AMGN

Pharma, Biotech and How to Consider Investing In It

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The Valuentum analyst team digs deep into recent trends in big pharma and biotech from the lofty pricing of drugs to political and competitive pressures to ETF considerations and beyond. ~10 mins. If you cannot view the podcast below, please view the transcript below or select the link here. Tickerized for holdings in the XLV and IBB. Brian Nelson, CFA Gilead’s (GILD) hepatitis C regimen, almost a hundred thousand dollars. Vertex’s (VRTX) cystic fibrosis drug — hundreds of thousands of dollars per year. Have the drug companies lost their mind? This is Brian Nelson from Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos — and we are going to talk everything healthcare, biotech… Mr. … Read more

Big Pharma 1Q Earnings Roundup, Part II

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Image Source: Paw Paw Companies mentioned: ABBV, AGN, BMY, AMGN, MRK, PFE. AbbVie (ABBV) Riding Humira to the End AbbVie’s performance in the first quarter of 2016 was nothing short of impressive, as the firm grew revenue by more than 18% on an as reported basis from the year-ago period. Humira (arthritis), the company’s headlining drug, sales increased nearly 15% as reported. New drug Imbruvica (leukemia) showed solid momentum in the quarter, and AbbVie received two approvals for the expansion of the Imbruvica as a first line therapy for chronic lymphocytic leukemia. The treatment is expected to play a key role in the future of the company, especially after its patent on Humira expires in December of this year. The … Read more

Key Treatment Momentum Drives Big Pharma

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The momentum of key drugs and treatments is often a solid indicator for the coming performance of a pharmaceutical firm. Growing competition and other market pressures out of a company’s control can often cause material ebbs and flows in financial performance, making a strong and stable pipeline necessary to sustained success. As we walk through the results from some of the biggest names in the pharmaceuticals industry, let’s get a feel for the trajectory of each firm’s drug portfolio and pipeline moving into the rest of 2016. AbbVie (ABBV) AbbVie reported a quarter of strong growth January 29, as adjusted net revenues jumped more than 24% on an operational basis, and GAAP net revenue increase more than 17% from the … Read more

Big Pharma Earnings Continued…

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Amgen (AMGN) Amgen’s second-quarter results, released July 30, were a sight to see. Total revenue advanced 4% versus the second quarter of last year thanks to strength in Enbrel (etanercept), Prolia (denosumab), Sensipar (cinacalcet), Kyprolis (carfilzomib) and XGEVA (denosumab). Adjusted operating income and adjusted earnings per share leapt 10% and 8% in the quarter thanks in part to the strong top-line performance but also solid adjusted operating margin improvement (~+2 percentage points). Free cash flow generation was also fantastic, with the firm hauling in $2.7 billion in the measure compared to $2.1 billion in the second quarter of 2014. Keys to the Quarter: Investors should keep an eye on its blockbuster Neulasta/NEUPOGEN performance, which faced sales pressure in the quarter, … Read more

Dividend Increases for the Week Ending December 19

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Below we provide a list of firms that raised their dividends during the week ending December 19. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week 3M (MMM): now $1.025 per share quarterly dividend, was $0.855. AES (AES): now $0.10 per share quarterly dividend, was $0.05. Amgen (AMGN): now $0.79 per share quarterly dividend, was $0.61. Andersons (ANDE): now $0.14 per share quarterly dividend, was $0.11. Apollo Residential Mortgage (AMTG): now $0.45 per share quarterly dividend, was $0.44. AT&T (T): now $0.47 per share quarterly dividend, was $0.46. Balchem (BCPC): now $0.30 … Read more

Big Pharma Round Up

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Though much has been made about the patent cliff—shorthand for the expiration of the patents of a large number of drugs over a short period of time—we continue to believe that pipelines across much of the pharmaceutical space are flush with new drugs and therapies. Readers may have an individual favorite or two (or three) within the space (and there’s nothing wrong with that), but we think one of the best ways for investors to play the strong pipelines across the healthcare sector—and ongoing consolidation—is through the Health Care Select SPDR ETF (XLV), a holding in the Best Ideas portfolio. The ETF boasts Johnson & Johnson (JNJ), Pfizer (PFE), Merck (MRK), Gilead Sciences (GILD), and AbbVie (ABBV) as its top … Read more

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Surveying Fourth Quarter Earnings at Health Care Firms

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The broader equity markets have been under pressure for much of January, and while it may be tempting to consider completely exiting stock investing for a time, we’re staying the course with both of our actively-managed portfolios. We had been expecting a contraction in price-to-earnings (P/E) multiples across the broader market (see our outlook here), and the performance thus far in 2014 has not been surprising. In case you may have missed it, I sent out some very important thoughts over the weekend to keep in mind as uncertainty and volatility increase through the course of 2014: Stay focused on @Valuentum portfolio holdings (best ideas), #asset allocation (cash) in portfolios and #prudence in allocating new capital. — Brian Nelson, CFA … Read more

Surveying 3Q Performance from Big Pharma: Bristol-Myers, Eli Lilly, and AbbVie

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Bristol-Myers On Wednesday, Bristol-Myers (BMY) showcased the strength of its key marketed products in its third-quarter report. The firm experienced a 9% increase in net sales and a 12% jump in non-GAAP diluted earnings per share. Bristol-Myers also confirmed its 2013 non-GAAP earnings per share range of $1.70 to $1.78 per share. Looking at its current marketed portfolio, Abilify, its largest revenue generator, faced a 16% decline, though this was offset by strength in Yervoy, which grew 33%, Orencia, which grew 22%, and Sprycel, which grew 20%. Yervoy doesn’t lose exclusivity in key markets until after 2020 (2023 in the US), Orencia loses exclusivity in Japan, the EU, and the US between years 2017 and 2019, and Sprycel doesn’t lose … Read more

Amgen’s Second Quarter Doesn’t Disappoint

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Pharmaceutical firm Amgen (click ticker for report: ) announced strong second quarter results Tuesday afternoon. Revenue increased 5% year-over-year to $4.7 billion, modestly exceeding consensus estimates. Adjusted for certain items, earnings-per-share climbed 3% year-over-year to $1.89, a figure well above consensus expectations. Free cash flow was terrific at $1.4 billion, equal to 30% of total revenue. Amgen’s white-blood-cell-growth drugs designed to prevent infections during chemotherapy, Neulasta and Neupogen, saw combined sales growth of 7% year-over-year to $1.4 billion as Neulasta becomes the drug of choice. Amgen’s other billion-dollar treatment Enbrel, a rheumatoid arthritis and plaque psoriasis drug similar to AbbVie’s Humira (click ticker for report: ) and Johnson & Johnson’s Remicade (click ticker for report: ), posted 9% revenue growth. … Read more