|Bid||0.00 x 1100|
|Ask||67.90 x 1200|
|Day's Range||67.60 - 68.44|
|52 Week Range||65.06 - 100.23|
|Beta (3Y Monthly)||0.77|
|PE Ratio (TTM)||19.29|
|Earnings Date||Jul 26, 2019|
|Forward Dividend & Yield||4.28 (6.24%)|
|1y Target Est||84.92|
The U.S. Food and Drug Administration approved Merck & Co Inc's biosimilar to AbbVie Inc's blockbuster rheumatoid arthritis treatment Humira, the health agency said on Tuesday. The drug, Hadlima, is manufactured by Samsung Bioepis Co Ltd for Merck and comes with a boxed warning, the FDA's harshest. Humira also comes with a black box warning, according to the FDA.
This Peninsula company reported strong results from a late-stage clinical trial of its experimental treatment for women who suffer from heavy bleeding and pain due to uterine fibroids. But potential competition from a biopharma giant may be keeping investor enthusiasm in check.
Celgene Corp., Bristol-Myers Squibb Co. and AbbVie Inc. are all reporting earnings later this week. Companies are facing several potential changes in health policy, including a proposal to shift the risk of Medicare Part D catastrophic coverage from patients and the federal government to health plans and manufacturers. Biopharma companies, many of which rely on just one or two drugs for a big chunk of revenue, are also facing increasingly fierce generic competition.
Ahead of its quarterly earnings report scheduled for July 25, Bristol-Myers Squibb (NYSE:BMY) found itself trading at fresh 52-week lows. While BMY stock has kept up with the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) in that time, investors are getting increasingly negative on the company. With that in mind, what should we expect in the upcoming report and should investors still be bearish?Source: Shutterstock Thus far, the outlook for BMY isn't so great. Even if Bristol-Myers were to report a blowout quarter, shareholders may not even react at all. And if it issued a stronger outlook, BMY stock may barely nudge higher.Investors are deeply fixated on the Celgene (NASDAQ:CELG) acquisition, where BMY is paying $74 billion for the company and the fact that it needs this massive acquisition to offset its own clinical setbacks. Its cancer immunotherapy drug Opdivo is losing ground to Merck's (NYSE:MRK) Keytruda. Celgene's key myeloma drug, Revlimid, faces generic competition starting in March 2022.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBristol-Myers reportedly must divest Celgene's arthritis medicine Oteza to get the U.S. Federal Trade Commission's sign off on the deal. This compromise is devastating for the companies because the drug brought in 10%, or nearly $400 million, in sales in Celgene's first quarter. Celgene's disposition of this unit ahead of the deal will hurt Bristol-Myers, which needs all the cash flow generation to pay down debt. Although BMY said it will find $2.5 billion in cost synergies, the $1.6 billion in lost annualized revenue makes the Celgene buyout less attractive. * 10 Stocks to Buy From This Superstar Fund Investors continued to vote against the deal by selling BMY stock overall. The stock tried, on two occasions, to breakout and rally back to the $50 - $55 level, only to fail. And after each failed breakout, trading volume increased. Strong FundamentalsBristol Myers shares may bring pain for investors, but the company is a fundamentally strong company with a top-notch management team. It completed the divestment deal with its consumer health business (UPSA) on July 1 -- a deal that brings in $1.6 billion. And BMY is streamlining operations to cut costs ahead of the Celgene deal's closing. Once the deal is complete, expect Bristol Myers to use as much available free cash flow to pay down its debt quickly. AbbVie (NYSE:ABBV) has the same strategy with its Allergan (NYSE:AGN) buyout. It will use all cash flow generation from Humira to pay off the mountain of debt related to the acquisition. Second-Quarter Earnings ExpectationsIn the first quarter, BMY earned $1.10 a share as revenue grew 14% to $5.92 billion, beating consensus estimates in both cases. Analysts expect the company will report earnings of $1.06, up just slightly from last year's earnings-per-share of $1.01. Despite the flat earnings growth, analysts are very bullish and have an average price target of $57.67. This is ~35% higher than its recent closing price of $42.77.The company may give an updated view of its expectations stemming from the Celgene integration. With respect to the RCC (Renal Cell Carcinoma) market, BMY saw very strong tailwinds in the U.S. in the last quarter. It grew Opdivo, Yervoy market share to just over 40% in the U.S. And positive feedback from early launches in Germany and France are encouraging. Expect access to Canada, Australia and the U.K. to add to its market share and revenue growth. * 7 Great Sector ETFs to Buy for the Short or Long Term For the full year, Bristol-Myers expects operating expenses consistent with historical trends. It plans to continue increasing its dividend even though it pays down its debt rapidly over the next few years. All the while, it seeks to improve its credit metrics. Management forecasts growth of the combined company will offset the expected drop in Revlimid sales starting in 2022. It believes it may drive continued annual growth through 2025. Valuation and Your TakeawayBMY stock has upside of 35% if income investors use a dividend discount model to value the company. Assuming modest perpetuity growth of just 2.7% - 3.7%, the stock clearly trades at a discount. Investors are punishing the company more than they need to. If the company forecasts a stronger outlook for the rest of the year, look for the stock to reverse its 12.5% monthly drop and 17.7% year-to-date declines.As of this writing, Chris Lau owned shares in ABBV. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Why Bristol-Myers Squibb Stock Is Stumbling Ahead of Earnings appeared first on InvestorPlace.
AbbVie (ABBV) is set to release its Q2 earnings before market open on Friday. AbbVie stock has performed very poorly YTD, falling 26%.
“While we are not necessarily fans of consolidation for its own sake, we see AbbVie bringing discipline and decisiveness to Allergan’s portfolio,” SVB Leerink analyst Geoffrey Porges said.
Steady rise in demand for Humira in the United States and strong growth of Imbruvica are expected to drive AbbVie's (ABBV) second-quarter sales.
With earnings surprise in cards, the healthcare sector is expected to witness earnings growth of 1.7% in the second quarter, suggesting continued outperformance for healthcare ETFs.
While Allergan's (AGN) Q2 sales are likely to be driven by new as well as established products like Botox, generic competition for some key products is expected to hurt sales.
Rising demand for Humira in the United States and strong growth of Imbruvica are expected to drive AbbVie's (ABBV) second-quarter sales.
Here are AbbVie's grades on its previous acquisition deals. And they look ugly overall.
These are the clinical trial readouts, FDA decisions, and blockbuster-drug launches that will set the tone for the entire industry.
AbbVie (ABBV) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
J&J (JNJ) and Novartis (NVS) set the earnings season in motion for the pharma space. FDA approves Merck's (MRK) new combination antibacterial injection, Recarbrio.
(Bloomberg Opinion) -- Slimming down appears to be paying off for Novartis AG. CEO Vas Narasimhan has refocused the Swiss pharma giant around drugs by selling off eye-care business Alcon and its remaining consumer-health interests. Second-quarter earnings that beat Wall Street expectations Thursday and a big guidance boost showed the benefits of the strategy. Shares hit an all-time high in early trading even though the stock was already up over 20% year to date to that point and trades at a premium to peers. Novartis is benefiting from greater exposure to its drug business, which has more potential than the units it ditched. Simpler businesses are easier to understand and value, so it makes sense that the market has responded well to these moves. At this price, though, the strategy inherently exposes investors to more downside and volatility. The reason some drugmakers diversify is to add steadier revenue so they can better weather the booms, busts, and worrying product concentration that come with developing novel medicines. Novartis has a robust set of newer drugs, which is likely why it felt confident enough to get rid of other units. It has supplemented its arsenal further with a series of acquisitions as it continues its strategy by slimming down generic unit Sandoz.Psoriasis drug Cosentyx and heart medicine Entresto are the two drugs most key to the company’s near-term success. They helped drive the pharma unit’s 9 percent sales growth in the second quarter relative to the same period last year. There are high expectations for continuing growth, but they come with significant risks.A new rival from AbbVie Inc. recently entered the already crowded market Cosentyx competes in, and others are on the way. While Entresto has turned from a slow starter to a growing success story, a big chunk of its potential depends on expanding to new markets. Results are due from a late-stage trial in a new indication in the next few months. Positive indications will help justify the company’s current valuation. A failure could bring current momentum for the drug and Novartis’s more exposed stock screeching to a halt. Also, growth may not look as robust when sales begin to decline for two other blockbusters – cancer drug Afinitor and multiple sclerosis medicine Gilenya – in the next few years. That puts weight on the company’s most recent launches and pipeline. Those new products may be able to bear it; the company had a breast cancer drug, an MS medicine, and a groundbreaking gene therapy approved in the first half of the year. Late-stage data is due in the near term for potential blockbuster asthma and eye drugs as well as another MS drug. Still, weak launches or disappointing data could erode confidence in the company’s growth trajectory. Novartis executed its transition to a pure pharma firm well. There’s still a chance that the rapturous investor response is in part a sugar high. To contact the author of this story: Max Nisen at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
AC Immune (ACIU) initiates phase I study of ACI-3024, a Tau Morphomer inhibitor, for the treatment of neurodegenerative diseases like Alzheimer's disease.