|Bid||63.01 x 1300|
|Ask||0.00 x 800|
|Day's Range||113.40 - 118.22|
|52 Week Range||73.69 - 119.84|
|Beta (3Y Monthly)||0.59|
|PE Ratio (TTM)||269.17|
|Earnings Date||Feb 13, 2019|
|Forward Dividend & Yield||2.25 (1.94%)|
|1y Target Est||118.25|
Incyte stock launched Tuesday after an analyst suggested its portfolio of cancer treatments could net the biotech stock an acquisition offer. Biotech deals have been rampant this month.
NEW YORK, Jan. 15, 2019 -- The following statement is being issued by Levi & Korsinsky, LLP: To: All Persons or Entities who purchased Loxo Oncology, Inc. (“Loxo.
Bristol-Myers (BMY) gets EU approval for the immuno-oncology combination of Opdivo and low-dose Yervoy for the first-line treatment of patients with intermediate- and poor-risk advanced RCC.
# Eli Lilly and Co ### NYSE:LLY View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low ## Bearish sentiment Short interest | Positive Short interest is low for LLY with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $14.44 billion over the last one-month into ETFs that hold LLY are among the highest of the last year, but the rate of growth is slowing. ## Economic sentiment PMI by IHS Markit | Neutral According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is strong relative to the trend shown over the past year, but is easing. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. LLY credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to firstname.lastname@example.org. 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.
Eli Lilly and Co. (LLY) CEO David Ricks thinks two recent biotechnology acquisitions by big pharma could open the floodgates for more deals in 2019. Speaking at the recent J.P. Morgan Healthcare Conference in San Francisco, Ricks said the stars are aligned for heightened merger and acquisition activity in the field. Lilly welcomed the new year by announcing it was buying Stamford, Connecticut-based Loxo Oncology (LOXO) in an $8 billion deal.
Alder Biopharmaceuticals could eventually capture 15%-20% of the market for migraine prevention, an analyst said Monday, suggesting the biotech stock might be a good fit for giant Biogen.
AbbVie, Amgen, AstraZeneca, Celgene, Eli Lilly, Johnson & Johnson, Mallinckrodt, Novartis, Novo Nordisk, Pfizer, Sanofi and Teva Pharmaceuticals received letters seeking detailed information and documents about the companies' pricing practices.
M&A momentum is building in the pharma space, with more deals announced last week, including Eli Lilly And Co (NYSE: LLY )'s $8-billion move to acquire Loxo Oncology Inc (NASDAQ: LOXO ). The following ...
The biopharma delivered the goods with its drug pipeline, scored marketing approval for its lead drug candidate, and agreed to be acquired for $8 billion.
Novo Nordisk (NVO) has a strong presence in the Diabetes care market and its top line is driven by strong performance of products like Victoza.
The stock market continued to run higher in the latest week, despite warnings from Macy's, American Airlines and Constellation Brands. GM and Boeing rallied on good news.
Eli Lilly and Co remains in the hunt for cancer drugs even after announcing an $8 billion purchase of Loxo Oncology this week, but it plans to remain on the sidelines when it comes to two of the hottest areas of drug development. Lilly Chief Executive Dave Ricks told Reuters that as the company looks for deals to enhance its pipeline of future treatments it will leave CAR-T therapies for cancer and gene therapy for rare diseases to others, for now. "The data is amazing, but practically, it's not reaching many people," Ricks said of CAR-T therapy, which involves extracting disease-fighting T-cells from a patient, re-engineering them to better recognize and attack cancer, and reinfusing them into the body.
Given the meltdown we've seen across the entire market over the past 16 weeks, many investors may be overlooking company-specific and industry-specific news. One of those pieces of news? That a swath of pharmaceutical stocks are raising their prices in the new year. Pharmaceutical stocks and biotech companies are interesting plays in any market, partly due to their secular business nature. Meaning that, recession or boom, consumers need treatment. Whether it's as large as open heart surgery or small as a Tylenol, we pay for healthcare when we need it. For as secular as the group can be though, it has been under tremendous volatility lately. With that in mind, almost 40 companies started of 2019 with a series of prices hikes. The average raise was roughly 6.3%. So who were these companies and how do we trade their stocks? InvestorPlace - Stock Market News, Stock Advice & Trading Tips * InvestorPlace Roundup: The Hottest Stocks in the Market Today Let's look at a few of those pharmaceutical stocks. ### Allergan (AGN) Allergan (NYSE:AGN) is known for its vast drug and treatment portfolio. However, at the turn of the year, Allergan raised prices on 51 of its products. That's just over half of its portfolio. Of those 51 products, 27 of them saw an increase of 9.5%. The rest were bumped by 4.9%. All that said, Allergan makes the case that it's not a money-hungry cash grab. Rather, the company says it should not see any net gains as a result of the price hikes because it's providing higher rebates and discounts to its distributors. Allergan may say that, but investors sure wish it would help. Analysts expect sales to fall 1.7% this year and another 1.6% next year. On the earnings front, expectations call for a 90-basis-point gain this fiscal year before a 0.7% decline in 2019. Essentially, estimates call for flat earnings growth overall from fiscal 2017 through 2019. That's likely one factor for why the stock has gone from $195 in October to roughly $125 at its December lows. As AGN approaches the $145 to $150 level now, look to see if and where resistance comes into play. There's downtrend resistance at play, as well as the gap-fill up near $145. It would be encouraging to see the $140-ish level hold as support, but that doesn't leave much wiggle room for Allergan. ### Bristol-Myers (BMY) No one is talking about recent dividend payout from Bristol-Myers Squibb (NYSE:BMY), nor are they talking about its recent price increases. The company raised prices on its cancer drugs Opdivo and Yervoy by 1.5%, while lifting prices by 6% on its chemotherapy treatment Sprycel and its autoimmune disease drug Orencia. However, most investors are talking about the company's $74 billion cash and stock acquisition of Celgene (NASDAQ:CELG). BMY was hammered on the news at first, but rebounded by about 4% on Friday once investors were able to digest the news. Management expects the deal to close in the third quarter of 2019. Creating over $2 billion in synergies and boosting growth, BMY management is hoping the acquisition makes its stock more attractive to investors. At just 12 times forward earnings with 8.5% sales growth and 28% earnings growth this year, BMY already looks reasonable. Throw in its 3.5% dividend yield and its even more attractive. * Morgan Stanley: 7 Risky Stocks to Sell Now On the charts, it's clear that dips down to the upper $40s have been viewed as buying opportunities by investors over the last four years. ### Eli Lilly (LLY) Eli Lilly (NYSE:LLY) isn't exempt when it comes to drug price increases, as it raises prices for Jardiance, a treatment for type 2 diabetes, by 6%. Unlike some of its peers, Eli Lilly has been on absolute fire. Shares are up 35% year-over-year and about 60% from its February lows. Despite the rally, LLY still pays out a 2.2% dividend yield and trades at a somewhat reasonable 20.6 times this year's earnings. Despite the big breakout rally in July, LLY has modest growth expectations. Analysts expect 6.8% and 4% sales growth this year and next year, respectively. Further, estimates call for 30.4% earnings growth this year and 6.5% growth in 2019. Fueling the breakout during the summer? A strong second-quarter result and potential IPO for one of its businesses. However, some may feel that LLY stock has rallied too far, too fast and that it's no longer a worthy buy. According to the charts, that may be the case if LLY is unable to push higher and take out its recent highs near $120. If it can break that level, the rally can continue. If not, look to see if uptrend support holds (blue line). Should it fail, LLY could be heading for a retest of its 200-day moving average. ### Pfizer (PFE) Pfizer (NYSE:PFE) delayed various price hikes in 2018, but pushed through its increases at the start of the year. Not many companies have been as open as Allergan about confirming its specific price hikes, but Pfizer may need them to keep pace in 2019. That is to say, PFE was one of the best-performing stocks in the Dow Jones last year. After consolidating between $30 and $36 for most of the last five years, shares finally broke out around the same time Eli Lilly did. In fact, their charts look quite similar too. After a big breakout six months ago, PFE is having trouble pushing higher. Should it fail to get through the 50-day and short-term uptrend support (blue line) gives way, a test of the 200-day moving average could be in the cards. Should it fail as support, a test of $38 is likely in store. Above the 50-day and a rally to $46 is possible. * 10 Stocks You Can Set and Forget (Even In This Market) Investors not worried about the charts will key in on Pfizer's 3.4% dividend yield and its valuation of 14 times this year's earnings. Although remember that 2018's 13.2% earnings growth is expected to slow to just 2.7% in 2019. ### Biogen (BIIB) Biogen (NASDAQ:BIIB) was also on the list of price increases for 2019. The company increased prices on its multiple sclerosis medications Tecfidera by 6%, Plegridy by 2% and Tysabri by 3.5%. Like other biotech stocks, Biogen has been volatile and struggling. Nowhere is this more evident than on the charts. Shares went from $370 in February to $250 in a matter of months, then hit nearly $400 per share in late July. Now near $330, BIIB bulls are near a make-or-break point. The stock has put in a series of lower highs (blue circles) since that big rally in July. Currently, both the 50-day and the 200-day moving averages rest at about $313. Investors who believe BIIB is attractive -- trading at about 12 times forward earnings with expectations to grow sales and earnings 2.5% and 8.5% in 2019, respectively -- will want to see it hold above these two marks. Should it fail, Biogen could quickly head to the bottom of its recent channel, somewhere in the $270 range. On the plus side though, if shares push higher and can close above $340, BIIB may be starting a new uptrend. ### Teva (TEVA) While Warren Buffett's Berkshire Hathaway (NYSE:BRK.B, NYSE:BRK.A) holds a $750 million stake in Teva Pharmaceuticals (NYSE:TEVA), it's far from his largest holding. Big or small, the Oracle has to be disappointed with the stock's recent action, falling from $24 in November to less than $15 at its lows last month. Now up over $17, bulls are hoping Teva stock can continue higher. Will it? Like the others on this list, Teva also raised prices on some of its drugs this year, although the specifics are not well known. So far the name has done well this year, though granted, were just a few sessions into 2019. In any regard, Teva is bumping into the backside of prior downtrend support (blue line). Should this level act as resistance, bulls will want $16.75 to act as support. If not, the recent lows are in play. Over resistance and the $19 to $20 level is on the table. * The 7 Best Stocks in the Entrepreneur Index While the stock trades at less than 7 times this year's earnings, keep in mind that growth has been tough. Sales are forecast to fall 15.8% this year, while analysts expect earnings to contract by 27%. In 2019, the slowdown decelerates, but analysts are still calling for a 4.8% reduction in revenue and a 3% fall in earnings. ### Insys Therapeutics (INSY) Though it is much smaller than most of the names on this list, Insys Therapeutics (NASDAQ:INSY) is joining them in raising prices -- in this case, on its pain-relief medication Subsys. INSY has a market cap of just $350 million. The move is probably necessary, given that sales are forecast to fall about 40.5% this year and another 5% in 2019. It doesn't help that INSY doesn't turn a profit, although its lack of debt is encouraging. Given the selloff we've seen in the stock market since the start of Q4 2018, it's no surprise that investors have cut INSY very little slack. Shares came into Q4 near $10, but are now clinging to the $4.25 level. To say it's been a rough ride would be an understatement. However, INSY is holding up over the $4 level and is right at downtrend resistance. A push higher to $5 would be encouraging, even if this level acts as resistance on its first attempt. But a break below $4 -- especially in the near-term -- would be worrisome and puts the lows back on the table. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 7 Pharmaceutical Stocks That Just Raised Prices This Year appeared first on InvestorPlace.
Two new deals to start the year and positive trial presentations at the J.P. Morgan Health Care conference have breathed new life into some of last year's biggest stock losers.
So far, 2019 is starting off with a bang in the pharmaceutical industry. Last week, we learned that Bristol-Myers Squibb (NYSE:BMY) is buying out beleaguered Celgene (NASDAQ:CELG) in a behemoth $74 billion takeover. Eli Lilly (NYSE:LLY) followed that up with a large deal of its own, announcing an $8 billion offer for Loxo Oncology (NASDAQ:LOXO). Whether the purchase helps Eli Lilly stock in the long term is another question altogether. While it may seem small compared to the blockbuster Celgene deal, $8 billion is still a major announcement. Don't forget Gilead Science's (NASDAQ:GILD) deal to buy the revolutionary Hep-C cure company Pharmasset for $11 billion in 2011. Within a couple years, GILD stock quintupled as the Pharmasset drugs lifted Gilead's profitability to the stratosphere. Needless to say, Loxo, if it delivers in similar fashion, could fundamentally reshape Eli Lilly's future for many years to come. That's especially as Eli Lilly has some patent expirations of its own to consider and really could use a big new product launch or two. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks at Risk of the Global Smartphone Slowdown ### Loxo: A Steep Price Could Hamper Eli Lilly Stock It's no secret that biotech stocks got crushed in the 2018 correction. The SPDR Biotech ETF (NYSEARCA:XBI) dropped as much as 35% within three months. That meant that companies with strong balance sheets had the ability to go discount shopping. Bristol-Myers was first to take a big swing with the Celgene deal. However, Eli Lilly's move will also be a game-changer. Not only did Eli Lilly pay $8 billion for Loxo, they also paid a huge premium. LOXO stock previously traded as high as $188/share. Due to the biotech correction it was trading around $140 prior to Eli Lilly's offer. As such, you'd think something like $200/share (above Loxo's all-time high) would be enough to close the deal. Instead, Eli Lilly offered a whopping $235/share. Now, to be fair to Eli Lilly, Loxo did enjoy a positive development in that interim period; they managed to get FDA approval for their leading pipeline drug candidate. Though, that approval was widely expected. Regardless, Eli Lilly is paying heavily for a company that is just at the beginning of the commercialization process for their drug candidates. ### Loxo and Eli Lilly Stock Loxo has taken a different path from most companies in oncology. Instead of targeting its drugs for specific types of cancer, such as lung or prostate, Loxo targets genetic mutations. These genetic mutations appear to lead to cancers across a variety of different body parts. Loxo's first approved drug targets NTRK gene fusions. This is a rare condition which occurs in roughly 0.2% of the population. Loxo estimates that there are a few thousand eligible patients with NTRK fusions in the U.S. at this time. Thus, with a nearly $400,000/year price tag for the drug, it may take longer than expected for Loxo's product to become a huge commercial seller. The Chief Business Officer for Loxo, Jake Naarden, stated last year that: "We expect the initial launch to be challenging, though we remain optimistic about the longer-term trajectory. One of the truisms you often hear about new drug launches is that the first few quarters determine the commercial fate of the drug. Given the penetration of tumor genomic testing today, we do not believe that the first few quarters of this launch will inform very much." He makes an important point. Most oncology patients are not prescribed genomic testing today. Additionally, some genomic tests do not include the NTRK fusion. As a result, many potentially eligible patients may not know that Loxo has a beneficial therapy for their condition. This, however, highlights one big advantage to the Eli Lilly purchase. Eli Lilly has far more connections and influence within the medical community. It has the budget and reach to ensure that more cancer patients test their genomes and are aware of potential novel solutions. It's likely that Eli Lilly's purchase will bring Loxo's first drug far more attention and quicker clinical uptake. Loxo also brings its promising Loxo-292 therapy which is still in clinical trails. ### Eli Lilly Stock Takeaway One point in favor of the deal is that Eli Lilly has a strong balance sheet and can pay for Loxo with cash. Heading into the deal, Eli Lilly had $9 billion in cash against $13 billion in total debt. The Loxo purchase will consume almost all of the company's existing cash reserves, but still leave it in a reasonably sound fiscal position. After adjusting for one-time expenses, Eli Lilly will earn in the ballpark of $4.5 billion dollars for 2018. That means that it's net debt load is not especially problematic. On a debt/EBITDA basis, it comes in around 1.5x, which is quite conservative. From an earnings basis, the Loxo deal will consume just under two full years of Eli Lilly's ongoing net income. Given the limited size of Loxo's market, at least at first, Eli Lilly won't earn back its $8 billion purchase price in the near-term. But the potential is still great. Eli Lilly is buying a drug platform with a rather novel approach to treating cancer. If the company is able to commercialize other Loxo drugs that are earlier along in clinical trials, the deal could end up being a big win for Eli Lilly stock. At this point, Eli Lilly stock may be a bit overvalued. It's still trading at 20x forward earnings. That's quite aggressive for a pharma company, as patent expirations tend to keep PE ratios rather low. And Eli Lilly stock is up 35% over the past year which is a stark contrast to struggles elsewhere in the health care space. As for the Loxo deal in particular, it could pay off big, but for now, a wait and see approach seems most prudent. At the time of this writing, Ian Bezek owned GILD stock. You can reach him on Twitter at @irbezek. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post The Loxo Oncology Purchase Eventually Could Help Eli Lilly Stock appeared first on InvestorPlace.
Lilly (LLY) is spending $8 billion to buy small cancer biotech Loxo Oncology. Big Pharma CEOs hint at spur in M&A activity in 2019.
These companies arguably stole the show at J.P. Morgan's high-profile healthcare conference this year.
Amarin stock bounded to a month-high Thursday on a report that Dow Jones component Pfizer could be interested in acquiring it. Deals in the biopharma space have kicked up over the last month.
The tail end of 2018 didn't shape up to be great for the investing public. The markets -- down 6%-plus for the full year -- fell into a turmoil and it looked as if the bulls were finally rolling over into a big bear market. Stocks, commodities and other risk assets tanked as global growth worries moved to the forefront of many investors' minds. At the time of writing, the S&P 500 is now roughly 12% below its recent September highs, while the tech-heavy Nasdaq is down around 14% from its recent peaks. But just as it looked like the markets' woes could spill over into the New Year, the market got its Santa Claus rally after all. From Dec. 24 to Dec. 31, the S&P jumped 6.6% while the Nasdaq gained 7%. Year-to-date so far, the S&P is up another 3%. The Nasdaq, 4.4%. That doesn't mean that the bear market is over. Far from it. This is a great time to strengthen your portfolio's diversity, introducing a number of defensive stocks to batten down the hatches in case more dark clouds roll over the horizon. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Luckily, exchange-traded funds (ETFs) make shifting portfolio strategy a breeze. By using ETFs, investors can add a dose of safety to their portfolios and potentially save themselves some losses as the bear takes over. Moreover, they can do it quickly with one ticker access. There's no major selling or buying with ETFs. That makes using them the perfect way to hedge a portfolio. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors With that, here are three defensive ETFs to buy right now to limit a potentially elongated bear market's growl. Source: Shutterstock ### Invesco Defensive Equity ETF (DEF) Expense Ratio: 0.60%, or $60 per $10,000 invested One of the oldest and most successful ETFs providing safety to portfolios is the $165 million Invesco Defensive Equity ETF (NYSEARCA:DEF). Heck, it even has "defense" as part of its name. The key to that defense comes down t its underlying construction. DEF tracks the Invesco Defensive Equity Index. That benchmark combs through the universe of large-cap stocks and finds those superior risk-return profiles during periods of stock market weakness as well as offer gains during bear markets. The basic underlying idea is to create a portfolio of stocks that should hold up- or at least fall a lot less than the broader market- when things get dicey. The ETF currently holds 100 different stocks- with its top holdings reading like a who's who of America's "bedrock" stocks, including drugmaker Eli Lilly & Co (NYSE:LLY) and consumer products firm Hormel Foods (NYSE:HRL). Stocks in the ETF are equally weighted so that investors can gain the most from each holding's defensive nature. Healthcare stocks make up around 20% of the portfolio, while industrials and tech make much around 15% of assets each. As far as performance goes, DEF has been one of the better defensive ETFs around. During market troubles, the fund has managed to hold its own. Considering 2018's performance, DEF has managed to beat the S&P 500. That outperformance should continue next year as the market drifts lower. ### Defensive ETFs To Buy Today: iShares Select Dividend ETF (DVY) Expense Ratio: 0.39% Investors often forget one of the best ways to score some great defense is through firms that pay hefty dividends. After all, making a few percentage points in yield can mean the difference between a loss and gain at the end of the day during drifting and sinking markets. More importantly, reinvested dividends can propel an overall position that much higher as prices rebound. Dividend ETFs such as the iShares Select Dividend ETF (NYSEARCA:DVY) make it easy to add a dose of dividends to a portfolio. DVY can be seen as a "catch-all" fund when it comes to dividend ETFs. The ETFs underlying index -- Dow Jones U.S. Select Dividend Index -- looks at U.S. stocks that have long histories of paying dividends as well as high yields. This allows investors to score a high yield today as well as one that will last the test of time. That's perfect for today's low return environment. The more pennies you can pick-up today, the better. And while the idea of "high yield" may sound scary, investors shouldn't fret. DVY's top holdings are not fly-by-night names. Pfizer (NYSE:PFE) and utility Dominion Energy (NYSE:D) are some of the stalwarts dotting its top-holdings. Those stalwarts and its remaining holdings help produce a tasty 3.51% yield. * Morgan Stanley: 7 Risky Stocks to Sell Now All in all, dividends can help boost a portfolios defense and DVY could be one of the best ETFs to get that exposure. ### SPDR Gold Shares (GLD) Expense Ratio: 0.40% When the going gets tough, investor's flock to gold. That relationship has been tested time and time again. And lately, the various gold ETFs are continuing the trend. Gold prices have spiked in recent weeks as the market has sputtered and finished December at six-month highs. And if you remember, six months ago was the last time the market had a slight meltdown. Because of this, gold ETFs could be one of the best ways to kind of hedge the upcoming storm in the year ahead. And you can't get much better than the SPDR Gold Shares (NYSEARCA:GLD). The $33.5 billion GLD is one of the largest ETFs in the world and is the behemoth among the gold ETFs. The fund doesn't use futures to get its gold exposure but owns physical bullion stored in a vault on behalf of investors. That keeps GLD's share price closely mirroring what is happening in the gold market. Each share of the ETF represents a 10th of an ounce of gold. So, buy 10 shares and you have an ounce of physical gold in your portfolio. This makes the GLD one of the easiest ways to add exposure to the asset class. There's no need to pay exorbitant fees to own gold and gain from its hedging abilities. In fact, GLD costs a cheap 0.40% in expenses. Given the markets current state, adding a touch of gold could be one of the best defenses around. At the time of writing, Aaron Levitt did not have an exposure to any ETF or stock listed. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 3 Defensive ETFs to Protect Yourself From Another Market Selloff appeared first on InvestorPlace.