93.68 0.00 (0.00%)
After hours: 4:09PM EDT
|Bid||93.69 x 800|
|Ask||93.70 x 1300|
|Day's Range||93.45 - 94.38|
|52 Week Range||72.66 - 95.00|
|Beta (3Y Monthly)||0.55|
|PE Ratio (TTM)||19.25|
|Forward Dividend & Yield||2.83 (3.01%)|
|1y Target Est||99.50|
During an earnings call Tuesday morning, executives at Biogen Inc. brushed off investor concerns about competitors closing in on its key drugs.
(Bloomberg) -- Biogen Inc. raised its financial forecast for the year after topping second-quarter sales and earnings estimates, but the good news masks a worrying longer-term outlook for the biotechnology giant.Part of the reason why the company was able to boost guidance Tuesday was due to lower spending on research. Biogen stopped a late-stage trial of an Alzheimer’s drug in March, a failure that has sent its shares into a monthslong slump. That drug was the most watched of its experimental therapies.In the pharmaceutical industry, spending on R&D is an expensive necessity. While a drug’s failure may temporarily improve the bottom line thanks to lower costs, it’s disastrous for long-term growth. In the past 12 months, Biogen has lost more than $30 billion of market value, making it among the lowest-valued companies in biopharma.The shares rose 5.3% to $244.86 at 9:49 a.m. in New York.The company said it expects revenue this year to be between $14 billion and $14.2 billion, up from a January forecast of $13.6 billion to $13.8 billion. Its adjusted earnings-per-share for the quarter were $9.15, while analysts had anticipated $7.53.It now stands to be seen which of the other treatments in Biogen’s research pipeline might replace sales from its aging multiple sclerosis franchise, which remains the backbone of the Cambridge, Massachusetts-based company’s sales.Biogen Chief Executive Officer Michel Vounatsos said on a call with analysts that the company was “refining” its R&D strategy and would look to make some changes to its pipeline of drugs. Biogen now sees ophthalmology as a core franchise, and sees immunology as an emerging research area. It will also increase its focus on neuromuscular disorders.For now, the company’s key growth driver is Spinraza, a therapy that treats the deadly childhood disease spinal muscular atrophy. While Spinraza is highly effective, a recently approved competitor from Novartis AG appears to cure the disease.Biogen’s drug will serve as either a case study or cautionary tale of how legacy drugs will fare in the age of genetic cures for dire diseases. Spinraza’s second-quarter sales were $488 million, down from a quarter prior, and below the $530 million projected by analysts. Biogen said that Novartis’s gene therapy, which was approved in May, had yet to have a meaningful impact on its drug’s sales.“Results were overall good and we like the general execution,” Jefferies analyst Michael Yee said in a note to clients. “However, investors aren’t looking to invest in Biogen for quarters and buybacks -- but for an improving financial outlook and better visibility on 1-5 year growth trajectory.”(Updates with share price in fourth paragraph.)\--With assistance from Karen Lin.To contact the reporter on this story: Rebecca Spalding in Boston at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Timothy Annett, Mark SchoifetFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Abbott, Netflix, Philip Morris, United Technologies and Novartis
These are the clinical trial readouts, FDA decisions, and blockbuster-drug launches that will set the tone for the entire industry.
Shares of the Swiss drugmaker were rising on a strong earnings report, but the company released limited information on the introduction of its new gene therapy Zolgensma.
J&J (JNJ) and Novartis (NVS) set the earnings season in motion for the pharma space. FDA approves Merck's (MRK) new combination antibacterial injection, Recarbrio.
Gilead Sciences Inc. has licensed three pre-clinical anti-viral programs from rival pharmaceutical giant Novartis AG , the companies announced Friday. Under the terms of the agreement, Gilead will get exclusive rights to develop and commercialize several small molecules that have the potential to treat human rhinovirus, influenza and herpes. Novartis will receive an upfront payment, the amount for which was not disclosed, and will be eligible to get an additional $291 million in potential milestone payments and royalties on annual net sales. Shares of both Gilead and Novartis were up slightly in premarket trade. Gilead's stock has gained 7.5% in the year to date through Thursday, while Novartis shares have gained 24.2%. The S&P 500 has gained 19.5%.
Jim Cramer has a number of investing rules and Rule No. 1 is always go for the easy money, not the hard money. Sometimes companies transition from easy-money stocks to hard-money stocks, Cramer explained, and being able to spot the difference is crucial. The easy money in pharma is Novartis AG so let's check out the charts and indicators.
Novartis stock flirted with a record high Thursday after the pharmaceutical company topped second-quarter earnings expectations and raised its 2019 guidance. Sales were narrowly above views.
Shares of Novartis rose Thursday after the company raised guidance, posted its latest financial results and said it had set aside $700 million to cover a settlement of a long-standing bribery case. The stock gained 4.
Novartis and eBay grabbed early leads Thursday as Netflix slammed the Nasdaq, even as an analyst upgrade lifted Dow Jones stock Apple toward a buy point.
Novartis boss Vas Narasimhan raised full-year targets on Thursday and announced that $700 million has been set aside in the hope of settling a decade-old lawsuit alleging that the Swiss drugmaker bribed U.S. doctors. Shares in the company rose about 5% to their highest since 2015, buoyed by second-quarter results, earnings guidance and the prospect of avoiding trial in a case that began in 2011 as a whistleblower lawsuit filed by a former employee. The lawsuit, since joined by the U.S. government, contends that Novartis paid millions of dollars in kickbacks to doctors so they would prescribe its products, including hypertension treatment Lotrel and diabetes drug Starlix.
(Bloomberg) -- Novartis AG raised its earnings outlook for the second time this year, driving the shares to an all-time high, and said the launch of its $2.1 million gene therapy is on track despite concerns over coverage barriers.Earnings excluding some items are expected to increase by a low double-digit to mid-teens percentage this year, the Basel, Switzerland-based company said. Novartis previously forecast a high single-digit percentage increase. The stock climbed as much as 3.4% in Zurich.The Swiss drugmaker also boosted its outlook for sales, new medicines and the Sandoz generics unit as Chief Executive Officer Vas Narasimhan work to reshape the company’s strategy begins to pay off. Narasimhan has spun off the Alcon eye-care division, ditched a stake in a consumer-health venture and unveiled a series of acquisitions after taking the helm early last year.Novartis at the same time has sought to sharpen its focus on cutting-edge drugs for cancer and rare illnesses, rolling out products like gene therapy Zolgensma aimed at a devastating muscle disease. Approved in the U.S. in May, the treatment has experienced “strong uptake,” Narasimhan told reporters.While analysts have flagged restrictions with U.S. health-care providers, the CEO said on a call that the launch is progressing in line with expectations. Novartis has contracts with insurers covering about 40% of patients with commercial health plans, Narasimhan said. The company said in May it expected to have 30% coverage in the first month after approval. He added that four state Medicaid plans have Zolgensma coverage in place.Nearly all patients who have sought the therapy and are eligible based on the drug’s label “have achieved an approval to be treated with the medicine after the appropriate steps are taken,” he said. “We’re continuing to advance our efforts, both getting medical policies in place and contracts in place with key payers.”Novartis shares have climbed about 24% this year, doubling the gain in the Bloomberg index that tracks European pharma companies.Novartis also has set aside about $700 million for a potential settlement in a U.S. case involving allegations it paid kickbacks to doctors who prescribed its drugs. A letter made public last month said the parties had made “significant progress” on reaching a deal.Psoriasis treatment Cosentyx, poised to become the company’s top seller this year after a 25% sales boost last quarter, is also in focus amid rising competition in the immunology field.Novartis already raised its profit forecast in April, saying it expected earnings excluding some items to increase by a high single-digit percentage. At the time it left its sales outlook unchanged. Sales are now expected to grow by a mid to high-single digit percentage.To contact the reporter on this story: James Paton in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Gene therapy developers might steal all of the headlines, but manufacturing is likely to be the more lucrative investing opportunity -- for both companies and investors.
Novartis (NVS) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Mallinckrodt (MNK) halts its phase IIB study, assessing the efficacy and safety of Acthar Gel as an investigational treatment for amyotrophic lateral sclerosis.