ABBV

Restasis Patent Protection Weighing on Shares of Allergan

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We have witnessed numerous examples over the years of biotech/pharma companies selling-off over fears of the length of patent protection on an essential product. The concern is well-founded–if the company relies on the product for a significant portion of sales, it may be challenging to replace, especially if the clinical pipeline is relatively bereft of viable next-generation products. We believe the recent sell-off in the shares of Allergan may now be wholly factoring in the loss of patent protection of one of its core assets in Restasis, and the equity may not be getting enough credit for its highly diversified revenue stream. By Alexander J. Poulos and Kris Rosemann Overview Allergan (AGN) in its current configuration is an amalgamation of … Read more

Upadacitinib Posts Impressive Data for AbbVie

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Image Source: AbbVie In the pharmaceutical realm, the productivity of the clinical pipeline is essential to replace the loss of revenue due to an expiration of the patent life of a product. AbbVie is facing the monumental task of having to diversify away from the top-selling pharmaceutical product in the world with little in the way of assurances the transition will be a success. We are pleased with the recent data release on Upadacitinib as we view the molecule as AbbVie’s top R&D product. By Alexander J. Poulos Upadacitinib in Rheumatoid Arthritis AbbVie (ABBV) believes it can successfully transition its portfolio from top-selling product Humira over to its next-generation treatment. AbbVie’s Upadacitinib belongs to the novel class of JAK-1 inhibitors, … Read more

Gilead Sciences Finally Takes Out A Promising Biotech

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Image Source: Gilead We were generally pleased to see that Gilead Sciences has decided to put its vast cash hoard to use by acquiring a cutting-edge technology that will further its clinical pipeline. Though it has become fashionable for many in the investment world to engage in M&A speculation as to whom Gilead might finally acquire, our research focus has instead been on the fundamental case, and the inevitable decline in HCV sales seems to have stabilized with the company reporting a beat-and-raise quarter this past July. Based on the improved outlook, the vastly improved technical backdrop, and improved technicals, we added the company to the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. We also think Gilead has largely … Read more

Shire Plc Continues To Underwhelm

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Image Shown: Shire’s equity has been under enormous pressure as of late. The share price of Shire Plc remains under pressure after posting decent quarterly results in early August. On the surface, the results themselves do not merit the equity hitting a new low, in our view. However, the market continues to grapple with the future direction of the company. Let’s examine the various components of Shire’s underlying business in this article. By Alexander J. Poulos Overview Shire PLC (SHPG) is a Dublin, Ireland based pharmaceutical company with an interesting past. Abbvie (ABBV) attempted to acquire Shire in order to enact a tax inversion which it subsequently abandoned. The failed merger emboldened Shire to become aggressive in the M&A front … Read more

Post-Earnings Update: AbbVie

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Image Source: Global Panorama AbbVie’s top-line performance has been relatively strong (unlike its big pharma peers), translating into a generous dividend–further enhancing the appeal of the equity. But is the company’s attractive fundamentals about to change? Let’s take a look at AbbVie’s fundamentals following its second-quarter report, released July 28. By Alexander J. Poulos Overview One of the main appeals of big-pharma companies such as AbbVie (ABBV) and peers Merck (MRK), Eli Lilly (LLY), and Pfizer (PFE) is their comparatively attractive dividend-yield potential as high margins generated from patent-protected compounds lead to internally generated cash flows above the funding needs of the business. As long as big pharma firms can continue to churn out a steady stream of new products … Read more

Our Bullish Thesis on Gilead Sciences

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We have become enamored with the potential of Gilead Sciences once again as the recent slide in the share price has in our view shaken out the speculative money that fueled the meteoric rise of the equity in 2015. As a value-based research publisher, we tend to focus on the sustainability of cash flow. In the case of Gilead, many believed that all hope had been lost as the continued decline in its Hepatitis C franchise would depress potential future gains. We are heartened by the recent earnings release and technical move, which have combined to give us comfort in adding Gilead Sciences to both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio. By Alexander J. Poulos Overview … Read more

A Review of Johnson and Johnson’s Pharmaceutical Division

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Image Source: J&J Let’s take a deep dive into Johnson and Johnson’s pharmaceutical division Janssen Pharmaceuticals. Janssen traditionally serves as an area of clinical innovation adding an element of growth to the more stable product categories such as consumer health. However, there may be a few cracks in the Janssen revenue stream that could make growth at J&J harder to come by over the next few years. By Alexander J. Poulos Overview The venerable Johnson and Johnson (JNJ) has earned the sterling reputation that the firm has built over the countless decades of steady performance. J&J is a bedrock of the health care sector sporting a sterling credit rating along with the ability to seemingly consistently churn out revenue and … Read more

The Biosimilar Revolution Remains Stymied

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Image Source: Express Scripts We remain intrigued by the potential of the upcoming wave of biosimilar versions of well-established specialty drugs. Even though we have been disappointed by recent FDA decisions, we feel it is inevitable biosimilars will enter the market. Let’s update readers on our thoughts. By Alexander J. Poulos Specialty Drug Spending The specialty drug space remains the fastest-growing portion of the overall drug spend in the US. In Medicare plans, however, the total dollars spent grew at a pace on par with inflation. The main reason for the subdued growth is the well-defined process of lower cost generic utilization. The average consumer is well-educated on the cost effectiveness of a generic alternative and shows little resistance to … Read more

An Overview on Roche Holdings

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Source: Roche The healthcare industry remains a global enterprise with world-class companies working towards new treatments. Let’s have a look at the prospects of Roche Holdings. By Alexander J. Poulos Overview Roche Holdings (RHHBY) is far from a household name in the US, yet it remains one of the top pharmaceutical companies in Europe. When reviewing the prospects of Roche, we could not help but draw the comparison to the old Abbott Labs (ABT) before splitting off Abbvie (ABBV). The holding company houses a world-class diagnostics division with one of its main consumer products being the Accu-Chek Blood Glucose Test Strips. The diagnostic group can be viewed from the perspective of a slow and steady earnings producer with incremental innovation … Read more

Coherus Biosciences Begins the Process of Bringing a Humira Biosimilar to Market

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Image Source: Drugs.com The duration and validity of patents that back the intellectual property of drugs in the pharma/biotech industry underpin the group’s revenue stream. Once patent protection is lost, however, revenue from products typically nosedives as multi-source products come to market, undercutting their original price. The patent estate, in essence, bestows monopoly-like pricing power to Big Pharma. Once lost though, it becomes tough to replace. Let’s provide a quick update on the breaking Coherus Biosciences patent win. Alexander J. Poulos Humira Remains the Primary Revenue Driver for Abbvie Shares of Abbvie (ABBV) have come under selling pressure May 17 on the news of a key patent lose to biosimilar upstart Coherus Biosciences (CHRS). AbbVie remains locked in a protracted … Read more