Roche Holding AG (RHHBY - Free Report) announced that it intends to terminate its agreement with Pacifica Bioscience. The company has officially notified Pacifica Bioscience about its plans too. The agreement is primarily related to the development of a sequencing instrument for use in the clinical research and clinical market using Pacifica Bioscience’s Single Molecule, Real-Time (SMRT) technology.
We note that Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry year to date. In fact, the company has lost 18.5% so far this year, compared to the industry’s 6% drop.
Coming back to the latest news, as a result of the termination of the agreement, Roche will not have the rights to the SMRT technology anymore. Roche’s decision to terminate the agreement comes as part of its plans to focus on internal development efforts and long-term strategy of achieving a leadership position in clinical diagnostic sequencing.
Roche specializes in developing drugs for oncology, immunology and infectious diseases. Apart from providing therapeutic products and services for diverse medical needs, the company focuses on innovative diagnostic solutions for the early detection and treatment of diseases.
This pharmaceutical major has a broad portfolio of diagnostic tests. Sales of the diagnostics division grew 7% in the first nine months of 2016 driven by the performance of immunodiagnostic products as Professional diagnostics, Molecular diagnostics and Tissue Diagnostics recorded continually robust sales growth. However, diabetes care sales continued to suffer the impact of challenging market conditions, especially in North America.
Even though Roche is a leader in the oncology space, the company witnessed a weak performance by a couple of its oncology products including Avastin during the third quarter. Earlier this month, along with its partner AbbVie Inc. (ABBV - Free Report) , the company received conditional marketing approval for Venclyxto for the treatment of chronic lymphocytic leukemia (CLL) in the EU.
Roche currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the health care sector include Sucampo Pharmaceuticals, Inc. and Vanda Pharmaceuticals, Inc. (VNDA - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vanda’s loss estimates for 2016 narrowed from 62 cents to 52 cents, while its earnings estimates for 2017 increased from 13 cents to 22 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 76.9% year to date.
Sucampo’s earnings estimates increased from $1.03 to $1.22 for 2016 and from $1.30 to $1.69 for 2017 over the last 60 days. The company posted a positive surprise in all of the four trailing quarters with an average beat of 35.55%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Roche Holding AG (RHHBY - Free Report) announced that it intends to terminate its agreement with Pacifica Bioscience. The company has officially notified Pacifica Bioscience about its plans too. The agreement is primarily related to the development of a sequencing instrument for use in the clinical research and clinical market using Pacifica Bioscience’s Single Molecule, Real-Time (SMRT) technology.
We note that Roche has underperformed the Zacks classified Large Cap Pharmaceuticals industry year to date. In fact, the company has lost 18.5% so far this year, compared to the industry’s 6% drop.
Coming back to the latest news, as a result of the termination of the agreement, Roche will not have the rights to the SMRT technology anymore. Roche’s decision to terminate the agreement comes as part of its plans to focus on internal development efforts and long-term strategy of achieving a leadership position in clinical diagnostic sequencing.
Roche specializes in developing drugs for oncology, immunology and infectious diseases. Apart from providing therapeutic products and services for diverse medical needs, the company focuses on innovative diagnostic solutions for the early detection and treatment of diseases.
This pharmaceutical major has a broad portfolio of diagnostic tests. Sales of the diagnostics division grew 7% in the first nine months of 2016 driven by the performance of immunodiagnostic products as Professional diagnostics, Molecular diagnostics and Tissue Diagnostics recorded continually robust sales growth. However, diabetes care sales continued to suffer the impact of challenging market conditions, especially in North America.
Even though Roche is a leader in the oncology space, the company witnessed a weak performance by a couple of its oncology products including Avastin during the third quarter. Earlier this month, along with its partner AbbVie Inc. (ABBV - Free Report) , the company received conditional marketing approval for Venclyxto for the treatment of chronic lymphocytic leukemia (CLL) in the EU.
Roche currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the health care sector include Sucampo Pharmaceuticals, Inc. and Vanda Pharmaceuticals, Inc. (VNDA - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vanda’s loss estimates for 2016 narrowed from 62 cents to 52 cents, while its earnings estimates for 2017 increased from 13 cents to 22 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 76.9% year to date.
Sucampo’s earnings estimates increased from $1.03 to $1.22 for 2016 and from $1.30 to $1.69 for 2017 over the last 60 days. The company posted a positive surprise in all of the four trailing quarters with an average beat of 35.55%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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