Mike Benson

Merck and Co. (MRK) will release its 1Q17 earnings on May 2, 2017. Analysts’ estimates show EPS of $0.83 on revenues of $9.25 billion for 1Q17.

The company reported operational growth of 5% in its revenues to 7.4 billion pounds for 1Q17.

On January 6, 2017, Novartis announced the collaborative agreement with Ionis Pharmaceuticals (IONS) and its subsidiary Akcea Therapeutics.

Novartis’s (NVS) Innovative Medicines segment contributed ~66.6% to overall 1Q17 revenue, or $7.7 billion.

Novartis (NVS) released its 1Q17 earnings on April 25, 2017, reporting a 25.0% rise in revenues at constant exchange rates compared to 1Q16.

Analysts estimate AstraZeneca will post EPS (or earnings per share) of $0.40 and revenues of $5.4 billion in 1Q17.

The Novartis acquisition has improved sales for GSK’s Vaccines business, mainly driven by the sales of meningitis vaccines Bexsero in Europe and Menveo in the US and Europe.

As of April 21, 2017, there are five analysts tracking Novartis. Of those, two have recommended a “strong buy,” and one has recommended a “buy.”

Novartis’s (NVS) Innovative Medicines segment includes products for therapeutic areas such as oncology, cardiometabolic, immunology, and dermatology.

Novartis is set to release its 1Q17 earnings on April 25, 2017. Analysts estimate its 1Q17 EPS at $1.12 with revenues of ~$11.7 billion.

Eli Lilly’s (LLY) human pharmaceutical segment contributes ~85.0% to Lilly’s total revenues.

The overall share of revenues for the Essential Health Products business fell marginally to 44.7% of the total revenues for 2016 from 45.2% of the total revenues for 2015.

Sanofi’s (SNY) Consumer Healthcare segment reported a 1.6% YoY (year-over-year) fall in revenues at 3.33 billion euros (about $3.56 billion) in 2016.

Eli Lilly (LLY) reported EPS (earnings per share) of $2.58 on revenue of $21.2 billion in 2016, compared to EPS of $2.26 on revenue of $20.0 million in 2015.

Sanofi’s (SNY) Established Prescription Products segment contributed nearly 30.5% of the company’s total revenues in 2016.

Sanofi’s (SNY) 2016 revenues were mainly driven by Sanofi Genzyme and Sanofi Pasteur.

Pfizer (PFE) reported an 8% increase in revenues to $52.8 billion for 2016 as compared to $48.9 billion for 2015.

Sanofi (SNY) reported a YoY (year-over-year) revenue growth of ~1.2% at constant exchange rates for 2016.

GSK’s Vaccines business reported growth of 14% to ~4.6 billion pounds in 2016.

Overall, the Pharmaceutical segment’s contribution to GSK’s total revenues was 57.7% in 2016.

The Gardasil franchise is Merck’s (MRK) leading vaccines franchise.

Sandoz, the generics arm of Novartis (NVS), is the number two generic medicines provider worldwide, and it’s number one in differentiated generics.

Keytruda, a prescription medicine classified under Merck’s (MRK) immunooncology franchise, is used to treat non-small cell lung cancer as well as melanoma.

Novartis’s Innovative Medicines segment, formerly referred to as its Pharmaceuticals segment, consists of products for therapeutic areas including oncology, respiratory, and established medicines.

Merck (MRK) reported a 1% increase in its revenues to $39.8 billion in 2016.

Merck (MRK) reported growth of 1% to $39.8 billion in its 2016 revenues as compared to $39.5 billion in 2015.

On a capital-structure-neutral basis, Merck currently trades at ~9.6x, which is much lower than the industry average of ~11.2x.

Novartis’s valuation has followed the industry’s overall trend over the last five years. Whether the healthcare sector’s valuation rises or falls, Novartis will definitely be affected.

Bristol-Myers Squibb’s (BMY) latest drug, Opdivo, was the seventh drug to be approved by the FDA for the treatment of melanoma.

Given the strong performance of Opdivo, Bristol-Myers Squibb’s Oncology segment emerged as its largest revenue contributor in 2016. The segment contributed ~35% of BMY’s total revenue.

Johnson & Johnson’s (JNJ) Consumer segment revenues fell 1.5% to ~$13.3 billion for 2016, compared to 2015.

Johnson & Johnson’s (JNJ) Oncology franchise grew 23.7% to ~$5.8 billion during 2016, including an operational increase of 25.2%.

Johnson & Johnson’s Medical Devices segment contributed nearly 35% to the company’s total revenues.

Johnson & Johnson’s (JNJ) top line increased 1.7% to ~$18.1 billion for 4Q16.

The oncology portfolio includes the drug Zydelig, which is used in combination with rituximab for the treatment of chronic lymphocytic leukemia (or CLL).

Incyte has classified its oncology product portfolio into targeted anti-cancer therapies and immuno-oncology or immunotherapies.

For 2016, Synagis reported 2% growth at constant exchange rates, following its 14% growth in sales in the US.

The revenues for AstraZeneca’s (AZN) Oncology segment rose ~20% at constant exchange rates in 2016.

AstraZeneca’s (AZN) Respiratory Product sales fell 3% at constant exchange rates to ~$4.8 billion during fiscal 2016.

In 4Q16, Eli Lilly (LLY) reported Basaglar sales of $40 million from Japan and several European markets.

Januvia and Janumet together contributed about 14.9% of Merck & Co.’s total revenues for 4Q16, an ~0.7% increase compared to 4Q15

On February 16, 2017, Sanofi was trading at a forward PE multiple of ~13.9x, as compared to the industry average of 15.7x.

Sanofi’s (SNY) established prescription products contributed nearly 28.9% of the company’s total 4Q16 revenues.

Sanofi’s (SNY) 4Q16 revenues were mainly driven by Genzyme and Sanofi Pasteur.

GSK’s Vaccines segment reported a rise of 18.0% to 1.1 billion pounds in 4Q16. The Novartis acquisition has improved sales for the segment.

Revenues for GSK’s Pharmaceuticals segment saw a shift in product performance, falling due to lower sales of its key products Seretide and Advair.

On January 31, 2017, Novartis was trading at a forward PE multiple of ~15.2x. Based on its last-five-year multiple range, this is neither high nor low.

Novartis (NVS) reported flat revenues at constant exchange rates during 4Q16 as well as in fiscal 2016. This was driven by growth in Sandoz revenues.

Sandoz, the Generics segment of Novartis (NVS), is second-largest generic medicines provider worldwide and number one in differentiated generics.

The overall contribution from NVS’s Innovative Medicines segment was ~67%, reaching $8.3 billion in 4Q16.