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Pharma Stock Roundup: Pfizer, Merck, LLY Report Results, Teva Hit by Copaxone Ruling
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Major pharma companies like Pfizer (PFE - Free Report) , Merck (MRK - Free Report) and Lilly (LLY - Free Report) reported fourth quarter results this week. Meanwhile, Teva (TEVA - Free Report) was hit by an unfavorable ruling in the Copaxone patent infringement lawsuit.
Recap of the Week’s Most Important Stories
A Look at Earnings Results: Pfizer reported a mixed quarter with earnings missing expectations while revenues topped. Fourth quarter revenues were negatively impacted by fewer selling days in the reported quarter, currency headwinds and lower Prevnar 13 sales (Read more: Pfizer Q4 Earnings Lag, Sales Top; '17 Sales View Soft). Merck also reported a mixed quarter with revenues missing while earnings topped (Read more: Merck Tops Q4 Earnings; Pharmaceutical Sales Down). Other companies like Lilly (Read more: Eli Lilly Misses on Q4 Earnings, Beats on Revenues), AstraZeneca and Novo Nordisk also reported results this week.
Teva Hit by Copaxone Ruling: Teva suffered a major setback with the U.S. District Court for the District of Delaware invalidating all asserted claims of the ‘250, ‘413, ‘776 and ‘302 patents for the company’s multiple sclerosis (MS) treatment, Copaxone 40 mg. Teva, which saw its shares slip on the ruling, intends to appeal the decision. Copaxone is the key branded drug in the company’s portfolio -- earlier this year the company had said that it does not expect generic competition for Copaxone 40 mg to enter the U.S. market this year. However, the company noted that the entry of two AB-rated generic competitors in the U.S. in Feb 2017 could cut revenues by $1.0 billion - $1.2 billion, and reduce earnings by 65 - 80 cents. Teva has had a rough run with the company’s shares underperforming the Zacks categorized Medical-Generics industry in the last one year. Teva’s shares declined 43.9% during this period compared to the industry decline of 28%.
Bristol-Myers’ Opdivo Gets FDA Nod for Bladder Cancer Indication: Bristol-Myers’ (BMY - Free Report) Opdivo gained FDA approval for use in a type of bladder cancer -- previously treated locally advanced or metastatic urothelial cancer. Bladder cancer is the sixth most diagnosed cancer in the U.S. with about 77,000 new diagnoses in 2016 and more than 16,000 deaths as per information provided by the National Cancer Institute. Opdivo, which is a key revenue generator for Bristol-Myers with 2016 sales coming in at $3.8 billion, is facing significant competitive pressure in the second-line lung cancer market in the U.S. Bristol-Myers is working on expanding the product's label. With the recent approval, Opdivo is now indicated for six types of tumors.
Merck’s Keytruda Gets EC Approval for First-Line Lung Cancer Indication: The European Commission (EC) approved Merck’s anti-PD-1 therapy, Keytruda, for the first-line treatment of metastatic non-small cell lung cancer (NSCLC) in adults whose tumors have high PD-L1 expression with no EGFR or ALK positive tumor mutations. Approval for the first-line indication will expand the patient population and sales potential significantly (Read more: Merck Keytruda Gets EU Approval for First-Line Lung Cancer). Merck has significantly outperformed the Zacks categorized Large Cap Pharmaceuticals industry over the last one year with shares gaining 28.2% compared to the industry gain of 0.2%. Merck is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The NYSE ARCA Pharmaceutical Index rose 2.5% over the last five trading sessions with the sector reacting favorably to President Trump’s meeting with industry leaders (Read more: Drug Stocks Rally on Trump Meet with Pharma Bigwigs). All major pharma stocks were up this week with Bristol-Myers gaining 7.9% and Merck 4.9%. Over the last six months, BMY was down 32.7% while Merck gained 10% during this period. Over the last one year, Bristol-Myers has underperformed the Zacks categorized Large Cap Pharmaceuticals industry with shares losing 16% (See the last pharma stock roundup here: J&J to Buy Actelion, Bristol-Myers' 4Q Results Disappoint).
What's Next in the Pharma World?
Watch out for earnings results from companies like Sanofi (SNY - Free Report) and Allergan this week.
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Pharma Stock Roundup: Pfizer, Merck, LLY Report Results, Teva Hit by Copaxone Ruling
Major pharma companies like Pfizer (PFE - Free Report) , Merck (MRK - Free Report) and Lilly (LLY - Free Report) reported fourth quarter results this week. Meanwhile, Teva (TEVA - Free Report) was hit by an unfavorable ruling in the Copaxone patent infringement lawsuit.
Recap of the Week’s Most Important Stories
A Look at Earnings Results: Pfizer reported a mixed quarter with earnings missing expectations while revenues topped. Fourth quarter revenues were negatively impacted by fewer selling days in the reported quarter, currency headwinds and lower Prevnar 13 sales (Read more: Pfizer Q4 Earnings Lag, Sales Top; '17 Sales View Soft). Merck also reported a mixed quarter with revenues missing while earnings topped (Read more: Merck Tops Q4 Earnings; Pharmaceutical Sales Down). Other companies like Lilly (Read more: Eli Lilly Misses on Q4 Earnings, Beats on Revenues), AstraZeneca and Novo Nordisk also reported results this week.
Teva Hit by Copaxone Ruling: Teva suffered a major setback with the U.S. District Court for the District of Delaware invalidating all asserted claims of the ‘250, ‘413, ‘776 and ‘302 patents for the company’s multiple sclerosis (MS) treatment, Copaxone 40 mg. Teva, which saw its shares slip on the ruling, intends to appeal the decision. Copaxone is the key branded drug in the company’s portfolio -- earlier this year the company had said that it does not expect generic competition for Copaxone 40 mg to enter the U.S. market this year. However, the company noted that the entry of two AB-rated generic competitors in the U.S. in Feb 2017 could cut revenues by $1.0 billion - $1.2 billion, and reduce earnings by 65 - 80 cents. Teva has had a rough run with the company’s shares underperforming the Zacks categorized Medical-Generics industry in the last one year. Teva’s shares declined 43.9% during this period compared to the industry decline of 28%.
Bristol-Myers’ Opdivo Gets FDA Nod for Bladder Cancer Indication: Bristol-Myers’ (BMY - Free Report) Opdivo gained FDA approval for use in a type of bladder cancer -- previously treated locally advanced or metastatic urothelial cancer. Bladder cancer is the sixth most diagnosed cancer in the U.S. with about 77,000 new diagnoses in 2016 and more than 16,000 deaths as per information provided by the National Cancer Institute. Opdivo, which is a key revenue generator for Bristol-Myers with 2016 sales coming in at $3.8 billion, is facing significant competitive pressure in the second-line lung cancer market in the U.S. Bristol-Myers is working on expanding the product's label. With the recent approval, Opdivo is now indicated for six types of tumors.
Merck’s Keytruda Gets EC Approval for First-Line Lung Cancer Indication: The European Commission (EC) approved Merck’s anti-PD-1 therapy, Keytruda, for the first-line treatment of metastatic non-small cell lung cancer (NSCLC) in adults whose tumors have high PD-L1 expression with no EGFR or ALK positive tumor mutations. Approval for the first-line indication will expand the patient population and sales potential significantly (Read more: Merck Keytruda Gets EU Approval for First-Line Lung Cancer). Merck has significantly outperformed the Zacks categorized Large Cap Pharmaceuticals industry over the last one year with shares gaining 28.2% compared to the industry gain of 0.2%. Merck is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
The NYSE ARCA Pharmaceutical Index rose 2.5% over the last five trading sessions with the sector reacting favorably to President Trump’s meeting with industry leaders (Read more: Drug Stocks Rally on Trump Meet with Pharma Bigwigs). All major pharma stocks were up this week with Bristol-Myers gaining 7.9% and Merck 4.9%. Over the last six months, BMY was down 32.7% while Merck gained 10% during this period. Over the last one year, Bristol-Myers has underperformed the Zacks categorized Large Cap Pharmaceuticals industry with shares losing 16% (See the last pharma stock roundup here: J&J to Buy Actelion, Bristol-Myers' 4Q Results Disappoint).
What's Next in the Pharma World?
Watch out for earnings results from companies like Sanofi (SNY - Free Report) and Allergan this week.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>