Health Care Select Sector SPDR® ETF
How Can Changing Demographics Impact Investors?
Changing demographics impact investors in many ways. The demand for bonds could increase, putting downward pressure on yields.
How Does Aetna Compare to Its Peers in Medical Care Ratio?
The medical care ratio of health insurance companies is calculated as the ratio of the total money spent in health care claims to premiums earned.
Teva Can Benefit by Acquiring Allergan Generics
The combined Teva–Allergan generics entity should have approximately 320 Abbreviated New Drug Applications (or ANDAs), including 110 first-to-file ANDAs (or FTF) in the US.
How Did AstraZeneca’s CVMD Franchise Perform in 2014?
In 2014, AstraZeneca’s CVMD franchise generated nearly $9.8 billion, a 11% rise in sales as compared to $8.8 billion in 2013.
Merck & Co.’s Animal Health Segment
The revenues of Merck & Co.’s Animal Health segment have improved due to increased sales in the Companion Animal Products segment.
Johnson & Johnson’s Pharmaceuticals Segment Grows in 2Q15
Johnson & Johnson’s (JNJ) Pharmaceuticals segment grew by 1.0% at constant exchange rates, reporting a revenue of $7,946 million for 2Q15 over 2Q14.
How Stocks and Bonds Reacted to Trump’s Victory
The CBOE Volatility Index suddenly rose 6.0% on November 9, 2016, after it was clear that Trump had unexpectedly clinched the election.
Backing Out of the Synageva BioPharma Deal, Part 3
Things like acts of war and natural disasters aren’t MACS unless they disproportionately affect Synageva relative to other early-clinical-stage biopharmaceutical companies.
Could the Rite Aid–Walgreens Merger Get Competitive?
In the Rite Aid–Walgreens merger, Walgreens is paying about 0.6x trailing-12-month revenues and 13.6x trailing-12-month EBITDA.
A Look at Johnson & Johnson’s Post-2Q17 Valuation
Headquartered in New Jersey, Johnson & Johnson (JNJ) is one of the largest pharmaceutical companies, with its products sold in over 200 countries worldwide. This series will look at how it has performed since its 2Q17 earnings announcement.
Lilly’s Total Returns Are Lower than Some Pharma ETFs
The total return for Lilly’s share price on the NYSE from July 2010 to June 2015 has been around 17.9%. This is lower than a few of the pharmaceutical ETFs.
What Are Analysts’ Recommendations for Merck in 2017?
For 2016, Merck & Co. (MRK) reported revenue close to $39.8 billion, a year-over-year (or YoY) rise of ~1%. New product launches have played major roles in boosting Merck’s 2016 revenue.
Sanofi Increased Net Revenues in 2014
Sanofi’s net revenues increased by ~2.5% to 33.8 billion euros in 2014, as compared to $23.2 billion in 2013.
What Analysts Think about Bristol-Myers Squibb
Of 28 analysts covering BMY’s stock, 42.3% gave it a “buy” recommendation, while 50.0% gave it a “hold” recommendation. Only 7.7% rated it as a “sell.”
Analysts’ Recommendations for Anthem in 2017
Based on the company’s performance in 1Q17, Anthem (ANTM) has increased its 2017 revenue guidance by around $1.5 billion.
What’s UnitedHealth Group’s outlook for 2015?
It’s projected that UnitedHealth Group’s revenue and earnings growth in 2015 will be driven by the strong performance of the Optum segments.
Novartis’s Adjusted Earnings per Share Declined 7% in 2Q15
Novartis (NVS) posted its 2Q15 earnings on July 21, 2015. The company achieved adjusted EPS of $1.27 for 2Q15, ~7% lower than in 2Q14.
Enrollments decreased in UnitedHealth’s international business
In the US, the private health insurance industry has been expanding its footprint in international markets. International markets are less penetrated and competitive.
UnitedHealth Group’s Optum segment: Earnings rose in 2014
UnitedHealth Group (UNH) operates Optum. It provides health services like health technology, health and well-being, and pharmacy services.
What Analysts Project for Eli Lilly in 3Q17
For 3Q17, analysts estimate that Eli Lilly will post EPS of $1.03 on revenues of $5.5 billion.
Bernstein: Tax Reform Is Bullish for the Equity Market
Tax reform On December 2, 2017, the Senate passed Donald Trump’s tax reform bill, and on December 20, 2017, the House of Representatives passed the bill. Afterwards, the S&P 500 (SPX-INDEX) (SPY) rose to a record high. Richard Bernstein on tax reform In an interview with CNBC, prominent investor Richard Bernstein stated that tax reform could be very helpful for […]
Turn to Financials and Healthcare When Fears of Rate Hike Loom
With classic safe havens providing little protection, turn to financials and healthcare sectors for opportunities. Healthcare stocks usually hold up well in the run-up to a rate hike.
Inside XLV’s Large Caps: Pfizer’s 1Q16 Earnings
Pfizer recently rose by 2.7% on revenues of $13 billion for 1Q16, as compared to $10.9 billion in 1Q15, which represents a growth of 20% YoY.
Pfizer Missed Analysts’ Third-Quarter Revenue Estimates
Pfizer (PFE) released its third-quarter earnings on October 30.
Utility Sector: Will Investors Continue Their Defensive Positions?
The Utilities Select Sector SPDR ETF (XLU), which tracks the performance of the utility sector, rose 2.7% in November 2017.
Eminence Capital Reduces Position in Humana
During the fourth quarter of 2014, Eminence Capital lowered its stake in Humana (HUM). The company accounted for 1.33% of the fund’s 4Q14 portfolio.
What Analysts Recommend for Biogen in June 2017
In 2016, Biogen (BIIB) reported revenues of $11.4 billion, which reflected a ~6% year-over-year (or YoY) growth.
Humana’s core business: The Medicare Advantage program
Humana’s total enrollment is mainly enrollments in the MA program, a substitute for the original Medicare program, via private insurance companies.
Bristol-Myer Squibb’s Opdivo Is Keytruda’s Strong Competitor
the U.S. Food and Drug Administration accepted the filing of a supplemental Biologics License Application for Bristol-Myers Squibb’s Opdivo.
How 3Q17 Shaped up for Tysabri, Fampyra, and Zinbryta
Tysabri revenue trends In 3Q17, Biogen’s (BIIB) Tysabri generated revenue of ~$469 million, which reflected a ~9% fall YoY (year-over-year) and a ~5% fall QoQ (quarter-over-quarter). In 3Q17, Tysabri generated US revenue of ~$267 million, which reflected an ~11% fall YoY and an ~8% fall QoQ. In 3Q17, outside the US market, Tysabri reported revenue of ~$203 […]
How Biogen’s Tysabri and Zinbryta Performed in 1Q17
In 1Q17, Biogen (BIIB) saw an increased demand for Tysabri, both in the United States and in international markets.
Teva Stock Has Risen Significantly since November Lows: What’s Next?
On January 5, 2018, Teva Pharmaceuticals (TEVA) closed at $19.2 per share, which was ~77% higher than its 52-week low of $10.8 reported on November 2, 2017.
Venclexta Witnessed Healthy Demand Trends in 1Q17
AbbVie’s (ABBV) Venclexta was approved by the FDA on April 11, 2016. AbbVie has also successfully launched Venclexta in Germany and France.
How Has Medtronic’s Stock Performed Recently?
Medtronic (MDT) was trading at $80.3 on November 15, 2016. It had a 50-day moving average of $83.7 and a 200-day moving average of $84.8.
Assessing the economy’s impact on national healthcare spending
National healthcare spending is a major driver of the hospital industry. National spending on hospital care is expected to amount to $973 million.
Comparing ETNs with ETFs: The must-know pros of ETNs
ETNs are free of tracking errors, and investors can defer taxation until they mature or are sold.
Merger must-knows: The shareholder vote and 90% tender condition
Once the SEC approves the proxy, a vote is scheduled. Usually, the last condition for a deal is the vote of the target shareholders.
ALGN Stock Surpasses the S&P 500 Index’s Year-to-Date Gain
On September 28, Align Technology (ALGN) posted an ~74% increase year-to-date. In the same period, the S&P 500 Index has returned ~9%.
Is the Cigna–Anthem Merger a Setup?
The Cigna–Anthem merger deal will be subject to all sorts of headlines that will affect the spread. You can make a decent return trading around the position by keeping your head .
Third Point Partners ups stake in Amgen
The fund noted in its letter that “Amgen has all the hallmarks of a hidden value situation, which is one of the fund’s favorite investment themes.”
The Risk-to-Reward Ratio of the Cigna–Anthem Merger
If the Cigna–Anthem merger closes, you end up making about $35 a share. If the deal breaks, then you would have to cover at $52 a share.
Increased Life Expectancy Means A Longer Investment Horizon
Increased life expectancy means a longer investment horizon. With life expectancy increasing, young investors should invest in equities aggressively.
What Really Disrupted Medtronic’s Diabetes Segment Sales in Fiscal 2Q17?
Of Medtronic’s ~$7.3 billion in worldwide revenues in fiscal 1Q17, ~$0.46 billion came from its Diabetes segment, representing ~6% of the company total.
Allergan–Pfizer merger: What Does Pfizer Make besides Viagra?
The Allergan–Pfizer merger will change Pfizer’s domicile to Dublin, Ireland, and allow them to gain access to overseas cash without a US repatriation tax.
How a Rate Hike Could Affect High-Leverage Sectors
Industrials, utilities, and telecommunications have much higher leverage, as these sectors have massive capital needs.
Diabetes Management Breakthrough: Medtronic’s MiniMed 670G
On June 7, 2017, Medtronic (MDT) announced the launch of MiniMed 670G—the world’s first HCL (hybrid closed loop) insulin delivery system.
Allergan Boosts XLV Large-Caps with Positive 4Q15 Earnings
Allergan (AGN) reported its 4Q15 earnings on February 22, 2016. It reported net revenue of $4.2 billion for 4Q15, an increase of 74% compared to $2.4 billion in 4Q14.
How Merck’s Oncology Drugs Emend and Temodar Could Perform in 2017
In 2016, Merck’s (MRK) Emend reported revenues of around $549 million, which reflected 3% year-over-year growth.
The Salix–Valeant merger: Basics of Salix Pharmaceuticals
Xifaxin is by far Salix’s largest product, accounting for ~70% of its revenues in 2013. Xifaxin is a big reason for the Salix–Valeant merger transaction.
Can the Walgreens-Rite Aid Merger Get Antitrust Approval?
The Walgreens-Rite Aid merger is a combination of the first and third largest pharmacies in the United States.
ABT Stock Fell ~3.3% on October 10 despite Analyst Upgrade
On October 10, Abbott Laboratories (ABT) ended the trading day at $68.92, down ~3.3% from the previous day’s close.
Bristol-Myers Squibb’s Neuroscience and Immunoscience Segments
Sales for Bristol-Myers Squibb’s (BMY) neuroscience segment declined over 80% in 2Q15, while the immunoscience segment’s sales improved ~15% in 2Q15 as compared to 2Q14.
Tandem Diabetes Care’s Stock Performance This Month
On June 26, Tandem Diabetes Care (TNDM) ended the trading day at $23.64, ~7.3% lower than its 52-week low of $25.50 reached on June 22, triggered by news of the FDA’s approval of the company’s new insulin pump.
What Is the Risk-to-Reward Ratio of the Humana–Aetna Deal?
Scenario analysis In the risk-arbitrage world, a 12.2% expected return means a deal that has a lot of risk. Arbitrageurs sometimes refer to risk as “hair.” This deal is guaranteed a second request, and the regulators may simply be unable to get comfortable with the transaction, no matter what the companies offer in the way […]
European Medicines Agency Validates Merck’s Keytruda Combo
Merck’s (MRK) Keytruda (pembrolizumab) is approved to treat various forms of cancer.
Johnson & Johnson Gets FDA Approval for Type 2 Diabetes Drug
On September 21, 2016, the FDA approved Jannsen Pharmaceuticals’ Invokamet XR for the treatment of adults suffering from Type 2 diabetes.
What Were Pfizer’s Major Achievements in 2016?
During 2016, Pfizer (PFE) succeeded in expanding its label for Ibrance, its breast cancer treatment.
Parsing the Salix–Valeant merger MAC clause: Part 1
In the deal between Salix Pharmaceuticals and Valeant, the MAC clause lays out the circumstances under which Valeant can back out of its deal with Salix.
Parsing the Salix–Valeant merger MAC clause: Part 2
Pretty much anything that has a material adverse effect on the company will be considered a MAC, but there will be exceptions to that rule.
Municipal Bonds Help You Care For Communities
Municipal bond issuers are state-wide and local. They typically use the funds they accumulate through issuing bonds for infrastructure projects.
The Pharmacyclics–AbbVie Merger: The Basics of AbbVie
A major reason for the Pharmacyclics–AbbVie merger is to diversify AbbVie away from its reliance on a single product, Humira, and boost its pipeline.
What do falling oil prices mean for the hospital industry?
Economic conditions like falling oil prices affect the healthcare industry with a lag. This makes the hospital industry a good investment option.
Johnson & Johnson Stock Remained Neutral to 2Q15 Earnings
Due to the decelerating revenue growth over all segments, Johnson & Johnson (JNJ) reported a decrease in its top line by ~8.8% in its 2Q15 earnings release on July 14, 2015.
Why the US Non-Farm Payroll in May Has Many Concerned
The US May jobs report indicated weak improvement in the US labor market.
Regeneron’s Dupixent Approved for Atopic Dermatitis
In March 2017, the US Food and Drug Administration (FDA) approved Sanofi’s (SNY) and Regeneron Pharmaceuticals’ (REGN) Dupixent (dupilumab) for the treatment of individuals with moderate-to-severe atopic dermatitis.
Must-read: Is the US hospital industry truly non-cyclical?
The hospital sector is widely considered a non-cyclical or defensive industry, meaning demand for hospital services doesn’t change with the economic cycle.
Drug Patent Expirations: $190 Billion Is Up for Grabs
According to estimates by Evaluate Pharma, a whopping $120 billion in sales was lost to patent expirations between 2009 and 2014.
Is the Cigna-Anthem Merger a Setup?
Cigna has been put ‘in play,’ which means other buyers will be taking a look. The spread is wide, but there are major unanswered questions. It makes sense to give this one a wide berth.
Anthem Files Bear Hug Letter for Cigna on June 21
On June 21, Anthem (ANTM) filed a bear hug letter for Cigna (CI). A bear hug letter is a formal press release in which an acquiring company discloses its interest in a target company.
Negative Sentiment Will Impact Health Insurance Companies
The healthcare bill’s failure had a negative impact on investor sentiment for health insurance carriers.
FDA Granted Breakthrough Therapy Status to Merck’s HCV Therapy
The U.S. Food and Drug Administration (or FDA) granted breakthrough therapy designation to Merck’s (MRK) grazoprevir/elbasvir (100mg/50mg) combination therapy.
Bristol-Myers Squibb’s 1Q18 Earnings Beat Wall Street Estimates
Bristol-Myers Squibb beat Wall Street analysts’ estimates for earnings per share and revenues in 1Q18.
The Salix–Valeant merger MAC clause: Part 3
If these carve-outs affect Salix in a disproportionate way compared to other pharma companies, then it is still a MAC and Valeant can back out of the deal.
Key differences between PCE and CPI as inflation measures
The CPI and PCE are both important indicators of U.S. inflation. CPI is more important from an individual perspective, while PCE is more important for monetary policy.
UnitedHealth Group Stock at 52-Week High, Up 22% Year-to-Date
UnitedHealth Group (UNH) stock registered its 52-week high of $270.17 last week on August 30.
How Alexion Plans to Fuel Strensiq Sales
With the Enobia acquisition in February 2012, Alexion benefited in long-term disease awareness, diagnostic planning, and initiatives in the HPP space.
Will Tax Reform Hurt Health Care Sector?
The health care sector played an important role in the recent bull market (SPX-INDEX) rally.
Will the August Jobs Report Soften the Fed’s Rate Hike Urgency?
During the Jackson Hole Symposium, the Federal Reserve chair, Janet Yellen, already hinted that if the August jobs report provided a strong performance, there was a chance for a rate hike during its September 2016 meeting.
Abbott’s Freestyle Libre Gets Reimbursement Approval in France
Abbott Laboratories’ (ABT) Freestyle Libre is a sensor-based continuous glucose monitoring system that monitors and evaluates glucose levels up to 14 days.
Exploring payer mix trends at HCA Holdings
In terms of payer mix, the percentage of HCA Holdings revenues contributed by Medicare rose from 28.0% in 3Q13 to 30.3% in 3Q14.
What Bill Miller Thinks about Valeant Pharmaceuticals
According to Bill Miller, Valeant Pharmaceuticals (VRX) is correctly valued.
Understanding Johnson & Johnson’s Ownership Structure
As of January 2015, Johnson & Johnson’s ownership structure is dominated by passive investments. They account for more than 80% of the total ownership structure.
Mounting Evidence of Inflation Firming Up
The U.S. Commerce Department reported retail sales fell in February for the third month in a row, while the University of Michigan Consumer Sentiment Index jumped to a 14-year high…
Why Envision Healthcare Stock Rose ~2.4% Last Week
Healthcare service provider Envision Healthcare (EVHC) announced its agreement to be acquired by KKR (KKR) last week.
Solid Jobs Growth Points to US Economic Health
Solid employment growth seems to point to the improving health of the US economy. The US markets cheered the April jobs market report on Friday, May 8, 2015.
Must-know fundamentals about the US Consumer Price Index
The Bureau of Labor Statistics (or BLS) developed the U.S. CPI in 1913 to measure the change in prices.
Why personal consumption expenditure is important to investors
The U.S. Bureau of Economic Analysis issues PCE data, and the price index is a measure of the average increase in prices for all domestic personal consumption.
Analysts Recommendations for AbbVie in August 2017
Twenty-one analysts were tracking AbbVie in August 2017. Three analysts suggested a “strong buy,” while seven suggested a “buy.”
Why Eli Lilly Expects 2Q17 Revenue Growth
As per analysts’ estimates, Eli Lilly’s (LLY) revenues could rise ~3.6% to $5.6 billion in 2Q17.
How’s Gilead Sciences Expected to Perform in 2016?
Gilead Sciences lowered its guidance for fiscal 2016 due to weak 2Q16 results reported on July 25. It expects its 2016 revenues to be $29.5 billion–$30.5 billion.
Gold SPDRs Fall as US Fed Members Turn Hawkish in Rate Hikes
Gold prices retreated following the rise in the US dollar index. Gold had been gaining traction earlier last week following a dovish report by Janet Yellen, the US Federal Reserve chairperson.
What Biogen Is Doing that Put It in Good Favor with Analysts
Based on recommendations from 25 broker companies, a Bloomberg survey reported that 62.5% of analysts gave Biogen (BIIB) “buy” recommendations.
How Eli Lilly’s Cardiovascular Products Have Been Faring
Eli Lilly and Company’s (LLY) Human Pharmaceutical segment includes cardiovascular products such as Cialis, Effient, and other products.
The health insurance marketplace affects the hospital industry
These exchanges—also called “health insurance marketplaces”—sell federally regulated, subsidized health insurance to individuals and small businesses.
Illumina Stock Continues Its Bull Run
Illumina (ILMN) reached a 52-week high of $357.93 per share on August 31.
Johnson & Johnson’s Profitability Improves in 2Q15
Johnson & Johnson’s net profit margin improved to 25.4% for 2Q15 compared to 22.2% for 2Q14 due to the divestiture of some low profitability products and improved sales of high profitability products.
Why a September Rate Liftoff Seems Likely
Atlanta Fed president Dennis Lockhart recently stated that it would take “significant deterioration in data” for him to reject the idea of a September rate hike.
Did the January Jobs Report Improve Confidence in the US Economy?
The January jobs report indicated a strong improvement in the labor market.
Understanding JNJ’s Latest Stock Price Rise
On July 20, 2017, JNJ stock was trading at its 52-week high of $137.1, which was ~25.4% above its 52-week low of $109.3 on December 7, 2016.
Behind JNJ’s Recent Stock Price Performance: Is More Growth Coming?
Johnson & Johnson (JNJ) has seen a few disappointing quarterly performances, but on October 17, when JNJ announced its 3Q17 results, the stock gained 3.4%.