Organovo, a biotechnology company focused on "changing the shape of medical research and practice," has made leaps and bound in the area of 3D printing and biotech through bioprinting human tissue.
Top 5 Biotech Stocks To Buy Right Now: Biogen Idec Inc(BIIB)
Advisors' Opinion:- [By Ben Levisohn]
Two posts looked at the impact of Tesla Motors’ (TSLA) bid for SolarCity (SCTY), while two more looked at the surge in Biogen (BIIB) shares due to takeover speculation.
- [By Ben Levisohn]
Recovery in the latter half of the year could be driven by several major data readouts. Although we expect fewer drugs to be approved in 2016 vs. 2015, the pace of major data readouts should pick up in 2H16. We believe that large cap stocks will once again lead the way, with Celgene reporting data from with 18 Phase III trials ($20bn peak sales) starting with the REMARC and RELEVANCE (Revlimid in DLBCL & FL) studies in 3Q16 and 1H17. We also expect Amgen to report data in 4Q16 from the 27,500 patient CV outcomes trial of its cholesterol lowering drug Repatha ($5-7bn) and Gilead to report pivotal Phase II data in 4Q16 for simtuzumab for NASH (>$10bn). We expect Biogen (BIIB) shares to take direction from two earlier stage data readouts, with Phase 1/2 data for opicinumab (MS) in mid-2016 and aducanumab (Alzheimer��s) in 4Q16, as each could support peak sales >$10bn.
- [By Johanna Bennett]
The earnings season for Big Biotech kicks of later this month when Biogen (BIIB) unveils second quarter financial results on July 21. But will those reports be enough to reverse the negative sentiment surrounding the sector?
The biotech analyst team at Cowen expects strong earnings driven by ,solid demand, an open pricing environment in the U.S. and a currency tailwind. But, they warn,�� the sector ��may lack sizzle.��
��Steady financial performance in the absence of an exciting new product cycle may not be enough to overcome negative sentiment toward the group��Investors are increasingly of the view that biotech fundamentals have deteriorated. They cite disappointing drug launches, a lack of pipeline catalysts, heightened payor pressures, and earnings growth that appears more dependent on financial engineering. While we admit that biotech is lacking an exciting new product cycle, we are not aware of any changes to the drug development process or commercial landscape that could have altered the industry’s fundamental value proposition. Rather we suspect that poor stock performance and investor sentiment may be engendering a “glass half empty” view toward fundamentals that are largely unchanged relative to a year ago when investors were touting biotech for its innovation cycle and increased R&D productivity. Earnings are the most objective metric for gauging performance, and we expect Q2 to support the notion that biotech’s growth outlook and value proposition remain favorable relative to other sectors. As such, Q2 should provide the sector with a firmer level of support. However, more substantial upside is likely to be dependent on a change in sentiment, which is subjective and always difficult to predict in terms of timing.
Which names are the best plays?
According to Cowen, names with the potential to report Q2 results in excess of consensus include Acorda Therapeutics (ACOR), Alexion (ALXN), Biogen,
- [By Ben Levisohn]
Johnson & Johnson (JNJ) now has a market cap of $308 billion dollars, just a smidgen less than that of Gilead Sciences (GILD), Biogen (BIIB), Mylan (MYL), Celgene (CELG) and Teva Pharmaceutical Industries (TEVA) combined. It’s time to sell, says Standpoint Research’s Ronnie Moas:
Top 5 Biotech Stocks To Buy Right Now: Medivation Inc.(MDVN)
Advisors' Opinion:- [By Ben Levisohn]
Last night, Bloomberg reported that Sanofi (SNY) had made a bid for Medivation (MDVN) but had been rebuffed, while noting that other companies–perhaps Gilead Sciences (GILD), Amgen (AMGN) or AstraZeneca (AZN)?–were also on the prowl. SunTrust Robinson Humphrey’s Peter Lawson explains why Medivation might be biotech’s most wanted:
- [By Ben Levisohn]
RBC’s Simos Simeonidis and Matthew Eckler try to find the right comparison for Pfizer’s (PFE) purchase of Medivation (MDVN):
Scott Eisen/Bloomberg NewsWe were obviously wrong with our Sector Perform rating: while we knew an M&A transaction was definitely a good possibility, we just could not get to this level of valuation using a realistic Xtandi model and thus could not recommend the stock. The only way for us to get to $81.50 (or even to $60-$70/share) would have been to assign very significant value to talazoparib. And we could not do that given the amount of available clinical evidence.�Medivation shareholders who held on to their shares past the $50′s, did just that, were proven right and are now rewarded for it, since they believed that someone would be willing to pay for this asset just months ahead of Phase III data. The key question is why would a company be willing to part with what they claim/think may be a multibillion dollar drug that works in multiple cancers. We believe the obvious answer is because they’re smart and understand drug development risk better than most. We’ll know in a matter of months whether Pfizer/Medivation is like Amgen (AMGN)-Onyx (carfilzomib) or not.
- [By Scott Rubin]
Big gainers on the day included Intersil Corp (NASDAQ: ISIL), which jumped 20 percent on news of a buyout, and Medivation (NASDAQ: MDVN), which added 20 percent on a deal with Pfizer (NYSE: PFE) related to its cancer drug. Cotiviti Holdings Inc (NYSE: COTV) lost around 9 percent in the wake of a mid-day sell-off and Marathon Oil Corporation (NYSE: MRO) fell 7 percent in the wake of a management shakeup.
- [By Ben Levisohn]
Well, it looks like Medivation (MDVN) now has five suitors after reports that Amgen (AMGN) is joining Pfizer (PFE), Sanofi (SNY), AstraZeneca (AZN) and Novartis (NVS) in considering a bid. Maxim’s Jason Kolbert and Jason McCarthy offer their thoughts:
Medivation reports tonight at 4:30pm…
We expect the focus to be on the recent proposals from Sanofi (SNY $38.75- NR); Pfizer (PFE $33.40 -NR), AstraZeneca (AZN $28.26-NR) and just today, Amgen (AMGN – $154.18 – NR)…
Medivation is returning to new highs as suitors line up to make acquisition bids. In this scenario what is the right discount rate for modeling purposes?
We believe our model for Xtandi revenues is good, therefore we review our risk rating and determine the following: �� 30% = $47 �� 15% = $76 �� 10% = $99
With Medivation’s board having now said No to anything less than $65 per share, it suggests to us that the stability and predictability of Xtandi’s revenues is greater than we thought, the risk is lower. Our intermediate risk rating is 15% or $76 fair value.
Shares of Medivation rose 0.3% to $59.22 today, while Pfizer gained 0.5% to $33.56, Sanofi fell 0.5% to $39.07, AstraZeneca dropped 0.6% to $39.07, Novartis declined 0.3% to $74.12, and Amgen ticked up 0.1% to $154.25.
Top 5 Biotech Stocks To Buy Right Now: Amgen Inc.(AMGN)
Advisors' Opinion:- [By Bioassociate Consulting]
Focused on development and commercialization of products for the aesthetic medicine market, Kythera is led by a highly experienced management team, boasting impressive record in the pharmaceutical industry and the aesthetic medicine market, as former Allergan (AGN) and Amgen (AMGN) executives. Kythera has been flying under the radar since its October 2012 IPO, and the successful completion of the Phase III program is expected to bring KYTH to the front, and in our opinion, makes it a buyout target.
- [By Ben Levisohn]
Biotech stocks��Regeneron Pharmaceuticals (REGN),�Biogen (BIIB),�Amgen (AMGN) and Celgene (CELG), among them��have staged nice rallies during the past three months but are still down for 2016. Now, Piper Jaffray’s Joshua Schimmer and team ask: “What’s the trade for the rest of the year?” They answer their own question:
- [By Craig Jones]
On CNBC's Options Action, Carter Worth analyzed Amgen, Inc. (NASDAQ: AMGN) from a technical standpoint.
He said that the stock consistently outperformed iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB), which is in his opinion a basis for a bullish setup. Worth believes the stock is going to break out on the upside and reach its highs at $181.
- [By Benzinga News Desk]
USA GDP (QoQ) for Q3 2.90% vs 2.50% consensus estimate. The prior reading was 1.40%.
The University of Michigan's consumer sentiment index for October will be released at 10:00 a.m. ET. The Baker Hughes North American rig count for the latest week is schedule for release at 1:00 p.m. ET. BZ News Desk Focus ExxonMobil (NYSE: XOM) Reports Q3 EPS $0.63 vs $0.58 Est., Sales $58.68B vs $61B Est. Mastercard (NYSE: MA) Reports Q3 EPS $1.08 vs $0.98 Est., Sales $2.9B vs $2.75B Est. Amazon (NASDAQ: AMZN) Reports Q3 GAAP EPS $0.52 vs. Est. $0.78 May Not Compare, Rev. $32.7B vs. Est. $32.69B Baidu (NASDAQ: BIDU) Reports Q3 Adj. EPS $1.49 May Not Compare to $0.88 Est., Sales $2.74B vs $2.71B Est. Alphabet (NASDAQ: GOOGL) Reports Q3 EPS $9.06 vs. Est. $8.64, Rev. $22.45B vs. Est. $22.05B Phillips 66 (NYSE: PSX) Reports Q3 Adj. EPS $1.05 vs $0.88 Est. Anheuser-Busch (NYSE: BUD) Reports Q3 EPS $0.83 vs $1.08 Est; Revenue $11.109B vs $11.50B Est Hershey (NYSE: HSY) Reports Q3 Adj. EPS $1.29 vs $1.19 Est., Sales $2B vs $2B Est. Amgen (NASDAQ: AMGN) Reports Q3 non-GAAP EPS $3.02 vs $2.79 Est, Rev $5.8B vs $5.73B Est Xerox (NYSE: XRX) Reports Q3 Adj. EPS $0.27, Inline, Sales $4.2B vs $4.31B Est. Sell-Side ThemesWorld Wrestling Entertainment (NYSE: WW) received a pair of downgrades after its earnings report came in below estimates.
- [By Keith Speights]
Amgen (NASDAQ: AMGN ) is another company that's probably keeping track of what's going on. The more successful Keryx is with Zerenex, the fewer possible sales for Amgen's Epogen. �
- [By Michael Flannelly]
At Bank of America Merrill Lynch’s Global Healthcare Conference on Friday, Amgen, Inc.’s (AMGN) Investor Relations VP Arvind Sood suggested that the biotech company could boost its dividend meaningfully through 2015.
Sood believes that the company will be able to deliver significant EPS growth over the next two years. This is partially due to Amgen’s deal to acquire Onyxx Pharmaceuticals, which should be accretive to adjusted profit growth. As such, Sood said he sees Amgen boosting its dividend over that time frame, with a payout ratio of 75% to 80%. For more on payout ratios, see The Truth About Dividend Payout Ratio.
By 2017, Sood believes that Amgen will hit global sales of $41 billion.
Amgen shares were up 54 cents, or 0.48%, during pre-market trading on Friday. The stock is up 31.62% year-to-date.
Top 5 Biotech Stocks To Buy Right Now: ARIAD Pharmaceuticals Inc.(ARIA)
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Gainers Corrections Corp Of America (NYSE: CXW) shares rose 16.3 percent to $16.50 in pre-market trading following Donald Trump's victory. SAExploration Holdings, Inc. (NASDAQ: SAEX) shares rose 15.4 percent to $7.26 in pre-market trading after the company reported a new $35 million deep water ocean-bottom marine project award. The GEO Group Inc (NYSE: GEO) shares rose 12.9 percent to $26.95 in pre-market trading following Donald Trump's victory. Cloud Peak Energy Inc. (NYSE: CLD) rose 12.3 percent to $7.40 in pre-market trading after gaining 0.30 percent on Tuesday. Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA) rose 11.7 percent to $10.35 in pre-market trading. Ariad Pharmaceuticals disclosed that its Phase 1/2 trial data on investigational drug brigatinib were published in The Lancet Oncology. AK Steel Holding Corporation (NYSE: AKS) rose 11.2 percent to $6.75 in pre-market trading after gaining 3.23 percent on Tuesday. Pretium Resources Inc (NYSE: PVG) rose 11 percent to $10.50 in pre-market trading after declining 1.66 percent on Tuesday. First Majestic Silver Corp (NYSE: AG) rose 9.3 percent to $8.90 in the pre-market trading session. First Majestic reported Q3 earnings of $0.07 per share on revenue of $79.3 million. Silver futures gained 2.2 percent to $18.77 an ounce. Dicerna Pharmaceuticals Inc (NASDAQ: DRNA) rose 9.2 percent to
Top 5 Biotech Stocks To Buy Right Now: Alnylam Pharmaceuticals Inc.(ALNY)
Advisors' Opinion:- [By Monica Gerson]
Caterpillar Inc. (NYSE: CAT) Jan17 77.5 Calls Sweep: 1022 @ ASK $4.45: 1066 traded vs 2466 OI: Earnings 7/28 $75.88 Ref Anacor Pharmaceuticals Inc (NASDAQ: ANAC) Jan17 110 Calls: 500 @ Above Ask! $0.40: 509 traded vs 1860 OI: $99.22 Ref Ctrip.com International, Ltd. (ADR) (NASDAQ: CTRP) Jun16 41.25 Calls Sweep: 577 @ ASK $1.75: 649 traded vs 1927 OI: Earnings 6/15 After Close $40.54 Ref Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) Jun16 65.0 Calls Sweep: 749 @ ASK $1.85: 813 traded vs 370 OI: $63.08 Ref WhiteWave Foods Co (NYSE: WWAV) Oct16 50.0 Calls: 600 @ ASK $1.60: 601 traded vs 430 OI: $45.16 Ref
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.Posted-In: Unusual Put OptionsNews Options Markets
- [By Paul Ausick]
Alnylam Pharmaceuticals Inc. (NASDAQ: ALNY) lost about 50% Thursday to post a new 52-week low of $35.31 after closing Wednesday at $70.30. The 52-week high is $110.75. Volume of around 15 million was more than 20 times the daily average of around 640,000 shares traded. The company said today that it is discontinuing a late-stage clinical trial.