however, cuts both ways, and results from J&J's third quarter suggest that Gilead's Sovaldi sales may have slid from the second quarter.Olysio notched sales of just $796 million in the third quarter, down 4% from Q2. Olysio's sales fell by 7.5% in America, and that's especially concerning given that Gilead's U.S. Sovaldi sales totaled $3.03 billion during Q2, accounting for 85% of the company's Sovaldi revenue . We won't know for sure until Gilead reports, but I suspect we may see flat revenue from Sovaldi.
Hitting the wall?
Olysio's fall could have been caused by fewer patients needing combination therapy due to tough cases being treated quickly following the issuance of the AASLD guidelines, but it's more likely that the drop-off in demand is tied to doctors warehousing patients during the quarter ahead of new treatments from Gilead, AbbVie , and Bristol-Myers .
Although Sovaldi marks a vast improvement over prior generation drugs, it's still imperfect. Sovaldi's 12 week treatment duration is less than ideal, plus Sovaldi still requires the use of ribavirin for many patients. Given Gilead's next generation drug, Harvoni, reduces the treatment course to as little as eight weeks and finally casts aside peginterferon and ribavirin in virtually all patients, doctors chose to wait for its approval in all but the most serious cases.
That patient warehousing is evident when analyzing Sovaldi's third quarter weekly script data. According to Bloomberg Intelligence data, the number of total Sovaldi prescriptions and the number of new Sovaldi prescriptions both slumped throughout last quarter.
Source: Bloomberg Intelligence data
Harvoni won the FDA go-ahead recently, so it's certainly possible that if Gilead's sales retreat in the third quarter, sales will bounce back sharply in the fourth quarter. But Harvoni's approval likely relegates Olysio to the back burner for most doctors. As a result, J&J will likely face a headwind next year given that year-over-year sales comparisons will be tough. According to J&J management, Olysio added about $0.20 to earnings per share during the first nine months of this year, so J&J will need other fast-growing drugs in its stable to pick up the pace if it hopes to make up for disappearing Olysio sales.
As for Gilead, investors will likely need to temper their expectations for Q3 sales and profit. That may be unwelcome news for investors given they've become accustomed to Sovaldi's blockbuster growth in the first two quarters. Investors will find out for sure when Gilead reports earnings later this month, but in the meantime they shouldn't be surprised to see Gilead's share price swing more wildly between now and then.
One big problem with Gilead
Gilead doesn't pay a dividend. And that's an issue because the smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article What Johnson & Johnson Can Tell Us about Gilead Sciences, inc. Stock 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. Todd owns Gundalow Advisors, LLC. Gundalow's clients do 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 .
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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. | Olysio's fall could have been caused by fewer patients needing combination therapy due to tough cases being treated quickly following the issuance of the AASLD guidelines, but it's more likely that the drop-off in demand is tied to doctors warehousing patients during the quarter ahead of new treatments from Gilead, AbbVie , and Bristol-Myers . That strength provided an early (if not precise) glimpse into what investors could expect when Gilead reported its own quarterly results. Given Gilead's next generation drug, Harvoni, reduces the treatment course to as little as eight weeks and finally casts aside peginterferon and ribavirin in virtually all patients, doctors chose to wait for its approval in all but the most serious cases. | Olysio's fall could have been caused by fewer patients needing combination therapy due to tough cases being treated quickly following the issuance of the AASLD guidelines, but it's more likely that the drop-off in demand is tied to doctors warehousing patients during the quarter ahead of new treatments from Gilead, AbbVie , and Bristol-Myers . The company won FDA approval just days prior to Sovaldi and most, including me, thought its sales would fall flat given that it underperformed Sovaldi during clinical trials. According to Bloomberg Intelligence data, the number of total Sovaldi prescriptions and the number of new Sovaldi prescriptions both slumped throughout last quarter. | Olysio's fall could have been caused by fewer patients needing combination therapy due to tough cases being treated quickly following the issuance of the AASLD guidelines, but it's more likely that the drop-off in demand is tied to doctors warehousing patients during the quarter ahead of new treatments from Gilead, AbbVie , and Bristol-Myers . Since Olysio is commonly prescribed with Sovaldi and J&J reported its third quarter earnings last week, let's take a closer look and see what J&J's results may say about Gilead's third quarter performance. Olysio's ability to help forecast the direction of Sovaldi, however, cuts both ways, and results from J&J's third quarter suggest that Gilead's Sovaldi sales may have slid from the second quarter.Olysio notched sales of just $796 million in the third quarter, down 4% from Q2. | Olysio's fall could have been caused by fewer patients needing combination therapy due to tough cases being treated quickly following the issuance of the AASLD guidelines, but it's more likely that the drop-off in demand is tied to doctors warehousing patients during the quarter ahead of new treatments from Gilead, AbbVie , and Bristol-Myers . Since Olysio is commonly prescribed with Sovaldi and J&J reported its third quarter earnings last week, let's take a closer look and see what J&J's results may say about Gilead's third quarter performance. Olysio's sales fell by 7.5% in America, and that's especially concerning given that Gilead's U.S. Sovaldi sales totaled $3.03 billion during Q2, accounting for 85% of the company's Sovaldi revenue . |
27317.0 | 2014-10-20 00:00:00 UTC | Sector Update: Health Care Stocks Rising; Drug-Makers Said Still Talking Merger, Absent AbbVie | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-stocks-rising-drug-makers-said-still-talking-merger-absent | nan | nan | Top Health Care Stocks
JNJ -0.19%
PFE -0.01%
ABT +0.76%
MRK +0.15%
AMGN +0.90%
Health care stocks higher Monday, with the NYSE Health Care Sector Index climbing more than 0.5% and shares of health care companies in the S&P 500 adding more than 0.7% as a group.
In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south.
NPSP were up about 8.5% at $28.38 each, earlier climbing to a session high of $28.93 a share. The stock has traded within a 52-week range of $21.60 to $39.68 a share, slipping about 7.5% over the past 12 months through Friday's closing bell.
The drug-maker best known for its Gattex lead product for the treatment of adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. Another would-be merger partner is Allergen ( AGN ), with the Paulson & Co. hedge fund voicing support for a deal, according to the Wall Street Journal.
AGN also is being pursued by Valeant Pharmaceuticals (VRX,VRX.TO), so far rejecting its entreaties.
Separately, CBST promoted Robert Perez to chief executive at the drug-maker, effective Jan. 1, 2015. The company's chief operating officer and president replaces Michael Bonney, who plans to retire at the end of the year. CBST shares were ahead about 1.8% at $67.13 each this afternoon.
SHPG, meanwhile, said James Bowling has resigned as interim chief financial officer, effective at the end of Q1 of 2015. Its shares were rising about 3.2% at $184.93 each in mid-day trade.
In other sector news,
(+) NLNK, (+18.1%) Partners with Roche Holdings (RHHBY) to develop its cancer immunotherapy drug, starting NLNK on the road for up to $1 bln in milestone payments.
(-) IBIO, (-19.6%) Dallas judge lifts 21-day quarantine for 43 people who came into contact with Ebola patient Thomas Eric Duncan prior to his hospitalization, with none of the people showing any symptoms.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. The drug-maker best known for its Gattex lead product for the treatment of adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. Another would-be merger partner is Allergen ( AGN ), with the Paulson & Co. hedge fund voicing support for a deal, according to the Wall Street Journal. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. Health care stocks higher Monday, with the NYSE Health Care Sector Index climbing more than 0.5% and shares of health care companies in the S&P 500 adding more than 0.7% as a group. In other sector news, (+) NLNK, (+18.1%) Partners with Roche Holdings (RHHBY) to develop its cancer immunotherapy drug, starting NLNK on the road for up to $1 bln in milestone payments. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. Health care stocks higher Monday, with the NYSE Health Care Sector Index climbing more than 0.5% and shares of health care companies in the S&P 500 adding more than 0.7% as a group. The drug-maker best known for its Gattex lead product for the treatment of adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. The drug-maker best known for its Gattex lead product for the treatment of adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. Separately, CBST promoted Robert Perez to chief executive at the drug-maker, effective Jan. 1, 2015. |
27318.0 | 2014-10-20 00:00:00 UTC | After Hours Most Active for Oct 20, 2014 : AAPL, INTC, QQQ, BSBR, HAL, ANGO, JPM, NCT, KEY, ABBV, FOXA, MRVL | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-oct-20-2014-aapl-intc-qqq-bsbr-hal-ango-jpm-nct-key-abbv-foxa-mrvl | nan | nan | The NASDAQ 100 After Hours Indicator is up 6.48 to 3,876.56. The total After hours volume is currently 31,229,096 shares traded.
The following are the most active stocks for the after hours session :
Apple Inc. ( AAPL ) is +0.82 at $100.58, with 4,473,006 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2014. The consensus EPS forecast is $1.3. RTT News Reports: Apple Q4 Results Top Estimates
Intel Corporation ( INTC ) is +0.06 at $31.64, with 2,692,292 shares traded. Over the last four weeks they have had 15 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014. The consensus EPS forecast is $0.66. INTC's current last sale is 90.4% of the target price of $35.
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.29 at $94.68, with 2,273,847 shares traded. This represents a 16.39% increase from its 52 Week Low.
Banco Santander Brasil SA ( BSBR ) is unchanged at $6.16, with 1,752,028 shares traded. BSBR's current last sale is 80.52% of the target price of $7.65.
Halliburton Company ( HAL ) is +0.08 at $53.00, with 1,371,621 shares traded. RTT News Reports: Halliburton Q3 Results Top Estimates; Boosts Dividend 20%
AngioDynamics, Inc. ( ANGO ) is +0.0019 at $15.60, with 1,347,894 shares traded. As reported in the last short interest update the days to cover for ANGO is 9.214196; this calculation is based on the average trading volume of the stock.
J P Morgan Chase & Co ( JPM ) is unchanged at $56.63, with 1,121,713 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014. The consensus EPS forecast is $1.4. As reported by Zacks, the current mean recommendation for JPM is in the "buy range".
Newcastle Investment Corporation ( NCT ) is unchanged at $12.15, with 1,000,000 shares traded. NCT's current last sale is 64.8% of the target price of $18.75.
KeyCorp ( KEY ) is unchanged at $12.50, with 978,200 shares traded. KEY's current last sale is 83.33% of the target price of $15.
AbbVie Inc. ( ABBV ) is unchanged at $54.41, with 964,195 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. The consensus earnings per share forecast is 0.77 per share, which represents a 82 percent increase over the EPS one Year Ago
Twenty-First Century Fox, Inc. ( FOXA ) is unchanged at $33.04, with 627,662 shares traded. As reported by Zacks, the current mean recommendation for FOXA is in the "buy range".
Marvell Technology Group Ltd. ( MRVL ) is +0.04 at $12.51, with 603,627 shares traded. MRVL's current last sale is 73.59% of the target price of $17.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. ( ABBV ) is unchanged at $54.41, with 964,195 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. RTT News Reports: Apple Q4 Results Top Estimates Intel Corporation ( INTC ) is +0.06 at $31.64, with 2,692,292 shares traded. RTT News Reports: Halliburton Q3 Results Top Estimates; Boosts Dividend 20% AngioDynamics, Inc. ( ANGO ) is +0.0019 at $15.60, with 1,347,894 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $54.41, with 964,195 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. RTT News Reports: Apple Q4 Results Top Estimates Intel Corporation ( INTC ) is +0.06 at $31.64, with 2,692,292 shares traded. Over the last four weeks they have had 15 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2014. | AbbVie Inc. ( ABBV ) is unchanged at $54.41, with 964,195 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. RTT News Reports: Apple Q4 Results Top Estimates Intel Corporation ( INTC ) is +0.06 at $31.64, with 2,692,292 shares traded. The consensus earnings per share forecast is 0.77 per share, which represents a 82 percent increase over the EPS one Year Ago Twenty-First Century Fox, Inc. ( FOXA ) is unchanged at $33.04, with 627,662 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $54.41, with 964,195 shares traded.ABBV is scheduled to provide an earnings report on 10/24/2014, for the fiscal quarter ending Sep2014. The NASDAQ 100 After Hours Indicator is up 6.48 to 3,876.56. The consensus earnings per share forecast is 0.77 per share, which represents a 82 percent increase over the EPS one Year Ago Twenty-First Century Fox, Inc. ( FOXA ) is unchanged at $33.04, with 627,662 shares traded. |
27319.0 | 2014-10-20 00:00:00 UTC | Sector Update: Health Care | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-2014-10-20 | nan | nan | Health care stocks are higher Monday, with the NYSE Health Care Sector Index climbing more than 0.5% and shares of health care companies in the S&P 500 adding more than 0.7% as a group.
In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south.
NPSP were up about 8.5% at $28.38 each, earlier climbing to a session high of $28.93 a share. The stock has traded within a 52-week range of $21.60 to $39.68 a share, slipping about 7.5% over the past 12 months through Friday's closing bell.
The drug-maker best known for its Gattex lead product to treat adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. Another would-be merger partner is Allergen ( AGN ), with the Paulson & Co. hedge fund voicing support for a deal, according to the Wall Street Journal.
AGN also is being pursued by Valeant Pharmaceuticals (VRX,VRX.TO), but has so far rejected its entreaties.
Separately, CBST promoted Robert Perez to chief executive at the drug-maker, effective Jan. 1, 2015. The company's chief operating officer and president replaces Michael Bonney, who plans to retire at the end of the year. CBST shares were ahead about 1.8% at $67.13 each this afternoon.
SHPG, meanwhile, said James Bowling has resigned as interim chief financial officer, effective at the end of Q1 of 2015. Its shares were rising about 3.2% at $184.93 each in mid-day trade.
In other sector news,
(+) NLNK, (+18.1%) Partners with Roche Holdings (RHHBY) to develop its cancer immunotherapy drug, starting NLNK on the road for up to $1 bln in milestone payments.
(-) IBIO, (-19.6%) Dallas judge lifts 21-day quarantine for 43 people who came into contact with Ebola patient Thomas Eric Duncan prior to his hospitalization, with none of the people showing any symptoms.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. The drug-maker best known for its Gattex lead product to treat adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. Another would-be merger partner is Allergen ( AGN ), with the Paulson & Co. hedge fund voicing support for a deal, according to the Wall Street Journal. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. Health care stocks are higher Monday, with the NYSE Health Care Sector Index climbing more than 0.5% and shares of health care companies in the S&P 500 adding more than 0.7% as a group. In other sector news, (+) NLNK, (+18.1%) Partners with Roche Holdings (RHHBY) to develop its cancer immunotherapy drug, starting NLNK on the road for up to $1 bln in milestone payments. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. Health care stocks are higher Monday, with the NYSE Health Care Sector Index climbing more than 0.5% and shares of health care companies in the S&P 500 adding more than 0.7% as a group. The drug-maker best known for its Gattex lead product to treat adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. | In company news, NPS Pharmaceuticals ( NPSP ) rallied Monday following reports Irish drugmaker Shire plc ( SHPG ) may be considering another round of talks about a possible merger, just days after its proposed deal with Abbvie ( ABBV ) went south. The drug-maker best known for its Gattex lead product to treat adult patients with short bowel syndrome and Cubist Pharmaceuticals ( CBST ) are the two most likely merger partners for SHPG, according to reports. Separately, CBST promoted Robert Perez to chief executive at the drug-maker, effective Jan. 1, 2015. |
27320.0 | 2014-10-20 00:00:00 UTC | Monday's ETF with Unusual Volume: IYH | ABBV | https://www.nasdaq.com/articles/mondays-etf-unusual-volume-iyh-2014-10-20 | nan | nan | The iShares U.S. Healthcare ETF ( IYH ) is seeing unusually high volume in afternoon trading Monday, with over 2.9 million shares traded versus three month average volume of about 351,000. Shares of IYH were up about 0.6% on the day.
Components of that ETF with the highest volume on Monday were Pfizer ( PFE ), trading off about 0.5% with over 18.7 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 0.6% on volume of over 7.1 million shares. NPS Pharmaceuticals ( NPSP ) is the component faring the best Monday, higher by about 10.5% on the day, while PDL Biopharma ( PDLI ) is lagging other components of the iShares U.S. Healthcare ETF, trading lower by about 2.9%.
VIDEO: Monday's ETF with Unusual Volume: IYH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Monday were Pfizer ( PFE ), trading off about 0.5% with over 18.7 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 0.6% on volume of over 7.1 million shares. The iShares U.S. Healthcare ETF ( IYH ) is seeing unusually high volume in afternoon trading Monday, with over 2.9 million shares traded versus three month average volume of about 351,000. NPS Pharmaceuticals ( NPSP ) is the component faring the best Monday, higher by about 10.5% on the day, while PDL Biopharma ( PDLI ) is lagging other components of the iShares U.S. Healthcare ETF, trading lower by about 2.9%. | Components of that ETF with the highest volume on Monday were Pfizer ( PFE ), trading off about 0.5% with over 18.7 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 0.6% on volume of over 7.1 million shares. The iShares U.S. Healthcare ETF ( IYH ) is seeing unusually high volume in afternoon trading Monday, with over 2.9 million shares traded versus three month average volume of about 351,000. VIDEO: Monday's ETF with Unusual Volume: IYH 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 Monday were Pfizer ( PFE ), trading off about 0.5% with over 18.7 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 0.6% on volume of over 7.1 million shares. The iShares U.S. Healthcare ETF ( IYH ) is seeing unusually high volume in afternoon trading Monday, with over 2.9 million shares traded versus three month average volume of about 351,000. VIDEO: Monday's ETF with Unusual Volume: IYH 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 Monday were Pfizer ( PFE ), trading off about 0.5% with over 18.7 million shares changing hands so far this session, and Abbvie ( ABBV ), up about 0.6% on volume of over 7.1 million shares. The iShares U.S. Healthcare ETF ( IYH ) is seeing unusually high volume in afternoon trading Monday, with over 2.9 million shares traded versus three month average volume of about 351,000. Shares of IYH were up about 0.6% on the day. |
27321.0 | 2014-10-18 00:00:00 UTC | Could This Game-Changing Drug Deliver $10 Billion in Sales Within Its First Year? | ABBV | https://www.nasdaq.com/articles/could-game-changing-drug-deliver-10-billion-sales-within-its-first-year-2014-10-18 | nan | nan | Source: Flickr user Sean MacEntee.
The drug development process for biopharmaceutical companies is long, arduous, costly, and it rarely ends with success. According to MedScape, just one out of every 5,000-10,000 drugs being tested in preclinical trials will ever make it to pharmacy shelves. That's a pretty poor success rate , but the drug development guidelines put in place by the Food and Drug Administration are there for a reason: to ensure patients get life-changing products that are both safe and effective.
A handful of big hits
Of course, if a drug winds up being approved by the FDA the rewards can be enormous. Pfizer 's cholesterol-fighting drug Lipitor is the world's best-selling drug of all time, raking in $131 billion in cumulative sales according to FierceBiotech's data on the drug from a few years ago. Despite being off patent in the U.S., Lipitor continues to find success overseas and in other combinations within the U.S., further adding to its all-time sales lead.
Source: Flickr user Damian Gadal.
AbbVie 's anti-inflammatory Humira is another great example. Humira is currently approved in eight separate indications by the FDA, spanning back to its first approval all the way in 1999. This year, Humira is on pace for as much as $12 billion in global sales after crossing $10 billion in sales last year.
But, what if I said there was a drug out there which also had $10 billion-plus annual sales potential and that it wouldn't take a decade or longer to reach that $10 billion. In fact, it may not even take a year to reach $10 billion in sales. I'm talking about a drug that could very easily become the quickest ever to ramp up to blockbuster status. Sound intriguing? If so, then feast your eyes upon Gilead Sciences latest FDA approved drug to treat hepatitis C, Harvoni.
Could this drug deliver $10 billion in sales in its first year?
Late last week Gilead Sciences announced that the FDA had approved its hepatitis C "cocktail" drug Harvoni, a combination of FDA-approved Sovaldi with ledipasvir into a once-daily tablet.
Source: Gilead Sciences.
Right now you might be wondering why this approval is such a big deal in the first place if Gilead already has Sovaldi approved to treat hepatitis C. The answer to that question is that Sovaldi was approved to be used without interferon, which comes with nasty flu-like side effects for most patients, in genotype 2 and 3 patients, but still had to be taken with interferon in genotype 1 patients. The ability to ditch interferon in the administration of the drug was Sovaldi's great selling point, but genotype 1 is by far the most common form of hepatitis C.
Enter Harvoni, which as a combination tablet can treat genotype 1 patients without the need for either interferon or a ribavirin. In other words, many of the adverse effects of treating hepatitis C have been thrown out the window.
But, Harvoni is more than just a fancy new tablet that will lessen treatment side effects. In the three clinical studies that led to its approval, it was noted that the sustained virologic response after 12 weeks of treatment, or SVR12, was an astounding 94% to 99% in the ribavirin-free arms. To put it another way, Harvoni is curing in the neighborhood of 19 out of every 20 genotype 1 patients, and genotype 1 is the most difficult to treat.
Furthermore, Harvoni can be administered in some instances to treatment-naïve patients with or without cirrhosis of the liver over the course of just eight weeks as opposed to 12 weeks. This means potentially quicker treatment times, faster results, and of course less cost to the patient.
Source: Flickr user Ano Lobb.
Though, it should be noted that Harvoni will run $1,125 per pill, up 12.5% from the $1,000 per-pill price for Sovaldi that's had patients, insurers, and Congress up in arms. For those patients that are treatment-experienced and have cirrhosis of the liver, they'll still be facing a standard 24-week treatment course, or a whopping $189,000 total cost for treatment.
So how exactly is Harvoni going to reach $10 billion in sales in four quarters or less? Just take a closer look at Sovaldi's track record for inspiration. Following its approval in Dec. 2013, Sovaldi managed to rack up $2.27 billion in Sovaldi sales in the first quarter, and an additional $3.48 billion in sales in the second quarter. Through six months Sovaldi was on pace to give Humira a run for its money with $5.75 billion in cumulative sales.
The kicker is that Harvoni is a better drug than Sovaldi will ever be, making it the clear choice to garner the bulk of hepatitis C sales. This means, at least until new competition emerges from the likes of AbbVie with its direct-acting antiviral (DAA) combo drug, that Johnson & Johnson 's Olysio, which has brought in around $2 billion in sales this year, and Gilead's own Sovaldi are likely to see their sales slump in rapid fashion as Harvoni ramps up.
Keep this in mind
Of course, investors would be wise to keep two factors in mind. First, hepatitis C competition is only going to increase, with AbbVie expected to gain approval for its DAA soon and Merck pushing forward with its combo drugs, MK-5172 and MK-8472, in clinical studies. Further, Merck's $3.85 billion purchase of Idenix could yield a number of unique or combination therapies involving Idenix's nucleotide-based drugs.
Secondly, I could be wrong. I've been wrong before and I'll be wrong at some point again. Only you are in the driver seat of your investment portfolio, which means you have to make the decision as to whether Gilead Sciences can trek higher from here based on sales of Harvoni. A mix of competition, Congressional pricing pressures, or even too many hepatitis C patients taking the drug for eight weeks instead of 12 could adversely impact its sales potential.
If you were to ask me, however, I believe you're about to witness something truly special with Harvoni.
If you think Harvoni is impressive, then you'll be floored by the growth potential of this revolutionary new product!
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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Could This Game-Changing Drug Deliver $10 Billion in Sales Within Its First Year? 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 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 .
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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. | First, hepatitis C competition is only going to increase, with AbbVie expected to gain approval for its DAA soon and Merck pushing forward with its combo drugs, MK-5172 and MK-8472, in clinical studies. AbbVie 's anti-inflammatory Humira is another great example. This means, at least until new competition emerges from the likes of AbbVie with its direct-acting antiviral (DAA) combo drug, that Johnson & Johnson 's Olysio, which has brought in around $2 billion in sales this year, and Gilead's own Sovaldi are likely to see their sales slump in rapid fashion as Harvoni ramps up. | AbbVie 's anti-inflammatory Humira is another great example. This means, at least until new competition emerges from the likes of AbbVie with its direct-acting antiviral (DAA) combo drug, that Johnson & Johnson 's Olysio, which has brought in around $2 billion in sales this year, and Gilead's own Sovaldi are likely to see their sales slump in rapid fashion as Harvoni ramps up. First, hepatitis C competition is only going to increase, with AbbVie expected to gain approval for its DAA soon and Merck pushing forward with its combo drugs, MK-5172 and MK-8472, in clinical studies. | This means, at least until new competition emerges from the likes of AbbVie with its direct-acting antiviral (DAA) combo drug, that Johnson & Johnson 's Olysio, which has brought in around $2 billion in sales this year, and Gilead's own Sovaldi are likely to see their sales slump in rapid fashion as Harvoni ramps up. AbbVie 's anti-inflammatory Humira is another great example. First, hepatitis C competition is only going to increase, with AbbVie expected to gain approval for its DAA soon and Merck pushing forward with its combo drugs, MK-5172 and MK-8472, in clinical studies. | AbbVie 's anti-inflammatory Humira is another great example. This means, at least until new competition emerges from the likes of AbbVie with its direct-acting antiviral (DAA) combo drug, that Johnson & Johnson 's Olysio, which has brought in around $2 billion in sales this year, and Gilead's own Sovaldi are likely to see their sales slump in rapid fashion as Harvoni ramps up. First, hepatitis C competition is only going to increase, with AbbVie expected to gain approval for its DAA soon and Merck pushing forward with its combo drugs, MK-5172 and MK-8472, in clinical studies. |
27322.0 | 2014-10-17 00:00:00 UTC | Infinity Pharmaceuticals' Duvelisib Fails in Mid-Stage Study - Analyst Blog | ABBV | https://www.nasdaq.com/articles/infinity-pharmaceuticals-duvelisib-fails-in-mid-stage-study-analyst-blog-2014-10-17 | nan | nan | I nfinity Pharmaceuticals, Inc. ( INFI ) announced disappointing results from a phase IIa study on duvelisib (IPI-145). The candidate is being developed for the treatment of patients suffering from mild allergic asthma.
Results from the randomized, double-blind, placebo-controlled, cross-over study revealed that duvelisib failed to meet the primary endpoint of a statistically significant improvement in the maximum early-phase or late-phase asthmatic response. However, the candidate was well tolerated and successful in meeting other secondary endpoints of the study.
Duvelisib is an important candidate at Infinity Pharma. We are disappointed by the failure of the candidate to meet the study's primary endpoint.
Apart from allergic asthma, duvelisib is also being developed for the treatment of rheumatoid arthritis in the phase II ASPIRA study. The study is evaluating duvelisib with background methotrexate in patients suffering from moderate-to-severe rheumatoid arthritis. Infinity Pharma intends to report data from the study by year end.
Disappointing results from the other study as well will weigh heavily on the stock. We expect investor focus to remain on the candidate going forward.
Infinity Pharma's shares skyrocketed last month when the company announced that it inked a collaboration agreement with AbbVie Inc. ( ABBV ) for the development and commercialization of duvelisib. AbbVie made an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? ).
Infinity Pharma currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Medivation, Inc. ( MDVN ) and Emergent BioSolutions, Inc. ( EBS ). Both the stocks hold 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. | Infinity Pharma's shares skyrocketed last month when the company announced that it inked a collaboration agreement with AbbVie Inc. ( ABBV ) for the development and commercialization of duvelisib. AbbVie made an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. Infinity Pharma's shares skyrocketed last month when the company announced that it inked a collaboration agreement with AbbVie Inc. ( ABBV ) for the development and commercialization of duvelisib. AbbVie made an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? | AbbVie made an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. Infinity Pharma's shares skyrocketed last month when the company announced that it inked a collaboration agreement with AbbVie Inc. ( ABBV ) for the development and commercialization of duvelisib. | Infinity Pharma's shares skyrocketed last month when the company announced that it inked a collaboration agreement with AbbVie Inc. ( ABBV ) for the development and commercialization of duvelisib. AbbVie made an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? Click to get this free report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. |
27323.0 | 2014-10-17 00:00:00 UTC | Gilead's Harvoni Receives Notice of Compliance from Canada - Analyst Blog | ABBV | https://www.nasdaq.com/articles/gileads-harvoni-receives-notice-of-compliance-from-canada-analyst-blog-2014-10-17 | nan | nan | Good news flowed in at Gilead Sciences ( GILD ) when Health Canada, the federal department responsible for the maintenance and improvement of health of Canadians, issued a Notice of Compliance to the biopharmaceutical major on its hepatitis C virus (HCV) combination treatment, Harvoni. Treatment with the HCV combination not only reduces the duration of therapy but also eliminates the need for interferon and ribavirin administration, both being associated with serious side effects.
Harvoni, a once-daily combination treatment of Gilead's highly successful HCV drug Sovaldi (sofosbuvir: 400 mg) and ledipasvir (a NS5A inhibitor: 90 mg), has been issued the notice for treating adults affected with HCV genotype 1 infection. Such notices are issued by Health Canada to the manufacturing company (in this case, Gilead) after a satisfactory review of the submission.
We note that Gilead had filed the application - New Drug Submission - for Harvoni in Canada on Mar 19, 2014. The application was reviewed on a priority basis. This positive move by Health Canada came close on the heels of the all oral HCV combination therapy gaining FDA approval (read more: Gilead's All-Oral Combo HCV Drug Harvoni Cleared by FDA ).
The EU approval of Harvoni is on track with the European Medicines Agency's Committee for Medicinal Products for Human Use recommending the same last month. Gilead is also looking to get the combination therapy approved in Australia and New Zealand. We expect investor focus to remain on updates regarding the cocktail therapy, going forward. AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved.
Gilead carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care space include Medivation ( MDVN ) and Emergent BioSolutions ( EBS ), each 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. | AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. Treatment with the HCV combination not only reduces the duration of therapy but also eliminates the need for interferon and ribavirin administration, both being associated with serious side effects. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved. This positive move by Health Canada came close on the heels of the all oral HCV combination therapy gaining FDA approval (read more: Gilead's All-Oral Combo HCV Drug Harvoni Cleared by FDA ). | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved. Good news flowed in at Gilead Sciences ( GILD ) when Health Canada, the federal department responsible for the maintenance and improvement of health of Canadians, issued a Notice of Compliance to the biopharmaceutical major on its hepatitis C virus (HCV) combination treatment, Harvoni. | AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here. This positive move by Health Canada came close on the heels of the all oral HCV combination therapy gaining FDA approval (read more: Gilead's All-Oral Combo HCV Drug Harvoni Cleared by FDA ). |
27324.0 | 2014-10-16 00:00:00 UTC | European Shares Plunge as Crisis Fears Return Amid Faltering Recovery | ABBV | https://www.nasdaq.com/articles/european-shares-plunge-crisis-fears-return-amid-faltering-recovery-2014-10-16 | nan | nan | European shares led by banks including Societe General AG (GLE.PA) plunged to their lowest level in a year on Thursday as concern mounted that the Eurozone's weakest economies will fall victim to a fresh crisis. The euro lost ground as peripheral bonds from Greece to Spain were hammered.
The Stoxx Europe 600 Index was recently down more than 2% for an eighth day of declines.
Banks were the chief losers amid unclarity over the extent of the European Central Bank's bond-buying plan and ahead of the ECB's stress test results, due out Oct. 26.
France's Societe Generale was down 5.5%, Germany's Deutsche Bank AG (DBK.DE) lost 4.7% and Italy's biggest lender UniCredit SpA (UCG.MI) fell 4%.
U.K. pharmaceutical company Shire Plc (SHP.L) was down 11%, a second plunge in as many days, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company.
The euro, nudged down by better-than-expected U.S. jobless claims, lost 0.7% to 1.2749 against the U.S. dollar.
Peripheral bonds lost big. Greek 10-year yields plummeted on news the government wants to exit its bailout program, with the yield rising more than 100 basis points to almost 9%. Yields jumped 22 and 16 basis points each on Italian and Spanish 10-year debt, to 2.64% and 2.26% respectively. The yield rose only 1 basis point on German 10-year bunds to 0.76% as investors sought refuge in their comparative security.
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. | U.K. pharmaceutical company Shire Plc (SHP.L) was down 11%, a second plunge in as many days, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. European shares led by banks including Societe General AG (GLE.PA) plunged to their lowest level in a year on Thursday as concern mounted that the Eurozone's weakest economies will fall victim to a fresh crisis. France's Societe Generale was down 5.5%, Germany's Deutsche Bank AG (DBK.DE) lost 4.7% and Italy's biggest lender UniCredit SpA (UCG.MI) fell 4%. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. U.K. pharmaceutical company Shire Plc (SHP.L) was down 11%, a second plunge in as many days, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. European shares led by banks including Societe General AG (GLE.PA) plunged to their lowest level in a year on Thursday as concern mounted that the Eurozone's weakest economies will fall victim to a fresh crisis. | U.K. pharmaceutical company Shire Plc (SHP.L) was down 11%, a second plunge in as many days, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. European shares led by banks including Societe General AG (GLE.PA) plunged to their lowest level in a year on Thursday as concern mounted that the Eurozone's weakest economies will fall victim to a fresh crisis. France's Societe Generale was down 5.5%, Germany's Deutsche Bank AG (DBK.DE) lost 4.7% and Italy's biggest lender UniCredit SpA (UCG.MI) fell 4%. | U.K. pharmaceutical company Shire Plc (SHP.L) was down 11%, a second plunge in as many days, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. European shares led by banks including Societe General AG (GLE.PA) plunged to their lowest level in a year on Thursday as concern mounted that the Eurozone's weakest economies will fall victim to a fresh crisis. The euro lost ground as peripheral bonds from Greece to Spain were hammered. |
27325.0 | 2014-10-16 00:00:00 UTC | Shire (SHPG) Shares Crash on Concerns Over AbbVie Buyout - Analyst Blog | ABBV | https://www.nasdaq.com/articles/shire-shpg-shares-crash-on-concerns-over-abbvie-buyout-analyst-blog-2014-10-16 | nan | nan | Shares of Shire ( SHPG ) plunged 30.3% after AbbVie ( ABBV ) announced that its board has decided to reconsider the acquisition offer for the former.
AbbVie informed Shire that its board will meet on Oct 20 to decide whether to withdraw or modify its proposal in light of the impact of the U.S. Treasury Notice dated Sep 22, 2014.
We remind investors that AbbVie had agreed to acquire Shire for approximately £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share).The acquisition would also provide Shire shareholders a 25% stake in the merged entity.
We note that AbbVie will be obligated to make a break-fee payment equal to 3% of the total deal value (approximately $1.6 billion) if the company goes back on its recommendation and subsequently terminates the deal. Meanwhile, if AbbVie's shareholders vote against the takeover, the company will pay Shire at least $500 million (up to 1% of the deal value) to compensate for costs, losses and expenses related to the deal.
Presently, Shire holds a strong position in the Attention deficit and hyperactivity disorder (ADHD) market driven by key drugs like Vyvanse, and Intuniv - Vyvanse being the key growth driver.
We note that the deal would have reduced AbbVie's effective tax rate to approximately 13% by 2016 from the current effective tax rate in the early twenties. The acquisition would have also boosted AbbVie's portfolio and reduced its dependence on Humira.
We expect investor focus on further updates regarding the offer.
AbbVie carries a Zacks Rank #3 (Hold) while Shire holds a Zacks Rank #1 (Strong Buy). Currently, Lannett Inc. ( LCI ) and Medivation Inc. ( MDVN ) are two other well-ranked stocks in the health care sector holding the same Zacks Rank as Shire.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Shire ( SHPG ) plunged 30.3% after AbbVie ( ABBV ) announced that its board has decided to reconsider the acquisition offer for the former. AbbVie informed Shire that its board will meet on Oct 20 to decide whether to withdraw or modify its proposal in light of the impact of the U.S. Treasury Notice dated Sep 22, 2014. We remind investors that AbbVie had agreed to acquire Shire for approximately £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share).The acquisition would also provide Shire shareholders a 25% stake in the merged entity. | AbbVie carries a Zacks Rank #3 (Hold) while Shire holds a Zacks Rank #1 (Strong Buy). Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Shire ( SHPG ) plunged 30.3% after AbbVie ( ABBV ) announced that its board has decided to reconsider the acquisition offer for the former. | We remind investors that AbbVie had agreed to acquire Shire for approximately £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share).The acquisition would also provide Shire shareholders a 25% stake in the merged entity. AbbVie carries a Zacks Rank #3 (Hold) while Shire holds a Zacks Rank #1 (Strong Buy). Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report To read this article on Zacks.com click here. | Shares of Shire ( SHPG ) plunged 30.3% after AbbVie ( ABBV ) announced that its board has decided to reconsider the acquisition offer for the former. We note that AbbVie will be obligated to make a break-fee payment equal to 3% of the total deal value (approximately $1.6 billion) if the company goes back on its recommendation and subsequently terminates the deal. AbbVie carries a Zacks Rank #3 (Hold) while Shire holds a Zacks Rank #1 (Strong Buy). |
27326.0 | 2014-10-16 00:00:00 UTC | Update: European Shares Decline as Crisis Fears Return Amid Faltering Recovery | ABBV | https://www.nasdaq.com/articles/update-european-shares-decline-crisis-fears-return-amid-faltering-recovery-2014-10-16 | nan | nan | European shares closed down on Thursday even after recovering from a one-year low amid concern about the region's slowing economy. The euro weakened and bonds from Greece to Germany declined.
The Stoxx Europe 600 Index lost 0.35% for an eighth straight drop, after recouping from an earlier 2.9% fall to its lowest in a year. The rebound came after St. Louis Federal Reserve Bank President James Bullard said the U.S. central bank ought to consider postponing the end of its bond purchases, according to an interview with Bloomberg.
While they regained some lost ground, banks were among the chief losers amid unclarity over the extent of the European Central Bank's bond-buying plan and concern about the ECB's bank stress test results, due out Oct. 26.
Italy's biggest lender UniCredit SpA (UCG.MI) fell 3.2%, Germany's Deutsche Bank AG (DBK.DE) lost 3% and France's Societe Generale was down 2.1%.
U.K. pharmaceutical company Shire Plc (SHP.L) shed 7.3%, a second daily plunge, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company.
The euro, nudged down by better-than-expected U.S. jobless claims, lost 0.29% to 1.2801 against the U.S. dollar.
Greek 10-year yields plummeted on news the government wants to exit its bailout program, with the yield rising more than 100 basis points to almost 9%. Yields jumped 14 and 10 basis points each on Italian and Spanish 10-year debt, to 2.56% and 2.21% respectively. The yield rose 7 basis points on German 10-year bunds to 0.83% and 11 basis points on French 10-year debt to 1.25%.
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. | U.K. pharmaceutical company Shire Plc (SHP.L) shed 7.3%, a second daily plunge, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. European shares closed down on Thursday even after recovering from a one-year low amid concern about the region's slowing economy. The Stoxx Europe 600 Index lost 0.35% for an eighth straight drop, after recouping from an earlier 2.9% fall to its lowest in a year. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. U.K. pharmaceutical company Shire Plc (SHP.L) shed 7.3%, a second daily plunge, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. While they regained some lost ground, banks were among the chief losers amid unclarity over the extent of the European Central Bank's bond-buying plan and concern about the ECB's bank stress test results, due out Oct. 26. | U.K. pharmaceutical company Shire Plc (SHP.L) shed 7.3%, a second daily plunge, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. The rebound came after St. Louis Federal Reserve Bank President James Bullard said the U.S. central bank ought to consider postponing the end of its bond purchases, according to an interview with Bloomberg. While they regained some lost ground, banks were among the chief losers amid unclarity over the extent of the European Central Bank's bond-buying plan and concern about the ECB's bank stress test results, due out Oct. 26. | U.K. pharmaceutical company Shire Plc (SHP.L) shed 7.3%, a second daily plunge, after AbbVie Inc.'s ( ABBV ) board recommended not proceeding with a US$52 billion takeover of the London-based company. The euro weakened and bonds from Greece to Germany declined. The rebound came after St. Louis Federal Reserve Bank President James Bullard said the U.S. central bank ought to consider postponing the end of its bond purchases, according to an interview with Bloomberg. |
27327.0 | 2014-10-16 00:00:00 UTC | AbbVie Inc to Shire: It's Not You, It's My Country | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shire-its-not-you-its-my-country-2014-10-16 | nan | nan | In perhaps the most costly prenup in history, AbbVie looks like it will have to pay Shire $1.635 billion to break their engagement. After previously agreeing to the deal, AbbVie's board of directors recommended that shareholders not approve the transaction. The board can't actually break the agreement with Shire, but assuming shareholders follow the board's advice, the deal won't go through, and AbbVie will have to pay the breakup fee.
Why the change of heart? Blame it on the duo's third wheel, the U.S. Treasury Department. Last month, the agency issued new rules that tightened the restrictions on how companies could perform tax inversions, and puts restrictions on how their off-shore cash can be used without paying taxes.
One of the attractions to Shire was that AbbVie could move its headquarters to Ireland to take advantage of the lower tax rate -- a so-called tax inversion. After the transaction, AbbVie would eventually be able to lower its tax rate to 13%, half of what it is now.
Shire is based in Ireland after moving from the U.K. a few years ago to take advantage of the lower tax rate. U.S. companies can't just up and move to take advantage of a lower tax rate; they have to buy a company that already resides there that's large enough that at least 20% of the combined company is owned by the foreign shareholders.
Changing valuation
The lower tax rate wasn't the only thing that attracted AbbVie to Shire. In fact, during a call with analysts, Rick Gonzalez, AbbVie's Chairman and CEO, claimed the tax benefit wasn't even the primary reason: "What I would tell you is that this transaction has a significant, both strategic and financial, rationale. Tax is clearly a benefit, but it's not the primary rationale for this."
Shire has a nice portfolio of products, many for orphan indications that can fetch high price tags. Product sales were up 22% year over year in the second quarter, boosted by its acquisition of ViroPharma, and increased sales of top-selling Vyvnase to treat ADHD.
AbbVie desperately needs to add products because it's so dependent on sales of its anti-inflammatory drug Humira, which made up 67% of sales in the second quarter. The patents on Humira start expiring in late 2016, and Amgen already has a copycat in the works that it's planning to launch shortly thereafter.
If it's still a good strategic fit, why isn't AbbVie going through with the deal? Part of the $55 billion price that AbbVie was willing to pay was based on it saving money on taxes. If the government won't let AbbVie take advantage of the tax breaks, Shire isn't worth as much. Apparently, those tax breaks are worth more than the $1.635 billion breakup fee.
Shire and AbbVie could renegotiate a lower price -- after the news of AbbVie getting cold feet, the company sank, and is now worth about $40 billion. Surely the tax break is worth less than $15 billion, providing some wiggle room to make a deal.
More likely, though, Shire will just take the breakup fee, and run like a bride from the altar. It can add the $1.6 billion to its piggybank, and use the dowry to make an acquisition of its own.
This coming blockbuster will make Shire and AbbVie jealous
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The article AbbVie Inc to Shire: It's Not You, It's My Country originally appeared on Fool.com.
Brian Orelli 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 .
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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 fact, during a call with analysts, Rick Gonzalez, AbbVie's Chairman and CEO, claimed the tax benefit wasn't even the primary reason: "What I would tell you is that this transaction has a significant, both strategic and financial, rationale. This coming blockbuster will make Shire and AbbVie jealous The best investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. In perhaps the most costly prenup in history, AbbVie looks like it will have to pay Shire $1.635 billion to break their engagement. | The board can't actually break the agreement with Shire, but assuming shareholders follow the board's advice, the deal won't go through, and AbbVie will have to pay the breakup fee. One of the attractions to Shire was that AbbVie could move its headquarters to Ireland to take advantage of the lower tax rate -- a so-called tax inversion. If the government won't let AbbVie take advantage of the tax breaks, Shire isn't worth as much. | One of the attractions to Shire was that AbbVie could move its headquarters to Ireland to take advantage of the lower tax rate -- a so-called tax inversion. Changing valuation The lower tax rate wasn't the only thing that attracted AbbVie to Shire. If the government won't let AbbVie take advantage of the tax breaks, Shire isn't worth as much. | Changing valuation The lower tax rate wasn't the only thing that attracted AbbVie to Shire. If the government won't let AbbVie take advantage of the tax breaks, Shire isn't worth as much. In perhaps the most costly prenup in history, AbbVie looks like it will have to pay Shire $1.635 billion to break their engagement. |
27328.0 | 2014-10-16 00:00:00 UTC | After Hours Most Active for Oct 16, 2014 : QQQ, KMI, ABBV, VALE/P, AMD, ALU, KMP, TVIX, URBN, GOOG, CNSL, GOOGL | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-oct-16-2014-qqq-kmi-abbv-valep-amd-alu-kmp-tvix-urbn-goog-cnsl | nan | nan | The NASDAQ 100 After Hours Indicator is down -16.46 to 3,748.82. The total After hours volume is currently 29,551,558 shares traded.
The following are the most active stocks for the after hours session :
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.37 at $91.42, with 4,517,503 shares traded. This represents a 14.58% increase from its 52 Week Low.
Kinder Morgan, Inc. ( KMI ) is -0.744 at $36.08, with 2,362,231 shares traded. As reported in the last short interest update the days to cover for KMI is 9.524697; this calculation is based on the average trading volume of the stock.
AbbVie Inc. ( ABBV ) is unchanged at $52.90, with 1,985,647 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock.
VALE S.A. (VALE/P) is +0.0189 at $9.69, with 1,501,400 shares traded.
Advanced Micro Devices, Inc. ( AMD ) is -0.12 at $2.52, with 1,485,218 shares traded. RTT News Reports: AMD Results Miss Estimate; Stock Down 7% - Quick Facts
Alcatel Lucent ( ALU ) is unchanged at $2.36, with 1,406,150 shares traded. ALU's current last sale is 52.8% of the target price of $4.47.
Kinder Morgan Energy Partners, L.P. ( KMP ) is +0.82 at $91.00, with 1,079,052 shares traded. KMP's current last sale is 91.92% of the target price of $99.
VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is +0.11 at $5.13, with 836,708 shares traded. This represents a 105.2% increase from its 52 Week Low.
Urban Outfitters, Inc. ( URBN ) is unchanged at $34.56, with 657,838 shares traded. As reported by Zacks, the current mean recommendation for URBN is in the "buy range".
Google Inc. ( GOOG ) is -14.77 at $509.74, with 597,500 shares traded. RTT News Reports: Google Q3 Net Profit Falls
Consolidated Communications Holdings, Inc. ( CNSL ) is unchanged at $26.19, with 580,159 shares traded., following a 52-week high recorded in today's regular session.
Google Inc. ( GOOGL ) is -16.38 at $520.54, with 546,700 shares traded. RTT News Reports: Google Q3 Net Profit Falls
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. AbbVie Inc. ( ABBV ) is unchanged at $52.90, with 1,985,647 shares traded. RTT News Reports: AMD Results Miss Estimate; Stock Down 7% - Quick Facts Alcatel Lucent ( ALU ) is unchanged at $2.36, with 1,406,150 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $52.90, with 1,985,647 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. As reported in the last short interest update the days to cover for KMI is 9.524697; this calculation is based on the average trading volume of the stock. | AbbVie Inc. ( ABBV ) is unchanged at $52.90, with 1,985,647 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. RTT News Reports: AMD Results Miss Estimate; Stock Down 7% - Quick Facts Alcatel Lucent ( ALU ) is unchanged at $2.36, with 1,406,150 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $52.90, with 1,985,647 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. The total After hours volume is currently 29,551,558 shares traded. |
27329.0 | 2014-10-16 00:00:00 UTC | U.K. Pharmaceutical Firm Shire Plunges Again After AbbVie Reconsiders Takeover | ABBV | https://www.nasdaq.com/articles/uk-pharmaceutical-firm-shire-plunges-again-after-abbvie-reconsiders-takeover-2014-10-16 | nan | nan | Shire Plc (SHP.L) nosedived in London trading for a second day Thursday after the board of Chicago-based AbbVie Inc. ( ABBV ) recommended not proceeding with a US$52 billion takeover of the British pharmaceutical company.
Shares were recently down 11.39% at 35.55 pounds each, in a 52-week range of 2,457.00 - 5,470.00.
AbbVie's board said its decision came after a U.S. rule change that made it more difficult to do tax inversion deals, whereby American companies move assets abroad to lower their tax obligations.
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. | Shire Plc (SHP.L) nosedived in London trading for a second day Thursday after the board of Chicago-based AbbVie Inc. ( ABBV ) recommended not proceeding with a US$52 billion takeover of the British pharmaceutical company. AbbVie's board said its decision came after a U.S. rule change that made it more difficult to do tax inversion deals, whereby American companies move assets abroad to lower their tax obligations. Unauthorized reproduction is strictly prohibited. | AbbVie's board said its decision came after a U.S. rule change that made it more difficult to do tax inversion deals, whereby American companies move assets abroad to lower their tax obligations. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shire Plc (SHP.L) nosedived in London trading for a second day Thursday after the board of Chicago-based AbbVie Inc. ( ABBV ) recommended not proceeding with a US$52 billion takeover of the British pharmaceutical company. | AbbVie's board said its decision came after a U.S. rule change that made it more difficult to do tax inversion deals, whereby American companies move assets abroad to lower their tax obligations. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shire Plc (SHP.L) nosedived in London trading for a second day Thursday after the board of Chicago-based AbbVie Inc. ( ABBV ) recommended not proceeding with a US$52 billion takeover of the British pharmaceutical company. | Shire Plc (SHP.L) nosedived in London trading for a second day Thursday after the board of Chicago-based AbbVie Inc. ( ABBV ) recommended not proceeding with a US$52 billion takeover of the British pharmaceutical company. AbbVie's board said its decision came after a U.S. rule change that made it more difficult to do tax inversion deals, whereby American companies move assets abroad to lower their tax obligations. Shares were recently down 11.39% at 35.55 pounds each, in a 52-week range of 2,457.00 - 5,470.00. |
27330.0 | 2014-10-15 00:00:00 UTC | Sector Update: Health Care | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-2014-10-15-0 | nan | nan | Health care stocks were mostly lower, with the NYSE Health Care Sector Index down about 1.6% and shares of health care companies in the S&P 500 sliding 1.5% as a group.
In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas.
In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes.
If ABBV's proposed deal with SHPG goes through, the combined companies would be incorporated in the British island of Jersey, where SHPG is incorporated.
Already, at least one U.S. company, Salix Pharmaceuticals ( SLXP ), Oct. 3 called off its proposed merger with an Irish-based subsidiary of Italian drug-maker Cosmo Pharmaceuticals, citing changes in U.S. tax policy.
SHPG also issued a statement overnight saying it still believes ABBV "should proceed with the recommended offer on the agreed terms," adding its board will soon meet to consider the current situation.
SHPG shares recently were down about 30% at $171.06 apiece, climbing back from a session low of $156.25 a share earlier in Wednesday's session. The stock has traded within a 52-week range of $118.08 to $264.98 a share, rising about 106% over the past year through Tuesday's close.
ABBV was down more than 2% at $52.97 in mid-day trade, recovering from an opening plunge to $52.06 a share.
In other sector news,
(+) PPHM, (+12.1%) Publishes data in the Journal of Immunology Research supporting its Phosphatidylserine drug candidate as a potential target in Ebola Infection, saying it exhibits specific and strong binding to Ebola Virions and Ebola Virus-infected cells.
(-) ESPR, (-6.3%) Discloses plans to sell about $85 mln of its shares in a public offering, also issuing underwriter options to buy up to $12.8 mln more of the stock. Proceeds will fund Phase III testing of ETC-1002 drug candidate.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. SHPG also issued a statement overnight saying it still believes ABBV "should proceed with the recommended offer on the agreed terms," adding its board will soon meet to consider the current situation. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. If ABBV's proposed deal with SHPG goes through, the combined companies would be incorporated in the British island of Jersey, where SHPG is incorporated. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. If ABBV's proposed deal with SHPG goes through, the combined companies would be incorporated in the British island of Jersey, where SHPG is incorporated. |
27331.0 | 2014-10-15 00:00:00 UTC | Why Shire plc (ADR) Is Today's Worst Biotech Stock | ABBV | https://www.nasdaq.com/articles/why-shire-plc-adr-todays-worst-biotech-stock-2014-10-15 | 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 Irish biopharma Shire plc lost more than a quarter of their value in premarket trading this morning after AbbVie announced that they are reconsidering their $55 billion tender offer due to the Treasury Department instituting new rules to lower the incentive for tax inversions. AbbVie's decision is somewhat surprising, given that they had recently informed employees of both companies that the merger was going ahead as planned, and even formed a transition committee to begin the rigorous process of combining two major pharmas into a single entity.
Shire's board released a statement on the matter this morning, saying they believe the merger should proceed per their previous arrangement, and even warned AbbVie that they would have to pay up to $1.64 billion in "break-up" fees, if the deal is nixed at this late stage.
So what : Shire's share price has risen over 30% year-to-date largely because of this buyout offer. So, the stock could give up most, if not all, of those gains if this deal is indeed tabled. AbbVie's shares will also probably take a big hit because investors were optimistic about the company diversifying its pipeline, which is presently overly dependent on a single drug, Humira.
Now what : My take is that AbbVie is having second thoughts about performing a substantial capital raise in order to complete this merger. As a refresher, the revised rules bar companies involved in tax inversions from using ex-U.S. funds to buy a foreign entity, forcing AbbVie to take on debt to complete this merger.
Will this merger ultimately take place? While I don't have a crystal ball, I think the positives still far outweigh the negatives for AbbVie in this deal. With an uncertain commercial outlook for its experimental hepatitis C drug and Humira's patent protection set to expire in 2016, AbbVie would be remiss to pass on Shire's highly coveted product portfolio.
This coming blockbuster will make Shire and AbbVie jealous
The best 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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Shire plc (ADR) Is Today's Worst Biotech Stock originally appeared on Fool.com.
George Budwell 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 - 2014 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 Irish biopharma Shire plc lost more than a quarter of their value in premarket trading this morning after AbbVie announced that they are reconsidering their $55 billion tender offer due to the Treasury Department instituting new rules to lower the incentive for tax inversions. AbbVie's decision is somewhat surprising, given that they had recently informed employees of both companies that the merger was going ahead as planned, and even formed a transition committee to begin the rigorous process of combining two major pharmas into a single entity. Shire's board released a statement on the matter this morning, saying they believe the merger should proceed per their previous arrangement, and even warned AbbVie that they would have to pay up to $1.64 billion in "break-up" fees, if the deal is nixed at this late stage. | AbbVie's shares will also probably take a big hit because investors were optimistic about the company diversifying its pipeline, which is presently overly dependent on a single drug, Humira. 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 Irish biopharma Shire plc lost more than a quarter of their value in premarket trading this morning after AbbVie announced that they are reconsidering their $55 billion tender offer due to the Treasury Department instituting new rules to lower the incentive for tax inversions. | What : Shares of Irish biopharma Shire plc lost more than a quarter of their value in premarket trading this morning after AbbVie announced that they are reconsidering their $55 billion tender offer due to the Treasury Department instituting new rules to lower the incentive for tax inversions. Shire's board released a statement on the matter this morning, saying they believe the merger should proceed per their previous arrangement, and even warned AbbVie that they would have to pay up to $1.64 billion in "break-up" fees, if the deal is nixed at this late stage. This coming blockbuster will make Shire and AbbVie jealous The best investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. | What : Shares of Irish biopharma Shire plc lost more than a quarter of their value in premarket trading this morning after AbbVie announced that they are reconsidering their $55 billion tender offer due to the Treasury Department instituting new rules to lower the incentive for tax inversions. As a refresher, the revised rules bar companies involved in tax inversions from using ex-U.S. funds to buy a foreign entity, forcing AbbVie to take on debt to complete this merger. AbbVie's decision is somewhat surprising, given that they had recently informed employees of both companies that the merger was going ahead as planned, and even formed a transition committee to begin the rigorous process of combining two major pharmas into a single entity. |
27332.0 | 2014-10-15 00:00:00 UTC | Midday Update: Stocks Continue to Spiral Lower As Economic Data Disappoints, Ebola Lingers | ABBV | https://www.nasdaq.com/articles/midday-update-stocks-continue-spiral-lower-economic-data-disappoints-ebola-lingers-2014-10 | nan | nan | Stocks were off their worst levels of the day but still posting significant losses Wednesday after recent data on retail sales, inflation and regional manufacturing did little to reassure investors nervous about the health of the global economy. Wall Street also has been unnerved by about how the spread of Ebola will impact consumer habits, evidenced by today's heavy losses in airline and travel stocks, including a 4% drop in Expedia ( EXPE ).
Dow component stock Disney ( DIS ) was down over 3%.
Sub-par economic data overshadowed upbeat earnings from Bank of America ( BAC ) with futures already deep in negative territory after Abbvie ( ABBV ) said it was reconsidering its $55 billion takeover of Irish drug-maker Shire plc ( SHPG ).
Futures continued to unravel when September retail sales came in much worse than expected, falling 0.3%. Excluding vehicle sales, retail sales were off 0.2% versus the street consensus for a 0.3% gain. And subtracting sales of auto and gas, retail sales were down 0.1% well below estimates for a 0.5% gain
Wholesale prices also showed a 0.1% decline last month as oil prices hit multi-year lows. Excluding the volatile food and fuel sector, producer prices were unchanged, missing estimates for a 0.1% gain.
The Empire State manufacturing index fell to a six-month low of 6.17 in October after reaching a five-year high of 27.54 in September. The financial markets were looking for a modest decline to 20.50.
European equities were in a tailspin as well, losing nearly 4% in value in sympathy with U.S. markets as well as bearish Chinese inflation data and heavy losses for Shire. French led the rest of the continent lower, but German and UK indices also posted very heavy losses at the European close.
Crude oil was down $0.19 to $81.65 per barrel. Natural gas was down $0.03 to $3.94 per 1 million BTU. Gold was up $11.60 to $1,246.00 an ounce, while silver was up $0.09 to $17.49 an ounce. Copper was down $0.04 to $3.05 per pound.
Among energy ETFs, the United States Oil Fund was down 0.13% to $30.80 with the United States Natural Gas Fund was down 1.02% to $20.29. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 0.65% to 21.52 while SPDR Gold Shares were up 1.00% to $119.78. The iShares Silver Trust was up 0.92% to $16.83.
Here's where the U.S. markets stand at mid-day:
NYSE Composite Index down 174.49 (-1.71%) to 10,011.42
Dow Jones Industrial Average down 299.32 (-1.83%) to 16,015.87
S&P 500 down 34.84 (-1.86%) to 1,842.86
Nasdaq Composite Index down 63.01 (-1.49%) to 4,164.16
GLOBAL SENTIMENT
Nikkei 225 Index up 0.92%
Hang Seng Index up 0.40%
Shanghai China Composite Index up 0.60%
FTSE 100 Index down 2.83%
CAC 40 down 3.63%
DAX down 2.87%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 1.46%
NYSE Financial Sector Index down 2.36%
NYSE Healthcare Sector Index down 1.51%
UPSIDE MOVERS:
(+) LAKE (+20.39%), APT (+25.82%), VSR (+49.05%) Companies involved in the treatment and containment of Ebola gain on second infected Dallas hospital employee continue to advance
(+) PPHM (+12.86%) Issued positive update on Ebola treatment Bavituximab
(+) PENX (+70.52%) Offer from Ingredion for $340 million
DOWNSIDE MOVERS:
(-) SHPG (-22.37%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion
(-) WTSL (-4.54%) Pays charge from reduced workforce, expects Q3 loss
(-) KEY (-8.61%) Q3 results miss estimates
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. | Sub-par economic data overshadowed upbeat earnings from Bank of America ( BAC ) with futures already deep in negative territory after Abbvie ( ABBV ) said it was reconsidering its $55 billion takeover of Irish drug-maker Shire plc ( SHPG ). (-) SHPG (-22.37%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL (-4.54%) Pays charge from reduced workforce, expects Q3 loss (-) KEY (-8.61%) Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Stocks were off their worst levels of the day but still posting significant losses Wednesday after recent data on retail sales, inflation and regional manufacturing did little to reassure investors nervous about the health of the global economy. | (-) SHPG (-22.37%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL (-4.54%) Pays charge from reduced workforce, expects Q3 loss (-) KEY (-8.61%) Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Sub-par economic data overshadowed upbeat earnings from Bank of America ( BAC ) with futures already deep in negative territory after Abbvie ( ABBV ) said it was reconsidering its $55 billion takeover of Irish drug-maker Shire plc ( SHPG ). Among energy ETFs, the United States Oil Fund was down 0.13% to $30.80 with the United States Natural Gas Fund was down 1.02% to $20.29. | (-) SHPG (-22.37%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL (-4.54%) Pays charge from reduced workforce, expects Q3 loss (-) KEY (-8.61%) Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Sub-par economic data overshadowed upbeat earnings from Bank of America ( BAC ) with futures already deep in negative territory after Abbvie ( ABBV ) said it was reconsidering its $55 billion takeover of Irish drug-maker Shire plc ( SHPG ). And subtracting sales of auto and gas, retail sales were down 0.1% well below estimates for a 0.5% gain Wholesale prices also showed a 0.1% decline last month as oil prices hit multi-year lows. | (-) SHPG (-22.37%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL (-4.54%) Pays charge from reduced workforce, expects Q3 loss (-) KEY (-8.61%) Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Sub-par economic data overshadowed upbeat earnings from Bank of America ( BAC ) with futures already deep in negative territory after Abbvie ( ABBV ) said it was reconsidering its $55 billion takeover of Irish drug-maker Shire plc ( SHPG ). And subtracting sales of auto and gas, retail sales were down 0.1% well below estimates for a 0.5% gain Wholesale prices also showed a 0.1% decline last month as oil prices hit multi-year lows. |
27333.0 | 2014-10-15 00:00:00 UTC | AbbVie (ABBV) May Not Buy Shire (SHPG), But You Should | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-may-not-buy-shire-shpg-you-should-2014-10-15 | nan | nan | This morning comes news that AbbVie (ABBV) is re-thinking its proposed $50+ billion purchase of the U.K. company Shire PLC (SHPG). The reaction, particularly in SHPG, has been swift and sharp, with shares losing around 25 percent in the pre-market and dropping to around the price before the merger was first rumored. When news comes out that prompts a reaction that large, my trader’s attitude takes over and the first question I ask myself is how best to profit from it. To understand how to do that, it is first necessary to analyze the motivation for the proposed deal.
We are frequently told that two things in life are certain, death and taxes. If, as Mitt Romney famously asserted, corporations are people too, one would expect the same cliché to apply to them. Over the last few years, however, every effort has been made to make sure that it doesn’t. Whether you view the government bailouts of banks and auto companies during the recession as good or bad depends largely on your political persuasion, but they certainly averted some corporate death. In the last few months corporations have focused on attempts to avoid, or at least reduce the amount of, the other certainty, taxes.
Earlier this year “inversion,” in which a U.S. company buys a foreign one largely to reduce their tax burden, was all the rage. Several large deals were announced with the pharmaceutical industry leading the way. The proposed mega-deal between Pfizer (PFE) and AstraZeneca (AZN) fell apart but many others including Forest Labs’ deal with Activis and Questcor’s with Mallinckrodt were completed. Outside of pharma the most publicized example would be Burger King Worldwide (BKW)’s acquisition of Tim Horton’s. BKW’s management, however, maintained that while there would be tax advantages to that deal that was not their main motivation.
The Abbvie and Shire deal, on the other hand, was reported to be all about shaving $8 billion off of Abbvie’s tax liability over the next 15 years. I say reportedly because that could not have been the only motivation. $8 billion is a lot of money, but, by definition as a potential tax saving, it is a fraction of a fraction of Abbvie’s profit and when spread over 15 years it doesn’t by itself justify the huge premium that Abbvie was prepared to pay for Shire.
Projecting tax savings over that time poses problems of its own as well. It assumes that tax rates everywhere will remain static. More relevantly it assumes that the U.S. Congress would stand by and watch while all of that potential tax revenue disappeared. That, we now know, won’t happen and that is reportedly why Abbvie is now reconsidering.
Obviously, though, there were other considerations that made the deal attractive to Abbvie earlier this year. They are extraordinarily reliant on one drug, Humira. In the second quarter of this year that one drug accounted for over two thirds of Abbvie’s sales. In the light of this morning’s reporting about a huge inversion deal falling apart, or, as Fox Business News would have it being destroyed by Congress, it is easy to lose sight of the fact that this was also about Abbvie buying brands and a pipeline as well.
That need hasn’t gone away. The threat to the inversion part of the deal is real, but must have been foreseeable. Once the U.S. public became aware of companies maneuvering to avoid U.S. taxes and benefitting the treasuries of other countries in the process, something was going to happen. Either U.S. corporate tax rates would be lowered or penalties would be imposed on those that took advantage of the existing situation. As of now the latter looks more likely, but that could change as there is an election imminent. Either way the calculation of the tax benefits of the deal will be thrown off. Abbvie’s board members are way too smart to not have been aware of that possibility and taken it into consideration.
Despite all of the buzz both this morning and back in July about this being purely, or even mainly, an inversion deal, that is unlikely. Just as with Burger King and Horton’s, the tax implications were an added bonus. They were a reason to domicile the merged company overseas, but there were other business considerations that made the deal work.
That hasn’t changed. What has changed is that global markets have fallen since the deal was announced and a present value discounted $8 billion of value has been removed. Consolidation in the pharmaceutical business is still not just desirable, but in many cases necessary. The tax position that spurred moves earlier this year may be changing but that basic business dynamic isn’t. In that light, a revised offer from Abbvie or a takeover bid from elsewhere must still be a possibility.
The reaction in SHPG this morning takes no account of that possibility. That in itself would make SHPG a risky but possibly worthwhile buy, but the fundamentals of Shire make it even less risky. Deal or not, the company is profitable with good sales growth and a moderate P/E after the big drop.
Whatever your view of inversions in general or the government’s response to the recent surge in them you should not be blinded to the potential profit from buying SHPG on the reaction to this morning’s news. Even without any tax benefit, Abbvie perceived more than $40 billion of value in the company at pre-announcement levels. That value is still there even if Abbvie backs away.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the light of this morning’s reporting about a huge inversion deal falling apart, or, as Fox Business News would have it being destroyed by Congress, it is easy to lose sight of the fact that this was also about Abbvie buying brands and a pipeline as well. This morning comes news that AbbVie (ABBV) is re-thinking its proposed $50+ billion purchase of the U.K. company Shire PLC (SHPG). The Abbvie and Shire deal, on the other hand, was reported to be all about shaving $8 billion off of Abbvie’s tax liability over the next 15 years. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This morning comes news that AbbVie (ABBV) is re-thinking its proposed $50+ billion purchase of the U.K. company Shire PLC (SHPG). The Abbvie and Shire deal, on the other hand, was reported to be all about shaving $8 billion off of Abbvie’s tax liability over the next 15 years. | The Abbvie and Shire deal, on the other hand, was reported to be all about shaving $8 billion off of Abbvie’s tax liability over the next 15 years. $8 billion is a lot of money, but, by definition as a potential tax saving, it is a fraction of a fraction of Abbvie’s profit and when spread over 15 years it doesn’t by itself justify the huge premium that Abbvie was prepared to pay for Shire. In the light of this morning’s reporting about a huge inversion deal falling apart, or, as Fox Business News would have it being destroyed by Congress, it is easy to lose sight of the fact that this was also about Abbvie buying brands and a pipeline as well. | Obviously, though, there were other considerations that made the deal attractive to Abbvie earlier this year. This morning comes news that AbbVie (ABBV) is re-thinking its proposed $50+ billion purchase of the U.K. company Shire PLC (SHPG). The Abbvie and Shire deal, on the other hand, was reported to be all about shaving $8 billion off of Abbvie’s tax liability over the next 15 years. |
27334.0 | 2014-10-15 00:00:00 UTC | Pre-Market Most Active for Oct 15, 2014 : ABBV, BAC, BBVA, SHPG, INTC, TVIX, XIV, QQQ, AAPL, ALU, NOK, PBR | ABBV | https://www.nasdaq.com/articles/pre-market-most-active-oct-15-2014-abbv-bac-bbva-shpg-intc-tvix-xiv-qqq-aapl-alu-nok-pbr | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -16.35 to 3,794.1. The total Pre-Market volume is currently 9,801,897 shares traded.
The following are the most active stocks for the pre-market session :
AbbVie Inc. ( ABBV ) is -2.48 at $51.65, with 13,479,787 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock.
Bank of America Corporation ( BAC ) is +0.04 at $16.56, with 2,851,864 shares traded. RTT News Reports: Bank Of America Posts Small Loss In Q3, Tops View; But Revenues Miss
Banco Bilbao Viscaya Argentaria S.A. ( BBVA ) is -0.16 at $11.22, with 2,261,990 shares traded. BBVA's current last sale is 100% of the target price of $11.22.
Shire plc ( SHPG ) is -61.16 at $183.41, with 1,625,352 shares traded. SHPG's current last sale is 71.23% of the target price of $257.5.
Intel Corporation ( INTC ) is -0.76 at $31.38, with 1,599,382 shares traded. INTC's current last sale is 89.66% of the target price of $35.
VelocityShares Daily 2X VIX Short Term ETN ( TVIX ) is +0.28 at $5.05, with 1,226,986 shares traded. This represents a 102% increase from its 52 Week Low.
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.98 at $27.77, with 1,120,598 shares traded. This represents a 14.33% increase from its 52 Week Low.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.64 at $92.33, with 941,478 shares traded. This represents a 16.31% increase from its 52 Week Low.
Apple Inc. ( AAPL ) is +0.25 at $99.00, with 586,021 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2014. The consensus EPS forecast is $1.3. AAPL is scheduled to provide an earnings report on 10/20/2014, for the fiscal quarter ending Sep2014. The consensus earnings per share forecast is 1.3 per share, which represents a 118 percent increase over the EPS one Year Ago
Alcatel Lucent ( ALU ) is -0.1 at $2.39, with 409,413 shares traded. ALU's current last sale is 53.47% of the target price of $4.47.
Nokia Corporation ( NOK ) is -0.22 at $7.74, with 327,276 shares traded. NOK's current last sale is 80.63% of the target price of $9.6.
Petroleo Brasileiro S.A.- Petrobras ( PBR ) is -0.55 at $16.55, with 257,651 shares traded. PBR's current last sale is 80.73% of the target price of $20.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is -2.48 at $51.65, with 13,479,787 shares traded. RTT News Reports: Bank Of America Posts Small Loss In Q3, Tops View; But Revenues Miss Banco Bilbao Viscaya Argentaria S.A. ( BBVA ) is -0.16 at $11.22, with 2,261,990 shares traded. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is -2.48 at $51.65, with 13,479,787 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. The total Pre-Market volume is currently 9,801,897 shares traded. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is -2.48 at $51.65, with 13,479,787 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. The total Pre-Market volume is currently 9,801,897 shares traded. | The following are the most active stocks for the pre-market session : AbbVie Inc. ( ABBV ) is -2.48 at $51.65, with 13,479,787 shares traded. As reported in the last short interest update the days to cover for ABBV is 8.71557; this calculation is based on the average trading volume of the stock. The NASDAQ 100 Pre-Market Indicator is down -16.35 to 3,794.1. |
27335.0 | 2014-10-15 00:00:00 UTC | Johnson & Johnson Earnings: Showing Surprising Weakness | ABBV | https://www.nasdaq.com/articles/johnson-johnson-earnings-showing-surprising-weakness-2014-10-15 | nan | nan | Johnson & Johnson had what on the surface appeared to be a pretty good quarter -- revenue and earnings were up solidly year-over-year, and the pharma business grew like a weed.
But looking under the surface, things didn't appear nearly as positive. And in the video below, Motley Fool health care analyst Michael Douglass lays out his concerns with Johnson & Johnson and what he thinks about this top dividend stock.
This coming blockbuster will make even Johnson & Johnson jealous
The best 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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Johnson & Johnson Earnings: Showing Surprising Weakness originally appeared on Fool.com.
Alison Southwick owns shares of CVS Health. Michael Douglass owns shares of Johnson & Johnson and Gilead Sciences. The Motley Fool recommends CVS Health, 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 - 2014 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. | There is a product in development that will revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. | Michael Douglass owns shares of Johnson & Johnson and Gilead Sciences. The Motley Fool recommends CVS Health, Gilead Sciences, and Johnson & Johnson. The Motley Fool owns shares of Gilead Sciences and Johnson & Johnson. | And in the video below, Motley Fool health care analyst Michael Douglass lays out his concerns with Johnson & Johnson and what he thinks about this top dividend stock. The Motley Fool recommends CVS Health, Gilead Sciences, and Johnson & Johnson. The Motley Fool owns shares of Gilead Sciences and Johnson & Johnson. | The Motley Fool recommends CVS Health, Gilead Sciences, and Johnson & Johnson. The Motley Fool owns shares of Gilead Sciences and Johnson & Johnson. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. |
27336.0 | 2014-10-15 00:00:00 UTC | Sector Update: Health Care | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-2014-10-15 | nan | nan | Health care stocks were mostly lower with the NYSE Health Care Sector Index down about 1.7% and shares of health care companies in the S&P 500 sliding 1.6% as a group.
In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch.
The company received $30 million in milestone payments from TKPYY on Oct. 7 following FDA approval of the drug, with the remaining $70 million expected within the next 30 days.
Following receipt of the full $100 million in milestone payments, OREX said it expects to finish the year with around $190 million in cash, cash equivalents and marketable securities on its books.
OREX shares were up nearly 15% at $3.97 each in late Wednesday trade, holding within 2 cents of its session high. The stock has traded in a 52-week range of $3.11 to $7.82 a share, slipping almost 38% on the past year ahead of today's gain.
In other sector news,
(+) PPHM, Publishes data in the Journal of Immunology Research supporting its Phosphatidylserine drug candidate as a potential target in Ebola Infection, saying it exhibits specific and strong binding to Ebola Virions and Ebola Virus-infected cells.
(-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas.
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. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. OREX shares were up nearly 15% at $3.97 each in late Wednesday trade, holding within 2 cents of its session high. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. Following receipt of the full $100 million in milestone payments, OREX said it expects to finish the year with around $190 million in cash, cash equivalents and marketable securities on its books. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. Health care stocks were mostly lower with the NYSE Health Care Sector Index down about 1.7% and shares of health care companies in the S&P 500 sliding 1.6% as a group. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. Health care stocks were mostly lower with the NYSE Health Care Sector Index down about 1.7% and shares of health care companies in the S&P 500 sliding 1.6% as a group. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. |
27337.0 | 2014-10-15 00:00:00 UTC | Should Gilead Sciences, inc. Fear Incoming Competition? | ABBV | https://www.nasdaq.com/articles/should-gilead-sciences-inc-fear-incoming-competition-2014-10-15 | nan | nan | Gilead Sciences ' shares have tumbled more than 8% in the past week as investors digest the FDA approval of its second-generation hepatitis C drug Harvoni and the potential competitive threats from AbbVie and Bristol-Myers Squibb .
Since investors are wondering whetherhepatitis C drugs coming from AbbVie and Bristol-Myers might spark a price war, let's look at the threat to Gilead's bottom line and see how worried the company and its shareholders should be.
Source: Gilead Sciences via Google Maps.
Tough to treat, until now
The landscape for hepatitis C treatment looked very different when Gilead launchedfirst-generation drug Sovaldi last December. Hepatitis C affects more than 120 million people worldwide, and until now it was tough to treat and too often the cause of life-threatening liver failure.
Prior to 2010, hepatitis C treatment relied on a combination therapy of peg interferon and ribavirin. Those treatments, however, failed to work in as many as half the patients treated andcame with a slate of often intolerable side effects.
The situation began to change in 2011 when Vertex Pharmaceuticals launched Incivek, a revolutionary new therapy. Demand was so high that it quickly became the fastest drug to ever reach $1 billion blockbuster sales status. However, despite its advances, Incivek was far from a perfect drug: it was delivered via injection, rather than by tablet; it still required a 24-week treatment period; it was still dosed alongside pesky peg interferon and ribavirin; and it provided a functional cure for only about 80% of patients.
In a bid to do better, drugmakers spent billions on research and development that yielded several promising therapies. But onestood out: Pharmasset's Sovaldi. Sovaldi's midstage trial results were so impressive that Gilead acquired Pharmasset for more than $11 billion in 2012; this was a jaw-dropping price tag given that Pharmasset didn't have any commercial products or sales. Sovaldi's success suggests this was money well spent. In the first six months on the market, Gilead's Sovaldi sales totaled more than $5 billion.
Source: Gilead Sciences.
But much like Invicek, Sovaldi is far from a perfect solution. Sovaldi's 12-week treatment course is still too long; it still requires either peg interferon or ribavirin, or both, in some patients; and it doesn't cure everyone. As a result, Gilead developed Harvoni, a combination of Sovaldi and a new drug, ledipasvir, which can be dosed over as little as eight weeks, doesn't require peg interferon or ribavirin, and has shown cure rates as high as 99% in phase 3 trials.
Crowding the field
Sovaldi's shortcomings likely gave AbbVie and Bristol-Myers hope that the money each has already spent on their own hepatitis C programs wasn't wasted. It remains to be seen, though, how much threat these companies will pose to Gilead in this market.
For example, AbbVie's three-drug hepatitis C treatment cured up to 99% of genotype 1b patients during phase 3 trials. That's an impressive cure rate; however, before getting too excited, it's important to recognize that while genotype 1 is the most common variation of hepatitis C in the United States, the 1b variation accounts for only about a third of genotype 1 cases. In the more common 1a variation, AbbVie's cocktail clears the disease in about 90% of patients. If you add ribavirin, the 1a cure rate jumps to 97%, but given that doctors have been looking to move away from peg interferon and ribavirin for years, they may shy away from prescribing AbbVie's cocktail over Harvoni -- especially since AbbVie's combination requires three pills a day, rather than one for Harvoni. That dosing disadvantage maycould
Bristol-Myers' Daklinza might face similar struggles. Most industry watchers expect an FDA green light for Daklinza given that it's already approved for use in Japan, but how much of a dent the drug might make in Gilead's market share is questionable. Last week, Bristol Myers yanked its FDA filing for asunaprevir, which when used alongside Daklinza would have been the most direct Harvoni competitor. Bristol's decision to forgo asunaprevir in the United States could mean the company is ceding the market for all but the toughest to treat cases to Gilead. Instead, Bristol appears to be bargaining that Daklinza will win scripts as a companion to Sovaldi in patients who aren't cured with Harvoni. During trials, matching up Sovaldi with Daklinza produced a 98% cure rate in genotype 1a patients and a 100% cure rate in genotype 1b patients.
Shifting gears
Since AbbVie and Bristol-Myers come up shy in efficacy to Harvoni, their ability to win market share will have to rely on either pricing or, in Bristol's case, targeting niche markets.
Gilead watchers worry that Harvoni's $94,500 price tag for a 12-week treatment course will prove too rich for insurers and drive drug intermediaries like Express Scripts to avoid the product in their formularies. Those formularies are used as the basis for prescription approval by many insurers; if AbbVie undercuts Harvoni's price, it could result in insurers creating hoops designed to promote AbbVie instead of Harvoni. However, whether payer pushback will actually result in fewer Gilead scripts isn't clear. Doctors focus more on patient outcome than payer checkbooks; if they feel Harvoni delivers the best patient outcome, they're likely to push for its use regardless of insurer objections. The sheer size of the hepatitis C market in the U.S., and the fact that just 70,000 patients have been treated with Sovaldi through the first two quarters, makes it hard for me to imagine Harvoni won't be a major blockbuster, regardless of AbbVie's price decision. We won't know for sure until next year, so it's likely this debate is far from over.
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The article Should Gilead Sciences, inc. Fear Incoming Competition? 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. Todd owns Gundalow Advisors, LLC. Gundalow's clients do 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. | Gilead Sciences ' shares have tumbled more than 8% in the past week as investors digest the FDA approval of its second-generation hepatitis C drug Harvoni and the potential competitive threats from AbbVie and Bristol-Myers Squibb . The sheer size of the hepatitis C market in the U.S., and the fact that just 70,000 patients have been treated with Sovaldi through the first two quarters, makes it hard for me to imagine Harvoni won't be a major blockbuster, regardless of AbbVie's price decision. Since investors are wondering whetherhepatitis C drugs coming from AbbVie and Bristol-Myers might spark a price war, let's look at the threat to Gilead's bottom line and see how worried the company and its shareholders should be. | Gilead Sciences ' shares have tumbled more than 8% in the past week as investors digest the FDA approval of its second-generation hepatitis C drug Harvoni and the potential competitive threats from AbbVie and Bristol-Myers Squibb . Since investors are wondering whetherhepatitis C drugs coming from AbbVie and Bristol-Myers might spark a price war, let's look at the threat to Gilead's bottom line and see how worried the company and its shareholders should be. Crowding the field Sovaldi's shortcomings likely gave AbbVie and Bristol-Myers hope that the money each has already spent on their own hepatitis C programs wasn't wasted. | Gilead Sciences ' shares have tumbled more than 8% in the past week as investors digest the FDA approval of its second-generation hepatitis C drug Harvoni and the potential competitive threats from AbbVie and Bristol-Myers Squibb . The sheer size of the hepatitis C market in the U.S., and the fact that just 70,000 patients have been treated with Sovaldi through the first two quarters, makes it hard for me to imagine Harvoni won't be a major blockbuster, regardless of AbbVie's price decision. Since investors are wondering whetherhepatitis C drugs coming from AbbVie and Bristol-Myers might spark a price war, let's look at the threat to Gilead's bottom line and see how worried the company and its shareholders should be. | Gilead Sciences ' shares have tumbled more than 8% in the past week as investors digest the FDA approval of its second-generation hepatitis C drug Harvoni and the potential competitive threats from AbbVie and Bristol-Myers Squibb . For example, AbbVie's three-drug hepatitis C treatment cured up to 99% of genotype 1b patients during phase 3 trials. Since investors are wondering whetherhepatitis C drugs coming from AbbVie and Bristol-Myers might spark a price war, let's look at the threat to Gilead's bottom line and see how worried the company and its shareholders should be. |
27338.0 | 2014-10-15 00:00:00 UTC | Sector Update: Health Cares Stocks Ending in Deep Hole; Orexigen Jumps As Milestone Payments Start Rolling In | ABBV | https://www.nasdaq.com/articles/sector-update-health-cares-stocks-ending-deep-hole-orexigen-jumps-milestone-payments-start | nan | nan | Top Healthcare Stocks
JNJ +0.90%
PFE -1.79%
ABT -3.31%
MRK -2.90%
AMGN -1.54%
Health care stocks were mostly lower with the NYSE Health Care Sector Index down about 1.7% and shares of health care companies in the S&P 500 sliding 1.6% as a group.
In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch.
The company received $30 million in milestone payments from TKPYY on Oct. 7 following FDA approval of the drug, with the remaining $70 million expected within the next 30 days.
Following receipt of the full $100 million in milestone payments, OREX said it expects to finish the year with around $190 million in cash, cash equivalents and marketable securities on its books.
OREX shares were up nearly 15% at $3.97 each in late Wednesday trade, holding within 2 cents of its session high. The stock has traded in a 52-week range of $3.11 to $7.82 a share, slipping almost 38% on the past year ahead of today's gain.
In other sector news,
(+) PPHM, Publishes data in the Journal of Immunology Research supporting its Phosphatidylserine drug candidate as a potential target in Ebola Infection, saying it exhibits specific and strong binding to Ebola Virions and Ebola Virus-infected cells.
(-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas.
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. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. OREX shares were up nearly 15% at $3.97 each in late Wednesday trade, holding within 2 cents of its session high. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. Following receipt of the full $100 million in milestone payments, OREX said it expects to finish the year with around $190 million in cash, cash equivalents and marketable securities on its books. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. Health care stocks were mostly lower with the NYSE Health Care Sector Index down about 1.7% and shares of health care companies in the S&P 500 sliding 1.6% as a group. In company news, Orexigen Therapeutics was finishing higher Wednesday after today saying it earned a $70 million milestone payment from partner company Takeda Pharmaceuticals ( TKPYY ) as shipments of its Contrave anti-obesity drug to pharmacy wholesalers begin ahead of an upcoming commercial launch. | (-) SHPG, Potential merger partner Abbvie ( ABBV ) says it was reconsidering the $55 billion deal with the Irish drugmaker, citing recent U.S. tax rule changes reducing the tax benefit of incorporating overseas. Top Healthcare Stocks Health care stocks were mostly lower with the NYSE Health Care Sector Index down about 1.7% and shares of health care companies in the S&P 500 sliding 1.6% as a group. |
27339.0 | 2014-10-15 00:00:00 UTC | Closing Update: Stocks Crushed by Weak Data, But Stage Late Rebound | ABBV | https://www.nasdaq.com/articles/closing-update-stocks-crushed-weak-data-stage-late-rebound-2014-10-15 | nan | nan | Wall Street suffered yet another bruising on Wednesday but finished well off the day's worst levels, with the small cap-focused Russell 2000, the market's laggard this year, pacing Wednesday's rebound. Still, stocks suffered their deepest intraday sell-off in close to three years, after worse-than-expected retail sales data, lingering worries about the global economy, and fears of an Ebola pandemic ignited intense selling in equities. Global economic distrust lured investors to the relative safe haven of government bonds, driving the yield on the 10-year note below 2.00% for the first time in 18 months.
Today's selling kicked off with a 0.3% drop in retail sales and 0.1% contraction in wholesale prices for September, indicating slower growth with anemic price pressures. Global equities were already against the ropes as a result of China's inflation data, weak Japanese production data and a scuttled multi-billion deal between Shire ( SHPG ) and AbbVie ( ABBV ) after the U.S. government squashed tax inversion deals. The result left EU-zone bond yields at historic lows and equities as much as 4% lower.
But as the day wore on, bargain-hunting resurfaced and fueled a rebound that shaved most of today's losses. The Dow Jones Industrial, which was down by as much as 460 points, closed only 153 points lower. But the best performer was the Russell 2000 which closed on the plus side for the third straight day after being down 2%.
Here's where the markets stand at the close:
US MARKETS
Dow Jones Industrial Index was down 173.45 (-1.1%) at 16,141.74
S&P 500 was down 15.21 (-0.8%) at 1,862.49
Nasdaq Composite Index was down 11.85 (-0.3%) at 4,215.32
GLOBAL SENTIMENT
FTSE 100 was down 2.83%
Nikkei 225 was up 0.92%
Hang Seng Index was up 0.40%
Shanghai China Composite Index was up 0.60%
UPSIDE MOVERS
(+) LAKE , APT , VSR Companies involved in the treatment and containment of Ebola gain on second infected Dallas hospital employee continue to advance
(+) PPHM Issued positive update on Ebola treatment Bavituximab
(+) PENX Offer from Ingredion for $340 million
DOWNSIDE MOVERS:
(-) SHPG AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion
(-) WTSL Pays charge from reduced workforce, expects Q3 loss
(-) KEY Q3 results miss estimates
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. | (-) SHPG AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL Pays charge from reduced workforce, expects Q3 loss (-) KEY Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Global equities were already against the ropes as a result of China's inflation data, weak Japanese production data and a scuttled multi-billion deal between Shire ( SHPG ) and AbbVie ( ABBV ) after the U.S. government squashed tax inversion deals. Still, stocks suffered their deepest intraday sell-off in close to three years, after worse-than-expected retail sales data, lingering worries about the global economy, and fears of an Ebola pandemic ignited intense selling in equities. | Global equities were already against the ropes as a result of China's inflation data, weak Japanese production data and a scuttled multi-billion deal between Shire ( SHPG ) and AbbVie ( ABBV ) after the U.S. government squashed tax inversion deals. (-) SHPG AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL Pays charge from reduced workforce, expects Q3 loss (-) KEY Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Dow Jones Industrial Index was down 173.45 (-1.1%) at 16,141.74 S&P 500 was down 15.21 (-0.8%) at 1,862.49 Nasdaq Composite Index was down 11.85 (-0.3%) at 4,215.32 | Global equities were already against the ropes as a result of China's inflation data, weak Japanese production data and a scuttled multi-billion deal between Shire ( SHPG ) and AbbVie ( ABBV ) after the U.S. government squashed tax inversion deals. (-) SHPG AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL Pays charge from reduced workforce, expects Q3 loss (-) KEY Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Still, stocks suffered their deepest intraday sell-off in close to three years, after worse-than-expected retail sales data, lingering worries about the global economy, and fears of an Ebola pandemic ignited intense selling in equities. | (-) SHPG AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) WTSL Pays charge from reduced workforce, expects Q3 loss (-) KEY Q3 results miss estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Global equities were already against the ropes as a result of China's inflation data, weak Japanese production data and a scuttled multi-billion deal between Shire ( SHPG ) and AbbVie ( ABBV ) after the U.S. government squashed tax inversion deals. Still, stocks suffered their deepest intraday sell-off in close to three years, after worse-than-expected retail sales data, lingering worries about the global economy, and fears of an Ebola pandemic ignited intense selling in equities. |
27340.0 | 2014-10-15 00:00:00 UTC | Futures Spiral on Weak Retail Sales, Empire State Manufacturing Index | ABBV | https://www.nasdaq.com/articles/futures-spiral-weak-retail-sales-empire-state-manufacturing-index-2014-10-15 | nan | nan | Stock futures were spiraling lower again Wednesday as Wall Street remained unhinged by fears surrounding the global economy with worries over a global economic slump exacerbated by much weaker than expected U.S. economic data that included a 0.3% drop in retail sales and a plunge in the Empire State manufacturing index to 6.17.
The ebola virus is also weighing on domestic equities after another hospital employee in Dallas was diagnosed with the deadly virus. Although hazmat suit and protective apparel makers Lakeland Industries ( LAKE ) and Alpha Pro Tech ( APT ) continue to rally, airliners are taking a hit with international carriers trading back in negative turf.
Third-quarter corporate earnings have been mostly market-friendly but yet seem unable to shake equities out of their malaise. The latest to report upbeat earnings was Bank of America ( BAC ) and BlackRock ( BLK ) both of which beat earnings estimates, but have had little positive impact on the broader markets.
Overseas markets were mixed with Asia higher but Europe deep in negative territory. Asian investors shrugged off weak Japanese production data along with bearish Chinese inflation data, but UK equities are in a tailspin after AbbVie ( ABBV ) threw cold water on its $55 billion takeover of Shire (SHPG) causing Shire to fall 25%. Although the UK jobless rate fell to 6.0% from 6.2%, UK equities are down more than 1%.
The other data this morning included the producer price index for September. The nominal index dropped 0.01%, missing estimates for a gain of 0.1%. Excluding the volatile food and fuel segment, wholesale prices were unchanged.
Later this morning, business inventories will be released, expected to increase 0.4%.
-Dow Jones Industrial down 0.82%
-S&P 500 futures down 1.08%
-Nasdaq 100 futures down 0.96%
SENTIMENT
Nikkei up 0.92%
Hang Seng up 0.40%
Shanghai Composite up 0.63%
FTSE-100 down 1.21%
DAX-30 down 1.23%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: Lower
(-) Chip stocks: Lower
(-) Software stocks: Lower
(+/-) Hardware stocks: Mixed
(-) Internet stocks: Lower
(-) Drug stocks: Lower
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(-) Industrial stocks: Lower
(-) Airlines: Lower
(-) Autos Lower
UPSIDE MOVERS:
(+) LAKE (+14.33%), APT (+18.21%), VSR ((+26.90%) Companies involved in the treatment and containment of Ebola gain on second infected Dallas hospital employee continue to advance
(+) MDGN (+9.98%) Encouraging initial results of anemia treatment, narrower Q3 loss
(+) CSX (+0.12%) Reported upbeat Q3 earnings
DOWNSIDE MOVERS:
(-) SHPG (-23.43%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion
(-) AAL (-3.40%) Airline stocks weighed down by worries over drop in travel due to spread of Ebola
(-) LLTC (-3.15%) Reported disappointing Q1 earnings
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. | (-) SHPG (-23.43%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) AAL (-3.40%) Airline stocks weighed down by worries over drop in travel due to spread of Ebola (-) LLTC (-3.15%) Reported disappointing Q1 earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Asian investors shrugged off weak Japanese production data along with bearish Chinese inflation data, but UK equities are in a tailspin after AbbVie ( ABBV ) threw cold water on its $55 billion takeover of Shire (SHPG) causing Shire to fall 25%. Stock futures were spiraling lower again Wednesday as Wall Street remained unhinged by fears surrounding the global economy with worries over a global economic slump exacerbated by much weaker than expected U.S. economic data that included a 0.3% drop in retail sales and a plunge in the Empire State manufacturing index to 6.17. | (-) SHPG (-23.43%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) AAL (-3.40%) Airline stocks weighed down by worries over drop in travel due to spread of Ebola (-) LLTC (-3.15%) Reported disappointing Q1 earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Asian investors shrugged off weak Japanese production data along with bearish Chinese inflation data, but UK equities are in a tailspin after AbbVie ( ABBV ) threw cold water on its $55 billion takeover of Shire (SHPG) causing Shire to fall 25%. Stock futures were spiraling lower again Wednesday as Wall Street remained unhinged by fears surrounding the global economy with worries over a global economic slump exacerbated by much weaker than expected U.S. economic data that included a 0.3% drop in retail sales and a plunge in the Empire State manufacturing index to 6.17. | (-) SHPG (-23.43%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) AAL (-3.40%) Airline stocks weighed down by worries over drop in travel due to spread of Ebola (-) LLTC (-3.15%) Reported disappointing Q1 earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Asian investors shrugged off weak Japanese production data along with bearish Chinese inflation data, but UK equities are in a tailspin after AbbVie ( ABBV ) threw cold water on its $55 billion takeover of Shire (SHPG) causing Shire to fall 25%. Stock futures were spiraling lower again Wednesday as Wall Street remained unhinged by fears surrounding the global economy with worries over a global economic slump exacerbated by much weaker than expected U.S. economic data that included a 0.3% drop in retail sales and a plunge in the Empire State manufacturing index to 6.17. | Asian investors shrugged off weak Japanese production data along with bearish Chinese inflation data, but UK equities are in a tailspin after AbbVie ( ABBV ) threw cold water on its $55 billion takeover of Shire (SHPG) causing Shire to fall 25%. (-) SHPG (-23.43%) AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion (-) AAL (-3.40%) Airline stocks weighed down by worries over drop in travel due to spread of Ebola (-) LLTC (-3.15%) Reported disappointing Q1 earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Stock futures were spiraling lower again Wednesday as Wall Street remained unhinged by fears surrounding the global economy with worries over a global economic slump exacerbated by much weaker than expected U.S. economic data that included a 0.3% drop in retail sales and a plunge in the Empire State manufacturing index to 6.17. |
27341.0 | 2014-10-15 00:00:00 UTC | Sector Update: Health Care Stock Retreat; Shire Tumbles After Abbvie Reconsiders $55 Bln Inversion Deal | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-stock-retreat-shire-tumbles-after-abbvie-reconsiders-55-bln | nan | nan | Top Healthcare Stocks
JNJ +0.63%
PFE -1.76%
ABT -2.67%
MRK -2.01%
AMGN -1.29%
Health care stocks were mostly lower, with the NYSE Health Care Sector Index down about 1.6% and shares of health care companies in the S&P 500 sliding 1.5% as a group.
In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas.
In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes.
If ABBV's proposed deal with SHPG goes through, the combined companies would be incorporated in the British island of Jersey, where SHPG is incorporated.
Already, at least one U.S. company, Salix Pharmaceuticals ( SLXP ), Oct. 3 called off its proposed merger with an Irish-based subsidiary of Italian drug-maker Cosmo Pharmaceuticals, citing changes in U.S. tax policy.
SHPG also issued a statement overnight saying it still believes ABBV "should proceed with the recommended offer on the agreed terms," adding its board will soon meet to consider the current situation.
SHPG shares recently were down more than 28% at $175.20 apiece, climbing back from a session low of $156.25 a share earlier in Wednesday's session. The stock has traded within a 52-week range of $118.08 to $264.98 a share, rising about 106% over the past year through Tuesday's close.
ABBV was down more than 2% at $52.97 in mid-day trade, recovering from an opening plunge to $52.06 a share.
In other sector news,
(+) PPHM, (+12.1%) Publishes data in the Journal of Immunology Research supporting its Phosphatidylserine drug candidate as a potential target in Ebola Infection, saying it exhibits specific and strong binding to Ebola Virions and Ebola Virus-infected cells.
(-) ESPR, (-6.3%) Discloses plans to sell about $85 mln of its shares in a public offering, also issuing underwriter options to buy up to $12.8 mln more of the stock. Proceeds will fund Phase III testing of ETC-1002 drug candidate.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. SHPG also issued a statement overnight saying it still believes ABBV "should proceed with the recommended offer on the agreed terms," adding its board will soon meet to consider the current situation. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. If ABBV's proposed deal with SHPG goes through, the combined companies would be incorporated in the British island of Jersey, where SHPG is incorporated. | In company news, Shire plc ( SHPG ) slid Wednesday after potential merger partner Abbvie ( ABBV ) said it was reconsidering the $55 billion deal with the Irish drugmaker after the U.S. Treasury recently created new rules reducing the tax benefit of incorporating overseas. In a statement last night, ABBV said while it hasn't pulled the plug on the proposed merger, the company's board needs to reconsider "the fundamental financial benefits of the transaction" following new tax regulations announced last month intended to discourage U.S. companies from merging with companies in low-tax jurisdictions and shifting domiciles in order to avoid U.S. corporate taxes. If ABBV's proposed deal with SHPG goes through, the combined companies would be incorporated in the British island of Jersey, where SHPG is incorporated. |
27342.0 | 2014-10-13 00:00:00 UTC | Gilead's All-Oral Combo HCV Drug Harvoni Cleared by FDA - Analyst Blog | ABBV | https://www.nasdaq.com/articles/gileads-all-oral-combo-hcv-drug-harvoni-cleared-by-fda-analyst-blog-2014-10-13 | nan | nan | Good news flowed in at Gilead Sciences ( GILD ) with the FDA approving the company's Harvoni for treating patients affected with chronic hepatitis C virus (HCV) genotype 1 infection. Harvoni is a once-daily combination treatment of Gilead's highly successful HCV drug Sovaldi (sofosbuvir: 400 mg) and ledipasvir (a NS5A inhibitor: 90 mg).
Following the FDA approval, Harvoni becomes the first single tablet regimen to treat HCV (genotype 1). The approval of the cocktail therapy eliminates the need for interferon or ribavirin administration, which are associated with serious side-effects. Moreover, the duration of the treatment comes down significantly. Although the recommended duration of therapy in treatment naïve genotype 1 HCV patients with or without cirrhosis is 12 weeks, it can be shortened to 8 weeks in case of patients (without cirrhosis) with baseline HCV viral load below 6 million IU/mL. The FDA also cleared the drug in treatment experienced patients with cirrhosis (24 weeks) and without cirrhosis (12 weeks).
The FDA approval, which was widely expected, was gained on the basis of encouraging data from three phase III studies (ION-1, ION-2 and ION-3). These studies evaluated Harvoni over 8, 12 or 24 weeks, with or without ribavirin, in nearly 2,000 patients suffering from genotype 1 chronic HCV with compensated liver disease. According to media reports, Gilead has priced Harvoni at $94,500 for a 12-week period. We are positive on Harvoni's approval. We expect the cocktail therapy to record strong sales given its advantages in simplifying HCV treatment.
The European approval of the combination therapy is on track with the European Medicines Agency's Committee for Medicinal Products for Human Use recommending its approval last month (read more: Gilead's HCV Combo Drug Harvoni Secures CHMP Backing ). We note that AbbVie ( ABBV ) is also looking to bring its all-oral HCV combination therapy into the market. If approved, the U.S. launch could take place later this year and the EU launch in the first quarter of 2015.
Gilead carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care space include Medivation ( MDVN ) and Shire ( SHPG ). Both stocks sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that AbbVie ( ABBV ) is also looking to bring its all-oral HCV combination therapy into the market. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Good news flowed in at Gilead Sciences ( GILD ) with the FDA approving the company's Harvoni for treating patients affected with chronic hepatitis C virus (HCV) genotype 1 infection. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie ( ABBV ) is also looking to bring its all-oral HCV combination therapy into the market. Good news flowed in at Gilead Sciences ( GILD ) with the FDA approving the company's Harvoni for treating patients affected with chronic hepatitis C virus (HCV) genotype 1 infection. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie ( ABBV ) is also looking to bring its all-oral HCV combination therapy into the market. Although the recommended duration of therapy in treatment naïve genotype 1 HCV patients with or without cirrhosis is 12 weeks, it can be shortened to 8 weeks in case of patients (without cirrhosis) with baseline HCV viral load below 6 million IU/mL. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie ( ABBV ) is also looking to bring its all-oral HCV combination therapy into the market. Although the recommended duration of therapy in treatment naïve genotype 1 HCV patients with or without cirrhosis is 12 weeks, it can be shortened to 8 weeks in case of patients (without cirrhosis) with baseline HCV viral load below 6 million IU/mL. |
27343.0 | 2014-10-10 00:00:00 UTC | Amgen, Inc. Gives AbbVie Inc the Highest Form of Flattery | ABBV | https://www.nasdaq.com/articles/amgen-inc-gives-abbvie-inc-highest-form-flattery-2014-10-10 | nan | nan | Amgen 's Enbrel hasn't been able to keep pace with AbbVie 's Humira, managing $4.2 billion in U.S. sales last year compared to Humira's $5.2 billion. So what's Amgen to do? Make a copycat of Humira, of course.
You're not seeing double.Source: AbbVie.
Unlike small-molecule generics, copycats of biologic drugs, called biosimilars, will have to undergo clinical trials to show that they're as efficacious as the original drug. This week. Amgen released the first data for ABP 501, its biosimilar of Humira, showing that the two drugs performed similarly in patients with plaque psoriasis.
Amgen didn't release any data, but noted that, "At week 16, the PASI percent improvement from baseline was within the prespecified equivalence margin for ABP 501 compared to adalimumab." PASI stands for Psoriasis Area and Severity Index, and is the standard measurement for severity of plaque psoriasis. Adalimumab is the chemical name for Humira.
Patients who responded well to ABP 501 after 16 weeks will continue on the drug for another 32 weeks. Those who responded to Humira will be rerandomized to take either Humira or ABP501. The extended trial will give Amgen more safety data for ABP501, and a chance to show that switching from Humira to ABP501 doesn't make patients' psoriasis worse. Given the large number of patients taking Humira, patient switching could be more lucrative than capturing new-to-therapy patients.
Amgen is also testing ABP 501 in rheumatoid arthritis, which Humira is also approved for. If that trial proves successful, look for Amgen to launch ABP 501 in 2017 after Humira's patents start expiring in late 2016.
That's if the FDA allows it
Biosimilars is a relatively new field in the U.S. Biologic drugs used to have de facto exclusivity after their patents expire because there wasn't a way to get a copycat drug approved without running full clinical trials equivalent to what was required for the brand-name drug. Considering the cost of the clinical trials, it wasn't worth the effort.
While some biosimilars have been approved in Europe for a few years, the Food and Drug Administration only recently wrote rules on how to get biosimilars approved after Congress included a pathway to approve biosimilars as part of the Affordable Care Act.
Small-molecule generic drugs generally only have to show equivalent dosing in a handful of patients before being approved. Because biosimilars are more complex, the Food and Drug Administration wants trials that actually show efficacy.
Fortunately, the trials are still much smaller than the originator had to run. Amgen enrolled 350 patients in the ABP 501 trial; to get Humira approved for plaque psoriasis, Abbott Labs , which ran the trials before splitting off its drug division AbbVie, evaluated 1,212 patients in the pivotal trial, and another 147 patients in a second trial.
While I'm sure Amgen ran the clinical trial design by the FDA before performing the trials, investors should realize that Amgen and the rest of the companies developing biosimilars are entering uncharted territory that's apt to change as the FDA digs into the data that companies are generating to show equivalence.
Amgen is making a big move into biosimilars with five other molecules in development. The ABP 501 data is a good start; but it remains to be seen how easy it will be to gain FDA approval, and how much the biosimilars will be used by doctors.
Biosimilars or not, at least both Amgen and AbbVie have this in common
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The article Amgen, Inc. Gives AbbVie Inc the Highest Form of Flattery originally appeared on Fool.com.
Brian Orelli and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biosimilars or not, at least both Amgen and AbbVie have this in common The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. Amgen 's Enbrel hasn't been able to keep pace with AbbVie 's Humira, managing $4.2 billion in U.S. sales last year compared to Humira's $5.2 billion. You're not seeing double.Source: AbbVie. | Amgen enrolled 350 patients in the ABP 501 trial; to get Humira approved for plaque psoriasis, Abbott Labs , which ran the trials before splitting off its drug division AbbVie, evaluated 1,212 patients in the pivotal trial, and another 147 patients in a second trial. Amgen 's Enbrel hasn't been able to keep pace with AbbVie 's Humira, managing $4.2 billion in U.S. sales last year compared to Humira's $5.2 billion. You're not seeing double.Source: AbbVie. | Amgen enrolled 350 patients in the ABP 501 trial; to get Humira approved for plaque psoriasis, Abbott Labs , which ran the trials before splitting off its drug division AbbVie, evaluated 1,212 patients in the pivotal trial, and another 147 patients in a second trial. Amgen 's Enbrel hasn't been able to keep pace with AbbVie 's Humira, managing $4.2 billion in U.S. sales last year compared to Humira's $5.2 billion. You're not seeing double.Source: AbbVie. | Amgen enrolled 350 patients in the ABP 501 trial; to get Humira approved for plaque psoriasis, Abbott Labs , which ran the trials before splitting off its drug division AbbVie, evaluated 1,212 patients in the pivotal trial, and another 147 patients in a second trial. Amgen 's Enbrel hasn't been able to keep pace with AbbVie 's Humira, managing $4.2 billion in U.S. sales last year compared to Humira's $5.2 billion. You're not seeing double.Source: AbbVie. |
27344.0 | 2014-10-10 00:00:00 UTC | Gilead Sciences Inc. Gets First Hepatitis C Cocktail Drug Approved | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc-gets-first-hepatitis-c-cocktail-drug-approved-2014-10-10 | nan | nan | Perhaps the most anticipated Food and Drug Administration approval of the year has finally arrived. Today, the agency approved Gilead Sciences Harvoni to treat hepatitis C.
But see that star next to the 12 weeks in the treatment-naive category? There's a side note that goes with it:
In one of the phase 3 clinical trials that Gilead Sciences ran, the biotech compared eight weeks of treatment, which cured 94% of patients, to 12 weeks of treatment, which cured 96% of patients. When you just look at patients who started with viral RNA of less than 6 million IU/mL, adding the additional four weeks didn't do anything. Cure rates for eight and 12 weeks were 97% and 96%, respectively.
How many patients might fall in the less than 6 million IU/mL category? In the clinical trial, it was 59% of the patients. It's unclear whether the real-life number is similar. And, of course, adding in patients who have failed previous treatment will reduce the overall percentage of patients who take the drug for only eight weeks, which garners Gilead Sciences just $63,000 per patient.
The bigger question is, how many patients with higher viral loads might forgo the final four weeks of treatment, figuring that the difference between 94% and 96% isn't that big of a deal? But those numbers are misleading, because they include all the patients with low viral loads. If you back out those patients, the cure rates for patients with high viral loads treated for eight and 12 weeks are 90% and 96%, respectively.
While that still isn't that big of a difference given that the FDA recommends patients with high viral load take the full 12 weeks, I think most doctors will insist on patients taking the drug for 12 weeks.
Competition coming
AbbVie has its own interferon-free cocktail under review by the FDA. Assuming it gets approved later this year, we should see an interesting battle for patients. Harvoni is easier to take since it's just one pill per day, and doctors are familiar with Sovaldi, which will help make the transition to Harvoni easy.
AbbVie's management has said it doesn't want to get in a price war; but if it can't get market share at a price comparable to Harvoni, the company might have to undercut Harvoni. While insurers would love it, a price war won't be good for either company.
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The article Gilead Sciences Inc. Gets First Hepatitis C Cocktail Drug Approved originally appeared on Fool.com.
Brian Orelli has no position in any stocks 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. | Competition coming AbbVie has its own interferon-free cocktail under review by the FDA. AbbVie's management has said it doesn't want to get in a price war; but if it can't get market share at a price comparable to Harvoni, the company might have to undercut Harvoni. The bigger question is, how many patients with higher viral loads might forgo the final four weeks of treatment, figuring that the difference between 94% and 96% isn't that big of a deal? | Competition coming AbbVie has its own interferon-free cocktail under review by the FDA. AbbVie's management has said it doesn't want to get in a price war; but if it can't get market share at a price comparable to Harvoni, the company might have to undercut Harvoni. There's a side note that goes with it: In one of the phase 3 clinical trials that Gilead Sciences ran, the biotech compared eight weeks of treatment, which cured 94% of patients, to 12 weeks of treatment, which cured 96% of patients. | Competition coming AbbVie has its own interferon-free cocktail under review by the FDA. AbbVie's management has said it doesn't want to get in a price war; but if it can't get market share at a price comparable to Harvoni, the company might have to undercut Harvoni. There's a side note that goes with it: In one of the phase 3 clinical trials that Gilead Sciences ran, the biotech compared eight weeks of treatment, which cured 94% of patients, to 12 weeks of treatment, which cured 96% of patients. | Competition coming AbbVie has its own interferon-free cocktail under review by the FDA. AbbVie's management has said it doesn't want to get in a price war; but if it can't get market share at a price comparable to Harvoni, the company might have to undercut Harvoni. And, of course, adding in patients who have failed previous treatment will reduce the overall percentage of patients who take the drug for only eight weeks, which garners Gilead Sciences just $63,000 per patient. |
27345.0 | 2014-10-10 00:00:00 UTC | ABBV Dividend Yield Pushes Past 3% | ABBV | https://www.nasdaq.com/articles/abbv-dividend-yield-pushes-past-3-2014-10-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.68), with the stock changing hands as low as $55.30 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF ( SPY ) back on 12/31/1999 - you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. AbbVie Inc. (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of AbbVie Inc., looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
According to the ETF Finder at ETF Channel, ABBV makes up 9.01% of the First Trust US IPO Index Fund ETF (Symbol: FPX) which is trading lower by about 1.5% on the day Friday.
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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. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.68), with the stock changing hands as low as $55.30 on the day. AbbVie Inc. (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc., looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.68), with the stock changing hands as low as $55.30 on the day. AbbVie Inc. (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc., looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.68), with the stock changing hands as low as $55.30 on the day. AbbVie Inc. (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of AbbVie Inc., looking at the history chart for ABBV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield. | Looking at the universe of stocks we cover at Dividend Channel , in trading on Friday, shares of AbbVie Inc. (Symbol: ABBV) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.68), with the stock changing hands as low as $55.30 on the day. According to the ETF Finder at ETF Channel, ABBV makes up 9.01% of the First Trust US IPO Index Fund ETF (Symbol: FPX) which is trading lower by about 1.5% on the day Friday. AbbVie Inc. (Symbol: ABBV) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. |
27346.0 | 2014-10-10 00:00:00 UTC | Shire's NDA on ADHD Candidate SHP465 Suffers Setback - Analyst Blog | ABBV | https://www.nasdaq.com/articles/shires-nda-on-adhd-candidate-shp465-suffers-setback-analyst-blog-2014-10-10 | nan | nan | Shire ( SHPG ) received a setback when the FDA informed the company that it requires additional pediatric data on pipeline candidate SHP 465 to approve its New Drug Application (NDA).
SHP 465 is being evaluated for the potential treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) in adults.
We note that Shire had initially submitted its NDA for SHP 465 in 2006. Shire recently requested the FDA for a resubmission of the NDA with plans to address outstanding items previously outlined by the FDA for approval.
In Apr 2014, the FDA clarified that Shire can resubmit SHP 465 as a class 2 resubmission.
As a result of FDA's request for additional data for approving the NDA, Shire's plan for NDA resubmission in 2014 will be delayed.
Shire holds a strong position in the ADHD market driven by key drugs like Vyvanse, Intuniv and Adderall - Vyvanse being the key growth driver. The successful development of yet another drug for ADHD would have further strengthened its ADHD portfolio.
Nevertheless, we remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Under the terms of the offer, shareholders of Shire will receive £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company). We view the acquisition by AbbVie as a positive given the price offered. AbbVie's proposal represents a significant premium of 53% over the unaffected stock price of Shire, before the merger talks surfaced on May 2, 2014. Moreover, Shire shareholders will have a 25% stake in the merged company.
Shire currently carries a Zacks Rank #1 (Strong Buy). Other well-placed stocks in the broader health care sector include Lannett Company, Inc. ( LCI ) and Sucampo Pharmaceuticals ( SCMP ). While Lannett carries a Zacks Rank #1, Sucampo is a Zacks Rank # 2 (Buy) stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's proposal represents a significant premium of 53% over the unaffected stock price of Shire, before the merger talks surfaced on May 2, 2014. Nevertheless, we remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. We view the acquisition by AbbVie as a positive given the price offered. | Click to get this free report SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, we remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. We view the acquisition by AbbVie as a positive given the price offered. | Click to get this free report SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report LANNETT INC (LCI): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, we remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. We view the acquisition by AbbVie as a positive given the price offered. | We view the acquisition by AbbVie as a positive given the price offered. Nevertheless, we remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. AbbVie's proposal represents a significant premium of 53% over the unaffected stock price of Shire, before the merger talks surfaced on May 2, 2014. |
27347.0 | 2014-10-09 00:00:00 UTC | Bristol-Myers Co Regroups; Hepatitis C Fight With Gilead Sciences Not Over | ABBV | https://www.nasdaq.com/articles/bristol-myers-co-regroups-hepatitis-c-fight-gilead-sciences-not-over-2014-10-09 | nan | nan | Bristol-Myers Squibb said on Tuesday that it's pulling the marketing application for its hepatitis C combination daclatasvir and asunaprevir because of a "rapidly evolving hepatitis C treatment landscape."
Sure, Gilead Sciences looks likely to get Harvoni approved shortly and AbbVie has a soon-to-be-approved cocktail, but I'm not sure I'd call the changes "rapid." Nothing in drug development is really rapid. Clinical trials and FDA approvals take time and everyone can see them coming.
Bristol-Myers Squibb has known that Gilead Sciences was developing Harvoni, a combination of Sovaldi and ledipasvir, since Gilead left Bristol-Myers at the altar a couple of years ago, refusing to develop a combination of Sovaldi and daclatasvir.
Bristol-Myers licked its wounds and tested daclatasvir with asunaprevir. Unfortunately, the combination isn't nearly as potent as Harvoni, presumably leading to the decision to not bother developing the combination in the United States.
But why now? Nothing has really changed on the competitive landscape since Bristol-Myers submitted its application for daclatasvir and asunaprevir back in April. And in July, Japanese regulators approved daclatasvir and asunaprevir, which are marketed as Daklinza and Sunvepra, respectively, so it seems unlikely there's some hidden problem that would cause the FDA to turn down the drugs.
Here are a couple of possibilities for that decision:
If you can't beat 'em, join 'em
Bristol-Meyers is still pursuing Food and Drug Administration approval for Daklinza on its own. Best-case scenario, the decision was because the FDA gave Bristol-Myers an indication that the data from clinical trials testing Daklinza combined with Sovaldi -- curing up to 100% of patients in some trials -- will be on Daklinza's label. If the combination is approved, Daklinza might actually be able to compete with Harvoni in the United States, EU regulators signed off on the approval of Daklinza in August and said it could be used in combination with Sovaldi.
Of course, Gilead Sciences can discourage the combination by pricing Sovaldi and Harvoni at close to the same price, making a Sovaldi-Daklinza combination much more expensive than Harvoni. Insurers aren't likely to pay the higher cost for a modest increase in efficacy.
Triple combo
Bristol-Myers is testing a third drug, dubbed BMS-791325, with daclatasvir and asunaprevir in hopes that it can cure upwards of 95% of patients, the level required to compete with Harvoni and AbbVie 's soon-to-be-approved cocktail.
The combination is being tested in four phase 3 trials, dubbed Unity 1-4. Top-line data from the first two trials were released Wednesday ahead of the American Association for the Study of Liver Diseases meeting next month.
In Unity 1, the triple-drug combination produced cure rates of 92% in patients that were new to therapy and cured 89% of patients that had failed previous treatments. In Unity 2, which enrolled patients with cirrhosis of the liver, 93% of new-to-treatment patients were cured by the triple combination. Adding a fourth drug, ribavirin, increased the cure rate to 98%. As expected, treatment experienced patients were lower with cure rates of 87% and 93%, with and without ribavirin, respectively.
While nothing to get too excited about, the triple combination is in the range where it can compete with Harvoni. Bristol-Myers may have pulled the daclatasvir-asunaprevir application because it knows the triple-drug combination is much better, making the two-drug combination not worth pursuing because it'll be short lived as a treatment (if anyone even bothered to use it).
If you think hepatitis C is big, check out this hugh opportunity
The best 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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Bristol-Myers Co Regroups; Hepatitis C Fight With Gilead Sciences Not Over originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Gilead Sciences. 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 .
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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. | Triple combo Bristol-Myers is testing a third drug, dubbed BMS-791325, with daclatasvir and asunaprevir in hopes that it can cure upwards of 95% of patients, the level required to compete with Harvoni and AbbVie 's soon-to-be-approved cocktail. Sure, Gilead Sciences looks likely to get Harvoni approved shortly and AbbVie has a soon-to-be-approved cocktail, but I'm not sure I'd call the changes "rapid." Here are a couple of possibilities for that decision: If you can't beat 'em, join 'em Bristol-Meyers is still pursuing Food and Drug Administration approval for Daklinza on its own. | Sure, Gilead Sciences looks likely to get Harvoni approved shortly and AbbVie has a soon-to-be-approved cocktail, but I'm not sure I'd call the changes "rapid." Triple combo Bristol-Myers is testing a third drug, dubbed BMS-791325, with daclatasvir and asunaprevir in hopes that it can cure upwards of 95% of patients, the level required to compete with Harvoni and AbbVie 's soon-to-be-approved cocktail. Bristol-Myers Squibb said on Tuesday that it's pulling the marketing application for its hepatitis C combination daclatasvir and asunaprevir because of a "rapidly evolving hepatitis C treatment landscape." | Sure, Gilead Sciences looks likely to get Harvoni approved shortly and AbbVie has a soon-to-be-approved cocktail, but I'm not sure I'd call the changes "rapid." Triple combo Bristol-Myers is testing a third drug, dubbed BMS-791325, with daclatasvir and asunaprevir in hopes that it can cure upwards of 95% of patients, the level required to compete with Harvoni and AbbVie 's soon-to-be-approved cocktail. Bristol-Myers Squibb has known that Gilead Sciences was developing Harvoni, a combination of Sovaldi and ledipasvir, since Gilead left Bristol-Myers at the altar a couple of years ago, refusing to develop a combination of Sovaldi and daclatasvir. | Sure, Gilead Sciences looks likely to get Harvoni approved shortly and AbbVie has a soon-to-be-approved cocktail, but I'm not sure I'd call the changes "rapid." Triple combo Bristol-Myers is testing a third drug, dubbed BMS-791325, with daclatasvir and asunaprevir in hopes that it can cure upwards of 95% of patients, the level required to compete with Harvoni and AbbVie 's soon-to-be-approved cocktail. Nothing in drug development is really rapid. |
27348.0 | 2014-10-09 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for October 10, 2014 | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-ex-dividend-date-scheduled-october-10-2014-2014-10-09 | nan | nan | AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 10, 2014. A cash dividend payment of $0.42 per share is scheduled to be paid on November 17, 2014. Shareholders who purchased ABBV stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that ABBV has paid the same dividend. At the current stock price of $58.34, the dividend yield is 2.88%.
The previous trading day's last sale of ABBV was $58.34, representing a -2.8% decrease from the 52 week high of $60.02 and a 31.63% increase over the 52 week low of $44.32.
ABBV is a part of the Health Care sector, which includes companies such as Johnson & Johnson ( JNJ ) and Novartis AG ( NVS ). ABBV's current earnings per share, an indicator of a company's profitability, is $2.59. Zacks Investment Research reports ABBV's forecasted earnings growth in 2014 as .45%, compared to an industry average of %.
For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
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SPDR S&P Dividend ETF ( SDY ).
The top-performing ETF of this group is VHT with an increase of 12.14% over the last 100 days. FPX has the highest percent weighting of ABBV at 8.74%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABBV stock prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2014 as .45%, compared to an industry average of %. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. | The following ETF(s) have ABBV as a top-10 holding: First Trust IPOX-100 Index Fund ( FPX ) Select Sector SPDR Fund - Health Care ( XLV ) iShares Dow Jones U.S. Health Care Index Fund ( IYH ) Vanguard Health Care ETF ( VHT ) SPDR S&P Dividend ETF ( SDY ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 10, 2014. | Shareholders who purchased ABBV stock prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABBV Dividend History page. The following ETF(s) have ABBV as a top-10 holding: First Trust IPOX-100 Index Fund ( FPX ) Select Sector SPDR Fund - Health Care ( XLV ) iShares Dow Jones U.S. Health Care Index Fund ( IYH ) Vanguard Health Care ETF ( VHT ) SPDR S&P Dividend ETF ( SDY ). | Shareholders who purchased ABBV stock prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have ABBV as a top-10 holding: First Trust IPOX-100 Index Fund ( FPX ) Select Sector SPDR Fund - Health Care ( XLV ) iShares Dow Jones U.S. Health Care Index Fund ( IYH ) Vanguard Health Care ETF ( VHT ) SPDR S&P Dividend ETF ( SDY ). AbbVie Inc. ( ABBV ) will begin trading ex-dividend on October 10, 2014. |
27349.0 | 2014-10-08 00:00:00 UTC | Bristol-Myers Tells Gilead Sciences, Inc. "You Win" | ABBV | https://www.nasdaq.com/articles/bristol-myers-tells-gilead-sciences-inc-you-win-2014-10-08 | nan | nan | Source: Bristol-Myers Squibb
Bristol-Myers Squibb 's shocking announcement that it's yanking its FDA application for approval of asunaprevir, effectively derailing it's promising two drug hepatitis C treatment, is a resounding victory for Gilead Sciences and raises questions about the other major competitors with drugs in development -- AbbVie and Merck .
Bristol's decision to pull the application for asunaprevir comes just days before the FDA is expected to give Gilead the go-ahead to begin selling its next-generation Sovaldi combination drug, Harvoni. Harvoni's anticipated approval and the likelihood that it would block significant use of asunaprevir alongside Bristol's Daklinza in hepatitis C patients in the U.S., is likely a major reason behind Bristol's decision to circle its wagons around Daklinza instead.
Ringing the bell
Johnson & Johnson's Olysio has the distinction of being the first FDA approved oral hepatitis C drug, but Olysio's first-mover advantage was quickly eliminated when Gilead's Sovaldi won approval last December. Sovaldi, which demonstrated functional cure rates in the low 90% range during clinical trials, proved a far better drug than Olysio, which struggled in genotype 1 patients with a common Q80k polymorphism.
As a result, doctors who had been warehousing patients while awaiting this new class of oral alternatives embraced Sovaldi so voraciously that Sovaldi became the fastest drug to ever reach billion dollar blockbuster sales status. In the first six months of this year, Gilead sold more than $5 billion worth of Sovaldi, putting it on track to challenge AbbVie's autoimmune disease drug Humira as the globe's best selling medicine.
Source: Veterans Affairs
Potential missed?
As good as Sovaldi is, it isn't a perfect drug. Sovaldi doesn't cure everyone and in many cases side-effect-riddled peginterferon and ribavirin are still dosed alongside it.
So Bristol-Myers, AbbVie, and Merck invested billions of dollars into R&D programs hoping that their treatments could do better than Gilead.
Bristol has arguably been savviest in its approach to developing a hepatitis C drug program, choosing to focus first on Japan, a heavily infected market that many drugmakers usually wait to enter because of the need for additional studies on the country's population.
That decision allowed Bristol to file for approval of its Daklinza and asunaprevir cocktail in Japan last year and to win approval by Japan's regulators this summer -- giving it a valuable advantage as the first approved therapy that tosses aside peginterferon and ribavirin.
Bristol's hepatitis C program was further emboldened last December when EU regulators approved compassionate use of Daklinza, which won the official go-ahead in Europe in August, alongside Sovaldi in tough-to-treat cases.
That EU support came on the heels of mid-stage studies showing that using Daklinza alongside Sovaldi resulted in a functional cure in 100% of patients treated.
And while that was convincing enough for EU regulators, that success rate wasn't enough to compel Gilead to advance a Sovaldi plus Daklinza study into phase 3 trials.
Instead, Gilead chose to focus on Harvoni, a mashup of Sovaldi and another one of its promising drugs, ledipasvir.
That decision appears to have worked out for Gilead given that Harvoni's results in phase 3 were almost as good as the Sovaldi and Daklinza combination, with Harvoni clearing the disease in up to 99% of patients.
Now, with Harvoni inches from the endzone, Bristol-Myers has made the decision to play it safe and focus on its Daklinza and asunaprevir in non-U.S. markets and Daklinza alone in the U.S.
Opportunity remains
Bristol isn't admitting a complete defeat in the space. While the company has decided that the market wouldn't support a Daklinza and asunaprevir treatment in the U.S., the company remains hopeful that Daklinza alone can carve away some sales in tough-to-treat patients as a companion to Gilead's drugs.
Bristol should also be able to generate solid sales in Japan for its two-drug cocktail until Harvoni wins approval there. Gilead filed for Harvoni approval in Japan in September.
And there could be a role for Daklina in Europe, where drug pricing is more controlled, as a companion to Sovaldi, too.
Merck and Johnson appear willing to keep the pressure on Gilead, too. In June, Merck spent $3.85 billion acquiring hepatitis C pure play Idenix, a maker of nucleotides that Merck hopes it can combine with its in-house hepatitis C drugs in a bid to reduce the treatment time to eight weeks or less. Last month, Johnson made a similar move , acquiring hepatitis C drug developer Alios for $1.75 billion to get its hands on Alios nucleotide pipeline.
The real winner is ...
Bristol-Myers is smart to focus its attention where it thinks it can deliver the best results, so while its decision on asunaprevir is surprising, it may end up being the best choice for the company and investors. Whether the move allows Bristol to establish a niche market for Daklinza is a big question, particularly given that Gilead appears positioned to dominate the market again next year with Harvoni. Regardless, while Gilead appears to have won the battle, its competitors appear willing to keep fighting and its patients that could benefit from that most given that the focus is shifting from obtaining a functional cure to shorter treatment periods.
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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Bristol-Myers Tells Gilead Sciences, Inc. "You Win" 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. Todd owns Gundalow Advisors, LLC. Gundalow's clients do 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 - 2014 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: Bristol-Myers Squibb Bristol-Myers Squibb 's shocking announcement that it's yanking its FDA application for approval of asunaprevir, effectively derailing it's promising two drug hepatitis C treatment, is a resounding victory for Gilead Sciences and raises questions about the other major competitors with drugs in development -- AbbVie and Merck . In the first six months of this year, Gilead sold more than $5 billion worth of Sovaldi, putting it on track to challenge AbbVie's autoimmune disease drug Humira as the globe's best selling medicine. So Bristol-Myers, AbbVie, and Merck invested billions of dollars into R&D programs hoping that their treatments could do better than Gilead. | Source: Bristol-Myers Squibb Bristol-Myers Squibb 's shocking announcement that it's yanking its FDA application for approval of asunaprevir, effectively derailing it's promising two drug hepatitis C treatment, is a resounding victory for Gilead Sciences and raises questions about the other major competitors with drugs in development -- AbbVie and Merck . In the first six months of this year, Gilead sold more than $5 billion worth of Sovaldi, putting it on track to challenge AbbVie's autoimmune disease drug Humira as the globe's best selling medicine. So Bristol-Myers, AbbVie, and Merck invested billions of dollars into R&D programs hoping that their treatments could do better than Gilead. | Source: Bristol-Myers Squibb Bristol-Myers Squibb 's shocking announcement that it's yanking its FDA application for approval of asunaprevir, effectively derailing it's promising two drug hepatitis C treatment, is a resounding victory for Gilead Sciences and raises questions about the other major competitors with drugs in development -- AbbVie and Merck . In the first six months of this year, Gilead sold more than $5 billion worth of Sovaldi, putting it on track to challenge AbbVie's autoimmune disease drug Humira as the globe's best selling medicine. So Bristol-Myers, AbbVie, and Merck invested billions of dollars into R&D programs hoping that their treatments could do better than Gilead. | Source: Bristol-Myers Squibb Bristol-Myers Squibb 's shocking announcement that it's yanking its FDA application for approval of asunaprevir, effectively derailing it's promising two drug hepatitis C treatment, is a resounding victory for Gilead Sciences and raises questions about the other major competitors with drugs in development -- AbbVie and Merck . In the first six months of this year, Gilead sold more than $5 billion worth of Sovaldi, putting it on track to challenge AbbVie's autoimmune disease drug Humira as the globe's best selling medicine. So Bristol-Myers, AbbVie, and Merck invested billions of dollars into R&D programs hoping that their treatments could do better than Gilead. |
27350.0 | 2014-10-08 00:00:00 UTC | Bristol-Myers Gives Up on US Approval of 2-Drug HCV Combo - Analyst Blog | ABBV | https://www.nasdaq.com/articles/bristol-myers-gives-up-on-us-approval-of-2-drug-hcv-combo-analyst-blog-2014-10-08 | nan | nan | Shares of Bristol-Myers Squibb ( BMY ) declined 2.62% to close the trading session on Oct 7 at $49.77 following its decision not to pursue FDA approval for the combination of daclatasvir (DCV) and asunaprevir (ASV) for treating patients suffering from genotype 1b strain of hepatitis C virus (HCV).
Following the decision, the biopharmaceutical major withdrew the new drug application for asunaprevir which was filed in April this year. While daclatasvir belongs to a new class of drugs - NS5A inhibitors - asunaprevir is an NS3 protease inhibitor.
The biopharmaceutical major attributed this decision to the rapidly evolving HCV treatment landscape in the U.S. The country's market for HCV combo drugs is likely to see the arrival of Gilead Sciences' ( GILD ) Harvoni (ledipasvir plus Sovaldi) shortly (target date: Oct 10). AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved in the U.S.
Upon approval, its U.S. launch could take place later this year. We note that Bristol-Myers' 2-drug all-oral, interferon- and ribavirin-free combination therapy gained Japanese approval in July this year (read more: Bristol-Myers Gains Japanese Approval for HCV Combo Drug ).
Bristol-Myers stated in its press release that it will continue with its efforts to gain approval for DCV in the U.S. in combination with other agents for multiple genotypes of the virus. The company intends to submit additional data on daclatasvir to the FDA. Moreover, the company is developing a 3-drug combination therapy (daclatasvir/asunaprevir/BMS-791325) for HCV, FDA approval for which is expected to be sought in the first quarter of 2015.
We expect investor focus to remain on updates regarding HCV combination therapies, going forward.
Bristol-Myers carries a Zacks Rank # 3 (Hold). A better-ranked stock in the biopharma space is Regeneron Pharmaceuticals ( REGN ). The company sports a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved in the U.S. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Bristol-Myers Squibb ( BMY ) declined 2.62% to close the trading session on Oct 7 at $49.77 following its decision not to pursue FDA approval for the combination of daclatasvir (DCV) and asunaprevir (ASV) for treating patients suffering from genotype 1b strain of hepatitis C virus (HCV). | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved in the U.S. We note that Bristol-Myers' 2-drug all-oral, interferon- and ribavirin-free combination therapy gained Japanese approval in July this year (read more: Bristol-Myers Gains Japanese Approval for HCV Combo Drug ). | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved in the U.S. Shares of Bristol-Myers Squibb ( BMY ) declined 2.62% to close the trading session on Oct 7 at $49.77 following its decision not to pursue FDA approval for the combination of daclatasvir (DCV) and asunaprevir (ASV) for treating patients suffering from genotype 1b strain of hepatitis C virus (HCV). | AbbVie ( ABBV ) is also looking to get its HCV combination therapy approved in the U.S. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report REGENERON PHARM (REGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Following the decision, the biopharmaceutical major withdrew the new drug application for asunaprevir which was filed in April this year. |
27351.0 | 2014-10-07 00:00:00 UTC | AbbVie's Humira Label Expanded in U.S. - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvies-humira-label-expanded-in-u.s.-analyst-blog-2014-10-07 | nan | nan | AbbVie Inc.' s ( ABBV ) Humira gained FDA approval for reducing the signs and symptoms of moderately-to-severely active polyarticular juvenile idiopathic arthritis (JIA) in patients aged ≥2 years.
Humira was initially (2008) approved in the U.S. for polyarticular JIA in patients aged ≥4 years. With the FDA approval, Humira can now be used in an expanded patient population.
In the EU, Humira is approved for the treatment of polyarticular JIA in patients aged 2 years to 17 years.
According to AbbVie, JIA is the most common form of childhood arthritis with nearly 25% of patients suffering from the polyarticular form of the disease. Polyarticular JIA is one of seven types of JIA.
We note that Humira, AbbiVie's flagship product, is approved for several indications apart from moderate-to-severe polyarticular JIA. These include moderate-to-severe ulcerative colitis, moderate-to-severe chronic plaque psoriasis and reducing the signs and symptoms of several disease conditions like moderate-to-severe rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis and moderate-to-severe Crohn's disease.
Our Take
Humira is the key growth driver at AbbVie. In the first half of 2014, Humira generated total sales of $5.9 billion, up 22.2% year-over-year. It contributed almost 62% to the company's total net sales during this period. The company expects Humira to continue exhibiting double-digit growth in 2014.
Meanwhile, AbbVie is working on expanding Humira's label further. Humira is in a phase III study for the treatment of fingernail psoriasis in patients suffering from moderate-to-severe chronic plaque psoriasis.
AbbVie carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Ligand Pharmaceuticals Inc. ( LGND ), Mallinckrodt plc ( MNK ) and Actavis plc ( ACT ). All these stocks carry 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.' s ( ABBV ) Humira gained FDA approval for reducing the signs and symptoms of moderately-to-severely active polyarticular juvenile idiopathic arthritis (JIA) in patients aged ≥2 years. According to AbbVie, JIA is the most common form of childhood arthritis with nearly 25% of patients suffering from the polyarticular form of the disease. Our Take Humira is the key growth driver at AbbVie. | AbbVie Inc.' s ( ABBV ) Humira gained FDA approval for reducing the signs and symptoms of moderately-to-severely active polyarticular juvenile idiopathic arthritis (JIA) in patients aged ≥2 years. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. According to AbbVie, JIA is the most common form of childhood arthritis with nearly 25% of patients suffering from the polyarticular form of the disease. | AbbVie Inc.' s ( ABBV ) Humira gained FDA approval for reducing the signs and symptoms of moderately-to-severely active polyarticular juvenile idiopathic arthritis (JIA) in patients aged ≥2 years. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report ACTAVIS PLC (ACT): Free Stock Analysis Report To read this article on Zacks.com click here. According to AbbVie, JIA is the most common form of childhood arthritis with nearly 25% of patients suffering from the polyarticular form of the disease. | AbbVie Inc.' s ( ABBV ) Humira gained FDA approval for reducing the signs and symptoms of moderately-to-severely active polyarticular juvenile idiopathic arthritis (JIA) in patients aged ≥2 years. According to AbbVie, JIA is the most common form of childhood arthritis with nearly 25% of patients suffering from the polyarticular form of the disease. Our Take Humira is the key growth driver at AbbVie. |
27352.0 | 2014-10-06 00:00:00 UTC | Why Is Sanofi Betting on MannKind Corporation's Afrezza? | ABBV | https://www.nasdaq.com/articles/why-sanofi-betting-mannkind-corporations-afrezza-2014-10-06 | nan | nan | Because the average cost of developing and bringing a new drug to market has now surpassed a whopping $5 billion, it has become commonplace for smaller pharmas to license out their first few approved products to larger companies with more resources, especially on the marketing end of the spectrum. Big Pharma, for its part, have also been increasingly willing to sign licensing agreements, with the intent to replace lost revenue from patent-cliff victims.
Putting market expectations aside for the moment, I think the question investors should consider now is: Why is Sanofi interested in Afrezza? With this question in mind, let's take a deeper look at this deal and consider its effects on the market as a whole.
MannKind didn't get a great deal for Afrezza. Why?
This licensing agreement undoubtedly fell well short of the expectations of many MannKind bulls.
So why did MannKind not get a better deal? The blame probably falls squarely on Pfizer 's failed inhaled insulin product Exubera. That drug cost Pfizer a stunning $2.8 billion in losses and led Eli Lilly and Novo Nordisk to exit the inhaled insulin product race altogether. In short, Sanofi was probably the only major pharma willing to market an inhaled insulin device at this point, given that the other insulin-makers swore off this approach years ago.
Sanofi's reasons for inking this deal are bountiful
The industry has come to view inhaled insulin products as risky following the Exubera calamity. And instead, we have seen a bitter competition break out in the basal and fast-acting insulin markets via minimally invasive injectables.
On the basal side, Sanofi pretty much owns the market with Lantus. However, Lantus is set to go off patent protection in February, and major pharmas have been ramping up to launch generic versions. And Lantus makes up roughly 20% of Sanofi's revenue, so it's a pretty big deal for shareholders there.
Sanofi is hoping to replace Lantus with a longer-acting form called Toujeo, but again, Lilly and Novo are hard at work developing competing versions called insulin peglispro and Tresiba, respectively. In sum, Sanofi's 80% market share of the basal insulin market is under serious duress.
By playing the intellectual-property game, Sanofi may be able to fend off competitors long enough to transition most, if not all, patients over to Toujeo down the line. That said, this scenario is far from certain and could result in a massive hit to Sanofi's bottom line.
Is Sanofi hitting its competitors where it hurts with Afrezza?
Sometimes the best defense is a good offense. And that appears to be Sanofi's strategy with Afrezza. While other Big Pharmas may have passed on Afrezza because of the risk involved, I think Sanofi saw an opportunity to hit its chief competitors, Lilly and Novo, in the pocketbook. Lilly and Novo currently dominate the fast-acting insulin market. Taken together, these two injectables and their delivery devices raked in over $7 billion in sales in 2013.
Afrezza's label restrictions won't allow it to completely replace these two fast-acting insulins, but it should be a handy add-on product that could cut deeply into their sales. Based on the market size and growth potential for fast-acting insulins, I think Afrezza could see upwards of $3 billion in peak sales by 2020, with the proper marketing. Perhaps what's key to note is that these sales will ultimately come at Lilly and Novo's expense via lost market share.
Foolish wrap-up
Afrezza looks as if it could generate about $2 billion in peak revenue for Sanofi. While this sum would certainly help to replace lost revenue in the basal insulin market, I think Sanofi pursued Afrezza, in part, to help keep its competitors in check. Lilly and Novo may therefore come to regret not outbidding Sanofi for Afrezza. Time will tell.
A huge product that will make even MannKind 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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Is Sanofi Betting on MannKind Corporation's Afrezza? originally appeared on Fool.com.
George Budwell owns shares of Enanta Pharmaceuticals. 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 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 - 2014 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 drug cost Pfizer a stunning $2.8 billion in losses and led Eli Lilly and Novo Nordisk to exit the inhaled insulin product race altogether. Afrezza's label restrictions won't allow it to completely replace these two fast-acting insulins, but it should be a handy add-on product that could cut deeply into their sales. A huge product that will make even MannKind jealous The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. | The blame probably falls squarely on Pfizer 's failed inhaled insulin product Exubera. In sum, Sanofi's 80% market share of the basal insulin market is under serious duress. While this sum would certainly help to replace lost revenue in the basal insulin market, I think Sanofi pursued Afrezza, in part, to help keep its competitors in check. | In sum, Sanofi's 80% market share of the basal insulin market is under serious duress. Based on the market size and growth potential for fast-acting insulins, I think Afrezza could see upwards of $3 billion in peak sales by 2020, with the proper marketing. While this sum would certainly help to replace lost revenue in the basal insulin market, I think Sanofi pursued Afrezza, in part, to help keep its competitors in check. | Sanofi's reasons for inking this deal are bountiful The industry has come to view inhaled insulin products as risky following the Exubera calamity. Based on the market size and growth potential for fast-acting insulins, I think Afrezza could see upwards of $3 billion in peak sales by 2020, with the proper marketing. While this sum would certainly help to replace lost revenue in the basal insulin market, I think Sanofi pursued Afrezza, in part, to help keep its competitors in check. |
27353.0 | 2014-10-06 00:00:00 UTC | Better Dividend Stock: Amgen, Inc. or AbbVie Inc.? | ABBV | https://www.nasdaq.com/articles/better-dividend-stock-amgen-inc-or-abbvie-inc-2014-10-06 | nan | nan | AMGN Dividend data by YCharts
The better dividend stock is...
Even though AbbVie's projected yield of 3.2% looks far juicier than Amgen's 1.9% dividend yield, the truth of the matter is that Amgen is the better dividend stock. Amgen still needs to prove it can actually deliver on some of its late-stage compounds, but at least it's finally hit that point where we could see its organic growth surge. AbbVie's hepatitis C direct-acting antiviral will certain help ebb some of its Humira woes, as will the Shire buy, but I'd consider the company no lock to be able to keep its payout where it is now.
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The article Better Dividend Stock: Amgen, Inc. or AbbVie Inc.? originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's hepatitis C direct-acting antiviral will certain help ebb some of its Humira woes, as will the Shire buy, but I'd consider the company no lock to be able to keep its payout where it is now. Even though AbbVie's projected yield of 3.2% looks far juicier than Amgen's 1.9% dividend yield, the truth of the matter is that Amgen is the better dividend stock. The article Better Dividend Stock: Amgen, Inc. or AbbVie Inc.? | The article Better Dividend Stock: Amgen, Inc. or AbbVie Inc.? The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Even though AbbVie's projected yield of 3.2% looks far juicier than Amgen's 1.9% dividend yield, the truth of the matter is that Amgen is the better dividend stock. | Even though AbbVie's projected yield of 3.2% looks far juicier than Amgen's 1.9% dividend yield, the truth of the matter is that Amgen is the better dividend stock. The article Better Dividend Stock: Amgen, Inc. or AbbVie Inc.? AbbVie's hepatitis C direct-acting antiviral will certain help ebb some of its Humira woes, as will the Shire buy, but I'd consider the company no lock to be able to keep its payout where it is now. | The article Better Dividend Stock: Amgen, Inc. or AbbVie Inc.? Even though AbbVie's projected yield of 3.2% looks far juicier than Amgen's 1.9% dividend yield, the truth of the matter is that Amgen is the better dividend stock. AbbVie's hepatitis C direct-acting antiviral will certain help ebb some of its Humira woes, as will the Shire buy, but I'd consider the company no lock to be able to keep its payout where it is now. |
27354.0 | 2014-10-04 00:00:00 UTC | Gilead Sciences, Inc. Got 2 Drugs Approved, and Didn't Bother to Tell Anyone | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc-got-2-drugs-approved-and-didnt-bother-tell-anyone-2014-10-04 | nan | nan | The Food and Drug Administration approved two new HIV drugs last week -- Tybost and Vitekta -- but Gilead Sciences didn't even bother to issue a press release on its website. It might be a sign of the times: Hepatitis C has become more important to the big biotech than HIV. Last week, Gilead Sciences announced that the European CHMP gave its hepatitis C cocktail, Harvoni, a positive opinion, so it wasn't like the press office was on vacation.
But there's more to it than that. Tybost and Vitekta are already on the market as part of Gilead Sciences' quad pill Stribild, which was approved more than two years ago.
Around the same time, Gilead asked that the individual components be approved so they could be combined with other medications; but in April 2013, the FDA turned down the drugs because there were issues with Gilead's quality control tests. A year and a half later, Gilead Sciences fixed the problems, and the FDA signed off on the marketing of the drugs individually.
More cocktails
Neither of the drugs will be used by themselves. Gilead is making them available so they can be used in combination with other company's HIV drugs.
Tybost is a boosting agent, designed to increase the blood levels of protease inhibitors, such as Bristol-Myers Squibb 's Reyataz, and Johnson & Johnson 's Prezista. The increased concentration, which is currently achieved by taking AbbVie 's booster Norvir, allows the protease inhibitors to be dosed just once a day.
In a clinical trial, Tybost was shown to be non-inferior to Norvir when the drugs were combined with Reyataz and Gilead's Truvada. Without any efficacy advantage, it's hard to see patients switching from Norvir to Tybost if the former is working for them. Gilead might be able to use its marketing muscle to promote sales for new patients, but most of them start on all-in-one combination pills like Stribild and Atripla.
Vitekta is an integrase inhibitor, which prevents the HIV DNA from being integrated into the DNA of the cells it infects. Merck also has an integrase inhibitor, Isentress, which worked as well as Vitekta in a phase 3 trial with other medications. Vitekta only has to be taken once a day, which is more convenient than Isentress' twice-a-day regimen. Unfortunately, AbbVie's Tivicay, which is in the same class, only has to be taken once a day, also, so it's not clear Vitekta has much to offer over the drugs doctors have been prescribing.
Gilead might be able to generate some sales of the individual drugs from patients coming off of Stribild because of side effects. Doctors may be interested in changing just one component at a time to figure out the issue, which they can do now that the individual drugs are available.
Of course, that probably doesn't include a lot of patients. Combine that fact with its limited use in other combinations, and you'll likely find the explanation as to why Gilead didn't bother to announce the approvals.
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 will 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. In order to outsmart Wall Street and realize multi-bagger returns, you will need The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Gilead Sciences, Inc. Got 2 Drugs Approved, and Didn't Bother to Tell Anyone originally appeared on Fool.com.
Brian Orelli has no position in any stocks 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 - 2014 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 increased concentration, which is currently achieved by taking AbbVie 's booster Norvir, allows the protease inhibitors to be dosed just once a day. Unfortunately, AbbVie's Tivicay, which is in the same class, only has to be taken once a day, also, so it's not clear Vitekta has much to offer over the drugs doctors have been prescribing. Last week, Gilead Sciences announced that the European CHMP gave its hepatitis C cocktail, Harvoni, a positive opinion, so it wasn't like the press office was on vacation. | The increased concentration, which is currently achieved by taking AbbVie 's booster Norvir, allows the protease inhibitors to be dosed just once a day. Unfortunately, AbbVie's Tivicay, which is in the same class, only has to be taken once a day, also, so it's not clear Vitekta has much to offer over the drugs doctors have been prescribing. The Food and Drug Administration approved two new HIV drugs last week -- Tybost and Vitekta -- but Gilead Sciences didn't even bother to issue a press release on its website. | The increased concentration, which is currently achieved by taking AbbVie 's booster Norvir, allows the protease inhibitors to be dosed just once a day. Unfortunately, AbbVie's Tivicay, which is in the same class, only has to be taken once a day, also, so it's not clear Vitekta has much to offer over the drugs doctors have been prescribing. The Food and Drug Administration approved two new HIV drugs last week -- Tybost and Vitekta -- but Gilead Sciences didn't even bother to issue a press release on its website. | The increased concentration, which is currently achieved by taking AbbVie 's booster Norvir, allows the protease inhibitors to be dosed just once a day. Unfortunately, AbbVie's Tivicay, which is in the same class, only has to be taken once a day, also, so it's not clear Vitekta has much to offer over the drugs doctors have been prescribing. The Food and Drug Administration approved two new HIV drugs last week -- Tybost and Vitekta -- but Gilead Sciences didn't even bother to issue a press release on its website. |
27355.0 | 2014-10-03 00:00:00 UTC | Jazz Pharmaceuticals Uses New Cash To Buy For Growth | ABBV | https://www.nasdaq.com/articles/jazz-pharmaceuticals-uses-new-cash-buy-growth-2014-10-03 | nan | nan | Just a few years ago, one drug generated all but a small slice of revenue for Jazz Pharmaceuticals.
And though the drug, Xyrem, targeted a small patient population of narcolepsy sufferers -- people prone to fall suddenly asleep in the middle of the day -- its high price made the sales effort worthwhile.
Jazz Pharmaceuticals ( JAZZ ) kept raising prices with little resistance. And that helped it generate a long string of double- or triple-digit earnings gains each quarter over the earlier year.
The specialty pharma firm is still raising prices on Xyrem and making lots of money from the drug. Xyrem sales in Q2 jumped 43% over a year ago to $191.4 million. And that was from just 11,750 patients.
But Jazz has more specialty drugs under its helm now, thanks to a series of transactions over the last two years. Three were completed this year alone in sleep medicine and hematology/oncology.
"They are no longer a one-trick pony," said Difei Yang, an analyst with the brokerage R.F. Lafferty.
Greener In Ireland
Deals to expand the product line began not long after Jazz merged with the Irish drug company Azure Pharma in January 2012 and officially moved to Ireland.
The tax inversion lowered its corporate tax rate, giving it more financial means to expand.
"Jazz became an Ireland company when nobody was talking about (tax inversions)," Yang said.
Many drug and medical companies have announced inversion plans over the last year. The pace picked up this year ahead of potential rule changes by the U.S. government to block inversions or make them harder.
Among those currently pursuing tax inversions areAbbVie ( ABBV ) (withShire ( SHPG ),Mylan ( MYL ) (withAbbott Laboratories' ( ABT ) generic drug unit) andMedtronic (MDT), withCovidien (COV), among others.
Specialty biopharma firmHorizon Pharma (HZNP) completed an inversion in mid-September, moving its corporate headquarters to Dublin from Illinois.
Jazz's corporate move to Dublin has paid off, analysts say. In a report over the summer, Deutsche Bank analysts said that Jazz's Irish domicile "allows the company to maximize cash flow and support business development activity."
Jazz's cash tax rate fell from 35% to 40% to the "high teens," the analysts noted.
Yang told IBD that the tax savings allowed Jazz "to do one acquisition after another. And they said they are still looking. I would not be surprised if we see another deal before the year ends."
Three months after the Azur merger and the move to Ireland, Jazz agreed to acquire specialty drug firm Eusa Pharma for $650 million. Eusa's lead product, Erwinaze, is a life-saving treatment for patients with acute lymphoblastic leukemia, which mostly affects children.
The transaction, which closed in June 2012, was expected to add $210 to $230 million in revenue in 2013 and $0.75 to $0.85 in adjusted earnings per share. Jazz's 2013 revenue climbed 49% to $872 million. EPS rose 31% to $6.31.
Jazz has been rumored to be a potential takeover candidate itself, as a way forAllergan (AGN) to thwart a hostile takeover bid fromValeant Pharmaceuticals (VRX).
Jazz's second biggest drug after Xyrem, Erwinaze and its counterpart Erwinase (sold outside the U.S.) took in $47.9 million in sales in Q2, up 7% from the same time last year. It made up 16.4% of total revenue. Xyrem made up 65.7%.
Jazz's total revenue in the quarter grew 40% to $291.2 million.
Full-year revenue is seen rising 33% to nearly $1.16 billion, according to Thomson Reuters. That's more that twice as much as 2012's tally. Earnings are expected to jump 30% to $8.19 a share.
At 7% of revenue, or $20.2 million, the third biggest contributor to sales in Q2 was the drug defibrotide. It treats patients with severe VOD, or hepatic veno-occlusive disease, who undergo stem-cell transplant therapy.
Early this year, Jazz paid $1 billion for indirect majority control of Italian biotech firm Gentium. The acquisition gave Jazz the right to market the drug in the European Union, where it goes by the brand name Defitelio.
In early August, Jazz acquired the rights to defibrotide in the Americas from Sigma-Tau Pharmaceuticals. It's seeking approval from the Food and Drug Administration to target a similar VOD patient population in the U.S.
"The company was able to diversify its revenue stream, but Xyrem still accounts for a significant portion and is still growing significantly," Yang said. "We will have to wait and see on the other products."
JPMorgan analyst Jessica Fye estimates that Xyrem accounts for 80% of Jazz's per-share earnings and remains a key growth driver, fueled by volume and price gains.
In a recent report, she and her associates forecast Xyrem to hit $1.5 billion in sales "over time," since the number of patients treated with the drug is low compared with the overall narcolepsy population.
Protected Turf
Despite challenges, analysts believe Jazz will enjoy patent protections on Xyrem through 2019 at the earliest and up to 2033, when the last of several patents expires. But JPMorgan also expects Jazz to continue to reduce reliance on Xyrem via further acquisitions, aided by up to $3 billion in borrowing capacity plus acquired cash flow.
"In the context of an ongoing wave of consolidation in the specialty pharmaceuticals sector, we see Jazz as well positioned from both an organic growth and (an) acquisition standpoint," Fye wrote.
She likened Jazz to a small biotech company because of its focus on a "very specific" disease area and patient population in narcolepsy and oncology.
"The company's focus on extremely specialized products sets it apart from the majority of its specialty pharma peers," she wrote.
Positive results from clinical trials could expand Jazz's reach. This year, Jazz acquired a stay-awake compound from Aerial BioPharma. Jazz and partnerConcert Pharmaceuticals (CNCE) announced in July the start of a Phase I trial for JZP-386, the active ingredient in Xyrem, for potential new dosing regimens.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 those currently pursuing tax inversions areAbbVie ( ABBV ) (withShire ( SHPG ),Mylan ( MYL ) (withAbbott Laboratories' ( ABT ) generic drug unit) andMedtronic (MDT), withCovidien (COV), among others. And though the drug, Xyrem, targeted a small patient population of narcolepsy sufferers -- people prone to fall suddenly asleep in the middle of the day -- its high price made the sales effort worthwhile. JPMorgan analyst Jessica Fye estimates that Xyrem accounts for 80% of Jazz's per-share earnings and remains a key growth driver, fueled by volume and price gains. | Among those currently pursuing tax inversions areAbbVie ( ABBV ) (withShire ( SHPG ),Mylan ( MYL ) (withAbbott Laboratories' ( ABT ) generic drug unit) andMedtronic (MDT), withCovidien (COV), among others. And though the drug, Xyrem, targeted a small patient population of narcolepsy sufferers -- people prone to fall suddenly asleep in the middle of the day -- its high price made the sales effort worthwhile. Greener In Ireland Deals to expand the product line began not long after Jazz merged with the Irish drug company Azure Pharma in January 2012 and officially moved to Ireland. | Among those currently pursuing tax inversions areAbbVie ( ABBV ) (withShire ( SHPG ),Mylan ( MYL ) (withAbbott Laboratories' ( ABT ) generic drug unit) andMedtronic (MDT), withCovidien (COV), among others. Just a few years ago, one drug generated all but a small slice of revenue for Jazz Pharmaceuticals. Greener In Ireland Deals to expand the product line began not long after Jazz merged with the Irish drug company Azure Pharma in January 2012 and officially moved to Ireland. | Among those currently pursuing tax inversions areAbbVie ( ABBV ) (withShire ( SHPG ),Mylan ( MYL ) (withAbbott Laboratories' ( ABT ) generic drug unit) andMedtronic (MDT), withCovidien (COV), among others. "Jazz became an Ireland company when nobody was talking about (tax inversions)," Yang said. Specialty biopharma firmHorizon Pharma (HZNP) completed an inversion in mid-September, moving its corporate headquarters to Dublin from Illinois. |
27356.0 | 2014-10-02 00:00:00 UTC | AbbVie's (ABBV) Humira Gains Yet Another FDA Approval - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-humira-gains-yet-another-fda-approval-analyst-blog-2014-10-02 | nan | nan | AbbVie 's ( ABBV ) key growth engine is Humira. Sales of the company's flagship product, approved for multiple indications, had increased 10.7% to $10.7 billion in 2013. The company expects Humira to continue exhibiting double-digit operational growth.
Last week, AbbVie secured yet another FDA approval for Humira. Humira is now cleared in as many as eight indications in the U.S. Following the latest approval, AbbVie can be used to treat children (aged six years and above) suffering from moderately to severely active Crohn's disease, an inflammatory bowel disease. Humira therapy can also be used to achieve and maintain clinical remission in the above mentioned patient population. The patients did not respond favorably to corticosteroids or immunomodulators including azathioprine, 6-mercaptopurine or methotrexate. The latest label expansion for Humira was gained on the basis of encouraging data from a phase III multi-center, randomized, double-blind study (IMAgINE-1).
AbbVie stated in its press release that following the FDA's decision, Humira becomes the first and only approved biologic therapy that can be administered at home in the above patient population. AbbVie also said that the disease, characterized by disorders including abdominal pain, weight-loss and diarrhea, is prevalent in approximately 38,000 children and teenagers in the U.S. The latest label expansion will further boost the sales potential of AbbVie's flagship product.
Investors interested in the health care space may consider stocks like Gilead Sciences ( GILD ), Medivation ( MDVN ) and Endo International ( ENDP ).
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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 stated in its press release that following the FDA's decision, Humira becomes the first and only approved biologic therapy that can be administered at home in the above patient population. AbbVie 's ( ABBV ) key growth engine is Humira. Last week, AbbVie secured yet another FDA approval for Humira. | Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie 's ( ABBV ) key growth engine is Humira. Last week, AbbVie secured yet another FDA approval for Humira. | AbbVie stated in its press release that following the FDA's decision, Humira becomes the first and only approved biologic therapy that can be administered at home in the above patient population. Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie 's ( ABBV ) key growth engine is Humira. | AbbVie stated in its press release that following the FDA's decision, Humira becomes the first and only approved biologic therapy that can be administered at home in the above patient population. Click to get this free report ENDO INTL PLC (ENDP): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie 's ( ABBV ) key growth engine is Humira. |
27357.0 | 2014-10-01 00:00:00 UTC | Abbott Labs Completes CFR Pharmaceuticals Acquisition - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbott-labs-completes-cfr-pharmaceuticals-acquisition-analyst-blog-2014-10-01 | nan | nan | Abbott Labs ( ABT ) became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ) in Jan 2013.
The company is looking to strengthen its presence in the fast-growing emerging markets to bolster its overall growth through acquisitions and deals. Abbott Labs recently completed its previously-announced acquisition of CFR Pharmaceuticals for approximately $2.9 billion.
Headquartered in Chile, CFR Pharmaceuticals has a comprehensive product portfolio with operations across 15 Latin American markets. CFR Pharmaceuticals' business is expected to be complementary to Abbott Labs' current pharmaceutical therapeutic areas of focus including women's health, central nervous system, cardiovascular and respiratory diseases.
The CFR Pharmaceuticals acquisition is expected to establish Abbott Labs among the top 10 pharmaceutical companies in Latin America. The acquisition should also double Abbott Labs' presence in the branded generics pharmaceutical space along with expanding its footprint in emerging markets.
As per IMS forecasts, the Latin American pharmaceutical market will grow to $124 billion by 2018. Annual growth rates in these markets are expected to be two to three times that of developed markets over the coming years.
The transaction is expected to be accretive to the bottom line in 2015.
The business environment continues to be challenging in the developed markets. Hence, Abbott Labs' efforts to broaden its presence in the emerging markets will help the company to combat the challenging business environment in the world and maintain its top-line growth.
Investors interested in the health care space may consider stocks like Johnson & Johnson ( JNJ ) and Bristol-Myers Squibb ( BMY ).
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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. | Abbott Labs ( ABT ) became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ) in Jan 2013. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Headquartered in Chile, CFR Pharmaceuticals has a comprehensive product portfolio with operations across 15 Latin American markets. | Abbott Labs ( ABT ) became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ) in Jan 2013. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 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. | Abbott Labs ( ABT ) became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ) in Jan 2013. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The CFR Pharmaceuticals acquisition is expected to establish Abbott Labs among the top 10 pharmaceutical companies in Latin America. | Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ) in Jan 2013. The CFR Pharmaceuticals acquisition is expected to establish Abbott Labs among the top 10 pharmaceutical companies in Latin America. |
27358.0 | 2014-10-01 00:00:00 UTC | AbbVie Announces Positive Results on Oncology Candidate - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvie-announces-positive-results-on-oncology-candidate-analyst-blog-2014-10-01 | 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.
Last week, AbbVie ( ABBV ) announced positive results from early and mid-stage studies on its oncology candidate, veliparib. Results from the studies were presented at the Annual Congress of the European Society for Medical Oncology (ESMO).
AbbVie announced interim results from a phase II study on veliparib plus Bristol-Myers Squibb Company's ( BMY ) Paraplatin (carboplatin) and Taxol (paclitaxel) chemotherapeutic medicines in patients with previously untreated metastatic or advanced non-small cell lung cancer (NSCLC). Data revealed that a 35% improvement in progression-free survival and a 30% improvement in overall survival were observed in patients under the veliparib arm. Earlier this year, AbbVie started a phase III study on veliparib in patients suffering from squamous NSCLC.
AbbVie also presented data from a phase I study on veliparib plus Paraplatin and Taxol in Japanese patients suffering from NSCLC. Results revealed that an overall response rate of 54.5% was observed in the veliparib arm.
Presently, Pfizer ( PFE ) has an approved drug for NSCLC in Xalkori.
Meanwhile, AbbVie is also developing veliparib for the treatment of patients suffering from human epidermal growth factor receptor 2 (HER2) negative metastatic or locally advanced breast cancer, containing BRCA1 (breast cancer gene 1) and/or BRCA2 (breast cancer gene 2) mutations (read more: AbbVie's Oncology Candidate Progresses ).
Investors in the health care sector can also consider stocks like Johnson & Johnson ( JNJ ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last week, AbbVie ( ABBV ) announced positive results from early and mid-stage studies on its oncology candidate, veliparib. AbbVie announced interim results from a phase II study on veliparib plus Bristol-Myers Squibb Company's ( BMY ) Paraplatin (carboplatin) and Taxol (paclitaxel) chemotherapeutic medicines in patients with previously untreated metastatic or advanced non-small cell lung cancer (NSCLC). Earlier this year, AbbVie started a phase III study on veliparib in patients suffering from squamous NSCLC. | AbbVie announced interim results from a phase II study on veliparib plus Bristol-Myers Squibb Company's ( BMY ) Paraplatin (carboplatin) and Taxol (paclitaxel) chemotherapeutic medicines in patients with previously untreated metastatic or advanced non-small cell lung cancer (NSCLC). Meanwhile, AbbVie is also developing veliparib for the treatment of patients suffering from human epidermal growth factor receptor 2 (HER2) negative metastatic or locally advanced breast cancer, containing BRCA1 (breast cancer gene 1) and/or BRCA2 (breast cancer gene 2) mutations (read more: AbbVie's Oncology Candidate Progresses ). Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie announced interim results from a phase II study on veliparib plus Bristol-Myers Squibb Company's ( BMY ) Paraplatin (carboplatin) and Taxol (paclitaxel) chemotherapeutic medicines in patients with previously untreated metastatic or advanced non-small cell lung cancer (NSCLC). Meanwhile, AbbVie is also developing veliparib for the treatment of patients suffering from human epidermal growth factor receptor 2 (HER2) negative metastatic or locally advanced breast cancer, containing BRCA1 (breast cancer gene 1) and/or BRCA2 (breast cancer gene 2) mutations (read more: AbbVie's Oncology Candidate Progresses ). Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie announced interim results from a phase II study on veliparib plus Bristol-Myers Squibb Company's ( BMY ) Paraplatin (carboplatin) and Taxol (paclitaxel) chemotherapeutic medicines in patients with previously untreated metastatic or advanced non-small cell lung cancer (NSCLC). AbbVie also presented data from a phase I study on veliparib plus Paraplatin and Taxol in Japanese patients suffering from NSCLC. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. |
27359.0 | 2014-09-28 00:00:00 UTC | The Next Industry Google Plans to Transform | ABBV | https://www.nasdaq.com/articles/next-industry-google-plans-transform-2014-09-28 | nan | nan | When you think of Google , biotechnology is probably the last thing that comes to mind. Even so, you might be amazed to learn that the Internet and tech giant has become an important force in this industry in recent years.
Through its wholly backed research and development company called Calico and its Google Ventures wing, Google has been funding early stage technologies that seek to transform modern medicine as we know it.
Calico is tackling the root cause of most diseases: aging
Most human diseases have the same fundamental cause, namely the breakdown of cellular machinery as we age. Cancer, for example, is quite literally a failure of our immune system to defend our bodies against the vagaries of aging.
At the cellular level, many cancer types can be traced to the deterioration of protective repeating segments of DNA called telomeres on the ends of our chromosomes. Despite an increasing understanding of the biology behind aging and the role of telomeres, few biotech companies have dared to base a drug discovery platform on this knowledge base, and for good reason.
Geron , for instance, has been working on the clinical development of a telomerase-inhibitor known as imetelstat, indicated for a number of blood-based cancers.The drug has run into several problems in the clinic, causing Geron to repeatedly dilute early shareholders, and crashing its share price in the process, as shown by the chart below.
Because early stage drugs that aim to cure diseases don't readily attract investors for the very reasons Geron has struggled since its inception, Calico was founded as a private venture fully backed by Google. The company is headed by former Genentech CEO Arthur D. Levinson and has the long view in mind.
Per the company's website , Calico is looking to support early stage high impact technologies that could take 10 to 20 years to successfully bring to market. And we are now getting a glimpse of what Calico means by "high impact."
Earlier this month, Calico penned two significant research deals with 2M and AbbVie . In the agreement with 2M, Calico will fund the discovery and development of so-called P7C3 compounds that help to regulate the metabolism of nerve cells and are thought to potentially play a role in countering neurodegenerative disorders such as Parkinson's disease.
The AbbVie deal calls for Calico to spend upward of $750 million to construct a world-class research facility that will focus on age-related diseases. AbbVie's primary role in the collaboration is to mentor the young start-up in the conduct of clinical trials and commercialization of experimental compounds. All told, the two companies plan to spend $1.5 billion on this attempt to unravel the secrets of aging.
Google Ventures is also backing speculative biotech in a big way
Aside from Calico's brick-and-mortar approach to drug discovery, Google has stepped into the biotech pool as a behind-the-scenes investor as well. For example, Google Ventures has taken a massive position in Foundation Medicine , a company attempting to develop individualized oncology tests that could be used to make personalized-medicines .
The premise is simple. Every cancer is unique at the individual level and treatments therefore require a personalized approach. This problem is likely the underlying reason why most cancer drugs in use today do little beyond extending lifespan for a couple months, and cures have been frustratingly elusive. Foundation Medicine hopes to change this outlook by helping to usher in the era of personalized medicine.
Thinking big
Per usual, Google is thinking big when it comes to innovation. Life scientists have long wanted to go after the core problems hampering the evolution of medicine, but have been desperately short on investors willing to take such a huge risk. This is illustrated by the plight of Geron discussed above.
Google is apparently well aware of these risks, and so are partners such as AbbVie. Even so, I think it speaks volumes that Calico was able to convince this industry stalwart to join the fight.
Overall, Google's biotech adventures probably won't pay huge dividends for perhaps another decade or so. But by then, we might come to think of this Internet giant as a pioneer in the field of human medicine and a biotech dominator.
But there's an even bigger opportunity out there.
Let's face it -- the best 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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article The Next Industry Google Plans to Transform originally appeared on Fool.com.
George Budwell has no position in any stocks mentioned. The Motley Fool recommends Google (C shares). The Motley Fool owns shares of Google (C shares). 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 - 2014 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, Calico penned two significant research deals with 2M and AbbVie . The AbbVie deal calls for Calico to spend upward of $750 million to construct a world-class research facility that will focus on age-related diseases. AbbVie's primary role in the collaboration is to mentor the young start-up in the conduct of clinical trials and commercialization of experimental compounds. | Earlier this month, Calico penned two significant research deals with 2M and AbbVie . The AbbVie deal calls for Calico to spend upward of $750 million to construct a world-class research facility that will focus on age-related diseases. AbbVie's primary role in the collaboration is to mentor the young start-up in the conduct of clinical trials and commercialization of experimental compounds. | Earlier this month, Calico penned two significant research deals with 2M and AbbVie . The AbbVie deal calls for Calico to spend upward of $750 million to construct a world-class research facility that will focus on age-related diseases. AbbVie's primary role in the collaboration is to mentor the young start-up in the conduct of clinical trials and commercialization of experimental compounds. | Earlier this month, Calico penned two significant research deals with 2M and AbbVie . The AbbVie deal calls for Calico to spend upward of $750 million to construct a world-class research facility that will focus on age-related diseases. AbbVie's primary role in the collaboration is to mentor the young start-up in the conduct of clinical trials and commercialization of experimental compounds. |
27360.0 | 2014-09-27 00:00:00 UTC | These Companies Are Saving Money and Sticking You With a Tax Bill | ABBV | https://www.nasdaq.com/articles/these-companies-are-saving-money-and-sticking-you-tax-bill-2014-09-27 | nan | nan | Ireland, with its low corporate tax rate, has become a popular destination for U.S. companies.
On the surface, tax inversions seem like a great deal for investors. A U.S. company buys a foreign company, moves its headquarters abroad, and inherits a tax rate lower than what it paid at home.
Costs go down. Profits go up. What more could an investor want?
How about not getting a tax bill themselves , for starters.
Let me explain
Tax inversions -- such as Burger King 's purchase of Canadian chain Tim Hortons , Medtronic 's acquisition of Ireland-based Covidien , and AbbVie 's buyout of Shire -- are classified by the IRS as a taxable event.
Investors are used to getting hit with a capital-gains tax bill when a company is bought out; it's the downside of owning a sought-after asset. Fortunately, the cash from the buyout can be used to pay the bill from Uncle Sam.
After a tax inversion, though, investors are typically hit with the same kind of capital-gains tax they pay when shares have appreciated since they were purchased. But they generally don't get any cash from the merger to pay the bill.
Tweaking the deal
As if these tax inversions weren't complicated enough, Burger King has set up its acquisition to allow investors the option of swapping their shares for partnership units.
Owning a unit in the newly formed Ontario limited partnership, which will be controlled by the new parent company, is apparently not a taxable event. After a year, the units can then be exchanged for shares of the new parent company.
More taxes for executives
In an effort to discourage companies from inverting, Congress set up an additional 15% tax on stock-based compensation of executives at companies that make this move.
Don't feel too bad for the executives at Medtronic and AbbVie, though. The boards of both companies agreed to pay the extra tax bills for their executives. For Medtronic CEO Omar Ishrak, the handout amounted to a whopping $24.8 million.
The argument for paying executives' tax bills sounds good in theory: You don't want executives making the decision not to invert simply for the benefit of their pocketbooks.
However, I'd argue that shareholders' tax burden should come into consideration. That's the definition of fiduciary duty: making decisions that are in the best interest of shareholders. Perhaps management teams should think twice about the tax implications before deciding to invert.
A couple of good guys
Biogen Idec 's management certainly has. After being asked during a recent conference call about the potential for the company to do a tax inversion, Biogen CFO Paul Clancy made it clear the management team is taking investors into consideration:
Walgreeen also seems to have taken investors' best interests into account when it elected to stay stateside after the acquisition of European pharmacy and wholesaler Alliance Boots. Granted, the decision was based partly on legal considerations (it's not clear a merger with Alliance Boots would have qualified as a tax inversion, and who wants to be tied up in court for years?) and partly on public relations.
Moot point?
The Treasury Department recently announced new rules designed to make it harder for companies to invert.
Most of the new rules involve the treatment of cash abroad that companies typically use to make their foreign acquisitions. Because the cash wasn't earned in the U.S., it isn't subject to domestic taxation until it's brought into the U.S. The new rules will make it harder for companies to shelter that foreign cash to avoid U.S. tax.
Another rule strengthens the requirement that the former owners of the U.S. company own less than 80% of the new company. That's always been a rule to keep companies from buying small foreign companies simply in order to move abroad, but Treasury has plugged a few loopholes that companies have used to meet the less-than-80% rule.
Only time will tell if these new rules are enough to discourage companies from inverting. It might take an act of Congress to make new laws that have enough teeth to hamper the flight abroad that leaves investors with a tax bill.
Companies aren't the only ones that can take advantage tax "loopholes"
Whether you're getting hit with a capital gains tax due to a tax inversion or you just think your taxes are too high, with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report " The IRS Is Daring You to Make This Investment Now! ," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.
The article These Companies Are Saving Money and Sticking You With a Tax Bill originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Burger King and Covidien. The Motley Fool owns shares of Medtronic. 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 - 2014 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. | Let me explain Tax inversions -- such as Burger King 's purchase of Canadian chain Tim Hortons , Medtronic 's acquisition of Ireland-based Covidien , and AbbVie 's buyout of Shire -- are classified by the IRS as a taxable event. Don't feel too bad for the executives at Medtronic and AbbVie, though. Tweaking the deal As if these tax inversions weren't complicated enough, Burger King has set up its acquisition to allow investors the option of swapping their shares for partnership units. | Let me explain Tax inversions -- such as Burger King 's purchase of Canadian chain Tim Hortons , Medtronic 's acquisition of Ireland-based Covidien , and AbbVie 's buyout of Shire -- are classified by the IRS as a taxable event. Don't feel too bad for the executives at Medtronic and AbbVie, though. A U.S. company buys a foreign company, moves its headquarters abroad, and inherits a tax rate lower than what it paid at home. | Let me explain Tax inversions -- such as Burger King 's purchase of Canadian chain Tim Hortons , Medtronic 's acquisition of Ireland-based Covidien , and AbbVie 's buyout of Shire -- are classified by the IRS as a taxable event. Don't feel too bad for the executives at Medtronic and AbbVie, though. More taxes for executives In an effort to discourage companies from inverting, Congress set up an additional 15% tax on stock-based compensation of executives at companies that make this move. | Let me explain Tax inversions -- such as Burger King 's purchase of Canadian chain Tim Hortons , Medtronic 's acquisition of Ireland-based Covidien , and AbbVie 's buyout of Shire -- are classified by the IRS as a taxable event. Don't feel too bad for the executives at Medtronic and AbbVie, though. How about not getting a tax bill themselves , for starters. |
27361.0 | 2014-09-27 00:00:00 UTC | Apple vs. Google: Which Tech Giant Will Conquer Healthcare? | ABBV | https://www.nasdaq.com/articles/apple-vs-google-which-tech-giant-will-conquer-healthcare-2014-09-27 | nan | nan | Apple has recently dominated headlines, with iPhone 6 and iPhone 6 Plus shattering records with sales of 10 million units within the first three days.
Despite that explosive launch, Apple announced a disappointing setback with the launch of iOS 8 -- HealthKit, its eagerly anticipated unified platform for wearables, fitness apps, and personal health data, had been delayed due to a "bug." Apple announced that a software update would make "HealthKit apps available by the end of the month."
This delay shows how hard it can be to digitize the fragmented healthcare industry. Apple has made more progress toward that elusive goal than any tech company with high profile EHR, wearable, and mobile health partnerships. By comparison, Google has taken an industry-straddling approach to healthcare, expanding into biotech, medical devices, and mobile health at the same time.
Therefore, let's take a moment to compare the two tech giants' aggressive expansions into the healthcare industry.
Apple's HealthKit is limited by regulations and market share limitations
Apple has secured major alliances to lay out HealthKit's foundations.
EHR companies Epic , Cerner , and Athenahealth will connect their patient records to HealthKit. Epic and Cerner account for more than three-fourths of all EHRs in America, according to KLAS Research. HealthKit synchronizes data from iOS fitness apps and wearables into the iOS 8 Health app, and integrates health data from Mayo Clinic. Apple believes that the Apple Watch, which will arrive next year, will synchronize an individual's biometric data to this vast network.
Apple Watch. Source: Apple.
Apple envisions a future where a person's health data flows freely from an Apple Watch to an iPhone to a doctor's screen, putting everyone on the same page and eradicating medical errors and confusion. While that's a grand vision, there are two factors which could throttle HealthKit's growth.
First, HIPAA regulations, which are designed to protect patient records, will inevitably become a bottleneck which HealthKit apps and devices have to squeeze through to reach doctors. Security concerns, like those recently seen with iCloud (which Apple bans HealthKit data from) could prevent cautious users from logging their health data into the Health app.
Second, Apple's market share is the ultimate limit for HealthKit's market penetration. Apple controls 42% of the U.S. smartphone market, according to comScore, which makes it the ideal starting point for its healthcare efforts. But Apple only controls 12% of the global market, compared to 85% for Google Android, according to IDC -- indicating that Apple's efforts to digitize the health care industry will remain confined to less than half of the U.S. market.
Google focuses on longer-term goals
In comparison to Apple's focused strategy, Google's healthcare efforts are focused on longer-term goals.
Back in 2008, Google tried to create a unified personal health record for individuals, known as Google Health, by forging partnerships with EHR companies. However, Google shut down Health four years later due to a lack of participation from doctors and privacy concerns. Since then, Google hasn't tried to unify EHRs, as Apple is now doing with HealthKit.
Instead, Google is aiming much higher. Last September, it launched Calico, a biotech subsidiary focused on age-related diseases. Earlier this month, AbbVie signed a research partnership worth up to $1.5 billion with Calico to develop new drugs. Earlier this year, Google unveiled a smart contact lens which detects blood glucose levels through tears, which Novartis licensed in July. That same month, Google launched Project Baseline , an anonymized genetic database to identify biomarkers related to common diseases.
Google's smart lens ( L ) and Glass ( R ). Source: Google, Wikimedia Commons.
In hospitals, Google Glass is gaining momentum as a hands-free device for doctors . Several hospitals have started using Glass to streamline everyday routines, while smaller companies like Augmedix and Drchrono are streaming EHRs to Glass' heads-up display. In the consumer-facing market, Google has launched Android Wear, a scaled down version of Android for smartwatches, and will soon launch Google Fit, a unified dashboard for Android fitness apps and wearables.
The Foolish takeaway
In conclusion, Google's efforts are different from Apple's because they are focused on the future, rather than the present.
Calico and Project Baseline probably won't generate revenue over the next few years, but if Calico eventually launches a blockbuster drug, or Baseline becomes the "Google Search of DNA" for hospitals and life science companies, they could help Google straddle the tech and biotech industries -- something that Apple could only dream of doing.
Apple's HealthKit is a fascinating platform, but investors should realize that it faces a lot of questions regarding privacy, security, and public acceptance before it can realize the company's dream of tethering patients and doctors to the cloud with iOS devices.
Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. 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 where the real money is to be made, just click here !
The article Apple vs. Google: Which Tech Giant Will Conquer Healthcare? originally appeared on Fool.com.
Leo Sun owns shares of Apple. The Motley Fool recommends Apple, Athenahealth, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Google (A shares), and Google (C shares). 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 - 2014 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 signed a research partnership worth up to $1.5 billion with Calico to develop new drugs. Apple has made more progress toward that elusive goal than any tech company with high profile EHR, wearable, and mobile health partnerships. First, HIPAA regulations, which are designed to protect patient records, will inevitably become a bottleneck which HealthKit apps and devices have to squeeze through to reach doctors. | Earlier this month, AbbVie signed a research partnership worth up to $1.5 billion with Calico to develop new drugs. Despite that explosive launch, Apple announced a disappointing setback with the launch of iOS 8 -- HealthKit, its eagerly anticipated unified platform for wearables, fitness apps, and personal health data, had been delayed due to a "bug." HealthKit synchronizes data from iOS fitness apps and wearables into the iOS 8 Health app, and integrates health data from Mayo Clinic. | Earlier this month, AbbVie signed a research partnership worth up to $1.5 billion with Calico to develop new drugs. Calico and Project Baseline probably won't generate revenue over the next few years, but if Calico eventually launches a blockbuster drug, or Baseline becomes the "Google Search of DNA" for hospitals and life science companies, they could help Google straddle the tech and biotech industries -- something that Apple could only dream of doing. The Motley Fool recommends Apple, Athenahealth, Google (A shares), and Google (C shares). | Earlier this month, AbbVie signed a research partnership worth up to $1.5 billion with Calico to develop new drugs. Despite that explosive launch, Apple announced a disappointing setback with the launch of iOS 8 -- HealthKit, its eagerly anticipated unified platform for wearables, fitness apps, and personal health data, had been delayed due to a "bug." Apple has made more progress toward that elusive goal than any tech company with high profile EHR, wearable, and mobile health partnerships. |
27362.0 | 2014-09-26 00:00:00 UTC | 3 Reasons AbbVie Inc Stock Could Fall | ABBV | https://www.nasdaq.com/articles/3-reasons-abbvie-inc-stock-could-fall-2014-09-26 | nan | nan | Back in early 2013, there was considerable speculation about how Abbott Laboratories' then-new spin-off AbbVie would fare on its own. That speculation was answered by AbbVie's stock performance. Shares have surged around 65% since then. Meanwhile, Abbott Labs' shares climbed around 25% -- not bad, but small in comparison to AbbVie's successful run.
Solid results from blockbuster drug Humira continued to power AbbVie's stock upward this year. However, it could be time for more speculation. Will AbbVie's stock soon begin to slide after the positive momentum experienced over the last couple of years? Perhaps not, but there are three reasons the answer could be yes.
1. Regulatory roadblock
Many celebrated AbbVie's announcement in July that it planned to combine with Shire plc . The company stated that transaction would enable the "new" AbbVie to be domiciled in the United Kingdom and drastically lower its effective tax rate through what is known as a tax inversion. A merger with Shire also would help AbbVie diversify its product lineup, which is currently heavily dependent on Humira.
There's at least one potentially huge roadblock that could prevent the deal from materializing, though. European Union regulators must first agree to the merger. A decision is expected by Oct. 16.
At this point, the odds seem in favor of regulatory approval, but it's certainly possible that the deal could be blocked. If that happens, AbbVie's stock will no doubt take a hit.
2. Inversion implosion
Even if the European regulators give their blessing to AbbVie's merger with Shire, the U.S. might have just pronounced something close to a curse over the move. Earlier this week, the U.S. Treasury Department announced new rules that make tax inversion transactions significantly less beneficial.
The worst scenario resulting from the rule changes would be AbbVie backing out of the deal with Shire. That option seems unlikely, since the company would have to fork over as much as $1.6 billion to Shire if it decides against moving forward.
Plowing ahead, though, carries its own negative implications. One major problem is that the new rules won't allow AbbVie to use a "hopscotch loan," a term used to describe where the foreign subsidiary loans money to the parent company. That could make financing the $54 billion acquisition of Shire more costly. Don't be surprised if AbbVie's stock feels more pain as additional details unfold about how the rule changes will affect its plans.
3. Market malaise
Suppose, though, neither of the above possibilities prove to be as disastrous as they could be. European regulators give a thumbs up to the Shire merger. AbbVie figures out a way to move forward without jeopardizing much of the financial benefits. Unfortunately, shares could still fall due to external factors.
The stock market has become more jittery this week. All of the major indexes fell hard on Thursday. Volatility, as measured by the CBOE's S&P 500 Volatility Index shot up by 20%. World tensions combined with other factors appear to have investors worried.
Could AbbVie's stock go up even if the overall market goes down? Sure. Don't count on it, though. AbbVie's share prices tend to correlate with movement of the S&P 500.
Future fortunes
Long-term investors don't care as much about temporary states of affairs as they do the prospects of a business over multiple years. With that future-oriented perspective in mind, there are reasons to be more optimistic about AbbVie's fortunes.
Any level of tax savings from the Shire merger will free up money to pour into other products. Shire also brings several winners to AbbVie's lineup, including Vyvanse, Replagal, and Firazyr. All three drugs saw double-digit sales growth in the second quarter.
AbbVie also has its all-oral hepatitis C combo waiting in the wings. If the regimen gains approval as many expect, the hep-C combo could ultimately add annual revenue of at least $2 billion. And don't expect the hefty contribution from Humira to dry up anytime soon, even though the drug loses patent protection in 2016.
Do roadblocks, implosions, and malaise lie ahead for AbbVie? Maybe. But then again, a lot of money has been made over the years by smart and successful investors who didn't worry too much about maybe scenarios that come and go.
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The article 3 Reasons AbbVie Inc Stock Could Fall originally appeared on Fool.com.
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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. | Inversion implosion Even if the European regulators give their blessing to AbbVie's merger with Shire, the U.S. might have just pronounced something close to a curse over the move. Back in early 2013, there was considerable speculation about how Abbott Laboratories' then-new spin-off AbbVie would fare on its own. That speculation was answered by AbbVie's stock performance. | Inversion implosion Even if the European regulators give their blessing to AbbVie's merger with Shire, the U.S. might have just pronounced something close to a curse over the move. Back in early 2013, there was considerable speculation about how Abbott Laboratories' then-new spin-off AbbVie would fare on its own. That speculation was answered by AbbVie's stock performance. | Solid results from blockbuster drug Humira continued to power AbbVie's stock upward this year. Inversion implosion Even if the European regulators give their blessing to AbbVie's merger with Shire, the U.S. might have just pronounced something close to a curse over the move. Could AbbVie's stock go up even if the overall market goes down? | Could AbbVie's stock go up even if the overall market goes down? Back in early 2013, there was considerable speculation about how Abbott Laboratories' then-new spin-off AbbVie would fare on its own. That speculation was answered by AbbVie's stock performance. |
27363.0 | 2014-09-26 00:00:00 UTC | Gilead's HIV Drugs Tybost and Vitekta Get FDA Clearance - Analyst Blog | ABBV | https://www.nasdaq.com/articles/gileads-hiv-drugs-tybost-and-vitekta-get-fda-clearance-analyst-blog-2014-09-26 | nan | nan | Good news flowed in at Gilead Sciences ( GILD ) with the FDA clearing two of its HIV drugs - Tybost (cobicistat) and Vitekta (elvitegravir). Tybost has been approved in combination with other antiretroviral agents for treating patients with HIV-1 infection. Cobicistat acts as a "boosting" agent, whose addition causes blood levels of protease inhibitors, such as Bristol-Myers' ( BMY ) Reyataz and Johnson & Johnson's ( JNJ ) Prezista to increase, thereby enabling the HIV therapy to be dosed once daily.
Vitekta, which works by interfering with HIV replication, gained FDA approval for use in treatment experienced HIV-1 infected adults in combination with an HIV protease inhibitor co-administered with AbbVie's ( ABBV ) Norvir (ritonavir) and other antiretroviral treatments.
Second Time Lucky for these Drugs
The path leading to FDA approval has been anything but smooth for Tybost and Vitekta. Last year, the FDA declined to approve the drugs for use as part of HIV therapy regimens and issued complete response letters (read more: Double Setback for Gilead ). Following the receipt of the complete response letters, Gilead resubmitted the new drug applications and the FDA assigned target dates of Oct 3 and Oct 4 for deciding on Tybost and Vitekta respectively. However, the U.S. regulatory body arrived at its decision well before the PDUFA dates.
EU Approval Already in the Bag
The EU approval of these drugs has however been smooth. Tybost was cleared in the EU in Sep 2013. European approval for Vitekta was gained in Nov 2013. The sales potential of the HIV drugs would increase following their clearance in the U.S.
Gilead carries a Zacks Rank #1 (Strong Buy). Medivation ( MDVN ) is an equally well-ranked stock in the health care space.
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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. | Vitekta, which works by interfering with HIV replication, gained FDA approval for use in treatment experienced HIV-1 infected adults in combination with an HIV protease inhibitor co-administered with AbbVie's ( ABBV ) Norvir (ritonavir) and other antiretroviral treatments. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Good news flowed in at Gilead Sciences ( GILD ) with the FDA clearing two of its HIV drugs - Tybost (cobicistat) and Vitekta (elvitegravir). | Vitekta, which works by interfering with HIV replication, gained FDA approval for use in treatment experienced HIV-1 infected adults in combination with an HIV protease inhibitor co-administered with AbbVie's ( ABBV ) Norvir (ritonavir) and other antiretroviral treatments. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Good news flowed in at Gilead Sciences ( GILD ) with the FDA clearing two of its HIV drugs - Tybost (cobicistat) and Vitekta (elvitegravir). | Vitekta, which works by interfering with HIV replication, gained FDA approval for use in treatment experienced HIV-1 infected adults in combination with an HIV protease inhibitor co-administered with AbbVie's ( ABBV ) Norvir (ritonavir) and other antiretroviral treatments. Click to get this free report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. 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 BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Vitekta, which works by interfering with HIV replication, gained FDA approval for use in treatment experienced HIV-1 infected adults in combination with an HIV protease inhibitor co-administered with AbbVie's ( ABBV ) Norvir (ritonavir) and other antiretroviral treatments. Second Time Lucky for these Drugs The path leading to FDA approval has been anything but smooth for Tybost and Vitekta. |
27364.0 | 2014-09-25 00:00:00 UTC | Shire Resolves Litigation Related to Vyvanse, Adderall XR - Analyst Blog | ABBV | https://www.nasdaq.com/articles/shire-resolves-litigation-related-to-vyvanse-adderall-xr-analyst-blog-2014-09-25 | nan | nan | Shire ( SHPG ) announced that it has reached a final agreement with the U.S. Attorney's Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, all 50 states and the District of Columbia, thereby resolving its previously disclosed civil investigation of certain sales and marketing practices.
The sales and marketing practices relate to Shire's key drugs like Vyvanse, Adderall XR, along with Daytrana, Lialda and Pentasa.
Under the agreement, Shire is required to pay $56.5 million along with interest, fees and costs, to resolve the issues investigated by the government. In addition, the settlement includes the resolution of two related qui tam complaints filed against the company along with a voluntary disclosure related to Lialda and Pentasa.
Moreover, Shire will pay $2.9 million to resolve a previously disclosed civil complaint filed by the State of Louisiana. The complaint alleged that Shire had violated laws related to the sales, marketing and promotion of Adderall, Adderall XR, Vyvanse, Daytrana and Intuniv.
Last week, Shire announced that the FDA has accepted its supplemental New Drug Application for Vyvanse with priority review for the indication of binge eating disorder in adults. Vyvanse is already approved for attention deficit hyperactivity disorder (ADHD).
We remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Under the terms of the offer, shareholders of Shire will receive £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company).
Shire currently carries a Zacks Rank #2 (Buy). Other well-placed stocks in the broader health care sector include Jazz Pharmaceuticals ( JAZZ ) and Pacira Pharmaceuticals ( PCRX ). Both 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. | We remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Click to get this free report JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PACIRA PHARMACT (PCRX): Free Stock Analysis Report To read this article on Zacks.com click here. The sales and marketing practices relate to Shire's key drugs like Vyvanse, Adderall XR, along with Daytrana, Lialda and Pentasa. | Click to get this free report JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PACIRA PHARMACT (PCRX): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. The sales and marketing practices relate to Shire's key drugs like Vyvanse, Adderall XR, along with Daytrana, Lialda and Pentasa. | Click to get this free report JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PACIRA PHARMACT (PCRX): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Shire ( SHPG ) announced that it has reached a final agreement with the U.S. Attorney's Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, all 50 states and the District of Columbia, thereby resolving its previously disclosed civil investigation of certain sales and marketing practices. | Click to get this free report JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report PACIRA PHARMACT (PCRX): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that Shire finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. The sales and marketing practices relate to Shire's key drugs like Vyvanse, Adderall XR, along with Daytrana, Lialda and Pentasa. |
27365.0 | 2014-09-24 00:00:00 UTC | Gilead (GILD) Seeks Japanese Approval for HCV Combo Drug - Analyst Blog | ABBV | https://www.nasdaq.com/articles/gilead-gild-seeks-japanese-approval-for-hcv-combo-drug-analyst-blog-2014-09-24 | nan | nan | In a bid to strengthen its product portfolio further, Gilead Sciences ( GILD ) filed a New Drug Application (NDA) with Japan's Pharmaceutical and Medical Devices Agency (PMDA) seeking approval to market the fixed-dose combination of ledipasvir (a NS5A inhibitor: 90 mg) and Sovaldi (sofosbuvir: 400 mg) for treating adults suffering from chronic hepatitis C virus (HCV) genotype 1 infection.
Gilead filed the marketing application on the basis of encouraging data from a phase III Japanese study on the combination therapy. Results from the study supported the use of the cocktail therapy for 12 weeks in chronic genotype 1 HCV patients (treatment-naïve as well as treatment-experienced patients). The patient population is inclusive of those with cirrhosis (read more: Gilead's HCV Combination Therapy Data Looks Promising ).
We believe that the Japanese approval for the combination therapy would boost Gilead's top line further as genotype 1 is the most common HCV strain found in the country affecting 60% to 70% of the HCV population (excess of 1 million). Moreover, approval of the single-tablet regimen would eliminate the need for interferon and ribavirin which have significant side effects. The cocktail therapy is under review in the U.S. (FDA target date: Oct 10) and EU for treating HCV patients with genotype 1 version of the virus.
We note that Sovaldi is already available in the U.S. since Dec 2013. Approval in the EU and Canada was gained earlier this year. Japanese approval for Sovaldi was sought in Jun 2014 (read more: Gilead Seeks Japanese Approval for Sovaldi ). The drug performed very well in the first six months of 2014 notching up sales of approximately $5.8 billion.
However, analysis conducted by the researchers of CVS Health ( CVS ) Research Institute revealed that the overall usage of Sovaldi plateaued with a decline noticed between May and August this year. Moreover, the discontinuation rate associated with Sovaldi in the real world was four times more than the 2% (approximately) observed in clinical trials. Approval of Gilead's HCV combination therapy, expected later this year, would arrest the decline. We note that AbbVie ( ABBV ) is also looking to bring a combination therapy into the market for treating genotype 1 HCV.
Gilead carries a Zacks Rank #1 (Strong Buy). Medivation ( MDVN ) is an equally well-ranked stock in the health care space.
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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 ( ABBV ) is also looking to bring a combination therapy into the market for treating genotype 1 HCV. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report CVS HEALTH CORP (CVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In a bid to strengthen its product portfolio further, Gilead Sciences ( GILD ) filed a New Drug Application (NDA) with Japan's Pharmaceutical and Medical Devices Agency (PMDA) seeking approval to market the fixed-dose combination of ledipasvir (a NS5A inhibitor: 90 mg) and Sovaldi (sofosbuvir: 400 mg) for treating adults suffering from chronic hepatitis C virus (HCV) genotype 1 infection. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report CVS HEALTH CORP (CVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie ( ABBV ) is also looking to bring a combination therapy into the market for treating genotype 1 HCV. The patient population is inclusive of those with cirrhosis (read more: Gilead's HCV Combination Therapy Data Looks Promising ). | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report CVS HEALTH CORP (CVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. We note that AbbVie ( ABBV ) is also looking to bring a combination therapy into the market for treating genotype 1 HCV. In a bid to strengthen its product portfolio further, Gilead Sciences ( GILD ) filed a New Drug Application (NDA) with Japan's Pharmaceutical and Medical Devices Agency (PMDA) seeking approval to market the fixed-dose combination of ledipasvir (a NS5A inhibitor: 90 mg) and Sovaldi (sofosbuvir: 400 mg) for treating adults suffering from chronic hepatitis C virus (HCV) genotype 1 infection. | We note that AbbVie ( ABBV ) is also looking to bring a combination therapy into the market for treating genotype 1 HCV. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report CVS HEALTH CORP (CVS): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Approval of Gilead's HCV combination therapy, expected later this year, would arrest the decline. |
27366.0 | 2014-09-24 00:00:00 UTC | Celgene's Otezla Label Expanded to Include Plaque Psoriasis - Analyst Blog | ABBV | https://www.nasdaq.com/articles/celgenes-otezla-label-expanded-to-include-plaque-psoriasis-analyst-blog-2014-09-24 | nan | nan | Celgene Corporation ( CELG ) announced a label expansion for its drug Otezla in the U.S. Otezla, already approved by the FDA for treating adults suffering from active psoriatic arthritis, can now be used in treatment-naïve as well treatment experienced patients suffering from moderate-to-severe plaque psoriasis. The FDA approved the drug, an oral and selective inhibitor of phosphodiesterase 4 (PDE4), to treat those patients for whom phototherapy or systemic therapy is suitable.
Celgene said that following the FDA nod, Otezla becomes the first inhibitor in the above category to gain approval in the U.S. for the plaque psoriasis indication. Currently, psoriasis patients are mostly treated with injectable drugs like AbbVie's ( ABBV ) Humira and Amgen's ( AMGN ) Enbrel.
The FDA cleared Otezla for the new indication primarily on the basis of encouraging data from two multi-center, randomized, double-blind, placebo-controlled studies - ESTEEM 1 and ESTEEM 2. The U.S. regulatory body, however, recommended that patients taking Otezla should have their body weights monitored on a regular basis. Moreover, patients with a history of depression or suicidal behavior should inform the same to their doctors before commencing Otezla therapy.
We remind investors that Otezla gained FDA approval for the psoriatic arthritis indication in March this year (read more: Update on Celgene's Product Portfolio ). The drug contributed $5 million to Celgene's top line in the second quarter of 2014. Approval for the additional indication, which offers significant commercial potential, will boost Otezla's sales going forward. According to the National Psoriasis Foundation, the immune-mediated, non-contagious chronic inflammatory skin disorder affects 7.5 million Americans.
Celgene is seeking EU approval for Otezla in the combined psoriasis and psoriatic arthritis indication, with an opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use expected by Dec 31, 2014. The candidate is further being evaluated for treating patients suffering from Behçet's disease (phase III expected to commence by year end), ulcerative colitis (phase II b expected to commence by year end) and atopic dermatitis (phase II).
Celgene carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care space include Gilead Sciences ( GILD ) and Medivation ( MDVN ). Both the stocks sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Currently, psoriasis patients are mostly treated with injectable drugs like AbbVie's ( ABBV ) Humira and Amgen's ( AMGN ) Enbrel. Click to get this free report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The FDA approved the drug, an oral and selective inhibitor of phosphodiesterase 4 (PDE4), to treat those patients for whom phototherapy or systemic therapy is suitable. | Click to get this free report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Currently, psoriasis patients are mostly treated with injectable drugs like AbbVie's ( ABBV ) Humira and Amgen's ( AMGN ) Enbrel. We remind investors that Otezla gained FDA approval for the psoriatic arthritis indication in March this year (read more: Update on Celgene's Product Portfolio ). | Click to get this free report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Currently, psoriasis patients are mostly treated with injectable drugs like AbbVie's ( ABBV ) Humira and Amgen's ( AMGN ) Enbrel. Celgene Corporation ( CELG ) announced a label expansion for its drug Otezla in the U.S. Otezla, already approved by the FDA for treating adults suffering from active psoriatic arthritis, can now be used in treatment-naïve as well treatment experienced patients suffering from moderate-to-severe plaque psoriasis. | Currently, psoriasis patients are mostly treated with injectable drugs like AbbVie's ( ABBV ) Humira and Amgen's ( AMGN ) Enbrel. Click to get this free report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report MEDIVATION INC (MDVN): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Celgene Corporation ( CELG ) announced a label expansion for its drug Otezla in the U.S. Otezla, already approved by the FDA for treating adults suffering from active psoriatic arthritis, can now be used in treatment-naïve as well treatment experienced patients suffering from moderate-to-severe plaque psoriasis. |
27367.0 | 2014-09-24 00:00:00 UTC | Stock Market News for September 24, 2014 - Market News | ABBV | https://www.nasdaq.com/articles/stock-market-news-for-september-24-2014-market-news-2014-09-24 | nan | nan | Markets ended in the red zone for the third consecutive day as sluggish growth data from the Eurozone and air strikes in Syria offset China's encouraging economic data. Moreover, announcement of tighter-than-expected tax inversion rules had a negative impact on the benchmarks. The S&P 500 and Nasdaq dropped to their lowest levels in five weeks on Tuesday.
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 0.7%, or 116.81 points, to close at 17,055.87. The Standard & Poor 500 (S&P 500) decreased 0.6% to close at 1,982.77. The tech-laden Nasdaq Composite Index closed at 4,508.69; declining 0.4%. The fear-gauge CBOE Volatility Index (VIX) gained 9.1% to settle at 14.93. A total of 3.31 billion shares were traded in NYSE on Tuesday. Decliners outpaced advancing stocks on the NYSE. For 69% stocks that declined, 28% advanced.
On Tuesday, Markit reported that composite Purchasing Managers Index (PMI), an indicator of the health of Eurozone's manufacturing and services sectors, declined to 52.3% in September, compared to 52.5% in August. This was the lowest level this year. Even though a reading above 50 indicates expansion, the decline shows that growth in this region is slowing down.
The survey showed a minor improvement in regional powerhouse Germany's growth for September. However, France experienced contraction on both the manufacturing and services front. Moreover, the European Commission said on Monday that consumer confidence also declined for four consecutive months. These disappointing reports dampened investor sentiment on Tuesday.
The U.S. launched massive air strikes for the first time against militants in Syria on Tuesday. The bombing was also supported by its Arab allies such as Saudi Arabia, Qatar and the United Arab Emirates. Reportedly, a number of ISIS militants and some members from the Khorasan group, supposedly an affiliate of al-Qaeda, were killed in this attack. According to Washington, eight air strikes were organized by the U.S. in northeastern Syria against Khorasan group yesterday.
The prices of safe-haven bonds rose amid tensions in the Middle-East. The 10-year Treasury note yield declined 3 basis points to 2.535%. The tension also pushed up the crude oil price by 0.8% to $91.56 per barrel.
Separately, the preliminary reading of HSBC China Manufacturing Purchasing Managers Index showed that manufacturing activities in China improved marginally in September. The reading increased to 50.5 in September from 50.2 in August. However, this encouraging reading failed to raise investors' confidence.
On late Monday, the U.S. Treasury Department introduced new tax inversion rules, aimed at deterring companies that have already entered into acquisition deals in order to take the advantage of tax inversion. Many domestic companies have acquired their foreign rivals this year and have decided to shift their headquarters outside domestic boundary to invert high U.S. taxes. This would lead to reduction in corporate income tax receipts and thus forced the government to tighten tax inversion rules.
Companies that recently entered into merger and acquisition deals witnessed price declines yesterday. These include a $54.7 billion deal between AbbVie Inc. ( ABBV ) and Shire plc ( SHPG ). AbbVie was in the process of shifting its headquarters to Ireland by acquiring Shire through this deal. But now the deal has become costlier as AbbVie needs to pay a penalty of $1.6 billion to Shire to continue with the deal. Shares of both AbbVie and Shire declined 2% and 2.2%, respectively.
The new tax rules also dragged stocks of Medtronic, Inc. ( MDT ), Pfizer Inc. ( PFE ), AstraZeneca plc ( AZN ), Covidien plc ( COV ) and Burger King Worldwide Inc ( BKW ) down by 2.9%, 0.4%, 4.7%, 2.5% and 2.7%, respectively.
The Consumer Staples Select Sector SPDR (XLP) was the biggest loser among the S&P 500 sectors. The sector declined 0.9% on Tuesday. Key stocks from the sector including Dr Pepper Snapple Group, Inc. ( DPS ), ConAgra Foods, Inc. ( CAG ), Tyson Foods, Inc. ( TSN ) and The Coca-Cola Company ( KO ) declined 2.3%, 1.2%, 1.7% and 0.8%, 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. | These include a $54.7 billion deal between AbbVie Inc. ( ABBV ) and Shire plc ( SHPG ). AbbVie was in the process of shifting its headquarters to Ireland by acquiring Shire through this deal. But now the deal has become costlier as AbbVie needs to pay a penalty of $1.6 billion to Shire to continue with the deal. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report BURGER KING WWD (BKW): Free Stock Analysis Report DR PEPPER SNAPL (DPS): Free Stock Analysis Report CONAGRA FOODS (CAG): Free Stock Analysis Report TYSON FOODS A (TSN): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report To read this article on Zacks.com click here. These include a $54.7 billion deal between AbbVie Inc. ( ABBV ) and Shire plc ( SHPG ). AbbVie was in the process of shifting its headquarters to Ireland by acquiring Shire through this deal. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report BURGER KING WWD (BKW): Free Stock Analysis Report DR PEPPER SNAPL (DPS): Free Stock Analysis Report CONAGRA FOODS (CAG): Free Stock Analysis Report TYSON FOODS A (TSN): Free Stock Analysis Report COCA COLA CO (KO): Free Stock Analysis Report To read this article on Zacks.com click here. These include a $54.7 billion deal between AbbVie Inc. ( ABBV ) and Shire plc ( SHPG ). AbbVie was in the process of shifting its headquarters to Ireland by acquiring Shire through this deal. | These include a $54.7 billion deal between AbbVie Inc. ( ABBV ) and Shire plc ( SHPG ). AbbVie was in the process of shifting its headquarters to Ireland by acquiring Shire through this deal. But now the deal has become costlier as AbbVie needs to pay a penalty of $1.6 billion to Shire to continue with the deal. |
27368.0 | 2014-09-24 00:00:00 UTC | 3 Top Dividend Growth Stocks to Buy in October | ABBV | https://www.nasdaq.com/articles/3-top-dividend-growth-stocks-buy-october-2014-09-24 | nan | nan | Income investors have always prized dividend stocks for their steady income potential, while growth investors seek market-beating share price growth to make up for lost dividends. But what about stocks providing both dividends and growth? For these "best of both worlds" stocks, we turned to three of our top analysts for their picks as we roll into October.
: Amgen started a dividend in 2011 in large part because its growth story had largely vanished. The stock essentially traded flat over the previous five years.
Ironically the start of the dividend marked the start of a huge run with the stock more than doubling, handily beating the Dow and Nasdaq composite and even keeping pace with the Nasdaq Biotechnology Index with it's much smaller biotechs. And that doesn't even include the dividend payments that have more than doubled since their inception.
AMGN data by YCharts
The question, of course, is can Amgen continue to grow and is the dividend safe?
The answer to the latter seems clear. Last year, Amgen had about $5.6 billion in free cash flow -- cash from operations minus capital expenditures -- and paid $1.4 billion in dividends. The company can raise its dividend substantially and still not run out of cash.
Sales and earnings growth is less certain, but Amgen has a nice pipeline of phase 3 compounds providing plenty of opportunity for growth. Investors should keep an eye on Amgen's PCSK9 inhibitor, evolocumab, to treat high cholesterol, which is currently under review by U.S. and EU regulators.
George Budwell : My dividend stock pick for October is AbbVie . AbbVie was spun-off from Abbott Laboratories in 2013 to create a free-standing pharmaceutical company, featuring the anti-inflammatory drug Humira. Humira's sales are on track to break $12 billion this year , generating ample free cash flow in the process.
Management has been putting its free cash to good use by offering a comparatively high dividend yield (relative to other health care companies) of almost 3% and pursuing an aggressive M&A agenda, led by its $55 billion acquisition of Shire .
Why buy shares in October? AbbVie' stock is down this week because of new rules proposed by the Treasury Department aimed at hampering so-called "tax inversions." So, investors appear to be worried that this deal could be in trouble.
My view is that AbbVie has a lot more to gain than simply a lower tax rate by consummating its buyout of Shire. AbbVie is currently far too dependent on Humira for top-line growth, and Shire holds a number of highly profitable drugs like Vyvanse and Replagal in its product portfolio. So I expect this deal to go through as planned, irrespective of the Treasury's actions, helping to diversify AbbVie's revenue base.
: Unlike my two colleagues I'm going to step out of the biotech/pharmaceutical arena and suggest income seekers give the nation's largest health insurance provider, UnitedHealth Group , a closer look.
Why UnitedHealth Group? First off, the company's size gives it incredible clout that it can use to enter more marketplaces than many of its peers. Not to mention, even with a more transparent and competitive marketplace UnitedHealth's size still allows it some degree of control over its own premium pricing.
Perhaps most importantly, with a year of experience under its belt on the Obamacare exchanges UnitedHealth Group is expanding the number of states it's expected to offer insurance in for 2014. I'd expect by the end of fiscal 2015 that UnitedHealth will be turning a nice profit based on an increase in its total Obamacare enrollees.
Best of all for investors, since April 2010 UnitedHealth's policy on dividends changed drastically from paying out just $0.03 on an annual basis to offering a rapidly growing quarterly dividend. Since boosting its payout to $0.125 per share in June 2010 UnitedHealth Group's payout has tripled to $0.375 per share. Currently pacing an extrapolated $1.50 per share in annual dividends UnitedHealth's payout is up 49-fold in just five years, and is currently yielding a respectable 1.8%.
As the fastest growing Dow dividend over the past 10-years, it's a company income seekers can't afford to overlook.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article 3 Top Dividend Growth Stocks to Buy in October originally appeared on Fool.com.
Brian Orelli , George Budwell , and Sean Williams have no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is currently far too dependent on Humira for top-line growth, and Shire holds a number of highly profitable drugs like Vyvanse and Replagal in its product portfolio. George Budwell : My dividend stock pick for October is AbbVie . AbbVie was spun-off from Abbott Laboratories in 2013 to create a free-standing pharmaceutical company, featuring the anti-inflammatory drug Humira. | AbbVie is currently far too dependent on Humira for top-line growth, and Shire holds a number of highly profitable drugs like Vyvanse and Replagal in its product portfolio. George Budwell : My dividend stock pick for October is AbbVie . AbbVie was spun-off from Abbott Laboratories in 2013 to create a free-standing pharmaceutical company, featuring the anti-inflammatory drug Humira. | George Budwell : My dividend stock pick for October is AbbVie . AbbVie was spun-off from Abbott Laboratories in 2013 to create a free-standing pharmaceutical company, featuring the anti-inflammatory drug Humira. AbbVie' stock is down this week because of new rules proposed by the Treasury Department aimed at hampering so-called "tax inversions." | George Budwell : My dividend stock pick for October is AbbVie . AbbVie was spun-off from Abbott Laboratories in 2013 to create a free-standing pharmaceutical company, featuring the anti-inflammatory drug Humira. AbbVie' stock is down this week because of new rules proposed by the Treasury Department aimed at hampering so-called "tax inversions." |
27369.0 | 2014-09-23 00:00:00 UTC | U.S. Treasury Cracks Down on Tax Inversions - Stocks in the News | ABBV | https://www.nasdaq.com/articles/us-treasury-cracks-down-tax-inversions-stocks-news-2014-09-23 | nan | nan | On Monday, the Obama administration took several actions to curb "inversion" deals that allow companies to escape high U.S. taxes by reincorporating abroad. The Treasury Department announced the new rules in a press release, effective immediately, that will hinder the economic benefit of companies who have plans to or are considering an inversion.
"This action will significantly diminish the ability of inverted companies to escape U.S. taxation," Treasury Secretary Jacob Lew said. He added that for some companies considering inversions, the new measures would mean inverting would "no longer make economic sense."
The new policy will impact those companies that have agreed to invert, but have not completed them. Senate Finance Committee Chairman Ron Wyden is working on a bipartisan bill that would block inversions retroactive to May 8. This proposal on taxation would raise revenues by about $19 billion over the next 10 years.
When asked about the impact on pending deals, a senior Treasury official told reporters on a conference call; "If they are closed and done as of today, then they are not subject to this. If they are closed tomorrow or after, they are subject to this."
About 50 deals have taken place since the early 1980's, but half of those have been completed just since the 08' housing bubble, so this is definitely a recent phenomenon.
Core Details
What is a corporate inversion?
A corporate inversion is a transaction in which a U.S. based multinational restructures so that the U.S. parent is replaced by a foreign parent, in order to avoid U.S. taxes.
The new law will also prevent inverted companies from using "hopscotch" loans that allow them to avoid dividend taxes when accessing foreign earnings. Another rule will bar inverters from gaining access to the same kinds of profits by using "decontrolling" strategies that restructure foreign units so they are no longer U.S. controlled.
The new policy will also close a loophole to prevent inverted companies from transferring cash or property from the foreign corporation to the new parent to completely avoid U.S. tax.
The Treasury is also creating tighter limits on the levels of ownership that the former U.S. owners can have in an inverted company to qualify for foreign tax treatment from the IRS, a move that will make it harder to do these deals.
According to the press release, "Treasury is taking action to reduce the tax benefits of - and when possible, stop - corporate tax inversions. This action will significantly diminish the ability of inverted companies to escape U.S. taxation. For some companies considering mergers, today's action will mean that inversions no longer make economic sense."
Bottom Line
About 50 U.S. companies have carried out inversions in the last 10 years and more were considering inversions. The recent wave of inversions has been dominated by health care companies, including drug maker AbbVie ( ABBV ), which has announced plans to merge with a drug company incorporated in Britain.
Though in disagreement about the issue's urgency, both Democrats and Republicans have said inversions are a symptom of a broken tax code that needs a thorough overhaul.
Obama elevated the issue in July, demanding "economic patriotism" from U.S. corporations that use legal means to avoid U.S. taxes through overseas mergers. "I don't care if it's legal," Obama declared at the time. "It's wrong."
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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 recent wave of inversions has been dominated by health care companies, including drug maker AbbVie ( ABBV ), which has announced plans to merge with a drug company incorporated in Britain. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The Treasury Department announced the new rules in a press release, effective immediately, that will hinder the economic benefit of companies who have plans to or are considering an inversion. | The recent wave of inversions has been dominated by health care companies, including drug maker AbbVie ( ABBV ), which has announced plans to merge with a drug company incorporated in Britain. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. "This action will significantly diminish the ability of inverted companies to escape U.S. taxation," Treasury Secretary Jacob Lew said. | The recent wave of inversions has been dominated by health care companies, including drug maker AbbVie ( ABBV ), which has announced plans to merge with a drug company incorporated in Britain. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. On Monday, the Obama administration took several actions to curb "inversion" deals that allow companies to escape high U.S. taxes by reincorporating abroad. | The recent wave of inversions has been dominated by health care companies, including drug maker AbbVie ( ABBV ), which has announced plans to merge with a drug company incorporated in Britain. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The new policy will also close a loophole to prevent inverted companies from transferring cash or property from the foreign corporation to the new parent to completely avoid U.S. tax. |
27370.0 | 2014-09-23 00:00:00 UTC | SSO, MMM, ABT, ABBV: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/sso-mmm-abt-abbv-etf-inflow-alert-2014-09-23 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $153.5 million dollar inflow -- that's a 7.8% increase week over week in outstanding units (from 16,425,000 to 17,700,000). Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is off about 0.2%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 2%. The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $123.59 as the 52 week high point - that compares with a last trade of $120.14. 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 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 SSO, in trading today 3M Co (Symbol: MMM) is off about 0.2%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $153.5 million dollar inflow -- that's a 7.8% increase week over week in outstanding units (from 16,425,000 to 17,700,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $123.59 as the 52 week high point - that compares with a last trade of $120.14. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is off about 0.2%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 2%. The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $123.59 as the 52 week high point - that compares with a last trade of $120.14. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is off about 0.2%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $153.5 million dollar inflow -- that's a 7.8% increase week over week in outstanding units (from 16,425,000 to 17,700,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $123.59 as the 52 week high point - that compares with a last trade of $120.14. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is off about 0.2%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and AbbVie Inc. (Symbol: ABBV) is lower by about 2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $153.5 million dollar inflow -- that's a 7.8% increase week over week in outstanding units (from 16,425,000 to 17,700,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. |
27371.0 | 2014-09-23 00:00:00 UTC | U.S. Futures Extend Losses on Syrian Bombing, Europe and New Rules to Halt Inversion Deals | ABBV | https://www.nasdaq.com/articles/us-futures-extend-losses-syrian-bombing-europe-and-new-rules-halt-inversion-deals-2014-09 | nan | nan | U.S. stocks looked set to add to Monday's losses based on stock-futures action in Tuesday's pre-market session, as rekindled geopolitical pressures from the Middle East and disappointing manufacturing data from Europe overshadowed encouraging data from China and expectations for a slight improvement in the U.S. Markit PMI for September.
After a triple-digit loss Monday in the Dow Jones Industrial Average, Dow Jones stock futures were down by 50 points, while biotech stocks were weighing on the Nasdaq Composite futures as concerns surrounding billion-dollar mergers in the sector surfaced with the U.S. Treasury imposing new rules to discourage "inversion deals."
On the economic front, a reading on U.S. manufacturing will come with the release of the Markit PMI for September, expected to increase slightly to 58.1 from the final August read of 57.9. The Richmond Fed manufacturing index for September, meanwhile, is expected to remain unchanged at 12.
In corporate news, shares of AbbVie ( ABBV ) were under pressure as its acquisition of Shire PLC ( SHPG ) appeared threatened after the Treasury unveiled the new rules to prevent U.S. companies from leaving the country to capitalize on foreign tax laws. There were similar concerns for the merger between AstraZeneca ( AZN ) and Pfizer ( PFE ), which also declined pre-market.
Bed Bath and Beyond ( BBBY ) and Carnival Corp (CCL) were trading lower as well in pre-market, ahead of their earnings reports. BBBT is expected to report Q2 EPS of $1.14 while CCL is expected to post Q3 EPS of $1.45.
-Dow Jones Industrial down 0.27%
-S&P 500 futures down 0.24%
-Nasdaq 100 futures down 0.25%
SENTIMENT
Nikkei CLOSED
Hang Seng down 0.49%
Shanghai Composite up 0.87%
FTSE-100 down 1.76%
DAX-30 down 1.40%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: Lower
(-) Chip stocks: Lower
(-) Software stocks: Lower
(-) Hardware stocks: Lower
(-) Internet stocks: Lower
(-) Drug stocks: Lower
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(-) Industrial stocks: Lower
(-) Airlines: Lower
(-) Autos Lower
UPSIDE MOVERS:
(+) RWLK (+9.39%) Receives first reimbursement for exoskeleton\
(+) TKMR (+8.43%) Plans to collaborate with international consortium to study Ebola treatment in W. Africa
(+) SLXP (+7.01%) Possible acquisition by Allergan (AGN)
DOWNSIDE MOVERS:
(-) MTL (-27.45%) Concerns that company will have to file bankruptcy
(-) SHPG (-4.19%) New tax inversion laws threatens merger with Abbvie ( ABBV )
(-) ASNA (-11.49%) Missed Q4 earnings estimates by $0.05 per share, sets guidance below street consensus
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In corporate news, shares of AbbVie ( ABBV ) were under pressure as its acquisition of Shire PLC ( SHPG ) appeared threatened after the Treasury unveiled the new rules to prevent U.S. companies from leaving the country to capitalize on foreign tax laws. (-) MTL (-27.45%) Concerns that company will have to file bankruptcy (-) SHPG (-4.19%) New tax inversion laws threatens merger with Abbvie ( ABBV ) (-) ASNA (-11.49%) Missed Q4 earnings estimates by $0.05 per share, sets guidance below street consensus The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. After a triple-digit loss Monday in the Dow Jones Industrial Average, Dow Jones stock futures were down by 50 points, while biotech stocks were weighing on the Nasdaq Composite futures as concerns surrounding billion-dollar mergers in the sector surfaced with the U.S. Treasury imposing new rules to discourage "inversion deals." | (-) MTL (-27.45%) Concerns that company will have to file bankruptcy (-) SHPG (-4.19%) New tax inversion laws threatens merger with Abbvie ( ABBV ) (-) ASNA (-11.49%) Missed Q4 earnings estimates by $0.05 per share, sets guidance below street consensus 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, shares of AbbVie ( ABBV ) were under pressure as its acquisition of Shire PLC ( SHPG ) appeared threatened after the Treasury unveiled the new rules to prevent U.S. companies from leaving the country to capitalize on foreign tax laws. After a triple-digit loss Monday in the Dow Jones Industrial Average, Dow Jones stock futures were down by 50 points, while biotech stocks were weighing on the Nasdaq Composite futures as concerns surrounding billion-dollar mergers in the sector surfaced with the U.S. Treasury imposing new rules to discourage "inversion deals." | (-) MTL (-27.45%) Concerns that company will have to file bankruptcy (-) SHPG (-4.19%) New tax inversion laws threatens merger with Abbvie ( ABBV ) (-) ASNA (-11.49%) Missed Q4 earnings estimates by $0.05 per share, sets guidance below street consensus 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, shares of AbbVie ( ABBV ) were under pressure as its acquisition of Shire PLC ( SHPG ) appeared threatened after the Treasury unveiled the new rules to prevent U.S. companies from leaving the country to capitalize on foreign tax laws. After a triple-digit loss Monday in the Dow Jones Industrial Average, Dow Jones stock futures were down by 50 points, while biotech stocks were weighing on the Nasdaq Composite futures as concerns surrounding billion-dollar mergers in the sector surfaced with the U.S. Treasury imposing new rules to discourage "inversion deals." | (-) MTL (-27.45%) Concerns that company will have to file bankruptcy (-) SHPG (-4.19%) New tax inversion laws threatens merger with Abbvie ( ABBV ) (-) ASNA (-11.49%) Missed Q4 earnings estimates by $0.05 per share, sets guidance below street consensus 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, shares of AbbVie ( ABBV ) were under pressure as its acquisition of Shire PLC ( SHPG ) appeared threatened after the Treasury unveiled the new rules to prevent U.S. companies from leaving the country to capitalize on foreign tax laws. After a triple-digit loss Monday in the Dow Jones Industrial Average, Dow Jones stock futures were down by 50 points, while biotech stocks were weighing on the Nasdaq Composite futures as concerns surrounding billion-dollar mergers in the sector surfaced with the U.S. Treasury imposing new rules to discourage "inversion deals." |
27372.0 | 2014-09-22 00:00:00 UTC | Surprising Silver Lining for Gilead Sciences, inc. Stock | ABBV | https://www.nasdaq.com/articles/surprising-silver-lining-gilead-sciences-inc-stock-2014-09-22 | nan | nan | Shares of Gilead Sciences got knocked down last week after CVS Health released data showing higher discontinuation rates for hepatitis C patients taking Sovaldi than Gilead Sciences saw in its clinical trials.
Source: Gilead Sciences
On one hand, discontinuations are clearly bad news for Gilead Sciences. If patients aren't taking Sovaldi for 12 weeks, Gilead Sciences isn't getting the full $84,000 for the full course of treatment.
But a higher discontinuation rate isn't really all that surprising. It stands to reason that if you're willing to be a guinea pig for an unapproved medication, you're more dedicated to ridding yourself of the virus than the average infected hepatitis C user. Increasing discontinuation rates from around 2% seen in clinical trials to 8.7% in real life is somewhat to be expected.
And with all of that negativity, there's a surprising silver lining in CVS's data.
Different courses
Sovaldi can be taken with interferon and ribavirin, only ribavirin, or off-label with Johnson & Johnson 's Olysio. CVS found the discontinuation rates were wildly different with 10.2% of patients taking Sovaldi with interferon and ribavirin discontinuing treatment, but just 4.2% of patients taking Sovaldi with Olysio discontinuing treatment. Sovaldi plus just ribavirin came in between the two at 9%.
Interferons -- Roche 's Pegasys or Merck 's PegIntron -- have nasty side effects that makes patients feel like they have the flu. A whopping 11% of hepatitis C patients taking Pegasys in clinical trials stopped taking the drug. Of course those patients knew they'd have to be on Pegasys for almost a year, so their tolerance for side effects was understandably lower than clinical-trial patients taking Sovladi and interferon scheduled for just three months of treatment.
Gilead has its own Sovaldi cocktail drug under Food and Drug Administration review that doesn't require interferon. It seems reasonable to assume that the interferon-free combination is likely to have a low discontinuation rate close to the 4.2% that CVS saw with Sovaldi-Olysio. So the report very much seems to validate CVS' decision to push forward into the all-oral combination.
Competition
Making the drugs easy to take -- whether that's through less severe side effects or by making the regimen more convenient -- should encourage doctors to prescribe the drugs since discontinuations hamper the likelihood of a cure.
The convenience factor could be a detriment to Abbvie , which will have its own hepatitis C combo approved around the same time Gilead Sciences' Sovaldi combination is approved, but Abbvie's regimen isn't as convenient because it requires more pills.
Only time will tell how much convenience is a factor in doctors' prescription habits for hepatitis C regimens, but it should be noted that for HIV -- where medication adherence is critical -- all-in-one HIV regimens have become the mainstay treatments.
Insurance companies may even be willing to pay more for hepatitis C drugs with a lower discontinuation rate. Discontinuations are an issue for insurance companies because they're wasting money if the patients aren't cured with the partial treatment. The patients will have to be treated later on with a full course and could develop resistance to the drugs making them harder to treat.
The next obvious move to increasing adherence further is to shorten the treatment duration. Whether it's side effects or a lack of motivation to stay on the drugs, if a treatment was effective after just one or two months, patients should be more willing to stay on the medication for the entire treatment regimen.
Bristol-Myers Squibb is testing a combination of Sovaldi with two of its hepatitis C drugs to see if four weeks is sufficient to rid patients of the virus. And Merck, which is late to the cocktail-treatment party, recently purchased Idenix Pharmaceuticals in hopes that combining Idenix's drugs with its own could decrease the treatment time.
Sovaldi is clearly the dominant player and I'm not sure the CVS report is going to change that much in the short term. In the long term, it underlines the importance of discontinuation rates and stresses where competition might find a niche to break into the hepatitis C market.
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The article Surprising Silver Lining for Gilead Sciences, inc. Stock originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends CVS Health, 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 .
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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 convenience factor could be a detriment to Abbvie , which will have its own hepatitis C combo approved around the same time Gilead Sciences' Sovaldi combination is approved, but Abbvie's regimen isn't as convenient because it requires more pills. It stands to reason that if you're willing to be a guinea pig for an unapproved medication, you're more dedicated to ridding yourself of the virus than the average infected hepatitis C user. In the long term, it underlines the importance of discontinuation rates and stresses where competition might find a niche to break into the hepatitis C market. | The convenience factor could be a detriment to Abbvie , which will have its own hepatitis C combo approved around the same time Gilead Sciences' Sovaldi combination is approved, but Abbvie's regimen isn't as convenient because it requires more pills. Shares of Gilead Sciences got knocked down last week after CVS Health released data showing higher discontinuation rates for hepatitis C patients taking Sovaldi than Gilead Sciences saw in its clinical trials. CVS found the discontinuation rates were wildly different with 10.2% of patients taking Sovaldi with interferon and ribavirin discontinuing treatment, but just 4.2% of patients taking Sovaldi with Olysio discontinuing treatment. | The convenience factor could be a detriment to Abbvie , which will have its own hepatitis C combo approved around the same time Gilead Sciences' Sovaldi combination is approved, but Abbvie's regimen isn't as convenient because it requires more pills. Shares of Gilead Sciences got knocked down last week after CVS Health released data showing higher discontinuation rates for hepatitis C patients taking Sovaldi than Gilead Sciences saw in its clinical trials. If patients aren't taking Sovaldi for 12 weeks, Gilead Sciences isn't getting the full $84,000 for the full course of treatment. | The convenience factor could be a detriment to Abbvie , which will have its own hepatitis C combo approved around the same time Gilead Sciences' Sovaldi combination is approved, but Abbvie's regimen isn't as convenient because it requires more pills. If patients aren't taking Sovaldi for 12 weeks, Gilead Sciences isn't getting the full $84,000 for the full course of treatment. But a higher discontinuation rate isn't really all that surprising. |
27373.0 | 2014-09-21 00:00:00 UTC | Google Invests in Smart Spoons for Parkinson's Patients | ABBV | https://www.nasdaq.com/articles/google-invests-smart-spoons-parkinsons-patients-2014-09-21 | nan | nan | Google recently acquired Lift Labs, a company that develops "smart utensils" for Parkinson's patients.
Lift Labs' Liftware system cancels minor hand tremors to make it easier for patients to eat. Lift Tabs has produced a spoon, and intends to develop a soup spoon, fork, and other attachments in the future. According to the company, the device cancels out an average of 70% of tremors while eating. Google stated that Liftware "could improve quality of life for millions of people" on its Google+ account.
Earlier this year, a team of researchers at Newcastle University started testing a Google Glass app to help Parkinson's patients. The app tells patients to speak up if their voice is too soft, to swallow at the right time, to take their medication, and to support patients who experience "freezing" episodes. In August, Intel announced a partnership with the Michael J. Fox Foundation to start a wearables study for Parkinson's disease, which could lead to better hardware support (with smaller chips and sensors) for Parkinson's apps on smart watches and other wearable devices.
Another piece of Google's healthcare puzzle
Google has dramatically increased its footprint in healthcare over the past year. Last September, it launched Calico, a biotech subsidiary focused on age-related diseases like Alzheimer's and Parkinson's. Earlier this month, AbbVie entered a partnership worth up to $1.5 billion with Calico to expand its research and development capabilities.
In January, Google unveiled a smart contact lens designed to detect blood glucose levels through tears, which was licensed to Novartis in July. That same month, Google unveiled Project Baseline, which aims to create an anonymized genetic database to identify biomarkers related to diseases like heart disease and cancer.
Google Glass has also gained momentum in healthcare as a hands-free smart device for physicians. Developers like Augmedix and Drchrono are bringing EHRs (electronic health records) to Glass' heads-up display, while Philips , Accenture , and Qualcomm have all been exploring other uses for Glass in hospitals. Several hospitals have also started using Glass to scan QR codes on patients' doors to immediately access patient records.
Source: Wikimedia Commons.
Google will also launch Google Fit, a unified platform for Android-compatible fitness apps and wearable devices in the near future, although it won't directly link to EHRs like Apple's HealthKit in iOS8.
A Foolish final word
Google's acquisition of Lift Labs tells us two things: that new technological innovations could continue improving the lives of Parkinson's patients, and that Google isn't shy about dreaming big when it comes to healthcare.
In my opinion, Google clearly sees other uses for Lift Labs' tremor-cancelling technology, which could be adapted for other objects to help Parkinson's patients. This could lead to partnerships with larger medical device companies, like Medtronic (which already produces a " brain pacemaker " for Parkinson's patients), to manufacture and launch these products globally.
Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. 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 where the real money is to be made, just click here !
The article Google Invests in Smart Spoons for Parkinson's Patients originally appeared on Fool.com.
Leo Sun owns shares of Apple. The Motley Fool recommends Apple, Google (A shares), Google (C shares), and Intel. The Motley Fool owns shares of Apple, Google (A shares), Google (C shares), Intel, and Medtronic. 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 - 2014 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 entered a partnership worth up to $1.5 billion with Calico to expand its research and development capabilities. Earlier this year, a team of researchers at Newcastle University started testing a Google Glass app to help Parkinson's patients. In January, Google unveiled a smart contact lens designed to detect blood glucose levels through tears, which was licensed to Novartis in July. | Earlier this month, AbbVie entered a partnership worth up to $1.5 billion with Calico to expand its research and development capabilities. Google recently acquired Lift Labs, a company that develops "smart utensils" for Parkinson's patients. Apple Watch revealed: The real winner is inside Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. | Earlier this month, AbbVie entered a partnership worth up to $1.5 billion with Calico to expand its research and development capabilities. A Foolish final word Google's acquisition of Lift Labs tells us two things: that new technological innovations could continue improving the lives of Parkinson's patients, and that Google isn't shy about dreaming big when it comes to healthcare. The Motley Fool recommends Apple, Google (A shares), Google (C shares), and Intel. | Earlier this month, AbbVie entered a partnership worth up to $1.5 billion with Calico to expand its research and development capabilities. Google recently acquired Lift Labs, a company that develops "smart utensils" for Parkinson's patients. Earlier this year, a team of researchers at Newcastle University started testing a Google Glass app to help Parkinson's patients. |
27374.0 | 2014-09-19 00:00:00 UTC | Dividend Aristocrats: Time to Buy AbbVie Inc Stock? | ABBV | https://www.nasdaq.com/articles/dividend-aristocrats-time-buy-abbvie-inc-stock-2014-09-19 | nan | nan | Dividend stocks are a powerful force within a well-balanced portfolio because they can dramatically increase the rate of compounding interest through dividend reinvestment plans.
Not all dividend stocks are great investment vehicles, however. For example, some companies don't increase their total dividends payouts on a regular basis, don't offer attractive yields at current levels, or simply have weak prospects for growth going forward. Companies that offer a compelling mixture of high yields and strong growth prospects have perhaps become harder to find in this aging bull market, but they do exist.
With this in mind, I think AbbVie is a healthcare stock that income and growth investors alike should get to know better. Ever since the company was spun-off as the pharmaceutical segment of Abbott Laboratories in 2013, AbbVie's share price has marched steadily upward, shown by the chart below.
And even though its share price has shot up over the past year, this stock still offers a relatively high dividend yield of 2.83% at current levels, compared to the sector average of 2.69% .
AbbVie's past performance and even its attractive yield are not the reasons why I find this stock so compelling, however. Going forward, the company has some big plans in the works that could unlock a tremendous amount of value for investors over the long term. So, let's take a deeper look at this top dividend stock.
AbbVie is set to diversify its product portfolio in a big way
AbbVie has a problem, albeit a good one in some respects. The company has been reliant on one drug, Humira, for more than half of its top-line growth in recent quarters. That said, Humira's commercial performance has been nothing short of amazing, posting a 26% increase in sales to $3.29 billion in the second quarter of this year compared to a year ago.
The patent cliff has perhaps taught all healthcare investors that over-reliance on any single product for growth can be a major pitfall. AbbVie has thus developed a potent triple-combo therapy indicated for hepatitis C genotype 1 patients that is expected to be approved shortly and launched commercially within the U.S. before year's end. The commercial upside for the drug is up in the air nonetheless, given that it will be competing against Gilead Sciences and Johnson & Johnson 's hepatitis C offerings.
While the Street is expecting first year sales to come in anywhere from from $2 to $3 billion for AbbVie's triple-therapy, I think these estimates are speculative at best. After all, the Street wasn't even close to predicting the sales of either Gilead or J&J's new drugs before they were launched. That having been said, I think it is safe to say that AbbVie's hep-C drug clearly has blockbuster potential and will therefore be an important source of top-line growth down the line.
AbbVie's recent acquisition of Shire has also helped to further diversify its product portfolio. This acquisition gives AbbVie several drugs like Vyvanse, Replagal, Firazyr, and Cinryze that all posted double digit sales growth in the second-quarter , boosting Shire's top line by 20% compared to a year ago. All told, the newly merged entity is expected to easily generate over $25 billion in revenue next year.
Don't forget the tax inversion!
Although Shire has impressive product and clinical portfolios in its own right, the main reason AbbVie was interested in acquiring the Dublin-based company was to lower its effective tax rate.AbbVie's effective tax rate for 2013 was 22.6%, whereas Shire's was only 16.4% . Experts believe that the synergies created by this merger could lower the new entity's effective tax rate to a mere 13%. If this line holds going forward, we can expect AbbVie to save over $2 billion per year on taxes and this number will only increase as revenues climb.
Foolish wrap-up
One of the clear lessons the tax inversion of Actavis plc should teach healthcare investors is that these companies won't be shy about spending their tax savings on new acquisitions to fuel growth. Actavis has been on a spending spree since moving abroad, resulting in a massive 34% increase in total sales year-over year . AbbVie appears to already be following in Actavis' footsteps with its recent deal with Infinity Pharmaceuticals for its blood cancer drug duvelisib. So, you shouldn't be surprised if this trend continues.
From a dividend perspective, these new revenue sources will only increase free cash flows over the long term and should ultimately result in higher total dividend payouts. As such, I think AbbVie should be considered for both its sector-beating dividend yield and strong growth prospects.
Speaking of strong dividends -- Here are the top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article Dividend Aristocrats: Time to Buy AbbVie Inc Stock? originally appeared on Fool.com.
George Budwell owns shares of Johnson & Johnson. 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 - 2014 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. | This acquisition gives AbbVie several drugs like Vyvanse, Replagal, Firazyr, and Cinryze that all posted double digit sales growth in the second-quarter , boosting Shire's top line by 20% compared to a year ago. With this in mind, I think AbbVie is a healthcare stock that income and growth investors alike should get to know better. Ever since the company was spun-off as the pharmaceutical segment of Abbott Laboratories in 2013, AbbVie's share price has marched steadily upward, shown by the chart below. | With this in mind, I think AbbVie is a healthcare stock that income and growth investors alike should get to know better. Ever since the company was spun-off as the pharmaceutical segment of Abbott Laboratories in 2013, AbbVie's share price has marched steadily upward, shown by the chart below. AbbVie's past performance and even its attractive yield are not the reasons why I find this stock so compelling, however. | Although Shire has impressive product and clinical portfolios in its own right, the main reason AbbVie was interested in acquiring the Dublin-based company was to lower its effective tax rate.AbbVie's effective tax rate for 2013 was 22.6%, whereas Shire's was only 16.4% . With this in mind, I think AbbVie is a healthcare stock that income and growth investors alike should get to know better. Ever since the company was spun-off as the pharmaceutical segment of Abbott Laboratories in 2013, AbbVie's share price has marched steadily upward, shown by the chart below. | With this in mind, I think AbbVie is a healthcare stock that income and growth investors alike should get to know better. Ever since the company was spun-off as the pharmaceutical segment of Abbott Laboratories in 2013, AbbVie's share price has marched steadily upward, shown by the chart below. AbbVie's past performance and even its attractive yield are not the reasons why I find this stock so compelling, however. |
27375.0 | 2014-09-19 00:00:00 UTC | 3 Best Stocks to Invest in Pharma | ABBV | https://www.nasdaq.com/articles/3-best-stocks-invest-pharma-2014-09-19 | nan | nan | Big pharma's full of top stocks, with high-yielding dividends and pipelines brimming with promising drug candidates for the future. But which stocks in this industry are worth your money?
The patent cliff has taken a hammer to many of the biggest names in big pharma recently: From Pfizer to Bristol-Myers Squibb , the largest pharmaceutical corporations have fought to keep a grip on sales while generic drugs chip away at some of the best-selling drugs in recent history. As pharmaceutical companies focus on the best routes for growth, however, which companies are poised for the brightest futures? Let's take a look at three pharma companies -- AbbVie , Novo Nordisk , and Johnson & Johnson -- that could be a big winner for your portfolio in the long term.
Novo Nordisk looks to dominate the global diabetes market
Danish pharma giant Novo Nordisk might offer one of the smaller dividends in the industry, with a mere 1.3% yield, but this stock's been an investor's dream recently. Over the past 10 years, Novo's shares have jumped by a whopping 830%, far outpacing the stock gains from many of the other big names in big pharma.
Source: Wikimedia Commons.
Novo controls 29% of U.S. diabetes treatment market share , but the company's biggest inroad is in China, where it commanded 37% of the overall diabetes market in 2012, and 60% of the insulin market. The company has ramped up its infrastructure and investment in Asia's largest economy for years now. Considering that Bloomberg reports 600 million Chinese citizens are burdened with prediabetes, Novo's China investments look smart for the future of this company's international growth -- particularly as Beijing continues to modernize its healthcare system as more and more Chinese settle in the country's booming urban centers.
It's paid off so far for this company's roaring revenue. In each of the last five years, Novo has managed more than 7% sales growth. The patent cliff is looming, however: The company's NovoLog insulin loses patent protection in the U.S. in 2014, although Novo Nordisk has a formulation patent that stretches through 2017.
Novo has kept up double-digit annual sales growth in the U.S. with fellow diabetes treatment Victoza, and with the company hoping for a 2016 U.S. launch of Tresiba, a long-acting insulin agent previously rejected by the FDA, there's more than enough for Novo Nordisk to get past potential problems from upcoming patent expirations. Tresiba has performed well so far in approved international markets, and if Novo can score regulatory approval for the drug in the U.S., this company will be set to continue maintaining its dominance in fighting the growing diabetes threat for years to come -- along with rewarding shareholders while it's at it.
AbbVie and life beyond Humira
AbbVie doesn't have the history of many of the biggest names in big pharma -- after all, the drugmaker only got its start in 2013 after separating from Abbott Labs . But AbbVie carried with it Humira, the superstar immunology drug that racked up more than $10 billion in revenue last year alone. Even better for investors, Humira has kept on growing at a stellar rate despite its massive sales. The drug recorded overall sales growth of 15% last year, and it's kept up its torrid pace with 22% revenue growth through the first six months of 2014.
While competition for Humira abounds in some of the world's other top drugs, such as Johnson & Johnson 's ( JNJ ) star Remicade, the immunology drug market continues to grow. AbbVie loses U.S. patent protection for the drug in 2016, but as a biologic, Humira won't be easily copied -- although generic competitors aren't giving up in vying for a piece of the drug's pie. Still, don't expect Humira's sales to drop off too quickly come 2016.
But the biggest key for long-term investors is that AbbVie is preparing for a long-term future where it won't be so reliant on Humira's revenue, which accounted for more than 62% of overall drug revenue through the first half of this year. The company's unnamed oral hepatitis-C drug candidate warrants the brightest spotlight: AbbVie filed for FDA approval of the drug earlier this year, and gaining the regulatory go-ahead looks like a near-lock at this point. That'll put AbbVie into competition with Gilead Sciences ' breakout hep-C star, Sovaldi, which has reeled in nearly $6 billion through the first half of 2014. With debate raging over Sovaldi's pricing, there's a huge opportunity for AbbVie to capitalize in an HCV market that could eclipse $20 billion annually within this decade.
With AbbVie's pipeline boating another eight drug indications in phase 3 trials and the company's acquisition of Shire Pharmaceuticals in hand -- a move that looks to reduce the corporation's tax burden by more than nine percentage points by 2016 -- this big pharma's future looks to build upon Humira's success with even greater gains. It doesn't hurt that AbbVie's stock offers a 3.2% dividend yield, making this stock all the sweeter in the long run for investors.
Johnson & Johnson: An investor's top foundation stock
AbbVie and Novo Nordisk are poised for growth in different areas, but no portfolio is complete without a sturdy, reliable foundation -- and for pharma investors looking for the best stock for just that, there's no better name on the market than Johnson & Johnson.
Unlike Novo and AbbVie, J&J's much more than just a drugmaker. This company boasts one of the top orthopedic device businesses on the market, along with a steady consumer health business that made up nearly 20% of the company's overall revenue through the first half of 2014. Yet it's been J&J's drug business that has dominated talk on Wall Street: The company's pharmaceutical division recorded more than 16% overall sales growth through the first six months of the year, including 22% revenue growth in the U.S., J&J's largest market.
Steady Remicade continues to hold the line as Johnson & Johnson's top drug, with more than $3.4 billion in sales in the year's first half at more than 4% sales growth. Remicade holds patent protection in the U.S. through 2018, and J&J boasts a number of up-and-coming drugs in its portfolio that should complement its top seller well. Oncology therapy Zytiga has roared up the charts and continues to perform well, notching more than 44% sales growth through the first half of the year despite reeling in more than $1 billion in revenue. With other soon-to-be blockbusters such as Velcade, Simponi, Stelara, and Xarelto keeping pace with double-digit revenue growth, Johnson & Johnson's portfolio is diverse and loaded with strong performers. J&J also has a drug pipeline, with more than 20 indications in phase 3 trials or later as of mid-July.
But diversity, not growth, is J&J's best asset for investors. Despite strong drug sales, this company's drug business makes up less than half of overall sales, insulating the company and shareholders from painful patent losses that have plagued other big pharmas. Johnson & Johnson adds a sweetener with its 2.8% dividend yield, and the stock's a member of the dividend aristocrats -- companies that have raised their dividends for at least 25 consecutive years. Considering J&J's reasonable 50% dividend payout ratio and its strong businesses, it's reasonable to guess that streak won't be ending any time soon.
Three exciting stocks for the long run
While there are a number of top stocks in pharma, Johnson & Johnson, AbbVie, and Novo Nordisk stand out for investors looking to invest in the best. AbbVie's strong Humira, along with its formidable pipeline prospects, particularly in its oral hepatitis C candidate, make this an exciting stock poised for growth in the near future. Novo Nordisk may be more concentrated in its diabetes specialty, but the Danish drugmaker is no less a potent growth option -- especially in China, where it's come to dominate treating diabetes in a country facing a huge threat from this disease in the coming years. With J&J's reliability, diverse business, powerhouse drug growth, and steady dividend strong enough to form the foundation of any portfolio, these three stocks should be on any savvy healthcare investor's radar in the coming years.
If you like these stocks, you can't miss these long-term dividend winners
One of big pharma's biggest rewards to investors is the great dividend yields found in this industry. The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article 3 Best Stocks to Invest in Pharma originally appeared on Fool.com.
Dan Carroll has no position in any stocks 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 - 2014 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. | With AbbVie's pipeline boating another eight drug indications in phase 3 trials and the company's acquisition of Shire Pharmaceuticals in hand -- a move that looks to reduce the corporation's tax burden by more than nine percentage points by 2016 -- this big pharma's future looks to build upon Humira's success with even greater gains. AbbVie's strong Humira, along with its formidable pipeline prospects, particularly in its oral hepatitis C candidate, make this an exciting stock poised for growth in the near future. Let's take a look at three pharma companies -- AbbVie , Novo Nordisk , and Johnson & Johnson -- that could be a big winner for your portfolio in the long term. | Johnson & Johnson: An investor's top foundation stock AbbVie and Novo Nordisk are poised for growth in different areas, but no portfolio is complete without a sturdy, reliable foundation -- and for pharma investors looking for the best stock for just that, there's no better name on the market than Johnson & Johnson. Let's take a look at three pharma companies -- AbbVie , Novo Nordisk , and Johnson & Johnson -- that could be a big winner for your portfolio in the long term. AbbVie and life beyond Humira AbbVie doesn't have the history of many of the biggest names in big pharma -- after all, the drugmaker only got its start in 2013 after separating from Abbott Labs . | Johnson & Johnson: An investor's top foundation stock AbbVie and Novo Nordisk are poised for growth in different areas, but no portfolio is complete without a sturdy, reliable foundation -- and for pharma investors looking for the best stock for just that, there's no better name on the market than Johnson & Johnson. Three exciting stocks for the long run While there are a number of top stocks in pharma, Johnson & Johnson, AbbVie, and Novo Nordisk stand out for investors looking to invest in the best. Let's take a look at three pharma companies -- AbbVie , Novo Nordisk , and Johnson & Johnson -- that could be a big winner for your portfolio in the long term. | Let's take a look at three pharma companies -- AbbVie , Novo Nordisk , and Johnson & Johnson -- that could be a big winner for your portfolio in the long term. AbbVie and life beyond Humira AbbVie doesn't have the history of many of the biggest names in big pharma -- after all, the drugmaker only got its start in 2013 after separating from Abbott Labs . But AbbVie carried with it Humira, the superstar immunology drug that racked up more than $10 billion in revenue last year alone. |
27376.0 | 2014-09-18 00:00:00 UTC | Is It Time to Buy Dividend Stock Bristol-Myers Squibb Co? | ABBV | https://www.nasdaq.com/articles/it-time-buy-dividend-stock-bristol-myers-squibb-co-2014-09-18 | nan | nan | Big Pharma's battle with the patent cliff has led to drastic changes across the healthcare sector. Companies have slashed workforces, changed the focus of their product and clinical portfolios, and even moved abroad to lower their effective tax rates.
Bristol-Myers Squibb fell hard off the patent cliff following the loss of exclusivity for its top-selling blood thinner Plavix. Over the past few years, the company has reorganized to cut costs and has started developing immuno-oncology and hepatitis C therapies. The result has been a steadily rising share price without a concomitant increase in diluted earnings per share, as shown by the chart below.
This apparent dichotomy might finally have caught up with the pharma giant, as its share price has actually fallen by about 3% year to date. Given this recent weakness in Bristol's share price and its rapidly developing late-stage clinical pipeline, I think it's a good time to consider if the stock is now a compelling long-term buy. Here is a look at Bristol's valuation and growth prospects in comparison to its Big Pharma peers.
Should investors buy Bristol ahead of new product launches?
Bristol could launch a handful of intriguing new hepatitis C and immuno-oncology products within the next eight to 12 months . How does this top pharma name stack up against competitors that are also closing in on new product launches?
As shown above, there is a mismatch between the performance of Bristol's share price and its underlying growth in terms of EPS. Subsequently, shares are trading at a price-to-earnings ratio of 31, easily beating the sector average of 24. On a forward-looking basis, this ratio is expected to only drop to 29, despite the potential introduction of new products.
One key problem is that Bristol's most promising new therapy would enter the highly competitive hepatitis C market, currently dominated by Gilead Sciences and its blockbuster drug Sovaldi. Even after a near 40% jump in Gilead's share price this year, Sovaldi sales are projected to lower the company's forward P/E to a mere 11 -- well below Bristol's and the overall sector's forward-looking P/E ratios.
AbbVie is also expected to launch its triple-combo hepatitis C therapy before year's end, and might ultimately be Bristol's main competitor in the fight to gain market share among the second wave of drugs for this disease. Moreover, AbbVie's shares are tradingwith a forward P/E of 15, offering a deep discount to Bristol.
Overall, the Street expects Bristol's new products to merely help dampen the increasing revenue losses from Plavix and other patent cliff victims. In other words, top and bottom-line growth won't be enough to drive shares higher based on fundamentals.
Foolish wrap-up
The strong performance of Bristol's share price over the past few years, despite falling revenue, makes me believe this stock has been propelled higher simply by the rising tide of the overall market. The sector's average P/E of 24 is already starting to generate fear that valuations are becoming "stretched." Bristol looks to me like it would be among the first to be hit by a marketwide correction.
Perhaps Bristol's biggest issue is that it simply doesn't offer the strong growth prospects of fellow biopharmas AbbVie and Gilead, among others. Even with potential growth drivers like immuno-oncology and hepatitis C, I just don't like the stock's upside nearly as much as other potential investments right now. Simply put, I would delay taking a position untilthis stock pulls back from these lofty highs and Bristol's pipeline develops further.
But you can win with these top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article Is It Time to Buy Dividend Stock Bristol-Myers Squibb Co? originally appeared on Fool.com.
George Budwell has no position in any stocks 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. | AbbVie is also expected to launch its triple-combo hepatitis C therapy before year's end, and might ultimately be Bristol's main competitor in the fight to gain market share among the second wave of drugs for this disease. Moreover, AbbVie's shares are tradingwith a forward P/E of 15, offering a deep discount to Bristol. Perhaps Bristol's biggest issue is that it simply doesn't offer the strong growth prospects of fellow biopharmas AbbVie and Gilead, among others. | Perhaps Bristol's biggest issue is that it simply doesn't offer the strong growth prospects of fellow biopharmas AbbVie and Gilead, among others. AbbVie is also expected to launch its triple-combo hepatitis C therapy before year's end, and might ultimately be Bristol's main competitor in the fight to gain market share among the second wave of drugs for this disease. Moreover, AbbVie's shares are tradingwith a forward P/E of 15, offering a deep discount to Bristol. | AbbVie is also expected to launch its triple-combo hepatitis C therapy before year's end, and might ultimately be Bristol's main competitor in the fight to gain market share among the second wave of drugs for this disease. Moreover, AbbVie's shares are tradingwith a forward P/E of 15, offering a deep discount to Bristol. Perhaps Bristol's biggest issue is that it simply doesn't offer the strong growth prospects of fellow biopharmas AbbVie and Gilead, among others. | AbbVie is also expected to launch its triple-combo hepatitis C therapy before year's end, and might ultimately be Bristol's main competitor in the fight to gain market share among the second wave of drugs for this disease. Moreover, AbbVie's shares are tradingwith a forward P/E of 15, offering a deep discount to Bristol. Perhaps Bristol's biggest issue is that it simply doesn't offer the strong growth prospects of fellow biopharmas AbbVie and Gilead, among others. |
27377.0 | 2014-09-17 00:00:00 UTC | Shire's Vyvanse Accepted for FDA Review for Binge Eating - Analyst Blog | ABBV | https://www.nasdaq.com/articles/shires-vyvanse-accepted-for-fda-review-for-binge-eating-analyst-blog-2014-09-17 | 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.
Shire plc ( SHPG ) recently announced that the FDA has accepted its supplemental New Drug Application (sNDA) for Vyvanse with priority review for the indication of binge eating disorder in adults.
The anticipated Prescription Drug User Fee Act action date is in Feb 2015. We note that Vyvanse is already approved for the treatment of attention-deficit/hyperactivity disorder (ADHD).
The sNDA was based on encouraging results from two identically designed, randomized, placebo-controlled phase III studies which evaluated the efficacy and safety of Vyvanse versus placebo.
Results from the study showed that Vyvanse was statistically superior to placebo on the primary efficacy analysis while maintaining a safety profile.
The label expansion of Vyvanse is expected to boost its sales further. In Jun 2014, Shire agreed to conduct pediatric clinical studies following the FDA's request to investigate the potential use of the drug for the treatment of ADHD in children aged 4 to 5 years.
Meanwhile, Shire has finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Under the terms of the offer, shareholders of Shire will receive £53.19 for per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share held).
Shire currently carries a Zacks Rank #2 (Buy). Investors looking for better-ranked stocks in the broader health care sector may consider Allergan ( AGN ) and Gilead Sciences ( GILD ), both carrying a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, Shire has finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Shire plc ( SHPG ) recently announced that the FDA has accepted its supplemental New Drug Application (sNDA) for Vyvanse with priority review for the indication of binge eating disorder in adults. | Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Shire has finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Investors looking for better-ranked stocks in the broader health care sector may consider Allergan ( AGN ) and Gilead Sciences ( GILD ), both carrying a Zacks Rank #1 (Strong Buy). | Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Shire has finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. Under the terms of the offer, shareholders of Shire will receive £53.19 for per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company for each Shire share held). | Click to get this free report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Shire has finally agreed to AbbVie's ( ABBV ) acquisition proposal in Jul 2014. We note that Vyvanse is already approved for the treatment of attention-deficit/hyperactivity disorder (ADHD). |
27378.0 | 2014-09-15 00:00:00 UTC | Biogen/AbbVie Report Positive Data on MS Drug Zinbryta - Analyst Blog | ABBV | https://www.nasdaq.com/articles/biogen-abbvie-report-positive-data-on-ms-drug-zinbryta-analyst-blog-2014-09-15 | nan | nan | Biogen Idec Inc. ( BIIB ) and partner AbbVie Inc. ( ABBV ) announced detailed positive results from the phase III study, DECIDE, on their multiple sclerosis (MS) candidate, Zinbryta (daclizumab).
The global, randomized, double-blind, two- to three-year phase III study assessed whether Zinbryta is superior to Avonex for the treatment of patients suffering from relapsing-remitting multiple sclerosis (RRMS). Biogen's Avonex is one of the most commonly prescribed drugs for relapsing forms of MS.
The DECIDE study met the primary endpoint of reduction in annualized relapse rate (ARR). Data from the study showed that Zinbryta demonstrated a 45% reduction in ARR compared to Avonex. Additionally, 73% of patients in the Zinbryta arm were relapse-free compared to 59% in the Avonex arm.
Moreover, at week 96, Zinbryta showed superiority in reducing the number of new or newly enlarging T2-hyperintense lesions (by 54% compared to Avonex) and lowered the risk of meaningful worsening in the physical impact of MS (by 24% compared to Avonex). Although the candidate reduced the risk of three-month confirmed disability progression (by 16% compared to Avonex), it was not statistically significant.
Based on the encouraging data from the study, Biogen and AbbVie plan to submit a regulatory application for Zinbryta in the first half of 2015.
We note that Biogen holds a strong position in the MS market with drugs like Avonex, Tysabri and Tecfidera. Last month, the FDA approved Plegridy for the treatment of RRMS.
Biogen is a Zacks Rank #2 (Buy) stock. Other well-ranked stocks in the biotech sector include Gilead Sciences Inc. ( GILD ) and Amgen Inc. ( AMGN ). While Gilead is a Zacks Rank #1 (Strong Buy) stock, Amgen carries the same rank as Biogen.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biogen Idec Inc. ( BIIB ) and partner AbbVie Inc. ( ABBV ) announced detailed positive results from the phase III study, DECIDE, on their multiple sclerosis (MS) candidate, Zinbryta (daclizumab). Based on the encouraging data from the study, Biogen and AbbVie plan to submit a regulatory application for Zinbryta in the first half of 2015. Click to get this free report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Biogen Idec Inc. ( BIIB ) and partner AbbVie Inc. ( ABBV ) announced detailed positive results from the phase III study, DECIDE, on their 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 GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Based on the encouraging data from the study, Biogen and AbbVie plan to submit a regulatory application for Zinbryta in the first half of 2015. | Biogen Idec Inc. ( BIIB ) and partner AbbVie Inc. ( ABBV ) announced detailed positive results from the phase III study, DECIDE, on their 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 GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Based on the encouraging data from the study, Biogen and AbbVie plan to submit a regulatory application for Zinbryta in the first half of 2015. | Biogen Idec Inc. ( BIIB ) and partner AbbVie Inc. ( ABBV ) announced detailed positive results from the phase III study, DECIDE, on their multiple sclerosis (MS) candidate, Zinbryta (daclizumab). Based on the encouraging data from the study, Biogen and AbbVie plan to submit a regulatory application for Zinbryta in the first half of 2015. Click to get this free report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
27379.0 | 2014-09-15 00:00:00 UTC | Notable ETF Outflow Detected - SSO, MMM, ABT, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-sso-mmm-abt-abbv-2014-09-15 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $98.4 million dollar outflow -- that's a 4.8% decrease week over week (from 17,250,000 to 16,425,000). Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is trading flat, and AbbVie Inc. (Symbol: ABBV) is up by about 0.3%. The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $122.33 as the 52 week high point - that compares with a last trade of $119.21. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is trading flat, and AbbVie Inc. (Symbol: ABBV) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $98.4 million dollar outflow -- that's a 4.8% decrease week over week (from 17,250,000 to 16,425,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $122.33 as the 52 week high point - that compares with a last trade of $119.21. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is trading flat, and AbbVie Inc. (Symbol: ABBV) is up by about 0.3%. The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $122.33 as the 52 week high point - that compares with a last trade of $119.21. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is trading flat, and AbbVie Inc. (Symbol: ABBV) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $98.4 million dollar outflow -- that's a 4.8% decrease week over week (from 17,250,000 to 16,425,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $122.33 as the 52 week high point - that compares with a last trade of $119.21. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is trading flat, and AbbVie Inc. (Symbol: ABBV) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $98.4 million dollar outflow -- that's a 4.8% decrease week over week (from 17,250,000 to 16,425,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $81.01 per share, with $122.33 as the 52 week high point - that compares with a last trade of $119.21. |
27380.0 | 2014-09-12 00:00:00 UTC | AbbVie's Humira Positive in Phase III Skin Disease Study - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbvies-humira-positive-in-phase-iii-skin-disease-study-analyst-blog-2014-09-12 | nan | nan | AbbVie Inc. ( ABBV ) announced that Humira met the primary endpoint in a pivotal phase III study conducted in patients suffering from moderate-to-severe hidradenitis suppurativa (HS). The company's shares were up 1.2% on the news.
AbbVie presented data from the first of two pivotal phase III studies. The 36-week, multicenter, randomized, double-blind, two-period PIONEER I (n= 507) study was conducted to evaluate the safety and efficacy of Humira compared to placebo. Results showed that Humira 40 mg demonstrated a significant improvement in HS-related abscesses and inflammatory nodules at 12 weeks compared to placebo (41.8% versus 26%).
These results were presented at the Annual European Society for Dermatological Research (ESDR) Meeting. Meanwhile, the company intends to present data from the second phase III study (PIONEER II) at a forthcoming medical congress.
We note that Humira is the key growth driver at AbbVie. The product generated revenues of $5.9 billion in the first half of 2014.
Humira is already approved for several indications including rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, plaque psoriasis, ulcerative colitis and juvenile idiopathic arthritis, among others.
Meanwhile, AbbVie is working on expanding Humira's label further into indications like fingernail psoriasis in patients with moderate-to-severe chronic plaque psoriasis.
We are pleased with the encouraging results from the study. Once approved, the new medication will provide significant benefit to patients suffering from HS considering the lack of approved treatments. According to the press release issued by AbbVie, HS affects nearly 1% of the general adult population across the world.
AbbVie is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include Allergan Inc. ( AGN ), Akorn, Inc. ( AKRX ) and Abbott Laboratories ( ABT ). While Allergan and Akorn are Zacks Rank #1 (Strong Buy) stocks, Abbott Laboratories holds 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. | AbbVie Inc. ( ABBV ) announced that Humira met the primary endpoint in a pivotal phase III study conducted in patients suffering from moderate-to-severe hidradenitis suppurativa (HS). AbbVie presented data from the first of two pivotal phase III studies. We note that Humira is the key growth driver at AbbVie. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report AKORN INC (AKRX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ( ABBV ) announced that Humira met the primary endpoint in a pivotal phase III study conducted in patients suffering from moderate-to-severe hidradenitis suppurativa (HS). AbbVie presented data from the first of two pivotal phase III studies. | AbbVie Inc. ( ABBV ) announced that Humira met the primary endpoint in a pivotal phase III study conducted in patients suffering from moderate-to-severe hidradenitis suppurativa (HS). Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report AKORN INC (AKRX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie presented data from the first of two pivotal phase III studies. | AbbVie Inc. ( ABBV ) announced that Humira met the primary endpoint in a pivotal phase III study conducted in patients suffering from moderate-to-severe hidradenitis suppurativa (HS). AbbVie is a Zacks Rank #3 (Hold) stock. AbbVie presented data from the first of two pivotal phase III studies. |
27381.0 | 2014-09-12 00:00:00 UTC | Abbott Labs (ABT) to Repurchase Shares for $3B - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbott-labs-abt-to-repurchase-shares-for-%243b-analyst-blog-2014-09-12 | nan | nan | In an effort to increase shareholder value, Abbott Laboratories ' ( ABT ) board of directors has approved a new share repurchase program.
The board has authorized the repurchase of shares worth up to $3 billion. The new program adds to the $511 million of authorization unused from the prior program, announced in Jun 2013.
The new authorization will leverage Abbott Labs' solid financial position. The company had cash and cash equivalents of $3.6 billion at the end of second-quarter 2014.
Concurrently, Abbott Labs also declared a quarterly common dividend of 22 cents per share which will be paid on Nov 15, 2014 to shareholders of record at the close of business on Oct. 15, 2014.
We note that Abbott Labs had announced a 57% increase in dividends from 14 cents to 22 cents per share in Feb 2014.
We remind investors that Abbott Labs has returned approximately $35 billion to its shareholders through dividends and share repurchases in the last 10 years. The recent increase in dividends and share repurchase program further reinforces the company's commitment to return value to shareholders following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013.
Abbott Labs reported better-than-expected sales and earnings in the second quarter of 2014, thereby keeping alive its earnings surprise streak. The latest news will further boost investor interest.
Currently, Abbott Labs carries a Zacks Rank #2 (Buy). Other stocks in the health care sector that look attractive include Allergan ( AGN ) and Gilead Sciences ( GILD ). Both carry 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 recent increase in dividends and share repurchase program further reinforces the company's commitment to return value to shareholders following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In an effort to increase shareholder value, Abbott Laboratories ' ( ABT ) board of directors has approved a new share repurchase program. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The recent increase in dividends and share repurchase program further reinforces the company's commitment to return value to shareholders following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. Currently, Abbott Labs carries a Zacks Rank #2 (Buy). | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The recent increase in dividends and share repurchase program further reinforces the company's commitment to return value to shareholders following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. We remind investors that Abbott Labs has returned approximately $35 billion to its shareholders through dividends and share repurchases in the last 10 years. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The recent increase in dividends and share repurchase program further reinforces the company's commitment to return value to shareholders following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. We remind investors that Abbott Labs has returned approximately $35 billion to its shareholders through dividends and share repurchases in the last 10 years. |
27382.0 | 2014-09-10 00:00:00 UTC | Biotech Stock Roundup: AbbVie Ties Up with Infinity, Keryx Slips on FDA Approval - Analyst Blog | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup-abbvie-ties-infinity-keryx-slips-fda-approval-analyst-blog-2014-09 | nan | nan | AbbVie ( ABBV ) was in the news last week thanks to its agreements with Infinity Pharmaceuticals ( INFI ) and Calico. Keryx Biopharmaceuticals ( KERX ) was also in the headlines - the company's shares declined despite receiving FDA approval for its oral, ferric iron-based compound. Gilead ( GILD ) was in the news as well, once again due to its hepatitis C virus (HCV) treatment, Sovaldi.
Recap of the Week's Most Important Stories
1. AbbVie was very active on the deal making front last week with the company signing agreements with Infinity Pharma and Calico (the Google-backed life sciences company). The Infinity Pharma deal could see AbbVie shelling out up to $805 million in the form of upfront and milestone payments. The agreement is focused on experimental cancer treatment, duvelisib. AbbVie, which will be acquiring Shire, is looking to reduce its dependence on Humira and expand its portfolio (read more: Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? ).
2. Keryx saw its shares sliding despite receiving FDA approval for ferric citrate, its oral, ferric iron-based compound. Shares were down reflecting concerns regarding the product labeling which may curtail uptake (read more: Keryx Falls after Ferric Citrate's Approval with Warnings ).
3. Prana Biotechnology's shares were up on news that the company has gained orphan drug status in the U.S. for its experimental Huntington disease treatment, PBT2. This means that the company will enjoy seven years of market exclusivity for PBT2 in the treatment of Huntington disease. The company will get other incentives as well (read more: Prana Biotechnology Up on Orphan Drug Status for PBT2 ).
4. Gilead is rumored to be close to sealing a deal under which its high-priced HCV treatment, Sovaldi, will be provided at a huge discount to 80 developing countries including India and Pakistan. According to a Bloomberg report, Sovaldi could be sold for as less as $900 for a 12-week course. This is in stark contrast to the drug's $84,000 price tag in the U.S. for the same period of treatment. Gilead's shares were down on concerns that this steep discount may once again lead to questions being raised about the drug's high price tag in the U.S. (read more: Gilead Down on Likely Sovaldi Generic Deal in Poor Nations ).
5. Amgen ( AMGN ), which has made significant progress with its pipeline this year, has filed for EU approval of its PCSK9 inhibitor, evolocumab. Evolocumab is one of the most important candidates in Amgen's pipeline and represents huge commercial potential, once approved and launched. The company had filed for U.S. approval just a few days back (Read more: Amgen Seeks EU Approval for PCSK9 Inhibitor Evolocumab ).
Performance
Last week, several of the major biotech stocks were down except Vertex which was up a nominal 0.17%. Gilead was the biggest gainer over the last six months with share price increasing 33.06%.
Biogen ( BIIB ) was the biggest loser among the big biotechs last week with its shares declining 4.63%. Alexion was a close second with shares declining 4.59%. The company, which had already received a warning letter from the FDA last year for its Rhode Island manufacturing facility, received a Form 483 with three inspectional observations from the FDA late last month (read more: Alexion's Soliris Manufacturing Facility Fails to Please FDA ). Alexion's shares were down 3.98% over the last six months.
Overall, the NASDAQ Biotechnology Index lost 2.42% last week. (See the last biotech stock roundup here: United Therapeutics Up on Court Ruling, Amgen Files PCSK9 Inhibitor )
What's Next in the Biotech World?
NPS Pharmaceuticals' ( NPSP ) Natpara, which is currently under FDA review for hypoparathyroidism, will be reviewed by an FDA Advisory Committee later this week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ( ABBV ) was in the news last week thanks to its agreements with Infinity Pharmaceuticals ( INFI ) and Calico. AbbVie was very active on the deal making front last week with the company signing agreements with Infinity Pharma and Calico (the Google-backed life sciences company). The Infinity Pharma deal could see AbbVie shelling out up to $805 million in the form of upfront and milestone payments. | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report NPS PHARMA INC (NPSP): Free Stock Analysis Report KERYX BIOPHARMA (KERX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) was in the news last week thanks to its agreements with Infinity Pharmaceuticals ( INFI ) and Calico. AbbVie was very active on the deal making front last week with the company signing agreements with Infinity Pharma and Calico (the Google-backed life sciences company). | Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report NPS PHARMA INC (NPSP): Free Stock Analysis Report KERYX BIOPHARMA (KERX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ( ABBV ) was in the news last week thanks to its agreements with Infinity Pharmaceuticals ( INFI ) and Calico. AbbVie was very active on the deal making front last week with the company signing agreements with Infinity Pharma and Calico (the Google-backed life sciences company). | AbbVie ( ABBV ) was in the news last week thanks to its agreements with Infinity Pharmaceuticals ( INFI ) and Calico. AbbVie was very active on the deal making front last week with the company signing agreements with Infinity Pharma and Calico (the Google-backed life sciences company). The Infinity Pharma deal could see AbbVie shelling out up to $805 million in the form of upfront and milestone payments. |
27383.0 | 2014-09-10 00:00:00 UTC | After Apple: Tech's Takeover of Healthcare Officially Begins | ABBV | https://www.nasdaq.com/articles/after-apple-techs-takeover-healthcare-officially-begins-2014-09-10 | nan | nan | In this edition of Where The Money Is, analysts David Williamson and Michael Douglass give their take on the week's biggest health care headlines.
This episode dissects Apple 's (Nasdaq: AAPL) huge presentation yesterday, giving health care investors everything they need to know about how iPhone 6, Apple Watch, and the new IOS 8 HealthKit could take the sector by storm.
Other highlights include a massive deal between Google (Nasdaq: GOOG) Calico venture and big pharma Abbvie ; a much needed win for a new Eli Lilly diabetes drug; a potential new weight loss drug from Novo Nordisk , and an important update regarding the alarming Ebola epidemic in Liberia.
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The article After Apple: Tech's Takeover of Healthcare Officially Begins originally appeared on Fool.com.
David Williamson owns shares of AbbVie., Apple, and Google (C shares). Michael Douglass owns shares of Apple. The Motley Fool recommends Apple and Google (C shares). The Motley Fool owns shares of Apple and Google (C shares). 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 - 2014 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. | Other highlights include a massive deal between Google (Nasdaq: GOOG) Calico venture and big pharma Abbvie ; a much needed win for a new Eli Lilly diabetes drug; a potential new weight loss drug from Novo Nordisk , and an important update regarding the alarming Ebola epidemic in Liberia. David Williamson owns shares of AbbVie., Apple, and Google (C shares). In this edition of Where The Money Is, analysts David Williamson and Michael Douglass give their take on the week's biggest health care headlines. | David Williamson owns shares of AbbVie., Apple, and Google (C shares). Other highlights include a massive deal between Google (Nasdaq: GOOG) Calico venture and big pharma Abbvie ; a much needed win for a new Eli Lilly diabetes drug; a potential new weight loss drug from Novo Nordisk , and an important update regarding the alarming Ebola epidemic in Liberia. Michael Douglass owns shares of Apple. | Other highlights include a massive deal between Google (Nasdaq: GOOG) Calico venture and big pharma Abbvie ; a much needed win for a new Eli Lilly diabetes drug; a potential new weight loss drug from Novo Nordisk , and an important update regarding the alarming Ebola epidemic in Liberia. David Williamson owns shares of AbbVie., Apple, and Google (C shares). This episode dissects Apple 's (Nasdaq: AAPL) huge presentation yesterday, giving health care investors everything they need to know about how iPhone 6, Apple Watch, and the new IOS 8 HealthKit could take the sector by storm. | Other highlights include a massive deal between Google (Nasdaq: GOOG) Calico venture and big pharma Abbvie ; a much needed win for a new Eli Lilly diabetes drug; a potential new weight loss drug from Novo Nordisk , and an important update regarding the alarming Ebola epidemic in Liberia. David Williamson owns shares of AbbVie., Apple, and Google (C shares). The Motley Fool recommends Apple and Google (C shares). |
27384.0 | 2014-09-08 00:00:00 UTC | Noteworthy ETF Outflows: SSO, MMM, ABT, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows-sso-mmm-abt-abbv-2014-09-08 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $447.9 million dollar outflow -- that's a 17.9% decrease week over week (from 20,550,000 to 16,875,000). Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.4%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.2%. The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $80.40 per share, with $122.33 as the 52 week high point - that compares with a last trade of $121.33. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.4%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $447.9 million dollar outflow -- that's a 17.9% decrease week over week (from 20,550,000 to 16,875,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $80.40 per share, with $122.33 as the 52 week high point - that compares with a last trade of $121.33. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.4%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.2%. The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $80.40 per share, with $122.33 as the 52 week high point - that compares with a last trade of $121.33. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.4%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $447.9 million dollar outflow -- that's a 17.9% decrease week over week (from 20,550,000 to 16,875,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $80.40 per share, with $122.33 as the 52 week high point - that compares with a last trade of $121.33. | Among the largest underlying components of SSO, in trading today 3M Co (Symbol: MMM) is up about 0.4%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and AbbVie Inc. (Symbol: ABBV) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Proshares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $447.9 million dollar outflow -- that's a 17.9% decrease week over week (from 20,550,000 to 16,875,000). The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $80.40 per share, with $122.33 as the 52 week high point - that compares with a last trade of $121.33. |
27385.0 | 2014-09-06 00:00:00 UTC | Will Google and AbbVie’s $1.5 Billion Anti-Aging Partnership Pay Off? | ABBV | https://www.nasdaq.com/articles/will-google-and-abbvies-15-billion-anti-aging-partnership-pay-2014-09-06 | nan | nan | Google 's health care footprint just got a lot bigger, thanks to a new $1.5 billion partnership between its biotech unit Calico and drug maker AbbVie .
Source: Wikimedia Commons.
Calico, which is headed by former Genentech CEO Arthur Levinson, will build a research and development center in the San Francisco Bay Area to oversee drug development and early clinical trials. AbbVie will help Calico design and conduct research on age-related diseases and neurodegenerative disorders, and have the option to manage the late-stage drug development and marketing of any approved drugs.
Calico and AbbVie will both initially invest up to $250 million, then up to $500 million more each, on the new partnership. The two companies will split the costs and profits from the partnership equally.
What the deal means for Google and Calico
In addition to Calico, Google has recently taken other bold steps into the healthcare field.
It introduced a smart contact lens designed to detect blood glucose levels via tears in January, which was subsequently licensed to Novartis in July. That same month, Google launched the Baseline Study , which will catalog anonymized genetic data to better understand the defining biomarkers of various diseases. Meanwhile, Google Glass has attracted start-ups developing EHR and augmented reality apps for use in hospitals .
AbbVie's involvement is a major vote of confidence for Calico, which was established last September with a vague goal of treating age-related diseases and extending the average human lifespan by 20 to 100 years. If AbbVie and Calico's drugs are ever approved, the partnership could turn Calico into Google's revenue-generating biotech arm. That would be a remarkable cross-industry accomplishment which Google's industry rivals could only dream of achieving.
What the deal means for AbbVie
For AbbVie, a partnership with Calico is a new way to diversify its portfolio away from its blockbuster arthritis drug Humira, which will lose patent protection in the U.S. in 2016. Last year, Humira generated $10.7 billion in sales and accounted for 57% of AbbVie's top line.
AbbVie also recently signed a partnership with Infinity Pharmaceuticals , worth up to $805 million, for the rights to jointly commercialize its investigational blood cancer treatment duvelisib.
AbbVie's deals with Calico and Infinity are important because they could both yield new cancer drugs. Meanwhile, if AbbVie and Calico also focus on new Parkinson's treatments, they could complement AbbVie's Duodopa, a standard treatment for controlling Parkinson's symptoms which generated $178 million in sales last year.
The Calico partnership is unusual because large drug makers like AbbVie generally partner with smaller companies which have promising drug candidates in their pipelines. Calico, by comparison, hasn't publicly outlined any of its drug development plans yet.
The business of anti-aging
AbbVie and Calico wouldn't be the first companies to try to reverse aging and prolong human lives.
Back in 2008, GlaxoSmithKline acquired Sirtris Pharmaceuticals for $720 million. Sirtris was developing sirtuins, a class of enzymes which were believed to be involved in the aging process. That effort ultimately went nowhere, and GSK shut down Sirtris last year. Other companies, like Geron , believe that understanding telomeres -- the "bumpers" at the end of our chromosomes which shorten every time cells divide -- could help us treat age-related diseases like cancer. But just like sirtuins, no telomere-targeting treatments have ever been approved.
Meanwhile, drug makers have made little progress in treating age-related neurological disorders like Alzheimer's and Parkinson's disease. To date, no treatment has succeeded in treating the root causes of either disease, and current drugs only treat the symptoms of both.
A Foolish final word
When Google first launched Calico, Antonio Regalado at MIT Technology Reviewdismissed the effort as "pure snake oil" capitalizing on "people's wish to cheat death".
But considering that Novartis and AbbVie are now both partnered with Google, it's clear that the drug makers see something the public doesn't in the tech giant's healthcare efforts. While it might take several years for these partnerships to bear fruit, Google's growing presence in healthcare -- through smart medical devices, the use of Glass in hospitals, the collection of genetic data, and new drug development -- should not be ignored by tech and healthcare investors.
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The article Will Google and AbbVie's $1.5 Billion Anti-Aging Partnership Pay Off? originally appeared on Fool.com.
Leo Sun has no position in any stocks mentioned. The Motley Fool recommends Google (A shares) and Google (C shares). The Motley Fool owns shares of Google (A shares) and Google (C shares). 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's involvement is a major vote of confidence for Calico, which was established last September with a vague goal of treating age-related diseases and extending the average human lifespan by 20 to 100 years. AbbVie also recently signed a partnership with Infinity Pharmaceuticals , worth up to $805 million, for the rights to jointly commercialize its investigational blood cancer treatment duvelisib. Google 's health care footprint just got a lot bigger, thanks to a new $1.5 billion partnership between its biotech unit Calico and drug maker AbbVie . | Google 's health care footprint just got a lot bigger, thanks to a new $1.5 billion partnership between its biotech unit Calico and drug maker AbbVie . Last year, Humira generated $10.7 billion in sales and accounted for 57% of AbbVie's top line. Meanwhile, if AbbVie and Calico also focus on new Parkinson's treatments, they could complement AbbVie's Duodopa, a standard treatment for controlling Parkinson's symptoms which generated $178 million in sales last year. | Google 's health care footprint just got a lot bigger, thanks to a new $1.5 billion partnership between its biotech unit Calico and drug maker AbbVie . AbbVie will help Calico design and conduct research on age-related diseases and neurodegenerative disorders, and have the option to manage the late-stage drug development and marketing of any approved drugs. If AbbVie and Calico's drugs are ever approved, the partnership could turn Calico into Google's revenue-generating biotech arm. | If AbbVie and Calico's drugs are ever approved, the partnership could turn Calico into Google's revenue-generating biotech arm. AbbVie also recently signed a partnership with Infinity Pharmaceuticals , worth up to $805 million, for the rights to jointly commercialize its investigational blood cancer treatment duvelisib. Google 's health care footprint just got a lot bigger, thanks to a new $1.5 billion partnership between its biotech unit Calico and drug maker AbbVie . |
27386.0 | 2014-09-05 00:00:00 UTC | Abbott Labs' FreeStyle Libre Flash Glucose Gets CE Mark - Analyst Blog | ABBV | https://www.nasdaq.com/articles/abbott-labs-freestyle-libre-flash-glucose-gets-ce-mark-analyst-blog-2014-09-05 | nan | nan | Abbott Labs ( ABT ) received positive news when its FreeStyle Libre Flash Glucose Monitoring System obtained CE Mark (Conformite Europeenne) in Europe.
Abbott Labs' glucose system eliminates the need for routine finger pricks and challenges of routine glucose monitoring for people suffering from diabetes. This enables them to maintain a better understanding of their glucose levels. Abbott Labs expects the system to be available in seven countries across Europe.
As per estimates from the International Diabetes Federation, approximately 56 million suffering from diabetes live in Europe. The launch of FreeStyle Libre system will boost Diabetes care sales as the segment continues to be impacted by CMS reimbursement reductions and market dynamics. Abbott Labs generated sales of $577 million from its Diabetes care segment, down 10% from a year ago.
We note that Abbott Labs continues to invest in developing innovative technologies in its diabetes care business.
We were impressed by the company's performance in the first half of 2014 and the subsequent increase in guidance. Abbott Labs now expects earnings per share in the range of $2.19 to $2.29 in 2014 (old guidance $2.16 to $2.26). The second half of 2014 should see an improved performance by the company.
We remind investors that Abbott Labs became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013.
Abbott Labs currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader healthcare sector include Allergan ( AGN ) and Gilead Sciences ( GILD ). Both the stocks carry a Zacks Rank #1 (Strong Buy).
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We remind investors that Abbott Labs became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) received positive news when its FreeStyle Libre Flash Glucose Monitoring System obtained CE Mark (Conformite Europeenne) in Europe. | Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that Abbott Labs became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. The launch of FreeStyle Libre system will boost Diabetes care sales as the segment continues to be impacted by CMS reimbursement reductions and market dynamics. | We remind investors that Abbott Labs became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs' glucose system eliminates the need for routine finger pricks and challenges of routine glucose monitoring for people suffering from diabetes. | We remind investors that Abbott Labs became a diversified medical products company focusing on branded generic pharmaceutical, medical devices, diagnostic and nutritional businesses following the separation of its research-based pharmaceuticals business into a new company, AbbVie Inc. ( ABBV ), in Jan 2013. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report ALLERGAN INC (AGN): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs' glucose system eliminates the need for routine finger pricks and challenges of routine glucose monitoring for people suffering from diabetes. |
27387.0 | 2014-09-04 00:00:00 UTC | 3 Reasons Bristol-Myers Squibb's Stock Could Fall | ABBV | https://www.nasdaq.com/articles/3-reasons-bristol-myers-squibbs-stock-could-fall-2014-09-04 | nan | nan | This has been a year of major changes for Big Pharma. As the so-called patent cliff has started to peak, we've seen a number of companies make huge acquisitions, push promising new drugs into regulatory review, and even move to change locales to lower their tax burden.
Bristol-Myers Squibb is perhaps the poster child of the patent problems sweeping over the industry. After recently losing patent protection for its former blockbuster blood thinner Plavix and a host of other important products, the company decided to focus on immuno-oncology and hepatitis therapies to drive top-line growth.
Wall Street, however, doesn't appear impressed by Bristol's plan, with shares drastically underperforming the broader markets.
Although there is no way to know for sure how any stock will perform over the a given time frame, I think it's generally a good idea to consider the risks associated with every investment. With that in mind, here are three reasons why Bristol's stock could fall moving forward.
Reason No. 1
Bristol hopes to break into the hepatitis C game soon with its dual regimen of Daklinza and Sunvepra, indicated for genotype 1b patients. Although the combo's clinical data looks strong, and Food and Drug Administration approval should be forthcoming on Nov. 30, its commercial prospects are less certain.
Gilead Sciences already dominates the hepatitis C market with Sovaldi, and its combo therapy of Sovaldi and ledipasvir should create yet another barrier to entry for newer products.
Another reason Bristol's drug might fall short of expectations is that Johnson & Johnson 's Olysio appears to have become a favorite among specialists, being frequently co-prescribed with Sovaldi for genotype 1 patients. So Bristol will probably have to compete on pricing to gain market share.
AbbVie and Enanta Pharmaceuticals are also aiming at this market via a triple therapy offering for genotype 1 patients, which is widely expected to gain approval later this year. All told, I think Bristol is going to have a tough time finding a profitable niche in this increasingly crowded space.
Reason No. 2
The commercial opportunity in the immuno-oncology space is expected to be huge. Even so, Bristol's top candidate, dubbed Opdivo, hasn't exactly shined as a front-line treatment for non-small cell lung cancer.
We learned earlier this year that an interim analysis of an early stage study showed that only 22% of patients showed signs of anti-tumor activity, and nearly half of all study participants experienced a serious adverse event, when receiving Opdivo in combination with Yervoy.
In the monotherapy trial expected to be used as the basis for the ongoing regulatory filing, Opdivo performed better in increasing overall survival as a third-line treatment, but it still produced a fairly high rate (14%) of Grade 3-4 adverse events.
While Opdivo's prospects for advanced melanoma look stronger on the clinical front, the data collected so far suggests the therapy's commercial prospects for lung cancer will be limited.
Reason No. 3
Wall Street isn't optimistic about the ability of Bristol's late-stage candidates to replace lost revenue in the short term. The company is expected to see another 4% dip in diluted earnings per share in the coming year, as former top-selling products continue to lose market share to generic rivals. If this holds true, Bristol's shares are thus trading at a forward price-to-earnings ratio of 29, exceeding the sector average of 25.
In sum, experts remain unconvinced that Bristol's hepatitis C therapy and immuno-oncology candidates can bridge the revenue gap anytime soon.
Foolish wrap-up
Bristol's strategy to shift into immuno-oncology and other novel markets is certainly not free of risk. However, management has clearly staked the company's future on this path by inking new research and collaboration deals with promising players in this developing field.
On the bright side, Bristol does have a solid balance sheet , which should give it the time needed to make the transition. That said, there is no guarantee that these experimental products in immuno-oncology will ultimately bear fruit. Indeed, we've seen a host of promising immuno-therapies flame out in the clinical testing process over the years. As such, I am willing to watch Bristol's efforts safely from the sidelines for now.
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The article 3 Reasons Bristol-Myers Squibb's Stock Could Fall originally appeared on Fool.com.
George Budwell owns shares of Enanta Pharmaceuticals and Johnson & Johnson. 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 - 2014 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 Enanta Pharmaceuticals are also aiming at this market via a triple therapy offering for genotype 1 patients, which is widely expected to gain approval later this year. As the so-called patent cliff has started to peak, we've seen a number of companies make huge acquisitions, push promising new drugs into regulatory review, and even move to change locales to lower their tax burden. After recently losing patent protection for its former blockbuster blood thinner Plavix and a host of other important products, the company decided to focus on immuno-oncology and hepatitis therapies to drive top-line growth. | AbbVie and Enanta Pharmaceuticals are also aiming at this market via a triple therapy offering for genotype 1 patients, which is widely expected to gain approval later this year. With that in mind, here are three reasons why Bristol's stock could fall moving forward. Another reason Bristol's drug might fall short of expectations is that Johnson & Johnson 's Olysio appears to have become a favorite among specialists, being frequently co-prescribed with Sovaldi for genotype 1 patients. | AbbVie and Enanta Pharmaceuticals are also aiming at this market via a triple therapy offering for genotype 1 patients, which is widely expected to gain approval later this year. With that in mind, here are three reasons why Bristol's stock could fall moving forward. Another reason Bristol's drug might fall short of expectations is that Johnson & Johnson 's Olysio appears to have become a favorite among specialists, being frequently co-prescribed with Sovaldi for genotype 1 patients. | AbbVie and Enanta Pharmaceuticals are also aiming at this market via a triple therapy offering for genotype 1 patients, which is widely expected to gain approval later this year. With that in mind, here are three reasons why Bristol's stock could fall moving forward. Another reason Bristol's drug might fall short of expectations is that Johnson & Johnson 's Olysio appears to have become a favorite among specialists, being frequently co-prescribed with Sovaldi for genotype 1 patients. |
27388.0 | 2014-09-04 00:00:00 UTC | Google's Calico in $500M Joint Venture with AbbVie - Analyst Blog | ABBV | https://www.nasdaq.com/articles/googles-calico-in-%24500m-joint-venture-with-abbvie-analyst-blog-2014-09-04 | nan | nan | Calico, Google's ( GOOGL ) year-old health startup is collaborating with biotechnology drugmaker, AbbVie ( ABBV ), a spin-off from Abbott Laboratories ( ABT ), for a joint venture to formulate treatments for cancer and Alzheimer's. The project will be worth $500 million.
Google Inc. and AbbVie Inc. are to invest $250 million each. Besides this, another $1 billion may be invested in the project, if required. The entire expenses along with the profits earned by the venture will be shared by both the companies.
During the first five years of the collaboration, Calico will be looking after research and initial development, which will include construction of a world-class facility in the San Francisco Bay Area. In the second phase, AbbVie will be given the choice to take up management and marketing of projects that are ready.
AbbVie will use its pharmaceutical prowess to support Calico in scientific as well as clinical development and will use its commercial competence to make sure that these therapies are brought to the market.
Since Calico is headed by Arthur Levinson, chairman of Apple Inc. ( AAPL ), there are speculations that Google's the entry into healthcare could include a new wearable Apple device.
Such alliances are not uncommon. Intel ( INTC ) and GE together formed Care Innovations in 2011. The joint venture focuses on technology solutions to connect people to their care teams and the ability to live without being dependant on anyone.
Google currently holds 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie will use its pharmaceutical prowess to support Calico in scientific as well as clinical development and will use its commercial competence to make sure that these therapies are brought to the market. Calico, Google's ( GOOGL ) year-old health startup is collaborating with biotechnology drugmaker, AbbVie ( ABBV ), a spin-off from Abbott Laboratories ( ABT ), for a joint venture to formulate treatments for cancer and Alzheimer's. Google Inc. and AbbVie Inc. are to invest $250 million each. | Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report To read this article on Zacks.com click here. Calico, Google's ( GOOGL ) year-old health startup is collaborating with biotechnology drugmaker, AbbVie ( ABBV ), a spin-off from Abbott Laboratories ( ABT ), for a joint venture to formulate treatments for cancer and Alzheimer's. Google Inc. and AbbVie Inc. are to invest $250 million each. | Calico, Google's ( GOOGL ) year-old health startup is collaborating with biotechnology drugmaker, AbbVie ( ABBV ), a spin-off from Abbott Laboratories ( ABT ), for a joint venture to formulate treatments for cancer and Alzheimer's. Click to get this free report ABBVIE INC (ABBV): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report To read this article on Zacks.com click here. Google Inc. and AbbVie Inc. are to invest $250 million each. | Google Inc. and AbbVie Inc. are to invest $250 million each. In the second phase, AbbVie will be given the choice to take up management and marketing of projects that are ready. Calico, Google's ( GOOGL ) year-old health startup is collaborating with biotechnology drugmaker, AbbVie ( ABBV ), a spin-off from Abbott Laboratories ( ABT ), for a joint venture to formulate treatments for cancer and Alzheimer's. |
27389.0 | 2014-09-04 00:00:00 UTC | 3 Reasons Gilead Sciences, Inc.’s Stock Could Fall | ABBV | https://www.nasdaq.com/articles/3-reasons-gilead-sciences-incs-stock-could-fall-2014-09-04 | nan | nan | Gilead Sciences ' stock is a trading at all-time highs, up more than 80% over the last year on the back of a very successful launch of the company's hepatitis C drug Sovaldi. A few weeks ago, I shared three reasons Gilead's stock could go even higher.
GILD data by YCharts .
Now here are three reasons why the stock could fall. While none of these may come to fruition, it's important for investors to be aware of the potential pitfalls.
1. Price wars
Source: Gilead Sciences.
Sovaldi doesn't have any real competition at the moment. Johnson & Johnson 's Olysio treats the same patients, but the drug's second-quarter sales were about a tenth of the $3.5 billion that Sovaldi produced. And most of Olysio's use seems actually to be in combination with Sovaldi.
But more competition is on its way. AbbVie should have an all-oral cocktail approved shortly. The company has indicated it's not interested in getting into a price war, dragging down the price of the treatments, but that could change if AbbVie struggles to gain traction. The Sovaldi all-oral cocktail, which should also be approved by the FDA shortly, is arguably a better drug based on convenience, if nothing else.
Bristol-Myers Squibb might be a more likely spoiler of the high-price-treatment party. Gilead spited the pharma by choosingnot to pursue a combination of Bristol's Daklinza with Sovaldi despite strong clinical trial data. Gilead already had an all-oral cocktail and didn't really need Bristol-Myers Squibb, which developed a combination of its own, which is not nearly as good as a Daklinza-Sovladi combination. Discounted pricing might be the only way to get doctors to prescribe Bristol's combination.
2. Poor execution of its diversification plan
Since hepatitis C treatment is a cure, patients only have to take the drug once unless they are infected again, which should be a dwindling problem as more and more people are cured. Gilead is eventually going to run out of hepatitis C patients to treat.
The eventual downturn is many years away, but Gilead Sciences needs to diversify away from hepatitis C for its next growth story.
It has already tried to diversify with its cardiovascular franchise, but Letairis and Ranexa are only a blockbuster when their sales are combined, and they hardly move the revenue needle that's on target to break $21 billion this year.
Gilead's oncology pipeline is its best diversification prospect. The company recently got Zydelig approved by the FDA, but it's going to take quite a few more oncology drugs to fill the void that its hepatitis C drugs will leave. Beyond Zydelig, Gilead Sciences has four oncology drugs in its pipeline, but only one is in phase 3 development.
3. Side effects
The downside of being so dependent on one drug is that any hiccup will be a major issue for Gilead Sciences. Merck fell substantially when it had to pull Vioxx off the market in 2004, and Sovaldi is arguably much more important to Gilead than Vioxx was to Merck.
It's hard to handicap the likelihood of a side effect not seen in the clinical trials suddenly popping up once the drug is used on a larger population, but it's certainly quite low. There's no reason this threat should keep investors up at night, but at the same time shareholders have to be compensated for taking on the risk -- however low -- of a potential disaster.
From an investment standpoint, the easiest way to do that is to ensure the margin of safety for a biotech company is wider than it would be for companies in other industries. If you'd normally buy if the expected return was 8%, you'd want to expect 10% returns for a biotech. For a company like Gilead Sciences that is so dependent on one drug, you'd want even higher expected returns.
Leaked: 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 will 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. In order to outsmart Wall Street and realize multibagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 3 Reasons Gilead Sciences, Inc.'s Stock Could Fall originally appeared on Fool.com.
Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences and Johnson & Johnson and owns shares of both companies. 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 - 2014 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 should have an all-oral cocktail approved shortly. The company has indicated it's not interested in getting into a price war, dragging down the price of the treatments, but that could change if AbbVie struggles to gain traction. Gilead Sciences ' stock is a trading at all-time highs, up more than 80% over the last year on the back of a very successful launch of the company's hepatitis C drug Sovaldi. | AbbVie should have an all-oral cocktail approved shortly. The company has indicated it's not interested in getting into a price war, dragging down the price of the treatments, but that could change if AbbVie struggles to gain traction. Johnson & Johnson 's Olysio treats the same patients, but the drug's second-quarter sales were about a tenth of the $3.5 billion that Sovaldi produced. | AbbVie should have an all-oral cocktail approved shortly. The company has indicated it's not interested in getting into a price war, dragging down the price of the treatments, but that could change if AbbVie struggles to gain traction. Gilead Sciences ' stock is a trading at all-time highs, up more than 80% over the last year on the back of a very successful launch of the company's hepatitis C drug Sovaldi. | AbbVie should have an all-oral cocktail approved shortly. The company has indicated it's not interested in getting into a price war, dragging down the price of the treatments, but that could change if AbbVie struggles to gain traction. Now here are three reasons why the stock could fall. |
27390.0 | 2014-09-04 00:00:00 UTC | Will AbbVie's $805 Million Agreement for Duvelisib Pay Off? - Analyst Blog | ABBV | https://www.nasdaq.com/articles/will-abbvies-%24805-million-agreement-for-duvelisib-pay-off-analyst-blog-2014-09-04 | nan | nan | In order to boost its pipeline, AbbVie Inc. ( ABBV ) inked a collaboration agreement with Infinity Pharmaceuticals ( INFI ) to develop and commercialize the latter's oncology candidate duvelisib (IPI-145). Infinity Pharma's shares jumped over 44% following the announcement.
The Deal in Details
AbbVie will be making an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally. The companies will also share the royalty obligation in the U.S. equally relating to duvelisib.
Outside the U.S., AbbVie will be solely responsible for the development and commercialization of duvelisib. Infinity Pharma will receive tiered double-digit royalties (23.5% to 30.5%) on net sales of duvelisib following approval.
Apart from the upfront payment, Infinity Pharma is also eligible to receive additional payments of up to $530 million on duvelisib achieving certain development, regulatory and commercial milestones. The amount includes a payment of $405 million through the first commercial sale of duvelisib.
Duvelisib is currently being developed in the phase III DUO study for the treatment of patients suffering from chronic lymphocytic leukemia (CLL) and in the phase II DYNAMO program for the treatment of indolent non-Hodgkin lymphoma (iNHL). The candidate is also under development in several other studies. As per the agreement, AbbVie and Infinity Pharma will be initiating several phase II and phase III studies on duvelisib in hematologic malignancies in the next several years.
Other Development
The second pact struck by AbbVie is a research and development (R&D) agreement with Calico Life Sciences to jointly discover and develop candidates to treat age-related diseases including neurodegeneration and cancer.
As part of the deal, both AbbVie and Calico will be funding up to $250 million each initially and may also contribute another $500 million each later. Calico will be responsible for the early R&D programs for the first five years and will continue to advance the programs through phase IIa over a ten-year period. AbbVie on the other hand will support Calico in early R&D stages and will have the option to manage late-stage development and commercial activities. The companies will be sharing costs and profits equally.
Guidance Upheld
AbbVie maintained its adjusted guidance for the third quarter and full year 2014 following the announcement of the two deals as the expenditures will be treated as special items. Third quarter earnings are still expected in the range of 77 cents to 79 cents per share. The Zacks Consensus Estimate is 77 cents. AbbVie continues to expect 2014 earnings in the range of $3.06 to $3.16 per share. The Zacks Consensus Estimate of $3.15 is on the higher end of the guidance range.
Our Take
The two agreements will significantly boost AbbVie's pipeline. Infinity Pharma's duvelisib is a great strategic fit for AbbVie's existing oncology pipeline. With AbbVie's expertise the candidate may hit the market faster. However, the question remains whether duvelisib is worth as much as $805 million?
We remind investors that AbbVie is working on strengthening its portfolio with the impending acquisition of Shire ( SHPG ). This deal will not only boost its portfolio but will also help to lower its tax rates.
AbbVie carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Allergan Inc. ( AGN ), carrying a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In order to boost its pipeline, AbbVie Inc. ( ABBV ) inked a collaboration agreement with Infinity Pharmaceuticals ( INFI ) to develop and commercialize the latter's oncology candidate duvelisib (IPI-145). The Deal in Details AbbVie will be making an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally. AbbVie on the other hand will support Calico in early R&D stages and will have the option to manage late-stage development and commercial activities. | In order to boost its pipeline, AbbVie Inc. ( ABBV ) inked a collaboration agreement with Infinity Pharmaceuticals ( INFI ) to develop and commercialize the latter's oncology candidate duvelisib (IPI-145). As per the agreement, AbbVie and Infinity Pharma will be initiating several phase II and phase III studies on duvelisib in hematologic malignancies in the next several years. Click to get this free report ALLERGAN INC (AGN): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. | In order to boost its pipeline, AbbVie Inc. ( ABBV ) inked a collaboration agreement with Infinity Pharmaceuticals ( INFI ) to develop and commercialize the latter's oncology candidate duvelisib (IPI-145). The Deal in Details AbbVie will be making an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally. Click to get this free report ALLERGAN INC (AGN): Free Stock Analysis Report SHIRE PLC-ADR (SHPG): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report INFINITY PHARMA (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. | Outside the U.S., AbbVie will be solely responsible for the development and commercialization of duvelisib. In order to boost its pipeline, AbbVie Inc. ( ABBV ) inked a collaboration agreement with Infinity Pharmaceuticals ( INFI ) to develop and commercialize the latter's oncology candidate duvelisib (IPI-145). The Deal in Details AbbVie will be making an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally. |
27391.0 | 2014-09-03 00:00:00 UTC | Sector Update: Health Care | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-2014-09-03-0 | nan | nan | Healthcare stocks turned mixed this afternoon with the NYSE Healthcare Sector Index climbing less than 0.1% and shares of healthcare companies in the S&P 500 declining about 0.6% as a group.
In company news, Cleveland BioLabs ( CBLI ) spiked Wednesday after the U.S. Food and Drug Administration agrees to accept the company's existing efficacy and safety data and proceed with a pre-emergency use authorization for its entoimod treatment for radiation exposure.
During a study using 179 non-human primates, 75% of the animals that received a single intramuscular injection of entoimod 25 hours after a high-dose, whole-body irradiation survived compared with a 27.5% survival rate in the control group.
CBLI shares were up over 47% at 59 cents each in late trade, earlier jumping to a session high of 75 cents a share. The stock has traded within a 52-week range of 33 cents to $1.80 a share, declining almost 77% in value over the past 12 months prior to today's gains.
In other sector news,
(+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones.
(-) IRMD, Discloses receiving FDA warning letter following an inspection of its facility in April requesting the company immediately cease activities resulting in misbranding of its mRidium 3860 MRI infusion pump.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In other sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. The stock has traded within a 52-week range of 33 cents to $1.80 a share, declining almost 77% in value over the past 12 months prior to today's gains. (-) IRMD, Discloses receiving FDA warning letter following an inspection of its facility in April requesting the company immediately cease activities resulting in misbranding of its mRidium 3860 MRI infusion pump. | In other sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. 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 sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. Healthcare stocks turned mixed this afternoon with the NYSE Healthcare Sector Index climbing less than 0.1% and shares of healthcare companies in the S&P 500 declining about 0.6% as a group. In company news, Cleveland BioLabs ( CBLI ) spiked Wednesday after the U.S. Food and Drug Administration agrees to accept the company's existing efficacy and safety data and proceed with a pre-emergency use authorization for its entoimod treatment for radiation exposure. | In other sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. In company news, Cleveland BioLabs ( CBLI ) spiked Wednesday after the U.S. Food and Drug Administration agrees to accept the company's existing efficacy and safety data and proceed with a pre-emergency use authorization for its entoimod treatment for radiation exposure. During a study using 179 non-human primates, 75% of the animals that received a single intramuscular injection of entoimod 25 hours after a high-dose, whole-body irradiation survived compared with a 27.5% survival rate in the control group. |
27392.0 | 2014-09-03 00:00:00 UTC | Sector Update: Health Care Stock Turn Lower; Cleveland BioLabs Lights Up After FDA Approves Radiation Treatment | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-stock-turn-lower-cleveland-biolabs-lights-after-fda-approves | nan | nan | Top Healthcare Stocks
JNJ +0.38%
PFE +0.48%
ABT +1.26%
MRK +1.20%
AMGN +0.46%
Healthcare stocks turned mixed this afternoon with the NYSE Healthcare Sector Index climbing less than 0.1% and shares of healthcare companies in the S&P 500 declining about 0.6% as a group.
In company news, Cleveland BioLabs ( CBLI ) spiked Wednesday after the U.S. Food and Drug Administration agrees to accept the company's existing efficacy and safety data and proceed with a pre-emergency use authorization for its entoimod treatment for radiation exposure.
During a study using 179 non-human primates, 75% of the animals that received a single intramuscular injection of entoimod 25 hours after a high-dose, whole-body irradiation survived compared with a 27.5% survival rate in the control group.
CBLI shares were up over 47% at 59 cents each in late trade, earlier jumping to a session high of 75 cents a share. The stock has traded within a 52-week range of 33 cents to $1.80 a share, declining almost 77% in value over the past 12 months prior to today's gains.
In other sector news,
(+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones.
(-) IRMD, Discloses receiving FDA warning letter following an inspection of its facility in April requesting the company immediately cease activities resulting in misbranding of its mRidium 3860 MRI infusion pump.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In other sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. The stock has traded within a 52-week range of 33 cents to $1.80 a share, declining almost 77% in value over the past 12 months prior to today's gains. (-) IRMD, Discloses receiving FDA warning letter following an inspection of its facility in April requesting the company immediately cease activities resulting in misbranding of its mRidium 3860 MRI infusion pump. | In other sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. 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 sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. Healthcare stocks turned mixed this afternoon with the NYSE Healthcare Sector Index climbing less than 0.1% and shares of healthcare companies in the S&P 500 declining about 0.6% as a group. In company news, Cleveland BioLabs ( CBLI ) spiked Wednesday after the U.S. Food and Drug Administration agrees to accept the company's existing efficacy and safety data and proceed with a pre-emergency use authorization for its entoimod treatment for radiation exposure. | In other sector news, (+) INFI, Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. Healthcare stocks turned mixed this afternoon with the NYSE Healthcare Sector Index climbing less than 0.1% and shares of healthcare companies in the S&P 500 declining about 0.6% as a group. In company news, Cleveland BioLabs ( CBLI ) spiked Wednesday after the U.S. Food and Drug Administration agrees to accept the company's existing efficacy and safety data and proceed with a pre-emergency use authorization for its entoimod treatment for radiation exposure. |
27393.0 | 2014-09-03 00:00:00 UTC | 5 Things Biogen Idec Inc's Management Wants You to Know | ABBV | https://www.nasdaq.com/articles/5-things-biogen-idec-incs-management-wants-you-know-2014-09-03 | nan | nan | Biogen Idec held a conference call to go along with the release of second quarter earnings. Here are five things that management said on the call about Biogen Idec's ongoing prospects (quotes courtesy of S&P Capital IQ ).
When Biogen Idec launched its oral multiple sclerosis drug Tecfidera, the worry was that it would steal patients away from Biogen Idec's Avonex and Tysabri, which both have to be injected. Unless the profits on Tecfidera are substantially higher than Avonex and Tysabri, switching among Biogen Idec products isn't going to have much of an effect on earnings.
Fortunately the number of patients that Tecfidera is stealing away from other multiple sclerosis drugs is enough to keep the total number of multiple sclerosis patients Biogen Idec is treating on the rise. Biogen Idec recently launched Tecfidera in Germany and the launch appears to be on pace to capture the same market share as the U.S. despite the delayed start.
In June, Biogen Idec and partner AbbVie said their multiple sclerosis drug daclizumab beat Rebif, which is sold by EMD Serono and Pfizer . Daclizumab produced a 45% reduction in annualized relapse rate compared to Rebif.
Not only did it beat the competition, but daclizumab only has to be injected once a month, making it an attractive option even compared to daily pills. It seems we'll get to see if Biogen Idec can repeat its ability to not cannibalize sales of its current drugs.
That's about $283 per share for those that don't have a calculator. Not bad considering shares are more than 20% higher at this point. It'll be interesting to see if Biogen Idec continues to repurchase shares at the increased price. Shares are now trading at about 26 times expected non-GAAP earnings for this year. That's not exactly cheap, but Biogen Idec clearly has growth potential; revenue is expected to grow about 40% year over year, and while there's a one-time benefit in there that might make it hard to duplicate the same growth in 2015, Biogen Idec is clearly still a growth story.
That's a healthy pile of cash that Biogen Idec could use to repurchase shares, especially if they go on sale, or acquire drugs through licensing or purchasing entire companies. Given its growth potential, I don't think Biogen Idec is ready for a dividend quite yet.
And kudos to Clancy for disclosing how much of the cash is stored overseas and can't be brought back into the U.S. without paying additional tax on it. Storing cash overseas limits what Biogen Idec can do with it. The best use would be an acquisition or licensing deal with a foreign company.
Speaking of foreign acquisitions, we end with a comment on the potential for Biogen Idec to do an inversion to lower the company's tax rate...
Tax inversions are often set up as mergers or reverse acquisitions with the smaller foreign company buying the larger U.S. company, which can be a taxable event for shareholders. For Biogen Idec's shareholders that could be a substantial tax bill; shares of the biotech are up about 60% over the last year and nearly 600% over the last five years.
Lowering taxes would benefit shareholders through higher earnings, but it may take awhile for the stock appreciation from higher earnings to make up for the capital gains bill from Uncle Sam.
It's nice to see the company taking shareholders into account as part of the decision of whether to invert.
Leaked: 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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article 5 Things Biogen Idec Inc's Management Wants You to Know originally appeared on Fool.com.
Brian Orelli 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 - 2014 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 June, Biogen Idec and partner AbbVie said their multiple sclerosis drug daclizumab beat Rebif, which is sold by EMD Serono and Pfizer . That's a healthy pile of cash that Biogen Idec could use to repurchase shares, especially if they go on sale, or acquire drugs through licensing or purchasing entire companies. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. | In June, Biogen Idec and partner AbbVie said their multiple sclerosis drug daclizumab beat Rebif, which is sold by EMD Serono and Pfizer . Unless the profits on Tecfidera are substantially higher than Avonex and Tysabri, switching among Biogen Idec products isn't going to have much of an effect on earnings. Speaking of foreign acquisitions, we end with a comment on the potential for Biogen Idec to do an inversion to lower the company's tax rate... Tax inversions are often set up as mergers or reverse acquisitions with the smaller foreign company buying the larger U.S. company, which can be a taxable event for shareholders. | In June, Biogen Idec and partner AbbVie said their multiple sclerosis drug daclizumab beat Rebif, which is sold by EMD Serono and Pfizer . When Biogen Idec launched its oral multiple sclerosis drug Tecfidera, the worry was that it would steal patients away from Biogen Idec's Avonex and Tysabri, which both have to be injected. That's not exactly cheap, but Biogen Idec clearly has growth potential; revenue is expected to grow about 40% year over year, and while there's a one-time benefit in there that might make it hard to duplicate the same growth in 2015, Biogen Idec is clearly still a growth story. | In June, Biogen Idec and partner AbbVie said their multiple sclerosis drug daclizumab beat Rebif, which is sold by EMD Serono and Pfizer . That's a healthy pile of cash that Biogen Idec could use to repurchase shares, especially if they go on sale, or acquire drugs through licensing or purchasing entire companies. Speaking of foreign acquisitions, we end with a comment on the potential for Biogen Idec to do an inversion to lower the company's tax rate... Tax inversions are often set up as mergers or reverse acquisitions with the smaller foreign company buying the larger U.S. company, which can be a taxable event for shareholders. |
27394.0 | 2014-09-03 00:00:00 UTC | Futures Stronger on Ukraine Cease-Fire | ABBV | https://www.nasdaq.com/articles/futures-stronger-ukraine-cease-fire-2014-09-03 | nan | nan | Stock futures are sharply higher into the open after news of a possible Ukraine cease-fire fueled today's gains across global equity markets. Negotiations between Russian President Putin and Ukraine President Poroshenko resulted in a cease-fire in the eastern Ukraine Donbass region, triggering a modest rally in European equities that spilled into U.S. pre-market trading .
Wall Street is also encouraged by the likelihood for market-friendly economic data on factory orders, expected to post a double-digit gain in July, as well as the current Beige Book of regional economic conditions. While economic indicators remain bullish, the data has yet to be compelling enough to move the current timetable for a rate hike from Q2 2015, a scenario which continues to underpin equities.
In Europe, stocks were solidly on the plus side despite bearish EU-zone data on the services industry and another contraction in monthly retail sales. But despite the data overseas, financial markets were all encouraged by geo-political developments that eased investors' worries concerning another round of economic sanctions against Russia.
-Dow Jones Industrial up 0.40%
-S&P 500 futures up 0.36%
-Nasdaq 100 futures up 0.34%
SENTIMENT
Nikkei up 0.38%
Hang Seng up 2.30%
Shanghai Composite up 1.00%
FTSE-100 up 0.71%
DAX-30 up 1.22%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: Higher
(+) Chip stocks: Higher
(+) Software stocks: Higher
(+) Hardware stocks: Higher
(+) Internet stocks: Higher
(+) Drug stocks: Higher
(+) Financial stocks: Higher
(+) Retail stocks: Mixed
(+) Industrial stocks: Higher
(-) Airlines: Lower
(+) Autos: Higher
UPSIDE MOVERS:
(+) ISNS (+36.28%) Continues to rally on demand for law-enforcement body cameras
(+) INFI (+38.92%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment
(+) CBLI (+41.79%) Has enough data to apply for pre-emergency use authorization for radiation treatment
DOWNSIDE MOVERS:
(-) CPLP (-6.48%) Plans to offer 15 mln common units representing limited partnership interests in a public offering.
(-) HELE (-10.11%) FY 2015 earnings and revenue forecasts are well-below street estimates
(-) GWRE (-6.15%) Reported better-than-expected Q4 results, but issued weak FY 2015 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. | (+) ISNS (+36.28%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+38.92%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+41.79%) Has enough data to apply for pre-emergency use authorization for radiation treatment Stock futures are sharply higher into the open after news of a possible Ukraine cease-fire fueled today's gains across global equity markets. While economic indicators remain bullish, the data has yet to be compelling enough to move the current timetable for a rate hike from Q2 2015, a scenario which continues to underpin equities. | (+) ISNS (+36.28%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+38.92%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+41.79%) Has enough data to apply for pre-emergency use authorization for radiation treatment (+) Large cap tech: Higher (+) Chip stocks: Higher (+) Software stocks: Higher (+) Hardware stocks: Higher (+) Internet stocks: Higher (+) Drug stocks: Higher (+) Financial stocks: Higher (+) Retail stocks: Mixed (+) Industrial stocks: Higher (-) Airlines: Lower (+) Autos: Higher (-) HELE (-10.11%) FY 2015 earnings and revenue forecasts are well-below street estimates (-) GWRE (-6.15%) Reported better-than-expected Q4 results, but issued weak FY 2015 guidance The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (+) ISNS (+36.28%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+38.92%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+41.79%) Has enough data to apply for pre-emergency use authorization for radiation treatment (+) Large cap tech: Higher (+) Chip stocks: Higher (+) Software stocks: Higher (+) Hardware stocks: Higher (+) Internet stocks: Higher (+) Drug stocks: Higher (+) Financial stocks: Higher (+) Retail stocks: Mixed (+) Industrial stocks: Higher (-) Airlines: Lower (+) Autos: Higher (-) CPLP (-6.48%) Plans to offer 15 mln common units representing limited partnership interests in a public offering. | (+) ISNS (+36.28%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+38.92%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+41.79%) Has enough data to apply for pre-emergency use authorization for radiation treatment Stock futures are sharply higher into the open after news of a possible Ukraine cease-fire fueled today's gains across global equity markets. Wall Street is also encouraged by the likelihood for market-friendly economic data on factory orders, expected to post a double-digit gain in July, as well as the current Beige Book of regional economic conditions. |
27395.0 | 2014-09-03 00:00:00 UTC | Sector Update: Health Care Stocks Mixed; Tetraphase Pharmaceuticals Rallies on Preliminary Trial Data for Would-Be Treatment for Urinary Tract Infections | ABBV | https://www.nasdaq.com/articles/sector-update-health-care-stocks-mixed-tetraphase-pharmaceuticals-rallies-preliminary | nan | nan | Top Healthcare Stocks
JNJ +0.38%
PFE -0.07%
ABT +0.75%
MRK +1.34%
AMGN -0.04%
Healthcare stocks were higher today with the NYSE Healthcare Sector Index climbing about 0.5% and shares of healthcare companies in the S&P 500 advancing about 0.2% as a group.
In company news, Tetraphase Pharmaceuticals ( TTPH ) rallied Wednesday, with shares of the clinical-stage biotech climbing as much as 16.5% today after the company reported positive top-line results from Phase III testing of its prospective treatment for urinary tract infections.
The initial portion of the current study sought to measure the efficacy and safety of intravenous and oral formulations of the company's eravacycline drug candidate compared with levofloxacin, a widely used antibiotic. According to the company, data from the lead-in portion of the trial support advancing to its pivotal stage.
Of the 40 patients in the IV-to-oral arm receiving IV injections of eravacycline followed by 200 milligrams of the drug orally twice daily, 28 - or 70.8% - met the primary endpoint of the trial while another 26 of the patients receiving 250 milligrams met the primary endpoint compared to just 21 in the levoflaxacin arm.
TTPH shares were ahead nearly 13.2% at $14.80 each this afternoon, climbing to a session high of $15.24 a share earlier today. The stock has traded within a 52-week range of $8.01 to $17.74 a share, rising just over 50% during the past 12 months through yesterday's close.
In other sector news,
(+) INFI, (+48.4%) Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones.
(-) IRMD, (-37.6%) Discloses receiving FDA warning letter following an inspection of its facility in April requesting the company immediately cease activities resulting in misbranding of its mRidium 3860 MRI infusion pump.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In other sector news, (+) INFI, (+48.4%) Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. The initial portion of the current study sought to measure the efficacy and safety of intravenous and oral formulations of the company's eravacycline drug candidate compared with levofloxacin, a widely used antibiotic. Of the 40 patients in the IV-to-oral arm receiving IV injections of eravacycline followed by 200 milligrams of the drug orally twice daily, 28 - or 70.8% - met the primary endpoint of the trial while another 26 of the patients receiving 250 milligrams met the primary endpoint compared to just 21 in the levoflaxacin arm. | In other sector news, (+) INFI, (+48.4%) Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. Healthcare stocks were higher today with the NYSE Healthcare Sector Index climbing about 0.5% and shares of healthcare companies in the S&P 500 advancing about 0.2% as a group. Of the 40 patients in the IV-to-oral arm receiving IV injections of eravacycline followed by 200 milligrams of the drug orally twice daily, 28 - or 70.8% - met the primary endpoint of the trial while another 26 of the patients receiving 250 milligrams met the primary endpoint compared to just 21 in the levoflaxacin arm. | In other sector news, (+) INFI, (+48.4%) Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. Healthcare stocks were higher today with the NYSE Healthcare Sector Index climbing about 0.5% and shares of healthcare companies in the S&P 500 advancing about 0.2% as a group. In company news, Tetraphase Pharmaceuticals ( TTPH ) rallied Wednesday, with shares of the clinical-stage biotech climbing as much as 16.5% today after the company reported positive top-line results from Phase III testing of its prospective treatment for urinary tract infections. | In other sector news, (+) INFI, (+48.4%) Announces collaboration with AbbVie ( ABBV ) to commercialize its Duvelisib cancer treatment, with ABBV paying $275 mln for global licensing rights and could eventually pay up to $530 mln more as the drug reaches various milestones. Top Healthcare Stocks The initial portion of the current study sought to measure the efficacy and safety of intravenous and oral formulations of the company's eravacycline drug candidate compared with levofloxacin, a widely used antibiotic. |
27396.0 | 2014-09-03 00:00:00 UTC | Why Infinity Pharmaceuticals Inc. Stock Skyrocketed | ABBV | https://www.nasdaq.com/articles/why-infinity-pharmaceuticals-inc-stock-skyrocketed-2014-09-03 | 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 Infinity Pharmaceuticals , a clinical-stage biopharmaceutical company focused on developing therapies that tackle difficult-to-treat diseases like cancer, skyrocketed as much as 55% after announcing a collaborative licensing agreement for its lead compound, IPI-145, with AbbVie .
So what: Under the terms of the agreement for IPI-145, an oral inhibitor of phosphoinositide-3-kinase that's being tested as a treatment for a number of blood cancers, as well as rheumatoid arthritis and select cases of asthma, AbbVie will pay Infinity Pharmaceuticals $275 million upfront and will be eligible to receive an additional $530 million in development, regulatory, and commercialization milestones. Specifically, $405 million of this $530 can be earned leading up to and including the first commercial sale of the drug.
Within the United States Infinity and AbbVie will split profits right down the middle, while in ex. U.S. countries Infinity will be eligible to receive double-digit royalties (23.5% to 30.5%) on net product sales. The collaboration will also see the two companies essentially splitting development, marketing, and commercialization duties.
Now what: On paper this looks like the perfect symbiotic partnership. Infinity, being wholly clinical-stage, is burning through what cash it currently has on its books. An immediate $275 million infusion is going to sustain Infinity's research and development program for a long time, and it removes the burden of any impending cash crunches. For AbbVie, the deal gives the company another way to broaden its oncology portfolio and provides another stepping stone for the eventual transition in a few years when the world's current best-selling drug, Humira, loses patent exclusivity.
Perhaps my only concern here is that AbbVie is giving Infinity an awful lot of front-end incentives, including a whopping $275 million upfront payment. Although most of the clinical-stage data surrounding IPI-145 to date has been positive, it's also been early stage in nature (i.e., phase 1 studies). Though jumping in early before much of IPI-145's late-stage data is out could net AbbVie a bigger chunk of overseas revenue than if it waited, it's also a much riskier proposition for the company.
IPI-145 may hold plenty of potential for Infinity, but relative to this revolutionary new technology it could wind up being left in the dust!
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 will 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. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .
The article Why Infinity Pharmaceuticals Inc. Stock Skyrocketed originally appeared on Fool.com.
Sean Williamshas no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy .
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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. | What: Shares of Infinity Pharmaceuticals , a clinical-stage biopharmaceutical company focused on developing therapies that tackle difficult-to-treat diseases like cancer, skyrocketed as much as 55% after announcing a collaborative licensing agreement for its lead compound, IPI-145, with AbbVie . For AbbVie, the deal gives the company another way to broaden its oncology portfolio and provides another stepping stone for the eventual transition in a few years when the world's current best-selling drug, Humira, loses patent exclusivity. So what: Under the terms of the agreement for IPI-145, an oral inhibitor of phosphoinositide-3-kinase that's being tested as a treatment for a number of blood cancers, as well as rheumatoid arthritis and select cases of asthma, AbbVie will pay Infinity Pharmaceuticals $275 million upfront and will be eligible to receive an additional $530 million in development, regulatory, and commercialization milestones. | So what: Under the terms of the agreement for IPI-145, an oral inhibitor of phosphoinositide-3-kinase that's being tested as a treatment for a number of blood cancers, as well as rheumatoid arthritis and select cases of asthma, AbbVie will pay Infinity Pharmaceuticals $275 million upfront and will be eligible to receive an additional $530 million in development, regulatory, and commercialization milestones. What: Shares of Infinity Pharmaceuticals , a clinical-stage biopharmaceutical company focused on developing therapies that tackle difficult-to-treat diseases like cancer, skyrocketed as much as 55% after announcing a collaborative licensing agreement for its lead compound, IPI-145, with AbbVie . Within the United States Infinity and AbbVie will split profits right down the middle, while in ex. | What: Shares of Infinity Pharmaceuticals , a clinical-stage biopharmaceutical company focused on developing therapies that tackle difficult-to-treat diseases like cancer, skyrocketed as much as 55% after announcing a collaborative licensing agreement for its lead compound, IPI-145, with AbbVie . So what: Under the terms of the agreement for IPI-145, an oral inhibitor of phosphoinositide-3-kinase that's being tested as a treatment for a number of blood cancers, as well as rheumatoid arthritis and select cases of asthma, AbbVie will pay Infinity Pharmaceuticals $275 million upfront and will be eligible to receive an additional $530 million in development, regulatory, and commercialization milestones. Within the United States Infinity and AbbVie will split profits right down the middle, while in ex. | So what: Under the terms of the agreement for IPI-145, an oral inhibitor of phosphoinositide-3-kinase that's being tested as a treatment for a number of blood cancers, as well as rheumatoid arthritis and select cases of asthma, AbbVie will pay Infinity Pharmaceuticals $275 million upfront and will be eligible to receive an additional $530 million in development, regulatory, and commercialization milestones. What: Shares of Infinity Pharmaceuticals , a clinical-stage biopharmaceutical company focused on developing therapies that tackle difficult-to-treat diseases like cancer, skyrocketed as much as 55% after announcing a collaborative licensing agreement for its lead compound, IPI-145, with AbbVie . Within the United States Infinity and AbbVie will split profits right down the middle, while in ex. |
27397.0 | 2014-09-03 00:00:00 UTC | Closing Update: Stocks Retreat Off Record Levels as Russian Cease-Fire Raises Doubts, Beige Book Disappoints, Apple Flops | ABBV | https://www.nasdaq.com/articles/closing-update-stocks-retreat-record-levels-russian-cease-fire-raises-doubts-beige-book | nan | nan | Stocks surrendered most of Wednesday's early gains tied to a possible cease-fire in Ukraine after a disappointing Federal Reserve Beige Book and doubts surrounding the sincerity of Moskow's agreement with Kiev caused equities to drift lower for most of the afternoon. Although the Nasdaq Composite touched another record high at the open, the tech-heavy index underperformed its counterparts largely due to heavy losses in Apple ( AAPL ). The iPhone maker, which continues to be plagued by a recent security breach, lost more than 4% in value in the wake of today's launch of Samsung's Gear S at the Samsung Unpacked event in Berlin.
After the open, equities began to drift off their highs in the wake of a miss in July factory orders. Although the +10.5% core was close to +10.9% estimates, the data was again heavily skewed by transportation orders. Ex-transportation, factory orders were down 0.08%, giving Wall Street an excuse to book profits from opening levels. The retreat was amplified as doubts concerning the cease-fire between Moscow and Kiev materialized when Ukraine accused Putin of using a cease-fire as little more than a veiled attempt to avoid further sanctions ahead of the NATO meeting on Thursday.
The Beige Book was largely a non-event; the Federal Reserve continues to label economic growth moderate to modest, with most regions reporting growth in real estate, consumer spending and automobile sales. Skilled workers are still in shortage in certain districts, while manufacturing was mixed. The release exacerbated the move lower in equities as it did not provide any evidence of more robust economic growth.
Finally, global equities remain underpinned by tomorrow's trifecta of central bank activity. On Thursday, the European Central Bank, Bank of England and Bank of Japan will conduct policy meetings. The ECB and BOJ are expected to introduce additional methods to stimulate their respective economies using tools such quantitative easing similar to that used by the Federal Reserve.
Here's where the markets stand at the close:
US MARKETS
Dow Jones Industrial Index was up 10 points (+0.1%) at 17,078
S&P 500 was down 1.5 point (-0.1%) at 2,000
Nasdaq Composite Index was down 25 points (-0.6%) at 4,572
GLOBAL SENTIMENT
FTSE 100 was up 0.65%
Nikkei 225 was up 0.38%
Hang Seng Index was up 2.30%
Shanghai China Composite Index was up 1.00%
UPSIDE MOVERS
(+) ISNS (+16.19%) Continues to rally on demand for law-enforcement body cameras
(+) INFI (+44.05%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment
(+) CBLI (+39.55%) Has enough data to apply for pre-emergency use authorization for radiation treatment
DOWNSIDE MOVERS
(-) HELE (-10.40%) FY 2015 earnings and revenue forecasts are well-below street estimates
(-) AAPL (-4.22%) Samsung launched its new Samsung Gear device at event in Berlin
(-) VNCE (-11.54%) Reports Q2 gain, raises FY14 adjusted EPS 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. | (+) ISNS (+16.19%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+44.05%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+39.55%) Has enough data to apply for pre-emergency use authorization for radiation treatment Stocks surrendered most of Wednesday's early gains tied to a possible cease-fire in Ukraine after a disappointing Federal Reserve Beige Book and doubts surrounding the sincerity of Moskow's agreement with Kiev caused equities to drift lower for most of the afternoon. Although the Nasdaq Composite touched another record high at the open, the tech-heavy index underperformed its counterparts largely due to heavy losses in Apple ( AAPL ). | (+) ISNS (+16.19%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+44.05%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+39.55%) Has enough data to apply for pre-emergency use authorization for radiation treatment Stocks surrendered most of Wednesday's early gains tied to a possible cease-fire in Ukraine after a disappointing Federal Reserve Beige Book and doubts surrounding the sincerity of Moskow's agreement with Kiev caused equities to drift lower for most of the afternoon. The Beige Book was largely a non-event; the Federal Reserve continues to label economic growth moderate to modest, with most regions reporting growth in real estate, consumer spending and automobile sales. | (+) ISNS (+16.19%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+44.05%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+39.55%) Has enough data to apply for pre-emergency use authorization for radiation treatment Stocks surrendered most of Wednesday's early gains tied to a possible cease-fire in Ukraine after a disappointing Federal Reserve Beige Book and doubts surrounding the sincerity of Moskow's agreement with Kiev caused equities to drift lower for most of the afternoon. The Beige Book was largely a non-event; the Federal Reserve continues to label economic growth moderate to modest, with most regions reporting growth in real estate, consumer spending and automobile sales. | (+) ISNS (+16.19%) Continues to rally on demand for law-enforcement body cameras (+) INFI (+44.05%) Will collaborate with AbbVie ( ABBV ) on commercialization of Duvelisib cancer treatment (+) CBLI (+39.55%) Has enough data to apply for pre-emergency use authorization for radiation treatment Stocks surrendered most of Wednesday's early gains tied to a possible cease-fire in Ukraine after a disappointing Federal Reserve Beige Book and doubts surrounding the sincerity of Moskow's agreement with Kiev caused equities to drift lower for most of the afternoon. Although the Nasdaq Composite touched another record high at the open, the tech-heavy index underperformed its counterparts largely due to heavy losses in Apple ( AAPL ). |
27398.0 | 2014-09-03 00:00:00 UTC | Infinity Pharma (INFI) Shares Skyrocket on Cancer Drug Partnership - Stocks in the News | ABBV | https://www.nasdaq.com/articles/infinity-pharma-infi-shares-skyrocket-cancer-drug-partnership-stocks-news-2014-09-03 | nan | nan | Infinity Pharmaceuticals ( INFI ) just entered into a global collaboration with AbbVie ( ABBV ) to develop and commercialize IPI-145 (duvelisib), a drug designed for the treatment of patients with cancer such as blood cancer.
Financial News
The collaboration will consist of an upfront payment from AbbVie in the amount of $275 million to Infinity and potentially up to $530 million conditional on milestone breakthroughs through development, approval, and launch of the drug.
Domestically, the companies will collaborate together to commercialize duvelisib and share profits equally. Outside of the U.S., AbbVie will be responsible to all commercialization and will pay Infinity royalties on net sales ranging from 23.5%-30.5%.
The recent news drove Infinity Pharmaceutical stock up and is currently trading at $15.73/share, up about 44% and within striking distance of its 52 week high. AbbVie on the other hand is not showing as much activity and has volume of 7.5 million shares and AbbVie shares are currently at $55.51/share and up .8% for the day.
Purpose of IPI-145 (Duvelisib)
The medical name (IPI-145) is an oral inhibitor of phosphoinositide-3-kinase (PI3K)-delta and PI3K-gamma for the treatment of patients with cancer. The drug is in a phase-two trial for indolent non-Hodgkin lymphoma (iNHL) and a phase-three trial for chronic lymphocytic (CLL).
According to the FDA, phase I II & III take about 6-11 years to accomplish and after that, the new Drug application, will take 0.6 to 2 years, and then phase IV, post market surveillance will take 11 to 14 years. According to this time line, on average, it will take about five years max to commercialize Duvelisib for both purposes of iNHL and CLL.
Challenges
Infinity Pharmaceuticals will also have the challenge of trying to market themselves better than their tough competition, most notably Gilead Sciences ( GILD ) Zydelig (PI3K inhibitor) and Pharmacyclics ( PCYC ) Imbruvica, both of which are already approved. Zydelig of Gilead Sciences was approved for CLL in July and labeled "black box", the strongest possible FDA safety warning, due to its connection to serious toxicities of the liver.
Before entering today's partnership with Infinity Pharma for duvelisib, AbbVie's lead blood cancer drug candidate was ABT-199, which displayed tremendous efficacy in mid-stage studies but has also been dogged with safety concerns.
Bottom Line
While this recent collaboration is exciting news for a possible drug to treat blood cancer, the underlying efficiency of the application process should be of concern for most investors. While financing has been accomplished; research, testing, and approval are inevitable challenges every pharmaceutical company encounters, and investors should be looking to see how Infinity Pharmaceuticals handles those challenges.
We currently have Infinity as a Zacks rank #3(hold) and the pharmaceutical company has beat earnings estimates by an average of 4.56% over the past year. We currently have Abbvie Inc. as a Zacks rank #3(hold) though the pharma company has beat earnings estimates by an average of 4.43% in the past 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. | Before entering today's partnership with Infinity Pharma for duvelisib, AbbVie's lead blood cancer drug candidate was ABT-199, which displayed tremendous efficacy in mid-stage studies but has also been dogged with safety concerns. Infinity Pharmaceuticals ( INFI ) just entered into a global collaboration with AbbVie ( ABBV ) to develop and commercialize IPI-145 (duvelisib), a drug designed for the treatment of patients with cancer such as blood cancer. Financial News The collaboration will consist of an upfront payment from AbbVie in the amount of $275 million to Infinity and potentially up to $530 million conditional on milestone breakthroughs through development, approval, and launch of the drug. | Infinity Pharmaceuticals ( INFI ) just entered into a global collaboration with AbbVie ( ABBV ) to develop and commercialize IPI-145 (duvelisib), a drug designed for the treatment of patients with cancer such as blood cancer. Click to get this free report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. Financial News The collaboration will consist of an upfront payment from AbbVie in the amount of $275 million to Infinity and potentially up to $530 million conditional on milestone breakthroughs through development, approval, and launch of the drug. | Infinity Pharmaceuticals ( INFI ) just entered into a global collaboration with AbbVie ( ABBV ) to develop and commercialize IPI-145 (duvelisib), a drug designed for the treatment of patients with cancer such as blood cancer. Before entering today's partnership with Infinity Pharma for duvelisib, AbbVie's lead blood cancer drug candidate was ABT-199, which displayed tremendous efficacy in mid-stage studies but has also been dogged with safety concerns. Click to get this free report INFINITY PHARMA (INFI): Free Stock Analysis Report ABBVIE INC (ABBV): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report PHARMACYCLICS (PCYC): Free Stock Analysis Report To read this article on Zacks.com click here. | Infinity Pharmaceuticals ( INFI ) just entered into a global collaboration with AbbVie ( ABBV ) to develop and commercialize IPI-145 (duvelisib), a drug designed for the treatment of patients with cancer such as blood cancer. Financial News The collaboration will consist of an upfront payment from AbbVie in the amount of $275 million to Infinity and potentially up to $530 million conditional on milestone breakthroughs through development, approval, and launch of the drug. Outside of the U.S., AbbVie will be responsible to all commercialization and will pay Infinity royalties on net sales ranging from 23.5%-30.5%. |
27399.0 | 2014-09-02 00:00:00 UTC | 3 Reasons Eli Lilly & Co.'s Stock Could Rise | ABBV | https://www.nasdaq.com/articles/3-reasons-eli-lilly-cos-stock-could-rise-2014-09-02 | nan | nan | Eli Lilly & Co. has faced some tough times with the loss of patent protection on a handful of its best-selling products. Its recent financial performance, with earnings tumbling 38% in one year, could scare away any investor. A closer look, though, suggests that Lilly still has a lot going for it. Anticipating these troubles, Lilly has set itself up for a turnaround with big opportunities in diabetes, animal health, and oncology. Let's dig into those opportunities and how they can help drive the business and the stock in the future. Remember, though, as with any investment, Lilly's turnaround will not come without risk, and sound execution of the strategy laid forth by management will be key.
Big markets, big opportunities
Eli Lilly's late stage pipeline is stocked with eight phase 3 programs targeting markets as massive as diabetes, oncology, and autoimmune disorders.
In diabetes, Lilly already boasts one of the best-selling mealtime insulins in Humalog, which brought in $2.6 billion in 2013. Humalog will now be joined by Jardiance, which was recently approved by the FDA as a SGLT-2 inhibitor to improve glycemic control in patients with type 2 diabetes. The FDA is also reviewing the application for dulaglutide, Lilly's GLP-1 agonist that performed just as well as Novartis ' Victoza in a phase 3 trial but has a more convenient once-weekly dosing schedule. Those products will help Lilly gain additional share in a market affecting at least 29 million Americans.
Oncology is equally as lucrative a market, and Lilly's newly approved Cyramza could carve out a space in the battle against gastric cancer. Approved in April, Cyramza is the first FDA-approved drug for the treatment of patients with advanced gastric cancer with unsatisfactory responses to chemotherapy. While that presents an important market for Lilly, greater opportunity for growth exists in label expansion. We learned earlier this year that Cyramza improved overall survival in patients with non-small-cell lung cancer and will likely learn its effects in patients with colorectal cancer by year's end.
Perhaps Lilly's most exciting recent result was the success of autoimmune drug ixekizumab in the treatment of plaque psoriasis. Psoriasis and other related autoimmune disorders provide the market for some of the world's greatest selling drugs, including TNF-alpha inhibitors Enbrel from Amgen, Humira from Abbvie , and Remicade from Johnson & Johnson , which, combined, brought in $21.8 billion in 2013. Like other members of the new class of IL-17 inhibitors, Lilly has now presented evidence that ixekizumab is more effective at treating psoriasis than Enbrel. Beyond psoriasis, Lilly is now also testing ixekizumab in other indications for which TNF-alpha inhibitors are indicated, such as psoriatic and rheumatoid arthritis.
Improving health of Elanco animal health
Lilly's Elanco animal health unit appears to be a bright spot in the company's portfolio. Coming off a 2013 of 6% revenue growth, Elanco posted 11% revenue growth in the most recent quarter. While that accelerating growth is important, it was overshadowed by decreasing margins and a 7% decline in segment profits.
Looking for a second boost to revenue and any opportunity to make the segment more profitable, Lilly recently made an uncharacteristically large acquisition, purchasing Novartis' Animal Health unit for $5.4 billion. Once made official in 2015, the acquisition will send Elanco toward the top of the animal health industry behind only Pfizer spinoff Zoetis . With $1.1 billion in revenue in 2013, Novartis Animal Health will instantly boost segment revenue by 50%, while enabling an estimated 10% reduction in combined operating expense.
The secondary benefits are even more appealing. Novartis Animal Health will bring a new and diverse set of vaccines and anti-parasite medications to expand Elanco's portfolio. More importantly, the deal will give Elanco more access to emerging markets where their products can support growing dairy and aquaculture industries.
Margin expansion
The loss of revenue from Lilly's blockbusters has been catastrophic, but the financial effects were amplified on their way to the bottom line. As sales volume decreases, management has been forced to refocus its sales and administrative cost structure. It has also had to ramp up R&D spending as a percentage of revenue to retool its pipeline with late-stage drug candidates to replace lost revenue. Combined, the impact on operating income has been more substantial than the decline in the top line would suggest.
In its most recent quarter, Lilly posted operating expenses at 58% of revenue, or an 18% operating margin. But in its conference call, CFO Derica Rice reaffirmed management's commitment to attaining operating expenses of 48%-50% of revenue by 2019. All else being equal, those cost control measures have the potential to raise operating margins to 26%, much closer to the TTM operating margins of industry peers like Johnson & Johnson (27%) and Pfizer (32%), and boost operating income by a hefty 44%.
Returning to growth
With a combination of pipeline potential, strategic expansion, and cost controls, Eli Lilly has set itself up with opportunities to right the ship in 2015 and beyond. An investment in Lilly is an endorsement of the turnaround strategy, which will require management to execute on multiple fronts. If you think the company can knock down the strategic pins it has arranged for itself, then it is likely a return to bottom-line growth can carry the stock higher. I believe some of these goals are obtainable, but the confluence of events necessary to make Eli Lilly a winning investment are less than certain.
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The article 3 Reasons Eli Lilly & Co.'s Stock Could Rise originally appeared on Fool.com.
Seth Robey owns shares of Amgen. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Psoriasis and other related autoimmune disorders provide the market for some of the world's greatest selling drugs, including TNF-alpha inhibitors Enbrel from Amgen, Humira from Abbvie , and Remicade from Johnson & Johnson , which, combined, brought in $21.8 billion in 2013. The FDA is also reviewing the application for dulaglutide, Lilly's GLP-1 agonist that performed just as well as Novartis ' Victoza in a phase 3 trial but has a more convenient once-weekly dosing schedule. Looking for a second boost to revenue and any opportunity to make the segment more profitable, Lilly recently made an uncharacteristically large acquisition, purchasing Novartis' Animal Health unit for $5.4 billion. | Psoriasis and other related autoimmune disorders provide the market for some of the world's greatest selling drugs, including TNF-alpha inhibitors Enbrel from Amgen, Humira from Abbvie , and Remicade from Johnson & Johnson , which, combined, brought in $21.8 billion in 2013. Improving health of Elanco animal health Lilly's Elanco animal health unit appears to be a bright spot in the company's portfolio. Looking for a second boost to revenue and any opportunity to make the segment more profitable, Lilly recently made an uncharacteristically large acquisition, purchasing Novartis' Animal Health unit for $5.4 billion. | Psoriasis and other related autoimmune disorders provide the market for some of the world's greatest selling drugs, including TNF-alpha inhibitors Enbrel from Amgen, Humira from Abbvie , and Remicade from Johnson & Johnson , which, combined, brought in $21.8 billion in 2013. Big markets, big opportunities Eli Lilly's late stage pipeline is stocked with eight phase 3 programs targeting markets as massive as diabetes, oncology, and autoimmune disorders. Improving health of Elanco animal health Lilly's Elanco animal health unit appears to be a bright spot in the company's portfolio. | Psoriasis and other related autoimmune disorders provide the market for some of the world's greatest selling drugs, including TNF-alpha inhibitors Enbrel from Amgen, Humira from Abbvie , and Remicade from Johnson & Johnson , which, combined, brought in $21.8 billion in 2013. Coming off a 2013 of 6% revenue growth, Elanco posted 11% revenue growth in the most recent quarter. With $1.1 billion in revenue in 2013, Novartis Animal Health will instantly boost segment revenue by 50%, while enabling an estimated 10% reduction in combined operating expense. |
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