39.60 +0.23 (0.58%)
After hours: 7:12PM EDT
|Bid||39.37 x 3000|
|Ask||39.58 x 800|
|Day's Range||39.16 - 39.64|
|52 Week Range||34.37 - 46.47|
|Beta (3Y Monthly)||0.59|
|PE Ratio (TTM)||21.10|
|Earnings Date||Apr 30, 2019|
|Forward Dividend & Yield||1.44 (3.39%)|
|1y Target Est||44.36|
While Pfizer's (PFE) key drugs like Ibrance and Xeljanz are likely to drive Q1 sales, genericization of key drugs and weak sales in the EH segment will hurt.
The collapse of healthcare stocks, especially drug companies, may have finally abated. Merck (NYSE:MRK) has fallen 12% from its April 3 high. But the MRK freefall seems to have finally leveled off.Source: Shutterstock The instinctive reaction would be to buy the dip. Merck's five-year gain is now half that of the average S&P 500 stock, but it's still up 24% in the last year. And what initially sent MRK stock down was fear of politicians, not changes at the business.But Merck stock is still not cheap. Its trailing P/E ratio is 32, and the dividend of 55 cents per share still yields just 2.65% -- lower than many other dividend stocks. That dividend was just hiked in December, and thus isn't due to rise again for 8 more months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Red-Hot E-Commerce Stocks to Consider Merck is due to report first-quarter earnings on April 30, with $1.05 per share expected on revenue of $10.36 billion. That's a big jump from last year's earnings pace, albeit on less revenue. But if MRK stock keeps growing like this, it would justify both a big dividend hike and an increase in its stock buyback, now at $10 billion on a market cap of $192 billion. The Keytruda MiracleThere are also reasons to find the earnings momentum sustainable.Keytruda, a cancer drug best known for having kept former President Jimmy Carter alive a few years ago, continues to score big with regulators. It's now a first-line drug against advanced kidney cancer, in conjunction with Inlyta from Pfizer (NYSE:PFE).Keytruda is one of three so-called PD-1 inhibitors on the market, alongside Opdivo from Bristol-Myers Squibb (NYSE:BMY) and Libtayo from Regeneron (NASDAQ:REGN). These are monoclonal antibodies that keep cells from attacking one another. Turning off this chemical "off switch" boosts the immune system response to cancer cells. While Opdivo is heavily advertised, it is Keytruda that has been scoring the bigger wins in late-stage studies. The most recent one is Keynote-426, which gave 861 patients two years of the drug, which can cost over $100,000 per year. Keytruda was worth over $7 billion to Merck last year. The Price BacklashIt's Keytruda's price, which doesn't apply in countries that bargain directly for drugs, that caused the healthcare sector's fall from grace this month.That pushback takes many forms, from cost-effectiveness studies to state and national legislation. But the industry's lobbyists still stand strong in Republican Washington.This includes Merck CEO Ken Frazier, who recently agreed to stay on past his normal retirement age for a $20.9 million pay package.Frazier is charged with defending the industry against attacks on its profits and diversifying the company's $42 billion in sales beyond Keytruda, which represents 17% of Merck's total revenue.Merck recently won approval for Mavenclad, a potential blockbuster drug for multiple sclerosis, and it made 60 acquisitions during 2018. These include expansion in animal pharmaceuticals and immunotherapy. Its current late-stage drug pipeline has been valued at $13 billion. The Bottom LineMerck is due to bounce back at least 10%, as the recent downdraft in health care stocks fades from memory, just as the December fall of tech stocks faded.Of 18 analysts now following the stock, 13 now have it on their buy lists and confidence is up over three months ago. * 10 Stocks to Sell Before They Give Back 2019 Gains A beat on the quarterly earnings estimate should be the catalyst to take Merck to new highs, and its pipeline should keep it profitable no matter what Congress decides to do. This is a dip both speculators and investors will enjoy buying.Dana Blankenhorn http://www.danablankenhorn.com is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family https://www.amazon.com/Reluctant-Detective-Finds-Her-Family-ebook/dp/B07FSRDR4Y/, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post Why Investors Should Buy the Dip in MRK Stock appeared first on InvestorPlace.
What to Expect from Merck’s Q1 2019 ResultsStock price movements On April 22, Merck (MRK) issued a press release announcing FDA approval for the combination of Keytruda with Pfizer’s (PFE) Inlyta in the first-line advanced RCC (renal cell
Five years ago this week, AstraZeneca boss Pascal Soriot was embarking on the fight of his life. The urbane Frenchman, who learned how to hold his own growing up in the Parisian banlieues, had to marshal his forces to see off an attempt by Pfizer, the US pharma group, to take over the company he had headed for just 18 months. Much of his defence against this transatlantic predator rested on a personal appeal to investors and AstraZeneca’s board to trust that he could breathe new life into its faltering R&D operation, as it faced one of the more vertiginous “patent cliffs” in the industry.
While gurus hold positions in these companies, the share price and returns continue to fall. The share price of $63 is 20.93% below its 52-week high and 4.36% above its 52-week low. The return on equity of 25.50% and return on assets of 8.29% are outperforming 79% of companies in the Drug Manufacturers - Major industry.
Two things are hurting the near-term prospects of Bristol-Myers (NYSE:BMY). First, drug plan companies like UnitedHealth Group (NYSE:UNH) issued a quarterly revenue warning, scaring investors from the drug sector. Second, Bristol-Myers is about to acquire Celgene (NASDAQ:CELG). And as the firm doing the acquiring, markets typically get cautious on short-term risks related to the acquisition.Source: A 4 via Flickr Are these two headwinds enough of a reason to justify BMY stock trading this low? Drug Prices Under PressureWashington is still looking for deterrents to a drug company's ability to raise prices. Any politically driven rules that limit a company's effectiveness to adjust prices will hurt not just Bristol-Myers but most companies in the pharmaceutical space. Companies often need to make adjustments to increase profits. It may then use those profits to pay for research and development, make acquisitions or return profits to shareholders. If this cycle is disrupted, investors will be less inclined to invest in the sector.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt 15 times earnings, BMY stock is relatively inexpensive compared to its peers. Merck & Co. (NYSE:MRK) fell by around 11% but its shares still trade at 31 times. Pfizer Inc. (NYSE:PFE), which is widely held by investors, trades at 23 times. Markets discounted Bristol-Myers stock because the firm's inability to adjust prices higher will limit the options it has to help pay down the Celgene acquisition. Quarterly Earnings Ahead for BMY StockBMY will report its quarterly results for the quarter ended March 2019 on April 25. First-quarter 2019 earnings are expected to come in at $1.09, up from 94 cents last year. According to Tipranks, analysts are still bullish on BMY stock and have an average price target that is around 33% higher than its $45.52 recent closing price. * 10 High-Yielding Dividend Stocks That Won't Wilt In the upcoming quarter, the firm may shed some light on the progress of Opdivo. Currently, Opdivo has indications for nine different tumors. Management forecasts growth opportunities for Opdivo in the U.S. and outside the U.S., due to its treatment option for two of the tumors. Specifically, the treatment is for adjuvant melanoma and first-line renal cell. BMY launched these indications early last year. Opdivo plus Yervoy will play an important role in first-line renal, so investors should expect a good opportunity for the drug.Regarding Opdivo for cancer treatment, the prospects are more challenging. The company is facing a decline in eligible patients, dropping to the 35%-40% range. Fortunately, Bristol-Myers has a 30% market share. Merits of Celgene Deal for Bristol-Myers ExplainedAt face value, the Celgene buyout will come at a hefty price of $74 billion. Fundamentally though, the two firms coming together will benefit shareholders as a stronger firm. The timing for the deal is good because BMY is strong right now. The strong cash flow will facilitate the management of the debt level. In the long-term, it gets a complementary product line that strengthens its prospects.Revlimid's IP, in particular, has strong prospects ahead. Fortunately, Bristol-Myers forecast a downside and minimal outlook for Revlimid during the negotiation phase. And by preparing for weaker cash flow from it, management may plan out what it needs to do to make the most from the product.Fedratinib, luspatercept and ozanimod have strong commercial viability whose product launch will lead to strong cash flow growth from Celgene. In short, Celgene's specializing in making drugs to treat myeloma will complement BMY's drugs that treat inflammatory diseases. Further, cell therapies will advance BMY in ways that are not possible without the acquisition. ValuationAnalysts are optimistic that BMY stock will increase by over 30% in the next year. When the stock's P/E is below that of its peers, negative emotions are likely to blame for the stock's underperformance. In the near-term, the stock may head even lower as selling pressure accelerates. Still, value investing is all about patience, so starting a position at these levels may pay off over time. Investors who find the stock appealing at these levels will need to hold the stock for at least 2-3 years. By then, Celgene's new product launches will be accretive to Bristol-Myers' results.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post Why Is Bristol-Myers Near 52-Week Lows? appeared first on InvestorPlace.
While Amgen's (AMGN) growth drugs like Prolia & Xgeva may do well, biosimilar competition and slowdown in sales of mature products are likely to put pressure on sales growth.
Pfizer (PFE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Johnson & Johnson or Pfizer: Which Is the Best Pick in April?(Continued from Prior Part)Legacy immunology drugs In the first quarter, Johnson & Johnson (JNJ) reported Remicade sales worth $1.10 billion, a YoY (year-over-year) fall of 20.6% on
Johnson & Johnson or Pfizer: Which Is the Best Pick in April?(Continued from Prior Part)Immunology revenue performance In the first quarter, Johnson & Johnson (JNJ) reported immunology sales of $3.25 billion, a YoY (year-over-year) rise of
During Exact Sciences' (EXAS) first-quarter 2019 conference call, investor focus will be on the growth rate in the company's non-invasive screening test volume for colorectal cancer, Cologuard.
Lilly and partner Pfizer Inc. (NYSE: PFE) said in a Thursday news release the Phase 3 study intended to evaluate tanezumab in 2.5mg and 5mg doses for its long-term safety and 16-week efficacy relative to nonsteroidal anti-inflammatory drugs, or NSAIDs, in patients with moderate-to-severe osteoarthritis of the hip or knee produced mixed results. Tanezumab is an investigational monoclonal antibody that selectively targets, binds and inhibits nerve growth factor, or NGF, which increases as a result of injury, inflammation or in chronic pain states.
What to Expect from Pfizer’s Q1 2019 Results(Continued from Prior Part)Financial performance in the first quarterWall Street analysts expect Pfizer’s (PFE) revenues to be $12.99 billion, $13.37 billion, $13.07 billion, and $13.63 billion,
Johnson & Johnson or Pfizer: Which Is the Best Pick in April?(Continued from Prior Part)EPS guidance In its first-quarter earnings press release, Johnson & Johnson (JNJ) raised the guidance for its adjusted diluted operational EPS from its
U.S. stock futures are trading lower as traders return from the Easter holiday weekend.Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.39%, and S&P 500 futures are lower by 0.40%. Nasdaq-100 futures have shed 0.57%.In the options pits on Thursday, call volume led the charge, and overall volume levels ended slightly above average. Specifically, about 20.5 million calls and 17.9 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, those calls didn't translate over to the CBOE, where the single-session equity put/call volume ratio ramped to 0.62 -- a one-week high. Meanwhile, the 10-day moving average held steady at 0.60.Here are three popular stocks landing atop the most-active options list: Pfizer (NYSE:PFE), Canopy Growth Corp (NYSE:CGC) and Microsoft (NASDAQ:MSFT).Let's take a closer look: Pfizer (PFE)Weakness in the healthcare sector spilled into biopharma. Pfizer fell 6.4% over the final three trading sessions of the week to close at a new nine-month low. The groundswell in volume during Friday's swoon revealed panic was in the air and could help to spell a short-term low in the now deeply oversold stock.But with PFE submerged deeply beneath all major moving averages, expect any relief rally to be short-lived. * 10 Best Stocks to Buy and Hold Forever The next earnings release is slated for April 30.On the options trading front, puts ruled the roost. Activity jumped to 417% of the average daily volume, with 129,626 total contracts traded. Puts edged out calls to claim 53% of the day's take.The increased demand drove implied volatility higher on the day to 26%, placing it at the 60th percentile of its one-year range. Premiums are officially juiced and no price in daily moves of 65 cents or 1.7%. Canopy Growth Corp (CGC)Canopy Growth Corp shares saw heightened volatility on Thursday after the company reported a deal giving it the right to buy Acreage Holdings (OTCMKTS:ACRGF). Acreage Holdings operates in the U.S., and its purchase will allow CGC to expand into the country if the federal government ever decides to legalize cannabis.The initial surge on the news carried CGC stock up as much as 11.4%. However, by day's end, profit-taking pared the gain to 3.9%. For the past two months, Canopy Growth Corp shares have been locked in a trading range. Thursday's jump had the potential to finally break the stock out, but the substantial amount of selling that came in near resistance rejected the attempt. Until we see a proper breach of the ceiling at $47.50, CGC remains a tricky trade.On the options trading front, traders gobbled up call options. Total activity grew to 315% of the average daily volume, with 133,768 contracts traded; 71% of the trading came from call options alone.Implied volatility popped on the day to 56%, but remains near the lower end of its one-year range. Microsoft (MSFT)The technology sector has been a standout in recent months, and Microsoft is arguably the poster child for its strength. MSFT stock surged to a new record high on Thursday, bringing its year-to-date gains to 21.6%. The profits come as investors gear up for the software sultans next earnings release on April 24.The catalyst for Thursday's euphoria was Microsoft announcing its purchase of Express Logic.On the options trading front, calls outpaced puts by a wide margin. Activity climbed to 224% of the average daily volume, with 285,449 total contracts traded; 67% of the trading came from call options alone.Implied volatility remains at the low end of its range, which suggests investors have little fear heading into earnings. At 24%, implied volatility sits at the 20th percentile of its one-year range. Premiums are baking in daily moves of $1.85 or 1.5%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post Monday's Vital Data: Pfizer, Canopy Growth Corp and Microsoft appeared first on InvestorPlace.
What to Expect from Pfizer’s Q1 2019 ResultsShare price movementsPfizer’s earnings results for the first quarter of 2019 are expected to be released on April 30. On April 18, Pfizer (PFE) and Eli Lilly and Company (LLY) issued a press release
The U.S. Food and Drug Administration has approved Merck & Co Inc's cancer therapy, Keytruda, as part of a combination therapy for previously untreated patients with the most common type of kidney cancer, the company said on Monday. The drug was approved in combination with Pfizer Inc's Inlyta to treat advanced renal cell carcinoma. The approval, which comes two months ahead of expectations, allows this combination therapy to get an early launch ahead of other rival products, Cowen analyst Yaron Werber said, after the company received FDA approval on Friday.
When Pfizer (NYSE:PFE) won its first approval for cancer drug Ibrance back in February 2015, as a treatment for ER+/HER2- breast cancer, investors were cautiously optimistic. PFE stock holders knew it worked well enough for a narrow subset of breast cancer patients, but expectations for the then-nascent therapy were clearly high.Source: Maciek Lulko (Modified)The drug hasn't disappointed. Since early 2015, Ibrance has been approved for three more indications, with the most recent one taking shape just this month. As it turns out, the treatment has proven effective as a therapy for some of the rare cases where men develop breast cancer.It's a testament to the drug's incredible versatility and efficacy.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd yet, while Ibrance is still in trials looking for even more approved uses, the company's future hardly hinges on what's quickly turning into a blockbuster drug. The market is largely overlooking much of Pfizer's pipeline. Catalysts AheadBank of America Merrill Lynch analyst Jason Gerberry made the point of making the call three weeks ago, upping the brokerage firm's price target on PFE stock from $45 to $48 on upcoming catalysts related to the development of two orphan drugs.Orphan drugs, in short, take aim at underserved areas of the pharmaceutical market. In many cases there are so few cases of a particular illness that no pharmaceutical company bothers developing an option, so when one does, the FDA facilitates an easier path to approval; something is better than nothing.One such drug in Pfizer's pipeline is Vyndaqel.It's not a new drug. In fact, it was first approved back in 2011. Its potential use as a treatment for cardiomyopathy, however, is in the works, and is expected to launch later this year to a receptive caregiver environment.All told, BofA-ML's Gerberry sees peak sales of $2 billion for Vyndaqel.Gerberry also notes that a Pfizer gene therapy candidate -- PF-06939926 for Duchenne muscular dystrophy -- is closer to the endzone than many current and would-be owners of PFE stock may realize. Though in Phase 1 testing right now, should the R&D update slated for the middle of the year go as well as expected, the drugmaker may be able to leap straight to Phase 3 trials and catch up with a similar development from DMD rival Sarepta Therapeutics (NASDAQ:SRPT). * 7 High-Risk Stocks With Big Potential Rewards Again, it's not only another catalyst that could draw a bullish crowd, but it's also a development that could put real revenue growth on the table real soon. The Duchenne muscular dystrophy market could be worth more than $4 billion by 2023.Outside of Gerberry's discussion, Pfizer's Vizimpro was approved earlier this month in Europe as a first-line treatment of locally advanced or metastatic non-small cell lung cancer.Pfizer's still got its R&D, or at least its therapy-acquiring, chops. Heavy HittersThough PF-06939926 and Vyndaqel should prove to be solid bolt-on revenue and profit centers, there's still little doubt that Ibrance will be the company's heavy hitter -- and growth driver -- for the foreseeable future.As of the company's most recent quarterly report, 12-month revenue for the wonder drug reached $4.1 billion, up 32% from the trailing-12-month figure reported a year earlier. New approvals and expanded usage for previously approved indications both helped.The drug, though, has still only scratched the surface. Some analysts are calling for peak revenue of around $8 billion before Ibrance runs out of room to grow and is crimped by rival drugs.Again, that potential is a testament to the drug's flexibility.Ibrance isn't the only heavy-hitter still in growth mode in Pfizer's lineup though. While Enbrel (sold by Pfizer in Europe), Sutent and Celebrex may all be major names with declining revenue, sales of fibromyalgia treatment Lyrica appear to have stabilized around an annual pace of $4.6 billion. Ditto for pneumococcal bacteria treatment Prevnar, which has driven more than $5 billion in sales over the course of the past four reported quarters.In the meantime, Pfizer has started to shine in an area that had quietly gnawed at PFE stock owners… biosimilars. The company has sold $642 million worth of ulcerative colitis, arthritis and plaque psoriasis drug Inflectra/Remsima over the past year, up 50% year-over-year, and suggesting it doesn't have to yield to the pharmaceutical industry's biosimilar powerhouses like Novartis (NYSE:NVS) and Amgen (NASDAQ:AMGN). * 7 Stocks to Buy for Spring Season Growth Pfizer's got five biosimilar drugs in the works, positioning it for deeper penetration of an admittedly-crowded market forecasted to be worth more than a stunning $60 billion by 2024. Bottom Line for PFE StockPFE stock is down 15% from its November peak, never really rebounding with the rest of the market beginning in January. Shares are down 10% just since early April, as the future of U.S. health care has become blurred by political rhetoric. Indeed, Pfizer stock hasn't made net progress since the middle of last year. Clearly there's something wrong with the company.Or, maybe there isn't.Though the headlines and sentiment seem dire, that pessimism is largely rooted in investors' collective view that sees a glass as half-empty rather than half-full. Pfizer's got a quietly potent pipeline, though, with a mix of already-approved and new drugs closer to wrapping up clinical trials than many investors might realize.That may not be enough to stave off headline-driven headwinds in the short run. But, there's a reason a streak of downgrades late last year has been countered this year with a couple of upgrades to an "Outperform'" rating.One of those upgrades came from Credit Suisse, with analyst Vamil Divan noting that patent woes working against aforementioned therapies like Enbrel and Celebrex are starting to abate at the same time new therapies are reaching their full stride.It's just a story not many investors are paying attention to right now.As of this writing, James Brumley did not hold a position in any of the aforementioned companies. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Pfizer Stock Suffers From an Underappreciated Drugs Pipeline appeared first on InvestorPlace.
Learn how the marriage of science and technology is changing the world of medicine and creating some of the largest multinational biotechnology corporations.