Unnamed: 0 stringlengths 3 8 | Date stringlengths 23 23 | Article_title stringlengths 1 250 | Stock_symbol stringlengths 1 5 | Url stringlengths 44 135 | Publisher stringclasses 1 value | Author stringclasses 1 value | Article stringlengths 1 343k | Lsa_summary stringlengths 3 53.9k | Luhn_summary stringlengths 1 53.9k | Textrank_summary stringlengths 1 53.9k | Lexrank_summary stringlengths 1 53.9k |
|---|---|---|---|---|---|---|---|---|---|---|---|
34300.0 | 2013-02-25 00:00:00 UTC | Abbott Explores FISH Technology - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbott-explores-fish-technology-analyst-blog-2013-02-25 | nan | nan | Abbott Labs ( ABT ) recently announced its collaboration with Johnson & Johnson's ( JNJ ) Janssen Biotech, Inc. and Pharmacyclics, Inc. to explore Abbott's proprietary FISH (fluorescence in situ hybridization) technology for further use.
Abbott's FISH technology will be primarily investigated for developing a molecular companion diagnostic test.
The prime aim of this diagnostic test will be to identify patients with a genetic subtype of chronic lymphocytic leukemia (CLL).
FISH technology can identify whether excessive or scarce copies of a particular gene are present in the cells. It can also detect whether certain genes have rearrangements that activate disease progression. It is particularly useful for identifying genetic markers in solid tumors thereby enabling the diagnosis of cancer.
These CLL patients have a deletion within a specific chromosome and may respond to ibrutinib.
We remind investors that Janssen Biotech entered into a worldwide collaboration with Pharmacyclics, Inc in Dec 2011 to co-develop and co-commercialize ibrutinib for several B-cell malignancies, including chronic leukemia and lymphoma.
In 2011, the US Food and Drug Administration (FDA) cleared Abbott's Vysis CLL FISH Probe Kit, which enables to determine prognosis for patients with CLL. Nonetheless, Abbott plans to use its Viysis CLL FISH Probe Kit only for determination of genetic marker status as per the co-development agreement among Janssen, Pharmacyclics and Abbott.
We note that Abbott separated its business into two publicly-traded companies on Jan 1, 2013 - one in diversified medical products and the other in research-based pharmaceuticals.
Abbott is keen to further develop its diversified medical products business with renewed focus. The stock current carries a Zacks Rank #4 (Sell). Large-cap pharma companies that currently look attractive include Eli Lilly ( LLY ) and Bayer ( BAYRY ). Both are Zacks Rank #2 (Buy) stocks.
ABBOTT LABS (ABT): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs ( ABT ) recently announced its collaboration with Johnson & Johnson's ( JNJ ) Janssen Biotech, Inc. and Pharmacyclics, Inc. to explore Abbott's proprietary FISH (fluorescence in situ hybridization) technology for further use. ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. The prime aim of this diagnostic test will be to identify patients with a genetic subtype of chronic lymphocytic leukemia (CLL). | Abbott Labs ( ABT ) recently announced its collaboration with Johnson & Johnson's ( JNJ ) Janssen Biotech, Inc. and Pharmacyclics, Inc. to explore Abbott's proprietary FISH (fluorescence in situ hybridization) technology for further use. ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. In 2011, the US Food and Drug Administration (FDA) cleared Abbott's Vysis CLL FISH Probe Kit, which enables to determine prognosis for patients with CLL. | Abbott Labs ( ABT ) recently announced its collaboration with Johnson & Johnson's ( JNJ ) Janssen Biotech, Inc. and Pharmacyclics, Inc. to explore Abbott's proprietary FISH (fluorescence in situ hybridization) technology for further use. ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. Nonetheless, Abbott plans to use its Viysis CLL FISH Probe Kit only for determination of genetic marker status as per the co-development agreement among Janssen, Pharmacyclics and Abbott. | ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) recently announced its collaboration with Johnson & Johnson's ( JNJ ) Janssen Biotech, Inc. and Pharmacyclics, Inc. to explore Abbott's proprietary FISH (fluorescence in situ hybridization) technology for further use. The prime aim of this diagnostic test will be to identify patients with a genetic subtype of chronic lymphocytic leukemia (CLL). |
34301.0 | 2013-02-25 00:00:00 UTC | Weekly Healthcare Notes: Pfizer And Roche Holdings | ABT | https://www.nasdaq.com/articles/weekly-healthcare-notes-pfizer-and-roche-holdings-2013-02-25 | nan | nan | The past week has been a handful of events for the healthcare sector impacting many healthcare companies under our coverage. Pfizer ( PFE ) announced that its largest selling drug Lyrica exhibited similar efficacy as Levetiracetam, a conventional treatment, in reducing the most common type of seizures in epilepsy patients. The world's largest drug maker also announced closure of an R&D facility along with lay-offs as it continues to trim its R&D costs. Meanwhile, Roche Holdings ( RHHBY ) received a much anticipated FDA approval for its blockbuster potential breast cancer drug, Kadcyla, widely known as T-DM1.
Pfizer
Lyrica, a part of Pfizer's central nervous system ( CNS ) franchise, is widely used to treat fibromyalgia, a diabetic nerve pain and neuropathic pain. It is also used as an add-on drug to treat seizures in epilepsy patients even as Pfizer has been trying to expand the drug's use as a mono-therapy for epilepsy patients.
Pfizer's plans hit a road block after the drug's extended-release formula failed to exhibit strong efficacy in 2012. However, results of a separate clinical study now raise hopes as immediate-release formula of Lyrica exhibited similar efficacy as Levetiracetam (Keppra) in treating epilepsy patients whose seizures have not been adequately controlled by previous treatments. According to the clinical data, the drug reduced 28-day seizure rates in patients by at least 50%. The drug currently garners about $4 billion in revenues each year and we expect sales to keep increasing gradually mainly due to expansions to other indications including epilepsy.
In a separate event, Pfizer announced that it is closing down CovX operation in San Diego, which will in turn result into lay-off of nearly 100 employees. The move comes as the drug maker is striving hard to manage its costs in a flurry of patent expiries. Pfizer lost patent protection for its largest selling drug Lipitor in Nov 2011, putting at risk about $10 billion even as it is slated to lose another $10 billion in next 2-3 years due to upcoming patent expiries. Due to these patent expiries, the company took several other measures including increase its focus on core pharma business and improve pipeline along with reducing staff. Continued measures like this could lead to an upside in our price estimate as R&D costs could decline more than we anticipate.
See Full Analysis For Pfizer here
Roche Holdings
Roche has been investing heavily in its R&D program focusing mainly on oncology drugs (Read Roche Defends $47 Value With Strong R&D Pipeline ) and has started to reap the fruits now. After receiving the regulatory approvals for blockbuster potential drug Perjeta in Q4, it has secured FDA approval for another major pipeline drug, T-DM1 or Kadcyla. Both of these drugs target HER2-positive breast cancer. While approval was widely expected, the good news was that the label allows for use as a front-line drug to treat HER-2 positive metastatic breast cancer.
The launch of T-DM1 or Kadcyla will further strengthen Roche's position in the oncology market where it already has a formidable presence with a range of successful products such as Avastin, Herceptin, and Rituxan. They are some of the world's largest-selling cancer drugs with each clocking over $5 billion in sales. With the strong efficacy exhibited in clinical trials, we expect the drug to garner more than $1 billion in peak sales and drive the revenue growth going forward.
See Full Analysis For Roche Holdings Here
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pfizer ( PFE ) announced that its largest selling drug Lyrica exhibited similar efficacy as Levetiracetam, a conventional treatment, in reducing the most common type of seizures in epilepsy patients. However, results of a separate clinical study now raise hopes as immediate-release formula of Lyrica exhibited similar efficacy as Levetiracetam (Keppra) in treating epilepsy patients whose seizures have not been adequately controlled by previous treatments. The launch of T-DM1 or Kadcyla will further strengthen Roche's position in the oncology market where it already has a formidable presence with a range of successful products such as Avastin, Herceptin, and Rituxan. | Pfizer ( PFE ) announced that its largest selling drug Lyrica exhibited similar efficacy as Levetiracetam, a conventional treatment, in reducing the most common type of seizures in epilepsy patients. Meanwhile, Roche Holdings ( RHHBY ) received a much anticipated FDA approval for its blockbuster potential breast cancer drug, Kadcyla, widely known as T-DM1. However, results of a separate clinical study now raise hopes as immediate-release formula of Lyrica exhibited similar efficacy as Levetiracetam (Keppra) in treating epilepsy patients whose seizures have not been adequately controlled by previous treatments. | Pfizer ( PFE ) announced that its largest selling drug Lyrica exhibited similar efficacy as Levetiracetam, a conventional treatment, in reducing the most common type of seizures in epilepsy patients. It is also used as an add-on drug to treat seizures in epilepsy patients even as Pfizer has been trying to expand the drug's use as a mono-therapy for epilepsy patients. See Full Analysis For Pfizer here Roche Holdings Roche has been investing heavily in its R&D program focusing mainly on oncology drugs (Read Roche Defends $47 Value With Strong R&D Pipeline ) and has started to reap the fruits now. | Pfizer ( PFE ) announced that its largest selling drug Lyrica exhibited similar efficacy as Levetiracetam, a conventional treatment, in reducing the most common type of seizures in epilepsy patients. The world's largest drug maker also announced closure of an R&D facility along with lay-offs as it continues to trim its R&D costs. However, results of a separate clinical study now raise hopes as immediate-release formula of Lyrica exhibited similar efficacy as Levetiracetam (Keppra) in treating epilepsy patients whose seizures have not been adequately controlled by previous treatments. |
34302.0 | 2013-02-22 00:00:00 UTC | DexCom Reduces Losses in 4Q, Rev Up - Analyst Blog | ABT | https://www.nasdaq.com/articles/dexcom-reduces-losses-in-4q-rev-up-analyst-blog-2013-02-22 | nan | nan | DexCom ( DXCM ), a player in the glucose monitoring market, reported fourth quarter 2012 adjusted loss per share of 14 cents, better than the Zacks Consensus Estimate of a loss of 16 cents per share. For 2012, DexCom reported adjusted loss per share of 81 cents better than the Zacks Consensus Estimate of a loss of 84 cents per share. Net loss for the quarter dropped 30.3% year over year to $8.5 million (or loss of 12 cents per share).
Revenues
Revenues surged 48.7% year over year to $33.3 million in the fourth quarter, beating the Zacks Consensus Estimate of $29 million. For 2012, revenues rose 30.9% to $99.9 million surpassing the Zacks Consensus Estimate of $96 million.
Product sales increased almost 51.7% to $31.7 million while development grant and other revenues improved 6.7% to $1.6 million in the reported quarter.
Margins and Expenses
Gross margin improved to 52.6% in the fourth quarter from 47.8% a year ago. Operating expenses increased 13.1% year over year to $25.9 million due to higher selling, general and administrative expenses, which grew 25.5% in the reported quarter. The company reduced its operating loss year over year.
Balance Sheet
DexCom exited the fourth quarter with cash and short-term marketable securities of $48.7 million, down 40.6% on a year-over-year basis. Long-term debt (net of current portion) amounted to $6.8 million, up from zero in the year-ago period.
Our Take
DexCom is well placed in the industry that it serves. Given the burgeoning diabetes population in the U.S., its G4 Platinum presents considerable market opportunity. Successful commercialization of G4 in the U.S. could just be the catalyst that the company needs to gain share in the market it serves.
Increased awareness and acceptance of the need for continuous glucose monitoring and international expansion should help drive sales of DexCom's products. The company is eyeing prospects in the vast markets of India, China and Japan.
In addition to upgrading and enhancing the functions of existing products, DexCom has also been active on the collaboration front, through which it is looking to leverage its technology with its collaborator's product offerings.
Competition in the glucose monitoring market is fierce. DexCom competes with Roche Diabetes Care, a division of Roche ( RHHBY ) and LifeScan under Johnson & Johnson ( JNJ ) for its Seven Plus offering. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems.
We believe that the company's move to buy healthcare IT company SweetSpot Diabetes Care, may allow it to compete more effectively through better data management systems.
Despite increasing revenues, DexCom remains a loss making entity and its efforts are made more difficult by a stringent regulatory environment. The stock currently holds a Zacks Rank #3 (Hold).
ABBOTT LABS (ABT): Free Stock Analysis Report
DEXCOM INC (DXCM): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
ROCHE HLDG LTD (RHHBY): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Get Free Report To read this article on Zacks.com click here. Balance Sheet DexCom exited the fourth quarter with cash and short-term marketable securities of $48.7 million, down 40.6% on a year-over-year basis. | ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Get Free Report To read this article on Zacks.com click here. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. DexCom ( DXCM ), a player in the glucose monitoring market, reported fourth quarter 2012 adjusted loss per share of 14 cents, better than the Zacks Consensus Estimate of a loss of 16 cents per share. | ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Get Free Report To read this article on Zacks.com click here. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. DexCom ( DXCM ), a player in the glucose monitoring market, reported fourth quarter 2012 adjusted loss per share of 14 cents, better than the Zacks Consensus Estimate of a loss of 16 cents per share. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report ROCHE HLDG LTD (RHHBY): Get Free Report To read this article on Zacks.com click here. DexCom ( DXCM ), a player in the glucose monitoring market, reported fourth quarter 2012 adjusted loss per share of 14 cents, better than the Zacks Consensus Estimate of a loss of 16 cents per share. |
34303.0 | 2013-02-20 00:00:00 UTC | Patent Challenge from Perrigo - Analyst Blog | ABT | https://www.nasdaq.com/articles/patent-challenge-from-perrigo-analyst-blog-2013-02-20 | nan | nan | Recently, Perrigo Company ( PRGO ) announced that it has filed an Abbreviated New Drug Application (ANDA) with the US Food and Drug Administration (FDA) seeking approval to market its generic version of AbbVie Inc. 's ( ABBV ) Androgel 1.62%. Perrigo believes that it is the first-to-file, entitling it to 180 days exclusivity of generic Androgel 1.62%.
We note that AndroGel 1.62% (testosterone gel 1.62%) is marketed for treating males (above 18 years of age) with low or no testosterone in their body. The annual sales of this product were approximately $680 million, according to data released by Wolters Kluwer Health.
AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). AbbVie provided its guidance for 2013. The company expects to earn $3.03-$3.13 per share in 2013 on total revenues of more than $18 billion. Currency movement is expected to negatively impact revenues by about 1%.
We remind investors that Perrigo reported lower-than-expected revenues, but higher-than-expected earnings in its second quarter 2013 (ended Dec 29, 2012).
Apart from announcing its financial results, Perrigo inked a deal to buy animal health company Velcera, Inc. for $160 million in cash. The deal is expected to close in calendar year 2013. Perrigo intends to strengthen its position in the OTC retail pet healthcare market through the impending acquisition.
Perrigo, which develops, manufactures and distributes OTC and generic prescription pharmaceuticals among others, carries a Zacks Rank #2 (Buy) in the short-run. Meanwhile, biopharma stock, Actelion Ltd. ( ALIOF ) has a Zacks Rank #1 (Strong Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
ACTELION LTD (ALIOF): Get Free Report
PERRIGO COMPANY (PRGO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ACTELION LTD (ALIOF): Get Free Report PERRIGO COMPANY (PRGO): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from announcing its financial results, Perrigo inked a deal to buy animal health company Velcera, Inc. for $160 million in cash. | ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ACTELION LTD (ALIOF): Get Free Report PERRIGO COMPANY (PRGO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). Recently, Perrigo Company ( PRGO ) announced that it has filed an Abbreviated New Drug Application (ANDA) with the US Food and Drug Administration (FDA) seeking approval to market its generic version of AbbVie Inc. 's ( ABBV ) Androgel 1.62%. | ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ACTELION LTD (ALIOF): Get Free Report PERRIGO COMPANY (PRGO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). Recently, Perrigo Company ( PRGO ) announced that it has filed an Abbreviated New Drug Application (ANDA) with the US Food and Drug Administration (FDA) seeking approval to market its generic version of AbbVie Inc. 's ( ABBV ) Androgel 1.62%. | AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ACTELION LTD (ALIOF): Get Free Report PERRIGO COMPANY (PRGO): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects to earn $3.03-$3.13 per share in 2013 on total revenues of more than $18 billion. |
34304.0 | 2013-02-20 00:00:00 UTC | Label Expansion for NVS' Zortress - Analyst Blog | ABT | https://www.nasdaq.com/articles/label-expansion-for-nvs-zortress-analyst-blog-2013-02-20 | nan | nan | Novartis ( NVS ) recently announced that the US Food and Drug Administration (FDA) has approved Zortress (everolimus) for an additional indication.
Zortress is now approved for the prophylaxis of organ rejection in adults undergoing a liver transplant.
The approval was based on results from a phase III randomized study, which was conducted in 719 liver transplant patients starting 30 days post-transplant. The study spanned over 12 months.
Zortress reported revenues of $210 million in 2012, up 20% year over year driven by robust demand.
We note that Zortress is already approved in the US for the prophylaxis of organ rejection in adult patients undergoing kidney transplant.
The approval for the new indication makes Zortress the first mTOR inhibitor approved to prevent organ rejection in adult liver transplant patients in the US. We expect that the recent approval will further boost Zortress sales.
We remind investors that everolimus was approved by EU for use in adult liver transplant patients in the fourth quarter of 2012 under the trade name Certican.
Certican is already approved in more than 90 countries namely Chile, Philippines and Argentina to prevent organ rejection for renal and heart transplant patients. In most EU member countries, Certican is also approved in kidney and heart transplantation.
Novartis has also licensed Zortress to Abbott ( ABT ) and sub-licensed to Boston Scientific for use in drug-eluting stents.
Currently, Novartis carries a Zacks Rank #3 (Hold). Large-cap pharma companies that currently look better-positioned include Eli Lilly ( LLY ) and Bayer ( BAYRY ). Both are Zacks Rank #2 (Buy) stocks.
ABBOTT LABS (ABT): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Novartis has also licensed Zortress to Abbott ( ABT ) and sub-licensed to Boston Scientific for use in drug-eluting stents. ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis ( NVS ) recently announced that the US Food and Drug Administration (FDA) has approved Zortress (everolimus) for an additional indication. | ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis has also licensed Zortress to Abbott ( ABT ) and sub-licensed to Boston Scientific for use in drug-eluting stents. We note that Zortress is already approved in the US for the prophylaxis of organ rejection in adult patients undergoing kidney transplant. | ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis has also licensed Zortress to Abbott ( ABT ) and sub-licensed to Boston Scientific for use in drug-eluting stents. We note that Zortress is already approved in the US for the prophylaxis of organ rejection in adult patients undergoing kidney transplant. | ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis has also licensed Zortress to Abbott ( ABT ) and sub-licensed to Boston Scientific for use in drug-eluting stents. We note that Zortress is already approved in the US for the prophylaxis of organ rejection in adult patients undergoing kidney transplant. |
34305.0 | 2013-02-19 00:00:00 UTC | Weekly Healthcare Notes: Medtronic & Merck | ABT | https://www.nasdaq.com/articles/weekly-healthcare-notes-medtronic-merck-2013-02-19 | nan | nan | The past week has been a handful of events for the healthcare sector impacting many healthcare companies under our coverage. Medtronic's ( MDT ) brain stimulation devices have shown impressive efficacy in early-stage Parkinson patients. Meanwhile, news of Merck ( MRK ) shelling out over a half billion dollars to settle two class-action lawsuits in the U.S. relating to its cardiovascular drug Vytorin made the rounds.
Medtronic
In a recently concluded clinical trial, Medtronic's implantable deep brain stimulation devices (DBSs), Kinetra or Soletra, showed strong efficacy in treatment of early-stage patients of Parkinson's disease. According to the study, the quality of life improved significantly for patients treated with both drug and DBS, whereas conditions worsened marginally in patients only on drugs.
About 1.5 million people in the U.S. have Parkinson's disease and the figure could double by 2030 mainly due to the aging population. Currently, DBSs are used in patients with advanced Parkinson's that don't respond consistently to the drug treatment. With the impressive clinical trial data, Medtronic can now hope for extension of DBSs to millions of early-stage patients. And, with the large patient base, any success here could bring in huge additional revenue.
The device is a part of Neuromodulation division in our model. Going forward, we expect a declining market share as an increase in the company's sales may not be in proportion to the increase in global neuromodulation market which is expected to grow at a very high rate throughout the Trefis forecast period. Medtronic, however, is currently the only medical device maker with FDA approval for its DBSs to treat advanced Parkinson's disease. And, should the regulatory agency decide to recommend use of DBSs in early-stage patients, it will be well placed to gain market share. Also, it will have the clinical data to back its claims.
We have a $46price estimate for Medtronic , in line with the current the market price.
See our complete analysis of Medtronic here
Merck
Merck has agreed to settle two class action lawsuits for a whopping $688 million dollars. The lawsuits alleged that the drug maker withheld poor results of a clinical trial called "Enhance" which was conducted to determine the efficacy of Vytorin. And, Vytorin sales have been declining since the results of "Enhance" came out in 2008.
However, the settlement could be one of Merck's efforts to douse controversies around the drug as investors are eagerly awaiting the results of IMPROVE-IT, a large study that is being conducted to prove efficacy of Vyotrin. The data is expected to be released before June 2013 and any positive outcome there will put the drug back on growth trajectory. With multi-billion dollar potential of the drug, Merck can gain back what it has lost in the class action lawsuits.
We are revising our price estimate for Merck to reflect full year results and recent developments.
See Full Analysis ForMerck
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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, news of Merck ( MRK ) shelling out over a half billion dollars to settle two class-action lawsuits in the U.S. relating to its cardiovascular drug Vytorin made the rounds. The lawsuits alleged that the drug maker withheld poor results of a clinical trial called "Enhance" which was conducted to determine the efficacy of Vytorin. However, the settlement could be one of Merck's efforts to douse controversies around the drug as investors are eagerly awaiting the results of IMPROVE-IT, a large study that is being conducted to prove efficacy of Vyotrin. | Medtronic's ( MDT ) brain stimulation devices have shown impressive efficacy in early-stage Parkinson patients. Medtronic In a recently concluded clinical trial, Medtronic's implantable deep brain stimulation devices (DBSs), Kinetra or Soletra, showed strong efficacy in treatment of early-stage patients of Parkinson's disease. See our complete analysis of Medtronic here Merck Merck has agreed to settle two class action lawsuits for a whopping $688 million dollars. | Medtronic In a recently concluded clinical trial, Medtronic's implantable deep brain stimulation devices (DBSs), Kinetra or Soletra, showed strong efficacy in treatment of early-stage patients of Parkinson's disease. With the impressive clinical trial data, Medtronic can now hope for extension of DBSs to millions of early-stage patients. See Full Analysis ForMerck Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With the impressive clinical trial data, Medtronic can now hope for extension of DBSs to millions of early-stage patients. Going forward, we expect a declining market share as an increase in the company's sales may not be in proportion to the increase in global neuromodulation market which is expected to grow at a very high rate throughout the Trefis forecast period. Medtronic, however, is currently the only medical device maker with FDA approval for its DBSs to treat advanced Parkinson's disease. |
34306.0 | 2013-02-19 00:00:00 UTC | Under The Hood: A New Dividend ETF Diva | ABT | https://www.nasdaq.com/articles/under-hood-new-dividend-etf-diva-2013-02-19 | nan | nan | One of the most prominent themes in the exchange-traded products business last year was the rapid proliferation of and generally enthusiastic reception of new dividend ETFs . On the year, dividend ETFs raked in $9 billion in fresh assets and those inflows benefited both established and rookie funds.
With the population of dividend ETFs steadily increasing, it is not surprising that a few funds, particularly among the new crop, go unnoticed. That should not be the case with the PowerShares S&P 500 High Dividend Portfolio (NYSE: SPHD ), which debuted in October.
Since its October debut, the PowerShares S&P 500 High Dividend Portfolio has managed to attract $61 million in assets under management. Not a bad tally for a five-month old ETF, but more importantly, SPHD has delivered the goods in terms of performance and yield. The fund is up 4.4 percent since inception and currently sports a 30-day SEC yield of 4.2 percent.
SPHD does use a fairly unique methodology to generate returns. The ETF tracks the S&P 500 Low Volatility High Dividend Index, which is composed of 50 securities traded on the S&P 500 Index that historically have provided high dividend yields and low volatility, according to PowerShares .
As is the case with its low volatility cousin, the PowerShares S&P 500 Low Volatility ETF (NYSE: SPLV ), SPHD devotes a significant portion of its weight to the utilities and consumer staples sectors. Regarding SPHD, those two sectors combine for almost 27 percent of the ETF's overall weight. Financials and health care combine for another 27 percent.
Intentional or not, many of SPHD's 50 holdings can be labeled as "blue chips" and that means investors will likely be familiar with many of the ETF's constituents. Top-10 holdings include Abbott Labs (NYSE: ABT ), Altria (NYSE: MO ) and AT&T (NYSE: T ). Overall, SPHD is home to nine members of the Dow Jones Industrial Average.
SPHD is rebalanced twice a year, in January and July, and how the fund looks following the next rebalancing will be worth watching for at least two reasons. First, H.J. Heinz (NYSE: HNZ ), an SPHD holding, is being acquired. Second, top-10 holding Centurylink (NYSE: CTL ) recently cut its quarterly dividend to 54 cents a share from 72.5 cents a share.
Based on the new dividend and Tuesday's closing price, Centurylink still yields over six percent and it should be noted SPHD does not screen based on dividend increases or cuts. However, the combination of a lower market capitalization and increased volatility likely means Centurylink is heading for a lower weighting in SPHD.
Still, investors should not get caught up on the struggles of one stock when it only accounts for 2.42 percent of an ETF's weight.
With a spate of dividend increases from SPHD likely to come over the next few months, think Johnson & Johnson (NYSE: JNJ ), Altria and others, this ETF has the potential to be a conservative investor's friend in 2013.
For more on ETFs, click here .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Gain access to more investing ideas, tools & education. Get Started on Marketfy, the first ever curated & verified Marketplace for everything trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top-10 holdings include Abbott Labs (NYSE: ABT ), Altria (NYSE: MO ) and AT&T (NYSE: T ). One of the most prominent themes in the exchange-traded products business last year was the rapid proliferation of and generally enthusiastic reception of new dividend ETFs . On the year, dividend ETFs raked in $9 billion in fresh assets and those inflows benefited both established and rookie funds. | Top-10 holdings include Abbott Labs (NYSE: ABT ), Altria (NYSE: MO ) and AT&T (NYSE: T ). That should not be the case with the PowerShares S&P 500 High Dividend Portfolio (NYSE: SPHD ), which debuted in October. The ETF tracks the S&P 500 Low Volatility High Dividend Index, which is composed of 50 securities traded on the S&P 500 Index that historically have provided high dividend yields and low volatility, according to PowerShares . | Top-10 holdings include Abbott Labs (NYSE: ABT ), Altria (NYSE: MO ) and AT&T (NYSE: T ). The ETF tracks the S&P 500 Low Volatility High Dividend Index, which is composed of 50 securities traded on the S&P 500 Index that historically have provided high dividend yields and low volatility, according to PowerShares . As is the case with its low volatility cousin, the PowerShares S&P 500 Low Volatility ETF (NYSE: SPLV ), SPHD devotes a significant portion of its weight to the utilities and consumer staples sectors. | Top-10 holdings include Abbott Labs (NYSE: ABT ), Altria (NYSE: MO ) and AT&T (NYSE: T ). The fund is up 4.4 percent since inception and currently sports a 30-day SEC yield of 4.2 percent. Regarding SPHD, those two sectors combine for almost 27 percent of the ETF's overall weight. |
34307.0 | 2013-02-18 00:00:00 UTC | Roche Holdings: Revised $58 Price Estimate On Strong Pipeline | ABT | https://www.nasdaq.com/articles/roche-holdings-revised-58-price-estimate-strong-pipeline-2013-02-18 | nan | nan | Roche Holdings ( RHHBY ) has had an impressive ride in the last couple of months as its stock price has soared close to 40% since we initiated coverage on the drug maker. Continued growth across business segments and some positive developments regarding its pipeline are largely drove this huge appreciation. In its Q4 earnings, the drug maker reported a 4% increase (at constant exchange rate or CER) in total revenues in Swiss franc, bucking the trend of declining revenues shown by other big pharma companies (Read Roche Holdings's Oncology, Virology Drugs Drive Growth ). In the wake of earnings and recent developments, we have increased our price estimate for Roche Holdings to $46 from $58 , which is about 5% ahead of current market price.
Below we discuss the changes made and the outlook in detail.
Check out our complete analysis of Roche Holdings
Strong Pipeline Supports Upside
Roche has invested heavily in its R&D program and owns one of the strongest pipeline among pharmaceutical companies (Read Roche Defends $47 Value With Strong R&D Pipeline). Most of its promising pipeline drugs are in the Oncology division where the drug maker has a formidable presence. While Roche has already launched one of the potential blockbuster, Perjeta, in several markets, it has also filed approval applications for T-DM1.
Both of these drugs target mainly HER2-positive breast cancer. With the strong efficacy exhibited in clinical trials, we believe the probability of T-DM1 getting FDA approval has increased significantly. The FDA has already granted its application a priority review, which means the drug could be approved by mid-2013. Accordingly, we have incorporated expected revenues from the drug. We expect the drug to garner more than $1 billion in peak sales for its currently targeted indication.
A few days back, another blockbuster potential drug Obinutuzumab (GA101) showed impressive efficacy in improving progression-free survival in chronic lymphocytic leukemia (a type of blood and bone cancer) patients. In the first stage of a phase III study called CLL11, the drug in combination with chemotherapy significantly reduced the risk of disease worsening or death compared to chemotherapy alone in previously untreated patients. Further, an additional study suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as a first line treatment for the condition. While the drug still has a long way to go for the approval (expected approval in 2014), we think it has a fair chance of succeeding now, and thus we have incorporated expected sales of the drug in our model.
We have also increased our sales expectations from its several established drugs. Mabthera/Rituxan is seeing a continued uptake in demand, especially from emerging markets. Herceptin sales have been helped by Roche's strategy to combine drugs with companion diagnostics. The drug maker's other largest selling cancer drug, Avastin, is seeing astounding growth in Western Europe market for ovarian and lung cancer condition. According to management, Avastin gained significant market share for ovarian cancer in the region and this trend is expected to continue.
We have, however, lowered our sales expectations from Hepatitis C vaccine Pegasys. While the drug exhibited double-digit growth in the last couple of quarters due to its use in triple-combination therapy, patients are going off the therapy, and this should result in declining sales going forward. In addition to Pegasys, we have also lowered our sales expectations from Bonviva and Neorecormon as they continue to lose revenues at an accelerating rate amid generic competition.
In the Diagnostic division, we have lowered Roche's expected market share largely due to weakness in its diabetes franchise. Adding to the pain, Roche has been facing pricing pressure in developed markets.
While we expect gross margins (for both pharma and diagnostics) to decline going forward due to a change in product mix and pricing pressure, the decline may not be as steep as we had earlier anticipated and so we have slightly revised our gross margin expectation. Further, we have reduced our forecast for R&D expenditures and selling, informational & administrative (SI&A) expenses due to Roche's aggressive efforts to cut costs to drive operating profit. All of these factors have led to an increase in our price estimate.
However, there are other factors that could have an impact on our price estimate. The company's experimental cardiovascular drug, RG7652, is moving toward advanced trials after significantly reducing levels of bad LDL cholesterol. Roche's pipeline for Alzihmers also looks promising. And any success here will lead to upside in our price estimate.
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Further, an additional study suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as a first line treatment for the condition. Mabthera/Rituxan is seeing a continued uptake in demand, especially from emerging markets. Roche Holdings ( RHHBY ) has had an impressive ride in the last couple of months as its stock price has soared close to 40% since we initiated coverage on the drug maker. | Further, an additional study suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as a first line treatment for the condition. Mabthera/Rituxan is seeing a continued uptake in demand, especially from emerging markets. In its Q4 earnings, the drug maker reported a 4% increase (at constant exchange rate or CER) in total revenues in Swiss franc, bucking the trend of declining revenues shown by other big pharma companies (Read Roche Holdings's Oncology, Virology Drugs Drive Growth ). | Further, an additional study suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as a first line treatment for the condition. Mabthera/Rituxan is seeing a continued uptake in demand, especially from emerging markets. In its Q4 earnings, the drug maker reported a 4% increase (at constant exchange rate or CER) in total revenues in Swiss franc, bucking the trend of declining revenues shown by other big pharma companies (Read Roche Holdings's Oncology, Virology Drugs Drive Growth ). | Further, an additional study suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as a first line treatment for the condition. Mabthera/Rituxan is seeing a continued uptake in demand, especially from emerging markets. In the wake of earnings and recent developments, we have increased our price estimate for Roche Holdings to $46 from $58 , which is about 5% ahead of current market price. |
34308.0 | 2013-02-11 00:00:00 UTC | Weekly 52 Week Highs: ABBV, ABT, YUM, AET | ABT | https://www.nasdaq.com/articles/weekly-52-week-highs-abbv-abt-yum-aet-2013-02-11 | nan | nan | According to GuruFocus Insider Data , these are the largest insider buys during the past week: AbbVie Inc. ( ABBV ), Abbot Laboratories ( ABT ), Yum! Brands Inc. ( YUM ), and Aetna Inc. ( AET ).
The overall trend of insiders is illustrated in the chart below:
AbbVie Inc. ( ABBV ): Director Frederick H. Waddell Bought 2,000 Shares
Director of AbbVie Inc., Frederick H. Waddell, bought 2,000 shares on 2/04/2013 at an average price of $36.22. AbbVie Inc. has a market cap of $57.28 billion; its shares were traded at around $36.22 with and P/S ratio of 3.1756. The dividend yield of AbbVie Inc. stocks is 1.1%.
On Jan. 30, AbbVie confirmed it delivered strong sales growth with its marketed pharmaceutical products in 2012. The proprietary pharmaceutical segment of Abbott, representing the majority of AbbVie's revenue, grew more than 8 percent globally on an operational basis, excluding a nearly 3 percent negative impact from foreign exchange.
Abbott Laboratories ( ABT ): Director William A. Osborn Bought 15,000 Shares
Director of Abbott Laboratories, William A. Osborn, bought 15,000 shares during the past week at an average price of $34.42. Abbott Laboratories is an Illinois corporation, incorporated in 1900. Abbott Laboratories has a market cap of $54.39 billion; its shares were traded at around $34.42 with a P/E ratio of 8.3682 and P/S ratio of 1.386. The dividend yield of Abbott Laboratories stocks is 4.85%. Abbott Laboratories had an annual average earnings growth of 8.9% over the past 10 years. GuruFocus rated Abbott Laboratories the business predictability rank of 3-star .
On Jan. 23, Abbott announced financial results for the fourth quarter ended Dec. 31, 2012. Fourth-quarter diluted earnings per share, excluding specified items, were $1.51. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.66, including specified items. Full-year diluted earnings per share, excluding specified items, were $5.07, exceeding Abbott's initial guidance range. Diluted earnings per share under GAAP were $3.72, including specified items.
Last week, Director William A. Osborn bought 10,000 shares of ABT stock. Senior Vice President Stephen R. Fussell sold 9,690 shares this month. Executive Vice President Laura J. Schumacher and Senior Vice President A. David Forrest sold shares in December, and Chairman and CEO Miles D. White sold shares in November.
Yum! Brands Inc. ( YUM ): Director Robert D. Walter Bought 35,000 Shares
Director of Yum! Brands Inc., Robert D. Walter, bought 35,000 shares on 2/06/2013 at an average price of $65.37. Yum! Brands Inc. was incorporated under the laws of the state of North Carolina in 1997. Yum! Brands Inc. has a market cap of $29.5 billion; its shares were traded at around $65.37 with a P/E ratio of 19.2308 and P/S ratio of 2.2857. The dividend yield of Yum! Brands Inc. stocks is 1.9%. Yum Brands Inc. had an annual average earnings growth of 10.3% over the past 10 years.
On Feb. 4, Yum! Brands Inc. reported results for the fourth quarter ended Dec. 29, 2012 including EPS of $0.83, excluding Special Items. Reported EPS was $0.72 for the quarter and $3.38 for the year.
Last week, Director Robert D. Walter bought 35,000 shares of YUM stock. Senior Vice President and Chief Public Affairs Jonathan David Blum sold 3,242 shares this month. Senior Vice President and Chief Public Affairs Jonathan David Blum sold 3,244 shares in January. Director Massimo Ferragamo, Chief People Officer Hollan Anne Byerlein, Chair and CEO China Division Jingshyh S. Su and Senior Vice President Finance and CFO Richard Carucci sold shares in December.
Aetna Inc. ( AET ): Executive Vice President, Local/Regional Bus Karen Rohan Bought 4,035 Shares
Executive Vice President, Local/Regional Bus of Aetna Inc., Karen Rohan, bought 4,035 shares on 02/06/2013 at an average price of $50.56. Aetna Inc. was incorporated in Pennsylvania in 1982 under the name of United States Health Care Systems Inc. Aetna Inc. has a market cap of $16.93 billion; its shares were traded at around $50.56 with a P/E ratio of 9.6712 and P/S ratio of 0.5052. The dividend yield of Aetna Inc. stocks is 1.43%. Aetna Inc. had an annual average earnings growth of 22.7% over the past 10 years. GuruFocus rated Aetna Inc. the business predictability rank of 2-star.
On Jan. 31, Aetna announced fourth-quarter 2012 operating earnings of $317.0 million, or $.94 per share. Full-year 2012 operating earnings were $1.77 billion, or $5.13 per share. Net income for the fourth quarter of 2012 was $190.1 million, or $.56 per share, and includes $.44 per share of charges for other items, primarily a litigation-related settlement, offset by $.06 per share of net realized capital gains. Full-year net income was $1.66 billion, or $4.81 per share.
Last week, Executive Vice President, Local/Regional Business Karen Rohan bought 4,035 shares of AET stock. Director Molly Joel Coye, Director Edward J. Ludwig, Senior Vice President and General Counsel William James Casazza, Vice President, Controller and Chief Accounting Officer Rajan Parmeswar, and Chairman, CEO and President Mark T. Bertolini sold shares in December.
For the complete list of stocks that were bought by their company executives, go to: Insider Buys.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to GuruFocus Insider Data , these are the largest insider buys during the past week: AbbVie Inc. ( ABBV ), Abbot Laboratories ( ABT ), Yum! Abbott Laboratories ( ABT ): Director William A. Osborn Bought 15,000 Shares Director of Abbott Laboratories, William A. Osborn, bought 15,000 shares during the past week at an average price of $34.42. Last week, Director William A. Osborn bought 10,000 shares of ABT stock. | Abbott Laboratories ( ABT ): Director William A. Osborn Bought 15,000 Shares Director of Abbott Laboratories, William A. Osborn, bought 15,000 shares during the past week at an average price of $34.42. According to GuruFocus Insider Data , these are the largest insider buys during the past week: AbbVie Inc. ( ABBV ), Abbot Laboratories ( ABT ), Yum! Last week, Director William A. Osborn bought 10,000 shares of ABT stock. | Abbott Laboratories ( ABT ): Director William A. Osborn Bought 15,000 Shares Director of Abbott Laboratories, William A. Osborn, bought 15,000 shares during the past week at an average price of $34.42. According to GuruFocus Insider Data , these are the largest insider buys during the past week: AbbVie Inc. ( ABBV ), Abbot Laboratories ( ABT ), Yum! Last week, Director William A. Osborn bought 10,000 shares of ABT stock. | According to GuruFocus Insider Data , these are the largest insider buys during the past week: AbbVie Inc. ( ABBV ), Abbot Laboratories ( ABT ), Yum! Abbott Laboratories ( ABT ): Director William A. Osborn Bought 15,000 Shares Director of Abbott Laboratories, William A. Osborn, bought 15,000 shares during the past week at an average price of $34.42. Last week, Director William A. Osborn bought 10,000 shares of ABT stock. |
34309.0 | 2013-02-08 00:00:00 UTC | Weekly Healthcare Notes: Roche Holdings Strong Pipeline & Merck's Lawsuit Sets Precedent | ABT | https://www.nasdaq.com/articles/weekly-healthcare-notes-roche-holdings-strong-pipeline-mercks-lawsuit-sets-precedent-2013 | nan | nan | The past week has been a handful of events for the healthcare sector impacting many healthcare companies under our coverage. Roche Holdings ( RHHBY ) touched new highs after its investigational oncology drug Obinutuzumab (GA101) met its primary endpoint in first stage of a phase III study. Meanwhile, Merck ( MRK ) lost an important trial involving its osteoporosis drug Fosamax that has the potential to impact the outcome of about 4,000 other similar trials relating to the drug.
Roche Holdings
Roche is proving investors' perception of it having one of the strongest oncology drug pipeline amongst pharma companies true (Read Roche Defends $47 Value With Strong R&D Pipeline ). One of its blockbuster potential drug Obinutuzumab (GA101) has exhibited strong efficacy in improving progression-free survival in chronic lymphocytic leukemia (a type of blood and bone cancer) patients. In first stage of a phase III study called CLL11, the drug in combination with a chemotherapy, significantly reduced the risk of disease worsening or death compared to chemotherapy alone in previously untreated patients. Further, an additional analysis suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as first line treatment for the condition.
In December, the drug maker's HER2-positive metastatic breast cancer drug Perjeta also exhibited very strong efficacy in extending overall survival of previously untreated patients over its own Herceptin, a chemotherapy and placebo. All the positive news flows have led the recent rally in the drug maker's share price. We are revising our price estimate for Roche Holdings to reflect the full year earnings and recent developments.
See Full Analysis For Roche Holdings Here
Merck
In a setback, Merck lost a lawsuit for not posting warnings about the risks of its osteoporosis drug Fosamax up front. So far the amount of $285,000 arising as part of the judgement is too small to impact the drug maker financially. However, the concern is that some are calling this case a bellwether one that could influence the settlement talks involving more than 4,000 similar lawsuits involving the drug. These lawsuits contend that the osteoporosis drug causes patients' jawbones to deteriorate, and the drug maker failed to warn patients on the drug.
If the judgment influences outcome of other lawsuits, which is being speculated currently, potential settlements could reach the billions, which could have a meaningful impact on Merck's share price. The company, however, has won 5 out of the 7 similar lawsuits that have been tried in the past, and thus the probability of Merck settling for all the cases are pretty low. However, any outcome will not impact its ongoing business as the drug has already lost patent protection in 2008 and sales have been declining since then. And, we already model continued decline in revenues from the drug going forward.
We are revising our price estimate for Merck to reflect full year results and recent developments.
See Full Analysis ForMerck
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Further, an additional analysis suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as first line treatment for the condition. Roche Holdings ( RHHBY ) touched new highs after its investigational oncology drug Obinutuzumab (GA101) met its primary endpoint in first stage of a phase III study. One of its blockbuster potential drug Obinutuzumab (GA101) has exhibited strong efficacy in improving progression-free survival in chronic lymphocytic leukemia (a type of blood and bone cancer) patients. | Further, an additional analysis suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as first line treatment for the condition. In December, the drug maker's HER2-positive metastatic breast cancer drug Perjeta also exhibited very strong efficacy in extending overall survival of previously untreated patients over its own Herceptin, a chemotherapy and placebo. We are revising our price estimate for Roche Holdings to reflect the full year earnings and recent developments. | Further, an additional analysis suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as first line treatment for the condition. Meanwhile, Merck ( MRK ) lost an important trial involving its osteoporosis drug Fosamax that has the potential to impact the outcome of about 4,000 other similar trials relating to the drug. See Full Analysis For Roche Holdings Here Merck In a setback, Merck lost a lawsuit for not posting warnings about the risks of its osteoporosis drug Fosamax up front. | Further, an additional analysis suggested that the experimental drug could show superior efficacy compared with Roche's own MabThera/Rituxan as first line treatment for the condition. Meanwhile, Merck ( MRK ) lost an important trial involving its osteoporosis drug Fosamax that has the potential to impact the outcome of about 4,000 other similar trials relating to the drug. In December, the drug maker's HER2-positive metastatic breast cancer drug Perjeta also exhibited very strong efficacy in extending overall survival of previously untreated patients over its own Herceptin, a chemotherapy and placebo. |
34310.0 | 2013-02-06 00:00:00 UTC | Westport Funds Buys 2 New Holdings, Both Surge | ABT | https://www.nasdaq.com/articles/westport-funds-buys-2-new-holdings-both-surge-2013-02-06 | nan | nan | Like many prominent money management firms reporting their portfolio updates, Westport Asset Management engaged in limited purchasing in the fourth quarter. It bought two new stocks: Copart Inc. ( CPRT ) and Core Laboratories N.V. ( CLB ).
Led by principles Andrew J. Knuth and Edmund H. Nicklin Jr., Westport combines classic value investing with forward-looking business analysis. It focuses on companies with potential for increased capital appreciation that will affect their stock price, particularly those temporarily out of favor with Wall Street.
In Westport's fourth quarter letter , it commented on the investing environment heading into 2013:
With the arrival of 2013 investors continue to face uncertainties in the form of Congressional battles over the federal budget, Europe's debt crisis, and slowing corporate earnings. However, with the recovery in the housing and auto industries coupled with the rapidly expanding domestic energy exploration and production, the U.S. economy appears to have the potential to grow above 2.0% in 2013.
New Buy: Copart Inc. ( CPRT )
Copart sells vehicles through its two-stage Internet sales technology, for cosignors such as finance companies and banks, for the public and for auto dealers, with more than 50,000 vehicles up for auction daily. Westport purchased 170,100 shares of this company for $29 per share on average in the fourth quarter, giving it a 0.53% weighting in its portfolio.
Since Westport's purchase, the company's market value has increased approximately 26%. Trading for $36.66 per share on midday Wednesday, it has a $4.57 billion market cap.
The price surged on news reported by Bloomberg that hedge fund Jana Partners bought Copart shares in a bet that the company would become a real estate investment trust (REIT), under which it would not have to pay federal income taxes but would be required to return at least 90% of taxable earnings as dividends to shareholders.
"We see an attractive asset trading at a reasonable price with the potential for significant value to be unlocked were CPRT to convert to a REIT," Jana said in the letter obtained by Bloomberg. "Our research suggests that the vast majority of CPRT's earnings can be classified as qualifying real estate income."
In fiscal year 2012, Copart earned $182 million in net come on $924 million in revenue, along with $146 million in free cash flow. Revenue, EBITDA and free cash flow have been growing at the average annual rates of 12.8%, 13% and 29.7%, respectively, over the past five years, according to its 10-year financials .
The company is also pursuing growth through a variety of other means, including acquisitions. In November, it acquired Central de Leil�es Ltda. located in Brazil, WOM Wreck Online Marketing Aktiengesellschaft, an auction platform in Germany, and four parcels of land located in Estrada Muranaka, a municipality of Itaquaquecetuba, S�o Paulo State, Brazil.
Copart currently has a P/E of 24.6, P/B of 7.4 and P/S of 5.1.
New Buy: Core Laboratories N.V. ( CLB )
Westport funds commented in its fourth quarter letter about this company: "Finally, a new position was established in Core Laboratories N.V., a unique oil service company that provides reservoir management services and production enhancement when it experienced an earnings shortfall relative to expectations for third quarter results. The company's capabilities in reserve modeling are highly valued in the shale areas of the U.S."
Core Laboratories' stock price also jumped recently, with its market value gaining more than 25% in the last three months. Trading for $129.50 per share in midday, the company has a market cap of $6.04 billion.
Westport purchased 40,000 shares of Core Laboratories for $104 per share on average in the fourth quarter.
A robust fourth quarter earnings report fueled the company's January stock gain. It posted its the most profitable quarter in its history, with a year-over-year net income increase to $54.8 million, and 7% earnings per share increase to $1.17. Revenue increased to a quarterly record of $254.46 million.
The improvements were driven by international crude-oil developments, particularly deepwater unconventional oil plays in North America and high-grading international unconventional plays. International revenue increased 13%, leading the industry.
The results came after Core Laboratories significantly raised its expectations for the fourth quarter on Oct. 17. Actual revenue for the quarter topped its estimate, while earnings per share came in at the top of the updated expected range.
Read more about Core Laboratories' history in its 10-year financials page .
For 2013, Core Laboratories is expecting robust Brent crude pricing and delivery of more deepwater drilling rigs that will enable it to further its existing work, branch out into new projects and offer new technologies and services related to deepwater fields and liquids-related unconventional reservoir developments.
The company has a P/E of 28.8, P/B of 27 and P/S of 6.5.
Increases
Westport Funds made increases to four other holdings during the quarter, which were Nordson Corp. ( NDSN ), Abbott Laboratories ( ABT ), Air Products & Chemicals international Inc. ( CRL ) and Charles River Laboratories International Inc.
Read more about the investing activities at Westport Funds in its portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Westport Asset Management.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Increases Westport Funds made increases to four other holdings during the quarter, which were Nordson Corp. ( NDSN ), Abbott Laboratories ( ABT ), Air Products & Chemicals international Inc. ( CRL ) and Charles River Laboratories International Inc. Read more about the investing activities at Westport Funds in its portfolio here. In Westport's fourth quarter letter , it commented on the investing environment heading into 2013: With the arrival of 2013 investors continue to face uncertainties in the form of Congressional battles over the federal budget, Europe's debt crisis, and slowing corporate earnings. The price surged on news reported by Bloomberg that hedge fund Jana Partners bought Copart shares in a bet that the company would become a real estate investment trust (REIT), under which it would not have to pay federal income taxes but would be required to return at least 90% of taxable earnings as dividends to shareholders. | Increases Westport Funds made increases to four other holdings during the quarter, which were Nordson Corp. ( NDSN ), Abbott Laboratories ( ABT ), Air Products & Chemicals international Inc. ( CRL ) and Charles River Laboratories International Inc. Read more about the investing activities at Westport Funds in its portfolio here. In fiscal year 2012, Copart earned $182 million in net come on $924 million in revenue, along with $146 million in free cash flow. New Buy: Core Laboratories N.V. ( CLB ) Westport funds commented in its fourth quarter letter about this company: "Finally, a new position was established in Core Laboratories N.V., a unique oil service company that provides reservoir management services and production enhancement when it experienced an earnings shortfall relative to expectations for third quarter results. | Increases Westport Funds made increases to four other holdings during the quarter, which were Nordson Corp. ( NDSN ), Abbott Laboratories ( ABT ), Air Products & Chemicals international Inc. ( CRL ) and Charles River Laboratories International Inc. Read more about the investing activities at Westport Funds in its portfolio here. New Buy: Core Laboratories N.V. ( CLB ) Westport funds commented in its fourth quarter letter about this company: "Finally, a new position was established in Core Laboratories N.V., a unique oil service company that provides reservoir management services and production enhancement when it experienced an earnings shortfall relative to expectations for third quarter results. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Westport Asset Management.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. | Increases Westport Funds made increases to four other holdings during the quarter, which were Nordson Corp. ( NDSN ), Abbott Laboratories ( ABT ), Air Products & Chemicals international Inc. ( CRL ) and Charles River Laboratories International Inc. Read more about the investing activities at Westport Funds in its portfolio here. Westport purchased 40,000 shares of Core Laboratories for $104 per share on average in the fourth quarter. The company has a P/E of 28.8, P/B of 27 and P/S of 6.5. |
34311.0 | 2013-02-05 00:00:00 UTC | Singulair Patent Loss Hits Merck's Earnings But International Growth Helps | ABT | https://www.nasdaq.com/articles/singulair-patent-loss-hits-mercks-earnings-international-growth-helps-2013-02-05 | nan | nan | Merck ( MRK ) announced its quarterly earnings for Q4 2012 last Friday, where it reported an expected decline in revenues. The drug maker recorded $11.7 billion in sales, down 5% year-over-year. Singulair's patent expiry was the major factor impacting overall pharmaceutical growth whereas growth in consumer healthcare and animal franchise remained strong. The strengthening of the U.S. dollar also weighed on revenues. Net income (excluding non-recurring items) declined by 15% to $2.5 billion.
We are updating our $49 price estimate for Merck, to reflect the earnings and recent developments.
Check out our complete analysis of Merck
Patent Cliff Hurts Revenues
Overall pharmaceutical revenues declined by 3%, excluding the currency impact. The growth in the Pharmaceutical division was largely hurt by the loss of U.S. patent exclusivity of Singulair in August. The drug has seen an accelerating decline in prescriptions since then as cheap generic versions continue to replace it has declined over 60% to near $500 million from $1.5 billion in Q4 2011.
Of the other major drugs, Vyotrin, a combination of Merck's own Zocor and Zetia to prevent cardiovascular events, also weighed on growth as U.S. prescriptions declined due to concerns around its efficacy. While the drug has proven to be effective in lowering cholesterol, there is little statistically significant evidence that it reduces chances of heart attacks, strokes and other cardiovascular problems and may not add major benefits to statins like Pfizer's ( PFE ) Lipitor, a conventional treatment for reducing cholesterol. However, the key point that came out ofearnings callis that data monitoring committee has requested interim analysis data of IMPROVE-IT, a large study that is being conducted to prove efficacy of Vyotrin, and any positive outcome there will put it on growth trajectory before June 2013, the current expected deadline of the study.
With double digit growth, mainly due to their expansion to new indications and a continued uptake in their demand, Januvia, Janumet and Gardasil were amongst the major growth drivers for the pharmaceuticals division. In February, Janumet, a once-daily treatment to control blood sugar, got the FDA approval for use in type 2 diabetes . Gardasil benefited from continued strong uptake in males while public sector purchasing, especially from emerging markets, also fueled growth. A decline in Istentress, due to weak sales in international market owing to timings of tenders, surprised us even as sales grew in the U.S. following FDA's approval for use in children older than 2 years for HIV therapy in January 2012.
As expected, Japan grew by an impressive 9% growth despite price cuts in 2012. Strong volume growth of Januvia, Gardasil and Zetia more than offset the pricing pressure in the country. Sales from emerging markets grew 8% and accounted for nearly 20% of total pharmaceutical sales in the Q4 2012 with China leading the international growth.
The animal health business, part of Legacy Pharma, Animal & Cons. Health division in our model, grew by healthy 6% y-o-y, excluding a 3% negative impact on foreign exchange. Sales were strong, particularly in the U.S. and Asia Pacific, on cattle and poultry products. Sales from consumer care also grew by robust 9% due to higher sales of certain OTC drugs. However, lower revenues of 23% from AstraZeneca LP as well as lower third-party manufacturing sales offset much of the growth in Legacy Pharma, Animal & Cons. Health division.
Gross Margins Decline
On the operational front, while gross profit margins declined due to change in product mix, we saw a reduction in marketing and administrative costs as well as R&D expenditures following management's cost cutting efforts.
What To Look Forward To In 2013?
Merck's 2013 earnings are expected to decline on account of lost sales due to the patent expiry for Singulair. Further, Temodar and Propecia, which collectively bring around $1 billion in sales, are set to see generic competition from 2013. Further, gross margins are also under pressure though we think this is already factored in Merck's share price and progress on new drugs will drive the stock price going forward.
Concerns have been raised as Merck decided to delay its blockbuster potential drug Odanacatib by 2014 and this could weigh on the stock in short term. However, the drug maker announced its plans for additional filings, including V503, a vaccine that targets certain HPV-associated cancers. In addition, it will seek approval for two allergy immunotherapy products, one for grass allergies and the other for ragweed allergies during 2013.
The drug maker is already awaiting FDA approval for Suvorexant and is confident of receiving the same in next few months. Further, after getting delayed in 2012, Atorvastatin/Ezetimibe combo should also receive approval during 2013. Any positive news here will drive the stock price of the company.
Submit a Post at Trefis Powered by Data and Interactive Charts | Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of the other major drugs, Vyotrin, a combination of Merck's own Zocor and Zetia to prevent cardiovascular events, also weighed on growth as U.S. prescriptions declined due to concerns around its efficacy. Gardasil benefited from continued strong uptake in males while public sector purchasing, especially from emerging markets, also fueled growth. Concerns have been raised as Merck decided to delay its blockbuster potential drug Odanacatib by 2014 and this could weigh on the stock in short term. | Singulair's patent expiry was the major factor impacting overall pharmaceutical growth whereas growth in consumer healthcare and animal franchise remained strong. Check out our complete analysis of Merck Patent Cliff Hurts Revenues Overall pharmaceutical revenues declined by 3%, excluding the currency impact. Of the other major drugs, Vyotrin, a combination of Merck's own Zocor and Zetia to prevent cardiovascular events, also weighed on growth as U.S. prescriptions declined due to concerns around its efficacy. | Of the other major drugs, Vyotrin, a combination of Merck's own Zocor and Zetia to prevent cardiovascular events, also weighed on growth as U.S. prescriptions declined due to concerns around its efficacy. A decline in Istentress, due to weak sales in international market owing to timings of tenders, surprised us even as sales grew in the U.S. following FDA's approval for use in children older than 2 years for HIV therapy in January 2012. Further, gross margins are also under pressure though we think this is already factored in Merck's share price and progress on new drugs will drive the stock price going forward. | The drug maker recorded $11.7 billion in sales, down 5% year-over-year. Merck's 2013 earnings are expected to decline on account of lost sales due to the patent expiry for Singulair. Further, gross margins are also under pressure though we think this is already factored in Merck's share price and progress on new drugs will drive the stock price going forward. |
34312.0 | 2013-02-04 00:00:00 UTC | Zacks #5 Rank Additions for Monday - Tale of the Tape | ABT | https://www.nasdaq.com/articles/zacks-5-rank-additions-for-monday-tale-of-the-tape-2013-02-04 | nan | nan | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today:
Abbott Laboratories ( ABT )
Acacia Research Corp ( ACTG )
Acuity Brands ( AYI )
Adobe Systems ( ADBE )
Aeropostale, Inc. ( ARO )
View the entire Zacks #5 Rank List .
ABBOTT LABS (ABT): Free Stock Analysis Report
ACACIA RES-TECH (ACTG): Free Stock Analysis Report
ADOBE SYSTEMS (ADBE): Free Stock Analysis Report
AEROPOSTALE INC (ARO): Free Stock Analysis Report
ACUITY BRANDS (AYI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acacia Research Corp ( ACTG ) Acuity Brands ( AYI ) Adobe Systems ( ADBE ) Aeropostale, Inc. ( ARO ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report ACACIA RES-TECH (ACTG): Free Stock Analysis Report ADOBE SYSTEMS (ADBE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acacia Research Corp ( ACTG ) Acuity Brands ( AYI ) Adobe Systems ( ADBE ) Aeropostale, Inc. ( ARO ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report ACACIA RES-TECH (ACTG): Free Stock Analysis Report ADOBE SYSTEMS (ADBE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBOTT LABS (ABT): Free Stock Analysis Report ACACIA RES-TECH (ACTG): Free Stock Analysis Report ADOBE SYSTEMS (ADBE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acacia Research Corp ( ACTG ) Acuity Brands ( AYI ) Adobe Systems ( ADBE ) Aeropostale, Inc. ( ARO ) View the entire Zacks #5 Rank List . | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acacia Research Corp ( ACTG ) Acuity Brands ( AYI ) Adobe Systems ( ADBE ) Aeropostale, Inc. ( ARO ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report ACACIA RES-TECH (ACTG): Free Stock Analysis Report ADOBE SYSTEMS (ADBE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
34313.0 | 2013-02-04 00:00:00 UTC | AbbVie Provides 2013 Outlook - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbvie-provides-2013-outlook-analyst-blog-2013-02-04 | nan | nan | AbbVie ( ABBV ) recently confirmed its sales figures for 2012 and provided guidance for 2013 as an independent company. AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ).
AbbVie said that excluding the negative impact of currency fluctuation (3%), pharmaceutical segment revenues grew more than 8% in the fourth quarter of 2012 despite the genericization of TriCor. Results were driven by Humira, AndroGel and Synthroid.
The company also provided first-time guidance for 2013. AbbVie expects to earn $3.03 - $3.13 per share in 2013 on total revenues of more than $18 billion. Currency movement is expected to negatively impact revenues by about 1%. Humira, which posted sales of $9.3 billion in 2012, up 16.7%, is expected to deliver low double-digit growth in 2013.
AbbVie expects to spend 14.5% of sales on R&D. SG&A spend is expected to be about 26% of sales.
First quarter 2013 earnings are expected in the range of 64 - 66 cents. Sales are slated to grow in low single digits despite the negative impact of generic competition for the lipid franchise.
We believe AbbVie is poised for strong growth. Humira should continue driving sales thanks to factors like additional indications, increasing penetration, geographic expansion, and share gains. New indications could boost peak sales potential for Humira by another $1.5 billion.
The pipeline also represents significant potential and AbbVie is targeting 15 regulatory approvals between 2013 and 2017. The company's late-stage pipeline includes 11 compounds or indications in phase III development targeting therapeutic areas like hepatitis C, immunology, multiple sclerosis, endometriosis and Parkinson's disease.
2013 and 2014 represent a transition period for the company which is facing generic competition for its lipid franchise - TriCor, TriLipix and Niaspan. The company expects 2013 sales from this franchise to decline by roughly $1.2 billion to less than $1 billion.
AbbVie currently carries a Zacks Rank #3 (Hold). While we are positive on the company's strong late-stage pipeline, dividend yield and growth strategy, we remain concerned about AbbVie's dependence on Humira. We believe the company will continue pursuing in-licensing deals and collaborations to boost its pipeline.
Large-cap companies that currently look more attractive include Sanofi ( SNY ) and Novo Nordisk ( NVO ). Both companies carry a Zacks Rank #2 (Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
NOVO-NORDISK AS (NVO): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie said that excluding the negative impact of currency fluctuation (3%), pharmaceutical segment revenues grew more than 8% in the fourth quarter of 2012 despite the genericization of TriCor. | ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). Sales are slated to grow in low single digits despite the negative impact of generic competition for the lipid franchise. | ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). The company expects 2013 sales from this franchise to decline by roughly $1.2 billion to less than $1 billion. | AbbVie came into existence earlier this year following its separation from Abbott Laboratories ( ABT ). ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie expects to earn $3.03 - $3.13 per share in 2013 on total revenues of more than $18 billion. |
34314.0 | 2013-02-01 00:00:00 UTC | Abbott Spin-Off AbbVie Pays Juicy Dividend | ABT | https://www.nasdaq.com/articles/abbott-spin-abbvie-pays-juicy-dividend-2013-02-01 | nan | nan | New issues are not typically known for paying juicy dividends, butAbbVie ( ABBV ) is an exception.
The former pharmaceuticals arm ofAbbott Laboratories ( ABT ) declared its inaugural dividend last month. AbbVie will pay 40 cents per share on Feb. 15 to shareholders as of Jan. 15.
On an annualized basis, AbbVie pays $1.60 a share, which works out to a yield of 4.4% vs. about 2.5% for the S&P 500. AbbVie has the third highest yield among the 15 dividend-paying stocks in IBD's Medical-Ethical Drugs industry group.
The company was recently added to the S&P 500 Dividend Aristocrats index, which tracks the performance of big-cap stocks that have paid increasing dividends for at least 25 years. Although AbbVie has just declared its first-ever dividend, it was added to the Dividend Aristocrats due to the S&P's treatment of spin-offs.
"We have a solid financial foundation including strong profitability and robust cash flow," said CEO Richard Gonzalez in a conference call on Jan. 30. "We have a commitment to return cash to shareholders including a strong and growing dividend."
CFO William J. Chase noted that growth in the company's dividend is expected to pick up when its pipeline of new drugs comes to market.
North Chicago, Ill.-based AbbVie spun off from Abbott Labs at the start of the year. While the parent company focuses on diagnostic systems, nutritional supplements and medical devices, AbbVie develops drugs for maladies such as hepatitis C, cancer and renal disease.
The firm's bread and butter product is Humira, which is used to treat rheumatoid arthritis, psoriasis and Crohn's disease. Sales of Humira hit nearly $9.3 billion in 2012, or about half of AbbVie's annual revenue. The company sees low double-digit percentage growth in Humira sales in 2013.
The company expects to earn between $3.03 and $3.13 a share in 2013, which is in line with Wall Street's expectations.
AbbVie doesn't have a long trading history and has yet to form its first base. The stock climbed as much as 10% from its $34.92 Jan. 2 opening price. But it has pulled back in recent sessions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 former pharmaceuticals arm ofAbbott Laboratories ( ABT ) declared its inaugural dividend last month. "We have a solid financial foundation including strong profitability and robust cash flow," said CEO Richard Gonzalez in a conference call on Jan. 30. While the parent company focuses on diagnostic systems, nutritional supplements and medical devices, AbbVie develops drugs for maladies such as hepatitis C, cancer and renal disease. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The former pharmaceuticals arm ofAbbott Laboratories ( ABT ) declared its inaugural dividend last month. "We have a commitment to return cash to shareholders including a strong and growing dividend." | The former pharmaceuticals arm ofAbbott Laboratories ( ABT ) declared its inaugural dividend last month. The company was recently added to the S&P 500 Dividend Aristocrats index, which tracks the performance of big-cap stocks that have paid increasing dividends for at least 25 years. Although AbbVie has just declared its first-ever dividend, it was added to the Dividend Aristocrats due to the S&P's treatment of spin-offs. | The former pharmaceuticals arm ofAbbott Laboratories ( ABT ) declared its inaugural dividend last month. AbbVie will pay 40 cents per share on Feb. 15 to shareholders as of Jan. 15. On an annualized basis, AbbVie pays $1.60 a share, which works out to a yield of 4.4% vs. about 2.5% for the S&P 500. |
34315.0 | 2013-01-30 00:00:00 UTC | Stock Market News for January 30, 2013 - Market News | ABT | https://www.nasdaq.com/articles/stock-market-news-for-january-30-2013-market-news-2013-01-30 | nan | nan | Better-than-expected quarterly results once again guided the S&P 500 and the Dow Jones into the green on Tuesday. Strong earnings created a positive sentiment, lifting the blue-chip index to its highest level in more than five years. The consumer confidence index for January declined to a new low in the past one year. The consumer discretionary sector was the only loser among the S&P industry groups, while the energy sector was the biggest gainer.
The Dow Jones Industrial Average (DJI) gained 0.5% to close the day at 13,954.42. The S&P 500 increased 0.5% to finish yesterday's trading session at 1,507.84. The tech-laden Nasdaq Composite Index slipped 0.02% to end at 3,153.66. The fear-gauge CBOE Volatility Index (VIX) decreased 1.9% to settle at 13.31. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 6.4 billion shares, marginally lower than the daily average of 6.45 billion shares in 2012. Advancing stocks outnumbered decliners on the NYSE; as for 59% stocks that rose, 38% moved down.
Shares of Pfizer Inc. (NYSE: PFE ) surged 3.2% following its robust quarterly results. Earnings of the company increased four times from the year-ago period. The fourth quarter earnings jumped due to strong sales of its nutrition business along with cost cutting within the company. For fiscal 2013, the company has projected profit of $2.30 per share in anticipation of earning $1 billion a year from two of its newly introduced products. This forecast is higher than the Street's estimates for fiscal 2013. Another drug making company, Eli Lilly & Co. (NYSE: LLY ) posted strong quarterly earnings following which the shares rose 3.2%. The fourth quarter earnings surpassed the Street's estimate.
Health Care SPDR (XLV) rose 1.1% following strong quarterly results from the health care sector. Stocks such as Abbott Laboratories (NYSE: ABT ), Johnson & Johnson (NYSE: JNJ ), Mylan Inc. (NASDAQ: MYL ), Bristol Myers Squibb Co. (NYSE: BMY ) and Merck & Co. Inc. (NYSE: MRK ) gained 1.0%, 1.1%, 0.1%, 0.4% and 1.7%, respectively.
Refinery operator, Valero Energy Corporation (NYSE: VLO ) posted strong fourth quarter results following which the shares jumped almost 12.8%. Valero registered profit of $1 billion, more than 20 times the year-ago profit and ahead of the Streets expectation. The company's profits came on the back of high margins by exchanging foreign crude with low-priced domestic oil.
The energy sector enjoyed a decent gain and emerged as the biggest gainer among the S&P 500 industry groups. The Energy Select Sector SPDR (XLE) gained 1.6%. Stocks such as Exxon Mobil Corporation (NYSE: XOM ), Chevron Corporation (NYSE: CVX ), Marathon Oil Corporation (NYSE: MRO ) and Hess Corp. (NYSE: HES ) added 0.7%, 1.0%, 1.2% and 9.0%, respectively.
Separately, the S&P Dow Jones Indices released the S&P/Case-Shiller Home Price Indices, which noted that home prices for the 10-City Composite and 20-City Composite slipped 0.2% and 0.1%, respectively in November. But for both 10-City Composite and 20-City Composite home prices have increased 4.5% and 5.5% annually. Home prices have increased annually in all 19 cities except New York from November 2011.
Meanwhile, the consumer confidence index declined in January to its lowest level since November 2011 due to the imposition of tax on American citizens and their skepticism in the US economy. According to the report, the consumer confidence index fell sharply to 58.6 in January from 66.7 in December. This was well below the consensus estimate of 65.1. The expectation index decreased to 59.5 from 68.1 while the present index declined to 57.3 in January from 64.6 in December.
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
HESS CORP (HES): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
VALERO ENERGY (VLO): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks such as Abbott Laboratories (NYSE: ABT ), Johnson & Johnson (NYSE: JNJ ), Mylan Inc. (NASDAQ: MYL ), Bristol Myers Squibb Co. (NYSE: BMY ) and Merck & Co. Inc. (NYSE: MRK ) gained 1.0%, 1.1%, 0.1%, 0.4% and 1.7%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HESS CORP (HES): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALERO ENERGY (VLO): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Another drug making company, Eli Lilly & Co. (NYSE: LLY ) posted strong quarterly earnings following which the shares rose 3.2%. | Stocks such as Abbott Laboratories (NYSE: ABT ), Johnson & Johnson (NYSE: JNJ ), Mylan Inc. (NASDAQ: MYL ), Bristol Myers Squibb Co. (NYSE: BMY ) and Merck & Co. Inc. (NYSE: MRK ) gained 1.0%, 1.1%, 0.1%, 0.4% and 1.7%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HESS CORP (HES): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALERO ENERGY (VLO): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as Exxon Mobil Corporation (NYSE: XOM ), Chevron Corporation (NYSE: CVX ), Marathon Oil Corporation (NYSE: MRO ) and Hess Corp. (NYSE: HES ) added 0.7%, 1.0%, 1.2% and 9.0%, respectively. | Stocks such as Abbott Laboratories (NYSE: ABT ), Johnson & Johnson (NYSE: JNJ ), Mylan Inc. (NASDAQ: MYL ), Bristol Myers Squibb Co. (NYSE: BMY ) and Merck & Co. Inc. (NYSE: MRK ) gained 1.0%, 1.1%, 0.1%, 0.4% and 1.7%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HESS CORP (HES): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALERO ENERGY (VLO): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Separately, the S&P Dow Jones Indices released the S&P/Case-Shiller Home Price Indices, which noted that home prices for the 10-City Composite and 20-City Composite slipped 0.2% and 0.1%, respectively in November. | Stocks such as Abbott Laboratories (NYSE: ABT ), Johnson & Johnson (NYSE: JNJ ), Mylan Inc. (NASDAQ: MYL ), Bristol Myers Squibb Co. (NYSE: BMY ) and Merck & Co. Inc. (NYSE: MRK ) gained 1.0%, 1.1%, 0.1%, 0.4% and 1.7%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report HESS CORP (HES): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MARATHON OIL CP (MRO): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VALERO ENERGY (VLO): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Another drug making company, Eli Lilly & Co. (NYSE: LLY ) posted strong quarterly earnings following which the shares rose 3.2%. |
34316.0 | 2013-01-29 00:00:00 UTC | MedTech Industry Stock Outlook - Jan 2013 - Industry Outlook | ABT | https://www.nasdaq.com/articles/medtech-industry-stock-outlook-jan-2013-industry-outlook-2013-01-29 | nan | nan | We are in the midst of the fourth quarter earnings season and it is once again time to review the players in the worldwide medical devices market. The US still holds the leading position with almost one-third of the market share. However, emerging economies like Brazil, Russia, India and China - collectively known as the BRICs - are fast coming up in the medical devices space and are attracting a lot of attention.
These emerging economies are seeing an increasing uptake of medical devices due largely to growing medical awareness and economic prosperity. Expansion in emerging markets, especially those with double-digit annual growth rates, represents one of the best potential avenues for growth in 2013 and beyond.
On the flip side, the MedTech industry is currently plagued by several issues including the 2.3% medical device excise tax, pricing concerns, hospital admission and procedural volume pressures, Medicare reimbursement issues and regulatory overhang. Percutaneous intervention (angioplasty) volumes continue to be relatively flat in the US, Japan and Europe, with improvement not expected anytime soon.
In spite of several uncertainties resulting in constrained capital spending, the past year also witnessed significant M&A deals including acquisitions of Switzerland-based Synthes Inc. by Johnson & Johnson ( JNJ ) for a whopping $19.7 billion, Gen-Probe Inc. by Hologic ( HOLX ) for $3.8 billion and Agilent Technologies' ( A ) acquisition of Danish cancer diagnostics company Dako for $2.2 billion.
Another trend that we have been observing of late is the divestment of non-core business segments. For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner.
In January, diagnostic testing company Quest Diagnostics ( DGX ) divested its OralDNA Labs salivary-diagnostics business to Access Genetics. The sale of the company's HemoCue diagnostic products business is also in the works. This would enable the company to refocus its attention on its core diagnostic information services. Moreover, Johnson & Johnson is currently looking for opportunities to sell or spin off its Ortho Clinical Diagnostics business.
In November last year, Becton, Dickinson and Company ( BDX ) divested its Discovery Labware sub-segment (excluding Advanced Bioprocessing capability) to Corning ( GLW ) for $730 million. In May, Smith & Nephew ( SNN ), through an agreement with Essex Woodlands, completed the disposal of its Clinical Therapies business, to the newly formed Bioventus LLC, in which it will retain a 49% investment. Healthcare products maker Covidien ( COV ) is on track to spin off its pharmaceuticals business into a standalone public company by mid-2013.
Earnings Numbers
Before getting into the core discussion, let us brief some of the significant earnings releases so far. Johnson & Johnson's fourth quarter 2012 earnings came ahead of expectations, though revenues were just shy of the Zacks Consensus Estimate.
Another medical device major St. Jude Medical's ( STJ ) fourth-quarter earnings and revenue came ahead of expectations. The still-choppy U.S. defibrillator market remains an overhang on St. Jude and we expect the same to affect the performance of its peers Boston Scientific ( BSX ) and Medtronic ( MDT ), though Boston Scientific's results earlier today came inline with expectations.
Other major earnings reports by industry players include the earnings and revenue beats by Stryker Corporation ( SYK ) and positive earnings surprise but a revenue miss from Quest Diagnostics. We believe that the overall soft industry trends leading to low volume growth was a dampener for Quest. We expect this challenging scenario to adversely affect Quest Diagnostics' peer Laboratory Corporation of America ( LH ) as well, which is scheduled to release its fourth-quarter and fiscal 2012 results on Feb 8, 2013.
A look at the Zacks Earnings ESP (Expected Surprise Prediction - read: Zacks Earnings ESP: A Better Method ) in the table below shows that companies like Becton Dickinson and Hologic are likely to beat the Zacks Consensus Estimate this quarter.
M&A Activity
Wary of an uncertain economy, MedTech companies have resorted to the acquisition route to harness their strength and diversify their offerings.
Apart from the massive takeovers by Johnson & Johnson, the other major deals inked in recent times in the MedTech space include six successive acquisitions by Covidien exceeding $1.2 billion. In late December the company again entered into a definitive agreement to acquire Fremont, California-based medical device company, CV Ingenuity.
After strengthening its Cardiac Rhythm Management (CRM) portfolio with the acquisition of Cameron Health, Boston Scientific recently purchased Rhythmia Medical in Massachusetts and Minnesota-based BridgePoint Medical (in October). While the former strengthens the company's foothold in the rapidly growing electrophysiology ablation business, the latter brings in a catheter-based system to treat coronary chronic total occlusion. Moreover, the company currently plans to acquire Vessix Vascular, which has developed the percutaneous radiofrequency balloon catheter technology for the treatment of hypertension.
AngioDynamics ( ANGO ) continues to expand its base on the back of acquisitions and strategic alliances. The latest in its kitty, the Navilyst acquisition will effectively double the company's existing market share in the vascular access market.
In Nov 2012, the neurovascular division of Stryker acquired Surpass Medical (for $135 million) to expand its Complete Stroke Care portfolio. Surpass' mainstay, the CE-Marked NeuroEndoGraft family of flow diverters is an attractive addition to the company's product line.
In order to expand into the large and lucrative market for drug-coated balloons, C.R. Bard ( BCR ) purchased Lutonix Inc. in December. The worldwide peripheral vascular market for drug-coated balloons is forecast to hit roughly $1 billion annually over the next ten years. Further, the acquisition of Neomend will allow Bard to expand into another $1 billion market for surgical specialties offerings.
Low global penetration and demand outstripping supply provide a positive long-term thesis for investing in the blood processing and supply chain management industry. With the acquisition of the transfusion medicine business of Pall Corporation ( PLL ), Haemonetics ( HAE ) has entered the $1.2 billion whole blood collection market. Haemonetics is also in the process of acquiring Hemerus Medical that develops technologies for the collection of whole blood, and processing and storage of blood components. The acquisition is expected to close in 2014.
Also noteworthy is women's health giant Hologic's acquisition of Gen-Probe in August. In addition, Cooper Companies ( COO ), a global medical products player acquired Denmark-based Origio to beef up its women's health franchise.
Trends over the recent past reflect focus on the diagnostics space. A prime example is that of Agilent Technologies entering into the Diagnostics and Genomics space through the acquisition of cancer diagnostic company Dako. The acquisition is intended to augment Agilent's portfolio and build aglobal marketshare to better fight its major peers, especially Teradyne ( TER ), Thermo Fisher Scientific, Inc. ( TMO ) and Danaher Corp. ( DHR ) in this space.
In November, Danaher acquired IRIS International, a leading manufacturer of automated in-vitro diagnostics systems and consumables and a provider of high-value personalized medicine solutions.
While Thermo Fisher Scientific strengthened its Specialty Diagnostics business with the acquisition of One Lambda, a leading player in the field of transplant diagnostics, Life Technologies' ( LIFE ) three recent tuck-in acquisitions -- Compendia Bioscience, Navigenics and Pinpoint Genomics -- will bolster its diagnostics franchise. Moreover, Life Technologies has several agreements with pharmaceutical players such as Bristol-Myers Squibb ( BMY ) to shore up its companion diagnostics franchise.
In the light of the discussion above, 2012 has thus been a big year for mergers and acquisitions in the MedTech space. According to the American Council for Capital Formation's (ACCF) report, effective Jan 2013, capital gains tax rate increased to 20% from 15% earlier. The MedTech giants, being fully aware of this expected increase, accelerated their acquisition strategy in 2012.
Despite the bleak prognosis, we do not expect the M&A trend to slacken going forward. We expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. Several MedTech majors struggling in their core businesses are looking to explore potential emerging therapies through collaborations and alliances.
Emerging Markets
Another avenue of growth for the MedTechs is the huge untapped potential of the emerging markets. An aging population, rise in wealth, government focus on healthcare infrastructure and expansion of medical insurance coverage make these markets a happy hunting ground for global medical device players.
The focus on emerging markets is all the more significant given the saturation and uncertain growth in the developed markets of US, Europe and Japan. Companies like Medtronic, Boston Scientific, Thermo Fisher Scientific and Life Technologies are all vying to expand their presence in the BRICs and other emerging markets. These companies are also looking to establish their manufacturing facilities abroad.
According to a recent McKinsey & Co. report, health-care spending in China has more than doubled from $156 billion in 2006 to $357 billion in 2011. It is expected to grow to $1 trillion by 2020. China is also setting up proper health insurance coverage that should boost the healthcare sector. It is expected that within the next decade, China will be the biggest healthcare market in the world, outpacing the US.
Among the other BRIC members, Brazil is currently the largest health care market in Latin America, covering almost one-fourth of the population. Though India has one of the largest and fastest growing health-care markets in the world, it is considered to have the least developed health-care infrastructure and spends relatively little on health care. In order to reverse the trend, during the 12th Plan (2012-2017), the Indian government planned to spend 2.5% of its GDP (up from 1.2% earlier) on healthcare and raise it to at least 3% by 2022.
Given the huge potential in these regions, Johnson & Johnson has set up manufacturing and R&D centers in Brazil, China and India. While it has been doing business in China for more than 25 years, it established a new innovation center in the country in 2011. The Guangzhou Bioseal Biotech deal marked the company's first MedTech acquisition in China. The company is expected to expand further in China on the back of the Synthes acquisition.
Medtronic, on the other hand, is targeting 20% of its revenues from emerging markets by fiscal 2015−16. After setting up its Innovation Center in Shanghai, the first outside the US and Europe, last September, the company decided to acquire China Kanghui Holdings for $816 million. The acquisition would strengthen its orthopedic franchise in the country.
Boston Scientific is aiming to increase its below-average market share in the $700 million combined drug-eluting stent market in China and India, which is growing sharply at 20%. The company plans to invest $150 million in China over the next 5 years to build a local manufacturing operation.
Life Technologies expects emerging markets to contribute $1.6 billion to revenues in 2015, up from just $188 million in 2007, representing a CAGR of 30%. In the third quarter of 2012, the company acquired Genewindows, a distributor covering the Invitrogen brand reagent portfolio. In October 2012, the company entered into a strategic partnership with Sino Biological, a Chinese biotechnology company and a license and supply agreement with Singapore based VelaDx.
Thermo Fisher is also expanding its presence in emerging markets. It expects to garner 25% of total revenues from the high-growth Asia-Pacific region and emerging markets by 2016, up from 19% in 2011 and 10% in 2006.
Healthcare Reform: MedTech Tax Woes
The Government-mandated health care reform in the US - the Patient Protection & Affordable Care Act (aka "ObamaCare") - has already started impacting the financial results of medical device companies. The reform has led to a less flexible pricing environment for these companies and has increased pricing pressure across the board. As per the mandate, beginning 2013, device makers will have to pay this tax on sales of certain products.
With the first tax installment due by the end of this month, many of the nation's medical devices players are bracing themselves for the impact of this tax. The companies are either trying to relocate outside the US or reduce operations in order to weather the 2.3% tax burden. They are undertaking various restructuring initiatives to counter costs associated with the implementation of the new tax.
Earlier this month, the Medical Device Manufacturers Association (MDMA) released a statement expressing its disappointment with the failure to repeal the medical device tax in the fiscal cliff deal. According to the MDMA, the outlay has already been felt across the country in the form of an adverse impact on R&D investment, job cuts and higher prices for customers impacting the overall quality of patient care.
OPPORTUNITIES
We continue to have a Neutral outlook on large-cap medical device stocks. While the companies will keep facing challenges like pricing pressures, declines in procedural volume from economic uncertainties and sluggish growth in the CRM business, increased M&A activities, focus on emerging markets and product approvals in latent areas could help reduce the impact. Better pipeline visibility and appropriate utilization of cash should increase confidence in the medical device sector.
Zacks Rank #2 (Buy) stocks in the MedTech sector include Johnson & Johnson ( JNJ ) and Edwards Lifesciences ( EW ) among others. In our universe, we see growth potential in companies dealing with promising technologies. In this respect, both these companies represent a value proposition.
In spite of several core market challenges, the big three medical device players -- Medtronic, Boston Scientific and St. Jude Medical ( STJ ) -- are striving to gain share in the ICD market through several new product launches. The big three are also exploring new avenues of growth beyond the mature pacemaker and ICD markets. With gradual stability in the ICD market, they should be able to revive their top line.
Beyond the MedTech majors, we are optimistic about the Zacks #2 Ranked orthopedic devices player Zimmer Holdings Inc. ( ZMH ). The percentage of the population over age 65 in the US, Europe, Japan and other regions is expected to nearly double by the year 2030.
In the US, the oldest baby boomers are now approaching retirement age. We believe the orthopedic giants will stand to benefit from this aging demography.
Among the scientific instrument makers, Thermo Fisher Scientific ( TMO ), a Zacks Rank #2 stock, has been successfully expanding operating margins over the past few quarters on the back of operational efficiency. Its rival Life Technologies ( LIFE ) has the same rank based on its strong position in the life sciences market and momentum of its Ion Torrent franchise.
We are also positive on Cooper Companies ( COO ), another Zacks Rank #2 stock, based on factors such as margin expansion, acquisitions, product line expansion and geographical reach as well as share buybacks.
CHALLENGES AND WEAKNESSES
Apart from the medical devices excise tax discussed earlier, the US medical device industry is facing several challenges in the form of depressed volumes, pricing pressure, currency headwinds and a complicated regulatory system.
While the debt crisis in Europe remains unresolved, economies throughout the world are trying to come to terms with myriad challenges. Consequently, procedural volumes in the US have been hit by a high unemployment rate, which has resulted in the expiry of health insurance as well as a decline in enrollment in private health plans.
Governments across several European countries have taken up measures to curb spending on devices, which is taking a toll on utilization. Volume headwind is likely to linger as unemployment continues to influence procedure deferrals.
Players in the medical device space are also experiencing pricing pressure of varying degrees. Companies are witnessing global pricing pressure in the CRM business and in some cases in stents. Adding to the risk is the foreign exchange headwind (stemming from the strengthening of the US dollar) as medical device companies derive a chunk of revenues from overseas markets. Medical device makers are also expected to contend with margin pressure given the sustained pricing headwind.
Last but not least, the highly regulated US medical device industry is hampered by stringent and complex procedures leading to approval delays. This sometimes demotivates companies, deterring them from investing in product development. In fact, according to a report based on a survey of over 200 medical technology companies, the US FDA takes a significantly high time to review compared to its European counterpart.
Coming to the weakest link in the MedTech sector, we recommend avoiding names that offer little growth/opportunity over the near term. These include companies for which estimate revision trends for 2012 and 2013 reflect a bearish sentiment. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. All these companies carry a Zacks Rank #5 (Strong Sell). Also, cloud-based services provider athenahealth Inc. ( ATHN ) currently retains a Zacks Rank #5 as doubts linger around its proposed acquisition of Epocrates Inc. ( EPOC ).
Further, pricing compressions on hips, knees and spine products, which impaired the performances of several orthopedic companies, remain a key concern, at the macro level. We remain skeptical about companies including Wright Medical Group ( WMGI ).
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
VERTEX PHARM (VRTX): Free Stock Analysis Report
(WPI): ETF Research Reports
DENTSPLY INTL (XRAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report (WPI): ETF Research Reports DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report (WPI): ETF Research Reports DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report (WPI): ETF Research Reports DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. | For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report (WPI): ETF Research Reports DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. |
34317.0 | 2013-01-29 00:00:00 UTC | MedTech Industry Stock Outlook - Jan 2013 - Zacks Analyst Interviews | ABT | https://www.nasdaq.com/articles/medtech-industry-stock-outlook-jan-2013-zacks-analyst-interviews-2013-01-29 | nan | nan | We are in the midst of the fourth quarter earnings season and it is once again time to review the players in the worldwide medical devices market. The US still holds the leading position with almost one-third of the market share. However, emerging economies like Brazil, Russia, India and China - collectively known as the BRICs - are fast coming up in the medical devices space and are attracting a lot of attention.
These emerging economies are seeing an increasing uptake of medical devices due largely to growing medical awareness and economic prosperity. Expansion in emerging markets, especially those with double-digit annual growth rates, represents one of the best potential avenues for growth in 2013 and beyond.
On the flip side, the MedTech industry is currently plagued by several issues including the 2.3% medical device excise tax, pricing concerns, hospital admission and procedural volume pressures, Medicare reimbursement issues and regulatory overhang. Percutaneous intervention (angioplasty) volumes continue to be relatively flat in the US, Japan and Europe, with improvement not expected anytime soon.
In spite of several uncertainties resulting in constrained capital spending, the past year also witnessed significant M&A deals including acquisitions of Switzerland-based Synthes Inc. by Johnson & Johnson ( JNJ ) for a whopping $19.7 billion, Gen-Probe Inc. by Hologic ( HOLX ) for $3.8 billion and Agilent Technologies' ( A ) acquisition of Danish cancer diagnostics company Dako for $2.2 billion.
Another trend that we have been observing of late is the divestment of non-core business segments. For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner.
In January, diagnostic testing company Quest Diagnostics ( DGX ) divested its OralDNA Labs salivary-diagnostics business to Access Genetics. The sale of the company's HemoCue diagnostic products business is also in the works. This would enable the company to refocus its attention on its core diagnostic information services. Moreover, Johnson & Johnson is currently looking for opportunities to sell or spin off its Ortho Clinical Diagnostics business.
In November last year, Becton, Dickinson and Company ( BDX ) divested its Discovery Labware sub-segment (excluding Advanced Bioprocessing capability) to Corning ( GLW ) for $730 million. In May, Smith & Nephew ( SNN ), through an agreement with Essex Woodlands, completed the disposal of its Clinical Therapies business, to the newly formed Bioventus LLC, in which it will retain a 49% investment. Healthcare products maker Covidien ( COV ) is on track to spin off its pharmaceuticals business into a standalone public company by mid-2013.
Earnings Numbers
Before getting into the core discussion, let us brief some of the significant earnings releases so far. Johnson & Johnson's fourth quarter 2012 earnings came ahead of expectations, though revenues were just shy of the Zacks Consensus Estimate.
Another medical device major St. Jude Medical's ( STJ ) fourth-quarter earnings and revenue came ahead of expectations. The still-choppy U.S. defibrillator market remains an overhang on St. Jude and we expect the same to affect the performance of its peers Boston Scientific ( BSX ) and Medtronic ( MDT ), though Boston Scientific's results earlier today came inline with expectations.
Other major earnings reports by industry players include the earnings and revenue beats by Stryker Corporation ( SYK ) and positive earnings surprise but a revenue miss from Quest Diagnostics. We believe that the overall soft industry trends leading to low volume growth was a dampener for Quest. We expect this challenging scenario to adversely affect Quest Diagnostics' peer Laboratory Corporation of America ( LH ) as well, which is scheduled to release its fourth-quarter and fiscal 2012 results on Feb 8, 2013.
A look at the Zacks Earnings ESP (Expected Surprise Prediction - read: Zacks Earnings ESP: A Better Method ) in the table below shows that companies like Becton Dickinson and Hologic are likely to beat the Zacks Consensus Estimate this quarter.
M&A Activity
Wary of an uncertain economy, MedTech companies have resorted to the acquisition route to harness their strength and diversify their offerings.
Apart from the massive takeovers by Johnson & Johnson, the other major deals inked in recent times in the MedTech space include six successive acquisitions by Covidien exceeding $1.2 billion. In late December the company again entered into a definitive agreement to acquire Fremont, California-based medical device company, CV Ingenuity.
After strengthening its Cardiac Rhythm Management (CRM) portfolio with the acquisition of Cameron Health, Boston Scientific recently purchased Rhythmia Medical in Massachusetts and Minnesota-based BridgePoint Medical (in October). While the former strengthens the company's foothold in the rapidly growing electrophysiology ablation business, the latter brings in a catheter-based system to treat coronary chronic total occlusion. Moreover, the company currently plans to acquire Vessix Vascular, which has developed the percutaneous radiofrequency balloon catheter technology for the treatment of hypertension.
AngioDynamics ( ANGO ) continues to expand its base on the back of acquisitions and strategic alliances. The latest in its kitty, the Navilyst acquisition will effectively double the company's existing market share in the vascular access market.
In Nov 2012, the neurovascular division of Stryker acquired Surpass Medical (for $135 million) to expand its Complete Stroke Care portfolio. Surpass' mainstay, the CE-Marked NeuroEndoGraft family of flow diverters is an attractive addition to the company's product line.
In order to expand into the large and lucrative market for drug-coated balloons, C.R. Bard ( BCR ) purchased Lutonix Inc. in December. The worldwide peripheral vascular market for drug-coated balloons is forecast to hit roughly $1 billion annually over the next ten years. Further, the acquisition of Neomend will allow Bard to expand into another $1 billion market for surgical specialties offerings.
Low global penetration and demand outstripping supply provide a positive long-term thesis for investing in the blood processing and supply chain management industry. With the acquisition of the transfusion medicine business of Pall Corporation ( PLL ), Haemonetics ( HAE ) has entered the $1.2 billion whole blood collection market. Haemonetics is also in the process of acquiring Hemerus Medical that develops technologies for the collection of whole blood, and processing and storage of blood components. The acquisition is expected to close in 2014.
Also noteworthy is women's health giant Hologic's acquisition of Gen-Probe in August. In addition, Cooper Companies ( COO ), a global medical products player acquired Denmark-based Origio to beef up its women's health franchise.
Trends over the recent past reflect focus on the diagnostics space. A prime example is that of Agilent Technologies entering into the Diagnostics and Genomics space through the acquisition of cancer diagnostic company Dako. The acquisition is intended to augment Agilent's portfolio and build aglobal marketshare to better fight its major peers, especially Teradyne ( TER ), Thermo Fisher Scientific, Inc. ( TMO ) and Danaher Corp. ( DHR ) in this space.
In November, Danaher acquired IRIS International, a leading manufacturer of automated in-vitro diagnostics systems and consumables and a provider of high-value personalized medicine solutions.
While Thermo Fisher Scientific strengthened its Specialty Diagnostics business with the acquisition of One Lambda, a leading player in the field of transplant diagnostics, Life Technologies' ( LIFE ) three recent tuck-in acquisitions -- Compendia Bioscience, Navigenics and Pinpoint Genomics -- will bolster its diagnostics franchise. Moreover, Life Technologies has several agreements with pharmaceutical players such as Bristol-Myers Squibb ( BMY ) to shore up its companion diagnostics franchise.
In the light of the discussion above, 2012 has thus been a big year for mergers and acquisitions in the MedTech space. According to the American Council for Capital Formation's (ACCF) report, effective Jan 2013, capital gains tax rate increased to 20% from 15% earlier. The MedTech giants, being fully aware of this expected increase, accelerated their acquisition strategy in 2012.
Despite the bleak prognosis, we do not expect the M&A trend to slacken going forward. We expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. Several MedTech majors struggling in their core businesses are looking to explore potential emerging therapies through collaborations and alliances.
Emerging Markets
Another avenue of growth for the MedTechs is the huge untapped potential of the emerging markets. An aging population, rise in wealth, government focus on healthcare infrastructure and expansion of medical insurance coverage make these markets a happy hunting ground for global medical device players.
The focus on emerging markets is all the more significant given the saturation and uncertain growth in the developed markets of US, Europe and Japan. Companies like Medtronic, Boston Scientific, Thermo Fisher Scientific and Life Technologies are all vying to expand their presence in the BRICs and other emerging markets. These companies are also looking to establish their manufacturing facilities abroad.
According to a recent McKinsey & Co. report, health-care spending in China has more than doubled from $156 billion in 2006 to $357 billion in 2011. It is expected to grow to $1 trillion by 2020. China is also setting up proper health insurance coverage that should boost the healthcare sector. It is expected that within the next decade, China will be the biggest healthcare market in the world, outpacing the US.
Among the other BRIC members, Brazil is currently the largest health care market in Latin America, covering almost one-fourth of the population. Though India has one of the largest and fastest growing health-care markets in the world, it is considered to have the least developed health-care infrastructure and spends relatively little on health care. In order to reverse the trend, during the 12th Plan (2012-2017), the Indian government planned to spend 2.5% of its GDP (up from 1.2% earlier) on healthcare and raise it to at least 3% by 2022.
Given the huge potential in these regions, Johnson & Johnson has set up manufacturing and R&D centers in Brazil, China and India. While it has been doing business in China for more than 25 years, it established a new innovation center in the country in 2011. The Guangzhou Bioseal Biotech deal marked the company's first MedTech acquisition in China. The company is expected to expand further in China on the back of the Synthes acquisition.
Medtronic, on the other hand, is targeting 20% of its revenues from emerging markets by fiscal 2015−16. After setting up its Innovation Center in Shanghai, the first outside the US and Europe, last September, the company decided to acquire China Kanghui Holdings for $816 million. The acquisition would strengthen its orthopedic franchise in the country.
Boston Scientific is aiming to increase its below-average market share in the $700 million combined drug-eluting stent market in China and India, which is growing sharply at 20%. The company plans to invest $150 million in China over the next 5 years to build a local manufacturing operation.
Life Technologies expects emerging markets to contribute $1.6 billion to revenues in 2015, up from just $188 million in 2007, representing a CAGR of 30%. In the third quarter of 2012, the company acquired Genewindows, a distributor covering the Invitrogen brand reagent portfolio. In October 2012, the company entered into a strategic partnership with Sino Biological, a Chinese biotechnology company and a license and supply agreement with Singapore based VelaDx.
Thermo Fisher is also expanding its presence in emerging markets. It expects to garner 25% of total revenues from the high-growth Asia-Pacific region and emerging markets by 2016, up from 19% in 2011 and 10% in 2006.
Healthcare Reform: MedTech Tax Woes
The Government-mandated health care reform in the US - the Patient Protection & Affordable Care Act (aka "ObamaCare") - has already started impacting the financial results of medical device companies. The reform has led to a less flexible pricing environment for these companies and has increased pricing pressure across the board. As per the mandate, beginning 2013, device makers will have to pay this tax on sales of certain products.
With the first tax installment due by the end of this month, many of the nation's medical devices players are bracing themselves for the impact of this tax. The companies are either trying to relocate outside the US or reduce operations in order to weather the 2.3% tax burden. They are undertaking various restructuring initiatives to counter costs associated with the implementation of the new tax.
Earlier this month, the Medical Device Manufacturers Association (MDMA) released a statement expressing its disappointment with the failure to repeal the medical device tax in the fiscal cliff deal. According to the MDMA, the outlay has already been felt across the country in the form of an adverse impact on R&D investment, job cuts and higher prices for customers impacting the overall quality of patient care.
OPPORTUNITIES
We continue to have a Neutral outlook on large-cap medical device stocks. While the companies will keep facing challenges like pricing pressures, declines in procedural volume from economic uncertainties and sluggish growth in the CRM business, increased M&A activities, focus on emerging markets and product approvals in latent areas could help reduce the impact. Better pipeline visibility and appropriate utilization of cash should increase confidence in the medical device sector.
Zacks Rank #2 (Buy) stocks in the MedTech sector include Johnson & Johnson ( JNJ ) and Edwards Lifesciences ( EW ) among others. In our universe, we see growth potential in companies dealing with promising technologies. In this respect, both these companies represent a value proposition.
In spite of several core market challenges, the big three medical device players -- Medtronic, Boston Scientific and St. Jude Medical ( STJ ) -- are striving to gain share in the ICD market through several new product launches. The big three are also exploring new avenues of growth beyond the mature pacemaker and ICD markets. With gradual stability in the ICD market, they should be able to revive their top line.
Beyond the MedTech majors, we are optimistic about the Zacks #2 Ranked orthopedic devices player Zimmer Holdings Inc. ( ZMH ). The percentage of the population over age 65 in the US, Europe, Japan and other regions is expected to nearly double by the year 2030.
In the US, the oldest baby boomers are now approaching retirement age. We believe the orthopedic giants will stand to benefit from this aging demography.
Among the scientific instrument makers, Thermo Fisher Scientific ( TMO ), a Zacks Rank #2 stock, has been successfully expanding operating margins over the past few quarters on the back of operational efficiency. Its rival Life Technologies ( LIFE ) has the same rank based on its strong position in the life sciences market and momentum of its Ion Torrent franchise.
We are also positive on Cooper Companies ( COO ), another Zacks Rank #2 stock, based on factors such as margin expansion, acquisitions, product line expansion and geographical reach as well as share buybacks.
CHALLENGES AND WEAKNESSES
Apart from the medical devices excise tax discussed earlier, the US medical device industry is facing several challenges in the form of depressed volumes, pricing pressure, currency headwinds and a complicated regulatory system.
While the debt crisis in Europe remains unresolved, economies throughout the world are trying to come to terms with myriad challenges. Consequently, procedural volumes in the US have been hit by a high unemployment rate, which has resulted in the expiry of health insurance as well as a decline in enrollment in private health plans.
Governments across several European countries have taken up measures to curb spending on devices, which is taking a toll on utilization. Volume headwind is likely to linger as unemployment continues to influence procedure deferrals.
Players in the medical device space are also experiencing pricing pressure of varying degrees. Companies are witnessing global pricing pressure in the CRM business and in some cases in stents. Adding to the risk is the foreign exchange headwind (stemming from the strengthening of the US dollar) as medical device companies derive a chunk of revenues from overseas markets. Medical device makers are also expected to contend with margin pressure given the sustained pricing headwind.
Last but not least, the highly regulated US medical device industry is hampered by stringent and complex procedures leading to approval delays. This sometimes demotivates companies, deterring them from investing in product development. In fact, according to a report based on a survey of over 200 medical technology companies, the US FDA takes a significantly high time to review compared to its European counterpart.
Coming to the weakest link in the MedTech sector, we recommend avoiding names that offer little growth/opportunity over the near term. These include companies for which estimate revision trends for 2012 and 2013 reflect a bearish sentiment. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. All these companies carry a Zacks Rank #5 (Strong Sell). Also, cloud-based services provider athenahealth Inc. ( ATHN ) currently retains a Zacks Rank #5 as doubts linger around its proposed acquisition of Epocrates Inc. ( EPOC ).
Further, pricing compressions on hips, knees and spine products, which impaired the performances of several orthopedic companies, remain a key concern, at the macro level. We remain skeptical about companies including Wright Medical Group ( WMGI ).
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
VERTEX PHARM (VRTX): Free Stock Analysis Report
DENTSPLY INTL (XRAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. | For example, in early January, Abbott Laboratories ( ABT ) separated its research-based pharmaceuticals business by creating a new company, AbbVie ( ABBV ), to allow the two separate entities to perform in a more focused manner. These are Abbott Laboratories ( ABT ), Patterson Companies Inc. ( PDCO ), a distributor of dental, companion-pet veterinarian, and rehabilitation supplies, MGC Diagnostics Corporation ( MGCD ), a provider of non-invasive cardio respiratory diagnostic systems and Invacare Corporation ( IVC ), which provides medical equipment and supplies for non-acute care environment. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. |
34318.0 | 2013-01-25 00:00:00 UTC | Covidien's 1Q Beats, Raises View - Analyst Blog | ABT | https://www.nasdaq.com/articles/covidiens-1q-beats-raises-view-analyst-blog-2013-01-25 | nan | nan | Covidien plc. ( COV ) reported its adjusted earnings per share of $1.10 for the first quarter of fiscal 2013, 4 cents above the Zacks Consensus Estimate but 3 cents lower than the year-ago quarter earnings.
Adjusted earnings exclude one-time items such as tax-related expenses, restructuring and related charges along with extraordinary expenses associated with the divestment of the Pharmaceutical segment.
For the quarter under review, net income was flat year-over-year at $493 million (or $1.03 a share) due to higher expenses, which dampened solid sales growth.
Covidien's core Medical Devices is growing at a healthy pace, particularly in certain key categories. Moreover, the company is gaining considerable traction in emerging markets, led by its portfolio reshaping initiatives toward high-growth/high-margin businesses. The company remains on track regarding the spin-off of its Pharmaceutical business by mid-2013.
Revenue
Revenues for the first quarter of 2013 increased 5% year over year to $3,056 million, primarily led by higher sales in the Medical Devices segment. Sales were above the Zacks Consensus Estimate of $2,996 million. Currency exchange rates negatively impacted quarterly revenue by 1%.
On a geographic basis, revenues in the U.S. market increased 3% to $1,648 million. International sales jumped 8% (up 10% in constant currency) to $1,408 million, driven by emerging market growth.
Segment Analysis
Revenues from the larger Medical Devices segment jumped 8% (up 9% in constant currency) year over year to $2,133 million. The division is benefiting from acquisitions and new product offerings.
Within Medical Devices, revenues from Endomechanical Instruments quite unexpectedly climbed 7% to $620 million, led by solid gains from Tri-Staple reloads. Sales of Soft Tissue Repair products grew 3% to $225 million, on the back of higher suture, mesh and mechanical fixation sales. Further, Airway & Ventilation sub-segment sales rose 8% to $195 million, boosted by the acquisition of Newport Medical and double-digit growth in ventilator sales.
Revenues from Energy Devices climbed 8% to $346 million, again reflecting strong vessel sealing sales. Revenues from Oximetry and Monitoring sub-segment surged 16% to $241 million, owing to higher sales of monitors and sensors as well as the Oridion acquisition. Moreover, Vascular product sales grew 7% to $414 million, backed by solid growth across neurovascular and peripheral vascular offerings.
Revenues from Covidien's Pharma segment remained flat year over year at $489 million. Robust gains in the Specialty Pharmaceuticals business were offset by lower Active Pharmaceutical and Contrast Product sales.
Specialty Pharmaceuticals sales soared 25% to $167 million spurred by solid revenue from the Exalgo product and the newly launched Concerta ER tablets. However, Active Pharmaceutical Ingredients sales decreased 9% mainly due to unsuitable customer order timing. Contrast Product sales too declined 17% due to the sluggish U.S. markets and tough year-over-year comparables. Revenues from Radiopharmaceuticals inched down 1%.
Sales from Medical Supplies segment increased 2% (up 3% in constant currency) to $434 million in the quarter due to increased SharpSafety sales. Additionally, the exit of Abbott Nutrition, a division of Abbott Laboratories ( ABT ), has created opportunities for the nursing care business to gain market share in the U.S. enteral feeding pumps market.
Margins
Gross margin was 57.5% in the fourth quarter compared to 58.7% in the year-ago comparable period. On an adjusted basis, gross margin was 57.5% versus 58.8% in the prior year-quarter. Unfavorable currency fluctuation offset improved productivity and favorable business mix.
Selling, general and administrative expenses were lower at 30.8% of sales in the reported quarter compared with 31.3% of sales in the year-ago quarter. R&D expense edged down to 4.9% of revenues from 5.0% in the prior-year period. Adjusted operating margin stood at 22.4% compared with 24.3% a year ago.
Others
Covidien repurchased roughly 4.4 million ordinary shares under its share buyback program in the first quarter.
Guidance
Covidien raised its fiscal 2013 guidance on the back of the successful first quarter results, an extended research and development R&D tax credit along with the recent approval from the Food and Drug Administration (FDA) for its Concerta ER tablets.
For fiscal 2013, Covidien expects net revenues to grow by 5% to 8% (earlier 3% to 6%) year over year. The company's core Medical Devices segment is expected to be up 5%-8% (earlier 4%-7%). The Pharmaceuticals division is anticipated to grow at a high single-digit rate or more (earlier 1% to 4%) and the Medical Supplies business is expected to grow 1%-3% (earlier flat) year over year. All of the above mentioned growth rates are based on current foreign exchange rates.
Additionally, adjusted operating margin forecast remains unchanged in the range of 22% to 23%. Effective tax rate is expected in the band of 17.5 and 18.5% (earlier 18% and 19%) for fiscal 2013.
The fiscal 2013 Zacks Consensus Estimates for revenues and earnings are $12,379 million and $6.70 per share, respectively.
About the Company
Covidien is a leading global health care products company with an impressive history of developing and manufacturing high-quality products in a cost-effective manner. The company boasts of a well diversified product and technology portfolio.
The company is adequately placed to achieve its long-term revenue and earnings growth targets based on its attractive fundamentals, strategic R&D investment, effective execution, new product cycle and expansion into emerging markets. It is also enhancing shareholders' value through dividends and share repurchases, leveraging healthy free cash flows and strong earnings power.
However, Covidien faces stiff competition and remains exposed to pricing and utilization headwinds, along with acquisition risks. We remain concerned about the tepid U.S. health services industry and the soft European economy. Also, foreign exchange translation is expected to dampen growth.
Covidien currently carries a short-term Zacks #3 Rank (Hold). Medical products companies, such as Nxstage Medical, Inc. ( NXTM ), which carries a Zacks Rank #1 (Strong Buy), is expected to do well. Hanger Inc. ( HGR ), with a Zacks Rank #2 (Buy), will be reporting its results on Feb 13.
ABBOTT LABS (ABT): Free Stock Analysis Report
COVIDIEN PLC (COV): Free Stock Analysis Report
HANGER ORTHOPED (HGR): Free Stock Analysis Report
NXSTAGE MEDICAL (NXTM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, the exit of Abbott Nutrition, a division of Abbott Laboratories ( ABT ), has created opportunities for the nursing care business to gain market share in the U.S. enteral feeding pumps market. ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report HANGER ORTHOPED (HGR): Free Stock Analysis Report NXSTAGE MEDICAL (NXTM): Free Stock Analysis Report To read this article on Zacks.com click here. For the quarter under review, net income was flat year-over-year at $493 million (or $1.03 a share) due to higher expenses, which dampened solid sales growth. | ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report HANGER ORTHOPED (HGR): Free Stock Analysis Report NXSTAGE MEDICAL (NXTM): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the exit of Abbott Nutrition, a division of Abbott Laboratories ( ABT ), has created opportunities for the nursing care business to gain market share in the U.S. enteral feeding pumps market. For the quarter under review, net income was flat year-over-year at $493 million (or $1.03 a share) due to higher expenses, which dampened solid sales growth. | Additionally, the exit of Abbott Nutrition, a division of Abbott Laboratories ( ABT ), has created opportunities for the nursing care business to gain market share in the U.S. enteral feeding pumps market. ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report HANGER ORTHOPED (HGR): Free Stock Analysis Report NXSTAGE MEDICAL (NXTM): Free Stock Analysis Report To read this article on Zacks.com click here. Revenue Revenues for the first quarter of 2013 increased 5% year over year to $3,056 million, primarily led by higher sales in the Medical Devices segment. | Additionally, the exit of Abbott Nutrition, a division of Abbott Laboratories ( ABT ), has created opportunities for the nursing care business to gain market share in the U.S. enteral feeding pumps market. ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report HANGER ORTHOPED (HGR): Free Stock Analysis Report NXSTAGE MEDICAL (NXTM): Free Stock Analysis Report To read this article on Zacks.com click here. Revenue Revenues for the first quarter of 2013 increased 5% year over year to $3,056 million, primarily led by higher sales in the Medical Devices segment. |
34319.0 | 2013-01-24 00:00:00 UTC | Company News for January 24, 2013 - Corporate Summary | ABT | https://www.nasdaq.com/articles/company-news-for-january-24-2013-corporate-summary-2013-01-24 | nan | nan | • SAP AG (NYSE: SAP ) reported fourth quarter earnings per share of $1.23, missing the Zacks Consensus Estimate of $1.26
• Abbott Laboratories (NYSE: ABT ) posted fourth quarter earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.50
• Praxair, Inc. (NYSE: PX ) reported fourth quarter earnings per share of $1.38, in line with the Zacks Consensus Estimate
• Baker Hughes Incorporated (NYSE: BHI ) posted fourth quarter earnings per share of $0.62, beating the Zacks Consensus Estimate of $0.61
ABBOTT LABS (ABT): Free Stock Analysis Report
BAKER-HUGHES (BHI): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
SAP AG ADR (SAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • SAP AG (NYSE: SAP ) reported fourth quarter earnings per share of $1.23, missing the Zacks Consensus Estimate of $1.26 • Abbott Laboratories (NYSE: ABT ) posted fourth quarter earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.50 • Praxair, Inc. (NYSE: PX ) reported fourth quarter earnings per share of $1.38, in line with the Zacks Consensus Estimate • Baker Hughes Incorporated (NYSE: BHI ) posted fourth quarter earnings per share of $0.62, beating the Zacks Consensus Estimate of $0.61 ABBOTT LABS (ABT): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report PRAXAIR INC (PX): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • SAP AG (NYSE: SAP ) reported fourth quarter earnings per share of $1.23, missing the Zacks Consensus Estimate of $1.26 • Abbott Laboratories (NYSE: ABT ) posted fourth quarter earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.50 • Praxair, Inc. (NYSE: PX ) reported fourth quarter earnings per share of $1.38, in line with the Zacks Consensus Estimate • Baker Hughes Incorporated (NYSE: BHI ) posted fourth quarter earnings per share of $0.62, beating the Zacks Consensus Estimate of $0.61 ABBOTT LABS (ABT): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report PRAXAIR INC (PX): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • SAP AG (NYSE: SAP ) reported fourth quarter earnings per share of $1.23, missing the Zacks Consensus Estimate of $1.26 • Abbott Laboratories (NYSE: ABT ) posted fourth quarter earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.50 • Praxair, Inc. (NYSE: PX ) reported fourth quarter earnings per share of $1.38, in line with the Zacks Consensus Estimate • Baker Hughes Incorporated (NYSE: BHI ) posted fourth quarter earnings per share of $0.62, beating the Zacks Consensus Estimate of $0.61 ABBOTT LABS (ABT): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report PRAXAIR INC (PX): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • SAP AG (NYSE: SAP ) reported fourth quarter earnings per share of $1.23, missing the Zacks Consensus Estimate of $1.26 • Abbott Laboratories (NYSE: ABT ) posted fourth quarter earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.50 • Praxair, Inc. (NYSE: PX ) reported fourth quarter earnings per share of $1.38, in line with the Zacks Consensus Estimate • Baker Hughes Incorporated (NYSE: BHI ) posted fourth quarter earnings per share of $0.62, beating the Zacks Consensus Estimate of $0.61 ABBOTT LABS (ABT): Free Stock Analysis Report BAKER-HUGHES (BHI): Free Stock Analysis Report PRAXAIR INC (PX): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
34320.0 | 2013-01-24 00:00:00 UTC | ETF Talk: Here Is to Your Healthcare | ABT | https://www.nasdaq.com/articles/etf-talk-here-your-healthcare-2013-01-24 | nan | nan | By Doug Fabian
In keeping with our sector theme, the exchange-traded fund (ETF) that we are featuring today focuses on a sector that typically offers slow and steady growth. Today's featured sector is healthcare. As long as there are people, healthcare will be needed to treat their illnesses, diseases and discomforts. As a result, the health-care sector profits from this ever-present reality. The Health Care Select Sector SPDR (XLV) covers a wide range of companies investing in various segments of the health-care industry.
This fund seeks investment results that, before expenses, correspond generally to the price and yield of companies in the Health Care Select Sector Index. That index includes companies from the pharmaceuticals, health-care equipment and supplies, health-care providers and services, biotechnology, life sciences tools and services and health-care technology industries.
Already up 3.98% in just the first few weeks of the year, XLV's January growth follows a healthy 13.62% jump during 2012. The fund also offers a yield of 2.01%. Look for this fund to continue its steady growth, no matter what decisions are made in the nation's capital. Indeed, ObamaCare should keep money flowing into healthcare one way or another.
Almost all of XLV's holdings, 98.32%, are in the health-care sector, which is to be expected from a health-care ETF. The remaining 1.68% of the fund is invested in the technology sector. XLV also is rather heavily invested in its top 10 holdings, with 59.84% of its total assets residing there. Its top two holdings, Johnson & Johnson; (JNJ) Common Stock and Pfizer, Inc. (PFE) Common Stock, account for 12.64% and 12.01%, respectively. The remaining members of XLV's top five are Merck & Company (MRK), Inc. Common Stock, 8.10%; Abbott Laboratories; (ABT) Common Stock, 5.71%; and Amgen Inc. (AMGN), 4.31%.
With most of its holdings in a sector largely independent of the inevitable and impending Washingtonian scuffles, and with ObamaCare likely to help certain industry companies, look for XLV and its ilk to produce profitable returns for the foreseeable future.
Doug Fabian has continued to uphold the reputation of the High Monthly Income newsletter as the #1 risk-adjusted market timer as ranked by Hulbert's Investment Digest.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 remaining members of XLV's top five are Merck & Company (MRK), Inc. Common Stock, 8.10%; Abbott Laboratories; (ABT) Common Stock, 5.71%; and Amgen Inc. (AMGN), 4.31%. This fund seeks investment results that, before expenses, correspond generally to the price and yield of companies in the Health Care Select Sector Index. With most of its holdings in a sector largely independent of the inevitable and impending Washingtonian scuffles, and with ObamaCare likely to help certain industry companies, look for XLV and its ilk to produce profitable returns for the foreseeable future. | The remaining members of XLV's top five are Merck & Company (MRK), Inc. Common Stock, 8.10%; Abbott Laboratories; (ABT) Common Stock, 5.71%; and Amgen Inc. (AMGN), 4.31%. The Health Care Select Sector SPDR (XLV) covers a wide range of companies investing in various segments of the health-care industry. This fund seeks investment results that, before expenses, correspond generally to the price and yield of companies in the Health Care Select Sector Index. | The remaining members of XLV's top five are Merck & Company (MRK), Inc. Common Stock, 8.10%; Abbott Laboratories; (ABT) Common Stock, 5.71%; and Amgen Inc. (AMGN), 4.31%. By Doug Fabian In keeping with our sector theme, the exchange-traded fund (ETF) that we are featuring today focuses on a sector that typically offers slow and steady growth. The Health Care Select Sector SPDR (XLV) covers a wide range of companies investing in various segments of the health-care industry. | The remaining members of XLV's top five are Merck & Company (MRK), Inc. Common Stock, 8.10%; Abbott Laboratories; (ABT) Common Stock, 5.71%; and Amgen Inc. (AMGN), 4.31%. By Doug Fabian In keeping with our sector theme, the exchange-traded fund (ETF) that we are featuring today focuses on a sector that typically offers slow and steady growth. Almost all of XLV's holdings, 98.32%, are in the health-care sector, which is to be expected from a health-care ETF. |
34321.0 | 2013-01-23 00:00:00 UTC | Abbott Beats on EPS, Guides In-Line - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbott-beats-eps-guides-line-analyst-blog-2013-01-23 | nan | nan | Abbott Labs ( ABT ) reported fourth quarter 2012 earnings of $1.51 per share, a penny ahead of the Zacks Consensus Estimate and 4.1% above the year-ago earnings. Including one-time items, fourth quarter earnings decreased 35.3% to 66 cents per share.
Fourth quarter revenues increased 4.4% to $10.8 billion, narrowly beating the Zacks Consensus Estimate of $10.6 billion. Full year earnings came in at $5.07 per share, a penny above the Zacks Consensus Estimate and 8.8% above the year-ago earnings.
Full-year earnings were within the guidance range of $5.06 to $5.08 per share. Revenues increased 2.6% to $39.9 billion in 2012, edging past the Zacks Consensus Estimate of $39.6 billion.
Pharma Business Spun Off
We note that Abbott recently separated its research-based pharmaceuticals business by creating a new company - AbbVie ( ABBV ). The decision to spin off the business was taken back in Oct 2011 when Abbott decided to separate its business into two publicly traded companies - one in diversified medical products and the other in research-based pharmaceuticals.
The research-based pharmaceutical company, AbbVie, includes proprietary pharmaceuticals and biologics including products like Humira, Lupron, Synagis, Kaletra, Creon and Synthroid. The new company started trading from the beginning of 2013.
Quarter in Detail
Fourth quarter results are for the combined company. Almost all the business categories performed well during the quarter. Proprietary Pharmaceutical sales were $5.1 billion, up 7.4%. Humira was a major contributor with sales coming in at $2.7 billion, up 23.1%. Humira recorded sales growth in both the US (31.1%) and international markets (15.2%) during the quarter.
Abbott Labs is looking to get Humira approved for additional indications, which would help drive growth further. Lupron, Androgel, Creon and Synthroid also contributed to Proprietary Pharmaceutical sales growth.
The Nutritionals business grew 10.2% to $1.7 billion. Nutrition sales in the US increased 9.4% to $743 million. Outside the US, Nutrition sales continued to experience double-digit growth with sales increasing 10.8% to $972 million. Strong performance in emerging markets helped drive international nutrition sales.
Other areas that witnessed growth include the Core Laboratory Diagnostics, Molecular Diagnostics, Diabetes Care and Point of Care Diagnostics businesses. Established Pharmaceuticals sales, however, declined 2.4% to $1.3 billion.
In-Line Outlook for 2013
Along with releasing fourth quarter results, Abbott Labs provided guidance for 2013. The company expects 2012 earnings in the range of $1.98 to $2.04 per share. Guidance was in line with the Zacks Consensus Estimate, currently standing at $2.00 per share. The guidance excludes the newly formed AbbVie, which started functioning as an independent company from the beginning of 2013.
Abbott carries a Zacks Rank #5 (Strong Sell) in the short run. However, not all large-cap pharma stocks are performing as poorly as Abbott. Large-cap pharma companies that currently look more attractive include Bayer ( BAYRY ) and Sanofi ( SNY ). Both companies carry a Zacks Rank #2 (Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs ( ABT ) reported fourth quarter 2012 earnings of $1.51 per share, a penny ahead of the Zacks Consensus Estimate and 4.1% above the year-ago earnings. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Including one-time items, fourth quarter earnings decreased 35.3% to 66 cents per share. | Abbott Labs ( ABT ) reported fourth quarter 2012 earnings of $1.51 per share, a penny ahead of the Zacks Consensus Estimate and 4.1% above the year-ago earnings. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. The research-based pharmaceutical company, AbbVie, includes proprietary pharmaceuticals and biologics including products like Humira, Lupron, Synagis, Kaletra, Creon and Synthroid. | Abbott Labs ( ABT ) reported fourth quarter 2012 earnings of $1.51 per share, a penny ahead of the Zacks Consensus Estimate and 4.1% above the year-ago earnings. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Fourth quarter revenues increased 4.4% to $10.8 billion, narrowly beating the Zacks Consensus Estimate of $10.6 billion. | Abbott Labs ( ABT ) reported fourth quarter 2012 earnings of $1.51 per share, a penny ahead of the Zacks Consensus Estimate and 4.1% above the year-ago earnings. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report BAYER A G -ADR (BAYRY): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Fourth quarter revenues increased 4.4% to $10.8 billion, narrowly beating the Zacks Consensus Estimate of $10.6 billion. |
34322.0 | 2013-01-22 00:00:00 UTC | Weekly Healthcare Notes: Roche Holdings, Pfizer & JNJ | ABT | https://www.nasdaq.com/articles/weekly-healthcare-notes-roche-holdings-pfizer-jnj-2013-01-22 | nan | nan | The past week has been a handful of events for the healthcare sector impacting many healthcare companies under our coverage. Roche Holdings ( RHHBY ) touched new highs after the U.S. FDA allowed it to release its own reserve stocks of Tamiflu, an oral drug for flu, amidst an outbreak of the disease in the country. The CDC also urged patients to take Tamiflu once flu symptoms surface.
Meanwhile, rumors made the rounds that Pfizer ( PFE ) could be seeking an early approval for its experimental breast cancer drug. On the other hand, Johnson & Johnson ( JNJ ) is said to be negotiating a settlement with over 10,000 patients who filed lawsuits against the healthcare company following its recall of hip implants.
Roche Holdings
The U.S. is currently grappling with a flu epidemic affecting both elderly and child patients the most while leaving at least 29 patients dead. More states are now reporting high flu rates even as signs of an epidemic seem to be gradually easing. The FDA's move to allow Roche to release its own reserve supply of Tamiflu will help balance the demand-supply deficit as the anti-viral is witnessing a high demand due to the flu outbreak. Roche's Tamiflu became the only oral antiviral drug approved to treat patients of all ages after it received FDA nod for extending the use of Tamiflu for the treatment of infants two weeks of age and older in December 2012.
These factors have led the recent rally in the drug maker's share price. A weak U.S. dollar and Euro against Swiss Franc also lent support to the jump as the Swiss company becomes costlier value wise. Swiss Franc is considered a safe haven and owing to euro zone issues, it has appreciated considerably. We, however, believe that after recent rally, Roche is now trading higher than its fair value. Flu outbreak is a one time event and a jump in revenues will not be recurring. Further, as global economy improves, Swiss Franc may lose its sheen. Further, Swiss Central Bank is aggressively trying to curb the appreciation in its currency through various measures.
See Full Analysis For Roche Holdings Here
Pfizer
Pfizer seems more than eager to continue with its approval streak after winning FDA approvals for two of its blockbuster potential drugs (Read Pfizer Secures Coveted FDA Approval For Eliquis and Pfizer Receives Big Boost As FDA Approves Rheumatoid Arthritis Drug ). The drug maker could be mulling to seek an early approval for its experimental advanced breast cancer drug, PD-0332991, following strong efficacy and safety exhibited by the drug in recently concluded mid-stage trials.
With impressive clinical results and the FDA's history of granting early approvals to such effective drugs, Pfizer could want to enter the market as soon as possible to gain first mover advantage even as it is many years ahead with major competitors who are developing similar drugs. The drug, if approved as a first-line treatment, could bring many billions of dollars in revenue for the struggling drug maker. This could lead to an upside in our price estimate as we have not considered the potential revenues from the drug in our model. However, final-stage trials have yet to begin and could conclude as late as 2015-16. Read our note Pfizer Could Get Boost With New Breast Cancer Drug for full details.
See Full Analysis For Pfizer here
Johnson & Johnson
According to Bloomberg, JNJ is negotiating a settlement involving more than 10,000 lawsuits over its recalled hip implants. If realized, the settlement could cost over $2 billion at rumored offer of $200,000 per lawsuit. However, the amount could increase substantially should patients find it unattractive and ask for higher amount. In any case, the settlement of such size will create a hole in JNJ's cash reserves, and could have an immediate impact on JNJ's share price in near term.
It, however, should not impact the medical device business as such as it decided to phase out production of ASR hip implants and surgical mesh products last year. And we believe our current price estimate already captures the expected decline in revenues due to loss of these products.
See Full Analysis ForJohnson & Johnson
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roche Holdings ( RHHBY ) touched new highs after the U.S. FDA allowed it to release its own reserve stocks of Tamiflu, an oral drug for flu, amidst an outbreak of the disease in the country. Meanwhile, rumors made the rounds that Pfizer ( PFE ) could be seeking an early approval for its experimental breast cancer drug. The FDA's move to allow Roche to release its own reserve supply of Tamiflu will help balance the demand-supply deficit as the anti-viral is witnessing a high demand due to the flu outbreak. | Roche Holdings ( RHHBY ) touched new highs after the U.S. FDA allowed it to release its own reserve stocks of Tamiflu, an oral drug for flu, amidst an outbreak of the disease in the country. See Full Analysis For Roche Holdings Here Pfizer Pfizer seems more than eager to continue with its approval streak after winning FDA approvals for two of its blockbuster potential drugs (Read Pfizer Secures Coveted FDA Approval For Eliquis and Pfizer Receives Big Boost As FDA Approves Rheumatoid Arthritis Drug ). See Full Analysis For Pfizer here Johnson & Johnson According to Bloomberg, JNJ is negotiating a settlement involving more than 10,000 lawsuits over its recalled hip implants. | Roche's Tamiflu became the only oral antiviral drug approved to treat patients of all ages after it received FDA nod for extending the use of Tamiflu for the treatment of infants two weeks of age and older in December 2012. See Full Analysis For Roche Holdings Here Pfizer Pfizer seems more than eager to continue with its approval streak after winning FDA approvals for two of its blockbuster potential drugs (Read Pfizer Secures Coveted FDA Approval For Eliquis and Pfizer Receives Big Boost As FDA Approves Rheumatoid Arthritis Drug ). The drug maker could be mulling to seek an early approval for its experimental advanced breast cancer drug, PD-0332991, following strong efficacy and safety exhibited by the drug in recently concluded mid-stage trials. | See Full Analysis For Roche Holdings Here Pfizer Pfizer seems more than eager to continue with its approval streak after winning FDA approvals for two of its blockbuster potential drugs (Read Pfizer Secures Coveted FDA Approval For Eliquis and Pfizer Receives Big Boost As FDA Approves Rheumatoid Arthritis Drug ). The drug maker could be mulling to seek an early approval for its experimental advanced breast cancer drug, PD-0332991, following strong efficacy and safety exhibited by the drug in recently concluded mid-stage trials. See Full Analysis For Pfizer here Johnson & Johnson According to Bloomberg, JNJ is negotiating a settlement involving more than 10,000 lawsuits over its recalled hip implants. |
34323.0 | 2013-01-22 00:00:00 UTC | Pre-Market Earnings Report for January 23, 2013 : MCD, UTX, ABT, PX, GD, NVS, BHI, WLP, APD, COH, MSI, TEL | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-january-23-2013-mcd-utx-abt-px-gd-nvs-bhi-wlp-apd-coh-msi-tel | nan | nan | The following companies are expected to report earnings prior to market open on 01/23/2013. Visit our Earnings Calendar for a full list of expected earnings releases.
McDonald's Corporation ( MCD ) is reporting for the quarter ending December 31, 2012. The restaurant company's consensus earnings per share forecast from the 25 analysts that follow the stock is $1.33. This value represents a no change for the same quarter last year. The last two quarters MCD had negative earnings surprises; the latest report they missed by -2.72%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for MCD is 17.34 vs. an industry ratio of 16.60, implying that they will have a higher earnings growth than their competitors in the same industry.
United Technologies Corporation ( UTX ) is reporting for the quarter ending December 31, 2012. The diversified operations company's consensus earnings per share forecast from the 17 analysts that follow the stock is $1.02. This value represents a -30.14% decrease compared to the same quarter last year. In the past year UTX has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2012 Price to Earnings ratio for UTX is 16.34 vs. an industry ratio of 15.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Abbott Laboratories ( ABT ) is reporting for the quarter ending December 31, 2012. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.50. This value represents a 3.45% increase compared to the same quarter last year. In the past year ABT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.56%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 6.47 vs. an industry ratio of 14.50.
Praxair, Inc. ( PX ) is reporting for the quarter ending December 31, 2012. The chemical company's consensus earnings per share forecast from the 15 analysts that follow the stock is $1.38. This value represents a 1.47% increase compared to the same quarter last year. PX missed the consensus earnings per share in the 4th calendar quarter of 2011 by -0.73%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for PX is 20.38 vs. an industry ratio of 14.30, implying that they will have a higher earnings growth than their competitors in the same industry.
General Dynamics Corporation ( GD ) is reporting for the quarter ending December 31, 2012. The aerospace and defense company's consensus earnings per share forecast from the 16 analysts that follow the stock is $1.92. This value represents a -4.00% decrease compared to the same quarter last year. GD missed the consensus earnings per share in the 3rd calendar quarter of 2012 by -3.95%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for GD is 10.14 vs. an industry ratio of 13.40.
Novartis AG ( NVS ) is reporting for the quarter ending December 31, 2012. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.24. This value represents a 0.81% increase compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for NVS is 12.50 vs. an industry ratio of 14.50.
Baker Hughes Incorporated ( BHI ) is reporting for the quarter ending December 31, 2012. The oil (field services) company's consensus earnings per share forecast from the 28 analysts that follow the stock is $0.61. This value represents a -50.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for BHI is 13.84 vs. an industry ratio of 13.70, implying that they will have a higher earnings growth than their competitors in the same industry.
WellPoint Inc. ( WLP ) is reporting for the quarter ending December 31, 2012. The hmo company's consensus earnings per share forecast from the 17 analysts that follow the stock is $0.95. This value represents a -4.04% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for WLP is 8.47 vs. an industry ratio of -8.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Air Products and Chemicals, Inc. ( APD ) is reporting for the quarter ending December 31, 2012. The chemical company's consensus earnings per share forecast from the 15 analysts that follow the stock is $1.29. This value represents a -5.15% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2013 Price to Earnings ratio for APD is 15.45 vs. an industry ratio of 14.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Coach, Inc. ( COH ) is reporting for the quarter ending December 31, 2012. The textile company's consensus earnings per share forecast from the 24 analysts that follow the stock is $1.29. This value represents a 9.32% increase compared to the same quarter last year. In the past year COH has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.67%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for COH is 15.93 vs. an industry ratio of 16.90.
Motorola Solutions, Inc. ( MSI ) is reporting for the quarter ending December 31, 2012. The wireless equipment company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.92. This value represents a 17.95% increase compared to the same quarter last year. MSI missed the consensus earnings per share in the 2nd calendar quarter of 2012 by -3.23%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for MSI is 21.38 vs. an industry ratio of 14.90, implying that they will have a higher earnings growth than their competitors in the same industry.
TE Connectivity Ltd. ( TEL ) is reporting for the quarter ending December 31, 2012. The electrical instrument company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.64. This value represents a -3.03% decrease compared to the same quarter last year. TEL missed the consensus earnings per share in the 4th calendar quarter of 2011 by -5.71%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for TEL is 12.37 vs. an industry ratio of 7.20, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ( ABT ) is reporting for the quarter ending December 31, 2012. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 6.47 vs. an industry ratio of 14.50. | Abbott Laboratories ( ABT ) is reporting for the quarter ending December 31, 2012. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 6.47 vs. an industry ratio of 14.50. | Abbott Laboratories ( ABT ) is reporting for the quarter ending December 31, 2012. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 6.47 vs. an industry ratio of 14.50. | In the past year ABT has beat the expectations every quarter. Abbott Laboratories ( ABT ) is reporting for the quarter ending December 31, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 6.47 vs. an industry ratio of 14.50. |
34324.0 | 2013-01-15 00:00:00 UTC | Zacks #5 Rank Additions for Tuesday - Tale of the Tape | ABT | https://www.nasdaq.com/articles/zacks-5-rank-additions-for-tuesday-tale-of-the-tape-2013-01-15 | nan | nan | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today:
Abbott Laboratories ( ABT )
Acuity Brands, Inc. ( AYI )
American Midstream Partners LP ( AMID )
America's Car-Mart, Inc. ( CRMT )
Banco Bilbao Vizcaya Argentaria SA (ADR) ( BBVA )
View the entire Zacks #5 Rank List .
ABBOTT LABS (ABT): Free Stock Analysis Report
AMER MIDSTREAM (AMID): Free Stock Analysis Report
ACUITY BRANDS (AYI): Free Stock Analysis Report
BANCO BILBAO VZ (BBVA): Free Stock Analysis Report
AMERICAS CAR-MT (CRMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acuity Brands, Inc. ( AYI ) American Midstream Partners LP ( AMID ) America's Car-Mart, Inc. ( CRMT ) Banco Bilbao Vizcaya Argentaria SA (ADR) ( BBVA ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report BANCO BILBAO VZ (BBVA): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acuity Brands, Inc. ( AYI ) American Midstream Partners LP ( AMID ) America's Car-Mart, Inc. ( CRMT ) Banco Bilbao Vizcaya Argentaria SA (ADR) ( BBVA ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report BANCO BILBAO VZ (BBVA): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acuity Brands, Inc. ( AYI ) American Midstream Partners LP ( AMID ) America's Car-Mart, Inc. ( CRMT ) Banco Bilbao Vizcaya Argentaria SA (ADR) ( BBVA ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report BANCO BILBAO VZ (BBVA): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Acuity Brands, Inc. ( AYI ) American Midstream Partners LP ( AMID ) America's Car-Mart, Inc. ( CRMT ) Banco Bilbao Vizcaya Argentaria SA (ADR) ( BBVA ) View the entire Zacks #5 Rank List . ABBOTT LABS (ABT): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report ACUITY BRANDS (AYI): Free Stock Analysis Report BANCO BILBAO VZ (BBVA): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): 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. |
34325.0 | 2013-01-14 00:00:00 UTC | Merck, Abbott And JNJ Show Interest In Bausch & Lomb | ABT | https://www.nasdaq.com/articles/merck-abbott-and-jnj-show-interest-bausch-lomb-2013-01-14 | nan | nan | This year could see a major healthcare M&A transaction as Merck ( MRK ), Johnson & Johnson ( JNJ ) and Pfizer ( PFE ), are all rumored to be vying along with other healthcare companies like Sanofi, to acquire private equity firm Warburg Pincus' large eye-care business Bausch & Lomb (B&L). Abbott Labs ( ABT ) is mulling to throw to bid too since it has appointed a big investment bank to advise the company on the deal.
Many of these cash rich companies are are looking at inorganic routes to fend off losses from patent cliffs or a weak drug pipeline. While there are a number of healthcare companies in the fray to acquire the company, we believe Merck and Abbott Labs could emerge as one of the most serious contenders. However, a $10 billion price tag put up by Warburg, could be too steep for many of the potential suitors.
See our complete analysis for: Johnson & Johnson |Merck|Abbott Labs |Pfizer
What B&L Brings To The Table?
B&L's core businesses revolve around vision care products (contact lenses, lens care products etc) and ophthalmic surgical devices and instruments. In addition, it has a number of generics and branded drugs mainly for eyes that include steroid eye drops Lotemax and Besivance to treat bacterial infections. In March 2012, B&L acquired eye-drug company ISTA for $500 million, bringing in the latter's current products including well known drop for cataract surgery patients, Bromday. The deal also added several pipeline drugs to its own, which currently has several promising drugs including a drug to treat dry eye disease.
Vision care and pharmaceuticals, each account for about 40% of B&L's total revenues, whereas the rest 20% comes from surgical devices and instruments. Market wise, about 40% of total revenues comes from North America, whereas Europe constitutes for 33% and other regions bring in the rest.
The Serious Contenders
Pfizer has been increasing its focus on its core pharmaceutical business and recently sold its nutritional business. Pfizer is also divesting its animal health business through an IPO. The rationale is that pharmaceuticals offer better profit margins and the divestment will leave more cash to repay debt, buyback stock and invest in its research and development programs. While B&L has some promising drugs in its portfolio, the majority of its revenues still comes from vision-care devices and related products. Therefore, we believe Pfizer might not be interested in buying the whole company, and Warburg Pincus, which plans to sell B&L intact to avoid potential increase in tax burden, wouldn't agree otherwise.
JNJ , which has been grappling with various recall issues in its OTC and medical devices businesses, along with patent expiries in pharma business, seems like a logical buyer. Its management has, at many instances, signaled to expand its medical devices business through inorganic routes. Further, long ago there were rumors of JNJ taking interest in the lens care market. But, issue is with the JNJ's significant presence in contact lens business. JNJ commands more than 40% market share in the U.S. whereas B&L controls about 10%. Market wise also, the deal won't help JNJ much since B&L gets a significant chunk of its revenues from the developed markets, and we expect JNJ to rather spend its money on acquisitions in rapidly growing Chinese market. (Read Johnson & Johnson's CEO Looks To Bolster Cardiology Devices Segment Through Acquisitions and Johnson & Johnson Mulls Acquisition of Baby Product Manufacturer in China ).
Abbott Labs , through its is subsidiary Abbott Medical Optics, already has a limited presence in vision-care business. However, the business has been seeing dwindling sales. Abbott Labs had earlier unsuccessfully tried to buy B&L in 2007, but lost to Warburg Pincus. By acquiring B&L now, it could get ready access to its already established medical devices products and boost its presence in the market. While Abbott Labs wouldn't want to keep the branded pharma business post its recent split from its separated proprietary research company AbbVie. But AbbVie is significantly dependent on Humira and a relatively weak pipeline continues to haunt it (Read Abbott Labs Snapshot As AbbVie Begins Trading ). AbbVie could benefit from B&L's current drugs to reduce dependence on Humira, while strengthening its pipeline.
In addition to Abbott, Merck , which has been facing a decline in revenues post Singuliar patent expiry and couple of recent setbacks in its pipeline, could also take a serious look at the opportunity. While the drug maker may not have experience in B&L's core businesses, it has shown its willingness to expand its own consumer healthcare franchise, in stark contrast with its counterpart Pfizer. Merck's huge $17 billion in cash and cash equivalents at the end of Q3 also puts it in comfortable position.
But, A $10 Billion Price Tag Is Not So Cheap
B&L had around $2.5 billion in revenues with about earnings before interest, taxes, depreciation, and amortization (EBITDA) of $400 million in 2007. With an estimated 6% improvement in EBITDA margins since then and an expected $800 million of EBITDA in 2013, estimated revenues for 2013 would be close to $3.5 billion. Thus, a $10 billion price tag would be more than 2.5 times of its expected 2013 revenues, or about 12 times of its 2013 EBITDA. The big question is if these healthcare companies would be ready to shell out that much premium for a company whose overall growth may be in tandem, with the expected market growth of mid-single digit (market expected to jump by 17% to $35 billion by 2015)..
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 ) is mulling to throw to bid too since it has appointed a big investment bank to advise the company on the deal. The rationale is that pharmaceuticals offer better profit margins and the divestment will leave more cash to repay debt, buyback stock and invest in its research and development programs. Therefore, we believe Pfizer might not be interested in buying the whole company, and Warburg Pincus, which plans to sell B&L intact to avoid potential increase in tax burden, wouldn't agree otherwise. | Abbott Labs ( ABT ) is mulling to throw to bid too since it has appointed a big investment bank to advise the company on the deal. B&L's core businesses revolve around vision care products (contact lenses, lens care products etc) and ophthalmic surgical devices and instruments. JNJ , which has been grappling with various recall issues in its OTC and medical devices businesses, along with patent expiries in pharma business, seems like a logical buyer. | Abbott Labs ( ABT ) is mulling to throw to bid too since it has appointed a big investment bank to advise the company on the deal. This year could see a major healthcare M&A transaction as Merck ( MRK ), Johnson & Johnson ( JNJ ) and Pfizer ( PFE ), are all rumored to be vying along with other healthcare companies like Sanofi, to acquire private equity firm Warburg Pincus' large eye-care business Bausch & Lomb (B&L). Market wise also, the deal won't help JNJ much since B&L gets a significant chunk of its revenues from the developed markets, and we expect JNJ to rather spend its money on acquisitions in rapidly growing Chinese market. | Abbott Labs ( ABT ) is mulling to throw to bid too since it has appointed a big investment bank to advise the company on the deal. While there are a number of healthcare companies in the fray to acquire the company, we believe Merck and Abbott Labs could emerge as one of the most serious contenders. Abbott Labs , through its is subsidiary Abbott Medical Optics, already has a limited presence in vision-care business. |
34326.0 | 2013-01-14 00:00:00 UTC | Weekly Healthcare Notes: Pfizer, Abbott Labs, Merck & JNJ | ABT | https://www.nasdaq.com/articles/weekly-healthcare-notes-pfizer-abbott-labs-merck-jnj-2013-01-14 | nan | nan | The past week saw a handful of events for the healthcare sector. First, Pfizer ( PFE ) received the much awaited European approval for expanded use of its blockbuster vaccine Prevenar 13 in children and adolescents aged 6 to 17 years. Pfizer's counterparts Merck and Johnson & Johnson ( JNJ ) were in the news for taking interest in eye-care company Bausch & Lomb, which was put on the block by the private equity major Warburg Pincus. Abbott Labs ( ABT ) is also said to be in the fray to acquire Bausch & Lomb. Meanwhile, the healthcare company began final stage trials to get FDA approval for first kind of drug eluting bioresorbable stent, Absorb.
Pfizer
New year celebrations continue for Pfizer as, after receiving FDA approval for blockbuster potential blood thinner Eliquis (Read Pfizer Secures Coveted FDA Approval For Eliquis ), the drug maker has secured European approval to expand use of its one of the largest selling pneumococcal vaccine, Prevenar 13 (known as Prevnar 13 in the U.S.). The vaccine was showing consistent double digit growth rates until Q3, where it surprised the market by posting a decline in revenues as most eligible pediatric patients were already vaccinated and the adult patients market was largely not open to the vaccine. The approval will open the additional revenue stream for the vaccine as it now be given to children and adolescents aged 6 to 17 years, bringing reprieve to it.
However, there are other approvals, the vaccine is still awaiting including FDA approval for the same age group and CDC recommendations for all adults aged 50 years and above in the US. With these approvals and no significant competition in the market, we expect revenues from the Prevenar franchise to nearly double from current $4.5 billion by the end of our forecast period. Read our note Pfizer Updates: Europe Approves Expanded Use Of Prevenar 13 for detail analysis.
See Full Analysis For Pfizer here
Merck, Johnson & Johnson And Abbott Labs
Merck, Johnson & Johnson and Abbott Labs are said to be considering the acquisition of private equity firm Warburg Pincus owned eye-care company Bausch & Lomb. Many of healthcare companies are facing revenue losses due to patent cliffs and/or a weak drug pipeline. Bausch & Lomb has vision care products (contact lenses, lens care products etc) and ophthalmic surgical devices and instruments in its product portfolio. In addition, it has a number of generics and branded drugs mainly for eyes with a promising pipeline. Healthcare companies could benefit from an established but steadily growing business. Among the potential suitors, we think Merck and Abbott Labs could be one of the most serious contenders even as a $10 billion price tag could discourage them. Read our note Merck, Abbott And JNJ Show Interest In Bausch & Lomb to know why we think so.
See our complete analysis for: Johnson & Johnson |Merck|Abbott Labs |Pfizer
Abbott Labs
Following Abbott Labs' company split on Jan 2, its medical device business has seen an increased activity as the diversified healthcare company has begun phase III clinical trials in the U.S. to prove efficacy and safety for world's first drug eluting bioresorbable stent, Absorb, which dissolves in patients' bloodstreams after finishing treatment of narrowed /diseased arteries. While the device is currently approved and being sold in Europe and other markets, the large U.S. market still evades it pending clinical trials.
In our current model, stents are part of the company's vascular franchise, which has been Abbott's largest contributor to growth. The business, however, has been under pressure of late due to weak stent sales. Backed by such new and innovative products, we expect the company's overall vascular market share to increase to our expectations of over 17.5% by the end of the Trefis forecast period. Recently, Abbott Labs won FDA approval for its next-generation Xience Xpedition DES.
SeeFull AnalysisFor Abbott Labs here
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 ) is also said to be in the fray to acquire Bausch & Lomb. First, Pfizer ( PFE ) received the much awaited European approval for expanded use of its blockbuster vaccine Prevenar 13 in children and adolescents aged 6 to 17 years. Meanwhile, the healthcare company began final stage trials to get FDA approval for first kind of drug eluting bioresorbable stent, Absorb. | Abbott Labs ( ABT ) is also said to be in the fray to acquire Bausch & Lomb. Pfizer New year celebrations continue for Pfizer as, after receiving FDA approval for blockbuster potential blood thinner Eliquis (Read Pfizer Secures Coveted FDA Approval For Eliquis ), the drug maker has secured European approval to expand use of its one of the largest selling pneumococcal vaccine, Prevenar 13 (known as Prevnar 13 in the U.S.). See Full Analysis For Pfizer here Merck, Johnson & Johnson And Abbott Labs Merck, Johnson & Johnson and Abbott Labs are said to be considering the acquisition of private equity firm Warburg Pincus owned eye-care company Bausch & Lomb. | Abbott Labs ( ABT ) is also said to be in the fray to acquire Bausch & Lomb. Pfizer New year celebrations continue for Pfizer as, after receiving FDA approval for blockbuster potential blood thinner Eliquis (Read Pfizer Secures Coveted FDA Approval For Eliquis ), the drug maker has secured European approval to expand use of its one of the largest selling pneumococcal vaccine, Prevenar 13 (known as Prevnar 13 in the U.S.). See Full Analysis For Pfizer here Merck, Johnson & Johnson And Abbott Labs Merck, Johnson & Johnson and Abbott Labs are said to be considering the acquisition of private equity firm Warburg Pincus owned eye-care company Bausch & Lomb. | Abbott Labs ( ABT ) is also said to be in the fray to acquire Bausch & Lomb. With these approvals and no significant competition in the market, we expect revenues from the Prevenar franchise to nearly double from current $4.5 billion by the end of our forecast period. See Full Analysis For Pfizer here Merck, Johnson & Johnson And Abbott Labs Merck, Johnson & Johnson and Abbott Labs are said to be considering the acquisition of private equity firm Warburg Pincus owned eye-care company Bausch & Lomb. |
34327.0 | 2013-01-10 00:00:00 UTC | Pfizer Updates: Europe Approves Expanded Use Of Prevenar 13 | ABT | https://www.nasdaq.com/articles/pfizer-updates-europe-approves-expanded-use-prevenar-13-2013-01-10 | nan | nan | Pfizer's ( PFE ) vaccine to prevent pneumococcal diseases (pneumonia, meningitis), Prevenar 13 (known as Prevnar 13 in the U.S.), has received much needed European Medicines Agency (EMA) nod for expanding its use to children and adolescents aged 6 to 17 years. The new year has been an auspicious one for the drug maker so far as this is the second coveted regulatory approval Pfizer has secured. Recently FDA approved blockbuster potential blood thinner Eliquis (Read Pfizer Secures Coveted FDA Approval For Eliquis ). European approval will open the bigger market for the vaccine and will drive the expected growth going forward.
See our complete analysis for Pfizer
Drugs like Prevenar (7 & 13) hold the key for future growth for Pfizer as the drug marker has been grappling with the issue of patent cliff and has seen its sales slumping in the last couple of quarters. Pfizer lost patent protection for blockbuster drugs Enbrel and Detrol in 2012, which collectively contributed over $3 billion in revenues. Not to forget the patent loss of once mighty cardiovascular drug Lipitor in 2o11.
With no significant competition in the market, the Prevenar franchise has the potential to make up for the revenue losses due to these patent expiries as we expect sales to nearly double from current $4.5 billion by the end of our forecast period. The vaccine was showing consistent double digit growth rates until Q3, where it surprised the market by posting a decline in revenues (Read Pfizer Earnings Decline As Prevnar And Emerging Markets Disappoint ).
The reason behind this unexpected decline was that most eligible pediatric patients were already vaccinated and the adult patients market was largely not open to the vaccine. With the European approval, we believe the drug can once again begin its growth streak. And we expect other countries including the U.S. to follow the suit and extend the vaccine to other age groups. The U.S. Centers for Disease Control and Prevention's (CDC) recommendation for adults aged 19 years or older with impaired immune system will also lend support. Further, the vaccine received World Health Organization (WHO) qualification for use in adults aged 50 years and above, which means WHO member countries can now use the vaccine for older patients.
However, there are couple of factors that can impact our expectations. The vaccine is awaiting the CDC recommendations for all adults aged 50 years and above in the US. While the FDA approved the vaccine for the above age group in December 2011, the CDC is waiting for the efficacy results of an ongoing clinical study (Pfizer expects to complete the trials by 2013) before deciding on broader recommendations. Health plans in the U.S. usually wait for the CDC recommendations to cover a vaccine's use. Without these approvals, Prevenar 13 may not achieve its potential peak sales.
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pfizer's ( PFE ) vaccine to prevent pneumococcal diseases (pneumonia, meningitis), Prevenar 13 (known as Prevnar 13 in the U.S.), has received much needed European Medicines Agency (EMA) nod for expanding its use to children and adolescents aged 6 to 17 years. With no significant competition in the market, the Prevenar franchise has the potential to make up for the revenue losses due to these patent expiries as we expect sales to nearly double from current $4.5 billion by the end of our forecast period. While the FDA approved the vaccine for the above age group in December 2011, the CDC is waiting for the efficacy results of an ongoing clinical study (Pfizer expects to complete the trials by 2013) before deciding on broader recommendations. | Recently FDA approved blockbuster potential blood thinner Eliquis (Read Pfizer Secures Coveted FDA Approval For Eliquis ). The vaccine was showing consistent double digit growth rates until Q3, where it surprised the market by posting a decline in revenues (Read Pfizer Earnings Decline As Prevnar And Emerging Markets Disappoint ). The U.S. Centers for Disease Control and Prevention's (CDC) recommendation for adults aged 19 years or older with impaired immune system will also lend support. | See our complete analysis for Pfizer Drugs like Prevenar (7 & 13) hold the key for future growth for Pfizer as the drug marker has been grappling with the issue of patent cliff and has seen its sales slumping in the last couple of quarters. The vaccine was showing consistent double digit growth rates until Q3, where it surprised the market by posting a decline in revenues (Read Pfizer Earnings Decline As Prevnar And Emerging Markets Disappoint ). While the FDA approved the vaccine for the above age group in December 2011, the CDC is waiting for the efficacy results of an ongoing clinical study (Pfizer expects to complete the trials by 2013) before deciding on broader recommendations. | See our complete analysis for Pfizer Drugs like Prevenar (7 & 13) hold the key for future growth for Pfizer as the drug marker has been grappling with the issue of patent cliff and has seen its sales slumping in the last couple of quarters. With no significant competition in the market, the Prevenar franchise has the potential to make up for the revenue losses due to these patent expiries as we expect sales to nearly double from current $4.5 billion by the end of our forecast period. Further, the vaccine received World Health Organization (WHO) qualification for use in adults aged 50 years and above, which means WHO member countries can now use the vaccine for older patients. |
34328.0 | 2013-01-09 00:00:00 UTC | Zacks #5 Rank Additions for Wednesday - Tale of the Tape | ABT | https://www.nasdaq.com/articles/zacks-5-rank-additions-for-wednesday-tale-of-the-tape-2013-01-09 | nan | nan | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today:
Abbott Laboratories ( ABT )
Aeropostale, Inc. ( ARO )
Agilent Technologies Inc. ( A )
Alexandria Real Estate Equities Inc. ( ARE )
Altera Corp. ( ALTR )
View the entire Zacks #5 Rank List .
AGILENT TECH (A): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
ALTERA CORP (ALTR): Free Stock Analysis Report
ALEXANDRIA REAL (ARE): Free Stock Analysis Report
AEROPOSTALE INC (ARO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) Alexandria Real Estate Equities Inc. ( ARE ) Altera Corp. ( ALTR ) View the entire Zacks #5 Rank List . AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ALTERA CORP (ALTR): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) Alexandria Real Estate Equities Inc. ( ARE ) Altera Corp. ( ALTR ) View the entire Zacks #5 Rank List . AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ALTERA CORP (ALTR): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ALTERA CORP (ALTR): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) Alexandria Real Estate Equities Inc. ( ARE ) Altera Corp. ( ALTR ) View the entire Zacks #5 Rank List . | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) Alexandria Real Estate Equities Inc. ( ARE ) Altera Corp. ( ALTR ) View the entire Zacks #5 Rank List . AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report ALTERA CORP (ALTR): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
34329.0 | 2013-01-09 00:00:00 UTC | Abbott's ABSORB in Phase III Trial - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbotts-absorb-in-phase-iii-trial-analyst-blog-2013-01-09 | nan | nan | Abbott Laboratories ( ABT ) recently announced that its Absorb Bioresorbable Vascular Scaffold (BVS) device has moved into a phase III study, ABSORB III, in the US.
The randomized, controlled study will enroll 2,250 patients and will compare Absorb BVS's performance to the company's Xience drug eluting stents. We note that Absorb is available in Europe and some Latin American and Asia Pacific nations. ABSORB III data would be used to support regulatory filings in the US.
We note that Abbott recently gained US Food and Drug Administration (FDA) approval for its Xience Xpedition everolimus eluting coronary stent system. Xience Xpedition will be launched immediately in the US.
Abbott sells coronary, endovascular, structural heart, vessel closure and other medical device products on a worldwide basis through its vascular products segment. The company is consistently working on boosting its vascular products portfolio and expects to launch several products in the next five years.
Abbott recently separated its research-based pharmaceuticals business by creating a new company - AbbVie ( ABBV ). The decision to spin off the business was taken back in October 2011 when Abbott decided to separate its business into two publicly traded companies - one in diversified medical products and the other in research-based pharmaceuticals.
Our Recommendation
We are positive on the split which should allow the two separate entities to perform in a more focused manner.
We currently have a Neutral recommendation on Abbott Laboratories. The stock carries a Zacks Rank #4 (Sell). Right now, Repligen Corporation ( RGEN ) looks attractive with a Zacks Rank #1 (Strong Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
REPLIGEN (RGEN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ( ABT ) recently announced that its Absorb Bioresorbable Vascular Scaffold (BVS) device has moved into a phase III study, ABSORB III, in the US. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report To read this article on Zacks.com click here. The randomized, controlled study will enroll 2,250 patients and will compare Absorb BVS's performance to the company's Xience drug eluting stents. | ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ( ABT ) recently announced that its Absorb Bioresorbable Vascular Scaffold (BVS) device has moved into a phase III study, ABSORB III, in the US. The randomized, controlled study will enroll 2,250 patients and will compare Absorb BVS's performance to the company's Xience drug eluting stents. | Abbott Laboratories ( ABT ) recently announced that its Absorb Bioresorbable Vascular Scaffold (BVS) device has moved into a phase III study, ABSORB III, in the US. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report To read this article on Zacks.com click here. The decision to spin off the business was taken back in October 2011 when Abbott decided to separate its business into two publicly traded companies - one in diversified medical products and the other in research-based pharmaceuticals. | Abbott Laboratories ( ABT ) recently announced that its Absorb Bioresorbable Vascular Scaffold (BVS) device has moved into a phase III study, ABSORB III, in the US. ABBVIE INC (ABBV): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report To read this article on Zacks.com click here. The decision to spin off the business was taken back in October 2011 when Abbott decided to separate its business into two publicly traded companies - one in diversified medical products and the other in research-based pharmaceuticals. |
34330.0 | 2013-01-08 00:00:00 UTC | This Stock Could be Perfect for the "Dividend Decade" | ABT | https://www.nasdaq.com/articles/stock-could-be-perfect-dividend-decade-2013-01-08 | nan | nan | If you're a regular StreetAuthority reader, then you may have heard of the "Dividend Decade." If you haven't, then it's a prediction that in the next 10 years, the broadermarket will be absolutely flat . Instead, dividends will account for all of the market's total return.
This means companies that steadily raise dividends will outperform the overall market in the next decade. And one of my favoritestocks that could benefit from this trend just went through a major change, making it an even sweeter deal.
Health care giant Abbott Laboratories ( ABT ) celebrated the New Year by splitting itself in two. The legacy pharmaceutical business, which was renamed Abbvie ( ABBV ) ,will focus on breakthrough drug therapies. The company's diagnostic tests, medical devices, nutritional products and branded generic pharmaceutical operations were combined into a second business that retains the Abbott name. Abbott structured the breakup as a tax-free distribution to shareholders, with investors receiving one Abbvie share for every Abbott share they held.
Abbott made a brilliant move by spinning off its pharmaceutical business. Humira, its top-selling drug, accounts for more than half this segment's business, and itspatent expires in 2017. Spinning off this segment frees the rest of the company from its risks. StreetAuthority Co-Founder Paul Tracy has even identified it as one of the Top 10 Stocks for 2013 .
Abbvie will pay a rich $1.60 annualdividend , which at the current $35 share price, provides a hefty 4.6%yield . Equally important, Abbvie is already showing many of the characteristics of a high-quality dividendstock . Abbvie generates plenty ofearnings andcash flow , has a cash-richbalance sheet and a hugely valuableasset in its blockbuster drug Humira.
The top-selling drug is used to treat rheumatoid arthritis, psoriasis, Crohn's disease and other common auto-immune disorders. Sales of the drug have doubled in the past four years. Humira is expected to earn $10 billion inrevenue this year and accounts for roughly half of Abbvie's total sales.
There is risk associated with Abbvie's loss ofpatent protection on Humira three years from now, but analysts don't anticipate sales will decline for several reasons. First, Humira belongs to a class of drugs (biologics) that is extremely difficult to manufacture. This will likely limit competition from generics. Second, because of Humira's proven track record and dominant share in themarket for rheumatoid arthritis drugs, physicians will probably continue to utilize Humira as a first-line treatment even after generic versions are launched. Third, overall sales of auto-immune drugs are projected to grow 6% a year to reach about $48 billion by 2015. Humira has already been approved as a treatment for nine different illnesses and Abbvie has four more indications in late-stage clinical trials that should help drive future sales growth. For these reasons, analysts say Humira sales will likely continue to rise and peak at more than $12 billion by 2017.
Abbvie also owns other category winners. These include a leading testosterone replacement therapy drug, a hormonal therapy for thyroid disease and two of the top-selling antiviral medicines for HIV.
Of course, when all is said and done, any pharmaceutical company is only as good as its drug discovery pipeline. But AbbVie has made impressive progress in recent years through internal drug development, and licensing and collaboration deals. The company is considered second only to Gilead Sciences (Nasdaq: GILD) in the strength of its hepatitis C drug franchise. Both companies are developing new oral treatments for hepatitis C, a deadly disorder that infects 180 million individuals worldwide.
Beginning in 2015, Abbvie expects to begin launching four major new drugs in rapid succession, each of which is estimated to be worth $4 to $6 billion in peak sales. In all, the company has a total of 20 new drugs in mid- to late-stage development.
In addition to a flourishing new-drug pipeline, Abbvie has a global footprint that few new-drug companies can match. The company has commercial operations worldwide and sales in more than 150 countries. Abbvie plans toleverage this global presence in the next several years and is targeting nearly $1 billion in new sales from developing markets.
Thestock split happened in early January, so Abbvie won't be reporting sales and earnings as a stand-alone company until the first quarter is completed. However, the past performance of Abbott's proprietary pharmaceuticals business provides a framework for what Abbvie investors can expect. During the first nine months of 2012, sales of proprietary pharmaceuticals improved 7% to $12.9 billion, fueled by a 29% jump in Androgel sales and a 19% increase in Humira sales.Operating income for this business rose 13% to $5.6 billion andprofit margins were generous even by pharmaceutical industry standards at 43%. Analysts predict Abbvie will likely generate sales of $18 billion next year and 2013 earnings per share estimates range from $3.03 to $3.17.
This stock has $7.2 billion ofcash and an investment-gradecredit rating . The company is also a cash machine that generates roughly $6 billion of cash flow a year, which will more than twice covers the $2.5 billion annual dividend payment. Management targets 50% payout of cash earnings for the dividend on an ongoing basis and is strongly committed to dividend growth.
Old Abbott had a stellar track record, increasing dividends 40 years in a row, including a 6% dividend increase just prior to the breakup to an annualized rate of $2.16 a share. Abbott divided the dividend amount between the two companies when they split. As stated before, Abbvie plans to pay a $1.60 annual dividend currently yielding 4.6%, while Abbott will pay a 56-cent annual dividend that yields 0.9%.
Risks to Consider: Many new drugs never reach the market and there is noguarantee that Abbvie's pipeline will deliver future revenue and profits. However, this risk is mitigated by the fact that half of Abbvie's pipeline products are in late-stage development when risks are smaller. Also, in connection with the breakup, Abbvie raised $14.7 billion of debt, which was used to make an $8.5 billion cash payment to Abbott. However, with cash flow from operations close to $6 billion annually and no major debtmaturities before 2015, Abbvie shouldn't have any problem servicing its debt.
Action to Take --> By purchasing Abbvieshares now, investors can collect a 4.6% dividend while they wait for new drugs to launch beginning in 2015, which should fuel earnings growth as well as share price gains.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Health care giant Abbott Laboratories ( ABT ) celebrated the New Year by splitting itself in two. The company's diagnostic tests, medical devices, nutritional products and branded generic pharmaceutical operations were combined into a second business that retains the Abbott name. Thestock split happened in early January, so Abbvie won't be reporting sales and earnings as a stand-alone company until the first quarter is completed. | Health care giant Abbott Laboratories ( ABT ) celebrated the New Year by splitting itself in two. Humira is expected to earn $10 billion inrevenue this year and accounts for roughly half of Abbvie's total sales. Analysts predict Abbvie will likely generate sales of $18 billion next year and 2013 earnings per share estimates range from $3.03 to $3.17. | Health care giant Abbott Laboratories ( ABT ) celebrated the New Year by splitting itself in two. Humira is expected to earn $10 billion inrevenue this year and accounts for roughly half of Abbvie's total sales. During the first nine months of 2012, sales of proprietary pharmaceuticals improved 7% to $12.9 billion, fueled by a 29% jump in Androgel sales and a 19% increase in Humira sales.Operating income for this business rose 13% to $5.6 billion andprofit margins were generous even by pharmaceutical industry standards at 43%. | Health care giant Abbott Laboratories ( ABT ) celebrated the New Year by splitting itself in two. Humira is expected to earn $10 billion inrevenue this year and accounts for roughly half of Abbvie's total sales. Abbvie plans toleverage this global presence in the next several years and is targeting nearly $1 billion in new sales from developing markets. |
34331.0 | 2013-01-07 00:00:00 UTC | Weekly Healthcare Note: Pfizer, JNJ, Abbott Labs & UnitedHealth | ABT | https://www.nasdaq.com/articles/weekly-healthcare-note-pfizer-jnj-abbott-labs-unitedhealth-2013-01-07 | nan | nan | The past week was handful of events for the healthcare sector. First, Pfizer ( PFE ) received much awaited FDA approval for its blockbuster potential blood thinner drug, Eliquis. Healthcare conglomerate Johnson & Johnson ( JNJ ) followed the same with an early FDA nod for its experimental TB drug Bedaquiline or Sirturo. Abbott Labs ( ABT ) started the new year by completing its much touted spin-off into two separate companies. In addition, the company received FDA approval for its next generation Xience Xpedition drug eluting stent ( DES ). Meanwhile, UnionHealth Group ( UNH ) stock plummeted nearly 5% on Thursday after influential investment bank Deutsche Bank downgraded rating of the company's shares to hold from outperform.
Pfizer
Pfizer had a big reason to celebrate on new year's eve as its blockbuster potential blood thinner drug Eliquis received coveted U.S. FDA nod for patients with atrial fibrillation, which is not caused by a heart valve problem. The much anticipated approval adds to recent positive developments around the drug as recently the drug secured Europe and Japan's approval for expanding the use to non-valvular atrial fibrillation or NVAF (irregular heart beat) patients. The approval will open the much larger U.S. market that has evaded the drug until now and will bring reprieve for Pfizer's cardiovascular franchise, which is grappling with patent expiry of Lipitor. Pfizer lost patent protection for its once mighty drug Lipitor in Nov 2011, putting at risk about $10 billion in the division.
With addition of new indications like treatment for VTE, acute coronary syndrome (related to the blockage of coronary arteries) etc and Pfizer's already huge cardiovascular sales force, Eliquis could garner expected peak sales of $3 billion. Read our note Pfizer Secures Coveted FDA Approval For Eliquis for detail analysis.
See Full Analysis For Pfizer here
Johnson & Johnson
Johnson & Johnson also entered 2013 with a major boost as its experimental drug for the treatment of multi-drug resistant TB (MDR-TB), Bedaquilinean was approved by the FDA under its accelerated approval program. The approval was widely anticipated after the drug exhibited strong efficacy in mid-stage clinical trials. The drug will be a part of the company's anti-Infectives division, which is seeing a near-term decline in revenues due to the Levaquin patent expiry. However, it will be a long way for the drug to reach its potential peak sales as it will have to wait for approvals from other countries, especially developing countries, where TB is more widespread than the U.S. Read our note Johnson & Johnson Updates: Receives FDA Approval For New Tuberculosis Drug for detail analysis.
See Full Analysis ForJohnson & Johnson here
Abbott Labs
Abbott Labs was in the news for a variety of reasons. The diversified healthcare company completed its split into two separate publicly traded companies. Abbott Labs is now left with low margin but diversified products like generic drugs, nutritional and medical devices in its portfolio while higher-margin proprietary drugs like Humira, Tricor/Trilipx have been transferred to AbbVie. Our current $67 price estimate for Abbott Labs is for consolidated entity as it does not reflect the split. We will soon update our model on availability of 2012 10-k form and pro-forma financials. Read our note Abbott Labs Snapshot As AbbVie Begins Trading for more details.
Further, Abbott Labs won FDA approval for its next-generation Xience Xpedition DES.DES is placed into narrowed /diseased coronary arteries and slowly releases a drug to block cell proliferation to prevent arteries from re-narrowing. While Abbott has already been selling Xience Xpedition in Europe, Asia and the Middle East for a while, FDA approval will open the vast U.S. market for the company. In our current model, stents are part of the company's Vascular franchise, which has been Abbott's largest contributor to growth of late due to the success of the Xience and Promus coronary stents. Backed by such new products, we expect the company's overall vascular market share to increase to our expectations of over 17.5% by the end of the Trefis forecast period.
SeeFull AnalysisFor Abbott Labs here
UnitedHealth Group
UnitedHealth's stock took a beating on Thursday after a downgrade from Deutsche Bank (from outperform to hold with reduced target price of $61). The investment bank cited growing price competition for the healthcare insurance provider. This added to negative sentiments around the stock. Recently, in its investor conference, the company expected a continued decline in fully insured commercial customers in 2013, as more businesses are seen covering healthcare costs themselves while they hire the insurer to manage healthcare benefits.
But, we think this downtrend should be temporary as we already anticipate margins pressure in our model due to many employers cutting healthcare benefits in response to market conditions. However, as economic conditions gradually improve we expect employer-sponsored health coverage to increase along with the quality of those plans (which will in turn bring higher premiums).
Further, we believe that the benefits for UnitedHealth from the increase in enrollments from full implementation of Patient Protection and Affordable Care Act ("PPACA") will outweigh the pressures on pricing and margins. (Read UnitedHealth Well-Positioned Going Into 2013, Stock Worth $69 )
SeeFull AnalysisFor UnitedHealth Group here
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
Deutsche Bank
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 ) started the new year by completing its much touted spin-off into two separate companies. The approval will open the much larger U.S. market that has evaded the drug until now and will bring reprieve for Pfizer's cardiovascular franchise, which is grappling with patent expiry of Lipitor. However, as economic conditions gradually improve we expect employer-sponsored health coverage to increase along with the quality of those plans (which will in turn bring higher premiums). | Abbott Labs ( ABT ) started the new year by completing its much touted spin-off into two separate companies. Pfizer Pfizer had a big reason to celebrate on new year's eve as its blockbuster potential blood thinner drug Eliquis received coveted U.S. FDA nod for patients with atrial fibrillation, which is not caused by a heart valve problem. Read our note Pfizer Secures Coveted FDA Approval For Eliquis for detail analysis. | Abbott Labs ( ABT ) started the new year by completing its much touted spin-off into two separate companies. See Full Analysis For Pfizer here Johnson & Johnson Johnson & Johnson also entered 2013 with a major boost as its experimental drug for the treatment of multi-drug resistant TB (MDR-TB), Bedaquilinean was approved by the FDA under its accelerated approval program. However, it will be a long way for the drug to reach its potential peak sales as it will have to wait for approvals from other countries, especially developing countries, where TB is more widespread than the U.S. Read our note Johnson & Johnson Updates: Receives FDA Approval For New Tuberculosis Drug for detail analysis. | Abbott Labs ( ABT ) started the new year by completing its much touted spin-off into two separate companies. However, it will be a long way for the drug to reach its potential peak sales as it will have to wait for approvals from other countries, especially developing countries, where TB is more widespread than the U.S. Read our note Johnson & Johnson Updates: Receives FDA Approval For New Tuberculosis Drug for detail analysis. See Full Analysis ForJohnson & Johnson here Abbott Labs Abbott Labs was in the news for a variety of reasons. |
34332.0 | 2013-01-07 00:00:00 UTC | Zacks #5 Rank Additions for Monday - Tale of the Tape | ABT | https://www.nasdaq.com/articles/zacks-5-rank-additions-for-monday-tale-of-the-tape-2013-01-07 | nan | nan | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today:
Abbott Laboratories ( ABT )
AerCap Holdings N.V. ( AER )
Aeropostale, Inc. ( ARO )
Agilent Technologies Inc. ( A )
America's Car-Mart, Inc. ( CRMT )
View the entire Zacks #5 Rank List .
AGILENT TECH (A): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
AERCAP HLDGS NV (AER): Free Stock Analysis Report
AEROPOSTALE INC (ARO): Free Stock Analysis Report
AMERICAS CAR-MT (CRMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) AerCap Holdings N.V. ( AER ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) America's Car-Mart, Inc. ( CRMT ) View the entire Zacks #5 Rank List . AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report AERCAP HLDGS NV (AER): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) AerCap Holdings N.V. ( AER ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) America's Car-Mart, Inc. ( CRMT ) View the entire Zacks #5 Rank List . AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report AERCAP HLDGS NV (AER): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report AERCAP HLDGS NV (AER): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) AerCap Holdings N.V. ( AER ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) America's Car-Mart, Inc. ( CRMT ) View the entire Zacks #5 Rank List . | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: Abbott Laboratories ( ABT ) AerCap Holdings N.V. ( AER ) Aeropostale, Inc. ( ARO ) Agilent Technologies Inc. ( A ) America's Car-Mart, Inc. ( CRMT ) View the entire Zacks #5 Rank List . AGILENT TECH (A): Free Stock Analysis Report ABBOTT LABS (ABT): Free Stock Analysis Report AERCAP HLDGS NV (AER): Free Stock Analysis Report AEROPOSTALE INC (ARO): Free Stock Analysis Report AMERICAS CAR-MT (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
34333.0 | 2013-01-04 00:00:00 UTC | Patent Challenge for Auxilium Pharma - Analyst Blog | ABT | https://www.nasdaq.com/articles/patent-challenge-for-auxilium-pharma-analyst-blog-2013-01-04 | nan | nan | Auxilium Pharmaceuticals, Inc. ( AUXL ) and Xstelos Holdings, Inc. ( XTLS ) recently received a notice from Upsher-Smith Laboratories, Inc. regarding the filing of a 505(b)(2) new drug application (NDA) for Auxilium Pharma's 1% testosterone gel, Testim.
The 505(b)(2) NDA contains a paragraph IV certification under 21 U.S.C. Section 314.52(c). The company is challenging ten US patents which are slated to expire in the 2023-2025 timeframe.
We note in April 2012, Watson Pharmaceuticals ( WPI ) also challenged Testim's patents. Auxilium Pharma has filed a patent infringement lawsuit against Watson.
Testim is the lead product at Auxilium Pharma, approved for the treatment of hypogonadism or low testosterone level. Testim sales came in at $55.4 million in the third quarter of 2012, accounting for 78% of the company's revenues.
Testim's share of total prescriptions for the gel segment of the testosterone replacement therapy (TRT) market was 20% in 2011, down from 22% in the year-ago period. The TRT gel market is growing at a slower rate and this will affect sales going forward.
Apart from this, the TRT market is highly competitive with the presence of Abbott Labs' ( ABT ) AndroGel, Endo Pharmaceutical's ( ENDP ) Fortesta and Eli Lilly's ( LLY ) Axiron.
The testosterone gel market will become even more competitive from 2015 when generic versions of AndroGel 1% are scheduled to enter the market. The availability of a cheaper generic testosterone gel product could impact Testim's market share as well as its formulary status.
In this scenario, the sooner-than-expected entry of a generic version would be a major blow for the company.
Auxilium Pharma currently carries a Zacks #3 Rank (Hold).
Currently, pharma stocks which look more attractive are Valeant Pharmaceuticals International, Inc. ( VRX ) and Ironwood Pharmaceuticals, Inc. ( IRWD ). Both carry a Zacks #1 Rank (Strong Buy).
ABBOTT LABS (ABT): Free Stock Analysis Report
AUXILIUM PHARMA (AUXL): Free Stock Analysis Report
ENDO PHARMACEUT (ENDP): Free Stock Analysis Report
IRONWOOD PHARMA (IRWD): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
VALEANT PHARMA (VRX): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
(XTLS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apart from this, the TRT market is highly competitive with the presence of Abbott Labs' ( ABT ) AndroGel, Endo Pharmaceutical's ( ENDP ) Fortesta and Eli Lilly's ( LLY ) Axiron. ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report IRONWOOD PHARMA (IRWD): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report (XTLS): ETF Research Reports To read this article on Zacks.com click here. Testim's share of total prescriptions for the gel segment of the testosterone replacement therapy (TRT) market was 20% in 2011, down from 22% in the year-ago period. | Apart from this, the TRT market is highly competitive with the presence of Abbott Labs' ( ABT ) AndroGel, Endo Pharmaceutical's ( ENDP ) Fortesta and Eli Lilly's ( LLY ) Axiron. ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report IRONWOOD PHARMA (IRWD): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report (XTLS): ETF Research Reports To read this article on Zacks.com click here. The availability of a cheaper generic testosterone gel product could impact Testim's market share as well as its formulary status. | ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report IRONWOOD PHARMA (IRWD): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report (XTLS): ETF Research Reports To read this article on Zacks.com click here. Apart from this, the TRT market is highly competitive with the presence of Abbott Labs' ( ABT ) AndroGel, Endo Pharmaceutical's ( ENDP ) Fortesta and Eli Lilly's ( LLY ) Axiron. Auxilium Pharmaceuticals, Inc. ( AUXL ) and Xstelos Holdings, Inc. ( XTLS ) recently received a notice from Upsher-Smith Laboratories, Inc. regarding the filing of a 505(b)(2) new drug application (NDA) for Auxilium Pharma's 1% testosterone gel, Testim. | Apart from this, the TRT market is highly competitive with the presence of Abbott Labs' ( ABT ) AndroGel, Endo Pharmaceutical's ( ENDP ) Fortesta and Eli Lilly's ( LLY ) Axiron. ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report IRONWOOD PHARMA (IRWD): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report (XTLS): ETF Research Reports To read this article on Zacks.com click here. Auxilium Pharma has filed a patent infringement lawsuit against Watson. |
34334.0 | 2013-01-03 00:00:00 UTC | Abbott Labs Snapshot As AbbVie Begins Trading | ABT | https://www.nasdaq.com/articles/abbott-labs-snapshot-abbvie-begins-trading-2013-01-03 | nan | nan | Abbott Labs' ( ABT ) split into two separately trading companies: one, Abbott Labs, with diversified medical products, and the other, AbbVie, with research-based proprietary pharmaceuticals, will be effective from today on Jan 2 and AbbVie will begin trading today. Our $67 price estimate for Abbott Labs is for consolidated entity, and our current analysis does not reflect the split. We will soon update our model on availability of 2012 10-k form and pro-forma financials. Meanwhile, we provide the detailed structure and prospects of the companies following the spin-off.
See our complete analysis for Abbott Labs here
Abbott Labs: A Well Diversified Play
Post spin-off, Abbott Labs has a diverse portfolio of healthcare products including:
Pharmaceuticals - Generic drugs
Nutritionals - Products such as infant formulas, snack bars and meal replacement shakes
Vascular - Minimally invasive medical devices for heart diseases, strokes, carotid artery diseases, and other serious vascular conditions
Diagnostics - Systems and tests used for screening for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological diseases and infectious diseases such as hepatitis and HIV
While this business is left with products having relatively lower margins, we expect growth to be fairly stable in the long term. These businesses has a significant presence in rapidly growing markets like India, China and Russia and should provide a substantial growth opportunity.
In the pharmaceutical business, the company committed to several purchases in the past like Solvay and Piramal to diversify its portfolio and expand into emerging markets. On a similar note, the company recently opened a nutritional R&D center in India and struck an R&D deal with a Russian group to boost its nutritional business. In the vascular business, the company is developing a next-generation Drug Eluting Stent ( DES ), XIENCE Xpedition, which is expected to launch in Europe this year and in the U.S. in 2013. Further, the company's XIENCE PRIME received approval in Japan earlier this year.
AbbVie: Dependence On Humira Could Hurt
AbbVie has the higher-margin proprietary pharmaceuticals and biologics, including primary care and specialty care drugs that prevent and treat conditions such as autoimmune diseases, lipid disorders, kidney diseases, prostate cancer, thyroid diseases and HIV. The company's prized asset, the blockbuster drug Humira, is part of AbbVie and will drive future revenues for the company.
However, even greater dependence on Humira is a concern. Humira will lose patent protection in late 2016 in the U.S. and mid-2017 in Europe. The company's current pipeline doesn't have a lot of very strong potential blockbuster drugs, which could limit its growth potential in the long term. Recently its partner Reata Pharmaceuticals discontinued a late-stage trial of their potential blockbuster drug for chronic kidney disease and diabetes due to safety concerns raised by an independent safety committee.
Another worry is the growing competition for Humira (Read Pfizer Receives Major Boost As FDA Approves RA Drug Tofacitinib). Further, Tricor went off-patent in July 2012 while other drugs such as Niaspan and Kaletra are seeing a decline in sales due to significant competition.
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 ) split into two separately trading companies: one, Abbott Labs, with diversified medical products, and the other, AbbVie, with research-based proprietary pharmaceuticals, will be effective from today on Jan 2 and AbbVie will begin trading today. These businesses has a significant presence in rapidly growing markets like India, China and Russia and should provide a substantial growth opportunity. In the vascular business, the company is developing a next-generation Drug Eluting Stent ( DES ), XIENCE Xpedition, which is expected to launch in Europe this year and in the U.S. in 2013. | Abbott Labs' ( ABT ) split into two separately trading companies: one, Abbott Labs, with diversified medical products, and the other, AbbVie, with research-based proprietary pharmaceuticals, will be effective from today on Jan 2 and AbbVie will begin trading today. See our complete analysis for Abbott Labs here Abbott Labs: A Well Diversified Play Post spin-off, Abbott Labs has a diverse portfolio of healthcare products including: Pharmaceuticals - Generic drugs Nutritionals - Products such as infant formulas, snack bars and meal replacement shakes Vascular - Minimally invasive medical devices for heart diseases, strokes, carotid artery diseases, and other serious vascular conditions Diagnostics - Systems and tests used for screening for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological diseases and infectious diseases such as hepatitis and HIV While this business is left with products having relatively lower margins, we expect growth to be fairly stable in the long term. Recently its partner Reata Pharmaceuticals discontinued a late-stage trial of their potential blockbuster drug for chronic kidney disease and diabetes due to safety concerns raised by an independent safety committee. | Abbott Labs' ( ABT ) split into two separately trading companies: one, Abbott Labs, with diversified medical products, and the other, AbbVie, with research-based proprietary pharmaceuticals, will be effective from today on Jan 2 and AbbVie will begin trading today. See our complete analysis for Abbott Labs here Abbott Labs: A Well Diversified Play Post spin-off, Abbott Labs has a diverse portfolio of healthcare products including: Pharmaceuticals - Generic drugs Nutritionals - Products such as infant formulas, snack bars and meal replacement shakes Vascular - Minimally invasive medical devices for heart diseases, strokes, carotid artery diseases, and other serious vascular conditions Diagnostics - Systems and tests used for screening for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological diseases and infectious diseases such as hepatitis and HIV While this business is left with products having relatively lower margins, we expect growth to be fairly stable in the long term. AbbVie: Dependence On Humira Could Hurt AbbVie has the higher-margin proprietary pharmaceuticals and biologics, including primary care and specialty care drugs that prevent and treat conditions such as autoimmune diseases, lipid disorders, kidney diseases, prostate cancer, thyroid diseases and HIV. | Abbott Labs' ( ABT ) split into two separately trading companies: one, Abbott Labs, with diversified medical products, and the other, AbbVie, with research-based proprietary pharmaceuticals, will be effective from today on Jan 2 and AbbVie will begin trading today. Further, the company's XIENCE PRIME received approval in Japan earlier this year. AbbVie: Dependence On Humira Could Hurt AbbVie has the higher-margin proprietary pharmaceuticals and biologics, including primary care and specialty care drugs that prevent and treat conditions such as autoimmune diseases, lipid disorders, kidney diseases, prostate cancer, thyroid diseases and HIV. |
34335.0 | 2013-01-03 00:00:00 UTC | Pfizer Secures Coveted FDA Approval For Eliquis | ABT | https://www.nasdaq.com/articles/pfizer-secures-coveted-fda-approval-eliquis-2013-01-03 | nan | nan | Pfizer ( PFE ) has received a major boost as its blockbuster potential blood thinner drug Eliquis has received coveted U.S. FDA nod for patients with atrial fibrillation, which is not caused by a heart valve problem. The much anticipated approval adds to recent positive developments around the drug and will open much larger U.S. market that has evaded the drug until now. Last week, the drug secured Japan's approval for expanding the use to non-valvular atrial fibrillation or NVAF (irregular heart beat) patients. Eliquis had already received European Medicines Agency's (EMA) approval for the similar indication last month (Read Pfizer Update: Europe Approves Eliquis For Atrial Fibrillation ).
See our complete analysis for Pfizer
Eliquis (Apixaban) is a drug used in blood thinning and is part of the antithrombotic family, which helps prevent clotting that can restrict blood circulation to the organs. Along with aforementioned approvals, Eliquis is already approved in many countries (excluding the U.S.) for preventing blood clots in patients who have knee or hip replacements. The FDA, which has turned down the drug two times earlier, was expected to take a decision on Eliquis by March 2013. However, an early approval will help the drug take on its closest rivals Johnson & Johnson's ( JNJ ) Xarelto and Boehringer-Ingelheim's Pradax, which have already been approved for atrial fibrillation patients.
This however, is only a halfway for Eliquis, which is expected to garner as much as $3 billion in peak sales. The drug will not be able to achieve its full sales potential without its extension to treatment for VTE and acute coronary syndrome (related to the blockage of coronary arteries), which affects millions of patients worldwide each year. We, however, see recent impressive clinical results as a positive sign for approval. Last month, Eliquis, when compared with a placebo, managed to significantly reduce blood clots risks in patients suffering from venous thromboembolism or VTE (a blood clot within a vein).
But, the timing of these pending approvals will matter as J&J has already resubmitted clinical trials data in a bid to convince the U.S. FDA to approve the expanded use of Xarelto by acute coronary syndrome patients (to prevent heart attack and stroke in patients who have previously had severe chest pain or heart attack). However once approved for other indications, we expect Eliquis sales to see strong rise as it has exhibited significant safety over warfarin and aspirin (ARISTOTLE and AVERROES trials) in reducing the risk of stroke, and dangerous blood clots without a major bleeding amongst all non-warfarin drugs, including Xarelto and Pradax. Bleeding is a major side effect of blood thinning drugs, sometimes leading to death. Side effects are one of the biggest factors determining a drug's future. Pfizer's strong cardiovascular marketing force (Lipitor) will also come handy in pushing the drug.
Submit a Post at Trefis Powered by Data and Interactive Charts | Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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, the drug secured Japan's approval for expanding the use to non-valvular atrial fibrillation or NVAF (irregular heart beat) patients. But, the timing of these pending approvals will matter as J&J has already resubmitted clinical trials data in a bid to convince the U.S. FDA to approve the expanded use of Xarelto by acute coronary syndrome patients (to prevent heart attack and stroke in patients who have previously had severe chest pain or heart attack). However once approved for other indications, we expect Eliquis sales to see strong rise as it has exhibited significant safety over warfarin and aspirin (ARISTOTLE and AVERROES trials) in reducing the risk of stroke, and dangerous blood clots without a major bleeding amongst all non-warfarin drugs, including Xarelto and Pradax. | Pfizer ( PFE ) has received a major boost as its blockbuster potential blood thinner drug Eliquis has received coveted U.S. FDA nod for patients with atrial fibrillation, which is not caused by a heart valve problem. But, the timing of these pending approvals will matter as J&J has already resubmitted clinical trials data in a bid to convince the U.S. FDA to approve the expanded use of Xarelto by acute coronary syndrome patients (to prevent heart attack and stroke in patients who have previously had severe chest pain or heart attack). However once approved for other indications, we expect Eliquis sales to see strong rise as it has exhibited significant safety over warfarin and aspirin (ARISTOTLE and AVERROES trials) in reducing the risk of stroke, and dangerous blood clots without a major bleeding amongst all non-warfarin drugs, including Xarelto and Pradax. | Pfizer ( PFE ) has received a major boost as its blockbuster potential blood thinner drug Eliquis has received coveted U.S. FDA nod for patients with atrial fibrillation, which is not caused by a heart valve problem. But, the timing of these pending approvals will matter as J&J has already resubmitted clinical trials data in a bid to convince the U.S. FDA to approve the expanded use of Xarelto by acute coronary syndrome patients (to prevent heart attack and stroke in patients who have previously had severe chest pain or heart attack). However once approved for other indications, we expect Eliquis sales to see strong rise as it has exhibited significant safety over warfarin and aspirin (ARISTOTLE and AVERROES trials) in reducing the risk of stroke, and dangerous blood clots without a major bleeding amongst all non-warfarin drugs, including Xarelto and Pradax. | The much anticipated approval adds to recent positive developments around the drug and will open much larger U.S. market that has evaded the drug until now. Last week, the drug secured Japan's approval for expanding the use to non-valvular atrial fibrillation or NVAF (irregular heart beat) patients. Bleeding is a major side effect of blood thinning drugs, sometimes leading to death. |
34336.0 | 2013-01-03 00:00:00 UTC | Three Actionable Trading Ideas Right Now | ABT | https://www.nasdaq.com/articles/three-actionable-trading-ideas-right-now-2013-01-03 | nan | nan | On the first trading day of the New Year the U.S. stock market exploded higher in the wake of a last-minute Congressional deal to avert the fiscal cliff. Investor exuberance sent the Dow Jones Industrial Average rocketing more than 300 points higher to over 13,400.
The Nasdaq did even better, starting 2013 with a tidy three percent gain. In terms of stock market history, Wednesday's trading session was nearly unprecedented for the opening day of a New Year.
Investor enthusiasm is riding high and market participants are hoping that the huge rally is a sign of things to come in 2013. Historically, when the stock market moves higher over the course of the first five trading days of January, there is an 86 percent chance that stocks will close the year with a gain.
This phenomenon is referred to as the "January effect," and the market rises nearly 14 percent on average when it is triggered. With the uptrend that began in March 2009 still firmly intact it may be time for individual investors to put more capital to work. Below, Benzinga offers readers three actionable ideas that could bring near-term profits this month.
Herbalife (NYSE: HLF ) - In recent weeks, multilevel marketing company Herbalife has been one of the most volatile and talked about stocks on the New York Stock Exchange. The company sells nutritional and weight-management products through third-party distributors who are compensated on both sales and recruiting of other distributors.
Over the last month, the stock has fallen around 30 percent on massive volume after billionaire hedge fund manager Bill Ackman revealed that his firm is short more than $1 billion of the stock. The Pershing Square Capital Management founder disclosed his massive bearish bet against the company on December 20th at the Ira Sohn investment conference during a three hour presentation which included 342 PowerPoint slides .
Ackman's essential thesis for the trade is that Herbalife, despite consistent and prolific sales and profit growth, is a pyramid scheme which will eventually come under intense regulatory scrutiny or collapse. The hedge fund manager said that Herbalife is his highest conviction short ever and that his price target for the stock is $0.
While Ackman has clearly done his homework on the trade, not everyone is convinced. A number of Wall Street analysts immediately came to the defense of the company and were critical of the hedge fund manager's research and conclusions. In fact, D.A. Davidson analyst Timothy Ramey said that the stock was a "Best Idea" for 2013 on Wednesday. He has a "Buy" rating on the shares and a $72 price target.
Herbalife CEO Michael Johnson also provided an aggressive response to the accusations leveled against his company and said that Ackman was engaged in "blatant market manipulation." He said that "This appears to be another attempt to illegally manipulate the market by a group of short sellers." The company also released a statement calling the presentation "a malicious attack on Herbalife's business model based largely on outdated, distorted and inaccurate information."
In recent days, the stock has bounced back strongly from its worst levels. Shares bottomed out on December 24 at around $25 and have subsequently jumped almost 29 percent from that level to $32.20. Looking ahead, there is a very specific catalyst that could provide more near-term upside in the name.
Herbalife has scheduled an analyst and investor meeting for January 10, 2013 in New York. At this meeting, Herbalife will provide comprehensive responses to questions about its business model and address Ackman's accusations in detail. It will also update investors on its business and growth prospects. In addition, Herbalife has retained Moelis & Company as a strategic advisor to defend itself against the attacks against the company.
Although this is a risky situation, being long HLF into this analyst meeting could pay off handsomely in a short period of time. Along with this catalyst, Herbalife also has $950 million remaining on its existing $1 billion share repurchase authorization and there is a good chance that it will deploy this money in an effort to fight back against Bill Ackman and other short-sellers. At current levels, Herbalife has a market cap of just under $3.5 billion so the company could buy back a huge chunk of stock in light of the steep sell-off.
Facebook (NASDAQ: FB ) - Don't look now, but Facebook has convincingly broken its lengthy downtrend and is now moving aggressively higher. The stock opened the New Year with a better than 5 percent gain and is now trading at $28. Although shares are still down around 26 percent from their $38 initial public offering price, the stock has surged roughly the same amount over the last three months and is sitting at its best levels since late July.
There are a number of near-term catalysts that could continue to propel Facebook in the month of January. The most important of these catalysts is the end of the lock-up periods in the stock. The final large lock-up expired on December 14 when 156 million Facebook shares began freely trading.
When the company went public in May, a massive number of shares held by employees and early investors were prohibited from trading for a period of time. This is commonplace in the IPO process, but it seems to have been a particularly burdensome headwind for Facebook's stock price. These lock-ups were staggered over time and were a source of large-scale selling when they expired.
This dynamic seems to have been driven in part by momentum. In the weeks and months after Facebook came public, the IPO tanked badly. The reasons for this included a very rich initial valuation combined with a large offering of shares, among other things. As the stock plunged, concerned investors became much more apt to dump large numbers of Facebook shares as they were subsequently "unlocked."
When PayPal co-founder and early Facebook investor Peter Thiel sold a huge chunk of his stock in August the sell-off in the social networking giant accelerated and prices hit new lows. The lock-up headwind has now been removed from the stock and Facebook is regaining its luster in time for the New Year.
Analysts are also turning decidedly bullish on the stock and that could lead to more significant gains in January. On Wednesday, analysts at JP Morgan (NYSE: JPM ) reiterated their "overweight" rating on the shares and bumped their price target by $6 to $35.
In a client note, JP Morgan analyst Doug Anmuth wrote, "We are incrementally positive on Facebook shares into 2013 as we believe it remains very early in the trajectory of Facebook's mobile advertising, and recent marketer feedback on mobile and News Feed ads has been positive."
The investment bank also raised its revenue estimates for the company's Mobile News Feed to $2.37 billion in 2013 and $4.0 billion in 2014 versus its previous projections of $2.0 billion and $3.3 billion, respectively.
Similar sentiments were reflected by Morgan Stanley (NYSE: MS ) analysts on Wednesday. They also lifted their earnings and revenue estimates for the company and raised their price target on the stock to $32 from $31. Morgan Stanley has an "overweight" rating on the shares and is bullish on the company's mobile prospects.
In a client note, they wrote "Facebook is making strong progress in mobile monetization, and has introduced new revenue-generating products such as a real-time bidding exchange and gifts."
The firm lifted its long-term revenue and earnings estimates by 2%-4% and is modeling EPS of $0.52/$0.85/$1.15 for fiscal 2012 through fiscal 2014. In light of the multiple catalysts that have converged around the New Year for Facebook shares, this could be a name that investors can ride to profits during the first part of 2013.
AbbVie (NYSE: ABBV ) - On Wednesday, Abbott Labs (NYSE: ABT ) completed a planned spinoff of its pharmaceutical division into a separate publicly-traded company known as AbbVie ( ABBV ). The stock climbed 2.8 percent on the day and closed at $35.12.
The goal of the spinoff, which was announced in 2011, was to unlock shareholder value for Abbott investors by creating two independent companies with distinct business lines. Prior to the completion of the deal, Abbott was one of the largest healthcare companies in the world and the two companies will remain among the most dominant in their respective sectors with market capitalizations above $50 billion.
The spinoff entity, AbbvVie, includes in its portfolio the anti-inflammation drug Humira, the painkiller Vicodin, and cholesterol drug Niaspan. Abbott Labs' products include cardiac stents, nutrition items and diagnostic tests along with well-known brands such as Ensure and Pedialyte.
Abbott's chairman and CEO Miles White called the event "the most transformative action" in the company's 125-history. AbbVie CEO Richard Gonzalez said that with his company's existing assets and focus on innovation "we intend to create significant value for our shareholders."
Investors should keep an eye on both of these stocks as similar transactions have resulted in big gains in recent years. Two of the most prominent have been Expedia's (NASDAQ: EXPE ) spinoff of TripAdvisor (NASDAQ: TRIP ) and Conoco's (NYSE: COP ) spinoff of Phillips 66 (NYSE: PSX ).
Since the two companies split in December 2011, Expedia shares have soared more than 110 percent while TripAdvisor is up over 70 percent. Similarly, Phillips 66 is up almost 69 percent since being spun-off by ConocoPhillips in May 2012. Conoco shares have gained around 5 percent during the same time period.
Although these type of gains for Abbot Labs and AbbVie may not be likely, in large part because of the sheer size of both companies, both stocks could benefit significantly in the coming year.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Gain access to more investing ideas, tools & education. Get Started on Marketfy, the first ever curated & verified Marketplace for everything trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV ) - On Wednesday, Abbott Labs (NYSE: ABT ) completed a planned spinoff of its pharmaceutical division into a separate publicly-traded company known as AbbVie ( ABBV ). The Pershing Square Capital Management founder disclosed his massive bearish bet against the company on December 20th at the Ira Sohn investment conference during a three hour presentation which included 342 PowerPoint slides . Along with this catalyst, Herbalife also has $950 million remaining on its existing $1 billion share repurchase authorization and there is a good chance that it will deploy this money in an effort to fight back against Bill Ackman and other short-sellers. | AbbVie (NYSE: ABBV ) - On Wednesday, Abbott Labs (NYSE: ABT ) completed a planned spinoff of its pharmaceutical division into a separate publicly-traded company known as AbbVie ( ABBV ). Herbalife (NYSE: HLF ) - In recent weeks, multilevel marketing company Herbalife has been one of the most volatile and talked about stocks on the New York Stock Exchange. The final large lock-up expired on December 14 when 156 million Facebook shares began freely trading. | AbbVie (NYSE: ABBV ) - On Wednesday, Abbott Labs (NYSE: ABT ) completed a planned spinoff of its pharmaceutical division into a separate publicly-traded company known as AbbVie ( ABBV ). Historically, when the stock market moves higher over the course of the first five trading days of January, there is an 86 percent chance that stocks will close the year with a gain. Herbalife (NYSE: HLF ) - In recent weeks, multilevel marketing company Herbalife has been one of the most volatile and talked about stocks on the New York Stock Exchange. | AbbVie (NYSE: ABBV ) - On Wednesday, Abbott Labs (NYSE: ABT ) completed a planned spinoff of its pharmaceutical division into a separate publicly-traded company known as AbbVie ( ABBV ). Historically, when the stock market moves higher over the course of the first five trading days of January, there is an 86 percent chance that stocks will close the year with a gain. At current levels, Herbalife has a market cap of just under $3.5 billion so the company could buy back a huge chunk of stock in light of the steep sell-off. |
34337.0 | 2013-01-03 00:00:00 UTC | Coronado Amends Ovamed Agreement - Analyst Blog | ABT | https://www.nasdaq.com/articles/coronado-amends-ovamed-agreement-analyst-blog-2013-01-03 | nan | nan | Coronado Biosciences ( CNDO ) recently amended its existing license and supply agreements with Ovamed GmbH. Coronado now has the manufacturing rights to its lead product TSO (Trichuris suis ova or CNDO-201) from Ovamed for North America, South America and Japan.
Although Coronado has the rights to TSO in its licensed territory, Ovamed will be retaining its manufacturing rights outside Coronado's territory. Ovamed's exclusive supply rights for TSO will be terminated soon after Coronado's planned manufacturing facility in Woburn, MA, is operational. The new manufacturing facility's build out and site preparation is expected to commence soon.
The new manufacturing site will ensure production of phase III supplies of TSO throughout the year. Ovamed will provide assistance in building the manufacturing facility and will continue to provide with clinical supplies to Coronado until the new facility is ready.
Coronado will be paying a total of $1.5 million in three equal installments in the years 2014, 2015 and 2016 as per the amendment. This payment is in exchange of the product supply payments that would have been payable to Ovamed for exclusive supplies and certain fees for product manufactured and sold by Coronado.
In March 2012, Coronado entered into an agreement with Falk and Ovamed to develop TSO for the treatment of Crohn's disease. In August 2012, a phase II study on TSO was initiated in the US in patients suffering from Crohn's disease. Coronado expects to complete the phase II study in the second half of 2013.
We remind investors that the Crohn's disease market currently has players like Abbott Labs ( ABT ).
Coronadocurrently carries a Zacks #2 Rank (Buy). Meanwhile other pharma stocks such as Targacept, Inc. ( TRGT ) and Repligen Corporation ( RGEN ) carry a Zacks #1 Rank (Strong Buy).
ABBOTT LABS (ABT): Free Stock Analysis Report
CORONADO BIOSCI (CNDO): Free Stock Analysis Report
REPLIGEN (RGEN): Free Stock Analysis Report
TARGACEPT INC (TRGT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We remind investors that the Crohn's disease market currently has players like Abbott Labs ( ABT ). ABBOTT LABS (ABT): Free Stock Analysis Report CORONADO BIOSCI (CNDO): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report TARGACEPT INC (TRGT): Free Stock Analysis Report To read this article on Zacks.com click here. Coronado Biosciences ( CNDO ) recently amended its existing license and supply agreements with Ovamed GmbH. | ABBOTT LABS (ABT): Free Stock Analysis Report CORONADO BIOSCI (CNDO): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report TARGACEPT INC (TRGT): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that the Crohn's disease market currently has players like Abbott Labs ( ABT ). Ovamed's exclusive supply rights for TSO will be terminated soon after Coronado's planned manufacturing facility in Woburn, MA, is operational. | ABBOTT LABS (ABT): Free Stock Analysis Report CORONADO BIOSCI (CNDO): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report TARGACEPT INC (TRGT): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that the Crohn's disease market currently has players like Abbott Labs ( ABT ). Although Coronado has the rights to TSO in its licensed territory, Ovamed will be retaining its manufacturing rights outside Coronado's territory. | We remind investors that the Crohn's disease market currently has players like Abbott Labs ( ABT ). ABBOTT LABS (ABT): Free Stock Analysis Report CORONADO BIOSCI (CNDO): Free Stock Analysis Report REPLIGEN (RGEN): Free Stock Analysis Report TARGACEPT INC (TRGT): Free Stock Analysis Report To read this article on Zacks.com click here. Ovamed's exclusive supply rights for TSO will be terminated soon after Coronado's planned manufacturing facility in Woburn, MA, is operational. |
34338.0 | 2012-12-21 00:00:00 UTC | Myriad Alleviates to Outperform - Analyst Blog | ABT | https://www.nasdaq.com/articles/myriad-alleviates-to-outperform-analyst-blog-2012-12-21 | nan | nan | Following a strong first quarter result and an encouraging guidance, we upgrade our recommendation on Myriad Genetics ( MYGN ), provider of molecular diagnostic products, to Outperform with a target price of $33.
Myriad started fiscal 2013 on a cheery note with 24% year over year growth in earnings per share to 36 cents, beating the Zacks Consensus Estimate of 32 cents. Total revenues surged 21% year over year to $133.4 million, sailing past the Zacks Consensus Estimate of $130 million.
Growth was led by Myriad's flagship product, Bracanalysis (78.7% of total revenues), which witnessed 17% year-over-year growth to gross $105 million in the first quarter. Moreover, the BART (Bracanalysis Rearrangement Technology) test is gaining traction. Revenues from BART test jumped 188% year over year to $7.6 million in the quarter. Additionally, revenues derived from Colaris and Colaris AP increased 26% year over year to $12.1 million.
Myriad's focus on expanding its geographic foothold particularly in Europe, is also encouraging. Despite macroeconomic headwinds, the company's expansion plan in Europe is on track with a goal to record $50 million of revenues from international operations by fiscal 2016.
While operating margin is under pressure due to higher expenditure on research and development as well as sales and marketing, it reflects Myriad's concerted efforts to enhance its pipeline on the back of innovation. Also worth mentioning in this context is that the company currently has 13 pipeline candidates and several agreements with pharmaceutical majors like Sanofi ( SNY ), Abbott Laboratories ( ABT ), Eli Lilly ( LLY ) and Johnson & Johnson ( JNJ ) among others to strengthen its presence in the companion diagnostic market.
Based on all these near-term catalysts that are expected to drive up demand for Myriad's offerings, the company made an upward revision in its fiscal 2013 guidance. Myriad now expects to report revenues of $570−$585 million (previous guidance was $550−$565 million), reflecting growth of 15−18% (11−14%). The earnings per share for the fiscal year is likely to be in a range of $1.50−$1.55 (earlier $1.44−$1.48).
We are bullish on Myriad's growth prospects. The stock carries a short-term Zacks #1 Rank (Strong Buy). Other Zacks #1 Rank (Strong Buy) stocks in the medical sector are ResMed ( RMD ), Thoratec ( THOR ) and Merit Medical ( MMSI ).
ABBOTT LABS (ABT): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERIT MEDICAL (MMSI): Free Stock Analysis Report
MYRIAD GENETICS (MYGN): Free Stock Analysis Report
RESMED INC (RMD): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
THORATEC CORP (THOR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also worth mentioning in this context is that the company currently has 13 pipeline candidates and several agreements with pharmaceutical majors like Sanofi ( SNY ), Abbott Laboratories ( ABT ), Eli Lilly ( LLY ) and Johnson & Johnson ( JNJ ) among others to strengthen its presence in the companion diagnostic market. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERIT MEDICAL (MMSI): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report RESMED INC (RMD): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report THORATEC CORP (THOR): Free Stock Analysis Report To read this article on Zacks.com click here. Following a strong first quarter result and an encouraging guidance, we upgrade our recommendation on Myriad Genetics ( MYGN ), provider of molecular diagnostic products, to Outperform with a target price of $33. | Also worth mentioning in this context is that the company currently has 13 pipeline candidates and several agreements with pharmaceutical majors like Sanofi ( SNY ), Abbott Laboratories ( ABT ), Eli Lilly ( LLY ) and Johnson & Johnson ( JNJ ) among others to strengthen its presence in the companion diagnostic market. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERIT MEDICAL (MMSI): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report RESMED INC (RMD): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report THORATEC CORP (THOR): Free Stock Analysis Report To read this article on Zacks.com click here. Other Zacks #1 Rank (Strong Buy) stocks in the medical sector are ResMed ( RMD ), Thoratec ( THOR ) and Merit Medical ( MMSI ). | ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERIT MEDICAL (MMSI): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report RESMED INC (RMD): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report THORATEC CORP (THOR): Free Stock Analysis Report To read this article on Zacks.com click here. Also worth mentioning in this context is that the company currently has 13 pipeline candidates and several agreements with pharmaceutical majors like Sanofi ( SNY ), Abbott Laboratories ( ABT ), Eli Lilly ( LLY ) and Johnson & Johnson ( JNJ ) among others to strengthen its presence in the companion diagnostic market. Myriad started fiscal 2013 on a cheery note with 24% year over year growth in earnings per share to 36 cents, beating the Zacks Consensus Estimate of 32 cents. | Also worth mentioning in this context is that the company currently has 13 pipeline candidates and several agreements with pharmaceutical majors like Sanofi ( SNY ), Abbott Laboratories ( ABT ), Eli Lilly ( LLY ) and Johnson & Johnson ( JNJ ) among others to strengthen its presence in the companion diagnostic market. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERIT MEDICAL (MMSI): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report RESMED INC (RMD): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report THORATEC CORP (THOR): Free Stock Analysis Report To read this article on Zacks.com click here. Total revenues surged 21% year over year to $133.4 million, sailing past the Zacks Consensus Estimate of $130 million. |
34339.0 | 2012-12-19 00:00:00 UTC | Positive Data on Actelion Candidate - Analyst Blog | ABT | https://www.nasdaq.com/articles/positive-data-on-actelion-candidate-analyst-blog-2012-12-19 | nan | nan | Actelion ( ALIOF ) recently announced positive results from a phase II study on its S1P1 modulator, ponesimod. Actelion is evaluating ponesimod as a treatment for patients suffering from moderate-to-severe chronic plaque psoriasis.
The study achieved its primary objective of improving at least 75% in Psoriasis Area and Severity Index (PASI) from baseline (PASI75) after 16 weeks. The study enrolled 326 patients. Results from the study showed that both doses of ponesimod (20 mg and 40 mg) achieved statistical significance.
Around 46% of patients treated with ponesimod (20 mg) showed an improvement of at least 75% in PASI, whereas 48.1% treated with ponesimod (40 mg) showed the same at the 16 th week. Approximately 13% of patients under placebo showed an improvement of at least 75 % in PASI after the same duration of time.
Actelion now plans to initiate a phase III study on ponesimod in the psoriasis indication. Actelion will be discussing the phase III study details with health authorities around the world once full data analysis of the phase II results are done.
We remind investors that in July 2011, Actelion successfully completed a phase IIb dose-finding study with ponesimod for the treatment of patients suffering from multiple sclerosis.
We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. ( PFE ) and Amgen Inc. 's ( AMGN ) Enbrel.
Actelion carries a Zacks #3 Rank (Hold) in the short run. Johnson & Johnson carries a Zacks #2 Rank (Buy) whereas Amgen carries a Zacks #1 Rank (Strong Buy).
ABBOTT LABS (ABT): Free Stock Analysis Report
(ALIOF): ETF Research Reports
AMGEN INC (AMGN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. ( PFE ) and Amgen Inc. 's ( AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report (ALIOF): ETF Research Reports AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Actelion ( ALIOF ) recently announced positive results from a phase II study on its S1P1 modulator, ponesimod. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. ( PFE ) and Amgen Inc. 's ( AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report (ALIOF): ETF Research Reports AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Johnson & Johnson carries a Zacks #2 Rank (Buy) whereas Amgen carries a Zacks #1 Rank (Strong Buy). | ABBOTT LABS (ABT): Free Stock Analysis Report (ALIOF): ETF Research Reports AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. ( PFE ) and Amgen Inc. 's ( AMGN ) Enbrel. Around 46% of patients treated with ponesimod (20 mg) showed an improvement of at least 75% in PASI, whereas 48.1% treated with ponesimod (40 mg) showed the same at the 16 th week. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. ( PFE ) and Amgen Inc. 's ( AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report (ALIOF): ETF Research Reports AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Around 46% of patients treated with ponesimod (20 mg) showed an improvement of at least 75% in PASI, whereas 48.1% treated with ponesimod (40 mg) showed the same at the 16 th week. |
34340.0 | 2012-12-18 00:00:00 UTC | Covidien Expands U.S. Kangaroo Biz - Analyst Blog | ABT | https://www.nasdaq.com/articles/covidien-expands-u.s.-kangaroo-biz-analyst-blog-2012-12-18 | nan | nan | Large-cap medical technologies company, Covidien plc. ( COV ) is expanding the production of its Kangaroo ePump and the Kangaroo Joey enteral feeding pumps and sets. Following the announcement made by Abbott Nutrition, a division of Abbott Laboratories ( ABT ), to discontinue sale of all its enteral feeding pumps and sets in North America, the company increased its inventory in the U.S.
The expansion of the Kangaroo brand under Covidien's nursing care products should boost growth of the Medical Supplies segment. The Medical Supplies segment has been underperforming due to lower product sales. We believe that the exit of the competitor will likely allow Covidien gain market share and surpass its flat year-over-year revenue guidance for fiscal 2013.
The market leading Kangaroo enteral feeding pumps are used to monitor the timing as well as the amount of nutrition delivered directly into a patient's digestive tract, who is unable to intake food orally.
The Kangaroo ePump and the Kangaroo Joey are the latest offerings from the Kangaroo brand, which has been a trusted name in enteral feeding for over 30 years. Both the products are highly advanced, yet user-friendly, with subtle differences to suit patient and care givers needs.
Covidien, with a market-cap of $27.10 billion, is a leading global health care products company with an impressive history of developing and manufacturing high-quality products in a cost-effective manner. The company has a well diversified product and technology portfolio.
However, Covidien faces stiff competition and remains exposed to pricing, utilization headwinds along with acquisition risks. We remain concerned about the tepid health services industry amid a soft European economy. Also, foreign exchange translation is expected to dampen sales growth.
We currently have a long-term 'Neutral' recommendation on the stock, which carries a short-term Zacks #3 Rank (Hold).
ABBOTT LABS (ABT): Free Stock Analysis Report
COVIDIEN PLC (COV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Following the announcement made by Abbott Nutrition, a division of Abbott Laboratories ( ABT ), to discontinue sale of all its enteral feeding pumps and sets in North America, the company increased its inventory in the U.S. ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report To read this article on Zacks.com click here. The expansion of the Kangaroo brand under Covidien's nursing care products should boost growth of the Medical Supplies segment. | ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report To read this article on Zacks.com click here. Following the announcement made by Abbott Nutrition, a division of Abbott Laboratories ( ABT ), to discontinue sale of all its enteral feeding pumps and sets in North America, the company increased its inventory in the U.S. ( COV ) is expanding the production of its Kangaroo ePump and the Kangaroo Joey enteral feeding pumps and sets. | Following the announcement made by Abbott Nutrition, a division of Abbott Laboratories ( ABT ), to discontinue sale of all its enteral feeding pumps and sets in North America, the company increased its inventory in the U.S. ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report To read this article on Zacks.com click here. ( COV ) is expanding the production of its Kangaroo ePump and the Kangaroo Joey enteral feeding pumps and sets. | ABBOTT LABS (ABT): Free Stock Analysis Report COVIDIEN PLC (COV): Free Stock Analysis Report To read this article on Zacks.com click here. Following the announcement made by Abbott Nutrition, a division of Abbott Laboratories ( ABT ), to discontinue sale of all its enteral feeding pumps and sets in North America, the company increased its inventory in the U.S. Large-cap medical technologies company, Covidien plc. |
34341.0 | 2012-12-17 00:00:00 UTC | Weekly Healthcare Note: Pfizer and JNJ | ABT | https://www.nasdaq.com/articles/weekly-healthcare-note-pfizer-and-jnj-2012-12-17 | nan | nan | The past week was handful of events for the pharmaceutical sector. The world's largest drug maker Pfizer ( PFE ) announced impressive clinical results for its blockbuster potential drug Eliquis. This comes as another boost to the drug maker, whose experimental breast cancer drug exhibited encouraging data very recently. On the other hand, the FDA related the company's anti-smoking drug Chantix with higher risk of heart attacks even as the agency couldn't ascertain the same. Meanwhile, Johnson & Johnson ( JNJ ) received FDA approval for expanded use of its blockbuster potential cancer drug Zytiga.
Pfizer
Pfizer was in the news for a variety of reasons particularly relating to its cardiovascular franchise. In a recent phase III clinical study, its blockbuster potential blood thinner Eliquis managed to significantly reduce blood clots risks in patients suffering from venous thromboembolism or VTE (a blood clot within a vein) compared with a placebo. The outcome will certainly help Pfizer gain access to much larger markets as the drug is currently approved in many countries (excluding the U.S.) for preventing blood clots in patients who have knee or hip replacements along with recent European approval for NVAF (irregular heart beat). However, the drug is yet to enter the large U.S. market due to pending FDA approval. Without which, it cannot reach expected peak sales of $3 billion. This could lead to a downside in our price estimate. But, we do anticipate the FDA to follow its global counterparts. Read our note Pfizer's Eliquis Vies For FDA Approval With Encouraging Results In Recent Study for detail analysis.
In a separate event, the U.S. FDA issued a safety notice against Chantix, a smoking-cessation drug and part of cardiovascular franchise in our model, saying patients taking the drug may have a higher rate of heart attacks or strokes than those who are not on the treatment, following separate clinical trials. However, the results of the study cited were on a small sample as out of 4,190 patients taking Chantix, only 13 were found to have experienced heart attack or stroke against 6 in 2,812 patients who were on placebo. As a result, we don't believe this is enough to hurt Chantix's growth prospects. The drug generated more than $700 million in revenues in 2011 and we expect continued growth in sales following increase in number of prescriptions being sold.
See Full Analysis For Pfizer here
Johnson & Johnson
JNJ's blockbuster potential oncology drug Zytiga has secured U.S. FDA approval for expanded use in metastatic castration-resistant prostate cancer (mCCRPC) patients (no longer responsive to reduction of available androgen/testosterone by chemical or surgical means), who have not yet been treated with chemotherapy but have failed hormone treatment.
Further, European Medicines Agency's (EMA) committee has expressed positive opinion for the similar indication. We believe on back of addition of new indications, the drug could clock $1 billion in peak sales. Read our note JNJ: Zytiga Inches Towards Billion Dollar Sales As FDA Approves Expanded Use for further details.
See Full Analysis ForJohnson & Johnson here
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On the other hand, the FDA related the company's anti-smoking drug Chantix with higher risk of heart attacks even as the agency couldn't ascertain the same. Read our note Pfizer's Eliquis Vies For FDA Approval With Encouraging Results In Recent Study for detail analysis. The drug generated more than $700 million in revenues in 2011 and we expect continued growth in sales following increase in number of prescriptions being sold. | Meanwhile, Johnson & Johnson ( JNJ ) received FDA approval for expanded use of its blockbuster potential cancer drug Zytiga. Read our note Pfizer's Eliquis Vies For FDA Approval With Encouraging Results In Recent Study for detail analysis. See Full Analysis For Pfizer here Johnson & Johnson JNJ's blockbuster potential oncology drug Zytiga has secured U.S. FDA approval for expanded use in metastatic castration-resistant prostate cancer (mCCRPC) patients (no longer responsive to reduction of available androgen/testosterone by chemical or surgical means), who have not yet been treated with chemotherapy but have failed hormone treatment. | The outcome will certainly help Pfizer gain access to much larger markets as the drug is currently approved in many countries (excluding the U.S.) for preventing blood clots in patients who have knee or hip replacements along with recent European approval for NVAF (irregular heart beat). In a separate event, the U.S. FDA issued a safety notice against Chantix, a smoking-cessation drug and part of cardiovascular franchise in our model, saying patients taking the drug may have a higher rate of heart attacks or strokes than those who are not on the treatment, following separate clinical trials. See Full Analysis For Pfizer here Johnson & Johnson JNJ's blockbuster potential oncology drug Zytiga has secured U.S. FDA approval for expanded use in metastatic castration-resistant prostate cancer (mCCRPC) patients (no longer responsive to reduction of available androgen/testosterone by chemical or surgical means), who have not yet been treated with chemotherapy but have failed hormone treatment. | On the other hand, the FDA related the company's anti-smoking drug Chantix with higher risk of heart attacks even as the agency couldn't ascertain the same. Read our note Pfizer's Eliquis Vies For FDA Approval With Encouraging Results In Recent Study for detail analysis. Read our note JNJ: Zytiga Inches Towards Billion Dollar Sales As FDA Approves Expanded Use for further details. |
34342.0 | 2012-12-17 00:00:00 UTC | JNJ's Zytiga Inches Towards A Billion Dollar Sales As FDA Approves Expanded Use | ABT | https://www.nasdaq.com/articles/jnjs-zytiga-inches-towards-billion-dollar-sales-fda-approves-expanded-use-2012-12-17 | nan | nan | Johnson & Johnson's ( JNJ ) blockbuster potential oncology drug Zytiga has secured U.S. FDA approval for expanded use in metastatic castration-resistant prostate cancer (mCCRPC) patients (no longer responsive to reduction of androgen/testosterone by chemical or surgical means), who have not yet been treated with chemotherapy but have failed hormone treatment. And to add to the good news is positive opinion from the European Medicines Agency's (EMA) committee for similar indication.
Currently, the drug is approved for patients diagnosed with both hormone treatment and chemotherapy. This lends support to our expectation of exponential growth in sales of Zytiga in the near future even as Xtandi, considered the closest rival of Zytiga, received FDA approval about three months ahead of schedule and shown a little survival advantage over Zytiga. Below we discuss the prospects of Zytiga in detail.
See our complete analysis for Johnson & Johnson
Zytiga is mainly used to treat prostate cancer, one of the most prevalent cancers in men, with around 250,000 Americans alone being diagnosed with this cancer each year. While there are many treatment therapies available, most of them are injectables. Before the early approval of Xtandi, Zytiga had the advantage of being the only oral pill. But, the fact that Zytiga had only been approved for use for patients who didn't respond to prior chemotherapy and hormone treatment meant limited eligible patients and consequently revenues. But, the recent FDA approval opens a bigger market as the drug can now be prescribed to more patients, bringing in additional revenue.
In addition, the EMA committee's positive opinion also raises the chances of approval in Europe even as EMA is not bound to accept the recommendations of the advisory panel. Further, the FDA approval could guide other countries to take similar action as the drug had shown strong results in increasing survival rates in metastatic prostate cancer patients. The median overall survival of 35.3 months in patients on Zytiga was significantly higher when compared with 30.1 months in patients with placebo. Riding these expected approvals, we do see a $1.5 billion sales potential for Zytiga. The drug clocked $200 million in sales in 2011, whereas sales zoomed to $700 million in the first nine months of 2012.
There is one rider to our expectations, that is Xtandi. But, we don't see Xtandi to make a major dent in Zytiga's potential sales. While in studies Xtandi showed a survival advantage (extending patients' lives over a control group) of 5 months compared with JNJ's 4.6 months or nearly 10 days, the difference is not statistically significant. Further, Zytiga still has the cost advantage over its rival. While Zytiga currently costs about $5,500 per month, Xtandi is priced at $7,450 for a month's dose.
Submit a Post at Trefis Powered by Data and Interactive Charts | Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And to add to the good news is positive opinion from the European Medicines Agency's (EMA) committee for similar indication. But, the recent FDA approval opens a bigger market as the drug can now be prescribed to more patients, bringing in additional revenue. Further, the FDA approval could guide other countries to take similar action as the drug had shown strong results in increasing survival rates in metastatic prostate cancer patients. | Johnson & Johnson's ( JNJ ) blockbuster potential oncology drug Zytiga has secured U.S. FDA approval for expanded use in metastatic castration-resistant prostate cancer (mCCRPC) patients (no longer responsive to reduction of androgen/testosterone by chemical or surgical means), who have not yet been treated with chemotherapy but have failed hormone treatment. In addition, the EMA committee's positive opinion also raises the chances of approval in Europe even as EMA is not bound to accept the recommendations of the advisory panel. Submit a Post at Trefis Powered by Data and Interactive Charts | Understand What Drives a Stock at Trefis The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Johnson & Johnson's ( JNJ ) blockbuster potential oncology drug Zytiga has secured U.S. FDA approval for expanded use in metastatic castration-resistant prostate cancer (mCCRPC) patients (no longer responsive to reduction of androgen/testosterone by chemical or surgical means), who have not yet been treated with chemotherapy but have failed hormone treatment. This lends support to our expectation of exponential growth in sales of Zytiga in the near future even as Xtandi, considered the closest rival of Zytiga, received FDA approval about three months ahead of schedule and shown a little survival advantage over Zytiga. But, the fact that Zytiga had only been approved for use for patients who didn't respond to prior chemotherapy and hormone treatment meant limited eligible patients and consequently revenues. | Currently, the drug is approved for patients diagnosed with both hormone treatment and chemotherapy. This lends support to our expectation of exponential growth in sales of Zytiga in the near future even as Xtandi, considered the closest rival of Zytiga, received FDA approval about three months ahead of schedule and shown a little survival advantage over Zytiga. While Zytiga currently costs about $5,500 per month, Xtandi is priced at $7,450 for a month's dose. |
34343.0 | 2012-12-14 00:00:00 UTC | AstraZeneca's RA Drug Disappoints - Analyst Blog | ABT | https://www.nasdaq.com/articles/astrazenecas-ra-drug-disappoints-analyst-blog-2012-12-14 | nan | nan | AstraZeneca ( AZN ) and its partner Rigel Pharmaceuticals ( RIGL ) recently announced top-line data from the phase IIb OSKIRA-4 study evaluating the use of oral fostamatinib for rheumatoid arthritis (RA).
The OSKIRA (Oral Syk Inhibition in Rheumatoid Arthritis)-4 study evaluated fostamatinib as a monotherapy in patients who had never been prescribed a disease-modifying anti-rheumatic drug (DMARD), or are intolerant or show insufficient response to DMARDs. The study enrolled 280 patients with primary objectives to establish superiority of fostamatinib against placebo at 6 weeks and non-inferiority in comparison to Abbott Laboratories' ( ABT ) Humira (adalimumab) at 24 weeks.
In the six-month study, fostamatinib was evaluated in three dose regimens (100mg twice daily for 4 weeks followed by 100mg twice daily, 150mg once daily and 100mg once daily for the rest of the period).
Fostamatinib demonstrated superiority over placebo at two regimens but failed to do so at 100mg twice daily followed by 100mg once daily. The candidate failed to show non-inferiority to Humira at all dose regimes.
With the candidate failing to show non-inferiority to Humira, investors have reacted negatively and the share price of AstraZeneca and Rigel Pharma plunged 2.9% and 34.6%, respectively.
The pivotal phase III OSKIRA program is ongoing, results from which are expected in the first half of 2013. AstraZeneca plans to submit marketing application in the second half of 2013.
We note that competition is tough in the RA market, with players like Johnson & Johnson ( JNJ ) and Abbott Labs. Competition increased with the approval of an oral RA treatment, Pfizer's ( PFE ) Xeljanz in November 2012.
Neutral on AstraZeneca
We are encouraged by the company's focus on high-potential emerging markets and are pleased with its effort to drive the bottom line through cost-cutting initiatives and share buybacks.
However, we remain concerned about the generic competition faced by the company's key products. In 2011, the company lost revenues worth almost $2 billion to generic competition. The weak late-stage pipeline coupled with the slow Brilinta uptake also bothers us.
Currently, we have a Neutral stance on AstraZeneca in the long run. The stock carries a Zacks #3 Rank (Hold) in the short run.
Large-cap pharma stocks currently holding a Zacks #2 Rank include companies like Novo-Nordisk ( NVO ), Johnson & Johnson and Roche ( RHHBY ).
ABBOTT LABS (ABT): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
NOVO-NORDISK AS (NVO): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
(RHHBY): ETF Research Reports
RIGEL PHARMCTCL (RIGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The study enrolled 280 patients with primary objectives to establish superiority of fostamatinib against placebo at 6 weeks and non-inferiority in comparison to Abbott Laboratories' ( ABT ) Humira (adalimumab) at 24 weeks. ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports RIGEL PHARMCTCL (RIGL): Free Stock Analysis Report To read this article on Zacks.com click here. AstraZeneca ( AZN ) and its partner Rigel Pharmaceuticals ( RIGL ) recently announced top-line data from the phase IIb OSKIRA-4 study evaluating the use of oral fostamatinib for rheumatoid arthritis (RA). | ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports RIGEL PHARMCTCL (RIGL): Free Stock Analysis Report To read this article on Zacks.com click here. The study enrolled 280 patients with primary objectives to establish superiority of fostamatinib against placebo at 6 weeks and non-inferiority in comparison to Abbott Laboratories' ( ABT ) Humira (adalimumab) at 24 weeks. AstraZeneca ( AZN ) and its partner Rigel Pharmaceuticals ( RIGL ) recently announced top-line data from the phase IIb OSKIRA-4 study evaluating the use of oral fostamatinib for rheumatoid arthritis (RA). | ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports RIGEL PHARMCTCL (RIGL): Free Stock Analysis Report To read this article on Zacks.com click here. The study enrolled 280 patients with primary objectives to establish superiority of fostamatinib against placebo at 6 weeks and non-inferiority in comparison to Abbott Laboratories' ( ABT ) Humira (adalimumab) at 24 weeks. AstraZeneca ( AZN ) and its partner Rigel Pharmaceuticals ( RIGL ) recently announced top-line data from the phase IIb OSKIRA-4 study evaluating the use of oral fostamatinib for rheumatoid arthritis (RA). | The study enrolled 280 patients with primary objectives to establish superiority of fostamatinib against placebo at 6 weeks and non-inferiority in comparison to Abbott Laboratories' ( ABT ) Humira (adalimumab) at 24 weeks. ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports RIGEL PHARMCTCL (RIGL): Free Stock Analysis Report To read this article on Zacks.com click here. The stock carries a Zacks #3 Rank (Hold) in the short run. |
34344.0 | 2012-12-14 00:00:00 UTC | Meridien Completes Beta Trials - Analyst Blog | ABT | https://www.nasdaq.com/articles/meridien-completes-beta-trials-analyst-blog-2012-12-14 | nan | nan | Diagnostic test kit maker Meridian Bioscience Inc. ( VIVO ), recently announced the successful completion of beta trials for two of its illumigene molecular amplification tests. The assays are capable of detecting two of the most common sexually-transmitted infectious pathogens in the world viz. the Chlamydia trachomatis and the Neisseria gonorrhoeae.
The beta trial compared the performance of the illumigene assays with two other leading molecular platforms and the outcome demonstrated that the design criteria of both the assays are at par with industry standards. The illumigene test procedure became simpler when combined with the company's new nucleic acid preparation device. The total test time taken on the illumipro-10 Integrated Incubator/Reader was roughly an hour.
The success of the beta trials represents an important achievement for Meridian's U.S. Diagnostics segment's product pipeline. The test reinforces its leadership position in rapid and accurate testing methods for infectious diseases.
Per the World Health Organization, approximately 4 million and 1 million people are infected by the Chlamydia trachomatis and the Neisseria gonorrhoeae, respectively, every year in the U.S. But the CDC reported only 1.2 million cases of Chlamydia in 2009. Given that more than half of sexually-transmitted diseases are still undiagnosed in the U.S., the assays have a huge scope to attract revenue opportunities.
The company plans to commence clinical trials of the two sexually-transmitted disease assays in the second quarter of fiscal 2013 and complete it by the third quarter. Further, it expects to launch the products in the U.S. market during the first half of fiscal 2014.
Meridian specializes in developing cost-effective diagnostic test kits for multiple serious and infectious diseases. The company in its fiscal 2013 guidance revealed that it expects illumigene molecular technology platform to leverage top-line growth along with Bioline products as well as its foodborne and H. pylori tests.
However, the company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). It expects the upcoming 2013 Medical Device tax to be a drag on its bottom line.
We currently have a Neutral recommendation on Meridien Bioscience, which carries a short-term Zacks #3 Rank (Hold rating).
ABBOTT LABS (ABT): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, the company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. The illumigene test procedure became simpler when combined with the company's new nucleic acid preparation device. | ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). Diagnostic test kit maker Meridian Bioscience Inc. ( VIVO ), recently announced the successful completion of beta trials for two of its illumigene molecular amplification tests. | ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). Diagnostic test kit maker Meridian Bioscience Inc. ( VIVO ), recently announced the successful completion of beta trials for two of its illumigene molecular amplification tests. | However, the company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. Diagnostic test kit maker Meridian Bioscience Inc. ( VIVO ), recently announced the successful completion of beta trials for two of its illumigene molecular amplification tests. |
34345.0 | 2012-12-12 00:00:00 UTC | BMY/ABT Present Oncology Data - Analyst Blog | ABT | https://www.nasdaq.com/articles/bmy-abt-present-oncology-data-analyst-blog-2012-12-12 | nan | nan | Bristol-Myers Squibb Company ( BMY ) and partner Abbott Laboratories ( ABT ) recently presented data on their oncology candidate elotuzumab from a phase II study. The randomized study evaluated the drug, combined with a low-dose dexamethasone and Celgene Corporation 's ( CELG ) Revlimid, in treatment-experienced multiple myeloma patients at two doses- 10 mg/kg and 20 mg/kg. Bristol-Myers/Abbott Laboratories presented the data on elotuzumab at the 54th annual conference of the American Society of Hematology (ASH).
Data from the study revealed that the median progression-free survival (PFS: the time without disease worsening or death) was not reached after 20.8 months of follow up in the 10 mg/kg arm. Moreover, the objective response rate (ORR) was observed to be 92% in the 10 mg/kg arm. The median PFS and ORR were found to be 18.6 months and 76%, respectively, for patients treated with the 20 mg/kg dosage of elotuzumab. The safety profile of the candidate was found to be consistent with those revealed by the earlier studies.
Apart from the above phase II study, Bristol-Myers/Abbott Laboratories are also evaluating elotuzumab in other studies. The combination of elotuzumab (10 mg/kg), Revlimid and low-dose dexamethasone is being evaluated in two phase III studies. Moreover, a combination of Takeda's Velcade and dexamethasone with or without elotuzumab is also being evaluated in a phase II study in patients suffering from relapsed/refractory multiple myeloma.
Our Recommendation
We currently have a Neutral recommendation on Bristol-Myers which carries a Zacks #3 Rank (Hold). Our stance is similar on Abbott Laboratories.
Large-cap pharma stocks currently holding a Zacks #2 Rank (Buy) include companies like Sanofi ( SNY ), Novo-Nordisk ( NVO ), Johnson & Johnson ( JNJ ) and Roche ( RHHBY ).
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
NOVO-NORDISK AS (NVO): Free Stock Analysis Report
(RHHBY): ETF Research Reports
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bristol-Myers Squibb Company ( BMY ) and partner Abbott Laboratories ( ABT ) recently presented data on their oncology candidate elotuzumab from a phase II study. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report (RHHBY): ETF Research Reports SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. The randomized study evaluated the drug, combined with a low-dose dexamethasone and Celgene Corporation 's ( CELG ) Revlimid, in treatment-experienced multiple myeloma patients at two doses- 10 mg/kg and 20 mg/kg. | Bristol-Myers Squibb Company ( BMY ) and partner Abbott Laboratories ( ABT ) recently presented data on their oncology candidate elotuzumab from a phase II study. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report (RHHBY): ETF Research Reports SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. The randomized study evaluated the drug, combined with a low-dose dexamethasone and Celgene Corporation 's ( CELG ) Revlimid, in treatment-experienced multiple myeloma patients at two doses- 10 mg/kg and 20 mg/kg. | Bristol-Myers Squibb Company ( BMY ) and partner Abbott Laboratories ( ABT ) recently presented data on their oncology candidate elotuzumab from a phase II study. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report (RHHBY): ETF Research Reports SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from the above phase II study, Bristol-Myers/Abbott Laboratories are also evaluating elotuzumab in other studies. | Bristol-Myers Squibb Company ( BMY ) and partner Abbott Laboratories ( ABT ) recently presented data on their oncology candidate elotuzumab from a phase II study. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report NOVO-NORDISK AS (NVO): Free Stock Analysis Report (RHHBY): ETF Research Reports SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. The median PFS and ORR were found to be 18.6 months and 76%, respectively, for patients treated with the 20 mg/kg dosage of elotuzumab. |
34346.0 | 2012-12-11 00:00:00 UTC | Gilead Plans to Split Stock 2-for-1 - Analyst Blog | ABT | https://www.nasdaq.com/articles/gilead-plans-to-split-stock-2-for-1-analyst-blog-2012-12-11 | nan | nan | Recently, the board of directors at Gilead Sciences Inc. ( GILD ) authorized a two-for-one stock split. The action, which will take shape through a stock dividend for stockholders as on record on January 7, 2013, is aimed at increasing the number of authorized shares at Gilead to about 1.52 billion from 759.3 million (as of November 30). The stock dividend is expected to be distributed to the relevant stockholders on or about January 25, 2013.
Following the stock split, every shareholder at Gilead (on record on January 7, 2013) will get an additional share for each share he/she currently holds. Gilead intends to commence trading at the NASDAQ at the post-split price from January 28, 2013. Gilead in its press release further stated that purchasers of its shares between January 7 and January 28, 2013 will get a due-bill. The due bill will make the buyer eligible for an additional share for each share bought.
We note that shares of Gilead Sciences have been on an uptrend since the beginning of the year driven by multiple positive catalysts, including the purchase of Pharmasset, targeting the lucrative hepatitis C virus (HCV) market and the approval of the high potential HIV therapy, Stribild. The stock is currently hovering around its 52-week high of $76.28, reached on November 23, 2012. We believe that the soaring stock price necessitated the 2-for-1 stock split.
Apart from the positive developments noted above, Gilead received further good news last month when it presented encouraging top-line data on its HCV candidate sofosbuvir from a phase III study. Sofosbuvir (formerly GS-7977) was added to Gilead's pipeline through its acquisition of Pharmasset in January 2012.
Apart from Gilead, companies such as Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ) and Bristol-Myers Squibb ( BMY ) are also developing therapies to combat HCV.
Our Recommendation
We currently have a Neutral recommendation on Gilead. The stock carries a Zacks #3 Rank (Hold rating) in the short run.
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apart from Gilead, companies such as Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ) and Bristol-Myers Squibb ( BMY ) are also developing therapies to combat HCV. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. The action, which will take shape through a stock dividend for stockholders as on record on January 7, 2013, is aimed at increasing the number of authorized shares at Gilead to about 1.52 billion from 759.3 million (as of November 30). | Apart from Gilead, companies such as Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ) and Bristol-Myers Squibb ( BMY ) are also developing therapies to combat HCV. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. Recently, the board of directors at Gilead Sciences Inc. ( GILD ) authorized a two-for-one stock split. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Gilead, companies such as Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ) and Bristol-Myers Squibb ( BMY ) are also developing therapies to combat HCV. The action, which will take shape through a stock dividend for stockholders as on record on January 7, 2013, is aimed at increasing the number of authorized shares at Gilead to about 1.52 billion from 759.3 million (as of November 30). | Apart from Gilead, companies such as Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ) and Bristol-Myers Squibb ( BMY ) are also developing therapies to combat HCV. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report To read this article on Zacks.com click here. The action, which will take shape through a stock dividend for stockholders as on record on January 7, 2013, is aimed at increasing the number of authorized shares at Gilead to about 1.52 billion from 759.3 million (as of November 30). |
34347.0 | 2012-12-11 00:00:00 UTC | Myriad Teams Up with Sanofi - Analyst Blog | ABT | https://www.nasdaq.com/articles/myriad-teams-up-with-sanofi-analyst-blog-2012-12-11 | nan | nan | Myriad RBM, a wholly-owned subsidiary of molecular diagnostic company Myriad Genetics Inc. ( MYGN ), has recently collaborated with global pharmaceutical products maker Sanofi ( SNY ) and Population Health Research Institute ("PHRI") at Hamilton Health Sciences and McMaster University. This association comes as a major breakthrough for Myriad, which is currently aiming to establish itself as a strong player in the companion diagnostic market.
As per the agreement, Myriad RBM will analyze more than 8,000 serum samples from pre and early diabetic patients to conduct the protein biomarker research for the ORIGIN (Outcome Reduction with Initial Glargine Intervention) study. The company expects to conduct the research with its DiscoveryMAP 250+ quantitative immunoassay panel.
Funded by Sanofi and analyzed and managed by PHRI, ORIGIN is the world's longest and largest randomized clinical trial in pre- and early diabetes. Covering over 40 countries worldwide, this cardiovascular outcomes trial evaluated Lantus (insulin glargine) versus standard care in over 12,500 patients at high cardiovascular risk with pre-diabetes or early type 2 diabetes mellitus. Both Myriad and Sanofi are optimistic about the protein biomarker research for ORIGIN study using Myriad RBM's technology, which they expect will identify the biomarker profiles that might improve treatment and patient care.
Myriad expects this new alliance to add up to $10 million in its companion diagnostic service revenue over the next two fiscal years. Myriad stated that the agreement was presumed in the company's earlier provided companion diagnostic outlook for fiscal 2013 ($25-$28 million).
Myriad is conducting multiple studies in various areas in the companion diagnostic market. Over the recent past, the company has entered into several agreements that would further strengthen its foothold in this growing market. Apart from Sanofi, it has agreements with several pharmaceutical majors including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), Eli Lilly ( LLY ), Merck ( MRK ), Novartis ( NVS ) and AstraZeneca ( AZN ).
Moreover, RBM is expected to place Myriad as a leader in this arena based on the former's proprietary protein technology and its 550 immunoassays. These developments should augur well for the long-term development of the company. The stock retains a Zacks #1 Rank (Strong Buy in the short term).
ABBOTT LABS (ABT): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MYRIAD GENETICS (MYGN): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apart from Sanofi, it has agreements with several pharmaceutical majors including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), Eli Lilly ( LLY ), Merck ( MRK ), Novartis ( NVS ) and AstraZeneca ( AZN ). ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. As per the agreement, Myriad RBM will analyze more than 8,000 serum samples from pre and early diabetic patients to conduct the protein biomarker research for the ORIGIN (Outcome Reduction with Initial Glargine Intervention) study. | Apart from Sanofi, it has agreements with several pharmaceutical majors including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), Eli Lilly ( LLY ), Merck ( MRK ), Novartis ( NVS ) and AstraZeneca ( AZN ). ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Myriad RBM, a wholly-owned subsidiary of molecular diagnostic company Myriad Genetics Inc. ( MYGN ), has recently collaborated with global pharmaceutical products maker Sanofi ( SNY ) and Population Health Research Institute ("PHRI") at Hamilton Health Sciences and McMaster University. | ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Sanofi, it has agreements with several pharmaceutical majors including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), Eli Lilly ( LLY ), Merck ( MRK ), Novartis ( NVS ) and AstraZeneca ( AZN ). Myriad RBM, a wholly-owned subsidiary of molecular diagnostic company Myriad Genetics Inc. ( MYGN ), has recently collaborated with global pharmaceutical products maker Sanofi ( SNY ) and Population Health Research Institute ("PHRI") at Hamilton Health Sciences and McMaster University. | ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Sanofi, it has agreements with several pharmaceutical majors including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), Eli Lilly ( LLY ), Merck ( MRK ), Novartis ( NVS ) and AstraZeneca ( AZN ). As per the agreement, Myriad RBM will analyze more than 8,000 serum samples from pre and early diabetic patients to conduct the protein biomarker research for the ORIGIN (Outcome Reduction with Initial Glargine Intervention) study. |
34348.0 | 2012-12-10 00:00:00 UTC | Weekly Healthcare Note: Pfizer and Merck | ABT | https://www.nasdaq.com/articles/weekly-healthcare-note-pfizer-and-merck-2012-12-10 | nan | nan | The past week was handful of events for the pharmaceutical sector. The world's largest drug maker Pfizer ( PFE ) announced fresh rounds of job cuts for its sales representatives as it grapples with a decline in sales amidst patent expirations. But, recent impressive results in mid stage clinical trials for its experimental breast cancer drug come as a boost to the company's stock price. In addition, the company has completed sale of its nutritional business to Nestle in a bid to focus on core pharmaceutical business. Meanwhile, Merck ( MRK ) announced phase II clinical trials of new type of Alzheimer drug, moving to front-line in quest for a complete cure for Azheimer's disease.
Pfizer
Pfizer was in the news for a variety of reasons. Its experimental drug, PD-0332991, for the treatment of most common form of advanced breast cancer (60% of breast cancer cases), exhibited strong efficacy and safety in a mid-stage trial. The drug when taken with Letrozole (a conventional drug for the disease, manufactured as Femara by Novartis) delayed the worsening of symptoms in breast cancer patients by more than 18 months over those with Letrozole alone. The 18 month is statistically significant difference, boosting the drug's prospects as a potential blockbuster. While there is still a long way to go for regulatory approval as Pfizer is yet to begin late-stage trials, the drug, if approved as a first-line treatment, could bring multi-billion dollars in revenues for the struggling drug maker. This could lead to an upside in our price estimate as we have not considered the potential revenues from the drug in our model. The expected approval could only come by 2017 or later.
In a separate event, Pfizer announced another round of lay-offs in its sales representative staff, mostly related to primary care even as the number of staff being let go, is not announced yet. The move comes as the drug maker strives to manage its costs in a flurry of patent expiries. Pfizer lost patent protection for its largest selling drug Lipitor in Nov 2011, putting at risk about $10 billion even as it is slated to lose another $10 billion in next 2-3 years due to upcoming patent expiries. Due to these patent expiries, the company took several other measures including increase its focus on core pharma business and improve pipeline along with reducing staff.
The sale of nutritional business and divestment in the animal business are part of that strategy, and the company this week completed sale of nutritional business for a $11.9 billion cash deal. However, in countries where regulatory approvals have been delayed (Kenya, South Africa and five Latin American countries), Pfizer will continue to operate the business on an interim basis. The company could spend this cash on its buy-back program and to reduce debt.
See Full Analysis For Pfizer here
Merck
Merck started phase II trial to determine the efficacy and safety of its MK-8931, a BACE inhibitor, in patients with mild to moderate Alzheimer's disease. A BACE inhibitor is a new type of treatment for Alzheimer as it blocks beta amyloid plaques in the brain (high-level of it results into Alzheimer) to treat Alzheimer. Any success in clinical trials could significantly impact Merck's stock due to huge unmet demand in the Alzheimer drug market.
Nearly 36 million people worldwide are estimated to be suffering from Alzheimer's disease or other dementia, and without any effective treatment, the number could surge to nearly 66 million and 115 million by 2030 and 2050, respectively. In the U.S. alone, approximately 5.4 million people suffer from Alzheimer's and this is projected to increase to 15 million by 2050.
There is no complete cure available for Alzheimer's presently, and the current treatment only improves a patient's condition by a little. Further, no significant competition is present with the exception of Roche Holdings ( RHHBY ) after competitors either failed late stage clinical trials or saw inconclusive results (Read Pfizer and Johnson & Johnson Dump Alzheimer Drug After Failed Clinical Trials ).
Roche has emerged as the leader in the development of Alzheimer drug . Roche has the strongest drug pipeline for Alzheimer's with two of the most promising pipeline drugs, Crenezumab and Gantenerumab.
See Full Analysis For Merck here
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But, recent impressive results in mid stage clinical trials for its experimental breast cancer drug come as a boost to the company's stock price. Meanwhile, Merck ( MRK ) announced phase II clinical trials of new type of Alzheimer drug, moving to front-line in quest for a complete cure for Azheimer's disease. Due to these patent expiries, the company took several other measures including increase its focus on core pharma business and improve pipeline along with reducing staff. | Meanwhile, Merck ( MRK ) announced phase II clinical trials of new type of Alzheimer drug, moving to front-line in quest for a complete cure for Azheimer's disease. See Full Analysis For Pfizer here Merck Merck started phase II trial to determine the efficacy and safety of its MK-8931, a BACE inhibitor, in patients with mild to moderate Alzheimer's disease. Further, no significant competition is present with the exception of Roche Holdings ( RHHBY ) after competitors either failed late stage clinical trials or saw inconclusive results (Read Pfizer and Johnson & Johnson Dump Alzheimer Drug After Failed Clinical Trials ). | Meanwhile, Merck ( MRK ) announced phase II clinical trials of new type of Alzheimer drug, moving to front-line in quest for a complete cure for Azheimer's disease. While there is still a long way to go for regulatory approval as Pfizer is yet to begin late-stage trials, the drug, if approved as a first-line treatment, could bring multi-billion dollars in revenues for the struggling drug maker. Further, no significant competition is present with the exception of Roche Holdings ( RHHBY ) after competitors either failed late stage clinical trials or saw inconclusive results (Read Pfizer and Johnson & Johnson Dump Alzheimer Drug After Failed Clinical Trials ). | Meanwhile, Merck ( MRK ) announced phase II clinical trials of new type of Alzheimer drug, moving to front-line in quest for a complete cure for Azheimer's disease. Due to these patent expiries, the company took several other measures including increase its focus on core pharma business and improve pipeline along with reducing staff. See Full Analysis For Pfizer here Merck Merck started phase II trial to determine the efficacy and safety of its MK-8931, a BACE inhibitor, in patients with mild to moderate Alzheimer's disease. |
34349.0 | 2012-12-06 00:00:00 UTC | Johnson & Johnson Patent Cliff: A Look At The Pharmaceutical Division | ABT | https://www.nasdaq.com/articles/johnson-johnson-patent-cliff-look-pharmaceutical-division-2012-12-06 | nan | nan | In the next few years, the pharmaceutical sector is headed to incur losses of over $100 billion as patent exclusivity of several blockbuster drugs are scheduled to expire. After a drug patent expires, generic manufacturers can replicate and sell the product at much cheaper prices, generally leading to a steep decline in the pharma company's revenues. We have recently analyzed the impact of patent cliff on major pharma companies like Merck and Abbott. (Read Pfizer Patent Cliff: A Look At The Cardiovascular Drugs Division , Merck Patent Cliff: A Look At The Anti-Infectives Drugs Division and Abbott Patent Cliff: A Look At The Autoimmune and HIV Antiviral Divisons ). In this article, we will discuss Johnson & Johnson's impending patent expiries and prospects of it's overall pharmaceutical division.
See our complete analysis for Johnson & Johnson
Patent Cliff Hurting Revenues
J&J has already lost the patents on some of its largest selling drugs like Concerta, Levaquin and Invega between 2011 and 2012, putting at risk more than $2.5 billion in revenues. The company is likely to continue battling revenue decline due to patent expiries over the next 2-3 years. Aciphex, a heartburn drug, will lose its patent protect mid next year. Velcade, which attained the blockbuster status last year and is used to treat a type of cancer (mantel cell lymphoma and multiple myeloma), will see its patent expiring in 2014. Remicade, J&J's biggest blockbuster drug for autoimmune diseases (e.g. rheumatoid arthritis), with sales of more than $5 billion in 2011, will also lose its patent protection in 2014, affecting sales in the immunology drugs segment.
J&J also faced a setback with the failure of its trial drug Bapineuzumab for Alzheimers (Read Pfizer and Johnson & Johnson Dump Alzheimer Drug After Failed Clinical Trials), the sales of which could have more than made up for the revenue loss from Invega's patent expiry.
Strong Pipeline Offsets Concerns…
Despite all of these factors, we expect the company's pharmaceutical franchise to perform relatively well due to some potential blockbuster drugs like Canagliflozin, an experimental drug for type 2 diabetes. The drug has shown efficacy in phase III trials by reducing blood sugar in diabetics with an elevated risk of heart problems. It also results in significant decline in blood pressure and weight loss. If approved, the drug will be the company's first treatment in the fast growing diabetes drug market and could bring more than $1 billion in revenues. (Read New Diabetes Drug Can Bolster J&J's $74 Value).
In addition, J&J could get early approval for Bedaquilinean, an experimental drug for the treatment of tuberculosis (TB). TB is presently considered resistant to most available drugs and provides an opportunity for new types of medication. This cure could earn $300 million in sales.
Current Drugs Also Hold Promise
Further, Zytiga, a prostate cancer drug, continues to hold promise as the drug received a priority review status this August for larger use. (Read JNJ Updates: Strikes Cancer Deal, Zytiga Gets FDA Priority Review Status). This means that the drug could be approved in about three months from now. The FDA usually grants this status for drugs that either show strong efficacy or where no treatment exists currently. Xarelto, a blood thinning drug is also awaiting FDA approval for extended use to prevent heart attack and stroke. (Read JNJ Knocks On FDA Door A Second Time For Broader Use Of Anticlotting Drug Xarelto). The company's anti-infective drugs Prezista and Intelence, used in the treatment of HIV, continue to see higher uptake. Anti-virals, especially to combat HIV, have seen tremendous growth in the past decade. According to IMS Health's predictions, this segment could grow by 7-8% for the next 4-5 years. These drugs could revive J&J's loss resulting from Levaquin's patent expiry..
We believe J&J's immunology drug division will benefit from the continued growth in Simponi, especially in the international market. The drug maker has filed for label extensions for Simponi to other diseases like ulcerative colitis which should drive sustained growth going forward. The company also stands to benefit from Merck giving up rights of Simponi and Remicade in fast growing markets of Canada, Central and South America, Middle East, Africa and Asia-Pacific regions. Further, profits for these two drugs (in the regions where Merck retained rights) are now being divided evenly between the two companies as opposed to prior split of 58% to Merck and 42% to J&J. This will also help JNJ increase its revenues, even if moderately.
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After a drug patent expires, generic manufacturers can replicate and sell the product at much cheaper prices, generally leading to a steep decline in the pharma company's revenues. Velcade, which attained the blockbuster status last year and is used to treat a type of cancer (mantel cell lymphoma and multiple myeloma), will see its patent expiring in 2014. The company also stands to benefit from Merck giving up rights of Simponi and Remicade in fast growing markets of Canada, Central and South America, Middle East, Africa and Asia-Pacific regions. | Remicade, J&J's biggest blockbuster drug for autoimmune diseases (e.g. rheumatoid arthritis), with sales of more than $5 billion in 2011, will also lose its patent protection in 2014, affecting sales in the immunology drugs segment. J&J also faced a setback with the failure of its trial drug Bapineuzumab for Alzheimers (Read Pfizer and Johnson & Johnson Dump Alzheimer Drug After Failed Clinical Trials), the sales of which could have more than made up for the revenue loss from Invega's patent expiry. Current Drugs Also Hold Promise Further, Zytiga, a prostate cancer drug, continues to hold promise as the drug received a priority review status this August for larger use. | (Read Pfizer Patent Cliff: A Look At The Cardiovascular Drugs Division , Merck Patent Cliff: A Look At The Anti-Infectives Drugs Division and Abbott Patent Cliff: A Look At The Autoimmune and HIV Antiviral Divisons ). J&J also faced a setback with the failure of its trial drug Bapineuzumab for Alzheimers (Read Pfizer and Johnson & Johnson Dump Alzheimer Drug After Failed Clinical Trials), the sales of which could have more than made up for the revenue loss from Invega's patent expiry. Current Drugs Also Hold Promise Further, Zytiga, a prostate cancer drug, continues to hold promise as the drug received a priority review status this August for larger use. | The company is likely to continue battling revenue decline due to patent expiries over the next 2-3 years. If approved, the drug will be the company's first treatment in the fast growing diabetes drug market and could bring more than $1 billion in revenues. (Read JNJ Updates: Strikes Cancer Deal, Zytiga Gets FDA Priority Review Status). |
34350.0 | 2012-12-06 00:00:00 UTC | Pharma & Biotech Stock Outlook - Dec 2012 - Industry Outlook | ABT | https://www.nasdaq.com/articles/pharma-biotech-stock-outlook-dec-2012-industry-outlook-2012-12-06-0 | nan | nan | The pharmaceutical industry is slowly showing signs of recovery from one of the biggest patent cliffs in recent times. The last few quarters saw major blockbusters like Merck's ( MRK ) Singulair, Pfizer's ( PFE ) Lipitor, Forest Laboratories' ( FRX ) Lexapro, Sanofi/Bristol-Myers' ( SNY / BMY ) Plavix and Eli Lilly's ( LLY ) Zyprexa losing patent protection. These products alone represented branded sales worth more than $15 billion.
However, the effect of the genericization of these products will be felt mostly in 2012. While the industry won't be completely free from genericization, the major patent expiries are over and done with. New products should start contributing significantly to results and increased pipeline visibility and appropriate utilization of cash should increase confidence in the sector.
M&A Activity
The M&A activity witnessed in the pharma sector in the last couple of years continued in 2012, in-line with expectations. Major deals so far in 2012 include Johnson & Johnson's ( JNJ ) acquisition of Synthes, Bristol-Myers Squibbs' acquisition of Amylin Pharmaceuticals, Inc., GlaxoSmithKline's ( GSK ) acquisition of Human Genome Sciences and Valeant Pharma's ( VRX ) upcoming acquisition of Medicis ( MRX ).
Meanwhile, generic players are not far behind in the acquisition game. While Teva ( TEVA ) acquired Cephalon, Inc., Watson Pharmaceuticals ( WPI ) acquired generic player, Actavis.
Elsewhere, companies have been looking toward biotech firms to build their product portfolios. A prime example is French pharma giant Sanofi's acquisition of biotech company Genzyme Corp. The Genzyme acquisition has boosted Sanofi's revenues as well as its pipeline. Meanwhile, AstraZeneca ( AZN ) acquired biotech company Ardea Biosciences.
Going forward, we expect the M&A trend to continue. We also expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. Instead of developing a product from scratch, which involves a lot of funds and time, pharma companies are shopping for mid-to-late stage pipeline candidates that look promising.
Small biotech companies are open to in-licensing activities and collaborations. Most of these companies find it challenging to raise cash, thereby making it difficult for them to survive and continue with the development of promising pipeline candidates. Therefore, it makes sense for them to seek deals with pharma companies that are sitting on huge piles of cash.
We would recommend investors put their money in biotech stocks that have attractive pipeline candidates or technology that can be used for the development of novel therapeutics. Therapeutic areas which could see a lot of in-licensing activity include oncology, central nervous system disorders, diabetes and immunology/inflammation. The hepatitis C virus (HCV) market is also attracting a lot of attention.
Another trend that we are seeing in recent months is the divestment of non-core business segments. Pfizer sold its Capsugel unit and its Nutrition business in August 2011 and November 2012, respectively. The company intends to spin-off its Animal Health business as well.
Meanwhile, GlaxoSmithKline is divesting non-core brands from its Consumer Healthcare segment. In August 2011, AstraZeneca sold its Astra Tech business to DENTSPLY ( XRAY ). The monetization of non-core assets will allow the pharma/biotech companies to focus on their areas of expertise. Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. While one company will deal in diversified medical products, the other (AbbVie) will focus on research-based pharmaceuticals.
Obamacare Rules
A major event that will have a significant impact on pharma and biotech stocks is the upholding of the Patient Protection and Affordable Care Act (ACA) by the Supreme Court in late June 2012. The Act, popularly referred to as "Obamacare," passed through Congress in 2010, represents major changes in the nation's healthcare sector.
The Act will provide coverage to 32 million uninsured Americans, make healthcare facilities more affordable, expand coverage for customers with pre-existing health conditions and keep a check on health insurers. The healthcare reform aims to end the discrimination policy of insurance companies, create competition amongst insurers through the establishment of health insurance exchanges, add value to the overall healthcare system and reduce premiums.
The upholding of the Act is a big win for pharma companies as the coverage base will increase.
Meanwhile, the signing of the Gaining Antiobiotic Incentives Now (GAIN) Act should benefit companies pursuing the development of novel antibiotics. Once approved, these products will enjoy an additional five years of marketing exclusivity. Companies that should benefit from this Act include The Medicines Company ( MDCO ), Optimer Pharma ( OPTR ) and Cubist Pharma ( CBST ) among others.
The US government is also exploring options which will help increase the availability of generics. The Obama administration announced that it is looking to implement a proposal under which the exclusivity period for biologics will be cut down by 5 years, thereby allowing generics to enter the market sooner.
The government is also seeking to increase the availability of generics by preventing companies from entering into anti-competitive or "pay for delay" agreements which push out the availability of generics. These initiatives, if implemented, would result in additional pricing competition and genericization in the pharma industry. Moreover, the establishment of a biosimilar pathway will lead to the availability of cheaper versions of biologics.
Emerging Markets
Another recent trend seen in the pharmaceutical sector is a focus on emerging markets. Companies like Mylan ( MYL ), Pfizer, Merck, Eli Lilly, Glaxo and Sanofi are all looking to expand their presence in India, China, Brazil and other emerging markets. Until recently, most of the commercialization efforts were focused on the US market -- the largest pharmaceutical market -- along with Europe and Japan.
Emerging markets are slowly and steadily gaining more importance and several companies are now shifting their focus to these areas. According to the IMS Institute, spending on medicines in "pharmerging" markets will almost double to $345 billion - $375 billion in five years from $194 billion in 2011.
However, while higher demand for medicines, government initiatives for healthcare, new patient population, and increasing use of generics should help drive demand, we point out that emerging markets are also not immune from genericization.
Meanwhile, according to the IMS Institute, annual growth in the branded medicines market will remain flat or increase up to 3% to $615 billion - $645 billion through 2016 from $596 billion in 2011.
As far as developed nations are concerned, the IMS Institute expects US spending to go up by $35 billion - $45 billion (1-4%) in the next five years. The introduction of medicines targeting unmet needs and higher patient access resulting from Obamacare are expected to drive growth.
However, growth in Europe will continue to be pressurized by austerity and cost-containment measures. According to the IMS Institute, growth in Europe will range from a negative 1% to positive 2%. The Japanese market is expected to grow at a slower pace annually (1-4%) through 2016 compared to the last five years.
Mixed Performance in the Third Quarter
Despite facing challenges like EU austerity measures, genericization, lower-than-expected contributions from new products, companies like Sanofi, Merck and Pfizer delivered stronger-than-expected results. However, companies like Eli Lilly, Bristol-Myers and Glaxo missed the Zacks Consensus Estimate. Both Eli Lilly and Bristol-Myers are facing stiff generic competition for their key products.
A look at the Earnings ESP (Expected Surprise Prediction - Zacks' proprietary methodology for determining which stocks have the best chance to surprise with their next earnings announcement) in the table below shows that companies like Sanofi, Johnson & Johnson, and Amgen could beat the Zacks Consensus Estimate in the fourth quarter of 2012. Johnson & Johnson, Biogen and Amgen have raised their outlook for 2012.
OPPORTUNITIES
We continue to have a Neutral outlook on large-cap pharma stocks. While the companies will continue to face challenges like EU austerity measures and genericization, the pharma industry should be out of the worst of the genericization phase from 2013. Several companies which had faced generic headwinds in the last couple of years should see their results recover from 2013. Cost-cutting, downsizing, streamlining of the pipeline, growth in emerging markets and product approvals should support growth.
Zacks #2 Rank (Buy) stocks in the pharma sector include Johnson & Johnson ( JNJ ), Bayer ( BAYRY ), Roche ( RHHBY ), Onyx Pharma ( ONXX ) and Valeant Pharma ( VRX ), among others.
In the biotech space, we are positive on Biogen ( BIIB ). We are optimistic on BG-12, the company's oral multiple sclerosis candidate. Key products, Avonex and Tysabri, should continue contributing significantly to sales.
We are also positive on Amgen ( AMGN ). We are encouraged by the company's performance so far this year. Enbrel should continue performing well. Amgen's late-stage pipeline is also moving along. Amgen is a Zacks #1 Rank (Strong Buy) stock.
Among generic companies, both Watson ( WTI ) and Mylan ( MYL ) carry a Zacks #2 Rank. While Watson should benefit from its acquisition of Actavis, we are encouraged by Mylan's geographic reach and product depth along with a robust generic product pipeline.
WEAKNESSES
We recommend avoiding names that offer little growth or opportunity for a take-out. These include companies which are developing drugs that are likely to face regulatory hurdles. The FDA has been exercising more caution in granting approval to new products and several candidates are facing delays in receiving final approval.
Although both Forest Labs ( FRX ) and Eli Lilly ( LLY ) carry a Zacks #3 Rank (Hold), we remain concerned about the headwinds being faced by these companies in the form of generic competition and slow ramp up of new products.
Companies that currently carry a Zacks #4 Rank (Sell) include BioSpecifics Therapeutics ( BSTC ), Jazz Pharma ( JAZZ ) and Catalyst Pharma ( CPRX ), among others.
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
VERTEX PHARM (VRTX): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
DENTSPLY INTL (XRAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. The last few quarters saw major blockbusters like Merck's ( MRK ) Singulair, Pfizer's ( PFE ) Lipitor, Forest Laboratories' ( FRX ) Lexapro, Sanofi/Bristol-Myers' ( SNY / BMY ) Plavix and Eli Lilly's ( LLY ) Zyprexa losing patent protection. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. Major deals so far in 2012 include Johnson & Johnson's ( JNJ ) acquisition of Synthes, Bristol-Myers Squibbs' acquisition of Amylin Pharmaceuticals, Inc., GlaxoSmithKline's ( GSK ) acquisition of Human Genome Sciences and Valeant Pharma's ( VRX ) upcoming acquisition of Medicis ( MRX ). | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. Companies that should benefit from this Act include The Medicines Company ( MDCO ), Optimer Pharma ( OPTR ) and Cubist Pharma ( CBST ) among others. | Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. We also expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. |
34351.0 | 2012-12-06 00:00:00 UTC | Pharma & Biotech Stock Outlook - Dec 2012 - Zacks Analyst Interviews | ABT | https://www.nasdaq.com/articles/pharma-biotech-stock-outlook-dec-2012-zacks-analyst-interviews-2012-12-06 | nan | nan | The pharmaceutical industry is slowly showing signs of recovery from one of the biggest patent cliffs in recent times. The last few quarters saw major blockbusters like Merck's ( MRK ) Singulair, Pfizer's ( PFE ) Lipitor, Forest Laboratories' ( FRX ) Lexapro, Sanofi/Bristol-Myers' ( SNY / BMY ) Plavix and Eli Lilly's ( LLY ) Zyprexa losing patent protection. These products alone represented branded sales worth more than $15 billion.
However, the effect of the genericization of these products will be felt mostly in 2012. While the industry won't be completely free from genericization, the major patent expiries are over and done with. New products should start contributing significantly to results and increased pipeline visibility and appropriate utilization of cash should increase confidence in the sector.
M&A Activity
The M&A activity witnessed in the pharma sector in the last couple of years continued in 2012, in-line with expectations. Major deals so far in 2012 include Johnson & Johnson's ( JNJ ) acquisition of Synthes, Bristol-Myers Squibbs' acquisition of Amylin Pharmaceuticals, Inc., GlaxoSmithKline's ( GSK ) acquisition of Human Genome Sciences and Valeant Pharma's ( VRX ) upcoming acquisition of Medicis ( MRX ).
Meanwhile, generic players are not far behind in the acquisition game. While Teva ( TEVA ) acquired Cephalon, Inc., Watson Pharmaceuticals ( WPI ) acquired generic player, Actavis.
Elsewhere, companies have been looking toward biotech firms to build their product portfolios. A prime example is French pharma giant Sanofi's acquisition of biotech company Genzyme Corp. The Genzyme acquisition has boosted Sanofi's revenues as well as its pipeline. Meanwhile, AstraZeneca ( AZN ) acquired biotech company Ardea Biosciences.
Going forward, we expect the M&A trend to continue. We also expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. Instead of developing a product from scratch, which involves a lot of funds and time, pharma companies are shopping for mid-to-late stage pipeline candidates that look promising.
Small biotech companies are open to in-licensing activities and collaborations. Most of these companies find it challenging to raise cash, thereby making it difficult for them to survive and continue with the development of promising pipeline candidates. Therefore, it makes sense for them to seek deals with pharma companies that are sitting on huge piles of cash.
We would recommend investors put their money in biotech stocks that have attractive pipeline candidates or technology that can be used for the development of novel therapeutics. Therapeutic areas which could see a lot of in-licensing activity include oncology, central nervous system disorders, diabetes and immunology/inflammation. The hepatitis C virus (HCV) market is also attracting a lot of attention.
Another trend that we are seeing in recent months is the divestment of non-core business segments. Pfizer sold its Capsugel unit and its Nutrition business in August 2011 and November 2012, respectively. The company intends to spin-off its Animal Health business as well.
Meanwhile, GlaxoSmithKline is divesting non-core brands from its Consumer Healthcare segment. In August 2011, AstraZeneca sold its Astra Tech business to DENTSPLY ( XRAY ). The monetization of non-core assets will allow the pharma/biotech companies to focus on their areas of expertise. Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. While one company will deal in diversified medical products, the other (AbbVie) will focus on research-based pharmaceuticals.
Obamacare Rules
A major event that will have a significant impact on pharma and biotech stocks is the upholding of the Patient Protection and Affordable Care Act (ACA) by the Supreme Court in late June 2012. The Act, popularly referred to as "Obamacare," passed through Congress in 2010, represents major changes in the nation's healthcare sector.
The Act will provide coverage to 32 million uninsured Americans, make healthcare facilities more affordable, expand coverage for customers with pre-existing health conditions and keep a check on health insurers. The healthcare reform aims to end the discrimination policy of insurance companies, create competition amongst insurers through the establishment of health insurance exchanges, add value to the overall healthcare system and reduce premiums.
The upholding of the Act is a big win for pharma companies as the coverage base will increase.
Meanwhile, the signing of the Gaining Antiobiotic Incentives Now (GAIN) Act should benefit companies pursuing the development of novel antibiotics. Once approved, these products will enjoy an additional five years of marketing exclusivity. Companies that should benefit from this Act include The Medicines Company ( MDCO ), Optimer Pharma ( OPTR ) and Cubist Pharma ( CBST ) among others.
The US government is also exploring options which will help increase the availability of generics. The Obama administration announced that it is looking to implement a proposal under which the exclusivity period for biologics will be cut down by 5 years, thereby allowing generics to enter the market sooner.
The government is also seeking to increase the availability of generics by preventing companies from entering into anti-competitive or "pay for delay" agreements which push out the availability of generics. These initiatives, if implemented, would result in additional pricing competition and genericization in the pharma industry. Moreover, the establishment of a biosimilar pathway will lead to the availability of cheaper versions of biologics.
Emerging Markets
Another recent trend seen in the pharmaceutical sector is a focus on emerging markets. Companies like Mylan ( MYL ), Pfizer, Merck, Eli Lilly, Glaxo and Sanofi are all looking to expand their presence in India, China, Brazil and other emerging markets. Until recently, most of the commercialization efforts were focused on the US market -- the largest pharmaceutical market -- along with Europe and Japan.
Emerging markets are slowly and steadily gaining more importance and several companies are now shifting their focus to these areas. According to the IMS Institute, spending on medicines in "pharmerging" markets will almost double to $345 billion - $375 billion in five years from $194 billion in 2011.
However, while higher demand for medicines, government initiatives for healthcare, new patient population, and increasing use of generics should help drive demand, we point out that emerging markets are also not immune from genericization.
Meanwhile, according to the IMS Institute, annual growth in the branded medicines market will remain flat or increase up to 3% to $615 billion - $645 billion through 2016 from $596 billion in 2011.
As far as developed nations are concerned, the IMS Institute expects US spending to go up by $35 billion - $45 billion (1-4%) in the next five years. The introduction of medicines targeting unmet needs and higher patient access resulting from Obamacare are expected to drive growth.
However, growth in Europe will continue to be pressurized by austerity and cost-containment measures. According to the IMS Institute, growth in Europe will range from a negative 1% to positive 2%. The Japanese market is expected to grow at a slower pace annually (1-4%) through 2016 compared to the last five years.
Mixed Performance in the Third Quarter
Despite facing challenges like EU austerity measures, genericization, lower-than-expected contributions from new products, companies like Sanofi, Merck and Pfizer delivered stronger-than-expected results. However, companies like Eli Lilly, Bristol-Myers and Glaxo missed the Zacks Consensus Estimate. Both Eli Lilly and Bristol-Myers are facing stiff generic competition for their key products.
A look at the Earnings ESP (Expected Surprise Prediction - Zacks' proprietary methodology for determining which stocks have the best chance to surprise with their next earnings announcement) in the table below shows that companies like Sanofi, Johnson & Johnson, and Amgen could beat the Zacks Consensus Estimate in the fourth quarter of 2012. Johnson & Johnson, Biogen and Amgen have raised their outlook for 2012.
OPPORTUNITIES
We continue to have a Neutral outlook on large-cap pharma stocks. While the companies will continue to face challenges like EU austerity measures and genericization, the pharma industry should be out of the worst of the genericization phase from 2013. Several companies which had faced generic headwinds in the last couple of years should see their results recover from 2013. Cost-cutting, downsizing, streamlining of the pipeline, growth in emerging markets and product approvals should support growth.
Zacks #2 Rank (Buy) stocks in the pharma sector include Johnson & Johnson ( JNJ ), Bayer ( BAYRY ), Roche ( RHHBY ), Onyx Pharma ( ONXX ) and Valeant Pharma ( VRX ), among others.
In the biotech space, we are positive on Biogen ( BIIB ). We are optimistic on BG-12, the company's oral multiple sclerosis candidate. Key products, Avonex and Tysabri, should continue contributing significantly to sales.
We are also positive on Amgen ( AMGN ). We are encouraged by the company's performance so far this year. Enbrel should continue performing well. Amgen's late-stage pipeline is also moving along. Amgen is a Zacks #1 Rank (Strong Buy) stock.
Among generic companies, both Watson ( WTI ) and Mylan ( MYL ) carry a Zacks #2 Rank. While Watson should benefit from its acquisition of Actavis, we are encouraged by Mylan's geographic reach and product depth along with a robust generic product pipeline.
WEAKNESSES
We recommend avoiding names that offer little growth or opportunity for a take-out. These include companies which are developing drugs that are likely to face regulatory hurdles. The FDA has been exercising more caution in granting approval to new products and several candidates are facing delays in receiving final approval.
Although both Forest Labs ( FRX ) and Eli Lilly ( LLY ) carry a Zacks #3 Rank (Hold), we remain concerned about the headwinds being faced by these companies in the form of generic competition and slow ramp up of new products.
Companies that currently carry a Zacks #4 Rank (Sell) include BioSpecifics Therapeutics ( BSTC ), Jazz Pharma ( JAZZ ) and Catalyst Pharma ( CPRX ), among others.
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
VERTEX PHARM (VRTX): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
DENTSPLY INTL (XRAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. The last few quarters saw major blockbusters like Merck's ( MRK ) Singulair, Pfizer's ( PFE ) Lipitor, Forest Laboratories' ( FRX ) Lexapro, Sanofi/Bristol-Myers' ( SNY / BMY ) Plavix and Eli Lilly's ( LLY ) Zyprexa losing patent protection. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. Major deals so far in 2012 include Johnson & Johnson's ( JNJ ) acquisition of Synthes, Bristol-Myers Squibbs' acquisition of Amylin Pharmaceuticals, Inc., GlaxoSmithKline's ( GSK ) acquisition of Human Genome Sciences and Valeant Pharma's ( VRX ) upcoming acquisition of Medicis ( MRX ). | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. Companies that should benefit from this Act include The Medicines Company ( MDCO ), Optimer Pharma ( OPTR ) and Cubist Pharma ( CBST ) among others. | Abbott Labs ( ABT ) will be splitting into two separate publicly traded companies by year end. ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report TEVA PHARM ADR (TEVA): Free Stock Analysis Report VERTEX PHARM (VRTX): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report DENTSPLY INTL (XRAY): Free Stock Analysis Report To read this article on Zacks.com click here. We also expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. |
34352.0 | 2012-12-04 00:00:00 UTC | Weekly Healthcare Summary: Abbott, Pfizer, JNJ, Boston Scientific, Medtronic and Roche Holdings | ABT | https://www.nasdaq.com/articles/weekly-healthcare-summary-abbott-pfizer-jnj-boston-scientific-medtronic-and-roche-holdings | nan | nan | We plan to release a weekly note on the recent happenings in the healthcare space impacting healthcare companies under our coverage. Below we summarize a few such events related to Abbott Labs ( ABT ), Pfizer ( PFE ), Johnson & Johnson ( JNJ ), Boston Scientific's ( BSX ), Medtronic ( MDT ) and Roche Holdings (RHHBY) which could impact their value going forward.
Abbott Labs
Abbott Labs was in the news for a variety of reasons. Its largest-selling drug, Humira was approved for the treatment of severe active Crohn's Disease in pediatric patients who failed to respond to conventional treatments in the Europe. The approval will certainly strengthen the chances of Humira's approval for similar condition in other regions driving the revenue growth for the drug. Please refer Abbott Labs Updates: Europe Approves Humira For Severe Crohn's Disease in Children for further details.
Further, the company's board has paved the way for much talked about Abbott's split into two separate publicly traded companies. The company will complete the spin-off process by Jan 1. Refer our note Abbott Labs: Board Approves Split As Jan 1 Nears for more details.
SeeFull AnalysisFor Abbott Labs here
Pfizer
The buzz around Pfizer's acquisition of Stride Acrolab's specialty injectables unit Agila has been getting louder. While speculative at this stage, the acquisition if completed, will help the company get access to rapidly growing generic injectables, where the margins are higher than oral drugs. Further, the injectables supply has been going through a crunch following FDA's crackdown on various facilities. See our note Pfizer: Acquisition Of An Injectables Unit In India On The Cards? to get more insight.
See Full Analysis For Pfizer here
Johnson & Johnson
An advisory panel to the U.S. FDA has supported early approval for bedaquilinean, Johnson & Johnson's experimental drug for the treatment of tuberculosis (TB) as TB is considered resistant to currently available drugs. While they were unequivocal about the drug's efficacy (18-0 vote), some were concerned about safety (11-7 vote with 11 backing the safety). The experimental drug will be a part of the company's Anti-Infectives division, which is seeing a near-term decline in revenues due to the Levaquin patent expiry. However, a gradual recovery could be supported by a prior approval for the drug, which could clock $300 million in peak sales.
See Full Analysis ForJohnson & Johnson here
Boston Scientific and Medtronic
The U.S. FDA recently raised fresh concerns about the defibrillator leads from St. Jude Medical (STJ), one of its biggest competitors in the Cardiac Rhythm Management (CRDM) market. This is second such case for St. Jude Medical in the last twelve months. Such concerns erode brand value while making customers look for alternatives. St. Jude Medical generates about about $1.8 billion from total ICD business, which could be up for grabs due to FDA concerns and both companies could benefit from the fresh troubles for its competitor. Please read our note Boston Scientific Could Benefit From St. Jude Medical's Troubles.
SeeFull Analysis For Boston Scientific | Medtronichere
Roche Holdings
In a recent survey by J.D. Power and Associates, a business unit of McGraw-Hill, Roche Holdings' blood glucose meters topped industry average to beat Abbott Laboratories, among others. The company scored the highest in the performance category, meaning high confidence shown by consumers in the reliability of the company's devices. Banking to the survey, the company could try to boost its diabetes business, which has seen a decline in sales due to reimbursement cuts and pricing pressures. Diabetes care products are a part of "in vitro diagnostic products" in our model.
See Full Analysis For Roche Holdings Here
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below we summarize a few such events related to Abbott Labs ( ABT ), Pfizer ( PFE ), Johnson & Johnson ( JNJ ), Boston Scientific's ( BSX ), Medtronic ( MDT ) and Roche Holdings (RHHBY) which could impact their value going forward. See Full Analysis ForJohnson & Johnson here Boston Scientific and Medtronic The U.S. FDA recently raised fresh concerns about the defibrillator leads from St. Jude Medical (STJ), one of its biggest competitors in the Cardiac Rhythm Management (CRDM) market. St. Jude Medical generates about about $1.8 billion from total ICD business, which could be up for grabs due to FDA concerns and both companies could benefit from the fresh troubles for its competitor. | Below we summarize a few such events related to Abbott Labs ( ABT ), Pfizer ( PFE ), Johnson & Johnson ( JNJ ), Boston Scientific's ( BSX ), Medtronic ( MDT ) and Roche Holdings (RHHBY) which could impact their value going forward. Please refer Abbott Labs Updates: Europe Approves Humira For Severe Crohn's Disease in Children for further details. See Full Analysis ForJohnson & Johnson here Boston Scientific and Medtronic The U.S. FDA recently raised fresh concerns about the defibrillator leads from St. Jude Medical (STJ), one of its biggest competitors in the Cardiac Rhythm Management (CRDM) market. | Below we summarize a few such events related to Abbott Labs ( ABT ), Pfizer ( PFE ), Johnson & Johnson ( JNJ ), Boston Scientific's ( BSX ), Medtronic ( MDT ) and Roche Holdings (RHHBY) which could impact their value going forward. See Full Analysis For Pfizer here Johnson & Johnson An advisory panel to the U.S. FDA has supported early approval for bedaquilinean, Johnson & Johnson's experimental drug for the treatment of tuberculosis (TB) as TB is considered resistant to currently available drugs. See Full Analysis ForJohnson & Johnson here Boston Scientific and Medtronic The U.S. FDA recently raised fresh concerns about the defibrillator leads from St. Jude Medical (STJ), one of its biggest competitors in the Cardiac Rhythm Management (CRDM) market. | Below we summarize a few such events related to Abbott Labs ( ABT ), Pfizer ( PFE ), Johnson & Johnson ( JNJ ), Boston Scientific's ( BSX ), Medtronic ( MDT ) and Roche Holdings (RHHBY) which could impact their value going forward. Refer our note Abbott Labs: Board Approves Split As Jan 1 Nears for more details. SeeFull Analysis For Boston Scientific | Medtronichere Roche Holdings In a recent survey by J.D. |
34353.0 | 2012-11-29 00:00:00 UTC | NVS Discusses Data Readout Plans - Analyst Blog | ABT | https://www.nasdaq.com/articles/nvs-discusses-data-readout-plans-analyst-blog-2012-11-29 | nan | nan | Swiss pharmaceutical giant Novartis ( NVS ) recently announced that it intends to present key data from studies in patients suffering from hematologic diseases and breast cancer this December. The data, containing more than 140 abstracts, will be presented by Novartis at the American Society of Hematology (ASH) and the CTRC-AACR San Antonio Breast Cancer Symposium (SABCS).
Hematology
An important readout from the Hematology segment will be the presentation of two-year, follow-up data from phase III trials of Jakavi (ruxolitinib). Jakavi is being developed for the treatment of myelofibrosis. We note that Novartis licensed Jakavi from Incyte Corporation ( INCY ) for the development and commercialization of the drug in ex-US markets.
The Hematology segment will also include two-year follow-up data from a study which is evaluating patients suffering from Philadelphia chromosome-positive chronic myeloid leukemia (Ph+ CML) in the chronic phase. The patients had switched to Novartis' Tasigna after long-term treatment with the company's other hematology drug Glivec to achieve a deeper molecular response.
Novartis will be presenting updated data on Exjade (deferasirox) as a treatment of non-transfusion-dependent thalassemia (NTDT). We note that earlier in the month, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) had issued a positive opinion for approving Exjade for the NTDT indication. The company will also present new data from another study on the drug, where it is being developed for the removal of cardiac iron in Beta-thalassemia major. The Hematology segment also includes data presentation from other clinical trials on CTL019 (CART-19), PKC412 (midostaurin) and LBH589 (panobinostat), among others.
The hematology market currently has players like Abbott Laboratories ( ABT ).
Breast Cancer
Novartis is also engaged in research and development efforts for the treatment of breast cancer. The company currently has several candidates in this segment. Novartis will present data from a phase II clinical trial on Afinitor in combination with fulvestrant. The study is evaluating the combination in women suffering from HR+ advanced breast cancer who have progressed on a previous endocrine therapy.
Novartis will also present data from an additional phase II study on Afinitor in combination with Femara and from a phase III trial of Afinitor in combination with Pfizer Inc. 's ( PFE ) Aromasin. Novartis estimates that Afinitor has the potential to generate $2 billion alone in advanced breast cancer by 2017.
Other important data readouts in breast cancer studies include data from a pre-clinical data from LBH589, a phase I study of BYL719 and a phase III randomized study of PI3K inhibitor BKM120.
We remind investors that companies like Roche Holding ( RHHBY ) are already in the market targeting breast cancer.
Currently we have a Neutral recommendation on Novartis. The company carries a Zacks #3 Rank (Hold rating) in the short run.
ABBOTT LABS (ABT): Free Stock Analysis Report
INCYTE CORP (INCY): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
(RHHBY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The hematology market currently has players like Abbott Laboratories ( ABT ). ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Swiss pharmaceutical giant Novartis ( NVS ) recently announced that it intends to present key data from studies in patients suffering from hematologic diseases and breast cancer this December. | ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. The hematology market currently has players like Abbott Laboratories ( ABT ). Hematology An important readout from the Hematology segment will be the presentation of two-year, follow-up data from phase III trials of Jakavi (ruxolitinib). | ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. The hematology market currently has players like Abbott Laboratories ( ABT ). Novartis will also present data from an additional phase II study on Afinitor in combination with Femara and from a phase III trial of Afinitor in combination with Pfizer Inc. 's ( PFE ) Aromasin. | The hematology market currently has players like Abbott Laboratories ( ABT ). ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Hematology An important readout from the Hematology segment will be the presentation of two-year, follow-up data from phase III trials of Jakavi (ruxolitinib). |
34354.0 | 2012-11-29 00:00:00 UTC | Gilead Reports Positive HCV Data - Analyst Blog | ABT | https://www.nasdaq.com/articles/gilead-reports-positive-hcv-data-analyst-blog-2012-11-29 | nan | nan | Gilead Sciences ( GILD ) recently presented encouraging top-line data from a phase III study (Positron) which evaluated its candidate sofosbuvir (formerly GS-7977) combined with ribavirin in patients suffering from genotypes 2 or 3 of the chronic hepatitis C virus (HCV). The study evaluated patients, who were unable or unwilling to take interferon, a standard HCV therapy characterized by unpleasant side effects. Through this study, Gilead is aiming to develop an all-oral treatment regimen to combat HCV.
Data from the study revealed that after 12 weeks of completion of treatment, no traces of the HCV virus were detected in 78% patients in the sofosbuvir arm. Moreover, the candidate exhibited a safety profile similar to that witnessed in earlier studies. Furthermore, only a few patients discontinued treatment due to adverse events. Gilead intends to present full data from the phase III study at an upcoming scientific conference. | Gilead Sciences ( GILD ) recently presented encouraging top-line data from a phase III study (Positron) which evaluated its candidate sofosbuvir (formerly GS-7977) combined with ribavirin in patients suffering from genotypes 2 or 3 of the chronic hepatitis C virus (HCV). The study evaluated patients, who were unable or unwilling to take interferon, a standard HCV therapy characterized by unpleasant side effects. Data from the study revealed that after 12 weeks of completion of treatment, no traces of the HCV virus were detected in 78% patients in the sofosbuvir arm. | Gilead Sciences ( GILD ) recently presented encouraging top-line data from a phase III study (Positron) which evaluated its candidate sofosbuvir (formerly GS-7977) combined with ribavirin in patients suffering from genotypes 2 or 3 of the chronic hepatitis C virus (HCV). The study evaluated patients, who were unable or unwilling to take interferon, a standard HCV therapy characterized by unpleasant side effects. Gilead intends to present full data from the phase III study at an upcoming scientific conference. | Gilead Sciences ( GILD ) recently presented encouraging top-line data from a phase III study (Positron) which evaluated its candidate sofosbuvir (formerly GS-7977) combined with ribavirin in patients suffering from genotypes 2 or 3 of the chronic hepatitis C virus (HCV). The study evaluated patients, who were unable or unwilling to take interferon, a standard HCV therapy characterized by unpleasant side effects. Data from the study revealed that after 12 weeks of completion of treatment, no traces of the HCV virus were detected in 78% patients in the sofosbuvir arm. | Gilead Sciences ( GILD ) recently presented encouraging top-line data from a phase III study (Positron) which evaluated its candidate sofosbuvir (formerly GS-7977) combined with ribavirin in patients suffering from genotypes 2 or 3 of the chronic hepatitis C virus (HCV). The study evaluated patients, who were unable or unwilling to take interferon, a standard HCV therapy characterized by unpleasant side effects. Through this study, Gilead is aiming to develop an all-oral treatment regimen to combat HCV. |
34355.0 | 2012-11-28 00:00:00 UTC | 3 Retirement Savings Stocks That Consistently Increase Dividends | ABT | https://www.nasdaq.com/articles/3-retirement-savings-stocks-consistently-increase-dividends-2012-11-28 | nan | nan | Dividend reinvesting is a time-honored method of building wealth. Even whenmarket gains slow down, dividendsoffer regular and dependable income that, when reinvested, quickly ramp up the value of your portfolio.
Dividend reinvestment even makes sense in a falling market. There is an inverse relationship between dividend yields and stock prices. This means when stock prices decrease, dividend yields increase. Reinvesting the increasedyield back into lower-priced stocks creates an automaticcompounding effect that can dramatically increase yourbottom line over time.
Believe it or not, since 1920, dividends have accounted for 40% of the gains booked in the S&P 500. Investors who don't participate in dividend reinvestment miss out on a huge part of the stock market's gains over time.
When it comes to a successful dividend reinvestment strategy, there are three key aspects you should consider.
1. Don't touch your principle
Your principle or nest egg is the must-have tool to earn dividend income for reinvestment. Decreasing your principle by sellingshares will noticeably increase the time needed to reach your financial goals. Even during times of dropping stock prices, when it will be tempting to get rid of a stock, time has proven this isn't a wise move.
2. Keep your costs low
The lower your investing costs, the higher your potential profits. In the volatile world of stock investing, costs are the one thing completely under your control. Think of dividend reinvesting as a business, so try to keep your business costs low. Find out what yourbroker charges and shop around for the best price.
3. Only invest in companies that historically increase dividends
This is perhaps the most important aspect in successful dividend investing. Not only are companies that regularly increase dividends generally more stable, but increasing dividends is the assurance that your dividend income retains its purchasing power over time.
My colleague Carla Pasternak, the face behind High-Yield Investing , teaches these same concepts. Carla likes to find reliable stocks that regularly increase dividends. She calls these Retirement Savings Stocks is now.
Many investors are concerned about the potential dividend tax increase slated to take place on Jan. 1, 2013. It's still uncertain whether a solution to the country's fiscal problems will be reached by the end of the year, when the automatic tax increases will be enacted. But investors should keep in mind that history has shown that previous changes to the dividendtax rate only have a short-term effect on dividend stocks. Generally, within six months of the tax change, dividend stocks return to their normal valuations. If the worst-case scenario happens and dividendtaxes increase, then dividend-paying stocks will likely still offer superior returns and provide those who live off theirinvestment income with a wiser choice than selling shares and being hit with capital-gain taxes.
And there are many great Retirement Savings Stocks that regularly increase dividends. Here are three of my favorite stocks right now...
1. Aflac Inc. ( AFL )
Well known for its TV commercials featuring a duck, Aflac is a supplemental insurance company that pays adividend yield of 3%. It has increased its dividends consistently during the past 30 years. Although the dividend has risen by only about 6% in 2012, it has increased by an average of 11% during the past five years. The company's earnings-per-share (EPS ) is forecast to improve 11% each of the next five years. Based on these metrics, it's extremely likely Aflac's history of dividend increases will continue.
2. Abbott Laboratories ( ABT )
Boasting amarket capitalization of nearly $100 billion, this pharmaceutical kingpin is a leader in its field. During the past five years, the company has increased dividends at an average annual rate of roughly 9.5%. EPS is forecast to grow about 8.5% per year and will likely allow the dividend increases to continue. It currently pays a dividend yield of 3% on apayout ratio of 50%.
As a point of interest, the company is about to split into a medical products business named AbbVie, while Abbott will continue to focus on medical devices, nutritional products and diagnostics. This split will likely be very positive for the stock price. I focused on the benefits of these types of corporate actions in this article .
3. Eaton Corp. ( ETN )
This aerospace, power management and hydraulic components maker grew its EPS by an average of 6% per year during the past five years. The growth is projected to continue at a 9% rate for the next five years. Dividends increased at an average rate of 12% during this same time frame. Currently, its dividend yields roughly 3%. The historic and projected EPS growth paints a powerful case for continued dividend increases.
Risks to Consider: It's important to remember that nothing is ever for certain in the stock market. Long-time dividend-yielding stocks that appear solid can suddenly stop paying or even suffer steep declines. Always use stops and be sure to position size properly when investing.
Action to Take --> The three stocks listed above are strong contenders for everyone's dividend reinvestment portfolio. And while I won't presume to speak for Carla, I think they fit the bill for Retirement Savings Stocks pretty well. Their proven record of dividend increases and unyielding performance metrics creates a compelling case for each of the companies.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ( ABT ) Boasting amarket capitalization of nearly $100 billion, this pharmaceutical kingpin is a leader in its field. Reinvesting the increasedyield back into lower-priced stocks creates an automaticcompounding effect that can dramatically increase yourbottom line over time. Investors who don't participate in dividend reinvestment miss out on a huge part of the stock market's gains over time. | Abbott Laboratories ( ABT ) Boasting amarket capitalization of nearly $100 billion, this pharmaceutical kingpin is a leader in its field. This means when stock prices decrease, dividend yields increase. And there are many great Retirement Savings Stocks that regularly increase dividends. | Abbott Laboratories ( ABT ) Boasting amarket capitalization of nearly $100 billion, this pharmaceutical kingpin is a leader in its field. This means when stock prices decrease, dividend yields increase. Only invest in companies that historically increase dividends This is perhaps the most important aspect in successful dividend investing. | Abbott Laboratories ( ABT ) Boasting amarket capitalization of nearly $100 billion, this pharmaceutical kingpin is a leader in its field. Investors who don't participate in dividend reinvestment miss out on a huge part of the stock market's gains over time. Only invest in companies that historically increase dividends This is perhaps the most important aspect in successful dividend investing. |
34356.0 | 2012-11-28 00:00:00 UTC | Abbott's Humira's Label Expanded - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbotts-humiras-label-expanded-analyst-blog-2012-11-28 | nan | nan | Abbott Labs ( ABT ) recently received approval for yet another indication of Humira (adalimumab). The European Commission approved Humira for the treatment of severe active Crohn's disease (CD) in pediatric patients (6 to 17 years) who failed or are intolerant to or have contraindications to conventional therapy. This approval makes Humira the first biologic treatment to be approved for this patient population in more than five years.
Approval was largely expected as in October, the European Committee for Medicinal Products for Human Use (CHMP) had adopted a positive opinion for Humira for the above indication. According to the company, about 200,000 children suffer from Crohn's disease across the world.
Humira is a key product in Abbott Labs' pharmaceutical products portfolio. Humira is approved for several indications including rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, psoriasis, juvenile idiopathic arthritis, and Crohn's disease. Humira sales increased 21.1% to $7.9 billion in 2011. Growing awareness, favorable clinical data, additional indications and expansion into new markets like China and Japan should help the product to continue contributing significantly to the top-line.
Abbott Labs has been working on expanding Humira's label. Some time back, Abbott Labs gained FDA approval for Humira for inducing and sustaining clinical remission in adult patients suffering from moderately to severely active ulcerative colitis when certain other medicines have not worked sufficiently.
Approval for this indication came a few weeks after Abbott Labs gained approval from the European Commission for Humira for the treatment of moderately active Crohn's disease in adult patients who have responded inadequately to conventional therapy. Earlier this year, Humira had gained EC approval for the treatment of adults with severe axial spondyloarthritis (axSpA) who have no X-ray evidence of structural damage.
Other players in the anti-inflammatory market include Pfizer / Amgen's ( PFE / AMGN ) Enbrel, Johnson & Johnson / Merck's ( JNJ / MRK ) Remicade and Simponi.
We currently have a Neutral recommendation on Abbott Labs, which carries a Zacks #3 Rank (short-term 'Hold' rating). Meanwhile, Johnson & Johnson carries a Zacks #2 Rank (short-term 'Buy' rating).
ABBOTT LABS (ABT): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | Abbott Labs ( ABT ) recently received approval for yet another indication of Humira (adalimumab). ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. The European Commission approved Humira for the treatment of severe active Crohn's disease (CD) in pediatric patients (6 to 17 years) who failed or are intolerant to or have contraindications to conventional therapy. | ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) recently received approval for yet another indication of Humira (adalimumab). Approval for this indication came a few weeks after Abbott Labs gained approval from the European Commission for Humira for the treatment of moderately active Crohn's disease in adult patients who have responded inadequately to conventional therapy. | ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Labs ( ABT ) recently received approval for yet another indication of Humira (adalimumab). Some time back, Abbott Labs gained FDA approval for Humira for inducing and sustaining clinical remission in adult patients suffering from moderately to severely active ulcerative colitis when certain other medicines have not worked sufficiently. | Abbott Labs ( ABT ) recently received approval for yet another indication of Humira (adalimumab). ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. The European Commission approved Humira for the treatment of severe active Crohn's disease (CD) in pediatric patients (6 to 17 years) who failed or are intolerant to or have contraindications to conventional therapy. |
34357.0 | 2012-11-27 00:00:00 UTC | Pfizer Update: Europe Approves Eliquis For Atrial Fibrillation | ABT | https://www.nasdaq.com/articles/pfizer-update-europe-approves-eliquis-atrial-fibrillation-2012-11-27 | nan | nan | Pfizer's ( PFE ) blockbuster potential drug Eliquis (co-developed with Bristol-Myers Squibb ( BMY )) has received the European Medicines Agency's (EMA) approval for expanding the drug's use to prevent heart attack and stroke in adult patients with nonvalvular atrial fibrillation, a type of abnormal/irregular heart beat. The approval will certainly help boost optimism around the drug and could get the stock moving even as the approval was anticipated following a European medical panel's positive opinion to extend the drug (Read European Panel Backs Pfizer's Eliquis For Atrial Fibrillation ). However, the drug still lacks the U.S. FDA approval without which the drug cannot achieve its full sales potential going forward.
See our complete analysis for Pfizer
Eliquis is a drug used in blood thinning and is part of the antithrombotic family, which helps prevent clotting inside the body that can restrict blood circulation to the organs. The drug is currently approved in many countries (excluding the U.S.) for preventing blood clots in patients who have knee or hip replacements. But the drug's extension to patients with atrial fibrillation and acute coronary syndrome (related to the blockage of coronary arteries) holds the key for its future.
Atrial fibrillation increases the risk of stroke almost five times than those without it and is estimated to impact millions of individuals worldwide (1% of adults worldwide, 9 million in Europe and the U.S.). Therefore, the condition offers a multi-billion dollar opportunity for drug manufacturers to come up with an antithrombotic drug that can help prevent heart attack in patients with a history of heart problems. The EMA's approval will begin to open a larger market as the drug has not yet been approved for indication anywhere.
The EMA approval makes the drug's case to receive the U.S. FDA approval stronger as the drug has been delayed two times, citing need for more information on management and verification of data. But we believe the drug will eventually be approved in the U.S. by early next year (around March). The drug has shown higher efficacy in preventing clots and strokes compared to warfarin, a standard treatment in clinical trials. The drug is also undergoing phase III clinical trials for the treatment of Venous thromboembolism (a blood clot within a vein), considered the third most common cardiovascular illness after acute coronary syndrome and stroke.
With the EMA approval, the company can fend off significant patents expiry in its cardiovascular division as Eliquis could garner as much as $3 billion in peak sales (Read Pfizer Patent Cliff: A Look At The Cardiovascular Drugs Division ). However, much of this is dependent on the FDA approval and any setback there could have a substantial impact on the company's value as Pfizer's cardiovascular division (excluding Lipitor) contributes nearly 10% of the our $26 price estimate, which we are in the process of revising. Further, any delay in approval would strengthen the foothold of its closest rivals Johnson & Johnson's ( JNJ ) Xarelto and Boehringer-Ingelheim's Pradaxa.
By moving the trend-line in the chart below, you can see the impact of revenue from non-Lipitor cardiovascular drugs on our price estimate for Pfizer's stock.
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The drug has shown higher efficacy in preventing clots and strokes compared to warfarin, a standard treatment in clinical trials. The drug is also undergoing phase III clinical trials for the treatment of Venous thromboembolism (a blood clot within a vein), considered the third most common cardiovascular illness after acute coronary syndrome and stroke. However, much of this is dependent on the FDA approval and any setback there could have a substantial impact on the company's value as Pfizer's cardiovascular division (excluding Lipitor) contributes nearly 10% of the our $26 price estimate, which we are in the process of revising. | Pfizer's ( PFE ) blockbuster potential drug Eliquis (co-developed with Bristol-Myers Squibb ( BMY )) has received the European Medicines Agency's (EMA) approval for expanding the drug's use to prevent heart attack and stroke in adult patients with nonvalvular atrial fibrillation, a type of abnormal/irregular heart beat. The approval will certainly help boost optimism around the drug and could get the stock moving even as the approval was anticipated following a European medical panel's positive opinion to extend the drug (Read European Panel Backs Pfizer's Eliquis For Atrial Fibrillation ). Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pfizer's ( PFE ) blockbuster potential drug Eliquis (co-developed with Bristol-Myers Squibb ( BMY )) has received the European Medicines Agency's (EMA) approval for expanding the drug's use to prevent heart attack and stroke in adult patients with nonvalvular atrial fibrillation, a type of abnormal/irregular heart beat. The approval will certainly help boost optimism around the drug and could get the stock moving even as the approval was anticipated following a European medical panel's positive opinion to extend the drug (Read European Panel Backs Pfizer's Eliquis For Atrial Fibrillation ). The EMA approval makes the drug's case to receive the U.S. FDA approval stronger as the drug has been delayed two times, citing need for more information on management and verification of data. | Pfizer's ( PFE ) blockbuster potential drug Eliquis (co-developed with Bristol-Myers Squibb ( BMY )) has received the European Medicines Agency's (EMA) approval for expanding the drug's use to prevent heart attack and stroke in adult patients with nonvalvular atrial fibrillation, a type of abnormal/irregular heart beat. The drug is also undergoing phase III clinical trials for the treatment of Venous thromboembolism (a blood clot within a vein), considered the third most common cardiovascular illness after acute coronary syndrome and stroke. However, much of this is dependent on the FDA approval and any setback there could have a substantial impact on the company's value as Pfizer's cardiovascular division (excluding Lipitor) contributes nearly 10% of the our $26 price estimate, which we are in the process of revising. |
34358.0 | 2012-11-26 00:00:00 UTC | The Best Pharma Stock to Profit from the 'Patent Cliff' | ABT | https://www.nasdaq.com/articles/best-pharma-stock-profit-patent-cliff-2012-11-26 | nan | nan | Expiringpatents are usually bad news for major pharmaceutical companies, especially if the patents are for popular "blockbuster" medications generating $1 billion or more of annual revenue. When those patents expire, thepatent holders can usually expect revenue from their blockbusters to erode as rivals bring similar versions tomarket .
Now, I'm not saying you should avoid the stocks of big drug companies like Pfizer Inc. ( PFE ) , Johnson & Johnson ( JNJ ) and others simply to avoid near-term bumps in financial performance that may come with patent expirations. These companies have been around for ages, and they're always working on new blockbuster drugs to replace those going off-patent. So I'm not too worried about their long-term profitability orinvestment merit.
Still, you can protect yourself against periodic performance blips resulting from patent expirations by investing in companies that know best how tocapitalize on this vulnerability. In fact, there's one firm I especially like because it has made a habit of turning brand name patent expirations into big profits.
I'm referring to Parsippany, New Jersey-based Watson Pharmaceuticals Inc. ( WPI ) .
You probably haven't heard of Watson, but the firm has three decades of experience bringing generic drugs to market in a timely fashion. Among the latest are generic versions of Pfizer's $5.3-billion high-cholesterol medication Lipitor and Johnson & Johnson's $1.4-billion attentiondeficit and hyperactivity disorder (ADHD) treatment Concerta. Watson introduced generic Lipitor Nov. 30, 2011, the day the patent on the branded version expired. Generic Concerta became available May 2, 2011, also the exact date the original brand went off-patent.
Sales have long been fantastic, rising 18.6% annually during the past decade from $1.2 billion in 2002 to the $6.6 billion they're on track to achieve in 2012.Earnings have soared by 13.9% a year during this time, starting at $1.63 a share and on pace to hit $6 a share in 2012. As a result, the stock has rewarded shareholders with market-beating performance, delivering an annualized rate of return of 11.4% for the past decade, compared with 6.6% for the S&P 500.
And I feel confidentshares of Watson still have plenty of room to run.
Because generic drugs are generally much cheaper for patients and health care systems overall, demand for generics should remain very strong in coming years. As the world's third-largest manufacturer of these drugs, Watson is well-positioned to help meet that demand.
A key move to put the company in that position was the recentacquisition of Switzerland-based generic drug maker Actavis for $5.7 billion. Before this, many investors were concerned about revenue headwinds because of Watson's limited international exposure and a slowing pace of patent expirations domestically. But the deal transformed Watson -- which plans to begin operating exclusively under the Actavis name in 2013 -- into a global force.
This is because Actavis was already a formidable player in the global generics market, with $2.5 billion in annual sales, more than 1,000 products on the market, several hundred new products in the pipeline and operations in 40 countries. Some of its better-known products include generic versions of the ADHD medication Ritalin and the sleeping pill Ambien. With this acquisition, Watson became the world's third-largest generic drug manufacturer, up from No. 5 before.
Based on a December 2011 announcement of apartnership with the well-known biotech firm Amgen Inc. (Nasdaq: AMGN) , it appears Watson will also be entering what many investors consider the drug industry's next frontier -- "biosimilars," which are near-equivalent versions of existing medications. Although the two companies haven't yet revealed which medications they intend to imitate, analysts speculate the $9-billion arthritis drug Humira manufactured by Abbott Labs ( ABT ) and the $3-billion cancer medication Rituxan made by Genentech Inc. are among the potential candidates.
Risks to Consider: Like the big drug makers, Watson faces heavy competition -- particularly from low-cost generic drug producers in India and China.
Action to Take --> Because of Watson's long history of success and recent growth initiatives, I think it's arguably the best play on the highly profitable generic drugs space, as well as on potentially lucrative biosimilars. Indeed, analysts predict revenue will continue to expand quickly, rising 13% a year to about $11 billion in 2017.
Earnings are projected to climb to $9.50 per share during that time. If you multiply the stock's historicalprice-to-earnings ratio of 14 by 2017's projectedEPS , then you get an estimated stock price of $133 (14 x $9.50). This implies the potential for a 56% gain from the current price of about $85 a share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although the two companies haven't yet revealed which medications they intend to imitate, analysts speculate the $9-billion arthritis drug Humira manufactured by Abbott Labs ( ABT ) and the $3-billion cancer medication Rituxan made by Genentech Inc. are among the potential candidates. Expiringpatents are usually bad news for major pharmaceutical companies, especially if the patents are for popular "blockbuster" medications generating $1 billion or more of annual revenue. Based on a December 2011 announcement of apartnership with the well-known biotech firm Amgen Inc. (Nasdaq: AMGN) , it appears Watson will also be entering what many investors consider the drug industry's next frontier -- "biosimilars," which are near-equivalent versions of existing medications. | Although the two companies haven't yet revealed which medications they intend to imitate, analysts speculate the $9-billion arthritis drug Humira manufactured by Abbott Labs ( ABT ) and the $3-billion cancer medication Rituxan made by Genentech Inc. are among the potential candidates. Now, I'm not saying you should avoid the stocks of big drug companies like Pfizer Inc. ( PFE ) , Johnson & Johnson ( JNJ ) and others simply to avoid near-term bumps in financial performance that may come with patent expirations. Among the latest are generic versions of Pfizer's $5.3-billion high-cholesterol medication Lipitor and Johnson & Johnson's $1.4-billion attentiondeficit and hyperactivity disorder (ADHD) treatment Concerta. | Although the two companies haven't yet revealed which medications they intend to imitate, analysts speculate the $9-billion arthritis drug Humira manufactured by Abbott Labs ( ABT ) and the $3-billion cancer medication Rituxan made by Genentech Inc. are among the potential candidates. Now, I'm not saying you should avoid the stocks of big drug companies like Pfizer Inc. ( PFE ) , Johnson & Johnson ( JNJ ) and others simply to avoid near-term bumps in financial performance that may come with patent expirations. You probably haven't heard of Watson, but the firm has three decades of experience bringing generic drugs to market in a timely fashion. | Although the two companies haven't yet revealed which medications they intend to imitate, analysts speculate the $9-billion arthritis drug Humira manufactured by Abbott Labs ( ABT ) and the $3-billion cancer medication Rituxan made by Genentech Inc. are among the potential candidates. Expiringpatents are usually bad news for major pharmaceutical companies, especially if the patents are for popular "blockbuster" medications generating $1 billion or more of annual revenue. Watson introduced generic Lipitor Nov. 30, 2011, the day the patent on the branded version expired. |
34359.0 | 2012-11-21 00:00:00 UTC | 3 Bio-Pharmas Trades Offering Good Upside Potential | ABT | https://www.nasdaq.com/articles/3-bio-pharmas-trades-offering-good-upside-potential-2012-11-21 | nan | nan | Submitted by Scott Matusow as part of our contributors program .
With some added confidence shown by investors yesterday, it's a good time to look at some "risk on" small cap bio-pharma stocks that I feel offer good upside for both swing trades and longer term holds. However, with the looming "fiscal cliff" approaching, without a clear agreement in Washington between both political parties soon, the market might still see some additional selling pressure.
BG Medicine (NASDAQ: BGMD)
BG Medicine engages in the discovery, development, and commercialization of novel cardiovascular diagnostics to address unmet medical needs. The company markets the BGM Galectin-3, a diagnostic test for measuring galectin-3 levels in blood plasma or serum for use in patients with heart failure. These are sold to hospitals and clinics in the United States, as well as through distributors in certain countries in Europe. It is also developing CardioSCORE, a cardiovascular diagnostic test designed to identify individuals at high risk for near term cardiovascular events, such as heart attack and stroke; and galectin-3 test for a second indication to identify individuals at risk for developing heart failure, such as patients who have suffered a heart attack, as well as patients suffering from hypertension or diabetes. It has strategic collaborations with Abbott Laboratories (NYSE: ABT) to develop and commercialize galectin-3 assay kits and related control kits and calibrators.
In the earnings press release dated November 13, 2012 , BG Medicine, Inc. announced financial results for the fiscal quarter ended September 30, 2012 and provided a business update.
Included in this business update, the company announced a new commercial strategy to speed the adoption of its cardiovascular diagnostic tests - the BGM Galectin-3 test and the CardioSCORE test.
In the release, the company announced a strategic reorganization in its research and development department moving toward a more commercially-oriented role in support of studies designed to further differentiate and support the BGM Galectin-3 and CardioSCORE tests in the marketplace. As a result of this strategic reorganization, eleven positions in early discovery research were eliminated on November 8, 2012. As a result of the strategic reorganization, the company will record one-time severance costs of approximately $150,000, which will be recorded in the fourth quarter of 2012. Further, the company estimates that it will generate savings of up to $1.2 million in 2013. After this strategic reorganization, the company will have 26 full time employees.
President and CEO of BG Medicine Eric Bouvier remarked;
[quote]
We have taken a series of important steps over the past year to realign BG Medicine into a more commercially-focused company, capable of playing a larger role in facilitating the market adoption of our innovative cardiovascular diagnostic tests. The steps outlined today represent the culmination of our efforts to transform BG Medicine. Taken together, these actions place us in a much stronger position to control our own destiny and drive our own commercial success.
In July 2012, BD Medical announced the filing of a 510(k) Pre-market Notification with the U.S. Food and Drug Administration (FDA) for regulatory clearance of the Abbott Architect galectin-3 assay, which is used with Abbott's fully automated Architect immunochemistry instrument platform. In August 2012, Abbott received a letter from the FDA regarding its 510(k) notification that requested additional information and Abbott is undertaking activities to respond to the FDA. In addition, BD Medical expects Abbott to begin marketing an automated version of the test in the EU under a CE Mark in late 2012 or early 2013. In May 2012, a 510(k) was submitted by the company to extend the labeling indication for the BGM Galectin-3 test to include individuals in the general adult population who are at risk for developing heart failure based on elevated levels of galectin-3. In July 2012, a letter from the FDA regarding the 510(k) notification requested additional information, including information regarding the clinical validation study and additional analytical study data. A response was submitted to the FDA in November 2012. If BD Medical obtains clearance in the United States for this additional indication, the company expects the potential market for the BGM Galectin-3 test to increase significantly.
[/quote]
On November 15th, company officer Bancel Stephane purchased 100,000 shares for approximately $126,000. Obviously, this is a bullish sign when an insider buys a block this large with their own money. Tackling some of the cost issues the company has as BG is looking to do, is clearly a step forward.
(click to enlarge)
The chart above shows a very oversold condition, but the stock showed signs of turning around yesterday as the volume and stock price moved up. The RSI is finally starting to turn up along with the MACD, so it looks to me we have seen a bottom here, so I consider this a nice pinch chart bottom bounce trade - at the very least.
With a current market cap of $23.58M, a strong partnership with Abott Labs, and speculative longer term value, BG Medicine seems ridiculously undervalued and oversold to me. My short target opinion (1 day to 3 months) is between $1.45- $1.55 a share. My long term target opinion here is not certain at this time - not until we see how the company executes its new business plan.
Arena Pharmaceuticals (NASDAQ:ARNA)
Arena engages in discovering, developing, and commercializing oral drugs that target G protein-coupled receptors in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases.
Since the approval of its weight loss drug Belviq in June the stock has fallen from a yearly high of $11.39 to $7.21-a fall of 37%. I feel long term investors have excellent value here at its current price level. The focus now on Arena should be the potential top-line growth from its strong pre-clinical pipeline. Because Arena will likely receive a large amount of cash from Belviq sales, I believe it is a strong speculation bet that management will re-invest this cash into its pipeline, gaining leverage in any potential deal with a large pharma partner for any of its pre-clinical pipelined drugs.
Arena had some interesting things to say about its long term goals in its presentation at the Lazard Capital conference:
[quote]
[We have a] significant market opportunity, [for Belviq] worldwide it's 0.5 billion individuals that are classified as obese. So it's a significant market opportunity for us. We actually are very much ready for the launch. We've delivered we announced in our last 10-Q launch supply to Eisai. So we delivered uh $11.6 million worth. It's a portion of the launch supply. So we'll be ready to launch as soon as we get DEA scheduling.
So in terms of looking at further down the economics at $250 million in net sales, we'll get 31.5% of that [from its partner Eisai] which is about $80 million plus that threshold we achieved some purchase price adjustments as well as some milestones which another $55 million take on top of that when we get DEA scheduling is another $65 million. So if I do my math right that's an excess of $200 million on their first $250 million of sale.
So it makes significant opportunity for us. In terms of other opportunities we just announced last week a nice collaboration with the South Korean company Ildong but we received a $5 million upfront payment great economic service as well first dollar on net sales is at 35% and that will ramps up to 45% on net sale.
In terms of other areas that we are moving forward with the European strategy. We did file in the EU in March of this year. I can't believe it's for this year but and so we founded the 120 day questions and we are hopeful to get a decision on that in first half of 2013 probably behind that is actually Switzerland as well which is where our manufacturing facility is.
[/quote]
(click to enlarge)
The chart above shows me a nice symmetrical triangle setting up for Arena. The MACD and RSI indicate that this new leg up still has a lot of steam left to go higher.
The catalyst trading is pretty much done in Arena, so the stock has been seeing a steady decline-hot money exiting, smart money accumulating. Although still speculative, Arena might just be a great long term investment if it manages its money correctly. Belviq sales could open the door for Arena to potentially become a full fledged pharma within the next 3 to 5 years. I believe the stock price could reach near $20 or so in the next 2 years - if again, managed correctly.
My short term (1 day to 3 months) target opinion for Arena is $10. My long term target opinion is $30 dollars - 3 years.
Antares Pharma (NASDAQ: ATRS)
Antares engages in the development and marketing of self-injection pharmaceutical products and technologies, and topical gel-based products. It offers Vision/Tjet reusable needle-free injectors that deliver precise medication doses through high-speed pressurized liquid penetration of the skin without a needle; The Vibex disposable pressure assisted auto injector devices that are used for the controlled pressure delivery of drugs into the body utilizing a spring power source; disposable pen injection systems, which are needle-based devices designed to deliver multiple drugs by injection through needles from multi-dose drug cartridges.
Antares expects to file an NDA for Vibex MTX in February of 2013, but I believe the NDA filing to be as early as December of this year, based on the company's prior history of under-promising and over-delivering.
The company recently announced positive results from an open-label, randomized, crossover study comparing the systemic availability of MTX Medi-Jet to oral methotrexate ( MTX ) in adult patients with rheumatoid arthritis (RA).
This study was designed to compare the relative systemic availability of MTX following oral administration to subcutaneous (SC) self-administered MTX using the Medi-Jet device. Patients were assigned to one of four dose levels of MTX, 10 mg, 15 mg, 20 mg, and 25 mg. Results showed that the systemic availability of methotrexate following oral dosing plateaus above 15 mg. Following administration of MTX with Medi-Jet, the systemic availability increased proportionally at every dose, which will extend the range of exposure compared to patients receiving oral therapy.
Historically, parenteral MTX use has been limited in clinical practice for several reasons including the inconvenience of weekly injections by a healthcare professional, and/or the challenges associated with teaching patients with impaired hand function, safe and sterile self-injection techniques. To address these issues, the easy to use, single-use MTX Medi-Jet auto injector was developed to optimize the clinical benefit of MTX, leading to cost effective treatment outcomes.
VIBEX QS T for Testosterone Replacement Therapy:
QS T is potentially the first self-injectable testosterone product for men suffering from symptomatic testosterone deficiency (Low T). Most of this market currently is made up of gel treatments, which most men really do not like. I am sure many of you have seen the commercials on TV advertising these testosterone gels.
Rx's for current treatment options equal two-thirds topical gel testosterone and one third intramuscular injections, and according to recent reports, U.S. sales of testosterone replacement therapies exceeded $1.6 billion* in 2011- 5.6 million Rx's. Studies have shown that gel patients do not achieve adequate absorption or therapeutic response; injection patients bear the cost and inconvenience of in-office injections every 2 to 4 weeks.
Physicians surveyed believe self-injection will improve patient compliance and deliver sufficient serum testosterone levels-according to the company.
The New VIBEX QS is particularly well-suited for use with highly viscous drugs such as testosterone- Novel spring mechanism - up to a 1 ml capacity - highly compact device.
This combination drug/device product is in pre-clinical development, expected to go to market in 2015/2016.
In early October of this year, Antares engaged in a secondary offering at $4.00 to fund development of the above mentioned products - the company raised $47M in total. Antares now has an abundant reserve of over $70M in cash, so I would expect its Q4 2012 earnings call to show a profit from its royalty based revenue it primarily receives from Teva Pharma ( TEVA ) for Tev-Tropin, Tjet, and reusable hGH - in which Antares receives strong margins on device sales, and mid-to-high single digit % royalty on overall product sales. Antares has two single shot disposable auto injectors. One is Epinephrine (N.A. rights) and the other is an undisclosed product (U.S rights) in which it receives margins on device sales along with mid to high single digit % royalty on overall product sales.
(click to enlarge)
The chart above indicates to me that Antares has seen a double bottom bounce. The MACD and RSI are trending upwards, and with a little bit more volume, Antares could be seeing the $4 dollar range soon.
In my opinion, investors and traders should look at both short and longer term fundamentals for Antares, especially the longer term ones for the company.
My short term (1 day to 3 months) target opinion for Antares is $4 before the end of the year, and near $5 by February of next year. My long term target opinion is $12 a share - 3 years.
Disclosure: I am long BGMD . I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Disclaimer: This article is intended for informational and entertainment use only, and should not be construed as professional investment advice. They are my opinions only. Trading stocks is risky - always be sure to know and understand your risk tolerance. You can incur substantial financial losses in any trade or investment. Always do your own due diligence before buying and selling any stock, and/or consult with a licensed financial adviser.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has strategic collaborations with Abbott Laboratories (NYSE: ABT) to develop and commercialize galectin-3 assay kits and related control kits and calibrators. In May 2012, a 510(k) was submitted by the company to extend the labeling indication for the BGM Galectin-3 test to include individuals in the general adult population who are at risk for developing heart failure based on elevated levels of galectin-3. Arena had some interesting things to say about its long term goals in its presentation at the Lazard Capital conference: [quote] [We have a] significant market opportunity, [for Belviq] worldwide it's 0.5 billion individuals that are classified as obese. | It has strategic collaborations with Abbott Laboratories (NYSE: ABT) to develop and commercialize galectin-3 assay kits and related control kits and calibrators. BG Medicine (NASDAQ: BGMD) BG Medicine engages in the discovery, development, and commercialization of novel cardiovascular diagnostics to address unmet medical needs. It is also developing CardioSCORE, a cardiovascular diagnostic test designed to identify individuals at high risk for near term cardiovascular events, such as heart attack and stroke; and galectin-3 test for a second indication to identify individuals at risk for developing heart failure, such as patients who have suffered a heart attack, as well as patients suffering from hypertension or diabetes. | It has strategic collaborations with Abbott Laboratories (NYSE: ABT) to develop and commercialize galectin-3 assay kits and related control kits and calibrators. It is also developing CardioSCORE, a cardiovascular diagnostic test designed to identify individuals at high risk for near term cardiovascular events, such as heart attack and stroke; and galectin-3 test for a second indication to identify individuals at risk for developing heart failure, such as patients who have suffered a heart attack, as well as patients suffering from hypertension or diabetes. It offers Vision/Tjet reusable needle-free injectors that deliver precise medication doses through high-speed pressurized liquid penetration of the skin without a needle; The Vibex disposable pressure assisted auto injector devices that are used for the controlled pressure delivery of drugs into the body utilizing a spring power source; disposable pen injection systems, which are needle-based devices designed to deliver multiple drugs by injection through needles from multi-dose drug cartridges. | It has strategic collaborations with Abbott Laboratories (NYSE: ABT) to develop and commercialize galectin-3 assay kits and related control kits and calibrators. Included in this business update, the company announced a new commercial strategy to speed the adoption of its cardiovascular diagnostic tests - the BGM Galectin-3 test and the CardioSCORE test. Although still speculative, Arena might just be a great long term investment if it manages its money correctly. |
34360.0 | 2012-11-20 00:00:00 UTC | Incyte Progresses on RA Candidate - Analyst Blog | ABT | https://www.nasdaq.com/articles/incyte-progresses-on-ra-candidate-analyst-blog-2012-11-20 | nan | nan | Incyte Corporation ( INCY ) and Eli Lilly and Company ( LLY ) recently announced positive results from an ongoing 24-week phase IIb study of baricitinib. Baricitinib is an oral janus kinase (JAK) inhibitor being developed for the treatment of patients suffering from moderate-to-severe rheumatoid arthritis (RA), who had an inadequate response to methotrexate treatment.
The 12-week portion of the study revealed that patients on baricitinib showed significant differences in ACR20, ACR50 and ACR70 responses when compared to patients on placebo. The 12- to 24-week portion of the study revealed that patients who continued receiving 2 mg, 4 mg or 8 mg doses of the candidate sustained or showed improvement in ACR20, ACR50 and ACR70 responses.
Incyte also used Magnetic Resonance Imaging (MRI) technology in a sub-study (n=154) to observe joint erosion and other markers of structural changes in and around the joint on baricitinib treatment.
Results from this 12-week sub-study showed a statistically significant improvement in Total Inflammation Score as well as in the Total Joint Damage Score for both 4 mg and 8 mg doses of baricitinib compared to placebo. The same effects were maintained at 24 weeks also.
We note that Incyte did not report any opportunistic infections or deaths during the study. Incyte also stated that baricitinib will now be studied in a phase III study for RA treatment.
Incyte recently received a milestone payment of $50 million from its partner Eli Lilly for advancing baricitinib in a phase III study for the treatment of RA. Incyte has an exclusive worldwide license, development and commercialization agreement with Eli Lilly for baricitinib.
The companies have planned four phase III studies. These studies will be evaluating safety and efficacy of baricitinib (2mg and 4 mg dosage) in patients suffering from active RA who are methotrexate-naive, biologic-naive or biologic-experienced. After completing any of these studies patients will be eligible for a fifth study.
Our Take
Although competition is tough in the RA market, with players like Johnson & Johnson ( JNJ ) and Abbott Laboratories ( ABT ), we believe baricitinib, once launched, will be able to corner a market share of its own as the patient base is quite large. The candidate is also being evaluated in patients suffering from moderate-to-severe psoriasis (phase II).
Currently, we have a Neutral stance on Incyte in the long run. The stock carries a Zacks #3 Rank (Hold rating) in the short run.
ABBOTT LABS (ABT): Free Stock Analysis Report
INCYTE CORP (INCY): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our Take Although competition is tough in the RA market, with players like Johnson & Johnson ( JNJ ) and Abbott Laboratories ( ABT ), we believe baricitinib, once launched, will be able to corner a market share of its own as the patient base is quite large. ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. Incyte Corporation ( INCY ) and Eli Lilly and Company ( LLY ) recently announced positive results from an ongoing 24-week phase IIb study of baricitinib. | ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. Our Take Although competition is tough in the RA market, with players like Johnson & Johnson ( JNJ ) and Abbott Laboratories ( ABT ), we believe baricitinib, once launched, will be able to corner a market share of its own as the patient base is quite large. Incyte Corporation ( INCY ) and Eli Lilly and Company ( LLY ) recently announced positive results from an ongoing 24-week phase IIb study of baricitinib. | ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. Our Take Although competition is tough in the RA market, with players like Johnson & Johnson ( JNJ ) and Abbott Laboratories ( ABT ), we believe baricitinib, once launched, will be able to corner a market share of its own as the patient base is quite large. Incyte also stated that baricitinib will now be studied in a phase III study for RA treatment. | Our Take Although competition is tough in the RA market, with players like Johnson & Johnson ( JNJ ) and Abbott Laboratories ( ABT ), we believe baricitinib, once launched, will be able to corner a market share of its own as the patient base is quite large. ABBOTT LABS (ABT): Free Stock Analysis Report INCYTE CORP (INCY): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report To read this article on Zacks.com click here. The 12- to 24-week portion of the study revealed that patients who continued receiving 2 mg, 4 mg or 8 mg doses of the candidate sustained or showed improvement in ACR20, ACR50 and ACR70 responses. |
34361.0 | 2012-11-19 00:00:00 UTC | AUXL Downgraded to Underperform - Analyst Blog | ABT | https://www.nasdaq.com/articles/auxl-downgraded-to-underperform-analyst-blog-2012-11-19 | nan | nan | We recently downgraded Auxilium Pharmaceuticals, Inc. ( AUXL ) to Underperform with a price target of $17.00. Auxilium Pharma's third quarter results were disappointing with the company reporting a loss of 21 cents per share, wider than the year-ago loss of 8 cents and the Zacks Consensus Estimate of a loss of 6 cents.
Lower-than-expected revenues and higher costs led to the disappointing results. Revenues, which increased 6.4% to $71.0 million, were well below the Zacks Consensus Estimate of $80 million.
In addition to reporting weak results, the company cut its sales guidance for Testim and US sales guidance for Xiaflex. The company also announced the termination of its Pfizer ( PFE ) agreement for Xiaflex, effective April 24, 2013.
Performance of lead product, Testim, was weak in the third quarter. Auxilium Pharma attributed the weakness in Testim's performance to challenges in the managed-care environment and operational disruption resulting from the company's co-promotion agreement with GlaxoSmithKline ( GSK ). Glaxo started co-promoting Testim in the US from mid-July.
The testosterone replacement therapy (TRT) gel market is growing at a slower rate and this will affect sales going forward. Moreover, Testim faces stiff competition from AndroGel, a 1% testosterone gel sold by Abbott ( ABT ) worldwide. As of December 31, 2011, the AndroGel franchise (1% and 1.62%) accounted for 73.2% of the gel prescriptions. Testim will have to continue to take market share from the AndroGel franchise in the coming quarters to continue its growth.
Going forward, we see Testim sales slowing given the entry of additional competitors like Endo Pharmaceutical's ( ENDP ) Fortesta and Eli Lilly / Acrux' ( LLY / ARUXF ) Axiron. Meanwhile, the testosterone gel market will become even more competitive when generic versions of AndroGel 1% enter the market.
The availability of a cheaper generic testosterone gel product could impact Testim's market share as well as its formulary status. Auxilium Pharma cut its 2012 Testim sales guidance by $10 million to $235 - $245 million. We note that Testim is also facing a patent challenge.
With Testim facing a patent challenge, Auxilium Pharma's future is heavily dependent on Xiaflex. However, Xiaflex' sales ramp has been disappointing so far. Auxilium Pharma lowered its 2012 Xiaflex US sales guidance to $52 - $60 million (old guidance: $55 - $65 million). The unsuccessful commercialization of Xiaflex and inability to gain approval for additional indications would weigh heavily on the stock.
Although Auxilium Pharma expects Testim sales to improve, we expect some weakness in the shares until Testim shows signs of sustainable improvement.
ABBOTT LABS (ABT): Free Stock Analysis Report
(ARUXF): ETF Research Reports
AUXILIUM PHARMA (AUXL): Free Stock Analysis Report
ENDO PHARMACEUT (ENDP): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Moreover, Testim faces stiff competition from AndroGel, a 1% testosterone gel sold by Abbott ( ABT ) worldwide. ABBOTT LABS (ABT): Free Stock Analysis Report (ARUXF): ETF Research Reports AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Auxilium Pharma attributed the weakness in Testim's performance to challenges in the managed-care environment and operational disruption resulting from the company's co-promotion agreement with GlaxoSmithKline ( GSK ). | ABBOTT LABS (ABT): Free Stock Analysis Report (ARUXF): ETF Research Reports AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Testim faces stiff competition from AndroGel, a 1% testosterone gel sold by Abbott ( ABT ) worldwide. In addition to reporting weak results, the company cut its sales guidance for Testim and US sales guidance for Xiaflex. | ABBOTT LABS (ABT): Free Stock Analysis Report (ARUXF): ETF Research Reports AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Testim faces stiff competition from AndroGel, a 1% testosterone gel sold by Abbott ( ABT ) worldwide. In addition to reporting weak results, the company cut its sales guidance for Testim and US sales guidance for Xiaflex. | Moreover, Testim faces stiff competition from AndroGel, a 1% testosterone gel sold by Abbott ( ABT ) worldwide. ABBOTT LABS (ABT): Free Stock Analysis Report (ARUXF): ETF Research Reports AUXILIUM PHARMA (AUXL): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. In addition to reporting weak results, the company cut its sales guidance for Testim and US sales guidance for Xiaflex. |
34362.0 | 2012-11-19 00:00:00 UTC | Data Presented by UCB on Cimzia - Analyst Blog | ABT | https://www.nasdaq.com/articles/data-presented-by-ucb-on-cimzia-analyst-blog-2012-11-19 | nan | nan | UCB ( UCBJF ) recently presented positive data on Cimzia (certolizumab pegol) from a late-stage trial (RAPID-PsA), conducted in patients suffering from psoriatic arthritis. The data was presented at the 2012 annual scientific meeting of the American College of Rheumatology (ACR).
In the RAPID-PsA phase III study, 409 psoriatic arthritis patients were enrolled. It was observed that after 12 weeks of treatment with Cimzia, adult patients with or without prior anti-TNF (tumor necrosis factor) exposure experienced a statistically significant improvement in the signs and symptoms of psoriatic arthritis as compared to placebo.
On the basis of these results, UCB plans to make regulatory filings by the end of 2012 for the approval of Cimzia as a treatment for psoriatic arthritis.
Currently used products for psoriatic arthritis include Abbott's ( ABT ) Humira and Johnson & Johnson's ( JNJ ) Simponi.
We note that Cimzia is currently approved in the US for the treatment of moderate-to-severe rheumatoid arthritis patients above 18 years and for reducing the signs and symptoms of Crohn's disease (CD) and maintaining clinical response in moderate-to-severe CD patients above 18 years, who have failed prior therapy.
The drug is also approved in the EU in combination with methotrexate for the treatment of moderate-to-severe active rheumatoid arthritis (RA) in adults who have responded inadequately to disease-modifying antirheumatic drugs (DMARDs), including methotrexate.
Our Take
Cimzia sales went up 41% from the year-ago period to €334 million during the first nine months of 2012.
UCB anticipates 2012 results to be driven by the continued sales growth of Cimzia, Vimpat and Neupro. We expect that Cimzia's growth will be further accelerated, if approved for psoriatic arthritis.
We currently have a Zacks #3 Rank (short-term Hold rating) on the stock.
ABBOTT LABS (ABT): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
(UCBJF): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Currently used products for psoriatic arthritis include Abbott's ( ABT ) Humira and Johnson & Johnson's ( JNJ ) Simponi. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report (UCBJF): ETF Research Reports To read this article on Zacks.com click here. UCB ( UCBJF ) recently presented positive data on Cimzia (certolizumab pegol) from a late-stage trial (RAPID-PsA), conducted in patients suffering from psoriatic arthritis. | Currently used products for psoriatic arthritis include Abbott's ( ABT ) Humira and Johnson & Johnson's ( JNJ ) Simponi. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report (UCBJF): ETF Research Reports 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. | Currently used products for psoriatic arthritis include Abbott's ( ABT ) Humira and Johnson & Johnson's ( JNJ ) Simponi. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report (UCBJF): ETF Research Reports To read this article on Zacks.com click here. UCB ( UCBJF ) recently presented positive data on Cimzia (certolizumab pegol) from a late-stage trial (RAPID-PsA), conducted in patients suffering from psoriatic arthritis. | Currently used products for psoriatic arthritis include Abbott's ( ABT ) Humira and Johnson & Johnson's ( JNJ ) Simponi. ABBOTT LABS (ABT): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report (UCBJF): ETF Research Reports To read this article on Zacks.com click here. UCB ( UCBJF ) recently presented positive data on Cimzia (certolizumab pegol) from a late-stage trial (RAPID-PsA), conducted in patients suffering from psoriatic arthritis. |
34363.0 | 2012-11-16 00:00:00 UTC | Oracle Set to Acquire Instantis - Analyst Blog | ABT | https://www.nasdaq.com/articles/oracle-set-to-acquire-instantis-analyst-blog-2012-11-16 | nan | nan | Oracle Corp. ( ORCL) recently announced that it is set to acquire privately-held project portfolio management ("PPM") software developer Instantis. However, terms of the acquisition were not disclosed. The acquisition is expected to close by the end of this year.
Santa Clara, California-based Instantis develops PPM software that helps IT departments, and product development and business process teams to track the progress of their projects. Instantis software can run both on-premise and on a cloud-based mode.
Lately, Oracle has been beefing up its presence in the rapidly growing PPM software market. In July this year, Oracle acquired Skire another PPM technology vendor. Oracle expects to integrate Instantis and Skire with its fusion application portfolio that includes its 2008 acquisition Primavera.
Instantis software follows a top-down approach, which helps customers to gain complete visibility and control of their projects. The simplicity of Instantis has attracted many big names and the company has a significant clientele, which includes Cardinal Healthcare, Abbott Laboratories (ABT) , Credit Suisse Group AG, and Xerox Corp (XRX) .
We believe that Instantis's strong customer base and steady revenue stream will boost Oracle's market share and top-line growth going forward. Moreover, the acquisition of Instantis will help Oracle to increase its penetration into the portfolio management market, in which SAP AG (SAP) has significant presence.
Oracle remains very active on the acquisition front and is targeting companies that can be integrated within its existing or new product lines. Oracle also acquires organizations with competing technologies with the intention of eliminating rival products.
Over the last couple of years, Oracle has acquired a number of companies including small start-ups as well as big players from different fields (clinical trial to Data analytics) such as SelectMinds and Taleo (human resource), RightNow (customer relationship management), Endeca (unstructured data management, web commerce and business intelligence), Vitrue (social marketing), Xsigo (networking) to name a few.
We expect Oracle to continue to pursue strategic acquisitions of small technology start-ups that are more likely to be easy to integrate along its product lines, thereby helping it to expand customer base over the long term. The strategic acquisitions are also expected to provide Oracle a significant competitive edge over its peers going forward.
However, Oracle faces significant integration risks due to the rapid pace of acquisitions within a short span of time, in our view. Moreover, stiff competition in most of the markets from SAP, International Business Machines Corp. (IBM) and Salesforce.com (CRM) is expected to hurt its profitability going forward.
We remain Neutral on a long term basis (6-12 months). Currently, Oracle has a Zacks #3 Rank, which implies a Hold rating on a short-term basis.
ABBOTT LABS (ABT): Free Stock Analysis Report
SALESFORCE.COM (CRM): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
SAP AG ADR (SAP): Free Stock Analysis Report
XEROX CORP (XRX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The simplicity of Instantis has attracted many big names and the company has a significant clientele, which includes Cardinal Healthcare, Abbott Laboratories (ABT) , Credit Suisse Group AG, and Xerox Corp (XRX) . ABBOTT LABS (ABT): Free Stock Analysis Report SALESFORCE.COM (CRM): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report To read this article on Zacks.com click here. Over the last couple of years, Oracle has acquired a number of companies including small start-ups as well as big players from different fields (clinical trial to Data analytics) such as SelectMinds and Taleo (human resource), RightNow (customer relationship management), Endeca (unstructured data management, web commerce and business intelligence), Vitrue (social marketing), Xsigo (networking) to name a few. | ABBOTT LABS (ABT): Free Stock Analysis Report SALESFORCE.COM (CRM): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report To read this article on Zacks.com click here. The simplicity of Instantis has attracted many big names and the company has a significant clientele, which includes Cardinal Healthcare, Abbott Laboratories (ABT) , Credit Suisse Group AG, and Xerox Corp (XRX) . Oracle Corp. ( ORCL) recently announced that it is set to acquire privately-held project portfolio management ("PPM") software developer Instantis. | ABBOTT LABS (ABT): Free Stock Analysis Report SALESFORCE.COM (CRM): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report To read this article on Zacks.com click here. The simplicity of Instantis has attracted many big names and the company has a significant clientele, which includes Cardinal Healthcare, Abbott Laboratories (ABT) , Credit Suisse Group AG, and Xerox Corp (XRX) . Moreover, the acquisition of Instantis will help Oracle to increase its penetration into the portfolio management market, in which SAP AG (SAP) has significant presence. | The simplicity of Instantis has attracted many big names and the company has a significant clientele, which includes Cardinal Healthcare, Abbott Laboratories (ABT) , Credit Suisse Group AG, and Xerox Corp (XRX) . ABBOTT LABS (ABT): Free Stock Analysis Report SALESFORCE.COM (CRM): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report SAP AG ADR (SAP): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report To read this article on Zacks.com click here. Oracle Corp. ( ORCL) recently announced that it is set to acquire privately-held project portfolio management ("PPM") software developer Instantis. |
34364.0 | 2012-11-16 00:00:00 UTC | Gilead Presents Encouraging Data - Analyst Blog | ABT | https://www.nasdaq.com/articles/gilead-presents-encouraging-data-analyst-blog-2012-11-16 | nan | nan | Gilead Sciences ( GILD ) recently presented encouraging long-term data on its HIV therapy Stribild from two ongoing phase III studies (102 and 103) as a first-line therapy. Data from study 102 revealed that Stribild was non-inferior to Gilead's Atripla after two years of treatment.
Data from study 103 demonstrated the non inferiority of Stribild to Norvir (ritonavir)-boosted Reyataz plus Truvada after a similar time period. While Norvir is marketed by Abbott Labs ( ABT ), Reyataz is marketed by Bristol-Myers Squibb ( BMY ). Gilead presented the encouraging results at the 11th international congress on drug therapy regarding HIV infection in the UK.
We note that Stribild, a combination pill, is a new addition to Gilead's formidable HIV franchise. The drug was approved by the US Food and Drug Administration (FDA) in August 2012 as a first-line therapy for treating adults suffering from HIV. The approval was based on encouraging 48 weeks data from studies 102 and 103. Stribild is under review for the same indication in the EU.
Neutral on Gilead
We currently have a Neutral recommendation on Gilead. The stock carries a Zacks #3 Rank (Hold rating) in the short run. We remain optimistic on the growth prospects of Gilead's HIV drugs, Truvada and Atripla. We are also encouraged by the sales ramp of Complera/Eviplera, which together with Stribild, has further fortified the HIV franchise and helped to mitigate the impact of upcoming patent expirations.
Gilead is looking to combat the threat of genericization by inking deals, making acquisitions and introducing new products. To further strengthen its hepatitis C virus portfolio, Gilead purchased Pharmasset earlier in the year, for approximately $11.1 billion.
ABBOTT LABS (ABT): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Norvir is marketed by Abbott Labs ( ABT ), Reyataz is marketed by Bristol-Myers Squibb ( BMY ). ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Data from study 103 demonstrated the non inferiority of Stribild to Norvir (ritonavir)-boosted Reyataz plus Truvada after a similar time period. | While Norvir is marketed by Abbott Labs ( ABT ), Reyataz is marketed by Bristol-Myers Squibb ( BMY ). ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Gilead Sciences ( GILD ) recently presented encouraging long-term data on its HIV therapy Stribild from two ongoing phase III studies (102 and 103) as a first-line therapy. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. While Norvir is marketed by Abbott Labs ( ABT ), Reyataz is marketed by Bristol-Myers Squibb ( BMY ). Gilead Sciences ( GILD ) recently presented encouraging long-term data on its HIV therapy Stribild from two ongoing phase III studies (102 and 103) as a first-line therapy. | ABBOTT LABS (ABT): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. While Norvir is marketed by Abbott Labs ( ABT ), Reyataz is marketed by Bristol-Myers Squibb ( BMY ). Data from study 102 revealed that Stribild was non-inferior to Gilead's Atripla after two years of treatment. |
34365.0 | 2012-11-15 00:00:00 UTC | Still Neutral on DexCom - Analyst Blog | ABT | https://www.nasdaq.com/articles/still-neutral-on-dexcom-analyst-blog-2012-11-15 | nan | nan | Following the third quarter earnings release, we are maintaining our long-term 'Neutral' recommendation on DexCom ( DXCM ), a provider of continuous glucose monitoring systems, with a target price of $13.00.
Even though the company's international expansion and pipeline development remains on track, it remains a loss-making entity which operates in a highly competitive landscape. DexCom missed the bottom-line consensus for the fifth consecutive time in the third quarter of 2012. Its loss per share of 25 cents was higher than the Zacks Consensus Estimate of a loss of 22 cents per share as well as the year-ago loss of 20 cents a share.
During the conference call, DexCom issued a ballpark estimate of $89 million for full year 2012 revenues compared with the current Zacks Consensus Estimate of $95 million for the 2012 revenues. The company also asserted that it will continue to develop its GEN5 system. The joint development of Edwards Lifesciences ' ( EW ) next-generation in-hospital glucose monitoring system is almost complete and the company expects CE Mark approval in Europe before the end of 2012.
Overseas territories contributed 10% to the company's product revenues in the most recent quarter. We expect international revenues to strengthen as DexCom ventures into new territories. The company recently gained approval in Australia, while it anticipates approval in Canada and India. DexCom also plans to gain a foothold in other Asian countries like China and Japan. The comparison of the exponential rise of diabetes in developing countries to the fraction of the population using continuous glucose monitors implies that the market for DexCom's products remains largely underpenetrated in these geographies.
Last month, the U.S. Food and Drug Administration (FDA) cleared DexCom's new continuous glucose monitoring system, the DexCom G4 Platinum. The company received the CE Mark for its G4 system in June 2012 and already markets the product in the European Union as well as certain Latin American and Asian nations where the CE Mark is recognized. The commercialization of G4 in the U.S. could just be the catalyst that the company needs to gain share.
On the flip side, DexCom faces aggressive competition from large players with deeper pockets. The company competes with Roche Diabetes Care, a division of Roche ( RHHBY ) and LifeScan under Johnson & Johnson ( JNJ ) for its Seven Plus offering. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems.
Moreover, reluctance on the part of physicians and patients to adopt DexCom's products may make it challenging for the company to expand share. This is mainly because the company's glucose monitoring device is more invasive than other self-monitored glucose testing systems. Additionally, manufacturing constraints might hamper the supply continuum of the company.
We still believe that DexCom is poised to gain a major share of the glucose monitoring market, driven by sustained product development initiatives, collaborations and increased need for continuous glucose monitoring. The stock carries a short-term Zacks #3 Rank (Hold).
ABBOTT LABS (ABT): Free Stock Analysis Report
DEXCOM INC (DXCM): Free Stock Analysis Report
EDWARDS LIFESCI (EW): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
(RHHBY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Following the third quarter earnings release, we are maintaining our long-term 'Neutral' recommendation on DexCom ( DXCM ), a provider of continuous glucose monitoring systems, with a target price of $13.00. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. The comparison of the exponential rise of diabetes in developing countries to the fraction of the population using continuous glucose monitors implies that the market for DexCom's products remains largely underpenetrated in these geographies. | ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. Last month, the U.S. Food and Drug Administration (FDA) cleared DexCom's new continuous glucose monitoring system, the DexCom G4 Platinum. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Overseas territories contributed 10% to the company's product revenues in the most recent quarter. |
34366.0 | 2012-11-13 00:00:00 UTC | Stock Market News for November 13, 2012 - Market News | ABT | https://www.nasdaq.com/articles/stock-market-news-for-november-13-2012-market-news-2012-11-13 | nan | nan | Apprehension about this week's "fiscal cliff" discussion between top U.S. leaders and President Barack Obama led to benchmarks ending flat. Trading volumes were light owing to the Veteran's day holiday. Meanwhile, China's export growth jumped to a five-month high. The healthcare sector was the major gainer, while utilities remained the biggest loser among the S&P 500 industry groups.
The Dow Jones Industrial Average (DJI) ended flat, dropping merely 0.31 point to close the day at 12,815.08. The Standard & Poor 500 (S&P 500) was up 0.01% and finished yesterday's trading session at 1,380.00. The tech-laden Nasdaq Composite Index slipped 0.02% to end at 2,904.25. The fear-gauge CBOE Volatility Index (VIX) dropped 1.9% to settle at 16.68. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 4.62 billion shares, significantly lower than the daily average of 6.52 billion shares. Declining stocks outpaced the advancers on the NYSE; as for 51% stocks that fell, 45% stocks moved higher.
Benchmarks had ended sharply lower in the previous week and they failed to recover from those losses on the first trading session of this week. Last week, investors' sentiment was largely affected by the fiscal cliff dilemma and concerns over the Euro zone debt crisis. Trading volumes were low yesterday as the U.S. bond market was closed and many traders were absent from proceedings due to the holiday. Meanwhile, problems with the NYSE Euronext meant that trading activities in more than 200 stocks had to be postponed.
Investors now expectantly await Friday's meeting between top Republican and Democratic leaders, who will be discussing ways and means to avoid the impending fiscal cliff. President Barack Obama is scheduled to hold a discussion with labor and civic leaders on Tuesday and with business executives on Wednesday. According to a Whitehouse official, the leaders will discuss "the best ways to move our economy forward and find a balanced approach to reduce the deficit". Earlier, Barack Obama had said: "I'm not wedded to every detail of my plan. I'm open to compromise, I'm open to new ideas, I'm committed to solving our fiscal challenges, but I refuse to accept any approach that isn't balanced".
According to experts and the Congress Budget Office, the fiscal cliff of $600 billion in tax increases and the government spending needs to be successfully negotiated; otherwise it could result in another recession. If Congress doesn't take necessary steps about the impending fiscal cliff, then the resultant tax increases and the decrease in government spending will take effect from the beginning of next year. This will decrease the trade deficit, but will dent the pace of growth of the U.S. economy.
On the international front, China, the world's second largest economy, witnessed 11.6% increase in exports in October from the previous month's 9.9% jump. The rate of imports remained flat month on month at 2.4% in October. Meanwhile, Chen Deming, Chinese Minister of Commerce, said: "The trade situation will be relatively grim in the next few months and there will be many difficulties next year". He also said that due to weak global demand and increasing operating costs, Chinese exporters will face difficult conditions in the coming days.
The healthcare sector was the major gainer among S&P 500 industry groups and the Health Care SPDR (XLV) surged 0.5%. Stocks such as Abbott Laboratories (NYSE: ABT ), Sanofi SA (NYSE: SNY ), Watson Pharmaceuticals, Inc. (NYSE: WPI ), Mylan Inc. (NASDAQ: MYL ) and Endo Health Solutions Inc (NASDAQ: ENDP ) rose 0.1%, 0.3%, 0.2%, 0.6% and 3.0%, respectively.
The Utilities SPDR (XLU) lost 0.8% and remained the major loser among S&P 500 industry groups. Stocks such as Exelon Corporation (NYSE: EXC ), NextEra Energy, Inc. (NYSE: NEE ), Genon Energy Inc (NYSE: GEN ), Duke Energy Corp (NYSE: DUK ) and Xcel Energy Inc (NYSE: XEL ) tumbled 1.1%, 0.9%, 1.8%, 0.8% and 1.5%, respectively.
ABBOTT LABS (ABT): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis Report
ENDO PHARMACEUT (ENDP): Free Stock Analysis Report
EXELON CORP (EXC): Free Stock Analysis Report
GENON ENERGY (GEN): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
XCEL ENERGY INC (XEL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks such as Abbott Laboratories (NYSE: ABT ), Sanofi SA (NYSE: SNY ), Watson Pharmaceuticals, Inc. (NYSE: WPI ), Mylan Inc. (NASDAQ: MYL ) and Endo Health Solutions Inc (NASDAQ: ENDP ) rose 0.1%, 0.3%, 0.2%, 0.6% and 3.0%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GENON ENERGY (GEN): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors now expectantly await Friday's meeting between top Republican and Democratic leaders, who will be discussing ways and means to avoid the impending fiscal cliff. | Stocks such as Abbott Laboratories (NYSE: ABT ), Sanofi SA (NYSE: SNY ), Watson Pharmaceuticals, Inc. (NYSE: WPI ), Mylan Inc. (NASDAQ: MYL ) and Endo Health Solutions Inc (NASDAQ: ENDP ) rose 0.1%, 0.3%, 0.2%, 0.6% and 3.0%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GENON ENERGY (GEN): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as Exelon Corporation (NYSE: EXC ), NextEra Energy, Inc. (NYSE: NEE ), Genon Energy Inc (NYSE: GEN ), Duke Energy Corp (NYSE: DUK ) and Xcel Energy Inc (NYSE: XEL ) tumbled 1.1%, 0.9%, 1.8%, 0.8% and 1.5%, respectively. | ABBOTT LABS (ABT): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GENON ENERGY (GEN): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as Abbott Laboratories (NYSE: ABT ), Sanofi SA (NYSE: SNY ), Watson Pharmaceuticals, Inc. (NYSE: WPI ), Mylan Inc. (NASDAQ: MYL ) and Endo Health Solutions Inc (NASDAQ: ENDP ) rose 0.1%, 0.3%, 0.2%, 0.6% and 3.0%, respectively. Apprehension about this week's "fiscal cliff" discussion between top U.S. leaders and President Barack Obama led to benchmarks ending flat. | Stocks such as Abbott Laboratories (NYSE: ABT ), Sanofi SA (NYSE: SNY ), Watson Pharmaceuticals, Inc. (NYSE: WPI ), Mylan Inc. (NASDAQ: MYL ) and Endo Health Solutions Inc (NASDAQ: ENDP ) rose 0.1%, 0.3%, 0.2%, 0.6% and 3.0%, respectively. ABBOTT LABS (ABT): Free Stock Analysis Report DUKE ENERGY CP (DUK): Free Stock Analysis Report ENDO PHARMACEUT (ENDP): Free Stock Analysis Report EXELON CORP (EXC): Free Stock Analysis Report GENON ENERGY (GEN): Free Stock Analysis Report MYLAN INC (MYL): Free Stock Analysis Report NEXTERA ENERGY (NEE): Free Stock Analysis Report SANOFI-AVENTIS (SNY): Free Stock Analysis Report WATSON PHARMA (WPI): Free Stock Analysis Report XCEL ENERGY INC (XEL): Free Stock Analysis Report To read this article on Zacks.com click here. Apprehension about this week's "fiscal cliff" discussion between top U.S. leaders and President Barack Obama led to benchmarks ending flat. |
34367.0 | 2012-11-08 00:00:00 UTC | The Stock is Not the Company | ABT | https://www.nasdaq.com/articles/stock-not-company-2012-11-08 | nan | nan | Apples and Oranges, Stocks and Companies
Peak Perception = Market Top
Oasis Petroleum ( OAS )
Oasis Petroleum ( OAS )
---
Every day, we're told the market moved up because of this economic report, or down because of pessimism surrounding upcoming earnings, or sideways because investors were waiting on some upcoming news. We've seen that this week following the election results, with many believing the stock market will XYZABC because of XYZABC.
In other words, the media gives you the impression that the market (and, hence, individual stocks) are directly responding to specific news, such as earnings, economic data, politics or international affairs.
But that's totally wrong!
I don't mean to suggest that the market is a totally isolated animal; over the long run, the market tends to follow along the general path of the economy and earnings. But for periods of months-even years, both the market and individual stock trends can be affected by factors that are more powerful than earnings or the economy. For example, just look at this monthly chart of Abbott Laboratories ( ABT ), a conservative blue chip growth stock:
The bars represent the stock itself, while the generally smoothly rising line is the earnings line (depicting the company's 12-month earnings per share totals). As you can see, back in the late 1990s, ABT was trading around 50 per share, even as earnings totaled about $1.60. Now fast forward to mid-2011, and you see ABT was still hovering at 50 per share ... even though earnings by then were up to $4.50 per share! Of course, we've seen the same thing across the market for more than a decade-no net progress for stocks, even as earnings and dividends have kited higher, and interest rates have plunged (generally making stocks more attractive).
How can this be? Simple-the stock is not the company. It's a topic I've written about many times, but it's so easy to forget, especially nowadays when the market is so news-driven. For management and employees at many firms, things are better now than they were 10 or 12 years ago. But for shareholders, not much has changed.
So what does drive share prices? Investor perception-how investors (particularly big investors, like mutual funds and pension funds) view the company's future prospects. Simply put, when big investors sour on a firm's potential ... when they feel the best of the firm's growth is in the past ... they usually sell. And when they sell, the stock goes down! (Note, too, that funds don't have to dump all of their position to top a stock; they might cut back from 7 million shares to 3 million shares, but that still represents a ton of selling.)
My point is that too many investors confuse the stock and the company. After a stock takes a hit, I often get questions like "Is the company still doing OK?" or "Why is the stock down so much if earnings met expectations? The answer lies in perception. While fundamentals like sales and earnings growth are important, they're not everything. But to really know when a stock is putting in a meaningful top, you have to measure investor perception; the fundamentals will always turn down months after a stock does.
---
The above discussion is relevant today because of what I'm seeing among many high-profile companies that have been huge winners during the past few years, names like Priceline.com, Chipotle Mexican Grill, Baidu and even Apple. Are these firms still doing well? Absolutely! All of them have reported third quarter results, and as a group saw their revenues grow 29% from the year before, while earnings were up 32%.
But each of their stocks has run into trouble; I think at least a couple have probably hit long-lasting tops, and even the others look ragged.
Baidu, which was probably our biggest winning stock of this post-2009 cycle, hit a price peak back in July 2011; since then, the stock is more than 30% off that high and its relative performance looks awful. There are fears of greater competition.
Chipotle Mexican Grill topped in April of this year and managed to collapse 40% in just a few months before its recent bounce.
It's the same story with Priceline, which fell 30% after topping in April. Shares have popped back somewhat on earnings but have a mountain of resistance to overcome in the 650-700 area.
And, finally, Apple just hit a peak in September but has slipped about 20% from its high (as of last week), falling below its long-term 200-day moving average for the first time since June 2011.
Now, it's always possible one or two of these names will come back in a new market uptrend (though I wouldn't touch any of them here unless you're a very nimble trader). But my point is that, even though these companies are still doing well, investor perception appears to have peaked ... and if that's the case, it's going to be hard to make all that much money in the stocks.
The bottom line is that when you click that buy button on your online brokerage page to buy, you're not buying the entire company, its operations and its products. No, you're buying a stock-something that is driven mostly by supply and demand, which in turn is driven by emotions, dreams and desires.
Just something to keep in mind as we all try to interpret this volatile market action.
---
Now back to some real analysis. The market remains in a correction-by our measures, the intermediate-term trend turned down a couple of weeks ago, and the rallies of late have been unimpressive, with most lacking any volume or real upside thrust.
There are plenty of parts of the market that don't look great ... growth stocks in particular. Many have been hit on earnings, and it seems like anything with a very high valuation is being taken down. Of course, some names are still holding up, but usually they are less well-known names that haven't been outstanding performers for the past few years-the stocks like Apple and Chipotle that went up 500% are under pressure, while those that have consolidated for a year or two are still consolidating.
However, I do see some encouraging signs. One is that this correction, which is now nearly seven weeks old, has been relatively mild pricewise. Sure, maybe that's changing post-election, but at this point, it's a small change of character from the past couple of years, when the major indexes have whipped up and down repeatedly.
Second is the fact that financial and emerging market stocks, two sectors that have led pretty much every downturn since 2010, are actually holding up well since the market's mid-September top; both have etched flat bases and have hit slightly higher lows as the major indexes have done the opposite.
And third is that, despite falling prices for actual commodities (the price of oil is down 14% since mid-September, copper is down 10% during that same time, and natural gas has dropped 10% during the past two weeks), commodity stocks have been reacting well to their quarterly reports, with some actually punching to new highs.
Thus, while I'm still looking for big growth ideas, I'm not being closed-minded about where I find them. In today's Wealth Advisory, I want to give you an idea from the energy patch, with what I believe is one of the most attractive fundamental stories in the rapidly-growing Bakken, specifically an area known as the Williston Basin, where much of the action is occurring.
Oasis Petroleum ( OAS ) has rights to drill in more than 300,000 acres in the Williston Basin, and it's doing just that with an extremely aggressive drilling program (operating nine to 10 rigs) that is driving production through the roof! Production for the just-reported third quarter totaled 24.2 million barrels of oil equivalent, up 109% from a year ago and up 19% from the prior quarter! And management sees more of that, with fourth-quarter production in the 26 to 28 million-barrel-range, up about 78% from a year ago.
But there's more to the story than that. We're very impressed that Oasis is rapidly building up its infrastructure and capabilities, both to maximize how much oil it can sell, and also to cut costs. For instance, the firm has established an Oasis Well Services division, which has its own fracking and hydraulic pumping crews, and does its own salt water disposal; these efforts have helped drive down well costs by 10% this year, with another 5% to 10% reduction coming in 2013.
Finally, Oasis has found a bunch more natural gas in its wells, and while gas is still a small part of its pie (8% to 10% of production), it's growing, so its gas infrastructure has ramped up as well. All told, revenues and cash flows have grown at triple-digit rates for many quarters; that could slow as the firm grows larger but I expect years of big production growth.
So that's the company-but what about the stock? Well, I think perception (there's that word again) of the firm's potential might be getting close to an inflection point. OAS came public in June 2010 and rallied nicely into March 2011 ... but it's been building a huge base ever since! Recently, though, the stock has tightened up in the 28 to 32 area; it's tempting to nibble here, but the real fireworks should begin if/when the stock breaks out above 36.
All the best,
Mike Cintolo
Editor of Cabot Market Letter
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, just look at this monthly chart of Abbott Laboratories ( ABT ), a conservative blue chip growth stock: The bars represent the stock itself, while the generally smoothly rising line is the earnings line (depicting the company's 12-month earnings per share totals). As you can see, back in the late 1990s, ABT was trading around 50 per share, even as earnings totaled about $1.60. Now fast forward to mid-2011, and you see ABT was still hovering at 50 per share ... even though earnings by then were up to $4.50 per share! | For example, just look at this monthly chart of Abbott Laboratories ( ABT ), a conservative blue chip growth stock: The bars represent the stock itself, while the generally smoothly rising line is the earnings line (depicting the company's 12-month earnings per share totals). As you can see, back in the late 1990s, ABT was trading around 50 per share, even as earnings totaled about $1.60. Now fast forward to mid-2011, and you see ABT was still hovering at 50 per share ... even though earnings by then were up to $4.50 per share! | For example, just look at this monthly chart of Abbott Laboratories ( ABT ), a conservative blue chip growth stock: The bars represent the stock itself, while the generally smoothly rising line is the earnings line (depicting the company's 12-month earnings per share totals). As you can see, back in the late 1990s, ABT was trading around 50 per share, even as earnings totaled about $1.60. Now fast forward to mid-2011, and you see ABT was still hovering at 50 per share ... even though earnings by then were up to $4.50 per share! | For example, just look at this monthly chart of Abbott Laboratories ( ABT ), a conservative blue chip growth stock: The bars represent the stock itself, while the generally smoothly rising line is the earnings line (depicting the company's 12-month earnings per share totals). As you can see, back in the late 1990s, ABT was trading around 50 per share, even as earnings totaled about $1.60. Now fast forward to mid-2011, and you see ABT was still hovering at 50 per share ... even though earnings by then were up to $4.50 per share! |
34368.0 | 2012-11-08 00:00:00 UTC | 5 Dividend Stocks Investors Mostly Dislike | ABT | https://www.nasdaq.com/articles/5-dividend-stocks-investors-mostly-dislike-2012-11-08 | nan | nan | Submitted by Dividend Yield as part of our contributors program .
Stocks With Recent Short Activities By Investment Professionals Researched By Dividend Yield - Stock, Capital, Investment . Investment gurus are asset or fund managers with big amounts of cash under management. They became popular by big returns and spectacular investment strategies. I talk about investors like George Soros and Warren Buffett. They all have one thing in common: The average return beats the market and if they invest, the market follows.
I made a screen of the biggest stock sells from 49 super investors over the recent six month and ranked them in my 100 best guru sells list. They all sold 499 stocks within the past half- year. The top stocks are Wal-Mart ( WMT ) and Microsoft ( MSFT ). Both companies were sold by twelve investment gurus.
Here are the five most sold companies:
Wal-Mart Stores ( WMT ) has a market capitalization of $247.94 billion. The company employs 2,200,000 people, generates revenue of $446.950 billion and has a net income of $16.454 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34.688 billion. The EBITDA margin is 7.76 percent (the operating margin is 5.94 percent and the net profit margin 3.68 percent).
Financial Analysis: The total debt represents 27.62 percent of the company's assets and the total debt in relation to the equity amounts to 74.92 percent. Due to the financial situation, a return on equity of 22.55 percent was realized. Twelve trailing months earnings per share reached a value of $4.75. Last fiscal year, the company paid $1.46 in the form of dividends to shareholders. The company was sold by 12 investment gurus.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.53, the P/S ratio is 0.55 and the P/B ratio is finally 3.51. The dividend yield amounts to 2.17 percent and the beta ratio has a value of 0.33.
Microsoft ( MSFT ) has a market capitalization of $251.32 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).
Financial Analysis: The total debt represents 9.85 percent of the company's assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. The company was sold by 12 investment gurus.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.13, the P/S ratio is 3.38 and the P/B ratio is finally 3.74. The dividend yield amounts to 3.10 percent and the beta ratio has a value of 0.98.
Wells Fargo ( WFC ) has a market capitalization of $181.54 billion. The company employs 264,400 people, generates revenue of $49.412 billion and has a net income of $16.211 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.310 billion. The EBITDA margin is 63.37 percent (the operating margin is 29.22 percent and the net profit margin 20.03 percent).
Financial Analysis: The total debt represents 13.28 percent of the company's assets and the total debt in relation to the equity amounts to 124.39 percent. Due to the financial situation, a return on equity of 12.19 percent was realized. Twelve trailing months earnings per share reached a value of $3.19. Last fiscal year, the company paid $0.48 in the form of dividends to shareholders. The company was sold by 11 investment gurus.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.77, the P/S ratio is 2.22 and the P/B ratio is finally 1.39. The dividend yield amounts to 2.59 percent and the beta ratio has a value of 1.34.
Zimmer Holdings ( ZMH ) has a market capitalization of $11.53 billion. The company employs 8,500 people, generates revenue of $4.451 billion and has a net income of $760.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.384 billion. The EBITDA margin is 31.09 percent (the operating margin is 23.00 percent and the net profit margin 17.07 percent).
Financial Analysis: The total debt represents 20.19 percent of the company's assets and the total debt in relation to the equity amounts to 31.22 percent. Due to the financial situation, a return on equity of 13.49 percent was realized. Twelve trailing months earnings per share reached a value of $4.28. Last fiscal year, the company paid $0.00 in the form of dividends to shareholders. The company was sold by 10 investment gurus.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.42, the P/S ratio is 2.58 and the P/B ratio is finally 2.12. The dividend yield amounts to 1.10 percent and the beta ratio has a value of 1.01.
Abbott Laboratories ( ABT ) has a market capitalization of $101.72 billion. The company employs 91,000 people, generates revenue of $38.851 billion and has a net income of $4.728 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.795 billion. The EBITDA margin is 22.64 percent (the operating margin is 14.81 percent and the net profit margin 12.17 percent).
Financial Analysis: The total debt represents 25.57 percent of the company's assets and the total debt in relation to the equity amounts to 63.07 percent. Due to the financial situation, a return on equity of 20.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, the company paid $1.92 in the form of dividends to shareholders. The company was sold by 9 investment gurus.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.76, the P/S ratio is 2.63 and the P/B ratio is finally 4.18. The dividend yield amounts to 3.14 percent and the beta ratio has a value of 0.32.
Take a closer look at the full table of stocks with biggest guru sells over the past six months. The average P/E ratio amounts to 17.80. Exactly 86 companies pay dividends of which two have a high yield. The average dividend yield amounts to 2.28 percent. P/S ratio is 2.22 and P/B ratio 3.18.
Also interesting, the best stocks bought by investment guru's. In this list, investment professionals bought 502 stocks within the past half-year. The top stocks are Oracle (ORCL) and Google (GOOG). Google was bought by fourteen investment professionals and Oracle by eleven. ORCL stocks are one of the hot plays for investors because they are in average long in the stock with 0.52 percent of their full portfolio.
Monthly Yield Fact Book | Yields Dow Jones | Yields NASDAQ 100 | Yields S&P 500 | Yields Dividend Champions | Yields Dividend Contenders | Yields Dividend Challengers
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Laboratories ( ABT ) has a market capitalization of $101.72 billion. The dividend yield amounts to 2.59 percent and the beta ratio has a value of 1.34. Zimmer Holdings ( ZMH ) has a market capitalization of $11.53 billion. The company employs 8,500 people, generates revenue of $4.451 billion and has a net income of $760.00 million. | Abbott Laboratories ( ABT ) has a market capitalization of $101.72 billion. Financial Analysis: The total debt represents 27.62 percent of the company's assets and the total debt in relation to the equity amounts to 74.92 percent. Financial Analysis: The total debt represents 9.85 percent of the company's assets and the total debt in relation to the equity amounts to 18.00 percent. | Abbott Laboratories ( ABT ) has a market capitalization of $101.72 billion. Financial Analysis: The total debt represents 27.62 percent of the company's assets and the total debt in relation to the equity amounts to 74.92 percent. Financial Analysis: The total debt represents 9.85 percent of the company's assets and the total debt in relation to the equity amounts to 18.00 percent. | Abbott Laboratories ( ABT ) has a market capitalization of $101.72 billion. The dividend yield amounts to 2.17 percent and the beta ratio has a value of 0.33. The dividend yield amounts to 3.10 percent and the beta ratio has a value of 0.98. |
34369.0 | 2012-11-07 00:00:00 UTC | Why Teva Pharmaceutical Is An Attractive Buying Opportunity | ABT | https://www.nasdaq.com/articles/why-teva-pharmaceutical-attractive-buying-opportunity-2012-11-07 | nan | nan | Submitted by Covestor as part of our contributors program
By Gabriel Grego
In our opinion, Teva Pharmaceutical Industries' ( TEVA ) stock price seems to be significantly below intrinsic value, no matter how conservatively this is calculated.
TEVA is an international pharmaceutical company headquartered in Petah Tikva, Israel. It specializes in generic and proprietary pharmaceuticals and active ingredients. It is the largest generic drug manufacturer and one of the 15 largest pharmaceutical companies worldwide, with sales of $18.3 billion, net income of $560 million and a total staff of 40,000 as of December 31, 2011.
Company's History
Teva's DNA is in the generics business, where it focused during the early part of its history scoring considerable success thanks to its cost-conscious corporate culture, focus on efficient operations, advanced technology and an understanding that gains in scale eventually translate into a cost advantage in this industry.
Teva expanded rapidly during the last 10 years through a combination of conservative management and smart acquisitions and achieved 27% earnings growth rate with return on invested capital around 20% as of the last reporting period.
Besides generics, Teva increasingly built up its presence in branded drugs. While not involved in discovery (the identification of effective new compounds), Teva has acquired existing compounds frequently taking advantage of its close relationship with top Israeli scientific institutions, such as the Weitzman Institute. It is from the latter facility that Teva acquired Copaxone, its top selling drug for the treatment of multiple sclerosis or MS.
During the last 3 years Teva's stock has been under heavy pressure due to a number of concerns. First, the regulatory and competitive environment for the generics business is changing. Second, Teva's Copaxone franchise is under threat by both generic manufacturers and alternative new branded drugs. Third, a set of operational difficulties involving two of Teva's plants has temporarily reduced sales on certain product lines.
Industry Overview
Macroeconomic outlook
Teva operates in an industry blessed by generally favorable long-term economic trends. The healthcare sector is expected to continue to benefit from the aging of the world population (older people need extra healthcare) and from increasing adoption rates of western medicine by emerging countries.
The generics segment in particular is also poised to benefit from tightening government healthcare budgets and from the advent of biologics. To counter that, however, tightening budgets may also create pricing pressure on branded drugs, especially in developed countries undergoing a long deleveraging process.
Competitive Scenario
Teva operates and competes in several industry segments. In generics, Teva is the market leader, according to [cite source], followed by Novartis-owned Sandoz (NOVN), Mylan ( MYL ) and others. Thanks to efficient manufacturing, logistics and scale, Teva is the low cost producer in its industry.
In my opinion, it is also in the best position within the industry to capture a significant share of the upcoming biologics market, given its technological leadership in generics and proven track record to come out with advanced generics quickly.
In branded drugs, Teva is the #11th world's largest pharmaceutical company. Teva focuses on CNS (central nervous system), respiratory, women's health and other lines of business. As customary in this industry, Teva's revenues are protected by patents and moderately captive customers (more on this later).
A Porter 5-Forces analysis confirms that Teva tends to retain most of the value generated in its lines of business as both customers and suppliers have limited bargaining power, substitute products are few and entry barriers are significant.
Lines of Business
Teva's sales are approximately divided 50/50 between generics (faster growing at 7.8% expected CAGR) and branded (higher margin). In 2012 sales are expected to reach $20.5 billion, according to consensus estimates posted on Teva's website.
Sales originate 50% in the US, roughly 30% in Europe and 20% in the rest of the world. There is an existing trend, consistent with the management's stated strategy, to increase the share of sales coming from emerging markets. About 4% of sales derive from the over-the-counter market, thanks to a recent partnership with Procter & Gamble ( PG ) (we expect this share to increase in the future).
Outstanding issues
Overview
Teva's share price has been recently hovering around $40, approximately the price it was trading at in 2005. Considering that between 2005 and 2012 net income tripled, it is clear that the stock is being looked at with extreme skepticism by the market. There are a number of reasons:
Management change
Mr. Shlomo Yannay, Teva's former CEO, has been replaced by Jeremy Levin. The latter is an extremely experienced executive, but has refused to confirm his predecessor's guidance pending a thorough strategic review that will be made public in mid December. The market is clearly uneasy for what it perceives as uncertainty and lack of clarity. We believe there will be no big surprises, but following our "investigative" activity we believe the new strategy will focus on the following points, which we think make sense:
Developing its existing pipeline
Divesting non-core businesses
Rationalizing and centralizing R&D, with focus on CNS
Avoiding larger M&A in favor of smaller transactions
Focusing on biologics and emerging markets
Changes in the generics industry
The generics industry is going through a period of transition. Volume growth continues to be attractive (high single digit), but a number of adverse changes means that past levels of profitability are unlikely to be maintained for the following reasons:
First-to-file (and its 180-day exclusivity period) are becoming rarer, mostly due to…
…authorized generics becoming more frequent
Competition ahead from low cost producers in emerging countries
European economic downturn
Therefore, we believe that generics sales will continue to grow, but there will be some pricing and margin pressure at some point. The trend could be reversed with the arrival of biosimilars, but the exact timing is uncertain.
Teva experienced some problems in its production facilities in California and Jerusalem, causing a temporary shutdown and consequent decrease in production and sales. According to Teva's management, those issues have been resolved.
Uncertainty about Teva's Copaxone franchise probably lies at the core of the stock's recent underperformance.
Teva's brand leader is currently the top selling drug for the treatment of multiple sclerosis, with 2011 sales of $3,570 billion or 20% of Teva's sales. This remunerative franchise is threatened by a number of elements:
Immediate generic threat due to patent challenges
Medium-term generic threat following patent expiration in 2015
Immediate threat from recently-launched competing branded drugs
Because Copaxone clearly represents such a significant share of Teva's revenue and profit, it is important to quantify the magnitude of these threats and its impact on the bottom line.
1) Immediate generic threat due to patent challenges:
This threat is no longer relevant. For several years now, Teva has engaged in a legal battle against Sandoz, which tried to circumvent Teva's patents challenging their validity. The issue has been definitively resolved in court with a clear victory for Teva: no generic version of Copaxone will be authorized before 2015.
2) Medium-term generic threat following patent expiration in 2015.
In 2015, Teva's Copaxone patent will indeed expire. However, it is not yet clear whether this would lead immediately to a generic version. It turns out that, due to the very specific chemical properties of this molecule, any generic version might well need separate clinical trials before receiving approval, thereby sharply increasing time-to-market and costs for competitors. This thesis, repeatedly reiterated by Teva's management, seems to have found some degree of confirmation by the FDA, according to some of their past statements.
3) Immediate threat from recently-launched competing branded drugs
Novartis and Biogen have both recently come up with their own competing drugs for MS, Gylenia and BG12 respectively, which, unlike Copaxone, are both oral drugs.
Gylenia has recently been put to market and clinical trials indicate it is an effective drug, however, there are serious concerns about its safety profile: Gylenia may impact the heart and in some cases be fatal. (For details, check out this report.)
4) BG-12 too seems to be very effective and appears to be initially safer than Gylenia. However, its FDA approval to market was recently delayed for a further three months.
Copaxone's main disadvantage vis-à-vis its new competitors is its need to be administered by daily injection. This creates discomfort for the patient and cosmetic concerns since it may cause a rash. Gylenia and BG-12 are both oral drugs. While this difference is indeed important, there are a number of factors that overwhelmingly suggest that any shift away from Copaxone, while unavoidable, is likely to be gradual and moderate, rather than massive and immediate.
Copaxone is currently being approved for a higher dose that can be administered three times a week, rather than daily.
Copaxone has a very long history of effectiveness and safety. Its competitors are new to market and only have clinical trials, which are not error-proof.
Copaxone is a so-called "first line drug". Its competitors, at least for the moment, are still "second line". That means that patients receive the drugs of the latter type if, and only if, they did not respond to any of the first line drugs. This has to do both with therapeutic history and costs for health insurance companies.
Most importantly, doctors are extremely reluctant to switch a stable patient to a new drug. This last point is paramount and has been hinted at, a few times by Teva's management. We have made our own inquiries with neurologists in several countries. It turns out that MS is not just a normal disease, but it is characterized by acute episodes that may strike at any time.
The patient typically recovers after each episode, but never to the original level of functioning. In other words, after each acute episode the patient slides one step further down the disability scale. It is therefore of paramount importance to keep patients from experiencing acute episodes. Copaxone reduces the number of acute episodes experienced by patients. Therefore, it would be a bad idea to switch a patient away from Copaxone into a new drug simply because the new drug is oral: if a previously-stable patient does not respond to the new drug, he might well experience a new acute episode and slide irreversibly into a lower level of functioning. Besides, the patient might have adverse reactions to the new drug. This line of reasoning has been strongly confirmed by each and every neurologist we have interviewed.
In light of the three arguments above, we believe that Copaxone is not likely to experience a sharp, sudden decline. It is instead expected to decline gracefully over the years. We expect the bulk of the decline to come from pricing pressures, rather than volume drop.
Copaxone economic impact
Like most other pharma companies, Teva does not disclose the EBITDA margin of its branded drugs (presumably for competitive reasons). Our industry interviews however, suggest that the operating margin on a multi-billion dollar blockbuster like Copaxone should be in the neighborhood of 70%. In addition to this, the company can probably save significant amounts of cash reducing marketing expenses as Copaxone sales begin to ease. Therefore, excluding any savings in marketing, the complete annihilation of Copaxone sales could be worth $2.45bn of Ebitda impact.
Valuation
EV/Ebitda Multiples
It may be difficult to assign a precise value to Teva shares at this moment of uncertainty. However, it would be easy to calculate a minimum floor for the company's present earnings power, giving the limited information we have.
We have normalized (excluding cyclicality and one-off items) Teva's EBITDA at approximately $7.5 billion. Main contributors to Ebitda are: generics sale, Copaxone, and branded drugs (excluding Copaxone). We believe that Ebitda from generics should not materially decrease in the foreseeable future. Any margin drop due to new competition and decreasing first-to-file should be more than compensated by gains in volume (industry growing at 8% CAGR) and, eventually, the introduction of biosimilars.
Likewise, branded drugs (excl. Copaxone) should not decrease either. There are no upcoming major patent expirations and, on the contrary, there is a significant pipeline of new drugs about to be launched.
Therefore, we can safely use TTM normalized Ebitda and subtract the expected loss from Copaxone. As we saw earlier, Copaxone Ebitda contribution is roughly $2.5 billion. If we assume that Teva loses approximately half of that contribution over time, normalized Ebitda decreases to 6,250.
Teva EV is $47.9 billion so its EV/Ebitda(norm) is equal to: 7.6X. Teva's close competitors' multiples range from 7.9X to 9.88X and average 8.8X, which suggest an undervaluation of 14%.
Present Earnings Power Calculation
Using our normalized Ebitda, subtracting taxes and maintenance CAPEX, we reach a net operating profit after tax (NOPAT) of $4.9. Capitalized at 8%, Teva's operations are worth approximately $61 billion. Subtracting net debt we reach $48.7 billion or $54 per share, suggesting a 26% margin of safety to current pricing, according to our analysis..
Of course, the above valuation excludes any growth. It is likely, however, that Teva will keep growing considerably in the long term, given its rapidly growing industry and its inherent competitive advantages (low cost production, patent protection). Earnings have been growing at 27% CAGR during the last 7 years. Future growth rates are likely to moderate given Teva's intention to avoid large acquisitions, Copaxone's slowdown, and generics uncertainty, but we would expect Teva's earnings to maintain at least a low double-digit pace for the next 5-10 years.
Risks
We are of the opinion that an investment in Teva at this price represents a moderate-risk opportunity. Teva operates in a stable and growing industry, which is relatively insulated by cyclical and macroeconomic factors. The balance sheet is reasonably strong and management seems experienced enough.
The biggest risk remains a larger-than-expected drop in Copaxone sales due to generic and/or branded competition. However, given our analysis above, we believe that risk to be remote. This is probably the market's greatest misunderstanding about this company. In addition to this, the generics industry is also undergoing changes and the full impact on Teva's income statement is hard to forecast with precision.
Finally, investors in Teva must be patient, as it might take time for the market to return valuing Teva at the multiples it deserves. At this point, there seems to be an adequate margin of safety to protect investors entering at this level from crippling losses.
Conclusion
While the overall market is still not overvalued in my opinion, there are very few deep value opportunities available with an acceptable risk: this might be one of them.
Disclosure: The author is long Teva stock.
The investments discussed are held in client accounts as of October 31 , 2012. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.
Certain of the information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. The manager believes that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Teva expanded rapidly during the last 10 years through a combination of conservative management and smart acquisitions and achieved 27% earnings growth rate with return on invested capital around 20% as of the last reporting period. A Porter 5-Forces analysis confirms that Teva tends to retain most of the value generated in its lines of business as both customers and suppliers have limited bargaining power, substitute products are few and entry barriers are significant. It turns out that, due to the very specific chemical properties of this molecule, any generic version might well need separate clinical trials before receiving approval, thereby sharply increasing time-to-market and costs for competitors. | This remunerative franchise is threatened by a number of elements: Immediate generic threat due to patent challenges Medium-term generic threat following patent expiration in 2015 Immediate threat from recently-launched competing branded drugs Because Copaxone clearly represents such a significant share of Teva's revenue and profit, it is important to quantify the magnitude of these threats and its impact on the bottom line. Main contributors to Ebitda are: generics sale, Copaxone, and branded drugs (excluding Copaxone). It is likely, however, that Teva will keep growing considerably in the long term, given its rapidly growing industry and its inherent competitive advantages (low cost production, patent protection). | It is from the latter facility that Teva acquired Copaxone, its top selling drug for the treatment of multiple sclerosis or MS. During the last 3 years Teva's stock has been under heavy pressure due to a number of concerns. This remunerative franchise is threatened by a number of elements: Immediate generic threat due to patent challenges Medium-term generic threat following patent expiration in 2015 Immediate threat from recently-launched competing branded drugs Because Copaxone clearly represents such a significant share of Teva's revenue and profit, it is important to quantify the magnitude of these threats and its impact on the bottom line. Future growth rates are likely to moderate given Teva's intention to avoid large acquisitions, Copaxone's slowdown, and generics uncertainty, but we would expect Teva's earnings to maintain at least a low double-digit pace for the next 5-10 years. | In branded drugs, Teva is the #11th world's largest pharmaceutical company. Teva's brand leader is currently the top selling drug for the treatment of multiple sclerosis, with 2011 sales of $3,570 billion or 20% of Teva's sales. Main contributors to Ebitda are: generics sale, Copaxone, and branded drugs (excluding Copaxone). |
34370.0 | 2012-11-05 00:00:00 UTC | DexCom Continues to Incur Loss - Analyst Blog | ABT | https://www.nasdaq.com/articles/dexcom-continues-to-incur-loss-analyst-blog-2012-11-05 | nan | nan | DexCom ( DXCM ), a player in the glucose monitoring market, reported third quarter 2012 loss per share of 25 cents, higher than the Zacks Consensus Estimate of a loss of 22 cents per share and the year-ago loss of 20 cents a share. Net loss for the quarter soared 30% year over year to $17.3 million.
Revenues
Revenues surged 26.5% year over year to $23.1 million in the third quarter, marginally beating the Zacks Consensus Estimate of $23 million.
Product sales increased almost 27% to $21.1 million while development grant and other revenues improved 25.6% to $2 million in the reported quarter.
Margins and Expenses
Gross margin dipped to 36.4% in the third quarter from 44.7% a year ago. Operating expenses increased 19.8% year over year to $25.7 million due to higher R&D spending and selling, general and administrative expenses, which grew 28.6% and 14.4%, respectively, in the reported quarter. Research and development expenditure shot up on account of incremental clinical trials costs while selling, general and administrative expenses increased due to additional marketing initiatives.
Balance Sheet
DexCom exited the third quarter with cash and short-term marketable securities of $53.4 million, down 45.1% on a year-over-year basis.
Our Take
DexCom is well placed in the industry that it serves. Given the burgeoning diabetes population in the U.S., its G4 Platinum presents considerable market opportunity. Successful commercialization of G4 in the U.S. could just be the catalyst that the company needs to gain share in the market it serves.
Increased awareness and acceptance of the need for continuous glucose monitoring and international expansion should help drive sales of DexCom's products. The company expects to introduce its products in India by year end. It also plans to expand its footprint in China and Japan next year.
In addition to upgrading and enhancing the functions of existing products, DexCom has also been active on the collaboration front, through which it is looking to leverage its technology with its collaborator's product offerings.
Competition in the glucose monitoring market is fierce. DexCom competes with Roche Diabetes Care, a division of Roche ( RHHBY ) and LifeScan under Johnson & Johnson ( JNJ ) for its Seven Plus offering. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems.
We believe that the company's move to buy healthcare IT company SweetSpot Diabetes Care, may allow it to compete more effectively through better data management systems.
Despite increasing revenues, DexCom remains a loss making entity and its efforts are made more difficult by a stringent regulatory environment. We currently have a long-term 'Neutral' recommendation on the stock, supported by a short-term Zacks #3 Rank (Hold).
ABBOTT LABS (ABT): Free Stock Analysis Report
DEXCOM INC (DXCM): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
(RHHBY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Research and development expenditure shot up on account of incremental clinical trials costs while selling, general and administrative expenses increased due to additional marketing initiatives. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. DexCom ( DXCM ), a player in the glucose monitoring market, reported third quarter 2012 loss per share of 25 cents, higher than the Zacks Consensus Estimate of a loss of 22 cents per share and the year-ago loss of 20 cents a share. | ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. DexCom ( DXCM ), a player in the glucose monitoring market, reported third quarter 2012 loss per share of 25 cents, higher than the Zacks Consensus Estimate of a loss of 22 cents per share and the year-ago loss of 20 cents a share. | Additionally, Medtronic ( MDT ) and Abbott ( ABT ) have gained FDA approval for continuous glucose monitoring systems. ABBOTT LABS (ABT): Free Stock Analysis Report DEXCOM INC (DXCM): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MEDTRONIC (MDT): Free Stock Analysis Report (RHHBY): ETF Research Reports To read this article on Zacks.com click here. Net loss for the quarter soared 30% year over year to $17.3 million. |
34371.0 | 2012-11-05 00:00:00 UTC | Donald Yacktman Buys 4 New Stocks in Q3 | ABT | https://www.nasdaq.com/articles/donald-yacktman-buys-4-new-stocks-q3-2012-11-05 | nan | nan | Donald Yacktman of Yacktman Asset Management reported his third quarter portfolio on Monday, which his largest new buys were WellPoint Inc. ( WLP ), CH Robinson Worldwide ( CHRW ), Liberty Ventures ( LVNTA ) and Abbott Laboratories ( ABR ).
Yacktman and his associates, who are long-term focused investors, produced a 10.8% return over the last 10 years, beating the 5.33% returned by the S&P 500 over the same period.
WellPoint ( WLP )
Yacktman purchased 3,518,467 shares of WellPoint for $59 per share on average in the third quarter. He owned the stock previously, but sold out in the fourth quarter of 2010 after the price appreciated.
In the first three quarters of the year, WellPoint's stock declined about 12.5%, with a significant decrease in the third quarter, when Yacktman purchased it.
WellPoint is the largest health benefits company in the U.S. and offers a wide variety of medical and specialty products. Its affiliate health plans have nearly 34 million members and its subsidiaries serve about 65 million clients.
The company's stock dipped in the third quarter when it reported its second quarter results on July 25. WellPoint's net income was $643.6 million, or $1.94 per share, down from $701.6 million, or $1.86 per share, in the second quarter of 2011. The results were negatively affected by lower enrollment due to competition, and slightly higher medical cost trends, which caused the company to reduce its full-year 2012 outlook.
Wellpoint has a market cap of $19.93 billion; its shares were traded at around $60.83 with a P/E ratio of 8.6 and P/S ratio of 0.3. The dividend yield of Wellpoint stocks is 1.9%. Wellpoint had an annual average earnings growth of 17.2% over the past 10 years. GuruFocus rated Wellpoint the business predictability rank of 4-star .
WLP data by GuruFocus.com
CH Robinson Worldwide ( CHRW )
Yacktman purchased 700,000 shares of CH Robinson Worldwide for $57 per share on average in the third quarter. CH Robinson stock declined 11% year to date.
CH Robinson is a global third-party logistics company founded in 1905. It works with 53,000 transportation providers around the world.
For its nine months ended Sept. 30, net income increased 4.7% year over year to 337.4 million from $322.4 billion. Revenue increased 3.4% to $1.3 billion from $1.2 billion.
CH Robinson Worldwide has a market cap of $9.59 billion; its shares were traded at around $61.95 with a P/E ratio of 21.6 and P/S ratio of 0.9. The dividend yield of CH Robinson Worldwide stocks is 2.2%. CH Robinson Worldwide had an annual average earnings growth of 19% over the past 10 years. GuruFocus rated CH Robinson Worldwide the business predictability rank of 4-star.
CHRW data by GuruFocus.com
Liberty Ventures ( LVNTA )
Yacktman purchased 206,321 shares of Liberty Ventures in the third quarter. Its stock has gained 28% year to date.
Liberty Ventures is made of Liberty Interactive Corp's interests in AOL, Expedia, Interval Leisure Group and other web sites, other non-consolidated assets, and green energy investments. Liberty Ventures has a market cap of $1.99 billion; its shares were traded at around $57.89.
In the company's second quarter earnings, released Aug. 8, it reported a 5% year-over-year increase in revenue to $2.37 billion from $2.25 billion, on strong results at its QVC and eCommerce companies. OIBDA increased 1% to $455 million on strong WVC results, offset by weaker results at its eCommerce companies.
During the quarter, the company received approval from China's government for a joint venture with China National Radio. It also repurchased $257 million of its stock. In total, is has repurchased approximately 24.6% of its shares since May 2006, and has approximately $429 million remaining under its present stock repurchase authorization.
Abbott Laboratories ( ABT )
Yacktman purchased 3,000 shares of his smallest new position, Abbott Laboratories, for $66 per share on average, which is a 0.0012% weighting of his portfolio. Abbott Laboratories' stock has increased 16% year to date.
Abbott Laboratories is a global, broad-based health care company devoted to discovering new medicines, new technologies and new ways to manage health.
Abbott's earnings for the first nine months of 2012 increased 57.9% year over year to $4.9 billion from $3.1 billion. Net sales improved 2%, to $29.1 billion from $28.5 billion. The company narrowed its earnings per share guidance for 2012 to $5.06 to $5.08 from $5.00 to $5.10, due to strong performance for the year and product launches that will contribute to growth.
Abbott will split into two health care companies on Jan. 1, 2013.
Abbott Laboratories has a market cap of $102.77 billion; its shares were traded at around $65.04 with a P/E ratio of 13.1 and P/S ratio of 2.6. The dividend yield of Abbott Laboratories stocks is 3.1%. Abbott Laboratories had an annual average earnings growth of 7.9% over the past 10 years. GuruFocus rated Abbott Laboratories the business predictability rank of 4.5-star.
ABT data by GuruFocus.com
See more of Donald Yacktman's portfolio updates here. Also check out his undervalued stocks, top growth companies and high yield stocks.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Laboratories ( ABT ) Yacktman purchased 3,000 shares of his smallest new position, Abbott Laboratories, for $66 per share on average, which is a 0.0012% weighting of his portfolio. ABT data by GuruFocus.com See more of Donald Yacktman's portfolio updates here. WellPoint is the largest health benefits company in the U.S. and offers a wide variety of medical and specialty products. | Abbott Laboratories ( ABT ) Yacktman purchased 3,000 shares of his smallest new position, Abbott Laboratories, for $66 per share on average, which is a 0.0012% weighting of his portfolio. ABT data by GuruFocus.com See more of Donald Yacktman's portfolio updates here. Donald Yacktman of Yacktman Asset Management reported his third quarter portfolio on Monday, which his largest new buys were WellPoint Inc. ( WLP ), CH Robinson Worldwide ( CHRW ), Liberty Ventures ( LVNTA ) and Abbott Laboratories ( ABR ). | Abbott Laboratories ( ABT ) Yacktman purchased 3,000 shares of his smallest new position, Abbott Laboratories, for $66 per share on average, which is a 0.0012% weighting of his portfolio. ABT data by GuruFocus.com See more of Donald Yacktman's portfolio updates here. Donald Yacktman of Yacktman Asset Management reported his third quarter portfolio on Monday, which his largest new buys were WellPoint Inc. ( WLP ), CH Robinson Worldwide ( CHRW ), Liberty Ventures ( LVNTA ) and Abbott Laboratories ( ABR ). | Abbott Laboratories ( ABT ) Yacktman purchased 3,000 shares of his smallest new position, Abbott Laboratories, for $66 per share on average, which is a 0.0012% weighting of his portfolio. ABT data by GuruFocus.com See more of Donald Yacktman's portfolio updates here. Donald Yacktman of Yacktman Asset Management reported his third quarter portfolio on Monday, which his largest new buys were WellPoint Inc. ( WLP ), CH Robinson Worldwide ( CHRW ), Liberty Ventures ( LVNTA ) and Abbott Laboratories ( ABR ). |
34372.0 | 2012-10-30 00:00:00 UTC | A Summary Of The 20 Safest Dividend Growth Picks | ABT | https://www.nasdaq.com/articles/summary-20-safest-dividend-growth-picks-2012-10-30 | nan | nan | Submitted by Dividend Yield as part of our contributors program .
Dividend Achievers With Low Beta Ratios Researched By " long-term-investments.blogspot.com ". Dividend growth is an investment strategy that works if you have enough time. At the market are 187 stocks with a consecutive dividend growth of more than five years (Dividend Achievers). I made a list of the 20 dividend growth stocks with the lowest beta ratio, in total a value of less than 0.4. Especially in times of crises like the European debt crisis and the slowing China GDP growth, a safe haven strategy should be a wise decision. The low beta ratio shows that the stock is only low correlated with the market. If he goes 10 percent down, the 0.4 beta stock follows the market only by 4 percent.
Below the 20 results are two High-Yields and five with a buy or better recommendation.
Here are my favorite stocks:
Kimberly Clark ( KMB ) has a market capitalization of $32.46 billion. The company employs 57,000 people, generates revenue of $20,846.00 million and has a net income of $1,523.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,533.00 million. The EBITDA margin is 16.95 percent (operating margin 11.71 percent and net profit margin 7.31 percent).
Financial Analysis: The total debt represents 34.48 percent of the company's assets and the total debt in relation to the equity amounts to 127.24 percent. Due to the financial situation, a return on equity of 28.50 percent was realized. Twelve trailing months earnings per share reached a value of $4.75. Last fiscal year, the company paid $2.80 in form of dividends to shareholders. The company raised dividends over a period of 40 consecutive years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.44, P/S ratio 1.57 and P/B ratio 6.24. Dividend Yield: 3.57 percent. The beta ratio is 0.31.
Abbott Laboratories ( ABT ) has a market capitalization of $102.76 billion. The company employs 91,000 people, generates revenue of $38,851.26 million and has a net income of $4,728.45 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,795.84 million. The EBITDA margin is 22.64 percent (operating margin 14.81 percent and net profit margin 12.17 percent).
Financial Analysis: The total debt represents 25.57 percent of the company's assets and the total debt in relation to the equity amounts to 63.07 percent. Due to the financial situation, a return on equity of 20.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, the company paid $1.92 in form of dividends to shareholders. The company raised dividends over a period of 40 consecutive years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.92, P/S ratio 2.66 and P/B ratio 4.23. Dividend Yield: 3.10 percent. The beta ratio is 0.31.
Church & Dwight ( CHD ) has a market capitalization of $6.97 billion. The company employs 3,500 people, generates revenue of $2,749.30 million and has a net income of $309.60 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $567.60 million. The EBITDA margin is 20.65 percent (operating margin 17.92 percent and net profit margin 11.26 percent).
Financial Analysis: The total debt represents 8.09 percent of the company's assets and the total debt in relation to the equity amounts to 12.36 percent. Due to the financial situation, a return on equity of 15.83 percent was realized. Twelve trailing months earnings per share reached a value of $2.20. Last fiscal year, the company paid $0.68 in form of dividends to shareholders. The company raised dividends over a period of 16 consecutive years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.76, P/S ratio 2.58 and P/B ratio 3.55. Dividend Yield: 1.88 percent. The beta ratio is 0.33.
Family Dollar Stores ( FDO ) has a market capitalization of $7.57 billion. The company employs 33,000 people, generates revenue of $9,331.00 million and has a net income of $422.24 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $892.60 million. The EBITDA margin is 9.57 percent (operating margin 7.37 percent and net profit margin 4.53 percent).
Financial Analysis: The total debt represents 16.23 percent of the company's assets and the total debt in relation to the equity amounts to 42.19 percent. Due to the financial situation, a return on equity of 35.41 percent was realized. Twelve trailing months earnings per share reached a value of $3.58. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The company raised dividends over a period of 36 consecutive years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.33, P/S ratio 0.82 and P/B ratio 5.87. Dividend Yield: 1.27 percent. The beta ratio is 0.24.
Take a closer look at the full table of the safest dividend growth stocks. The average price to earnings ratio (P/E ratio) amounts to 23.49 and forward P/E ratio is 16.97. The dividend yield has a value of 3.46 percent. Price to book ratio is 2.61 and price to sales ratio 1.90. The operating margin amounts to 16.92 percent. The average stock has a debt to equity ratio of 0.87.
Selected Articles:
· 20 Of The Best Performing Dividend Achievers With Still Cheap Earnings Multiples
· 4 Dividend Achievers With The Strongest Recommendation At The Market
· 15 Of The Best Growing Dividend Achievers
· 13 Of The Cheapest Dividend Achievers
* I am long KMB. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 Laboratories ( ABT ) has a market capitalization of $102.76 billion. I made a list of the 20 dividend growth stocks with the lowest beta ratio, in total a value of less than 0.4. Especially in times of crises like the European debt crisis and the slowing China GDP growth, a safe haven strategy should be a wise decision. | Abbott Laboratories ( ABT ) has a market capitalization of $102.76 billion. Financial Analysis: The total debt represents 34.48 percent of the company's assets and the total debt in relation to the equity amounts to 127.24 percent. Financial Analysis: The total debt represents 25.57 percent of the company's assets and the total debt in relation to the equity amounts to 63.07 percent. | Abbott Laboratories ( ABT ) has a market capitalization of $102.76 billion. Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.44, P/S ratio 1.57 and P/B ratio 6.24. Dividend Yield: 3.57 percent. Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.92, P/S ratio 2.66 and P/B ratio 4.23. Dividend Yield: 3.10 percent. | Abbott Laboratories ( ABT ) has a market capitalization of $102.76 billion. At the market are 187 stocks with a consecutive dividend growth of more than five years (Dividend Achievers). If he goes 10 percent down, the 0.4 beta stock follows the market only by 4 percent. |
34373.0 | 2012-10-19 00:00:00 UTC | What Moves Biotech Stocks? Ed Arce Has Answers. | ABT | https://www.nasdaq.com/articles/what-moves-biotech-stocks-ed-arce-has-answers-2012-10-19 | nan | nan | Submitted byThe Life Sciencesas part of our contributors program .
Interview conducted by George S. Mack of The Life Sciences Report (10/18/12)
Biotech stocks move on material news, which means clinical data, regulatory progress, new partnerships and big contracts with new customers. Analyst Ed Arce of MLV & Co. holds to these principles as he shares compelling biotech names in this exclusive interview with The Life Sciences Report .
The Life Sciences Report: Your experience is very broad. Just four or five years ago, you were a big pharma analyst at a major investment bank, where you followed the largest drug makers in the world. From your perspective today, as an analyst following small-cap biotech and medtech, can you talk about the clinical assets that drive value in smaller companies?
Ed Arce: From a market perspective, the key value drivers largely remain the same. First, and by far most important, are the clinical data. The stronger the efficacy, the better. But meeting clinical endpoints needs to translate into a clinically meaningful benefit. An outright therapeutic cure is optimal, but is also quite rare. Also, the overall safety and tolerability profile of any new therapeutic must be commensurate with the severity of the disease, and comparable to the risk profiles of any existing pharmacotherapies. Risk/benefit is obviously a trade-off. The U.S. Food and Drug Administration (FDA), in attempting to balance the risk/benefit equation, has leaned a bit in one direction or the other over the years.
The second point, from a market perspective, is the size of the patient population and the degree to which that population has been, or is, treatment naïve.
The third point is value driven by a long product life, in the form of a long-dated patent suite, as well as any regulatory exclusivity offered to the drug.
Last would be pricing. This has, for a long time, been strongly correlated to the strength of the data, and rightly so. But increasingly, companies are focusing one or more of their development programs on rare diseases that qualify for the FDA's orphan indication, with the candidate drug being entitled to marketing exclusivity. In these cases, the pricing is much higher than in broader indications.
TLSR: You have alluded to a very interesting point regarding orphan indications-incentives from the FDA for developing these products and the pricing models available to companies for focusing on rare diseases. It seems to prove that these programs have been effective, does it not?
EA: Yes. The FDA's orphan drug programs have been among the most successful over the last couple decades. Originally the industry was a bit slow to pick up on the commercial opportunity, but now, and over the last few years, there has been a resurgence and an awakening to the commercial opportunities concerning all of the program's aspects, which include market exclusivity, tax benefits and the other items. The incentives make development of orphan drugs a much more profitable proposition.
TLSR: You follow a few medical technology companies in addition to biotechnology companies. Do you find differences in the way the Centers for Medicare & Medicaid Services ( CMS ) treats device companies versus drug companies? What variances have you noticed with regard to allowing reimbursement for devices versus drugs?
EA: I've come to believe that there are, in many cases, more hurdles regarding reimbursement for devices than for drugs. Specifically, I think devices are much more likely to experience incremental, piecemeal reimbursement approvals by private payers across the country, even after CMS allowance. Typically, private-pay reimbursement is much more rapid and uniform with drugs.
TLSR: Generally speaking, where do opportunities lie for investors?
EA: My focus is on companies and their fundamentals. In that regard, opportunities for upside lie specifically with those companies that have impactful and near-term catalytic events ahead of them.
TLSR: With that bottom-up theory, let's talk about some of your favorite ideas. Pick one that you like.
EA: The first one I'll mention is NPS Pharmaceuticals Inc. (NPSP:NASDAQ). NPS is a biotech company focused on developing orphan therapeutics for rare gastrointestinal and endocrine disorders. We believe its lead development product, Gattex (teduglutide), for short bowel syndrome, is a key, near-term value driver.
Gattex was recently evaluated by the FDA's Gastrointestinal Drugs Advisory Committee and the panel voted unanimously in favor of FDA approval. We believe Gattex significantly restores intestinal absorption to patients and offers most of them one or more days off the expensive standard-of-care therapy, which is parenteral nutrition (PN). Not only is chronic PN treatment a huge burden for these patients, it dramatically decreases their quality of life, and it comes with some serious complications, including catheter-related infections and even liver disease. I think the likelihood is quite high that Gattex gains FDA approval on or before its Prescription Drug User Fee Act (PDUFA) action date of Dec. 30.
NPS also has a second, late-stage compound in Natpara (recombinant human parathyroid hormone [rhPTH 1-84]), for hypoparathyroidism. If approved, Natpara would be offered as a hormone replacement therapy for patients who have no other alternative than to take huge daily doses of oral calcium and vitamin D. NPS expects to file a biologics license application (BLA) for Natpara in mid-2013.
TLSR: Is short bowel syndrome a surgical phenomenon, or is this product for congenital conditions?
EA: It is actually both, but the lion's share of the patient population has had surgery, which is a treatment sometimes recommended for Crohn's disease. In other cases surgery might have been for treatment related to cancers.
TLSR: How does Gattex actually work? Is this an active transport type of mechanism in the bowel, able to increase permeability across cell membranes?
EA: Teduglutide is a recombinant glucagon-like peptide-2 (GLP-2) analog. It acts as a growth hormone specific to the intestines. It has been shown in tests to increase the restoration of the epithelial cells making up the intestinal lining. That increases the level of absorption for the remaining section of the bowel.
TLSR: What is the market opportunity for Gattex and Natpara? How big is it?
EA: In the U.S., there are estimates of between 10,000-15,000 patients who have short bowel syndrome and are dependent on parenteral nutrition. That would be the key target patient population for Gattex. With Natpara, for hypoparathyroidism, estimates range from 65,000-80,000 patients in the U.S.
TLSR: What do those numbers translate to in dollars?
EA: We believe both of these could generate several hundred million dollars in peak sales for NPS.
TLSR: NPS has an $800 million ($800M) market cap. The market opportunity is significant.
EA: Yes, it would be significant. Both products have solid patent protection out to the middle of the 2020s. I want to point out that Gattex is known as Revestive in the European Union ( EU ), and it received European market approval in September 2012. The approval was received with NPS' partner, Nycomed, which was acquired by Takeda Pharmaceutical Co. Ltd. (TKPYY:OTCPK). Revestive is now in the process of launching country-by-country through the region. NPS earns mid-teen royalties from sales of the drug in the EU. For both Natpara and Gattex, once they are approved, sales in North America would accrue entirely to NPS.
TLSR: Both of these indications are relatively rare. The endocrinologist would be managing the hypoparathyroidism, and the gastroenterologist or internist would be managing the short bowel syndrome. You don't need a huge sales force for either of these products, do you?
EA: That's right. In fact, NPS has been diligently preparing for the launch of Gattex for more than a year now. The company is preparing the infrastructure and starting with key managers on the commercial side. The company is now in the process of following up with medical science liaisons. It is also working with patient advocacy groups and others to get the best understanding of where the target patient population is, who treats those patients and how to manage that treatment.
TLSR: Gattex's PDUFA date is Dec. 30. Do you generally expect a stock to sell off on the good news when the drug is approved?
EA: That has been happening with more frequency lately. It all depends on how much the stock has run up in the months before the advisory committee date, and then how much it may have run up between the time of the advisory committee and the PDUFA date. It also depends on the investor base. In the case of NPS, I think the company has a very solid, long-term institutional shareholder base that largely reduces that risk. The institutional shareholders are about 90%.
TLSR: That's pretty high. How do you bid up the price of shares when 90% are already owned by institutional investors? Those shares could actually be a source of supply. But that may be a rhetorical question. Do you expect sales of Gattex, starting in January 2013 or thereafter, to begin driving this stock again?
EA: It wouldn't surprise me if, after the run-up following the advisory committee and the approval, the stock traded sideways for the first two months of 2013, as we get an idea of what the early launch sales trajectory looks like. But I would also mention that in the same timeframe-the first few months of next year-NPS will be wrapping up its BLA for Natpara. These two important compounds are back-to-back, and serve as incremental catalysts for the stock now and well into 2013.
TLSR: What is your next idea?
EA: I like BioCryst Pharmaceuticals Inc. (BCRX:NASDAQ), a pharmaceutical company developing novel small molecules that block key enzymes involved in inflammatory and infectious diseases. It utilizes its state-of-the-art crystallography lab to do structured, guided drug design. It has two late-stage compounds, and the key value driver is its compound for gout, ulodesine. The main catalyst is that this drug is phase 3-ready, following positive results reported earlier this year. The catalyst that investors are awaiting is announcement of a development and commercialization collaboration with a partner to undertake the phase 3 program, and ultimately to commercialize the product.
TLSR: You have said that you consider gout to be an untapped market. Allopurinol has been on the market for the longest time, and other generics, such as probenecid, are available. There are also newer products, such as Takeda's Uloric (febuxostat) and Savient Pharmaceuticals Inc.'s (SVNT:NASDAQ) Krystexxa (pegloticase). Also, AstraZeneca Plc (AZN:NYSE) has a product, lesinurad, that has been in phase 3 studies now for a year. Why is ulodesine so important? Why do you think of gout as an untapped market, with all the other products out there?
EA: On face value, I agree with you. It would seem that there are several products addressing this condition. But let's go over them one by one. First of all, you're right: The standard of care, used to treat well over 90% of patients, is the widely genericized drug allopurinol, which has been around for 40+ years. Despite the entrance of Krystexxa and Uloric, that has not changed much over the last few years. Uloric is a slightly more efficacious version of allopurinol. It works by the same mechanism of action, and given that it produces incremental improvement, it hasn't garnered much market share relative to the much cheaper generic alternative. At the other end of the spectrum is Krystexxa. This is a potent drug, is an injectable and is intended for the most severe gout patients, those who have severe tophaceous gout that is not responding to allopurinol. Even by its own label, Krystexxa is targeting a subset of patients who suffer from the worst symptoms.
Essentially, the majority of patients who have gout-in fact, about 60% of them-are on treatment but are underserved and are not reaching the therapeutic goal, which is to reduce serum uric acid levels to below 6 milligrams per deciliter (mg/dL). Until patients reach that level, they will likely continue to experience sporadic episodes of painful gout flares. The only way to address the underlying condition is to reduce the uric acid level well below the 6 mg/dL. The two lead, late-stage compounds in development, as you mentioned, are ulodesine and AstraZeneca's lesinurad.
TLSR: I understand that the phase 2 data for combination therapy of ulodesine and allopurinol showed a doubled response rate versus the control arm of allopurinol alone. Are you concerned about the toxicity of these two products used together? Is that going to be the major risk factor to share price as this combination enters phase 3?
EA: There have been, in the past, some concerns about the safety profile of ulodesine given the mechanism of action. There are specific actions with ulodesine in combination with allopurinol that act synergistically in the urate metabolic pathway. The question about the safety has been, in my view, answered thoroughly by tests done on infection rates in both B cells and T cells. My view is that the drug is safe and well tolerated.
TLSR: BioCryst is a small-cap company with a $204M market valuation. The company has about $54M in cash and cash equivalents on its balance sheet, and that should hold it for another 18 months or so. Is the company going to be squeezed into giving away too many points when it licenses ulodesine?
EA: No, I don't think so. In fact, I think the company is in a rather strong position to negotiate some favorable terms with a future partner because of the market dynamic we've just discussed. Ulodesine is the last remaining, unpartnered, late-stage gout compound.
We also expect that in the interim, the company's second-lead late-stage compound, peramivir, a neuraminidase inhibitor for influenza, could wrap up its phase 3 trial and show some positive data by late next year. The trial is evaluating intravenous peramivir in patients with acute influenza in the hospital setting. If it is approved on the basis of positive phase 3 data, it is highly likely that the U.S. government, in the form of the Biomedical Advanced Research and Development Authority (BARDA), will grant a contract for $100M or more, just based on BARDA's past purchases of these types of drugs, both influenza vaccines and antivirals.
TLSR: Even with thin margins, that amount of money is going to be important for the company. Is the Street giving peramivir any value currently, or is it a call option?
EA: It really is a call option. At this point, I include it in my model and valuation because I believe the data speak highly to the prospects for approval. Of course, it is appropriately risk-adjusted. But having said that, I don't think peramivir has been given much credit by the Street. It will be a significant catalyst when the data come out positively.
TLSR: Another idea?
EA: Ligand Pharmaceuticals (LGND:NASDAQ) is a biotechnology company that has been around since the mid-1990s, but it has been through several iterations. Today it has a large, diverse pipeline of mostly partnered assets that are in various stages, from preclinical through phase 3. Several of those assets are now generating royalties.
In addition, it acquired CyDex Pharmaceuticals Inc. in January 2011. Through that acquisition the company now has the Captisol (a polyanionic beta-cyclodextrin derivative) formulation platform technology, which is in six marketed drugs as well as a handful of compounds that are in the clinic.
Going forward, Ligand has two key value drivers. The first is Kyprolis (carfilzomib). This is Onyx Pharmaceuticals Inc.'s (ONXX:NASDAQ) drug for relapsed and refractory multiple myeloma, which was just approved by the FDA a few months ago. Indications are that the launch with Onyx is going well. Ligand, because of its formulation technology with Captisol, gets 1.5-3% of annual sales. Normally this percentage would be considered small-and perhaps even insignificant-but for a company the size of Ligand, with a $336M market cap, and for the market opportunity that we see in Kyprolis, specifically for patients who have come to the end of the line and have no therapeutic alternatives left, we see this as one of the key value drivers, especially starting next year.
TLSR: Kyprolis is labeled as a third-line therapy for multiple myeloma. The patient has to fail two prior therapies, including Velcade (bortezomib; Takeda). Is the company doing studies to advance this product to earlier-stage disease or earlier-stage treatment?
EA: There are late-stage studies evaluating just that question. I think that as the months roll over and prescribing physicians gain more experience with the drug, some off-label prescribing could occur on the margins, because there is the view that Kyprolis could be both efficacious and safe.
TLSR: Is there another company you wanted to talk about?
EA: Affymax Inc. (AFFY:NASDAQ) is a very interesting story. The company is known for its drug Omontys (peginesatide), a treatment for anemia in patients with chronic kidney disease who are on dialysis. Omontys is a synthetic, pegylated, peptidic compound that binds to and stimulates the erythropoietin receptor. It is an erythropoiesis-stimulating agent ( ESA ), like Amgen Inc.'s (AMGN:NASDAQ) Epogen (epoetin alfa). The key difference is that Omontys is administered once a month for dialysis patients, as opposed to three times a week, typically, with Epogen. Earlier this year Affymax and its partner, Takeda, were granted approval before the PDUFA date, and the product has been doing very well in the first few months of its launch.
TLSR: I find this company so interesting. The stock performance is off the chart, up 385% over the past 12 months and up 100% in the past three months. It flagged after the drug was approved, and then it seemed to take off on new contracts with dialysis providers. Those were the great big catalysts for the company.
EA: In fact, within fewer than three months after approval, the company signed an initial supply agreement with the world's largest dialysis provider, Fresenius Medical Care (FMS:NYSE), which became an early adopter of Omontys. The initial contract, signed in July, was for a little more than 100 dialysis centers in the U.S., representing about 10,000 patients. In August, Affymax signed with U.S. Renal Care.
The bigger picture is that Epogen has been the only ESA available to dialysis patients for more than 20 years. This was a long-standing monopoly with monopoly pricing. Affymax has been very successful in the first few months of the Omontys launch, and it is getting some key suppliers to adopt the product. In fact, we think it's likely, perhaps even as early as the end of this year, that Fresenius and Affymax will announce a longer-term and much broader, comprehensive agreement to supply Omontys throughout all of its dialysis centers, or many more of its dialysis centers than it currently does.
TLSR: Ed, thank you so much for your time.
EA: Thank you very much. I enjoyed it.
Ed Arce joined MLV & Co. in April 2011 as an equity analyst in the Life Sciences Equity Research group, covering biotechnology, biopharmaceutical and specialty pharmaceutical companies. Prior to joining MLV, he worked as a senior research associate at Wedbush Securities and UBS Securities, covering the biotechnology and U.S. large-cap pharmaceutical industries, respectively. Arce started his equity research career in 2005 as a research associate at First Albany Capital (now Gleacher & Company Inc.), covering specialty and generic pharmaceutical companies. Arce holds a master's degree in finance from Boston College. In addition, he holds a bachelor's degree in civil engineering from Florida International University (FIU), and is a graduate of the executive master's degree program in business administration at the Chapman Graduate School of Business at FIU. Arce is a board-licensed professional engineer (PE), and a level III CFA candidate.
Want to read more exclusive Life Sciences Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.
DISCLOSURE:
1) George S. Mack of The Life Sciences Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Life Sciences Report: None. Streetwise Reports does not accept stock in exchange for services. Interviews are edited for clarity.
3) Ed Arce: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview.
Streetwise - The Life Sciences Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.
The Life Sciences Report does not render general or specificinvestment adviceand does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.
From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.
Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.
Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Interview conducted by George S. Mack of The Life Sciences Report (10/18/12) Biotech stocks move on material news, which means clinical data, regulatory progress, new partnerships and big contracts with new customers. Essentially, the majority of patients who have gout-in fact, about 60% of them-are on treatment but are underserved and are not reaching the therapeutic goal, which is to reduce serum uric acid levels to below 6 milligrams per deciliter (mg/dL). EA: In fact, within fewer than three months after approval, the company signed an initial supply agreement with the world's largest dialysis provider, Fresenius Medical Care (FMS:NYSE), which became an early adopter of Omontys. | Interview conducted by George S. Mack of The Life Sciences Report (10/18/12) Biotech stocks move on material news, which means clinical data, regulatory progress, new partnerships and big contracts with new customers. EA: In fact, within fewer than three months after approval, the company signed an initial supply agreement with the world's largest dialysis provider, Fresenius Medical Care (FMS:NYSE), which became an early adopter of Omontys. Ed Arce joined MLV & Co. in April 2011 as an equity analyst in the Life Sciences Equity Research group, covering biotechnology, biopharmaceutical and specialty pharmaceutical companies. | But increasingly, companies are focusing one or more of their development programs on rare diseases that qualify for the FDA's orphan indication, with the candidate drug being entitled to marketing exclusivity. TLSR: You have alluded to a very interesting point regarding orphan indications-incentives from the FDA for developing these products and the pricing models available to companies for focusing on rare diseases. Normally this percentage would be considered small-and perhaps even insignificant-but for a company the size of Ligand, with a $336M market cap, and for the market opportunity that we see in Kyprolis, specifically for patients who have come to the end of the line and have no therapeutic alternatives left, we see this as one of the key value drivers, especially starting next year. | TLSR: What is the market opportunity for Gattex and Natpara? It has two late-stage compounds, and the key value driver is its compound for gout, ulodesine. Normally this percentage would be considered small-and perhaps even insignificant-but for a company the size of Ligand, with a $336M market cap, and for the market opportunity that we see in Kyprolis, specifically for patients who have come to the end of the line and have no therapeutic alternatives left, we see this as one of the key value drivers, especially starting next year. |
34374.0 | 2012-10-19 00:00:00 UTC | Wells Fargo Analysts Upgrade Abbott Laboratories to “Outperform” (ABT) | ABT | https://www.nasdaq.com/articles/wells-fargo-analysts-upgrade-abbott-laboratories-outperform-abt-2012-10-19 | nan | nan | Analysts at Wells Fargo upgraded pharmaceutical company Abbott Laboratories ( ABT ) from "Market Perform" to "Outperform" on Friday.
The new price target for Abbott Labs is $71 to $74. That is roughly a 10% upside from Thursday's closing price of $66.64.
Analyst Larry Biegelsen said,"We believe the recent pullback-following the 3Q report and termination of bardoxolone program-provides an attractive entry point for investors ahead of the split of the company at the end of 2012."
Biegelsen went on to say, "Looking at 2013, we believe ABT management has set performance targets for each company's first year that should be at least achievable if not beatable. For the new ABT, we expect the management team, including current CEO Miles White, to build an earnings track record of beats and raises as was done for the current ABT. For AbbVie, we view the HCV opportunity and continued strong growth of the Humira franchise as key drivers into 2013."
Abbott Laboratories shares were mostly flat in premarket trading on Friday. ABT shares are up $10.41, | Analysts at Wells Fargo upgraded pharmaceutical company Abbott Laboratories ( ABT ) from "Market Perform" to "Outperform" on Friday. Biegelsen went on to say, "Looking at 2013, we believe ABT management has set performance targets for each company's first year that should be at least achievable if not beatable. For the new ABT, we expect the management team, including current CEO Miles White, to build an earnings track record of beats and raises as was done for the current ABT. | Analysts at Wells Fargo upgraded pharmaceutical company Abbott Laboratories ( ABT ) from "Market Perform" to "Outperform" on Friday. Biegelsen went on to say, "Looking at 2013, we believe ABT management has set performance targets for each company's first year that should be at least achievable if not beatable. For the new ABT, we expect the management team, including current CEO Miles White, to build an earnings track record of beats and raises as was done for the current ABT. | Analysts at Wells Fargo upgraded pharmaceutical company Abbott Laboratories ( ABT ) from "Market Perform" to "Outperform" on Friday. Biegelsen went on to say, "Looking at 2013, we believe ABT management has set performance targets for each company's first year that should be at least achievable if not beatable. For the new ABT, we expect the management team, including current CEO Miles White, to build an earnings track record of beats and raises as was done for the current ABT. | Analysts at Wells Fargo upgraded pharmaceutical company Abbott Laboratories ( ABT ) from "Market Perform" to "Outperform" on Friday. Biegelsen went on to say, "Looking at 2013, we believe ABT management has set performance targets for each company's first year that should be at least achievable if not beatable. For the new ABT, we expect the management team, including current CEO Miles White, to build an earnings track record of beats and raises as was done for the current ABT. |
34375.0 | 2012-10-19 00:00:00 UTC | BIIB's BG-12 Review Period Extended - Analyst Blog | ABT | https://www.nasdaq.com/articles/biibs-bg-12-review-period-extended-analyst-blog-2012-10-19 | nan | nan | Biogen Idec 's ( BIIB ) shares were down 2.74% after the company announced that the US Food and Drug Administration (FDA) has extended its review period for the company's oral multiple sclerosis (MS) candidate, BG-12 (dimethyl fumarate), by three months.
The FDA said that it needs extra time to review the company's New Drug Application (NDA) for BG-12. Biogen had submitted the NDA in March. The NDA was based on data from the phase III DEFINE and CONFIRM studies which showed that treatment with BG-12 led to a significant reduction in disease activity in multiple sclerosis patients. Moreover, the candidate had a favorable safety and tolerability profile.
The extension of the FDA's review period means that a response regarding BG-12's approvability should be out in March-April 2013 instead of later this year. Importantly, the FDA did not ask for additional studies.
Biogen is the market leader in therapies for the treatment of MS. The company's key products include Avonex and Tysabri. Biogen has been working on strengthening its position in the MS market. We believe BG-12 could become a leader in the oral MS market once launched. Biogen is also studying BG-12 as a combination therapy.
Meanwhile, Biogen and partner Abbott Labs ( ABT ) moved another MS candidate, daclizumab, into a two-year phase III study (DECIDE) in July 2010, with results due in 2014. Daclizumab is being evaluated as a once-monthly or bi-weekly subcutaneous injection for relapsing-remitting MS. PEGylated interferon rounds up Biogen's late-stage MS pipeline. PEGylated interferon is currently in a phase III study (ADVANCE). Top-line results should be out in the first half of 2013.
We currently have a Neutral recommendation on Biogen, which carries a Zacks #3 Rank (short-term 'Hold' rating). Biogen has an important pipeline event coming up later this year with the company slated to report phase III results on rFVIIIFc (hemophilia A) from the A-LONG study.
ABBOTT LABS (ABT): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, Biogen and partner Abbott Labs ( ABT ) moved another MS candidate, daclizumab, into a two-year phase III study (DECIDE) in July 2010, with results due in 2014. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The NDA was based on data from the phase III DEFINE and CONFIRM studies which showed that treatment with BG-12 led to a significant reduction in disease activity in multiple sclerosis patients. | Meanwhile, Biogen and partner Abbott Labs ( ABT ) moved another MS candidate, daclizumab, into a two-year phase III study (DECIDE) in July 2010, with results due in 2014. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen Idec 's ( BIIB ) shares were down 2.74% after the company announced that the US Food and Drug Administration (FDA) has extended its review period for the company's oral multiple sclerosis (MS) candidate, BG-12 (dimethyl fumarate), by three months. | Meanwhile, Biogen and partner Abbott Labs ( ABT ) moved another MS candidate, daclizumab, into a two-year phase III study (DECIDE) in July 2010, with results due in 2014. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen Idec 's ( BIIB ) shares were down 2.74% after the company announced that the US Food and Drug Administration (FDA) has extended its review period for the company's oral multiple sclerosis (MS) candidate, BG-12 (dimethyl fumarate), by three months. | Meanwhile, Biogen and partner Abbott Labs ( ABT ) moved another MS candidate, daclizumab, into a two-year phase III study (DECIDE) in July 2010, with results due in 2014. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The FDA said that it needs extra time to review the company's New Drug Application (NDA) for BG-12. |
34376.0 | 2012-10-19 00:00:00 UTC | Pipeline Setback at Abbott - Analyst Blog | ABT | https://www.nasdaq.com/articles/pipeline-setback-at-abbott-analyst-blog-2012-10-19 | nan | nan | Abbott Laboratories ( ABT ) and its partner Reata Pharmaceuticals, Inc. recently announced the discontinuation of the pivotal phase III BEACON (Bardoxolone methyl EvAluation in patients with Chronic kidney disease and type II diabetes: the Occurrence of renal eveNts) study with bardoxolone methyl. The study was being conducted to evaluate the safety and efficacy of bardoxolone methyl in patients with stage 4 chronic kidney disease (CKD) and type II diabetes.
The study was terminated after the Independent Data Monitoring Committee (IDMC) recommended discontinuation of the study due to safety concerns. It was found that a higher number of serious adverse events and mortality was associated with the use of bardoxolone methyl.
Investors have reacted negatively to the news with Abbott Labs' share price falling 3.5% on the news.
Abbott Labs and Reata Pharma had announced the initiation of the phase III study in mid-2011. The discontinuation of the BEACON study is a huge disappointment for Abbott Labs, which remains on track to split into two separate publicly traded companies from January 1, 2013. One company will deal in diversified medical products, while the other (AbbVie) will focus on research-based pharmaceuticals.
Bardoxolene methyl was one of the most promising late-stage candidates in AbbVie's pipeline. The CKD market represents significant commercial potential with more than 26 million adults affected in the US as per data from the National Kidney Foundation. The successful development of bardoxolone methyl would have helped reduce AbbVie's dependence on Humira for growth.
Other late-stage candidates at Abbott Labs includes levodopa-carbidopa intestinal gel (LCIG) for advanced Parkinson's disease and daclizumab for the treatment of relapsing-remitting multiple sclerosis (RRMS). Abbott Labs has partnered with Biogen Idec ( BIIB ) for daclizumab.
We currently have a Neutral recommendation on Abbott Labs, which carries a Zacks #3 Rank (short-term Hold rating).
ABBOTT LABS (ABT): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ( ABT ) and its partner Reata Pharmaceuticals, Inc. recently announced the discontinuation of the pivotal phase III BEACON (Bardoxolone methyl EvAluation in patients with Chronic kidney disease and type II diabetes: the Occurrence of renal eveNts) study with bardoxolone methyl. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The study was being conducted to evaluate the safety and efficacy of bardoxolone methyl in patients with stage 4 chronic kidney disease (CKD) and type II diabetes. | Abbott Laboratories ( ABT ) and its partner Reata Pharmaceuticals, Inc. recently announced the discontinuation of the pivotal phase III BEACON (Bardoxolone methyl EvAluation in patients with Chronic kidney disease and type II diabetes: the Occurrence of renal eveNts) study with bardoxolone methyl. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The study was being conducted to evaluate the safety and efficacy of bardoxolone methyl in patients with stage 4 chronic kidney disease (CKD) and type II diabetes. | Abbott Laboratories ( ABT ) and its partner Reata Pharmaceuticals, Inc. recently announced the discontinuation of the pivotal phase III BEACON (Bardoxolone methyl EvAluation in patients with Chronic kidney disease and type II diabetes: the Occurrence of renal eveNts) study with bardoxolone methyl. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The study was being conducted to evaluate the safety and efficacy of bardoxolone methyl in patients with stage 4 chronic kidney disease (CKD) and type II diabetes. | Abbott Laboratories ( ABT ) and its partner Reata Pharmaceuticals, Inc. recently announced the discontinuation of the pivotal phase III BEACON (Bardoxolone methyl EvAluation in patients with Chronic kidney disease and type II diabetes: the Occurrence of renal eveNts) study with bardoxolone methyl. ABBOTT LABS (ABT): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. The study was being conducted to evaluate the safety and efficacy of bardoxolone methyl in patients with stage 4 chronic kidney disease (CKD) and type II diabetes. |
34377.0 | 2012-10-18 00:00:00 UTC | Pharmaceutical Stocks Are All-of-a-Sudden Hot Again: Read About Drugs and Dividends | ABT | https://www.nasdaq.com/articles/pharmaceutical-stocks-are-all-sudden-hot-again-read-about-drugs-and-dividends-2012-10-18 | nan | nan | If you're considering investing in some pharmaceutical companies for the safety of their outsized dividends, you might want to get going on that. Others already have. Suddenly, several big pharma stocks are a lot more expensive than they were just weeks ago.
MRK PE Ratio TTM data by YCharts
Shares of Merck ( MRK ), Pfizer ( PFE ), Eli Lilly & Co. ( LLY ) and Abbott Laboratories ( ABT ) have been trading at 52-week highs lately, with particularly strong gains in the past five months, as seen in a stock chart .
MRK data by YCharts
Dividends remain the key reason for drug company popularity on Wall Street, especially as more investors worry about a slumping market generally.
Pharma dividend yields , even with the price increases, are 3% or higher in most cases. Merck and Lilly carry dividend yields above 3.5% now.
MRK Dividend Yield data by YCharts
Despite their big yields, none of these companies pay big portions of their income or cash on dividends. Look at the payout ratios (based on income) of a few pharmas companies compared to AT&T ( T ), another big, popular dividend stock. Or the cash dividend payout ratio against a popular utility dividend. Lower ratios suggest a higher likelihood of dividend hikes in the future.
MRK Payout Ratio TTM data by YCharts
MRK Cash Div. Payout Ratio TTM data by YCharts
But really, it's the drug news that's driven pharma PE ratios toward the 20s after years at lower valuations. Merck's new diabetes treatment Januvia is expected to generate more revenue - some $9.7 billion - over the next seven years than any other new drug, according to a recent study .
Reports from trials of Lilly's new Alzheimer's drug, Solanezumab, are generally good. Novartis ' ( NVS ) newer drugs Gilenya for multiple sclerosis and Afintor for breast cancer are selling well, as are its generic drugs.
It's all good news for shares that have been depressed for years now over worries that drug patent expirations would tank sales growth in coming years.
Of course, there's always a cautionary tale to be told whenever investing is involved, and this sector's is Bristol-Meyers Squibb ( BMY ). Turns out its new drugs that were so promising last year may never pay out big. It has dropped a hepatitis C treatment because of safety concerns, and competition is heating up for its new blood thinner even before it launches. Analysts are not optimistic that this picture will improve soon.
BMY data by YCharts
Dee Gill is a contributing editor at YCharts, which includes the just-released YCharts Pro Platinum for professional investors.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | MRK PE Ratio TTM data by YCharts Shares of Merck ( MRK ), Pfizer ( PFE ), Eli Lilly & Co. ( LLY ) and Abbott Laboratories ( ABT ) have been trading at 52-week highs lately, with particularly strong gains in the past five months, as seen in a stock chart . MRK data by YCharts Dividends remain the key reason for drug company popularity on Wall Street, especially as more investors worry about a slumping market generally. Look at the payout ratios (based on income) of a few pharmas companies compared to AT&T ( T ), another big, popular dividend stock. | MRK PE Ratio TTM data by YCharts Shares of Merck ( MRK ), Pfizer ( PFE ), Eli Lilly & Co. ( LLY ) and Abbott Laboratories ( ABT ) have been trading at 52-week highs lately, with particularly strong gains in the past five months, as seen in a stock chart . MRK Dividend Yield data by YCharts Despite their big yields, none of these companies pay big portions of their income or cash on dividends. MRK Payout Ratio TTM data by YCharts MRK Cash Div. | MRK PE Ratio TTM data by YCharts Shares of Merck ( MRK ), Pfizer ( PFE ), Eli Lilly & Co. ( LLY ) and Abbott Laboratories ( ABT ) have been trading at 52-week highs lately, with particularly strong gains in the past five months, as seen in a stock chart . MRK data by YCharts Dividends remain the key reason for drug company popularity on Wall Street, especially as more investors worry about a slumping market generally. MRK Dividend Yield data by YCharts Despite their big yields, none of these companies pay big portions of their income or cash on dividends. | MRK PE Ratio TTM data by YCharts Shares of Merck ( MRK ), Pfizer ( PFE ), Eli Lilly & Co. ( LLY ) and Abbott Laboratories ( ABT ) have been trading at 52-week highs lately, with particularly strong gains in the past five months, as seen in a stock chart . Merck and Lilly carry dividend yields above 3.5% now. MRK Dividend Yield data by YCharts Despite their big yields, none of these companies pay big portions of their income or cash on dividends. |
34378.0 | 2012-10-18 00:00:00 UTC | Company News for October 18, 2012 - Corporate Summary | ABT | https://www.nasdaq.com/articles/company-news-for-october-18-2012-corporate-summary-2012-10-18 | nan | nan | • CSX Corporation (NYSE: CSX ) reported third quarter earnings per share of $0.44, in line with the Zacks Consensus Estimate
• Abbott Laboratories (NYSE: ABT ) posted third quarter earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.28
• PepsiCo, Inc. (NYSE: PEP ) reported third quarter earnings per share of $1.20, ahead of the Zacks Consensus Estimate of $1.16
• Halliburton Company (NYSE: HAL ) posted third quarter earnings per share of $0.67, in line with the Zacks Consensus Estimate
• M&T Bank Corporation (NYSE: MTB ) reported third quarter earnings per share of $2.17, breezing past the Zacks Consensus Estimate of $1.84 by 33 cents
• Dover Corporation (NYSE: DOV ) posted third quarter earnings per share of $1.30, higher than the Zacks Consensus Estimate of $1.27
ABBOTT LABS (ABT): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
DOVER CORP (DOV): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
M&T BANK CORP (MTB): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • CSX Corporation (NYSE: CSX ) reported third quarter earnings per share of $0.44, in line with the Zacks Consensus Estimate • Abbott Laboratories (NYSE: ABT ) posted third quarter earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.28 • PepsiCo, Inc. (NYSE: PEP ) reported third quarter earnings per share of $1.20, ahead of the Zacks Consensus Estimate of $1.16 • Halliburton Company (NYSE: HAL ) posted third quarter earnings per share of $0.67, in line with the Zacks Consensus Estimate • M&T Bank Corporation (NYSE: MTB ) reported third quarter earnings per share of $2.17, breezing past the Zacks Consensus Estimate of $1.84 by 33 cents • Dover Corporation (NYSE: DOV ) posted third quarter earnings per share of $1.30, higher than the Zacks Consensus Estimate of $1.27 ABBOTT LABS (ABT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report DOVER CORP (DOV): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report M&T BANK CORP (MTB): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • CSX Corporation (NYSE: CSX ) reported third quarter earnings per share of $0.44, in line with the Zacks Consensus Estimate • Abbott Laboratories (NYSE: ABT ) posted third quarter earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.28 • PepsiCo, Inc. (NYSE: PEP ) reported third quarter earnings per share of $1.20, ahead of the Zacks Consensus Estimate of $1.16 • Halliburton Company (NYSE: HAL ) posted third quarter earnings per share of $0.67, in line with the Zacks Consensus Estimate • M&T Bank Corporation (NYSE: MTB ) reported third quarter earnings per share of $2.17, breezing past the Zacks Consensus Estimate of $1.84 by 33 cents • Dover Corporation (NYSE: DOV ) posted third quarter earnings per share of $1.30, higher than the Zacks Consensus Estimate of $1.27 ABBOTT LABS (ABT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report DOVER CORP (DOV): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report M&T BANK CORP (MTB): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • CSX Corporation (NYSE: CSX ) reported third quarter earnings per share of $0.44, in line with the Zacks Consensus Estimate • Abbott Laboratories (NYSE: ABT ) posted third quarter earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.28 • PepsiCo, Inc. (NYSE: PEP ) reported third quarter earnings per share of $1.20, ahead of the Zacks Consensus Estimate of $1.16 • Halliburton Company (NYSE: HAL ) posted third quarter earnings per share of $0.67, in line with the Zacks Consensus Estimate • M&T Bank Corporation (NYSE: MTB ) reported third quarter earnings per share of $2.17, breezing past the Zacks Consensus Estimate of $1.84 by 33 cents • Dover Corporation (NYSE: DOV ) posted third quarter earnings per share of $1.30, higher than the Zacks Consensus Estimate of $1.27 ABBOTT LABS (ABT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report DOVER CORP (DOV): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report M&T BANK CORP (MTB): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | • CSX Corporation (NYSE: CSX ) reported third quarter earnings per share of $0.44, in line with the Zacks Consensus Estimate • Abbott Laboratories (NYSE: ABT ) posted third quarter earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.28 • PepsiCo, Inc. (NYSE: PEP ) reported third quarter earnings per share of $1.20, ahead of the Zacks Consensus Estimate of $1.16 • Halliburton Company (NYSE: HAL ) posted third quarter earnings per share of $0.67, in line with the Zacks Consensus Estimate • M&T Bank Corporation (NYSE: MTB ) reported third quarter earnings per share of $2.17, breezing past the Zacks Consensus Estimate of $1.84 by 33 cents • Dover Corporation (NYSE: DOV ) posted third quarter earnings per share of $1.30, higher than the Zacks Consensus Estimate of $1.27 ABBOTT LABS (ABT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report DOVER CORP (DOV): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report M&T BANK CORP (MTB): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
34379.0 | 2012-10-17 00:00:00 UTC | Abbott’s Q3 Earnings Rise on Lower Costs; Adjusted Net Beats, but Revenue Misses (ABT) | ABT | https://www.nasdaq.com/articles/abbotts-q3-earnings-rise-lower-costs-adjusted-net-beats-revenue-misses-abt-2012-10-17 | nan | nan | Diversified health care products maker Abbott Laboratories ( ABT ) on Wednesday posted mixed third quarter earnings, as profit beat estimates but its revenue fell short of analysts' view.
The Abbott Park, IL-based company reported third quarter net income of $1.94 billion, or $1.21 per share, compared with $303 million, or 19 cents per share, in the year-ago period. Excluding special items, adjusted profit was $1.30 per share.
Revenue fell 0.4% from last year to $9.77 billion.
On average, Wall Street analysts expected a smaller profit of $1.28 per share, albeit on higher revenue of $9.94 billion.
Looking ahead, ABT narrowed its full-year earnings outlook to a range of $5.06 to $5.08 per share. It had previously forecast $5.00 to $5.10 for the year. The company also noted it remains on track to split into two separate publicly-traded companies on January 1, 2013. One company will comprise ABT's pharmaceutical operations, while the other will be made up of its medical devices unit.
Abbott Laboratories shares fell 63 cents, or -0.9%, in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of Abbott Labs ( ABT ) since Feb.18, 2011, when the stock was trading at $72.13. The company has a 2.83% dividend yield, based on last night's closing stock price of $72.13.
Abbott Laboratories ( ABT ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Diversified health care products maker Abbott Laboratories ( ABT ) on Wednesday posted mixed third quarter earnings, as profit beat estimates but its revenue fell short of analysts' view. Looking ahead, ABT narrowed its full-year earnings outlook to a range of $5.06 to $5.08 per share. One company will comprise ABT's pharmaceutical operations, while the other will be made up of its medical devices unit. | Diversified health care products maker Abbott Laboratories ( ABT ) on Wednesday posted mixed third quarter earnings, as profit beat estimates but its revenue fell short of analysts' view. Abbott Laboratories ( ABT ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Looking ahead, ABT narrowed its full-year earnings outlook to a range of $5.06 to $5.08 per share. | Diversified health care products maker Abbott Laboratories ( ABT ) on Wednesday posted mixed third quarter earnings, as profit beat estimates but its revenue fell short of analysts' view. The Bottom Line We have been recommending shares of Abbott Labs ( ABT ) since Feb.18, 2011, when the stock was trading at $72.13. Looking ahead, ABT narrowed its full-year earnings outlook to a range of $5.06 to $5.08 per share. | Abbott Laboratories ( ABT ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Diversified health care products maker Abbott Laboratories ( ABT ) on Wednesday posted mixed third quarter earnings, as profit beat estimates but its revenue fell short of analysts' view. Looking ahead, ABT narrowed its full-year earnings outlook to a range of $5.06 to $5.08 per share. |
34380.0 | 2012-10-17 00:00:00 UTC | Market Wrap-Up for Oct.17 (MTB, SWK, ABT, INTC, IBM, more) | ABT | https://www.nasdaq.com/articles/market-wrap-oct17-mtb-swk-abt-intc-ibm-more-2012-10-17 | nan | nan | Today was by far one of the biggest earning release days we have seen already this quarter. With that, the market meandered for much of the session before closing slightly higher across most of the indices.
As far as the earnings highlights go, financial plays M&T Bank ( MTB ) and Bank of New York Mellon ( BK ) gained ground on the back of solid numbers. On the flip side, investors were not as pleased with the earnings results from companies such as IBM Corp ( IBM ), Intel Corp ( INTC ), Stanley Black & Decker ( SWK ), and Abbott Labs ( ABT ). We had a split analyst call move shares in the REIT (real estate investment trust) space, with a Wall Street firm preferring shares of Vornado Realty Trust ( VNO ) over Simon Property Group ( SPG ).
For all the recent dividend stock earnings reports and much more, be sure to check out The Dividend Daily .
Wrong Person for the Job
Yesterday was a big day for fans of the Philadelphia Eagles football team, which decided to shake things up mid-season, firing their defensive coordinator Juan Castillo. On the surface, it sounds like just any ordinary firing. If you dig deeper and follow sports like I do, you will soon see the team made a tremendous blunder in putting Castillo in the position he was in to begin with.
You see, Castillo was asked to become the team's defensive coordinator in 2011 when the Eagles' first choice for the job turned them down. With little options remaining, the team decided to put Castillo in charge of its defense instead. That move turned a lot of heads at the time, since Castillo had little experience coaching on the defensive side of the ball. He'd been the team's offensive line coach for over a decade, and last coached on defense more than 20 years ago for a college team. Indeed, he'd never done any defensive coaching at the pro level at all. So what exactly was the organization expecting?
You'd be surprised how often individuals make similar decisions when it comes to money-related matters, whether it is bad investment ideas, mediocre career choices leading to unambitious work, listening to unreliable information on buying a business they have little to no experience being in, and so on. It doesn't matter your social or financial status, a bad decision will ultimately lead to poor results.
Failure can be a good thing, of course, as long as we learn from it. Plus, there's a big difference at trying and failing at something you have a legitimate shot at succeeding in, versus putting yourself (or in the Eagles' case, someone else) in a position they're totally unqualified for. These sorts of errors, which should be obviously wrong from the beginning, are simply unacceptable.
Positioning for the Election Outcome
We have lots of investors currently trying to jockey their portfolios for who they believe could win this year's November presidential election. Some may guess right while others some may guess wrong when it comes to their trades, and how the markets will react. For short-term traders, this is what they live and eventually die for. For longer-term investors, making short-sighted moves just because of which candidate did better in a debate is not the way you ever want to approach your money decisions. The race is too tight for anyone to feel they can make a big score. All we know is there will be some sort of fallout, and with that, opportunities could arise. As always, we'll do our best to interpret the events as they unfold.
An Important Note Regarding the Best Dividend Stocks List
We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. If and when a stock is removed from the list, we will clearly state whether the stock should be sold (which is rare but occasionally will happen), or simply held in one's account until we see a better entry point or catalyst.
And here's one last thing to remember about what we do here at Dividend.com: it's not just the names that we recommend that can help you build wealth, but also the things we try to steer you away from that are just as important. Forget about speculative or penny stocks, chasing unprofitable IPOs, and listening to the manic talking heads in the business media!
A Dividend Capture Strategy for Active Investors
We now offer complete U.S. dividend data for all Dividend.com Premium members, so anyone that focuses on "Dividend Capture" trading strategies should have plenty of good stuff to research each day. Just check our enhanced Ex-Dividend Calendar , which is the best in the business, to search for upcoming payouts.
Speaking of dividend capture, Dividend.com Premium members can also access a 9-page report we published on the essential elements to any successful dividend capture strategy. Be sure to check it out here on the Premium homepage .
Thanks for reading everybody. I'll see you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On the flip side, investors were not as pleased with the earnings results from companies such as IBM Corp ( IBM ), Intel Corp ( INTC ), Stanley Black & Decker ( SWK ), and Abbott Labs ( ABT ). Wrong Person for the Job Yesterday was a big day for fans of the Philadelphia Eagles football team, which decided to shake things up mid-season, firing their defensive coordinator Juan Castillo. You'd be surprised how often individuals make similar decisions when it comes to money-related matters, whether it is bad investment ideas, mediocre career choices leading to unambitious work, listening to unreliable information on buying a business they have little to no experience being in, and so on. | On the flip side, investors were not as pleased with the earnings results from companies such as IBM Corp ( IBM ), Intel Corp ( INTC ), Stanley Black & Decker ( SWK ), and Abbott Labs ( ABT ). For all the recent dividend stock earnings reports and much more, be sure to check out The Dividend Daily . Wrong Person for the Job Yesterday was a big day for fans of the Philadelphia Eagles football team, which decided to shake things up mid-season, firing their defensive coordinator Juan Castillo. | On the flip side, investors were not as pleased with the earnings results from companies such as IBM Corp ( IBM ), Intel Corp ( INTC ), Stanley Black & Decker ( SWK ), and Abbott Labs ( ABT ). Wrong Person for the Job Yesterday was a big day for fans of the Philadelphia Eagles football team, which decided to shake things up mid-season, firing their defensive coordinator Juan Castillo. An Important Note Regarding the Best Dividend Stocks List We want to make sure everyone understands that the stocks on our Best Dividend Stocks List are the names we currently like for new investor capital, regardless of what date the stock was first recommended on. | On the flip side, investors were not as pleased with the earnings results from companies such as IBM Corp ( IBM ), Intel Corp ( INTC ), Stanley Black & Decker ( SWK ), and Abbott Labs ( ABT ). If you dig deeper and follow sports like I do, you will soon see the team made a tremendous blunder in putting Castillo in the position he was in to begin with. These sorts of errors, which should be obviously wrong from the beginning, are simply unacceptable. |
34381.0 | 2012-10-16 00:00:00 UTC | Stock Market News for October 16, 2012 - Market News | ABT | https://www.nasdaq.com/articles/stock-market-news-for-october-16-2012-market-news-2012-10-16 | nan | nan | Strong September retail sales data coupled with better-than-expected quarterly results by Citigroup drove the benchmarks into the positive territory yesterday. The positive tone helped benchmarks to rebound from its previous week's losses and guided Dow to register its biggest gain in one month. Financial sectors and health care sectors were the major gainers yesterday. However, investors remained watchful about Spain's bailout.
The Dow Jones Industrial Average (DJI) rose 0.7% to close the day at 13,424.23. The Standard & Poor 500 (S&P 500) climbed 0.8% to finish yesterday's trading session at 1,440.13. The tech-laden Nasdaq Composite Index surged 0.7% to end at 3,064.18. The fear-gauge CBOE Volatility Index (VIX) was down by 5.4% to settle at 15.27. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.9 billion shares, slightly lower than year-on-year daily average of 6.52 billion shares. The advancing stocks outran the declining stocks on the NYSE in the ratio 2 to 1.
The Street enjoyed a bullish sentiment from the very beginning of the trading session banking on a couple of positive news. The U.S. Census Bureau released its retail sales data, which revealed that the retail sales rose 1.1% to $412.9 billion in September, beating the consensus estimates of 0.8%. According to the government, the retail sales gains in August and September were the largest ones since October 2010. Separately, Retail trade sales gained 1.2% from August and 5.3% from year-ago period. The nonstore retail sales jumped 15.0% from September 2011.
The rise in retail sales helped the Consumer Discretionary SPDR to climb 1.0% yesterday. Stocks such as Wal-Mart Stores, Inc. (NYSE: WMT ), PriceSmart, Inc. (NASDAQ: PSMT ), Sears Holdings Corporation (NASDAQ: SHLD ), Target Corporation (NYSE: TGT ) and Big Lots, Inc. (NYSE: BIG ) rose 1.8%, 0.8%, 0.7%, 0.5% and 2.6%, respectively.
Meanwhile, Citigroup Inc. (NYSE: C ), the third-largest U.S. bank, reported its third-quarter earnings results beating the analysts' estimates. Citigroup's shares surged 5.5% following the announcement of the earnings results; the biggest advance since March. The company's results were boosted by $582 million tax benefit, increase in bond-trading revenue and surge in mortgage lending. The other two financial bellwethers, JPMorgan Chase & Co (NYSE: JPM ) and Wells Fargo & Company (NYSE: WFC ), had also reported better-than-expected results last Friday.
Financial Select Sector SPDR surged 1.1% after the encouraging result. Financial stocks such as Morgan Stanley (NYSE: MS ), JPM, Goldman Sachs Group, Inc. (NYSE: GS ) and Bank of America Corp (NYSE: BAC ) surged 2.5%, 1.8%, 3.6% and 3.5%, respectively.
Coming to the healthcare sector, it enjoyed decent gains and remained the top performer in S&P 500. Eli Lilly & Co. (NYSE: LLY ) gained 4.1% following the news that its potential stomach cancer treatment had achieved the goal for improving the patient survival. Whereas, Abbott Laboratories's (NYSE: ABT ) experimental hepatitis C candidate showed positive signs. The news pushed shares of Abbott Laboratories up by 4.0%. Stocks such as Pfizer Inc. (NYSE: PFE ), Merck & Co., Inc. (NYSE: MRK ) and Bristol Myers Squibb Co. (NYSE: BMY ) gained 1.8%, 2.1% and 2.5%, respectively.
On the international front, investors remained watchful about developments related to Spain's bailout. According to a Euro-zone official, Spain could ask for bailout next month. On the other hand, China's rate of inflation has come down to 1.9% in September from 2.0% the month before.
ABBOTT LABS (ABT): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
BIG LOTS INC (BIG): Free Stock Analysis Report
BRISTOL-MYERS (BMY): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
PRICESMART INC (PSMT): Free Stock Analysis Report
SEARS HLDG CP (SHLD): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Whereas, Abbott Laboratories's (NYSE: ABT ) experimental hepatitis C candidate showed positive signs. ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BIG LOTS INC (BIG): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report PRICESMART INC (PSMT): Free Stock Analysis Report SEARS HLDG CP (SHLD): Free Stock Analysis Report TARGET CORP (TGT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Strong September retail sales data coupled with better-than-expected quarterly results by Citigroup drove the benchmarks into the positive territory yesterday. | ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BIG LOTS INC (BIG): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report PRICESMART INC (PSMT): Free Stock Analysis Report SEARS HLDG CP (SHLD): Free Stock Analysis Report TARGET CORP (TGT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Whereas, Abbott Laboratories's (NYSE: ABT ) experimental hepatitis C candidate showed positive signs. Stocks such as Wal-Mart Stores, Inc. (NYSE: WMT ), PriceSmart, Inc. (NASDAQ: PSMT ), Sears Holdings Corporation (NASDAQ: SHLD ), Target Corporation (NYSE: TGT ) and Big Lots, Inc. (NYSE: BIG ) rose 1.8%, 0.8%, 0.7%, 0.5% and 2.6%, respectively. | ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BIG LOTS INC (BIG): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report PRICESMART INC (PSMT): Free Stock Analysis Report SEARS HLDG CP (SHLD): Free Stock Analysis Report TARGET CORP (TGT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Whereas, Abbott Laboratories's (NYSE: ABT ) experimental hepatitis C candidate showed positive signs. The U.S. Census Bureau released its retail sales data, which revealed that the retail sales rose 1.1% to $412.9 billion in September, beating the consensus estimates of 0.8%. | Whereas, Abbott Laboratories's (NYSE: ABT ) experimental hepatitis C candidate showed positive signs. ABBOTT LABS (ABT): Free Stock Analysis Report BANK OF AMER CP (BAC): Free Stock Analysis Report BIG LOTS INC (BIG): Free Stock Analysis Report BRISTOL-MYERS (BMY): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report GOLDMAN SACHS (GS): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report LILLY ELI & CO (LLY): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report MORGAN STANLEY (MS): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report PRICESMART INC (PSMT): Free Stock Analysis Report SEARS HLDG CP (SHLD): Free Stock Analysis Report TARGET CORP (TGT): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Strong September retail sales data coupled with better-than-expected quarterly results by Citigroup drove the benchmarks into the positive territory yesterday. |
34382.0 | 2012-10-16 00:00:00 UTC | Pre-Market Earnings Report for October 17, 2012 : ABT, PEP, BAC, USB, HAL, BLK, BK, ASML, STJ, MTB, SWK, NTRS | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-october-17-2012-abt-pep-bac-usb-hal-blk-bk-asml-stj-mtb-swk | nan | nan | The following companies are expected to report earnings prior to market open on 10/17/2012. Visit our Earnings Calendar for a full list of expected earnings releases.
Abbott Laboratories ( ABT ) is reporting for the quarter ending September 30, 2012. The large cap pharmaceutical company's consensus earnings per share forecast from the 14 analysts that follow the stock is $1.28. This value represents a 8.47% increase compared to the same quarter last year. In the past year ABT has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 0.82%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 14.24 vs. an industry ratio of 14.50.
Pepsico, Inc. ( PEP ) is reporting for the quarter ending September 30, 2012. The beverages company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.16. This value represents a -11.45% decrease compared to the same quarter last year. In the past year PEP has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.75%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for PEP is 17.33 vs. an industry ratio of 23.70.
Bank of America Corporation ( BAC ) is reporting for the quarter ending September 30, 2012. The bank company's consensus earnings per share forecast from the 16 analysts that follow the stock is $-0.05. This value represents a -117.86% decrease compared to the same quarter last year. BAC missed the consensus earnings per share in the 4th calendar quarter by -34.78%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for BAC is 26.22 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
U.S. Bancorp ( USB ) is reporting for the quarter ending September 30, 2012. The bank company's consensus earnings per share forecast from the 26 analysts that follow the stock is $0.73. This value represents a 14.06% increase compared to the same quarter last year. In the past year USB has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.9%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for USB is 11.84 vs. an industry ratio of 12.10.
Halliburton Company ( HAL ) is reporting for the quarter ending September 30, 2012. The oil (field services) company's consensus earnings per share forecast from the 24 analysts that follow the stock is $0.68. This value represents a -27.66% decrease compared to the same quarter last year. In the past year HAL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 6.67%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for HAL is 10.85 vs. an industry ratio of 20.80.
BlackRock, Inc. ( BLK ) is reporting for the quarter ending September 30, 2012. The finance/investment management company's consensus earnings per share forecast from the 16 analysts that follow the stock is $3.28. This value represents a 15.90% increase compared to the same quarter last year. In the past year BLK has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.31%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for BLK is 14.08 vs. an industry ratio of 16.60.
Bank Of New York Mellon Corporation ( BK ) is reporting for the quarter ending September 30, 2012. The bank company's consensus earnings per share forecast from the 16 analysts that follow the stock is $0.54. This value represents a 1.89% increase compared to the same quarter last year. BK missed the consensus earnings per share in the 4th calendar quarter by -11.11%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for BK is 11.32 vs. an industry ratio of 12.10.
ASML Holding N.V. ( ASML ) is reporting for the quarter ending September 30, 2012. The capital goods company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.86. This value represents a -24.56% decrease compared to the same quarter last year. In the past year ASML has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ASML is 15.22 vs. an industry ratio of 15.40.
St. Jude Medical, Inc. ( STJ ) is reporting for the quarter ending September 30, 2012. The medical products company's consensus earnings per share forecast from the 18 analysts that follow the stock is $0.80. This value represents a 2.56% increase compared to the same quarter last year. In the past year STJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 1.15%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for STJ is 12.41 vs. an industry ratio of -10.30, implying that they will have a higher earnings growth than their competitors in the same industry.
M&T Bank Corporation ( MTB ) is reporting for the quarter ending September 30, 2012. The bank company's consensus earnings per share forecast from the 19 analysts that follow the stock is $1.84. This value represents a 20.26% increase compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for MTB is 14.05 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Stanley Black & Decker, Inc. ( SWK ) is reporting for the quarter ending September 30, 2012. The machinery company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.45. This value represents a 8.21% increase compared to the same quarter last year. SWK missed the consensus earnings per share in the 2nd calendar quarter by -13.16%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for SWK is 12.95 vs. an industry ratio of 17.70.
Northern Trust Corporation ( NTRS ) is reporting for the quarter ending September 30, 2012. The bank company's consensus earnings per share forecast from the 17 analysts that follow the stock is $0.74. This value represents a 2.78% increase compared to the same quarter last year. NTRS missed the consensus earnings per share in the 2nd calendar quarter by -1.33%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for NTRS is 16.03 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ( ABT ) is reporting for the quarter ending September 30, 2012. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 14.24 vs. an industry ratio of 14.50. | Abbott Laboratories ( ABT ) is reporting for the quarter ending September 30, 2012. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 14.24 vs. an industry ratio of 14.50. | Abbott Laboratories ( ABT ) is reporting for the quarter ending September 30, 2012. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 14.24 vs. an industry ratio of 14.50. | In the past year ABT has beat the expectations every quarter. Abbott Laboratories ( ABT ) is reporting for the quarter ending September 30, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ABT is 14.24 vs. an industry ratio of 14.50. |
34383.0 | 2012-10-16 00:00:00 UTC | Abbott Reports Encouraging HCV Data - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbott-reports-encouraging-hcv-data-analyst-blog-2012-10-16 | nan | nan | Abbott Laboratories ( ABT ) recently announced promising data from the phase IIb Aviator trial evaluating the combination of ABT-450/r, ABT-267, ABT-333 and ribavirin for the treatment of patients suffering from hepatitis C (HCV). ABT-450/r (protease), ABT-267 (polymerase) and ABT-333 (NS5A) are also being evaluated in other clinical studies.
The combination regimen demonstrated impressive sustained virological response in genotype 1 (GT1) HCV patients at 12 weeks post treatment in treatment-naïve (99%) and null responders (93%). Investors have reacted positively with the share price up 4% on the news.
We note that a few companies have suffered hepatitis C related pipeline setback in the last few months. In August 2012, Idenix Pharmaceuticals, Inc. ( IDIX | Abbott Laboratories ( ABT ) recently announced promising data from the phase IIb Aviator trial evaluating the combination of ABT-450/r, ABT-267, ABT-333 and ribavirin for the treatment of patients suffering from hepatitis C (HCV). ABT-450/r (protease), ABT-267 (polymerase) and ABT-333 (NS5A) are also being evaluated in other clinical studies. The combination regimen demonstrated impressive sustained virological response in genotype 1 (GT1) HCV patients at 12 weeks post treatment in treatment-naïve (99%) and null responders (93%). | Abbott Laboratories ( ABT ) recently announced promising data from the phase IIb Aviator trial evaluating the combination of ABT-450/r, ABT-267, ABT-333 and ribavirin for the treatment of patients suffering from hepatitis C (HCV). ABT-450/r (protease), ABT-267 (polymerase) and ABT-333 (NS5A) are also being evaluated in other clinical studies. The combination regimen demonstrated impressive sustained virological response in genotype 1 (GT1) HCV patients at 12 weeks post treatment in treatment-naïve (99%) and null responders (93%). | Abbott Laboratories ( ABT ) recently announced promising data from the phase IIb Aviator trial evaluating the combination of ABT-450/r, ABT-267, ABT-333 and ribavirin for the treatment of patients suffering from hepatitis C (HCV). ABT-450/r (protease), ABT-267 (polymerase) and ABT-333 (NS5A) are also being evaluated in other clinical studies. The combination regimen demonstrated impressive sustained virological response in genotype 1 (GT1) HCV patients at 12 weeks post treatment in treatment-naïve (99%) and null responders (93%). | Abbott Laboratories ( ABT ) recently announced promising data from the phase IIb Aviator trial evaluating the combination of ABT-450/r, ABT-267, ABT-333 and ribavirin for the treatment of patients suffering from hepatitis C (HCV). ABT-450/r (protease), ABT-267 (polymerase) and ABT-333 (NS5A) are also being evaluated in other clinical studies. The combination regimen demonstrated impressive sustained virological response in genotype 1 (GT1) HCV patients at 12 weeks post treatment in treatment-naïve (99%) and null responders (93%). |
34384.0 | 2012-10-15 00:00:00 UTC | Abbott Labs Eyes Russian Pharmaceutical Market | ABT | https://www.nasdaq.com/articles/abbott-labs-eyes-russian-pharmaceutical-market-2012-10-15 | nan | nan | Abbott Labs ( ABT ) may be looking to acquire the manufacturing facilities of Russian drug maker Petrovax Pharm, according to a local newspaper. The news marks the company's growing focus in one of the fastest growing pharmaceutical markets. Abbott recently entered into a R&D deal in Russia to strengthen its presence in the rapidly growing emerging market.
Our price estimate for Abbott Labs stands at $67 , a slight discount to the current market price. The stock has appreciated more than 30% in the past year. We recently discussed the company's business model ( read here ) to see what factors could lead to an upside to the Trefis price estimate.
See our complete analysis for Abbott Labs
Russia: A Key Market For Growth
Abbott's management has oftentimes reiterated its intention to tap the high potential emerging markets as they are expected to grow at a faster pace than developed markets going forward. In the past few years, Abbott has made significant moves to expand its presence and product portfolio in many of the most populous and fastest-growing countries. The company has been building manufacturing facilities in Asia Pacific, including China and India. Russia, however, was off the radar until recently. Abbott's revenue from Russia is a meager $430 million in a market worth more than $16 billion even as most of the drugs sold in the country are from international companies. But, with the recent R&D deal and news of acquisition of Petrovax Pharm's manufacturing facilities in Russia, it seems the company is trying to make inroads into the country.
The pharmaceutical industry in Russia has seen double-digit growth rates in the last couple of years to reach nearly $16 billion in 2010. This trend is expected to continue at a higher pace as the Russian government continues to invest money to boost its pharmaceutical market. With the looming patent cliff and dim growth outlook in developed markets, pharmaceutical companies cannot afford to ignore Russia.
We believe the acquisition will complement Abbott's global presence and brand. Petrovax Pharm is the twelfth largest local drug manufacturer in Russia. By securing local manufacturing facilities, Abbott is trying to become localized in the Russian market and secure government orders which could reap benefits for the company in the long term.
Revenue from AndroGel, Synagis and other division was $9 billion in 2007 and soared to $11.5 billion in 2011. We expect these revenues will steadily increase going forward and eventually approach $16 billion by the end of the Trefis forecast period. The 2010 acquisitions of Solvay and Piramal Healthcare position Abbott well to capitalize on growth opportunities in these emerging markets. In 2011, emerging markets accounted for over 25% of the company's total revenue, and we expect this figure to increase going forward.
With Petrovax Pharm's present sales of $98 million coupled with price-to-sales multiples of 2-3 (as witnessed in the recent deals), the overall deal could be valued in the range of $190-290 million. While the sum may seem pricey for now should Russia be able to maintain historical double digit growth, in-line with the market expectations, Abbott will be able to recover most of it a short span of time.
Submit a Post at Trefis Powered by Data and Interactive Charts| Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 ) may be looking to acquire the manufacturing facilities of Russian drug maker Petrovax Pharm, according to a local newspaper. But, with the recent R&D deal and news of acquisition of Petrovax Pharm's manufacturing facilities in Russia, it seems the company is trying to make inroads into the country. While the sum may seem pricey for now should Russia be able to maintain historical double digit growth, in-line with the market expectations, Abbott will be able to recover most of it a short span of time. | Abbott Labs ( ABT ) may be looking to acquire the manufacturing facilities of Russian drug maker Petrovax Pharm, according to a local newspaper. But, with the recent R&D deal and news of acquisition of Petrovax Pharm's manufacturing facilities in Russia, it seems the company is trying to make inroads into the country. By securing local manufacturing facilities, Abbott is trying to become localized in the Russian market and secure government orders which could reap benefits for the company in the long term. | Abbott Labs ( ABT ) may be looking to acquire the manufacturing facilities of Russian drug maker Petrovax Pharm, according to a local newspaper. See our complete analysis for Abbott Labs Russia: A Key Market For Growth Abbott's management has oftentimes reiterated its intention to tap the high potential emerging markets as they are expected to grow at a faster pace than developed markets going forward. Abbott's revenue from Russia is a meager $430 million in a market worth more than $16 billion even as most of the drugs sold in the country are from international companies. | Abbott Labs ( ABT ) may be looking to acquire the manufacturing facilities of Russian drug maker Petrovax Pharm, according to a local newspaper. Abbott recently entered into a R&D deal in Russia to strengthen its presence in the rapidly growing emerging market. See our complete analysis for Abbott Labs Russia: A Key Market For Growth Abbott's management has oftentimes reiterated its intention to tap the high potential emerging markets as they are expected to grow at a faster pace than developed markets going forward. |
34385.0 | 2012-10-11 00:00:00 UTC | FDA Nod for Dexcom G4 Platinum - Analyst Blog | ABT | https://www.nasdaq.com/articles/fda-nod-for-dexcom-g4-platinum-analyst-blog-2012-10-11 | nan | nan | DexCom ( DXCM ), a provider of continuous glucose monitoring systems, recently announced that the U.S. Food and Drug Administration (FDA) has cleared its new continuous glucose monitoring system, the DexCom G4 Platinum. The company has started taking orders and will start shipments in the coming weeks.
DexCom received the CE Mark for its G4 system in June 2012 and already markets the product in the European Union as well as certain Latin American and Asian nations, where the CE Mark is recognized.
Clinical data validates the improved performance of G4 Platinum over the company's Seven Plus with a 19% increase in overall accuracy for glucose monitoring. Trials also indicate a 30% improvement in accuracy when blood glucose level is below 70mg/dl (for hypoglycemia relevance range).
The inbuilt features of the G4 Platinum make it the most innovative system for continuous glucose monitoring in the market. The increased accuracy for hypoglycemic range and ease of use will enhance the standard of care for diabetic patients.
Given | Clinical data validates the improved performance of G4 Platinum over the company's Seven Plus with a 19% increase in overall accuracy for glucose monitoring. The inbuilt features of the G4 Platinum make it the most innovative system for continuous glucose monitoring in the market. The increased accuracy for hypoglycemic range and ease of use will enhance the standard of care for diabetic patients. | DexCom ( DXCM ), a provider of continuous glucose monitoring systems, recently announced that the U.S. Food and Drug Administration (FDA) has cleared its new continuous glucose monitoring system, the DexCom G4 Platinum. Clinical data validates the improved performance of G4 Platinum over the company's Seven Plus with a 19% increase in overall accuracy for glucose monitoring. The inbuilt features of the G4 Platinum make it the most innovative system for continuous glucose monitoring in the market. | DexCom ( DXCM ), a provider of continuous glucose monitoring systems, recently announced that the U.S. Food and Drug Administration (FDA) has cleared its new continuous glucose monitoring system, the DexCom G4 Platinum. Clinical data validates the improved performance of G4 Platinum over the company's Seven Plus with a 19% increase in overall accuracy for glucose monitoring. The inbuilt features of the G4 Platinum make it the most innovative system for continuous glucose monitoring in the market. | The company has started taking orders and will start shipments in the coming weeks. Clinical data validates the improved performance of G4 Platinum over the company's Seven Plus with a 19% increase in overall accuracy for glucose monitoring. The inbuilt features of the G4 Platinum make it the most innovative system for continuous glucose monitoring in the market. |
34386.0 | 2012-10-09 00:00:00 UTC | Alexandria Pens New Lease Deals - Analyst Blog | ABT | https://www.nasdaq.com/articles/alexandria-pens-new-lease-deals-analyst-blog-2012-10-09 | nan | nan | Pasadena, California-based real estate investment trust (REIT), Alexandria Real Estate Equities, Inc. (ARE) , recently entered into long-term agreements with four prestigious companies. The agreements are intended to pre-lease a total of 162,000 square feet at a property - 400 Technology Square - located in Cambridge, Massachusetts.
The 400 Technology square comprises of rentable space of around 194,776 square feet and is one of the seven facilities located at the company's state-of-the-art laboratory/office park-like community known as Alexandria Technology Square. The acquired property is currently in the final stage of redevelopment, which is expected to be completed later this year. Upon completion, the total square footage of the campus will be increased by around 18,000 square feet.
Alexandria Technology Square is located in the Kendall Square neighborhood of Cambridge and consists of seven buildings spanning 1.2 million square feet of office, lab and retail space. Strategically located adjacent to the Massachusetts Institute of Technology (MIT), and near the Broad Institute and the Whitehead Institute, the property is well connected to various residential areas, restaurants, shops, and conveniences.
The property is already occupied by leading life science and advanced technology companies such as - Novartis AG (NVS) , GlaxoSmithKline plc (GSK) , H3 Biomedicine Inc. and the Massachusetts Biotechnology Council. Following the lease agreements, the property will now have four more well- known firms as tenants. These include - The Ragon Institute of MGH, MIT and Harvard, Epizyme, Inc., Warp Drive Bio, LLC and Aramco Services Company.
Alexandria Real Estate primarily focuses on leasing properties situated in key cluster submarkets to top-notch organizations, mainly associated with the life science industry. The Greater Boston area which houses Cambridge is among Alexandria Real Estate's core operational markets cluster.
The company owns and operates approximately 3.7 million square feet of office and high-quality laboratory space in close proximity to world known academic and medical institutions. It has around 100 client tenants in the area including the likes of Abbott Laboratories (ABT) , Biogen Idec Inc. (BIIB) , Quest Diagnostics Inc. (DGX) , Thermo Fisher Scientific Inc. (TMO) and others.
Recently, Alexandria Real Estate leased a property located at another core operational market cluster - Suburban Washington D.C. The company inked a long-term lease deal with National Institutes of Health's (NIH) National Center for Advancing Translational Sciences (NCATS) for 75,000 square feet of space at Alexandria's Shady Grove Life Sciences Center in Maryland.
The company is expected to release its third-quarter 2012 results on October 29, 2012. The Zacks Consensus Estimate for third quarter FFO (fund from operations) is currently pegged at $1.08 per share.
We currently have a long-term Neutral recommendation on the stock. It also carries a short-term Zacks #3 Rank (Hold).
Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.
ABBOTT LABS (ABT): Free Stock Analysis Report
ALEXANDRIA REAL (ARE): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
QUEST DIAGNOSTC (DGX): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
THERMO FISHER (TMO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has around 100 client tenants in the area including the likes of Abbott Laboratories (ABT) , Biogen Idec Inc. (BIIB) , Quest Diagnostics Inc. (DGX) , Thermo Fisher Scientific Inc. (TMO) and others. ABBOTT LABS (ABT): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report QUEST DIAGNOSTC (DGX): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report THERMO FISHER (TMO): Free Stock Analysis Report To read this article on Zacks.com click here. The property is already occupied by leading life science and advanced technology companies such as - Novartis AG (NVS) , GlaxoSmithKline plc (GSK) , H3 Biomedicine Inc. and the Massachusetts Biotechnology Council. | It has around 100 client tenants in the area including the likes of Abbott Laboratories (ABT) , Biogen Idec Inc. (BIIB) , Quest Diagnostics Inc. (DGX) , Thermo Fisher Scientific Inc. (TMO) and others. ABBOTT LABS (ABT): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report QUEST DIAGNOSTC (DGX): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report THERMO FISHER (TMO): Free Stock Analysis Report To read this article on Zacks.com click here. Recently, Alexandria Real Estate leased a property located at another core operational market cluster - Suburban Washington D.C. | ABBOTT LABS (ABT): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report QUEST DIAGNOSTC (DGX): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report THERMO FISHER (TMO): Free Stock Analysis Report To read this article on Zacks.com click here. It has around 100 client tenants in the area including the likes of Abbott Laboratories (ABT) , Biogen Idec Inc. (BIIB) , Quest Diagnostics Inc. (DGX) , Thermo Fisher Scientific Inc. (TMO) and others. The 400 Technology square comprises of rentable space of around 194,776 square feet and is one of the seven facilities located at the company's state-of-the-art laboratory/office park-like community known as Alexandria Technology Square. | ABBOTT LABS (ABT): Free Stock Analysis Report ALEXANDRIA REAL (ARE): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report QUEST DIAGNOSTC (DGX): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report THERMO FISHER (TMO): Free Stock Analysis Report To read this article on Zacks.com click here. It has around 100 client tenants in the area including the likes of Abbott Laboratories (ABT) , Biogen Idec Inc. (BIIB) , Quest Diagnostics Inc. (DGX) , Thermo Fisher Scientific Inc. (TMO) and others. The agreements are intended to pre-lease a total of 162,000 square feet at a property - 400 Technology Square - located in Cambridge, Massachusetts. |
34387.0 | 2012-10-01 00:00:00 UTC | Novartis Progresses with AIN457 - Analyst Blog | ABT | https://www.nasdaq.com/articles/novartis-progresses-with-ain457-analyst-blog-2012-10-01 | nan | nan | Switzerland-based pharmaceutical company, Novartis AG ( NVS ) recently announced phase II data on its pipeline candidate, AIN457 (secukinumab), which is being developed for the treatment of moderate-to-severe plaque psoriasis on the hands, feet and nails.
Data from the double-blind phase II study showed that during the first month, weekly treatment with AIN457 helped reduce pain associated with moderate-to-severe plaque psoriasis on the hand and feet almost three times more than placebo (54.3% versus 19.2%).
Additionally, after 12 weeks of treatment with AIN457, 39% of the patients experienced either "clear" or "minimal" psoriasis. AIN457 was also found to reduce signs and symptoms of finger nail psoriasis in patients, when compared to placebo.
Further data presented at the European Academy of Dermatology and Venereology (EADV), by Novartis, for the relief in signs and symptoms of moderate-to-severe plaque psoriasis showed that 12 weeks of treatment with AIN457, improved the quality of life (skin-related) in 25 times more patients in comparison to placebo.
Novartis stated in its press release that plaque psoriasis affects about 2% of the world's population, out of which more than one third of patients suffer from its moderate-to-severe form.
Novartis is currently on track with pivotal phase III studies on AIN457 and expects data in 2013. The company is planning to file for regulatory approval once phase III results are available.
Novartis is also studying AIN457 in phase II trials for the treatment of multiple sclerosis.
We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. and Amgen Inc. 's ( PFE / AMGN ) Enbrel.
Our Recommendation
Currently, we have a Neutral recommendation on Novartis. The company carries a Zacks #3 Rank ("Hold" rating) in the short run.
ABBOTT LABS (ABT): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. and Amgen Inc. 's ( PFE / AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Switzerland-based pharmaceutical company, Novartis AG ( NVS ) recently announced phase II data on its pipeline candidate, AIN457 (secukinumab), which is being developed for the treatment of moderate-to-severe plaque psoriasis on the hands, feet and nails. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. and Amgen Inc. 's ( PFE / AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Further data presented at the European Academy of Dermatology and Venereology (EADV), by Novartis, for the relief in signs and symptoms of moderate-to-severe plaque psoriasis showed that 12 weeks of treatment with AIN457, improved the quality of life (skin-related) in 25 times more patients in comparison to placebo. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. and Amgen Inc. 's ( PFE / AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Switzerland-based pharmaceutical company, Novartis AG ( NVS ) recently announced phase II data on its pipeline candidate, AIN457 (secukinumab), which is being developed for the treatment of moderate-to-severe plaque psoriasis on the hands, feet and nails. | We note already approved drugs for the treatment of moderate-to-severe plaque psoriasis include Johnson & Johnson 's ( JNJ ) Stelara, Abbott Laboratories ( ABT ) Humira and Pfizer Inc. and Amgen Inc. 's ( PFE / AMGN ) Enbrel. ABBOTT LABS (ABT): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Data from the double-blind phase II study showed that during the first month, weekly treatment with AIN457 helped reduce pain associated with moderate-to-severe plaque psoriasis on the hand and feet almost three times more than placebo (54.3% versus 19.2%). |
34388.0 | 2012-10-01 00:00:00 UTC | Why Barron's Article on Opko Health is Myopic | ABT | https://www.nasdaq.com/articles/why-barrons-article-opko-health-myopic-2012-10-01 | nan | nan | Submitted by Mike Anthony as part of our contributors program .
The feature story in this weekend's Barron's magazine regarding Opko Health ( OPK ) is superficial and parrots an elementary argument that has been unpersuasive for years. I will justify my argument in the article that follows, explaining to readers why shorts will likely get squeezed in Opko Health, just as they have been squeezed in every major company led by its CEO, Dr. Phillip Frost.
Arguments coming from Barron's automatically receive the benefit of massive distribution, an affluent readership, and the "steamroller effect" of Wall Street's most powerful weekend publication. Barron's circulates to over 300,000 households holding an average net worth of $3 million each . According to a 2010 survey, 96% of readers take action after reading Barron's (many by buying or selling securities featured in the magazine).
As we all know, however, might does not make right. To the contrary, in Sweating Out the Results of a Blood Test, author Bill Alpert abuses the marketing influence of Barron's while failing to justify his conclusion. Below, I explain that his article makes an intellectually disappointing argument that has been parroted for many years.
Alpert's Article Is Superficial
The depth of Alpert's analysis reflects the self-evidently brief amount of time he spent reflecting on Opko Health. This is not a personal attack- to see the shallowness for yourself, search online for "short Opko." You will effortlessly retrieve thousands of essentially identical analyses. Search and see for yourself. What is the most publicized argument for shorting Opko Health? I have heard it repeated so often that I could recite it backwards: Opko Health has a high price-to-sales ratio. In other words, if you evaluate Opko Health shares as you would for a typical business, basic analysis will show that it is overvalued in proportion to near-term revenue.
Of course, this makes me want to slam my face into my palm.
This mantric conclusion inexplicably causes no less glee for shorts even upon its thousandth repetition. Honestly, I almost do not care to correct them anymore. Facepalms are easier. Here is why.
Why Skimming the Surface Is So Alluring
In his analysis, Alpert provides a glib overview of Opko Health and its CEO, Dr. Phillip Frost. Quickly glossing over the largest systematic insider buy program in stock market history and the 68-fold rally in Dr. Frost's prior company (among other trivial factoids), Alpert then presents the meat of his article by evaluating technical problems within a couple of Opko Health's products.
I will spare you the paragraphs of analysis and jump to the conclusion (spoiler alert!): some Opko Health products have been discontinued and others might have marginally lower sales than had been originally forecasted. Alpert concludes by insinuating that investors should pass on Opko Health until revenues increase: "prospective investors might want to wait for the validation that comes with real fundamentals."
So, why is my face in my palm?
Simple. Any college freshman can look at an income statement and note that $40 million in annual revenues with a $1.25 billion market capitalization equates to an overvalued share price by conventional metrics. This calculation requires no more than 30 seconds of thought.
If the college student were to reflect for a while, however, he or she might realize that Opko Health cannot be appropriately analyzed using a price-to-sales ratio.
Indeed, the vast majority of Opko Health operations are in research and development. Why should an analyst therefore rely on current or near-term revenues when calculating fair value? No competent analysts are forecasting revenue numbers for 2013 or 2014 that would satisfy a conventional price-to-sales ratio for Opko Health. Perhaps, then, the student might look ahead in the textbook to more advanced valuation methods?
Opko Health is a multinational conglomerate with over 220 employees. It generates about $40 million in annual revenues despite the vast majority of its operations focusing on research and development. Cash flow is healthy, burn rate is minimal, debt levels are nominal, and insider buying consistently tops the charts. So although the share price seems high based on a traditional analysis, the company does not have any threats from internal finances.
Moreover, the company's structure is not hierarchical and does not align with typical operating structures. Instead, it functions more as a bank of businesses- a holding company.
Aha. Opko Health Is a Holding Company. There It Is.
Alpert's article in Barron's began and ended with the same, superficial perspective: If Opko Health's shares traded like a traditional company, they would trade at a lower price per share. Thank you, Alpert. Thank you for telling us, again, that Opko Health shares have a high price-to-sales ratio. If it were not for your article, we would only have had a thousand other articles with the exact same conclusion.
Alpert failed to analyze Opko Health as a holding company. This would have required a complete rewrite of the article. A holding company cannot be analyzed like an operating business, just as a bank cannot be analyzed like a mining company.
Conclusion
* Alpert failed to reflect on the implications of Opko Health's corporate structure as a holding company, which would have fundamentally altered his entire perspective on the valuation of long-term opportunities to serve human health versus his near-term revenue estimates.
* Alpert inappropriately chose sensational valuation metrics for persuasive effect rather than useful analysis.
* Alpert failed to address the years of real market prices that have disproved his theory of "it's not possible through fundamental research to say that Opko Health is worth more than a billion dollars."
* Alpert failed to look beyond superficial financial statements and valuation theories.
* Alpert focused on marginal revenue reductions for a few of Opko Heath's products while neglecting dozens of other multi-million dollar opportunities (and some billion dollar opportunities) incubating at Opko Health.
Ultimately, Alpert did little more than parrot an elementary argument that has been unpersuasive to the market for years. Opko Health is a health sector holding company that is currently trading at $1.25 billion. It is not trading at that valuation because of current or near-term revenue. It is trading at that level because investors vote with real money (not commentary) that Opko Health owns and is building long-term value.
Opko Health is the final life work (and likely gift to the world) of one of the world's most successful pharmaceutical entrepreneurs who is quite pleased with prevailing market prices, happily buying tens of thousands of shares every day and shrinking the supply for shorts. As he approaches retirement, perhaps Alpert should recall those trivial factoids about Dr. Frost's long-term executive performance. What if Dr. Frost decided to buy all the shares he was planning to buy over the remainder of his lifetime in the course of a few weeks?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Arguments coming from Barron's automatically receive the benefit of massive distribution, an affluent readership, and the "steamroller effect" of Wall Street's most powerful weekend publication. Frost's prior company (among other trivial factoids), Alpert then presents the meat of his article by evaluating technical problems within a couple of Opko Health's products. Any college freshman can look at an income statement and note that $40 million in annual revenues with a $1.25 billion market capitalization equates to an overvalued share price by conventional metrics. | The feature story in this weekend's Barron's magazine regarding Opko Health ( OPK ) is superficial and parrots an elementary argument that has been unpersuasive for years. Alpert's article in Barron's began and ended with the same, superficial perspective: If Opko Health's shares traded like a traditional company, they would trade at a lower price per share. Conclusion * Alpert failed to reflect on the implications of Opko Health's corporate structure as a holding company, which would have fundamentally altered his entire perspective on the valuation of long-term opportunities to serve human health versus his near-term revenue estimates. | Alpert's Article Is Superficial The depth of Alpert's analysis reflects the self-evidently brief amount of time he spent reflecting on Opko Health. Alpert's article in Barron's began and ended with the same, superficial perspective: If Opko Health's shares traded like a traditional company, they would trade at a lower price per share. Conclusion * Alpert failed to reflect on the implications of Opko Health's corporate structure as a holding company, which would have fundamentally altered his entire perspective on the valuation of long-term opportunities to serve human health versus his near-term revenue estimates. | What is the most publicized argument for shorting Opko Health? Thank you, Alpert. If it were not for your article, we would only have had a thousand other articles with the exact same conclusion. |
34389.0 | 2012-09-26 00:00:00 UTC | Ex-US Launch for Abbott's Absorb - Analyst Blog | ABT | https://www.nasdaq.com/articles/ex-us-launch-for-abbotts-absorb-analyst-blog-2012-09-26 | nan | nan | Abbott Labs ( ABT ) recently announced the launch of Absorb, the world's first drug eluting bioresorbable vascular scaffold (BVS), in Europe and parts of Asia Pacific and Latin America.
Absorb, a first-of-its-kind device, is approved for the treatment of coronary artery disease (CAD).
Like a metallic stent, Absorb restores blood flow to the heart. However, unlike a metallic stent, Absorb dissolves in the body, thereby allowing the treated vessel to work in a more natural manner given the absence of a permanent metallic stent.
According to Abbott Labs, a dissolving scaffold could have certain long-term advantages including expansion and contraction of vessels as required and reduction in the need for long-term treatment with blood thinners. Moreover, the absence of a permanent implant could make future interventions smoother.
We note that Absorb is currently under development in the US. Apart from Europe, parts of Asia Pacific (including Hong Kong, Singapore, Malaysia and New Zealand) and parts of Latin America, Absorb is available in the Middle East.
The launch of Absorb should boost the performance of Abbott Labs' vascular devices segment which posted sales of $766 million in the second quarter of 2012.
Meanwhile, Abbott Labs has been working on expanding its position in the $2 billion plus core coronary market. The company's next-generation balloon dilatation catheter, TREK, is already available in the US, Europe and Japan. Abbott Labs is currently working on launching additional balloon catheters and next-generation guide wires in the coming years.
Neutral on Abbott Labs
We currently have a Neutral recommendation on Abbott Labs, which carries a Zacks #3 Rank (short-term 'Hold' rating). Abbott Labs remains on track to split into two separate publicly traded companies by year end. While one company will deal in diversified medical products, the other (AbbVie) will focus on research-based pharmaceuticals. We are positive on the split which should allow the two separate entities to perform in a more focused manner. Humira continues to perform well and this should reduce concerns regarding AbbVie's growth prospects.
ABBOTT LABS (ABT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs ( ABT ) recently announced the launch of Absorb, the world's first drug eluting bioresorbable vascular scaffold (BVS), in Europe and parts of Asia Pacific and Latin America. ABBOTT LABS (ABT): Free Stock Analysis Report To read this article on Zacks.com click here. The launch of Absorb should boost the performance of Abbott Labs' vascular devices segment which posted sales of $766 million in the second quarter of 2012. | Abbott Labs ( ABT ) recently announced the launch of Absorb, the world's first drug eluting bioresorbable vascular scaffold (BVS), in Europe and parts of Asia Pacific and Latin America. ABBOTT LABS (ABT): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Europe, parts of Asia Pacific (including Hong Kong, Singapore, Malaysia and New Zealand) and parts of Latin America, Absorb is available in the Middle East. | Abbott Labs ( ABT ) recently announced the launch of Absorb, the world's first drug eluting bioresorbable vascular scaffold (BVS), in Europe and parts of Asia Pacific and Latin America. ABBOTT LABS (ABT): Free Stock Analysis Report To read this article on Zacks.com click here. The launch of Absorb should boost the performance of Abbott Labs' vascular devices segment which posted sales of $766 million in the second quarter of 2012. | Abbott Labs ( ABT ) recently announced the launch of Absorb, the world's first drug eluting bioresorbable vascular scaffold (BVS), in Europe and parts of Asia Pacific and Latin America. ABBOTT LABS (ABT): Free Stock Analysis Report To read this article on Zacks.com click here. However, unlike a metallic stent, Absorb dissolves in the body, thereby allowing the treated vessel to work in a more natural manner given the absence of a permanent metallic stent. |
34390.0 | 2012-09-21 00:00:00 UTC | Myriad Remains Neutral - Analyst Blog | ABT | https://www.nasdaq.com/articles/myriad-remains-neutral-analyst-blog-2012-09-21 | nan | nan | We have reaffirmed our Neutral recommendation on Myriad Genetics ( MYGN ) with a target price of $29.00.
The company reported earnings of 34 cents per share in the first quarter of fiscal 2013, which met the Zacks Consensus Estimate while revenues of $133 million exceeded nominally.
While Myriad markets several molecular diagnostic products, the company's flagship product is Bracanalysis (representing 81.7% of total revenues during the last reported quarter), which studies BRCA1 and BRCA2 genes to assess a woman's risk of developing hereditary breast and ovarian cancers. This test recorded a 17% jump in revenues to $108.7 million during the quarter. Moreover, revenues derived from Colaris and Colaris AP, which assess a patient's risk of developing hereditary colorectal and uterine cancers, increased 51% to $11.5 million.
Bracanalysis has been recording robust growth over the past few quarters on the back of increasing penetration in both Oncology and Women's Health markets. The company's continuous focus on penetrating the segments of ovarian cancer, carcinoma in situ and triple negative breast cancer indications has increased the addressable oncology market for Bracanalysis by $200 million to an annual market potential of $650 million. Revenues from these three indications grew 45% during the reported quarter. To further expand in the Women's Health market, Myriad is looking to add new territories and implement better interactive media campaigns. Besides, significant growth opportunity lies in the Women's Health market for Bracanalysis due to the low penetration level (7%).
The company's expansion plan in Europe is on track with its goal to record $15 million of revenues from international operations by fiscal 2016. The company's laboratory in Munich, Germany has been operational since January and is capable of generating $50 million in revenues each year within the next five years. Attempts are being made to build infrastructure in the five major markets of Germany, France, Italy, Spain and Switzerland. While reimbursement for Bracanalysis, Colaris and Colaris AP has already been received in these markets, Myriad is working to receive reimbursement for Prolaris. The company is confident about the potential of Prolaris in Europe and has undertaken several key clinical studies in prostate cancer to drive adoption and obtain reimbursement for the test.
We are also impressed by Myriad's focus on establishing itself as a strong player in the companion diagnostic market. The company has agreements with several pharmaceutical companies including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), and AstraZeneca ( AZN ), among others.
Meanwhile, due to the company's focus on international expansion and pipeline development, expenses are on the rise. This is reflected in the decline in operating margin during the reported quarter. Moreover, several ongoing tests are in the early-to-middle stages of development and, hence, some years away from commercialization.
Our recommendation is backed by a Zacks #3 Rank (Hold) in the short term.
ABBOTT LABS (ABT): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MYRIAD GENETICS (MYGN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has agreements with several pharmaceutical companies including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), and AstraZeneca ( AZN ), among others. ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report To read this article on Zacks.com click here. The company reported earnings of 34 cents per share in the first quarter of fiscal 2013, which met the Zacks Consensus Estimate while revenues of $133 million exceeded nominally. | The company has agreements with several pharmaceutical companies including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), and AstraZeneca ( AZN ), among others. ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report To read this article on Zacks.com click here. While Myriad markets several molecular diagnostic products, the company's flagship product is Bracanalysis (representing 81.7% of total revenues during the last reported quarter), which studies BRCA1 and BRCA2 genes to assess a woman's risk of developing hereditary breast and ovarian cancers. | ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report To read this article on Zacks.com click here. The company has agreements with several pharmaceutical companies including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), and AstraZeneca ( AZN ), among others. While Myriad markets several molecular diagnostic products, the company's flagship product is Bracanalysis (representing 81.7% of total revenues during the last reported quarter), which studies BRCA1 and BRCA2 genes to assess a woman's risk of developing hereditary breast and ovarian cancers. | The company has agreements with several pharmaceutical companies including Abbott Laboratories ( ABT ), Johnson & Johnson ( JNJ ), and AstraZeneca ( AZN ), among others. ABBOTT LABS (ABT): Free Stock Analysis Report ASTRAZENECA PLC (AZN): Free Stock Analysis Report JOHNSON & JOHNS (JNJ): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report To read this article on Zacks.com click here. Bracanalysis has been recording robust growth over the past few quarters on the back of increasing penetration in both Oncology and Women's Health markets. |
34391.0 | 2012-09-20 00:00:00 UTC | FDA Clears Meridian Ilumigene GAS - Analyst Blog | ABT | https://www.nasdaq.com/articles/fda-clears-meridian-ilumigene-gas-analyst-blog-2012-09-20 | nan | nan | Diagnostic test kit maker Meridian Bioscience ( VIVO ) won the approval of the U.S. Food and Drug Administration (FDA) for its new illumigene GAS (Group A Streptococcus) test. This test is used to accurately detect acute GAS pharyngitis.
The most common disease caused by GAS, a bacterial infection, is pharyngitis. Per census, acute pharyngitis results in almost 15 million visits to physicians every year in the U.S. Roughly 20% to 30% of children requiring medical treatment are detected with GAS pharyngitis.
It has been found that regular laboratory testing such as throat swab culture and rapid antigen testing produce faulty results in roughly 1 out of every 10 cases. The advanced illumigene GAS test is capable of accurately diagnosing pathogens in throat samples using loop-mediated isothermal DNA amplification technology.
Management believes that the sophisticated illumigene GAS test will provide hospitals and laboratories a simple, highly sensitive and economical test, helping them in early detection and proper management of GAS. Further, the quick detection of infectious pathogens will lower contamination risk, which in turn will reduce overall healthcare expenses.
Meridian specializes in developing diagnostic test kits for multiple serious and infectious diseases. The company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ).
In December 2011, the company received FDA approval for the illumigene GBS (Group B streptococcus) test on the illumigene molecular test platform. Meridian is focused on introducing more advanced and effective technologies to expand its diagnostic test kits products portfolio.
Meridian in its recently released fiscal 2013 guidance revealed that it expects illumigene molecular technology platform to leverage top line growth along with Bioline products as well as its foodborne and H. pylori tests. However, the company expects the upcoming Medical Device tax from 2013 to be a drag on its bottom line. We currently have a short-term Zacks #3 Rank (Hold rating) on the stock.
ABBOTT LABS (ABT): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. The advanced illumigene GAS test is capable of accurately diagnosing pathogens in throat samples using loop-mediated isothermal DNA amplification technology. | The company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. In December 2011, the company received FDA approval for the illumigene GBS (Group B streptococcus) test on the illumigene molecular test platform. | ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. The company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). Diagnostic test kit maker Meridian Bioscience ( VIVO ) won the approval of the U.S. Food and Drug Administration (FDA) for its new illumigene GAS (Group A Streptococcus) test. | ABBOTT LABS (ABT): Free Stock Analysis Report BECTON DICKINSO (BDX): Free Stock Analysis Report MERIDIAN BIOSCI (VIVO): Free Stock Analysis Report To read this article on Zacks.com click here. The company's diagnostics business faces strong competition from Abbott Laboratories ( ABT ), Becton, Dickinson and Company ( BDX ). This test is used to accurately detect acute GAS pharyngitis. |
34392.0 | 2012-09-19 00:00:00 UTC | Celgene's Drug Pipeline News Soothes Investor Worries | ABT | https://www.nasdaq.com/articles/celgenes-drug-pipeline-news-soothes-investor-worries-2012-09-19 | nan | nan | Celgene ( CELG ) has been giving investors good news lately, after a long stretch of giving them heartburn.
The biotech earlier this month reported positive trial results for its immunology drug candidate apremilast, one of several Celgene is hoping will fill out a portfolio still dominated by its blockbuster cancer drug Revlimid.
The results came from three late-stage studies Celgene is conducting that test apremilast on psoriatic arthritis sufferers. The company already reported good results from one of them in July, and the other two showed similar improvements in symptoms and physical functions among subjects.
Celgene plans to file an application for approval with the FDA in early 2013, and in Europe in the second half of the year. It's also investigating the use of apremilast for other immunological disorders such as ankylosing spondylitis (a type of spinal arthritis) and a rare syndrome called Behcet's disease.
But all these conditions are considered to be among the "smaller indications" for apremilast, says Morningstar analyst Karen Andersen. The bigger prizes are psoriasis and rheumatoid arthritis, two markets already inhabited by some of the world's top-selling drugs, includingAbbott Laboratories ' ( ABT ) Humira,Johnson & Johnson 's ( JNJ ) Remicade andAmgen 's ( AMGN ) Enbrel.
Clinical Trials
Celgene is conducting clinical trials testing apremilast on these diseases, but they aren't as far along as the psoriatic arthritis trials. Andersen said if all goes well, it could make $1 billion a year by 2020, but she offers only a 50-50 chance of that happening.
ISI Group analyst Mark Schoenebaum said in his weekly videocast to clients Sept. 7 that he also had low expectations for apremilast, but he's starting to "turn the corner" on the drug.
"Even if you aim towards the low end of expectations, this has the potential to be a pretty big drug," he said. "And I've had some conversations with the CFO of the company, and I no longer think this will require a giant marketing expense."
However, both analysts said the data so far released have been sketchy. The full report will be made at the American College of Rheumatology's annual meeting in November, which will give them a better idea of the potential market.
The positive news on apremilast lifted Celgene's stock, which since April has suffered a series of body blows. First-quarter earnings missed analysts' expectations for the third straight time, sending shares on a long-term slide. But the biggest hit came in June, when the company withdrew its application for a new Revlimid indication in Europe.
Celgene's goal was to expand Revlimid's use in the complex treatment of the blood cancer multiple myeloma. Normally, it begins with doctors taking a group of blood-producing stem cells from the patient's body, which are then stored and put back into the patient after a round of chemotherapy. Celgene has been pushing for Revlimid's use as a maintenance therapy after this point, regardless of whether the patient relapses.
In the U.S., it's already used at various stages of treatment because of doctors' relative freedom to prescribe drugs for "off-label" uses. The European authorities are a lot more stringent about these things, so Celgene and the European Medicines Agency have been in a long wrangle over the drug's safety profile. A small number of patients in the trials developed second cancers, believed to have been caused by exposure to Revlimid.
Though the idea of a cancer-causing cancer drug might sound odd, it wasn't a total shock since the traditional myeloma treatment, thalidomide (which Celgene also makes), has long been known to increase the risk of cancer. The important question is whether the risk of this is great enough to outweigh the known benefits against the original cancer.
A year ago, a panel advising the EMA determined that the risk-benefit profile was positive. But that determination was about Revlimid in its current use, not for maintenance. The EMA's Committee for Medicinal Products for Human Use ( CHMP ) was apparently still concerned about the effects of longer-term use because when Celgene withdrew its application on June 21, it said it would "resubmit with more mature data, which allows CHMP to conclude a clear benefit/risk ratio."
More Time
Cowen analyst Eric Schmidt told IBD in July, "I think also the agency wants to see the trends favoring overall survival persist with time, that they're not causing early mortalities. We don't know if it'll be another six, 12 or 18 months, but if data mature in a fashion that seems acceptable, they can probably get back on track."
Meanwhile, Celgene is working to expand its hematology franchise. Vidaza, a drug treating a blood disorder called myelodysplastic syndrome, was first approved in the U.S. in 2004, but is still expanding into new markets globally. In the second quarter of this year, its sales rose 24% over the year-ago quarter.
Celgene is also developing another multiple myeloma drug called pomalidomide, which is currently in phase-three testing for treating refractory cases that haven't responded to other treatments.
Analysts say that Celgene isn't expecting it to turn into the next Revlimid, but they do expect it to do well.
"I think that's another billion-dollar drug, and it's more likely (than apremilast) to make it to market," Andersen told IBD.
Despite its stock troubles, Celgene has remained a solid growth company, with double-digit quarterly increases in both profit and sales for many years. Still, the forecasts show why Celgene is looking for new revenue streams. Analysts expect profit this year to rise 28% to $4.87 a share, but see growth easing to 13% next year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, 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 bigger prizes are psoriasis and rheumatoid arthritis, two markets already inhabited by some of the world's top-selling drugs, includingAbbott Laboratories ' ( ABT ) Humira,Johnson & Johnson 's ( JNJ ) Remicade andAmgen 's ( AMGN ) Enbrel. It's also investigating the use of apremilast for other immunological disorders such as ankylosing spondylitis (a type of spinal arthritis) and a rare syndrome called Behcet's disease. ISI Group analyst Mark Schoenebaum said in his weekly videocast to clients Sept. 7 that he also had low expectations for apremilast, but he's starting to "turn the corner" on the drug. | The bigger prizes are psoriasis and rheumatoid arthritis, two markets already inhabited by some of the world's top-selling drugs, includingAbbott Laboratories ' ( ABT ) Humira,Johnson & Johnson 's ( JNJ ) Remicade andAmgen 's ( AMGN ) Enbrel. The biotech earlier this month reported positive trial results for its immunology drug candidate apremilast, one of several Celgene is hoping will fill out a portfolio still dominated by its blockbuster cancer drug Revlimid. The results came from three late-stage studies Celgene is conducting that test apremilast on psoriatic arthritis sufferers. | The bigger prizes are psoriasis and rheumatoid arthritis, two markets already inhabited by some of the world's top-selling drugs, includingAbbott Laboratories ' ( ABT ) Humira,Johnson & Johnson 's ( JNJ ) Remicade andAmgen 's ( AMGN ) Enbrel. The biotech earlier this month reported positive trial results for its immunology drug candidate apremilast, one of several Celgene is hoping will fill out a portfolio still dominated by its blockbuster cancer drug Revlimid. Though the idea of a cancer-causing cancer drug might sound odd, it wasn't a total shock since the traditional myeloma treatment, thalidomide (which Celgene also makes), has long been known to increase the risk of cancer. | The bigger prizes are psoriasis and rheumatoid arthritis, two markets already inhabited by some of the world's top-selling drugs, includingAbbott Laboratories ' ( ABT ) Humira,Johnson & Johnson 's ( JNJ ) Remicade andAmgen 's ( AMGN ) Enbrel. Celgene's goal was to expand Revlimid's use in the complex treatment of the blood cancer multiple myeloma. A small number of patients in the trials developed second cancers, believed to have been caused by exposure to Revlimid. |
34393.0 | 2012-09-18 00:00:00 UTC | Neutral on Auxilium Pharma - Analyst Blog | ABT | https://www.nasdaq.com/articles/neutral-on-auxilium-pharma-analyst-blog-2012-09-18 | nan | nan | We recently reiterated our Neutral recommendation on Auxilium Pharmaceuticals, Inc. ( AUXL ) which carries a Zacks #3 Rank (short-term 'Hold' rating).
Auxilium Pharma's lead product Testim, a 1% testosterone gel, continues to put in a solid performance. We expect Testim revenues to continue growing based on encouraging clinical data and price increases.
We are also positive on Auxilium Pharma's co-promotion agreement with GlaxoSmithKline ( GSK ) for Testim. With urology being a key focus area at Glaxo, Testim sales should benefit from the additional promotional effort. Glaxo's sales force started promoting Testim from mid-July 2012. Auxilium Pharma believes that the additional sales effort will increase the target audience to the top 25% of high-volume gel writers. Meanwhile, reach to primary care physicians, urologists and endocrinologists will increase with the additional detailing. Testim revenues, which came in at $193 million in 2011, are expected in the range of $245 - $255 million (old guidance: $225 - $235 million) in 2012.
Auxilium Pharma's second marketed product, Xiaflex, is an injectable enzyme (clostridial collagenase for injection) that received approval in February 2010 from the FDA for the treatment of Dupuytren's Contracture (DC), a condition that affects the connective tissue in the palm known as palmar fascia.
Xiaflex' approval represents a major milestone for the company. Xiaflex is being studied for additional indications like Peyronie's disease (PD). Auxilium Pharma expects to file for approval for the PD indication by year end. Meanwhile, Auxilium Pharma commenced a phase Ib study in January 2012 for the treatment of cellulite (edematous fibrosclerotic panniculopathy) - top-line results are expected by year end. Xiaflex is also being evaluated for the treatment of frozen shoulder syndrome with top-line results from the phase IIa study expected in the first quarter of 2013. Xiaflex is also being studied for the treatment of canine lipomas (phase II) and human lipomas (phase I) with results due in the first half of 2013.
While pleased with Testim's performance, we note that the product faces stiff competition from Abbott's ( ABT ) AndroGel worldwide. Moreover, Testim is facing a patent challenge. The entry of a generic version of Testim, which accounted for 78.6% of Auxilium Pharma's revenues in 2011, would be a major blow for the company.
With Testim facing a patent challenge, Auxilium Pharma's future is heavily dependent on Xiaflex. Xiaflex' sales ramp, however, has been disappointing so far. The company cut its 2012 Xiaflex global sales guidance by $3 million to $65 - $77 million. The reduction in Xiaflex' guidance reflects lower sales expectation from ex-US markets due to reimbursement issues in some EU countries. The unsuccessful commercialization of Xiaflex and inability to gain approval for additional indications would weigh heavily on the stock.
We expect investor focus to remain on the commercialization of Xiaflex and its label expansion.
ABBOTT LABS (ABT): Free Stock Analysis Report
AUXILIUM PHARMA (AUXL): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While pleased with Testim's performance, we note that the product faces stiff competition from Abbott's ( ABT ) AndroGel worldwide. ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report To read this article on Zacks.com click here. Auxilium Pharma believes that the additional sales effort will increase the target audience to the top 25% of high-volume gel writers. | ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report To read this article on Zacks.com click here. While pleased with Testim's performance, we note that the product faces stiff competition from Abbott's ( ABT ) AndroGel worldwide. With Testim facing a patent challenge, Auxilium Pharma's future is heavily dependent on Xiaflex. | ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report To read this article on Zacks.com click here. While pleased with Testim's performance, we note that the product faces stiff competition from Abbott's ( ABT ) AndroGel worldwide. Auxilium Pharma's second marketed product, Xiaflex, is an injectable enzyme (clostridial collagenase for injection) that received approval in February 2010 from the FDA for the treatment of Dupuytren's Contracture (DC), a condition that affects the connective tissue in the palm known as palmar fascia. | While pleased with Testim's performance, we note that the product faces stiff competition from Abbott's ( ABT ) AndroGel worldwide. ABBOTT LABS (ABT): Free Stock Analysis Report AUXILIUM PHARMA (AUXL): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report To read this article on Zacks.com click here. With urology being a key focus area at Glaxo, Testim sales should benefit from the additional promotional effort. |
34394.0 | 2012-09-14 00:00:00 UTC | Apricus, Takeda Ink Marketing Deal - Analyst Blog | ABT | https://www.nasdaq.com/articles/apricus-takeda-ink-marketing-deal-analyst-blog-2012-09-14 | nan | nan | Apricus Biosciences, Inc. ( APRI ) and Takeda Pharmaceuticals ( TKPYY ) recently signed an exclusive licensing agreement to market Apricus' Vitaros in the UK. The drug is indicated for the treatment of erectile dysfunction.
Per the terms of the deal, Takeda will make an upfront payment (details of which were not revealed) in addition to milestone payments of up to €35 million to NexMed, a wholly owned subsidiary of Apricus. As per IMS Health, the erectile dysfunction market in the UK was about €202 million in 2011.
We note that Vitaros is already approved in Canada. Moreover, the European Medicines Agency accepted the marketing authorization application for Vitaros in mid 2011. The company expects the drug to be approved in the EU in 2013.
Apricus has several agreements for Vitaros. The company has a marketing agreement with Abbott Laboratories ( ABT ) in Canada. In Germany, Apricus has a partnership agreement with Novartis AG 's ( NVS ) Sandoz for Vitaros. Apart from these Apricus has agreements with Warner Chilcott plc ( WCRX ), Bracco SpA, Neopharm Group, Elis Pharmaceuticals and Global Harvest Pharmaceuticals for the drug in the US, Italy, Israel, Middle-East and Australia/New Zealand, respectively. The company also has a clinical supply agreement with Warner Chilcott UK Limited for Vitaros.
Apricus' other marketed drugs include Totect (extravasation from intravenous anthracycline chemotherapy), Granisol (nausea and vomiting associated with radiation and chemotherapy), NitroMist (angina pectoris) and Aquoral (management of dry mouth).
Our Recommendation
We currently have a Neutral recommendation on Apricus. The stock carries a Zacks #3 Rank (Hold rating) in the short run.
ABBOTT LABS (ABT): Free Stock Analysis Report
APPRICUS BIOSCI (APRI): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
(TKPYY): ETF Research Reports
WARNER CHIL PLC (WCRX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has a marketing agreement with Abbott Laboratories ( ABT ) in Canada. ABBOTT LABS (ABT): Free Stock Analysis Report APPRICUS BIOSCI (APRI): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report (TKPYY): ETF Research Reports WARNER CHIL PLC (WCRX): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the European Medicines Agency accepted the marketing authorization application for Vitaros in mid 2011. | ABBOTT LABS (ABT): Free Stock Analysis Report APPRICUS BIOSCI (APRI): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report (TKPYY): ETF Research Reports WARNER CHIL PLC (WCRX): Free Stock Analysis Report To read this article on Zacks.com click here. The company has a marketing agreement with Abbott Laboratories ( ABT ) in Canada. Apart from these Apricus has agreements with Warner Chilcott plc ( WCRX ), Bracco SpA, Neopharm Group, Elis Pharmaceuticals and Global Harvest Pharmaceuticals for the drug in the US, Italy, Israel, Middle-East and Australia/New Zealand, respectively. | ABBOTT LABS (ABT): Free Stock Analysis Report APPRICUS BIOSCI (APRI): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report (TKPYY): ETF Research Reports WARNER CHIL PLC (WCRX): Free Stock Analysis Report To read this article on Zacks.com click here. The company has a marketing agreement with Abbott Laboratories ( ABT ) in Canada. Apricus Biosciences, Inc. ( APRI ) and Takeda Pharmaceuticals ( TKPYY ) recently signed an exclusive licensing agreement to market Apricus' Vitaros in the UK. | The company has a marketing agreement with Abbott Laboratories ( ABT ) in Canada. ABBOTT LABS (ABT): Free Stock Analysis Report APPRICUS BIOSCI (APRI): Free Stock Analysis Report NOVARTIS AG-ADR (NVS): Free Stock Analysis Report (TKPYY): ETF Research Reports WARNER CHIL PLC (WCRX): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects the drug to be approved in the EU in 2013. |
34395.0 | 2012-09-14 00:00:00 UTC | Amgen Bounces Back On Strong 2012 Performance | ABT | https://www.nasdaq.com/articles/amgen-bounces-back-strong-2012-performance-2012-09-14 | nan | nan | After spending the previous couple of years watching its financial results barely inch forward and its stock price go sideways,Amgen ( AMGN ) has found a higher gear in 2012.
The world's largest biotech company grew earnings at least 20% during the first two quarters of the year, ending a run of four straight quarters of low single-digit gains. It posted a double-digit rise in second-quarter sales -- the first time in years that's happened.
Meanwhile, Amgen's stock price spiked to its highest point since November 2005 after the company reported Q2 results in late July. Shares have continued to rise since then and currently trade near 83, just a couple dollars off the all-time high set seven years ago.
All in all, it's been a pretty nice comeback for a company that hasn't grown annual sales or earnings in double digits since 2006.
"The overall business is doing better than expected and we see several possible levers to pull to continue the turnaround," said Citibank analyst Yaron Werber.
Amgen discovers, develops, manufactures and markets drugs that treat cancer, nephrology and inflammation.
Top Seller
The company's top-selling drug during the second quarter was its Enbrel treatment for inflammatory conditions, which notched $1.06 billion in sales.
Neulasta, which is used to reduce the risk of infection in cancer patients who receive chemotherapy, also produced more than $1 billion in global sales during the quarter.
Other leading products include anemia treatments Aranesp and Epogen, both of which delivered Q2 sales in excess of $500 million.
All but Neulasta beat second-quarter sales projections, a big reason Amgen managed to deliver a much better than expected overall result.
In a note, JPMorgan analyst Geoff Meacham said the biggest upside surprises during the quarter came from Epogen and Enbrel.
"For Epogen, there were a number of factors that led to the beat," Meacham said. "The most important takeaways were ... low single-digit volume growth, and dosing appears to be stabilized over the last several months."
He attributed Enbrel's outperformance to "price increases and increases in inventory and demand."
The outlook for Enbrel should be helped on a couple of fronts. In February, the drug won a patent extension to 2029, meaning it won't have to worry about generic competition for another 17 years. In addition, a profit-sharing deal on Enbrel withPfizer ( PFE ) is due to end in October 2013.
While Enbrel faces increasing competition from products made byAbbott Labs ( ABT ),Merck ( MRK ) andJohnson & Johnson ( JNJ ), it still managed to post an 11% rise in second-quarter sales.
"(Amgen management) said that over the last year, Enbrel has been increasing its share among bio-naive patients, or those who are new to biologics," Zacks Equity Research noted in a report.
Amgen's overall revenue during the quarter rose 13% from the prior year to $4.48 billion, easily surpassing views for $4.08 billion. Earnings gained 34% to $1.83 a share, well above estimates for $1.54 a share.
The company raised its full-year earnings forecast to a range of $6.20 to $6.35 a share, up from previous guidance of $5.90 to $6.15 a share. It expects revenue of $16.9 billion to $17.2 billion, above views for $16.4 billion.
The quarter represented a good start for new Chief Executive Robert Bradway, who took over the post in May after previously serving as Amgen's chief operating officer.
"I am very pleased with the performance of the business," Bradway said in a statement. "I am excited about the growth opportunities in our research and development pipeline, particularly our biologic AMG 145 for (high blood cholesterol)."
Much of the excitement surrounding AMG 145 centers on a study released in March showing monthly injections of the drug cut levels of cholesterol by up to an additional 66% in patients already taking statins.
Those results could make AMG 145 a strong potential rival to a similar drug, dubbed REGN 727, being developed byRegeneron Pharmaceuticals (REGN).
During its Q2 conference call, Amgen announced that AMG 145 will enter Phase 3 development early next year.
R&D Spending
Much of the company's research and development spending over the near term will be devoted to AMG 145 as well as AMG 785, a treatment for postmenopausal osteoporosis that is already in Phase 3 trials.
Although most observers are upbeat about AMG 145's sales potential, the drug also faces challenges. In a report, analyst Alex To of Cross Current Research said the two biggest wild cards are how many patients will be willing to take an injectable drug to manage cholesterol, and how long it will take AMG 145 to get on the market.
Under one scenario, he says, Amgen won't be able to file for regulatory approval for AMG 145 until the second half of 2018.
"Under the best of circumstances the Food and Drug Administration and European Medicines Agency approve the drug on its first pass. (In that case) AMG 145 will reach the marketplace at the end of 2019," To noted. "How much valuation can we ascribe today to a drug that will launch at the very end of the decade?"
Regardless of how that pans out, most watchers see solid growth for Amgen, at least over the near term. Analysts polled by Thomson Reuters expect the company to grow its annual earnings 19% this year, 9% in 2013 and 16% in 2014.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Enbrel faces increasing competition from products made byAbbott Labs ( ABT ),Merck ( MRK ) andJohnson & Johnson ( JNJ ), it still managed to post an 11% rise in second-quarter sales. After spending the previous couple of years watching its financial results barely inch forward and its stock price go sideways,Amgen ( AMGN ) has found a higher gear in 2012. Much of the excitement surrounding AMG 145 centers on a study released in March showing monthly injections of the drug cut levels of cholesterol by up to an additional 66% in patients already taking statins. | While Enbrel faces increasing competition from products made byAbbott Labs ( ABT ),Merck ( MRK ) andJohnson & Johnson ( JNJ ), it still managed to post an 11% rise in second-quarter sales. All but Neulasta beat second-quarter sales projections, a big reason Amgen managed to deliver a much better than expected overall result. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Enbrel faces increasing competition from products made byAbbott Labs ( ABT ),Merck ( MRK ) andJohnson & Johnson ( JNJ ), it still managed to post an 11% rise in second-quarter sales. Top Seller The company's top-selling drug during the second quarter was its Enbrel treatment for inflammatory conditions, which notched $1.06 billion in sales. "(Amgen management) said that over the last year, Enbrel has been increasing its share among bio-naive patients, or those who are new to biologics," Zacks Equity Research noted in a report. | While Enbrel faces increasing competition from products made byAbbott Labs ( ABT ),Merck ( MRK ) andJohnson & Johnson ( JNJ ), it still managed to post an 11% rise in second-quarter sales. All but Neulasta beat second-quarter sales projections, a big reason Amgen managed to deliver a much better than expected overall result. "(Amgen management) said that over the last year, Enbrel has been increasing its share among bio-naive patients, or those who are new to biologics," Zacks Equity Research noted in a report. |
34396.0 | 2012-09-13 00:00:00 UTC | Abbott-Astellas Collaborate - Analyst Blog | ABT | https://www.nasdaq.com/articles/abbott-astellas-collaborate-analyst-blog-2012-09-13 | nan | nan | Abbott Laboratories ( ABT ) recently announced that it is collaborating with Astellas Pharma Global Development for a phase III study being conducted with ASP0113 (TransVax). TransVax, a vaccine in-licensed by Astellas from Vical Inc. ( VICL ), is being developed for the prevention of cytomegalovirus (CMV) reactivation in transplant patients.
Under the collaboration, patients will be monitored for CMV viral load using Abbott Labs' RealTime CMV assay, which is performed on the Abbott m2000 System. This will help evaluate the vaccine's efficacy.
CMV, which infects 50% of all adults by the time they reach age 40, is the most common viral infection in transplant recipients.
Another company that is working on the development of a CMV infection treatment is ViroPharma Inc. ( VPHM ). ViroPharma is currently conducting a phase II program to evaluate maribavir for the treatment of CMV infections in transplant recipients.
Maribavir will be studied in two independent phase II trials that will be conducted in patients who have asymptomatic CMV and patients who have failed therapy with other anti-CMV agents.
Abbott Labs' partnership with Astellas is its fourth collaboration with a large pharma company in the last one year. Other agreements include Abbott Labs' collaborations with Pfizer ( PFE ), Merck ( MRK ) and GlaxoSmithKline ( GSK ) for the development of companion diagnostic tests that can be used to select patients suitable for certain oncology products.
Neutral on Abbott Labs
We currently have a Neutral recommendation on Abbott Labs, which carries a Zacks #3 Rank (short-term Hold rating). Abbott Labs remains on track to split into two separate publicly traded companies by the end of 2012.
While one company will deal in diversified medical products, the other (AbbVie) will focus on research-based pharmaceuticals. We are positive on the split which should allow the two separate entities to perform in a more focused manner. Humira continues to perform well and this should reduce concerns regarding AbbVie's growth prospects.
ABBOTT LABS (ABT): Free Stock Analysis Report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
VICAL INC (VICL): Free Stock Analysis Report
VIROPHARMA (VPHM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ( ABT ) recently announced that it is collaborating with Astellas Pharma Global Development for a phase III study being conducted with ASP0113 (TransVax). ABBOTT LABS (ABT): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VICAL INC (VICL): Free Stock Analysis Report VIROPHARMA (VPHM): Free Stock Analysis Report To read this article on Zacks.com click here. TransVax, a vaccine in-licensed by Astellas from Vical Inc. ( VICL ), is being developed for the prevention of cytomegalovirus (CMV) reactivation in transplant patients. | ABBOTT LABS (ABT): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VICAL INC (VICL): Free Stock Analysis Report VIROPHARMA (VPHM): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ( ABT ) recently announced that it is collaborating with Astellas Pharma Global Development for a phase III study being conducted with ASP0113 (TransVax). ViroPharma is currently conducting a phase II program to evaluate maribavir for the treatment of CMV infections in transplant recipients. | ABBOTT LABS (ABT): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VICAL INC (VICL): Free Stock Analysis Report VIROPHARMA (VPHM): Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ( ABT ) recently announced that it is collaborating with Astellas Pharma Global Development for a phase III study being conducted with ASP0113 (TransVax). Under the collaboration, patients will be monitored for CMV viral load using Abbott Labs' RealTime CMV assay, which is performed on the Abbott m2000 System. | Abbott Laboratories ( ABT ) recently announced that it is collaborating with Astellas Pharma Global Development for a phase III study being conducted with ASP0113 (TransVax). ABBOTT LABS (ABT): Free Stock Analysis Report GLAXOSMITHKLINE (GSK): Free Stock Analysis Report MERCK & CO INC (MRK): Free Stock Analysis Report PFIZER INC (PFE): Free Stock Analysis Report VICAL INC (VICL): Free Stock Analysis Report VIROPHARMA (VPHM): Free Stock Analysis Report To read this article on Zacks.com click here. Under the collaboration, patients will be monitored for CMV viral load using Abbott Labs' RealTime CMV assay, which is performed on the Abbott m2000 System. |
34397.0 | 2012-09-11 00:00:00 UTC | Profiling 7 Companies That Have Raised Dividends For 25 Years | ABT | https://www.nasdaq.com/articles/profiling-7-companies-have-raised-dividends-25-years-2012-09-11 | nan | nan | There is more to successful dividend investing than simply spotting high yields. Rather, the most successful dividend stock investments are those where the company's underlying fundamentals continue to improve and where ongoing free cash flow growth can continue to support higher payouts. The following, then, are seven companies that have been uncommonly strong dividend growth stories over the past 25 years.
1. AT&T ( T )
The company once known as Ma Bell has had a convoluted history. While the break-up of AT&T ( T ) was heralded as a major event in American business history, one of the resulting "Baby Bells" (Southwestern Bell) ultimately rebuilt the company, and today's AT&T includes about half of the original Bells and the long distance operations.
Throughout that convoluted corporate history though, this company has a very strong record of paying and increasing dividends. Dividends have grown nearly 6% a year on average over the past decade, while free cash flow has increased by a roughly similar amount. Ongoing capex needs to stay competitive in wireless services might limit further payout expansion, but AT&T is a reliable and stable company with ongoing dividend growth potential. Shares are up more than 35% over the past year, doubling the S&P's performance.
2. Johnson & Johnson ( JNJ )
Johnson & Johnson ( JNJ ) is one of the best-known healthcare companies in the world; simultaneously part of Big Pharma, one of the largest device companies (particularly in orthopedics and surgery), and one of the largest OTC healthcare and personal care companies. Major new drug launches and the acquisition of Synthes ought to drive better growth in the next few years, while repairing the image of the company's OTC business in the wake of high-profile recalls could take a little more time.
Dividends have grown nearly 12% a year for the past decade at Johnson & Johnson, outpacing the 7% or so growth in free cash flow. J&J recently began to join the healthcare stock rally this year, as the shares are now up about 7.5% from a year ago.
3. Kimberly-Clark ( KMB )
With brands like Kleenex, Kotex, Scott, and Huggies, Kimberly-Clark ( KMB ) has built a stable of valuable branded paper-based consumer products. Better still, diapers, tissues, and toilet paper are the sort of products that consumers have to continue to buy over and over again. While Kimberly-Clark does face some trade-down risk (that is, consumers turning to cheaper store-brand products), consumers can be pretty loyal to these brands and seem more willing to go with generic soda than generic TP. What's more, as disposable income continues to rise in emerging markets, Kimberly-Clark is now appealing to millions of new customers that previously could not afford their products.
Dividends have grown at a healthy 10% clip over the last decade (on average), while free cash flow has scarcely grown at all. It should be noted, though, that Kimberly-Clark has unusually high year-to-year volatility in cash flow and the roughly 2% compound per-share book value growth may be useful for putting that in context. Shares are up more than 23% over the past year, making it one of the best-performing large consumer goods companies.
4. Abbott Labs ( ABT )
Abbott ( ABT ) is often thought of as a rather sleepy healthcare company, but it actually has a pretty interesting history of continual reinvention. Fifteen years ago, Abbott was built around a diversified model that included products like antibiotics, infant and adult nutrition, and supplies and devices for the hospital market. Since then, the company has spun out the hospital products business (now known as Hospira ( HSP )), developed the blockbuster drug Humira, and added businesses like stents, diabetes, and diagnostics.
Soon, though, Abbott will morph again as the company splits off its pharmaceuticals business, and while both are likely to continue paying dividends, the non-pharmaceutical operations might be more growth-oriented.
Abbott has increased its dividend by an average of 8% over the past decade, while free cash flow has grown more than 11%. With the shares up more than 33% over the past year, Abbott has been a strong name in big-cap healthcare.
5. HCP, Inc. ( HCP )
The lone REIT on this list, HCP ( HCP ) (once known as Healthcare Property Investors) owns or has interests in over 900 healthcare-related properties in 46 states. HCP leases properties that include senior living, medical offices, skilled nursing facilities, and life sciences/biotech facilities. As one might imagine, these tenants cannot easily or casually change location, so HCP's tenants tend to be "sticky." While national budget issues may impact the availability of Medicare funds (constraining rent growth), the aging population of the U.S. suggests strong future demand.
Dividend growth has not been so spectacular here, which just 2% average compound growth over the past ten years. During that time, free cash flow has reversed from a negative starting number, but free cash flow can be a misleading metric for REITs. Per-share FFO, though, has grown nearly 4% over the last decade, while the shares are up 33% from one year ago.
6. Procter & Gamble (PG)
Like Kimberly-Clark and JNJ's OTC business, Procter & Gamble ( PG ) is a company built around a host of well-known consumer brands that customers buy over and over. Notable brands include Tide, Charmin, Cover Girl, and Crest. Unfortunately, P&G has not had the best operating performance of late, as new product innovation has lagged and mismanaged pricing and promotion strategies have hurt sales and market share in both developed and emerging markets.
Recent problems aside, P&G's 11% dividend growth since 2003 is not bad at all, though recent issues with free cash flow production have dropped the decade-long growth rate there to about 3%. Up around 10% over the past year, these shares have clearly lagged the broader market.
7. Bemis (BMS)
Bemis ( BMS ) is proof positive that companies can do basically boring things in interesting ways and reap extra rewards for doing so. A superficial look will show Bemis to be a packaging company, but the company's specialty products like cook-in-the-bag, sterile, and flexible packaging make it a valued supplier to major food, medical, and chemical companies.
Bemis' 7% dividend growth over the past decade is not bad, but the 4% growth in free cash flow does point to a risk factor in terms of whether Bemis can continue to increase its payout substantially. These shares are the only ones to show very little growth over the past year, with BMS stock up only about 2%.
The Bottom Line
It's always important to note that past performance does not guarantee future results. To that end, some of these companies are likely to find that their size limits their free cash flow growth potential and, with it, their dividend growth potential. That said, investors can rest a little easier knowing that these companies do prioritize returning capital to shareholders and run strong businesses geared towards generating solid cash flow.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
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 ) Abbott ( ABT ) is often thought of as a rather sleepy healthcare company, but it actually has a pretty interesting history of continual reinvention. Major new drug launches and the acquisition of Synthes ought to drive better growth in the next few years, while repairing the image of the company's OTC business in the wake of high-profile recalls could take a little more time. Fifteen years ago, Abbott was built around a diversified model that included products like antibiotics, infant and adult nutrition, and supplies and devices for the hospital market. | Abbott Labs ( ABT ) Abbott ( ABT ) is often thought of as a rather sleepy healthcare company, but it actually has a pretty interesting history of continual reinvention. Johnson & Johnson ( JNJ ) Johnson & Johnson ( JNJ ) is one of the best-known healthcare companies in the world; simultaneously part of Big Pharma, one of the largest device companies (particularly in orthopedics and surgery), and one of the largest OTC healthcare and personal care companies. Procter & Gamble (PG) Like Kimberly-Clark and JNJ's OTC business, Procter & Gamble ( PG ) is a company built around a host of well-known consumer brands that customers buy over and over. | Abbott Labs ( ABT ) Abbott ( ABT ) is often thought of as a rather sleepy healthcare company, but it actually has a pretty interesting history of continual reinvention. Rather, the most successful dividend stock investments are those where the company's underlying fundamentals continue to improve and where ongoing free cash flow growth can continue to support higher payouts. Dividends have grown nearly 12% a year for the past decade at Johnson & Johnson, outpacing the 7% or so growth in free cash flow. | Abbott Labs ( ABT ) Abbott ( ABT ) is often thought of as a rather sleepy healthcare company, but it actually has a pretty interesting history of continual reinvention. Rather, the most successful dividend stock investments are those where the company's underlying fundamentals continue to improve and where ongoing free cash flow growth can continue to support higher payouts. Abbott has increased its dividend by an average of 8% over the past decade, while free cash flow has grown more than 11%. |
34398.0 | 2012-09-05 00:00:00 UTC | Perrigo Cut to Neutral - Analyst Blog | ABT | https://www.nasdaq.com/articles/perrigo-cut-to-neutral-analyst-blog-2012-09-05 | nan | nan | We have downgraded Perrigo Company ( PRGO ) to Neutral from Outperform following the disappointing revenue numbers put out by the company in the fourth quarter of fiscal 2012 (ended June 30, 2012). The stock carries a Zacks #3 Rank (Hold rating) in the short run.
Perrigo's fourth quarter fiscal 2012 revenues of $832 million fell short of the Zacks Consensus Estimate of $854 million, primarily due to weakness in the Consumer HealthCare (CHC) segment.
Total revenues were, however, up 18% year over year aided by the inclusion of $58 million of net sales from Paddock Laboratories (acquired by Perrigo in 2011) and $10 million from CanAm Care (whose assets were acquired by Perrigo in January 2012).
Apart from the CHC segment, Rx Pharmaceuticals (generic) segment sales, which were very encouraging in the first three quarters of fiscal 2012, were also disappointing in the final quarter, flat sequentially.
Moreover, Perrigo, which narrowly beat the Zacks Consensus Estimate in terms of earnings mainly due to a low tax rate, exp | The stock carries a Zacks #3 Rank (Hold rating) in the short run. Total revenues were, however, up 18% year over year aided by the inclusion of $58 million of net sales from Paddock Laboratories (acquired by Perrigo in 2011) and $10 million from CanAm Care (whose assets were acquired by Perrigo in January 2012). Moreover, Perrigo, which narrowly beat the Zacks Consensus Estimate in terms of earnings mainly due to a low tax rate, exp | We have downgraded Perrigo Company ( PRGO ) to Neutral from Outperform following the disappointing revenue numbers put out by the company in the fourth quarter of fiscal 2012 (ended June 30, 2012). Perrigo's fourth quarter fiscal 2012 revenues of $832 million fell short of the Zacks Consensus Estimate of $854 million, primarily due to weakness in the Consumer HealthCare (CHC) segment. Moreover, Perrigo, which narrowly beat the Zacks Consensus Estimate in terms of earnings mainly due to a low tax rate, exp | We have downgraded Perrigo Company ( PRGO ) to Neutral from Outperform following the disappointing revenue numbers put out by the company in the fourth quarter of fiscal 2012 (ended June 30, 2012). Perrigo's fourth quarter fiscal 2012 revenues of $832 million fell short of the Zacks Consensus Estimate of $854 million, primarily due to weakness in the Consumer HealthCare (CHC) segment. Total revenues were, however, up 18% year over year aided by the inclusion of $58 million of net sales from Paddock Laboratories (acquired by Perrigo in 2011) and $10 million from CanAm Care (whose assets were acquired by Perrigo in January 2012). | We have downgraded Perrigo Company ( PRGO ) to Neutral from Outperform following the disappointing revenue numbers put out by the company in the fourth quarter of fiscal 2012 (ended June 30, 2012). The stock carries a Zacks #3 Rank (Hold rating) in the short run. Perrigo's fourth quarter fiscal 2012 revenues of $832 million fell short of the Zacks Consensus Estimate of $854 million, primarily due to weakness in the Consumer HealthCare (CHC) segment. |
34399.0 | 2012-09-04 00:00:00 UTC | JNJ Updates: Strikes Cancer Deal, Zytiga Gets FDA Priority Review Status | ABT | https://www.nasdaq.com/articles/jnj-updates-strikes-cancer-deal-zytiga-gets-fda-priority-review-status-2012-09-04 | nan | nan | Johnson & Johnson ( JNJ ) struck an approximately $1.1 billion deal with Genmab to gain rights of the latter's cancer agent, Daratumumab. In a separate event, the U.S. FDA has given a priority review status to the company's application for expanded use of its prostate cancer drug, Zytiga. All of these events can help Johnson & Johnson strengthen its position in the oncology drug market where it presently has a very modest position.
See our complete analysis for Johnson & Johnson
More About the Genmab Deal
Daratumumab is in an experimental drug for a type of bone marrow cancer multiple myeloma. It has the potential for many other bone marrow cancer indications, including acute myeloid leukemia. Following the deal, Janssen, a Johnson & Johnson unit, will get exclusive worldwide rights to develop and commercialize Daratumumab. JNJ will pay upfront fee of $55 million to Genmab in addition to the $80 million investment in Genmab's common stock. In addition, Genmab stands to receive certain payments to the tune of $1 billion after reaching certain milestones.
While the upfront payments will certainly hit the company's cash flow this year, the long-term benefits from the deal may surpass the hit due to the payments. With promising drugs like Daratumumab, we expect the company to perform better in the oncology drug market, going forward. If the drug shows good progress in clinical trials, it could provide a significant upside to our current price estimate.
Zytiga Holds Promise
Zytiga is used in the treatment of prostate cancer, one of the most prevalent cancers in men, with around 218,000 Americans diagnosed with the cancer each year. Currently, the drug is approved for patients who have been diagnosed with both hormone treatment as well as chemotherapy. After demonstrating encouraging results in its clinical trials recently, the company filed applications with the U.S. FDA and the EU's European Medicines Agency (EMA) to extend the use of its metastatic prostate cancer drug, Zytiga, to patients who have not yet been treated with chemotherapy but have failed hormone treatment.
A priority review status means the drug could be approved in about six months. The FDA usually grants this status for drugs that either show strong efficacy in treatment or where no treatment exists currently.
The drug also showed strong results in eliminating early stage tumors in metastatic prostate cancer patients . Zytiga grossed around $200 million in 2011 in sales, and many are already seeing a $1 billion sales potential for the drug.
We are in the process of updating our $74 price estimate for JNJ to reflect the earnings and recent developments.
Submit a Post at Trefis Powered by Data and Interactive Charts | Understand What Drives a Stock at Trefis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a separate event, the U.S. FDA has given a priority review status to the company's application for expanded use of its prostate cancer drug, Zytiga. If the drug shows good progress in clinical trials, it could provide a significant upside to our current price estimate. After demonstrating encouraging results in its clinical trials recently, the company filed applications with the U.S. FDA and the EU's European Medicines Agency (EMA) to extend the use of its metastatic prostate cancer drug, Zytiga, to patients who have not yet been treated with chemotherapy but have failed hormone treatment. | Johnson & Johnson ( JNJ ) struck an approximately $1.1 billion deal with Genmab to gain rights of the latter's cancer agent, Daratumumab. After demonstrating encouraging results in its clinical trials recently, the company filed applications with the U.S. FDA and the EU's European Medicines Agency (EMA) to extend the use of its metastatic prostate cancer drug, Zytiga, to patients who have not yet been treated with chemotherapy but have failed hormone treatment. Submit a Post at Trefis Powered by Data and Interactive Charts | Understand What Drives a Stock at Trefis The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | See our complete analysis for Johnson & Johnson More About the Genmab Deal Daratumumab is in an experimental drug for a type of bone marrow cancer multiple myeloma. Zytiga Holds Promise Zytiga is used in the treatment of prostate cancer, one of the most prevalent cancers in men, with around 218,000 Americans diagnosed with the cancer each year. After demonstrating encouraging results in its clinical trials recently, the company filed applications with the U.S. FDA and the EU's European Medicines Agency (EMA) to extend the use of its metastatic prostate cancer drug, Zytiga, to patients who have not yet been treated with chemotherapy but have failed hormone treatment. | Johnson & Johnson ( JNJ ) struck an approximately $1.1 billion deal with Genmab to gain rights of the latter's cancer agent, Daratumumab. All of these events can help Johnson & Johnson strengthen its position in the oncology drug market where it presently has a very modest position. After demonstrating encouraging results in its clinical trials recently, the company filed applications with the U.S. FDA and the EU's European Medicines Agency (EMA) to extend the use of its metastatic prostate cancer drug, Zytiga, to patients who have not yet been treated with chemotherapy but have failed hormone treatment. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.