Perrigo Co PLC
What Are the Conditions of the Mylan-Teva Deal?
Mylan said it’s pessimistic that the deal will clear antitrust. Mylan is seeking approval for a generic version of TEVA’s Copaxone, the company’s biggest drug.
What Are Biosimilars and Why Do They Benefit Generic Pharma?
BUTCHER: Going back to what you said about generics being a cheaper alternative, why are they cheaper? DUFFY: The barriers to generic markets are usually a lot lower. If we look at the United States, back in 1984 they passed the Hatch-Waxman Act and essentially what this did was allow for an expedited approval process […]
Is Valeant a Good Bet on a Price-to-Earnings Basis?
On August 11, 2016, Valeant Pharmaceuticals (VRX) was trading at a forward PE (price-to-earnings) multiple of ~3.0x.
How Did Valeant Fare in 2Q16?
Valeant Pharmaceuticals (VRX) announced earnings for 2Q16 on August 9, 2016.
The Mylan–Teva Deal: Arbitrage Spread Analysis
The key to the Mylan–Teva merger is understanding the process that companies go through when approached with an unsolicited proposal.
Citron Research Tweet Pulled NVIDIA Prices Lower on December 28
The S&P 500 Information Technology sector fell 0.87% on December 28. NVIDIA (NVDA) and First Solar (FSLR) were the top losers.
Projected Revenue for Valeant in 2017
Valeant Pharmaceuticals (VRX) has been keeping an eye on the progress of its dermatology and gastrointestinal portfolio.
Must-know: Davidson Kempner exits position in Perrigo
Perrigo acquired Irish biotech company Elan last year for $8.6 billion.
Eli Lilly and Co.’s Strong Q1 Results, Updated 2018 Guidance
Eli Lilly and Co. reported revenues of ~$5.7 billion for 1Q18 today, reflecting 9% growth from 1Q17.
Davidson Kempner Capital buys a new 4Q13 stake in Apple
Davidson Kempner added a new position in Apple Inc. (AAPL) that accounted for 2.19% of the fund’s 4Q portfolio. Apple found favor with hedge funds last quarter.
What Do Analysts Recommend for Valeant after Recent Happenings
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.
Understanding Allergan’s Valuation after the 1Q17 Results
On May 10, 2017, Allergan (AGN) was trading at a forward PE multiple of ~14.1x, as compared to the industry average of 11.9x.
What’s the Spread in the Perrigo–Mylan transaction?
In the Perrigo–Mylan situation, Mylan sent a bear hug letter to Perrigo to express its interest in it. Perrigo rejected that approach, and so Mylan went and filed a formal offer.
The Many Reasons Mylan Is So Keen to Acquire Perrigo
On April 21, 2015, Teva (TEVA) launched a proposal to acquire Mylan for $82 a share in a 50% cash, 50% stock deal worth $43 billion. Mylan rejected the offer.
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.
ETFs Capitalize on the Generic Industry’s Growth
ETFs are the investment funds—like index funds and mutual funds—that track an index, a commodity, or a basket of assets. ETFs are publicly traded on an exchange.
Akorn’s Macro-Level Challenges in the Generic Drug Segment
Although generic drugs only account for 3% of the total healthcare costs in the US, regulators continue to be concerned about rising generic pricing.
Price Erosion Could Impact Perrigo’s Prescription Drug Business
Perrigo expects its prescription drug business to earn revenues of ~$1 billion in 2016. It estimated an adjusted operating margin of 40%–45% in 2016.
Teva Pharmaceuticals Makes a Hostile Bid for Mylan
There has been press speculation that Teva was interested in Mylan, and Mylan actually responded last Friday to this speculation with a press release.
David Einhorn Was Right about Apple
Greenlight Capital (GLRE) exited its position in Apple in the third quarter of 2018.
Eli Lilly Stock’s June Performance
Leading US pharmaceutical company Eli Lilly (LLY) specializes in human pharmaceuticals and animal health.
S&P 500 Closed Higher amid Trump’s News Conference
After closing flat for the first time in nine years on Tuesday, the S&P 500 was volatile on Wednesday. On January 11, it closed the day at 2,275.32.
The Majority of Brokers Recommend a “Buy” for Mylan
Mylan is expected to announce its fourth quarter earning for 2015 on February 10, 2016. As of January 22, 2016, Mylan’s market cap stood at $26.1 billion.
Why Bridgewater starts new position in Bed, Bath and Beyond
Bridgewater Associates disclosed a new position in Bed, Bath & Beyond (BBBY). It accounted for 0.11% of the fund’s total portfolio.
Why Bridgewater Associates decreased its position in Cisco
Bridgewater Associates decreased its position in Cisco from 0.20% in the 1Q portfolio to 0.09% in the fund’s 2Q portfolio.
Davidson Kempner Capital buys a new position in LSI in 4Q13
Davidson Kempner added a new position in LSI Corp. (LSI) that accounted for 1.39% of the fund’s 4Q portfolio.
Assessing Davidson Kempner Capital Management’s 4Q13 positions
Davidson Kempner Capital Management LLC is a hedge fund manager led by president Thomas Kempner, Jr., who joined the firm in 1984. It has about $22 billion in assets under management.
What Are Pfizer’s Revenue Drivers?
Pfizer reported revenues of $13.5 billion during the second quarter—4% growth YoY compared to $12.9 million during the second quarter of 2017.
Analyzing Perrigo’s Spin-Off of Its Rx Business
In this series, we’ll analyze major spin-offs in the healthcare sector by Perrigo (PRGO), Eli Lilly (LLY), Danaher (DHR), and Henry Schein.
How Eli Lilly’s Business Segments Performed in Q2 2018
Eli Lilly and Company reports its business revenue under two segments: the Human Pharmaceutical segment and Elanco, the Animal Health segment.
Analysts’ Recommendations for DaVita
As discussed previously, analysts expect DaVita (DVA) to post revenue of $2.877 billion, adjusted net income of ~$175.97 million, and non-GAAP EPS of ~$0.97 in Q2 2018.
S&P 500’s Top Gainers: Perrigo and Charles Schwab
Perrigo, which is an American international manufacturer of private label over-the-counter pharmaceuticals, was the S&P 500’s top gainer on July 17.
Sage Therapeutics’ NMDA Receptor–Based Products
Sage Therapeutics developed SAGE-718, which targets the NMDA Receptor.
Pfizer’s EC Approval of Xeljanz for Active Psoriatic Arthritis
Pfizer (PFE) announced in a press release yesterday that the European Commission has approved its marketing authorization application for Xeljanz in combination with methotrexate for active psoriatic arthritis.
Allergan’s US Specialized Therapeutics Segment
Allergan’s (AGN) US Specialized Therapeutics segment includes revenue from the US sales of specialized products.
These Pfizer Products Saw Declining Sales in 4Q17
A few products in Pfizer’s (PFE) portfolio reported declining sales in 4Q17 following their loss of market share to the competition.
GlaxoSmithKline Could Witness Modest Rise in Revenues in 2017
GlaxoSmithKline (GSK) is a leading player in the global respiratory market with a major focus on the asthma and chronic obstructive pulmonary disease (or COPD) segments.
What Analysts Recommend for GlaxoSmithKline in January 2018
Of the 31 analysts covering GlaxoSmithKline in January 2018, five have recommended a “strong buy,” seven have recommended a “buy,” 15 have recommended a “hold,” three have recommended a “sell,” and only one has recommended a “strong sell.”
Pfizer: Revenue Growth Is Expected in 4Q17
Wall Street analysts expect Pfizer’s (PFE) revenues to increase ~0.7% to $13.72 billion during 4Q17—compared to revenues of $13.63 billion during 4Q16.
Recent Developments for Mylan
Recent developments reported by Mylan (MYL) include commercial developments as well as product developments. Let’s take a closer look.
Elagolix May Advance the Treatment Paradigm in Women’s Health
On October 27, 2017, AbbVie (ABBV) announced that the New Drug Application for its investigational drug Elagolix had been granted priority review by the FDA.
Mylan’s Valuation in January 2018
Mylan (MYL) is a leading pharmaceutical company with over 1,400 generic and specialty pharmaceutical products in its portfolio.
Eli Lilly’s Business Segments in 3Q17
Eli Lilly’s human pharmaceuticals segment contributed ~87% of Eli Lilly’s total revenues in 3Q17.
Behind Eli Lilly’s Alimta and Other Oncology Products in 3Q17
In 3Q17, Eli Lilly’s overall revenues from oncology products fell due to lower sales of Alimta, Erbitux, and Portrazza, offset by a rise in Cyramza sales.
Eli Lilly’s New Pharmaceutical Products in 3Q17
Eli Lilly’s (LLY) new products include Basaglar, Cyramza, Jardiance, Lartruvo, Olumiant, Taltz, and Trulicity.
Merck’s 3Q17 Revenues Could Rise
Analysts expect Merck’s (MRK) revenues for 3Q17 to be around $10,546 million, nearly a 0.1% increase as compared to the revenues of $10,536 million reported for 3Q16.
Sanofi’s Consumer Healthcare Expected to Be Long-Term Driver
In 2Q17, Sanofi’s (SNY) Consumer Healthcare business reported revenues of 1.2 billion euros, which is a 42.5% YoY rise on a CER basis and a YoY fall of 0.10% on a CER and CS basis.
Why Mylan Lowered Its Revenue Guidance for 2017
In its 2Q17 earnings conference call, Mylan (MYL) reduced its revenue guidance for 2017 from a range of $12.25 billion–$13.75 billion to a range of $11.5 billion–$12.5 billion.
Behind the Latest Developments for Merck’s Keytruda
Keytruda (pembrolizumab) is a prescription medicine from Merck’s (MRK) immuno-oncology franchise used for the treatment of various tumors.
Eli Lilly’s Cardiovascular Products in 2Q17
Eli Lilly and Co.’s (LLY) cardiovascular franchise includes two drugs—Cialis and Effient. These drugs comprise ~15.0% of the company’s total revenues.
Albemarle Appointed Laurie Brlas to Board of Directors
For the week ended June 30, 2017, Albemarle (ALB) rose 0.7% and closed at $105.54.
Dupixent May Be a Major Growth Driver for Regeneron in 2017
After Dupixent’s commercial launch, Regeneron has been involved in creating awareness for the drug among physicians who have been treating AD patients.
Mylan’s Valuation Compared to Its Peers
As of January 10, 2017, Mylan (MYL) was trading at a forward PE (price-to-earnings) multiple of ~7.3x, compared to the industry average of 16.3x.
Allergan’s Valuation Compared to Its Peers
Allergan’s stock value fell more than 40% over the last 12 months. Analysts estimate that the stock could to return ~39.5% over the next 12 months.
Pfizer Has a Revenue-Boosting Treatment to Help Smokers Quit
Approved by the FDA on May 11, 2006, Chantix, also known as Champix, is used as an aid to help cigarette smokers quit the habit of smoking.
Strong Brand Positioning Expected to Strengthen Teva’s Position
Teva Pharmaceutical’s (TEVA) strategy of selectively focusing on certain countries has enabled it to see double-digit organic growth in the growth markets.
Is Teva Positioned to Compete with the Likes of Mylan and Novartis?
In 2Q16, the generic pharmaceutical industry witnessed YoY (year-over-year) price erosion of around 4% in the US and 5% globally.
Teva Is Well Positioned for New Trends in the US Generic Market
Because of its drug portfolio, manufacturing operations, and customer relationships, Teva expects to benefit from new trends in the US generic market.
Teva’s OTC Business Is Playing out to Be a Key Growth Driver
In addition to its generic pharmaceutical business, Teva Pharmaceutical also has a significant presence in the major categories of the OTC drug business.
Consumer Healthcare Segment Expects Revenue of $2.6 Billion in 2016
Similar to what it witnessed in 1H16, the company also expects the CHC (Consumer Healthcare) segment’s adjusted operating margins to remain strong in 2H16.
The American Century Growth Fund Is Holding Its Own in YTD 2016
Both consumer-focused sectors—discretionary and staples—have been sizable positive contributors to TWCGX.
Akorn in 2016: What Are Its Key Risk Factors?
In addition to industry-specific risks faced by all generic pharmaceutical players, Akorn (AKRX) faces certain company-specific risks.
Akorn’s Robust Research and Development Pipeline: A Growth Driver
Akorn’s (AKRX) robust research and development pipeline is comprised of branded and generic drugs with a total addressable market value of about $9.2 billion.
How Did Bristol-Myers Squibb’s Eliquis Perform?
Bristol-Myers Squibb’s (BMY) cardiovascular segment consists of its key drug Eliquis. This segment contributed nearly 78% of total revenues for 2Q16.
Will Anda Acquisition Improve Access to Teva’s Generic Drugs?
On August 3, 2016, Teva Pharmaceutical (TEVA) announced that it will acquire Anda, Allergan’s pharmaceutical distributor business, for about $500 million.
Teva Pharmaceutical: A Successful Bond Financing Program in 2016
To finance the acquisition of Allergan Generics (AGN), Teva Pharmaceutical (TEVA) successfully completed a global bond offering on July 21, 2016.
What Are Analysts Recommending for Teva Pharmaceutical in 2016?
Among the 32 analysts surveyed by Bloomberg for Teva Pharmaceutical (TEVA), 74.2% gave it a “buy” rating, and 25.8% gave it a “hold.” No analysts rated it a “sell.”
Understanding Akorn’s Focus on Inorganic Growth
Since 2011, Akorn (AKRX) has focused on acquisitions that either expand the company’s core capabilities or increase its geographic market access.
Alternate Dosage Forms Are Expected to Drive Akorn’s Growth in 2016
Akorn’s (AKRX) extensive alternate dosage form portfolio is comprised of topical creams, oral liquids, nasal sprays, injectables, ophthalmics, and otic solutions.
Perrigo Stock Skyrockets Due to Takeover Talks
On June 14, Perrigo was the top performer within the Health Care Select Sector SPDR ETF (XLV). It gained 9.2% and outperformed the SPDR S&P 500 ETF (SPY).
Teva Aims to Improve Its Position with Actavis Generics Acquisition
Teva Pharmaceutical expects to benefit from improved productivity after the completion of the deal with Actavis Generics.
What Caused Alexion Pharmaceuticals’ Fall?
Alexion Pharmaceuticals was the second-worst performing stock within the Health Care Select Sector SPDR ETF (XLV), falling by 10.9% on June 7, 2016.
Why a Good Start to 2016 Has Turned Average for TWCGX
As of May 27, 2016, the American Century Growth Fund Investor Class (TWCGX) had posted a rise of 0.2% YTD (year-to-date).
A Look at Portfolio Changes in TWCGX
The American Century Growth Fund Investor Class (TWCGX) invests in companies that its managers believe will increase in value over time.
Branded Consumer Healthcare Business May Impact Perrigo’s Valuations
The Branded Consumer Healthcare (or BCH) segment, a part of Perrigo’s consumer-facing business, is expected to account for about 25% of the company’s total revenues in 2016.
Consumer Healthcare Should Be a Key Driver of Perrigo’s 2016 Growth
The Consumer Healthcare (or CHC) segment, a key part of Perrigo’s consumer business, is expected to account for about 45% of the company’s total revenues in 2016.
Market Dynamics Should Strengthen Perrigo’s OTC Business in 2016
Perrigo (PRGO) is expected to witness an organic growth of 5%–10% in its consumer over-the-counter product revenues in 2016.
Why Analysts Expect Mylan’s Net Profit Margins to Rise in 2016
Mylan (MYL) expects improved net profit margins in 2016, mainly due to the operational synergies projected as a result of its acquisition of Meda AB.
What Can We Expect for Teva’s Net Profit Margins in 2016?
Teva Pharmaceutical Industries (TEVA) is expected to boost its net profit margins in 2016.
What Can We Expect from Teva’s Respiratory Portfolio in 2016?
Teva Pharmaceutical Industries (TEVA) has been actively involved in developing and commercializing a breath-actuated dry-powder inhaler.
How Mylan Plans to Leverage Its Meda Acquisition
Mylan (MYL) believes that after the acquisition of Meda, the combined company will have six franchises worth $1 billion.
How Is Meda AB a Strategic Fit for Mylan’s Business?
On February 10, 2016, Mylan (MYL) announced its decision to acquire Meda AB for a consideration of $9.9 billion through a public offer.
XLV Rose as 52 of Its Holdings Posted Positive Returns
XLV rose 1.4% on February 22, 2016, as 52 of its holdings posted positive returns. Only four of XLV’s stocks ended in the red.
Perrigo Considered Mylan’s Offer to Be Dilutive to EPS
Perrigo’s management strongly believed that a combination with Mylan would result in at least three years of substantial EPS dilution.
Perrigo Benefits from Omega Pharmaceuticals Acquisition
In March 2015, Perrigo acquired Omega Pharmaceuticals. adding many leading consumer healthcare brands to its existing portfolio.
Perrigo Leads the Over-the-Counter Store-Branded Products Market
Perrigo is a market leader in over-the-counter store-branded products. Its leadership position extends to major geographies such as the US, the UK, and Mexico.
Perrigo Adopts Base Plus Plus Plus Strategy for Continued Growth
The Base Plus Plus Plus business model has been instrumental in Perrigo’s commercial success despite tough competition from peers.
Perrigo’s Diversified Prescription Pharmaceuticals Franchise
Perrigo offers diversified prescription pharmaceuticals, including generic and specialty prescription pharmaceuticals, in the US and UK.
Perrigo’s Strong Presence in the European-Branded OTC Market
Post-completion of its March 2015 acquisition of Omega, Perrigo has actively entered the European-branded OTC market.
An Overview of Perrigo’s Business Model
Perrigo’s business model includes a well-aligned organizational structure of its segments and a strong product portfolio.
Nutritionals: Abbott Laboratories’ Main Segment
Abbott Laboratories’ (ABT) nutritional products segment includes a broad line of pediatric and adult nutritional products manufactured and marketed worldwide.
Teva and Allergan Generics Deal Displays Other Synergies
Teva projects that the Allergan Generics deal should help Teva realize annualized cost synergies and tax savings of approximately $1.4 billion.
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.
Mylan Reports 1Q15 Earnings Per Share Growth of 6%
With the acquisition of Abbott Laboratories’ (ABT) non-US developed markets specialty and branded generics business, Mylan relocated its headquarters to the Netherlands.
Teva Earnings Preview: Auspex Acquisition to Support Growth
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 […]
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.
Magnetar Capital Raises Its Stake in Actavis
In the fourth quarter, Magnetar increased its exposure to Actavis. It bought 42,107 shares in the pharmaceutical firm. It represents 1.5% of the fund’s 4Q14 portfolio.
What Are Teva’s Long-Term Prospects?
Teva’s long-term prospects seem bright due to a focused product pipeline in its specialty and generics segments.
Why Teva’s Business Model Is Progressively Evolving
Teva intends to target a minimum annual profit of $4.3 billion, or $5 EPS, through 2016. To achieve this, Teva is reorienting its business model.
Generics Are Climbing up the Value Chain
Severe cost pressure can lead to the commoditization of generics. it’s important to adjust the value chain to achieve higher efficiencies, flexibility, and reliability.