|Bid||80.62 x 900|
|Ask||80.64 x 800|
|Day's Range||80.06 - 80.90|
|52 Week Range||75.77 - 113.79|
|Beta (3Y Monthly)||0.95|
|PE Ratio (TTM)||21.97|
|Earnings Date||Apr 24, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||4.28 (5.31%)|
|1y Target Est||92.18|
FDA places a partial clinical hold on all studies evaluating AbbVie's (ABBV) Venclexta (venetoclax) for the treatment of multiple myeloma.
Today, I'd like to discuss the outlook for AbbVie (NYSE:ABBV), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25.Source: Shutterstock * Top 7 Service Sector Stocks That Will Pay You to Own Them There could be further price volatility and weakness in the ABBV stock price in the coming weeks, pushing it toward the low-$70's or even mid-$60's level. However, it is a company with robust growth prospects and respectable dividends that may deserve a place in a diversified portfolio.Therefore, if you already own AbbVie shares, you might want to hold your position. That said, within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 5-7% below the current price point. Expect nearer-term trading to be choppy at best.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf you are an experienced investor in the options market, you may want to protect your portfolio with a covered call or possibly a put option spread with a 3-month time horizon. If you do not yet hold ABBV, you may want to wait several weeks to buy into the stock at the next dip.With all of that in mind, here's a deeper look into at AbbVie stock. A Hiccup in the Robust Fundamental StoryIn 2013, Abbott Laboratories (NYSE:ABT) spun off its research-based pharmaceuticals business, creating AbbVie, an independent biopharmaceutical company. Abbott decided to retain the branded generic pharmaceuticals, diagnostics, medical devices and nutrition.Meanwhile, AbbVie took control of the development and commercialization of a range of brands, including Humira, its flagship drug used to treat autoimmune diseases, Imbruvica, which differentiates between cancer cells and regular cells, and Synthroid, a replacement for a hormone normally produced by the thyroid gland.The company's financials and growth metrics over the past five years have been impressive and ABBV was in a strong financial position heading into 2019, with hopes of a higher share price during the first quarter.However, in January, AbbVie's fourth-quarter earnings release weighed heavily on the stock. For starters, the company missed the consensus on revenue. Its earnings per share of $1.90 was below the expected number of $1.94. The next day, the stock fell by 6% and that decline has intensified over the past two months.ABBV's quarterly report also showed that the international sales of Humira fell by almost 15% year over year, mostly as a result of 'biosimilar' competition in Europe, which makes up three-quarters of the overseas Humira business. In October 2018, its patent in the European Union (E.U) expired.The U.S. Food and Drug Administration (FDA) refers to biosimilars as "highly similar to an FDA-approved biological product … [that has] no clinically meaningful differences in terms of safety and effectiveness." Although Wall Street had already known about this sales decline in Europe, when coupled with the other question marks in the earnings report, it was enough to increase the selling pressure on the stock.It is also possible that investors got worried about the potential fall in Humira revenue when the drug comes off patent in 2023 in the U.S. It is important to emphasize that AbbVie's revenue from the drug will not decline to nothing when the biosimilars hit the market in 2023. What will most likely happen is that as the company's pricing power decreases, the revenue will also gradually decline.Therefore, many analysts feel that ABBV shares offer value and that any bad news that is specific to Humira is already baked into the stock price. Value PlayWhen markets penalize biopharma stocks, it can take some time for them to recover. However, for patient long-term investors, the returns can be significant -- especially when the company boasts several other current drugs, as well promising ones in the pipeline.At present, AbbVie's other major products include: * AndroGel, a testosterone replacement therapy. * Creon, a pancreatic enzyme therapy to treat exocrine pancreatic insufficiency. * Duopa and Duodopa, gels to treat Parkinson's disease. * Viekira Pak, which treats chronic hepatitis C. * Zinbryta, to treat multiple sclerosis.Analysts are also expecting a slew of new products in 2020, such as next-generation immunology drugs. These drugs and others that are being developed and commercialized, highlight how impressive the potential growth story could be in the next few years.ABBV trades at a trailing price-to-earnings (P/E) ratio of 21. This number is rather modest when compared with the P/E ratios of several competitors, including AstraZeneca (NYSE:AZN) with a P/E of 49.9, Pfizer (NYSE:PFE) with a P/E of 25.2, and Merck (NYSE:MRK) with a P/E of 34.8. Reinvesting the Sweet Dividend Yield of ABBV stockIncome investors know that they can compound their returns through reinvesting dividends from high-yielding shares. AbbVie also offers investors a healthy dividend yield of about 5.4%, another reason why I believe the stock belongs in a capital-growth portfolio.Since its spin-off from Abbott Laboratories in 2013, ABBV has increased dividends every year -- a trend that is likely to continue. The next dividend payment is scheduled for May 15, 2019, with an ex-dividend date of April 12.It would not be wrong to call AbbVie a cashflow machine; as of Dec. 31, the company had a free cash flow of $3.27 billion. This strength not only gives shareholders conviction that the dividends are safe, but also provides the company with enough flexibility to, for example, make acquisitions to offset any further Humira revenue decline (especially in the U.S. when the drug comes off patent in 2023). The Bottom Line on AbbVie StockLike most biopharma stocks, AbbVie is a high-momentum stock. In other words, when the broader markets go up or when the company's earnings beat expectations, both investors and momentum traders tend to hit the "buy" button fast, expecting superior gains within days or weeks.However, if markets suffer a decline or if the company cannot keep up with the rising expectations, investors' risk appetite decreases fast and these stocks can fall much harder than less volatile stocks. * 7 Financial Stocks to Invest In Today The market has punished Abbvie stock since the start of the year. The stock may continue to struggle through much of 2019. However, patient ABBV bulls will probably be proven right to believe in the management's commitment to create shareholder value and to further grow the company both organically and through acquisitions. In the meantime, they can continue to collect high dividends.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post Why You Should Buy ABBV Stock for Income and Value appeared first on InvestorPlace.
AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study. Patients who are currently enrolled in studies and receiving the therapy may continue with the treatment, but no new patients should be enrolled in trials testing Venclexta for multiple myeloma until a further analysis of the data is completed, the drugmaker said. The drug is already approved to treat other types of cancer, including chronic lymphocytic leukemia and acute myeloid leukemia.
Shares of AbbVie Inc. fell 0.8% in premarket trade Tuesday after the Food and Drug Administration placed a partial hold on all the company's clinical trials of venetoclax as a potential treatment for multiple myeloma. The hold came after a review of Phase 3 data showed a higher proportion of deaths in the treatment arm than in the control arm. "As a result of this action, no new patients should be enrolled in any studies of venetoclax for multiple myeloma until a further analysis of the data is completed. Patients who are currently enrolled in studies and receiving benefit from the therapy may continue with treatment, after consultation with their physician," the company said in a statement. The FDA's hold will not impact any of the already-approved indications for venetoclax, such as chronic lymphocytic leukemia or acute myeloid leukemia, AbbVie said. Shares of AbbVie have fallen 12.5% in the year to date, while the S&P 500 has gained 13%.
NORTH CHICAGO, Ill., March 19, 2019 /PRNewswire/ -- AbbVie (ABBV), a research-based global biopharmaceutical company, today announced the U.S. Food and Drug Administration (FDA) has placed a partial clinical hold on all clinical trials evaluating venetoclax (VENCLEXTA®/VENCLYXTO®) for the investigational treatment of multiple myeloma. The partial clinical hold follows a review of data from the ongoing Phase 3 BELLINI trial (M14-031), a study in relapsed/refractory multiple myeloma, in which a higher proportion of deaths was observed in the venetoclax arm compared to the control arm of the trial. As a result of this action, no new patients should be enrolled in any studies of venetoclax for multiple myeloma until a further analysis of the data is completed. This action does not impact any of the approved indications for venetoclax, such as chronic lymphocytic leukemia (CLL) or acute myeloid leukemia (AML), and is limited to investigational clinical trials in multiple myeloma.
Our The Timely Ten list represents our top ten current recommendations from among our universe of undervalued blue chip stocks, explains dividend expert Kelley Wright, editor of the industry-leading advisory service, Investment Quality Trends.
Shares of major drug makers including Pfizer Inc. (PFE), Eli Lilly & Co. (LLY), Amgen Inc. (AMGN), Novartis AG (NVS) and AbbVie Inc. (ABBV), are already dramatically lagging the broader market this year.
Theravance (TBPH) commences phase IIb/III study for its gut-selective pan- JAK inhibitor, TD-1473 in patients with moderately to severely active ulcerative colitis.
Despite many politicians, particularly declared presidential candidates, beginning to speak out against big pharma, an FDA medical adviser does not think that anything will come out of it “because Congress is owned by pharma.”
AbbVie Inc NYSE:ABBVView full report here! Summary * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for ABBV with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ABBV. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold ABBV had net inflows of $2.29 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
J&J's (JNJ) Spravato (esketamine) gets approval for treatment-resistant depression. CHMP recommends approval of several drugs.
On paper, pharmaceutical giant Gilead Sciences (NASDAQ:GILD) is off to a solid start this year. So far in 2019, GILD stock is up over 4%. While that's not very impressive, GILD also pays out a 3.9% dividend. So in total, the owners of Gilead stock should receive healthy, double-digit-percentage returns in 2019.Source: Shutterstock Of course, that assumes that Gilead stock will continue to rise. But after examining the situation more closely, that appears to be unlikely. Since early February, GILD has fallen 8%. Moreover, Gilead stock has formed a bearish trend channel since October of last year. Making matters worse, the GILD bulls seemingly have no argument that can stop the decline of GILD stock. * 5 Airline Stocks In Serious Trouble As if stakeholders needed any more bad news, the company's fourth-quarter earnings per share came in below expectations. Against analysts' consensus earnings per share estimate of $1.74, GILD meekly delivered $1.44. Conspicuously, its Q4 EPS dropped 19% year-over-year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe revenue picture wasn't that much better for GILD stock. Sure, the company beat out the consensus estimate, which called for $5.52 billion, with a $5.8 billion haul. Unfortunately, the sales beat was overshadowed by the fact that the company's revenue fell nearly 3% versus the year-ago quarter.Most painful of all were product sales, which also slipped 3% YoY, to $5.68 billion. In particular, the revenue of Gilead's hepatitis C drugs tumbled 51% YoY to $738 million.Pouring salt on a festering wound, the company's hepatitis B treatments fell by double-digit-percentage levels, declining to $797 million. Unsurprisingly, Gilead stock tumbled after the earnings report.But what's truly worrisome about GILD is that after more than a month,Gilead stock still hasn't recovered. With Gilead's new CEO, Daniel O'Day, at the helm, should investors hold onto GILD stock, or sell their shares? GILD Stock Has Priced in the Bad NewsI don't blame shareholders for feeling jittery. Although O'Day has a strong, relevant track record given his time at Roche (OTCMKTS:RHHBY), he's in an unenviable situation. To prevent further damage to Gilead stock, the new leader must address the fallout from the large decline of the company's hepatitis C revenue, as well as diversify his company's product lineup.This is much easier said than done. A key reason why the markets punished GILD stock was that the company was essentially too successful. To put it bluntly, pharmaceuticals have almost no incentive to cure diseases. Instead, managing them and making victims of the disease continuously obtain the drugs will guarantee recurring income.Gilead took a radically-different approach. Rather than manage hepatitis C, its Sovaldi drug cured the disease. That seemed like a bad business move, considering that rival AbbVie (NYSE:ABBV) has a similar drug. The key difference between the treatments is that AbbVie's offering is ineffective, but profitable.Indeed, when you look at Gilead's Q4 results, you can't help but second-guess its management. Nevertheless, I don't think giving up on GILD stock is necessarily the right answer.Although the company has steep challenges ahead, I'm encouraged by the relatively modest volatility of GILD stock. Since Q4, Gilead stock is down 8%. That's a significant decline, but it's not devastating, particularly because GILD's key money maker appears to have weakened so much.Moreover, I find it interesting that GILD stock is staying above its long-term support line that extends back to 2013. Again, if Gilead has really incurred anything close to a fatal blow, it's not showing up in the charts.Secondly, the Q4 report demonstrated that the company has the potential to turn things around. The revenue of its HIV treatments -- including Biktarvy which demonstrates strong potential -- grew meaningfully, gaining 21% to $4.1 billion. Also, its immunotherapy cancer drug, Yescarta, raked in $264 million in 2018. The Long-term Outlook of Gilead Stock Is PositiveIf you look at the GILD stock price over the last five years, and compare it to the progression of the company's top line, you'll notice that they generally align with each other. After absorbing some tough spills, Gilead has generated meaningful momentum with its new-drug pipeline. Eventually, Gilead's share price will likely rebound as wellMore importantly, I think that management's decision to find effective cures for diseases was correct. Although Gilead stock is taking some hits due to the loss of revenue from its hepatitis C treatment, the drug proved that Gilead's science actually works. In the long run, that's an invaluable (and exclusive) brand message that GILD can exploit.And what about AbbVie's hepatitis C drug that manages the illness? ABBV may have outperformed GILD in the past, but today, it's in a worse situation. So far this year, ABBV is down more than 12%.In other words, within the broader healthcare industry, the science eventually matters. While GILD stock isn't perfect, I have confidence that this proven company can work out its pipeline issues. The same can't be said for the competitors that merely tow the line.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post Donat Abandon Gilead Stock After Weak Q4 Results appeared first on InvestorPlace.
Roche (RHHBY) obtains approval for the label expansion of Tecentriq in Europe. The company also submits its sNDA for leukemia drug, Venclexta.