First Trust Health Care AlphaDEX Fund

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.

In 2Q17, United Therapeutics’ (UTHR) Remodulin generated revenues of around $158 million, which reflected ~8% growth on a quarter-over-quarter basis.

For the quarter ending March 31, 2017, Abiomed (ABMD) reported revenues close to $124.7 million, which represents a YoY growth of about 30%.

For fiscal 2017, Align Technology (ALGN) expects its 2017 revenues to grow operationally in the range of 15%–25% YoY.

WellCare Health Plans has updated its earnings per share guidance from the previously estimated range of $6.00–$6.25 to the new range of $6.55–$6.80.

Dentsply Sirona’s (XRAY) 1Q17 earnings and revenue failed to meet analysts’ estimates. The company reported a fall in its organic revenue.

Trumpcare’s failure is considered to be a boon by hospital companies treating a significant portion of Medicaid members.

Revenues for Jakafi rose more than 42.0% to $852.8 million in 2016, from $601.0 million in 2015.

Mylan’s (MYL) 3Q16 revenues were mainly driven by a 17.0% rise in sales for its Generics segment. The segment reported $2.6 billion in sales in 3Q16.

According to MarketScan and Truven Health Analytics, approximately 9 million women in the US need therapy for symptoms related to uterine fibroids (or UF).

Baxter International (BAX) announced a quarterly cash dividend of $0.13 per share on November 8, 2016.

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.

On an annual basis, MNK’s net sales soared by 16% to $3.4 billion in 2016. Despite its better-than-estimated performance, shares fell by 9% on November 29.

The effects of repealing Obamacare Donald Trump is definitely not in favor of the Affordable Care Act, known as Obamacare. As he wants to repeal the act completely and replace it with another policy, the hospital sector fell on November 9, the day after the election. Trump believes that providing healthcare facilities to illegal immigrants costs […]

Trump’s healthcare agenda During his campaign, Trump came up with a seven-point plan for the healthcare industry. In this plan, he proposed to repeal the Affordable Care Act. Although a complete repeal doesn’t seem feasible, if applied, it would definitely take a toll on hospitals and insurance companies. In the next article, we’ll discuss the severity of […]

Edwards Lifesciences (EW) reported falling revenue in 3Q16. Its gross profit margin fell and was reported to be ~72.8% of its total revenue, compared to ~76.2% in 2Q16.

Signs of bear markets After outlining why he thinks bull markets in the US are more common than investors think, Richard Bernstein went on to discuss the signs of bear markets. He suggests that the prevailing pessimism of an impending bear market is unjustified. According to him, based on historical evidence, there are three indications […]

Edwards Lifesciences (EW) has witnessed steady growth over the years and gained a significant share of the market during the recent quarters.

On September 27, 2016, Boston Scientific (BSX) was trading at a forward PE (price-to-earnings) ratio of ~21.5x.

On September 27, 2016, Boston Scientific (BSX) announced the acquisition of EndoChoice Holdings for $210 million.

UTHR has been actively involved in strengthening its relationships with health insurers and physicians to ensure drug access for the patient community.

Europe represents a potential growth opportunity for Stryker, as the company currently has a low market share in Europe compared to other developed markets.

In August 2015, BSX acquired American Medical Systems’ male urology business for $1.6 billion in cash and milestone-based payments of $50 million.

In 2015, Richard Bernstein Advisors was defensively positioned. This means reduced allocation to equity and increased allocation to fixed income instruments.

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

Wall Street analysts expect Mallinckrodt’s (MNK) net margin to jump to 24.3% in 3Q16 from 10% in 3Q15.

According to Richard Bernstein, cyclical stocks tend to do better than stable growth companies in earnings-driven bull markets.

Varian Medical Systems’ next big technology innovation will be high-definition radiotherapy, which is an intelligent treatment delivery system that aims to achieve 100% radiation exposure for the tumor.

The number of procedures performed using Intuitive Surgical’s da Vinci surgical system in 1Q16 rose by around 17% year-over-year.

Edwards Lifesciences (EW) reported ~$697 million in total revenue in 1Q16. Of that, ~$366 million was contributed by the company’s THV (Transcatheter Heart Valve) Therapy segment.

Quest Diagnostics has been focusing on developing sales and marketing expertise, increasing esoteric testing, and building relationships with hospitals.

Ionis Pharmaceuticals (IONS) reported revenues of $284 million in 2015. Analysts are estimating that revenues will decline more than 16% to $237 million in 2016.

Some recent launches that might improve Zimmer Biomet’s market share include the modular XtraFix External Fixation system, a device for trauma patients that helps save time and cost.

In a Bloomberg survey of 22 brokerage firms reported on March 28, 2016, about 90.9% of the analysts surveyed rated Thermo Fisher’s stock as a “buy.”

This year, the healthcare sector seems to be receding, and the utilities sector seems to be in good gear. This is a sign that the early bear phase is over.

Becton Dickinson has positioned itself to leverage its diversified business segments and to provide end-to-end healthcare solutions to customers.

Centene posted its 4Q15 and 2015 earnings on February 09 and reported diluted operating EPS attributable to common shareholders of about $2.89 for 2015.

The Orthopedics segment of Stryker accounts for ~42% of total sales and witnessed a sales growth of around 5.8% on a constant currency basis for 3Q15.

Stryker offers a diversified portfolio of more than 60,000 products and services, with a focus on quality outcomes at lower costs through collaborations.

As it is susceptible to industry risks, Becton, Dickinson and Company (BDX), or BD, is transforming its business model.

On October 1, 2015, BD underwent organizational restructuring to better align its business model to the strategic vision and goals of the company.

According to Wall Street, Universal Health Services’ 3Q15 revenues are estimated to be about $2.2 billion—growth of about 9.5% on a YoY basis.

With the acquisition of Abbott Laboratories’ (ABT) non-US developed markets specialty and branded generics business, Mylan relocated its headquarters to the Netherlands.

In 1Q15, Teva beat Wall Street analysts’ revenue estimates of $4.81 billion, posting revenues of $4.98 million, an increase of ~3.5%.

Teva beat Wall Street adjusted EPS estimates of $1.25 by a wide margin, posting $1.36 EPS. This represents a growth of ~9%.

Acquisition rationale On March 30, 2015, Teva Pharmaceutical Industries (TEVA) announced its agreement to acquire Auspex Pharmaceuticals (ASPX) for $3.2 billion in enterprise value, a 42.4% premium to the company’s closing share price of $70.91 on March 27, 2015. This step will support the company’s near- and mid-term growth. Teva share price moved up a marginal […]

Pharmaceutical company Mylan’s (MYL) intention to acquire Perrigo became public on April 6, 2015. The acquisition would permit Mylan to expand into the over-the-counter drugs segment.

Copaxone 20mg/mL is the major growth driver for Teva Pharmaceutical Industries Ltd. (TEVA). In 2014, Copaxone accounted for 21% of Teva’s revenues.

Moody’s and Fitch maintained their investment grade ratings for Actavis, with respective ratings of Baa3 and BBB-.

Actavis’s gross margins improved from 44% in 2011 to 52% in 2014, due to improved gross margins for the North American Generics and International segments.

Valuation reflects the market’s perceptions of the industry’s growth prospects. The major value drivers for valuation are ROIC and the growth rate.

The US generics industry is fragmented. The top five companies accounted for 44.4% of the market share of unbranded generics in 2013, according to IMS Health.

What is a Sharpe ratio? A Sharpe ratio is a tool that measures the amount of returns for each unit of volatility that’s generated by a portfolio (higher returns and lower volatility equals more returns per unit of volatility). The measurement allows investors to analyze how much return they’re receiving from a portfolio in exchange for […]