Jillian Dabney

During 3Q16, Pfizer (PFE) recorded revenue amounting to $13 billion. Excluding the impact of foreign exchange, the company’s revenue rose 8% annually.

BioMarin decided to withdraw its MAA (Marketing Authorization Application), given the expectation of a negative decision on the drug from the EMA.

Vertex Pharmaceuticals (VRTX) reported its 2Q16 earnings on July 27, 2016. VRTX surpassed Wall Street analysts’ projections and reported revenue of $431.6 million.

During 4Q15 and 1Q16, Valeant Pharmaceuticals’ (VRX) net margin turned negative. That followed its struggling high-margin dermatology products and the foreign exchange impact.

For the last five years, Novo Nordisk (NVO) has been trading at higher multiples when compared with peers.

LifePoint released earnings for 4Q15 and 2015 on February 12, 2016. Following the earnings release, analysts revised their recommendations on the company.

The recent fall in BioMarin’s stock price is due to the rejection of its drug Kyndrisa, indicated for Duchenne muscular dystrophy.

According to a March 3, 2016, Bloomberg consensus of five brokerage firms, 60% of brokerage firms rated Sanofi as a “buy,” while 40% of the broker firms rated the company as a “hold.”

Regeneron is consistently trading at a premium compared to its peers. As of January 22, it was trading at a valuation multiple of 26.67x its earnings.

Using relative valuation, Valeant’s forward EV-to-EBITDA multiple was 6.87x on January 28, 2016. EV-to-EBITDA multiples for Merck, Sanofi, and Pfizer were 8.99x, 9.22x, and 8.99x, respectively.

Eylea, the leading product in Regeneron Pharmaceuticals’s (REGN) portfolio, fetched $746 million during the fourth quarter of 2015 in the US.

During 3Q16, Novo Nordisk’s (NVO) net sales rose 2.8% to 27.5 billion Danish kroner from 26.8 billion Danish kroner in 3Q15.

During 1Q16, NVO generated ~77% of its total revenue from its diabetes portfolio. New generation insulin includes sales from Tresiba, Xultophy, and Ryzodeg.

Considering the robust growth prospects for many of its products going forward, Pfizer should return to robust top line growth.

According to a Bloomberg consensus of 21 brokerage firms dated May 9, 57.9% rated Medivation a “buy” and 42.1% rated it a “hold.”

On October 4, 2016, Bristol-Myers Squibb (BMY) was trading at a forward PE (price-to-earnings) multiple of 16.8x. With products Opdivo and Yervoy, the company leads the immuno-oncology space.

After the announcement of Novo Nordisk’s earnings for 4Q15 and fiscal 2015, the stock tumbled by ~6%.

Considering the prospects for the pipeline, Medivation should get more than what Sanofi offered. It will probably get more than what Pharmacyclics received.

Japan is the second-largest individual pharmaceutical market in the world. It accounts for less than 10% of the total global pharma market.

Xtandi is the major factor behind Pfizer’s (PFE) interest in Medivation (MDVN). The drug, along with MDVN’s pipeline molecules, should strengthen Pfizer’s (PFE) oncology franchise.

During its 2Q16 earnings call, BioMarin revised its 2016 revenue guidance. It now expects revenue to be $1.1 billion–$1.15 billion.

Valeant Pharmaceuticals International (VRX) has grown inorganically through highly leveraged acquisitions. From 2008 to 2015, it acquired more than 100 companies.

On August 22, Medivation (MDVN) and Pfizer (PFE) entered into a definitive agreement. Pfizer will acquire Medivation for a consideration of ~$14 billion.

Medivation’s portfolio complements Pfizer’s existing oncology portfolio that includes solid tumors, hematology, and immunology-oncology.

Of its total outstanding shares, Valeant Pharmaceuticals’ (VRX) institutional ownership stood at 69.2%.

Valeant’s (VRX) core business includes its dermatology and consumer franchise business and the acquired Bausch + Lomb and Salix Pharmaceuticals businesses.

Opdivo’s significant regulatory advances over the past quarter include approval for head and neck cancer indications, among others.

Acthar is Mallinckrodt’s (MNK) leading product, and the company plans to achieve mid-single-digit to low-double-digit growth for the drug in fiscal 2016.

BioMarin Pharmaceutical (BMRN) expects its existing commercialized drugs to add $1.1 billion and $1.2 billion to its top line in 2016.

In 1Q16, Strensiq added $33.2 million to Alexion Pharmaceuticals’ top line. Now the drug is in its initial launch phase in the US, Germany, and Japan.

When compared with its estimated $30.2 billion total revenue for 2016, Gilead Sciences’s (GILD) $99 billion market capitalization on November 23 seemed to be at a greater discount. GILD had a forward PE ratio of ~7.0x against its peers’ average PE of ~12.1x.

On August 11, 2016, Valeant Pharmaceuticals (VRX) was trading at a forward PE (price-to-earnings) multiple of ~3.0x.

BioMarin (BMRN) is expected to report 2Q16 earnings on August 4, 2016. “Buy” ratings have increased to 94.7% from 90% on June 29, 2016.

Wall Street analysts anticipate that Valeant will record $2.47 billion and $2.54 billion total revenue for 2Q16 and 3Q16, respectively.

Regeneron Pharmaceuticals (REGN) depends heavily upon its key drug, Eylea, which recorded global sales of $4.1 billion during fiscal 2015.

Novo’s (NVO) Biopharmaceuticals segment rose 5.2 billion Danish kroner during 3Q16.

Of its three businesses, Bausch & Lomb’s share in Valeant Pharmaceuticals’ (VRX) overall EBITA (earnings before interest, tax, and amortization) was 32%.

With the sale of Salix, Valeant’s adjusted revenues will fall 14.0%. Since Salix is a high-margin business, the sale will adversely impact Valeant’s margins.

Since its launch in February 2015, Pfizer’s Ibrance has quickly captured the advanced breast cancer market and has reached more than 40,000 patients.

Valeant Pharmaceuticals (VRX) announced earnings for 2Q16 on August 9, 2016.

Bristol-Myers Squibb’s (BMY) Opdivo’s will now share the second-line lung cancer therapy market with Roche’s Tecentriq, along with Merck’s Keytruda.

Valeant Pharmaceuticals (VRX) has been keeping an eye on the progress of its dermatology and gastrointestinal portfolio.

Regeneron’s (REGN) flagship product, Eylea (Aflibercept), was launched in the US in November 2011.

Vyxeos would offer commercial synergies to the Jazz Pharmaceuticals portfolio in the form of a complementary targeted prescriber base of AML patients who undergo HSCT.

Novo Nordisk’s two business segments are diabetes and obesity care and biopharmaceuticals. In 1Q16, they saw annual sales growth of 6% and 15%, respectively.

In January 2016, Horizon acquired Krystexxa from Crealta Holdings. The drug has been approved by the FDA for the treatment of chronic refractory gout.

Horizon plans to drive Krystexxa through increased awareness and outreach, investing in its marketing and medical education as well as commercial infrastructure.

On March 16, Valeant Pharmaceuticals was trading at a forward PE multiple of 2.94x. This appears to be a significant discount compared to peers.

Valeant Pharmaceuticals (VRX) announced its 3Q16 earnings on November 8. On a GAAP basis, Valeant reported a loss of ~$1.2 billion, which reflects a loss of $3.49 per diluted share during the period.

During 2016, Pfizer (PFE) succeeded in expanding its label for Ibrance, its breast cancer treatment.

Once Alexion taps the numbers of Strensiq and Kanuma, its share price will most likely rise.

Through the acquisition of Raptor Pharmaceuticals, Horizon Pharma (HZNP) will gain access to Procysbi and Quinsair and expand in the orphan drug space.

Gilead Sciences’s (GILD) TAF-based (tenofovir alafenamide) regimen comprises three products: Genvoya, Descovy, and Odefsey.

Roche Holding (RHHBY) generated ~78% of its group sales from the pharmaceuticals division.

Here we present an overview of BioMarin. It’s based in California and was founded in 1997. It focuses on therapies for life-threatening rare genetic diseases.

Regeneron Pharmaceuticals (REGN) earned $1.1 billion in 4Q15, which translates to a 37% YoY (year-over-year) sales growth.

During 4Q15, salaries and benefits for LifePoint Health (LPNT) amounted to $652.7 million, up 6.6% in comparison with the same quarter of the previous year.

Novo Nordisk (NVO) operates in two major segments: diabetes and obesity care and biopharmaceuticals. Diabetes care has been Novo’s major business area.

As of November 1, Pfizer had ~94 projects in various development stages. More than 40% of these projects are in phase three or the registration phase.

Horizon Pharma’s Primary Care division is the company’s largest revenue contributor and grew by 33% on a yearly basis in 2Q16.

BioMarin Pharmaceutical (BMRN) reported its 3Q16 earnings on October 27, 2016. Revenues were $279.9 million, which was lower than Wall Street analysts’ projections.

If Xtandi is successful in achieving a longer treatment duration of about ten months, it could earn up to $1 billion in the breast cancer space.

Baxalta’s (BXLT) hemophilia portfolio comprises of Advate, Adynovate, Rixubis, Recombinate, Hemofil M, Immunate, Immunine, and Prothromplex Total.

The Japanese pharmaceuticals market is not very welcoming to foreign companies. Similarly, the Japanese population is quite loyal to domestic manufacturers.

Pfizer plans to use avelumab, a PD-L1 (programmed death-ligand 1) class immuno-oncology product, as a backbone therapy in its immuno-oncology programs.

Alexion added Kanuma to its portfolio in 2015 after its Synageva acquisition. But ALXN didn’t have much time to build diagnostics as it did with Strensiq.

In fiscal 3Q16, Regeneron Pharmaceuticals (REGN) recorded revenue amounting to $1.2 billion and net product sales amounting to $857 million.

Hemophilia treatment primarily includes factor replacement therapy and prolonged half-life therapy such as factor VIII or factor IX infusion.

The consensus 12-month target price for Valeant Pharmaceuticals is $36, which translates to a ~77.3% return potential compared to Valeant’s closing price of $20.3 on November 2, 2016.

BioMarin holds three drugs in its portfolio indicated for different types of mucopolysaccharidoses disorders. They are Vimizim, Naglazyme, and Aldurazyme.

Wall Street analysts expected Mallinckrodt’s revenues for fiscal 2Q16 to be ~$871.5 million, but Mallinckrodt surprised them with sales of $918 million.

On March 1, 2016, BioMarin received orphan drug designation for BMN 270 from the FDA. BioMarin’s stock jumped by about 6.96% the same day.

With three products—Sovaldi, Harvoni, and Epclusa—in its arsenal, Gilead Sciences (GILD) dominates the HCV (hepatitis C virus) market.

Over the past year, Pfizer completed multiple acquisitions to restore its top line growth. They will offset the revenue decline and fuel Pfizer’s top line.

YTD, Amgen’s (AMGN) stock has already fallen 9%. Perhaps the pressure that Enbrel (etanercept) is seeing is to blame for the negative investor sentiment.

Specialty Generics’ contribution to Mallinckrodt’s net sales fell by 18% to $1 billion in 2016. The business had a 31% share in total net sales in 2016.

Valeant Pharmaceuticals was trading at a forward EV-to-EBITDA multiple of 5.64x on March 16. This looks to be a huge discount when compared peers.

The gastrointestinal (or GI) drug market in the United States is expected to grow at a CAGR of 5.0% over a five-year period from 2014 to 2019.

Wall Street analysts expect Elaprase to earn $145.6 million in 2Q16 and $140.5 million in 3Q16.

Mallinckrodt (MNK) is a specialty pharmaceuticals company that relies on volume-driven growth. Let’s discuss the performances of its three segments.

Valeant’s (VRX) recent wins include the FDA’s advisory committee vote in favor of approving brodalumab for the indication of mild to moderate psoriasis.

On April 2016, Promacta received approval in the EU for treating ITP patients who are one year of age and older.

With the Enobia acquisition in February 2012, Alexion benefited in long-term disease awareness, diagnostic planning, and initiatives in the HPP space.

According to analyst estimates, BioMarin should earn $278.4 million and $273.5 million in 2Q16 and 3Q16, respectively. That’s a yearly sales growth of 11.1% and 30.9%, respectively.

Like other big pharmaceutical companies, Pfizer witnessed negative top line growth. With multiple acquisitions recently, it’s poised to grow its top line.

Gilead Sciences (GILD) is expected to garner $28.3 billion in 2017 and $26.7 billion in 2018.

After Pfizer lost patent protection for Lipitor, Lyrica became increasingly important to it. During its peak in 2014, Lyrica added $5.2 billion to Pfizer’s top line.

Gilead Sciences (GILD) holds a share of nearly 80% in the antiretroviral therapy market, which covers ~840,000 patients.

Roche’s big three contributors include MabThera/Rituxan, Herceptin, and Avastin, which accounted for 14.7%, 13.9% and 13.7% of revenues in fiscal 1Q16.

Ligand Pharmaceuticals’s (LGND) product portfolio has expanded from nine programs in 2008 to 140+ programs in 2016.

With its acquisitions, Valeant’s long-term debt kept on swelling until it reached $30.2 billion at the end of 4Q15. It plans to repay $1.7 billion in 2016.

With increased M&A activity in the pharmaceuticals and biotechnology space, it wouldn’t be surprising if Roche Holding (RHHBY) acquired BioMarin (BMRN).

Novo’s (NVO) biopharmaceuticals segment sales grew by 6% on a reported basis to amount to 11.8 billion Danish kroner during 1H16.

On February 16, 2016, after Vertex’s (VRTX) 4Q15 and fiscal 2015 earnings release, revised ratings showed that 76% of analysts now recommend a “buy” for Vertex stock.

Over the past five quarters, the Bausch & Lomb business had shown a variation in the margins, where its gross margin fell to 61% in 3Q16 from 67% in 3Q15.

Actions to fix dermatology portfolio After the Philidor separation, Valeant Pharmaceuticals’ (VRX) dermatology business has suffered a lot. If you want to learn more about this controversy, please read What Happened in the Valeant-Philidor Controversy? Valeant’s actions to stop the declining dermatology business include a 20-year fulfillment program with Walgreens, a newly launched prior authorization approval […]

Analysts project that Roche will earn revenues of 12.5 billion in swiss francs during the second quarter of 2016—a YoY growth of 6.3% during the period.

On February 17, 2016, Vertex Pharmaceuticals (VRTX) was trading at a forward PE multiple of 15.20x. It’s trading at a discount when compared to peers Alexion (ALXN) and Regeneron (REGN).

Mallinckrodt’s Specialty Brands segment earned $535 million during fiscal 2Q16 and includes Acthar, the lead drug, as well as other drugs.

The PD-1 (programmed death-1)/PD-L1 (programmed death-ligand 1) class consists of Bristol-Myers Squibb’s Opdivo, Merck’s Keytruda, and Roche’s Tecentriq.