We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lilly Tops Expectations, Mulls Options for Animal Health Segment: Lilly’s third quarter results were better than expected with the company beating on both the top- and bottom-line and raising its outlook for the year reflecting uptake trends for new pharmaceutical products.
The company also announced that it is exploring strategic alternatives for its Animal Health business (Elanco Animal Health) with an update expected by mid-2018. The company is weighing options like an initial public offering, merger, sale, or retention of the business. The segment brought in revenues of $2.3 billion so far in 2017 (Read more: Lilly Beats on Q3 Earnings, Explores Sale of Elanco). Lilly is a Zacks Rank #2 (Buy) stock - you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mixed Quarter for BMY: It was a mixed quarter for Bristol-Myers with the company missing on earnings but surpassing revenue expectations. Opdivo’s performance remained strong despite the presence of increasing competition with sales growing 38% to $1.3 billion. Eliquis also performed well. The company said that business development remains a top priority while it expects to buy back shares worth an additional $250 million by year end (Read more: Bristol-Myers Misses on Q3 Earnings, Opdivo in Focus). The company has gained 4.3% year to date, compared to the 16.1% rally of the industry it belongs to.
Sanofi Files Patent Infringement Lawsuit against Mylan for Lantus: French drugmaker, Sanofi (SNY - Free Report) has filed a patent infringement suit against Mylan for Lantus and Lantus SoloStar. The lawsuit, filed in the United States District Court for the District of New Jersey, alleges infringement of 18 patents. Although Sanofi’s diabetes product sales are under immense pressure, the Lantus franchise remains a major contributor to the top-line. Earlier this year in August, Sanofi had filed a patent infringement suit against Merck alleging infringement of two patents related to Lantus products.
Interest Increases in Pfizer’s Consumer Healthcare Business: Ever since Pfizer (PFE - Free Report) announced that it is exploring strategic options for its Consumer Healthcare business, including a full or partial separation via a spin off or sale, quite a few companies have been rumored to be interested in striking a deal. This week, British pharma major, Glaxo, was asked on its third quarter call about its interest in acquiring Pfizer’s Consumer Healthcare business.
Glaxo’s own Consumer segment has been witnessing a material slowdown in global growth across key categories with factors like pricing pressure, increasing competition and tougher emerging markets weighing on performance (Read more: Glaxo Q3 Earnings Beat, Revenues In Line, Shares Down).
Meanwhile, according to a Reuters article, Pfizer expects to start the auction process for its consumer healthcare business in November. According to sources, possible bidders apart from Glaxo and Reckitt Benckiser could include names like Procter & Gamble, Sanofi, Johnson & Johnson and Nestle.
Performance
The NYSE ARCA Pharmaceutical Index declined 3.7% this week. Among major stocks, Glaxo declined 10.9% mainly reflecting concerns about the company’s dividend payouts especially if it strikes a deal for Pfizer’s Consumer Healthcare business. Over the last six months, J&J was up 16.3% (See the last pharma stock roundup here: Beat & Raise Quarter from J&J, Allergan Hit by Restasis Ruling).
What's Next in the Pharma World?
Watch out for earnings results from companies like Merck (MRK - Free Report) and Pfizer.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Pharma Stock Roundup: Lilly Tops on All Fronts, Mixed Results from Bristol-Myers
Major pharma companies like Eli Lilly (LLY - Free Report) , Bristol-Myers Squibb (BMY - Free Report) , GlaxoSmithKline plc (GSK - Free Report) and Novartis (Read more: Novartis Q3 Earnings & Sales Top on New Drugs Strength) reported third quarter results this week. While it was a “beat and raise” quarter for Lilly, Bristol-Myers’s results were mixed.
Recap of the Week’s Most Important Stories
Lilly Tops Expectations, Mulls Options for Animal Health Segment: Lilly’s third quarter results were better than expected with the company beating on both the top- and bottom-line and raising its outlook for the year reflecting uptake trends for new pharmaceutical products.
The company also announced that it is exploring strategic alternatives for its Animal Health business (Elanco Animal Health) with an update expected by mid-2018. The company is weighing options like an initial public offering, merger, sale, or retention of the business. The segment brought in revenues of $2.3 billion so far in 2017 (Read more: Lilly Beats on Q3 Earnings, Explores Sale of Elanco). Lilly is a Zacks Rank #2 (Buy) stock - you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mixed Quarter for BMY: It was a mixed quarter for Bristol-Myers with the company missing on earnings but surpassing revenue expectations. Opdivo’s performance remained strong despite the presence of increasing competition with sales growing 38% to $1.3 billion. Eliquis also performed well. The company said that business development remains a top priority while it expects to buy back shares worth an additional $250 million by year end (Read more: Bristol-Myers Misses on Q3 Earnings, Opdivo in Focus). The company has gained 4.3% year to date, compared to the 16.1% rally of the industry it belongs to.
Sanofi Files Patent Infringement Lawsuit against Mylan for Lantus: French drugmaker, Sanofi (SNY - Free Report) has filed a patent infringement suit against Mylan for Lantus and Lantus SoloStar. The lawsuit, filed in the United States District Court for the District of New Jersey, alleges infringement of 18 patents. Although Sanofi’s diabetes product sales are under immense pressure, the Lantus franchise remains a major contributor to the top-line. Earlier this year in August, Sanofi had filed a patent infringement suit against Merck alleging infringement of two patents related to Lantus products.
Interest Increases in Pfizer’s Consumer Healthcare Business: Ever since Pfizer (PFE - Free Report) announced that it is exploring strategic options for its Consumer Healthcare business, including a full or partial separation via a spin off or sale, quite a few companies have been rumored to be interested in striking a deal. This week, British pharma major, Glaxo, was asked on its third quarter call about its interest in acquiring Pfizer’s Consumer Healthcare business.
Glaxo’s own Consumer segment has been witnessing a material slowdown in global growth across key categories with factors like pricing pressure, increasing competition and tougher emerging markets weighing on performance (Read more: Glaxo Q3 Earnings Beat, Revenues In Line, Shares Down).
Meanwhile, according to a Reuters article, Pfizer expects to start the auction process for its consumer healthcare business in November. According to sources, possible bidders apart from Glaxo and Reckitt Benckiser could include names like Procter & Gamble, Sanofi, Johnson & Johnson and Nestle.
Performance
The NYSE ARCA Pharmaceutical Index declined 3.7% this week. Among major stocks, Glaxo declined 10.9% mainly reflecting concerns about the company’s dividend payouts especially if it strikes a deal for Pfizer’s Consumer Healthcare business. Over the last six months, J&J was up 16.3% (See the last pharma stock roundup here: Beat & Raise Quarter from J&J, Allergan Hit by Restasis Ruling).
What's Next in the Pharma World?
Watch out for earnings results from companies like Merck (MRK - Free Report) and Pfizer.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>