IBB

Eli Lilly Looks to Bolster Its Presence in Oncology

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We are becoming increasingly impressed with Eli Lilly as the company boasts an enviable stable of new products that should power the company well into the next decade. Lilly is through the bulk of its patent trough, in our view, and its pipeline should set the company up for years of potentially uninterrupted revenue growth. Shares are not necessarily cheap, however. By Alexander J. Poulos Key Takeaways Lilly is aggressively building its oncology portfolio, and we think a new suite of recently-approved products should help power growth into the next decade. Lilly has opened the checkbook to acquire two additional novel compounds that underscore its desire to become a player in the oncology space. We view Lilly’s appetite for deal … Read more

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).

What’s Working (or NOT Working) in Today’s Market?

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Image shown: Crude oil continues to lead gainers while consumer staples, REITs, and energy MLPs continue to get shellacked. By Kris Rosemann The stock market during the first few months of 2018 has been marked by a meaningful return to volatility. Commodity prices from crude oil (USO) to aluminum have had their moments in the sun as material supply/demand imbalances of years past continue to sort themselves out, with the help of a few key players, of course (OPEC member nations in the case of crude oil, and Chinese pollution regulations and US trade policy changes in the aluminum example). Geopolitical uncertainty is keeping both world leaders and investors on their toes as the world continues to navigate multiple denuclearization … Read more

Incyte’s Ongoing Disappointments and Ultragenyx’s Exciting Development

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The pharma/biotech sector, unlike other mainline industries, is driven by the clinical data readouts on the next-gen molecules in the clinical pipeline. We have witnessed many exaggerated moves with an often-binary outcome on the smaller single molecule entities, but we also have witnessed a negligible impact on the broader, more-diverse industry behemoths. We wanted to touch on a few recent data readouts to illustrate the volatile, risky yet potentially lucrative nature of the industry. By Alexander J. Poulos Key Takeaways The iShares Nasdaq Biotech ETF serves as an excellent proxy for investors to gain broad exposure to a number of biotech equities, but it is not for the faint of heart. Incyte has disappointed on a number of occasions. From … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

Our Reports on Stocks in the Biotech Industry

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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

Cigna, Express, and the Unwinding of the PBM Market

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Given its track record of creative destruction, when Amazon plans to enter a particular line of business, it presents an ominous threat to incumbents. What is often overlooked, too, is that Amazon is more than willing to try new verticals—if they prove promising, additional assets will be devoted to the new line of business, often with fawning media coverage. If Amazon is unsuccessful in its endeavor, however, then it seems as though it will “fail fast” and shut down the project and move on. We found the recent announcement of a joint venture to tackle the healthcare industry as particularly noteworthy. By Alexander J. Poulos Amazon as the Great Disrupter We have marveled at Amazon’s (AMZN) rumored ambition into pharmaceutical … Read more

The “Luck” and “Randomness” of Index Funds

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Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.

Johnson & Johnson in Transition Mode

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Image Source: Johnson & Johnson Fourth Quarter Earnings Presentation Shares of Johnson & Johnson have performed well since being added to both the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio. We continue to be impressed with the depth of the clinical pipeline as Johnson & Johnson has an appealing mixture of mature and early-stage products that power the portfolio. Let’s examine the three main franchises of the portfolio to gain a better understanding of the depth of Johnson & Johnson’s Pharmaceutical division. By Alexander J. Poulos Immunology The Immunology Division remains the engine that drives performance at Johnson & Johnson (JNJ) as the group accounts for nearly one third of total sales. The division reported operational … Read more

Our Overview on Merck in Light of Recent Clinical Events

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Clinical data reads can have an outsize impact on the fortunes of the research-based pharma industry, irrespective of the size of the organization. We came away very impressed with the recent release from Merck and felt a timely overview of the various pharmaceutical products developed by the company would be of value to readers. By Alexander J. Poulos Third Quarter Results Image Source: Merck On October 27, Merck (MRK) released its third-quarter results. The results were met with an immediate sell-off in the shares as the pace of the clinical pipeline disappointed. To say the least, we were surprised by the aggressiveness of the sell-off–the catalyst for the leg down in the share price, in our view, is the declaration … Read more