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Pharma Stock Roundup: Allergan, GSK Top 4Q Earnings, Praluent Breather for Sanofi
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Major pharma companies like Allergan and GlaxoSmithKline (GSK - Free Report) reported better-than-expected fourth quarter results this week. Meanwhile, French pharma giant, Sanofi (SNY - Free Report) got a breather in the PCSK9 inhibitor patent infringement lawsuit with a court allowing the company to continue selling the drug while the appeal is ongoing.
Recap of the Week’s Most Important Stories
Sanofi, Regeneron PCSK9 Inhibitor to Remain in Market During Appeal Process: Sanofi and partner, Regeneron, got a reprieve in their PCSK9 inhibitor patent infringement case with the United States Court of Appeals for the Federal Circuit suspending the permanent injunction for Praluent pending the companies’ appeal. This means that Sanofi and Regeneron will continue marketing, selling and manufacturing Praluent in the U.S. while the appeal process against Amgen is ongoing. The companies are challenging the injunction ruling as well as the validity judgment. Although both PCSK9 inhibitor sales are yet to ramp up significantly, the market represents huge commercial potential. Sanofi also reported 4Q results this week (Read more: Sanofi Earnings In Line; Can Sell Praluent for Now). Sanofi is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allergan, Glaxo Top Estimates: Allergan exited 2016 on a strong note topping both earnings and revenue estimates. The company’s sales outlook also surpassed expectations (Read more: Allergan Tops Q4 Earnings; 2017 Sales View Upbeat). British pharma major, Glaxo also reported 4Q results -- although the company topped estimates, guidance disappointed. Respiratory drug, Advair could start facing generic competition this year and a mid-year generic entry would cut Advair sales to about £1 billion (Read more: Glaxo Beats on Q4 Earnings, Posts Dismal '17 View). Over the last one year, Glaxo has underperformed the Zacks categorized Large Cap Pharmaceuticals industry with the company gaining 2.3% during this period compared to the industry gain of 5.1%.
Bristol-Myers Partnered Cancer Drug Fails in Phase II Study: Bristol-Myers (BMY - Free Report) partnered drug, lirilumab, failed to meet the primary endpoint in a mid-stage study being conducted in elderly patients with acute myeloid leukemia (AML) in first complete remission. Partner Innate Pharma said that the study confirmed the safety profile of the experimental treatment as a monotherapy. Lirilumab is in six studies sponsored by Bristol-Myers addressing a wide range of solid and hematological cancer indications in combination with other agents including Opdivo.
Teva Facing Israeli Investigation? There seems to be no end to Teva’s (TEVA - Free Report) woes. The company, which was recently hit by a court ruling regarding the patents for Copaxone 40 mg, is now facing a probe from the Israel police’s national fraud unit regarding the bribing of officials abroad. According to Israeli newspaper, Haaretz, Teva confirmed that an Israeli investigation similar to the U.S. investigation is ongoing -- the company had settled the corruption probe in the U.S. in Dec 2016 for $519 million.
Meanwhile, Teva’s CEO Erez Vigodman stepped down suddenly and will be replaced by Dr. Yitzhak Peterburg, who will serve as Interim President and CEO, effective immediately (Read more: Teva: Vigodman Steps Down, Peterburg Hired as Interim CEO). Teva has had a tough run with the company’s shares underperforming the Zacks categorized Medical-Generics industry in the last one year. Teva’s shares declined 43.4% during this period compared to the industry decline of 25.1%.
J&J’s COMPASS Study Halted Early on Efficacy: Johnson & Johnson’s Janssen Research & Development announced that the late-stage COMPASS study on Xarelto for the prevention of major adverse cardiac events (MACE), including cardiovascular death, myocardial infarction and stroke in patients with coronary artery disease (CAD) or with peripheral artery disease (PAD), will stop earlier than planned as the primary endpoint was met. The decision was based on the recommendation of the study’s independent Data Monitoring Committee (DMC). The study was earlier expected to complete in Mar 2018.
The NYSE ARCA Pharmaceutical Index rose 1.8% over the last five trading sessions with all major pharma stocks recording gains. AstraZeneca (AZN - Free Report) was up 6.3% during this period. Over the last six months, BMY was down 16.4% while Merck (MRK - Free Report) gained 3% during this period (See the last pharma stock roundup here: Pfizer, Merck, LLY Report Results, Teva Hit by Copaxone Ruling).
What's Next in the Pharma World?
Watch out for earnings results from companies like Teva next week.
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Pharma Stock Roundup: Allergan, GSK Top 4Q Earnings, Praluent Breather for Sanofi
Major pharma companies like Allergan and GlaxoSmithKline (GSK - Free Report) reported better-than-expected fourth quarter results this week. Meanwhile, French pharma giant, Sanofi (SNY - Free Report) got a breather in the PCSK9 inhibitor patent infringement lawsuit with a court allowing the company to continue selling the drug while the appeal is ongoing.
Recap of the Week’s Most Important Stories
Sanofi, Regeneron PCSK9 Inhibitor to Remain in Market During Appeal Process: Sanofi and partner, Regeneron, got a reprieve in their PCSK9 inhibitor patent infringement case with the United States Court of Appeals for the Federal Circuit suspending the permanent injunction for Praluent pending the companies’ appeal. This means that Sanofi and Regeneron will continue marketing, selling and manufacturing Praluent in the U.S. while the appeal process against Amgen is ongoing. The companies are challenging the injunction ruling as well as the validity judgment. Although both PCSK9 inhibitor sales are yet to ramp up significantly, the market represents huge commercial potential. Sanofi also reported 4Q results this week (Read more: Sanofi Earnings In Line; Can Sell Praluent for Now). Sanofi is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allergan, Glaxo Top Estimates: Allergan exited 2016 on a strong note topping both earnings and revenue estimates. The company’s sales outlook also surpassed expectations (Read more: Allergan Tops Q4 Earnings; 2017 Sales View Upbeat). British pharma major, Glaxo also reported 4Q results -- although the company topped estimates, guidance disappointed. Respiratory drug, Advair could start facing generic competition this year and a mid-year generic entry would cut Advair sales to about £1 billion (Read more: Glaxo Beats on Q4 Earnings, Posts Dismal '17 View). Over the last one year, Glaxo has underperformed the Zacks categorized Large Cap Pharmaceuticals industry with the company gaining 2.3% during this period compared to the industry gain of 5.1%.
Bristol-Myers Partnered Cancer Drug Fails in Phase II Study: Bristol-Myers (BMY - Free Report) partnered drug, lirilumab, failed to meet the primary endpoint in a mid-stage study being conducted in elderly patients with acute myeloid leukemia (AML) in first complete remission. Partner Innate Pharma said that the study confirmed the safety profile of the experimental treatment as a monotherapy. Lirilumab is in six studies sponsored by Bristol-Myers addressing a wide range of solid and hematological cancer indications in combination with other agents including Opdivo.
Teva Facing Israeli Investigation? There seems to be no end to Teva’s (TEVA - Free Report) woes. The company, which was recently hit by a court ruling regarding the patents for Copaxone 40 mg, is now facing a probe from the Israel police’s national fraud unit regarding the bribing of officials abroad. According to Israeli newspaper, Haaretz, Teva confirmed that an Israeli investigation similar to the U.S. investigation is ongoing -- the company had settled the corruption probe in the U.S. in Dec 2016 for $519 million.
Meanwhile, Teva’s CEO Erez Vigodman stepped down suddenly and will be replaced by Dr. Yitzhak Peterburg, who will serve as Interim President and CEO, effective immediately (Read more: Teva: Vigodman Steps Down, Peterburg Hired as Interim CEO). Teva has had a tough run with the company’s shares underperforming the Zacks categorized Medical-Generics industry in the last one year. Teva’s shares declined 43.4% during this period compared to the industry decline of 25.1%.
J&J’s COMPASS Study Halted Early on Efficacy: Johnson & Johnson’s Janssen Research & Development announced that the late-stage COMPASS study on Xarelto for the prevention of major adverse cardiac events (MACE), including cardiovascular death, myocardial infarction and stroke in patients with coronary artery disease (CAD) or with peripheral artery disease (PAD), will stop earlier than planned as the primary endpoint was met. The decision was based on the recommendation of the study’s independent Data Monitoring Committee (DMC). The study was earlier expected to complete in Mar 2018.
Performance
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
The NYSE ARCA Pharmaceutical Index rose 1.8% over the last five trading sessions with all major pharma stocks recording gains. AstraZeneca (AZN - Free Report) was up 6.3% during this period. Over the last six months, BMY was down 16.4% while Merck (MRK - Free Report) gained 3% during this period (See the last pharma stock roundup here: Pfizer, Merck, LLY Report Results, Teva Hit by Copaxone Ruling).
What's Next in the Pharma World?
Watch out for earnings results from companies like Teva next week.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>