|Bid||0.00 x 1100|
|Ask||0.00 x 1100|
|Day's Range||147.73 - 152.43|
|52 Week Range||139.28 - 170.26|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.03|
|Expense Ratio (net)||0.43%|
Healthcare sector-related ETFs appeared sickly Friday as Johnson & Johnson (JNJ) dragged down the segment in response to reports that the company knew for decades that its baby powder contained asbestos. Healthcare stocks retreated after Reuters reported that the pharma giant knew for decades that the cancer-causing asbestos were found in its Baby Powder. In an examination of company memos, internal reports and other confidential documents, Reuters found that J&J known about the presence of trace amounts of asbestos in its products from as early as 1971.
Merck & Co.’s (MRK) Keytruda generated revenues of $1.9 billion in the third quarter, reflecting an ~80% YoY growth and a 13% sequential growth. In the US and international markets, Keytruda generated revenues of $1.1 billion and $780 million, respectively, in the third quarter, compared to $604 million and $442 million, respectively, in the third quarter of 2017, reflecting an ~84% YoY growth and a ~76% YoY growth, respectively.
Johnson & Johnson’s (JNJ) pulmonary hypertension business generated revenue of $656.0 million in the third quarter compared to $632.0 million in the third quarter of 2017, reflecting ~3.8% YoY (year-over-year) growth.
With a contentious midterms election season coming up, many anticipate a split government that could potentially impact the way ETF investors ride the markets ahead. Some expectations point to Democrats winning back the House of Representatives and the Republicans maintaining a narrow hold on the Senate - Republicans currently dominate both chambers. "If the consensus expectation of a divided government turns out to be correct, the most likely political consequences would be an increase in investigations and uncertainty surrounding fiscal deadlines," David Kostin, Goldman's chief U.S. equity strategist, said in a note.
Analysts expect Pfizer’s (PFE) top line to increase ~2.9% to ~$13.5 billion during the third quarter. The company’s EPS is expected to increase to $0.75 in the third quarter—compared to $0.67 in the third quarter of 2017.
In this part, we’ll discuss Pfizer’s (PFE) earnings quality and dividend performance. The above chart compares the changes in Pfizer’s Earnings Quality score since the first quarter of 2017. Pfizer has announced the following dividends during 2018.
Pharmaceutical stocks and sector-related exchange traded funds have enjoyed a great summer and the rally may continue to have legs. Meanwhile, the broader iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB) rose 10.6%. There were no clear catalysts to explain the rally as we did not witness any memorable earnings beats, new clinical trials or large-scale deals, the Wall Street Journal reports.
Johnson & Johnson (NYSE: JNJ), one of the world's largest healthcare companies, has underperformed the broader market in 2018. The company's stock is down 3.66% year to date (YTD), while the Standard and Poor's 500 index (S&P 500) is up roughly 7%. David Katz, chief investment officer at Matrix Asset Advisors, told Reuters, "We are much more upbeat about Johnson & Johnson today than we were six months ago.
Pharmaceutical ETFs, securities publicly traded on stock markets, are designed for investors who do not have the capacity to hold many stocks but are interested in diversifying their pharmaceutical investments. The chart below compares ETFs’ normalized prices in June.
Changing political winds and the seasonal period for drugmakers to hike their prices could trigger short-term volatility in pharmaceutical sector-related ETFs. The markets could put a spotlight on pharmaceutical stocks and the rising cost of drug prices as Mid-term elections are quickly coming up in November and July is a popular month for drug companies to increase list prices on medicines, writes Charley Grant for the Wall Street Journal. Just last week, Health and Human Services Secretary Alex Azar said in congressional testimony that companies should “practice restraint” with price increases.
Pharmaceutical ETFs are securities that are publicly traded on the stock market and designed for investors wanting to diversify their investments in the pharmaceutical sector.
Merck’s (MRK) products are classified into four business segments: Human Pharmaceutical, Animal Health, Healthcare Services, and Alliances. Merck’s revenue grew 6% to ~$10.0 billion in 1Q18, driven by 3% operating revenue growth and a 3% boost by foreign exchange.
As we discussed previously in this series, Allergan’s (AGN) US Specialized Therapeutics segment includes the revenues from the US sales of specialized products related to eye care, medical aesthetics, dermatology, neuroscience, and urology. The chart below compares the revenues for the US Specialized Therapeutics segment since 1Q17.
Pfizer (PFE) released its 1Q18 earnings today, reporting another strong quarter for the Innovative health business. The company reported 1% growth in its revenues to $12.9 billion for 1Q18, compared to ~$12.8 billion in 1Q17.
As discussed in the previous part of this series, Wall Street analysts estimate Pfizer’s (PFE) revenues will increase ~2.7% to $13.1 billion during 1Q18 as compared to revenues of $12.8 billion during 1Q17. The growth in revenues is expected to be driven by innovative health products. Pfizer’s products are classified into two business segments: the Innovative Health segment and the Essential Health segment.
As we discussed earlier, analysts expect Allergan’s (AGN) revenues to see 0.6% growth to $3.6 billion during 1Q18. Allergan classifies its business operations into three business segments: US Specialized Therapeutics US General Medicines International
As discussed, Bristol-Myers Squibb (BMY) is expected to report growth of ~6.3% to $5.2 billion in its 1Q18 earnings on April 26. The above graph shows the quarterly revenues of Bristol-Myers Squibb since 1Q17 and analysts’ estimates for 1Q18. Nearly 45% of total revenues for Bristol-Myers Squibb come from international sales, so the company is exposed to currency risk.
Johnson & Johnson’s (JNJ) medical devices business includes cardiovascular care products, orthopedics products, surgery products, vision care products, and diabetes products. The medical devices business reported 7.5% growth in revenues to $6.8 billion during 1Q18 as compared to revenues of $6.3 billion during 1Q17. The growth includes 3.2% growth in revenues at constant exchange rates and a 4.3% increase due to the positive impact of foreign exchange.
Eli Lilly & Co. (LLY) is a leading US-based pharmaceutical company with a product portfolio covering human health products and animal health products. Eli Lilly is set to release its 1Q18 earnings on April 24.
Merck’s (MRK) Relebactam is an investigational beta-lactamase inhibitor for the treatment of certain forms of imipenem-non-susceptible bacterial infections.