Does Novartis See Much Potential for Its Surgical Business?
In 2017, Novartis (NVS) has planned to conduct a review of its Alcon segment to evaluate the business’s growth potential.
Due to the failure of the new healthcare bill, major pharmaceutical companies witnessed a fall in their share prices from March 23, 2017, to March 27, 2017.
The healthcare bill’s failure had a negative impact on investor sentiment for health insurance carriers.
Trumpcare’s failure is considered to be a boon by hospital companies treating a significant portion of Medicaid members.
On March 24, 2017, House Speaker Paul Ryan pulled back the American Health Care Act, also known as “Trumpcare,” before votes were cast.
GlaxoSmithKline (GSK) is estimated to report EPS of 111.01 pence on revenues of ~30.0 billion pounds in 2017, 7.6% growth compared to 2016 revenues.
GSK’s Vaccines business reported growth of 14% to ~4.6 billion pounds in 2016.
GSK’s Consumer Healthcare segment achieved growth of 9% to ~1.8 billion pounds in the US markets during 2016, highlighted by the strong performance of Flonase and new products under the Sensodyne brand.
HIV products reported growth of 37% to ~3.6 million pounds in 2016 compared to 2015.
GSK’s Consumer Health revenues increased ~9% during 2016 to ~7.2 billion pounds. The increase was mainly due to the Wellness and Skin Health franchise.
Overall, the Pharmaceutical segment’s contribution to GSK’s total revenues was 57.7% in 2016.
Excluding HIV business revenues, the Pharmaceuticals business reported revenues of ~12.6 billion pounds in 2016.
GlaxoSmithKline’s top line increased 17% to ~27.9 billion pounds for 2016, driven by an operational increase of 6% and a favorable currency impact of ~11%.
On March 27, 2017, GlaxoSmithKline (GSK) was trading at a forward PE multiple of 15.2x, which is lower than the industry average of 16.1x.
Analysts estimate EPS of ~$0.94 for 1Q17 and EPS of ~$0.95 for 2Q17.
The Gardasil franchise is Merck’s (MRK) leading vaccines franchise.
Merck’s (MRK) animal health segment operates in more than 140 countries worldwide.
Januvia and Janumet are two of Merck’s (MRK) blockbuster drugs in the diabetes franchise.
Remicade, one of the top-selling drugs for the treatment of inflammatory disorders, is losing its market share after the loss of exclusivity in European markets in 2015.
Merck (MRK) reported growth of 1% to $39.8 billion in its 2016 revenues as compared to $39.5 billion in 2015.