HGSI

Our Reports on Stocks in the Biotech Industry

by

Image Source: Celgene This listing has been discontinued. Please view the following links for our work on pharmaceutical stocks: Pharmaceuticals – Big: ABBV, ABT, AMGN, AZN, BMY, GSK, LLY, MRK, NVO, NVS, PFE, SNY Pharmaceuticals – Biotech/Generic: ALXN, AGN, BIIB, BMRN, CELG, GILD, MYL, REGN, TEVA, VRX, VRTX, ZTS Structure of the Biotechnology Industry Firms in the biotechnology industry face no certain future. Drug development is complex, difficult, and risky, and failure rates are high. Product development cycles are extended—approximately 10 to 15 years from discovery to market. A potential new medicine must undergo years of testing to establish safety/efficacy. Sales depend on reimbursement from third-party payers. Competition can be fierce when biosimilar products exist, though patents are material competitive advantages. We like the group on the … Read more

Arena Pharmaceuticals’ Belviq Approval May Not Match The Hype

by

This article was dual-published on Valuentum’s website and Seeking Alpha’s website June 29, 2012 (archive). Arena Pharmaceuticals (ARNA) had its Belviq obesity drug approved on Wednesday. Shares rallied to close up over 28%, and Belviq is the first weight-loss drug approved by the Food & Drug Administration in 13 years. We do not cover the firm, but we think there are a few major risks investors should be aware of before establishing a position in the biotech firm. For one, Belviq is no wonder drug. With diet and exercise, it was proven to aid in weight-loss of 5% or more of body mass in one year. Perhaps the drug, which helps alleviate hunger, does aid in the process, but we … Read more

Looking for a Pullback to Pick Up Johnson & Johnson’s Shares

by

This article appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/278789-looking-for-a-pullback-to-pick-up-johnson-and-johnsons-shares As long-time followers of Johnson & Johnson (click ticker for report: ) know, the firm is a steady, established company that has pursued somewhat of a defensive strategy in light of the global economic situation, which continues to muddle along in the US. J&J has pulled back on capital expenditures and R&D, while cutting overhead expenses, amounting to material operating savings. Operating margins have improved from about 26.6% in 2008 to over 27.5% in 2010, and we think there is further room for expansion in coming years. We believe these operating improvements to be a low risk measure to improve the bottom line, and with expansion into international markets, the firm should … Read more