|Bid||36.36 x 900|
|Ask||36.62 x 2900|
|Day's Range||36.37 - 36.81|
|52 Week Range||33.97 - 46.47|
|Beta (3Y Monthly)||0.42|
|PE Ratio (TTM)||16.85|
|Forward Dividend & Yield||1.44 (3.96%)|
|1y Target Est||N/A|
Rising health costs have become a burden for many Americans, but many people still may be unaware of one benefit they get, the health savings account. Personal finance expert Jean Chatzky joins Yahoo Finance to discuss the benefits of HSAs.
Eli Lilly and Company's (LLY) new drugs like Trulicity, Taltz and Jardiance are likely to have performed well. Let's see if these along with its older products lead to an earnings beat for the company in Q3.
Fitbit Inc. shares are up 3.7% in premarket trading Thursday after the company announced a partnership with the Bristol-Myers Squibb-Pfizer Alliance focused on the detection of atrial fibrillation using Fitbit devices. As atrial fibrillation is a risk factor for stroke, the goal is to use technology to help patients detect this form of irregular heartbeat early on. Bristol-Myers Squibb Co. shares are up 0.4% premarket, while Pfizer Inc. shares are up 0.1%. Fitbit's stock has dropped 15% over the past three months as the S&P 500 has gained 0.2%.
Fitbit is teaming up with Bristol-Myers Squibb and Pfizer in an effort to build out a new health care feature that could detect a heart condition in users.
(Bloomberg) -- Healx Ltd., a British firm using artificial intelligence to quickly identify and develop treatments for rare diseases, raised $56 million to support its clinical trials and drug development.The company will use the funds to test therapies for fragile X syndrome, a leading cause of autism that has no approved treatments, and build its portfolio of medicines, according to a statement. Venture capital firm Atomico led the round, while existing investors including Balderton Capital and Amadeus Capital Partners also participated.Healx is planning another fund-raising round in the next 18 to 24 months, and then will consider an initial public offering, David Brown, co-founder and chairman, said in an interview. Healx officials declined to comment on the firm’s valuation.Brown was previously a chemist at Pfizer Inc. where his team invented Viagra, a blood pressure drug that was almost canceled before researchers realized it also happened to treat erectile dysfunction. Similarly, Healx’s technology aims to find novel uses for drugs and combinations of drugs that are already available.The company is working to use AI to speed up discovery and testing of drugs, a process that can take years and cost billions of dollars using current approaches. Rather than invent new compounds, Healx focuses on finding new uses for existing drugs that are already shown to be safe and can go directly to mid-stage studies of side effects and efficacy. That can cut years off of the time it typically takes to develop a new drug, the company said.“With the traditional approach, you have a 95% failure rate because you started with the wrong hypothesis,” said Chief Executive Officer and co-founder Tim Guilliams. “What we’re doing is we’re calling it ‘hypothesis free’ -- we let the algorithms decide first which diseases we work on.”Healx also seeks partnerships in drug development, and is working with the Fraxa Research Foundation on treatments for fragile X syndrome. New treatments for diseases can be ready for clinical trials in as few as two years using the approach, the company said. Healx may have an approved therapy on the market as early as 2025, Guilliams said.(Updates with CEO quote in fifth paragraph)To contact the reporter on this story: Amy Thomson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Jennifer Ryan, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Johnson and Johnson (NYSE:JNJ) stock was recently upgraded to Outperform by a Bernstein analyst as "historically cheap." JNJ stock is off its 52-week highs almost 12%. It seems the market has basically discounted in its present legal issues and potential liabilities.Source: Sundry Photography / Shutterstock.com Investors should consider the company's underlying strengths both as a pharmaceutical company and a consumer. The pharma segment accounts for half of its revenues and profits. JNJ Stock Benefits From Powerful Free Cash FlowIn JNJ's latest 10-Q report, it reported almost $9.5 billion in operating cash flow for the six months to June 30. After deducting $1.49 billion in capital expenditures, JNJ's free cash flow (FCF) was $8 billion. That works out to $16 billion annually.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Beverage Stocks to Buy Now Johnson and Johnson's dividends cost only $4.9 billion in the first half, or $9.8 billion annually. That is just 61% of its annual $16 billion FCF. In fact, JNJ spent $4.7 billion on share buybacks or 59% of its FCF.That means JNJ's return of capital payments to shareholders are greater than its FCF. These represent $9.6 billion in total payments in the first half. Annualized that works out to $19.2 billion, or 5.5% of the Johnson and Johnson stock market value. JNJ Can Afford the Legal Fines and Excess Return of CapitalJohnson and Johnson can afford to both pay out more than its FCF to shareholders in dividends and share buybacks as well as any litigation settlements. It has at least four ways to do this.For example, it can sell or dispose of assets to raise cash, draw down its cash and securities balances, increase debt, or use share issuances (from employee options). Often JNJ will use a mixture of all of these, especially if it also decides to purchase smaller companies at the same time.In case it has to pay out legal settlements or penalties, JNJ may have insurance and certain reserves to protect itself. Analysts assume that the company will use a mixture of all these methods to also pay the legal liabilities that may eventually arise.Bernstein's analyst report indicates that JNJ's maximum settlement exposure is no more than $50 billion. Even if it had to pay this amount all at once, which is highly unlikely, Johnson and Johnson could afford to take on debt to pay this amount.For example, JNJ has $155 billion in assets, including $15 billion in cash and securities, and only $27 billion in long-term debt. This leaves ample room, including with its free cash flow, to pay a worst-case scenario of $50 billion. JNJ Stock Is Undervalued Compared to PeersJNJ's market value of $346 billion. It has a FCF yield of 4.6% ($16 billion divided by its $346 billion market value) and a total yield of 5.5% (dividends and buybacks divided by the market value).JNJ's FCF yield is higher than peers its size. For example, Pfizer (NYSE:PFE) produced operating cash flow of $4.3 billion in the six months to June 30. Since capex was $939 million its FCF was $3.37 billion or annualized $6.7 billion. Since PFE stock's market value is $200 billion, its FCF yield is just 3.37%.The same is true with Merck (NYSE:MRK). MRK produced $3.04 billion in FCF in the first half of 2019 and its market value is $216 billion. So that gives it a FCF yield of just 2.8%.JNJ's stock market value is larger than both PFE and MRK. Its FCF yield is also higher. This means the Johnson and Johnson stock price is very undervalued compared to its large peers. JNJ Has Credibility From Its Tylenol Decision Decades AgoJNJ still holds a lot of "street credibility." This is due to JNJ's 1983 decision to recall all Tylenol bottles when one was criminally tampered with. In the March-April 1994 issue of Harvard Business Review, Lynne Payne, a Harvard Business school professor, wrote about Johnson and Johnson's famous Tylenol recall decision, in her article,"Managing for Organizational Integrity." She points out that integrity was not just with the CEO's integrity, but all JNJ's employees:"For example, Johnson & Johnson's handling of the Tylenol crisis is sometimes attributed to the singular personality of then-CEO James Burke. However, the decision to do a nationwide recall of Tylenol capsules in order to avoid further loss of life from product tampering was in reality not one decision but thousands of decisions made by individuals at all levels of the organization. The "Tylenol decision," then, is best understood not as an isolated incident, the achievement of a lone individual, but as the reflection of an organization's culture. Without a shared set of values and guiding principles deeply ingrained throughout the organization, it is doubtful that Johnson & Johnson's response would have been as rapid, cohesive, and ethically sound."I believe that Johnson and Johnson company still benefits from this aura of integrity, at least on Wall Street. JNJ stock has not completely fallen out of bed despite its huge legal challenges. In other words, it's not just the financial strength of the company that upholds Johnson and Johnson stock. It's also JNJ's reputation for integrity. Stay Tuned for JNJ Stock Reaching Intrinsic ValueJohnson and Johnson will announce its third-quarter results on Oct. 15. Watch to see what JNJ believes its ultimate settlement exposure may be. Also, look at whether it is continuing to spend more on dividends and share repurchases than its free cash flow.That will be a good sign showing what management believes about the Johnson and Johnson stock price. A dividend increase and further buybacks will show that JNJ's stock price is still selling well below its intrinsic value.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks, which includes both dividend and buyback yields. In addition, subscribers a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Johnson and Johnson Stock Still Significantly Undervalued appeared first on InvestorPlace.
South San Francisco-based Allogene is taking a different approach to cell therapy for cancer by producing so-called allogenic cell therapies.
Economists Say Spend $2 Trillion to Combat Next Recession In another sign that economics as the study of scarcity and choice has completely lost its way, economists, whose title suggests that they study scarcity and choice and the art of economizing resources, are in general agreement, according to Reuters, that in order to save the […]The post Market Morning: Economists Say Spend More, Viagra For Leukemia, Aerospace Mergers appeared first on Market Exclusive.
A biotech company that started in Israel 21 months ago and moved to San Francisco this year wants to raise $70 million through an initial public offering to tackle one of the hottest areas of drug development. Fourteen-employee 89bio Inc. stated in a Securities and Exchange Commission filing Friday that it plans to use the cash to complete mid-stage clinical trials of its signature drug against the fatty liver disease known as nonalcoholic steatohepatitis, or NASH, and severe hypertriglyceridemia as well as for drug manufacturing. NASH has attracted deep-pocketed drug companies such as Foster City-based Gilead Sciences Inc. (NASDAQ: GILD), South San Francisco's NGM Biopharmaceuticals Inc. (NASDAQ: NGM), Pfizer Inc. (NYSE: PFE) and Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) and an army of smaller companies, such as South San Francisco's Akero Therapeutics Inc. (NASDAQ: AKRO).
FDA approves Novartis' (NVS) Beovu. J&J (JNJ) files sBLA for Stelara. Pfizer (PFE), Novo Nordisk (NVO) and Glaxo (GSK) announce collaboration deals.
With more and more trading platforms and the growing allure of low-to-no-fee brokerages, new traders are confronted with a deluge of options when it comes to trading and investing. Cash flow is commonly broken into three separate segments: operating cash flow, investing cash flow and financing cash flow.
J&J's (JNJ) cancer drugs are expected to contribute significantly to third-quarter 2019 earnings. Generic/biosimilar headwinds are expected to hurt Pharma unit's sales.
Goldman Sachs lowers price target for Clovis' (CLVS) shares taking into account the risk of lower future revenues due to rising competition in the PARP inhibitor segment.
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at […]