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Amgen's Repatha Wins Over Sanofi & Regeneron's Praluent
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Amgen Inc. (AMGN - Free Report) received encouraging news when a Delaware district court upheld its patents for PCSK9 inhibitor, Repatha, against Sanofi (SNY - Free Report) and Regeneron Pharmaceuticals, Inc. (REGN - Free Report) . Amgen’s share rose close to 4% in after-hours trading on Thursday.
Amgen’s shares have declined 10% in 2016. However, this decline compared favorably with a 27.1% drop registered by the Zacks classified Biomed/Genetics industry during this period. The stock’s outperformance was backed by consistently strong earnings results as well as regular positive news flow and regulatory updates.
In a surprising decision, the U.S. District Court in Delaware granted Amgen permanent injunction against infringement by Sanofi and Regeneron of two patents owned by the former for Repatha. The decision bans Sanofi and Regeneron from selling Praluent during the term of the two patents, which describe and claim monoclonal antibodies of PCSK9. On the contrary, market expectations were that Sanofi and Regeneron would be asked to pay royalties to Amgen on sales of Praluent.
The Praluent’s ban could drive sales of Repatha. However, the injunction has been delayed by 30 days to allow the companies time to appeal. Regeneron and Sanofi have said they intend to appeal to a higher court.
In Oct 2014, Amgen filed a patent infringement lawsuit against Sanofi and Regeneron in the U.S. District Court of Delaware to prevent the manufacture, use and sale of Praluent. In March, a Delaware jury had ruled in favor of Amgen declaring that the two patents (U.S. Patent Nos. 8,829,165, and 8,859,741) were valid, and that Sanofi and Regeneron had failed to invalidate them due to the lack of written description and enablement.
We note that both Repatha and Praluent are used to inhibit a protein known as PCSK9, which lowers the liver's ability to remove "bad" cholesterol (LDL-C) from the blood. While both the drugs hit the markets in 2015 within a month, the companies have been working rigorously on securing deals with health insurers and pharmacy benefit managers. However, sales of the drugs have been below expectations since launch due to pricing and reimbursement issues.
Both Amgen and Regeneron have a Zacks Rank #3 (Hold), while Sanofi has a Zacks Rank #4 (Sell).A better-ranked stock in the health care sector is Cambrex Corporation sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambrex’s earnings estimates increased 5.2% for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 19.78%. Its share price was up 14.6% in 2016.
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Amgen's Repatha Wins Over Sanofi & Regeneron's Praluent
Amgen Inc. (AMGN - Free Report) received encouraging news when a Delaware district court upheld its patents for PCSK9 inhibitor, Repatha, against Sanofi (SNY - Free Report) and Regeneron Pharmaceuticals, Inc. (REGN - Free Report) . Amgen’s share rose close to 4% in after-hours trading on Thursday.
Amgen’s shares have declined 10% in 2016. However, this decline compared favorably with a 27.1% drop registered by the Zacks classified Biomed/Genetics industry during this period. The stock’s outperformance was backed by consistently strong earnings results as well as regular positive news flow and regulatory updates.
In a surprising decision, the U.S. District Court in Delaware granted Amgen permanent injunction against infringement by Sanofi and Regeneron of two patents owned by the former for Repatha. The decision bans Sanofi and Regeneron from selling Praluent during the term of the two patents, which describe and claim monoclonal antibodies of PCSK9. On the contrary, market expectations were that Sanofi and Regeneron would be asked to pay royalties to Amgen on sales of Praluent.
The Praluent’s ban could drive sales of Repatha. However, the injunction has been delayed by 30 days to allow the companies time to appeal. Regeneron and Sanofi have said they intend to appeal to a higher court.
In Oct 2014, Amgen filed a patent infringement lawsuit against Sanofi and Regeneron in the U.S. District Court of Delaware to prevent the manufacture, use and sale of Praluent. In March, a Delaware jury had ruled in favor of Amgen declaring that the two patents (U.S. Patent Nos. 8,829,165, and 8,859,741) were valid, and that Sanofi and Regeneron had failed to invalidate them due to the lack of written description and enablement.
We note that both Repatha and Praluent are used to inhibit a protein known as PCSK9, which lowers the liver's ability to remove "bad" cholesterol (LDL-C) from the blood. While both the drugs hit the markets in 2015 within a month, the companies have been working rigorously on securing deals with health insurers and pharmacy benefit managers. However, sales of the drugs have been below expectations since launch due to pricing and reimbursement issues.
Both Amgen and Regeneron have a Zacks Rank #3 (Hold), while Sanofi has a Zacks Rank #4 (Sell).A better-ranked stock in the health care sector is Cambrex Corporation sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambrex’s earnings estimates increased 5.2% for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 19.78%. Its share price was up 14.6% in 2016.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>