Healthcare

On March 27, 2017, the FDA also approved BRACAnalysis CDX test as a complementary diagnostic test to be used with ovarian cancer maintenance therapy Tesaro’s (TSRO) Zejula (miraparib).

CVS is paying more than 11 times the trailing 12-month EBITDA for Aetna.

Varian Medical Systems (VAR) spun off its imaging components business into Varex Imaging in January 2017, thus strengthening its positioning in the oncology market.

In 3Q17, Pfizer’s (PFE) Celebrex generated revenues of $212 million, a ~9% increase on a year-over-year (or YoY) basis and a 19% increase on a quarter-over-quarter basis.

In fiscal 2Q18, Medtronic registered sales of ~$1.1 billion from emerging markets.

Overview BD (BDX) has registered strong operating margin expansion in recent years. Its margin improved by 100 basis points in fiscal 2015 and 200 basis points in fiscal 2016. In fiscal 2017, BD’s margin expanded by ~180 basis points. In 4Q17, BD’s operating margin grew ~14.6% YoY (year-over-year), limited by 700 basis points due to the divestiture of BD’s […]

Eli Lilly’s cardiovascular franchise includes the drugs Cialis and Effient, but for 3Q17, both drugs reported lower sales.

Lorlatinib is Pfizer’s (PFE) investigational next-generation ALK/ROS-1 tyrosine kinase inhibitor in clinical trials to evaluate its safety and efficacy in the treatment of ALK-positive metastatic non-small cell lung cancer.

Nektar Therapeutics (NKTR) recognized $128 million of the $150 million upfront payment from Eli Lilly (LLY) related to the development of investigational drug NKTR-358.

Johnson & Johnson (JNJ) reported revenues of $19.7 billion during 3Q17, a 10.3% increase as compared to revenues of $17.8 billion during 3Q16. However, the gross profit margins contracted in 3Q17.

Abbott’s Medical Devices segment has products for rhythm management, heart failure, electrophysiology, structural heart diseases, neuromodulation, and more.

Immunology drug revenue In 3Q17, Remicade generated revenue of $214 million, a ~31% fall YoY (year-over-year) and 3% growth QoQ (quarter-over-quarter). During the first nine months of 2017, Remicade reported revenue of $651 million, which reflected a ~35% fall YoY. Foreign exchange had a 3% favorable effect towards 3Q17 Remicade revenue. In 3Q17, Simponi reported revenue of […]

Exelixis (EXEL) expects the FDA’s approval for Cabometyx for first-line RCC (renal cell carcinoma) to be a major revenue driver.

Sanofi reports its business in two segments: Human Pharmaceuticals and Sanofi Pasteur, or the Human Vaccines segment.

Zimmer Biomet Holdings witnessed a strong performance in its Asia-Pacific region. It contributed 16% to the company’s total sales.

The International Monetary Fund (or IMF), in its “World Economic Outlook” (or WEO) released in October, upgraded the economic forecast for the United Statess for 2017.

In 3Q17, Roche’s (RHHBY) Gazyva generated revenues of 69 million Swiss francs, which reflected ~34% growth on a year-over-year (or YoY) basis.

BeneFIX revenues fell 14% to $151 million during 3Q17, driven by a 16% fall in international sales to $87 million.

In 3Q17, Amgen’s (AMGN) Neulasta generated revenues of around $1.1 billion, a ~6% decline on a year-over-year (or YoY) basis and ~3% growth on a quarter-over-quarter basis.

On September 7, 2017, Alnylam Pharmaceuticals (ALNY) announced that it had reached an agreement with the US Food and Drug Administration (or FDA) related to the design of the phase three program for investigational RNAi therapeutic Givosiran.

Mako sales in 3Q17 In 3Q17, Stryker sold 33 Mako robots, compared with 30 robots in 3Q16. In 2Q17, Stryker installed 26 Mako robots. Of these 33 robots, 23 were installed in the United States. Around 40% of US sales are expected to be in competitive accounts. Stryker is training surgeons on its total knee application […]

In September 2017, AbbVie (ABBV) presented successful results from its phase 3 SELECT-BEYOND trial.

In September 2017, AbbVie (ABBV) presented the results from a phase 2B trial of upadacitinib (ABT-494) for the treatment of adult individuals with moderate to severe atopic dermatitis.

Wall Street analysts estimate Merck’s (MRK) top line will increase marginally by 0.1% to ~$10,546 million in 3Q17.

Across the five moat sources (network effect, intangible assets, cost advantage, switching costs, and efficient scale), efficient scale is the most likely to drive a “narrow moat” rating from Morningstar.

United Parcel Services (UPS US) earns a “wide economic moat” rating from Morningstar from efficient scale, cost advantage, and the network effect.

PFE stock rose ~7.3% in 3Q17 and has risen ~11.3% YTD (year-to-date) as of October 16.

Indonesia’s (IDX) (ASEA) manufacturing activity stood at 50.4 in September 2017 compared to 50.7 in August 2017.

In 1H17, Eli Lilly’s (LLY) Basaglar generated revenues of around $132.6 million, compared with $27.2 million in 1H16.

Johnson & Johnson’s (JNJ) medical device business has been restructuring in order to focus on higher growth areas with potential expansion opportunities.

In 2Q17, Sanofi’s (SNY) vaccine business reported revenues of 1.0 billion euros, which is a YoY rise of 26.2% on a CER basis and 19.2% on a CER and CS basis.

In September 2017, Eli Lilly announced that a 12-month open-label study showed a positive safety and tolerability profile of Galcanezumab for migraines.

On October 5, 2017, Baxter International (BAX) announced the voluntary recall of a shipment from a lot of Intralipid 20% IV Fat Emulsion, 100 mL. This lot was distributed from August 11 to August 31, 2017.

In August 2016, Walgreens announced a long-term strategic alliance with Prime Therapeutics, America’s fourth-largest PBM.

The US is Walgreens’ largest market and accounts for more than 70% of its total sales and operating income.

The US drugstore market is dominated by two major players—CVS Health (CVS) and Walgreens Boots Alliance (WBA). CVS and WBA accounted for ~29% of the country’s prescription dispensing revenues in 2016.

According to the report provided by Markit Economics, Japan’s services PMI (EWJ) (DXJ) stood at 51.0 in September 2017 compared to 51.6 in August 2017.

Japan’s manufacturing PMI stood at 52.90 in September 2017, compared to 52.20 in August 2017. The PMI figure beat the preliminary market estimation of 52.5.

On September 19, 2017, Becton, Dickinson, and Company (BDX), or BD, introduced a new pen needle for its pen injection devices.

Cardinal Health’s (CAH) Specialty Solutions segment provides two types of services: upstream to pharmaceutical and biopharmaceutical manufacturers and downstream to healthcare providers.