|Bid||82.35 x 2900|
|Ask||82.39 x 3100|
|Day's Range||82.15 - 82.51|
|52 Week Range||64.78 - 86.30|
|Beta (3Y Monthly)||0.67|
|PE Ratio (TTM)||15.58|
|Forward Dividend & Yield||2.83 (3.45%)|
|1y Target Est||99.00|
After a revenue beat Tilray Inc (NASDAQ:TLRY) saw its stock jump 5% for the day. However, that optimism has faded rather quickly, and Tilray stock has not been able to capitalize on that momentum.Source: Shutterstock Unequivocally, it has been a wild ride for Tilray investors. Last fall, against a very frothy overall market and marijuana stocks going more mainstream, the stock price exceeded the $200 mark before getting cut down by three quarters, trading at less than $50 per share as of this writing. * 6 Chinese Stocks That Could Pop On a Trade Deal Still though, I remain cautious on Tilray stock. The company hit a major milestone by landing a partnership with Novartis AG (NYSE:NVS), the Swiss pharmaceutical company, late last year. That's certainly been a positive catalyst, but after all the hype, investors need to see meaningful progress toward a more profitable future.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray Stock Has a Mixed First QuarterA lot of the focus immediately after earnings was around revenues. TLRY delivered a massive 195 increase in year-over-year revenues. The legalization of marijuana use in Canada for adults last year in addition to hemp food sales from Tilray's acquisition of Manitoba Harvest were big drivers.Gross margins also saw a slight increase, but despite these positive signs, net losses for the quarter increased dramatically. Last quarter $5 million to $30 million most recently. For a growth company, it's not necessarily unexpected. Expansion costs money as companies need to lay the foundation for future endeavors, but the point is that it's naive to look only at the revenue beat and think TLRY stock is headed for the sky.Total kilogram equivalents sold did double to 3,012 kilograms, but compare that to fellow competitor Canopy Growth (NYSE:CGC) that sold 10,102 kilogram equivalents in the most recent quarter and has a higher pricing structure.TLRY is still doesn't have pricing figured out seeing as average net selling price per gram decreased over the prior year period. As the space gets more and more competitive, TLRY needs to optimize this quickly as increasing supply toward medical and consumer purposes will put pressure on prices. The trend is not going in the right direction. Tilray Stock Is OvervaluedUltimately, TLRY stock looks lofty in terms of valuation. This, of course, does not mean the stock cannot get more expensive from here, but it's not a screaming buy despite some decent first quarter numbers.Tilray's consensus forward P/E is the kind of number that makes you triple check because you don't think it can be right: 1,111x. Compare that 357x for CGC. It's a relative game with P/E ratios, so even though 357x may also sound extraordinarily rich, it goes to show that 1,111x is completely irrational.There is just so many ways for that multiple to get rerated downward, again and again. Final Note on Tilray StockThe first quarter earnings was a bit of a mixed bag. The market gave credit where it was due but no more than that, recognizing the weak points in the financials.Tilray has made progress on expansion via M&A, which may bolster future earnings, but only time will tell. There is a lot of success already built into the current valuation, meaning that TLRY can't miss a beat. As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Don't Let the Great Q1 Numbers Fool You into Buying Tilray Stock appeared first on InvestorPlace.
The current global health system treats chronic diseases with a pay-as-you-go model, spreading costs over months and years. It's unprepared to pay for a surge of new, single-treatment therapies with the potential to provide a lifetime of benefit.
Advances in cell and gene therapies are beginning to yield powerful new treatments for some of the most devastating illnesses. This is a major breakthrough, but it will introduce new upfront cost challenges to our already stretched health-care system. Policymakers and companies must work together to solve these challenges so that patients can gain access to the tremendous benefit these therapies deliver.
The Australian subsidiaries of British drugmaker GlaxoSmithKline and Swiss drugmaker Novartis misled customers and broke the law by promoting identical liniments as though they could treat specific ills, an Australian court found on Friday. The court said the companies admitted marketing Voltaren Osteo Gel as a treatment for osteoarthritis-related pain when its ingredients were the same as a cheaper Voltaren product, Emulgel. Judge Robert Bromwich said in a written decision that it was part of a "deliberate and considered marketing strategy".
Cannabis company Tilray (NASDAQ:TLRY) desperately needed a win with Tuesday's release of its first quarter of 2019 earnings report. Not only is Tilray stock down more than 38% since the end of March, the share price is only one-sixth of its peak value from September of last year.Source: Shutterstock It got the win. Although the net loss per share widened year-over-year, revenue almost tripled. The top line also topped analyst estimates.Perhaps the biggest driver behind Wednesday's initial gain, however, was the discussion of Tilray's growth prospects. Already partnering with beverage giant Anheuser Busch Inbev (NYSE:BUD) to create cannabis-infused drinks, Tilray stock has massive potential. Company CEO Brendan Kennedy fueled those fires, commenting during the conference call about being "inundated" with partnership requests from Fortune 500 companies.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Retirement Stocks That Won't Wilt in a Bear Market Still, significant challenges remain, spurring a sharp reversal of Wednesday's initial rally in the TLRY stock price. TLRY Earnings RecapTilray wasn't the only name to report last quarter's earnings on Tuesday. Aurora Cannabis (NYSE:ACB) did as well.Tilray was decidedly the better performer of the two, however. As evidence, Tilray stock gained nearly 5% on Tuesday and was up another couple of percentage points early on Wednesday. ACB stock rallied about as well as TLRY stock did on Tuesday but unwound those gains and more on Wednesday.The market celebrated Tilray's sales. The company's top line of $23.0 million, even adjusted downward to $21.5 million to account for excise taxes, still topped the consensus outlook of $20.16 million. The adjusted loss of 27 cents per share of TLRY stock, while much worse than the 7-cent loss per share in the year-ago quarter, essentially met analysts' consensus target.Gross margins improved sequentially, from 20% to 23%. However, they were well off the 50% level seen during Q1 2018, before Canada had legalized recreational marijuana.The volatile margins figure reflects investments made in cultivation facilities and accounting rules about inventory valuations. To meet demand, Tilray is buying marijuana from third-party suppliers. This costs the company more than it would to grow that supply itself. That third-party supply, though, may not be a high-quality leaf.Expenses related to the acquisitions of Manitoba Harvest also took a toll on profitability.When all was said and done though, investors couldn't get over the subtle but telling shift in selling prices. While sales volume more than doubled to 3,012 kilograms, the average selling price fell from $5.94 per gram a year ago to $5.60 per gram last quarter. That slide at least partially reflects the ongoing commoditization of marijuana. Unfortunately, this trend will continue to drive prices lower until only the cost-conscious, high-scale players are left. Perspective Required for TLRY StockTake last quarter's numbers for Tilray stock with a grain of salt, for better or worse. It, like all other marijuana stocks, represents a moving target for several reasons.One of them is the simple fact that the cannabis market in Canada is new. Prior to October, there was no legal adult-use revenue to report.The purchase of Manitoba Harvest also added food sales of $5.6 million to the mix, but only for part of the quarter. It's also arguable that Tilray may be able to better distribute Manitoba's goods better than Manitoba could on its own. If so, it could set the stage for tremendous growth going forward.One area where Tilray is lacking is its international exposure. Overseas sales only totaled $1.8 million last quarter. The right tweaks, however, could readily change that for the better.Still, Tilray boasts some of the primo deals with major names. Aside from the Anheuser Busch partnership, Tilray has inked a supply deal with pharmaceutical giant Novartis (NYSE:NVS). Both could be game-changers once their upsides are fully realized. But it could take several quarters for either large company to decide what they want with their cannabis journey.Selling more marijuana at ever-shrinking prices isn't necessarily a big step in the right direction.Whatever the case, Tilray's most immediate problem is clear. "Our growth internationally and in Canada continue to be limited by lack of supply that we expect to improve over time," explained Tilray Chief Financial Officer Mark Castaneda during the earnings conference call. The company believes it could take up to two more years before supply and demand find an equilibrium. It remains to be seen where the TRLY stock price will stabilize once that equilibrium is met. Looking Ahead for Tilray StockTLRY shares may have initially shot higher in response to first-quarter earnings, but the bounce appears almost pre-planned. It was poised to take shape no matter what due to the sheer severity of the selloff leading into Tuesday's news. Little revealed about the quarter implies much has actually changed since the end of Q4. Everything has just scaled up, including the loss, and the bears were relentless.Those same bears dug in again on Wednesday, recognizing that simply selling marijuana doesn't ensure meaningful or even modest profitability.That's also true of rival marijuana companies, by the way. The entire industry is spending huge sums of money to garner a piece of a market that may not justify the expenditures.Though he was speaking of the decision to establish more capacity rather than arrange for more cultivation, Kennedy's comment about believing "all the hype 18 months ago" rang out alarmingly. He essentially summarized the hype surrounding the cannabis market for the past year-and-a-half.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Tilray Stock Is Red-Hot, But It's Fundamentally Flawed appeared first on InvestorPlace.
Forget the marijuana stocks, as their partners are more of a sure thing, asserts Mark Leibovit, growth stock expert and editor of The VR Cannabis Letter.
Teva Pharmaceutical shares continue to fall amid concerns about a lawsuit over alleged price fixing among generic drugmakers.
A Japanese government panel approved on Wednesday a price of 33.5 million yen ($305,800) for Novartis' cancer treatment Kymriah, allowing the Swiss drugmaker to press ahead with a campaign to kick-start sluggish sales of the treatment. The one-time, personalised therapy, which was approved in Japan in March, will be available in the country for young people with acute lymphoblastic leukemia (ALL) and adult patients with diffuse large B-cell lymphoma (DLBCL).
Pinterest, Teva Pharmacetucals, Amazon, Disney and Flywheel Sports are the companies to watch.
Teva, along with other global drug companies, is accused of conspiring to inflate the prices of their generic therapies by as much as 1,000 percent, according to the lawsuit filed last Friday. The allegations include drug companies and their executives were not only involved in a price-fixing scheme, but were aware their alleged actions were illegal. Other companies named in the report include Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS) and Mylan NVM (NASDAQ: MYL).
Novartis on Monday said claims of price fixing against its Sandoz generics unit amid a U.S. probe of 20 drugmakers are without merit, with the Swiss company vowing to fight allegations in a lawsuit filed last week. "We believe that these claims are without merit and will vigorously contest them," Novartis said. "Sandoz takes its obligations under the antitrust laws seriously.
Shares in generic drugmakers including Teva, Mylan, Novartis, Sandoz, and Pfizer fell on Monday after 44 US states announced a lawsuit alleging an anti-competitive conspiracy to artificially inflate prices for more than 100 drugs, some by more than 1,000 per cent. Teva shares were down 11 per cent at $12.75, Mylan lost 6 per cent to $20.73, Novartis declined 2 per cent to $80.27 and Pfizer was 1 per cent lower at $40.35 on Monday, amid fears that the drugmakers could be hit with damages and penalties as a result of the suit, which was filed on Friday.
Allergan (AGN) and Novo Nordisk (NVO) announce Q1 results. Novartis buys rights to Takeda's dry eye disease drug, Xiidra.
Novartis gets a potentially blockbuster eye drug and Takeda gets to unload some debt and employees it took on when it purchased Shire.
Cell and gene therapies are among novel approaches that come with dramatic results for patients, along with doubts surrounding the long-term benefits and business model. No one disputes the drug works,” said Ketan Patel, a fund manager and Novartis shareholder at Edentree Investment Management in London. Novartis will need to significantly boost the drug’s sales over the next several years to justify the price tag, he said.
The small-cap biotech now has three of the top 10 pharmaceutical companies using its protein engineering platform technology.
Yahoo Finance's Adam Shapiro highlight's today's top trending stories that includes, Chevron backing out of Anadarko deal, Novartis purchasing Takeda Eye for $5.3B and Walmart manager salaries.