Novartis’s Shares Fall after 2Q15 Earnings
Novartis (NVS) reported its earnings on July 21, 2015, at 8:00 AM EST. After the release, shares closed at $103.71, down ~2.3% from the previous day’s closing of $106.12.
Sandoz, the generics arm of Novartis (NVS), reported a 2% decline in its revenues to $2.29 billion in 2Q15 as compared to $2.33 billion in 2Q14.
Alcon, the eye care segment of Novartis (NVS), which contributed nearly 19% of the company’s total revenues in 2014, reported a 9% revenue decline.
In 2Q15, Novartis (NVS) achieved revenues of $12.69 billion, an increase of ~6.3% over 1Q15.
Novartis (NVS) posted its 2Q15 earnings on July 21, 2015. The company achieved adjusted EPS of $1.27 for 2Q15, ~7% lower than in 2Q14.
Biogen’s blockbuster drug Tecfidera registered much-lower-than-expected revenue growth, resulting in low full-year 2015 guidance.
On July 22, 2015, Biogen (BIIB) released data from a Phase 1b study, also called the PRIME Study, that looked at the effectiveness of its investigational Alzheimer’s drug, BIIB037.
Biogen’s (BIIB) hemophilia drugs, Alprolix and Eloctate, continued to gain new patients in 2Q15.
Biogen’s (BIIB) revenues from multiple sclerosis (or MS) drugs increased by a modest 1.3%, from $2.3 billion in 1Q14 to $2.6 billion in 2Q15.
In 2Q15, Biogen (BIIB) posted mixed results for its pipeline drugs. Investor sentiment remained favorable for its innovative multiple sclerosis (or MS) drugs.
Biogen’s (BIIB) revenues from its blockbuster multiple sclerosis (or MS) drug, Tecfidera, increased by 26%, from $700 million in 1Q14 to $884 million in 2Q15.
Biogen (BIIB) posted its 2Q15 earnings on July 24, 2015. The company’s adjusted earnings per share were $4.22.
Until now, about 120 research programs targeting Alzheimer’s disease have failed. Biogen’s and Eli Lilly’s drugs aim to reduce cognitive decline in patients by clearing plaques off the brain.
You can get exposure to Biogen’s new Alzheimer’s therapy, BIIB037, while avoiding company-specific risks by investing in the iShares NASDAQ Biotechnology ETF.
If approved, solanezumab would be a breakthrough therapy in the Alzheimer’s market. The drug actually seeks to cure the cognitive disease, not simply treat it.
Biogen presented mixed interim results from the PRIME study for its experimental Alzheimer’s drug, BIIB037, also known as aducanumab.
Since the second half of 2014, Biogen’s valuations have continued to be high, buoyed by strong performance and high investor expectations.
Biogen faces a unique combination of business risks, as well as risks specific to the biotechnology industry.
Biotechnology companies such as Biogen enter collaborations with each other or with pharmaceutical companies to co-develop or co-market new products, as well as to enter new markets.
Compared with 2013, Biogen’s total operating expenses rose by 31.9% in 2014. In 2014, the company’s R&D expenses accounted for 19.5% of its total revenues.
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