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23900.0 | 2021-09-23 00:00:00 UTC | XLV, ABBV, LLY, BMY: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-abbv-lly-bmy%3A-large-outflows-detected-at-etf-2021-09-23 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $526.3 million dollar outflow -- that's a 1.6% decrease week over week (from 251,370,000 to 247,370,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 1.4%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.95. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $526.3 million dollar outflow -- that's a 1.6% decrease week over week (from 251,370,000 to 247,370,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 1.4%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.95. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $526.3 million dollar outflow -- that's a 1.6% decrease week over week (from 251,370,000 to 247,370,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.95. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.3%, Eli Lilly (Symbol: LLY) is up about 1.9%, and Bristol Myers Squibb Co. (Symbol: BMY) is up by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $526.3 million dollar outflow -- that's a 1.6% decrease week over week (from 251,370,000 to 247,370,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.95. | 228104b2-3dae-4f0a-9824-5d3ab0ccfcba |
23901.0 | 2021-09-23 00:00:00 UTC | November 5th Options Now Available For AbbVie | ABBV | https://www.nasdaq.com/articles/november-5th-options-now-available-for-abbvie-2021-09-23 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the November 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $104.00 strike price has a current bid of $1.57. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $104.00, but will also collect the premium, putting the cost basis of the shares at $102.43 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $108.06/share today.
Because the $104.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 68%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.51% return on the cash commitment, or 12.81% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $104.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of 30 cents. If an investor was to purchase shares of ABBV stock at the current price level of $108.06/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $120.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.33% if the stock gets called away at the November 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red:
Considering the fact that the $120.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 91%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.28% boost of extra return to the investor, or 2.36% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 34%, while the implied volatility in the call contract example is 24%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $108.06) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the November 5th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the November 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 5th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $104.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of 30 cents. Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the November 5th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 5th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the November 5th expiration. | fccbc59e-f8d2-4898-b398-46941b1d068b |
23902.0 | 2021-09-23 00:00:00 UTC | 3 Relatively Safe Pharma Stocks You Can Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-relatively-safe-pharma-stocks-you-can-buy-right-now-2021-09-23 | nan | nan | Volatility has been on full display in the stock market this week. The wild swings are enough to cause many investors to look for safe havens to park their hard-earned cash. One option to consider is buying the stocks of drugmakers that generate dependable cash flow.
We asked three Motley Fool contributors to identify relatively safe pharma stocks to buy right now. Here's why those chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ).
Image source: Getty Images.
1. AbbVie: a rock-solid pharma giant at an attractive valuation
Prosper Junior Bakiny (AbbVie): Investors looking for safety in this volatile market can't go wrong with AbbVie. Like its peers in the pharmaceutical industry, it develops and markets lifesaving drugs that people need regardless of the state of the economy. Patients are unlikely to cut back on medicines even amid economic struggles. That's why AbbVie can continue generating decent revenue and earnings even during a recession.
AbbVie's flagship product is rheumatoid arthritis (RA) treatment Humira. During the second quarter, Humira's total sales climbed by 4.8% year over year to $5.1 billion. That was despite the RA medicine seeing its international revenue drop due to biosimilar competition. Sales of Humira in the U.S. are still climbing, but with biosimilars set to enter the U.S. market in 2023, AbbVie will have to turn to other avenues for growth.
Fortunately, the company planned ahead. It currently boasts several products with fast-growing sales. During the second quarter, sales of immunosuppressant Skyrizi and RA treatment Rinvoq more than doubled compared to the year-ago period, while cancer medicines Imbruvica and Venclexta also saw solid year-over-year increases.
It's true that the FDA recently revised the boxed warning for Rinvoq to include increased risks of cardiovascular events, cancer, and death. Unsurprisingly, investors ran for the hills following this decision. However, the market's reaction was a bit overdone.
The RA drug represents a tiny portion of AbbVie's revenue base. And while the new boxed warning may negatively impact its sales, Rinvoq should continue to deliver decent revenue growth. AbbVie can also count on its Botox franchise to help sustain solid top- and bottom-line increases. Further, with 21 phase 3 clinical trials underway, expect new approvals and label expansions to regularly bolster the drugmaker's lineup.
As a bonus, AbbVie is a Dividend Aristocrat, making it an excellent choice for income-seeking investors. Historically, dividend stocks have outperformed their non-dividend peers. AbbVie's shares are currently trading for just 8.4 times forward earnings versus 14.5 for the pharma industry. This rock-solid pharma giant is a bargain at current levels.
2. Gilead Sciences: A blue chip pharma stock you can count on
Zhiyuan Sun (Gilead Sciences): Gilead shares can be bought at an absolute bargain right now, trading at just 3.6 times forward revenue and 10.1 times forward earnings. That's much cheaper than the five times sales and 123 times earnings for the average pharma stock. What's more, you can also hold on to Gilead stock and receive a lucrative 3.91% dividend yield.
During the second quarter of 2021, Gilead's product sales increased by 21% year over year to $6.2 billion. Sales of its COVID-19 treatment Veklury drove a vast majority of its growth despite the traction gained by coronavirus vaccines. In addition, sales of Biktarvy, the No. 1 most prescribed HIV regimen in the U.S., increased by over $390 million. Approximately three out of four HIV patients in the country are prescribed antivirals from Gilead.
In other areas, the company anticipates it could generate over $1 billion in hepatitis B drug sales by next year, up from about $237 million per quarter right now. Gilead's hepatitis C virus franchise is also showing signs of recovery, with revenue up 23% year over year due to new patient starts. Furthermore, Gilead's cancer immunotherapy candidates have also gained traction, with sales up 39.4% year over year to $219 million.
But Gilead's momentum is far from over. The company's novel HIV drug, lenacapavir, is pending regulatory approval. The drug achieved 81% to 94% viral suppression rates when given to HIV patients in clinical studies. Recently, Gilead's immunotherapy Yescarta also achieved a 60% survival improvement compared to standard of care treatments in patients with large B-cell lymphoma.
Gilead also has 51 clinical-stage programs and 16 late-stage candidates in its pipeline. Overall, it's a cheap pharma stock with great growth catalysts that you don't want to miss.
3. Johnson & Johnson: As safe as they come
Keith Speights (Johnson & Johnson): I can't think of a safer big pharma stock to buy than Johnson & Johnson. It's the biggest healthcare company in the world. J&J is a Dividend King with 59 consecutive years of dividend increases. And it has stood the test of time, surviving and thriving for 135 years.
There are two key things that help make a stock a safer pick for investors. A diversified revenue base is important. So is financial flexibility to weather any storms that might arise and invest in future growth. Johnson & Johnson checks off both of these boxes.
The company's current lineup includes 28 platforms or products that pull in at least $1 billion in annual sales. Those platforms and products are spread across three major areas of healthcare: consumer health, medical devices, and pharmaceuticals.
Johnson & Johnson generated $82.6 billion in revenue last year. The consensus estimate is that it will make over $94 billion in 2021. The company's cash stockpile topped $24 billion as of July 4, 2021.
J&J's financial strength puts it in an exceptionally strong position to adapt to whatever twists and turns come up. The healthcare giant has certainly demonstrated its ability to innovate and make smart acquisitions. Close to 25% of its total sales come from products introduced in the last five years.
To be sure, no pharma stock -- or any kind of stock, for that matter -- is completely safe. But Johnson & Johnson is probably as close as you're going to get to that ideal.
10 stocks we like better than Johnson & Johnson
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Keith Speights owns shares of AbbVie. Prosper Junior Bakiny owns shares of Johnson & Johnson. Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why those chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). AbbVie: a rock-solid pharma giant at an attractive valuation Prosper Junior Bakiny (AbbVie): Investors looking for safety in this volatile market can't go wrong with AbbVie. That's why AbbVie can continue generating decent revenue and earnings even during a recession. | Here's why those chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). AbbVie: a rock-solid pharma giant at an attractive valuation Prosper Junior Bakiny (AbbVie): Investors looking for safety in this volatile market can't go wrong with AbbVie. That's why AbbVie can continue generating decent revenue and earnings even during a recession. | Here's why those chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). AbbVie: a rock-solid pharma giant at an attractive valuation Prosper Junior Bakiny (AbbVie): Investors looking for safety in this volatile market can't go wrong with AbbVie. That's why AbbVie can continue generating decent revenue and earnings even during a recession. | Here's why those chose AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Johnson & Johnson (NYSE: JNJ). AbbVie: a rock-solid pharma giant at an attractive valuation Prosper Junior Bakiny (AbbVie): Investors looking for safety in this volatile market can't go wrong with AbbVie. That's why AbbVie can continue generating decent revenue and earnings even during a recession. | 78256bf1-1315-494d-a87e-571a282ed70e |
23903.0 | 2021-09-23 00:00:00 UTC | Should You Buy Merck Stock At $72? | ABBV | https://www.nasdaq.com/articles/should-you-buy-merck-stock-at-%2472-2021-09-23 | nan | nan | The stock price of Merck (NYSE: MRK) reached its all-time high of around $82 in Sep 2020. It has since hovered in the range of $70-80 for the better part of the last year, and it currently trades at levels of around $72. We believe that MRK stock is undervalued at its current levels, and investors can use the recent dips as a buying opportunity for long-term gains, in our view. MRK stock is down more than 15% over the last year or so, despite revenue increasing 6% over the same period. Looking at a longer time period, MRK stock is up only 28% from the levels of around $56 seen toward the end of 2017, significantly underperforming the broader markets, with the S&P 500 rising 63%. The growth in Merck’s earnings was partly offset by a decline in its P/E multiple, resulting in slower stock appreciation.
Looking at its fundamentals, Merck’s total revenue actually grew 21% to $48.5 billion over the last twelve-month period, compared to $40.1 billion in 2017. The revenue growth can largely be attributed to market share gains for its mega-blockbuster drug – Keytruda – approved for multiple types of cancer treatments. Merck’s net income more than doubled since 2017 to $5.6 billion over the last twelve month period, driven by both a rise in revenues as well as margin expansion. The company also repurchased more shares over the recent years, resulting in a 7% fall in total shares outstanding since the end of 2017. As such, on a per share basis, Merck’s earnings surged 150% to $2.20 for the last twelve month period, compared to $0.88 in 2017. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. Our dashboard, Buy Or Fear Merck’s Stock has the underlying numbers.
Outlook
For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Though the Covid-19 pandemic surely impacted the sales growth for some of its drugs due to fewer hospital visits, and a lower vaccination rate for Gardasil and Proquad, this trend reversed in Q2, with Gardasil sales surging 88%. There are concerns over slowing sales of Januvia and Janumet, which are nearing their patent expiration. However, Merck is seeing steady growth in other areas, including its Animal Health business as well as Lynparaza and Lenvima alliance revenues. There has been a rise in pet ownership during the pandemic and this has resulted in an increased demand for animal health pharmaceuticals products at large, including those offered by Merck.
Merck’s cash-cow – Keytruda – continues to gain share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. Keytruda’s patents are protected for another seven years and it alone will likely garner over $25 billion in annual sales by 2026. With its recent spin-off of its women’s health, legacy brands, and biosimilars businesses, Merck can now focus on more profitable drugs, implying better margins going forward.
Overall, there are more positives for Merck to look forward to than the pessimism surrounding slowing sales growth for some of its drugs. Going by our Merck’s Valuation, with an adjusted EPS estimate of $5.65 and a P/E multiple of 16x in 2021, this translates into a price of $91, which is over 26% above the current market price of around $72.
While MRK stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Freeport vs UnitedHealth.
————————————————————————————– Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates ————————————————————————————–
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There has been a rise in pet ownership during the pandemic and this has resulted in an increased demand for animal health pharmaceuticals products at large, including those offered by Merck. Merck’s cash-cow – Keytruda – continues to gain share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. With its recent spin-off of its women’s health, legacy brands, and biosimilars businesses, Merck can now focus on more profitable drugs, implying better margins going forward. | The revenue growth can largely be attributed to market share gains for its mega-blockbuster drug – Keytruda – approved for multiple types of cancer treatments. As such, on a per share basis, Merck’s earnings surged 150% to $2.20 for the last twelve month period, compared to $0.88 in 2017. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. | The growth in Merck’s earnings was partly offset by a decline in its P/E multiple, resulting in slower stock appreciation. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. Outlook For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. | MRK stock is down more than 15% over the last year or so, despite revenue increasing 6% over the same period. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. Going by our Merck’s Valuation, with an adjusted EPS estimate of $5.65 and a P/E multiple of 16x in 2021, this translates into a price of $91, which is over 26% above the current market price of around $72. | 27c9ff30-14e2-4429-bd1f-18ce363b9ca6 |
23904.0 | 2021-09-22 00:00:00 UTC | 3 Cheap Healthcare Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-cheap-healthcare-stocks-to-buy-right-now-2021-09-22 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Covid-19 pandemic brought a renewed interest into the healthcare sector, and with the surging Delta variant raging across the country, that interest isn’t expected to dissipate anytime soon. Due to that attention, many healthcare stocks have reached sky-high valuations. It’s not just companies that offer vaccines and therapies for Covid, either.
In fact, the healthcare sector is one of the largest in the U.S. economy. It makes up close to 20% of gross domestic product (GDP). As the baby boomer generation gets older, there will be an increased need for pharmaceuticals, biotech therapies, and hospital stays. Approximately $3.8 trillion is spent on healthcare in the U.S., which is only expected to increase in upcoming years.
While healthcare stocks certainly deserve a place in your portfolio, it’s best to avoid stocks with high valuations. That’s why investors should consider healthcare stocks with an overall grade of “buy” and a Value Grade of A in our POWR Ratings system.
7 Undervalued Stocks to Keep an Eye on as We Head Towards October
Let’s highlight three stocks that meet that criteria below.
Ironwood Pharmaceuticals (NASDAQ:IRWD),
Nu Skin Enterprises (NYSE:NUS)
Bristol-Myers Squibb (NYSE:BMY)
Healthcare Stocks: Ironwood Pharmaceuticals, Inc. (IRWD)
Source: Shutterstock
IRWD is a specialty and generic drug manufacturing company that operates a human therapeutics segment. The company is focused on advancing innovative product opportunities in areas of large unmet need, including irritable bowel syndrome with constipation, chronic idiopathic constipation, hyperuricemia associated with uncontrolled gout, and vascular and fibrotic diseases.
The company benefits from strong sales of Linzess, a drug used to treat irritable bowel syndrome with constipation and chronic constipation. It sees strong demand and expansion in new patient populations as well as geographic regions.
ITWD is also focused on further label expansions of the drug to new indications and patient populations.
It is expected to grow double-digits in upcoming quarters. Linzess is the leader in its category with a 42% market share. The drug should even hit blockbuster status this year. Plus, it is well protected by patents, so it shouldn’t face generic competition until March 2029. Management is also focusing on its telemedicine efforts to boost its sales.
The separation of IRWD’s sGC pipeline into another entity, Cyclerion, also bodes well as it increases operational performance. IRWD has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The company has a Growth Grade of B as earnings per share rose 403.2% over the past year.
Plus, analysts expect earnings to grow 21.7% year over year in the current quarter. IRWD also has a Value Grade of A, which isn’t surprising, with a trailing price-earnings ratio of only 3.96. Its price-to-free-cash-flow ratio of 9 is also considerably less than the industry average. We also provide Momentum, Stability, Sentiment, and Quality grades for IRWD, which you can find here.
IRWD is ranked No. 21 in the Medical – Pharmaceuticals industry. For more top stocks in this industry, click here.
Nu Skin Enterprises, Inc. (NUS)
Source: Shutterstock
NUS is a health and beauty direct-selling company with a comprehensive product line that includes anti-aging skin products, peels, masks and scrubs, plus body care, hair care and cosmetics. The company has three main product divisions: anti-aging, skin, and pharmaceuticals. Its pharmaceuticals division offers nutritionals, weight-management products and food supplements.
The company has been benefiting from a focus on innovation and efforts to strengthen its sales leaders. This resulted in a strong second quarter where earnings per share of $1.15 surged 42% year over year. In the quarter, NUS saw consistent strength in its beauty device systems and further adoption of its social commerce strategy.
Due to this, management has revised its 2021 earnings per share guidance higher. Management now expects EPS between $4.30-$4.50, an 18%-24% increase in guidance. While the company sells and distributes through a network of sales leaders and customers, it has been conducting promotional seminars online and even rolled out its Velocity sales compensation plan and enJoy rewards program.
Both of these programs have aided growth. Plus, its person-to-person affiliate marketing channel has created more brand awareness and helped the firm acquire customers at a higher rate. NUS has an overall grade of B and a Buy rating in our POWR Ratings system. The company has a Value Grade of A due to low valuation metrics.
For instance, it has a trailing P/E of 9.34, and its price-to-sales ratio of 0.8 is well below the industry average of 4.6. NUS also has a Quality Grade of A due to a rock-solid balance sheet. The company has a current ratio of 1.6, which indicates it has more than enough liquidity to handle short-term obligations. NUS also has a low debt-to-equity ratio of 0.6.
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For the rest of NUS’s grades (Growth, Momentum, Stability, and Sentiment), click here. NUS is ranked No. 5 in the B-rated Medical – Consumer Goods industry. For more top stocks in this highly rated industry, click here.
Healthcare Stocks: Bristol-Myers Squibb Co. (BMY)
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Source: IgorGolovniov / Shutterstock.com
BMY discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, oncology, and immune disorders. A key focus for the company is immuno-oncology, where it is leading in drug development. The firm has also exited several nonpharmaceutical businesses to focus on its branded specialty drugs, which have strong pricing power.
The company is seeing strong performance from Revlimid and Eliquis. Its Celgene acquisition added multiple myeloma drug Revlimid to its portfolio. It is currently approved for several indications and is seeing longer treatment duration and market share gains in key markets. Empliciti, an IgG1 monoclonal antibody medication co-developed with AbbVie (NYSE:ABBV), also contributes to top-line growth.
BMY is also benefiting from a return to growth for its immuno-oncology drug Opdivo. The drug has received approval for several cancer indications. The drug has seen an increase in demand from commercial acceptance for several indications, including melanoma, hepatocellular carcinoma (HCC), renal cell carcinoma, and second-line non-small-cell lung cancer.
The company is also working on expanding the label of Opdivo. BMY has an overall grade of B, translating into a “buy” rating in our POWR Ratings system. The firm has a Growth Grade of B, as it has shown consistency in its revenue growth. Sales have grown an average of 20.3% per year over the past five years.
Analysts expect earnings to jump 19% year over year in the current quarter. BMY also has a Value Grade of B, which makes sense with a forward P/E of only 7.59. Its price-to-free-cash flow of 11.7 is also well below the industry average. To access all of BMY’s grades, including Momentum, Stability, Sentiment, and Quality, click here.
BMY is ranked No. 14 in the Medical – Pharmaceuticals industry.
On the date of publication, David Cohne did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent eleven years as a Consultant providing outsourcedinvestment researchand content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Empliciti, an IgG1 monoclonal antibody medication co-developed with AbbVie (NYSE:ABBV), also contributes to top-line growth. Plus, its person-to-person affiliate marketing channel has created more brand awareness and helped the firm acquire customers at a higher rate. 7 Buffett Stocks Trading at a Steep Discount You Need To Keep an Eye On For the rest of NUS’s grades (Growth, Momentum, Stability, and Sentiment), click here. | Empliciti, an IgG1 monoclonal antibody medication co-developed with AbbVie (NYSE:ABBV), also contributes to top-line growth. Ironwood Pharmaceuticals (NASDAQ:IRWD), Nu Skin Enterprises (NYSE:NUS) Bristol-Myers Squibb (NYSE:BMY) Healthcare Stocks: Ironwood Pharmaceuticals, Inc. (IRWD) Source: Shutterstock IRWD is a specialty and generic drug manufacturing company that operates a human therapeutics segment. The company benefits from strong sales of Linzess, a drug used to treat irritable bowel syndrome with constipation and chronic constipation. | Empliciti, an IgG1 monoclonal antibody medication co-developed with AbbVie (NYSE:ABBV), also contributes to top-line growth. That’s why investors should consider healthcare stocks with an overall grade of “buy” and a Value Grade of A in our POWR Ratings system. Ironwood Pharmaceuticals (NASDAQ:IRWD), Nu Skin Enterprises (NYSE:NUS) Bristol-Myers Squibb (NYSE:BMY) Healthcare Stocks: Ironwood Pharmaceuticals, Inc. (IRWD) Source: Shutterstock IRWD is a specialty and generic drug manufacturing company that operates a human therapeutics segment. | Empliciti, an IgG1 monoclonal antibody medication co-developed with AbbVie (NYSE:ABBV), also contributes to top-line growth. 21 in the Medical – Pharmaceuticals industry. 14 in the Medical – Pharmaceuticals industry. | f88e9540-26e8-40ca-9fab-fa14290e43c1 |
23905.0 | 2021-09-20 00:00:00 UTC | AbbVie Seeks Approval For SKYRIZI Based On Data From Three Phase 3 Studies | ABBV | https://www.nasdaq.com/articles/abbvie-seeks-approval-for-skyrizi-based-on-data-from-three-phase-3-studies-2021-09-20 | nan | nan | (RTTNews) - AbbVie (ABBV) has submitted an application to the FDA seeking approval for risankizumab-rzaa or SKYRIZI, for the treatment of patients 16 years and older with moderate to severe Crohn's disease. The submission is supported by data from three phase 3 studies - ADVANCE, MOTIVATE and FORTIFY.
Crohn's disease is a chronic disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea, abdominal pain, and rectal bleeding.
SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) has submitted an application to the FDA seeking approval for risankizumab-rzaa or SKYRIZI, for the treatment of patients 16 years and older with moderate to severe Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The submission is supported by data from three phase 3 studies - ADVANCE, MOTIVATE and FORTIFY. | (RTTNews) - AbbVie (ABBV) has submitted an application to the FDA seeking approval for risankizumab-rzaa or SKYRIZI, for the treatment of patients 16 years and older with moderate to severe Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Crohn's disease is a chronic disease that manifests as inflammation within the gastrointestinal tract, causing persistent diarrhea, abdominal pain, and rectal bleeding. | (RTTNews) - AbbVie (ABBV) has submitted an application to the FDA seeking approval for risankizumab-rzaa or SKYRIZI, for the treatment of patients 16 years and older with moderate to severe Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The submission is supported by data from three phase 3 studies - ADVANCE, MOTIVATE and FORTIFY. | (RTTNews) - AbbVie (ABBV) has submitted an application to the FDA seeking approval for risankizumab-rzaa or SKYRIZI, for the treatment of patients 16 years and older with moderate to severe Crohn's disease. SKYRIZI is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The submission is supported by data from three phase 3 studies - ADVANCE, MOTIVATE and FORTIFY. | adbb3479-0fbb-4b3d-9ed2-0b3915526032 |
23906.0 | 2021-09-20 00:00:00 UTC | Best Dividend Stocks In 2021? 4 To Watch This Week | ABBV | https://www.nasdaq.com/articles/best-dividend-stocks-in-2021-4-to-watch-this-week-2021-09-20 | nan | nan | 4 Dividend Stocks Worth Checking Out In A Down Market
As we begin another trading week, dividend stocks are once again at the forefront for investors. For the most part, this could be thanks to various factors, international and domestic, that are weighing on the stock market today. To begin, the market appears to be reacting to significant declines in overseas equities. The likes of which are closely linked to the possible default of a major Chinese real estate company, Evergrande. If anything, this would echo the aftermath of a recent slew of disappointing international economic data influencing the overall recovery trade now.
At the same time, investors could also be treading lightly ahead of the Federal Reserve’s September meeting. The monetary policy meeting would be the launching point for additional debate regarding the Fed’s tapering and overall economic outlook. Now, how would dividend stocks fit into all of this? Simply put, dividend stocks would be a more defensive play in the stock market now. Given the numerous factors contributing to overall volatility across the board, some consistent income in the form of dividends would be appealing.
Accordingly, companies such as Consolidated Edison (NYSE: ED) and Archer-Daniels-Midland (NYSE: ADM) would come into play. This is mostly because of their long history of dividend growth and a constant demand for their services regardless of the current economic cycle. Among the top dividend stocks now are also industry giants that boast massive operations spanning the globe. With all that said, here are four dividend stocks to note now.
Top Dividend Stocks To Buy [Or Sell] This Week
Apple Inc. (NASDAQ: AAPL)
3M Inc. (NYSE: MMM)
AbbVie Inc. (NYSE: ABBV)
Microsoft Corporation (NASDAQ: MSFT)
Apple Inc.
First up, we have Apple, a multinational technology company that manufactures and sells its premium line of tech products. On top of that, it also offers a wide variety of services like its Apple TV+ video-on-demand streaming service and Apple Music. Furthermore, the company is one of the world’s most valuable brands and boasts a high level of brand loyalty among its users. AAPL stock currently trades at $142.94 as of Monday’s close. Its last dividend was declared in July at $0.22 per share.
The company has just recently announced its latest lineup of iPhone models. In fact, its iPhone 13 sales have just begun and millions have already placed orders for them. The company’s lineup this year also packs the latest features like a new A15 processor and 120 Hz display screen on its Pro model.
The company’s deals are also more aggressive this year and have partnered with carriers like T-Mobile (NASDAQ: TMUS) to offer huge incentives for users to trade in their old devices and sign up for a top-shelf cellular plan. Given this exciting piece of news surrounding the company, will you consider adding AAPL stock to your watchlist right now?
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The 3M Company
3M is a dividend company that has businesses in consumer goods, health care, worker safety, and industrials. Its products improve lives and help solve the world’s toughest challenges. The company’s portfolio of products includes abrasives and adhesives that are used for construction and are engineered to fit its customers’ needs.
Its array of high-performance materials are used to meet the demands of real-world manufacturing. MMM stock currently trades $180.53 at the end of Monday’s trading session. On August 13, 2021, the company declared a dividend on the company’s common stock of $1.48 per share for the third quarter.
Last week, the company announced that it’s Industrial Adhesives and Tapes Division is evolving its Bonding Process Centers in the U.S., Germany, and China to facilitate the growing trend towards automation in manufacturing. 3M will provide a starting point from which it will design and plan automated bonding solutions. The company will also have sessions to highlight how the company’s growing capabilities can be applied to increase more positive business outcomes for manufacturing and assembly businesses. For these reasons, will you consider MMM stock a buy today?
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AbbVie Inc.
Following that, we have AbbVie, a company that develops and commercializes advanced therapies. It has over 48,000 employees globally that strive to help patients by providing them next-generation treatments and therapies. It focuses on several key therapeutic areas like immunology, oncology, neuroscience, and eye care among others. ABBV stock trades at $106.40 a share as of Monday’s close and has enjoyed gains of over 18% in the past year.
Today, the company announced that it has submitted an application to the FDA seeking approval for Risankizumab-rzaa, an interleukin-23 inhibitor for the treatment of patients 16 years and older with moderate to severe Crohn’s disease. The company submitted its safety and efficacy data from three Phase 3 studies to the FDA for this approval.
“While there have been advancements in care, many people with Crohn’s disease do not achieve lasting remission,” said Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie. “This submission is an important step forward in our commitment to providing an additional treatment option for those who struggle with this debilitating and often unpredictable disease.” With that being said, will you consider adding ABBV stock to your portfolio?
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Microsoft Corporation
Another name to consider among dividend stocks in thestock market todaywould be the Microsoft Corporation. Sure, while Microsoft is not often first on most dividend stock lists, the company is not stingy when it comes to increasing its payouts. Namely, Microsoft has and continues to steadily grow its dividends for about 11 years. Thanks to its latest dividend hike, MSFT stock could be in focus among dividend investors now. As it stands, the company’s shares currently trade at $294.30 as of Monday’s closing bell after gaining 37% year-to-date.
In terms of its dividend, Microsoft announced that it would be boosting its dividend by a whopping 11% last week. While this adds up to a $0.06 per share quarterly payout, investors would be buying into the tech giants’ offerings as well. With pandemic conditions persisting worldwide, demand for Microsoft’s offerings could follow suit.
Even now, the company appears to be kicking into high gear across the board. Together with its dividend hike, Microsoft also plans to initiate a $60 billion share repurchase program, its largest to date. After considering all of this, would MSFT stock be worth investing in?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “While there have been advancements in care, many people with Crohn’s disease do not achieve lasting remission,” said Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie. Top Dividend Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) 3M Inc. (NYSE: MMM) AbbVie Inc. (NYSE: ABBV) Microsoft Corporation (NASDAQ: MSFT) Apple Inc. First up, we have Apple, a multinational technology company that manufactures and sells its premium line of tech products. 5 To Watch AbbVie Inc. | Top Dividend Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) 3M Inc. (NYSE: MMM) AbbVie Inc. (NYSE: ABBV) Microsoft Corporation (NASDAQ: MSFT) Apple Inc. First up, we have Apple, a multinational technology company that manufactures and sells its premium line of tech products. 5 To Watch AbbVie Inc. Following that, we have AbbVie, a company that develops and commercializes advanced therapies. | Top Dividend Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) 3M Inc. (NYSE: MMM) AbbVie Inc. (NYSE: ABBV) Microsoft Corporation (NASDAQ: MSFT) Apple Inc. First up, we have Apple, a multinational technology company that manufactures and sells its premium line of tech products. 5 To Watch AbbVie Inc. Following that, we have AbbVie, a company that develops and commercializes advanced therapies. | Top Dividend Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) 3M Inc. (NYSE: MMM) AbbVie Inc. (NYSE: ABBV) Microsoft Corporation (NASDAQ: MSFT) Apple Inc. First up, we have Apple, a multinational technology company that manufactures and sells its premium line of tech products. 5 To Watch AbbVie Inc. Following that, we have AbbVie, a company that develops and commercializes advanced therapies. | 7ee263d8-3ce7-4d1f-9899-c39231493503 |
23907.0 | 2021-09-20 00:00:00 UTC | AbbVie Is Worth 28% More Based on Impressive Dividends | ABBV | https://www.nasdaq.com/articles/abbvie-is-worth-28-more-based-on-impressive-dividends-2021-09-20 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie (NYSE:ABBV) stock is cheap and has a very attractive prospective dividend yield. In addition, this pharmaceutical company’s growth prospects are high. As a result, ABBV stock is likely worth significantly more than the price of $107.73 as of Sept. 17.
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Source: Piotr Swat / Shutterstock.com
ABBV is basically flat for the year, as it closed 2020 at $107.15. But this is after it rose to a peak closing price of $120.78 on Aug. 31. Since then, the stock has fallen by about 10.8%.
The reason behind the move is that the FDA now requires AbbVie’s RINVOQ, one of its blockbuster arthritis drugs, to have a heart-related event risk label put on the dispensing bottles. This could eventually lower sales of the drug.
That’s the Bad News. Here is the Good News.
However, AbbVie is now in a good position for many value investors to buy its shares. One reason is that the company is likely to announce an increase in its dividend per share next month, based on its historical patterns.
7 Dividend Stocks to Buy With Yields Over 4%
For example, on Sept. 10, AbbVie just declared a $1.30 per share quarterly dividend payment. But it typically announces a higher payment for the next 12 months at the end of October or the first week of November.
For example, on Oct. 30, 2020, AbbVie declared a dividend per share (DPS) of $1.30, which was 10.2% higher than the previous quarterly DPS of $1.18 declared on Sept. 11, 2020. This $1.30 payment was declared for 4 four quarters and now the next dividend declaration is likely to be 10% higher. This implies that by Oct. 30, it could announce a DPS of $1.43 per share.
Dividend Per Share Growth
That makes ABBV stock quite valuable. For one, its prospective annualized DPS of $5.72 represents a dividend yield of 5.3% on today’s price of $107.73 per share.
For another, this confirms that the company is consistently growing its dividend. For example, Seeking Alpha reports that its three-year history of dividend hikes average more than 15.8% annually and more than 18% annually over the past five years.
Moreover, the dividend is likely to be well-covered by prospective earnings. Analysts foresee the company making $12.61 in 2021 and $13.83 in 2022. This is according to 20 analysts’ reports surveyed by Seeking Alpha. It also means that the 2022 dividend will be more than 150% covered by prospective earnings per share (EPS).
Valuing ABBV Stock with Dividend Yields and P/E
One way to value the stock is to compare its present dividend yield to its historical yield. For example, in the past four years, ABBV stock has had an average dividend yield of 4.43%, much lower than today’s 5.3% dividend yield using the forecast higher DPS of $5.72.
Therefore, in order to value ABBV stock using its historical dividend yield, we divide the $5.72 DPS by 4.43%. That equals $133.02 per share and implies ABBV stock is worth 23.5% more than its Sept. 17 price of $107.73.
Another way to measure its value is to compare the forecast earnings per share (EPS) with its historical price-to-earnings (P/E) ratio. Now that AbbVie has completed its acquisition of Allergan, it is not as reliant on its arthritis drug, Humira. Therefore, the bad news from the FDA won’t impact its EPS as badly as it would have before the acquisition.
Morningstar indicates that AbbVie’s 5-year average forward P/E ratio is 10.4x. So if we multiply its 2022 EPS estimate of $13.83 by 10.4, the resulting price target is $143.83 per share. This represents an upside of 33.5% over today’s price.
Therefore, the average of the historical dividend yield model of $133.02 and the historical P/E model of $143.83 is $138.43. That represents an upside of 28.5% over today’s price.
What to Do With ABBV Stock
AbbVie is likely to see good news with a higher dividend per share declaration next month. Once the market realizes the company’s earnings are not going to trend down to zero, it could rise to $138.43.
ABBV stock is at a trough now. It probably makes sense for value investors to either take a new position or average down into their existing holdings. They can rest assured that historically, the stock is worth considerably more.
On the date of publication, Mark R. Hake did not have a position in any security (directly or indirectly) mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
The post AbbVie Is Worth 28% More Based on Impressive Dividends appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The reason behind the move is that the FDA now requires AbbVie’s RINVOQ, one of its blockbuster arthritis drugs, to have a heart-related event risk label put on the dispensing bottles. What to Do With ABBV Stock AbbVie is likely to see good news with a higher dividend per share declaration next month. InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV) stock is cheap and has a very attractive prospective dividend yield. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV) stock is cheap and has a very attractive prospective dividend yield. For example, in the past four years, ABBV stock has had an average dividend yield of 4.43%, much lower than today’s 5.3% dividend yield using the forecast higher DPS of $5.72. As a result, ABBV stock is likely worth significantly more than the price of $107.73 as of Sept. 17. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV) stock is cheap and has a very attractive prospective dividend yield. Valuing ABBV Stock with Dividend Yields and P/E One way to value the stock is to compare its present dividend yield to its historical yield. For example, in the past four years, ABBV stock has had an average dividend yield of 4.43%, much lower than today’s 5.3% dividend yield using the forecast higher DPS of $5.72. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE:ABBV) stock is cheap and has a very attractive prospective dividend yield. For example, in the past four years, ABBV stock has had an average dividend yield of 4.43%, much lower than today’s 5.3% dividend yield using the forecast higher DPS of $5.72. As a result, ABBV stock is likely worth significantly more than the price of $107.73 as of Sept. 17. | 0cb1d90f-d369-4cf6-af2d-f8a849f99efd |
23908.0 | 2021-09-19 00:00:00 UTC | Is AbbVie a Bad News Buy? | ABBV | https://www.nasdaq.com/articles/is-abbvie-a-bad-news-buy-2021-09-19 | nan | nan | The U.S. Food and Drug Administration recently announced restrictions on JAK inhibitors that hurt AbbVie's (NYSE: ABBV) prospects for autoimmune disease drug Rinvoq. AbbVie stock sank more than 10% after the FDA's decision. In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie stock is now a bad news buy.
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Keith Speights: Now, Brian, there was some more big news over the last several days. The FDA seems to have taken, what I would say is a really hard line, on JAK inhibitors that treat rheumatoid arthritis.
The FDA is limiting the use of these drugs only to patients who've previously tried and failed on a TNF blocker. Now, this news caused AbbVie stock, in particular, to sink. Do you think the sell-off was warranted, or do you think AbbVie could be a bad news buy right now?
Brian Orelli: We've been talking about this story basically for the entire year. Pfizer (NYSE: PFE) had some bad news in January that showed its JAK inhibitor, Xeljanz, increased the likelihood of patients to get cancer and also, it increased the likelihood of developing cardiovascular events, so heart attacks, strokes, that sort of thing.
The FDA has been reviewing the data, and it put off making decisions on multiple JAK inhibitors, ones from Pfizer and AbbVie and then one that's being developed by Eli Lilly (NYSE: LLY) and Incyte (NASDAQ: INCY), and that's for various different indications.
The FDA is requiring safety warnings on Xeljanz, but it's also put those same safety warnings for the JAK inhibitors that are approved right now. Olumiant from Eli Lilly, and then Rinvoq from Insight and AbbVie. I'm sorry, Olumiant is from Eli Lilly and Incyte, and then Rinvoq is from AbbVie. Rinvoq is a lot more important to AbbVie's future than Xeljanz is to Pfizer, or Olumiant is to Eli Lilly and Incyte, so I think that's the reason why it fell 10%.
AbbVie is looking to expand Rinvoq beyond rheumatoid arthritis into eczema and psoriatic arthritis and ankylosing spondylitis. The ironic part of this news is that TNF inhibitors will benefit and AbbVie, of course, has Humira, which is a TNF inhibitor. But of course, investors are rightfully worried about the long-term prospects of Humira since the drug has a potential for having biosimilar competition as early as 2023.
Overall, I think this is a negative and definitely warranted for the drop. I'm a little surprised it wasn't already priced into the stock. I haven't really looked at the valuation of AbbVie that much. I felt this was coming, so I was a little surprised at the 10% drop, but apparently, generally investors weren't really expecting it.
But whether it's a good value right now, I don't really know. There's a lot of moving parts for AbbVie in its future that make it so hard to value in. It's not a company that I keep an eye on its valuation all that much. I follow the company and its drugs, especially if they're going to compete with other drugs of companies that I do own, but I don't know how to value AbbVie that well.
What did you think? Do you think it's a good buy?
Speights: It's been cheap for a while. This was a tougher line from the FDA than some expected, a little tougher line than I expected. It is important to note that AbbVie does have another autoimmune disease drug, Skyrizi, that it was counting on along with Rinvoq to be its successors to Humira.
It'll be interesting to see if the company comes out and really starts pushing Skyrizi more, or if they get creative on how they're going to prop up Rinvoq and try to push for its sales to be closer to what they wanted.
I think overall, AbbVie is still a pretty good buy, especially if you're an income-seeking investor. It's a dividend aristocrat, wonderful dividend, high yield. The company is going to have plenty of cash flow, even with Humira losing exclusivity or facing biosimilar rivals in the US in a couple of years. It's not a good stock for everybody, but I think it's a pretty good stock for some types of investors.
Orelli: It reminds me a lot of Pfizer when Lipitor was about to go off patent. It seemed like it was really cheap, and it just kept getting cheaper and cheaper, and so that's my worry with AbbVie right now.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The FDA has been reviewing the data, and it put off making decisions on multiple JAK inhibitors, ones from Pfizer and AbbVie and then one that's being developed by Eli Lilly (NYSE: LLY) and Incyte (NASDAQ: INCY), and that's for various different indications. Rinvoq is a lot more important to AbbVie's future than Xeljanz is to Pfizer, or Olumiant is to Eli Lilly and Incyte, so I think that's the reason why it fell 10%. The U.S. Food and Drug Administration recently announced restrictions on JAK inhibitors that hurt AbbVie's (NYSE: ABBV) prospects for autoimmune disease drug Rinvoq. | The U.S. Food and Drug Administration recently announced restrictions on JAK inhibitors that hurt AbbVie's (NYSE: ABBV) prospects for autoimmune disease drug Rinvoq. In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie stock is now a bad news buy. Rinvoq is a lot more important to AbbVie's future than Xeljanz is to Pfizer, or Olumiant is to Eli Lilly and Incyte, so I think that's the reason why it fell 10%. | In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie stock is now a bad news buy. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! The FDA has been reviewing the data, and it put off making decisions on multiple JAK inhibitors, ones from Pfizer and AbbVie and then one that's being developed by Eli Lilly (NYSE: LLY) and Incyte (NASDAQ: INCY), and that's for various different indications. | In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss whether or not AbbVie stock is now a bad news buy. The FDA has been reviewing the data, and it put off making decisions on multiple JAK inhibitors, ones from Pfizer and AbbVie and then one that's being developed by Eli Lilly (NYSE: LLY) and Incyte (NASDAQ: INCY), and that's for various different indications. The U.S. Food and Drug Administration recently announced restrictions on JAK inhibitors that hurt AbbVie's (NYSE: ABBV) prospects for autoimmune disease drug Rinvoq. | 9720a4b5-8dc8-467c-8f20-722616a88e0c |
23909.0 | 2021-09-18 00:00:00 UTC | AbbVie's Pain Is Sanofi's and Regeneron's Gain | ABBV | https://www.nasdaq.com/articles/abbvies-pain-is-sanofis-and-regenerons-gain-2021-09-18 | nan | nan | The U.S. Food and Drug Administration recently announced that it's requiring a warning about potential health issues linked to JAK inhibitors. The agency is also restricting the use of the drugs to patients who were unsuccessfully treated with at least one TNF inhibitor.
This decision especially hurts AbbVie (NYSE: ABBV). The big pharma company was counting on JAK inhibitor Rinvoq to deliver strong sales growth. In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss how the FDA decision that's causing pain for AbbVie should help Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN).
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Keith Speights: Now this FDA decision to restrict JAK inhibitors to treat rheumatoid arthritis only for patients who failed on a TNF blocker especially hurt AbbVie. But where there are losers, there are also usually winners. Which companies do you think benefited the most from the FDA's JAK inhibitor decision?
Brian Orelli: I think Sanofi and Regeneron seems like the biggest winner. It has Dupixent. The drug doesn't necessarily have as good of efficacy as some other JAK inhibitors for eczema, and Pfizer's second-generation JAK inhibitor, Abrocitinib, beat Dupixent recently in a head-to-head study, but it clearly has a better safety profile than the JAK inhibitors as a class.
I think the safety is going to keep doctors using Dupixent before the JAK inhibitors, and maybe they'll reserve the JAK inhibitors for patients who aren't helped by other drugs.
Speights: I think you're right. I think Sanofi and Regeneron are the clear winners here. Dupixent is already a big commercial success story for those companies. I think it picks up even more sales as a result of this FDA decision.
Orelli: Yeah. It's also used in asthma as well, I believe, and so it has the sales for that, too, which obviously, it won't benefit from the JAK there, but definitely, in eczema, I think it'll pick up some sales compared to JAK inhibitors.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss how the FDA decision that's causing pain for AbbVie should help Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). This decision especially hurts AbbVie (NYSE: ABBV). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Keith Speights: Now this FDA decision to restrict JAK inhibitors to treat rheumatoid arthritis only for patients who failed on a TNF blocker especially hurt AbbVie. | In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss how the FDA decision that's causing pain for AbbVie should help Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Keith Speights: Now this FDA decision to restrict JAK inhibitors to treat rheumatoid arthritis only for patients who failed on a TNF blocker especially hurt AbbVie. This decision especially hurts AbbVie (NYSE: ABBV). | In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss how the FDA decision that's causing pain for AbbVie should help Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Keith Speights: Now this FDA decision to restrict JAK inhibitors to treat rheumatoid arthritis only for patients who failed on a TNF blocker especially hurt AbbVie. This decision especially hurts AbbVie (NYSE: ABBV). | In this Motley Fool Live video recorded on Sept. 8, Motley Fool contributors Keith Speights and Brian Orelli discuss how the FDA decision that's causing pain for AbbVie should help Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Keith Speights: Now this FDA decision to restrict JAK inhibitors to treat rheumatoid arthritis only for patients who failed on a TNF blocker especially hurt AbbVie. This decision especially hurts AbbVie (NYSE: ABBV). | 3a9b2c07-2211-4e55-98f0-e0e3a88e8b39 |
23910.0 | 2021-09-17 00:00:00 UTC | Why BeiGene's Shares Jumped on Friday | ABBV | https://www.nasdaq.com/articles/why-beigenes-shares-jumped-on-friday-2021-09-17 | nan | nan | What happened
BeiGene (NASDAQ: BGNE), a Chinese pharmaceutical company, saw its shares rise more than 10% in early trading on Friday. The stock, which closed at $385.24 on Thursday, opened Friday at $422 a share, climbing as high as $426.56 in mid-morning trading. The stock is up more than 55% year to date.
IMAGE SOURCE: GETTY IMAGES
So what
The company has been on a roll lately with its lead oncology drug, Brukinsa (zanubrutinib). On Wednesday, BeiGene said that the Food and Drug Administration had granted accelerated approval to Brukinsa as a therapy for patients with relapsed or refractory marginal zone lymphoma who have already had at least one regimen of an anti-CD20-based antibody treatment. Anti-CD20 antibodies kill immune B-cells, which can cause inflammation.
It is the third FDA approval for the drug; previously it was cleared for use as a treatment for Waldenström's macroglobulinemia and mantle cell lymphoma in patients who had already received a prior therapy. BeiGene is also waiting to see if the FDA will approve Brukinsa's use as a therapy for chronic lymphocytic leukemia.
Plus, on Friday, the company announced that the European Medicines Agency's Committee for Medical Products for Human Use was recommending approval for Brukinsa to treat adults with Waldenström's macroglobulinemia who have already undergone treatment with a different therapy or for patients for whom chemotherapy was unsuitable.
Now what
Brukinsa is in a class of drugs that inhibit a protein called Bruton's tyrosine kinase (BTK), which is associated with various B-cell malignancies. If Brukinsa can show superior efficacy and safety to Imbruvica, the market's top-selling BTK inhibitor, that would be a big deal: AbbVie made $5.3 billion last year in revenue from Imbruvica.
BeiGene, a biotech company, reported $755.8 million in revenue through the first six months of 2021, up 542% year over year. That included revenue of $42.4 million from Brukinsa, compared to $7 million in the same period last year. However, BeiGene is still losing money, to the tune of $413.8 million through the first half of the year.
As Brukinsa's applications expand, though, so too will the drug's revenues, allowing BeiGene to fund its other clinical trials and giving it further potential for considerable growth.
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Jim Halley owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If Brukinsa can show superior efficacy and safety to Imbruvica, the market's top-selling BTK inhibitor, that would be a big deal: AbbVie made $5.3 billion last year in revenue from Imbruvica. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jim Halley owns shares of AbbVie. On Wednesday, BeiGene said that the Food and Drug Administration had granted accelerated approval to Brukinsa as a therapy for patients with relapsed or refractory marginal zone lymphoma who have already had at least one regimen of an anti-CD20-based antibody treatment. | See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jim Halley owns shares of AbbVie. If Brukinsa can show superior efficacy and safety to Imbruvica, the market's top-selling BTK inhibitor, that would be a big deal: AbbVie made $5.3 billion last year in revenue from Imbruvica. It is the third FDA approval for the drug; previously it was cleared for use as a treatment for Waldenström's macroglobulinemia and mantle cell lymphoma in patients who had already received a prior therapy. | If Brukinsa can show superior efficacy and safety to Imbruvica, the market's top-selling BTK inhibitor, that would be a big deal: AbbVie made $5.3 billion last year in revenue from Imbruvica. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jim Halley owns shares of AbbVie. On Wednesday, BeiGene said that the Food and Drug Administration had granted accelerated approval to Brukinsa as a therapy for patients with relapsed or refractory marginal zone lymphoma who have already had at least one regimen of an anti-CD20-based antibody treatment. | If Brukinsa can show superior efficacy and safety to Imbruvica, the market's top-selling BTK inhibitor, that would be a big deal: AbbVie made $5.3 billion last year in revenue from Imbruvica. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jim Halley owns shares of AbbVie. BeiGene, a biotech company, reported $755.8 million in revenue through the first six months of 2021, up 542% year over year. | ffb1a095-aa77-4c8d-b2ad-81fe89e6d797 |
23911.0 | 2021-09-17 00:00:00 UTC | What's Next For Merck Stock After A 5% Fall In A Week? | ABBV | https://www.nasdaq.com/articles/whats-next-for-merck-stock-after-a-5-fall-in-a-week-2021-09-17 | nan | nan | The stock price of Merck (NYSE: MRK) reached its all-time high of around $82 in Sep 2020. It has since hovered in the range of $70-80 for the better part of the last year, before a recent sell-off in pharmaceutical stocks resulted in MRK falling to $72 levels currently. MRK stock is down over 5% in the last five trading days. Even before the recent fall, MRK stock underperformed its peers, due to rising concerns of slowing sales for some of its drugs, such as, Januvia and Janumet, along with the impact of the Covid-19 pandemic on its vaccines, including Gardasil. However, the recent decline can be attributed to rising concerns over the Biden’s administration’s plan to reduce healthcare costs, including negotiating the drug prices in its Medicare program. But will MRK stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent?
According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 4.1% in the next one-month (twenty-one trading days) period after experiencing a 5.1% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. But how would the returns fare if you are interested in holding MRK stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Merck stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF MRK stock moved by -5% over five trading days, THEN over the next twenty-one trading days MRK stock moves an average of 4%, with a strong 77% probability of a positive return over this period.
Some Fun Scenarios, FAQs & Making Sense of Merck Stock Movements:
Question 1: Is the average return for Merck stock higher after a drop?
Answer: Consider two situations,
Case 1: Merck stock drops by -5% or more in a week
Case 2: Merck stock rises by 5% or more in a week
Is the average return for Merck stock higher over the subsequent month after Case 1 or Case 2?
MRK stock fares better after Case 1, with an average return of 4.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of -0.4% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Merck stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Merck stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For MRK stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Merck after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
It’s pretty powerful to test the trend for yourself for Merck stock by changing the inputs in the charts above.
While MRK stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Freeport vs UnitedHealth.
————————————————————————————– Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates ————————————————————————————–
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Even before the recent fall, MRK stock underperformed its peers, due to rising concerns of slowing sales for some of its drugs, such as, Januvia and Janumet, along with the impact of the Covid-19 pandemic on its vaccines, including Gardasil. However, the recent decline can be attributed to rising concerns over the Biden’s administration’s plan to reduce healthcare costs, including negotiating the drug prices in its Medicare program. Answer: If you buy and hold Merck stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 4.1% in the next one-month (twenty-one trading days) period after experiencing a 5.1% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Merck stock chances of a rise after a fall. MACHINE LEARNING ENGINE – try it yourself: IF MRK stock moved by -5% over five trading days, THEN over the next twenty-one trading days MRK stock moves an average of 4%, with a strong 77% probability of a positive return over this period. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 4.1% in the next one-month (twenty-one trading days) period after experiencing a 5.1% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. Answer: Consider two situations, Case 1: Merck stock drops by -5% or more in a week Case 2: Merck stock rises by 5% or more in a week Is the average return for Merck stock higher over the subsequent month after Case 1 or Case 2? MRK stock fares better after Case 1, with an average return of 4.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of -0.4% for Case 2. | You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day! MACHINE LEARNING ENGINE – try it yourself: IF MRK stock moved by -5% over five trading days, THEN over the next twenty-one trading days MRK stock moves an average of 4%, with a strong 77% probability of a positive return over this period. For MRK stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500: You can try the engine to see what this table looks like for Merck after a larger loss over the last week, month, or quarter. | 68491ec5-d093-4887-a6ed-53c50a7b1a91 |
23912.0 | 2021-09-16 00:00:00 UTC | AbbVie Files For FDA And EMA Approval Of Upadacitinib For Ulcerative Colitis | ABBV | https://www.nasdaq.com/articles/abbvie-files-for-fda-and-ema-approval-of-upadacitinib-for-ulcerative-colitis-2021-09-16 | nan | nan | (RTTNews) - AbbVie (ABBV), on Thursday, announced that it has submitted applications to the FDA and European Medicines Agency, pursuing expanded approval for Upadacitinib.
The company is seeking approval for Upadacitinib (15 mg and 30 mg (maintenance dose) and 45 mg (induction dose)) for the treatment of adults with moderately to severely active ulcerative colitis from the two regulatory agencies.
Upadacitinib, under brand name RINVOQ, in dosage of 15mg is already approved by the FDA for adults with moderately to severely active rheumatoid arthritis. RINVOQ 15 mg also is approved in the EU for adults with moderate to severe active rheumatoid arthritis, adults with active psoriatic arthritis (PsA), adults with active ankylosing spondylitis (AS), and adults and adolescents 12 years and older with moderate to severe atopic dermatitis (AD).
RINVOQ 30 mg is approved in the EU for adults with moderate to severe atopic dermatitis under age 65.
The drug generated global net revenue of $731 million in full-year 2020 and $681 million in the first half of 2021.
Commenting on the regulatory filings, Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie, said, "Upadacitinib has the potential to be an important new treatment option for people with ulcerative colitis, who want to address these challenging and disruptive symptoms. We look forward to working with regulatory authorities and hope to bring upadacitinib to people with ulcerative colitis as quickly as possible."
ABBV has traded in the range of $79.11 to $121.53 in the 52-week period. It is currently trading at $107.59, down $0.18 or 0.17 percent from previous close.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV), on Thursday, announced that it has submitted applications to the FDA and European Medicines Agency, pursuing expanded approval for Upadacitinib. Commenting on the regulatory filings, Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie, said, "Upadacitinib has the potential to be an important new treatment option for people with ulcerative colitis, who want to address these challenging and disruptive symptoms. ABBV has traded in the range of $79.11 to $121.53 in the 52-week period. | (RTTNews) - AbbVie (ABBV), on Thursday, announced that it has submitted applications to the FDA and European Medicines Agency, pursuing expanded approval for Upadacitinib. Commenting on the regulatory filings, Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie, said, "Upadacitinib has the potential to be an important new treatment option for people with ulcerative colitis, who want to address these challenging and disruptive symptoms. ABBV has traded in the range of $79.11 to $121.53 in the 52-week period. | (RTTNews) - AbbVie (ABBV), on Thursday, announced that it has submitted applications to the FDA and European Medicines Agency, pursuing expanded approval for Upadacitinib. Commenting on the regulatory filings, Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie, said, "Upadacitinib has the potential to be an important new treatment option for people with ulcerative colitis, who want to address these challenging and disruptive symptoms. ABBV has traded in the range of $79.11 to $121.53 in the 52-week period. | (RTTNews) - AbbVie (ABBV), on Thursday, announced that it has submitted applications to the FDA and European Medicines Agency, pursuing expanded approval for Upadacitinib. Commenting on the regulatory filings, Tom Hudson, senior vice president of research and development, chief scientific officer, AbbVie, said, "Upadacitinib has the potential to be an important new treatment option for people with ulcerative colitis, who want to address these challenging and disruptive symptoms. ABBV has traded in the range of $79.11 to $121.53 in the 52-week period. | ef616edf-7b94-41f6-a470-994e69d7fccc |
23913.0 | 2021-09-16 00:00:00 UTC | 2 Embarrassingly Cheap Dividend Stocks to Buy | ABBV | https://www.nasdaq.com/articles/2-embarrassingly-cheap-dividend-stocks-to-buy-2021-09-16 | nan | nan | Benjamin Graham, the father of value investing and mentor to Warren Buffett, explained that in the short term, the market is a "voting machine" and stocks are judged by their popularity with investors. But in the long term, he continued, the market is a "weighing machine" -- meaning a stock's fundamentals are what matter most.
Undervalued dividend stocks are especially attractive in today's market, which appears to be fully valued at best and meaningfully overvalued at worst. That's because when a dividend stock is trading below its fair value, the starting dividend yield is higher -- mitigating the risk of excessive downside in a market correction.
Astute investors can take advantage of the occasional disconnect between a dividend stock's popularity with investors and its true fundamentals. Here are two dividend stocks offering yields above 4% that are solid value picks for patient investors.
Image source: Getty Images.
A battle-tested REIT
The first value stock that presents an under-the-radar opportunity compared to the broader market is the real estate investment trust (REIT) STORE Capital (NYSE: STOR).
STORE Capital held up well last year considering that health club tenants (5.3% of Q2 2020 annualized base rent or ABR) and movie theater tenants (4% of Q2 2020 ABR) were adversely impacted at the height of the COVID-19 pandemic. This resulted in its cash collection rate hitting its low point of 73% in Q2 2020. The first reason STORE Capital kept up is that the bulk of the company's Q2 2020 ABR was derived from tenants that offer a variety of everyday services including full-service restaurants (8.5% of Q2 2020 ABR), limited-service restaurants (5.1% of Q2 2020 ABR), and early childhood education (6.1% of Q2 2020 ABR).
Secondly, STORE Capital's cash collection rate in Q2 2020 lined up with 74% of its ABR being derived from tenants with investment-grade balance sheets. Because tenants with this rating tend to have access to more liquidity and generate more cash flow than non-investment-grade tenants, STORE Capital had fewer issues in collecting rent from most of its tenants.
Despite the impact of COVID-19 on cash collections last year, STORE Capital's adjusted funds from operations (AFFO) per share dipped only 8% from $1.99 in 2019 to $1.83 in 2020. After withstanding arguably the most formidable year in its seven years trading publicly, STORE Capital is poised to nearly recover to pre-pandemic levels this year and return to growth next year.
STORE Capital forecasts that its AFFO per share will be $1.94 to $1.97 for this year, which would represent 6% to 7.6% growth over last year. Its guidance is primarily due to two factors.
The first factor is the economic reopening stemming from rising vaccination rates in the U.S., which will help stabilize STORE Capital's revenue in its existing portfolio. Secondly, STORE Capital has executed more than $600 million in acquisitions through the first half of this year versus only about $400 million in the year-ago period. These acquisitions will drive revenue higher, which will flow down to its AFFO. The most obvious display of management's confidence in the future was the company's 6.9% increase in its quarterly dividend from $0.36 per share to $0.385 per share announced earlier this week.
Based on its most recent AFFO guidance for this year, the stock trades at less than 18 times this year's AFFO. This is well below the S&P 500's estimated price-to-earnings ratio of 22 for this year. AFFO is the closest measure of profitability to the S&P 500's earnings per share estimate. That's because REITs like STORE Capital have significant amounts of non-cash expenses like depreciation and amortization that lower their net income (from which EPS is calculated), which is factored into AFFO per share. This metric suggests that STORE Capital is a solid buy given its fundamentals. Its 4.4% yield offers investors plenty of reason to hold their position while they wait for the market to reward the stock with a higher valuation multiple.
Image source: Getty Images.
A well-prepared pharma stock
The next value stock on our list is the pharma stock AbbVie (NYSE: ABBV).
At this point, it's well known to the investing community that the patent for AbbVie's immunology drug Humira used to treat various forms of arthritis and inflammatory bowel disease will be expiring in the U.S. in 2023.
AbbVie bears argue that the looming decline in Humira's U.S. revenue (where approximately 82% of Humira's $9.94 billion in first-half revenue was derived) will be too much for the company to make up. This concern certainly has some merit, but I believe it has been somewhat exaggerated by AbbVie's bears.
That's because AbbVie's U.S. sales for this year will be around $16 billion to $17 billion based on the first half of revenue. Analyst Geoffrey Porges from SVB Leerink, an investment bank specializing in healthcare, estimates that in 2023, AbbVie could still generate $14.5 billion in U.S. revenue from Humira. This is despite competition from several biosimilars that will enter the U.S. market in 2023.
This estimate is well above Wall Street's doom and gloom consensus estimate of $10.5 billion in U.S. revenue during 2023. Fortunately, AbbVie has drugs to offset Humira's upcoming revenue declines.
AbbVie expects additional indications from its other two immunology drugs on the market -- Rinvoq (approved for rheumatoid arthritis) and Skyrizi (approved for plaque psoriasis) -- will allow combined sales from the two drugs to reach $15 billion by 2025.
With just the current indications alone, AbbVie raked in $1.93 billion in combined first-half sales from the two drugs -- a doubling from the $865 million in revenue produced in the year-ago period.
Since AbbVie expects that next year Skyrizi will be approved for Crohn's disease and psoriatic arthritis and Rinvoq will be approved for ulcerative colitis, I believe its combined revenue forecast is reasonable.
In addition to AbbVie's intact operating fundamentals ahead of Humira's U.S. patent expiration, the current 4.8% dividend yield appears to have a big buffer built into it.
Based on AbbVie's forecasted adjusted earnings per share (EPS) of $12.52 to $12.62 and dividends per share of $5.20 for this year, its payout ratio will be around 41% for the year.
AbbVie is trading at less than nine times this year's anticipated adjusted EPS, which leaves value investors with an ample margin of safety while collecting a whopper of a yield.
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SVB Financial provides credit and banking services to The Motley Fool. Kody Kester owns shares of AbbVie and STORE Capital. The Motley Fool owns shares of and recommends SVB Financial Group. The Motley Fool recommends STORE Capital. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is trading at less than nine times this year's anticipated adjusted EPS, which leaves value investors with an ample margin of safety while collecting a whopper of a yield. A well-prepared pharma stock The next value stock on our list is the pharma stock AbbVie (NYSE: ABBV). At this point, it's well known to the investing community that the patent for AbbVie's immunology drug Humira used to treat various forms of arthritis and inflammatory bowel disease will be expiring in the U.S. in 2023. | In addition to AbbVie's intact operating fundamentals ahead of Humira's U.S. patent expiration, the current 4.8% dividend yield appears to have a big buffer built into it. A well-prepared pharma stock The next value stock on our list is the pharma stock AbbVie (NYSE: ABBV). At this point, it's well known to the investing community that the patent for AbbVie's immunology drug Humira used to treat various forms of arthritis and inflammatory bowel disease will be expiring in the U.S. in 2023. | A well-prepared pharma stock The next value stock on our list is the pharma stock AbbVie (NYSE: ABBV). Based on AbbVie's forecasted adjusted earnings per share (EPS) of $12.52 to $12.62 and dividends per share of $5.20 for this year, its payout ratio will be around 41% for the year. At this point, it's well known to the investing community that the patent for AbbVie's immunology drug Humira used to treat various forms of arthritis and inflammatory bowel disease will be expiring in the U.S. in 2023. | Based on AbbVie's forecasted adjusted earnings per share (EPS) of $12.52 to $12.62 and dividends per share of $5.20 for this year, its payout ratio will be around 41% for the year. A well-prepared pharma stock The next value stock on our list is the pharma stock AbbVie (NYSE: ABBV). At this point, it's well known to the investing community that the patent for AbbVie's immunology drug Humira used to treat various forms of arthritis and inflammatory bowel disease will be expiring in the U.S. in 2023. | dc01a3e8-703d-46b4-acf5-42bd2e8c6edf |
23914.0 | 2021-09-16 00:00:00 UTC | ANALYSIS-China's biotech sector comes of age with big licensing deals, global ambitions | ABBV | https://www.nasdaq.com/articles/analysis-chinas-biotech-sector-comes-of-age-with-big-licensing-deals-global-ambitions-0 | nan | nan | By Farah Master
HONG KONG, Sept 16 (Reuters) - If investors in China's biotech industry needed one more sign that the sector is coming of age, then a major licensing deal RemeGen Co Ltd 9995.HK struck last month with Seattle-based Seagen Inc SGEN.O fits the bill.
The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. It provides for up to $2.4 billion in milestone payments, in addition to $200 million upfront as well as royalties if approved.
It is also at least the fifth out-licensing deal potentially worth more than $1 billion clinched by a Chinese biotech. Nearly all were signed in the past year, underscoring China's still small but growing role in developing innovative cancer drugs that will be used worldwide.
"China is clearly already an important and integral part of the global biopharma industry, not a separate ecosystem," said Franck Le Deu, senior partner at consultancy McKinsey in Hong Kong.
China's government has made cancer treatments a top priority for the industry. The world's most populous nation last year accounted for 30% of cancer deaths globally and 24% of newly diagnosed cases, according to one study.
Supportive policies for the sector over the past five years are also now bearing fruit and Western firms have come knocking at Chinese biotech doors.
For Seagen, the RemeGen deal will allow it to directly challenge breast cancer treatments from Roche Holding ROG.S and AstraZeneca AZN.L/Daiichi Sankyo 4568.T. The antibody also shows promise in tackling bladder and stomach tumours.
Other notable deals include a Novartis AG NOVN.S agreement worth up to $2.2 billion for a BeiGene Ltd 6160.HK drug. The two are co-developing an antibody similar to Keytruda from Merck MRK.N and Opdivo from Bristol-Myers Squibb BMY.N which help the immune system attack several different types of cancer and which have reaped billions of dollars in sales.
AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion.
FLOURISHING ON FUNDING
Chinese biotechs have proliferated in a relatively short amount of time - a key catalyst being the return of overseas-trained Chinese scientists, dubbed "sea turtles", that began a decade ago and who have become increasingly attracted by domestic opportunities as the government pushes to develop the industry.
More recently, China in 2017 and 2018 aligned regulatory standards with international norms, rapidly speeding up the review system for new drugs. The sector also has seen a surge in funding after Hong Kong's stock exchange changed its rules in 2018 to allow listings of biotechs that have yet to earn revenue.
Success in the West is still fledgling - just three drugs developed in China which include BeiGene's Brukinsa for a type of non-Hodgkin's lymphoma - have been approved by the U.S. FDA.
Investors are also concerned about frothy valuations and it remains unclear how many firms will succeed due to the lengthy process of drug discovery and the massive costs involved. That said, there appears to be more than enough funding to propel the industry.
"We are looking at a turning point because of the capital supply and the regulatory approval regime," said Simone Song, founding partner of healthcare venture capital fund ORI Capital.
Nineteen Chinese biotechs made their trading debuts last year, mostly in Hong Kong, raising a combined $5.2 billion, up from 13 raising around $2 billion in 2019, Refinitiv data shows. So far this year, 20 have listed, raising $4.6 billion and the Hong Kong bourse has flagged nearly 30 more in the pipeline.
According to McKinsey's Le Deu, the combined market value of Chinese biotechs listed in Hong Kong, on Shanghai's STAR board and on the Nasdaq was some $180 billion as of May, which compares to just $1 billion in 2016.
GLOBAL AMBITIONS
The number of large out-licensing pacts for Chinese biotechs is only set to grow, industry experts say.
I-Mab, Innovent Biologics 1801.HK, Junshi Biosciences 688180.SS and Legend Biotech LEGN.O are likely candidates for further licensing deals with Western firms, said Morningstar analyst Jay Lee, citing their existing partnerships and pipeline assets.
I-Mab says it is seeking strategic partners to help develop and commercialise its products, while Legend said it is open to collaboration. Junshi and Innovent did not respond to requests for comment.
Legend was in 2017 one of the first Chinese biotechs to win an out-licensing deal with a major Western pharmaceutical firm. Its CAR-T bone marrow cancer drug co-developed with Johnson & Johnson JNJ.N is set to be reviewed by the FDA in November.
Though few in number, the more established Chinese biotechs have even bigger ambitions.
BeiGene, which is 20.5% owned by Amgen Inc AMGN.O and valued at $34 billion, out-licenses some products but built its own U.S. and European sales teams for Brukinsa. It has also announced it will build a new R&D and manufacturing centre in New Jersey.
"We are really trying to brand ourselves as a global company...we just happen to have labs right now in China," said Angus Grant, BeiGene's chief business executive.
Hutchmed 0013.HK, the first Chinese company to have an in-house innovative cancer drug unconditionally approved in China, is not planning to partner in the United States or at home now that it has grown, said Chief Executive Christian Hogg.
"We have got around $1.2 billion in cash on our balance sheets, we have got the capabilities, resources, financial and organisational resources to pretty much do whatever we want to do outside of China," he said.
Hong Kong COVID testing firm Prenetics to go public via $1.7 bln SPAC deal
(Reporting by Farah Master; Editing by Miyoung Kim, Michele Gershberg and Edwina Gibbs)
((farah.master@thomsonreuters.com; +852 3462 7709;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. By Farah Master HONG KONG, Sept 16 (Reuters) - If investors in China's biotech industry needed one more sign that the sector is coming of age, then a major licensing deal RemeGen Co Ltd 9995.HK struck last month with Seattle-based Seagen Inc SGEN.O fits the bill. I-Mab, Innovent Biologics 1801.HK, Junshi Biosciences 688180.SS and Legend Biotech LEGN.O are likely candidates for further licensing deals with Western firms, said Morningstar analyst Jay Lee, citing their existing partnerships and pipeline assets. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. By Farah Master HONG KONG, Sept 16 (Reuters) - If investors in China's biotech industry needed one more sign that the sector is coming of age, then a major licensing deal RemeGen Co Ltd 9995.HK struck last month with Seattle-based Seagen Inc SGEN.O fits the bill. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. Nineteen Chinese biotechs made their trading debuts last year, mostly in Hong Kong, raising a combined $5.2 billion, up from 13 raising around $2 billion in 2019, Refinitiv data shows. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. According to McKinsey's Le Deu, the combined market value of Chinese biotechs listed in Hong Kong, on Shanghai's STAR board and on the Nasdaq was some $180 billion as of May, which compares to just $1 billion in 2016. | ee15e691-1f9f-4eff-8838-de64c07e656e |
23915.0 | 2021-09-15 00:00:00 UTC | ANALYSIS-China's biotech sector comes of age with big licensing deals, global ambitions | ABBV | https://www.nasdaq.com/articles/analysis-chinas-biotech-sector-comes-of-age-with-big-licensing-deals-global-ambitions-2021 | nan | nan | By Farah Master
HONG KONG, Sept 16 (Reuters) - If investors in China's biotech industry needed one more sign that the sector is coming of age, then a major licensing deal RemeGen Co Ltd 9995.HK struck last month with Seattle-based Seagen Inc SGEN.O fits the bill.
The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. It provides for up to $2.4 billion in milestone payments, in addition to $200 million upfront as well as royalties if approved.
It is also at least the fifth out-licensing deal potentially worth more than $1 billion clinched by a Chinese biotech. Nearly all were signed in the past year, underscoring China's still small but growing role in developing innovative cancer drugs that will be used worldwide.
"China is clearly already an important and integral part of the global biopharma industry, not a separate ecosystem," said Franck Le Deu, senior partner at consultancy McKinsey in Hong Kong.
China's government has made cancer treatments a top priority for the industry. The world's most populous nation last year accounted for 30% of cancer deaths globally and 24% of newly diagnosed cases, according to one study.
Supportive policies for the sector over the past five years are also now bearing fruit and Western firms have come knocking at Chinese biotech doors.
For Seagen, the RemeGen deal will allow it to directly challenge breast cancer treatments from Roche Holding ROG.S and AstraZeneca AZN.L/Daiichi Sankyo 4568.T. The antibody also shows promise in tackling bladder and stomach tumours.
Other notable deals include a Novartis AG NOVN.S agreement worth up to $2.2 billion for a BeiGene Ltd 6160.HK drug. The two are co-developing an antibody similar to Keytruda from Merck MRK.N and Opdivo from Bristol-Myers Squibb BMY.N which help the immune system attack several different types of cancer and which have reaped billions of dollars in sales.
AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion.
FLOURISHING ON FUNDING
Chinese biotechs have proliferated in a relatively short amount of time - a key catalyst being the return of overseas-trained Chinese scientists, dubbed "sea turtles", that began a decade ago and who have become increasingly attracted by domestic opportunities as the government pushes to develop the industry.
More recently, China in 2017 and 2018 aligned regulatory standards with international norms, rapidly speeding up the review system for new drugs. The sector also has seen a surge in funding after Hong Kong's stock exchange changed its rules in 2018 to allow listings of biotechs that have yet to earn revenue.
Success in the West is still fledgling - just three drugs developed in China which include BeiGene's Brukinsa for a type of non-Hodgkin's lymphoma - have been approved by the U.S. FDA.
Investors are also concerned about frothy valuations and it remains unclear how many firms will succeed due to the lengthy process of drug discovery and the massive costs involved. That said, there appears to be more than enough funding to propel the industry.
"We are looking at a turning point because of the capital supply and the regulatory approval regime," said Simone Song, founding partner of healthcare venture capital fund ORI Capital.
Nineteen Chinese biotechs made their trading debuts last year, mostly in Hong Kong, raising a combined $5.2 billion, up from 13 raising around $2 billion in 2019, Refinitiv data shows. So far this year, 20 have listed, raising $4.6 billion and the Hong Kong bourse has flagged nearly 30 more in the pipeline.
According to McKinsey's Le Deu, the combined market value of Chinese biotechs listed in Hong Kong, on Shanghai's STAR board and on the Nasdaq was some $180 billion as of May, which compares to just $1 billion in 2016.
GLOBAL AMBITIONS
The number of large out-licensing pacts for Chinese biotechs is only set to grow, industry experts say.
I-Mab, Innovent Biologics 1801.HK, Junshi Biosciences 688180.SS and Legend Biotech LEGN.O are likely candidates for further licensing deals with Western firms, said Morningstar analyst Jay Lee, citing their existing partnerships and pipeline assets.
I-Mab says it is seeking strategic partners to help develop and commercialise its products, while Legend said it is open to collaboration. Junshi and Innovent did not respond to requests for comment.
Legend was in 2017 one of the first Chinese biotechs to win an out-licensing deal with a major Western pharmaceutical firm. Its CAR-T bone marrow cancer drug co-developed with Johnson & Johnson JNJ.N is set to be reviewed by the FDA in November.
Though few in number, the more established Chinese biotechs have even bigger ambitions.
BeiGene, which is 20.5% owned by Amgen Inc AMGN.O and valued at $34 billion, out-licenses some products but built its own U.S. and European sales teams for Brukinsa. It has also announced it will build a new R&D and manufacturing centre in New Jersey.
"We are really trying to brand ourselves as a global company...we just happen to have labs right now in China," said Angus Grant, BeiGene's chief business executive.
Hutchmed 0013.HK, the first Chinese company to have an in-house innovative cancer drug unconditionally approved in China, is not planning to partner in the United States or at home now that it has grown, said Chief Executive Christian Hogg.
"We have got around $1.2 billion in cash on our balance sheets, we have got the capabilities, resources, financial and organisational resources to pretty much do whatever we want to do outside of China," he said.
(Reporting by Farah Master; Editing by Miyoung Kim, Michele Gershberg and Edwina Gibbs)
((farah.master@thomsonreuters.com; +852 3462 7709;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. By Farah Master HONG KONG, Sept 16 (Reuters) - If investors in China's biotech industry needed one more sign that the sector is coming of age, then a major licensing deal RemeGen Co Ltd 9995.HK struck last month with Seattle-based Seagen Inc SGEN.O fits the bill. I-Mab, Innovent Biologics 1801.HK, Junshi Biosciences 688180.SS and Legend Biotech LEGN.O are likely candidates for further licensing deals with Western firms, said Morningstar analyst Jay Lee, citing their existing partnerships and pipeline assets. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. By Farah Master HONG KONG, Sept 16 (Reuters) - If investors in China's biotech industry needed one more sign that the sector is coming of age, then a major licensing deal RemeGen Co Ltd 9995.HK struck last month with Seattle-based Seagen Inc SGEN.O fits the bill. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. Nineteen Chinese biotechs made their trading debuts last year, mostly in Hong Kong, raising a combined $5.2 billion, up from 13 raising around $2 billion in 2019, Refinitiv data shows. | AbbVie ABBV.N has also partnered with I-Mab IMAB.O to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. The sector also has seen a surge in funding after Hong Kong's stock exchange changed its rules in 2018 to allow listings of biotechs that have yet to earn revenue. | 116ab9dc-f444-447f-a5cb-b9405cb6411c |
23916.0 | 2021-09-15 00:00:00 UTC | 5 Biopharmaceutical Stocks To Watch Amidst Global Economic Growth Concerns | ABBV | https://www.nasdaq.com/articles/5-biopharmaceutical-stocks-to-watch-amidst-global-economic-growth-concerns-2021-09-15 | nan | nan | Are These Top Biopharmaceutical Stocks In Your September 2021 Watchlist?
As stocks continue to sell off this September, biopharmaceutical stocks continue to gain traction in thestock market today Aside from investor fears over broad-based selling, new economic data from China is also weighing in on the stock market now. Namely, China’s retail sales, industrial production, and fixed-asset investment growth all slowed down significantly in August. This would, to some extent, affect the overall outlook regarding global economic recovery now. Additionally, there is also the factor of the more infectious Delta variant of the coronavirus persisting across the globe.
For the most part, all of these factors could highlight the biopharmaceutical industry now. As concerns rise over the global reopening trade, investors would turn towards more defensive stocks. The likes of which would include biopharma giants such as AstraZeneca (NASDAQ: AZN) and Sanofi (NASDAQ: SNY). Notably, both companies are also hard at work expanding their operations now. On one hand, AstraZeneca is now working to support general health care research in Saudi Arabia. On the other hand, Sanofi completed its acquisition of Translate Bio, a biotech company that specializes in mRNA gene therapy. With all this activity in the biopharmaceutical space now, here are 5 biopharmaceutical stocks to watch this week.
Top Biopharmaceutical Stocks To Watch Right Now
Adagio Therapeutics Inc. (NASDAQ: ADGI)
Pfizer Inc. (NYSE: PFE)
Vera Therapeutics Inc. (NASDAQ: VERA)
Eli Lilly and Company (NYSE: LLY)
AbbVie Inc. (NYSE: ABBV)
Adagio Therapeutics Inc.
Adagio Therapeutics is a clinical-stage biopharmaceutical company that develops and commercializes antibody-based solutions for infectious diseases with pandemic potential. Notably, its lead product candidate is ADG20, which is designed to be a potent, long-acting, and broadly neutralizing antibody for both the treatment and prevention of the virus.
Last week, it announced that the independent data monitoring committee (IDMC) for the EVADE Phase 2/3 trial of ADG20 has provided a recommendation to expand the company’s Phase 3 trial enrolment. Given the urgent need for additional treatment and preventative options for the pandemic, the company hopes this inclusion of adolescents and pregnant or nursing women in the next phase of the study will help pave a way for more people to have access to the treatment.
Furthermore, the company says that this antibody treatment has the potential to become the preferred prophylactic option for the virus as these groups are currently limited or have no options available. With that being said, is ADGI stock worth watching right now?
Source: TD Ameritrade TOS
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Pfizer Inc.
Next up, we have Pfizer, a multinational pharmaceutical company with headquarters in New York. The company’s portfolio of treatments and drugs has impacted the lives of millions over the world and provided significantly improved quality of life. With over 170 years in the industry, the company is certainly a biopharmaceutical titan. Recently, it announced the FDA acceptance for review of a supplemental New Drug Application for Myfembree. Myfembree is used for the management of moderate to severe pain associated with endometriosis.
Last month, the company also announced that it has entered into a definitive agreement to acquire Trillium, a clinical-stage immune-oncology company that develops innovative therapies to treat cancer. Also, under the terms of the agreement, Pfizer will acquire all outstanding shares of Trillium for an implied equity value of $2.26 billion or $18.50 per share in cash.
The acquisition of Trillium will build on Pfizer’s strong track record in oncology. It will also enhance its hematology portfolio as the company strives to improve the outcome for people living with blood cancers around the globe. For these reasons, will you consider investing in PFE stock?
Source: TD Ameritrade TOS
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Vera Therapeutics Inc.
Vera Therapeutics is a clinical-stage biotech company that develops transformative treatments for patients with serious immunological diseases. For instance, its lead program is atacicept, a fusion protein that is in development for IgA nephropathy, a disease with high unmet medical needs and no approved therapies. VERA stock has been up by over 140% in the past year alone.
On August 16, 2021, the company reported its second-quarter financials and provided a corporate update. Vera therapeutics says that it achieved key clinical and financial milestones in the first half of the year.
Marshall Fordyuce, founder and CEO of Vera Therapeutics had this to say, “In the second quarter, we initiated on schedule our Phase 2b clinical trial of atacicept in patients with IgA nephropathy (IgAN). Known as ‘ORIGIN,’ this trial will potentially demonstrate atacicept as the first disease-modifying therapy for patients with IgAN. ORIGIN is a randomized controlled trial powered to determine whether atacicept’s proven ability to substantially reduce Gd-IgA1 translates into improvements in renal function, as measured by proteinuria. We look forward to providing additional clinical updates planned for the remainder of 2021 and into 2022.” With that being said, will you consider adding VERA stock to your portfolio right now?
Source: TD Ameritrade TOS
Eli Lilly and Company
Another name to consider in the biopharma industry today would be Eli Lilly and Company (LLY). In brief, LLY is a pharmaceutical goliath with operations spanning across the globe. For a sense of scale, the company has offices in 18 countries while its products are solid in approximately 125 countries. The company’s portfolio currently consists of treatments for a wide array of diseases. This includes but is not limited to, diabetes, cancer, endocrine-related illnesses, and COVID-19.
Now, LLY stock is up by over 40% year-to-date. Adding to all of this, LLY seems keen on keeping up its current momentum. Earlier today, the company revealed that it will be supplying an additional 388,000 doses of its COVID-19 treatment, etesevimab, to the U.S. government. After considering all this, will you be adding LLY stock to your watchlist?
Source: TD Ameritrade TOS
AbbVie Inc.
AbbVie is a biopharmaceutical company that develops advanced medicines with strong clinical performance in areas of great need. Its key therapeutic areas include immunology, oncology, neuroscience, virology, and eye care. Shares of ABBV stock have increased by over 18% in the past year. On Monday, the company announced a partnership with Regenxbio (NASDAQ: RGNX) for an eye care collaboration.
In detail, the two companies will develop and commercialize RGX-314, potential one-time gene therapy for the treatment of wet age-related macular degeneration, diabetic retinopathy, and other chronic retinal diseases. Regenxbio will complete its ongoing trials while Abbvie will share costs on additional trials of RGX-314. By leveraging AbbVie’s global developmental and commercial infrastructure within the field of eye care, this collaboration could prove fruitful for the company in the years to come. Will you consider keeping an eye on ABBV stock with this piece of news?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Biopharmaceutical Stocks To Watch Right Now Adagio Therapeutics Inc. (NASDAQ: ADGI) Pfizer Inc. (NYSE: PFE) Vera Therapeutics Inc. (NASDAQ: VERA) Eli Lilly and Company (NYSE: LLY) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. Adagio Therapeutics is a clinical-stage biopharmaceutical company that develops and commercializes antibody-based solutions for infectious diseases with pandemic potential. Source: TD Ameritrade TOS AbbVie Inc. AbbVie is a biopharmaceutical company that develops advanced medicines with strong clinical performance in areas of great need. Shares of ABBV stock have increased by over 18% in the past year. | Top Biopharmaceutical Stocks To Watch Right Now Adagio Therapeutics Inc. (NASDAQ: ADGI) Pfizer Inc. (NYSE: PFE) Vera Therapeutics Inc. (NASDAQ: VERA) Eli Lilly and Company (NYSE: LLY) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. Adagio Therapeutics is a clinical-stage biopharmaceutical company that develops and commercializes antibody-based solutions for infectious diseases with pandemic potential. Source: TD Ameritrade TOS AbbVie Inc. AbbVie is a biopharmaceutical company that develops advanced medicines with strong clinical performance in areas of great need. Shares of ABBV stock have increased by over 18% in the past year. | Top Biopharmaceutical Stocks To Watch Right Now Adagio Therapeutics Inc. (NASDAQ: ADGI) Pfizer Inc. (NYSE: PFE) Vera Therapeutics Inc. (NASDAQ: VERA) Eli Lilly and Company (NYSE: LLY) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. Adagio Therapeutics is a clinical-stage biopharmaceutical company that develops and commercializes antibody-based solutions for infectious diseases with pandemic potential. Source: TD Ameritrade TOS AbbVie Inc. AbbVie is a biopharmaceutical company that develops advanced medicines with strong clinical performance in areas of great need. Shares of ABBV stock have increased by over 18% in the past year. | Top Biopharmaceutical Stocks To Watch Right Now Adagio Therapeutics Inc. (NASDAQ: ADGI) Pfizer Inc. (NYSE: PFE) Vera Therapeutics Inc. (NASDAQ: VERA) Eli Lilly and Company (NYSE: LLY) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. Adagio Therapeutics is a clinical-stage biopharmaceutical company that develops and commercializes antibody-based solutions for infectious diseases with pandemic potential. Source: TD Ameritrade TOS AbbVie Inc. AbbVie is a biopharmaceutical company that develops advanced medicines with strong clinical performance in areas of great need. Shares of ABBV stock have increased by over 18% in the past year. | 69eb9f5c-910c-424b-9282-49b7f9bf1920 |
23917.0 | 2021-09-15 00:00:00 UTC | Is AbbVie's 4.9% Dividend Yield Safe? | ABBV | https://www.nasdaq.com/articles/is-abbvies-4.9-dividend-yield-safe-2021-09-15 | nan | nan | Drugmaker AbbVie (NYSE: ABBV) pays a relatively high yield of 4.9%. That's well above the average S&P 500 stock, which offers just 1.3% in recurring income. On a $10,000 investment, that's $360 more in annual dividend income you could earn through AbbVie. Multiply that by several years of owning the stock, plus the regular increases the company makes to its payouts, and the difference becomes even more significant.
AbbVie's yield went up a bit earlier this month after investors dumped the stock, which fell by more than 7% on Sept. 1 after the U.S. Food and Drug Administration said it would require the company to add a warning label to its arthritis medication, Rinvoq. The drug will also be made available to fewer patients. Below, I'll look at what that means for the business and its dividend, and whether this dip in value has made the stock a better buy.
Image source: Getty Images.
The company's business is solid without Rinvoq
Although investors were quick to sell their shares of AbbVie, the move looks to be unjustified; Rinvoq has generated just $681 million in revenue for the company over the first six months of 2021. That represents just 2.5% of the company's overall net revenue, which totaled $27 billion during that period. AbbVie has several other drugs in its portfolio that generate more in sales; Humira, its top-selling drug, brought in just under $10 billion on its own. However, with Humira losing patent protection in a few years, that number will inevitably come down.
Over the longer term, the company was projecting Rinvoq to bring in up to $8 billion in revenue in 2025, which would help offset a drop in Humira's sales. And while analysts from SVB Leerink expect that the FDA's decision could trim that estimate down by up to $3 billion, AbbVie still has many other areas of growth it can count on. For the period ending June 30, the company reported year-over-year sales growth of more than 14% in its top two segments -- immunology (which includes Humira), and hematologic oncology.
In addition, revenue from aesthetics, which includes contributions from its acquisition of Botox-maker Allergan, totaled $1.4 billion and was more than double what AbbVie reported last year (the company closed the acquisition in May 2020, so last year's results wouldn't have included a full quarter).
Can investors rely on the dividend?
AbbVie pays a quarterly dividend of $1.30, which translates to $5.20 per share annually. For 2021, the company anticipates that its diluted earnings per share will fall within a range of $6.04 and $6.14 -- well above its annual payout. At worst, the payout ratio would be about 86%. Although that's a bit higher than dividend investors may normally prefer, it's still sustainable. And income according to generally accepted accounting principles (GAAP) includes non-cash items such as amortization and depreciation. On an adjusted basis, which factors items like that out, the company's per-share earnings will be at least $12.52 for the year. Even with a possible loss in revenue from Humira and softer-than-expected numbers from Rinvoq in the future, AbbVie has a significant buffer between its annual payout and adjusted earnings, which should alleviate any fears investors may have about its current payout.
And I'd argue that not only does the dividend look incredibly safe in the context of the adjusted earnings numbers, but AbbVie also appears to be in a solid position to continue raising its payouts in the future. The company is already a Dividend Aristocrat, having hiked its payouts for more than 25 years in a row.
Should you buy AbbVie's stock on the dip?
The sharp drop in AbbVie's stock price this month sent its shares to lows they haven't seen since April. Compared with some other top healthcare stocks, it looks relatively cheap on the basis of its forward price-to-earnings ratio:
ABBV PE Ratio (Forward) data by YCharts
Multiple brokerages see the stock rising to $130 or higher within the next two years, which would be a return of at least 20% from today's prices. That, combined with an attractive yield, makes AbbVie a terrific investment to put in your portfolio right now. Not only can you benefit from its low price and the potential gains you may earn from selling it later on, but you can also lock in a high dividend yield.
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SVB Financial provides credit and banking services to The Motley Fool. David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bristol Myers Squibb and SVB Financial Group. The Motley Fool recommends Amgen and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's yield went up a bit earlier this month after investors dumped the stock, which fell by more than 7% on Sept. 1 after the U.S. Food and Drug Administration said it would require the company to add a warning label to its arthritis medication, Rinvoq. And I'd argue that not only does the dividend look incredibly safe in the context of the adjusted earnings numbers, but AbbVie also appears to be in a solid position to continue raising its payouts in the future. Drugmaker AbbVie (NYSE: ABBV) pays a relatively high yield of 4.9%. | The company's business is solid without Rinvoq Although investors were quick to sell their shares of AbbVie, the move looks to be unjustified; Rinvoq has generated just $681 million in revenue for the company over the first six months of 2021. Even with a possible loss in revenue from Humira and softer-than-expected numbers from Rinvoq in the future, AbbVie has a significant buffer between its annual payout and adjusted earnings, which should alleviate any fears investors may have about its current payout. The sharp drop in AbbVie's stock price this month sent its shares to lows they haven't seen since April. | AbbVie's yield went up a bit earlier this month after investors dumped the stock, which fell by more than 7% on Sept. 1 after the U.S. Food and Drug Administration said it would require the company to add a warning label to its arthritis medication, Rinvoq. The company's business is solid without Rinvoq Although investors were quick to sell their shares of AbbVie, the move looks to be unjustified; Rinvoq has generated just $681 million in revenue for the company over the first six months of 2021. Even with a possible loss in revenue from Humira and softer-than-expected numbers from Rinvoq in the future, AbbVie has a significant buffer between its annual payout and adjusted earnings, which should alleviate any fears investors may have about its current payout. | On a $10,000 investment, that's $360 more in annual dividend income you could earn through AbbVie. Even with a possible loss in revenue from Humira and softer-than-expected numbers from Rinvoq in the future, AbbVie has a significant buffer between its annual payout and adjusted earnings, which should alleviate any fears investors may have about its current payout. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | 5517d53f-3190-44bf-81ff-1e1b186f4e76 |
23918.0 | 2021-09-15 00:00:00 UTC | AbbVie To Present At Morgan Stanley Virtual Global Healthcare Conference; Webcast At 10:15 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-to-present-at-morgan-stanley-virtual-global-healthcare-conference-webcast-at-10%3A15 | nan | nan | (RTTNews) - AbbVie (ABBV) will participate in the Morgan Stanley Virtual 19th Annual Global Healthcare Conference.
The event is scheduled to begin at 10:15 AM ET on September 15, 2021.
To access the live webcast, log on to http://investors.abbvie.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will participate in the Morgan Stanley Virtual 19th Annual Global Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:15 AM ET on September 15, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the Morgan Stanley Virtual 19th Annual Global Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:15 AM ET on September 15, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the Morgan Stanley Virtual 19th Annual Global Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:15 AM ET on September 15, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the Morgan Stanley Virtual 19th Annual Global Healthcare Conference. To access the live webcast, log on to http://investors.abbvie.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 10:15 AM ET on September 15, 2021. | a8c895f6-c8c1-4c23-9404-48b6c5717caf |
23919.0 | 2021-09-13 00:00:00 UTC | US STOCKS-Energy, financials help Wall Street rise from bruising week | ABBV | https://www.nasdaq.com/articles/us-stocks-energy-financials-help-wall-street-rise-from-bruising-week-2021-09-13 | nan | nan | By Ambar Warrick and Devik Jain
Sept 13 (Reuters) - Wall Street indexes on Monday rose from their worst week in several months, with economically sensitive stocks leading gains as focus turned to potential changes to corporate tax and monetary policy.
But gains in the Nasdaq .IXIC were held back by major technology stocks as investors pivoted to sectors more likely to benefit from an economic bounce back this year.
Still, Apple Inc AAPL.O was the biggest boost to the tech-heavy index, rising 0.6% after a mixed court ruling in Epic Games' antitrust case against the iPhone maker knocked nearly $90 billion off its market value on Friday.
The S&P energy sector .SPNY was the best performer among its peers, up 3.3% as oil prices hit a one-week high on concerns over U.S. supply. Financial stocks .SPSY jumped 1%. O/R
Last week, Wall Street's indexes lost between 1.6% to 2.2% as a surge in August producer prices and a drop in jobless claims spurred fears the Federal Reserve could start unwinding stimulus as soon as this year.
The August consumer price data, which is due on Tuesday, is also likely to be an important cue for the Federal Reserve's decision on tightening policy. A Reuters poll expects the reading to be steady from July.
"There's some inflation numbers coming out this week and the market will be looking through to next week's Fed meeting just to get an indication of color with the jobs report," said Thomas Hayes, managing member at Great Hill Capital in New York.
"Expectations are now that the September meeting will be inconsequential, in that they'll just punt to November on any concrete plans for taper."
Also on the radar is the Biden government's corporate tax hike plan, which could result in the corporate tax rate rising to 26.5% from 21%.
Goldman Sachs analysts predicted that a hike in the U.S. domestic corporate tax rate to 25% and the passage of about half of a proposed increase to tax rates on foreign income would reduce S&P 500 earnings by 5% in 2022.
Investors will also be watching retail sales data later this week for more cues on how much a recent rise in COVID-19 cases has affected consumer spending.
At 09:51 am ET, the Dow Jones Industrial Average .DJI rose 271.31 points, or 0.78% , to 34,879.03, the S&P 500 .SPX gained 21.74 points, or 0.49 %, to 4,480.32 and the Nasdaq Composite .IXIC gained 11.51 points, or 0.08 %, to 15,127.01.
While buying into economically sensitive sectors such as energy, financials and industrials has put the S&P 500 on a seven-month winning streak this year, a recent spike in infection of the Delta COVID-19 variant has dampened hopes of an economic recovery.
Market participants expect stocks to undergo a major correction by the end of the year after a strong bull run.
Biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases.
U.S.-listed Chinese stocks, including Alibaba Group Holding BABA.N, fell after China outlined new regulations for major technology firms in the mainland.
Advancing issues outnumbered decliners by a 2.2-to-1 ratio on the NYSE, while declining issues outnumbered advancers by about a 1.2-to-1 ratio on the Nasdaq.
The S&P 500 posted 8 new 52-week highs and no new lows, while the Nasdaq recorded 35 new highs and 43 new lows.
(Reporting by Ambar Warrick in Bengaluru; Editing by Arun Koyyur)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick and Devik Jain Sept 13 (Reuters) - Wall Street indexes on Monday rose from their worst week in several months, with economically sensitive stocks leading gains as focus turned to potential changes to corporate tax and monetary policy. Still, Apple Inc AAPL.O was the biggest boost to the tech-heavy index, rising 0.6% after a mixed court ruling in Epic Games' antitrust case against the iPhone maker knocked nearly $90 billion off its market value on Friday. | Biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. But gains in the Nasdaq .IXIC were held back by major technology stocks as investors pivoted to sectors more likely to benefit from an economic bounce back this year. O/R Last week, Wall Street's indexes lost between 1.6% to 2.2% as a surge in August producer prices and a drop in jobless claims spurred fears the Federal Reserve could start unwinding stimulus as soon as this year. | Biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick and Devik Jain Sept 13 (Reuters) - Wall Street indexes on Monday rose from their worst week in several months, with economically sensitive stocks leading gains as focus turned to potential changes to corporate tax and monetary policy. But gains in the Nasdaq .IXIC were held back by major technology stocks as investors pivoted to sectors more likely to benefit from an economic bounce back this year. | Biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. But gains in the Nasdaq .IXIC were held back by major technology stocks as investors pivoted to sectors more likely to benefit from an economic bounce back this year. The August consumer price data, which is due on Tuesday, is also likely to be an important cue for the Federal Reserve's decision on tightening policy. | b5ecb956-f698-468f-9e06-35016bcb8c26 |
23920.0 | 2021-09-13 00:00:00 UTC | Health Care Sector Update for 09/13/2021: MDXG,ITMR,RGNX,ABBV | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-09-13-2021%3A-mdxgitmrrgnxabbv-2021-09-13 | nan | nan | Health care stocks were moderately lower this afternoon, with the NYSE Health Care Index falling 0.4% while the SPDR Health Care Select Sector ETF (XLV) also was down 0.6%.
The Nasdaq Biotechnology index was slipping 0.1%.
In company news, MiMedx (MDXG) tumbled almost 58% after saying its dehydrated human amnion chorion mMembrane did not meet its primary endpoints during phase IIb and phase III testing in patients with knee osteoarthritis and plantar fasciitis, respectively.
To the downside, Itamar Medical (ITMR) raced almost 45% higher after agreeing to a $538 million buyout offer from privately held ZOLL Medical, consisting of $31 per American depository share in cash and representing a 50.2% premium over Friday's closing price.
Regenxbio (RGNX) jumped out to a nearly 25% advance after announcing a collaboration pact with AbbVie (ABBV) to develop and commercialize its RGX-314 drug candidate as a potential genetic therapy for macular degeneration, diabetic retinopathy, and other chronic retinal diseases. Under terms of the partnership, Regenxbio will receive a $370 million upfront payment and is eligible for up to $1.38 billion in additional milestone payments.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Regenxbio (RGNX) jumped out to a nearly 25% advance after announcing a collaboration pact with AbbVie (ABBV) to develop and commercialize its RGX-314 drug candidate as a potential genetic therapy for macular degeneration, diabetic retinopathy, and other chronic retinal diseases. In company news, MiMedx (MDXG) tumbled almost 58% after saying its dehydrated human amnion chorion mMembrane did not meet its primary endpoints during phase IIb and phase III testing in patients with knee osteoarthritis and plantar fasciitis, respectively. To the downside, Itamar Medical (ITMR) raced almost 45% higher after agreeing to a $538 million buyout offer from privately held ZOLL Medical, consisting of $31 per American depository share in cash and representing a 50.2% premium over Friday's closing price. | Regenxbio (RGNX) jumped out to a nearly 25% advance after announcing a collaboration pact with AbbVie (ABBV) to develop and commercialize its RGX-314 drug candidate as a potential genetic therapy for macular degeneration, diabetic retinopathy, and other chronic retinal diseases. Health care stocks were moderately lower this afternoon, with the NYSE Health Care Index falling 0.4% while the SPDR Health Care Select Sector ETF (XLV) also was down 0.6%. The Nasdaq Biotechnology index was slipping 0.1%. | Regenxbio (RGNX) jumped out to a nearly 25% advance after announcing a collaboration pact with AbbVie (ABBV) to develop and commercialize its RGX-314 drug candidate as a potential genetic therapy for macular degeneration, diabetic retinopathy, and other chronic retinal diseases. Health care stocks were moderately lower this afternoon, with the NYSE Health Care Index falling 0.4% while the SPDR Health Care Select Sector ETF (XLV) also was down 0.6%. To the downside, Itamar Medical (ITMR) raced almost 45% higher after agreeing to a $538 million buyout offer from privately held ZOLL Medical, consisting of $31 per American depository share in cash and representing a 50.2% premium over Friday's closing price. | Regenxbio (RGNX) jumped out to a nearly 25% advance after announcing a collaboration pact with AbbVie (ABBV) to develop and commercialize its RGX-314 drug candidate as a potential genetic therapy for macular degeneration, diabetic retinopathy, and other chronic retinal diseases. Health care stocks were moderately lower this afternoon, with the NYSE Health Care Index falling 0.4% while the SPDR Health Care Select Sector ETF (XLV) also was down 0.6%. The Nasdaq Biotechnology index was slipping 0.1%. | c97cf67f-638b-4f22-a151-b2ea88d69a61 |
23921.0 | 2021-09-13 00:00:00 UTC | US STOCKS-Dow, S&P higher on support from energy shares even as tech struggles | ABBV | https://www.nasdaq.com/articles/us-stocks-dow-sp-higher-on-support-from-energy-shares-even-as-tech-struggles-2021-09-13 | nan | nan | By Ambar Warrick
Sept 13 (Reuters) - Gains in energy stocks pushed the Dow Jones index higher on Monday and kept the S&P 500 in positive territory, with focus shifting to potential changes to corporate taxes and a clutch of data this week.
The Nasdaq .IXIC, however, was pulled lower by a drop in major technology stocks, putting it on track for a fourth straight day of losses, as more regulations on major Chinese firms soured investor appetite.
Apple Inc AAPL.O was among the top boosts to the tech-heavy index, rising 0.5% after a mixed court ruling in Epic Games' antitrust case against the iPhone maker knocked nearly $90 billion off its market value on Friday.
Sector-wise, the S&P energy .SPNY was the best performer, gaining 3% as oil prices hit a one-week high on concerns over U.S. supply. Financial stocks .SPSY rose 1%. O/R
Oil majors also got a boost after the U.S. government agreed to sell crude oil from the country's emergency reserve to eight companies, including Chevron Corp CVX.N and ExxonMobil Corp XOM.N.
Investors are expected to keep a close watch on data, including a report on consumer prices in August, due for release on Tuesday, that is likely to offer some cues on the Federal Reserve's decision on policy tightening. A Reuters poll expects the reading to be steady from July.
The Biden government's corporate tax hike plan and a Democrat-backed $3.5 trillion spending bill is also likely to be a point of focus this week.
"Current stock market valuations don't provide enough cushion for several near-term headwinds that are on the horizon, including the potential for tax hikes, negative profit warnings from companies and upcoming Fed tapering," said Richard Saperstein, chief investment officer, Treasury Partners.
Markets are set for near-term volatility, and that the next six weeks tend to be seasonally weak for stocks, Saperstein added.
Goldman Sachs analysts are predicting that a hike in the U.S. domestic corporate tax rate to 25% and the passage of about half of a proposed increase to tax rates on foreign income would reduce S&P 500 earnings by 5% in 2022.
At 11:50 am ET the Dow Jones Industrial Average .DJI rose 258.79 points, or 0.75% , to 34,866.51, the S&P 500 .SPX gained 2.58 points, or 0.06 %, to 4,461.16 and the Nasdaq Composite .IXIC lost 46.45 points, or 0.31 %, to 15,069.05.
Although a surge in economically sensitive stocks has put the S&P 500 on a seven-month winning streak this year, a recent spike in infections due to the spread of the Delta COVID-19 variant has dampened hopes of an economic recovery and threatened to derail the rally.
Market participants expect stocks to undergo a major correction by the end of the year after a strong bull run.
Among individual movers, biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered into a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases.
Advancing issues outnumbered decliners by a 1.7-to-1 ratio on the NYSE and by a about a 1-to-1 ratio on the Nasdaq.
The S&P 500 posted 11 new 52-week highs and no new lows while the Nasdaq recorded 58 new highs and 68 new lows.
(Reporting by Ambar Warrick in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among individual movers, biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered into a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick Sept 13 (Reuters) - Gains in energy stocks pushed the Dow Jones index higher on Monday and kept the S&P 500 in positive territory, with focus shifting to potential changes to corporate taxes and a clutch of data this week. Investors are expected to keep a close watch on data, including a report on consumer prices in August, due for release on Tuesday, that is likely to offer some cues on the Federal Reserve's decision on policy tightening. | Among individual movers, biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered into a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick Sept 13 (Reuters) - Gains in energy stocks pushed the Dow Jones index higher on Monday and kept the S&P 500 in positive territory, with focus shifting to potential changes to corporate taxes and a clutch of data this week. The Biden government's corporate tax hike plan and a Democrat-backed $3.5 trillion spending bill is also likely to be a point of focus this week. | Among individual movers, biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered into a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick Sept 13 (Reuters) - Gains in energy stocks pushed the Dow Jones index higher on Monday and kept the S&P 500 in positive territory, with focus shifting to potential changes to corporate taxes and a clutch of data this week. The Nasdaq .IXIC, however, was pulled lower by a drop in major technology stocks, putting it on track for a fourth straight day of losses, as more regulations on major Chinese firms soured investor appetite. | Among individual movers, biotechnology firm Regenxbio Inc RGNX.O surged nearly 30% after it entered into a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. Sector-wise, the S&P energy .SPNY was the best performer, gaining 3% as oil prices hit a one-week high on concerns over U.S. supply. The Biden government's corporate tax hike plan and a Democrat-backed $3.5 trillion spending bill is also likely to be a point of focus this week. | 422b1454-f67c-400a-b982-8ae38f7e8331 |
23922.0 | 2021-09-13 00:00:00 UTC | XLV, ABBV, BMY, ISRG: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/xlv-abbv-bmy-isrg%3A-large-outflows-detected-at-etf-2021-09-13 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $86.6 million dollar outflow -- that's a 0.3% decrease week over week (from 248,570,000 to 247,920,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.9%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.2%, and Intuitive Surgical Inc (Symbol: ISRG) is lower by about 0.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.32. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.9%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.2%, and Intuitive Surgical Inc (Symbol: ISRG) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $86.6 million dollar outflow -- that's a 0.3% decrease week over week (from 248,570,000 to 247,920,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.9%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.2%, and Intuitive Surgical Inc (Symbol: ISRG) is lower by about 0.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.32. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.9%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.2%, and Intuitive Surgical Inc (Symbol: ISRG) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $86.6 million dollar outflow -- that's a 0.3% decrease week over week (from 248,570,000 to 247,920,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.32. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.9%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.2%, and Intuitive Surgical Inc (Symbol: ISRG) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $86.6 million dollar outflow -- that's a 0.3% decrease week over week (from 248,570,000 to 247,920,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $132.32. | f12c524f-7032-4aec-b5da-7bf964f23d98 |
23923.0 | 2021-09-13 00:00:00 UTC | US STOCKS-Wall Street set to recover from sharp weekly losses | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-recover-from-sharp-weekly-losses-2021-09-13 | nan | nan | By Ambar Warrick and Devik Jain
Sept 13 (Reuters) - Wall Street indexes were set to rise on Monday after their worst week in several months, with investors keeping a tab on the impact of potential changes to taxation on corporate profits and the effects of inflation on monetary policy.
The indexes lost between 1.6% to 2.2% last week, with the S&P 500 SPX sinking for five straight days as a surge in August producer prices and a drop in jobless claims spurred fears the Federal Reserve could start unwinding stimulus as soon as this year.
The August consumer price data, which is due on Tuesday, is also likely to be an important cue for the Fed's decision on tightening policy. A Reuters poll expects the reading to be steady from July.
"There's some inflation numbers coming out this week and the market will be looking through to next week's Fed meeting just to get an indication of color with the jobs report," said Thomas Hayes, managing member at Great Hill Capital in New York.
"Expectations are now that the September meeting will be inconsequential, in that they'll just punt to November on any concrete plans for taper."
Also on the radar is the Biden government's corporate tax hike plan. U.S. House Democrats are expected to propose raising corporate tax rate to 26.5% from 21%, according to two people familiar with the matter.
Goldman Sachs analysts predicted that a hike in the U.S. domestic corporate tax rate to 25% and the passage of about half of a proposed increase to tax rates on foreign income would reduce S&P 500 earnings by 5% in 2022.
Investors will also be watching retail sales data later this week for more cues on how much a recent rise in COVID-19 cases has affected consumer spending.
S&P 500 E-minis EScv1 were up 25.5 points, or 0.58% at 08:29 am ET. Dow E-minis 1YMcv1 were up 181 points, or 0.52%, while Nasdaq 100 E-minis NQcv1 were up 88.5 points, or 0.57%.
Apple Inc AAPL.O rose 1.2% in premarket trading after a mixed court ruling in Epic Games' antitrust case against the iPhone maker knocked nearly $90 billion off its market value on Friday.
Energy stocks benefited from stronger oil prices, while major Wall Street banks tracked mild gains in U.S. Treasury yields.
Buying into sectors such as energy, financials and industrials, which are expected to benefit from an economic recovery this year, has put the S&P 500 on a seven-month winning streak this year.
But rising infections of the Delta COVID-19 variant and staggered vaccination rates have dampened hopes of an economic recovery in recent weeks.
Market participants expect stocks to undergo a major correction by the end of the year after a strong bull run.
Biotechnology firm Regenxbio Inc RGNX.O surged more than 20% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases.
U.S.-listed Chinese stocks, including Alibaba Group Holding BABA.N, fell in premarket trading after China outlined new regulations for major technology firms in the mainland.
(Reporting by Ambar Warrick in Bengaluru; Editing by Arun Koyyur)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biotechnology firm Regenxbio Inc RGNX.O surged more than 20% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick and Devik Jain Sept 13 (Reuters) - Wall Street indexes were set to rise on Monday after their worst week in several months, with investors keeping a tab on the impact of potential changes to taxation on corporate profits and the effects of inflation on monetary policy. The indexes lost between 1.6% to 2.2% last week, with the S&P 500 SPX sinking for five straight days as a surge in August producer prices and a drop in jobless claims spurred fears the Federal Reserve could start unwinding stimulus as soon as this year. | Biotechnology firm Regenxbio Inc RGNX.O surged more than 20% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. The August consumer price data, which is due on Tuesday, is also likely to be an important cue for the Fed's decision on tightening policy. Also on the radar is the Biden government's corporate tax hike plan. | Biotechnology firm Regenxbio Inc RGNX.O surged more than 20% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. By Ambar Warrick and Devik Jain Sept 13 (Reuters) - Wall Street indexes were set to rise on Monday after their worst week in several months, with investors keeping a tab on the impact of potential changes to taxation on corporate profits and the effects of inflation on monetary policy. "There's some inflation numbers coming out this week and the market will be looking through to next week's Fed meeting just to get an indication of color with the jobs report," said Thomas Hayes, managing member at Great Hill Capital in New York. | Biotechnology firm Regenxbio Inc RGNX.O surged more than 20% after it entered a partnership with peer AbbVie ABBV.N to develop and sell a gene therapy candidate for the treatment of chronic retinal diseases. Also on the radar is the Biden government's corporate tax hike plan. Investors will also be watching retail sales data later this week for more cues on how much a recent rise in COVID-19 cases has affected consumer spending. | e238019c-1787-4d87-b679-5a3fcd8a8758 |
23924.0 | 2021-09-13 00:00:00 UTC | Why Regenxbio Stock Is Way Up Today | ABBV | https://www.nasdaq.com/articles/why-regenxbio-stock-is-way-up-today-2021-09-13 | nan | nan | What happened
Regenexbio (NASDAQ: RGNX) stock is shooting higher after the clinical-stage biotech signed a new collaboration deal with AbbVie (NYSE: ABBV), a giant global pharmaceutical company. Investors happy with the generous terms of the deal pushed Regenexbio shares 25.6% higher as of 2:06 p.m. EDT on Monday.
So what
License and royalty revenue from Novartis regarding Zolgensma isn't nearly enough to fuel Regenexbio's ambitious development pipeline. Today's deal with AbbVie, though, gives the company a lot more cash to work with.
Image source: Getty Images.
Upfront, AbbVie will pay Regenexbio $370 million for rights to RGX-314, an experimental gene therapy for the treatment of progressive retinal diseases that cause vision loss for millions of older Americans.
Regenexbio will be responsible for two ongoing phase 2 trials that administer RGX-314 with a relatively simple method of injection. AbbVie will share costs for upcoming trials that employ subretinal injections in the U.S. and lead global development efforts.
Now what
If RGX-314 earns approval, the partners will share equally in profits from net sales in the U.S. AbbVie will pay Regenexbio a tiered royalty percentage on any sales outside of the U.S.
Under the terms of the agreement, Regenxbio is also eligible to receive up to $1.3 billion in milestone payments.
We'll get to see why AbbVie felt moved to make such a generous offer for Regenexbio later this month. The company will present data from a phase 2 trial with age-related macular degeneration patients at the Retina Society's 54th Annual Scientific Meeting.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Regenexbio (NASDAQ: RGNX) stock is shooting higher after the clinical-stage biotech signed a new collaboration deal with AbbVie (NYSE: ABBV), a giant global pharmaceutical company. AbbVie will share costs for upcoming trials that employ subretinal injections in the U.S. and lead global development efforts. Today's deal with AbbVie, though, gives the company a lot more cash to work with. | Upfront, AbbVie will pay Regenexbio $370 million for rights to RGX-314, an experimental gene therapy for the treatment of progressive retinal diseases that cause vision loss for millions of older Americans. What happened Regenexbio (NASDAQ: RGNX) stock is shooting higher after the clinical-stage biotech signed a new collaboration deal with AbbVie (NYSE: ABBV), a giant global pharmaceutical company. Today's deal with AbbVie, though, gives the company a lot more cash to work with. | What happened Regenexbio (NASDAQ: RGNX) stock is shooting higher after the clinical-stage biotech signed a new collaboration deal with AbbVie (NYSE: ABBV), a giant global pharmaceutical company. Today's deal with AbbVie, though, gives the company a lot more cash to work with. Upfront, AbbVie will pay Regenexbio $370 million for rights to RGX-314, an experimental gene therapy for the treatment of progressive retinal diseases that cause vision loss for millions of older Americans. | What happened Regenexbio (NASDAQ: RGNX) stock is shooting higher after the clinical-stage biotech signed a new collaboration deal with AbbVie (NYSE: ABBV), a giant global pharmaceutical company. Today's deal with AbbVie, though, gives the company a lot more cash to work with. Upfront, AbbVie will pay Regenexbio $370 million for rights to RGX-314, an experimental gene therapy for the treatment of progressive retinal diseases that cause vision loss for millions of older Americans. | 6870ee22-4061-44ed-9b62-75b5318bc94c |
23925.0 | 2021-09-13 00:00:00 UTC | AbbVie Inks Eye Care Deal With REGENXBIO | ABBV | https://www.nasdaq.com/articles/abbvie-inks-eye-care-deal-with-regenxbio-2021-09-13 | nan | nan | (RTTNews) - Lake Bluff-based biopharmaceutical company AbbVie (ABBV) has joined hands with Rockville-headquartered REGENXBIO Inc. (RGNX), a clinical-stage biotechnology firm to develop and sell RGX-314, an eye-care therapy, the companies said in a statement on Monday.
RGX-314 is a potential one-time gene therapy for the treatment of wet age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other chronic retinal diseases.
REGENXBIO and AbbVie will share equally in profits from net sales of RGX-314 in the U.S. AbbVie will pay REGENXBIO a $370 million upfront payment with the potential for REGENXBIO to receive up to $1.38 billion in additional development.
The deal is expected to conclude by end of this year.
REGENXBIO will lead the manufacturing of RGX-314 for clinical development and U.S. commercial supply, and AbbVie will lead the manufacturing of RGX-314 for commercial supply outside the U.S.
Under the collaboration, REGENXBIO will be responsible for the completion of the ongoing trials of RGX-314. AbbVie and REGENXBIO will collaborate and share costs on additional trials of RGX-314, including the planned second pivotal trial evaluating subretinal delivery for the treatment of wet AMD and future trials.
AbbVie will lead the clinical development and commercialization of RGX-314 globally. REGENXBIO shall participate in U.S. commercialization efforts.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Lake Bluff-based biopharmaceutical company AbbVie (ABBV) has joined hands with Rockville-headquartered REGENXBIO Inc. (RGNX), a clinical-stage biotechnology firm to develop and sell RGX-314, an eye-care therapy, the companies said in a statement on Monday. AbbVie will lead the clinical development and commercialization of RGX-314 globally. REGENXBIO and AbbVie will share equally in profits from net sales of RGX-314 in the U.S. AbbVie will pay REGENXBIO a $370 million upfront payment with the potential for REGENXBIO to receive up to $1.38 billion in additional development. | REGENXBIO will lead the manufacturing of RGX-314 for clinical development and U.S. commercial supply, and AbbVie will lead the manufacturing of RGX-314 for commercial supply outside the U.S. AbbVie and REGENXBIO will collaborate and share costs on additional trials of RGX-314, including the planned second pivotal trial evaluating subretinal delivery for the treatment of wet AMD and future trials. AbbVie will lead the clinical development and commercialization of RGX-314 globally. | REGENXBIO and AbbVie will share equally in profits from net sales of RGX-314 in the U.S. AbbVie will pay REGENXBIO a $370 million upfront payment with the potential for REGENXBIO to receive up to $1.38 billion in additional development. REGENXBIO will lead the manufacturing of RGX-314 for clinical development and U.S. commercial supply, and AbbVie will lead the manufacturing of RGX-314 for commercial supply outside the U.S. AbbVie and REGENXBIO will collaborate and share costs on additional trials of RGX-314, including the planned second pivotal trial evaluating subretinal delivery for the treatment of wet AMD and future trials. | (RTTNews) - Lake Bluff-based biopharmaceutical company AbbVie (ABBV) has joined hands with Rockville-headquartered REGENXBIO Inc. (RGNX), a clinical-stage biotechnology firm to develop and sell RGX-314, an eye-care therapy, the companies said in a statement on Monday. AbbVie and REGENXBIO will collaborate and share costs on additional trials of RGX-314, including the planned second pivotal trial evaluating subretinal delivery for the treatment of wet AMD and future trials. REGENXBIO and AbbVie will share equally in profits from net sales of RGX-314 in the U.S. AbbVie will pay REGENXBIO a $370 million upfront payment with the potential for REGENXBIO to receive up to $1.38 billion in additional development. | d6dc3047-dacc-4408-a42a-b9ef87810de9 |
23926.0 | 2021-09-13 00:00:00 UTC | AbbVie, Regenxbio enter deal to develop retinal disease therapy | ABBV | https://www.nasdaq.com/articles/abbvie-regenxbio-enter-deal-to-develop-retinal-disease-therapy-2021-09-13-0 | nan | nan | Adds details of deal
Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, which would give the latter an upfront payment of $370 million.
Regenxbio may potentially receive up to $1.38 billion in milestone payments, the pharmaceutical companies said on Monday.
RGX-314 is currently in a pivotal trial for the treatment of wet age-related macular degeneration (AMD), an eye disorder causing blurred vision or a blind spot in the visual field. The trial is testing RGX-314 delivered under the retina.
It is also being studied in patients with wet AMD and diabetic retinopathy in two separate mid-stage clinical trials using a different type of delivery.
Regenxbio will be responsible for the completion of the ongoing studies of RGX-314. Both companies will share the costs of additional trials of RGX-314, they said.
AbbVie will lead the clinical development and commercialization of RGX-314 globally.
(Reporting by Amruta Khandekar; Editing by Amy Caren Daniel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details of deal Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, which would give the latter an upfront payment of $370 million. AbbVie will lead the clinical development and commercialization of RGX-314 globally. RGX-314 is currently in a pivotal trial for the treatment of wet age-related macular degeneration (AMD), an eye disorder causing blurred vision or a blind spot in the visual field. | AbbVie will lead the clinical development and commercialization of RGX-314 globally. Adds details of deal Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, which would give the latter an upfront payment of $370 million. RGX-314 is currently in a pivotal trial for the treatment of wet age-related macular degeneration (AMD), an eye disorder causing blurred vision or a blind spot in the visual field. | Adds details of deal Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, which would give the latter an upfront payment of $370 million. AbbVie will lead the clinical development and commercialization of RGX-314 globally. RGX-314 is currently in a pivotal trial for the treatment of wet age-related macular degeneration (AMD), an eye disorder causing blurred vision or a blind spot in the visual field. | Adds details of deal Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, which would give the latter an upfront payment of $370 million. AbbVie will lead the clinical development and commercialization of RGX-314 globally. Regenxbio may potentially receive up to $1.38 billion in milestone payments, the pharmaceutical companies said on Monday. | 03bed5dc-363b-40a1-b2bd-3a352f440407 |
23927.0 | 2021-09-13 00:00:00 UTC | AbbVie, Regenxbio enter deal to develop retinal disease therapy | ABBV | https://www.nasdaq.com/articles/abbvie-regenxbio-enter-deal-to-develop-retinal-disease-therapy-2021-09-13 | nan | nan | Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O have entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, the pharmaceutical companies said on Monday.
AbbVie will give Regenxbio an upfront payment of $370 million, and Regenxbio may potentially receive up to $1.38 billion in milestone payments, the companies said.
(Reporting by Amruta Khandekar; Editing by Amy Caren Daniel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O have entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, the pharmaceutical companies said on Monday. AbbVie will give Regenxbio an upfront payment of $370 million, and Regenxbio may potentially receive up to $1.38 billion in milestone payments, the companies said. (Reporting by Amruta Khandekar; Editing by Amy Caren Daniel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O have entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, the pharmaceutical companies said on Monday. AbbVie will give Regenxbio an upfront payment of $370 million, and Regenxbio may potentially receive up to $1.38 billion in milestone payments, the companies said. (Reporting by Amruta Khandekar; Editing by Amy Caren Daniel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O have entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, the pharmaceutical companies said on Monday. AbbVie will give Regenxbio an upfront payment of $370 million, and Regenxbio may potentially receive up to $1.38 billion in milestone payments, the companies said. (Reporting by Amruta Khandekar; Editing by Amy Caren Daniel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 13 (Reuters) - AbbVie ABBV.N and Regenxbio Inc RGNX.O have entered a partnership to develop and commercialize RGX-314, a gene therapy candidate for the treatment of chronic retinal diseases, the pharmaceutical companies said on Monday. AbbVie will give Regenxbio an upfront payment of $370 million, and Regenxbio may potentially receive up to $1.38 billion in milestone payments, the companies said. (Reporting by Amruta Khandekar; Editing by Amy Caren Daniel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 6b54d80e-42d9-471b-8d0e-62bb49583a25 |
23928.0 | 2021-09-11 00:00:00 UTC | These Promising Clinical Results Could Be Huge for Amgen Investors | ABBV | https://www.nasdaq.com/articles/these-promising-clinical-results-could-be-huge-for-amgen-investors-2021-09-11 | nan | nan | Amgen (NASDAQ: AMGN) recently shared data from its Phase 3 trial of tezepelumab, which it is developing in collaboration with AstraZeneca (NASDAQ: AZN). Tezepelumab was shown to be very effective in reducing "exacerbations and helping lung function and nasal symptoms in patients with severe, uncontrolled asthma and comorbid nasal polyps", according to a press release by Amgen.
But could tezepelumab become a blockbuster drug?
Image source: Getty Images.
A potent treatment option
The Mayo Clinic describes asthma as "a condition in which your airways narrow and swell and may produce extra mucus." The condition often makes breathing difficult and may trigger coughing and wheezing.
The severity of asthma ranges from mild and intermittent to severe, persistent cases in which the condition is often not controllable through treatment. If the severity and frequency of a patient's asthma attacks and emergency room visits/hospitalizations have been reduced by a treatment, the asthma is considered to be controlled.
Amgen estimates that around the world, there are 2.5 million patients with severe, uncontrolled asthma. Those asthma cases are believed to account for 50% of all asthma-related costs in the healthcare system. This is due to the fact that many of the 439,000 asthma-related hospitalizations and 1.3 million emergency room visits in the U.S. each year are the result of severe, uncontrolled asthma.
In addition, it's estimated that one in five severe asthma patients develops nasal polyps -- benign growths that form in the sinuses of the nose. These can block nasal passages, further exacerbating breathing problems and reducing the patient's sense of smell.
This is where tezepelumab could provide clinically significant results.
When added to a treatment regimen of medium- or high-dose corticosteroids (the standard of care for asthma), Tezepelumab dramatically reduced the annualized asthma exacerbation rate (AAER) among patients with severe, uncontrolled asthma and nasal polyps. The AAER refers to the average number of times in a year that a patient suffered a severe asthma attack and needed to go to the emergency room or be admitted to the hospital.
In the study, among patients with severe, uncontrolled asthma and nasal polyps, those receiving corticosteroids and a placebo had an average AAER of 2.76. Those in the tezepelumab and corticosteroid arm boasted an average AAER that was 86% lower at just 0.39.
Though not as striking, the improvements among those patients without reported nasal polyps were still solid. The tezepelumab and corticosteroid pairing reduced the AAER to 0.98, 52% lower than the 2.05 AAER among those given corticosteroids and a placebo.
The Food and Drug Administration is targeting a decision on tezepelumab by the first quarter of 2022, and given the drug's efficacy -- and the tremendous unmet medical need it would fill -- I believe regulatory approval is imminent.
A massive and growing market
Market research company Precedence Research anticipates that the global asthma market will grow at a compound annual rate of 5.2% from $20.6 billion in 2020 to $37.3 billion in revenue by 2030.
Since it includes numerous drugs such as GlaxoSmithKline's (NYSE: GSK) Nucala, Sanofi (NASDAQ: SNY) and Regeneron's (NASDAQ: REGN) Dupixent, and AstraZeneca's Fasenra, it's fair to say this is a fragmented market.
I am expecting tezepelumab to seize about 5% of the market share in the years ahead. This would work out to approximately $1.9 billion in annual revenue near the end of the decade, which would be about evenly split between partners Amgen and AstraZeneca.
Considering that biopharmaceutical powerhouse Amgen is forecasting revenues in the range of $25.8 billion to $26.6 billion for 2021, adding on another $1 billion in annual revenue by the end of the decade with tezepelumab would certainly move the needle for the company. And diversifying Amgen's revenue base into a market where it doesn't already have a presence is the cherry on top.
Plenty of other growth catalysts
Despite patient visits being moderately lower in the second quarter of this year compared to pre-pandemic, Amgen posted mid-single-digit percentage year-over-year growth in revenue and adjusted earnings per share.
While dermatologist visits were still 15% below pre-pandemic levels (per Amgen's Q2 2021 earnings call), sales volumes of psoriatic arthritis and plaque psoriasis drug Otezla were actually up 5% year-over-year in the second quarter, though in terms of revenue, they fell by 5%. Once patient visits recover to pre-pandemic levels, there's reason to expect that Otezla will shift back to delivering steady revenue increases once again.
This is especially true since Amgen believes that Otezla will later this year receive FDA approval for use in the mild to moderate psoriasis indication, which is a multibillion-dollar market. And Otezla is due to launch in China soon.
In addition, FDA recently approved the lung cancer drug Lumakras, which should reach peak annual sales of $2.5 billion for Amgen, according to analysts at Cantor Fitzgerald.
And when AbbVie's (NYSE: ABBV) Humira loses patent protection in the U.S. in 2023, Amgen's Amjevita is set to be the first Humira biosimilar to launch domestically. This positions Amgen to siphon off a nice portion of Humira's billions in U.S. sales.
Aside from tezepelumab, it's abundantly clear that Amgen has a number of drugs that should facilitate its revenue growth. And given that this biopharmaceutical is trading at just 12 times forward earnings, investors should consider adding it to their portfolios.
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Kody Kester owns shares of AbbVie, Amgen, and GlaxoSmithKline. The Motley Fool recommends Amgen and GlaxoSmithKline. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And when AbbVie's (NYSE: ABBV) Humira loses patent protection in the U.S. in 2023, Amgen's Amjevita is set to be the first Humira biosimilar to launch domestically. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and GlaxoSmithKline. The AAER refers to the average number of times in a year that a patient suffered a severe asthma attack and needed to go to the emergency room or be admitted to the hospital. | And when AbbVie's (NYSE: ABBV) Humira loses patent protection in the U.S. in 2023, Amgen's Amjevita is set to be the first Humira biosimilar to launch domestically. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and GlaxoSmithKline. This is due to the fact that many of the 439,000 asthma-related hospitalizations and 1.3 million emergency room visits in the U.S. each year are the result of severe, uncontrolled asthma. | And when AbbVie's (NYSE: ABBV) Humira loses patent protection in the U.S. in 2023, Amgen's Amjevita is set to be the first Humira biosimilar to launch domestically. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and GlaxoSmithKline. Tezepelumab was shown to be very effective in reducing "exacerbations and helping lung function and nasal symptoms in patients with severe, uncontrolled asthma and comorbid nasal polyps", according to a press release by Amgen. | And when AbbVie's (NYSE: ABBV) Humira loses patent protection in the U.S. in 2023, Amgen's Amjevita is set to be the first Humira biosimilar to launch domestically. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and GlaxoSmithKline. This is due to the fact that many of the 439,000 asthma-related hospitalizations and 1.3 million emergency room visits in the U.S. each year are the result of severe, uncontrolled asthma. | d8b7eace-788b-43e6-a7da-be7f68c59981 |
23929.0 | 2021-09-10 00:00:00 UTC | Daily Dividend Report: BMY,ABBV,CERN,NLY,HPP | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-bmyabbvcernnlyhpp-2021-09-10 | nan | nan | Bristol Myers Squibb today announced that its Board of Directors has declared a quarterly dividend of forty-nine cents per share on the $.10 par value common stock of the company. The dividend is payable on November 1, 2021 to stockholders of record at the close of business on October 1, 2021.
The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. The cash dividend is payable November 15, 2021 to stockholders of record at the close of business on October 15, 2021. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
Cerner, a global healthcare technology company, today announced that its Board of Directors declared a cash dividend to stockholders of $0.22 per issued and outstanding share. The cash dividend will be payable on October 12, 2021, to shareholders of record as of the close of business on September 27, 2021.
The Board of Directors of Annaly Capital Management declared the third quarter 2021 common stock cash dividend of $0.22 per common share. This dividend is payable October 29, 2021 to common shareholders of record on September 30, 2021. The ex-dividend date is September 29, 2021.
Hudson Pacific Properties today announced that the Company's Board of Directors has declared a quarterly dividend on its common stock of $0.25 per share for the third quarter of 2021. The dividend will be paid on September 30, 2021 to stockholders of record on September 20, 2021.
VIDEO: Daily Dividend Report: BMY,ABBV,CERN,NLY,HPP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | The board of directors of AbbVie today declared a quarterly cash dividend of $1.30 per share. Since the company's inception in 2013, AbbVie has increased its dividend by 225 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years. | 7c43121e-9a25-41f1-a5fc-559cd070c3a9 |
23930.0 | 2021-09-10 00:00:00 UTC | Downward Pressures and Flat Earnings Outweigh the AbbVie Inc.'s (NYSE:ABBV) Dividend Yield | ABBV | https://www.nasdaq.com/articles/downward-pressures-and-flat-earnings-outweigh-the-abbvie-inc.s-nyse%3Aabbv-dividend-yield | nan | nan | By Stjepan Kalinic
This article first appeared on Simply Wall St News .
AbbVie Inc. ( NYSE: ABBV ) recently cratered, as modest yearly gains almost got wiped out in a single session. Meanwhile, downward pressure continues as the price looks to test the support around US$100 for the third time this year.
We will examine the dividend since the stock has dipped down below a PE of 30x, and now yields an appealing 4.8%.
NYSE: ABBV Recent Price Movement
It is no secret that regulators make or break the markets, but few sectors are under their power as much as the Pharmaceuticals. A recent decision by the Food and Drug Administration (FDA) had a severe negative impact on the share price. The FDA added new and updated warnings on drugs, including Rinvoq(upadacitinib) that AbbVie markets.
Multiple analysts, including those from J.P Morgan and Citi, called this move exaggerated, yet the stock doesn't show signs of bottoming just yet.
Meanwhile, BTL Industries announced a resolution in the patent infringement claims against AbbVie related to their muscle stimulation technology. Per the agreement, AbbVie will pay an undisclosed sum, and all litigation pending between the parties will be dismissed.
Dividend Analysis
With a nine-year payment history and a 4.8% yield, many investors probably find AbbVie intriguing.We'd agree the yield does look enticing.
Explore this interactive chart for our latest analysis on AbbVie!
NYSE: ABBV Historic Dividend September 10th, 2021
Payout ratios
Dividends are typically paid from company earnings. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of its net income after tax.AbbVie paid out 136% of its profit as dividends over the trailing twelve-month period. However, given the circumstances of 2020, this should not be a surprise.
We also measure dividends paid against a company's levered free cash flow to see if enough cash was generated to cover the dividend.AbbVie paid out a conservative 45% of its free cash flow as dividends last year.
It's good to see that while profits did not cover AbbVie's dividends, at least they are affordable from a cash perspective.If executives continued paying more in dividends than the company reported in profits, we'd view this as a warning sign.Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.
We update our data on AbbVie every 24 hours, so you can always get our latest analysis of its financial health here.
Dividend Volatility
One of the major risks of relying on dividend income is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty.
The first recorded dividend for AbbVie, in the last decade was nine years ago.Its dividend has not fluctuated much in that time, which we like. Still, we're conscious that the company might not yet have a track record of maintaining dividends in all economic conditions.
During the past nine-year period, the first annual payment was US$1.6 in 2012, compared to US$5.2 last year.This works out to be a compound annual growth rate (CAGR) of approximately 14% a year over that time.
The dividend has been growing quickly, which could be enough to get us interested even though the dividend history is relatively short. Further research may be warranted.
Dividend Growth Potential
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) grew, as this is essential to maintaining the dividend's purchasing power over the long term.
AbbVie's earnings per share have been essentially flat over the past five years.Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation.
Still, the company has struggled to grow its EPS and currently pays out 136% of its earnings. As they say in finance, ' past performance is not indicative of future performance.' Still, we are not confident a company with limited earnings growth and a high payout ratio will be a star dividend-payer over the next decade.
Conclusion
3 attributes make a good dividend: affordability, consistency, and growth.
We're not keen on the fact that AbbVie paid out such a high percentage of its income - even though we note that the circumstances were extraordinary.
Unfortunately, there hasn't been any earnings growth, and the company's dividend history is shorter than the 10 years we ideally like to see before making a strong judgment.While we're not hugely bearish on it, overall, we think there are potentially better dividend stocks than AbbVie out there.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analyzing a company. Taking the debate a bit further, we've identified 4 warning signs for AbbVie that investors need to be conscious of moving forward.
If you are a dividend investor, you might also want to look at our curated list of dividend stocks yielding above 3%.
Simply Wall St analyst Stjepan Kalinic and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE: ABBV Recent Price Movement It is no secret that regulators make or break the markets, but few sectors are under their power as much as the Pharmaceuticals. AbbVie Inc. ( NYSE: ABBV ) recently cratered, as modest yearly gains almost got wiped out in a single session. The FDA added new and updated warnings on drugs, including Rinvoq(upadacitinib) that AbbVie markets. | NYSE: ABBV Historic Dividend September 10th, 2021 Payout ratios Dividends are typically paid from company earnings. AbbVie Inc. ( NYSE: ABBV ) recently cratered, as modest yearly gains almost got wiped out in a single session. NYSE: ABBV Recent Price Movement It is no secret that regulators make or break the markets, but few sectors are under their power as much as the Pharmaceuticals. | It's good to see that while profits did not cover AbbVie's dividends, at least they are affordable from a cash perspective.If executives continued paying more in dividends than the company reported in profits, we'd view this as a warning sign.Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits. Unfortunately, there hasn't been any earnings growth, and the company's dividend history is shorter than the 10 years we ideally like to see before making a strong judgment.While we're not hugely bearish on it, overall, we think there are potentially better dividend stocks than AbbVie out there. AbbVie Inc. ( NYSE: ABBV ) recently cratered, as modest yearly gains almost got wiped out in a single session. | NYSE: ABBV Historic Dividend September 10th, 2021 Payout ratios Dividends are typically paid from company earnings. We update our data on AbbVie every 24 hours, so you can always get our latest analysis of its financial health here. Unfortunately, there hasn't been any earnings growth, and the company's dividend history is shorter than the 10 years we ideally like to see before making a strong judgment.While we're not hugely bearish on it, overall, we think there are potentially better dividend stocks than AbbVie out there. | 18cebd90-479b-4e7a-a66f-c7d1efc62e16 |
23931.0 | 2021-09-10 00:00:00 UTC | 3 Stocks to Watch in September | ABBV | https://www.nasdaq.com/articles/3-stocks-to-watch-in-september-2021-09-10 | nan | nan | Betting against a stock market's bullish run is often not a good idea. There's an adage warning investors against shorting stocks because "the market can remain irrational longer than you can remain solvent," but it also makes sense because bull markets typically last longer than market crashes, recessions, or even depressions.
While stocks typically fall much faster than they rise, over the past 30 years the stock market's gains have far eclipsed the relative declines. Even the Great Recession that was brought about by the financial markets' 2008 collapse only lasted about 18 months (though the effects were felt for much longer). A decade later, though, you can see in the graph below we're still in the midst of the bull market that began soon after.
^SPX data by YCharts
And last year's swoon caused by the pandemic lasted literally weeks before the markets snapped back to continue their meteoric rise.
All that's to say: You never know when a sharp fall will occur, and it's better to bet on growth than a decline. Even if you do buy at the peak, you will undoubtedly regain parity relatively quickly. So while the current bull market is long in the tooth, it's still wise to believe there's more room to run. The three stocks below are ones to watch in September.
Image source: Getty Images.
1. AbbVie
Shares of pharmaceutical giant AbbVie (NYSE: ABBV) just got a major haircut, losing $20 billion in market value after the U.S. Food and Drug Administration said all Janus kinase (JAK) inhibitors for sale in the U.S. must carry a warning label announcing the drugs carry serious side effects, including blood clots and potentially death.
AbbVie was particularly hurt by the decision because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug, and it is supposed to be the pharma's replacement treatment when its mega-selling Humira goes off-patent. Pfizer and Eli Lilly will also have to slap a label on their JAK inhibitor drugs.
The FDA's announcement offset all of the gains AbbVie had made just weeks before after encouraging phase 3b study results on Rinvoq, which showed superiority to Dupixent, the similarly positioned (though non-JAK inhibitor) drug from Sanofi and Regeneron. Analysts, however, suspect the sell-off in AbbVie's stock was overdone.
While the FDA's label requirement applies to all JAK inhibitors, it came as a result of the agency's study of Pfizer's Xeljanz, and AbbVie maintains that Rinvoq's safety profile is different from that of Xeljanz. Analysts say the FDA's action wasn't a surprise (even if to the market it was), and the weakness resulting in AbbVie's stock is a buying opportunity.
At just 8 times next year's earnings estimates and less than 20 times the free cash flow it produces, AbbVie is a stock you'll want to watch (if not purchase) this month.
Image source: Getty Images.
2. Cresco Labs
It's obvious to most that cannabis is going to be a massive growth opportunity in the future, even if the marijuana industry is currently feeling its way through the maze of state legalization authorizations. Federal legalization ought to help pave the way for significant opportunities, and one company that's likely to benefit is Cresco Labs (OTC: CRLBF), one of the largest vertically integrated multi-state operators, with a presence in 10 states.
Cresco holds 47 retail licenses, owns 37 dispensaries, and has 20 production facilities, giving it one of the biggest footprints in the U.S. cannabis industry and making it the leading wholesaler of branded marijuana products. Its offerings are sold in over 700 dispensaries nationwide.
In its fiscal first quarter, Cresco notched $178 million in revenue, up 10% from the fourth quarter and 169% above the year-ago figure. Of those sales, 54% were from its wholesale business, which offers lower profit margins but allows Cresco to more than make up for it in volume.
MSOs are one of the more intriguing plays in the marijuana space, and Cresco Labs is likely to be one of the leading players as cannabis legalization spreads. With its shares down 43% year to date, it (like others) has been weighed down by the contradictory messages sent by the government on regulation, taxation, and legalization. That makes it a stock to watch this month and beyond.
Image source: Getty Images.
3. PubMatic
The way video platforms and digitally native apps and websites sell advertising on their properties began changing several years ago. Instead of using managed services to launch campaigns across their various digital offerings, companies began implementing self-serve programmatic ad buying. PubMatic (NASDAQ: PUBM) takes this sea change in advertising to the next level.
Using machine learning and artificial intelligence, PubMatic is a sell-side platform that allows publishers to sell their ad space to advertisers while also assisting on the demand side by integrating its tools into other leading platforms like The Trade Desk and Google's own marketing platform.
PubMatic is having an impact, reporting almost 47 trillion ad impressions last year, up 69% from the year before. With almost 40 trillion impressions over the first six months of 2021 -- double the number from the same period a year ago -- PubMatic is growing exponentially.
The market, though, seems to be ignoring the growth it's experiencing at the moment, as PubMatic's stock has lost more than 60% of its value from the highs it hit in March. Considering the changing face of ad buying and selling, the 10% annual growth it expects globally in digital ad spend through at least 2024, and the tidal shift to digital advertising generally, PubMatic's stock is definitely one to watch.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie was particularly hurt by the decision because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug, and it is supposed to be the pharma's replacement treatment when its mega-selling Humira goes off-patent. The FDA's announcement offset all of the gains AbbVie had made just weeks before after encouraging phase 3b study results on Rinvoq, which showed superiority to Dupixent, the similarly positioned (though non-JAK inhibitor) drug from Sanofi and Regeneron. AbbVie Shares of pharmaceutical giant AbbVie (NYSE: ABBV) just got a major haircut, losing $20 billion in market value after the U.S. Food and Drug Administration said all Janus kinase (JAK) inhibitors for sale in the U.S. must carry a warning label announcing the drugs carry serious side effects, including blood clots and potentially death. | AbbVie Shares of pharmaceutical giant AbbVie (NYSE: ABBV) just got a major haircut, losing $20 billion in market value after the U.S. Food and Drug Administration said all Janus kinase (JAK) inhibitors for sale in the U.S. must carry a warning label announcing the drugs carry serious side effects, including blood clots and potentially death. AbbVie was particularly hurt by the decision because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug, and it is supposed to be the pharma's replacement treatment when its mega-selling Humira goes off-patent. The FDA's announcement offset all of the gains AbbVie had made just weeks before after encouraging phase 3b study results on Rinvoq, which showed superiority to Dupixent, the similarly positioned (though non-JAK inhibitor) drug from Sanofi and Regeneron. | AbbVie Shares of pharmaceutical giant AbbVie (NYSE: ABBV) just got a major haircut, losing $20 billion in market value after the U.S. Food and Drug Administration said all Janus kinase (JAK) inhibitors for sale in the U.S. must carry a warning label announcing the drugs carry serious side effects, including blood clots and potentially death. AbbVie was particularly hurt by the decision because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug, and it is supposed to be the pharma's replacement treatment when its mega-selling Humira goes off-patent. The FDA's announcement offset all of the gains AbbVie had made just weeks before after encouraging phase 3b study results on Rinvoq, which showed superiority to Dupixent, the similarly positioned (though non-JAK inhibitor) drug from Sanofi and Regeneron. | AbbVie Shares of pharmaceutical giant AbbVie (NYSE: ABBV) just got a major haircut, losing $20 billion in market value after the U.S. Food and Drug Administration said all Janus kinase (JAK) inhibitors for sale in the U.S. must carry a warning label announcing the drugs carry serious side effects, including blood clots and potentially death. AbbVie was particularly hurt by the decision because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug, and it is supposed to be the pharma's replacement treatment when its mega-selling Humira goes off-patent. The FDA's announcement offset all of the gains AbbVie had made just weeks before after encouraging phase 3b study results on Rinvoq, which showed superiority to Dupixent, the similarly positioned (though non-JAK inhibitor) drug from Sanofi and Regeneron. | c065d3c6-bbb0-481b-9ccd-4bb318d3ab9b |
23932.0 | 2021-09-09 00:00:00 UTC | Drugmaker Endo settles opioid claims by New York, counties for $50 mln | ABBV | https://www.nasdaq.com/articles/drugmaker-endo-settles-opioid-claims-by-new-york-counties-for-%2450-mln-2021-09-10 | nan | nan | Sept 9 (Reuters) - Drugmaker Endo International Plc ENDP.O on Thursday said it has agreed to pay $50 million to resolve lawsuits by New York state and two of its largest counties related to the sale and marketing of opioids.
Endo said the settlement includes no admission of wrongdoing by Endo or its subsidiaries.
The settlement severs Endo from an ongoing trial in lawsuits by New York Attorney General Letitia James and Suffolk and Nassau counties. Claims against AbbVie Inc ABBV.N and Teva Pharmaceutical Industries TEVA.TA remain pending.
The deal came after the nation's three largest drug distributors -- McKesson Corp MCK.N, AmerisourceBergen ABC.N and Cardinal HealthCAH.N — as well as Johnson & Johnson JNJ.N on Saturday said they would move forward with a proposed national $26 billion settlement resolving opioid cases against them.
Dublin-based Endo is not part of that deal.
"While litigation of the remaining opioid claims is ongoing, Endo is focused on its primary goal of achieving a global settlement," the company said. "Endo is also currently exploring other strategic alternatives and may seek to implement one or more of those alternatives in the event it is unable to achieve a global settlement."
Hunter Shkolnik, a lawyer for Nassau County, said he was "happy our clients can get closure and it has kept Endo out of bankruptcy, that would have hurt everyone."
In July, Endo agreed to pay $35 million to settle a lawsuit by Tennessee local governments and on behalf of a child allegedly born addicted to painkillers accusing the drugmaker of fueling the opioid epidemic.
New York attorney general's spokesperson didn't immediately respond to Reuters request for comment.
Endo had removed its long-lasting opioid painkiller Opana ER from the market in July 2017. urn:newsml:newsroom:20170706:nNRA43me3p:0
(Reporting by Sabahatjahan Contractor in Bengaluru and Nate Raymond in Boston; Editing by Leslie Adler)
((Sabahatjahan.Contractor@thomsonreuters.com; within U.S. +1 646 223 8780 outside the U.S. +918067492635;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Claims against AbbVie Inc ABBV.N and Teva Pharmaceutical Industries TEVA.TA remain pending. Sept 9 (Reuters) - Drugmaker Endo International Plc ENDP.O on Thursday said it has agreed to pay $50 million to resolve lawsuits by New York state and two of its largest counties related to the sale and marketing of opioids. The settlement severs Endo from an ongoing trial in lawsuits by New York Attorney General Letitia James and Suffolk and Nassau counties. | Claims against AbbVie Inc ABBV.N and Teva Pharmaceutical Industries TEVA.TA remain pending. Sept 9 (Reuters) - Drugmaker Endo International Plc ENDP.O on Thursday said it has agreed to pay $50 million to resolve lawsuits by New York state and two of its largest counties related to the sale and marketing of opioids. "While litigation of the remaining opioid claims is ongoing, Endo is focused on its primary goal of achieving a global settlement," the company said. | Claims against AbbVie Inc ABBV.N and Teva Pharmaceutical Industries TEVA.TA remain pending. Sept 9 (Reuters) - Drugmaker Endo International Plc ENDP.O on Thursday said it has agreed to pay $50 million to resolve lawsuits by New York state and two of its largest counties related to the sale and marketing of opioids. The settlement severs Endo from an ongoing trial in lawsuits by New York Attorney General Letitia James and Suffolk and Nassau counties. | Claims against AbbVie Inc ABBV.N and Teva Pharmaceutical Industries TEVA.TA remain pending. Sept 9 (Reuters) - Drugmaker Endo International Plc ENDP.O on Thursday said it has agreed to pay $50 million to resolve lawsuits by New York state and two of its largest counties related to the sale and marketing of opioids. The settlement severs Endo from an ongoing trial in lawsuits by New York Attorney General Letitia James and Suffolk and Nassau counties. | 16624308-8dfe-44b1-af9f-10b3498919d5 |
23933.0 | 2021-09-09 00:00:00 UTC | Could This Label Expansion Be a Blockbuster for AbbVie's Shareholders? | ABBV | https://www.nasdaq.com/articles/could-this-label-expansion-be-a-blockbuster-for-abbvies-shareholders-2021-09-09 | nan | nan | AbbVie (NYSE: ABBV) recently announced that its immunology drug Rinvoq had received approval from the European Commission (EC) to treat adolescent and adult patients with moderate-to-severe atopic dermatitis -- commonly known as eczema -- in the European Union (EU).
The decision comes just two months after a recommendation by the European Medicines Agency and it marks Rinvoq's fourth approval in the EU. It was previously approved to treat rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis (an arthritis of the spine and joints).
This could be positive news on multiple fronts for both patients and AbbVie shareholders. Let's look at the data that prompted the EC's approval of Rinvoq, what it could mean for the upcoming regulatory decision by the U.S. Food and Drug Administration (FDA), and the drug's revenue potential ahead.
Image source: Getty Images.
An effective treatment for an uncomfortable condition
Eczema is an immune disease that causes skin inflammation and itching. This uncomfortable condition is estimated to affect 4.4% to 7.1% of Europeans. That's tens of millions of people. And nearly half (46%) report a moderate-to-severe level of this condition, which carries the burden of increased itch, sleep disturbances, depression, anxiety, and impaired productivity.
Add in that many patients with moderate-to-severe cases aren't able to adequately control it with existing treatments, and it becomes clear that additional treatments are needed.
This is where Rinvoq could come in and provide relief. Known as a Janus kinase (JAK) inhibitor, Rinvoq works by slowing the activity and response of Janus kinase proteins. Too many signals from them are what is thought to lead to the persistent inflammation observed in autoimmune diseases such as eczema.
To assess the severity of a patient's condition, medical professionals use the Eczema Area and Severity Index (EASI). This system looks at the size and severity of the disease in a patient (based on redness and other factors) before and during treatment. The higher the reduction in the EASI, the better a drug is doing in treating a person's eczema.
Rinvoq beat Sanofi (NASDAQ: SNY) and Regeneron's (NASDAQ: REGN) top-selling eczema drug Dupixent in a head-to-head Phase 3b study. At week 16, 71% of patients receiving 30 milligrams daily of Rinvoq achieved at least 75% skin clearance compared to 61% of patients receiving the recommended initial dose of 600 milligrams of Dupixent followed by 300 milligrams every other week.
A boost to a growing drug could be just the beginning
So what could this label expansion in the EU mean for AbbVie? Well, even prior to the EC's approval of Rinvoq for the treatment of eczema, Rinvoq was growing like a weed with sales in the first half of this year nearly tripling to $681 million from the same period in 2020. This was driven by EC approvals for psoriatic arthritis and ankylosing spondylitis earlier this year as well as an increased share in key rheumatoid arthritis markets.
And now with its latest approval, Rinvoq becomes the first JAK inhibitor available in the EU for moderate-to-severe eczema. That could help cause other major regulators to follow suit. AbbVie expects the FDA to decide on Rinvoq's pending psoriatic arthritis and eczema applications in "the next few months following completion of the agency's review of the tofacitinib oral surveillance data," said Vice Chairman Mike Severino in the company's Q2 2021 earnings call.
The FDA is reviewing Pfizer's (NYSE: PFE) tofacitinib -- a JAK inhibitor known as Xeljanz -- after results from a study earlier this year found an increased risk of major adverse cardiac events and cancer. The FDA is also now requiring a warning box for such JAK inhibitors as Rinvoq, Xeljanz, and Eli Lilly's (NYSE: LLY) Olumiant due to these increased risks. Since that news, AbbVie's stock is down about 10%.
While the financial markets have expressed concern over this requirement, it doesn't necessarily mean that Rinvoq's great potential is doomed. Even though patients will have to fail one other therapy before using Rinvoq, there's reason to believe the efficacy of the drug (especially in treating eczema) can continue to overcome this obstacle.
Prior to the FDA's warning requirement, FiercePharma notes that doctors were already reserving JAK inhibitors for patients who had failed therapy with at least one other TNF inhibitor (the drug class used to stop inflammation in patients with conditions such as rheumatoid arthritis and psoriatic arthritis).
With the market for eczema in Europe forecast to grow 13.6% annually to $6.8 billion in 2026, I believe Rinvoq's latest label expansion will bring it close to blockbuster status. Based on Rinvoq's efficacy profile compared to the industry-leading Dupixent, I think it's fair to assume that the drug could capture 10% of the total eczema market share in Europe by 2026.
This would lead to an additional $680 million in annual revenue for Rinvoq by 2026, which would amount to just over 1% of analysts' average forecast of $56.4 billion in revenue for AbbVie this year.
A steady high yielder
So even with recent news that the FDA will require updated warnings from JAK inhibitors, the EC's approval of Rinvoq for several additional indications this year bodes well for pharma stock AbbVie.
With a price-to-sales ratio of 3.69, below its historical median of 4.09, and a 4.7% dividend yield, AbbVie looks to be a good buy for income- and value-oriented investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie expects the FDA to decide on Rinvoq's pending psoriatic arthritis and eczema applications in "the next few months following completion of the agency's review of the tofacitinib oral surveillance data," said Vice Chairman Mike Severino in the company's Q2 2021 earnings call. A steady high yielder So even with recent news that the FDA will require updated warnings from JAK inhibitors, the EC's approval of Rinvoq for several additional indications this year bodes well for pharma stock AbbVie. AbbVie (NYSE: ABBV) recently announced that its immunology drug Rinvoq had received approval from the European Commission (EC) to treat adolescent and adult patients with moderate-to-severe atopic dermatitis -- commonly known as eczema -- in the European Union (EU). | A steady high yielder So even with recent news that the FDA will require updated warnings from JAK inhibitors, the EC's approval of Rinvoq for several additional indications this year bodes well for pharma stock AbbVie. AbbVie (NYSE: ABBV) recently announced that its immunology drug Rinvoq had received approval from the European Commission (EC) to treat adolescent and adult patients with moderate-to-severe atopic dermatitis -- commonly known as eczema -- in the European Union (EU). This could be positive news on multiple fronts for both patients and AbbVie shareholders. | AbbVie (NYSE: ABBV) recently announced that its immunology drug Rinvoq had received approval from the European Commission (EC) to treat adolescent and adult patients with moderate-to-severe atopic dermatitis -- commonly known as eczema -- in the European Union (EU). A steady high yielder So even with recent news that the FDA will require updated warnings from JAK inhibitors, the EC's approval of Rinvoq for several additional indications this year bodes well for pharma stock AbbVie. This could be positive news on multiple fronts for both patients and AbbVie shareholders. | AbbVie (NYSE: ABBV) recently announced that its immunology drug Rinvoq had received approval from the European Commission (EC) to treat adolescent and adult patients with moderate-to-severe atopic dermatitis -- commonly known as eczema -- in the European Union (EU). This could be positive news on multiple fronts for both patients and AbbVie shareholders. A boost to a growing drug could be just the beginning So what could this label expansion in the EU mean for AbbVie? | 1d218eb3-3d6f-4827-a5d9-729a0182eb54 |
23934.0 | 2021-09-08 00:00:00 UTC | Implied RWL Analyst Target Price: $83 | ABBV | https://www.nasdaq.com/articles/implied-rwl-analyst-target-price%3A-%2483-2021-09-08 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P 500 Revenue ETF (Symbol: RWL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $82.97 per unit.
With RWL trading at a recent price near $75.48 per unit, that means that analysts see 9.92% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RWL's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Vornado Realty Trust (Symbol: VNO), and NiSource Inc. (Symbol: NI). Although ABBV has traded at a recent price of $109.03/share, the average analyst target is 14.80% higher at $125.17/share. Similarly, VNO has 13.34% upside from the recent share price of $42.02 if the average analyst target price of $47.62/share is reached, and analysts on average are expecting NI to reach a target price of $28.00/share, which is 13.27% above the recent price of $24.72. Below is a twelve month price history chart comparing the stock performance of ABBV, VNO, and NI:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P 500 Revenue ETF RWL $75.48 $82.97 9.92%
AbbVie Inc ABBV $109.03 $125.17 14.80%
Vornado Realty Trust VNO $42.02 $47.62 13.34%
NiSource Inc. NI $24.72 $28.00 13.27%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although ABBV has traded at a recent price of $109.03/share, the average analyst target is 14.80% higher at $125.17/share. Invesco S&P 500 Revenue ETF RWL $75.48 $82.97 9.92% AbbVie Inc ABBV $109.03 $125.17 14.80% Vornado Realty Trust VNO $42.02 $47.62 13.34% NiSource Inc. NI $24.72 $28.00 13.27% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RWL's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Vornado Realty Trust (Symbol: VNO), and NiSource Inc. (Symbol: NI). | Three of RWL's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Vornado Realty Trust (Symbol: VNO), and NiSource Inc. (Symbol: NI). Invesco S&P 500 Revenue ETF RWL $75.48 $82.97 9.92% AbbVie Inc ABBV $109.03 $125.17 14.80% Vornado Realty Trust VNO $42.02 $47.62 13.34% NiSource Inc. NI $24.72 $28.00 13.27% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although ABBV has traded at a recent price of $109.03/share, the average analyst target is 14.80% higher at $125.17/share. | Three of RWL's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Vornado Realty Trust (Symbol: VNO), and NiSource Inc. (Symbol: NI). Although ABBV has traded at a recent price of $109.03/share, the average analyst target is 14.80% higher at $125.17/share. Below is a twelve month price history chart comparing the stock performance of ABBV, VNO, and NI: Below is a summary table of the current analyst target prices discussed above: | Invesco S&P 500 Revenue ETF RWL $75.48 $82.97 9.92% AbbVie Inc ABBV $109.03 $125.17 14.80% Vornado Realty Trust VNO $42.02 $47.62 13.34% NiSource Inc. NI $24.72 $28.00 13.27% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RWL's underlying holdings with notable upside to their analyst target prices are AbbVie Inc (Symbol: ABBV), Vornado Realty Trust (Symbol: VNO), and NiSource Inc. (Symbol: NI). Although ABBV has traded at a recent price of $109.03/share, the average analyst target is 14.80% higher at $125.17/share. | 6fa8c34a-9dc2-4237-8e64-f33fd8b9a566 |
23935.0 | 2021-09-08 00:00:00 UTC | Should You Buy AbbVie Stock After The Recent 7% Fall? | ABBV | https://www.nasdaq.com/articles/should-you-buy-abbvie-stock-after-the-recent-7-fall-2021-09-08 | nan | nan | [Updated: Sep 3, 2021] ABBV Stock Decline
The stock price of AbbVie (NYSE: ABBV) reached its 52-week high of around $121 just last week before a recent sell-off in ABBV stock, especially after the U.S. FDA stated that all janus kinase inhibitors approved for arthritis treatment should carry a heart-risk warning on the label – sending the stock to lower levels of $112 currently. Furthermore, the agency has limited the drug’s use to patients who’ve tried but failed on at least one tumor necrosis factor inhibitor. ABBV stock has declined 7% over the last five trading sessions.
The FDA’s recent decisions impacts AbbVie’s Rinvoq, a drug used for arthritis treatment. Rinvoq has great future prospects, given that Abbvie’s top-selling drug – Humira – which is also used for arthritis, among other indications it is approved for, will lose its market exclusivity in 2023. Rinvoq is a relatively new drug with sales touted to be as high as $8 billion in 2025. Since investors were looking upon Rinvoq to compensate for the decline in Humira’s sales after its patent expiration, ABBV stock was hit harder compared to other stocks that sell janus kinase inhibitors treatment for arthritis, including Pfizer and Eli Lilly, both of which saw only a 1% decline over the last five trading days. But will ABBV stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent?
According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ABBV stock average 5% in the next one-month (twenty-one trading days) period after experiencing a 7% drop over the previous week (five trading days). There is likely to be a revision in peak sales estimates for Rinvoq, given that the new ruling will imply Rinvoq can be used as only second or third line of treatment. That said, the recent decline in ABBV stock appears to be overdone. Most of the physicians prescribe janus kinase inhibitors for arthritis only after they have tried a tumor necrosis factor inhibitor. Also, AbbVie is looking to expand the use of Rinvoq into other indications, including, atopic dermatitis, psoriatic arthritis, and ulcerative colitis.
But how would the returns fare if you are interested in holding ABBV stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test AbbVie stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF ABBV stock moved by -5% over five trading days, THEN over the next twenty-one trading days ABBV stock moves an average of 3%, with a good 66% probability of a positive return over this period.
Some Fun Scenarios, FAQs & Making Sense of AbbVie Stock Movements:
Question 1: Is the average return for AbbVie stock higher after a drop?
Answer: Consider two situations,
Case 1: AbbVie stock drops by -5% or more in a week
Case 2: AbbVie stock rises by 5% or more in a week
Is the average return for AbbVie stock higher over the subsequent month after Case 1 or Case 2?
ABBV stock fares better after Case 1, with an average return of 3% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how AbbVie stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold AbbVie stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For ABBV stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for AbbVie after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although ABBV stock appears to be an exception to this general observation.
It’s pretty powerful to test the trend for yourself for AbbVie stock by changing the inputs in the charts above.
[Updated: Jul 15, 2021] AbbVie Stock Rise
We believe that the stock price of AbbVie (NYSE: ABBV) has more room for growth from its current levels of $117. ABBV stock is up 95% from the levels of around $60 it was at on March 23, 2020, when the broader markets made a bottom. This marks an in-line performance compared to the S&P 500 which grew 96% over the same period. Even if we were to look at a longer time period, ABBV stock performed in-line with the broader markets, with its stock rising 33% compared to the S&P 500 rise of 35% since 2019.
Much of this growth in ABBV stock over the recent years can be attributed to favorable changes in its revenues. AbbVie’s total revenue grew a solid 51% to $50.2 billion over the last twelve month period, compared to $33.0 billion in 2019. The surge in revenues can primarily be attributed to its Allergan acquisition. However, on a per share basis, revenues grew only 26% to $28.30 over the last twelve month period, compared to $22.40 in 2019. This difference in total revenue and revenue per share (RPS) can be attributed to a large 19% rise in total shares outstanding due to Allergan acquisition. Despite a 26% growth in RPS, AbbVie’s P/S multiple has declined to 4.2x currently, compared to 4.6x in 2019. Our dashboard, ‘What Factors Drove 33% Change In AbbVie Stock between 2018 and now?‘, has the underlying numbers.
Outlook
AbbVie has benefited from the Allergan acquisition it completed in May 2020. Allergan has expanded AbbVie’s portfolio with its existing blockbuster treatments, including Botox, Restasis, and Juvederm, which combined garnered $4.0 billion of sales in 2020, accounting for over 9% of the company’s total sales. For AbbVie, a significant portion of revenues comes from its top-selling drug – Humira – which is used for the treatment of Crohn’s disease, generating $20 billion in annual sales, accounting for 43% of the company’s total sales of $45.8 billion in 2020.
Looking forward, Humira sales will be impacted by biosimilar competition, implying a meaningful decline in annual sales over the coming years. In fact, this has led investors concerns, reflecting in a decline in its P/S multiple over the recent years. That said, we believe that the company will likely be able to offset the decline in Humira sales from growth in its newly acquired portfolio of Allergan, as well as growth in some of AbbVie’s relatively new drugs, including Venclexta, Skyrizi, Rinvoq, and Orilissa.
Furthermore, AbbVie will continue to benefit from its oncology drug – Imbruvica (in partnership with J&J) – which garnered $5.3 billion revenue in 2020, and its peak is estimated to be over $7 billion for AbbVie. The company also has a strong pipeline, with over a dozen programs in its phase three clinical trials, and some of them are new compounds. As such, we believe that ABBV stock has more room for growth in the near term, led by a rise in both its RPS as well as P/S multiple.
While ABBV stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Heico vs AbbVie.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Rinvoq has great future prospects, given that Abbvie’s top-selling drug – Humira – which is also used for arthritis, among other indications it is approved for, will lose its market exclusivity in 2023. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ABBV stock average 5% in the next one-month (twenty-one trading days) period after experiencing a 7% drop over the previous week (five trading days). Answer: If you buy and hold AbbVie stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ABBV stock average 5% in the next one-month (twenty-one trading days) period after experiencing a 7% drop over the previous week (five trading days). You can test the answer and many other combinations on the Trefis Machine Learning Engine to test AbbVie stock chances of a rise after a fall. Even if we were to look at a longer time period, ABBV stock performed in-line with the broader markets, with its stock rising 33% compared to the S&P 500 rise of 35% since 2019. | [Updated: Sep 3, 2021] ABBV Stock Decline The stock price of AbbVie (NYSE: ABBV) reached its 52-week high of around $121 just last week before a recent sell-off in ABBV stock, especially after the U.S. FDA stated that all janus kinase inhibitors approved for arthritis treatment should carry a heart-risk warning on the label – sending the stock to lower levels of $112 currently. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ABBV stock average 5% in the next one-month (twenty-one trading days) period after experiencing a 7% drop over the previous week (five trading days). Answer: Consider two situations, Case 1: AbbVie stock drops by -5% or more in a week Case 2: AbbVie stock rises by 5% or more in a week Is the average return for AbbVie stock higher over the subsequent month after Case 1 or Case 2? | Since investors were looking upon Rinvoq to compensate for the decline in Humira’s sales after its patent expiration, ABBV stock was hit harder compared to other stocks that sell janus kinase inhibitors treatment for arthritis, including Pfizer and Eli Lilly, both of which saw only a 1% decline over the last five trading days. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ABBV stock average 5% in the next one-month (twenty-one trading days) period after experiencing a 7% drop over the previous week (five trading days). Much of this growth in ABBV stock over the recent years can be attributed to favorable changes in its revenues. | 81814c49-a9ac-4967-87c2-b4aab431b976 |
23936.0 | 2021-09-07 00:00:00 UTC | AbbVie is Oversold | ABBV | https://www.nasdaq.com/articles/abbvie-is-oversold-2021-09-07 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABBV entered into oversold territory, changing hands as low as $108.645 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of AbbVie Inc, the RSI reading has hit 27.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 53.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABBV's recent annualized dividend of 5.2/share (currently paid in quarterly installments) works out to an annual yield of 4.66% based upon the recent $111.62 share price.
A bullish investor could look at ABBV's 27.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABBV's 27.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making AbbVie Inc an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABBV entered into oversold territory, changing hands as low as $108.645 per share. | In the case of AbbVie Inc, the RSI reading has hit 27.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 53.8. Indeed, ABBV's recent annualized dividend of 5.2/share (currently paid in quarterly installments) works out to an annual yield of 4.66% based upon the recent $111.62 share price. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of AbbVie Inc, the RSI reading has hit 27.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 53.8. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | Indeed, ABBV's recent annualized dividend of 5.2/share (currently paid in quarterly installments) works out to an annual yield of 4.66% based upon the recent $111.62 share price. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABBV is its dividend history. AbbVie Inc (Symbol: ABBV) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | 06a1ebdc-8e8a-4c16-bd72-bbd31f86b705 |
23937.0 | 2021-09-07 00:00:00 UTC | Top Health Care Stocks To Buy In September 2021? 4 To Watch | ABBV | https://www.nasdaq.com/articles/top-health-care-stocks-to-buy-in-september-2021-4-to-watch-2021-09-07 | nan | nan | 4 Trending Health Care Stocks To Consider Adding To Your Watchlist This Week
Booster shots appear to be the magic phrase in the current fight against the coronavirus pandemic. As such, we could see health care stocks coming back into play in the stock market now. For the most part, the matter of booster shots has been a key topic of discussion among health care experts recently. With more variants of concern emerging, boosters would, in theory, provide extra layers of support for the general public. With all eyes on the health care space now, investors may be turning towards top health care stocks in the market.
Notably, the latest update on booster shots came from White House chief medical advisor Dr. Anthony Fauci. Over the weekend, Dr. Fauci revealed that the Biden administration would have booster shots ready by September 20. For now, the current rollout will only consist of Pfizer (NYSE: PFE) and BioNTech’s (NASDAQ: BNTX) vaccine. According to Fauci, Moderna’s (NASDAQ: MRNA) vaccine booster may not receive regulatory approval in time but remains on the list. All in all, the three-dose regimen would serve to uphold protection against the coronavirus. And the protection has been found to decrease several months after the second shot.
Meanwhile, as health care officials address the current resurgence in coronavirus cases, day-to-day health care services remain relevant as well. This would include the likes of Medicare provider Clover Health (NASDAQ: CLOV) and retail pharmacy giant CVS Health (NYSE: CVS). With all that said, here are four health care names making waves in the stock market today.
Best Health Care Stocks To Watch Right Now
RenovoRx Inc. (NASDAQ: RNXT)
Novavax Inc. (NASDAQ: NVAX)
AbbVie Inc. (NYSE: ABBV)
Adagio Therapeutics Inc. (NASDAQ: ADGI)
RenovoRx Inc.
RenovoRx is a biopharmaceutical company with headquarters in Silicon Valley, California. Its novel therapy platform, RenovoRx Trans-Arterial Micro-Perfusion, delivers chemotherapy to difficult-to-treat tumors.
Also, this therapy utilizes the company’s lead product candidate, RenovoGem and it has the potential to increase survival and improve the quality of life for pancreatic cancer patients. Furthermore, this platform technology will enable physicians to isolate the anatomy and micro-perfuse targeted tissue with small molecule chemotherapy. RNXT stock is up by over 40% on today’s opening bell and currently trades at $9.26 a share as of 11:30 a.m. ET.
Investors seem to be responding to news that the company has received FDA 510(k) clearance for its RenovoCath delivery system that is designed for targeted treatment of solid tumors. In fact, it is the device component of the company’s initial product, the RenovoGem. This new design provides a more targeted delivery of therapy which the company believes can translate into more effective treatment with fewer side effects. Given this exciting piece of news, will you consider adding RNXT stock into your portfolio of health care stocks?
Source: TD Ameritrade TOS
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Novavax Inc.
Next up, we have Novavax, a biotech company that develops vaccines for serious infectious diseases. To begin with, its recombinant nanoparticles and adjuvant technology are the foundation for groundbreaking innovation. Also, the company is conducting late-stage clinical trials for its coronavirus vaccine. Its NanoFlu is a quadrivalent influenza nanoparticle vaccine, met all primary objectives in its Phase 3 clinical trial in older adults, and will be advanced for regulatory submission. NVAX stock currently trades at $265.81 as of 11:30 a.m. ET and has enjoyed year-to-date gains of over 110%.
In late August, the company announced that the U.S. Centers for Disease Control and Prevention (CDC) has provided updated guidance for those who have been vaccinated with the company’s vaccine candidate in the U.S. In detail, the CDC guidance states that participants in the Novavax PREVENT-19 Phase 3 clinical trial meets the criteria to be considered fully vaccinated two weeks after they have completed the vaccine series.
This would imply that the vaccine is safe and effective, given how it has also demonstrated a 90% overall efficacy and 100% protection against moderate and severe disease. All things considered, will you add NVAX stock to your watchlist of health care stocks right now?
Source: TD Ameritrade TOS
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AbbVie Inc.
AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies that improve the lives of people around the world. Its key therapeutic areas include immunology, oncology, neuroscience, and virology among others. In fact, it plans to launch a wide number of products and indications in the upcoming years. ABBV stock currently trades at $108.66 as of 11:30 a.m. ET.
The company’s shares recently received a $131 price target by Mizuho Securities and the analyst firm reiterated a buy rating. The investment bank believes that investors are pricing in a worst-case scenario for AbbVie’s Rinvoq while also missing out on other attractive catalysts for AbbVie.
The company also reported its second-quarter financials in late July. Notably, its revenue for the quarter was $13.95 billion, an increase of 33.9% year-over-year. It also posted diluted earnings per share of $0.42 for the quarter. For these reasons, will you consider ABBV stock a top health stock to watch right now?
Source: TD Ameritrade TOS
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Adagio Therapeutics Inc.
Following that, we have Adagio Therapeutics. In brief, Adagio is a clinical-stage biotech firm. Furthermore, the Massachusetts-based company primarily specializes in the development and commercialization of antibody-based treatments. Most of which are targeted towards infectious diseases with “pandemic potential”, according to Adagio. Currently, the company’s Covid-19 antibody portfolio revolves around its multiple, non-competing broadly neutralizing antibody cocktail, ADG20. With Adagio’s flagship project undergoing clinical trials, could ADGI stock be worth watching?
For starters, the company’s shares currently trade at $41.66 as of 11:31 a.m. ET. This would be after gaining by over 70% since its initial public offering last month. Overall, I can understand the hype around ADGI stock now. This would be the case with more experts weighing on the possibility of the coronavirus outbreak becoming endemic.
Moreover, should we have to deal with the virus in the long term, treatments would continue to play crucial roles in lessening the current strain on health care systems globally. Given all of this, would you consider ADGI stock worth investing in now?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Health Care Stocks To Watch Right Now RenovoRx Inc. (NASDAQ: RNXT) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. (NASDAQ: ADGI) RenovoRx Inc. RenovoRx is a biopharmaceutical company with headquarters in Silicon Valley, California. 3 Retail Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies that improve the lives of people around the world. ABBV stock currently trades at $108.66 as of 11:30 a.m. | Best Health Care Stocks To Watch Right Now RenovoRx Inc. (NASDAQ: RNXT) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. (NASDAQ: ADGI) RenovoRx Inc. RenovoRx is a biopharmaceutical company with headquarters in Silicon Valley, California. 3 Retail Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies that improve the lives of people around the world. ABBV stock currently trades at $108.66 as of 11:30 a.m. | Best Health Care Stocks To Watch Right Now RenovoRx Inc. (NASDAQ: RNXT) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. (NASDAQ: ADGI) RenovoRx Inc. RenovoRx is a biopharmaceutical company with headquarters in Silicon Valley, California. 3 Retail Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies that improve the lives of people around the world. ABBV stock currently trades at $108.66 as of 11:30 a.m. | Best Health Care Stocks To Watch Right Now RenovoRx Inc. (NASDAQ: RNXT) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Adagio Therapeutics Inc. (NASDAQ: ADGI) RenovoRx Inc. RenovoRx is a biopharmaceutical company with headquarters in Silicon Valley, California. 3 Retail Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that develops and commercializes advanced therapies that improve the lives of people around the world. ABBV stock currently trades at $108.66 as of 11:30 a.m. | e32d1724-3846-469a-8e21-5012b54181fd |
23938.0 | 2021-09-02 00:00:00 UTC | 7 Healthcare Stocks to Buy Before $3.5 Trillion Floods In | ABBV | https://www.nasdaq.com/articles/7-healthcare-stocks-to-buy-before-%243.5-trillion-floods-in-2021-09-02 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Healthcare stocks are once again in the spotlight as the delta variant rides a new wave of coronavirus infections across the globe. As countries batten down the hatches again, it’s not surprising to see investors once again turn their attention towards the healthcare industry. With that in mind, let’s take a look at the healthcare sector.
Innovation in the medical arena is poised to accelerate over the next decade. Aging demographic trends stateside and across the world, along with rapid advances in technology, should create significant growth opportunities for healthcare stocks. The pandemic has been forcing healthcare providers to adopt new tools. And the aging and growing global population fuels demand for innovative treatments. As a result, companies that successfully merge healthcare and technology should be at the top of the shopping list of all long-term investors.
Research from Insider Intelligence highlights, “the US healthcare industry is massive, with healthcare spending accounting for over 17% of US GDP.” And according to metrics from the Centers for Medicare & Medicaid Services (CMS), “National health spending is projected to grow at an average annual rate of 5.4 percent for 2019-28 and to reach $6.2 trillion by 2028.”
The pandemic continues to create plenty of activity around healthcare, which is excellent news for the best healthcare stocks. House Democrats recently passed a $3.5 trillion budget resolution in its effort to put together an economic package that enhances the country’s social safety net. When trillions of dollars are spent, there will always be plenty of healthcare companies well-positioned to earn significant revenue each year.
8 Tech Stocks to Buy Offering Solid Dividends
With that information, here is our list of the top seven healthcare stocks to buy.
AbbVie (NYSE:ABBV)
Baxter International (NYSE:BAX)
Health Care Select Sector SPDR Fund (NYSEARCA:XLV)
Johnson & Johnson (NYSE:JNJ)
Medtronic (NYSE:MDT)
UnitedHealth Group (NYSE:UNH)
Vertex (NASDAQ:VRTX)
Healthcare Stocks to Buy: AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
52 week range: $79.11 – $121.53
Dividend yield: 4.31%
Chicago, Illinois-based AbbVie is one of the world’s largest pharmaceutical companies with strong exposure to immunology and oncology. Its top drug, Humira, represents close to half of the profits.
AbbVie announced strong Q2 results in late July. Worldwide total revenue increased 34% year-over-year (YOY) to almost $14 billion. Net income came in at $766 million, or 42 cents per diluted share, compared to a net loss of $738 million, or 46 cents loss per diluted share, in the prior-year quarter.
On the results, CEO Richard A. Gonzalez said, “AbbVie delivered another strong quarter and our business continues to perform extremely well across the portfolio, with AbbVie’s new immunology assets contributing more than $1 billion of combined sales in the quarter.”
Humira is still the primary growth driver, generating sales of almost $20 billion in 2020 alone. Yet, AbbVie will lose its U.S. patent exclusivity in 2023. Nonetheless, the drug is still expected to boost overall growth in the coming years. The biopharma group has a robust pipeline of new products such as Skyrizi, Rinvoq, and Imbruvica that should help compensate for the expected decline in Humira revenue.
ABBV shares have recently hit an all-time-high (ATH) of $121.53. AbbVie recently saw a sizable dip after the FDA announced the company must label it’s Rinvoq products with a heart-risk warning label. However, this was more due to data relating to heart-risk in Pfizer’s (NYSE:PFE) arthritis drug, Xeljanz. ABBV stock is still up 5% year-to-date, and could be in a prime “buy the dip” position. It has surged by almost 22% over the past year. AbbVie is also a Dividend Aristocrat stock that offers a lucrative 4.31% dividend yield.
Fears around the loss of Humira exclusivity have restrained the stock’s valuation below the fair market values of its peers. I believe ABBV stock is a reasonable pick for buy-and-hold investors looking to add stability and a solid dividend stock to their portfolio. Forward price-to-earnings (P/E) and current price-to-sales (P/S) ratios stand at 9.62 and 3.99, respectively.
Baxter International (BAX)
Source: Shutterstock
52 week range: $73.12 – $88.32
Dividend yield: 1.47%
Deerfield, Illinois-based Baxter International’s healthcare product range extends to renal care, medication delivery, clinical nutrition, surgery and acute therapies. The group announced Q2 results in late July. Total revenue increased 14% YOY to $3.1 billion. Adjusted net income soared 24% YOY to $409 million, or 80 cents earnings per diluted share, beating the market expectation by 5 cents. The company generated a free cash flow of $525 million during the quarter.
CEO José E. Almeida remarked, “As markets worldwide continue to cope with the effects from the COVID-19 pandemic, Baxter’s second quarter performance reflects the diversity and durability of our lifesaving portfolio combined with the breadth of our geographic reach.”
In August, Baxter partnered with Amazon Web Services (AWS), a subsidiary of Amazon (NASDAQ:AMZN) to deliver cloud-based digital health solutions for patients. Analysts highlight it would also increase Baxter’s technological capabilities and business processes.
7 Dividend Aristocrat Stocks to Buy in September for Gains and Stability
Over the past year, as hospitals delayed procedures to help manage the pandemic, Baxter hasn’t been an attractive stock to hold. BAX stock hovers around $80, sporting no real gain YTD. With a recovery evidently occurring, the stock is also an attractive pick for risk-averse investors in need of safe, recurring income. The stock offers a dividend yield of 1.47%. Forward P/E and current P/S ratios stand at 21.19 and 3.11, respectively.
Healthcare Stocks to Buy: Health Care Select Sector SPDR Fund (XLV)
Source: Shutterstock
52-Week Range: $100.31 – $136.98
Dividend Yield: 1.4%
Expense Ratio: 0.12% per year
Our next choice is an exchange-traded fund (ETF). The Health Care Select Sector SPDR Fund invests in firms in a range of industries, including biopharma, health care technology and equipment, health care providers and life sciences tools. XLV has 65 holdings and tracks the returns of the Health Care Select Sector Index. The fund began trading in December 1998.
The healthcare equipment and supplies sector comprises 28.54% of the fund, followed by the pharmaceuticals and healthcare providers sectors, with 27.54% and 18.95%, respectively. The top ten holdings in the fund account for almost half of net assets of $33.6 billion. Johnson & Johnson, United Health, Pfizer and Abbott Laboratories (NYSE:ABT) lead the names in the fund.
Over the past year, XLV is up about 27% and hit a record high on August 23. It has gained 20% YTD. I believe the macroeconomic backdrop for the healthcare industry remains bullish. However, readers wishing to have exposure to large-capitalization (cap) U.S. healthcare names might want to wait for a pullback before investing.
Johnson & Johnson (JNJ)
Source: Sundry Photography / Shutterstock.com
52 week range: $133.65 – $179.92
Dividend yield: 2.44%
New Brunswick, New Jersey-based Johnson & Johnson is among the largest and most diverse healthcare firms, making essential medicines, consumer goods and other personal hygiene products used daily. Its portfolio of therapeutics addresses around 20 illnesses, including cancer, epilepsy and Alzheimer’s disease.
Johnson & Johnson announced solid Q2 results in mid-July. Revenue increased 27% YOY to $23.3 billion. The medical device segment surged 63% YOY to around $7 billion. Non-GAAP net earnings also went up by 49% to 6.6 billion, or $2.48 diluted earnings per share.
Following the announcement, CEO Alex Gorsky said, “Our second-quarter results showcase Johnson & Johnson’s diversified portfolio, driven by strong sales and earnings growth across our Medical Device, Consumer Health and Pharmaceutical businesses.”
As the world’s largest healthcare-based conglomerate with a $460 billion market cap, Johnson & Johnson isn’t expected to grow at a thrilling pace. Instead, investors are likely to see a steadily growing stock price and quarterly dividends that increase year after year.
JNJ stock is a member of the Dividend Kings club, currently supporting a generous 2.44% dividend yield. Its history of solid dividend payments makes JNJ stock a compelling addition to any buy-and-hold investor portfolio.
The 7 Best Stocks to Buy for September
The shares have hit a record high in recent days, and currently hover at $174, up by 11% YTD. Forward P/E and current P/S ratios stand at 16.61 and 5.21, respectively. A potential decline toward the $170 level or below would improve the margin of safety.
Healthcare Stocks to Buy: Medtronic (MDT)
MDT) sign outside office building representing healthcare stocks" width="300" height="169">
Source: JHVEPhoto / Shutterstock.com
52 week range: $98.94 – $135.67
Dividend yield: 1.89%
Medtronic is a large medical technology group that manufactures medical devices and technologies to hospitals, physicians, clinicians and patients worldwide. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, neurovascular products and surgical tools.
The group released Q1 2022 results in late August. Net revenue surged 23% YOY to just under $8 billion. Non-GAAP net income of $1.9 billion translated into $1.41 per diluted share. A year ago, these metrics had been $836 million, or 62 cents per diluted share. Free cash flow was $914 million. Cash and equivalents ended the quarter at $3 billion.
CEO Geoff Martha remarked, “…we drove market share gains across a number of our businesses, including three of our largest: Cardiac Rhythm Management, Surgical Innovations, and Cranial & Spinal Technologies.”
Medtronic has a robust pipeline of new products that could lead to an even stronger position in the medical devices space. For instance, it is on track to launch new products like Micra AV and the Hugo robotic-assisted surgery platform that could potentially become key growth drivers in the long term. In addition, Medtronic has entered a definitive agreement to acquire sinus implant maker Intersect ENT (NASDAQ:XENT) for $1.1 billion.
MDT stock has recently hit a multi-year high of $135.67. The stock currently trades slightly below its peak value at around $134. It is up 15% so far in 2021.
The company is also a dividend aristocrat with 43 consecutive years of dividend growth. The current price supports a 1.89% dividend yield. Forward P/E and current P/S ratios stand at 23.31 and 5.73, respectively. Interested readers could consider investing around $130 or below.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
52 week range: $289.64 – $431.36
Dividend yield: 1.39%
Minnetonka, Minnesota-based UnitedHealth is the largest private health insurance provider stateside. Its reach extends to employer-sponsored, self-directed and government-backed insurance plans. The insurer provides medical benefits to almost 50 million members.
UnitedHealth Group announced Q2 results in mid-July. Revenue grew 15% YOY to $71.3 billion. Net income came in at $4.27 billion or $4.46 per diluted share, down from $6.64 billion or $6.91 per diluted share in the prior-year quarter. Adjusted earnings per share stood at $4.70, down 34% from $7.12 in the prior-year period. Cash and equivalents ended the quarter at $19.8 billion.
In addition to insurance, the company provides preventive care services such as routine wellness visits, cancer, other health screenings, as well as the management of chronic conditions and vaccinations.
Earlier in the year, management announced it would be buying the tech and analytics company Change Healthcare (NASDAQ:CHNG) for $13 billion. Last year, the company also acquired full-service pharmacy Divvydose, a rival to Amazon’s PillPack, for over $300 million.
UnitedHealth returned $1.4 billion to shareholders via dividends in the second quarter, following a 16% increase in June. UNH stock currently supports a dividend yield of 1.39%.
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The shares hover slightly above $420 and the YTD return stands at 20.5%. The stock has surged 35% over the past 52 weeks. With a market cap of $399 billion, analysts regard the company as a stable addition to long-term portfolios. Forward P/E and current P/S ratios are 19.42 and 1.48 respectively. A potential decline toward $400 would make the shares more attractive for buy-and-hold investors.
Healthcare Stocks to Buy: Vertex (VRTX)
Source: Pavel Kapysh / Shutterstock.com
52 week range: $185.33 – $281.86
Our final stock for the day is the biotech group Vertex Pharmaceuticals, which is well-known for its portfolio of drugs against the potentially fatal disease cystic fibrosis (CF).
Vertex issued Q2 results in late July. Sales of its CF drugs increased by 18% YOY and reached $1.8 billion. Adjusted net income also went up buy 18% YOY to hit $811 million or $3.11 per diluted share.
On the results, CEO Reshma Kewalramani commented, “In the second quarter of 2021, we saw continued, significant growth and strong business performance in our cystic fibrosis franchise. We have now secured reimbursement agreements for the triple combination in more than 15 countries outside the U.S. and started expansion into younger age groups with the U.S. approval in patients 6 to 11 years of age last month.”
In addition, Vertex is investing in new drug development. For instance, it has recently teamed up with biotech CRISPR Therapeutics (NASDAQ:CRSP) to develop gene-editing therapy to treat beta thalassemia and sickle cell disease.
VRTX stock is down over 16% so far this year, trading around $200. It is about 30% below its high of $283.45 last year. Forward P/E and P/S ratios stand at around 15.90 and 7.74, respectively. Any further decline toward $190 would make the shares more attractive.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
The post 7 Healthcare Stocks to Buy Before $3.5 Trillion Floods In appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE:ABBV) Baxter International (NYSE:BAX) Health Care Select Sector SPDR Fund (NYSEARCA:XLV) Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) UnitedHealth Group (NYSE:UNH) Vertex (NASDAQ:VRTX) Healthcare Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52 week range: $79.11 – $121.53 Dividend yield: 4.31% Chicago, Illinois-based AbbVie is one of the world’s largest pharmaceutical companies with strong exposure to immunology and oncology. AbbVie announced strong Q2 results in late July. On the results, CEO Richard A. Gonzalez said, “AbbVie delivered another strong quarter and our business continues to perform extremely well across the portfolio, with AbbVie’s new immunology assets contributing more than $1 billion of combined sales in the quarter.” Humira is still the primary growth driver, generating sales of almost $20 billion in 2020 alone. | AbbVie (NYSE:ABBV) Baxter International (NYSE:BAX) Health Care Select Sector SPDR Fund (NYSEARCA:XLV) Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) UnitedHealth Group (NYSE:UNH) Vertex (NASDAQ:VRTX) Healthcare Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52 week range: $79.11 – $121.53 Dividend yield: 4.31% Chicago, Illinois-based AbbVie is one of the world’s largest pharmaceutical companies with strong exposure to immunology and oncology. AbbVie announced strong Q2 results in late July. On the results, CEO Richard A. Gonzalez said, “AbbVie delivered another strong quarter and our business continues to perform extremely well across the portfolio, with AbbVie’s new immunology assets contributing more than $1 billion of combined sales in the quarter.” Humira is still the primary growth driver, generating sales of almost $20 billion in 2020 alone. | AbbVie (NYSE:ABBV) Baxter International (NYSE:BAX) Health Care Select Sector SPDR Fund (NYSEARCA:XLV) Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) UnitedHealth Group (NYSE:UNH) Vertex (NASDAQ:VRTX) Healthcare Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52 week range: $79.11 – $121.53 Dividend yield: 4.31% Chicago, Illinois-based AbbVie is one of the world’s largest pharmaceutical companies with strong exposure to immunology and oncology. AbbVie announced strong Q2 results in late July. On the results, CEO Richard A. Gonzalez said, “AbbVie delivered another strong quarter and our business continues to perform extremely well across the portfolio, with AbbVie’s new immunology assets contributing more than $1 billion of combined sales in the quarter.” Humira is still the primary growth driver, generating sales of almost $20 billion in 2020 alone. | AbbVie (NYSE:ABBV) Baxter International (NYSE:BAX) Health Care Select Sector SPDR Fund (NYSEARCA:XLV) Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) UnitedHealth Group (NYSE:UNH) Vertex (NASDAQ:VRTX) Healthcare Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com 52 week range: $79.11 – $121.53 Dividend yield: 4.31% Chicago, Illinois-based AbbVie is one of the world’s largest pharmaceutical companies with strong exposure to immunology and oncology. AbbVie announced strong Q2 results in late July. On the results, CEO Richard A. Gonzalez said, “AbbVie delivered another strong quarter and our business continues to perform extremely well across the portfolio, with AbbVie’s new immunology assets contributing more than $1 billion of combined sales in the quarter.” Humira is still the primary growth driver, generating sales of almost $20 billion in 2020 alone. | 5ae7c7c9-8946-409d-a4cc-4bf203eb3d39 |
23939.0 | 2021-09-02 00:00:00 UTC | First Week of February 2022 Options Trading For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/first-week-of-february-2022-options-trading-for-abbvie-abbv-2021-09-02 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 169 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of $6.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $103.15 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $112.92/share today.
Because the $110.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.23% return on the cash commitment, or 13.45% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of $5.70. If an investor was to purchase shares of ABBV stock at the current price level of $112.92/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $115.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.89% if the stock gets called away at the February 2022 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red:
Considering the fact that the $115.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.05% boost of extra return to the investor, or 10.90% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 31%, while the implied volatility in the call contract example is 23%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $112.92) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2022 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2022 expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $110.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of $5.70. Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2022 expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2022 contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the February 2022 expiration. | e032b27b-45d4-4335-b8a3-c7be570f4361 |
23940.0 | 2021-09-01 00:00:00 UTC | Notable Wednesday Option Activity: GOOGL, ABBV, CBRE | ABBV | https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-googl-abbv-cbre-2021-09-01 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Alphabet Inc (Symbol: GOOGL), where a total of 42,703 contracts have traded so far, representing approximately 4.3 million underlying shares. That amounts to about 407.5% of GOOGL's average daily trading volume over the past month of 1.0 million shares. Especially high volume was seen for the $2950 strike call option expiring September 03, 2021, with 7,543 contracts trading so far today, representing approximately 754,300 underlying shares of GOOGL. Below is a chart showing GOOGL's trailing twelve month trading history, with the $2950 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 193,589 contracts thus far today. That number of contracts represents approximately 19.4 million underlying shares, working out to a sizeable 370.2% of ABBV's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $123 strike call option expiring September 03, 2021, with 12,386 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $123 strike highlighted in orange:
And CBRE Group Inc (Symbol: CBRE) saw options trading volume of 40,879 contracts, representing approximately 4.1 million underlying shares or approximately 338% of CBRE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $85 strike call option expiring September 17, 2021, with 20,024 contracts trading so far today, representing approximately 2.0 million underlying shares of CBRE. Below is a chart showing CBRE's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for GOOGL options, ABBV options, or CBRE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $123 strike call option expiring September 03, 2021, with 12,386 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing GOOGL's trailing twelve month trading history, with the $2950 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 193,589 contracts thus far today. That number of contracts represents approximately 19.4 million underlying shares, working out to a sizeable 370.2% of ABBV's average daily trading volume over the past month, of 5.2 million shares. | Below is a chart showing GOOGL's trailing twelve month trading history, with the $2950 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 193,589 contracts thus far today. Particularly high volume was seen for the $123 strike call option expiring September 03, 2021, with 12,386 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $123 strike highlighted in orange: And CBRE Group Inc (Symbol: CBRE) saw options trading volume of 40,879 contracts, representing approximately 4.1 million underlying shares or approximately 338% of CBRE's average daily trading volume over the past month, of 1.2 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $123 strike highlighted in orange: And CBRE Group Inc (Symbol: CBRE) saw options trading volume of 40,879 contracts, representing approximately 4.1 million underlying shares or approximately 338% of CBRE's average daily trading volume over the past month, of 1.2 million shares. Below is a chart showing GOOGL's trailing twelve month trading history, with the $2950 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 193,589 contracts thus far today. That number of contracts represents approximately 19.4 million underlying shares, working out to a sizeable 370.2% of ABBV's average daily trading volume over the past month, of 5.2 million shares. | Particularly high volume was seen for the $123 strike call option expiring September 03, 2021, with 12,386 contracts trading so far today, representing approximately 1.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $123 strike highlighted in orange: And CBRE Group Inc (Symbol: CBRE) saw options trading volume of 40,879 contracts, representing approximately 4.1 million underlying shares or approximately 338% of CBRE's average daily trading volume over the past month, of 1.2 million shares. Below is a chart showing GOOGL's trailing twelve month trading history, with the $2950 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 193,589 contracts thus far today. | ede233be-c387-4e67-9638-9fc5a49eb649 |
23941.0 | 2021-09-01 00:00:00 UTC | U.S. FDA seeks new warnings on drugs from Pfizer, Lilly and AbbVie | ABBV | https://www.nasdaq.com/articles/u.s.-fda-seeks-new-warnings-on-drugs-from-pfizer-lilly-and-abbvie-2021-09-01-0 | nan | nan | Adds Pfizer, Lilly and analyst comments
Sept 1 (Reuters) - The U.S. drug regulator has asked Pfizer PFE.N, Eli Lilly & Co LLY.N and AbbVie ABBV.N to include information about risks of serious conditions and death from the use of their drugs that belong to a class of treatments known as JAK inhibitors.
The warnings on Wednesday stem from the U.S. Food and Drug Administration's review of Pfizer's arthritis drug Xeljanz after initial results from a February trial showed an increased risk of serious heart-related problems and cancer with the drug.
AbbVie shares closed down 7%, while Pfizer and Eli Lilly were slightly lower.
Pfizer said the update would bring important clarity for healthcare providers on the risk/benefit profile of Xeljanz.
JAK inhibitors like Xeljanz block inflammation-causing enzymes, known as Janus kinases, and target autoimmune diseases such as rheumatoid arthritis and ulcerative colitis.
The FDA said Lilly's drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial.
"Based on available data across approved and investigational indications, we remain confident in the positive benefit-risk profile of Olumiant," Lilly said.
AbbVie did not immediately respond to a request for comment.
The FDA is currently reviewing AbbVie's applications for expanded use of its rheumatoid arthritis drug Rinvoq in patients with active psoriatic arthritis, atopic dermatitis and ankylosing spondylitis.
"We wait to see how the FDA handles the ongoing regulatory review of Rinvoq and other JAKs in atopic dermatitis and other indications, but believe investors are now pricing in a worst-case scenario for Rinvoq," Mizuho analyst Vamil Divan said, referring to the decline in AbbVie shares.
Incyte Corp's INCY.O Jakafi and Bristol Myers Squibb's BMY.N JAK inhibitor Inrebic will not need warnings as they are not approved to treat inflammatory conditions, the agency said.
(Reporting by Manas Mishra and Manojna Maddipatla in Bengaluru; Editing by Aditya Soni)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manasmishra24))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The FDA said Lilly's drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. Adds Pfizer, Lilly and analyst comments Sept 1 (Reuters) - The U.S. drug regulator has asked Pfizer PFE.N, Eli Lilly & Co LLY.N and AbbVie ABBV.N to include information about risks of serious conditions and death from the use of their drugs that belong to a class of treatments known as JAK inhibitors. AbbVie shares closed down 7%, while Pfizer and Eli Lilly were slightly lower. | Adds Pfizer, Lilly and analyst comments Sept 1 (Reuters) - The U.S. drug regulator has asked Pfizer PFE.N, Eli Lilly & Co LLY.N and AbbVie ABBV.N to include information about risks of serious conditions and death from the use of their drugs that belong to a class of treatments known as JAK inhibitors. The FDA said Lilly's drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. AbbVie shares closed down 7%, while Pfizer and Eli Lilly were slightly lower. | Adds Pfizer, Lilly and analyst comments Sept 1 (Reuters) - The U.S. drug regulator has asked Pfizer PFE.N, Eli Lilly & Co LLY.N and AbbVie ABBV.N to include information about risks of serious conditions and death from the use of their drugs that belong to a class of treatments known as JAK inhibitors. The FDA said Lilly's drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. AbbVie shares closed down 7%, while Pfizer and Eli Lilly were slightly lower. | Adds Pfizer, Lilly and analyst comments Sept 1 (Reuters) - The U.S. drug regulator has asked Pfizer PFE.N, Eli Lilly & Co LLY.N and AbbVie ABBV.N to include information about risks of serious conditions and death from the use of their drugs that belong to a class of treatments known as JAK inhibitors. The FDA is currently reviewing AbbVie's applications for expanded use of its rheumatoid arthritis drug Rinvoq in patients with active psoriatic arthritis, atopic dermatitis and ankylosing spondylitis. AbbVie shares closed down 7%, while Pfizer and Eli Lilly were slightly lower. | a72792e7-c911-4da5-b376-0b37c26f0573 |
23942.0 | 2021-09-01 00:00:00 UTC | Why AbbVie Is Down More Than 7% Today | ABBV | https://www.nasdaq.com/articles/why-abbvie-is-down-more-than-7-today-2021-09-01 | nan | nan | What happened
Shares of drugmaker AbbVie (NYSE: ABBV) are off by 7.8% in Wednesday afternoon's trading session following a decision from the Food and Drug Administration to require a heart-risk warning on the label of its arthritis treatment Rinvoq.
So what
As part of its routine reviews of clinical trial data, the FDA announced today that all Janus kinase (JAK) inhibitors approved for use as arthritis treatments in the United States are now to be sold with a label cautioning their users that such drugs raise the risk of serious heart-related events, cancer, blood clots, and even death. AbbVie's Rinvoq is one of these JAK-inhibiting prescription drugs.
Image source: Getty Images.
Blame Pfizer (NYSE: PFE), however. The FDA's decision was rooted in data regarding Pfizer's arthritis medicine Xeljanz. The two drugs in question are built around the same JAK-inhibiting approach, and in its later-stage testing it was shown to increase the risk of blood clots and related heart problems.
Now what
The knee-jerk reaction is understandable. While AbbVie is best known for its arthritis, plaque psoriasis, and Crohn's disease treatment Humira, Rinvoq was one of the pharmaceutical franchises hoped to help replace the loss of sales linked to the expiration of Humira's patents.
As it stands right now though, Rinvoq accounts for less than 3% of AbbVie's revenue, and its potential was still unclear. The pharmaceutical giant also still has more than two dozen drugs in its portfolio -- many of which are already bigger franchises than Rinvoq -- and even more in the research and development pipeline. There's also nothing to firmly suggest arthritic patients will abandon or avoid the drug simply because of the label warning. Once investors work through the initial shock of Wednesday's news, the sell-off could readily become a buying opportunity for investors already eyeing the stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of drugmaker AbbVie (NYSE: ABBV) are off by 7.8% in Wednesday afternoon's trading session following a decision from the Food and Drug Administration to require a heart-risk warning on the label of its arthritis treatment Rinvoq. AbbVie's Rinvoq is one of these JAK-inhibiting prescription drugs. While AbbVie is best known for its arthritis, plaque psoriasis, and Crohn's disease treatment Humira, Rinvoq was one of the pharmaceutical franchises hoped to help replace the loss of sales linked to the expiration of Humira's patents. | While AbbVie is best known for its arthritis, plaque psoriasis, and Crohn's disease treatment Humira, Rinvoq was one of the pharmaceutical franchises hoped to help replace the loss of sales linked to the expiration of Humira's patents. What happened Shares of drugmaker AbbVie (NYSE: ABBV) are off by 7.8% in Wednesday afternoon's trading session following a decision from the Food and Drug Administration to require a heart-risk warning on the label of its arthritis treatment Rinvoq. AbbVie's Rinvoq is one of these JAK-inhibiting prescription drugs. | What happened Shares of drugmaker AbbVie (NYSE: ABBV) are off by 7.8% in Wednesday afternoon's trading session following a decision from the Food and Drug Administration to require a heart-risk warning on the label of its arthritis treatment Rinvoq. AbbVie's Rinvoq is one of these JAK-inhibiting prescription drugs. While AbbVie is best known for its arthritis, plaque psoriasis, and Crohn's disease treatment Humira, Rinvoq was one of the pharmaceutical franchises hoped to help replace the loss of sales linked to the expiration of Humira's patents. | AbbVie's Rinvoq is one of these JAK-inhibiting prescription drugs. What happened Shares of drugmaker AbbVie (NYSE: ABBV) are off by 7.8% in Wednesday afternoon's trading session following a decision from the Food and Drug Administration to require a heart-risk warning on the label of its arthritis treatment Rinvoq. While AbbVie is best known for its arthritis, plaque psoriasis, and Crohn's disease treatment Humira, Rinvoq was one of the pharmaceutical franchises hoped to help replace the loss of sales linked to the expiration of Humira's patents. | 5d573a1d-039b-4902-834c-2e9d44409ba3 |
23943.0 | 2021-09-01 00:00:00 UTC | 3 Top Warren Buffett Stocks to Buy in September | ABBV | https://www.nasdaq.com/articles/3-top-warren-buffett-stocks-to-buy-in-september-2021-09-01 | nan | nan | Warren Buffett has plenty to smile about these days. Shares of his beloved Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have soared more than 20% so far in 2021. Unlike last year, Berkshire stock is outperforming the S&P 500.
Quite a few of Berkshire's equity holdings have generated tremendous year-to-date gains. However, I think some of the laggards could be the better picks right now. Here are three top Buffett stocks to buy in September.
Image source: The Motley Fool.
AbbVie: Checking off all the boxes
Some stocks offer great dividends. Some are outstanding bargains. Others provide solid growth prospects. Few stocks check off all of these boxes, but AbbVie (NYSE: ABBV) does. That could be why Buffett added the stock to Berkshire's portfolio last year.
The drugmaker is only one dividend increase away from joining the elite club of Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. Nearly any income-seeking investor will find AbbVie's dividend yield of 4.4% quite appealing.
Value investors should like AbbVie as well. Its shares trade at around 9.5 times expected earnings. By comparison, the average forward earnings multiple for pharmaceutical companies in the S&P 500 stands at 15.
AbbVie has a short-term growth problem, with its blockbuster autoimmune-disease drug Humira facing biosimilar rivals in the U.S. beginning in 2023. However, the company expects to bounce back quickly and deliver robust revenue growth at least through the end of the decade.
Amazon.com: Follow the money
Berkshire was kind of late to the party with its investment in Amazon.com (NASDAQ: AMZN). However, its purchase of shares of the internet giant in 2019 has paid off handsomely.
Some might wonder if Amazon is still a smart stock to buy now after the company reported slowing revenue growth in its second-quarter results and gave guidance for even lower growth. A slowdown isn't surprising, though, considering Amazon is moving past the heady days of 2020 that resulted from the COVID-19 pandemic.
My Motley Fool colleague John Ballard recently pointed out something important that investors missed with Amazon's Q2 results -- the company's increased capital spending. He noted, "When Amazon has increased such investments in the past, it usually results in an acceleration in revenue growth soon after." John is right. I think Amazon's increased capital spending on expanding its fulfillment capacity and its transportation network should pay off.
Also, don't overlook Amazon's initiatives to move into new markets. The company launched a telehealth service this summer. It's even considering opening department stores. Amazon always finds ways to grow. With the stock's price-to-earnings ratio the lowest it's been in years, Amazon looks like a great pick right now.
Apple: An unstoppable juggernaut
This month will probably be very important for Apple (NASDAQ: AAPL). The tech giant usually releases its latest iPhone version in September. There are plenty of rumors about what the new version will include, from a big boost in battery life to the support of satellite communications.
Whatever Apple's next iPhone offers, you can bet that the new version will spur another wave of sales growth for the company. Apple doesn't just make money from the phones themselves, though. The iPhone ecosystem includes apps, peripheral devices, and other services that are also huge growth drivers for the company.
Wider availability of high-speed 5G networks continues to fuel demand for newer iPhones. Over the longer term, look for augmented reality (AR) to potentially become the next big thing for Apple.
Early last year, Buffett referred to Apple as "probably the best business I know in the world." He almost certainly still feels the same way. Apple is a virtually unstoppable juggernaut. Even with a market cap of close to $2.5 trillion, this stock should still have room to run.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights owns shares of AbbVie, Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has a short-term growth problem, with its blockbuster autoimmune-disease drug Humira facing biosimilar rivals in the U.S. beginning in 2023. AbbVie: Checking off all the boxes Some stocks offer great dividends. Few stocks check off all of these boxes, but AbbVie (NYSE: ABBV) does. | Keith Speights owns shares of AbbVie, Amazon, Apple, and Berkshire Hathaway (B shares). AbbVie: Checking off all the boxes Some stocks offer great dividends. Few stocks check off all of these boxes, but AbbVie (NYSE: ABBV) does. | AbbVie: Checking off all the boxes Some stocks offer great dividends. Few stocks check off all of these boxes, but AbbVie (NYSE: ABBV) does. Nearly any income-seeking investor will find AbbVie's dividend yield of 4.4% quite appealing. | AbbVie: Checking off all the boxes Some stocks offer great dividends. Few stocks check off all of these boxes, but AbbVie (NYSE: ABBV) does. Nearly any income-seeking investor will find AbbVie's dividend yield of 4.4% quite appealing. | 8e04f7ca-5f45-4a2a-937f-0a45f1531b15 |
23944.0 | 2021-09-01 00:00:00 UTC | 4 Top Stock Trades for Thursday: Ethereum, ABBV, CHWY, LCID | ABBV | https://www.nasdaq.com/articles/4-top-stock-trades-for-thursday%3A-ethereum-abbv-chwy-lcid-2021-09-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On the first day of trading for September, the Nasdaq Composite ripped to new all-time highs, although the stock market stumbled late in the session. That said, let’s look at a few top stock trades as we approach the long holiday weekend.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Earlier this week, I looked at Ethereum (CCC:ETH-USD). At the time, we noted the clear consolidation that Ethereum was going through while investors were waiting to see if it could clear $3,300.
It cleared it all right, surging toward $3,800 in just two days. So far, Ethereum is finding some selling pressure near the 78.6% retracement. If Ethereum can clear this level, $4,000 is on the table. Above that, and the all-time high near $4,400 is possible.
On the downside, keep an eye on the $3,300 to $3,350 area. That zone should be support in the event of a larger pullback. That is, until the 10-day moving average can catch up and hopefully act as support.
7 Dividend Aristocrat Stocks to Buy in September for Gains and Stability
For those that missed this setup, save the chart and remember it. These patterns repeat themselves over and over again.
Top Stock Trades for Tomorrow No. 2: AbbVie (ABBV)
Click to Enlarge
Source: Chart courtesy of TrendSpider
What in the world happened to AbbVie (NYSE:ABBV), a name that had been a very consistent performer over the past year? Down just more than 7% on the day, and this one has been hit hard.
AbbVie found support from a number of measures, including the 50-week moving average, the weekly VWAP and the $109 level (which was former resistance). Bulls hopefully were able to buy at a better price, but in any case, they can be long against today’s low.
From here, let’s see if ABBV stock can reclaim the August low at $112.92. This is a key level, as it’s within three cents of the July low as well. Back above it puts the 50-day moving average in play.
On the downside, though, a break of Wednesday’s low could put the $100 to $102 area in play.
Top Stock Trades for Tomorrow No. 3: Chewy (CHWY)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Chewy (NYSE:CHWY) reported earnings after the close. The stock has recovered nicely from the lows, but is by no means enjoying a surge.
Notably, the stock continues to enjoy dips to the 50-day moving average, where it has typically bounced from. It’s also leaning on the weekly VWAP measure.
If the stock suffers from a bearish reaction, look to see if it can hold the August low near $81.50. Below could put the key $75 to $77 zone on the table.
7 Oil Stocks to Sell for September
On the upside, however, bulls need Chewy to clear the 10-day and 21-day moving averages. Above that puts the August high and 61.8% retracement in play, between $97.75 and $98.65. If Chewy clears $100, $108 could be in play.
Top Stock Trades for Tomorrow No. 4: Lucid Motors (LCID)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Lucid Motors (NASDAQ:LCID) is getting smashed on the day, falling almost 11%. This is one that I recently warned about too. I didn’t like this chart at all as Lucid broke below the 200-day moving average earlier this week.
It gapped below the key $17.62 level on Wednesday, although it was able to recovery it by the close, albeit barely.
I guess if aggressive bulls really like this name, they could be long it against today’s low. Other than that, below $17.62, and this one is going to be a “no-touch” for me.
Nonetheless, above Wednesday’s high, and we’ll see if Lucid can fill the gap back up to $19.92.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Thursday: Ethereum, ABBV, CHWY, LCID appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to Enlarge Source: Chart courtesy of TrendSpider What in the world happened to AbbVie (NYSE:ABBV), a name that had been a very consistent performer over the past year? 2: AbbVie (ABBV) AbbVie found support from a number of measures, including the 50-week moving average, the weekly VWAP and the $109 level (which was former resistance). | 2: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider What in the world happened to AbbVie (NYSE:ABBV), a name that had been a very consistent performer over the past year? AbbVie found support from a number of measures, including the 50-week moving average, the weekly VWAP and the $109 level (which was former resistance). | The post 4 Top Stock Trades for Thursday: Ethereum, ABBV, CHWY, LCID appeared first on InvestorPlace. 2: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider What in the world happened to AbbVie (NYSE:ABBV), a name that had been a very consistent performer over the past year? | The post 4 Top Stock Trades for Thursday: Ethereum, ABBV, CHWY, LCID appeared first on InvestorPlace. 2: AbbVie (ABBV) Click to Enlarge Source: Chart courtesy of TrendSpider What in the world happened to AbbVie (NYSE:ABBV), a name that had been a very consistent performer over the past year? | 94ea8d97-7527-4221-a081-426f2ae85f14 |
23945.0 | 2021-09-01 00:00:00 UTC | 3 Investing Strategies to Grow Your Money Like Magic | ABBV | https://www.nasdaq.com/articles/3-investing-strategies-to-grow-your-money-like-magic-2021-09-01 | nan | nan | I used to just save my money, until I realized I could grow it -- and grow it powerfully, thanks to the magic of compounding. When your money is compounding in the stock market, it grows by increasing amounts over time, over the long run. So your $10,000 investment might grow by, say, $1,000 in your first year, but years or decades later, it can be growing by $100,000 per year -- especially if you've been adding to your investments over time, too.
If you're ready to have your dollars grow for you in a rather magical way, here are three ways you might go about doing so.
Image source: Getty Images.
1. Dividend stocks
Dividend-paying stocks are extra magical because they pack a one-two punch: As long as a dividend-paying company is healthy and executing its strategies well, its stock's value is likely to increase over time. Better still, the dividend it pays out regularly will also likely increase. The best dividend payers up their payouts fairly regularly -- often annually.
Here are a few familiar names -- with their recent dividend yields and their dividend growth rates:
STOCK
RECENT DIVIDEND YIELD
5-YEAR AVG. ANNUAL DIVIDEND GROWTH RATE
AbbVie
4.35%
17.9%
Automatic Data Processing
1.78%
11.9%
Cisco Systems
2.5%
7.3%
Clorox
2.81%
7.7%
Coca-Cola
3.02%
3.7%
Corning
2.36%
12.2%
Lowe's
1.55%
18%
Nike
0.66%
11.4%
Starbucks
1.56%
17.6%
Visa
0.55%
18%
Walgreens Boots Alliance
3.94%
5%
Waste Management
1.49%
7%
Data source: Yahoo! Finance and author calculations.
If you don't want to go to the trouble of finding the best dividend-paying stocks for your portfolio, there's no shame in simply opting for one or more dividend-focused index funds, which will immediately spread your dollars across a big bunch of dividend payers.
Image source: Getty Images.
2. Growth stocks
Growth stocks are also magical in how powerfully they can grow your wealth. They're stocks of companies that have seen their sales grow at a rapid clip, and lately, their share prices have been matching that growth with big gains. Check out the following examples:
STOCK
10-YEAR AVG. ANNUAL RETURN*
Amazon.com
31.9%
Apple
28.7%
Facebook
27.8%
Intuitive Surgical
23.4%
Netflix
32.4%
PayPal
39%
Data source: theonlineinvestor.com.
*with any dividends reinvested
To appreciate just how fat those growth rates are, note that the S&P 500 index of 500 leading American companies averaged 14.85% annually during that period. And even that is well above the long-term average return of the market of roughly 10% annually.
If your money grows at 10% annually, a $10,000 investment can become about $67,275 in 20 years. But if it grows at 20% annually, you'd end up with around $383,000!
If you're thinking there must be a catch, you're right -- there is. It's easier said than done to identify today the companies that will have grown phenomenally 20 years from now. Plenty of very promising companies end up doing far worse than expected. So what should you do?
Well, one good strategy is to invest in a bunch of them, so that the winners have a good chance of far outstripping the losers. Perhaps divide your money among at least 25 promising companies that you've studied and have confidence in. Then aim to hang on to them for at least five years -- because you don't want to bail out as soon as one falters. All great stocks have not gone up in a straight line.
3. Index funds
Another solid option for building long-term wealth in the stock market, fairly magically, is the easiest strategy of all -- just park many, most, or all of your long-term dollars in a low-fee broad-market index fund. Even Warren Buffett has recommended index funds for most investors who don't have the time, skill, or interest to study stocks and follow them closely over many years.
It's not even much of a compromise, investing in index funds -- because they tend to outperform the vast majority of their actively managed mutual fund counterparts. In other words, all those highly paid Wall Street professionals have a hard time beating the overall market. Index funds are a terrific investment.
However you do it, consider starting to invest in stocks soon -- because most of us need to be amassing a hefty sum to live off in retirement. You might keep a big chunk of money in dividend-paying stocks, invest in a big bunch of growth stocks, simply stick with plain vanilla index funds -- or act on all three strategies.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Selena Maranjian owns shares of AbbVie, Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, PayPal Holdings, and Starbucks. The Motley Fool owns shares of and recommends Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, Nike, PayPal Holdings, Starbucks, and Visa. The Motley Fool recommends Corning, Lowes, and Waste Management and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $580 calls on Intuitive Surgical, long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2022 $600 calls on Intuitive Surgical, short March 2023 $130 calls on Apple, and short October 2021 $120 calls on Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Selena Maranjian owns shares of AbbVie, Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, PayPal Holdings, and Starbucks. AbbVie 4.35% 17.9% Automatic Data Processing 1.78% 11.9% Cisco Systems 2.5% 7.3% Clorox 2.81% 7.7% Coca-Cola 3.02% 3.7% Corning 2.36% 12.2% Lowe's 1.55% 18% Nike 0.66% 11.4% Starbucks 1.56% 17.6% Visa 0.55% 18% Walgreens Boots Alliance 3.94% 5% Waste Management 1.49% 7% Data source: Yahoo! If you don't want to go to the trouble of finding the best dividend-paying stocks for your portfolio, there's no shame in simply opting for one or more dividend-focused index funds, which will immediately spread your dollars across a big bunch of dividend payers. | Selena Maranjian owns shares of AbbVie, Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, PayPal Holdings, and Starbucks. AbbVie 4.35% 17.9% Automatic Data Processing 1.78% 11.9% Cisco Systems 2.5% 7.3% Clorox 2.81% 7.7% Coca-Cola 3.02% 3.7% Corning 2.36% 12.2% Lowe's 1.55% 18% Nike 0.66% 11.4% Starbucks 1.56% 17.6% Visa 0.55% 18% Walgreens Boots Alliance 3.94% 5% Waste Management 1.49% 7% Data source: Yahoo! The Motley Fool owns shares of and recommends Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, Nike, PayPal Holdings, Starbucks, and Visa. | AbbVie 4.35% 17.9% Automatic Data Processing 1.78% 11.9% Cisco Systems 2.5% 7.3% Clorox 2.81% 7.7% Coca-Cola 3.02% 3.7% Corning 2.36% 12.2% Lowe's 1.55% 18% Nike 0.66% 11.4% Starbucks 1.56% 17.6% Visa 0.55% 18% Walgreens Boots Alliance 3.94% 5% Waste Management 1.49% 7% Data source: Yahoo! Selena Maranjian owns shares of AbbVie, Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, PayPal Holdings, and Starbucks. 1. Dividend stocks Dividend-paying stocks are extra magical because they pack a one-two punch: As long as a dividend-paying company is healthy and executing its strategies well, its stock's value is likely to increase over time. | AbbVie 4.35% 17.9% Automatic Data Processing 1.78% 11.9% Cisco Systems 2.5% 7.3% Clorox 2.81% 7.7% Coca-Cola 3.02% 3.7% Corning 2.36% 12.2% Lowe's 1.55% 18% Nike 0.66% 11.4% Starbucks 1.56% 17.6% Visa 0.55% 18% Walgreens Boots Alliance 3.94% 5% Waste Management 1.49% 7% Data source: Yahoo! Selena Maranjian owns shares of AbbVie, Amazon, Apple, Costco Wholesale, Facebook, Intuitive Surgical, Netflix, PayPal Holdings, and Starbucks. Growth stocks Growth stocks are also magical in how powerfully they can grow your wealth. | cafbdda4-813a-43dd-bca7-5e8ebf613838 |
23946.0 | 2021-09-01 00:00:00 UTC | U.S. FDA seeks new warnings on drugs from Pfizer, Lilly and AbbVie | ABBV | https://www.nasdaq.com/articles/u.s.-fda-seeks-new-warnings-on-drugs-from-pfizer-lilly-and-abbvie-2021-09-01 | nan | nan | Sept 1 (Reuters) - The U.S. drugs regulator on Wednesday asked Pfizer Inc PFE.N, Eli Lilly & Co LLY.N and AbbVie Inc ABBV.N to include information about risks of serious conditions and death from the use of a class of treatments known as JAK inhibitors.
The warnings stem from the U.S. Food and Drug Administration's review of Pfizer's arthritis drug Xeljanz after initial results from a February trial showed an increased risk of serious heart-related problems and cancer with the drug.
AbbVie shares fell 7%, while Pfizer and Eli Lilly were slightly lower. The companies did not immediately respond to a request for comment.
JAK inhibitors block inflammation-causing enzymes, known as Janus kinases, and target autoimmune diseases such as rheumatoid arthritis and ulcerative colitis.
The FDA said the Lilly drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial.
Incyte Corp's INCY.O Jakafi and Bristol Myers Squibb's BMY.N JAK inhibitor Inrebic will not need warnings as they are not approved to treat inflammatory conditions, the agency said.
(Reporting by Manas Mishra in Bengaluru; Editing by Aditya Soni)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manasmishra24))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 1 (Reuters) - The U.S. drugs regulator on Wednesday asked Pfizer Inc PFE.N, Eli Lilly & Co LLY.N and AbbVie Inc ABBV.N to include information about risks of serious conditions and death from the use of a class of treatments known as JAK inhibitors. The FDA said the Lilly drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. AbbVie shares fell 7%, while Pfizer and Eli Lilly were slightly lower. | Sept 1 (Reuters) - The U.S. drugs regulator on Wednesday asked Pfizer Inc PFE.N, Eli Lilly & Co LLY.N and AbbVie Inc ABBV.N to include information about risks of serious conditions and death from the use of a class of treatments known as JAK inhibitors. AbbVie shares fell 7%, while Pfizer and Eli Lilly were slightly lower. The FDA said the Lilly drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. | Sept 1 (Reuters) - The U.S. drugs regulator on Wednesday asked Pfizer Inc PFE.N, Eli Lilly & Co LLY.N and AbbVie Inc ABBV.N to include information about risks of serious conditions and death from the use of a class of treatments known as JAK inhibitors. AbbVie shares fell 7%, while Pfizer and Eli Lilly were slightly lower. The FDA said the Lilly drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. | Sept 1 (Reuters) - The U.S. drugs regulator on Wednesday asked Pfizer Inc PFE.N, Eli Lilly & Co LLY.N and AbbVie Inc ABBV.N to include information about risks of serious conditions and death from the use of a class of treatments known as JAK inhibitors. AbbVie shares fell 7%, while Pfizer and Eli Lilly were slightly lower. The FDA said the Lilly drug Olumiant and AbbVie's Rinvoq have similar operating mechanisms, leading to the possibility of risks seen in the Xeljanz safety trial. | df5eb72e-9f4d-4847-bda0-b33db0629c48 |
23947.0 | 2021-08-31 00:00:00 UTC | What's Happening With Merck Stock? | ABBV | https://www.nasdaq.com/articles/whats-happening-with-merck-stock-2021-08-31 | nan | nan | The stock price of Merck (NYSE: MRK) has seen a 2.4% drop over the last five trading sessions led by a recent sell-off in large-cap pharmaceuticals stocks over the past week or so, with Johnson & Johnson, Pfizer, and Bristol Myers Squibb also falling around 3% each. These stocks have seen double-digit gains so far this year but not Merck. MRK stock has underperformed its peers, with returns of -1% year-to-date. This can be attributed to rising concerns of slowing sales for some of its drugs, such as, Januvia and Janumet, along with the impact of the Covid-19 pandemic on its vaccines, including Gardasil.
However, in Q2 the company saw a strong rebound in sales of Gardasil with 88% y-o-y growth, while its top selling drug – Keytruda – garnered $4.2 billion in sales, reflecting a 23% y-o-y growth. That said, Gardasil sales in particular had a favorable comparison to the prior-year quarter, which saw a large decline in vaccine sales amid lockdowns. The company’s GAAP profits were impacted due to a $1.7 billion charge associated with its acquisition of Pandion. Now, given the recent decline, will MRK stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent?
According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 2.1% in the next one-month (twenty-one trading days) period after experiencing a 2.4% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. But how would the returns fare if you are interested in holding MRK stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Merck stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
Some Fun Scenarios, FAQs & Making Sense of Merck Stock Movements:
Question 1: Is the average return for Merck stock higher after a drop?
Answer: Consider two situations,
Case 1: Merck stock drops by -5% or more in a week
Case 2: Merck stock rises by 5% or more in a week
Is the average return for Merck stock higher over the subsequent month after Case 1 or Case 2?
MRK stock fares better after Case 1, with an average return of 4.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of -0.4% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Merck stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Merck stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For MRK stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Merck after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
It’s pretty powerful to test the trend for yourself for Merck stock by changing the inputs in the charts above.
While MRK stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Freeport vs UnitedHealth.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This can be attributed to rising concerns of slowing sales for some of its drugs, such as, Januvia and Janumet, along with the impact of the Covid-19 pandemic on its vaccines, including Gardasil. Try the Trefis machine learning engine above to see for yourself how Merck stock is likely to behave after any specific gain or loss over a period. Answer: If you buy and hold Merck stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 2.1% in the next one-month (twenty-one trading days) period after experiencing a 2.4% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Merck stock chances of a rise after a fall. Some Fun Scenarios, FAQs & Making Sense of Merck Stock Movements: Question 1: Is the average return for Merck stock higher after a drop? | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 2.1% in the next one-month (twenty-one trading days) period after experiencing a 2.4% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. Answer: Consider two situations, Case 1: Merck stock drops by -5% or more in a week Case 2: Merck stock rises by 5% or more in a week Is the average return for Merck stock higher over the subsequent month after Case 1 or Case 2? MRK stock fares better after Case 1, with an average return of 4.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of -0.4% for Case 2. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 2.1% in the next one-month (twenty-one trading days) period after experiencing a 2.4% drop over the previous week (five trading days), implying that the stock will likely rebound in the near term. You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Merck stock chances of a rise after a fall. Try the Trefis machine learning engine above to see for yourself how Merck stock is likely to behave after any specific gain or loss over a period. | 7386c4e9-7de9-4853-a8d4-fc602f28e88d |
23948.0 | 2021-08-30 00:00:00 UTC | Does the Pullback in This Pharma Stock Create a Buying Opportunity? | ABBV | https://www.nasdaq.com/articles/does-the-pullback-in-this-pharma-stock-create-a-buying-opportunity-2021-08-30 | nan | nan | Since biotech company Amgen (NASDAQ: AMGN) reported its second-quarter earnings earlier this month, its shares have fallen 9%. The market's reaction occurred despite Amgen's performance; even against the COVID-19 headwinds the company has faced this year, it was able to exceed analysts' revenue and earnings-per-share estimates by 1.2% and 7.1%, respectively.
Let's examine Amgen's second-quarter operating results, balance sheet, and valuation to gain a better understanding of whether the pullback could be a gift from the market for long-term dividend investors.
Image source: Getty Images.
Patient visits remain below pre-COVID-19 levels
Amgen is dependent on the diagnosis of osteoporosis to drive prescription volumes for its drug Prolia. Similarly, dermatologist visits are necessary for the diagnosis of plaque psoriasis and psoriatic arthritis, which are the indications for which its drug Otezla is prescribed. Reduced patient visits lead to lower prescription volumes for those two drugs that are important to Amgen's results. That's why it's exciting that Amgen was able to beat analyst expectations even though, as vice president of global commercial operations Murdo Gordon noted during his opening remarks in Amgen's Q2 2021 earnings call, U.S. osteoporosis diagnosis rates were at 90% of pre-pandemic levels in the second quarter and dermatologist visits were at 85%.
Amgen reported $6.53 billion in revenue during Q2 2021, which was slightly above average analyst forecasts of $6.45 billion for the quarter. Amgen's Q2 2021 sales were 5.2% higher than $6.21 billion generated in the year-ago period.
Amgen's overall top-selling drug, Enbrel, used to treat arthritis and psoriasis, faced the headwinds of a 1% year-over-year volume decline and lower net prices, which is what led to an 8.2% year-over-year drop in the drug's revenue from $1.25 billion in Q2 2020 to $1.14 billion in Q2 2021.Otezla, meanwhile, wasn't able to offset its lower net selling price with its 5% volume growth, which resulted in a 4.8% year-over-year decline in revenue for the drug, from $561 million in Q2 2020 to $534 million in Q2 2021.
Even with dermatologist visits below pre-COVID-19 levels, the fact that Otezla was able to produce volume growth is impressive. What should give investors even more reason to be optimistic about Otezla's future prospects is that Amgen expects to the drug to receive its fourth U.S. Food and Drug Administration approval for a mild to moderate psoriasis indication later this year. Otezla's launch in China in the near future will also be a boost to the drug's growth profile.
Notable osteoporosis drug Prolia mostly benefited from volume growth thanks to osteoporosis diagnosis rates (and therefore, prescriptions) that were almost back to pre-pandemic levels. The drug's second-quarter revenue was up 23.5% year over year, from $659 million in 2020 to $814 million this year.
Another significant development in the second quarter was the approval of Amgen's lung cancer drug, Lumakras, in late May; this drug could eventually attain blockbuster status and drive growth for the company.
As a result of Amgen's higher revenue and a 2.7% reduction in its outstanding share count (592 million in Q2 2020 versus 576 million in Q2 2021), the company increased its adjusted EPS by 4.3% year over year, from $4.20 in Q2 2020 to $4.38 in Q2 2021. This trounced average analyst expectations of $4.09 for the quarter.
Although Amgen beat analyst estimates in the second quarter, the company maintained its adjusted EPS guidance of $16 to $17 for this year. This takes into consideration the impact of emerging COVID-19 variants on patient visits and new prescriptions. At the midpoint of $16.50, Amgen's adjusted EPS would decline less than 1% over the $16.60 generated in 2020.
A decent balance sheet
Even with Amgen being weighed down by COVID-19, its balance sheet remained solid in the second quarter of this year.
While Amgen carried $32.8 billion in long-term debt as of Q2 2021, the company possessed $6.6 billion in cash and cash equivalents. This works out to $26.2 billion in net debt, which is good enough for a net debt (cash and cash equivalents less total long-term debt)-to-EBITDA ratio of just 2.8 based on Amgen's annualized EBITDA of $9.4 billion in the first half of this year.
This means that Amgen's EBITDA could cover its total long-term debt load in less than three years, which suggests the company's debt is manageable.
For more context, Amgen's net debt-to-EBITDA ratio is lower or more conservative than AbbVie's 3.4 ratio ($73.6 billion in net debt/$21.3 billion in annualized EBITDA through the first half of this year), but riskier than Johnson & Johnson's impressive 0.6 ratio ($16 billion/$28.2 billion).
Compared to some of Amgen's closest peers, its balance sheet is neither spectacular nor lackluster. Therefore, I'd argue Amgen's balance sheet doesn't raise any red flags.
Amgen is an attractively priced stock
Despite improving operating fundamentals and several drugs with growth potential, Amgen appears to be trading at a discount to its fair value.
This is based on its price-to-sales (P/S) ratio of 5.09, which is slightly lower than its 13-year median of 5.26 and close to its two-year low of 4.72, which suggests this is one of the best buying opportunities of the past two years.
With Amgen currently priced at just 12 times next year's average analyst estimate of $18.02 in adjusted EPS (a healthy 8.6% growth rate over $16.60 in 2020), dividend investors would be well suited to consider adding Amgen's safe, 3.2% dividend yield to their portfolio.
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Kody Kester owns shares of AbbVie, Amgen, and Johnson & Johnson. The Motley Fool recommends Amgen and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For more context, Amgen's net debt-to-EBITDA ratio is lower or more conservative than AbbVie's 3.4 ratio ($73.6 billion in net debt/$21.3 billion in annualized EBITDA through the first half of this year), but riskier than Johnson & Johnson's impressive 0.6 ratio ($16 billion/$28.2 billion). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and Johnson & Johnson. The market's reaction occurred despite Amgen's performance; even against the COVID-19 headwinds the company has faced this year, it was able to exceed analysts' revenue and earnings-per-share estimates by 1.2% and 7.1%, respectively. | For more context, Amgen's net debt-to-EBITDA ratio is lower or more conservative than AbbVie's 3.4 ratio ($73.6 billion in net debt/$21.3 billion in annualized EBITDA through the first half of this year), but riskier than Johnson & Johnson's impressive 0.6 ratio ($16 billion/$28.2 billion). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and Johnson & Johnson. Amgen's overall top-selling drug, Enbrel, used to treat arthritis and psoriasis, faced the headwinds of a 1% year-over-year volume decline and lower net prices, which is what led to an 8.2% year-over-year drop in the drug's revenue from $1.25 billion in Q2 2020 to $1.14 billion in Q2 2021.Otezla, meanwhile, wasn't able to offset its lower net selling price with its 5% volume growth, which resulted in a 4.8% year-over-year decline in revenue for the drug, from $561 million in Q2 2020 to $534 million in Q2 2021. | For more context, Amgen's net debt-to-EBITDA ratio is lower or more conservative than AbbVie's 3.4 ratio ($73.6 billion in net debt/$21.3 billion in annualized EBITDA through the first half of this year), but riskier than Johnson & Johnson's impressive 0.6 ratio ($16 billion/$28.2 billion). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and Johnson & Johnson. Amgen's overall top-selling drug, Enbrel, used to treat arthritis and psoriasis, faced the headwinds of a 1% year-over-year volume decline and lower net prices, which is what led to an 8.2% year-over-year drop in the drug's revenue from $1.25 billion in Q2 2020 to $1.14 billion in Q2 2021.Otezla, meanwhile, wasn't able to offset its lower net selling price with its 5% volume growth, which resulted in a 4.8% year-over-year decline in revenue for the drug, from $561 million in Q2 2020 to $534 million in Q2 2021. | For more context, Amgen's net debt-to-EBITDA ratio is lower or more conservative than AbbVie's 3.4 ratio ($73.6 billion in net debt/$21.3 billion in annualized EBITDA through the first half of this year), but riskier than Johnson & Johnson's impressive 0.6 ratio ($16 billion/$28.2 billion). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Kody Kester owns shares of AbbVie, Amgen, and Johnson & Johnson. Patient visits remain below pre-COVID-19 levels Amgen is dependent on the diagnosis of osteoporosis to drive prescription volumes for its drug Prolia. | 486593ec-561b-4508-9d5e-71da13a84db4 |
23949.0 | 2021-08-30 00:00:00 UTC | Biotech Stocks Facing FDA Decision In September 2021 | ABBV | https://www.nasdaq.com/articles/biotech-stocks-facing-fda-decision-in-september-2021-2021-08-30 | nan | nan | (RTTNews) - As August draws to a close, let us take a look back at some of the regulatory headlines from that eventful month and look forward to what September has in store.
A new treatment for Pompe disease, Sanofi's Nexviazyme, was approved by the FDA on Aug.6. The company already has one approved Pompe disease drug, which is sold as Myozyme in Europe and Lumizyme in the U.S.
The U.S. regulator approved a novel indication for Xywav for idiopathic hypersomnia (IH) in adults on Aug.12. This drug is already approved for the treatment of cataplexy or excessive daytime sleepiness in patients seven years or older with narcolepsy.
On Aug.23, Pfizer-BioNTech COVID-19 Vaccine became the first to receive full FDA approval for the prevention of COVID-19 disease in individuals 16 years of age and older. The vaccine will now be marketed as Comirnaty and will also continue to be available under emergency use authorization, including for individuals 12 through 15 years of age and for the administration of a third dose in certain immunocompromised individuals.
Now, let's take a look at the biotech stocks facing FDA decision in September.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - As August draws to a close, let us take a look back at some of the regulatory headlines from that eventful month and look forward to what September has in store. This drug is already approved for the treatment of cataplexy or excessive daytime sleepiness in patients seven years or older with narcolepsy. On Aug.23, Pfizer-BioNTech COVID-19 Vaccine became the first to receive full FDA approval for the prevention of COVID-19 disease in individuals 16 years of age and older. | A new treatment for Pompe disease, Sanofi's Nexviazyme, was approved by the FDA on Aug.6. The company already has one approved Pompe disease drug, which is sold as Myozyme in Europe and Lumizyme in the U.S. On Aug.23, Pfizer-BioNTech COVID-19 Vaccine became the first to receive full FDA approval for the prevention of COVID-19 disease in individuals 16 years of age and older. | A new treatment for Pompe disease, Sanofi's Nexviazyme, was approved by the FDA on Aug.6. On Aug.23, Pfizer-BioNTech COVID-19 Vaccine became the first to receive full FDA approval for the prevention of COVID-19 disease in individuals 16 years of age and older. The vaccine will now be marketed as Comirnaty and will also continue to be available under emergency use authorization, including for individuals 12 through 15 years of age and for the administration of a third dose in certain immunocompromised individuals. | (RTTNews) - As August draws to a close, let us take a look back at some of the regulatory headlines from that eventful month and look forward to what September has in store. A new treatment for Pompe disease, Sanofi's Nexviazyme, was approved by the FDA on Aug.6. On Aug.23, Pfizer-BioNTech COVID-19 Vaccine became the first to receive full FDA approval for the prevention of COVID-19 disease in individuals 16 years of age and older. | ecc447f7-843c-4d81-9b6f-7e269cdee5c8 |
23950.0 | 2021-08-29 00:00:00 UTC | Best Stocks To Invest In 2021? 5 Health Care Stocks to Watch Now | ABBV | https://www.nasdaq.com/articles/best-stocks-to-invest-in-2021-5-health-care-stocks-to-watch-now-2021-08-29 | nan | nan | 5 Top Health Care Stocks For Your September 2021 Watchlist
With the global rebound in coronavirus cases courtesy of the highly infectious Delta variant, health care stocks appear to be back in play. If anything, focus on this sector of the stock market would be higher than ever. When you consider the recent alarming updates from health care experts about the pandemic, this would make sense. Earlier today, Dr. Ezekiel Emanuel, the former Obama-era health advisor, said that the pandemic is far from “dying out”. He cites the remaining at-risk group consisting of children under the age of 12 as a key factor for this outlook. This would line up with the recent data suggesting that new COVID hospital admissions for kids are at an all-time high.
To combat the current trends, vaccine companies continue to kick into high gear. For instance, Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) recently received full FDA approval for their coronavirus vaccine. While they may be the first, other names in the industry like Moderna (NASDAQ: MRNA) are also pushing for full approval now. In fact, the company just completed its full approval submission to the FDA earlier this week on Wednesday.
Aside from the current pandemic, general day-to-day health care also remains a vital aspect of life as well. Accordingly, work done across the industry whether it is from pharmaceutical giants or upcoming biotechs remains relevant. With all of this said, would these health care stocks be top picks in the stock market today?
Top Health Care Stocks To Watch Today
Neurometrix Inc. (NASDAQ: NURO)
AbbVie Inc. (NYSE: ABBV)
Novavax Inc. (NASDAQ: NVAX)
Johnson & Johnson (NYSE: JNJ)
RenovoRx Inc. (NASDAQ: RNXT)
Neurometrix Inc.
Neurometrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices. Its products are used by patients throughout the world and it has 3 FDA-cleared commercial products.
Notably, its DPNCheck is a point-of-care test that is used to evaluate peripheral neuropathies. The company’s ADVANCE is a point-of-care device that provides nerve conduction studies as an aid in diagnosing and evaluating patients suspected of having focal or systemic neuropathies.
This latest rally could be due to investors who are active on social media platforms like Reddit and Twitter appear to be coordinating a short squeeze. The short squeeze is an attempt to push the stock’s valuation up higher as other meme stocks have been in the past. Last month, the company received Breakthrough Designation from the FDA for treating the symptoms of fibromyalgia in adults. All things considered, will you add NURO stock to your portfolio right now?
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AbbVie Inc.
AbbVie is a biopharmaceutical company with headquarters in Illinois. The company essentially develops advanced therapies to treat some of the world’s greatest health challenges. AbbVie has helped improve the lives of people across several therapeutic areas. Namely, this includes immunology, oncology, neuroscience, eye care, and virology.
On August 24, 2021, the company announced that the European Commission (EC) has approved Rinvoq, an oral reversible JAK inhibitor for the treatment of moderate to severe atopic dermatitis in adults and adolescents 12 years and older. The approval is supported by data from one of the largest registrational Phase 3 programs in atopic dermatitis evaluating Rinvoq monotherapy or with topical corticosteroids.
Impressively, the drug met all primary and secondary endpoints, demonstrating rapid and significant improvement in skin clearance and itch reduction compared to placebo at earlier time points. Given all of this, will you consider investing in ABBV stock?
Novavax Inc.
Next, we have Novavax, a clinical-stage vaccine company committed to delivering novel products to prevent a broad range of infectious diseases. Its recombinant nanoparticles and adjuvant technology are game-changing and continuously strive to improve global health.
On Wednesday, the company announced that its recombinant nanoparticle protein vaccine candidate is being studied in OCTAVE-DUO, now underway in the UK to evaluate the safety and immunogenicity of a third coronavirus vaccine dose in participants with impaired immune systems.
“We expect the results of this study to be particularly helpful to better understanding how our vaccine might work as a heterologous third dose in immunocompromised individuals,” said Gregory M. Glenn, M.D., President of Research and Development, Novavax. The company’s vaccine candidate has shown to be effective against the newer strains of the coronavirus. For these reasons, would NVAX stock be a top pick for you?
[Read more] Best Stocks To Invest In 2021? 3 Cyclical Stocks To Watch
Johnson & Johnson
Following that is Johnson & Johnson (JNJ), another notable player in the coronavirus vaccine space now. For the most part, JNJ identifies as a developer and provider of medical devices, pharmaceuticals, and consumer packaged goods. For over a century, JNJ has and continues to provide for the lifestyle and health care needs of consumers globally. By JNJ’s estimates, it is the world’s largest and broad-based health care company in the market.
Now, the company’s current vaccine candidate is among the few that only require one dose for initial inoculation. However, as with most of its peers, the company is now looking towards developing a booster shot for its vaccine to combat the more infectious Delta variant.
Earlier this week, JNJ reported that its booster shot “generated a rapid and robust” immune response in early clinical-stage trials. Notably, the effect was nine times greater than that of the initial 28-days after the first shot. With this in mind, would you consider JNJ stock worth investing in now?
[Read more] Top Stocks To Buy Now? 5 Dividend Stocks To Watch
RenovoRx Inc.
Last but not least, we will be taking a look at RenovoRx, a California-based biopharmaceutical company. In brief, the company primarily operates via its proprietary therapy platform, the RenovoRx Trans-Arterial Micro-Perfusion (RenovoTAMP). Through the RenovoTAMP, the company delivers its lead product candidate RenovoGem towards “difficult-to-treat tumors”. If anything, all this would contribute to the current hype around
Currently, the company’s tech is under investigation to increase survival and improve the quality of life for pancreatic cancer patients. By and large, the precision of Renovo’s tech could make it a health care player to note in the market today.
For now, RenovoGem is currently classified under FDA Orphan Drug designation as a potential treatment for pancreatic cancer and bile duct cancer. All in all, time will tell if Renovo can make the most of its current operations. In the meantime, would you consider keeping an eye on RNXT stock moving forward?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Health Care Stocks To Watch Today Neurometrix Inc. (NASDAQ: NURO) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Johnson & Johnson (NYSE: JNJ) RenovoRx Inc. (NASDAQ: RNXT) Neurometrix Inc. Neurometrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices. 4 IPO Stocks To Watch AbbVie Inc. AbbVie is a biopharmaceutical company with headquarters in Illinois. AbbVie has helped improve the lives of people across several therapeutic areas. | Top Health Care Stocks To Watch Today Neurometrix Inc. (NASDAQ: NURO) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Johnson & Johnson (NYSE: JNJ) RenovoRx Inc. (NASDAQ: RNXT) Neurometrix Inc. Neurometrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices. 4 IPO Stocks To Watch AbbVie Inc. AbbVie is a biopharmaceutical company with headquarters in Illinois. AbbVie has helped improve the lives of people across several therapeutic areas. | Top Health Care Stocks To Watch Today Neurometrix Inc. (NASDAQ: NURO) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Johnson & Johnson (NYSE: JNJ) RenovoRx Inc. (NASDAQ: RNXT) Neurometrix Inc. Neurometrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices. 4 IPO Stocks To Watch AbbVie Inc. AbbVie is a biopharmaceutical company with headquarters in Illinois. AbbVie has helped improve the lives of people across several therapeutic areas. | Top Health Care Stocks To Watch Today Neurometrix Inc. (NASDAQ: NURO) AbbVie Inc. (NYSE: ABBV) Novavax Inc. (NASDAQ: NVAX) Johnson & Johnson (NYSE: JNJ) RenovoRx Inc. (NASDAQ: RNXT) Neurometrix Inc. Neurometrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices. 4 IPO Stocks To Watch AbbVie Inc. AbbVie is a biopharmaceutical company with headquarters in Illinois. AbbVie has helped improve the lives of people across several therapeutic areas. | 4acbd80a-ca0a-4352-adb6-b5fc66369777 |
23951.0 | 2021-08-29 00:00:00 UTC | Could These Clinical Results Mean Profit for AbbVie Shareholders? | ABBV | https://www.nasdaq.com/articles/could-these-clinical-results-mean-profit-for-abbvie-shareholders-2021-08-29 | nan | nan | Earlier this month, pharma giant AbbVie (NYSE: ABBV) reported the results from its phase 3 clinical trial testing of atogepant for the preventive treatment of migraine in adults who met the criteria for episodic migraine.
Let's take a look at why the results of the study could soon lead to an approval from the U.S. Food and Drug Administration (FDA), as well as what impact that would have on AbbVie and its shareholders.
Image source: Getty Images.
A highly prevalent medical condition
Before going into the results of atogepant's phase 3 clinical trial, let's start by discussing the prevalence of migraines and the differentiation between the various frequencies of migraine disorders.
Migraine is a neurological disease with often incapacitating neurological symptoms. Secondary symptoms such as nausea, vomiting, and sensitivity to sound, light, touch, and smell often accompany the hallmark symptom of a migraine, which is a severe, throbbing pain typically on one side of the head.
Migraines can further be classified into three categories based on their frequency. Migraines that occur fewer than 10 days per month are considered to be low-frequency episodic migraines. Migraines occurring 10-14 days per month are diagnosed as high-frequency episodic migraines. Finally, migraines that occur at least 15 days per month are classified as chronic migraines.
It's estimated that 17.1% of American women and 5.6% of American men suffer with episodic migraines, whereas 1.3% of women and 0.5% of men in the U.S. suffer from chronic migraines.
Arguably the most important piece of information to know about episodic migraines is that optimal treatment is the greatest predictor of whether a patient will progress to chronic migraines.
The American Headache Society found that only 2.5% of patients receiving "maximal treatment optimization" to control their episodic migraines progressed to chronic migraines in the following year. Maximal treatment optimization is essentially when a patient's migraine headaches are being effectively controlled with available treatment options such that migraine affects their life as little as possible. This is in stark contrast to the 8.1% of patients receiving "very poor" treatment who progressed to chronic migraines in the following year. In other words, the treatments that these patients are receiving are not doing an adequate job of addressing the disruptions to their lives from migraines.
A meaningful reduction in monthly headache days
Atogepant has proven itself as an effective treatment for the prevention of episodic migraines, which is backed up by the data from its phase 3 trial.
Patients treated with 10-milligram, 30-milligram, and 60-milligram once-daily doses of atogepant reported respective decreases of mean or average monthly headache days of 3.9 (with a previous baseline of 8.4), 4 (8.8 baseline), and 4.2 (9 baseline), which were all significantly more than the 2.5-day reduction in the placebo group (8.4 baseline).
Through the duration of the 12-week treatment period, 55.6%, 58.7%, and 60.8% of patients receiving 10 mg, 30 mg, and 60 mg, respectively, of atogepant once daily attained at least a 50% reduction in monthly migraine days.
The drug was also well tolerated in the phase 3 study. While patients receiving atogepant were more likely to complain of constipation (6.9%-7.7% versus 0.5% for placebo), nausea (4.4%-6.1% versus 1.8% for placebo), and urinary tract infection (3.9%-5.7% versus 4.5% for placebo), the majority of these complaints were mild to moderate in severity. Against the potential benefit of the drug in reducing monthly migraine days, this led to a low discontinuation rate for atogepant.
Potential to seize share in a growing market
AbbVie is anticipating a regulatory decision from the FDA late in the third quarter, which ends Sept. 30. Given the efficacy of atogepant and the mild side effects associated with the drug, I believe an FDA approval for atogepant is imminent.
This would greatly complement AbbVie's existing migraine drug portfolio, which consists of Botox (used to treat chronic migraine among other conditions) and Ubrelvy (used to treat, but not prevent, acute migraines).
Upon approval from the FDA, atogepant could capture share in a global migraine drug market that research company Market Data Forecast expects to grow by 4.9% annually, from $4.4 billion in 2021 revenue to $5.6 billion by 2026.
Atogepant's phase 3 results lead me to believe that the drug could realistically capture 15% market share, which would equate to approximately $800 million in annual revenue by 2026. Even compared with the $56.4 billion in revenue that analysts are forecasting this year for AbbVie, an additional $800 million in annual revenue in five years would be significant.
Atogepant is one of many promising drugs for AbbVie
Vice Chairman Dr. Michael Severino noted during AbbVie's Q2 2021 earnings call that AbbVie and Boehringer Ingelheim's immunology drug, Skyrizi, remains on track to submit its regulatory application to the FDA for a Crohn's disease indication in the coming months.
Given that Skyrizi was able to nearly double its first-half revenue from $630 million in 2020 to $1.25 billion in 2021 with its market-leading 34% psoriasis patient share, another indication for a multi-billion-dollar market could drive further growth for the drug.
Meanwhile, AbbVie and Johnson & Johnson's blockbuster oncology drug, Imbruvica, posted 5% year-over-year growth in the first half, from $2.52 billion in 2020 to $2.65 billion in 2021. AbbVie is expecting that its Imbruvica and Venclexta combo will be approved next year to treat both stage 1 chronic lymphocytic leukemia and relapsed or refractory mantle cell lymphoma, which should also lead to future growth for the two oncology drugs.
AbbVie's strong drug portfolio and its S&P 500-beating 4.3% dividend yield offer income investors a safe dividend with the potential for future growth, which is what I believe makes the stock a buy at this time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is expecting that its Imbruvica and Venclexta combo will be approved next year to treat both stage 1 chronic lymphocytic leukemia and relapsed or refractory mantle cell lymphoma, which should also lead to future growth for the two oncology drugs. Earlier this month, pharma giant AbbVie (NYSE: ABBV) reported the results from its phase 3 clinical trial testing of atogepant for the preventive treatment of migraine in adults who met the criteria for episodic migraine. Let's take a look at why the results of the study could soon lead to an approval from the U.S. Food and Drug Administration (FDA), as well as what impact that would have on AbbVie and its shareholders. | Earlier this month, pharma giant AbbVie (NYSE: ABBV) reported the results from its phase 3 clinical trial testing of atogepant for the preventive treatment of migraine in adults who met the criteria for episodic migraine. Let's take a look at why the results of the study could soon lead to an approval from the U.S. Food and Drug Administration (FDA), as well as what impact that would have on AbbVie and its shareholders. Potential to seize share in a growing market AbbVie is anticipating a regulatory decision from the FDA late in the third quarter, which ends Sept. 30. | Earlier this month, pharma giant AbbVie (NYSE: ABBV) reported the results from its phase 3 clinical trial testing of atogepant for the preventive treatment of migraine in adults who met the criteria for episodic migraine. This would greatly complement AbbVie's existing migraine drug portfolio, which consists of Botox (used to treat chronic migraine among other conditions) and Ubrelvy (used to treat, but not prevent, acute migraines). Let's take a look at why the results of the study could soon lead to an approval from the U.S. Food and Drug Administration (FDA), as well as what impact that would have on AbbVie and its shareholders. | Earlier this month, pharma giant AbbVie (NYSE: ABBV) reported the results from its phase 3 clinical trial testing of atogepant for the preventive treatment of migraine in adults who met the criteria for episodic migraine. Let's take a look at why the results of the study could soon lead to an approval from the U.S. Food and Drug Administration (FDA), as well as what impact that would have on AbbVie and its shareholders. Potential to seize share in a growing market AbbVie is anticipating a regulatory decision from the FDA late in the third quarter, which ends Sept. 30. | ac2019f4-6d21-4b5b-916f-a689028e42f4 |
23952.0 | 2021-08-28 00:00:00 UTC | AbbVie's (NYSE:ABBV) investors will be pleased with their stellar 134% return over the last five years | ABBV | https://www.nasdaq.com/articles/abbvies-nyse%3Aabbv-investors-will-be-pleased-with-their-stellar-134-return-over-the-last | nan | nan | The main point of investing for the long term is to make money. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the AbbVie Inc. (NYSE:ABBV) share price is up 86% in the last five years, that's less than the market return. However, if you include the dividends then the return is market beating. However, more recent buyers should be happy with the increase of 27% over the last year.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Over half a decade, AbbVie managed to grow its earnings per share at 1.3% a year. This EPS growth is lower than the 13% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NYSE:ABBV Earnings Per Share Growth August 28th 2021
Dive deeper into AbbVie's key metrics by checking this interactive graph of AbbVie's earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for AbbVie the TSR over the last 5 years was 134%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
AbbVie provided a TSR of 33% over the year (including dividends). That's fairly close to the broader market return. Most would be happy with a gain, and it helps that the year's return is actually better than the average return over five years, which was 19%. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand AbbVie better, we need to consider many other factors. Take risks, for example - AbbVie has 4 warning signs we think you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Unfortunately for shareholders, while the AbbVie Inc. (NYSE:ABBV) share price is up 86% in the last five years, that's less than the market return. Over half a decade, AbbVie managed to grow its earnings per share at 1.3% a year. NYSE:ABBV Earnings Per Share Growth August 28th 2021 Dive deeper into AbbVie's key metrics by checking this interactive graph of AbbVie's earnings, revenue and cash flow. | Unfortunately for shareholders, while the AbbVie Inc. (NYSE:ABBV) share price is up 86% in the last five years, that's less than the market return. NYSE:ABBV Earnings Per Share Growth August 28th 2021 Dive deeper into AbbVie's key metrics by checking this interactive graph of AbbVie's earnings, revenue and cash flow. Over half a decade, AbbVie managed to grow its earnings per share at 1.3% a year. | Unfortunately for shareholders, while the AbbVie Inc. (NYSE:ABBV) share price is up 86% in the last five years, that's less than the market return. We note that for AbbVie the TSR over the last 5 years was 134%, which is better than the share price return mentioned above. Over half a decade, AbbVie managed to grow its earnings per share at 1.3% a year. | Unfortunately for shareholders, while the AbbVie Inc. (NYSE:ABBV) share price is up 86% in the last five years, that's less than the market return. We note that for AbbVie the TSR over the last 5 years was 134%, which is better than the share price return mentioned above. Over half a decade, AbbVie managed to grow its earnings per share at 1.3% a year. | b183f9a2-9e9c-4971-b398-45ca5fa07806 |
23953.0 | 2021-08-28 00:00:00 UTC | 5 High-Yield Dividend Stocks That Can Double Your Money by 2029 | ABBV | https://www.nasdaq.com/articles/5-high-yield-dividend-stocks-that-can-double-your-money-by-2029-2021-08-28 | nan | nan | There are a lot of ways to make money on Wall Street. But if there's one common theme among the best-performing portfolios, it's that they're often reliant on dividend stocks.
In 2013, J.P. Morgan Asset Management released a report that demonstrated just how dominant dividend stocks are, relative to public companies that don't pay a dividend. Between 1972 and 2012, companies that initiated and grew their payouts averaged an annual gain of 9.5%. By comparison, non-dividend-paying stocks only managed a meager annualized return of 1.6% over the same time frame.
These results shouldn't be a surprise. Since most dividend stocks are profitable and have time-tested operating models, they're the ideal place for long-term investors and income seekers to park their money.
The quandary for income seekers is that they want the most income possible with the least amount of risk. However, risk and yield tend to be correlated once you get into the high-yield category (above 4%).
Image source: Getty Images.
But that's not the case with the following five high-yield stocks. These time-tested companies should continue to deliver for investors via share-price appreciation and yield. I believe they can double your initial investment by 2029 (or sooner).
Annaly Capital Management: 10.3% yield
For income seekers who'd prefer the dividend to do most of the heavy lifting, mortgage real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is a good bet to double your money by or before 2029. If you were to reinvest your payouts at this 10.3% yield, Annaly's dividend alone would double your initial investment in seven years.
Mortgage REITs like Annaly aim to borrow money at lower short-term rates to purchase mortgage-backed securities (MBS) with higher long-term yields. The goal here is to maximize the difference between the average long-term MBS yield and the average borrowing rate, which is known as net interest margin. Typically, as the yield curve steepens during an economic recovery, net interest margins widen. Thus, as the U.S. economy finds its footing, Annaly's core operations and profit potential should improve.
Annaly is also aided by its ability to prudently lean on leverage to pump up its earning potential. Since the bulk of its assets are agency securities -- i.e., those protected from default by the federal government -- Annaly can borrow money to a greater degree in order to increase its profits and fund its juicy dividend.
As one final note, over the past two decades, Annaly has averaged around a 10% dividend yield, and it's paid out over $20 billion in dividends since its inception nearly a quarter-century ago.
Image source: Getty Images.
AbbVie: 4.4% yield
On the other end of the high-yield dividend spectrum, at least on this list, is pharmaceutical stock AbbVie (NYSE: ABBV). Considering its 4.4% yield, its modest growth potential, and its insane value proposition, AbbVie has all the tools needed to double investors' money by 2029, if not sooner.
There's no question that anti-inflammatory drug Humira is going to play a big role in AbbVie's long-term success. Prior to the mammoth sales associated with coronavirus vaccines, Humira was the top-selling drug in the world. It has 10 approved indications in the U.S., 14 internationally, and is pacing nearly $20 billion in annual sales for 2021, based on the $9.94 billion registered through the first six months of the year. Even with the potential for biosimilar competition in the U.S. in the coming years, Humira's multiple approved indications and generally strong pricing power provide a runway for AbbVie to generate significant cash flow from its top drug.
Beyond Humira, AbbVie has turned to acquisitions to diversify its revenue stream and further shore up its cash flow. In May 2020, it completed a cash-and-stock deal to buy Allergan. Aside from being immediately accretive to earnings, the deal provides added cash flow for research and development and gives AbbVie another blockbuster presence with Botox, which has cosmetic and therapeutic applications.
At less than nine times forward earnings, AbbVie looks every part a steal for value investors and income seekers.
Image source: Getty Images.
Altria Group: 7.1% yield
I'll be the first to admit that tobacco stocks aren't the sexy growth story they once were. But when push comes to shove, few industries have more consistently delivered for investors over the long run. By 2029, Altria Group (NYSE: MO), the company behind the premium Marlboro cigarette brand in the U.S., is a good bet to double investors' money.
To state the obvious, tobacco volume metrics have been headed in the wrong direction for decades. As people have become better educated about the negative health effects of tobacco use, fewer adults have chosen to light up. Interestingly, though, this hasn't hurt Altria as much as you'd think. The company has exceptionally strong pricing power, thanks in part to the addictive nature of nicotine, and has been able to raise prices to offset cigarette-volume declines.
What's more, Altria is aggressively investing in its future. It's been introducing the IQOS heated tobacco system (licensed in the U.S. from Philip Morris International) to a number of new U.S. markets and holds a 45% equity stake in Canadian marijuana stock Cronos Group. Expect Altria to work hand in hand with Cronos to develop vape products and establish a marketing strategy.
Since Altria offers investors a dividend yield of 7.1%, only modest share-price appreciation would be needed for Altria to double your money by or before 2029.
Image source: Getty Images.
IBM: 4.7% yield
For the past decade, IBM (NYSE: IBM) has had about the same amount of appeal as watching paint dry. The tech stalwart waited too long to shift its focus to cloud computing. As a result, it's seen sales for its legacy operations go in reverse. But following a decade of transformation, a new IBM is blossoming that can, once again, deliver for its shareholders.
When the June quarter came to a close, IBM reported $7 billion in cloud revenue, which was up 13% from the prior-year period. More importantly, cloud sales made up 37% of total revenue. Since cloud margins are considerably higher than the margins associated with IBM's legacy operations, they're the key to growing the company's operating cash flow. As a reminder, IBM loves to use its cash flow to pay its juicy 4.7% dividend, buy back its stock, and make bolt-on acquisitions (mostly in the cloud space).
It's also worth pointing out that IBM chose to focus on hybrid-cloud solutions -- those that combine public and private clouds -- allowing for data to be shared between the two platforms. The hybrid cloud is perfect for big-data projects, which is something IBM has always excelled at. It's also ideal for a hybrid-working world, with remote workforces a common theme since the pandemic began.
IBM is unlikely to return to its former glory. However, a doubling of your initial investment by 2029 vis-à-vis dividend reinvestment and share-price appreciation seems very doable.
Image source: Getty Images.
Enterprise Products Partners: 8.3% yield
A final high-yield dividend stock that can use its superior payout and share-price appreciation to double your money by 2029 or sooner is master-limited-partnership Enterprise Products Partners (NYSE: EPD).
After last year, I can imagine the idea of owning oil stocks is a low priority for some investors. That's because an historic drawdown in crude oil demand ravaged the operating performance and balance sheets of most drillers.
However, Enterprise Products Partners was hardly fazed because it's a midstream operator. In other words, it controls more than 50,000 miles of pipeline and 14 billion cubic feet of natural gas storage space, in addition to more than a dozen processing facilities.
The company's take-or-pay contracts are set up in such a way that a majority of its revenue and cash flow is highly transparent. This allows the company to outlay capital for infrastructure projects without having to worry about weighing down its profit potential or adversely impacting its lucrative dividend, which stood at 8.3%, as of this past weekend.
Something else noteworthy about Enterprise Products Partners is its dividend. The company has raised its base annual payout for 22 consecutive years, and its distribution coverage ratio didn't drop below 1.6 during the pandemic (anything below 1 would signify an unsustainable payout). With incredible cash flow clarity and a willingness to spend on new infrastructure projects, Enterprise Products Partners is a good bet to double investors' money by 2029.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Even with the potential for biosimilar competition in the U.S. in the coming years, Humira's multiple approved indications and generally strong pricing power provide a runway for AbbVie to generate significant cash flow from its top drug. AbbVie: 4.4% yield On the other end of the high-yield dividend spectrum, at least on this list, is pharmaceutical stock AbbVie (NYSE: ABBV). Considering its 4.4% yield, its modest growth potential, and its insane value proposition, AbbVie has all the tools needed to double investors' money by 2029, if not sooner. | AbbVie: 4.4% yield On the other end of the high-yield dividend spectrum, at least on this list, is pharmaceutical stock AbbVie (NYSE: ABBV). Considering its 4.4% yield, its modest growth potential, and its insane value proposition, AbbVie has all the tools needed to double investors' money by 2029, if not sooner. There's no question that anti-inflammatory drug Humira is going to play a big role in AbbVie's long-term success. | AbbVie: 4.4% yield On the other end of the high-yield dividend spectrum, at least on this list, is pharmaceutical stock AbbVie (NYSE: ABBV). Considering its 4.4% yield, its modest growth potential, and its insane value proposition, AbbVie has all the tools needed to double investors' money by 2029, if not sooner. There's no question that anti-inflammatory drug Humira is going to play a big role in AbbVie's long-term success. | AbbVie: 4.4% yield On the other end of the high-yield dividend spectrum, at least on this list, is pharmaceutical stock AbbVie (NYSE: ABBV). Considering its 4.4% yield, its modest growth potential, and its insane value proposition, AbbVie has all the tools needed to double investors' money by 2029, if not sooner. There's no question that anti-inflammatory drug Humira is going to play a big role in AbbVie's long-term success. | c4011262-e2a9-40b4-82fd-a6a904e7819b |
23954.0 | 2021-08-27 00:00:00 UTC | The 3 Best Biotech Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/the-3-best-biotech-stocks-to-buy-right-now-2021-08-27 | nan | nan | Investing in biotech companies is hard. Shareholders are often subject to wild price swings based on results that may not translate to future studies. But when a drug succeeds, the gains can be extraordinary. That's why it pays to be diversified and make sure you are comfortable with the level of risk in any stock you hold.
ALX Oncology (NASDAQ: ALXO), Vertex Pharmaceuticals (NASDAQ: VRTX), and Beam Therapeutics (NASDAQ: BEAM) are at different stages of the company lifecycle. That means their potential stock volatility and future gains could also be different. Depending on your tolerance for risk, one of them might be the best biotech to add to your portfolio right now.
Image source: Getty Images.
1. ALX Oncology
One of the latest methods to fight cancer is to target CD47. It's a protein that sits on the surface of cells and tells the immune system not to destroy it. For that reason, it is called the "don't eat me" signal. And cancer uses it to evade detection. ALX Oncology is one of a number of companies that has developed a method to block the signal so the immune system can do its job.
The approach has spurred several deals in the past 18 months. First, Gilead Sciences purchased Forty Seven last March. Next, AbbVie licensed CD47 assets from Chinese biotech I-MAB last September. Earlier this week, Pfizer announced it was acquiring Trillium Therapeutics. It's clearly an asset that is in demand.
ALX has one primary drug -- evorpacept -- that it is exploring in multiple trials. It's a combination therapy with Merck's Keytruda and is in phase 2. It has five more programs in phase 1. Like other CD47 companies, ALX is targeting blood cancers and hopes to prove efficacy in solid tumors. So far, it has demonstrated impressive response rates without triggering safety concerns. With so much focus on CD47, it might not be long before a larger player decides it doesn't want to be left out of this burgeoning field of cancer therapy. ALX Oncology has something to offer.
2. Vertex Pharmaceuticals
If you are searching for a more established company in the biotech industry but still want the potential of a novel approach, Vertex might be for you. The company specializes in treating cystic fibrosis (CF) -- a disease where mucus builds up in organs, most dangerously in the lungs. Management estimates that it treats about half of the 83,000 CF patients in the U.S., Canada, Australia, and Europe. It believes it can eventually treat close to 90% of that population, and it has the track record to get there. Vertex's first CF drug was approved in 2012. Since then, it has obtained approval for three more. Its latest, Trikafta, comes with a price tag above $300,000. But the company has more in its pipeline.
In April, Vertex paid CRISPR Therapeutics $900 million for 60% of its gene-editing therapy for sickle cell disease and beta-Thalassemia. Each has a phase 1/2 clinical study underway. The therapy is a one-time treatment and functional cure. Management expects both studies to complete enrollment before the end of September, and it anticipates filing for approval in the next 18 to 24 months.
Thanks to its continuing innovation in CF, Vertex's revenue has reached $1.8 billion in the first six months of 2021 -- 140% more than it was in 2018. Despite the growth, the stock trades at a multi-year low price-to-sales ratio.
VRTX PS Ratio data by YCharts
Some on Wall Street are concerned with the company's pipeline beyond CF. That's especially true after it stopped its trial to treat a rare genetic disorder affecting the liver and lungs, even after positive phase 2 data. Management felt that the results wouldn't translate to meaningful clinical benefit.
At least for now, it leaves a proven innovator with a stronghold in one disease area trading at a significant discount to its own historical levels. For more conservative investors, Vertex Pharmaceuticals could be the perfect biotech to add right now.
3. Beam Therapeutics
For more adventurous investors, there is a company with no revenue but a roster of accomplished researchers and a novel idea. I'm talking about Beam Therapeutics, the company that is putting a different spin on gene editing. Instead of CRISPR-Cas9 -- the method that earned its creators the Nobel Prize in Chemistry last year -- Beam uses base editing. It's a kind of chemical eraser and pencil to modify the genome. CRISPR-Cas9 takes an approach that has been likened to scissors.
Management recently announced it will file an Investigational New Drug Application for its own sickle cell disease treatment by December. The drug -- BEAM-101 -- works by preventing sickle cells from forming. Its other treatment for the disease -- BEAM-102 -- works by helping patients create regular blood cells. The company hopes to start studies for it later this year as well. That's great news for investors, who are eager to get data they believe will show Beam's approach is superior to CRISPR-Cas9.
Beam was formed in 2017 by David Liu, Feng Zhang, and J. Keith Joung. Liu is also the founder of Editas Medicine and Prime Medicine. Among his awards and commercial activities, Joung received his Ph.D. in genetics from Harvard University and an M.D. from Harvard Medical School. Zheng is a CRISPR pioneer whose team at the Broad Institute -- a research organization associated with both Harvard and the Massachusetts Institute of Technology -- fought a years-long battle over patents for the CRISPR-Cas9 technology. Although the Novel Prize went to his rivals, Zheng's team was actually the first to receive patents covering the use of the approach in cells.
Beam is early in its journey to revolutionize genetic medicine. Still, the founders continue to extend our capabilities. Liu followed up the 2016 invention of base editing with prime editing in 2019. For his part, Zhang recently introduced a novel way to deliver messenger RNA to cells. Although neither will be the property of Beam, both men continue to serve as advisors to the company. For investors with the stomach to handle the uncertainty, Beam Therapeutics could be the best biotech to buy right now.
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Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Editas Medicine, and Vertex Pharmaceuticals. The Motley Fool recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Next, AbbVie licensed CD47 assets from Chinese biotech I-MAB last September. The company specializes in treating cystic fibrosis (CF) -- a disease where mucus builds up in organs, most dangerously in the lungs. That's especially true after it stopped its trial to treat a rare genetic disorder affecting the liver and lungs, even after positive phase 2 data. | Next, AbbVie licensed CD47 assets from Chinese biotech I-MAB last September. ALX Oncology (NASDAQ: ALXO), Vertex Pharmaceuticals (NASDAQ: VRTX), and Beam Therapeutics (NASDAQ: BEAM) are at different stages of the company lifecycle. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Editas Medicine, and Vertex Pharmaceuticals. | Next, AbbVie licensed CD47 assets from Chinese biotech I-MAB last September. ALX Oncology (NASDAQ: ALXO), Vertex Pharmaceuticals (NASDAQ: VRTX), and Beam Therapeutics (NASDAQ: BEAM) are at different stages of the company lifecycle. Vertex Pharmaceuticals If you are searching for a more established company in the biotech industry but still want the potential of a novel approach, Vertex might be for you. | Next, AbbVie licensed CD47 assets from Chinese biotech I-MAB last September. ALX Oncology (NASDAQ: ALXO), Vertex Pharmaceuticals (NASDAQ: VRTX), and Beam Therapeutics (NASDAQ: BEAM) are at different stages of the company lifecycle. Vertex's first CF drug was approved in 2012. | 442c4463-ce77-4e2d-ad80-c6f87b9af8ca |
23955.0 | 2021-08-27 00:00:00 UTC | 2 Healthcare Stocks That Could Make You Richer | ABBV | https://www.nasdaq.com/articles/2-healthcare-stocks-that-could-make-you-richer-2021-08-27 | nan | nan | Finding stocks that have true staying power for your portfolio isn't always easy. In today's historically overpriced market that could potentially be on the verge of another correction, it's more important than ever to focus on high-quality companies that can lend sustained growth to your holdings. Companies operating in non-cyclical industries -- sectors where demand is continuous regardless of market or economic conditions -- often prove to be the most resilient investments amid market ups and downs.
Healthcare is one such industry. The following two top healthcare stocks have a lot to offer the long-term investor, from solid histories of balance-sheet and share-price growth to robust dividends to compelling brands and durable competitive advantages.
Image source: Getty Images.
1. Pfizer
Pfizer (NYSE: PFE) was an established leader in the pharmaceutical industry with close to two centuries in business before the coronavirus pandemic brought the company to the public eye. But there's no disputing that the success of Comirnaty, the coronavirus vaccine it developed with BioNTech, has ushered in a new era of growth for the company. Comirnaty, which on Aug. 23 garnered the distinction of being the first coronavirus vaccine to receive full approval from the U.S. Food and Drug Administration, is on track to generate revenue of more than $33 billion for the company in 2021.
In the first six months of 2021, Pfizer reported that its revenues surged by an incredible 68% from the same period in 2020. Meanwhile, its net income during the same six-month window popped 53% year over year.
Previously, the company was known for more modest, albeit steady, rates of revenue growth. For example, in 2018, Pfizer reported 2% revenue growth, followed by a slight 1% decline in in 2019. And in 2020, management said revenue increased 3% from the prior year.
While Comirnaty has been a crucial factor behind Pfizer's recent quarterly performance, it isn't the only reason for these glowing top- and bottom-line figures. The company divested itself of its Upjohn division late last year in a spin-off with Mylan, forming the company now called Viatris. Upjohn was the company's generics division, and its lineup of poorly performing and older drugs was dragging down Pfizer's overall financial performance.
With Upjohn no longer in the picture, Pfizer's balance sheet is shaping up better than ever. Its stable of top-selling drugs, which treat everything from cancers to immune disorders to rare diseases, continues to generate high demand and rake in profits for the company. Case in point: In the second quarter of 2021, Pfizer's revenue, exclusive of Comirnaty, surged 10% year over year; with the coronavirus vaccine included, its top line jumped 86% year over year.
Another bright spot for investors is Pfizer's dividend, which yields 3.3% based on current share prices. Pfizer regularly increases this dividend, paying out $4.4 billion in dividends to shareholders during the first half of 2021 alone -- a 3% hike on a year-over-year basis.
Pfizer's consistent history of dividend increases, not to mention its steady price appreciation (the stock is up 30% year to date), make this healthcare stock a super-smart buy that can boost your portfolio's returns over the long term.
2. AbbVie
Pharmaceutical stock AbbVie (NYSE: ABBV) is another premium buy in the healthcare industry that can help investors snag consistent portfolio returns in the form of both share-price increases and quarterly dividends. Shares of the company are up about 15% year to date and have risen by close to 30% over the past year. However, it's AbbVie's dividend that really takes the cake.
AbbVie is one of a very short list of companies that have made it into the elite club of stocks known as Dividend Aristocrats. And the company's yield is more than three times that of the average stock that trades in the S&P 500, delivering 4.3% for shareholders at the time of this writing.
AbbVie has long held the distinction of being the company with the world's top-selling pharmaceutical drug, Humira, which raked in sales of about $20 billion in 2020 alone. The drug treats conditions ranging from rheumatoid arthritis to Crohn's disease to moderate-to-severe plaque psoriasis. Although AbbVie will lose its U.S. patent exclusivity for Humira in a few years, the drug should still continue to provide a notable stream of revenue for the company.
AbbVie also has plenty of other golden eggs in its basket, such as Skyrizi (for moderate to severe plaque psoriasis), Rinvoq (for rheumatoid arthritis), and Imbruvica (for multiple types of blood cancer). Then there's the host of products that the company acquired when it bought Allergan last year. These include Botox Cosmetic for smoothing facial lines and Restasis, a chronic dry eye treatment.
In the second quarter of 2021, AbbVie reported that its total net revenue jumped 34% year over year. The company also delivered exceptional year-over-year results across its blood cancer, neuroscience, immunology, and aesthetic products portfolios with growth of 14%, 99%, 15%, and 100%, respectively.
AbbVie is a rock-solid pick for buy-and-hold investors seeking to add a dose of stability, consistent growth, and an exceedingly attractive dividend stock to their portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie also has plenty of other golden eggs in its basket, such as Skyrizi (for moderate to severe plaque psoriasis), Rinvoq (for rheumatoid arthritis), and Imbruvica (for multiple types of blood cancer). AbbVie is a rock-solid pick for buy-and-hold investors seeking to add a dose of stability, consistent growth, and an exceedingly attractive dividend stock to their portfolio. AbbVie Pharmaceutical stock AbbVie (NYSE: ABBV) is another premium buy in the healthcare industry that can help investors snag consistent portfolio returns in the form of both share-price increases and quarterly dividends. | AbbVie Pharmaceutical stock AbbVie (NYSE: ABBV) is another premium buy in the healthcare industry that can help investors snag consistent portfolio returns in the form of both share-price increases and quarterly dividends. However, it's AbbVie's dividend that really takes the cake. AbbVie is one of a very short list of companies that have made it into the elite club of stocks known as Dividend Aristocrats. | AbbVie Pharmaceutical stock AbbVie (NYSE: ABBV) is another premium buy in the healthcare industry that can help investors snag consistent portfolio returns in the form of both share-price increases and quarterly dividends. However, it's AbbVie's dividend that really takes the cake. AbbVie is one of a very short list of companies that have made it into the elite club of stocks known as Dividend Aristocrats. | AbbVie Pharmaceutical stock AbbVie (NYSE: ABBV) is another premium buy in the healthcare industry that can help investors snag consistent portfolio returns in the form of both share-price increases and quarterly dividends. However, it's AbbVie's dividend that really takes the cake. AbbVie is one of a very short list of companies that have made it into the elite club of stocks known as Dividend Aristocrats. | 15f16c7c-0a18-44bc-b08b-b5462a390b14 |
23956.0 | 2021-08-27 00:00:00 UTC | This Warren Buffett Dividend Stock Is Still Dirt Cheap | ABBV | https://www.nasdaq.com/articles/this-warren-buffett-dividend-stock-is-still-dirt-cheap-2021-08-27 | nan | nan | Warren Buffett might not be as much of a value investor as he once was. However, he still likes to get a good bargain for the stocks added to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) holdings.
The legendary investor also seems to prefer dividend stocks -- even though Berkshire itself has never paid a dividend. Most of the stocks Berkshire owns offer dividends.
There's one dividend stock in Berkshire's portfolio that especially looks attractive right now. AbbVie (NYSE: ABBV) is a Dividend Aristocrat with 49 consecutive years of dividend increases. Its dividend yield currently stands north of 4.3%. And even better, this Buffett dividend stock is still dirt cheap.
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Buffett's bargain
Berkshire first scooped up shares of AbbVie in the third quarter of 2020. The big pharma stock traded on average at close to nine times expected earnings during the period. By comparison, Berkshire's own shares traded at a forward earnings multiple of more than 25 throughout most of the third quarter last year.
We don't know exactly when Berkshire first bought AbbVie stock during Q3 of 2020. If purchases were made at the peak price during the quarter, Berkshire is now sitting on a gain of close to 20%. However, if the transactions were completed near the low price for AbbVie during the period, Berkshire's gain is more than 40%. No matter how you look at it, Buffett found a bargain.
Even with the big gains, though, AbbVie's valuation remains attractive. The stock currently trades at 9.6 times expected earnings. The forward earnings multiple for the S&P 500 index is just under 21. Healthcare stocks in the S&P 500 trade on average at 17.6 times expected earnings. The average forward earnings multiple for pharmaceutical stocks stands at 15.
Behind AbbVie's low valuation
Why is AbbVie stock so cheap? There are two main reasons.
Most importantly, AbbVie's crown jewel will soon lose its luster. Humira has been its top-selling drug since the company was spun off from Abbott in 2013. The autoimmune disease drug has even reigned for several years as the best-selling drug in the world.
However, Humira will face biosimilar rivals in the U.S. market beginning in 2023. Its sales will almost certainly plunge. Biosimilars are already on the market in Europe. As a result, Humira's international sales have fallen from $6.25 billion in 2018 to $3.7 billion in 2020. A similar sales decline in the U.S. will be a big blow for AbbVie, since Humira generated more than 36% of its total revenue in the company's latest quarter.
The second key reason behind AbbVie's low valuation is related to the impending challenges for Humira. AbbVie believes that it can largely offset the lower sales for Humira with its other products. But the company must secure regulatory approvals for new indications for several drugs that are already on the market to achieve this goal. AbbVie faces risks that it won't be able to pick up the needed regulatory wins.
For example, the U.S. Food and Drug Administration (FDA) has delayed its approval decisions for Rinvoq in treating psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis. The drug has already been approved by the FDA for treating rheumatoid arthritis. However, AbbVie's hopes to make up for declining sales of Humira could be dashed if Rinvoq fails to gain these additional approvals.
Reasons for optimism
AbbVie President Mike Severino said in the Q2 conference call in July that the company remains confident that Rinvoq will win approvals in the three indications for which the FDA has delayed decisions. He noted that the FDA hasn't requested any additional safety data, which could be interpreted as a positive sign.
The European Commission recently approved Rinvoq in treating atopic dermatitis. The drug has already won European approvals as a treatment for rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis.
AbbVie isn't solely dependent on Rinvoq, though. The company has great expectations for another autoimmune disease drug, Skyrizi. It also looks for antipsychotic drug Vraylar to generate peak sales of close to $4 billion and for its two migraine drugs, Ubrelvy and atogepant, to each achieve peak sales of over $1 billion. Several other current blockbusters should also enjoy continued momentum, notably including blood cancer drugs Imbruvica and Venclexta.
The big drugmaker projects that it will quickly bounce back from lower overall sales in 2023 when biosimilars to Humira enter the U.S. market. Over the second half of this decade, AbbVie expects strong revenue growth. With those prospects combined with a great dividend, Buffett's investment in AbbVie seems likely to pay off in an even bigger way over the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A similar sales decline in the U.S. will be a big blow for AbbVie, since Humira generated more than 36% of its total revenue in the company's latest quarter. Reasons for optimism AbbVie President Mike Severino said in the Q2 conference call in July that the company remains confident that Rinvoq will win approvals in the three indications for which the FDA has delayed decisions. AbbVie (NYSE: ABBV) is a Dividend Aristocrat with 49 consecutive years of dividend increases. | AbbVie (NYSE: ABBV) is a Dividend Aristocrat with 49 consecutive years of dividend increases. Buffett's bargain Berkshire first scooped up shares of AbbVie in the third quarter of 2020. We don't know exactly when Berkshire first bought AbbVie stock during Q3 of 2020. | Behind AbbVie's low valuation Why is AbbVie stock so cheap? See the 10 stocks *Stock Advisor returns as of August 9, 2021 Keith Speights owns shares of AbbVie and Berkshire Hathaway (B shares). AbbVie (NYSE: ABBV) is a Dividend Aristocrat with 49 consecutive years of dividend increases. | We don't know exactly when Berkshire first bought AbbVie stock during Q3 of 2020. AbbVie (NYSE: ABBV) is a Dividend Aristocrat with 49 consecutive years of dividend increases. Buffett's bargain Berkshire first scooped up shares of AbbVie in the third quarter of 2020. | 4d7210ac-db65-41e3-85da-7256f599f00c |
23957.0 | 2021-08-26 00:00:00 UTC | 3 Pharma Stocks to Buy With Juicy Dividends | ABBV | https://www.nasdaq.com/articles/3-pharma-stocks-to-buy-with-juicy-dividends-2021-08-26 | nan | nan | There are several industries and sectors that are known for their dividends. Utilities and real estate investment trusts definitely come to mind. But so does the pharmaceutical industry. Big pharma companies have been favorites for income investors for a long time.
We asked three Motley Fool contributors to pick pharma stocks with juicy dividends to buy. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE).
Image source: Getty Images.
Everything you'd want in a dividend stock
Keith Speights (AbbVie): What do investors want in a dividend stock? Obviously, an attractive dividend yield is near the top of the list. The ability to keep the dividends flowing is a must. A strong track record of dividend increases is important. Solid growth prospects and a reasonable valuation would also be nice to have. AbbVie checks off all of these boxes.
The big drugmaker's dividend yield currently stands at nearly 4.4%. AbbVie shouldn't have any problems funding its dividend program. It generated a whopping $18.2 billion in free cash flow over the last 12 months. The company reported cash, cash equivalents, and short-term investments totaling $8.6 billion as of June 30.
There aren't many pharmaceutical companies with better track records of dividend increases than AbbVie. The company is a Dividend Aristocrat with 49 consecutive annual dividend hikes.
What about growth prospects? First, AbbVie continues to deliver robust growth. The company's revenue jumped 19.3% year over year in the second quarter of 2021. Total sales for top-selling drug Humira rose despite biosimilar competition in international markets. Several products that were picked up with AbbVie's acquisition of Allergan are contributing to growth as well.
Granted, AbbVie expects its overall revenue will decline in 2023 when biosimilars to Humira enter the U.S. market. However, that should only be a temporary issue. The company thinks it will return to growth in 2024 with robust growth throughout the rest of the decade.
This optimism stems from AbbVie's confidence in its product lineup. In particular, the company projects strong momentum for blood cancer drugs Imbruvica and Venclexta and newer autoimmune disease drugs Rinvoq and Skyrizi.
In addition to its great dividend program and solid growth prospects, AbbVie's valuation remains attractive. Shares currently trade at only 9.6 times expected earnings.
A solid dividend backed by a strong balance sheet
Prosper Junior Bakiny (Johnson & Johnson): Income-oriented investors tend to look for companies with a long history of dividend increases, solid revenue and earnings growth prospects, and the financial fortitude to survive even the toughest economic downturns. Johnson & Johnson displays all three characteristics.
First, the healthcare giant is a Dividend King, having raised its payouts for 59 years in a row. Second, Johnson & Johnson boasts a diversified business that includes its pharmaceutical, medical devices, and consumer health segments. Within its pharmaceutical division, the company develops drugs in a raft of different areas, including oncology, immunology, infectious diseases, and neuroscience.
Johnson & Johnson markets 28 products or platforms that generate more than $1 billion in sales every year. Meanwhile, the company has a rich late-stage pipeline. Thanks to brand new drugs or label expansions on existing ones, Johnson & Johnson can keep growing its revenue from its pharmaceutical unit. The company earned five regulatory approvals during the second quarter.
Within its consumer division, Johnson & Johnson's products benefit from strong brand names (think Neutrogena, Tylenol, Benadryl, Listerine, and others). Its medical devices business also looks to have a bright future, given that this entire industry will continue growing.
Third, Johnson & Johnson has a Standard & Poor's credit rating of AAA, which is the highest rating possible and is a sign of the company's financial fortitude. The drugmaker is unlikely to succumb to financial troubles and resort to slashing its dividends even amid a severe downturn. Indeed, Johnson & Johnson announced a 6.3% dividend increase in April 2020 -- as the COVID-19 pandemic was already wreaking havoc.
In its more than 100 years in business, this healthcare giant has survived more than a few economic recessions. Johnson & Johnson's current yield of 2.3% beats the S&P 500's yield of 1.3%. The company's conservative 47.7% cash payout ratio means it has more than enough room to sustain solid dividend increases.
These facts paint a clear picture: Johnson & Johnson is an excellent stock to own for dividend investors.
A dividend stock with a top-selling COVID-19 vaccine
Zhiyuan Sun (Pfizer): Not only does Pfizer have an amazing pipeline, a solid franchise of drugs on the market, and a fantastic COVID-19 vaccine, but it also pays a solid dividend with a yield of 3.1%. The company can more than sustain its rate of returning capital to shareholders with a payout ratio of 65%.
Pfizer could very well hike its dividend due to the success of its COVID-19 vaccine Comirnaty, which recently received full approval from the U.S. Food and Drug Administration. The company has shipped over 1 billion doses of Comirnaty since December 2020.
During the second quarter of 2021, Pfizer's revenue increased by a stunning 92% year over year to nearly $19 billion. At the same time, its earnings per share grew by 73% to $1.07. Due to high vaccine demand, Pfizer raised its full-year guidance to $79 billion in revenue and $4 in EPS, up from $71.5 billion in sales and $3.60 in EPS as stated in previous earnings releases.
Excluding its coronavirus vaccine, revenue from the company's core biopharma segment, consisting of oncology, internal medicine, hospital products, inflammation and immunology, and rare disease drugs, increased by 10% year over year. You can count on Pfizer to continue its path of innovation, as the company plans to invest more than $10 billion this year on research and development. On Aug. 23, Pfizer announced the $2.3 billion acquisition of Canadian biotech Trillium Therapeutics. The deal gives Pfizer two lead immune checkpoint inhibitors for treating hematological malignancies.
Overall, Pfizer stock is still very cheap at 12.2 times forward earnings. On top of all this, the company has a stock buyback program, with over $5.3 billion left to repurchase, so there's also room for capital appreciation. It is a hot dividend stock you don't want to miss.
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Keith Speights owns shares of AbbVie and Pfizer. Prosper Junior Bakiny owns shares of Johnson & Johnson. Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). Everything you'd want in a dividend stock Keith Speights (AbbVie): What do investors want in a dividend stock? AbbVie checks off all of these boxes. | See the 10 stocks *Stock Advisor returns as of August 9, 2021 Keith Speights owns shares of AbbVie and Pfizer. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). Everything you'd want in a dividend stock Keith Speights (AbbVie): What do investors want in a dividend stock? | Everything you'd want in a dividend stock Keith Speights (AbbVie): What do investors want in a dividend stock? Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). AbbVie checks off all of these boxes. | Everything you'd want in a dividend stock Keith Speights (AbbVie): What do investors want in a dividend stock? Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Pfizer (NYSE: PFE). AbbVie checks off all of these boxes. | 78153f58-c5c5-4c2f-b886-d18478f7a2c4 |
23958.0 | 2021-08-25 00:00:00 UTC | Is It Too Late to Buy Moderna Stock? | ABBV | https://www.nasdaq.com/articles/is-it-too-late-to-buy-moderna-stock-2021-08-25 | nan | nan | Some companies grow so fast for so long that it would have been impossible to overpay for shares at any point in their history. Admittedly, they are few and far between. Still, it's worth noting that truly transformational companies can always look overvalued and still be cheap. The hard part is finding them.
That's what many are betting on with shares of Moderna (NASDAQ: MRNA). The company's stock has risen 1,910% since before the pandemic thanks to one of the first authorized vaccines for COVID-19. It's already pressing forward with new drugs using its messenger RNA (mRNA) platform. Let's dig in to see whether Moderna could be one of those companies that looks perpetually overpriced while delivering life-changing gains for shareholders.
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The opportunity for mRNA
At this time last year, no country had ever approved a vaccine using mRNA. We now have two -- one fully approved by the Food and Drug Administration -- developed in less than a year. Moderna raced out of the starting blocks, designing a vaccine only 48 hours after China published the genetic sequence of the SARS-CoV-2 virus on Jan. 11, 2020. That could prove to be the starting gun in a marathon that transforms what we think of as medicine.
Theoretically, anything our bodies use proteins for -- which is just about everything -- could be substituted with mRNA. After all, in the words of Moderna President Stephen Hoge, "mRNA is the software of life." That should make traditional drug companies shudder at the potential.
At the beginning of 2020, yearly global pharmaceutical spend was estimated to be $1.27 trillion. About half of that is in the United States. Cancer drugs make up about $100 billion of that total while vaccines -- before COVID -- were less than $50 billion.
That's a huge opportunity for a technology that uses the human body to essentially manufacture the medicine it needs. For context, the best-selling drug in the world in 2020 was Abbvie's Humira, at nearly $20 billion. Johnson & Johnson is the largest drugmaker in the world, with $45.6 billion in pharmaceutical sales last year. It broke that out into 19 drugs plus unnamed contributors. In comparison, Pfizer sold $41 billion with 27 named drugs. To figure out if it's too late to buy Moderna, those numbers will be a useful comparison.
It has a lot of shots on goal
Before we do any math, it's important to acknowledge Moderna's foresight. The company has taken the approach of pushing many opportunities at once since its early days. In addition to the COVID-19 vaccine, it has 22 different programs listed in its pipeline. That includes some that could have massive payoffs.
For instance, its HIV vaccine may not be out of the lab, but Gilead's HIV drugs accounted for almost $17 billion in revenue last year. Moderna's influenza vaccine is only in phase 1 trials, but Sanofi sold about $2.9 billion worth last year. Competition will persist, but listing some of the multibillion-dollar opportunities helps narrow in on what Moderna's potential could be. Of course, much of that depends on the demand for its COVID vaccine. And no one knows what the demand for that will be beyond the next year or two.
Does it add up
Moderna's market capitalization is $159 billion. That's based on one drug on the market and a lot of potential. The company anticipates $20 billion in sales of the vaccine this year. Management already has agreements and options in place to sell about the same next year and anticipates having two to three times the production capacity. Much of that revenue is flowing into profit. It reported $4.0 billion of net income on $5.9 billion in sales. Even if it sells all of the vaccines it makes, and maintains the existing profitability, the demand is likely to wane beyond next year. Some analysts expect it could continue generating about $2 billion per year from the COVID vaccine.
As an exercise, we can map out the next few years and project some additional success with the other drug programs mentioned above.
YEAR PROJECTED ANNUAL REVENUE PROJECTED ANNUAL PROFIT
2021 $20 billion* $13 billion
2022 $30 billion $20 billion
2023 $2 billion $1 billion
2024 $3 billion $2 billion
2025 $5 billion $3 billion
2026 to 2030 $7 billion $4.5 billion
Data source: author's calculations; *Moderna guidance.
They are back-of-the-envelope estimates, but it helps lay out what a successful decade may look like financially. However, it's really anyone's guess beyond next year. Discounting those profits back to present day at a rather aggressive 8% discount rate -- and carrying forward its astoundingly good profit margins -- puts the fair value of the stock around $300. That's about 25% below where it trades now.
Moderna has achieved a scientific feat once thought impossible. And success in the future feels like a matter of when, not if. But it will have to do significantly better than the projections I've laid out to justify the current stock price. That said, if the company can extend the growth beyond a few drugs and into a second decade it could make this projection look silly. So whether it's too late to buy Moderna stock really comes down to how bright you expect its future to be and how long you plan on holding shares.
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Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool recommends Gilead Sciences and Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For context, the best-selling drug in the world in 2020 was Abbvie's Humira, at nearly $20 billion. Moderna raced out of the starting blocks, designing a vaccine only 48 hours after China published the genetic sequence of the SARS-CoV-2 virus on Jan. 11, 2020. Management already has agreements and options in place to sell about the same next year and anticipates having two to three times the production capacity. | For context, the best-selling drug in the world in 2020 was Abbvie's Humira, at nearly $20 billion. As an exercise, we can map out the next few years and project some additional success with the other drug programs mentioned above. 2021 $20 billion* $13 billion 2022 $30 billion $20 billion 2023 $2 billion $1 billion 2024 $3 billion $2 billion 2025 $5 billion $3 billion 2026 to 2030 $7 billion $4.5 billion Data source: author's calculations; *Moderna guidance. | For context, the best-selling drug in the world in 2020 was Abbvie's Humira, at nearly $20 billion. Cancer drugs make up about $100 billion of that total while vaccines -- before COVID -- were less than $50 billion. Moderna's influenza vaccine is only in phase 1 trials, but Sanofi sold about $2.9 billion worth last year. | For context, the best-selling drug in the world in 2020 was Abbvie's Humira, at nearly $20 billion. That's what many are betting on with shares of Moderna (NASDAQ: MRNA). The opportunity for mRNA At this time last year, no country had ever approved a vaccine using mRNA. | 9f7bad46-40b7-470c-b76a-19e871a26675 |
23959.0 | 2021-08-24 00:00:00 UTC | 7 S&P 500 Stocks to Buy for Growth and Value | ABBV | https://www.nasdaq.com/articles/7-sp-500-stocks-to-buy-for-growth-and-value-2021-08-24 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s nothing better than finding a great combination of growth and value in a stock. Unfortunately, it’s usually one or the other — a tradeoff depending on the situation. This tradeoff isn’t always the case though, and some S&P 500 stocks have a unique combination of both traits.
It allows investors to relish in the “big win” feeling of a growth stock along with that great satisfaction of getting a good deal.
There’s a lot of growth in tech but in many cases, not a lot of value. At least not by traditional measures. By the same token, a lot of non-tech stocks trade at a good value, but oftentimes lack growth and/or have volatile cash flows.
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As we poke around the index, we’ve whittled down a list of seven S&P 500 stocks that offer a decent combination of growth and value. Let’s have a look.
AbbVie (NYSE:ABBV)
Caesars (NASDAQ:CZR)
Apple (NASDAQ:AAPL)
Etsy (NASDAQ:ETSY)
Gap (NYSE:GPS)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG)
eBay (NASDAQ:EBAY)
S&P 500 Stocks to Buy: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
Leading off the charge is AbbVie. However, this company doesn’t just have growth and value in play, it also has yield.
Currently the stock pays out a 4.36% dividend yield. While that yield has come down over the last several quarters, that’s a good sign for those that have been long, as it means the stock has been going up.
The stock set a new 52-week high in July but has since seen a pullback. Perhaps that will act as a buying opportunity for those that want to get long. This year, analysts expect earnings of $12.64 per share. That leaves AbbVie stock trading less than 10 times earnings. By almost all accounts, a sub-10 price-to-earnings (P/E) ratio is considered dirt cheap by most investors.
On the flip side, low P/E ratios can sometimes signal a value trap. However, with estimates calling for roughly 20% earnings growth this year and 10% growth next year, AbbVie comes across as a good deal at its current price.
Caesars (CZR)
CZR) in Las Vegas" width="300" height="169">
Source: Jason Patrick Ross/Shutterstock.com
Is Caesars Entertainment the safest pick? No. Is it a bit controversial? Yes.
However, there is a rebound going on in Las Vegas and it’s hard to ignore. Admittedly, shares have undergone a tremendous rally from the March 2020 lows. So have other casino stocks. While some of its peers have fallen harder than the 25% correction Caesars has seen from its recent high, it’s due to other (and worse) situations than what Caesars finds itself in.
I like Caesars because it’s set to undergo years of rebound growth. Remember, 2021 did not start off as the boom that we’re seeing now in many parts of the economy. For the first several months, life remained quite muted.
Try finding a room in Vegas right now for the weekend. It’s not easy. While Covid-19 still presents a risk and will likely continue to present a risk going forward, it’s hard to deny the rebound we should continue to see in this part of the country.
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Caesars is forecast to lose about $1.36 a share this year, but earn about $1.25 a share next year. Further, analysts expect roughly 177% revenue growth this year and 16% growth next year. If momentum continues though, next year’s estimates seem conservative.
S&P 500 Stocks to Buy: Apple (AAPL)
AAPL) logo on an Apple store in Santa Monica, California." width="300" height="169">
Source: View Apart / Shutterstock.com
Everyone knows Apple. It’s the largest company in the world, with a market capitalization of roughly $2.5 trillion. Seemingly everyone has an iPhone in their pocket or some other Apple product.
For years, critics argued that the “law of large numbers” would eventually prevent Apple stock’s appreciation. Well that strategy didn’t pan out very well. Apple continues to crank out record results, even if it’s not getting the credit it deserves.
Its Services business has been a major catalyst. As it continues to churn out double-digit growth, this highly-profitable business is not only moving the needle when it comes to revenue, but it’s making major contributions to the bottom line.
Admittedly, Apple is just a hair off its all-time high, which may have some investors scratching their head when it comes to the “value” part of the equation. However, I find value in shares being up just 11% from the 2020 highs. That’s despite the last five earnings reports obliterating expectations, as revenue came in about $37 billion ahead of estimates (collectively over that span).
Maybe that market cap does eventually make it hard for the stock to advance. But as long as Apple continues to deliver, it’s hard to bet against the stock.
Etsy (ETSY)
Source: quietbits / Shutterstock.com
The pick for Etsy on this list may draw some complaints from the value crowd. How can a high-flying tech company be on a list of growth and value stocks?
Etsy is going through a period of volatility at the moment. The stock saw an explosive gain during the advance of the novel coronavirus. That’s as consumers turned to online retail therapy, buying things left and right from a number of different platforms.
Despite seeing years worth of growth pulled ahead into 2020, Etsy is still finding ways to grow. Further, the company is profitable, which at least some investors are likely surprised to hear.
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Estimates call for 32% revenue growth this year and another 20% next year. On the earnings front, analysts expect 11% growth in 2021 and an acceleration up to 22% growth in 2022. On an earnings valuation basis, clearly Etsy doesn’t fit the bill. But on a price-to-sales basis, Etsy trades at roughly 11 times this year’s revenue estimates. Despite a recent top- and bottom-line beat, shares remain about 20% below its 2021 highs.
S&P 500 Stocks to Buy: Gap (GPS)
Source: Shutterstock
Breaking away from tech, Gap comes up on our list of interesting stocks that have both growth and value as attractive qualities.
As we gear up for the back-to-school season, times are uncertain with Covid-19 still around. But Gap should be a beneficiary of increasing consumer spending.
Retail has been a pretty hit-and-miss sector over the years. Growing online sales have pressured this once cherished group, which is completely composed of the “haves” and the “have-nots.”
For Gap, shares trade at just 16 times this year’s earnings and 13 times next year’s estimates.
Many investors will likely take a pass on Gap, whether that’s due to the business specifically or the sector generally. But some may find it attractive, particularly after its recent 20% correction off a multi-year high.
Alphabet (GOOGL, GOOG)
Source: rvlsoft / Shutterstock.com
This one was perhaps the hardest name to ultimately include on this list. I love Alphabet and I always have. After years of watching other FAANG components outperform it, Alphabet has been the best-performing FAANG stock for quite some time.
Case in point, shares are up 80% over the last 12 months. The next-best performer in that stretch? Facebook (NASDAQ:FB), which is up 36%.
With its meteoric rise, the valuation has obviously climbed as well. Yes, Alphabet has grown, but not quite as fast as its stock price. As for market cap, it now stands at $1.9 trillion, as it knocks on the door of $2 trillion.
If it gets there, it will be just the third U.S. company to do so.
As for growth, it just keeps cranking it out. Analysts expect about 37% revenue growth this year and 16% growth next year. Shares do trade at about 28 times earnings, but given its attributes, I think that’s a reasonable price. If anything, this may be one investors buy on a nice, juicy dip.
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Keep in mind, that valuation isn’t just about earnings and revenue. It’s also about other assets. Alphabet has massive flexibility with its balance sheet, as it has roughly $136 billion in cash in its coffers. Its strength comes from its business assets too, like its self-driving unit Waymo or the two most popular websites in the world, Google.com and YouTube.com. That’s like owning Boardwalk and Park Place, respectively.
S&P 500 Stocks to Buy: eBay (EBAY)
Source: ShutterStockStudio / Shutterstock.com
Last but not least, we have an old online sales platform that many investors seem to forget about. The classic auction site known as eBay has certainly seen its fair share of ups and downs over the last couple decades.
After surviving the dot-com bust, shares exploded to an all-time high of $24.92 in December 2004, before suffering a painful drop. More than a decade later, eBay would hit a new all-time high in April 2014. Even then, it didn’t make a sustainable move above the $25 level until mid-2015.
Enough of the history lesson though, what makes eBay attractive today? Shares are quietly off the all-time high of $76.55, but trade at a relatively low valuation. Changing hands at roughly 19 times this year’s earnings expectations, many investors may view the stock as cheap. That’s with estimates calling for 13% earnings growth this year and 16% growth next year.
The downside is revenue growth, which is forecast to grow just 1.4% and 5.7% this year and next year, respectively. For a tech company, that’s not very strong. However, eBay is clearly good at making money and its bottom line is growing nicely. If investors can snag this one on a dip, it may be a nice one to hold.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 7 S&P 500 Stocks to Buy for Growth and Value appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE:ABBV) Caesars (NASDAQ:CZR) Apple (NASDAQ:AAPL) Etsy (NASDAQ:ETSY) Gap (NYSE:GPS) Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) eBay (NASDAQ:EBAY) S&P 500 Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Leading off the charge is AbbVie. That leaves AbbVie stock trading less than 10 times earnings. However, with estimates calling for roughly 20% earnings growth this year and 10% growth next year, AbbVie comes across as a good deal at its current price. | AbbVie (NYSE:ABBV) Caesars (NASDAQ:CZR) Apple (NASDAQ:AAPL) Etsy (NASDAQ:ETSY) Gap (NYSE:GPS) Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) eBay (NASDAQ:EBAY) S&P 500 Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Leading off the charge is AbbVie. However, with estimates calling for roughly 20% earnings growth this year and 10% growth next year, AbbVie comes across as a good deal at its current price. That leaves AbbVie stock trading less than 10 times earnings. | AbbVie (NYSE:ABBV) Caesars (NASDAQ:CZR) Apple (NASDAQ:AAPL) Etsy (NASDAQ:ETSY) Gap (NYSE:GPS) Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) eBay (NASDAQ:EBAY) S&P 500 Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Leading off the charge is AbbVie. That leaves AbbVie stock trading less than 10 times earnings. However, with estimates calling for roughly 20% earnings growth this year and 10% growth next year, AbbVie comes across as a good deal at its current price. | AbbVie (NYSE:ABBV) Caesars (NASDAQ:CZR) Apple (NASDAQ:AAPL) Etsy (NASDAQ:ETSY) Gap (NYSE:GPS) Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) eBay (NASDAQ:EBAY) S&P 500 Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com Leading off the charge is AbbVie. That leaves AbbVie stock trading less than 10 times earnings. However, with estimates calling for roughly 20% earnings growth this year and 10% growth next year, AbbVie comes across as a good deal at its current price. | 38425038-c1e2-404b-8af8-31a06b4af66f |
23960.0 | 2021-08-24 00:00:00 UTC | AbbVie Announces EC Approval Of RINVOQ In Treatment Of Moderate To Severe Atopic Dermatitis | ABBV | https://www.nasdaq.com/articles/abbvie-announces-ec-approval-of-rinvoq-in-treatment-of-moderate-to-severe-atopic | nan | nan | (RTTNews) - AbbVie (ABBV) said the European Commission has approved RINVOQ for the treatment of moderate to severe atopic dermatitis in adults and adolescents. The company noted that this marks the fourth EC-approved indication for RINVOQ.
RINVOQ is now approved in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland. It is currently under review by the FDA.
RINVOQ is a selective and reversible JAK inhibitor that is being studied in several immune-mediated inflammatory diseases. Phase 3 trials in rheumatoid arthritis, atopic dermatitis, psoriatic arthritis, axial spondyloarthritis, Crohn's disease, ulcerative colitis, giant cell arteritis and Takayasu arteritis are ongoing.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said the European Commission has approved RINVOQ for the treatment of moderate to severe atopic dermatitis in adults and adolescents. RINVOQ is now approved in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland. RINVOQ is a selective and reversible JAK inhibitor that is being studied in several immune-mediated inflammatory diseases. | (RTTNews) - AbbVie (ABBV) said the European Commission has approved RINVOQ for the treatment of moderate to severe atopic dermatitis in adults and adolescents. Phase 3 trials in rheumatoid arthritis, atopic dermatitis, psoriatic arthritis, axial spondyloarthritis, Crohn's disease, ulcerative colitis, giant cell arteritis and Takayasu arteritis are ongoing. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said the European Commission has approved RINVOQ for the treatment of moderate to severe atopic dermatitis in adults and adolescents. Phase 3 trials in rheumatoid arthritis, atopic dermatitis, psoriatic arthritis, axial spondyloarthritis, Crohn's disease, ulcerative colitis, giant cell arteritis and Takayasu arteritis are ongoing. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said the European Commission has approved RINVOQ for the treatment of moderate to severe atopic dermatitis in adults and adolescents. The company noted that this marks the fourth EC-approved indication for RINVOQ. RINVOQ is now approved in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland. | 18b3f591-90de-46da-b82a-30c03717f5c4 |
23961.0 | 2021-08-21 00:00:00 UTC | 4 Reasons I Just Bought Ocular Therapeutix Stock | ABBV | https://www.nasdaq.com/articles/4-reasons-i-just-bought-ocular-therapeutix-stock-2021-08-21 | nan | nan | Shares of Ocular Therapeutix (NASDAQ: OCUL) have been hammered this year despite plenty of good reasons to expect rapid growth ahead. Now, the stock looks like a bargain opportunity poised to produce big gains for your portfolio.
This company's finding new ways to deliver well-understood drugs, which isn't the most interesting corner of biomedical science at the moment. But investors should know that useful new drug delivery technology can produce exciting gains.
Image source: Getty Images.
Read on to see why I recently felt compelled to scoop up shares of this beaten-down biotech stock.
1. Improving Dextenza sales
Ocular Therapeutix's lead product, Dextenza, is an ingenious solution to a problem that affects millions of Americans who undergo eye surgery each year. It's made of an anti-inflammatory steroid called dexamethasone and an injectable hydrogel that healthcare providers slide into patients' tear ducts following eye surgery.
Instead of applying dexamethasone drops when needed, Dextenza constantly takes care of business, even when patients are sleeping or too busy to apply eye drops. In trials leading to its approval, constant administration of dexamethasone with Dextenza significantly reduced pain and inflammation compared to a placebo group in the post-surgical setting.
Independent new drug launches tend to progress slowly, but eye doctors are catching on to Dextenza fast. Second-quarter sales came in at $11.1 million, which was a whopping 647% more than the previous-year period and 65% higher than the first quarter of 2021.
2. Allergic conjunctivitis
The specialized cells in the center of your lenses are the same ones you were born with. It's just a matter of time before they begin scattering light before it can reach the retina, which is why roughly half of Americans over 75 years old have cataracts.
Dextenza's growth opportunity as a post-surgical treatment is significant, but post-surgical pain is temporary. In March, the FDA began reviewing an application that could expand Dextenza's available patient population to include people with allergic conjunctivitis, a condition diagnosed about 3 million times a year in the U.S. alone.
Dextenza's expansion to allergic conjunctivitis seems like a slam dunk. During a trial supporting the application under review, patients who received Dextenza reported itch scores that were significantly lower than the placebo group after exposure to known allergens.
Image source: Getty Images.
3. Expansion ahead
In addition to a label expansion for Dextenza, Ocular Therapeutix is rapidly developing a handful of new hydrogel-based drugs that elute drugs eye doctors are already comfortable with. For example, the company expects data from a placebo-controlled phase 2 trial with a chronic dry eye candidate treatment called OTX-CSI in the fourth quarter.
Ocular Therapeutics uses the same hydrogel for OTX-CSI as Dextenza, but it swaps out dexamethasone for cyclosporine. This is the active ingredient in Restasis, a prescription eye drop brand that generated $787 million in sales for AbbVie (NYSE: ABBV) last year.
Age-related macular degeneration (AMD) and diabetic retinopathy are leading causes of progressive vision loss. These days, anti-vascular endothelial growth factor drugs that get injected into patients' eyes to prevent the progression of these diseases are a big business. Eylea is an injectable anti-VEGF drug from Regeneron (NASDAQ: REGN) used to prevent vision loss. Sales of Eylea reached a whopping $4.5 billion in the first half of 2021.
In July, Ocular Therapeutix began injecting the eyes of AMD patients with OTX-TKI in a head-to-head phase 1 trial against Eylea. OTX-TKI is made of the company's hydrogel plus a small-molecule anti-VEGF drug from Pfizer (NYSE: PFE) called Inlyta.
Patients will receive one dose of OTX-TKI or Eylea every other month for 36 weeks. If patients who receive OTX-TKI lose visual acuity at the same rate as patients randomized to receive Eylea, this stock will rocket higher. Signs of increased efficacy compared to Eylea would send it to the moon.
4. Hard to lose
At a glance, Ocular Therapeutix's recent price of around 25 times trailing-12-month sales might not seem like much of a bargain. The company's current market cap of just $793 million, though, is just a little bit more than the amount of Restasis revenue AbbVie reported last year. In other words, this stock could more than double if just one of its several ongoing ventures succeeds.
There aren't any guarantees that OTX-CSI or any of this company's pre-commercial pipeline assets can earn approval. That said, investors who scoop up the stock at its bargain-bin price can rest easy knowing Dextenza sales in the post-surgery setting alone could be enough to drive the stock higher over the long run.
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Cory Renauer owns shares of Ocular Therapeutix. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This is the active ingredient in Restasis, a prescription eye drop brand that generated $787 million in sales for AbbVie (NYSE: ABBV) last year. The company's current market cap of just $793 million, though, is just a little bit more than the amount of Restasis revenue AbbVie reported last year. In trials leading to its approval, constant administration of dexamethasone with Dextenza significantly reduced pain and inflammation compared to a placebo group in the post-surgical setting. | This is the active ingredient in Restasis, a prescription eye drop brand that generated $787 million in sales for AbbVie (NYSE: ABBV) last year. The company's current market cap of just $793 million, though, is just a little bit more than the amount of Restasis revenue AbbVie reported last year. In trials leading to its approval, constant administration of dexamethasone with Dextenza significantly reduced pain and inflammation compared to a placebo group in the post-surgical setting. | This is the active ingredient in Restasis, a prescription eye drop brand that generated $787 million in sales for AbbVie (NYSE: ABBV) last year. The company's current market cap of just $793 million, though, is just a little bit more than the amount of Restasis revenue AbbVie reported last year. Improving Dextenza sales Ocular Therapeutix's lead product, Dextenza, is an ingenious solution to a problem that affects millions of Americans who undergo eye surgery each year. | This is the active ingredient in Restasis, a prescription eye drop brand that generated $787 million in sales for AbbVie (NYSE: ABBV) last year. The company's current market cap of just $793 million, though, is just a little bit more than the amount of Restasis revenue AbbVie reported last year. In July, Ocular Therapeutix began injecting the eyes of AMD patients with OTX-TKI in a head-to-head phase 1 trial against Eylea. | 6e74c11e-4e12-4e18-ab1c-86f94edb8fee |
23962.0 | 2021-08-19 00:00:00 UTC | Why 180 Life Sciences Stock Is Falling Today | ABBV | https://www.nasdaq.com/articles/why-180-life-sciences-stock-is-falling-today-2021-08-19 | nan | nan | What happened
Shares of 180 Life Sciences (NASDAQ: ATNF), a clinical-stage drugmaker, are under pressure. Investors aren't happy because the company has announced the second dilutive capital raise since it completed a transaction with KBLM Merger Corp IV to gain its stock market listing last year. The stock was down 26.7% as of 12:23 p.m. EDT Thursday.
So what
The special purpose acquisition company, or SPAC, that took 180 Life Sciences public raised $115 million to identify and acquire a healthcare company with potential. This probably should have been more than enough to fuel 180 Life Sciences' relatively unambitious development pipeline, but it was not.
Image source: Getty Images.
180 Life Sciences finished June with less than $2 million in cash on its balance sheet. In order to raise an estimated $15 million, the company will issue 2.5 million new shares and warrants to purchase another 2.5 million shares.
The company's latest capital raise is suspiciously close to an $11.7 million private placement in February that was even more dilutive than the latest. That's a lot of share dilution for a company that only had around 18 million shares outstanding shortly after going public last November.
Now what
At the moment, 180 Life Sciences doesn't have any drugs of its own in clinical trials. Instead, it has some new method-of-use patents regarding AbbVie's top-selling anti-inflammatory treatment, called Humira.
AbbVie's mega-blockbuster is an anti-tumor necrosis factor (anti-TNF) injection used to treat rheumatoid arthritis, psoriasis, and a handful of less common inflammatory disorders. The antibody itself lost patent protection years ago and 180 Life Sciences has been able to patent methods of using it to treat rare inflammatory disorders that AbbVie probably never bothered with. This is an interesting business plan worth keeping an eye on, but I hardly expect it to work out in the long run.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's mega-blockbuster is an anti-tumor necrosis factor (anti-TNF) injection used to treat rheumatoid arthritis, psoriasis, and a handful of less common inflammatory disorders. Instead, it has some new method-of-use patents regarding AbbVie's top-selling anti-inflammatory treatment, called Humira. The antibody itself lost patent protection years ago and 180 Life Sciences has been able to patent methods of using it to treat rare inflammatory disorders that AbbVie probably never bothered with. | Instead, it has some new method-of-use patents regarding AbbVie's top-selling anti-inflammatory treatment, called Humira. AbbVie's mega-blockbuster is an anti-tumor necrosis factor (anti-TNF) injection used to treat rheumatoid arthritis, psoriasis, and a handful of less common inflammatory disorders. The antibody itself lost patent protection years ago and 180 Life Sciences has been able to patent methods of using it to treat rare inflammatory disorders that AbbVie probably never bothered with. | Instead, it has some new method-of-use patents regarding AbbVie's top-selling anti-inflammatory treatment, called Humira. AbbVie's mega-blockbuster is an anti-tumor necrosis factor (anti-TNF) injection used to treat rheumatoid arthritis, psoriasis, and a handful of less common inflammatory disorders. The antibody itself lost patent protection years ago and 180 Life Sciences has been able to patent methods of using it to treat rare inflammatory disorders that AbbVie probably never bothered with. | The antibody itself lost patent protection years ago and 180 Life Sciences has been able to patent methods of using it to treat rare inflammatory disorders that AbbVie probably never bothered with. Instead, it has some new method-of-use patents regarding AbbVie's top-selling anti-inflammatory treatment, called Humira. AbbVie's mega-blockbuster is an anti-tumor necrosis factor (anti-TNF) injection used to treat rheumatoid arthritis, psoriasis, and a handful of less common inflammatory disorders. | df17727a-731a-4f0f-be81-52ce941812a4 |
23963.0 | 2021-08-18 00:00:00 UTC | Noteworthy ETF Inflows: VHT, ABBV, CVS, ANTM | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-vht-abbv-cvs-antm-2021-08-18 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $408.6 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 61,717,573 to 63,273,451). Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.4%, and Anthem Inc (Symbol: ANTM) is lower by about 0.8%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average:
Looking at the chart above, VHT's low point in its 52 week range is $194.51 per share, with $262.70 as the 52 week high point — that compares with a last trade of $262.10. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.4%, and Anthem Inc (Symbol: ANTM) is lower by about 0.8%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $194.51 per share, with $262.70 as the 52 week high point — that compares with a last trade of $262.10. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.4%, and Anthem Inc (Symbol: ANTM) is lower by about 0.8%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $194.51 per share, with $262.70 as the 52 week high point — that compares with a last trade of $262.10. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.4%, and Anthem Inc (Symbol: ANTM) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $408.6 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 61,717,573 to 63,273,451). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $194.51 per share, with $262.70 as the 52 week high point — that compares with a last trade of $262.10. | Among the largest underlying components of VHT, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.1%, CVS Health Corporation (Symbol: CVS) is off about 0.4%, and Anthem Inc (Symbol: ANTM) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $408.6 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 61,717,573 to 63,273,451). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $194.51 per share, with $262.70 as the 52 week high point — that compares with a last trade of $262.10. | 0ba03682-029a-4674-8591-e10dd9576547 |
23964.0 | 2021-08-18 00:00:00 UTC | Like Dividends? I Bet You'll Love These 3 Stocks | ABBV | https://www.nasdaq.com/articles/like-dividends-i-bet-youll-love-these-3-stocks-2021-08-18 | nan | nan | There's no denying growth stocks can be a lot of fun to own, not to mention rewarding. There's also no denying, however, sometimes volatile growth names aren't always the best option for everyone. Many investors prefer the stability that only value-oriented equities can offer, and some investors need to live on reliable income produced by at least part of their portfolio.
If you're one of these income-minded investors (or find yourself increasingly moving in that direction), here are three blue-chip dividend-paying stocks you should put on your watch list.
1. AbbVie
Current dividend yield: 4.5%
It's possible you're more familiar with pharmaceutical maker AbbVie's (NYSE: ABBV) flagship drug than you are with the company itself. AbbVie is the name behind arthritis and Crohn's disease drug Humira, which accounted for more than 40% of the company's 2020 revenue of $45.8 billion.
Image source: Getty Images.
Such a singularly successful drug is a double-edged sword, of course. Once the drug's patents start to expire, revenue plummets. Humira's patent protection will start to deteriorate in earnest in 2023 and progressively weaken over the course of the next several years. This looming problem has been working against the stock's price since 2018, even though we've seen the occasional burst of bullishness from it in the meantime. Investors are afraid AbbVie's dividend is in jeopardy.
The concern is understandable, but not necessarily merited. The pharmaceutical company has several dozen drug trials underway, including nearly 30 Phase 3 trials examining different configurations of about a dozen different drugs. Its Rinvoq, Skyrizi, Venclexta, and Imbruvica -- each already approved for at least one use -- are especially well represented in AbbVie's pipeline of trials looking for additional uses of these proven therapies.
It's unlikely the organization will ever be able to replace Humira with a single drug franchise. But it doesn't need to. AbbVie expects Rinvoq and Skyrizi combined to drive $15 billion worth of sales in 2025, up from just a couple billion dollars worth of annual sales now -- and that may be a conservative estimate. Venclexta and Imbruvica could be similarly explosive.
The point is, this drugmaker's preparing for life after Humira even if many investors don't see it.
2. Coca-Cola
Current dividend yield: 3%
Coca-Cola (NYSE: KO) isn't a company that needs an introduction. The brand name's been around for well over a century, and it is the world's biggest non-alcoholic beverage producer by market cap.
This size and pedigree hasn't always helped. Most of Coke's operations ran into a COVID-19-prompted logistics headwind around the middle of last year, and the company was powerless to do much about it. The worldwide shift away from sugary drinks and toward healthier options also hasn't played into Coca-Cola's strengths. It may own Dasani water and Minute Maid juices, but competition in those categories is a bit stiffer than it is within the carbonated beverage market. Astute investors will likely know that Coca-Cola's top line has been gradually shrinking for a few years now.
That latter detail, however, is by design, largely for reasons meant to help it adapt to changing consumer tastes.
It was a strategic shift that's been obscured by the noise of the pandemic, but several years ago Coca-Cola began selling bottling operations back to bottlers themselves, continuing to do so even through 2019. The company instead wished to focus more on franchising and licensing. The change reduces revenue, as the bottlers themselves become the suppliers to retailers and the food-service industry. But, in that beverage licensing is a higher-margin business than wholesaling drinks, the Coca-Cola Company was ultimately positioning itself to produce a bigger bottom line.
It worked. In spades. The company's making more than enough to easily fund the current dividend payments, with last quarter's operating profit coming in at $0.68 per share versus the current quarterly payout of only $0.42. There's lots of promise for future dividend growth under the new model, too.
3. Edison International
Current dividend yield: 4.6%
Finally, add Edison International (NYSE: EIX) to your list of dividend stocks to consider, if you're an income investor looking for a new position for your portfolio.
At first glance, Edison International doesn't look too terribly different than other names in the utility sector. And by most standards, it isn't. Its primary market is Southern California, but other than that, it delivers electricity pretty much like any other power producer. There are a couple of important details about Edison International, however, that make it a more compelling dividend option.
One of those differences is the yield. At 4.6%, the stock's currently suppressed price translates into one of the higher-yielding payers in the utility business without any greater degree of risk than other options.
The other nuanced but noticeable difference between Edison and its peers is Edison's embrace of the inevitable green, clean, renewable-driven energy future. The company's aiming for a completely carbon-neutral operation by 2045, and more than that, it's laid out a detailed plan of action to reach that goal. It's not just about smarter, cleaner power provision. Edison International's primary subsidiary, Southern California Edison, is working closely with the state to meet its long-term decarbonization goals with highly localized solutions. For example, last month the company announced plans to install 38,000 EV charging stations in southern California. In June Edison completed about 200 miles' worth of transmission lines that will carry renewables-generated electricity from the desert areas of eastern California to its more populated service areas.
These projects have proven to be more of a cost than a benefit thus far, but ultimately promise to be a more cost-effective means of providing electricity in the long run. This sets the stage for years of reliable dividend growth that not all other power producers will be able to mirror down the road as the state's goals mature into state and federal mandates.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Current dividend yield: 4.5% It's possible you're more familiar with pharmaceutical maker AbbVie's (NYSE: ABBV) flagship drug than you are with the company itself. AbbVie is the name behind arthritis and Crohn's disease drug Humira, which accounted for more than 40% of the company's 2020 revenue of $45.8 billion. Investors are afraid AbbVie's dividend is in jeopardy. | AbbVie Current dividend yield: 4.5% It's possible you're more familiar with pharmaceutical maker AbbVie's (NYSE: ABBV) flagship drug than you are with the company itself. AbbVie is the name behind arthritis and Crohn's disease drug Humira, which accounted for more than 40% of the company's 2020 revenue of $45.8 billion. Investors are afraid AbbVie's dividend is in jeopardy. | AbbVie Current dividend yield: 4.5% It's possible you're more familiar with pharmaceutical maker AbbVie's (NYSE: ABBV) flagship drug than you are with the company itself. AbbVie is the name behind arthritis and Crohn's disease drug Humira, which accounted for more than 40% of the company's 2020 revenue of $45.8 billion. Investors are afraid AbbVie's dividend is in jeopardy. | AbbVie Current dividend yield: 4.5% It's possible you're more familiar with pharmaceutical maker AbbVie's (NYSE: ABBV) flagship drug than you are with the company itself. AbbVie is the name behind arthritis and Crohn's disease drug Humira, which accounted for more than 40% of the company's 2020 revenue of $45.8 billion. Investors are afraid AbbVie's dividend is in jeopardy. | 495cf308-2646-40e7-8158-9cf52141a5ed |
23965.0 | 2021-08-17 00:00:00 UTC | Could AbbVie Stock Help You Retire a Millionaire? | ABBV | https://www.nasdaq.com/articles/could-abbvie-stock-help-you-retire-a-millionaire-2021-08-17 | nan | nan | When it comes to planning for your financial future, it pays to pack your portfolio with stocks that can keep growing even if the market is falling. Though there's no shortcut to riches, with prudent investments, you can definitely get a lot closer than you might otherwise, provided that you have enough time to let your winners compound in value.
In this vein, drugmaker AbbVie (NYSE: ABBV) might be a strong contender for the part of your portfolio that's devoted to stable, stalwart stocks. Its roster of medicines is quite profitable, and it has a handful of other projects to pave the way for revenue growth in the future. Given the company's proven ability to develop drugs and get them approved, it has a lot to offer to shareholders -- but is it enough to make your net worth into millions of dollars over time?
Image source: Getty Images.
Owning this stock will probably make you richer
There are a few ways that buying and holding AbbVie's stock will bolster your portfolio's value in the long term.
First, it pays a quarterly dividend that currently yields about 4.54%. Provided that you reinvest the dividends, that means your holdings will grow each year even if the stock itself doesn't perform well. Between now and your retirement, the compounding of dividend reinvestment could make for a substantial amount of growth.
What's more, the company has raised its quarterly dividend payment each year for nearly 50 years in a row (counting its years spent as part of Abbott Laboratories, which it was spun off from in 2013). In 2019, the payout was raised by 10.3%, and in 2020 it was raised by 10.2%. Thus, investors who purchase the stock today can expect that management is devoted to making sure the dividend will continue to rise for the foreseeable future.
ABBV Dividend data by YCharts
Then there are the returns you could get from direct appreciation of AbbVie's stock price. While there are a lot of factors that can make a stock go up, in AbbVie's case you can look forward to catalysts like drugs advancing through the clinical trials process and getting regulatory approval for sale. Over the next few years, some of the most important catalysts will come from expanding the list of approved conditions for its drugs such as Rinvoq, which is currently approved to treat an inflammatory disease called ankylosing spondylitis.
The big test will be to see whether the company can keep its revenue growing even as sales of its moneymaker rheumatoid arthritis treatment Humira -- the world's top-selling drug -- start to ebb as biosimilars start to eat into its market share. Humira's patent protection in the E.U. lapsed in 2018, and its protections in the U.S. will end in 2023.
Biosimilars are already eroding Humira's market share in the E.U., but so far that has only caused revenue growth to start decelerating. As of the second quarter, revenue from Humira grew 7.1%, reaching $4.25 billion, so there's still a bit of time before the income will actually shrink.
It isn't about to make you millions on its own
As beneficial as buying AbbVie stock could be, don't expect it to make you rich.
As a mature pharmaceutical company with a market cap of more than $200 billion, it simply won't multiply your initial investment as rapidly as a smaller business that's growing quickly.
That doesn't mean it can't grow considerably over time, but there's no way for it to explode in value overnight in the way that young biotechs or software companies frequently do. Each of AbbVie's pipeline programs represents only a small slice of its potential future revenue, so each new milestone in clinical trials won't juice the stock very much.
And there's no guarantee that the stock will even beat the market's average. Over the past five years, the total return from shares of AbbVie lagged the market, though not by very much.
^SPX data by YCharts
Especially considering the headwinds it'll face as income from Humira starts to taper over the next few years, it might be awhile before the stock outperforms. In other words, AbbVie could help you retire as a millionaire, but its contribution to that goal might not be significantly beyond that of an index fund if you're relatively close to retiring.
Nonetheless, there's nothing stopping you from getting wealthier by including AbbVie as a relatively conservative part of your diversified portfolio. And if you have a couple of decades before you plan to retire, you'll get a lot more mileage out of the company's annual dividend increases, assuming they continue.
So, while AbbVie isn't exactly a lottery ticket, it could definitely play a stable role in your long-term wealth-building strategy.
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Alex Carchidi owns shares of AbbVie and Abbott Laboratories. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While there are a lot of factors that can make a stock go up, in AbbVie's case you can look forward to catalysts like drugs advancing through the clinical trials process and getting regulatory approval for sale. Each of AbbVie's pipeline programs represents only a small slice of its potential future revenue, so each new milestone in clinical trials won't juice the stock very much. In this vein, drugmaker AbbVie (NYSE: ABBV) might be a strong contender for the part of your portfolio that's devoted to stable, stalwart stocks. | It isn't about to make you millions on its own As beneficial as buying AbbVie stock could be, don't expect it to make you rich. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Alex Carchidi owns shares of AbbVie and Abbott Laboratories. In this vein, drugmaker AbbVie (NYSE: ABBV) might be a strong contender for the part of your portfolio that's devoted to stable, stalwart stocks. | Owning this stock will probably make you richer There are a few ways that buying and holding AbbVie's stock will bolster your portfolio's value in the long term. It isn't about to make you millions on its own As beneficial as buying AbbVie stock could be, don't expect it to make you rich. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Alex Carchidi owns shares of AbbVie and Abbott Laboratories. | It isn't about to make you millions on its own As beneficial as buying AbbVie stock could be, don't expect it to make you rich. In this vein, drugmaker AbbVie (NYSE: ABBV) might be a strong contender for the part of your portfolio that's devoted to stable, stalwart stocks. Owning this stock will probably make you richer There are a few ways that buying and holding AbbVie's stock will bolster your portfolio's value in the long term. | 02ff8a7e-666e-4962-93f4-836b38d6609b |
23966.0 | 2021-08-17 00:00:00 UTC | 3 Top Biotech Stocks to Buy in August | ABBV | https://www.nasdaq.com/articles/3-top-biotech-stocks-to-buy-in-august-2021-08-17 | nan | nan | As investors, it benefits us to pay attention to trends -- particularly those massive trends that have been under way for some time and that are likely to continue.
Arguably one of the best examples is what demographers refer to as the "grey tsunami," which is a term for the large wave of baby boomers in the U.S. who have reached the age of at least 65. The U.S. Census Bureau points out that by 2030, the 73 million living baby boomers as of the 2020 Census will all be 65-plus years of age.
Of course, the older people are, the more they typically require healthcare interventions such as medications and surgeries. These demographic developments therefore matter very much to healthcare companies such as AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Viatris, (NASDAQ: VTRS), all of which I believe are reasonably valued picks for August.
Image source: Getty Images.
1. AbbVie
Pharma stock AbbVie has been working very diligently over the past few years to develop its next blockbuster drugs that will offset its loss of exclusivity for the top-selling drug in the world, immunology wonder drug Humira. (Humira lost exclusivity in the EU in 2018 and is set to lose exclusivity in the U.S. in 2023.)
To replace this revenue juggernaut, AbbVie is turning primarily to from its largest segment, which is immunology. The company's immunology revenue through the first half of this year (44.1% of total net revenue) has increased 14% from the same period last year, to $11.86 billion from $10.41 billion.
Approximately a quarter (27.1%) of that $1.46 billion in additional revenue was due to continued growth in Humira's U.S. net sales. But the other three-quarters (72.9%) was derived from increased revenue of AbbVie's other two immunology drugs, Skyrizi and Rinvoq.
The share of the latter two blockbusters' immunology segment revenue doubled from 8.3% in H1 2020 to 16.3% in H1 2021. According to Vice Chairman Mike Severino, AbbVie remains on track to submit regulatory applications to the U.S. Food and Drug Administration (FDA) later this year for Rinvoq in ulcerative colitis and Skyrizi in Crohn's disease. Therefore, the trend of the two next-gen immunology drugs replacing Humira's revenue should continue.
Despite AbbVie's promising fundamentals, at just 3.8 times its trailing-12-month sales, the company is trading below its median historical price-to-sales ratio of 4.1 -- suggesting it's worth a look for value investors. AbbVie also offers a safe 4.6% yield for income investors, well above the S&P 500's current average of just 1.3%.
2. AstraZeneca
Fresh off the completion of its $39 billion acquisition of Alexion Pharmaceuticals last month, AstraZeneca offers investors a means of betting on the growing orphan drug market.
In buying Alexion, AstraZeneca was able to bolster its existing orphan drug portfolio, which consisted of non-small cell lung cancer drugs Tagrisso and Imfinzi and pancreatic cancer drug Lynparza. Combined, these three generated $8.15 billion in total 2020 sales.
Alexion Pharmaceuticals will contribute two blockbuster drugs (Soliris and Ultomiris) to AstraZeneca's drug lineup, as well as Strensiq, a treatment for a rare genetic disorder called hypophosphatasia. Collectively, these accounted for $5.87 billion in revenue last year. AstraZeneca has noted that only 5% of the 7,000-plus known rare diseases currently have approved treatments from the FDA, meaning there are tremendous unmet needs for those patients.
The Alexion acquisition's help in positioning AstraZeneca as a leader in the orphan drug market is the primary reason analysts are forecasting that the company will grow its earnings by 19% annually over the next five years. Currently, the company is trading at less than 17 times this year's anticipated earnings per share of $3.33. AstraZeneca's price-to-earnings growth or PEG ratio works out to 0.9. Simply put, AstraZeneca provides investors with growth at a reasonable price over at least the next several years. The stock also offers a market-beating yield of 2.5%.
3. Viatris
With a growing number of baby boomers requiring expensive prescriptions, it is in the best interests of patients, insurance companies, and government entities alike to encourage the development of safe but cheaper generic and biosimilar medications. Research firm Research and Markets anticipates that the U.S. generic drug industry will grow 5.7% annually from $171.8 billion in 2020 revenue to $239.5 billion by 2026.
Few, if any, companies are better positioned to take advantage of this growth opportunity than generic and biosimilar drug maker Viatris, which was spun off from Pfizer's Upjohn business to combine with Mylan last November.
At just 4 times analysts' average estimate of $3.53 in earnings per share (EPS) for this year, investors would be forgiven for assuming that Viatris is a value trap falling apart fundamentally.And it's true that the company's revenue will remain essentially flat in the near term, with analysts forecasting $17.59 billion in revenue this year and $17.43 billion next year; this is because the launches of new biosimilar drugs such as insulin drug Semglee in the near future are expected to be offset by intense competition for drugs in Viatris' largest product category, which is Brands (60% of its first-half sales).
That said, thanks to Viatris' expected cost synergies of $500 million this year and $1 billion by 2023, its EPS is actually expected to rise 4% to $3.67 next year despite an uninspiring top line. Viatris offers investors an annualized dividend per share of $0.44, or a 2.9% yield. This is more than covered by its EPS, even as the company seeks to repay $6.5 billion in debt through 2023.
Overall, Viatris offers investors a company with relatively stable operating fundamentals and a favorable long-term industry outlook at a cheap valuation.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to Vice Chairman Mike Severino, AbbVie remains on track to submit regulatory applications to the U.S. Food and Drug Administration (FDA) later this year for Rinvoq in ulcerative colitis and Skyrizi in Crohn's disease. These demographic developments therefore matter very much to healthcare companies such as AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Viatris, (NASDAQ: VTRS), all of which I believe are reasonably valued picks for August. AbbVie Pharma stock AbbVie has been working very diligently over the past few years to develop its next blockbuster drugs that will offset its loss of exclusivity for the top-selling drug in the world, immunology wonder drug Humira. | These demographic developments therefore matter very much to healthcare companies such as AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Viatris, (NASDAQ: VTRS), all of which I believe are reasonably valued picks for August. AbbVie Pharma stock AbbVie has been working very diligently over the past few years to develop its next blockbuster drugs that will offset its loss of exclusivity for the top-selling drug in the world, immunology wonder drug Humira. To replace this revenue juggernaut, AbbVie is turning primarily to from its largest segment, which is immunology. | AbbVie Pharma stock AbbVie has been working very diligently over the past few years to develop its next blockbuster drugs that will offset its loss of exclusivity for the top-selling drug in the world, immunology wonder drug Humira. These demographic developments therefore matter very much to healthcare companies such as AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Viatris, (NASDAQ: VTRS), all of which I believe are reasonably valued picks for August. To replace this revenue juggernaut, AbbVie is turning primarily to from its largest segment, which is immunology. | AbbVie Pharma stock AbbVie has been working very diligently over the past few years to develop its next blockbuster drugs that will offset its loss of exclusivity for the top-selling drug in the world, immunology wonder drug Humira. These demographic developments therefore matter very much to healthcare companies such as AbbVie (NYSE: ABBV), AstraZeneca (NASDAQ: AZN), and Viatris, (NASDAQ: VTRS), all of which I believe are reasonably valued picks for August. To replace this revenue juggernaut, AbbVie is turning primarily to from its largest segment, which is immunology. | a7d3974a-9fe6-4b75-a084-2b07ca37917d |
23967.0 | 2021-08-16 00:00:00 UTC | Buffett's Berkshire pares drug holdings, sheds Axalta, Biogen | ABBV | https://www.nasdaq.com/articles/buffetts-berkshire-pares-drug-holdings-sheds-axalta-biogen-2021-08-16 | nan | nan | By Jonathan Stempel
Aug 16 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it trimmed or eliminated its stakes in several pharmaceutical companies, and reported a small new stake in a Merck & Co MRK.N spinoff, Organon & Co OGN.N.
In the second quarter, Berkshire said it exited a $180 million stake in Biogen Inc BIIB.O and reduced investments in Abbvie Inc ABBV.N, Bristol-Myers Squibb Co BMY.N and Merck.
It also shed a $411 million stake in paint maker Axalta Coating Systems Ltd AXTA.N, a Berkshire holding since 2015.
The changes were disclosed in a regulatory filing detailing Berkshire's U.S.-listed holdings as of June 30.
Berkshire has been a net seller of stocks in 2021, including in the second quarter when it sold $1.1 billion more stocks than it bought.
That suggests Buffett and his investment managers Todd Combs and Ted Weschler remain wary of valuations as stock prices regularly set new highs.
The Standard & Poor's .SPX has doubled from its March 2020 trough early in the COVID-19 pandemic.
Berkshire has instead bought back about $14.3 billion of its own stock between January and late July though its share price also set records, and now sits just 2% below its May 7 peak.
The Omaha, Nebraska-based conglomerate ended June with $144.1 billion of cash and equivalents. Berkshire also owns dozens of businesses including the BNSF railroad, Geico auto insurance and Dairy Queen ice cream.
Organon specializes in contraception and other women's health products, and has dozens of brands in other fields.
Berkshire reported a $46.9 million Organon stake as of June 30.
Its largest investments on that date were $124.3 billion in Apple Inc AAPL.O and $42.6 billion in Bank of America Corp BAC.N.
In Monday's filing, Berkshire also reported lowered stakes in Chevron Corp CVX.N, General Motors Co GM.N, media company Liberty Global Plc LBTYA.O, insurance broker Marsh & McLennan Cos MMC.N and US Bancorp USB.N.
It reported increased stakes in supermarket chain Kroger Co KR.N, home furnishings chain RH RH.N and Marsh rival Aon Plc AON.N, which under regulatory pressure called off a $30 billion merger with Willis Towers Watson Plc last month.
(Reporting by Jonathan Stempel in New York, Editing by Rosalba O'Brien and Richard Pullin)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the second quarter, Berkshire said it exited a $180 million stake in Biogen Inc BIIB.O and reduced investments in Abbvie Inc ABBV.N, Bristol-Myers Squibb Co BMY.N and Merck. That suggests Buffett and his investment managers Todd Combs and Ted Weschler remain wary of valuations as stock prices regularly set new highs. Berkshire has instead bought back about $14.3 billion of its own stock between January and late July though its share price also set records, and now sits just 2% below its May 7 peak. | In the second quarter, Berkshire said it exited a $180 million stake in Biogen Inc BIIB.O and reduced investments in Abbvie Inc ABBV.N, Bristol-Myers Squibb Co BMY.N and Merck. By Jonathan Stempel Aug 16 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it trimmed or eliminated its stakes in several pharmaceutical companies, and reported a small new stake in a Merck & Co MRK.N spinoff, Organon & Co OGN.N. Berkshire reported a $46.9 million Organon stake as of June 30. | In the second quarter, Berkshire said it exited a $180 million stake in Biogen Inc BIIB.O and reduced investments in Abbvie Inc ABBV.N, Bristol-Myers Squibb Co BMY.N and Merck. By Jonathan Stempel Aug 16 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it trimmed or eliminated its stakes in several pharmaceutical companies, and reported a small new stake in a Merck & Co MRK.N spinoff, Organon & Co OGN.N. In Monday's filing, Berkshire also reported lowered stakes in Chevron Corp CVX.N, General Motors Co GM.N, media company Liberty Global Plc LBTYA.O, insurance broker Marsh & McLennan Cos MMC.N and US Bancorp USB.N. | In the second quarter, Berkshire said it exited a $180 million stake in Biogen Inc BIIB.O and reduced investments in Abbvie Inc ABBV.N, Bristol-Myers Squibb Co BMY.N and Merck. By Jonathan Stempel Aug 16 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it trimmed or eliminated its stakes in several pharmaceutical companies, and reported a small new stake in a Merck & Co MRK.N spinoff, Organon & Co OGN.N. Berkshire has instead bought back about $14.3 billion of its own stock between January and late July though its share price also set records, and now sits just 2% below its May 7 peak. | 1159e9d9-4451-4efa-9643-499bd676c387 |
23968.0 | 2021-08-13 00:00:00 UTC | What Rinvoq's Positive News Means for AbbVie | ABBV | https://www.nasdaq.com/articles/what-rinvoqs-positive-news-means-for-abbvie-2021-08-13 | nan | nan | On Aug. 4, pharmaceutical giant AbbVie (NYSE: ABBV) reported encouraging results from a phase 3b study of adults with a chronic skin disease known as moderate to severe atopic dermatitis or eczema.
The study pitted AbbVie's JAK inhibitor Rinvoq against Dupixent, a joint effort between Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). The synthetic small-molecule drugs known as JAK inhibitors have come under increased scrutiny lately.
We'll take a look at the results of the study, the challenges facing Rinvoq, and its potential in the atopic dermatitis market if or when the drug is cleared by regulatory agencies to determine how all this will affect AbbVie and its investors.
Image source: Getty Images.
Rinvoq beats the industry leader in a late-stage head-to-head study
Rinvoq achieved superiority compared to Dupixent for the trial's primary endpoint, meaning the former drug reported a higher number of patients with at least a 75% improvement in the Eczema Area and Severity Index (EASI 75) at week 16, according to AbbVie. Patients receiving 30 mg daily of Rinvoq achieved EASI 75 at a 71% rate at week 16, compared with just 61% of patients who received 300 mg of Dupixent every other week. Better yet, 28% and 61%, respectively, of those receiving Rinvoq achieved clear skin (EASI 100) or almost clear skin (EASI 90) at 16 weeks, compared with 8% and 39%, respectively, for those receiving Dupixent.
AbbVie's vice chairman and president, Mike Severino, indicated in his opening remarks during AbbVie's Q2 2021 earnings call that he believes Rinvoq will be approved for the moderate to severe atopic dermatitis indication in the European Union this month. If and when that happens, AbbVie's greater efficacy could translate into more patients being prescribed the drug over Dupixent.
And that could mean some serious revenue for AbbVie, especially considering that Dupixent was the top-selling atopic dermatitis drug in the world in 2020, generating $8.1 billion in revenue for Sanofi and Regeneron to split. Dupixent also has indications for asthma and chronic rhinosinusitis with nasal polyps, which is in part responsible for its sales.
Although more patients receiving Rinvoq reported serious adverse events during the study than did those receiving Dupixent (2.9% versus 1.2%), AbbVie noted that Rinvoq's safety profile was consistent with observations in previous studies. This means that Rinvoq hasn't turned up any new risks to patients as studies progressed into later stages.
The AAFA estimates that 40% of atopic dermatitis patients in the U.S. suffer from moderate to severe cases, which often result in significant quality-of-life limitations. Even if Rinvoq offers a higher risk of serious adverse events, patients and their doctors may choose it over Dupixent -- the prospect of achieving clear or almost clear skin at a much greater rate with Rinvoq could be seen as clinically worth the risk.
Rinvoq will need to shed the JAK inhibitor-class perception
The major cloud currently hanging over Rinvoq is the increased scrutiny faced by the JAK inhibitor class as a whole. After Pfizer's (NYSE: PFE) post-marketing study of JAK inhibitor Xeljanz (used to treat arthritis and other conditions) discovered serious heart side effects and cancer earlier this year, the U.S. Food and Drug Administration decided to delay decisions on the entire JAK inhibitor drug class for the time being.
Whether Rinvoq's efficacy will be able to overtake fears of major adverse cardiac events and cancer remains to be seen, but Piper Sandler analyst Christopher Raymond noted it is unlikely that "Rinvoq would be painted with the same brush as Xeljanz." This is because the respective rate of cardiovascular and cancer events for Rinvoq is just 0.4 and 0.8 events for every 100 patient years, per Fierce Pharma. For context, the rate of cardiovascular and cancer events for Xeljanz is considerably higher at 0.98 and 1.13, respectively. Based on this evidence, all indications seem to point to Rinvoq being a safer JAK inhibitor than Xeljanz.
An atopic dermatitis indication could be a blockbuster
Provided that Rinvoq is able to secure regulatory approvals for a moderate to severe atopic dermatitis indication, there is quite a bit of potential for the drug to become a blockbuster this decade. Analysts at research firm Market Data Forecast anticipate that the global atopic dermatitis market will grow by 13.1% annually, from $11.8 billion in sales in 2021 to $21.8 billion by 2026.
Assuming that 40% of atopic dermatitis cases globally are moderate to severe, AbbVie's potential addressable market would grow from $4.7 billion in 2021 to $8.7 billion by 2026.If we assume it can achieve an 8% market share in moderate to severe atopic dermatitis (Dupixent has been able to embed itself firmly in the market, and other companies will likely soon be launching treatments), Rinvoq could be bringing in about $700 million in revenue for this indication by 2026 -- a nice addition to AbbVie's overall revenue, which is projected to hit $55.9 billion in 2021.
Plenty of irons in the fire
Rinvoq isn't the only drug in late-stage clinical trials for which AbbVie expects approvals in the near future. Apart from Rinvoq's phase 3 clinical trials for Crohn's disease and ulcerative colitis, AbbVie and Boehringer Ingelheim's immunology drug Skyrizi, which is not a JAK inhibitor, awaits regulatory approvals for Crohn's disease and psoriatic arthritis next year.
Skyrizi's only approved indication to date, for plaque psoriasis (for which it has 34% patient share), has helped the drug to generate $1.25 billion in the first half of this year alone. Adding possible Crohn's disease and psoriatic arthritis indications by next year would give Skyrizi access to two more multibillion-dollar drug markets, which would undoubtedly add hundreds of millions in annualized revenue in short order for the company.
In the oncology segment, AbbVie believes Venclexta will be approved for myelodysplastic syndrome (MDS) next year. AbbVie also believes its combination of Venclexta with Imbruvica (the latter of which was developed with Johnson & Johnson's (NYSE: JNJ) Janssen Pharmaceuticals) will snag regulatory approvals for the treatment of relapsed or refractory mantle cell lymphoma (R/R MCL) and Stage 1 chronic lymphocytic leukemia (1L CLL) by next year.
Healthcare investors who would like to bet on the efficacy of JAK inibitors -- or who just want a reliable performer for their portfolios -- may find AbbVie a promising prospect today. At just 10.3 times its trailing-12-month free cash flow, AbbVie is trading well below its median historical price to FCF ratio of 13.6, suggesting the company is attractively valued based on its stable operating fundamentals.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Aug. 4, pharmaceutical giant AbbVie (NYSE: ABBV) reported encouraging results from a phase 3b study of adults with a chronic skin disease known as moderate to severe atopic dermatitis or eczema. At just 10.3 times its trailing-12-month free cash flow, AbbVie is trading well below its median historical price to FCF ratio of 13.6, suggesting the company is attractively valued based on its stable operating fundamentals. The study pitted AbbVie's JAK inhibitor Rinvoq against Dupixent, a joint effort between Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). | Assuming that 40% of atopic dermatitis cases globally are moderate to severe, AbbVie's potential addressable market would grow from $4.7 billion in 2021 to $8.7 billion by 2026.If we assume it can achieve an 8% market share in moderate to severe atopic dermatitis (Dupixent has been able to embed itself firmly in the market, and other companies will likely soon be launching treatments), Rinvoq could be bringing in about $700 million in revenue for this indication by 2026 -- a nice addition to AbbVie's overall revenue, which is projected to hit $55.9 billion in 2021. On Aug. 4, pharmaceutical giant AbbVie (NYSE: ABBV) reported encouraging results from a phase 3b study of adults with a chronic skin disease known as moderate to severe atopic dermatitis or eczema. The study pitted AbbVie's JAK inhibitor Rinvoq against Dupixent, a joint effort between Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). | Rinvoq beats the industry leader in a late-stage head-to-head study Rinvoq achieved superiority compared to Dupixent for the trial's primary endpoint, meaning the former drug reported a higher number of patients with at least a 75% improvement in the Eczema Area and Severity Index (EASI 75) at week 16, according to AbbVie. Although more patients receiving Rinvoq reported serious adverse events during the study than did those receiving Dupixent (2.9% versus 1.2%), AbbVie noted that Rinvoq's safety profile was consistent with observations in previous studies. Assuming that 40% of atopic dermatitis cases globally are moderate to severe, AbbVie's potential addressable market would grow from $4.7 billion in 2021 to $8.7 billion by 2026.If we assume it can achieve an 8% market share in moderate to severe atopic dermatitis (Dupixent has been able to embed itself firmly in the market, and other companies will likely soon be launching treatments), Rinvoq could be bringing in about $700 million in revenue for this indication by 2026 -- a nice addition to AbbVie's overall revenue, which is projected to hit $55.9 billion in 2021. | On Aug. 4, pharmaceutical giant AbbVie (NYSE: ABBV) reported encouraging results from a phase 3b study of adults with a chronic skin disease known as moderate to severe atopic dermatitis or eczema. Assuming that 40% of atopic dermatitis cases globally are moderate to severe, AbbVie's potential addressable market would grow from $4.7 billion in 2021 to $8.7 billion by 2026.If we assume it can achieve an 8% market share in moderate to severe atopic dermatitis (Dupixent has been able to embed itself firmly in the market, and other companies will likely soon be launching treatments), Rinvoq could be bringing in about $700 million in revenue for this indication by 2026 -- a nice addition to AbbVie's overall revenue, which is projected to hit $55.9 billion in 2021. The study pitted AbbVie's JAK inhibitor Rinvoq against Dupixent, a joint effort between Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN). | 18e2c982-dbf4-44cb-a8fa-0c28bc2c5c61 |
23969.0 | 2021-08-12 00:00:00 UTC | Best Biotech Stocks To Watch In 2021? 4 To Know | ABBV | https://www.nasdaq.com/articles/best-biotech-stocks-to-watch-in-2021-4-to-know-2021-08-12 | nan | nan | Do You Have These Top Biotech Stocks On Your Radar Today?
With the global pandemic raging on, biotech stocks have and continue to take center stage in the stock market today. This would be the case since Pfizer’s (NYSE: PFE) and BioNTech’s (NASDAQ: BNTX) initial coronavirus vaccine breakthrough late last year. Not only is the importance of the industry being discussed daily but the general public is learning more about the internal processes as well. As a result, new and seasoned investors alike could be seeing value among biotech stocks more than before now.
Overall, as the delta variant of the coronavirus continues to wreak havoc across the globe, these trends could persist. Sure, companies such as Moderna (NASDAQ: MRNA) are actively looking for new means of combating the virus. This would be where additional booster shots come into play. Aside from that, the biotech industry remains hard at work researching treatments for countless other deadly diseases. Just last week, BeyondSpring (NASDAQ: BYSI) revealed positive topline results from trials of its Non-Small Cell Lung Cancer treatment. Since then, BYSI stock has skyrocketed by over 140%. In the case that all this has you keen on the sector, here are four top biotech stocks to watch in the stock market now.
Best Biotech Stocks To Buy [Or Avoid] Now
Crispr Therapeutics (NASDAQ: CRSP)
Cassava Sciences Inc. (NASDAQ: SAVA)
AbbVie Inc. (NYSE: ABBV)
C4 Therapeutics Inc. (NASDAQ: CCCC)
CRISPR Therapeutics AG
CRISPR Therapeutics is a biotech company with headquarters in Zug, Switzerland. It is a leading gene-editing company that is focused on developing transformative gene-based medicines for serious diseases using its proprietary CRISPR/Cas9 platform. The platform will allow the company to make precise and directed changes to genomic DNA. With that, the company has established a portfolio of therapeutic programs across a broad range of disease areas. This includes oncology, regenerative medicine, and rare diseases. CRSP stock currently trades at $134.45 as of 2:16 p.m. ET and is up by over 45% in the past year.
In late July, the CRISPR provided a business update for its pipelines and reported its second-quarter financials. Among the highlights, the company received Orphan Drug Designation (ODD) for Phase 1 clinical trial of its CTX130 candidate for the treatment of T-cell lymphoma. CTX130 is an investigational therapy that targets a cluster of differentiation 70, or CD70, an antigen expressed on various solid tumors and hematologic malignancies.
The company also ended the quarter with $2.59 billion in cash, cash equivalents, and marketable securities. The company also reported total collaboration revenue was $900.2 million for the quarter, primarily consisting of the $900 million upfront payment from Vertex Pharmaceuticals. All things considered, will you watch CRSP stock?
Source: TD Ameritrade TOS
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Cassava Sciences Inc.
Cassava Sciences is a clinical-stage biopharma company that discovers and develops innovations for chronic, neurodegenerative conditions. In essence, the company combines state-of-the-art technology with new insights in neurobiology to develop novel solutions for Alzheimer’s disease. SAVA stock currently trades at $123.99 as of 2:19 p.m. ET and is up by a whopping 1,645% year-to-date. On August 3, 2021, the company reported its second-quarter financials.
Firstly, Cassava reported that it ended the quarter with $278.3 million in cash and has no debt. Net cash used for operations for the full year 2021 is expected to be approximately $20 to $25 million. This is driven by higher headcount and personnel expenses and manufacturing costs around large-scale drug supply.
On July 29, 2021, the company also announced that its Simufilam drug significantly improves cognition in patients with Alzheimer’s in an interim analysis of an open-label study at 9 months. “We are very pleased with the overall consistency of data,” said Remi Barbier, President & CEO. “Simufilam improved cognition, biomarkers, and behavior, a triple-win for study participants. These clinical data combined with a clean safety profile and easy oral administration suggest highly encouraging and durable treatment effects for people living with Alzheimer’s disease.” With that being said, will you consider adding SAVA stock to your watchlist?
Source: TD Ameritrade TOS
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AbbVie Inc.
AbbVie is a biopharmaceutical company that is based in Illinois. The company develops innovative medicines to solve serious health issues today. Its key therapeutic areas include immunology, oncology, neuroscience, and virology for instance. Furthermore, it boasts a large pipeline of drugs and therapies. Notably, this includes treatments for ulcerative colitis and rheumatoid arthritis. ABBV stock currently trades at $115.66 as of 2:26 p.m. ET.
On July 30, 2021, the company announced a strong second quarter. It delivered net revenue of $13.96 billion, an increase of 33.9% year-over-year. A chunk of this revenue came from its immunology portfolio, at $6.12 billion, an increase of 15.1% compared to a year earlier. The company also reported diluted earnings per share of $0.42 for the quarter. With that in mind, do you think ABBV stock is a top biotech stock to watch right now?
Source: TD Ameritrade TOS
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C4 Therapeutics Inc.
Last but not least, we will be taking a look at C4 Therapeutics. In brief, the company specializes in researching small-molecule drugs that “selectively destroy disease-causing proteins via degradation”. C4 achieves this via the innate mechanisms within human cells. According to the company, this means of treatment provides several key advantages over conventional treatments today. This includes the potential to treat a wider array of diseases, higher potency, and less undesired side effects. As it stands, CCCC stock currently trades at $39.13 as of 2:27 p.m. ET after gaining by over 8%.
Notably, CCCC stock appears to be benefitting from the company’s latest announcement. Yesterday, C4 revealed that the FDA has granted ODD to its multiple myeloma treatment. In detail, an ODD from the FDA would benefit C4’s treatment in several ways. This mainly includes financial incentives and up to seven years of market exclusivity after receiving U.S. regulatory approval.
Also, this would be a win for C4 on the operational front. According to chief medical officer Adam Crystal, the company remains on course to advance its Phase 1/2 trials. After considering all of this, will you be adding CCCC stock to your portfolio?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Biotech Stocks To Buy [Or Avoid] Now Crispr Therapeutics (NASDAQ: CRSP) Cassava Sciences Inc. (NASDAQ: SAVA) AbbVie Inc. (NYSE: ABBV) C4 Therapeutics Inc. (NASDAQ: CCCC) CRISPR Therapeutics AG CRISPR Therapeutics is a biotech company with headquarters in Zug, Switzerland. 4 E-Commerce Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that is based in Illinois. ABBV stock currently trades at $115.66 as of 2:26 p.m. | Best Biotech Stocks To Buy [Or Avoid] Now Crispr Therapeutics (NASDAQ: CRSP) Cassava Sciences Inc. (NASDAQ: SAVA) AbbVie Inc. (NYSE: ABBV) C4 Therapeutics Inc. (NASDAQ: CCCC) CRISPR Therapeutics AG CRISPR Therapeutics is a biotech company with headquarters in Zug, Switzerland. 4 E-Commerce Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that is based in Illinois. ABBV stock currently trades at $115.66 as of 2:26 p.m. | Best Biotech Stocks To Buy [Or Avoid] Now Crispr Therapeutics (NASDAQ: CRSP) Cassava Sciences Inc. (NASDAQ: SAVA) AbbVie Inc. (NYSE: ABBV) C4 Therapeutics Inc. (NASDAQ: CCCC) CRISPR Therapeutics AG CRISPR Therapeutics is a biotech company with headquarters in Zug, Switzerland. 4 E-Commerce Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that is based in Illinois. ABBV stock currently trades at $115.66 as of 2:26 p.m. | Best Biotech Stocks To Buy [Or Avoid] Now Crispr Therapeutics (NASDAQ: CRSP) Cassava Sciences Inc. (NASDAQ: SAVA) AbbVie Inc. (NYSE: ABBV) C4 Therapeutics Inc. (NASDAQ: CCCC) CRISPR Therapeutics AG CRISPR Therapeutics is a biotech company with headquarters in Zug, Switzerland. 4 E-Commerce Stocks To Know AbbVie Inc. AbbVie is a biopharmaceutical company that is based in Illinois. ABBV stock currently trades at $115.66 as of 2:26 p.m. | 2aa1d773-e285-4ca9-8112-781880aaa3b0 |
23970.0 | 2021-08-11 00:00:00 UTC | After Hours Most Active for Aug 11, 2021 : CLOV, HBAN, CVE, QQQ, ACWI, CLF, MDLZ, KBWB, MTG, MFC, ABBV, LXP | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-for-aug-11-2021-%3A-clov-hban-cve-qqq-acwi-clf-mdlz-kbwb-mtg-mfc | nan | nan | The NASDAQ 100 After Hours Indicator is down -6.14 to 15,021.62. The total After hours volume is currently 74,890,420 shares traded.
The following are the most active stocks for the after hours session:
Clover Health Investments, Corp. (CLOV) is +0.57 at $8.70, with 6,577,492 shares traded. CLOV's current last sale is 87% of the target price of $10.
Huntington Bancshares Incorporated (HBAN) is -0.05 at $15.19, with 2,685,197 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $0.38. As reported by Zacks, the current mean recommendation for HBAN is in the "buy range".
Cenovus Energy Inc (CVE) is unchanged at $8.38, with 2,671,325 shares traded. As reported by Zacks, the current mean recommendation for CVE is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.5754 at $366.79, with 2,312,146 shares traded. This represents a 41.01% increase from its 52 Week Low.
iShares MSCI ACWI Index Fund (ACWI) is unchanged at $103.45, with 2,300,000 shares traded., following a 52-week high recorded in today's regular session.
Cleveland-Cliffs Inc. (CLF) is -0.05 at $25.70, with 2,072,584 shares traded. As reported by Zacks, the current mean recommendation for CLF is in the "buy range".
Mondelez International, Inc. (MDLZ) is -0.06 at $62.41, with 2,058,121 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $0.81. As reported by Zacks, the current mean recommendation for MDLZ is in the "buy range".
Invesco KBW Bank ETF (KBWB) is -0.208 at $67.49, with 2,000,000 shares traded. This represents a 90.76% increase from its 52 Week Low.
MGIC Investment Corporation (MTG) is unchanged at $14.76, with 1,723,056 shares traded. As reported by Zacks, the current mean recommendation for MTG is in the "buy range".
Manulife Financial Corp (MFC) is -0.0082 at $20.39, with 1,660,847 shares traded. MFC's current last sale is 91.73% of the target price of $22.23.
AbbVie Inc. (ABBV) is +0.09 at $113.81, with 1,594,062 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $3.06. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range".
Lexington Realty Trust (LXP) is unchanged at $13.27, with 1,332,996 shares traded. LXP's current last sale is 106.16% of the target price of $12.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV) is +0.09 at $113.81, with 1,594,062 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. | AbbVie Inc. (ABBV) is +0.09 at $113.81, with 1,594,062 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. | AbbVie Inc. (ABBV) is +0.09 at $113.81, with 1,594,062 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. | AbbVie Inc. (ABBV) is +0.09 at $113.81, with 1,594,062 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". The NASDAQ 100 After Hours Indicator is down -6.14 to 15,021.62. | 7b8fdf90-4140-4a68-a45d-35c9d96d91ae |
23971.0 | 2021-08-11 00:00:00 UTC | Forget Robinhood, These 3 Healthcare Stocks Are Better Buys | ABBV | https://www.nasdaq.com/articles/forget-robinhood-these-3-healthcare-stocks-are-better-buys-2021-08-11 | nan | nan | Mostfinancial newsisn't created with the purpose of producing good investment decisions. It is designed to provide information in an engaging way while creating a constant sense of needing to act. This year offers plenty of examples. The latest is the recent initial public offering of Robinhood Markets (NASDAQ: HOOD), the online brokerage that positions itself as the platform of the people. Is it a greedy company manipulating inexperienced investors or the future of finance for the internet generation? There are strong opinions on both sides of the argument.
But there is no penalty for skipping the debate. As investors, we can simply ignore the complicated stocks and focus on companies that are easier to understand. To that end, three Fool contributors were asked to highlight one healthcare company they think is a better buy than Robinhood. They chose Inari Medical (NASDAQ: NARI), AbbVie (NYSE: ABBV), and Illumina (NASDAQ: ILMN). Here's why.
Image source: Getty Images.
Cheaper and better for patients, doctors, and hospitals
Jason Hawthorne (Inari Medical): Inari Medical has a simple business. It develops disposable devices to treat venous diseases (e.g., clots) like deep vein thrombosis and pulmonary embolisms. Because these often fail to respond to drugs, and those drugs can be expensive and dangerous for patients, the $3.8 billion market was ripe for a simple alternative.
Inari has replaced multiple procedures and overnight stays in the intensive care unit with single, short sessions of less than an hour. Tack on fewer ICU admissions and a shorter overall length of hospital stay and you end up with lower costs, too. That's an obvious win for patients but it benefits doctors and health systems as well. Based on the national average of Medicare reimbursement rates, Inari's approach makes money-losing procedures profitable by significantly reducing the overall cost.
That's led to torrid growth since going public in May 2020. In the four quarterly earnings reports since, the company has posted year-over-year revenue growth of 152%, 172%, 144%, and 113%. It's been profitable in every quarter as a public company except its first. And that was at the height of the pandemic. The stock has climbed 122% since its initial public offering.
With growth like that, it's understandable that one of the company's primary goals is to expand its sales force. After all, transitioning physicians away from the costly, riskier approach requires specialized sales people to demonstrate the devices and train the potential users.
Any company doubling sales each year is likely to have a volatile stock, and Inari is no different. But ignoring the financial media -- along with its obsession over quarterly numbers and today's share price -- is the best way to stay focused on the long term. That's where the potential of a business like Inari will truly shine. The company has an easy to understand business with a lot of room for growth. Unlike Robinhood, I feel confident that Inari is good for customers and shareholders alike.
A superior dividend play
Rachel Warren (AbbVie): If you're searching for a stock that can yield consistent, generous returns for your portfolio, AbbVie is another no-brainer pick to add to your buy basket.
AbbVie, which was spun off from Abbott Laboratories in 2013, has a stable track record of annual revenue increases to its name. For example, in 2016, 2017, 2018, and 2019, the company reported respective net revenue growth of 12%, 10%, 16%, and 2%. And in 2020, AbbVie reported that its revenue surged by an eye-popping 38% compared to the previous year.
The company has delivered robust financial growth in both of the quarters it's reported so far for fiscal 2021. Its net revenue popped 51% in the first quarter and 34% in the second quarter from the year-ago periods.
AbbVie's mega-blockbuster drug Humira has remained the top-selling product in its portfolio year after year, amassing billions upon billions of dollars in annual revenue. In 2020 alone, Humira raked in net revenue of about $19.8 billion, and AbbVie's total net revenue for the year was just shy of $46 billion.
While Humira will relinquish its U.S. patent exclusivity in 2023, its authority as an established brand name and longstanding status as the best-selling drug in the world should continue to drive notable revenue growth for AbbVie. In addition, AbbVie is generating more and more of its revenue from other blockbuster drugs like Skyrizi, Rinvoq, and Imbruvica, as well as products that it acquired in its 2020 acquisition of Allergan, such as Botox Cosmetic and Botox Therapeutic.
Investors can certainly look to AbbVie for steady portfolio growth in the form of share price gains. Over the past five years, the stock has risen by around 70%. The pharmaceutical stock is also one of a special group of stocks called Dividend Aristocrats. With a premium yield of 4.6% at the time of this writing, AbbVie's dividend more than outpaces that of the average stock trading on the S&P 500, which typically yields around 2%.
From its healthy track record of balance sheet growth to its impressive portfolio of brands and medicines and its mouth-watering dividend, AbbVie is a healthcare stock you can truly buy and hold forever.
A dominant industry leader changing healthcare as we know it
Steve Ditto (Illumina): If you're looking for industries and companies that could outperform over the next 10 years, there are few better to consider than DNA sequencing company Illumina.
Illumina is the industry leader in using DNA sequencing for genetic research, testing, and medical treatment. With an installed base of more than 17,000 sequencing systems, Illumina holds more than 90% of theglobal market
This level of industry dominance has led to outstanding stock market performance. Over the last 10 years, Illumina had a total market return of 862% versus 348% for the S&P 500. Illumina could do even better over the next 10 years.
Illumina and the sequencing market have strong tailwinds. Technology advancements are dramatically improving the cost, accuracy, and turnaround time of DNA sequencing. These advancements have made their way from the research lab into hospitals where they have the potential to change the way healthcare is delivered.
About one in five "healthy" adults carry disease-related genetic mutations. It's now possible for someone to visit the doctor at the first sign of a potential issue, be tested, have their genome sequenced, arrive at a definitive diagnosis, receive a specific treatment, and have symptoms subside within days.
That scenario is one big catalyst for why sequencing volumes are projected to increase more than 10 times over the next three years. Some longtime industry observers say we are on the cusp of a genomic revolution.
These trends are showing up in Illumina's recent results. For the second quarter in a row, it generated more than $1 billion in revenue and exceeded top- and bottom-line expectations. On the Q2earnings call CEO Francis deSouza said the company is "firing on all cylinders."
Illumina has a market cap of $73 billion. If it performs as well over the next decade as it has for the past 10 years, that could grow to $250 billion. That seems feasible when you compare it to other dominant technology companies like the FAANG stocks. For long-term buy-and-hold investors looking to outperform Robinhood and the rest of the stock market, that would make shares of Illumina a good addition to any portfolio.
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Jason Hawthorne owns shares of Illumina and Inari Medical, Inc. Rachel Warren has no position in any of the stocks mentioned. Steve Ditto has no position in any of the stocks mentioned. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Humira will relinquish its U.S. patent exclusivity in 2023, its authority as an established brand name and longstanding status as the best-selling drug in the world should continue to drive notable revenue growth for AbbVie. From its healthy track record of balance sheet growth to its impressive portfolio of brands and medicines and its mouth-watering dividend, AbbVie is a healthcare stock you can truly buy and hold forever. They chose Inari Medical (NASDAQ: NARI), AbbVie (NYSE: ABBV), and Illumina (NASDAQ: ILMN). | They chose Inari Medical (NASDAQ: NARI), AbbVie (NYSE: ABBV), and Illumina (NASDAQ: ILMN). A superior dividend play Rachel Warren (AbbVie): If you're searching for a stock that can yield consistent, generous returns for your portfolio, AbbVie is another no-brainer pick to add to your buy basket. AbbVie, which was spun off from Abbott Laboratories in 2013, has a stable track record of annual revenue increases to its name. | They chose Inari Medical (NASDAQ: NARI), AbbVie (NYSE: ABBV), and Illumina (NASDAQ: ILMN). A superior dividend play Rachel Warren (AbbVie): If you're searching for a stock that can yield consistent, generous returns for your portfolio, AbbVie is another no-brainer pick to add to your buy basket. AbbVie, which was spun off from Abbott Laboratories in 2013, has a stable track record of annual revenue increases to its name. | AbbVie's mega-blockbuster drug Humira has remained the top-selling product in its portfolio year after year, amassing billions upon billions of dollars in annual revenue. They chose Inari Medical (NASDAQ: NARI), AbbVie (NYSE: ABBV), and Illumina (NASDAQ: ILMN). A superior dividend play Rachel Warren (AbbVie): If you're searching for a stock that can yield consistent, generous returns for your portfolio, AbbVie is another no-brainer pick to add to your buy basket. | 4a077407-43d9-4de5-93c3-ab68138b822f |
23972.0 | 2021-08-10 00:00:00 UTC | 3 Key Takeaways From AbbVie's Second-Quarter Earnings | ABBV | https://www.nasdaq.com/articles/3-key-takeaways-from-abbvies-second-quarter-earnings-2021-08-10 | nan | nan | The last week of July was a busy one for investors, with several big-name companies releasing their quarterly updates for the period ending on June 30. One of those was pharma giant AbbVie (NYSE: ABBV), and the drugmaker's results were impressive.
AbbVie recorded total revenue of roughly $14 billion, 19.3% higher than the year-ago period on an operational basis. On the bottom line, the company reported earnings per share of $0.42, which was much better than the loss per share of $0.46 recorded during the second quarter of 2020. What was behind this performance? Here are three key aspects of AbbVie's success during the second quarter.
1. Humira's U.S. revenue is still growing
International sales of AbbVie's blockbuster rheumatoid arthritis medicine Humira have been declining since it lost patent exclusivity in Europe in 2018. Things were no different during the second quarter. International revenue from this drug came in at $811 million, a 6% year-over-year decline.
Image source: Getty Images.
However, Humira is still going strong in the U.S., its most important market. And at least for this quarter, U.S. sales of Humira were enough to pull the drug's total revenue in the right direction. Domestic sales of the RA treatment were $4.3 billion, 7% higher than the comparable period of the previous fiscal year. Its total revenue for the quarter was $5.1 billion, a 4.8% year-over-year increase.
Still, AbbVie expects biosimilars for Humira to enter the U.S. market in 2023, and with that date fast approaching, the company needs to find other avenues for growth. Fortunately, the pharma giant seems to have done that already.
2. Passing of the torch
AbbVie's reliance on Humira would be a major problem if it weren't for the fact that the company devised a careful plan to decrease its top-line dependence on this drug. The pharma giant now has several other medicines whose sales are growing rapidly, and these are expected to take the mantle away from Humira eventually.
Arguably the two most important are Skyrizi and Rinvoq, which treat a range of autoimmune disorders. During the second quarter, sales of both drugs more than doubled; revenue from Skyrizi came in at $674 million, and Rinvoq's sales were $378 million.
Regarding these two drugs, AbbVie's CEO Richard Gonzalez said the following during the company's second-quarterearnings conference call "The focus for us going forward is the next-generation assets, Skyrizi and Rinvoq. And you can see those two assets this year will do $4.6 billion, so call it $5 billion. They're rapidly growing, and they're doing exactly what we had hoped they would do."
Another important growth driver for AbbVie is cancer medicine Venclexta, whose sales during the second quarter jumped by 43.2% year over year to $435 million. These assets will undoubtedly help AbbVie keep its revenue afloat once biosimilars for Humira enter the U.S. market.
3. Allergan's acquisition is having an impact
AbbVie closed its $63 billion acquisition of Allergan in May 2020. One of the reasons behind the move was to expand and diversify its revenue base. And by the looks of it, AbbVie is benefiting a great deal from this transaction already.
To quote Gonzalez again: "I'm particularly pleased with the robust revenue performance that we've been able to drive since acquiring Allergan, with 2021 sales tracking to grow significantly faster than legacy Allergan's historical performance."
Two former Allergan products that are performing especially well are Botox therapeutics and schizophrenia treatment Vraylar. During the second quarter, sales of the former jumped by more than 38% year over year to $603 million, while Vraylar's revenue came in at $432 million, more than 25% higher than the year-ago period.
As these products continue to contribute meaningfully to AbbVie's financial results, the pharma company will become even less dependent on Humira.
Still worth buying
The bears' doomsday scenario for AbbVie had the company not surviving the loss of patent exclusivity for its top-selling medicine. But the way things look, the drugmaker is capable of doing that -- and then some. And with growing revenue and earnings, as well as one of the safest dividends around, AbbVie's stock still looks like a buy, especially considering it has underperformed the broader market in the past year.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Passing of the torch AbbVie's reliance on Humira would be a major problem if it weren't for the fact that the company devised a careful plan to decrease its top-line dependence on this drug. Regarding these two drugs, AbbVie's CEO Richard Gonzalez said the following during the company's second-quarterearnings conference call "The focus for us going forward is the next-generation assets, Skyrizi and Rinvoq. Still worth buying The bears' doomsday scenario for AbbVie had the company not surviving the loss of patent exclusivity for its top-selling medicine. | AbbVie recorded total revenue of roughly $14 billion, 19.3% higher than the year-ago period on an operational basis. Humira's U.S. revenue is still growing International sales of AbbVie's blockbuster rheumatoid arthritis medicine Humira have been declining since it lost patent exclusivity in Europe in 2018. One of those was pharma giant AbbVie (NYSE: ABBV), and the drugmaker's results were impressive. | Humira's U.S. revenue is still growing International sales of AbbVie's blockbuster rheumatoid arthritis medicine Humira have been declining since it lost patent exclusivity in Europe in 2018. And with growing revenue and earnings, as well as one of the safest dividends around, AbbVie's stock still looks like a buy, especially considering it has underperformed the broader market in the past year. One of those was pharma giant AbbVie (NYSE: ABBV), and the drugmaker's results were impressive. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! One of those was pharma giant AbbVie (NYSE: ABBV), and the drugmaker's results were impressive. AbbVie recorded total revenue of roughly $14 billion, 19.3% higher than the year-ago period on an operational basis. | d27f1fdb-ed46-4394-a97a-5118ea247f7a |
23973.0 | 2021-08-09 00:00:00 UTC | AbbVie Launches SKYRIZI As Single-dose 150 Mg Injection - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie-launches-skyrizi-as-single-dose-150-mg-injection-quick-facts-2021-08-09 | nan | nan | (RTTNews) - AbbVie (ABBV) announced that SKYRIZI, an interleukin-23 inhibitor, is now available in the U.S. as a single-dose 150 mg injection for the treatment of adults with moderate to severe plaque psoriasis. The new SKYRIZI 150 mg pen comes with audible cues to help guide the administration process and an indicator to signal when administration is complete.
SKYRIZI is indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. AbbVie noted that SKYRIZI is part of a collaboration with Boehringer Ingelheim, with the company leading development and commercialization globally.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced that SKYRIZI, an interleukin-23 inhibitor, is now available in the U.S. as a single-dose 150 mg injection for the treatment of adults with moderate to severe plaque psoriasis. AbbVie noted that SKYRIZI is part of a collaboration with Boehringer Ingelheim, with the company leading development and commercialization globally. SKYRIZI is indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. | (RTTNews) - AbbVie (ABBV) announced that SKYRIZI, an interleukin-23 inhibitor, is now available in the U.S. as a single-dose 150 mg injection for the treatment of adults with moderate to severe plaque psoriasis. AbbVie noted that SKYRIZI is part of a collaboration with Boehringer Ingelheim, with the company leading development and commercialization globally. The new SKYRIZI 150 mg pen comes with audible cues to help guide the administration process and an indicator to signal when administration is complete. | (RTTNews) - AbbVie (ABBV) announced that SKYRIZI, an interleukin-23 inhibitor, is now available in the U.S. as a single-dose 150 mg injection for the treatment of adults with moderate to severe plaque psoriasis. AbbVie noted that SKYRIZI is part of a collaboration with Boehringer Ingelheim, with the company leading development and commercialization globally. SKYRIZI is indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. | (RTTNews) - AbbVie (ABBV) announced that SKYRIZI, an interleukin-23 inhibitor, is now available in the U.S. as a single-dose 150 mg injection for the treatment of adults with moderate to severe plaque psoriasis. AbbVie noted that SKYRIZI is part of a collaboration with Boehringer Ingelheim, with the company leading development and commercialization globally. The new SKYRIZI 150 mg pen comes with audible cues to help guide the administration process and an indicator to signal when administration is complete. | d3b628e1-ac2b-44d2-bb11-ab44471d520c |
23974.0 | 2021-08-08 00:00:00 UTC | Here Are the 12 Best Dividend Stocks I Own Right Now | ABBV | https://www.nasdaq.com/articles/here-are-the-12-best-dividend-stocks-i-own-right-now-2021-08-08 | nan | nan | Some investors concentrate their portfolios on just a handful of stocks. I like too many businesses to limit my choices. As a result, my portfolio is rather large -- typically between 40 and 50 stocks.
While many of these are growth stocks that don't pay dividends, quite a few of my holdings do. Here are the 12 best dividend stocks that I own right now.
Image source: Getty Images.
Energizing picks
As I looked through the dividend stocks in my portfolio, I noticed that they fell into three general categories. The biggest group included seven energy-related stocks.
COMPANY
DIVIDEND YIELD
Air Products & Chemicals (NYSE: APD) 2.1%
Brookfield Infrastructure Partners (NYSE: BIP) 3.8%
Brookfield Infrastructure Corporation (NYSE: BIPC) 3.2%
Brookfield Renewable Partners (NYSE: BEP) 3.1%
Brookfield Renewable Corporation (NYSE: BEPC) 2.9%
Chevron (NYSE: CVX) 5.3%
Enterprise Products Partners (NYSE: EPD) 8%
Air Products & Chemicals just might be the most boring stock that I own. I included it in this category because the company is the global leader in supplying liquefied natural gas process technology and equipment. It also makes industrial gases used in refining as well as several other industries.
But this boring stock is also a Dividend Aristocrat with 39 consecutive years of dividend increases. Air Products & Chemicals has also beaten the S&P 500 over the last 10 years.
You probably noticed that there are quite a few Brookfields on the list. Brookfield Infrastructure Partners and Brookfield Infrastructure Corporation are the same business but with two stocks -- one limited partnership (LP) and one corporate structure (which doesn't have the tax complications of an LP). It's a similar story for Brookfield Renewable Partners and Brookfield Renewable Corporation.
Brookfield Infrastructure is involved in more than just energy. As its name indicates, the company focuses on infrastructure assets. These assets include natural gas pipelines, electricity transmission lines, railroads, toll roads, liquid natural gas terminals, cell towers, data centers, and more.
Brookfield Renewable is a major provider of renewable energy. It owns hydroelectric, solar, wind, and storage facilities on four continents.
Most investors are probably familiar with energy giant Chevron. The stock has been a longtime favorite for income investors.
Rounding out the list of energy-related stocks in my portfolio is Enterprise Products Partners. The company is a leading provider of midstream energy services related to natural gas, natural gas liquids, crude oil, refined products, and petrochemicals.
While Enterprise Products Partners offers the juiciest dividend in this group, I think that Brookfield Renewable (either of the two stocks) ranks as the best pick. The company has tremendous growth opportunities ahead as countries and big businesses move forward with carbon reduction initiatives.
Pharma power
I also own several big pharma stocks. All three offer attractive dividends and solid growth prospects as well.
COMPANY
DIVIDEND YIELD
AbbVie (NYSE: ABBV) 4.5%
Bristol Myers Squibb (NYSE: BMY) 2.9%
Pfizer (NYSE: PFE) 3.5%
You won't find many better dividend stocks than AbbVie. It's one dividend hike away from becoming a Dividend King (S&P 500 members with at least 50 consecutive annual dividend increases). And while the company faces biosimilar competition for its top-selling drug Humira in 2023, it has a supporting cast of other products with fast-growing sales.
Bristol Myers Squibb will have some challenges of its own with generics for blood cancer drug Revlimid on the way. However, the company has a basket of promising new drugs on the market as well as a strong pipeline.
Pfizer might be one of the most underappreciated stocks on the market right now. Despite fantastic sales for its COVID-19 vaccine and several other of its products, its shares have lagged behind the overall market over the last 12 months.
I'm bullish about Pfizer, though. My view is that the company will continue to enjoy robust vaccine sales. I also think that Pfizer could launch another COVID-19 blockbuster next year with its antiviral drug PF-07321332.
The outliers
Now for the catch-all category. These two dividend stocks don't fit into the other groups but are rock-solid, in my view.
COMPANY
DIVIDEND YIELD
Innovative Industrial Properties (NYSE: IIPR) 2.6%
PepsiCo (NASDAQ: PEP) 2.8%
Innovative Industrial Properties is a real estate investment trust (REIT) that focuses on the U.S. medical cannabis industry. I think IIP is the best cannabis stock to buy right now. It probably has better growth prospects than any other dividend stock that I own.
PepsiCo is another stock that's a Dividend Aristocrat on the threshold of becoming a Dividend King. I don't particularly like the company's soft drinks, but I give a thumbs-up to its strong snacks business that's driving Pepsi's growth.
Averaging up
If you bought equally sized positions in each of these dividend stocks, your average dividend yield would top 3.7%. I suspect most income-seeking investors would find that yield quite attractive.
Even better, all of these stocks should have pretty good growth prospects over the next decade and beyond. Some of them could deliver especially impressive growth -- maybe even better than some of the other stocks that I own that don't pay dividends.
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Keith Speights owns shares of AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Chevron, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, and Pfizer. The Motley Fool owns shares of and recommends Bristol Myers Squibb and Innovative Industrial Properties. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, and Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) 4.5% Bristol Myers Squibb (NYSE: BMY) 2.9% Pfizer (NYSE: PFE) 3.5% You won't find many better dividend stocks than AbbVie. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Chevron, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, and Pfizer. While Enterprise Products Partners offers the juiciest dividend in this group, I think that Brookfield Renewable (either of the two stocks) ranks as the best pick. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Chevron, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, and Pfizer. AbbVie (NYSE: ABBV) 4.5% Bristol Myers Squibb (NYSE: BMY) 2.9% Pfizer (NYSE: PFE) 3.5% You won't find many better dividend stocks than AbbVie. Air Products & Chemicals (NYSE: APD) 2.1% Brookfield Infrastructure Partners (NYSE: BIP) 3.8% Brookfield Infrastructure Corporation (NYSE: BIPC) 3.2% Brookfield Renewable Partners (NYSE: BEP) 3.1% Brookfield Renewable Corporation (NYSE: BEPC) 2.9% Chevron (NYSE: CVX) 5.3% Enterprise Products Partners (NYSE: EPD) 8% Air Products & Chemicals just might be the most boring stock that I own. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Chevron, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, and Pfizer. AbbVie (NYSE: ABBV) 4.5% Bristol Myers Squibb (NYSE: BMY) 2.9% Pfizer (NYSE: PFE) 3.5% You won't find many better dividend stocks than AbbVie. Air Products & Chemicals (NYSE: APD) 2.1% Brookfield Infrastructure Partners (NYSE: BIP) 3.8% Brookfield Infrastructure Corporation (NYSE: BIPC) 3.2% Brookfield Renewable Partners (NYSE: BEP) 3.1% Brookfield Renewable Corporation (NYSE: BEPC) 2.9% Chevron (NYSE: CVX) 5.3% Enterprise Products Partners (NYSE: EPD) 8% Air Products & Chemicals just might be the most boring stock that I own. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Chevron, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, and Pfizer. AbbVie (NYSE: ABBV) 4.5% Bristol Myers Squibb (NYSE: BMY) 2.9% Pfizer (NYSE: PFE) 3.5% You won't find many better dividend stocks than AbbVie. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Innovative Industrial Properties wasn't one of them! | 7f13df3c-55c3-4a9d-a4ff-13be818920b4 |
23975.0 | 2021-08-06 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-08-06 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Cardinal Health, Inc. (Symbol: CAH) $50.57 $61.20 21.02%
Cincinnati Financial Corp. (Symbol: CINF) $116.39 $124.50 6.97%
AbbVie Inc (Symbol: ABBV) $115.12 $123.08 6.91%
Kimberly-Clark Corp. (Symbol: KMB) $133.41 $141.45 6.03%
PepsiCo Inc (Symbol: PEP) $154.31 $162.77 5.48%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Cardinal Health, Inc. (Symbol: CAH) 3.88% 21.02% 24.9%
Cincinnati Financial Corp. (Symbol: CINF) 2.17% 6.97% 9.14%
AbbVie Inc (Symbol: ABBV) 4.52% 6.91% 11.43%
Kimberly-Clark Corp. (Symbol: KMB) 3.42% 6.03% 9.45%
PepsiCo Inc (Symbol: PEP) 2.79% 5.48% 8.27%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Cardinal Health, Inc. (Symbol: CAH) $1.929 $1.949 1.04%
Cincinnati Financial Corp. (Symbol: CINF) $2.32 $2.46 6.03%
AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20%
Kimberly-Clark Corp. (Symbol: KMB) $4.2 $4.42 5.24%
PepsiCo Inc (Symbol: PEP) $3.888 $4.144 6.58%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardinal Health, Inc. (Symbol: CAH) $50.57 $61.20 21.02% Cincinnati Financial Corp. (Symbol: CINF) $116.39 $124.50 6.97% AbbVie Inc (Symbol: ABBV) $115.12 $123.08 6.91% Kimberly-Clark Corp. (Symbol: KMB) $133.41 $141.45 6.03% PepsiCo Inc (Symbol: PEP) $154.31 $162.77 5.48% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cardinal Health, Inc. (Symbol: CAH) 3.88% 21.02% 24.9% Cincinnati Financial Corp. (Symbol: CINF) 2.17% 6.97% 9.14% AbbVie Inc (Symbol: ABBV) 4.52% 6.91% 11.43% Kimberly-Clark Corp. (Symbol: KMB) 3.42% 6.03% 9.45% PepsiCo Inc (Symbol: PEP) 2.79% 5.48% 8.27% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.929 $1.949 1.04% Cincinnati Financial Corp. (Symbol: CINF) $2.32 $2.46 6.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% Kimberly-Clark Corp. (Symbol: KMB) $4.2 $4.42 5.24% PepsiCo Inc (Symbol: PEP) $3.888 $4.144 6.58% These five stocks are part of our full Dividend Aristocrats List. | Cardinal Health, Inc. (Symbol: CAH) $50.57 $61.20 21.02% Cincinnati Financial Corp. (Symbol: CINF) $116.39 $124.50 6.97% AbbVie Inc (Symbol: ABBV) $115.12 $123.08 6.91% Kimberly-Clark Corp. (Symbol: KMB) $133.41 $141.45 6.03% PepsiCo Inc (Symbol: PEP) $154.31 $162.77 5.48% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cardinal Health, Inc. (Symbol: CAH) 3.88% 21.02% 24.9% Cincinnati Financial Corp. (Symbol: CINF) 2.17% 6.97% 9.14% AbbVie Inc (Symbol: ABBV) 4.52% 6.91% 11.43% Kimberly-Clark Corp. (Symbol: KMB) 3.42% 6.03% 9.45% PepsiCo Inc (Symbol: PEP) 2.79% 5.48% 8.27% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.929 $1.949 1.04% Cincinnati Financial Corp. (Symbol: CINF) $2.32 $2.46 6.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% Kimberly-Clark Corp. (Symbol: KMB) $4.2 $4.42 5.24% PepsiCo Inc (Symbol: PEP) $3.888 $4.144 6.58% These five stocks are part of our full Dividend Aristocrats List. | Cardinal Health, Inc. (Symbol: CAH) $50.57 $61.20 21.02% Cincinnati Financial Corp. (Symbol: CINF) $116.39 $124.50 6.97% AbbVie Inc (Symbol: ABBV) $115.12 $123.08 6.91% Kimberly-Clark Corp. (Symbol: KMB) $133.41 $141.45 6.03% PepsiCo Inc (Symbol: PEP) $154.31 $162.77 5.48% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cardinal Health, Inc. (Symbol: CAH) 3.88% 21.02% 24.9% Cincinnati Financial Corp. (Symbol: CINF) 2.17% 6.97% 9.14% AbbVie Inc (Symbol: ABBV) 4.52% 6.91% 11.43% Kimberly-Clark Corp. (Symbol: KMB) 3.42% 6.03% 9.45% PepsiCo Inc (Symbol: PEP) 2.79% 5.48% 8.27% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.929 $1.949 1.04% Cincinnati Financial Corp. (Symbol: CINF) $2.32 $2.46 6.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% Kimberly-Clark Corp. (Symbol: KMB) $4.2 $4.42 5.24% PepsiCo Inc (Symbol: PEP) $3.888 $4.144 6.58% These five stocks are part of our full Dividend Aristocrats List. | Cardinal Health, Inc. (Symbol: CAH) $50.57 $61.20 21.02% Cincinnati Financial Corp. (Symbol: CINF) $116.39 $124.50 6.97% AbbVie Inc (Symbol: ABBV) $115.12 $123.08 6.91% Kimberly-Clark Corp. (Symbol: KMB) $133.41 $141.45 6.03% PepsiCo Inc (Symbol: PEP) $154.31 $162.77 5.48% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Cardinal Health, Inc. (Symbol: CAH) 3.88% 21.02% 24.9% Cincinnati Financial Corp. (Symbol: CINF) 2.17% 6.97% 9.14% AbbVie Inc (Symbol: ABBV) 4.52% 6.91% 11.43% Kimberly-Clark Corp. (Symbol: KMB) 3.42% 6.03% 9.45% PepsiCo Inc (Symbol: PEP) 2.79% 5.48% 8.27% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.929 $1.949 1.04% Cincinnati Financial Corp. (Symbol: CINF) $2.32 $2.46 6.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% Kimberly-Clark Corp. (Symbol: KMB) $4.2 $4.42 5.24% PepsiCo Inc (Symbol: PEP) $3.888 $4.144 6.58% These five stocks are part of our full Dividend Aristocrats List. | 56c8380e-7db9-40e5-bb64-592c2063aa63 |
23976.0 | 2021-08-04 00:00:00 UTC | Why AbbVie is a Top Socially Responsible Dividend Stock (ABBV) | ABBV | https://www.nasdaq.com/articles/why-abbvie-is-a-top-socially-responsible-dividend-stock-abbv-2021-08-04 | nan | nan | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society — for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.33% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 0.99% of the underlying holdings of the fund.
The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/14/2021. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson (JNJ), and Novartis (NVS).
Top 25 Socially Responsible Dividend Stocks — Income To Feel Good About »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Below is a long-term dividend history chart for ABBV, which the DividendRank report stressed as being of key importance. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.33% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 0.99% of the underlying holdings of the fund. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.33% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 0.99% of the underlying holdings of the fund. The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/14/2021. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.33% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 0.99% of the underlying holdings of the fund. The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/14/2021. | AbbVie Inc (Symbol: ABBV) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel, AbbVie Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.33% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where ABBV makes up 0.99% of the underlying holdings of the fund. The annualized dividend paid by AbbVie Inc is $5.2/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/14/2021. | d3657486-669d-4a9a-a4ed-159590d47f69 |
23977.0 | 2021-08-04 00:00:00 UTC | 1 Major Takeaway From Pfizer's Blowout Second-Quarter Results | ABBV | https://www.nasdaq.com/articles/1-major-takeaway-from-pfizers-blowout-second-quarter-results-2021-08-04 | nan | nan | Pharma giant Pfizer (NYSE: PFE) released its second-quarter earnings report on July 28, and the results were impressive. Naturally, the big story surrounded the drugmaker's COVID-19 vaccine, BNT162b2, whose revenue came in at $7.8 billion for the period. BNT162b2 is the gift that keeps on giving, and Pfizer now expects total revenue of $33.5 billion from the vaccine this year, which is up from its previous guidance of $26 billion.
While Pfizer's coronavirus-related news continues to grab most of the headlines, investors should pay attention to the strength of the rest of its business. Here's one key piece of evidence from Pfizer's latest quarterly update that hammers this point home.
Declining sales of Xeljanz
Xeljanz, a medicine indicated for the treatment of rheumatoid arthritis (RA) and plaque psoriasis, is often touted as a key growth driver for Pfizer. But during the second quarter, sales of this medicine dropped by 8% to $586 million. One of the reasons for the decline is worth noting.
Image source: Getty Images.
In January, Pfizer reported results from a post-marketing study for Xeljanz. The study pitted the RA medicine against TNF-inhibitors, a class of drugs that treat autoimmune disorders; this group includes AbbVie's Humira. Participants in the study were at least 50 years of age and had had at least one additional cardiovascular risk factor.
The results: Patients on Xeljanz had higher rates of cardiovascular events and higher incidences of cancer. These results did not escape the scrutiny of regulators. The U.S. Food and Drug Administration's (FDA) ongoing review of the data has had a negative impact on the number of new patients taking it, leading to lower revenue for the company's blockbuster drug.
Other avenues for growth
In the worst-case scenario, the FDA would take Xeljanz off the market on the grounds that the medicine's risks far outweigh its benefits. But this seems unlikely to happen. Still, the FDA could increase restrictions on higher doses for the drug, and label expansions are already being delayed, which is affecting sales. Even with these (potential) headwinds, though, the diversity of Pfizer's lineup mean the company's future does not depend on one single drug.
Putting aside revenue from BNT162b2, first-quarter revenue of $11.1 billion was up 10% compared to the first quarter of the previous fiscal year. For a major pharmaceutical company the size of Pfizer, a 10% year-over-year revenue increase is nothing to sneeze at. Pfizer owed this performance to anticoagulant Eliquis, whose sales of $1.5 billion jumped by 16% compared to the year-ago period.
Meanwhile, sales of cancer drug Xtandi jumped by 14% to $303 million. Inlyta, another cancer medicine, recorded $257 million in revenue, 32% higher than the second quarter of 2020. Also worth noting, Pfizer's biosimilar business saw its sales skyrocket by 93% to $559 million. Pfizer's lineup is impressive, and so is the company's pipeline, which boasts more than 50 programs.
The drugmaker had more than a dozen regulatory approvals in 2020, and that's something investors can expect the company to pull off more or less every year. In short, even without its COVID-19 vaccine, and even if Xeljanz's sales growth decreases due to safety concerns, Pfizer's business looks very healthy.
Why you may want to buy
Of course, when considering Pfizer's overall prospects, we can't just ignore its vaccine -- after all, the product will rack up more than $30 billion in sales in its first year on the market. The only potential downside here is that BNT162b2 is setting the bar very high. Once the pandemic subsides, don't expect it to generate that much in revenue every year. But there are good reasons to think it will continue to contribute meaningfully to Pfizer's top line. With cases of COVID-19 on the rise again, especially due to the highly contagious delta variant, the need for booster shots looks increasingly likely.
That's especially true considering that BNT162b2's efficacy seems to decrease after six months. Pfizer's CEO, Albert Bourla, also thinks COVID-19 is here to stay, and the need for vaccines for the disease will become seasonal. Putting all this together, a clear picture emerges. Pfizer's business minus BNT162b2 looks strong. Pfizer's business plus BNT162b2 looks even stronger. And given that the company's shares have underperformed the market in the past year, now is an excellent time to initiate a position.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The study pitted the RA medicine against TNF-inhibitors, a class of drugs that treat autoimmune disorders; this group includes AbbVie's Humira. Other avenues for growth In the worst-case scenario, the FDA would take Xeljanz off the market on the grounds that the medicine's risks far outweigh its benefits. Why you may want to buy Of course, when considering Pfizer's overall prospects, we can't just ignore its vaccine -- after all, the product will rack up more than $30 billion in sales in its first year on the market. | The study pitted the RA medicine against TNF-inhibitors, a class of drugs that treat autoimmune disorders; this group includes AbbVie's Humira. Declining sales of Xeljanz Xeljanz, a medicine indicated for the treatment of rheumatoid arthritis (RA) and plaque psoriasis, is often touted as a key growth driver for Pfizer. Inlyta, another cancer medicine, recorded $257 million in revenue, 32% higher than the second quarter of 2020. | The study pitted the RA medicine against TNF-inhibitors, a class of drugs that treat autoimmune disorders; this group includes AbbVie's Humira. BNT162b2 is the gift that keeps on giving, and Pfizer now expects total revenue of $33.5 billion from the vaccine this year, which is up from its previous guidance of $26 billion. In short, even without its COVID-19 vaccine, and even if Xeljanz's sales growth decreases due to safety concerns, Pfizer's business looks very healthy. | The study pitted the RA medicine against TNF-inhibitors, a class of drugs that treat autoimmune disorders; this group includes AbbVie's Humira. In January, Pfizer reported results from a post-marketing study for Xeljanz. Putting aside revenue from BNT162b2, first-quarter revenue of $11.1 billion was up 10% compared to the first quarter of the previous fiscal year. | ee9b972f-14bc-49ee-a0e6-928ddbcae8a1 |
23978.0 | 2021-08-04 00:00:00 UTC | How This Historic FDA Approval Benefits Viatris | ABBV | https://www.nasdaq.com/articles/how-this-historic-fda-approval-benefits-viatris-2021-08-04 | nan | nan | U.S. biopharmaceutical company Viatris (NASDAQ: VTRS) and its partner, Indian biopharma Biocon, announced on July 28 that the U.S. Food and Drug Administration (FDA) had approved their biosimilar insulin drug, Semglee, as an "interchangeable biosimilar" -- a direct alternative to Sanofi's (NASDAQ: SNY) blockbuster insulin drug, Lantus.
Semglee is the first interchangeable biosimilar insulin product approved by the FDA. It's expected to launch some time before the end of this year, according to Viatris. While that company hasn't provided exact details on the pricing of Semglee compared with that of Lantus, GoodRx notes that biosimilars launched in the U.S. have typically been anywhere from "10% to 37% cheaper than biologics."
Aside from the science establishing Semglee as an effective biosimilar, what prompted the FDA to approve this drug? And what's the potential revenue upside for Viatris?
Image source: Getty Images.
Mounting bipartisan outrage toward pharma
In a politically charged climate such as that of the U.S., it's rare to find bipartisan support on much of anything.
One of the few things that Americans of varying political viewpoints seem to agree on is their concern about rising prescription drug costs.Recent polling from the Kaiser Family Foundation (KFF) supports this point, with nearly 8 out of 10 American adults surveyed saying "the cost of prescription drugs is unreasonable."
The World Health Organization estimates that medication non-compliance accounts for up to 25% of annual hospitalizations in the U.S., so perhaps the most concerning takeaway from KFF's public opinion research regarding prescription drug costs is the fact that about 3 out of 10 American adults reported not taking their medications in the past year due to cost.
It seems fair to suggest that bipartisan political rhetoric -- and the massive strain on the healthcare system resulting, in part, from cost-related medication non-compliance -- has put pressure on the FDA to approve biosimilars that have been proven as safe as biologics. It's a meaningful way to reduce pharmaceutical costs to the average American.
Viatris will steal meaningful sales from Sanofi
Before we delve into the revenue that Viatris' Semglee could reasonably take away from Sanofi's Lantus, it's important to note that the FDA's iconic approval of Semglee is a vote of confidence in the safety profile of the drug.
Considering that the drug will, in all likelihood, be at least somewhat cheaper than Lantus and has been proven just as safe, my prediction is that many doctors and patients will end up making the decision to switch from Lantus to Semglee.
Taking into consideration that Lantus generated just more than $1 billion in U.S. revenue in 2020, there is a potentially huge market for Semglee in the U.S.
Assuming that approximately 25% of U.S. patients currently being prescribed Lantus switch to Semglee at a 20% cheaper cost (roughly the midpoint of GoodRx's data for biosimilar pricing versus biologics), Viatris' drug would generate $200 million in annualized revenue by early next year.
Better yet for Viatris, the company is eligible for exclusivity for 12 months from the date it launches the drug commercially, which will help to establish it in the market before competition emerges and pricing comes under some pressure.
Finally, it's worth noting that the FDA's interchangeable biosimilar approval for Semglee will benefit Viatris in the U.S., as the company has "exclusive commercialization rights in the U.S., Canada, Australia, New Zealand, the European Union and European Free Trade Association countries," whereas Biocon Biologics possesses "exclusive commercialization rights for Japan and certain emerging markets," according to Viatris. The two companies share co-exclusive commercialization rights in all other parts of the world not outlined by the collaboration agreement above.
A boost for Viatris and a signal of what's ahead
Although $200 million in additional annualized revenue represents just over 1% of analysts' total 2022 revenue forecast for Viatris ($17.4 billion), I believe it is reasonable to expect that the FDA's announcement will lay the groundwork for similar approvals in the future aimed at controlling pharmaceutical costs while still ensuring medication safety.
Viatris also has a number of biosimilar products in the pipeline, including one for AbbVie's (NYSE: ABBV) aesthetics and neuroscience blockbuster drug Botox that's it's currently developing with Revance Therapeutics (NASDAQ: RVNC), and another partnership with Biocon on a biosimilar for Sanofi's insulin drug Toujeo (this and Semglee are just two of the 11 biosimilars that Biocon and Viatris are co-developing for global markets). This cheaply valued company has a lot of potential success ahead.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Viatris also has a number of biosimilar products in the pipeline, including one for AbbVie's (NYSE: ABBV) aesthetics and neuroscience blockbuster drug Botox that's it's currently developing with Revance Therapeutics (NASDAQ: RVNC), and another partnership with Biocon on a biosimilar for Sanofi's insulin drug Toujeo (this and Semglee are just two of the 11 biosimilars that Biocon and Viatris are co-developing for global markets). See the 10 stocks *Stock Advisor returns as of June 7, 2021 Kody Kester owns shares of Viatris Inc and AbbVie. While that company hasn't provided exact details on the pricing of Semglee compared with that of Lantus, GoodRx notes that biosimilars launched in the U.S. have typically been anywhere from "10% to 37% cheaper than biologics." | Viatris also has a number of biosimilar products in the pipeline, including one for AbbVie's (NYSE: ABBV) aesthetics and neuroscience blockbuster drug Botox that's it's currently developing with Revance Therapeutics (NASDAQ: RVNC), and another partnership with Biocon on a biosimilar for Sanofi's insulin drug Toujeo (this and Semglee are just two of the 11 biosimilars that Biocon and Viatris are co-developing for global markets). See the 10 stocks *Stock Advisor returns as of June 7, 2021 Kody Kester owns shares of Viatris Inc and AbbVie. U.S. biopharmaceutical company Viatris (NASDAQ: VTRS) and its partner, Indian biopharma Biocon, announced on July 28 that the U.S. Food and Drug Administration (FDA) had approved their biosimilar insulin drug, Semglee, as an "interchangeable biosimilar" -- a direct alternative to Sanofi's (NASDAQ: SNY) blockbuster insulin drug, Lantus. | Viatris also has a number of biosimilar products in the pipeline, including one for AbbVie's (NYSE: ABBV) aesthetics and neuroscience blockbuster drug Botox that's it's currently developing with Revance Therapeutics (NASDAQ: RVNC), and another partnership with Biocon on a biosimilar for Sanofi's insulin drug Toujeo (this and Semglee are just two of the 11 biosimilars that Biocon and Viatris are co-developing for global markets). See the 10 stocks *Stock Advisor returns as of June 7, 2021 Kody Kester owns shares of Viatris Inc and AbbVie. U.S. biopharmaceutical company Viatris (NASDAQ: VTRS) and its partner, Indian biopharma Biocon, announced on July 28 that the U.S. Food and Drug Administration (FDA) had approved their biosimilar insulin drug, Semglee, as an "interchangeable biosimilar" -- a direct alternative to Sanofi's (NASDAQ: SNY) blockbuster insulin drug, Lantus. | Viatris also has a number of biosimilar products in the pipeline, including one for AbbVie's (NYSE: ABBV) aesthetics and neuroscience blockbuster drug Botox that's it's currently developing with Revance Therapeutics (NASDAQ: RVNC), and another partnership with Biocon on a biosimilar for Sanofi's insulin drug Toujeo (this and Semglee are just two of the 11 biosimilars that Biocon and Viatris are co-developing for global markets). See the 10 stocks *Stock Advisor returns as of June 7, 2021 Kody Kester owns shares of Viatris Inc and AbbVie. Semglee is the first interchangeable biosimilar insulin product approved by the FDA. | a02682a4-6336-4dae-a82d-bf49962781a5 |
23979.0 | 2021-08-04 00:00:00 UTC | $5,000 Invested in These 3 Healthcare Stocks Could Make You Rich Over the Next 10 Years | ABBV | https://www.nasdaq.com/articles/%245000-invested-in-these-3-healthcare-stocks-could-make-you-rich-over-the-next-10-years | nan | nan | Healthcare has undergone massive changes in the past decade. A global pandemic will overshadow much of it in the eyes of history, but legislation, reimbursement changes, and scientific breakthroughs permeated the 2010s. It probably leaves investors wondering what the next decade has in store.
No one can predict the future -- at least not the details. But scientific breakthroughs are sure to continue. And the changes brought on by the pandemic have opened our eyes to the possibilities of virtual care and genomic medicine. That's why three Fool contributors think Trillium Therapeutics (NASDAQ: TRIL), Teladoc Health (NYSE: TDOC), and Pacific Biosciences of California (NASDAQ: PACB) could offer massive returns over the next 10 years.
Image source: Getty Images.
A new way to fight cancer
Jason Hawthorne (Trillium Therapeutics): One of the more promising advances in cancer therapy has been to target the CD47 protein -- referred to as the "don't eat me" signal -- it uses to hide from the immune system. The approach has shown some early success, leading to a lot of competition and billions in deals for CD47 assets. Just last year, Gilead Sciences bought Forty Seven for $4.9 billion and AbbVie inked a deal with Chinese biotech I-Mab that could be worth as much as $2 billion. Perhaps fearing it was being left behind, Pfizer invested $25 million in tiny Trillium Therapeutics. Based on early results, the smallest of the bunch could end up producing the biggest rewards.
With a market cap of only $650 million, clinical success would likely vault Trillium into the company of the others, producing huge gains. Despite trailing them on the calendar, Trillium's two drug candidates -- TTI-621 and TTI-622 -- have demonstrated early results that are in some ways more impressive than the others. Trillium's candidates have avoided the drawbacks of many others targeting CD47.
Most impressively, both have shown monotherapy activity -- used on their own, without other treatments. Those results are enhanced when combined with other drugs. As a single agent, the two drugs have demonstrated potentially best-in-class response rates. The company is parlaying its preclinical success into multiple studies in seven indications -- four blood cancers and three in solid tumors.
CEO Jan Skvarka said its drugs have shown "substantial" anti-tumor activity and have given management a "strong basis" for testing it in solid tumors. For now, he believes there are about 30,000 patients per year in the U.S. who could benefit from the drugs. For the longer term, Skvarka is thinking bigger. Last year, he said the ultimate goal was "to challenge chemotherapy."
Trillium's stiffest competition could be Forty Seven's magrolimab. That drug has already been granted breakthrough designation in myelodysplastic syndrome by the Food and Drug Administration and is currently in phase 3 trials. It's also in three other phase 1b trials. Still, Trillium's early success and grand ambitions could make it the CD47 stock to own. Like all small biotechs, it comes with substantial risk. But an appropriately sized position could fatten shareholders' portfolios over the next decade.
A leader in the future of healthcare
Rachel Warren (Teladoc Health): The pandemic changed the way many people approach basic aspects of everyday life. From work to school to social activities, people turned to virtual options to facilitate these essential needs when stay-at-home orders forced much of the world to shelter in place for weeks or months at a time. Unsurprisingly, consumers also turned to virtual solutions so they could receive quality healthcare from the comfort of home. And more often than not, these visits were conducted on the behemoth digital healthcare platform Teladoc Health.
According to a report by Research and Markets, the global telemedicine market surged from an $11.3 billion valuation in 2019 to nearly $31 billion in 2020, and is expected to be valued at nearly $92 billion by the year 2026. Another report by market research provider Prescient & Strategic Intelligence estimates the telemedicine industry will amass global revenue to the tune of more than $144 billion as of 2030.
Teladoc remains the top provider of telemedicine services in the world, with more than 52 million paid members in the U.S. alone as of its second-quarter earnings report. The healthcare stock is rapidly expanding its platform offerings, which cover a host of specialties from primary care to mental healthcare to chronic condition management. Teladoc also closed two major acquisitions in 2020 (Livongo and InTouch Health), both of which further established the platform as an all-inclusive solution for 24/7 virtual care and vastly expanded its potential membership base.
In the first and second quarters of 2021, the company reported respective revenue increases of 151% and 109% from the year-ago periods. Meanwhile, visits on Teladoc's platform surged by 56% and 28% year over year in these two quarters. Even though the company isn't yet profitable and its net losses were notably higher in the first half of this year compared to the first half of 2020 -- due in large part to the purchases of Livongo and InTouch Health -- these losses are narrowing. In the first quarter of 2021, the company recorded a net loss of $199.6 million, while its net loss fell to $133.8 million in the second quarter. Another positive sign for Teladoc's future profitability is its adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA. In the first two quarters of 2020, this metric increased by 429% and 154%, respectively, year over year.
Impressive revenue and platform growth was standard fare for Teladoc prior to the pandemic. For instance, in 2018 the company's revenue increased 79%, and its revenue grew by 32% in 2019.
Given Teladoc's fantastic track record of growth, continued successes throughout the pandemic, and rosy financial expectations -- the company is projecting about $2 billion in revenues for the full-year 2021 compared to $1.1 billion in 2020 -- why isn't its share price reflecting these factors? This can likely be attributed to a range of factors, including shifting investor sentiments as economies reopen and Teladoc's lagging bottom line.
However, analysts still think the stock could have upside potential of more than 90%. Long-term investors who have the patience to wait for Teladoc to realize its upside potential as its industry continues to grow and its bottom line creeps closer to positive territory could see notable portfolio returns from share price increases over the next decade. And given that the stock is trading down 25% year to date, you can snag the company at a bargain, sit on it for years, and let the returns flow in.
A challenger in the sequencing market
Steve Ditto (Pacific Biosciences of California): Pacific Biosciences of California, known as PacBio, is developing its HiFi DNA sequencing technology to explore whole genomes and make discoveries that have not been possible with other technologies.
The human genome comprises 3.05 billion DNA base pairs which are organized in sequences, much like the ones and zeros of computer code, to determine our genetic code. DNA sequencers read these base pairs to help scientists understand which genes control different hereditary features and identify gene variations that may cause diseases. For years, researchers had to make a choice between the ability of different DNA sequencing technologies to balance the length and accuracy of each read.
Short read sequencing, which was pioneered by market leader Illumina, divides DNA into shorter segments for analysis. This process is accurate but can leave gaps in hard-to-sequence areas of the gene and misses some genetic variations. As a consequence, the Human Genome Project, which was declared completed in 2003, was actually missing 8% of the genome.
Long read sequencing, being pioneered by PacBio, lets scientists delve deeper into the gene. The result is a more complete DNA map that enhances the ability to spot complex structural variants causing many diseases. PacBio recently showed the advantage of its long read sequencing HiFi technology by helping a team of scientists complete the missing sequences and errors in the Human Genome Project.
ARK invest CEO Cathie Wood is a big believer in PacBio and its HiFi approach. ARK exited its entire Illumina position in the ARK Genomic Revolution ETF in 2020 on the belief PacBio and HiFi sequencing would be able to deliver the benefits of long read sequencing at a cost comparable to short read sequencing. If true, this development would open up entirely new use cases and markets for PacBio. The ARK thesis may be playing out, as PacBio recently signed a collaboration agreement with Invitae, a leader in genetic testing, to expand its whole genome testing capabilities.
By the end of 2020, PacBio had deployed 203 sequencing systems and generated revenue of almost $79 million against an operating loss of $104 million. To achieve profitability, PacBio will need to continue lowering the cost of its technology to spur broader adoption. As a step toward that goal, PacBio recently announced the acquisition of Omniome and its Sequencing by Binding (SBB) chemistry. The goal is to incorporate SBB into PacBio's solution to make its cost and accuracy on par with short read sequencing.
If successful, PacBio's HiFi sequencing technology could become the core engine driving what many are calling the Genomic Revolution. The overall sequencing market is projected to grow to $40 billion by 2030 giving PacBio a long runway to substantial growth. For patient buy-and-hold investors, $5,000 invested in PacBio could make you rich over the next 10 years.
10 stocks we like better than Teladoc Health
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Jason Hawthorne owns shares of Illumina, Teladoc Health, and Trillium Therapeutics. Rachel Warren has no position in any of the stocks mentioned. Steve Ditto owns shares of ARK ETF Trust-ARK Genomic Revolution ETF, Invitae, and Pacific Biosciences of California. The Motley Fool owns shares of and recommends Invitae and Teladoc Health. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Just last year, Gilead Sciences bought Forty Seven for $4.9 billion and AbbVie inked a deal with Chinese biotech I-Mab that could be worth as much as $2 billion. From work to school to social activities, people turned to virtual options to facilitate these essential needs when stay-at-home orders forced much of the world to shelter in place for weeks or months at a time. Teladoc also closed two major acquisitions in 2020 (Livongo and InTouch Health), both of which further established the platform as an all-inclusive solution for 24/7 virtual care and vastly expanded its potential membership base. | Just last year, Gilead Sciences bought Forty Seven for $4.9 billion and AbbVie inked a deal with Chinese biotech I-Mab that could be worth as much as $2 billion. A challenger in the sequencing market Steve Ditto (Pacific Biosciences of California): Pacific Biosciences of California, known as PacBio, is developing its HiFi DNA sequencing technology to explore whole genomes and make discoveries that have not been possible with other technologies. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jason Hawthorne owns shares of Illumina, Teladoc Health, and Trillium Therapeutics. | Just last year, Gilead Sciences bought Forty Seven for $4.9 billion and AbbVie inked a deal with Chinese biotech I-Mab that could be worth as much as $2 billion. Given Teladoc's fantastic track record of growth, continued successes throughout the pandemic, and rosy financial expectations -- the company is projecting about $2 billion in revenues for the full-year 2021 compared to $1.1 billion in 2020 -- why isn't its share price reflecting these factors? A challenger in the sequencing market Steve Ditto (Pacific Biosciences of California): Pacific Biosciences of California, known as PacBio, is developing its HiFi DNA sequencing technology to explore whole genomes and make discoveries that have not been possible with other technologies. | Just last year, Gilead Sciences bought Forty Seven for $4.9 billion and AbbVie inked a deal with Chinese biotech I-Mab that could be worth as much as $2 billion. CEO Jan Skvarka said its drugs have shown "substantial" anti-tumor activity and have given management a "strong basis" for testing it in solid tumors. ARK exited its entire Illumina position in the ARK Genomic Revolution ETF in 2020 on the belief PacBio and HiFi sequencing would be able to deliver the benefits of long read sequencing at a cost comparable to short read sequencing. | 2a6a3141-6ea2-4bf3-9339-890d6ef70d88 |
23980.0 | 2021-08-02 00:00:00 UTC | Abbott's Subsidiaries Agree To Pay $160 Mln To Settle Alleged False Claims To Medicare | ABBV | https://www.nasdaq.com/articles/abbotts-subsidiaries-agree-to-pay-%24160-mln-to-settle-alleged-false-claims-to-medicare-2021 | nan | nan | (RTTNews) - Arriva Medical LLC and its parent Alere Inc have agreed to pay $160 million to settle allegations that they made, or caused, claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive meters, or patients were deceased, the U.S. Department of Justice said in a statement.
Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida. Alere is a medical device company now based in Abbott Park, Illinois. Alere acquired Arriva in November 2011.
The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere's approval, paid kickbacks to Medicare beneficiaries by providing them "free" or "no cost" glucometers and by routinely waiving, or not collecting, their copayments for meters and diabetic testing supplies.
Specifically, the United States alleged that Arriva advertised that glucometers would be "free," and then during intake calls offered Medicare beneficiaries a "no cost guarantee," under which Arriva would provide the meters at "no cost" if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare.
Arriva also allegedly offered and provided existing customers "free" additional meters to induce them to reorder testing supplies from Arriva.
The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere's approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients' eligibility for one.
The settlement resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. In November 2016, the Medicare program revoked Arriva's Medicare supplier number for doing so.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Arriva Medical LLC and its parent Alere Inc have agreed to pay $160 million to settle allegations that they made, or caused, claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive meters, or patients were deceased, the U.S. Department of Justice said in a statement. Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida. The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere's approval, paid kickbacks to Medicare beneficiaries by providing them "free" or "no cost" glucometers and by routinely waiving, or not collecting, their copayments for meters and diabetic testing supplies. | (RTTNews) - Arriva Medical LLC and its parent Alere Inc have agreed to pay $160 million to settle allegations that they made, or caused, claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive meters, or patients were deceased, the U.S. Department of Justice said in a statement. The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere's approval, paid kickbacks to Medicare beneficiaries by providing them "free" or "no cost" glucometers and by routinely waiving, or not collecting, their copayments for meters and diabetic testing supplies. The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere's approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients' eligibility for one. | (RTTNews) - Arriva Medical LLC and its parent Alere Inc have agreed to pay $160 million to settle allegations that they made, or caused, claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive meters, or patients were deceased, the U.S. Department of Justice said in a statement. Specifically, the United States alleged that Arriva advertised that glucometers would be "free," and then during intake calls offered Medicare beneficiaries a "no cost guarantee," under which Arriva would provide the meters at "no cost" if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare. The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere's approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients' eligibility for one. | Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida. The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere's approval, paid kickbacks to Medicare beneficiaries by providing them "free" or "no cost" glucometers and by routinely waiving, or not collecting, their copayments for meters and diabetic testing supplies. The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere's approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients' eligibility for one. | 12e21a75-ef5f-4132-8fec-6f1b9d664394 |
23981.0 | 2021-08-02 00:00:00 UTC | After Hours Most Active for Aug 2, 2021 : EDU, ABEV, CD, STRA, UBER, AAPL, ABBV, LUMN, CLF, AZN, LBTYK, XLNX | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-for-aug-2-2021-%3A-edu-abev-cd-stra-uber-aapl-abbv-lumn-clf-azn | nan | nan | The NASDAQ 100 After Hours Indicator is down -4.59 to 14,959.03. The total After hours volume is currently 59,070,607 shares traded.
The following are the most active stocks for the after hours session:
New Oriental Education & Technology Group, Inc. (EDU) is unchanged at $2.17, with 23,194,644 shares traded.EDU is scheduled to provide an earnings report on 8/3/2021, for the fiscal quarter ending May2021.
Ambev S.A. (ABEV) is unchanged at $3.23, with 3,785,922 shares traded. ABEV's current last sale is 111.38% of the target price of $2.9.
Chindata Group Holdings Limited (CD) is unchanged at $12.45, with 3,001,075 shares traded. As reported in the last short interest update the days to cover for CD is 9.544839; this calculation is based on the average trading volume of the stock.
Strategic Education, Inc. (STRA) is unchanged at $78.96, with 2,711,018 shares traded. As reported in the last short interest update the days to cover for STRA is 8.679455; this calculation is based on the average trading volume of the stock.
Uber Technologies, Inc. (UBER) is +0.12 at $43.61, with 2,407,094 shares traded.UBER is scheduled to provide an earnings report on 8/4/2021, for the fiscal quarter ending Jun2021. The consensus earnings per share forecast is -0.54 per share, which represents a -102 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.11 at $145.41, with 2,294,460 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $1.23. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
AbbVie Inc. (ABBV) is unchanged at $115.45, with 1,856,028 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range".
Lumen Technologies, Inc. (LUMN) is unchanged at $12.54, with 1,700,110 shares traded.LUMN is scheduled to provide an earnings report on 8/4/2021, for the fiscal quarter ending Jun2021. The consensus earnings per share forecast is 0.43 per share, which represents a 42 percent increase over the EPS one Year Ago
Cleveland-Cliffs Inc. (CLF) is +0.04 at $23.98, with 1,592,076 shares traded. As reported by Zacks, the current mean recommendation for CLF is in the "buy range".
Astrazeneca PLC (AZN) is unchanged at $57.38, with 1,297,418 shares traded. As reported in the last short interest update the days to cover for AZN is 13.569473; this calculation is based on the average trading volume of the stock.
Liberty Global plc (LBTYK) is unchanged at $26.76, with 1,261,814 shares traded.
Xilinx, Inc. (XLNX) is unchanged at $148.98, with 1,171,279 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $0.88. XLNX's current last sale is 101.69% of the target price of $146.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc. (ABBV) is unchanged at $115.45, with 1,856,028 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". New Oriental Education & Technology Group, Inc. (EDU) is unchanged at $2.17, with 23,194,644 shares traded.EDU is scheduled to provide an earnings report on 8/3/2021, for the fiscal quarter ending May2021. | AbbVie Inc. (ABBV) is unchanged at $115.45, with 1,856,028 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". New Oriental Education & Technology Group, Inc. (EDU) is unchanged at $2.17, with 23,194,644 shares traded.EDU is scheduled to provide an earnings report on 8/3/2021, for the fiscal quarter ending May2021. | AbbVie Inc. (ABBV) is unchanged at $115.45, with 1,856,028 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". New Oriental Education & Technology Group, Inc. (EDU) is unchanged at $2.17, with 23,194,644 shares traded.EDU is scheduled to provide an earnings report on 8/3/2021, for the fiscal quarter ending May2021. | AbbVie Inc. (ABBV) is unchanged at $115.45, with 1,856,028 shares traded. As reported by Zacks, the current mean recommendation for ABBV is in the "buy range". Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. | 9e739175-ee21-4773-a5df-8be23154cb77 |
23982.0 | 2021-08-01 00:00:00 UTC | Takeda to record 63 bln yen provision, update Q1 results on Irish tax issue | ABBV | https://www.nasdaq.com/articles/takeda-to-record-63-bln-yen-provision-update-q1-results-on-irish-tax-issue-2021-08-02 | nan | nan | Aug 2 (Reuters) - Takeda Pharmaceutical Co 4502.T said on Monday it will record a provision of about 63 billion yen ($574.56 million) in its financial statements for the first quarter to reflect a decision by Ireland's tax appeals body relating to tax assessment received by company's unit on a break fee.
Takeda said it received "a decision by the Irish Tax Appeals Commission on July 30, 2021 to uphold the Irish Revenue Commissioners' position related to the treatment of a break fee received by Shire plc in October 2014 from AbbVie Inc,".
"First Quarter FY2021 reported IRFS-based financial results will be updated to reflect the impact of the decision with no impact on core and underlying financial results," it said, adding that it will refile the revised information by Aug. 6.
Japan's biggest drugmaker said it plans to challenge this outcome through all available legal means including appealing the decision to the Irish courts.
The company is not revising its forecast for the full fiscal year 2021 and will update the outlook at appropriate timing by taking this decision as well as other factors into consideration.
Shire Plc, which Takeda acquired in 2019, received a tax assessment from the Irish Revenue Commissioners to tax a break fee the company received from AbbVie Inc ABBV.N for terminating its offer to acquire Shire. Takeda had appealed this assessment in 2020.
($1 = 109.6500 yen)
(Reporting by Aakriti Bhalla in Bengaluru; Editing by Kim Coghill)
((Aakriti.Bhalla@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Takeda said it received "a decision by the Irish Tax Appeals Commission on July 30, 2021 to uphold the Irish Revenue Commissioners' position related to the treatment of a break fee received by Shire plc in October 2014 from AbbVie Inc,". Shire Plc, which Takeda acquired in 2019, received a tax assessment from the Irish Revenue Commissioners to tax a break fee the company received from AbbVie Inc ABBV.N for terminating its offer to acquire Shire. Aug 2 (Reuters) - Takeda Pharmaceutical Co 4502.T said on Monday it will record a provision of about 63 billion yen ($574.56 million) in its financial statements for the first quarter to reflect a decision by Ireland's tax appeals body relating to tax assessment received by company's unit on a break fee. | Shire Plc, which Takeda acquired in 2019, received a tax assessment from the Irish Revenue Commissioners to tax a break fee the company received from AbbVie Inc ABBV.N for terminating its offer to acquire Shire. Takeda said it received "a decision by the Irish Tax Appeals Commission on July 30, 2021 to uphold the Irish Revenue Commissioners' position related to the treatment of a break fee received by Shire plc in October 2014 from AbbVie Inc,". Aug 2 (Reuters) - Takeda Pharmaceutical Co 4502.T said on Monday it will record a provision of about 63 billion yen ($574.56 million) in its financial statements for the first quarter to reflect a decision by Ireland's tax appeals body relating to tax assessment received by company's unit on a break fee. | Takeda said it received "a decision by the Irish Tax Appeals Commission on July 30, 2021 to uphold the Irish Revenue Commissioners' position related to the treatment of a break fee received by Shire plc in October 2014 from AbbVie Inc,". Shire Plc, which Takeda acquired in 2019, received a tax assessment from the Irish Revenue Commissioners to tax a break fee the company received from AbbVie Inc ABBV.N for terminating its offer to acquire Shire. Aug 2 (Reuters) - Takeda Pharmaceutical Co 4502.T said on Monday it will record a provision of about 63 billion yen ($574.56 million) in its financial statements for the first quarter to reflect a decision by Ireland's tax appeals body relating to tax assessment received by company's unit on a break fee. | Shire Plc, which Takeda acquired in 2019, received a tax assessment from the Irish Revenue Commissioners to tax a break fee the company received from AbbVie Inc ABBV.N for terminating its offer to acquire Shire. Takeda said it received "a decision by the Irish Tax Appeals Commission on July 30, 2021 to uphold the Irish Revenue Commissioners' position related to the treatment of a break fee received by Shire plc in October 2014 from AbbVie Inc,". Aug 2 (Reuters) - Takeda Pharmaceutical Co 4502.T said on Monday it will record a provision of about 63 billion yen ($574.56 million) in its financial statements for the first quarter to reflect a decision by Ireland's tax appeals body relating to tax assessment received by company's unit on a break fee. | b892694d-c231-4f66-9783-7894fbcb4318 |
23983.0 | 2021-08-01 00:00:00 UTC | 3 Underrated Warren Buffett Stocks That Are Smart Buys Right Now | ABBV | https://www.nasdaq.com/articles/3-underrated-warren-buffett-stocks-that-are-smart-buys-right-now-2021-08-01 | nan | nan | You might think that any stock handpicked by Warren Buffett and his top investment managers would be held in high regard by most investors. However, that's not necessarily the case.
Several stocks in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio are either beaten down, have bargain valuations, or both. But the Oracle of Omaha sees something in them that many investors seem to be missing. Here are three underrated Buffett stocks that are smart buys right now.
Image source: The Motley Fool.
AbbVie
The average pharmaceutical stock in the S&P 500 trades at more than 14 times expected earnings. And that's well below the 21.4 forward price-to-earnings ratio for overall index. That context is important to understand just how cheap AbbVie (NYSE: ABBV) is with its shares trading below 9.5 times expected earnings.
AbbVie was one of several big pharma stocks that Buffett scooped up for Berkshire last year. An attractive valuation wasn't its only draw, though. The drugmaker also offers a juicy dividend yield (which currently stands at 4.4%). AbbVie is only one dividend hike away from joining the club of Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases.
So why is AbbVie underrated by investors? It's mainly because the company faces biosimilar competition for Humira in the U.S. beginning in 2023. Humira ranks as AbbVie's top-selling drug and generated 43% of its total revenue last year.
However, the company has two newer immunology drugs, Rinvoq and Skyrizi, that it thinks will largely pick up the slack from Humira. AbbVie expects a brief overall revenue decline in 2023 followed by a quick return to growth the following year. With its strong dividend, this Buffett stock could easily generate market-beating returns over the next decade.
StoneCo
StoneCo (NASDAQ: STNE) lost 20% of its market cap during the first half of 2021. The Brazilian fintech stock is now down more than 30% year to date.
Unlike AbbVie, StoneCo isn't cheap by any stretch of the imagination. Actually, the stock is pretty much priced for perfection. Unfortunately, StoneCo fell short of perfection with its last two quarterly earnings updates, coming in below analysts' estimates.
The COVID-19 pandemic negatively affected StoneCo's business. However, the easing of restrictions in Brazil spurred a rebound beginning in the second quarter. StoneCo CEO Thiago dos Santos Piau thinks that the scale-up of vaccinations in the second half of this year should fuel an even stronger recovery.
StoneCo's long-term opportunity is as strong as ever. The growth prospects for its digital payments business in Brazil are huge. StoneCo's recent investment in and partnership with Brazilian digital bank Banco Inter gives the company even more opportunities.
Verizon Communications
Verizon Communications (NYSE: VZ) has lagged well behind the overall market so far this year, with its shares down close to 5%. The telecom stock is also relatively cheap with a forward earnings multiple of 10.6.
Buffett increased Berkshire's stakes in only four companies during the first quarter of this year. Verizon was one of them, with Berkshire buying 8.3% more shares than it owned at the end of 2020.
The telecom giant's dividend was no doubt appealing to Buffett. Verizon's dividend yield currently stands at nearly 4.5%. But don't overlook the company's growth prospects.
5G wireless networks could present a massive opportunity for Verizon. The company's 5G Home service could be quite attractive to customers looking for a cost-effective wireless connection that in some cases is even faster than cable broadband.
Verizon might not be one of the most exciting Buffett stocks. However, it seems to be an underrated one right now that could be a winner over the long run.
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Keith Speights owns shares of AbbVie and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Stoneco LTD. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie The average pharmaceutical stock in the S&P 500 trades at more than 14 times expected earnings. That context is important to understand just how cheap AbbVie (NYSE: ABBV) is with its shares trading below 9.5 times expected earnings. AbbVie was one of several big pharma stocks that Buffett scooped up for Berkshire last year. | AbbVie The average pharmaceutical stock in the S&P 500 trades at more than 14 times expected earnings. That context is important to understand just how cheap AbbVie (NYSE: ABBV) is with its shares trading below 9.5 times expected earnings. AbbVie was one of several big pharma stocks that Buffett scooped up for Berkshire last year. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie and Berkshire Hathaway (B shares). AbbVie The average pharmaceutical stock in the S&P 500 trades at more than 14 times expected earnings. That context is important to understand just how cheap AbbVie (NYSE: ABBV) is with its shares trading below 9.5 times expected earnings. | AbbVie The average pharmaceutical stock in the S&P 500 trades at more than 14 times expected earnings. That context is important to understand just how cheap AbbVie (NYSE: ABBV) is with its shares trading below 9.5 times expected earnings. AbbVie was one of several big pharma stocks that Buffett scooped up for Berkshire last year. | 77e33f28-32ce-479b-8035-081aaed9a9e9 |
23984.0 | 2021-07-31 00:00:00 UTC | AbbVie (ABBV) Q2 2021 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q2-2021-earnings-call-transcript-2021-07-31 | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q2 2021 Earnings Call
Jul 30, 2021, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. Thank you for standing by, and welcome to the AbbVie second-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations.
Ma'am, you may proceed.
Liz Shea -- Vice President of Investor Relations
Good morning and thanks for joining us. Also on the call with me today are Rick Gonzalez, chairman of the board and chief executive officer; Michael Severino, vice chairman and president; Rob Michael, executive vice president and chief financial officer; and Jeff Stewart, executive vice president, commercial operations. Joining us for the Q&A portion of the call is Laura Schumacher, vice chairman, external affairs, chief legal officer, and corporate secretary. Before we get started, I remind you that some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance.
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These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website. Unless otherwise noted, our commentary on sales growth is on a comparable basis, which includes full current year and historical results for Allergan. For this comparison of underlying performance, all historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and exclude the divestitures of Zenpep and Biohaven. References to operational growth further exclude the impact of exchange.
Following our prepared remarks, we'll take your questions. So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Thank you, Liz. Good morning, everyone and thank you for joining us today. I'll discuss our second-quarter performance and outlook. And then Jeff, Mike and Rob will review our business highlights, pipeline progress and financial results in more detail.
AbbVie delivered another excellent quarter with adjusted earnings per share of $3.11, exceeding the midpoint of our guidance by $0.04. Total adjusted net revenues of nearly $14 billion were up 19.3% on a comparable operational basis, approximately $375 million ahead of our expectations. These results demonstrate our strong and balanced performance across each of our major growth franchises, including double-digit comparable operational revenue growth from immunology, hem/onc, neuroscience and aesthetics. Looking at the most recent trends, the vast majority of our portfolio is well into the recovery phase from the pandemic.
In immunology, we continue to see strong recovery across the room, derm and gastro segments with positive trends across all key indicators, including new patient starts. skyrizi and rinvoq continue to ramp nicely in their initial indications with both products demonstrating robust double-digit sequential revenue growth. In neuroscience, vraylar is demonstrating strong new prescription volume in the atypical antipsychotic market and the launch of ubrelvy, the leading oral CGRP for acute migraine, continues to exceed our expectations. Aesthetics continues to perform well above pre-COVID levels, exceeding our internal expectations.
We're pleased with the rapid market growth in both toxins and fillers driven by our increased promotional resources globally, brand strength and COVID-related pent-up demand. Rapidglobal marketdemand is expected to remain well above historical levels in the near to medium term. and we are raising our full-year guidance once again for aesthetics. While the recovery across the AbbVie portfolio is going very well in aggregate in certain disease areas like CLL and HCV we continue to see a residual impact from the pandemic.
We expect these specialty areas to further recover as the year progresses. One of AbbVie's greatest strengths is the dedication and engagement of our people. Across AbbVie, the majority of our employees have safely returned to the workplace, and our field teams are now predominantly conducting live engagements with physicians and customers where protocols and guidelines permit. I'm extremely proud of the teamwork and collaboration our people have demonstrated throughout this pandemic to bring our medicines to patients and keep our business performing at a strong level.
As an organization, we have also made a tremendous amount of progress with the Allergan transaction and integration. We just recently completed our first full year as a combined company, which I'd say has gone exceptionally well. We're tracking well against the operational and financial commitments we outlined at the time of the transaction with accretion performing above our original projections. But I'm particularly pleased with the robust revenue performance that we've been able to drive since acquiring Allergan, with 2021 sales tracking to grow significantly faster than legacy Allergan's historical performance.
Our results continue to show that we have created a stronger and much more diverse company with numerous products within our newly combined portfolio delivering robust growth. Based on the continued strong momentum of our business in the quarter and our progress year to date, we are once again raising our full-year 2021 EPS guidance. We now expect adjusted earnings per share of $12.52 to $12.62, reflecting growth of 19% at the midpoint. Our strong performance allows us to continue to fully invest in the business for long-term growth.
As you'll hear from Mike momentarily, we continue to make excellent progress across all stages of our research and development programs. In closing, I'm extremely pleased with our performance in the quarter and with our continued strong momentum of the business. which has positioned us well for the remainder of 2021 and many years to come. With that, I'll turn the call over to Jeff for additional comments on our commercial highlights.
Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Thank you, Rick. I'll start with immunology, which delivered global revenues of more than $6.1 billion, reflecting growth of 13.8% on an operational basis. skyrizi and rinvoq continue to have significant impact on AbbVie's growth and performance, contributing more than $1 billion in combined sales this quarter. skyrizi global revenues were up 17.4% on a sequential basis, reflecting increasing market share globally.
In the U.S., skyrizi continues to perform well and has maintained its leading in-play psoriasis patient share, which includes both new and switching patients at approximately 34%. skyrizi total prescription share capture is now approaching 20%, second only to Humira. Internationally, skyrizi has achieved in-play patient share leadership in 13 markets, including Canada, France and Japan. rinvoq is also demonstrating robust growth with global sales up nearly 25% on a sequential basis.
We continue to see in-play patient share of approximately 15% in the U.S. RA market. where physician and patient feedback remain very positive on rinvoq strong benefit risk profile. Internationally, rinvoq access and share continue to ramp nicely in RA with in-play market leadership now in half a dozen key countries.
We are also making excellent progress with the regulatory approval and commercial launch of PSA and AS across several OUS countries. And we look forward to the approval and commercialization of rinvoq in atopic dermatitis later this year following the recent CHMP positive opinion for both the 15 and 30-milligram doses. Humira global sales were approximately $5.1 billion, up 3.6% on an operational basis with continued high single-digit revenue growth in the U.S. offset by biosimilar competition across the international markets, where revenues were down 12.6% on an operational basis.
In hematologic oncology, sales were approximately $1.8 billion, up 13.2% on an operational basis. AbbVie maintains a strong leadership position in CLL with a combined portfolio including both imbruvica and venclexta, new patient share of approximately 42% and total patient share of approximately 72% across all lines of therapy. Imbruvica global revenues were approximately $1.4 billion, up 7.2%. In the U.S., performance continues to be impacted by lower new patient starts in CLL, which remain below pre-COVID levels as well as increasing competitive dynamics from newer therapies, including venclexta and other BTK inhibitors.
Venclexta sales increased 38.3% on an operational basis with strong demand across all approved indications. We're particularly pleased with the performance in AML with robust share in the U.S. and increasing momentum internationally following recent approvals in the EU and Asia. In neuroscience, revenues were more than $1.4 billion, up 29.6% on a comparable operational basis.
We continue to see strong momentum with vraylar, which recently achieved multiple all-time highs in weekly prescriptions and market share. Vraylar revenues of $432 million were up more than 25% on a comparable operational basis. And ubrelvy once again delivered robust results. Sales of our leading acute migraine treatment were $126 million, exceeding our expectations.
Feedback from physicians remains very positive, highlighting ubrelvy rapid and sustained pain relief, safety, convenient and flexible dosing profile and overall commercial access. Ubrelvy is now capturing roughly 9% of new prescriptions in the large acute migraine market with more than 1 million cumulative total prescriptions since the launch. We continue to believe there is substantial room for long-term growth in this rapidly expanding acute market based on unmet need and strong patient demand. In migraine prevention, we've also been planning and preparing for the forthcoming regulatory approval and commercial launch of atogepant, our oral CGRP for episodic migraine.
We are very encouraged with the efficacy profile of atogepant, including reduction in migraine days versus placebo as well as the overall percentage of responder rates in patients. Now the launch of atogepant will be supported by our existing migraine sales force with commercial access expected to ramp strongly. We remain on track for a U.S. regulatory decision in September.
Botox Therapeutics continues to perform well across nearly a dozen medical indications with a total sales of $603 million, up more than 38% on an operational basis. In chronic migraine, Botox Therapeutic remains a foundational prevention treatment and the clear branded leader in new patient starts. Lastly, in our other therapeutic areas, we saw significant contribution from Eye Care, which had revenues of $919 million, up 24.1% on a comparable operational basis, Mavyret sales were $442 million, up 13.9% on an operational basis, although treated patient volumes remain suppressed versus pre-COVID levels. And we also saw double-digit comparable operational revenue growth for both Creon and Linzess.
So overall, I'm pleased with the momentum of our therapeutic portfolio, which is demonstrating a strong recovery as well as our progress with new recent product launches. And with that, I'll turn the call over to Mike for additional comments on our R&D programs. Mike?
Mike Severino -- Vice Chairman and President
Thank you, Jeff. I'll start with immunology, where we had several notable pipeline events in the quarter. In the area of inflammatory bowel disease, we reported positive top-line results from the Phase 3 maintenance studies for rinvoq in ulcerative colitis and skyrizi in Crohn's disease. In the rinvoq UC maintenance study, both the 15- and 30-milligram doses met the primary and all secondary endpoints at week 52.
In the induction portion of the program, rinvoq demonstrated a very strong impact on the disease. And the results from this maintenance study demonstrate that patients continuing treatment with rinvoq maintain high levels of clinical remission, clinical response and endoscopic improvement at the 1-year mark. In fact, maintenance treatment with either dose of rinvoq resulted in some of the highest rates of remission and endoscopic improvements seen in UC clinical studies. With the 30-milligram rinvoq dose, 52% of patients achieved clinical remission, 62% achieved endoscopic improvement, 49% achieved histologic endoscopic mucosal improvement and 68% achieved steroid-free remission.
We are very pleased with how rinvoq performed from a safety perspective as well. In this maintenance study, the exposure adjusted event rates for overall adverse events, including serious and severe events, were higher in the placebo group than in either rinvoq dose group. Additionally, the exposure adjusted rates for Mace, VTE and malignancies excluding non-melanoma skin cancer were comparable between rinvoq group and placebo. These results provide further evidence that rinvoq has the potential to become a highly effective therapy for patients with moderate to severe ulcerative colitis.
We're also nearing completion of the Crohn's disease program for rinvoq and expect to see data from the first Phase 3 induction study later this year. Results from the second induction study and the maintenance study are expected in the first half of next year with regulatory submissions also anticipated in 2022. We also saw very impressive results from skyrizi in the maintenance phase of our Crohn's disease program, particularly with the 360-milligram maintenance dose, which met the co-primary endpoints of clinical remission and endoscopic response versus the withdrawal arm at week 52. Importantly, when we look at the most stringent end points, we see strong separation between skyrizi 360 milligrams and control, with the response rates of 39% for endoscopic remission and 29% for deep remission compared to 13% and 10% for the withdrawal group at week 52.
We remain on track to submit our regulatory applications for rinvoq in UC and skyrizi in Crohn's in the coming months. In the quarter, we also announced updates regarding our regulatory applications for rinvoq in atopic dermatitis, psoriatic arthritis and ankylosing spondylitis. In June, rinvoq received a positive CHMP opinion in Europe, recommending both the 15-milligram and 30-milligram doses in moderate to severe atopic dermatitis. This CHMP opinion puts us on track for European approval in August.
When approved, atopic dermatitis will be the fourth indication for rinvoq in Europe. Regarding our supplemental NDAs in the U.S., we recently announced that we were notified by the FDA that they would not need our PDUFA action dates for rinvoq in psoriatic arthritis and closing spondylitis and atopic dermatitis, which were in late June for psoriatic arthritis and AS and mid-July for atopic dermatitis. The agency cited their ongoing review of the tofacitinib oral surveillance study, indicated that they -- indicating that they needed more time to complete their reviews of the data. The FDA has not requested any additional safety analysis for rinvoq since the PDUFA dates were missed.
While there are no new action dates, based on our discussions with the agency, we expect decisions on our regulatory applications in the next few months following completion of the agency's review of the tofacitinib oral surveillance data. We remain confident in the benefit risk profile for rinvoq across all indications, and we'll continue to work with the FDA to bring rinvoq to market in these new disease areas. In our early stage immunology pipeline, we recently began 2 new trials for ABBV-154, our TNF steroid conjugate. We initiated a definitive dose-ranging study in patients with RA and also started our Phase 2 study in polymyalgia rheumatica.
Later this year, we expect to begin the Phase 2 study for 154 in Crohn's disease. Also in the quarter, we completed the induction stage of a Phase 2 proof-of-concept study evaluating Ravagalimab in ulcerative colitis patients. While this CD40 antagonist demonstrated greater efficacy compared to historical control, the efficacy results did not meet our prespecified criteria. As a result, we will not be advancing Ravagalimab in ulcerative colitis.
In oncology, we continue to make good progress across all stages of our pipeline. At the recent ASCO and EHA meetings, data were presented from the GLOW and CAPTIVATE studies, evaluating a fixed duration imbruvica and venclexta regimen in CLL patients. Results from these 2 studies demonstrated that the all-oral, fixed duration imbruvica plus venclexta regimen has the potential to provide deeper and more durable remission and extend progression-free survival as a frontline treatment across the spectrum of age and fitness status for CLL patients. We plan to submit these data to regulatory agencies and look forward to bringing this new fixed duration treatment option to CLL patients once approved.
Earlier this month, we received a breakthrough therapy designation for venclexta in combination with azacitidine for previously untreated higher-risk MDS patients based on the strong data demonstrated thus far in our ongoing Phase 1b study. We expect to see final results from this study in the coming months and plan to discuss the data with regulators regarding the potential to support an accelerated approval for venclexta in MDS. Also in the quarter, we saw interim results from a Phase 1 study evaluating the BCMA CD3 bispecific antibody, TNB-383B, in multiple myeloma patients who have received at least three prior lines of therapy. 383 performed very well as a monotherapy in these heavily pretreated patients, demonstrating an objective response rate of nearly 80% and a very good partial response or better rate of 63% and a complete response rate of nearly 30% at doses greater than 40 milligrams in the dose escalation cohort.
Based on these promising results, we exercised our right to acquire TNB-383B from Teneobio. We expect the transaction to close in the coming months, and we'll provide more information on our development plan for 383 in multiple myeloma later this year. This is a highly competitive area. But based on the data to date, we believe this BCMA CD3 bispecific has the potential to be differentiated on efficacy, safety and dosing interval and could be best-in-class as both a monotherapy and combination therapy across lines of treatment in multiple myeloma.
We continue to make good progress with the navitoclax program in myelofibrosis, which consists of randomized Phase 3 trials in both the frontline and relapsed/refractory setting as well as a single-arm Phase 2 study. Based on feedback from the FDA, we intend to submit our regulatory application with randomized Phase 3 data, together with the Phase 2 trial results. We expect the Phase 3 data readout and regulatory submissions in the second half of 2022 with navitoclax approval in myelofibrosis anticipated in 2023. In neuroscience, we recently completed the Phase 2 proof-of-concept studies for two assets, Elezanumab in multiple sclerosis and ABBV-8E12 in Alzheimer's disease.
In their respective studies, either asset met the efficacy endpoints of the trial. And we will be discontinuing the development of Elezanumab in MS and 8E12 in Alzheimer's disease. Given the enormous unmet need in Alzheimer's disease, we remain committed to finding disease-modifying therapies, and we continue to pursue a range of approaches. We have several additional programs that are either in the clinic today or are in preclinical development.
These include programs that modulate the neuroinflammatory response in Alzheimer's disease, such as our TREM2 and CD33 programs that are both in clinical development and programs that target pathologic through novel mechanism such as approaches that target intracellular aggregates for clearance that are in preclinical development. Following the accelerated approval of aducanumab in the U.S. there has been an increased focus on A beta directed programs. We have monitored this area closely over the last several years.
And based on all of the available data, we believe there is a continued opportunity for an A beta directed monoclonal antibody that clears plaque more rapidly than existing agents with a reduced risk of amyloid-related imaging abnormalities or ARIA. We have profiled a number of A-beta antibodies preclinically, and we have a candidate with the potential to meet these requirements. We expect to introduce this candidate into the clinic by the end of this year or early next year. Also in neuroscience, we're nearing completion of our registrational program for ABBV-951 in advanced Parkinson's disease.
We recently completed an interim analysis in the first of two Phase 3 studies were our subcutaneous levodopa/carbidopa delivery system demonstrated safety and efficacy comparable to DUOPA after six months of treatment. The primary objective of this trial was safety, but efficacy was also evaluated as secondary endpoints. In this analysis, 951 performed very well, demonstrating a 52% reduction in normalized off-time and a 41% increase in normalized on-time without troublesome dyskinesia. Patients also benefited from 951 24-hour continuous levodopa-carbidopa infusion, with patients experiencing substantial benefits in sleep and reduction in morning off-time.
Full data from the six month interim analysis will be presented at a medical meeting later this year. Data from a second Phase 3 study are expected in the fourth quarter with our regulatory submissions anticipated later this year or early next year. And lastly, in eye care, at the recent meeting for the American Society for Cataract and Refractive Surgery, we presented results from the Phase 3 Gemini 1 study, evaluating our topical eye drop, AGN-190584, for the treatment of symptoms associated with presbyopia. In this study, 584 demonstrated improved near vision without impacting distance vision with a rapid onset of action within 15 minutes and sustained vision improvements for up to six hours.
584 has the potential to be convenient, on-demand solution for patients with mild to moderate presbyopia, and we look forward to an approval decision later this year. So in summary, we've made great progress with our pipeline in the first half of this year. and we look forward to several additional data readouts, regulatory submissions and approvals throughout the remainder of 2021. With that, I'll turn the call over to Rob for additional comments on our second-quarter performance and financial outlook.
Rob?
Rob Michael -- Executive Vice President, Chief Financial Officer
Thank you, Mike. Starting with second-quarter results. We reported adjusted earnings per share of $3.11, up 32.9% compared to prior year and above our guidance midpoint. Total adjusted net revenues were nearly $14 billion, up 19.3% on a comparable operational basis, excluding a 1.6% favorable impact from foreign exchange.
The adjusted operating margin ratio was 49.7% of sales, an improvement of 260 basis points versus the prior year. This includes adjusted gross margin of 82.2% of sales, adjusted R&D investment of 11.3% of sales and adjusted SG&A expense of 21.2% of sales. Net interest expense was $606 million, and the adjusted tax rate was 12.6%. As Rick previously mentioned, we are raising our full-year adjusted earnings per share guidance to between $12.52 and $12.62, reflecting growth of 19% at the midpoint.
Excluded from this guidance is $6.48 of known intangible amortization and specified items. This guidance now contemplates full-year revenue growth of 10.7% on a comparable operational basis. At current rates, we now expect foreign exchange to have a 0.9% favorable impact on full-year comparable sales growth. This implies a full-year revenue forecast of approximately $56.3 billion.
Included in this guidance are the following updated full-year assumptions: We now expect aesthetics global revenue of approximately $4.9 billion, including approximately $2 billion from Botox Cosmetic and approximately $1.4 billion from Juvederm. We now expect Restasis sales of approximately $1.1 billion and assume no generic competition in 2021. For ubrelvy, we now expect sales of approximately $500 million. For women's health, we now expect global revenue of approximately $900 million.
And for Mavyret, we now expect global sales of approximately $1.9 billion. Looking at the P&L for 2021. We are now forecasting adjusted R&D investment of approximately $6.7 million and adjusted SG&A expense of approximately $11.9 million. All other full-year assumptions remain unchanged.
As we look ahead to the third quarter, we anticipate net revenue of approximately $14.3 billion. At current rates, we expect foreign exchange to have a 0.5% favorable impact on comparable sales growth. We expect adjusted earnings per share between $3.18 and $3.22, excluding approximately $1.64 of known intangible amortization and specified items. Finally, we continue to make great progress on our Allergan transaction commitments.
We are exceeding our revenue expectations in several areas, including Botox, vraylar, ubrelvy and Eye Care. We have also delivered expense synergies of almost $800 million during the first half of this year and are on track to deliver synergies of approximately $1.7 billion in 2021 and greater than $2 billion in 2022. And we have already paid down $12 billion of combined company debt. We expect to achieve $17 billion of cumulative debt pay-down by the end of this year with further deleveraging through 2023.
This will bring our net leverage ratio to 2.4x by the end of 2021 and approximately two times by the end of 2022. In closing, AbbVie has once again delivered outstanding performance, and we are very pleased with the strong momentum of the business heading into the second half of the year. With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President of Investor Relations
Thanks, Rob. We will now open the call for questions. In the interests of hearing from as many analysts as possible over the remainder of the call, we ask that you please limit your questions to one or two. Operator first question please.
Questions & Answers:
Operator
Our first question is from Vamil Divan with Mizuho Securities. Your line is now open, sir.
Vamil Divan -- Mizuho Securities -- Analyst
Great. Thanks very much for taking my question. So maybe 2, if I could. So one, Rick, you mentioned you have several of the Allergan products maybe doing better than your expectations.
Can you maybe -- I mean, I know you want to sort of share your secret sauce, but in terms of what is it that you've noticed that has helped to drive those products? Because it seems like it's pretty much across the board from aesthetics to vraylar, ubrelvy. So is it around promotion efforts? Is it around sort of payer dynamics? What -- anything you could share would be helpful there. And then the second one on imbruvica. I just want to confirm, I think you guys said that the new patient share across all indications now is 42%.
So I just want to see you guys are in line with when you expect at this point. Obviously, there's been questions around some of the competitors that have entered the market. And maybe you can just talk about the patients who are not studying on imbruvica? Sort of what are you seeing as the reasons why they might be choosing a competitor. Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Yeah. Vamil, this is Rick. I'll cover a certain part of the first question, and maybe I'll ask Jeff to jump in and cover any additional thoughts that you might have. I think as you look at this business, one of the things that I think AbbVie is sort of known for is that we tend to operate in a very focused and disciplined way especially across what we consider to be growth range.
We expect every one of our major businesses to develop plans to be able to maximize the value of their assets, both from a strategic and long-term basis but also from a short-term tactical basis. And I'll use aesthetics as the example. Early on, we made the decision that we were going to fully integrate the aesthetics business to make sure that it had the focus and attention they needed because we believe this business had a significant opportunity to be able to grow. We did that globally.
So if you look at Allergan in the past internationally, those people representing those products also had to represent eye care and other therapeutic products. So we moved those out into the therapeutic areas of AbbVie internationally and solely dedicated the aesthetics group internationally to just their products. And then in the U.S., we operate with a similar structure and a fully integrated R&D organization that's totally committed to just developing aesthetics products and it reports directly to Mike. And then the head of the business for aesthetics reports directly to me.
And we had them develop a plan that they are now executing against to be able to deliver against that. So I think it's really 3 aspects of it from my perspective. It's one, the structure we put in place, and that was a thoughtful, planned out structure. Two, it's the disciplined processes that we use to be able to execute across all of our businesses.
And then third, I'd say we have consistently invested and we do invest in businesses that we think have the opportunity to be able to drive long-term growth and performance in a way that we can drive that at maximum speed. And certainly, as you look at aesthetics, we've increased the investment in SG&A and we've increased the investment in R&D. Jeff, anything you'd add?
Jeff Stewart -- Executive Vice President, Commercial Operations
I think, Rick, the -- I would agree. I think a big piece is the level of the investment. So as we looked at the -- particularly the neuroscience compounds, vraylar and ubrelvy, we were able to structure the sales forces a little differently, which was important from commercial execution and also really upgrade and drive some of the investment around patient activation. So I think that all of these brands are spectacular brands, leadership position.
And when we got that investment profile right, we've seen the response. So nothing to add beyond that. Going back to your question on the hematology share, the 42% that I referred to was the combined AbbVie share. So that's imbruvica plus venclexta across all lines of CLL.
So if you take a look -- if I give you a little bit more color on the latest data that we have, for example, in frontline, we have 35% total AbbVie share, which is made up around 24% for imbruvica and 11% for venclexta. For second-line share, for example, we have a 48% total AbbVie position, which is approximately 33% for imbruvica and 15% for venclexta. So both of these brands are now operating at a very significant share level across CLL. I'll give you some more thoughts as you asked for in terms of color in the market.
Beyond that leadership level that we have across the CLL indication, we do see that the CLL market is still suppressed. So for example, patient starts year to date are down in the high single digits. And even within the quarter, they were down in the low single digits. We see that improving.
And so that outlook looks to improve over the second part of the year. In terms of overall share dynamics, over the last several quarters, we have lost a few share points to Calquence within the range of our expectations as they've ramped with their CLL ramp. But also interesting, we've seen that there's been some share increases in monotherapy CD20, which we think is also a COVID type of effect that will ultimately revert back to normality as we go along through the pandemic. So overall, the franchise is performing very, very well.
And as you heard from Mike, we're tremendously excited about the future of the hem/onc franchises than before.
Rob Michael -- Executive Vice President, Chief Financial Officer
And Vamil, this is Rob. I'm going to come back to your first question. Just one more thing we should mention is we've been able to really leverage our international infrastructure. And so we set up this business.
We have the aesthetics franchise focused fully internationally on that business, whereas Allergan had combined with therapeutics. So we've been able to bring that focus in the level of investment. I think we've also been able to leverage our market access prowess. So we're very strong across the globe.
And so when you think about the opportunities for us going forward, I think international certainly plays a big role as we leverage the Allergan business.
Liz Shea -- Vice President of Investor Relations
Thanks, Vamil. Operator, next question please.
Operator
Thank you for your question. Our next question is from Chris Schott with J.P. Morgan. You may ask your question.
Chris Schott -- J.P. Morgan -- Analyst
Great. Thanks so much. Just another one on aesthetics. Obviously, some incredibly strong numbers here.
Can you just elaborate a little bit more on sustainability of this growth? So I guess I'm just trying to get a better sense of how much of what we're seeing right now is catch up as we exit lockdowns versus a more sustained step-up in sales going forward? Just any color on that would be appreciated. My second question was rinvoq in UC. Can you just help put some of this data into context as you think about the competitive landscape and particularly relative to what you had anticipated in your long-term guidance for this indication? I think you had about $1 billion in IBD sales by 2025. And if not, we've seen more of this data set.
Just how comfortable are you feeling with that target and ultimately, the role rinvoq is going to play in this space. Thanks so much.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Hey, Chris. This is Rick. I'll take the aesthetics question, and then Mike and maybe cover the second question to add. So it's a great question, and it's one that we have been looking at very carefully.
I mean if you just step back and you look at the performance of the business, we've done a number of things to try to drive the business. We believe this business is significantly underpenetrated. When you look at the available patient population here and your ability to drive long-term penetration, it's tremendous. And so that's why we've done the things that we've done to try to drive that demand.
Globally, the aesthetics sales were up 31%. If you look at the U.S. toxin and filler business, the market is up about 40% versus 2019. So -- but it's hard to evaluate.
I can tell you the vast majority of it is driven by fundamental demand, and we can see that through the funnel that we see patients coming in and how many of them are activated to go get procedures. But we just conducted a fairly robust market research study to try to understand how much of it was COVID related. And we look at things like how many of those patients got stimulus checks, how many of them were affected from an employment standpoint and are now back at work. I'd say that study, if you looked at the data in that study, the conclusion that you would draw from that is very little of it is COVID related.
Now I think the flaw is this. Most patients are not going to say they use stimulus money for these kinds of procedures or other kinds of things. So I think to the best of our ability, what I would tell you is about two-thirds of the performance, I think, is fundamental demand and maybe one-third of it is pent-up demand. We're going to need a couple more quarters, I think, to see how that plays out.
But I'd say that's our best assessment right now. So very robust growth either way but -- and it could sustain a little bit better than that. But I think you can pretty well count on two-thirds of it being fundamental demand that's sustainable longer term. Mike?
Mike Severino -- Vice Chairman and President
I'll take the question on rinvoq UC. What I would say is the data that we have seen from rinvoq UC has exceeded our expectations from an efficacy perspective. And the results there are very strong. UC has been very difficult to pharmacologically and getting high rates of remission and response has been challenging and both has delivered those results now across a number of studies.
And I think from a safety perspective, it's also performed very well. I commented in my prepared remarks the fact that overall rates of AEs, serious AEs are actually lower than now the reason for that, that many of these are driven by and with an improvement in the disease, you do see them improve as well. And with respect to events and interest, the safety profile has looked very, very well and other interest rates have been comparable to controls. And so overall, we feel very confident in that.
We just feel very confident a long-term guidance that we put out. One thing that's important to keep in mind is that long-term guidance is 2025 guidance. And our IBD assets will be in relatively early stages of launch by 2025. But the profiles that I've talked about, not only for rinvoq but also for skyrizi bode well not only for that 2025 guidance but for the long-term growth of a significant opportunity there as well.
Liz Shea -- Vice President of Investor Relations
Thanks, Chris. Operator, next question please.
Operator
Thank you. Our next question will be from Ronny Gal with Bernstein. You may ask your question, sir.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Good morning and thank you for taking the question. First one is on ABBV-951. You've mentioned the efficacy rates. I was wondering if you can talk a little bit about the skin safety profile as compared to the NeuroDerm product or the apomorphine IV from Europe, especially when it comes to some more severe effects like abscess.
The second question is staying with the pipeline is a little bit about your A beta. It didn't take long for you guys to walk into that. I was kind of wondering if you can talk a little bit about the science that you're discovering. Is the right approach to get to the best effect with minimal side effects to try to remove as much plaque as possible in a very targeted manner? Or should the approach be to go after soluble abrogate and approach the removal of plaque indirectly.
Mike Severino -- Vice Chairman and President
OK. So this is Mike. I'll take both of those questions. With respect to 951, we'll publish full data from the Phase 3 study that I described at a medical meeting and then ultimately in peer-reviewed journals as well.
But what I can say is the skin safety has looked good to our eye and is within our expectations, well within our expectations. As one would expect with the cutaneous device, there are some local reactions, but those have generally been mild and resolved with continuing treatment. We've not seen significant issues with more severe types of skin. We feel good about the safety profile.
And we think the patient-friendly aspects of subcutaneous delivery that has some parallels to an insulin pump-like device will be a real advantage here because it allow patients to get that DUOPA-like efficacy that's transformative without the need for placement of a gastric tube that's and very, very difficult to manage. And so we feel very good about the potential for 951. With respect to A beta, I think if one looks at all of the data, it's quite clear that if you can remove plaque rapidly, then there will be a benefit. And the key parameter that we would need to see is deep reductions in the level of plaque and rapid reductions in the level of plaque because you won't start to see a cognitive benefit, we believe, until you get to that amyloid negativity level by PET, which is -- until you reduce patients at that level.
So the goal would be to get them there as rapidly as possible and to do that while minimizing the impacted area. And we think that, that can be done through epitope selection. There are slight differences in the amyloid forms that are present in vessel wall compared to plaque. And with appropriate epitope selection, we believe and our preclinical data would support that you can do that with reduced risk of area.
And of course, we now need to see whether the clinical data support that as well. But those are the basic principles that we're following. We've obviously had these candidates before the aducanumab approval because, as I said, we've been monitoring this area quite closely. But we think this is a good time to advance those candidates and to determine whether the science I described plays out in the clinic.
But our approaches with respect to A beta are based on plaque, not soluble forms.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Ronny. Operator, next question please.
Operator
Thank you. Our next question is from Andrew Baum with Citi. You may ask your question.
Andrew Baum -- Citi -- Analyst
Many thanks. A couple of questions for Jeff. Firstly, on the outlook for rebating and oncology. This is somewhat of a novelty at least historically.
I note that ESI excluded Calquence from their formulary. There's obviously increased therapeutic competition in the space. How should we be thinking about the rebating outlook in oncology going forward more broadly? Second, on the U.S. payer mix through COVID and now in the recovery stage, could you outline the magnitude of which you've had to increase and then decrease the Medicaid component and the patient assistance programs or whether you're seeing that improvement or some sense of scale and direction there?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. Thank you, Andrew. And to start with oncology, I mean, largely, as you know, the rebating has been done through the sort of the GPO channel. And particularly with the physician in-office dynamics that are in that sector.
We don't see significant rebating happening at the PBM level. And if it is, it's quite modest. I think the -- certainly, from the ESI standpoint that you highlighted, that was an ESI decision. That was not certainly something that AbbVie approach the -- that particular payer with any sort of deal.
Our philosophy is that these drugs are very important for oncologists to have basically open access for all of these agents. So I think it is something that we've seen some of these lights that have started to turn on, but they've been quite modest. And I don't think that they're going to be super accelerant that we should be overly worried about. That's my position on that.
I think the second approach in terms of -- sorry, that was the question on the magnitude of the Medicaid. Yes, this has been quite interesting. We've seen certainly on all of the data, the fact that the enrollment in Medicaid has gone up. When we look across our businesses at, let's say, acute channel shifts in terms of the utilization, they're relatively modest.
They're there. So we don't see massive movements around our channel shifting that linked to the magnitude of what you might see in terms of the enrollments. So it's relatively modest, certainly manageable. And I think, certainly, as we see the jobs positioned to come back and that could be quite strong, I think we'll see any modest movement will be corrected over the next several quarters.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
This is Rick. The only thing I'd add to the second question is so we have a very extensive and I would say generous PAP program in place that's really designed to ensure that patients who can't afford our medicines have the ability to be able to access those medicines free of charge in many cases. And as an example, 99% of the applications we get for uninsured patients we approve. We actually just increased the program to 600% of the federal poverty level across all of our brands.
And so it's a program that I think is designed to fulfill the mission that I just described, and that is that patients who need our medicines can get them from us if they can't afford to pay for them whatever system that they operate in. And -- but we have not seen -- and much to our surprise, we have not seen that program increase dramatically even through COVID. And we advertise directly to patients that if they lost their job during COVID that we would provide our medicines to them. But I wouldn't say -- as I said, much to our surprise, we didn't see the volume go up dramatically.
Andrew Baum -- Citi -- Analyst
Many thanks.
Liz Shea -- Vice President of Investor Relations
Thanks, Andrew. Operator, next question please.
Operator
Thank you. Our next question is from Geoffrey Porges with Leerink. You may ask your question, sir.
Geoffrey Porges -- SVB Leerink -- Analyst
Thank you very much. Lots of questions, but I'll focus first on rinvoq. Rick, you've given the long-term guidance of, I recall, $7 billion in revenue by 2025, I think. And by all means, correct me if I don't recall correctly, but if you only get the 15-milligram dose approved, if that's the outcome of the deliberations of the FDA but you get the approvals in Europe, can you achieve that revenue guidance? Are you confident enough in the 15-milligram program? And then secondly for Mark, your CF development program seems to have been sort of reactivated.
And could you talk a little bit about your conviction a little bit more detail on 119? We don't know much about that. Are you confident that it can be an active C2 corrector that matches up to your competition because clearly, that's a big revenue opportunity that we haven't factored in? Thanks.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Geoffrey, this is Rick. On your first question, yes, the guidance for rinvoq is $8 billion, and I would say we're confident that even with the 15 milligram, we will sustain that guidance. If you look at the performance of the 15 milligram, it's quite remarkable. And so we feel good about the performance of rinvoq.
We continue to see strong uptake of rinvoq and physician interest and is consistent with what we would expect. So I think we're fine there.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll take the question on the CF program. When we restructured the collaboration with Galapagos a few years ago to take direct operational control of that program, we had a couple of goals. One is we wanted to make sure that we're optimizing the potentiator and C1 components of the regimen.
We felt we had a best-in-class C1 in 22, 22, but we believed we needed to make a switch in the potentiator to one that we already had in hand and we've done that. We also believe that we needed a C2 corrector that -- in that time period a few years ago did not exist. So we needed a C2 corrector that had the potential to be best-in-class. And so what we did is we put a significant internal chemistry effort to come up with a number of compounds.
119 is the most advanced and a very promising one that we believe fit that bill. And based on all the preclinical profiling, we think 119 can be a best-in-class C2 corrector. And with the other components of our triple, we think we can deliver best-in-class efficacy with appropriate pharmacological properties, dosing, low DDIs, etc. And so we are now in a proof-of-concept Phase 2 study in the clinic to determine whether those preclinical data will, in fact, bear out.
What I would say here is the preclinical assays are good. They're much more predictive than they are in other areas because we fundamentally know what the defect is in CF, and we can study it in appropriate tissues in human tissues in vitro. But ultimately, we're going to need to see the clinical data. By right around the end of the year, we'll see internally proof-of-concept results for that triple.
We'd probably be in a position to announce them externally early next year. Those will be data that will include impact on FEV1 with the triple. And so that will tell us whether we can be best-in-class. And I agree, if we are best-in-class, I think it's a very significant opportunity, and we would progress it rapidly.
Now, it's a proof-of-concept study. So if it's successful, we'd have some additional dose ranging to do. We're studying the highest dose of 119 to determine whether it can have that effect. We'd have to do some additional dose ranging to determine the optimal dose of 119, but that can be done rapidly.
And then we would, if successful, move into Phase 3 development.
Geoffrey Porges -- SVB Leerink -- Analyst
Great. Thanks, Mike.
Liz Shea -- Vice President of Investor Relations
Thanks, Geoff. Operator, next question please.
Operator
Thank you. Our next question is from Geoff Meacham with Bank of America. Your line is open, sir.
Geoff Meacham -- BBank of America Merrill Lynch -- Analyst
Good morning, everyone. Thanks for the question. Just had a few quick ones. Another one on JAK safety.
And Mike, you mentioned you expect regulatory action in the next few months. Maybe just give us some perspective on that. Is there any data that you're still waiting on to submit? And is there still the potential for an advisory panel? And then the second one is on ubrelvy. Maybe just give us some color on the new start dynamic.
What are the patients you're capturing? What share are you gaining from? And maybe just help us with kind of the -- what other wins do you have to make with respect to formulary access and share. Thank you.
Mike Severino -- Vice Chairman and President
I'll take the first question and then Jeff will take the second question on ubrelvy. So with respect to JAK safety, we have indicated that we believe that an action is possible in the next few months. That's based on our discussions with the agency and what timing we think is reasonable. It's not a specific action date like the PDUFA dates that had been set in the past.
So we will continue to monitor it as the process continues to move along. But the rate limiting factor as we understand it, is the agency's review of the tofacitinib oral surveillance data. And I think once that is completed, we would be able to move forward with good speed with our review. But there are no additional data from a safety perspective or no other substantial analysis that the agency is waiting on for us.
We provided our updated benefit risk quite some time ago, as we announced publicly, and the agency has not requested any additional data. So it's really that review of the tofacitinib oral surveillance it's gaining as we understand it. With respect to an advisory panel, the agency always has the authority to call one if they desire to have one. But what I would say is if they were planning on having an advisory committee, I would expect them to already be preparing for that and already have that process in motion, and we would know that.
And there's no indication that, that is underway at this time.
Jeff Stewart -- Executive Vice President, Commercial Operations
Great. And I'll take the ubrelvy question. As I mentioned, we're very, very pleased with ubrelvy and really, our overall migraine portfolio that we're rapidly developing here. To give you some sense, it's quite remarkable.
I mean if you look at the total acute oral CGRP category, so that's us and the competitor, it's about 18% of all new prescriptions, and it continues to grow very, very quickly. So again, it shows you how hard patients and physicians are looking for the adoption of these particular agents even though you have to step through a triptan in some cases, two triptanes. So the market demand is very, very substantial. When we look to the overall performance, we can see that roughly the two agents are sort of splitting the acute indication.
Some of the more weeklies are now being a little confounded by the new preventative episodic approval from Nurtec. But nonetheless, I think that's a small piece of the story. When we sort of peel out some of their preventative, new preventative scripts, we still have the leadership position for the acute market. But I really think the bigger picture is how fast that segment will expand over time, and we anticipate that we'll continue to lead that based on ubrelvy overall profile.
Our overall access dynamics are quite good. So we really have roughly a 90% access. Again, some of that access is -- demands a step through of triptan. But overall, when you look at how fast that category is going, we don't really anticipate that there's major new plans that we need to achieve any sort of incremental access position.
And so basically, our commercial strategy continues to be how hard can we drive this acute segment and lead that acute segment. And as I mentioned in my prepared remarks, anticipating the arrival in the late third quarter for atogepant, which has just a spectacular profile for episodic migraine. So thank you.
Geoff Meacham -- BBank of America Merrill Lynch -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Geoff. Operator, next question please.
Operator
Our next question is from Tim Anderson with Wolfe Research. You may ask your question.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. It's well-known that AbbVie rebates heavily on Humira in the U.S. So in biosimilars launch, would you potentially have room to pull back on those rebates, which could basically be a meaningful offset to lost Humira volumes? It seems like you could end up being in the billions of dollars that you could pull back in-house. And I realize there's a rinvoq and skyrizi dynamic to consider.
And related to that line of questioning, how does the prospect of interchangeability biosimilars impact your thinking on this front? If interchangeable generics are allowed or not allowed, how does that impact what you might do with those rebate dollars? And then second question, a quick one, just the range of outcomes for when imbruvica might face generics in the U.S.. Is it in the realm of possibilities that AbbVie enters into settlement agreements with legal challengers that could push out generic timing?
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Tim, it's Rick. So I'll cover the first two questions that you have there. I would say, let me start with interchangeability. We've outlined now over the last year or 2, I think, pretty specifically what we view the biosimilar impact in the U.S.
to be, and we are assuming that there will be two interchangeable biosimilars and that's in the thought process of the erosion models that we have described many, many times now. So we are assuming there will be interchangeability. We're certainly not in a position where we're going to talk about what we're going to do from the standpoint of rebates. We've always competed very effectively in these markets.
Certainly, the focus for us going forward is the next-generation assets, skyrizi and rinvoq. And you can see those two assets this year will do $4.6 billion, so call it $5 billion. They're rapidly growing, and they're doing exactly what we had hoped they would do. They have higher levels of efficacy, and they are ramping dramatically.
And they will buffer the impact, biosimilar impact in the U.S. And so what I'd tell you is the strategy is going exactly the way we had hoped it would go. We'll fill out the range of indications on skyrizi and rinvoq and continue to drive those assets into the marketplace effectively. On imbruvica?
Laura Schumacher -- Vice Chairman, External Affairs, Chief Legal Officer, and Corporate Secretary
Yes. Hi. This is Laura Schumacher. Our imbruvica composition of matter patent expires in May of 2028, assuming that we get the pediatric extension.
We do have later expiring IP covering methods of use, formulation, crystal forms and the like. Our long-range plan currently assumes the loss of exclusivity in the U.S. in May of 2028 when the composition of matter patent expires. There is litigation ongoing with one remaining ANDA filer, and we're awaiting a decision on that.
Tim Anderson -- Wolfe Research -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thank you, Tim. Operator, next question please.
Operator
Thank you. Our next question is from Matthew Harrison with Morgan Stanley. You may ask your question.
Matthew Harrison -- Morgan Stanley -- Analyst
Great. Good morning. Thanks for taking the question. Just a follow-up question on CF for you.
I guess, first, two parts here. First, are you confident that you have a potentiator that's active and improved versus the Galapagos compound? Because I think we've seen a lot of issues with people trying to develop potentiators that are as good as Kalydeco. And then second, I know you talked about FEV1. Have you looked at sweat chloride at all? Obviously, you need a larger patient sample size to get a good directional view on FEV1.
I'm wondering if you looked at smaller patient numbers on sweat chloride. Thanks.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll take that. With respect to the potentiator, we are convinced that we have a potentiator that has activity. And we've changed the potentiator from some of those prior combinations that were pursued earlier on in the Galapagos collaboration.
We think that, that potentiator, it has clear signs of activity. We think the C1 corrector is very good and probably best-in-class based on the data that we have seen that were generated earlier in the collaboration. We thought that the principal piece that was missing was that C2 and we think we have a good one. With respect to the endpoints, while it does take a larger sample size to look at FEV1, we feel like FEV1 is what really matters here.
That's what's going to translate into clinical benefit for patients. And so our proof-of-concept study will show us FEV1, and that's the primary measure that we are going to use to determine whether to advance the triple or not.
Liz Shea -- Vice President of Investor Relations
Thanks, Matthew. Operator, next question please.
Operator
Thank you. Our next question is from Steve Scala with Cowen. Your line is open, sir.
Steve Scala -- Cowen and Company -- Analyst
Thank you. A couple of questions. Many of the questions so far suggest concerns around rinvoq. But I'm wondering if this could all turn in to be a positive.
So to what extent do you believe rinvoq prescribing might be being held back by competitor product concerns? So once those concerns are resolved and/or rinvoq emerges unscathed, if it does, rinvoq could even do better and we could be looking at a sharp acceleration in share gains and prescription trends in Q4. So that's the first question. And secondly, on Humira contract renewals that will be signed in coming months for 2022. What is the typical duration of those contracts? Are they typically 12 months, 24 months, 36 months? If you can give us an idea of that, that would be helpful.
Thank you.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. It's a very good question and it's a question that we thought a lot about. Let me give you some perspective on rinvoq. So if you look at our, let's say, our demand performance, I think I mentioned in my prepared remarks we've been very consistent about 15% in-play share in the large RA market, which is just under Humira, which has grown a little bit over the COVID times and since January to about 18%.
So we're very, very stable. And I do believe that there is some overhang on certain segments of prescribers that have, let's say, gone back a little bit to the TNF, really, our own product, Humira. So it's not outside the possibility as this resolves. And really largely, as you've probably heard or seen, Xeljanz has lost in-place share over that period.
So I do believe there's a little overhang in certain -- probably significant segments of rheumatology. So we are anxiously awaiting the resolution here of oral surveillance, which obviously has delayed our regulatory submissions, but it's not outside of the realm of possibility given the very significant differentiated data that we have in our packages that we could see an acceleration as things resolve. So we're going to anxiously be monitoring and certainly be prepared to anticipate any outcome there.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
And Steve, this is Rick. On the contracting question, I'll handle that one. It varies quite a bit based on product and by managed care organization, but I'd say -- so it can be -- some of them can be as short as 12 months. It's probably more common to be in the 24-month range from a contracting standpoint.
Steve Scala -- Cowen and Company -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Steve. Operator, next question please.
Operator
Thank you. Our next question is from Chris Raymond with Piper Sandler. Please ask your question.
Chris Raymond -- Piper Sandler -- Analyst
Thanks. Just on the A beta program. I know you answered a few questions, but I think I heard you describe the product that you're targeting the plaques and not the soluble forms of A beta. Just kind of maybe if you -- wondering if you can give a little bit more color on the driver of that going forward with that.
Do you guys -- does your science sort of tell you that amyloid beta algomers, for example, are not a driver of the disease? Or is this more of a decision that's driven by the regulatory precedence of approving -- targeting the A beta plaques? And then maybe also if you can give a little more detail on this molecule? Is it likely an IV or possibly subcu delivered antibody? Thanks.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll take that. With respect to the focus on plaque, I think when one looks at all of the data, you can conclude that if you can reduce plaque rapidly from that point forward, you can see a benefit. So in other words, getting the majority of patients to a level where they are amyloid negative by PET, so below 20 centiloids and doing that rapidly is what's required to see a benefit emerge over time.
And part of the importance of speed is that you're not going to see that benefit until you get to that level. So if you spend the entire period of a trial getting to that level, you don't then have an opportunity within that trial to see an improvement in cognition. And of course, for patients, if you don't get to that level fast enough, they're not going to drive benefit for a period of sometimes too many years, and they need really faster than that. So that's our focus on plaque.
With respect to different components and the role of oligomers, I think it's hard to tease that apart right now. What we know from the data is what I said, that getting patients to amyloid negativity. So reducing plaque is what seems to drive a clinical benefit. Whether there are upstream steps that one could try to impact to achieve the same result, I think, is an open question.
And we're going where the science tells us to go today. With respect to IV or subcu, I think it's early to answer that question. It's going to relate to ultimately the delivered dose and then those forms that can be delivered. So for example, there are on-body injectors and other things that can deliver more than the traditional 1 or 2 ml of a solution containing a monoclonal antibody.
So there are approaches that could be IV or subcu, but I think it's a little bit early to make predictions on how that will all play out.
Chris Raymond -- Piper Sandler -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thanks, Chris. Operator, next question please.
Operator
Tank you. It comes from Luisa Hector with Berenberg. Your line is open.
Luisa Hector -- Berenberg -- Analyst
Hello. Thank you for taking my question. Sorry, going back to rinvoq again, but I just wanted to check that the approval of the pending indications isn't a particular gating item for your filing in UC. And then I see that you haven't changed your guidance for rinvoq for this year.
And I know previously, you've stated that would only ever be a small contribution this year. But rather than sales, I just wonder whether there's any particular savings on your launch costs this year due to the delay. And then maybe on TNB-383. Again, I think I've understood this is now 100% belonging to you.
So just to check no impact from the Amgen acquisition. And then when might we see a Phase 2 start? It looks like you have a dose data all very compelling. So how soon could we be looking out for that trial start and data? Thank you.
Mike Severino -- Vice Chairman and President
OK. This is Mike. I'll start with the rinvoq question then pass it to Rob. And then I'll come back for the 383 question.
With respect to the UC filing, the UC filing is not dependent on the approvals in the other indications. And obviously, the timing of review of the UC filing would carry it out to a point where those matters would, I think, based on any reasonable expectation, resolved.
Rob Michael -- Executive Vice President, Chief Financial Officer
Yes. Then on your question regarding the guidance for rinvoq. So you're right, we did give guidance of $1.7 billion early this year, assuming we would have the new indications approved. We said that would be a minor contribution.
Think of it in couple of hundred million dollar range. But given the strong performance out of the RA indication, we've maintained that guidance despite the fact that those accruals are delayed. There is some level of savings in terms of SG&A related to the approvals being delayed. But at the same time, we're investing in the business.
You look at what we're doing at aesthetics, Obviously, other parts of the Allergan business, there's opportunity to invest more broadly. So overall, SG&A is up because we are investing for long-term growth, but there is some level of savings associated with the rinvoq delays.
Mike Severino -- Vice Chairman and President
With respect to 383, the BCMA CD3 bispecific, you're correct, there is no impact of the Amgen acquisition of Teneobio. The asset would be ours and it would be unencumbered by anything related to the Amgen acquisition. In terms of Phase 2 timing, we plan to move forward very rapidly, not only with Phase 2 but with Phase 3 studies with this asset. We think the data that have been generated are very strong, very high levels of response, good levels at the VGPR or better threshold with a very good safety profile as well and a profile that would fit well with combination therapy and move to earlier lines of therapy.
So we'll advance the program aggressively, and we'll update on the specifics a little bit later on in the year.
Liz Shea -- Vice President of Investor Relations
Thanks, Luisa. Operator, next question please.
Operator
Our next question will come from Daniel Busby with RBC Capital Markets. You may proceed with your question.
Daniel Busby -- RBC Capital Markets -- Analyst
Good morning. I've got 2 questions. First, a bigger picture question on skyrizi and rinvoq. You've guided the peak sales for both products in the early 2030s.
There's been a lot of focus on near-term regulatory hurdles, particularly for rinvoq, but there's also a lot that could happen competitively between now and then. So with that said, what do you view as the biggest potential longer-term competitive threats for both of those drugs, and particularly given the ongoing emergence and maturation of new drug modalities? And second, can you talk a little bit about the assumptions you've built into overall guidance relating to the Delta variant and whether that's changed at all the way you think about the second half recovery?
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
We go through a fairly rigorous, in fact, I'd say a very rigorous, long-range planning process where we evaluate what we think the competitive alternatives might be and the profile of our assets versus other assets. And I would say, as we look at rinvoq and skyrizi and the clinical data that has been generated, it's certainly achieving or exceeding the expectations that we had for those assets. I don't see anything on the horizon that would make it in a time frame that would have a material impact on those assets based on the guidance that we provided or even longer-term guidance out to typically do a 10-year long-range planning process. So yes, there are certainly many, many modalities that are available today across many of these therapeutic areas.
It's having the right kind of asset, the right kind of clinical performance and then everything else that wraps around that market access and all the other things you have to be effective at in order to achieve the level of performance that these assets are achieving. And so the bottom line is I think we feel very confident in our assumptions here. As it relates to the Delta variant, I think as we look at the guidance that we are providing in the second half, it certainly is reflective of what we assume. We don't assume dramatic changes in the U.S.
or other major markets around the world from where we are today. We're not assuming major levels of what probably in certain markets either that are currently in lockdowns like Australia as an example. We're in many of the Asian markets outside of China and Singapore. So I think we've properly represented it.
I think the healthcare system in the U.S. in particular, I think is the experience that we had last year, I think, tells us that the healthcare system can much better treat these patients. And we're not assuming that we see anything that would be significant in a shift in the U.S. from a lockdown standpoint.
Liz Shea -- Vice President of Investor Relations
Thanks, Daniel. Operator, we have time for one final question.
Operator
It will come from Gary Nachman with BMO Capital Markets. Your line is open, sir.
Gary Nachman -- BMO Capital Markets -- Analyst
Hi. Good morning and thank you for squeezing me in. Sorry but one more on rinvoq first. Curious why you think Europe doesn't seem as concerned with the JAK class the way the FDA has been since you got the positive opinion on atopic for both doses there.
And how do you see uptake in Europe versus the U.S. overall? Is there a difference in perception you think in those regions with the class? And then regarding vraylar for how are the Phase 3 studies gone overall? Did you change anything with respect to enrollment numbers or sites during the course of the pandemic since these Phase 3 data coming soon? And have you done any more work sizing up the potential market opportunity where you think it would be used most for MDD, what types of patients? Thank you.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll start and then I'll pass it over to Jeff for some additional comments. With respect to rinvoq and the regulatory environment and the prescriber perception, prescriber environment between Europe and the U.S., we do see differences. And the European authorities and the European prescribing base seems to place less emphasis on these signals and view them more specifically to the molecules that generated the data than the U.S.
Why that is, I can't give you a single reason other than these are both very large competent jurisdictions that have come to their own impressions of the data and those impressions have differed somewhat. As you've said, for atopic derm, we got the positive opinion from the CHMP for both the 15 and 30-milligram doses. We think the data are very supportive of that decision, and we look forward to launching that indication in Europe. And we think it's going to be an important additional indication as it will be in the U.S.
when we do get to approval. With respect to uptake in Europe, Jeff, I don't know if you want to comment on that.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. As I mentioned in my remarks, the uptake on rinvoq in many major markets is very, very strong. Now as you know, waiting for reimbursement takes a little bit more time than the U.S. But as I highlighted, we have in-play leadership.
And this is including the TNFs, the biosimilars in Germany, France, Canada, for example. So it's quite strong. I think another point that I'd like to make, and we certainly see it in some of the early launch countries with PSA and AS. There's -- there appears to be a synergistic effect which makes some sense from a commercial standpoint as countries like Germany start to introduce PSA and AS, the entire rinvoq molecule starts to accelerate and move faster.
And so again, given the last question I answered, we're anxiously awaiting the approval of those extra room indications there. So it's quite strong. And as I highlighted again and Mike mentioned, our label here in atopic derm is going to look quite strong in the European markets. Mike, maybe you can hit on MDD and then I'll address the market structure there.
Mike Severino -- Vice Chairman and President
With respect to vraylar and MDD, we did a deep dive on the Phase 3 studies shortly after closing the acquisition of Allergan. And what I would say is we found that the studies were very well designed. We were comfortable with important considerations like patient selection, selection of sites that we believe would give quality data. We looked at the blinded aggregate characteristics of the population enrolled.
So you look at the baseline characteristics, and you don't know who's on active or placebo, but you can see if you're enrolling the right patient population. And we believe we were. All of the measures are designed and seem to be behaving appropriately. And so we feel good about the design characteristics of that study, and we did not feel that it was necessary to make any changes.
But we did do that deep dive to be sure of that. As I said, what we found was, in fact, reassuring. With respect to the market opportunity, I'll just make a couple of comments, and I'll hand it off to Jeff for some more detail. But what I would say is depression, obviously, is a substantial indication and it's one that is very difficult to treat with existing agents.
About 50% of patients don't achieve adequate control with monotherapy with frontline agents like SSRIs or SNRIs. And so there is an important opportunity for adjunctive therapy. And obviously, this is an adjunctive MDD indication. So that would be the population that we would be looking at.
Jeff, do you want to comment in more detail on that?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. I mean if we look at the market structure, obviously, you have schizophrenia, which is a relatively modest market, and we have a good growing position there with our existing indication. And then you have the prescriptions and really the different bipolar segments. And what I would say about not the big depression market but the adjunctive MDD market that Mike spoke about, it's about the same size in terms of a prescription value to the bipolar segment.
So adjunctive MDD, if the studies were to progress as we see is really gives us a chance to access a market that's equally sized to the one that we're competing in today. So it's quite attractive as we continue to look for the final readout of those trials.
Liz Shea -- Vice President of Investor Relations
Thanks, Gary. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 85 minutes
Call participants:
Liz Shea -- Vice President of Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Commercial Operations
Mike Severino -- Vice Chairman and President
Rob Michael -- Executive Vice President, Chief Financial Officer
Vamil Divan -- Mizuho Securities -- Analyst
Chris Schott -- J.P. Morgan -- Analyst
Ronny Gal -- Sanford C. Bernstein -- Analyst
Andrew Baum -- Citi -- Analyst
Geoffrey Porges -- SVB Leerink -- Analyst
Geoff Meacham -- BBank of America Merrill Lynch -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Laura Schumacher -- Vice Chairman, External Affairs, Chief Legal Officer, and Corporate Secretary
Matthew Harrison -- Morgan Stanley -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Chris Raymond -- Piper Sandler -- Analyst
Luisa Hector -- Berenberg -- Analyst
Daniel Busby -- RBC Capital Markets -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
More ABBV analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) Q2 2021 Earnings Call Jul 30, 2021, 9:00 a.m. Thank you for standing by, and welcome to the AbbVie second-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. | Operator [Operator signoff] Duration: 85 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President, Chief Financial Officer Vamil Divan -- Mizuho Securities -- Analyst Chris Schott -- J.P. Morgan -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Andrew Baum -- Citi -- Analyst Geoffrey Porges -- SVB Leerink -- Analyst Geoff Meacham -- BBank of America Merrill Lynch -- Analyst Tim Anderson -- Wolfe Research -- Analyst Laura Schumacher -- Vice Chairman, External Affairs, Chief Legal Officer, and Corporate Secretary Matthew Harrison -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Chris Raymond -- Piper Sandler -- Analyst Luisa Hector -- Berenberg -- Analyst Daniel Busby -- RBC Capital Markets -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q2 2021 Earnings Call Jul 30, 2021, 9:00 a.m. Thank you for standing by, and welcome to the AbbVie second-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | Operator [Operator signoff] Duration: 85 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President, Chief Financial Officer Vamil Divan -- Mizuho Securities -- Analyst Chris Schott -- J.P. Morgan -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Andrew Baum -- Citi -- Analyst Geoffrey Porges -- SVB Leerink -- Analyst Geoff Meacham -- BBank of America Merrill Lynch -- Analyst Tim Anderson -- Wolfe Research -- Analyst Laura Schumacher -- Vice Chairman, External Affairs, Chief Legal Officer, and Corporate Secretary Matthew Harrison -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Chris Raymond -- Piper Sandler -- Analyst Luisa Hector -- Berenberg -- Analyst Daniel Busby -- RBC Capital Markets -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q2 2021 Earnings Call Jul 30, 2021, 9:00 a.m. Thank you for standing by, and welcome to the AbbVie second-quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | skyrizi and rinvoq continue to have significant impact on AbbVie's growth and performance, contributing more than $1 billion in combined sales this quarter. Operator [Operator signoff] Duration: 85 minutes Call participants: Liz Shea -- Vice President of Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President, Chief Financial Officer Vamil Divan -- Mizuho Securities -- Analyst Chris Schott -- J.P. Morgan -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Andrew Baum -- Citi -- Analyst Geoffrey Porges -- SVB Leerink -- Analyst Geoff Meacham -- BBank of America Merrill Lynch -- Analyst Tim Anderson -- Wolfe Research -- Analyst Laura Schumacher -- Vice Chairman, External Affairs, Chief Legal Officer, and Corporate Secretary Matthew Harrison -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Chris Raymond -- Piper Sandler -- Analyst Luisa Hector -- Berenberg -- Analyst Daniel Busby -- RBC Capital Markets -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q2 2021 Earnings Call Jul 30, 2021, 9:00 a.m. | 3fa9c07c-5c2a-4690-85c4-03071d268a32 |
23985.0 | 2021-07-30 00:00:00 UTC | Health Care Sector Update for 07/30/2021: ERYP, FMS, ABBV, XLV, IBB | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-07-30-2021%3A-eryp-fms-abbv-xlv-ibb-2021-07-30 | nan | nan | Health care stocks were mixed pre-bell Friday. The Health Care SPDR (XLV) was slipping by 0.14% and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive
Erytech Pharma (ERYP) was surging past 98% after saying the Food and Drug Administration has granted fast track designation to eryaspase for the treatment of acute lymphocytic leukemia in patients with hypersensitive reactions to E. coli-derived pegylated asparaginase.
Fresenius Medical Care (FMS) was down more than 2% as it reported adjusted earnings of 0.76 euros ($0.90) per share in Q2, down from 1.20 euros per share in the prior year.
AbbVie (ABBV) was marginally advancing as it posted Q2 adjusted earnings of $3.11 per share, up from $2.34 per share a year earlier. Analysts polled by Capital IQ projected adjusted EPS of $3.03.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) was marginally advancing as it posted Q2 adjusted earnings of $3.11 per share, up from $2.34 per share a year earlier. Health care stocks were mixed pre-bell Friday. The Health Care SPDR (XLV) was slipping by 0.14% and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive Erytech Pharma (ERYP) was surging past 98% after saying the Food and Drug Administration has granted fast track designation to eryaspase for the treatment of acute lymphocytic leukemia in patients with hypersensitive reactions to E. coli-derived pegylated asparaginase. | AbbVie (ABBV) was marginally advancing as it posted Q2 adjusted earnings of $3.11 per share, up from $2.34 per share a year earlier. Health care stocks were mixed pre-bell Friday. Fresenius Medical Care (FMS) was down more than 2% as it reported adjusted earnings of 0.76 euros ($0.90) per share in Q2, down from 1.20 euros per share in the prior year. | AbbVie (ABBV) was marginally advancing as it posted Q2 adjusted earnings of $3.11 per share, up from $2.34 per share a year earlier. The Health Care SPDR (XLV) was slipping by 0.14% and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive Erytech Pharma (ERYP) was surging past 98% after saying the Food and Drug Administration has granted fast track designation to eryaspase for the treatment of acute lymphocytic leukemia in patients with hypersensitive reactions to E. coli-derived pegylated asparaginase. Fresenius Medical Care (FMS) was down more than 2% as it reported adjusted earnings of 0.76 euros ($0.90) per share in Q2, down from 1.20 euros per share in the prior year. | AbbVie (ABBV) was marginally advancing as it posted Q2 adjusted earnings of $3.11 per share, up from $2.34 per share a year earlier. Health care stocks were mixed pre-bell Friday. The Health Care SPDR (XLV) was slipping by 0.14% and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive Erytech Pharma (ERYP) was surging past 98% after saying the Food and Drug Administration has granted fast track designation to eryaspase for the treatment of acute lymphocytic leukemia in patients with hypersensitive reactions to E. coli-derived pegylated asparaginase. | 76ab0232-777d-429c-9e5e-0b0d8dc184ed |
23986.0 | 2021-07-30 00:00:00 UTC | Have $500? Here Are 2 High-Yielding Healthcare Stocks to Consider | ABBV | https://www.nasdaq.com/articles/have-%24500-here-are-2-high-yielding-healthcare-stocks-to-consider-2021-07-30 | nan | nan | The markets have surged since the COVID-induced panic of last February and March, with recent rollbacks of coronavirus-related public health guidelines boosting the economy in many areas. But this upward trajectory in financial markets, coupled with low, risk-free rates offered by bonds, has left income investors with fewer options than last year. That said, even with the collapse of the S&P 500's average yield -- from a multi-year high of 2.3% in March 2020 to just 1.4% at the present -- there are still viable high-yielding dividend stocks out there for investors to check out.
Let's take a look at two S&P 500 companies that offer approximately triple the yield of the index. We'll examine their recent operating results, balance sheets, and dividend payouts to see whether they're the right fit for your portfolio.
Image Source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is a diversified biotech company with a 4.4% yield.
We'll start by addressing the elephant in the room: the pending loss of exclusivity of its top drug, Humira, in the U.S., which will occur in 2023.
Based on the 27% drop-off in Humira's international revenue, from $1.3 billion in 2018 (biosimilars hit the market late that year) to $948 million in 2019, it's reasonable to expect that the drug's U.S. revenue will experience a similar plunge in 2023, followed by smaller, steadier revenue declines in 2024 and beyond.
The good news for AbbVie is that the company is more than ready to make up for Humira's revenue declines with its other two blockbuster immunology drugs, Rinvoq and Skyrizi.
Rinvoq's revenue more than tripled from $86 million in Q1 2020 to $303 million in Q1 2021. That pace appears to be sustainable, not least because the drug is in phase 3 trials for the treatment of atopic dermatitis, psoriatic arthritis, Crohn's disease, and ulcerative colitis. Even one or two approvals from the U.S. Food and Drug Administration (FDA) for treatments of those conditions could be enough to drive future revenue growth.
AbbVie's revenue from Skyrizi also showed significant growth, nearly doubling from $300 million in Q1 2020 to $574 million in Q1 2021. If Rinvoq isn't able to secure FDA approvals for more indications, there's a chance Skyrizi will be able to do so, as the drug is also in phase 3 trials for the treatment of ulcerative colitis, Crohn's disease, and psoriatic arthritis.
In addition, AbbVie's oncology drugs Imbruvica and Venclexta offer additional avenues of growth beyond 2023. These two drugs were able to expand their combined revenue base from $1.55 billion in the first quarter of 2020 to $1.67 billion in Q1 2021, and both have numerous phase 3 trials in progress that can drive future revenue.
AbbVie also appears to be solid from a balance-sheet standpoint, with an interest coverage ratio of 6.2 in Q1 2021 ($3.87 billion in earnings before income taxes/$620 million in interest expense), which means the company's EBIT would have to fall by over 80% before it would be unable to cover its interest expense.
Third, AbbVie's adjusted earnings per share (EPS) payout ratio leaves the company with a secure payout. Management's projected midpoint of $12.47 for 2021 works out to a payout ratio of just 42% when considering the $5.20 in dividends per share that will be paid out this year.
Investors with $500 set aside could purchase four shares at the current price of about $119.
Pfizer
Pfizer (NYSE: PFE) has a 3.7% yield. Investors may be aware of the role that Pfizer's COVID-19 vaccine (developed in conjunction with Germany's BioNTech) has played in the company's financial results. The vaccine (referred to as BNT162b2) contributed $7.8 billion of the company's $19 billion in revenue during the second quarter of 2021.
But in valuing Pfizer, we can set aside the fact that countries such as Israel are administering third doses of COVID-19 vaccinations and the U.S. federal government is reportedly planning to recommend a booster shot later this year. We will, in fact, completely discount the $7.8 billion in BNT162b2 revenue generated in Q2 2021 -- just to be conservative.
That leaves Pfizer with $11.1 billion in non-COVID-vaccine revenue in Q2 2021, which still represents double-digit year-over-year growth on an operational basis compared with the $9.9 billion reported during Q2 2020.
Leading the charge was the company's oncology segment, which saw sales surge 19% from $2.65 billion in Q2 2020 to $3.15 billion in Q2 2021. Revenue for breast cancer drug Ibrance jumped 4% year over year, from $1.35 billion in Q2 2020 to $1.4 billion in Q2 2021. And three of the company's biosimilar offerings, Ruxience, Zirabev, and Retacrit, were able to more than triple their sales, from about $100 million combined in Q2 2020 to over $350 million in Q2 2021.
Anticoagulant drug Eliquis also reported 16% year-over-year growth, with sales up from $1.27 billion in Q2 2020 to $1.48 billion in Q2 2021. The drug helped the internal medicine segment increase its revenue from $2.28 billion in the same period.
Pfizer is not only strong from the standpoint of operating fundamentals, but the company also boasts a healthy balance sheet.
Pfizer's interest coverage ratio improved significantly from 8.2 in Q2 2020 ($3.03 billion in EBIT/$350 million in interest expense) to 21.8 in Q2 2021 ($6.61 billion in EBIT/$300 million in interest expense), which indicates the company's EBIT would have to fall 95% for the company to have trouble covering its interest expense.
Based on Pfizer's midpoint adjusted EPS guidance of $4 and the dividend obligation of $1.56 per share, the company's payout ratio will be just under 40% for this year.
At the current price of $43 a share, investors with an extra $500 could acquire approximately 12 shares of Pfizer.
Two quality businesses that don't appear to be yield traps
It's often tempting for income investors to reach for yield, only to be sucked into "yield traps" -- companies that eventually go on to cut their dividends because of deteriorating fundamentals, weak balance sheets, and stretched payout ratios.
AbbVie and Pfizer, meanwhile, offer investors more than triple the S&P's average yield and improving fundamentals, decent-to-robust balance sheets, and sustainable payout ratios in the 40% range.
This supports the underlying argument that both companies are capable of not only maintaining their dividends for the foreseeable future, but also raising them. Income investors would therefore be wise to consider adding these two high-yielders to their portfolios.
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Kody Kester owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie AbbVie (NYSE: ABBV) is a diversified biotech company with a 4.4% yield. The good news for AbbVie is that the company is more than ready to make up for Humira's revenue declines with its other two blockbuster immunology drugs, Rinvoq and Skyrizi. AbbVie's revenue from Skyrizi also showed significant growth, nearly doubling from $300 million in Q1 2020 to $574 million in Q1 2021. | Third, AbbVie's adjusted earnings per share (EPS) payout ratio leaves the company with a secure payout. AbbVie and Pfizer, meanwhile, offer investors more than triple the S&P's average yield and improving fundamentals, decent-to-robust balance sheets, and sustainable payout ratios in the 40% range. AbbVie AbbVie (NYSE: ABBV) is a diversified biotech company with a 4.4% yield. | AbbVie AbbVie (NYSE: ABBV) is a diversified biotech company with a 4.4% yield. The good news for AbbVie is that the company is more than ready to make up for Humira's revenue declines with its other two blockbuster immunology drugs, Rinvoq and Skyrizi. AbbVie's revenue from Skyrizi also showed significant growth, nearly doubling from $300 million in Q1 2020 to $574 million in Q1 2021. | AbbVie and Pfizer, meanwhile, offer investors more than triple the S&P's average yield and improving fundamentals, decent-to-robust balance sheets, and sustainable payout ratios in the 40% range. AbbVie AbbVie (NYSE: ABBV) is a diversified biotech company with a 4.4% yield. The good news for AbbVie is that the company is more than ready to make up for Humira's revenue declines with its other two blockbuster immunology drugs, Rinvoq and Skyrizi. | 4bb49067-6887-4296-8a8d-1246e0a0cf33 |
23987.0 | 2021-07-30 00:00:00 UTC | AbbVie raises annual profit forecast as Botox demand rebounds | ABBV | https://www.nasdaq.com/articles/abbvie-raises-annual-profit-forecast-as-botox-demand-rebounds-2021-07-30-0 | nan | nan | Compares with estimates, adds analyst comment
July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its 2021 adjusted profit forecast on Friday, betting that a demand uptick for its Botox anti-wrinkle injection due to easing lockdowns will help overcome weak international sales for blockbuster drug Humira.
Sales of Botox for cosmetic use rose two-fold to $584 million in the second quarter to trounce estimates of $483 million, as vaccinations encouraged people to step out more and resume non-essential procedures after being holed up at home for months.
The company grabbed Botox last year as part of its $63 billion purchase of Allergan, a move aimed at cushioning the hit from the looming loss of U.S. patents for the world's best-selling drug Humira, expected in 2023.
Sales of Humira, a treatment for rheumatoid arthritis and which is already facing rivals in Europe, rose 4.8% to $5.07 billion, roughly in line with a Refinitiv IBES estimate of $5.08 billion.
But sales of the drug fell 6% on a reported basis in international markets while rising 7.1% in the United States.
The strong quarter was mainly driven by multiple Allergan products, while sales of core AbbVie assets came in fairly close to expectations, Mizuho analyst Vamil Divan said.
AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with $12.37 to $12.57 per share previously. Analysts expected 2021 earnings per share of $12.61.
The company's quarterly results were also underpinned by two-fold jumps in sales of psoriasis drug Skryizi and rheumatoid arthritis treatment Rinvoq. AbbVie has focused on expanding the use of the drugs to soften the expected blow to Humira sales.
The company swung to a profit of $766 million from a loss of $738 million a year earlier. Excluding one-time items, it earned $3.11 per share.
A Refinitiv tally showed AbbVie earned $3.09 per share, meeting estimates.
(Reporting by Manas Mishra and Amruta Khandekar in Bengaluru; Editing by Aditya Soni)
((Amruta.Khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Compares with estimates, adds analyst comment July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its 2021 adjusted profit forecast on Friday, betting that a demand uptick for its Botox anti-wrinkle injection due to easing lockdowns will help overcome weak international sales for blockbuster drug Humira. The strong quarter was mainly driven by multiple Allergan products, while sales of core AbbVie assets came in fairly close to expectations, Mizuho analyst Vamil Divan said. AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with $12.37 to $12.57 per share previously. | Compares with estimates, adds analyst comment July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its 2021 adjusted profit forecast on Friday, betting that a demand uptick for its Botox anti-wrinkle injection due to easing lockdowns will help overcome weak international sales for blockbuster drug Humira. The strong quarter was mainly driven by multiple Allergan products, while sales of core AbbVie assets came in fairly close to expectations, Mizuho analyst Vamil Divan said. AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with $12.37 to $12.57 per share previously. | Compares with estimates, adds analyst comment July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its 2021 adjusted profit forecast on Friday, betting that a demand uptick for its Botox anti-wrinkle injection due to easing lockdowns will help overcome weak international sales for blockbuster drug Humira. AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with $12.37 to $12.57 per share previously. The strong quarter was mainly driven by multiple Allergan products, while sales of core AbbVie assets came in fairly close to expectations, Mizuho analyst Vamil Divan said. | AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with $12.37 to $12.57 per share previously. Compares with estimates, adds analyst comment July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its 2021 adjusted profit forecast on Friday, betting that a demand uptick for its Botox anti-wrinkle injection due to easing lockdowns will help overcome weak international sales for blockbuster drug Humira. The strong quarter was mainly driven by multiple Allergan products, while sales of core AbbVie assets came in fairly close to expectations, Mizuho analyst Vamil Divan said. | 3c0b8582-345c-44be-acf7-4134696b2bb0 |
23988.0 | 2021-07-30 00:00:00 UTC | AbbVie raises annual profit forecast as Botox demand rebounds | ABBV | https://www.nasdaq.com/articles/abbvie-raises-annual-profit-forecast-as-botox-demand-rebounds-2021-07-30 | nan | nan | July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its full-year adjusted profit forecast on Friday, as demand soared for its Botox anti-wrinkle injection in the second quarter following the easing of COVID-19 restrictions.
Sales of Botox for cosmetic use rose two-fold to $584 million in the quarter, outpacing estimates of $483 million, as vaccinations encouraged people to step out more and resume non-essential procedures after being holed up at home for months.
The company acquired the drug last year as part of its $63 billion purchase of Allergan, a move aimed at offsetting the hit from the looming loss of U.S. patents for the world's best-selling drug Humira, expected in 2023.
"The Allergan integration ... continues to track exceptionally well, with both the neuroscience and aesthetics portfolios delivering double-digit sequential growth," Chief Executive Officer Richard Gonzalez said.
AbbVie has also been focused on expanding the use of plaque psoriasis drug Skryizi and rheumatoid arthritis treatment Rinvoq to more patients to soften the expected blow to Humira sales.
Sales of Skyrizi rose two-fold in the quarter to $674 million, while sales of Rinvoq also doubled to $378 million.
Sales of Humira, which is already facing copycat rivals in Europe, rose 4.8% to $5.07 billion, in line with analysts' estimates of $5.08 billion, according to Refinitiv IBES data.
Sales of the drug rose 7.1% in the United States and fell 6% on a reported basis in international markets.
AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with its previous forecast of $12.37 to $12.57 per share.
The company swung to a profit of $766 million, or 42 cents per share, in the second quarter, from a loss of $738 million, or 46 cents per share, a year earlier.
(Reporting by Manas Mishra and Amruta Khandekar in Bengaluru; Editing by Aditya Soni)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its full-year adjusted profit forecast on Friday, as demand soared for its Botox anti-wrinkle injection in the second quarter following the easing of COVID-19 restrictions. AbbVie has also been focused on expanding the use of plaque psoriasis drug Skryizi and rheumatoid arthritis treatment Rinvoq to more patients to soften the expected blow to Humira sales. AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with its previous forecast of $12.37 to $12.57 per share. | July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its full-year adjusted profit forecast on Friday, as demand soared for its Botox anti-wrinkle injection in the second quarter following the easing of COVID-19 restrictions. AbbVie has also been focused on expanding the use of plaque psoriasis drug Skryizi and rheumatoid arthritis treatment Rinvoq to more patients to soften the expected blow to Humira sales. AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with its previous forecast of $12.37 to $12.57 per share. | July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its full-year adjusted profit forecast on Friday, as demand soared for its Botox anti-wrinkle injection in the second quarter following the easing of COVID-19 restrictions. AbbVie has also been focused on expanding the use of plaque psoriasis drug Skryizi and rheumatoid arthritis treatment Rinvoq to more patients to soften the expected blow to Humira sales. AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with its previous forecast of $12.37 to $12.57 per share. | AbbVie said it expects full-year adjusted earnings between $12.52 and $12.62 per share, compared with its previous forecast of $12.37 to $12.57 per share. July 30 (Reuters) - Drugmaker AbbVie Inc ABBV.N raised its full-year adjusted profit forecast on Friday, as demand soared for its Botox anti-wrinkle injection in the second quarter following the easing of COVID-19 restrictions. AbbVie has also been focused on expanding the use of plaque psoriasis drug Skryizi and rheumatoid arthritis treatment Rinvoq to more patients to soften the expected blow to Humira sales. | 00b4bd78-df3f-4c37-a0db-a75f2bab8a46 |
23989.0 | 2021-07-30 00:00:00 UTC | AbbVie Q2 adjusted earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q2-adjusted-earnings-beat-estimates-2021-07-30 | nan | nan | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV):
-Earnings: $766 million in Q2 vs. -$738 million in the same period last year. -EPS: $0.42 in Q2 vs. -$0.46 in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.55 billion or $3.11 per share for the period. -Analysts projected $3.09 per share -Revenue: $13.96 billion in Q2 vs. $10.43 billion in the same period last year.
-Guidance: Full year EPS guidance: $12.52 - $12.62
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $766 million in Q2 vs. -$738 million in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.55 billion or $3.11 per share for the period. -Guidance: Full year EPS guidance: $12.52 - $12.62 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $766 million in Q2 vs. -$738 million in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.55 billion or $3.11 per share for the period. -Analysts projected $3.09 per share -Revenue: $13.96 billion in Q2 vs. $10.43 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $766 million in Q2 vs. -$738 million in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.55 billion or $3.11 per share for the period. -Analysts projected $3.09 per share -Revenue: $13.96 billion in Q2 vs. $10.43 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $766 million in Q2 vs. -$738 million in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $5.55 billion or $3.11 per share for the period. -Guidance: Full year EPS guidance: $12.52 - $12.62 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 3ddf28ec-a80b-4ded-a285-e385a9cccc70 |
23990.0 | 2021-07-30 00:00:00 UTC | AbbVie Lifts FY Adj. Profit View | ABBV | https://www.nasdaq.com/articles/abbvie-lifts-fy-adj.-profit-view-2021-07-30 | nan | nan | (RTTNews) - AbbVie (ABBV) raised its adjusted earnings per share outlook for the full-year 2021 to a range of $12.52 - $12.62 from the prior outlook of $12.37 to $12.57 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $12.6 per share for fiscal year 2021. Analysts' estimates typically exclude special items. AbbVie cut its annual GAAP earnings per share guidance to a range of $6.04 - $6.14 from the prior outlook of $7.27 - $7.47 per share.
The company's 2021 adjusted earnings per share guidance excludes $6.48 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) raised its adjusted earnings per share outlook for the full-year 2021 to a range of $12.52 - $12.62 from the prior outlook of $12.37 to $12.57 per share. AbbVie cut its annual GAAP earnings per share guidance to a range of $6.04 - $6.14 from the prior outlook of $7.27 - $7.47 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $12.6 per share for fiscal year 2021. | (RTTNews) - AbbVie (ABBV) raised its adjusted earnings per share outlook for the full-year 2021 to a range of $12.52 - $12.62 from the prior outlook of $12.37 to $12.57 per share. AbbVie cut its annual GAAP earnings per share guidance to a range of $6.04 - $6.14 from the prior outlook of $7.27 - $7.47 per share. The company's 2021 adjusted earnings per share guidance excludes $6.48 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items. | (RTTNews) - AbbVie (ABBV) raised its adjusted earnings per share outlook for the full-year 2021 to a range of $12.52 - $12.62 from the prior outlook of $12.37 to $12.57 per share. AbbVie cut its annual GAAP earnings per share guidance to a range of $6.04 - $6.14 from the prior outlook of $7.27 - $7.47 per share. The company's 2021 adjusted earnings per share guidance excludes $6.48 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items. | (RTTNews) - AbbVie (ABBV) raised its adjusted earnings per share outlook for the full-year 2021 to a range of $12.52 - $12.62 from the prior outlook of $12.37 to $12.57 per share. AbbVie cut its annual GAAP earnings per share guidance to a range of $6.04 - $6.14 from the prior outlook of $7.27 - $7.47 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $12.6 per share for fiscal year 2021. | 8205fac8-deb4-4554-b18c-a405ffdb3815 |
23991.0 | 2021-07-29 00:00:00 UTC | Pre-Market Earnings Report for July 30, 2021 : PG, XOM, ABBV, CVX, LIN, CHTR, CAT, ENB, ITW, CL, IDXX, AON | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-july-30-2021-%3A-pg-xom-abbv-cvx-lin-chtr-cat-enb-itw-cl-idxx | nan | nan | The following companies are expected to report earnings prior to market open on 07/30/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Procter & Gamble Company (PG)is reporting for the quarter ending June 30, 2021. The cleaning company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.08. This value represents a 6.90% decrease compared to the same quarter last year. In the past year PG has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.78%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PG is 24.65 vs. an industry ratio of 22.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending June 30, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.02. This value represents a 245.71% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -11.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for XOM is 13.80 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.11. This value represents a 32.91% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.5%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 9.39 vs. an industry ratio of 16.20.
Chevron Corporation (CVX)is reporting for the quarter ending June 30, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.54. This value represents a 196.86% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CVX is 15.86 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Linde plc (LIN)is reporting for the quarter ending June 30, 2021. The oil (field services) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.56. This value represents a 34.74% increase compared to the same quarter last year. In the past year LIN has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 10.18%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LIN is 29.28 vs. an industry ratio of -3.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending June 30, 2021. The cable tv company's consensus earnings per share forecast from the 17 analysts that follow the stock is $4.81. This value represents a 32.51% increase compared to the same quarter last year. CHTR missed the consensus earnings per share in the 1st calendar quarter of 2021 by -5.3%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CHTR is 36.72 vs. an industry ratio of 27.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Caterpillar, Inc. (CAT)is reporting for the quarter ending June 30, 2021. The machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.38. This value represents a 131.07% increase compared to the same quarter last year. In the past year CAT has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 48.7%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CAT is 21.75 vs. an industry ratio of 24.30.
Enbridge Inc (ENB)is reporting for the quarter ending June 30, 2021. The oil (production/pipeline) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.44. This value represents a 7.32% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ENB is 18.47 vs. an industry ratio of 20.50.
Illinois Tool Works Inc. (ITW)is reporting for the quarter ending June 30, 2021. The machinery company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.07. This value represents a 89.91% increase compared to the same quarter last year. In the past year ITW has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 11.05%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ITW is 26.51 vs. an industry ratio of 37.40.
Colgate-Palmolive Company (CL)is reporting for the quarter ending June 30, 2021. The cleaning company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.80. This value represents a 8.11% increase compared to the same quarter last year. In the past year CL has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CL is 25.44 vs. an industry ratio of 22.40, implying that they will have a higher earnings growth than their competitors in the same industry.
IDEXX Laboratories, Inc. (IDXX)is reporting for the quarter ending June 30, 2021. The medical instruments company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.01. This value represents a 16.86% increase compared to the same quarter last year. In the past year IDXX has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 36.63%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IDXX is 87.06 vs. an industry ratio of 37.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending June 30, 2021. The insurance brokers company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.80. This value represents a 8.16% decrease compared to the same quarter last year. In the past year AON has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 5.94%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AON is 23.50 vs. an industry ratio of 23.20, 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. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 9.39 vs. an industry ratio of 16.20. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 9.39 vs. an industry ratio of 16.20. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 9.39 vs. an industry ratio of 16.20. | AbbVie Inc. (ABBV)is reporting for the quarter ending June 30, 2021. In the past year ABBV has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 9.39 vs. an industry ratio of 16.20. | 2e8efb1a-e6b7-4d20-b552-75e7e4e3ae2e |
23992.0 | 2021-07-29 00:00:00 UTC | How AbbVie Could Make an Entry Into This Rapidly Growing Drug Market | ABBV | https://www.nasdaq.com/articles/how-abbvie-could-make-an-entry-into-this-rapidly-growing-drug-market-2021-07-29 | nan | nan | Large-cap biopharmaceuticals AbbVie (NYSE: ABBV) and Roche (OTC: RHHBY) announced last week that the U.S. Food and Drug Administration (FDA) had granted their joint effort, Venclexta, a breakthrough therapy designation in combination with an existing chemotherapy, azacitidine, for the treatment of higher-risk myelodysplastic syndrome (MDS). MDS is a cancer of the blood and bone marrow.
Approximately 10,000 patients in the U.S. are diagnosed with MDS each year. Unfortunately, 30% of patients with this diagnosis go on to develop acute myeloid leukemia, or AML. The condition is diagnosed when "20 out of every 100 white blood cells in the bone marrow is a blast cell," according to the Aplastic Anemia and MDS International Foundation or AAMDS, resulting in an inability to normally produce blood.
Image source: Getty Images.
The blast cells ("very young or immature white blood cells," per AAMDS) then go on to rapidly make copies of themselves, which inhibits the body's capability to produce red blood cells and platelets. This leads to just a 26% five-year survival rate in patients over the age of 20 with AML.
Physicians are able to differentiate between lower-risk MDS and higher-risk MDS by the number of blast cells for every 100 white blood cells. Lower-risk MDS is defined as when "fewer than 5 out of 100 white cells in your bone marrow are blasts," according to AAMDS. Higher-risk MDS is characterized by "between 5 out of 100 and 19 out of 100 white cells in your bone marrow" being blasts.
In higher-risk MDS patients, the risk is more than double that of lower-risk MDS patients (up to a 2 out of 10 chance of developing AML in lower-risk patients, versus more than 4 in 10 for higher-risk patients). This is why it's so important for higher-risk MDS patients to have more treatment options to reduce the potential of progression to AML.
The Venclexta/azacitidine combo has produced encouraging results
While there's a tremendous need for more treatments to combat MDS, it's not enough to secure an FDA breakthrough therapy designation. We'll now get into the hard data behind the Venclexta/azacitidine pairing that also played a significant role in the FDA's decision.
Among the 78 adults who were enrolled in the phase 1b study, "65% of patients who were dependent on red blood cell or platelet transfusions were able to achieve independence," according to AbbVie, the study's sponsor. It's no secret that such regular transfusions are time-consuming and interfere with a person's quality of life, so this is a monumental achievement.
The study also reported that the 39.7% of patients who achieved complete remission did so at a median of 2.6 months; this response lasted a median duration of 12.9 months, which led to clinically meaningful improvements in dyspnea (difficulty breathing), fatigue, and quality of life.
AbbVie's vice chairman and president, Dr. Michael Severino, indicated in his opening remarks during AbbVie's Q1 2021 earnings call that the company expects the MDS study to conclude in the second half of this year. This supports its assumption that the Venclexta/azacitidine combo will receive FDA regulatory approval some time next year.
Provided that Venclexta's MDS phase 3 study results bear out the data from the phase 1b study as AbbVie is predicting, the company could be setting itself up to penetrate a multibillion-dollar -- and growing -- MDS market.
Referring to the "growing effort to introduce highly effective therapies for myelodysplastic syndrome" and "increasing incidence of the disease," Coherent Market Insights anticipates that the global MDS market will compound at 8.9% annually from $2.3 billion in 2018 to $5 billion in net sales by 2027.
Because AbbVie's Venclexta is only targeted toward higher-risk cases of MDS and the company is a newer player in the industry, it's reasonable to conclude that it could capture totalglobal marketshare in the high single digits by 2027, which would lead to annualized MDS revenue of about $400 million.
Venclexta has a few potential indications in its near future
Although an MDS indication for Venclexta would be minimal stacked up against AbbVie's forecast of $55.9 billion in revenue during 2021, it's important to note that Venclexta has two other significant indications in its pipeline. The combination of Venclexta with Imbruvica (a cancer drug developed by AbbVie and Johnson & Johnson's Janssen Pharma) is anticipated to eventually secure regulatory approval for the treatment of Stage 1 chronic lymphocytic leukemia and relapsed or refractory mantle cell lymphoma, both of which are large markets in their own right.
AbbVie appears to be a solid buy at under $125 a share for investors who are looking for a safe 4.4% yield (more than twice the S&P 500 average) with moderate capital appreciation potential, as the stock returns to its fair value in the years ahead.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Large-cap biopharmaceuticals AbbVie (NYSE: ABBV) and Roche (OTC: RHHBY) announced last week that the U.S. Food and Drug Administration (FDA) had granted their joint effort, Venclexta, a breakthrough therapy designation in combination with an existing chemotherapy, azacitidine, for the treatment of higher-risk myelodysplastic syndrome (MDS). AbbVie appears to be a solid buy at under $125 a share for investors who are looking for a safe 4.4% yield (more than twice the S&P 500 average) with moderate capital appreciation potential, as the stock returns to its fair value in the years ahead. Among the 78 adults who were enrolled in the phase 1b study, "65% of patients who were dependent on red blood cell or platelet transfusions were able to achieve independence," according to AbbVie, the study's sponsor. | Large-cap biopharmaceuticals AbbVie (NYSE: ABBV) and Roche (OTC: RHHBY) announced last week that the U.S. Food and Drug Administration (FDA) had granted their joint effort, Venclexta, a breakthrough therapy designation in combination with an existing chemotherapy, azacitidine, for the treatment of higher-risk myelodysplastic syndrome (MDS). Provided that Venclexta's MDS phase 3 study results bear out the data from the phase 1b study as AbbVie is predicting, the company could be setting itself up to penetrate a multibillion-dollar -- and growing -- MDS market. The combination of Venclexta with Imbruvica (a cancer drug developed by AbbVie and Johnson & Johnson's Janssen Pharma) is anticipated to eventually secure regulatory approval for the treatment of Stage 1 chronic lymphocytic leukemia and relapsed or refractory mantle cell lymphoma, both of which are large markets in their own right. | Provided that Venclexta's MDS phase 3 study results bear out the data from the phase 1b study as AbbVie is predicting, the company could be setting itself up to penetrate a multibillion-dollar -- and growing -- MDS market. Large-cap biopharmaceuticals AbbVie (NYSE: ABBV) and Roche (OTC: RHHBY) announced last week that the U.S. Food and Drug Administration (FDA) had granted their joint effort, Venclexta, a breakthrough therapy designation in combination with an existing chemotherapy, azacitidine, for the treatment of higher-risk myelodysplastic syndrome (MDS). Among the 78 adults who were enrolled in the phase 1b study, "65% of patients who were dependent on red blood cell or platelet transfusions were able to achieve independence," according to AbbVie, the study's sponsor. | Among the 78 adults who were enrolled in the phase 1b study, "65% of patients who were dependent on red blood cell or platelet transfusions were able to achieve independence," according to AbbVie, the study's sponsor. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Kody Kester owns shares of AbbVie and Johnson & Johnson. Large-cap biopharmaceuticals AbbVie (NYSE: ABBV) and Roche (OTC: RHHBY) announced last week that the U.S. Food and Drug Administration (FDA) had granted their joint effort, Venclexta, a breakthrough therapy designation in combination with an existing chemotherapy, azacitidine, for the treatment of higher-risk myelodysplastic syndrome (MDS). | 0d0ed884-c6ff-4a12-a3b3-e04f071f6268 |
23993.0 | 2021-07-29 00:00:00 UTC | This Biotech Stock Is Too Cheap to Ignore | ABBV | https://www.nasdaq.com/articles/this-biotech-stock-is-too-cheap-to-ignore-2021-07-29 | nan | nan | Investing in a small biotech company can be maddening. The stock can rise and fall with no news, leaving shareholders wondering who knows something they don't. Over the long term, it's best to stick with the science and ignore the short-term gyrations. But that can be hard.
Trillium Therapeutics (NASDAQ: TRIL) rose 6,000% between December 2019 and November 2020. New leadership, clinical focus, and promising results whipped up investor interest. From a scientific perspective, nothing has really changed. Yet shares are down 66% from that 2020 peak. They've gotten too cheap to ignore.
TRIL data by YCharts.
Promising results
The company has two drug candidates with the same molecular structure. It's testing them in seven different indications and nine settings. Those drugs, TTI-621 and TTI-622, block the protein CD47, which is a "don't eat me" signal that cancer uses to hide from the immune system. The protein is overexpressed in many common cancers like non-Hodgkin's lymphoma, colorectal and ovarian cancers, as well as acute leukemia.
Image source: Getty Images.
The drugs have a low molecular weight compared to most other CD47 inhibitors, allowing them to enter cells more easily. Another difference between Trillium's candidates and some others in the space is that they don't bind to red blood cells. Drugs that do this complicate treatment by raising the risk of anemia.
One important difference between the two drugs is the strength of the signal they give to the immune system. It's not enough to merely block cancer's cloaking mechanism. For a drug to kill the diseased cells, it also has to signal the immune system to attack.
TTI-622 delivers a more moderate signal. This allows it to stick around longer in the body and provide a more sustained blockage of the CD47 defense. TTI-621's stronger signal comes with a few more adverse reactions -- although none are severe.
For TTI-622, 42 patients had been dosed as of April in cohorts ranging from a dose of 0.05 mg/kg all the way up to 18.0 mg/kg. Roughly one-third of patients who had received several prior treatments ended up in complete or partial remission. Improvement in their condition was observable within eight weeks.
Over 200 patients have been treated with TTI-621. It's been delivered both intratumorally and intravenously in cutaneous T-cell lymphoma patients with nearly identical results. It has reduced skin lesions associated with the disease to the tune of 25% remission.
Remember, these are phase 1 trials designed to find safe doses -- not necessarily to treat the disease. The results hint at the molecule's ability to penetrate solid tumors, one of the most difficult forms of cancer to treat.
Why Wall Street might be waiting
When Gilead Sciences bought apply named Forty Seven in March 2020 for $4.9 billion, it seemed like the floodgates might open for the CD47 drugs of smaller biotechs to get snapped up. Abbvie did follow-up in September by purchasing I-Mab's assets for $200 million. A few days later, Pfizer made a more modest investment of $25 million into Trillium. The field has been quiet since.
Perhaps Trillium's toughest competition will come from ALX Oncology (NASDAQ: ALXO). The drugmaker just dosed its first patient in a phase 2 study and announced positive phase 1 data earlier this month. Of course, investors have to pay up for the more advanced drug.
ALX sports a $2.3 billion market cap, compared to only $700 million for Trillium. Despite that gap, ALX hasn't demonstrated results as a monotherapy -- without combining it with other drugs -- like Trillium.
It might not matter. After all, Trillium is combining its own drugs with others in many of its studies.
Management projects a treatable patient population of only 30,000 per year. That could mean any financial windfall from an eventual approval would be split among partners. I wouldn't be surprised if that number grew dramatically with additional positive data.
Luckily, investors have time to let it play out. The company has said it has cash to fund itself into 2023. If its drugs can prove themselves in combating solid tumors, it could open up a market expected to grow to more than $400 billion by 2027.
Despite the patience required, the potential seems worth the risk. Like all small biotechs with no product on the market, a small position is likely to be all you need if it succeeds -- and all you want if it doesn't.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie did follow-up in September by purchasing I-Mab's assets for $200 million. Roughly one-third of patients who had received several prior treatments ended up in complete or partial remission. The results hint at the molecule's ability to penetrate solid tumors, one of the most difficult forms of cancer to treat. | Abbvie did follow-up in September by purchasing I-Mab's assets for $200 million. Trillium Therapeutics (NASDAQ: TRIL) rose 6,000% between December 2019 and November 2020. The drugmaker just dosed its first patient in a phase 2 study and announced positive phase 1 data earlier this month. | Abbvie did follow-up in September by purchasing I-Mab's assets for $200 million. Those drugs, TTI-621 and TTI-622, block the protein CD47, which is a "don't eat me" signal that cancer uses to hide from the immune system. Despite that gap, ALX hasn't demonstrated results as a monotherapy -- without combining it with other drugs -- like Trillium. | Abbvie did follow-up in September by purchasing I-Mab's assets for $200 million. Over 200 patients have been treated with TTI-621. ALX sports a $2.3 billion market cap, compared to only $700 million for Trillium. | 1b5aadec-74d1-4ee5-af2c-e427f4838d9d |
23994.0 | 2021-07-29 00:00:00 UTC | AbbVie : FDA Oks Expanded BOTOX Label To Include Eight New Muscles To Treat Upper Limb Spasticity | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-fda-oks-expanded-botox-label-to-include-eight-new-muscles-to-treat-upper-limb | nan | nan | (RTTNews) - Allergan, an AbbVie (ABBV) company, said that the U.S. Food and Drug Administration has approved a label expansion of BOTOX to include eight new muscles for the treatment of upper limb spasticity in adults.
The new muscles for treatment include additional muscles of the elbow and forearm, as well as intrinsic hand muscles and thumb muscles. The label now includes the use of ultrasound as a muscle localization technique in adult spasticity.
BOTOX has been proven to significantly reduce muscle stiffness and is indicated for the treatment of spasticity in patients 2 years of age and older. The safety profile of BOTOX in adult upper limb spasticity remains the same, with the most common adverse reactions including nausea, fatigue, bronchitis, pain in extremity and muscular weakness.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan, an AbbVie (ABBV) company, said that the U.S. Food and Drug Administration has approved a label expansion of BOTOX to include eight new muscles for the treatment of upper limb spasticity in adults. BOTOX has been proven to significantly reduce muscle stiffness and is indicated for the treatment of spasticity in patients 2 years of age and older. The safety profile of BOTOX in adult upper limb spasticity remains the same, with the most common adverse reactions including nausea, fatigue, bronchitis, pain in extremity and muscular weakness. | (RTTNews) - Allergan, an AbbVie (ABBV) company, said that the U.S. Food and Drug Administration has approved a label expansion of BOTOX to include eight new muscles for the treatment of upper limb spasticity in adults. The new muscles for treatment include additional muscles of the elbow and forearm, as well as intrinsic hand muscles and thumb muscles. The safety profile of BOTOX in adult upper limb spasticity remains the same, with the most common adverse reactions including nausea, fatigue, bronchitis, pain in extremity and muscular weakness. | (RTTNews) - Allergan, an AbbVie (ABBV) company, said that the U.S. Food and Drug Administration has approved a label expansion of BOTOX to include eight new muscles for the treatment of upper limb spasticity in adults. The new muscles for treatment include additional muscles of the elbow and forearm, as well as intrinsic hand muscles and thumb muscles. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan, an AbbVie (ABBV) company, said that the U.S. Food and Drug Administration has approved a label expansion of BOTOX to include eight new muscles for the treatment of upper limb spasticity in adults. The new muscles for treatment include additional muscles of the elbow and forearm, as well as intrinsic hand muscles and thumb muscles. The label now includes the use of ultrasound as a muscle localization technique in adult spasticity. | 3fde8198-8266-4849-8412-2e443f16eb7b |
23995.0 | 2021-07-29 00:00:00 UTC | Market Crash 2.0: Where to Invest $1,000 | ABBV | https://www.nasdaq.com/articles/market-crash-2.0%3A-where-to-invest-%241000-2021-07-29 | nan | nan | Despite reopenings in many parts of the country, we aren't out of the woods with the coronavirus just yet. With the delta variant of the SARS-CoV-2 virus that causes COVID-19 spreading like wildfire, many fear this dreaded pandemic may extend well beyond 2021. These concerns fueled a terrible, horrible, no-good, very bad day for the market on July 19, with all three major U.S. market indexes dropping by at least 1%. The Dow Jones fell by more than 2% in what turned out to be its worst one-day sell-off since the beginning of the year.
While the market mostly recovered in the following days, the possibility of a much worse crash remains fresh in investors' minds. There is no need to fear this possibility, though, as it would undoubtedly create opportunities to pick up shares of great companies from the discount bin. Two companies that would be great options in case of another market downturn are AbbVie (NYSE: ABBV) and Netflix (NASDAQ: NFLX).
1. AbbVie
Pharma giant AbbVie will likely start facing competition from biosimilars in the U.S. for Humira, its best-selling drug, in 2023. The naysayers think that's a good enough reason to stay away from its stock, particularly given the drop in international sales of Humira after biosimilar competition entered the market abroad. But AbbVie's management team foresaw this situation and planned accordingly.
Image source: Getty Images.
As things stand, AbbVie has several growth avenues that are offsetting declining sales of Humira in Europe. Skyrizi and Rinvoq -- both of which treat several autoimmune diseases -- have been growing their sales rapidly. In the first quarter ending March 31, sales of Rinvoq came in at $303 million, more than doubling compared with the first quarter of 2020. Meanwhile, revenue from Skyrizi soared by 91% to $574 million.
Note that both of these products have only been on the market for about two years. Expect many more quarters of growth for these drugs. Venclexta, a cancer medicine, is also contributing, with its sales jumping by 27.9% year over year to $405 million in the first quarter.
We also can't ignore AbbVie's May 2020 acquisition of Allergan in a cash-and-stock transaction valued at $63 billion. The purchase allowed the pharma giant to decrease its top-line reliance on Humira further.
One of the key products AbbVie got through this deal was Vraylar, a treatment for schizophrenia. Its sales of $346 million grew by more than 20% year over year in the first quarter. According to management, Vraylar is "one of the fastest-growing medicines in psychiatry."
Then there is Botox, a product for which AbbVie is confident we won't see biosimilars anytime soon. Sales of Botox Cosmetic jumped by more than 40% year over year to $477 million, while Botox Therapeutic's sales increased by 7% to $532 million.
AbbVie's current lineup will make up for Humira's eventual decline, and the company's robust pipeline will also contribute to beefing up its portfolio of medicines. Patients need drugs, particularly life-saving ones, regardless of economic conditions, and that's why AbbVie is well-positioned to navigate a potential downturn -- and why it'd be a good idea to scoop up shares of this pharma stock in case of a market crash.
Image source: Getty Images.
2. Netflix
Netflix's detractors have been arguing that the increasingly competitive landscape of the streaming industry, coupled with slowing user growth, spells trouble for its financial results and stock performance. I respectfully disagree with this view. First, while there are more streaming platforms than ever before -- and Netflix probably has lost and will continue to lose some users as a result -- these competing services are more than capable of coexisting.
Many customers are more than happy to pay for several such services since they largely offer different libraries of movies and television shows (I personally have a subscription to three streaming services). Netflix has heavily invested in original content to bolster its library and keep its users entertained, and the strategy has worked well.
Further, the company's user growth story is far from over. As management argues in its most recent letter to shareholders, streaming represents just 27% of U.S. screen time. The remaining is still controlled by linear television, and the long-term goal of the company is to replace linear television. Netflix offers thousands of shows on demand and free of ads, and these perks will likely continue to pull users away from traditional cable television and into the streaming universe.
The hope for the company is that many of these users will find their way onto its platform. Note that the penetration of the streaming industry is even lower outside the U.S., particularly in developing countries with lower internet penetration. In other words, the company may still be in the early innings of its growth story, despite what the bears say.
We may or may not be heading toward renewed lockdown orders. If we are, Netflix will likely benefit, just like it did last year. But even if we aren't, there is more than enough fuel in Netflix's growth story to justify purchasing its shares today, especially if they drop substantially due to a market crash.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie's current lineup will make up for Humira's eventual decline, and the company's robust pipeline will also contribute to beefing up its portfolio of medicines. Patients need drugs, particularly life-saving ones, regardless of economic conditions, and that's why AbbVie is well-positioned to navigate a potential downturn -- and why it'd be a good idea to scoop up shares of this pharma stock in case of a market crash. Two companies that would be great options in case of another market downturn are AbbVie (NYSE: ABBV) and Netflix (NASDAQ: NFLX). | AbbVie Pharma giant AbbVie will likely start facing competition from biosimilars in the U.S. for Humira, its best-selling drug, in 2023. Two companies that would be great options in case of another market downturn are AbbVie (NYSE: ABBV) and Netflix (NASDAQ: NFLX). But AbbVie's management team foresaw this situation and planned accordingly. | Patients need drugs, particularly life-saving ones, regardless of economic conditions, and that's why AbbVie is well-positioned to navigate a potential downturn -- and why it'd be a good idea to scoop up shares of this pharma stock in case of a market crash. Two companies that would be great options in case of another market downturn are AbbVie (NYSE: ABBV) and Netflix (NASDAQ: NFLX). AbbVie Pharma giant AbbVie will likely start facing competition from biosimilars in the U.S. for Humira, its best-selling drug, in 2023. | AbbVie Pharma giant AbbVie will likely start facing competition from biosimilars in the U.S. for Humira, its best-selling drug, in 2023. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Two companies that would be great options in case of another market downturn are AbbVie (NYSE: ABBV) and Netflix (NASDAQ: NFLX). | 6d93b44a-00cc-494f-ad18-648b7adb00fb |
23996.0 | 2021-07-28 00:00:00 UTC | Here's Why Myovant Sciences Stock Is Falling Today | ABBV | https://www.nasdaq.com/articles/heres-why-myovant-sciences-stock-is-falling-today-2021-07-28 | nan | nan | What happened
Myovant Sciences (NYSE: MYOV) stock is losing ground after the company reported earnings for its fiscal first quarter, the three-month period ended June 30, 2021. Investors upset about net product sales that weren't very impressive led the stock 12.5% lower this morning. The stock recovered some losses and was down just 9.1% as of 2:17 p.m. EDT on Wednesday.
So what
Sales of products containing Myovant's gonadotropin-releasing hormone (GnRH) receptor antagonist, Orgovyx (relugolix), weren't as impressive as investors were expecting. Second-quarter sales of Orgovyx, the prostate cancer treatment the FDA approved last year, reached just $10.5 million.
Image source: Getty Images.
Investors have been watching the Orgovyx launch closely since it earned FDA approval to treat advanced prostate cancer patients last December. That's because last September, the company told investors its drug didn't significantly extend castration resistance-free survival compared to standard care.
Myovant also reported disappointing sales of more recently launched Myfembree. In May, the FDA approved this combination of relugolix, estrogen, and progesterone for the treatment of heavy menstrual bleeding associated with uterine fibroids.
As the first available treatment for this indication, investors expected more than just $1.1 million in top-line sales because the company has a big helping hand. Myovant is commercializing Myfembree jointly with Pfizer (NYSE: PFE), one of America's largest pharmaceutical companies.
Now what
The first approved treatments for conditions that affect millions of people usually go on to generate blockbuster drug sales. Unfortunately for Myovant, women's health is an unusually frustrating corner of the overall pharmaceutical industry.
Back in 2018, AbbVie (NYSE: ABBV) launched its own oral GnRH inhibitor called Orilissa to relieve pain associated with endometriosis. Even though endometriosis affects at least 6% of adult women in the U.S., sales of Orilissa remained flat in the second quarter of 2021 at just $30 million.
AbbVie's challenges with its GnRH inhibitor don't necessarily need to carry over to Myovant and Pfizer's launch of Myfembree. That said, it's probably best to avoid this stock until Myovant shows us relugolix can buck the trend.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Back in 2018, AbbVie (NYSE: ABBV) launched its own oral GnRH inhibitor called Orilissa to relieve pain associated with endometriosis. AbbVie's challenges with its GnRH inhibitor don't necessarily need to carry over to Myovant and Pfizer's launch of Myfembree. What happened Myovant Sciences (NYSE: MYOV) stock is losing ground after the company reported earnings for its fiscal first quarter, the three-month period ended June 30, 2021. | Back in 2018, AbbVie (NYSE: ABBV) launched its own oral GnRH inhibitor called Orilissa to relieve pain associated with endometriosis. AbbVie's challenges with its GnRH inhibitor don't necessarily need to carry over to Myovant and Pfizer's launch of Myfembree. So what Sales of products containing Myovant's gonadotropin-releasing hormone (GnRH) receptor antagonist, Orgovyx (relugolix), weren't as impressive as investors were expecting. | Back in 2018, AbbVie (NYSE: ABBV) launched its own oral GnRH inhibitor called Orilissa to relieve pain associated with endometriosis. AbbVie's challenges with its GnRH inhibitor don't necessarily need to carry over to Myovant and Pfizer's launch of Myfembree. What happened Myovant Sciences (NYSE: MYOV) stock is losing ground after the company reported earnings for its fiscal first quarter, the three-month period ended June 30, 2021. | Back in 2018, AbbVie (NYSE: ABBV) launched its own oral GnRH inhibitor called Orilissa to relieve pain associated with endometriosis. AbbVie's challenges with its GnRH inhibitor don't necessarily need to carry over to Myovant and Pfizer's launch of Myfembree. So what Sales of products containing Myovant's gonadotropin-releasing hormone (GnRH) receptor antagonist, Orgovyx (relugolix), weren't as impressive as investors were expecting. | 5680a578-2677-405b-a72d-0db576fdcd93 |
23997.0 | 2021-07-28 00:00:00 UTC | Thinking About Joining the Dogecoin Craze? Here are 2 Smarter Buys | ABBV | https://www.nasdaq.com/articles/thinking-about-joining-the-dogecoin-craze-here-are-2-smarter-buys-2021-07-28 | nan | nan | The cryptocurrency market continues to be fraught with extreme volatility. Dogecoin -- a digital currency favored by Reddit traders that was initially started as a joke eight years ago -- is certainly no exception. The crypto's up by more than 5,600% from just one year ago but has fallen nearly 40% in value over the past three months alone.
Not all cryptocurrencies are created equal -- and I'm not saying that digital currency can't have a place in a long-term investor's portfolio -- but the fact remains that these types of investments are incredibly speculative buys that carry a tremendous amount of risk. And when it comes to Dogecoin, there are infinitely better buys around which long-term investors can construct a wealth-building portfolio.
Let's take a look at two top stocks that investors should consider instead.
Image source: Getty Images.
1. MercadoLibre
The global e-commerce industry continues to grow at an astounding rate, and companies that are dominating this space are seizing market opportunities right and left. One major player that's perhaps less talked about than well-known names like Amazon or Shopify is MercadoLibre (NASDAQ:MELI), the largest e-commerce company in Latin America.
Founded in 1999, MercadoLibre didn't become a publicly traded entity until 2007. Since that time, shares of the company have gained more than 5,330%. In the past five years alone, the stock has shot up by an eye-popping 900%.
It isn't just MercadoLibre's share price that has skyrocketed over the years, either. The company has a long, respectable track record of delivering strong revenue growth. For example, in 2016, 2017, 2018, 2019, and 2020, MercadoLibre delivered respective net revenue increases of 30%, 66%, 18%, 60%, and 73%. And in the first quarter of 2021, MercadoLibre grew its net revenue by a whopping 111%. It also recorded insane unique active user growth of about 62% year over year, bringing its total user count to just shy of 70 million individuals at the end of the three-month period.
The company derives its revenue from two primary business segments: its e-commerce platform and its online payments ecosystem. In the first quarter of 2021 alone, MercadoLibre reported that its e-commerce revenues increased 139%, while fintech revenues surged 72% from the year-ago period.
MercadoLibre has tons of runway left to explore in the Latin American e-commerce market. According to Statista, "In 2019, it is estimated that the region harbored 267.4 million digital buyers, a figure forecast to grow over 31 percent by 2024." Statista's report also noted that, "Although the adoption of e-commerce in Latin America is still lower than in other emerging regions, online retail sales in this part of the world generated more than 70 billion U.S. dollars in 2019 and are expected to hit 116 billion by 2023."
Globally, both the e-commerce and fintech sectors are on track to realize tremendous growth in the years ahead. MercadoLibre's dual success in these highly lucrative, fast-growing, and complementary industries make the stock an exceedingly attractive buy for long-term investors.
2. AbbVie
Healthcare stock AbbVie (NYSE:ABBV) is another compelling buy for long-term investors. Although it hasn't produced the rapid returns that MercadoLibre has in recent years, the stock has plenty of other green flags to recommend it.
Prospective buyers should know that AbbVie is a member of the elite club of stocks called Dividend Aristocrats. In fact, AbbVie is just shy of being crowned a Dividend King. The top dividend stock has an attractive yield of 4.4% at the time of this writing, which is notably higher than what the average stock trading on the S&P 500 pays (approximately 2%). Meanwhile, shares of AbbVie have increased by a healthy 83% over the trailing-five-year period.
In the first quarter of 2021, AbbVie reported that its net revenue increased by a notable 51% on a year-over-year basis. Its net earnings also grew by a double-digit percentage -- 18% from the year-ago quarter.
Some investors have been worried about AbbVie's ability to sustain optimal top- and bottom-line growth over the long term because it's losing U.S. patent exclusivity for its blockbuster drug Humira -- which is also the top-selling drug in the world -- in a couple of years. While biosimilar competition is sure to put a dent in sales of Humira once its U.S. patent exclusivity ends, the drug is likely to continue generating substantial balance-sheet growth for AbbVie. Plus, AbbVie has plenty of other top-selling products to fall back on, bolstered by the stable of brands it acquired when it purchased Allergan in May 2020.
AbbVie's portfolio of immunology drugs -- which include Humira -- accounted for $5.7 billion of its overall first-quarter net revenues of $13 billion. Humira generated $4.9 billion of this total, while Skyrizi and Rinvoq produced respective net revenues of $574 million and $303 million during the three-month period. Hematologic oncology drugs Imbruvica and Venclexta were also key growth drivers for AbbVie in the quarter, with net revenues of $1.3 billion and $405 million.
AbbVie is already seeing the fruits of its Allergan purchase. In the first quarter, Botox Cosmetic, Juvederm Collection, and Botox Therapeutic generated respective net revenues of $477 million, $321 million, and $532 million, while eye-care products Lumigan/Ganfort, Alphagan/Combigan, and Restasis delivered respective net revenues of $143 million, $118 million, and $280 million.
Investors in search of reliable, robust dividend income and excellent long-term growth prospects need look no further than this unstoppable healthcare stock for durable portfolio returns and wealth-building potential.
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Rachel Warren has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Amazon, MercadoLibre, and Shopify. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While biosimilar competition is sure to put a dent in sales of Humira once its U.S. patent exclusivity ends, the drug is likely to continue generating substantial balance-sheet growth for AbbVie. AbbVie Healthcare stock AbbVie (NYSE:ABBV) is another compelling buy for long-term investors. Prospective buyers should know that AbbVie is a member of the elite club of stocks called Dividend Aristocrats. | AbbVie Healthcare stock AbbVie (NYSE:ABBV) is another compelling buy for long-term investors. Prospective buyers should know that AbbVie is a member of the elite club of stocks called Dividend Aristocrats. In fact, AbbVie is just shy of being crowned a Dividend King. | AbbVie Healthcare stock AbbVie (NYSE:ABBV) is another compelling buy for long-term investors. Prospective buyers should know that AbbVie is a member of the elite club of stocks called Dividend Aristocrats. In fact, AbbVie is just shy of being crowned a Dividend King. | AbbVie Healthcare stock AbbVie (NYSE:ABBV) is another compelling buy for long-term investors. Prospective buyers should know that AbbVie is a member of the elite club of stocks called Dividend Aristocrats. In fact, AbbVie is just shy of being crowned a Dividend King. | e21a0e91-fa1e-4649-bba8-c428ea16c35c |
23998.0 | 2021-07-27 00:00:00 UTC | AbbVie, Calico Again Extend Collaboration Focused On Aging And Age-Related Diseases | ABBV | https://www.nasdaq.com/articles/abbvie-calico-again-extend-collaboration-focused-on-aging-and-age-related-diseases-2021-07 | nan | nan | (RTTNews) - AbbVie (ABBV) and Calico Life Sciences agreed to extend their collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. It is the second extension of the collaboration originally established in 2014.
As part of the collaboration, working together with AbbVie, Calico pursues discovery-stage research and development utilizing state-of-the-art technology and advanced computing capabilities. AbbVie provides scientific and clinical development support and will lend its expertise to future commercialization activities.
As per the terms of the deal, the collaboration between the two companies will extend in 2022 for an additional three years. Calico will be responsible for research and early development until 2025 and will advance collaboration projects into Phase 2a through 2030.
AbbVie will continue to support Calico in its early R&D efforts and, following completion of Phase 2a studies, will have the option to manage late-stage development and commercial activities.
The companies will share costs and profits equally. They will each commit to contribute an additional $500 million to the collaboration.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) and Calico Life Sciences agreed to extend their collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As part of the collaboration, working together with AbbVie, Calico pursues discovery-stage research and development utilizing state-of-the-art technology and advanced computing capabilities. AbbVie will continue to support Calico in its early R&D efforts and, following completion of Phase 2a studies, will have the option to manage late-stage development and commercial activities. | As part of the collaboration, working together with AbbVie, Calico pursues discovery-stage research and development utilizing state-of-the-art technology and advanced computing capabilities. AbbVie will continue to support Calico in its early R&D efforts and, following completion of Phase 2a studies, will have the option to manage late-stage development and commercial activities. (RTTNews) - AbbVie (ABBV) and Calico Life Sciences agreed to extend their collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. | (RTTNews) - AbbVie (ABBV) and Calico Life Sciences agreed to extend their collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As part of the collaboration, working together with AbbVie, Calico pursues discovery-stage research and development utilizing state-of-the-art technology and advanced computing capabilities. AbbVie provides scientific and clinical development support and will lend its expertise to future commercialization activities. | AbbVie will continue to support Calico in its early R&D efforts and, following completion of Phase 2a studies, will have the option to manage late-stage development and commercial activities. (RTTNews) - AbbVie (ABBV) and Calico Life Sciences agreed to extend their collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As part of the collaboration, working together with AbbVie, Calico pursues discovery-stage research and development utilizing state-of-the-art technology and advanced computing capabilities. | f1df3f71-0105-4361-b7d3-8bb84648c8a1 |
23999.0 | 2021-07-26 00:00:00 UTC | The Smartest Dividend Aristocrats to Buy With $500 Right Now | ABBV | https://www.nasdaq.com/articles/the-smartest-dividend-aristocrats-to-buy-with-%24500-right-now-2021-07-26 | nan | nan | Aristocracy isn't all it's cracked up to be. You'd think that stocks that are Dividend Aristocrats -- members of the S&P 500 with at least 25 consecutive years of dividend increases -- would by default have really attractive dividends. Many of them don't. And quite a few of those with relatively puny dividend yields haven't delivered impressive growth, either.
However, there are stocks in this elite group that provide either a juicy dividend, solid growth prospects, or both. You don't even need a lot of upfront money to invest in these promising dividend stocks. Here are the three smartest Dividend Aristocrats to buy with $500 right now, in my opinion.
Image source: Getty Images.
AbbVie
You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). Its dividend yield currently stands at 4.42%. The drugmaker is only one dividend hike away from becoming a Dividend King -- the highest level of dividend royalty reserved for S&P 500 members with 50 or more consecutive years of dividend increases.
AbbVie is a spin-off from another Dividend Aristocrat, Abbott Labs. Since the two companies separated in 2013, AbbVie has increased its dividend by a whopping 225%.
There's one glaring issue with AbbVie, though. In 2023, sales for the company's best-selling drug, Humira, will inevitably begin to decline with the launches of biosimilar rivals in the U.S. market. AbbVie knows that this is going to pull down its overall revenue.
The good news is that the decline should only be temporary. AbbVie predicts that it will return to growth in 2024 after one down year. And over the rest of the decade, the company expects robust growth as sales for its other products increase.
Lowe's
Lowe's (NYSE: LOW) is one of those Dividend Aristocrats I mentioned earlier that doesn't provide a dividend that's going to fire up many investors. Its yield currently stands at 1.64% -- not horrible but not awe-inspiring, either.
However, Lowe's makes up for its modest dividend with not-so-modest growth. Last year, the home improvement retailer's shares trounced the market, soaring 34%. So far in 2021, Lowe's stock is again beating the market with a gain of 24%.
Look for this momentum to continue. The current housing boom isn't over. Even though interest rates will rise somewhat, they'll likely still be near historic lows. The work-from-home trend won't disappear. As people move from apartments in big cities to their own houses in less expensive locations, it should lead to more home improvement projects.
Wall Street analysts expect that Lowe's will deliver average annual earnings growth of more than 19% over the next five years. That's well above the earnings growth for the company over the last five years, a period when Lowe's stock jumped nearly 150%.
PepsiCo
Like AbbVie, PepsiCo (NASDAQ: PEP) is getting close to becoming a Dividend King. The company recently announced its 49th consecutive annual dividend increase. Pepsi's yield currently stands at 2.77%, which is a lot better than many of its fellow Dividend Aristocrats offer.
The consumer packaged goods giant also continues to deliver strong growth. Pepsi handily beat Wall Street analysts' estimates with its second-quarter results. Its overall organic revenue jumped 13% year over year with earnings per share soaring 27%.
Perhaps the most striking thing about Pepsi is the resilience of its business. The company has successfully navigated major changes in consumer preferences in the beverage and snacks markets in recent years as well as a global pandemic.
Analysts project around 9% average annual earnings growth for Pepsi over the next five years, much higher than the company's growth rate over the last few years. With an attractive dividend combined with solid growth prospects, I think that Pepsi stock could deliver market-beating total returns over the next decade.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). AbbVie is a spin-off from another Dividend Aristocrat, Abbott Labs. Since the two companies separated in 2013, AbbVie has increased its dividend by a whopping 225%. | AbbVie You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). AbbVie is a spin-off from another Dividend Aristocrat, Abbott Labs. Since the two companies separated in 2013, AbbVie has increased its dividend by a whopping 225%. | AbbVie You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). AbbVie is a spin-off from another Dividend Aristocrat, Abbott Labs. Since the two companies separated in 2013, AbbVie has increased its dividend by a whopping 225%. | AbbVie You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). AbbVie is a spin-off from another Dividend Aristocrat, Abbott Labs. Since the two companies separated in 2013, AbbVie has increased its dividend by a whopping 225%. | 5ac49d83-b5b7-4911-b5d1-ee2cac1607b0 |
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