|Bid||0.00 x 4000|
|Ask||0.00 x 1100|
|Day's Range||92.78 - 94.31|
|52 Week Range||66.66 - 97.98|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
After weeks of build-up, drug industry watchers began to have real concerns about President Donald Trump’s big drug price speech on Friday. Many of the changes that were mentioned on Friday had been raised before by his administration, including drug price negotiation for certain government programs. Other proposals seemed unlikely to significantly bring down drug prices in the near-term, which Trump described as a goal of the plan.
Singh's more conservative on Gilead Sciences (GILD), writing that its HIV drug Biktarvy is seeing a good launch, but not as strong Genvoya, and Regeneron Pharmaceuticals (REGN), where he sees a strong second half in terms of regulatory approvals as balanced by "burgeoning operating expenses and negative sentiment." He has Perform ratings on both stocks. Moving down the line, he's more bullish on mid- and small-cap biotechs, which are not only benefitting from M&A in the sector, but should also "continue to positively diverge from large-cap biotech" in first-quarter earnings results as well.
Tom Vandeventer, portfolio manager of the Tocqueville Opportunity Fund (TOPPX), which is up nearly 10% so far this year, thinks that trend will continue. Tech and biotech are two major themes running through the fund’s portfolio, which Vandeventer told Barron’s is indicative of the fact that “there are a lot of disruptive technologies that are coming to fruition” in both sectors. The fund focuses more on small- and mid-cap stocks, meaning that M&A is a theme throughout his holdings, in both tech and biotech, bolstered by industry trends (the move to the cloud, the rise of gene-editing therapies, respectively), as well the fact that larger players are flush with cash—thanks to lower corporate taxes and repatriated capital—to facilitate acquisitions.
The first quarter is traditionally not a strong one for biotech earnings for a host of reasons—including fewer shipping days, inventory reductions after year-end price increases, weather disruptions, and annual copay resets in many health insurance plans. The SPDR S&P Biotech ETF (XBI) is up 2.8% to $91.38 today, and the iShares Nasdaq Biotechnology ETF (IBB) is climbing 2.2% to $107.55.
Just as Barron's predicted, this year has seen smaller biotech stocks outperform their larger peers, with the SPDR S&P Biotech ETF (XBI) up 15% year-to-date, while the iShares Nasdaq Biotechnology ETF (IBB) has fallen 1.2%. Now, as we gear up for first-quarter earnings in the sector, SunTrust Robinson Humphrey sees a number of potentially better-than-expected results ahead. The team, led by analyst Yatin Suneja, writes that investors appear "poised to reward companies with good financial performance." He believes that positive pricing trends, along with tailwinds from foreign exchange and moderate expectations on the Street can drive outperformance, even if seasonality is a headwind. Suneja thinks that among big biotechs, Alexion Pharmaceuticals (ALXN), BioMarin Pharmaceuticals (BMRN), Celgene (CELG), Exelixis (EXEL), Regeneron Pharmaceuticals (REGN), and Sarepta Therapeutics (SRPT) have the best chance of reporting better-than-expected sales in the quarter, while he sees a more in-line quarters for Biogen (BIIB) and Incyte (INCY).
On April 11, 2018, Alexion Pharmaceuticals (ALXN) announced that it has made a public cash offer to Wilson Therapeutics’ shareholders to acquire all of the company’s outstanding shares. Wilson Therapeutics is a Sweden-based biopharmaceuticals firm. The acquisition will advance Alexion’s long-term growth strategy, which consists of advancing and rebuilding its rare disease pipeline. Alexion aims to accelerate the diversification of its product portfolio.
On April 9, 2018, Novartis AG (NVS) announced that it had entered into an agreement to acquire AveXis (AVXS), a clinical-stage gene therapy company, for ~$8.7 billion.
Biotechnology stocks and the exchange-traded funds that hold them have tried to rally in recent months, only to disappoint investors over and over again. "While nearly every index, ETF and stock finished noticeably below their respective highs, some still notched impressive net moves on Monday," wrote Instinet technical analyst Frank Cappelleri. "The [iShares Nasdaq Biotechnology ETF] was the leader among the industry ETFs we track, missing a 2% gain." Gene therapy company AveXis (AVXS) helped lead the way Monday, popping more than 80% to above $200 on news that drug juggernaut Novartis (NVS) planned to acquire it for $8.7 billion in cash or $218 per share.
It's a new quarter, but the same old trends are at play in terms of biotech fund flows, writes Raymond James's Laura Chico. For the week ending April 4, biotech funds saw $240 million in outflows, a 0.4% ...
Mergers have never been easy but these days companies have a new set of worries to add to the list. National security has become a potential hurdle after the potential merger of Broadcom (AVGO) and Qualcomm ...
Key market index funds extended their gains Monday as Apple and Boeing led the Dow Jones industrial average.
Array BioPharma (ARRY) is a biopharmaceutical company focused on discovery, development, and commercialization of small molecule drugs for the treatment of patients suffering from cancer. Of the nine analysts covering Array BioPharma (ARRY) in January 2018, eight have given the stock a “buy” or higher rating, and one has given it a “hold.” The mean rating for the stock is 1.78 with a target price of $16.22. Array BioPharma makes up 1.9% of the SPDR S&P Biotech ETF’s (XBI) total portfolio holdings.
The drug candidates in Radius Health’s (RDUS) pipeline include an investigational abaloparatide transdermal patch for possible use in treating women with postmenopausal osteoporosis. Another candidate is the investigational drug elacestrant (or RAD1901), which is a selective estrogen receptor degrader for the treatment of hormone receptor-positive breast cancer and the treatment of vasometer symptoms in postmenopausal women. The pipeline also includes the investigational drug RAD140, a nonsteroidal selective androgen receptor modulator, for its potential use in treating hormone receptor-positive breast cancer.
In 3Q17, Bioverativ’s (BIVV) drug Alprolix generated revenue of $88.5 million, which reflected a rise of ~4% on a year-over-year (or YoY) basis. In 3Q17, Alprolix contributed ~32.2% of Bioverativ’s net product sales. Alprolix reported revenue of $264.2 million in the first nine months of 2017 (which ended in September 2017) compared to its revenue of $240.5 million in the first nine months of 2016.