iShares US Healthcare
What Did AGN’s US Medical Aesthetics Segment Contribute in 1Q16?
Allergan’s US medical aesthetics segment includes facial aesthetics, medical dermatology products, and a wide range of silicone and saline breast implants.
Market Response to EMA Validation of Opdivo Application
BMY has four key oncology products, including Erbitux, Opdivo, Sprycel, and Yervoy. Two of these contributed more than $1 billion in 2014.
High Yield Offers Attractive Potential in a Yield-Starved World
In an environment of generally decent, albeit recently disappointing, growth and gently rising yields, high yield offers attractive potential in a yield-starved world.
Danaher Corporation’s Excess Returns Fail to Impress
Earlier in this series, we looked at Danaher’s return on invested capital on a standalone basis. However, we were only looking at half the story.
Will Generic Drugs Help Curb Healthcare Costs?
Reducing medical costs would be a high priority in all economies, and generic drugs could provide a solution.
Understanding Bristol-Myers Squibb’s Other Segments
Sales from Bristol-Myers Squibb’s Neuroscience segment declined by 94% in 1Q16. Sales from the Immunoscience segment improved by ~18.7% in 1Q16 over 1Q15.
Key Factors That Impact Johnson & Johnson’s Forward Valuation
Two factors expected to impact Johnson & Johnson’s forward valuation are increasing competition for Olysio and further decline in international revenues.
Revenue Drivers for Krystexxa, Horizon’s Orphan Biologic Drug
Horizon plans to drive Krystexxa through increased awareness and outreach, investing in its marketing and medical education as well as commercial infrastructure.
Pfizer Has Strong Track Record since 2010
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.
Why US Stocks Appear Unattractive
US stocks appear unattractive despite the recent correction. A stronger dollar (UUP) and a slowing world has negatively affected large-cap earnings.
Four Key Deals: Analyzing Pfizer’s Impending Growth
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.
Central Nervous System Is Key to Teva’s Specialty Medicines
Revenues for Teva’s (TEVA) Specialty Medicines segment grew by 2.1% to $8,560 million in 2014, from $8,388 million in 2013.
Lyrica to Lose Patent Protection in the US 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.
Pfizer Has Received Commercial Rights for Cresemba in Europe
On June 14, 2017, Pfizer (PFE) announced an agreement with Basilea Pharmaceutica for exclusive commercial rights for Cresemba in Europe.
How Demographics Are Shaping Generic Drug Growth
The generic drugs industry is likely to sustain robust growth in the coming years, and demographics are a key piece of the puzzle! In fact, demographics are shaping generic drug growth in a huge way.
What Do Analysts Recommend for AbbVie?
Analysts updated their recommendations for AbbVie (ABBV) after the release of its 1Q16 earnings on April 28, 2016.
Why you should use the Sharpe ratio when investing in the medical device industry
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 […]
Amgen’s Stock Performance and Estimates after Q3 2018
Analysts expect Amgen’s (AMGN) stock price to fall ~1.4% over the next 12 months.
Assessing Pfizer’s Global Performance
Pfizer reported a rise in revenue in international markets in the second quarter, though this growth was offset by lower sales in US markets.
Pharma Stocks: Pfizer’s Revenue Trend and 2018 Estimates
Pfizer (PFE) reported revenue of ~$13.5 billion in the second quarter, a 4% YoY (year-over-year) rise in revenue.
Thermo Fisher to Offer Complete Cannabis Testing Solutions
Thermo Fisher Scientific (TMO) announced on September 7, 2018, that the company offers end-to-end analytical solutions that comply with cannabis testing standards as defined by Health Canada.
Examining Eli Lilly’s Oncology Products’ Q2 2018 Performances
Eli Lilly and Company’s (LLY) Human Pharmaceutical segment includes oncology products such as Alimta, Cyramza, Erbitux, Lartruvo, and Verzenio.
Key Updates on Akcea Therapeutics’ Volanesorsen
Ionis Pharmaceuticals’ (IONS) Volanesorsen is a drug for the treatment of familial chylomicronemia syndrome (or FCS) and familial partial lipodystrophy (or FPL).
Merck & Co.’s Human Vaccines Business in 3Q17
Merck & Co.’s (MRK) Gardasil franchise reported a 22% decline in revenues to $675 million in 3Q17 compared to $860 million in 3Q16.
Johnson & Johnson’s 4Q17 Earnings on January 23: What to Expect
Johnson & Johnson (JNJ), one of the largest pharmaceutical companies by revenue, is set to release its 4Q17 and 2017 earnings on January 23, 2018.
Developments for Ionis Pharmaceuticals Post-3Q17
Ionis Pharmaceuticals (IONS) is focused on the development of drugs for the treatment of diseases with limited or nontherapeutic options.
How’s Incyte’s Valuation in January 2018?
Analysts expect Incyte Corporation’s revenue to rise ~26.7% to $413.8 million in 4Q17 compared to $326.5 million in 4Q16.
How the US Economy Performed in 2017
This year has been a year to watch the US economy. Hopes for change, tax reform, and industry-friendly policies drove the markets (SPY) higher.
How the Medical Expense Tax Deduction Affects the Healthcare Industry
According to AARP, around 75% the population claiming these medical expense deductions from their income are 50 years or older.
How Is Pfizer’s Immunology and Inflammation Portfolio Positioned Now?
In 3Q17, Pfizer’s (PFE) Xeljanz generated revenues of $348 million, a ~48% increase on a year-over-year (or YoY) basis and 4% growth on a quarter-over-quarter basis.
Behind Eli Lilly’s Cymbalta and Other Neuroscience Products in 3Q17
Eli Lilly’s (LLY) neuroscience products portfolio includes the drugs Cymbalta, Strattera, and Zyprexa—all of which reported sales declines for 3Q17.
How Johnson & Johnson’s Profit Margins Trended in 3Q17
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.
Amgen Stock: Performance in 3Q17
Amgen stock has risen ~8.2% in 3Q17. It has risen ~25.9% year-to-date as of October 20, 2017.
Understanding Merck’s Valuation after 2Q17
Merck reported EPS of $1.01 on revenues of ~$9.93 billion for 2Q17, compared with its EPS of $0.93 on revenues of $9.84 billion in 2Q16.
Eli Lilly’s Oncology Products in 2Q17
Alimta’s sales totaled $532.9 million during 2Q17, a 12.0% decrease compared to $607.1 million for 2Q16.
Bristol-Myers Squibb’s Virology Products in 2Q17
Bristol-Myers Squibb’s (BMY) virology products portfolio includes products for the treatment of chronic virus infections.
Johnson & Johnson’s Revenue Continues to Grow in 2Q17
Johnson & Johnson’s revenue Johnson & Johnson (JNJ) reported ~2% growth in its top line to $18.8 billion in 2Q17, compared with $18.5 billion in 2Q16. The company surpassed analysts’ EPS (earnings-per-share) estimate of of $1.80 with EPS of $1.83. The above chart shows Johnson & Johnson’s revenue over the last few quarters. As the company […]
Incyte Had These Key Collaborations and Developments in 2Q17
Incyte (INCY) distributes its key drug, Jakafi, through its own network of specialty pharmacy providers and wholesalers in US markets.
How Allergan’s Segments Contributed to Overall Revenues
The US Specialized therapeutics business includes products from various therapeutic areas including eye care, medical aesthetics including skin care, facial aesthetics, plastic surgery and other products, medical dermatology, and neuroscience and urology franchises.
Pfizer’s Major Growth Drivers in 2Q17
Pfizer’s (PFE) growth contributors include products from both the innovative health and essential health businesses.
Bristol-Myers Squibb’s 2Q17 Earnings: Orencia and Other Brands
Bristol-Myers Squibb’s (BMY) immunoscience business is represented by the drug Orencia. Let’s take a look at Orencia’s revenue over the last few quarters.
Eli Lilly in 2Q17: Performance of Cardiovascular Products
Cialis reported nearly flat revenues at $627.3 million in 2Q17 compared to $630.5 million for 2Q16.
What Led the Rise in GE’s Healthcare Revenue in 2Q17?
GE’s Healthcare segment remained a top performer in 2Q17. Revenue-wise, this segment remained the third-largest contributor to GE’s total operating revenue of $28.0 billion.
Analysts’ Recommendations for Merck in July 2017
Twenty-two analysts covered Merck in July 2017. Four analysts recommended a “strong buy” while ten analysts recommended a “buy.”
What Drove Johnson & Johnson’s Growth in 2Q17
Johnson & Johnson’s growth rate As discussed earlier, Johnson & Johnson (JNJ) reported an increase of ~2.9% in revenue to $18.8 billion in 2Q17, compared with $18.5 billion in 2Q16. The above graph compares the growth rate and impact of foreign exchange on Johnson & Johnson’s total revenue over the last few quarters. Foreign exchange […]
How Allergan’s US Specialized Therapeutics Segment Performed
Allergan’s (AGN) US Specialized Therapeutics segment includes branded products from a range of therapeutic areas.
Johnson & Johnson’s 2Q17 Revenue Estimates: Expect Growth!
Analysts expect a rise of 2.6% in Johnson & Johnson’s 2Q17 revenue. This growth is expected to be driven by the strong performances of some of JNJ’s key products.
How Johnson & Johnson Has Performed in 2Q17
A look at Johnson & Johnson Johnson & Johnson (JNJ) is one of the largest pharmaceutical and healthcare companies. With headquarters in New Brunswick, New Jersey, the company sells its products in over 200 countries worldwide. Stock price performance Johnson & Johnson’s stock price has risen ~5.9% in 2Q17. As of July 7, 2017, its stock […]
Merck’s Valuation on June 28, 2017
Of the 22 analysts covering Merck, 14 analysts recommended a “buy”, seven analysts recommended a “hold,” and one analyst recommended a “sell.”
How Did Incyte’s Product Portfolio Look in 1Q17?
Incyte’s (INCY) product portfolio includes oncology and non-oncology drugs.
Understanding Ionis Phamaceuticals’ Revenue Stream in 1Q17
Ionis Phamaceuticals’ revenue Ionis Pharmaceuticals (IONS) reported revenue of $110.3 million in 1Q17, 200% higher than its revenue of $36.9 million in 1Q16. Analysts estimate that its revenue will increase by over 100% to $78.9 million in 2Q17, mainly driven by growth in research and development revenue. Revenue performance The above graph shows Ionis’s revenue over the […]
Rising Costs Are a Major Issue in the Healthcare Sector
The US economy is dealing with rising healthcare costs. The national healthcare expenditure grew 5.8% to $3.2 trillion in 2015 or $9,990 per person.
Merck & Co.’s Segmental Performance in 1Q17
Merck’s Pharmaceutical segment contributed nearly 86.7% of the company’s total revenues in 1Q17 compared to 87.0% in 1Q16.
Behind BMY’s Cardiovascular Performance in 1Q17
Eliquis is a new blockbuster drug in Bristol-Myers Squibb’s portfolio, and its sales rose ~50% to $1.1 billion in 1Q17.
Behind Allergan’s US General Medicines Segment in 1Q17
In 1Q17, revenues from Allergan’s US General Medicine segment fell 7.4% to $1.35 billion, as compared to $1.45 billion in 1Q16.
Analysts’ Ratings and Recommendations for Pfizer
Wall Street analysts expect Pfizer’s (PFE) top line to rise 0.6% to ~$13.1 billion in 1Q17. Its earnings per share are expected to be $0.67 in the quarter.
Merck’s 1Q17 Estimates: Revenues Will Likely Decrease
For 1Q17, analysts expect Merck and Co.’s (MRK) revenues to be ~$9.25 billion—nearly a 0.7% decrease compared to revenues of $9.31 billion in 1Q16.
Will New Products Help Eli Lilly in 1Q17?
Eli Lilly (LLY) has launched various products, including Portrazza, Cyramza, Basaglar, Jardiance, and Trulicity.
Johnson & Johnson’s 1Q17 Earnings Miss Revenue Estimates
Johnson & Johnson released its 1Q17 earnings on April 18, 2017, reporting a ~1.6% rise in its top line in 1Q17 compared to 1Q16.
How Bristol-Myers Squibb Stock Performed in 1Q17
Bristol-Myers Squibb’s stock price fell ~11.7% in 1Q17. On April 6, 2017, the stock’s price had risen 9.2% year-to-date (or YTD).
What Wall Street Analysts Recommend for Pfizer
The strong performance of innovative products and the inclusion of the Hospira business have driven Pfizer’s (PFE) 2016 earnings.
The Competitive Landscape for Enbrel
Amgen (AMGN) launched Enbrel in the US in 1998. It became a major success for Amgen in no time and recorded $5.4 billion sales in 2015.
Falling Revenue in Allergan’s US General Medicines Segment
During 3Q16, the revenues for the US General Medicine segment fell 4.1% to $1.49 billion—compared to $1.55 billion in 3Q15.
Bristol-Myers Squibb’s Strategies to Dominate Immuno-Oncology Market
With Bristol-Myers Squibb’s (BMY) Opdivo being the standard of care in the second-line lung cancer space, it faces cutthroat competition from Merck’s (MRK) Keytruda.
Shareholder Buyback: A Powerful Tool to Achieve Higher Income
What products single out specifically the share buyback companies?
AbbVie Launched Zinbryta in the US in August
On May 27, 2016, AbbVie and Biogen’s Zinbryta was approved by the FDA as a therapy for adults suffering from relapsing forms of MS (multiple sclerosis).
Is Eli Lilly Rebounding from Patent Expiry of Cymbalta?
Eli Lilly (LLY) reported a growth of ~8.6% in revenues for 2Q16 over 2Q15.
Why Allergan Acquired Topokine Therapeutics?
Allergan (AGN) announced the acquisition of Topokine Therapeutics, a biotechnology company that develops fat-reducing medicines, in April 2016.
What Could Happen with AbbVie’s EFNA4-Calicheamicin in Cancer Stem-Cell Therapy?
Based preclinical trials and its phase-1 trial, AbbVie expects its EFNA4-Calicheamicin therapy, PF-06647263, to become a strong option for ovarian cancer.
Pfizer Purchases Anacor in a $5.2 Billion Cash Deal
On May 16, 2016, Pfizer (PFE) announced that it was acquiring dermatology pharma company Anacor (ANAC) in a transaction valued at $5.2 billion.
The Business Strategies Driving Boston Scientific’s Growth
Boston Scientific registered emerging market sales growth of approximately 13% in 2015, representing a steady growth in international markets.
What’s behind the US Economy’s Remarkable Labor Market Strength?
The US labor market has shown tremendous resilience amid concerns over various issues, like aging demographics.
Pfizer’s Pipeline and Corporate Developments in 2016
Pfizer announced the termination of the merger agreement with Allergan (AGN) in April 2016. The company paid $150 million to Allergan toward expenses for the transaction.
Baxter’s 1Q16 Profitability and 2016 Guidance
Baxter International (BAX) revised its 2016 guidance as the company reported a strong 1Q16. Sales guidance for the year is updated from the 2%–3% range to approximately 3%.
Merck’s Valuation Cheat Sheet for 1Q16
Forward PE and EV-to-EBITDA multiples are two of the best valuation multiples to use when valuing Merck, given its relatively stable and visible earnings.
Will Merck & Co.’s Revenue Recover Growth in 1Q16?
Analysts expect Merck and Co.’s (MRK) revenue for 1Q16 to be around $9.44 billion, nearly 0.2% higher than the $9.42 billion in revenue it reported in 1Q15.
Why Abbott Laboratories Is a Leader in Nutritional Products
Abbott Laboratories’ Nutritional Products segment is the company’s leading segment, growing at a fast pace, with rapidly increasing margins and revenues.
Analyzing Medtronic’s Valuations Compared to Its Peers
On March 30, 2016, Medtronic (MDT) was trading at a forward PE (price-to-earnings) ratio of ~15.9x—compared to the industry average of 19.8x.
Strategic Initiatives Driving Baxter’s Margin Expansion Goal
Baxter witnessed a series of changes in 2015, including a change in management, operational structure, and the establishment of a new strategic framework.
Johnson & Johnson’s Expected Profitability in 1Q16
Johnson & Johnson has restructured its business over the past few years and has divested some of its low profitability products.
Why Did Amgen Implement Multi-Pronged Strategy for Repatha?
Amgen (AMGN) is expecting to strengthen Repatha’s brand position in the global cardiovascular market in 2016 through a multi-pronged strategy.
How Do Johnson & Johnson’s Valuations Compare to Peers?
On March 17, 2016, Johnson & Johnson (JNJ) was trading at a forward PE (price-to-earnings) multiple of ~16.5x compared to the industry average of ~19.6x.
Why Returns Will Likely Be Far from Uniform within Asset Classes
During the last few years, return dispersions within asset classes have been dramatic.
AbbVie’s Net Profit Margin Expected to Reach 29.8% in 4Q15
AbbVie (ABBV) has continued to improve its operational efficiency, which is expected to result in a net profit margin of 29.8%, a YoY increase of 6.3%. In 3Q15, AbbVie realized a net proft margin of 30.4%.
Thermo Fisher Scientific’s Analytical Instruments Business Segment
Thermo Fisher Scientific’s Analytical Instruments segment earned revenues of ~$3.3 billion in 2014, representing organic growth of around 4%.
Sizing up Abbott Laboratories’ Medical Device Segment
Abbott’s Medical Device segment accounts for 27% of the company’s total sales. Its Vascular sub-segment generates 50% of the segment’s revenue.
Evaluating Medtronic’s Cardiac and Vascular Devices Segment
Medtronic’s Cardiac and Vascular segment consists of Cardiac Rhythm and Heart Failure, Coronary and Structural Heart, and Aortic and Peripheral Vascular.
What’s the Biggest Driver of Earnings Growth?
Economic growth is the biggest driver of earnings growth. Earnings growth seems to follow the same trajectory of GDP growth.
How Did Johnson & Johnson Perform Compared to Its Peers?
The peers outperformed Johnson & Johnson based on the net profit margin. The ETFs outperformed it based on the price movement, PE ratio, and PBV ratio.
Synergies in Centene’s Acquisition of Health Net
Centene projects that Health Net’s acquisition will help Centene realize pre-tax synergies worth $150 million by the end of the second year after the closure of the deal.
Analyzing the Market’s Response to the Centene–Health Net Deal
The Centene–Health Net deal is expected to be completed by early 2016, pending approval by the shareholders of both companies.
Centene–Health Net Entity Could Be Medicaid Leader
Centene aims to position itself as a leader in the fast-growing Medicaid market. Health Net’s acquisition will add ~1.7 million Medicaid members to the company’s portfolio.
Centene Announces Its Acquisition of Health Net
On July 2, Centene announced the acquisition of Health Net for a combination of cash and shares amounting to $6.8 billion. This includes the assumption of Health Net’s $500 million debt.
GlaxoSmithKline’s Associated Business Segments
The key business segment of GlaxoSmithKline’s operations is Pharmaceuticals, followed by Consumer Healthcare and Vaccines.
Healthcare Stocks Likely to Outperform despite Rate Hike
Even though healthcare stocks (IYH) are usually considered defensive in nature, they traditionally hold up well in the run-up to a rate hike.
Why Teva’s Generic Medicines Profitability Improved in 1Q15
Teva’s increased profitability for its generic medicines was partially offset by decreased profitability of its specialty medicines, which were down by 13% in 1Q15 from 1Q14.
Why Teva’s 1Q15 Revenues Declined Marginally
In 1Q15, Teva beat Wall Street analysts’ revenue estimates of $4.81 billion, posting revenues of $4.98 million, an increase of ~3.5%.
Does Johnson & Johnson Have a Plan for Huge Cash Reserve?
Johnson & Johnson (JNJ) has a huge cash reserve amounting to ~$15 billion in 4Q14. The company might use the cash for merger and acquisition (or M&A).
The Cyclical Aspect of the Labor Market Conundrum
There is a cyclical aspect of the labor market conundrum. People typically drop out of the work force during and immediately after recessions.
Mylan–Perrigo Merger: Expanding into Over-the-Counter Drugs
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.