Safety and efficacy data are critical to drug candidates. But what really makes a potential drug attractive is strong top-line data, a new biotech-based treatment, and a massive potential market.
With help from Thomson Pharma and our own backlog of coverage, BioHealthInvestor.com, a 247wallst.com website, sought to find the most promising biopharmaceutical candidate from both biotech and pharmaceutical companies in each of the top 10 most prevalent medical conditions in the U.S. Read More
These are ten of the top analyst upgrades and downgrades that are independent of earnings news from Wall Street this Thursday morning:
ABB (ABB) Cut to Hold at Societe Generale.
Air Products (APD) Raised to Buy at Citigroup.
BP plc (BP) Raised to Buy at RBS.
Brocade Communications Systems (BRCD) Raised to Buy at Jefferies.
Nordic American Tanker (NAT) Cut to Sell at Cantor Fitzgerald.
Overseas Shipholding (OSG) Cut to Hold at Cantor Fitzgerald.
OmniVision (OVTI) Raised to Overweight at JPMorgan.
Teva (TEVA) Started as Buy at Jefferies.
Trimble Navigation (TRMB) Raised to Outperform at William Blair.
Webster Financial (WBS) Cut to Underperform at FBR.
JON C. OGG
These are the top pre-market analyst upgrades and positive research calls from Wall Street we have seen this Wednesday morning with more than two hours until the market opens:
Jon C. Ogg
February 25, 2009
According to Reuters, a poll of economists says the Japanese economy is likely to get worse.
Reuters reports that Trump Entertainment may file for Chapter 11.
Reuters writes that California may have to lay off 20,000 people. Read More
It is getting rather thin in analyst coverage, but these are the top ten analyst upgrades and downgrades we have seen this Wednesday morning:
Jon C. Ogg
December 17, 2008
Below are some of the top analyst calls we are seeing from Wall Street firms this Thursday morning:
Jon C. Ogg
September 25, 2008
These are some of the early bird analyst upgrades and positive calls we are seeing this Thursday morning with more than two hours to the open:
Jon C. Ogg
September 11, 2008
These are only some of the early bird analyst calls that we have seen in early Monday pre-market trading, but these are some of the more active stock names:
Jon C. Ogg
July 21, 2008
According to Reuters, global companies may start to issue profit warnings as business slows overseas.
Reuters reports that InBev is sticking to it offer to buy Anheuser-Bush (BUD).
Reuters reports that Chrysler is shutting minivan plants.
Reuters writes that financial executives are still looking for companies that they can buy cheap and improve.
Reuters reports that Lehman (LEH) rose after Morgan Stanley gave the brokerage a positive rating.
Reuters reports that Florida has sued Countrywide over its mortgage practices.
Reuters reports that Ford (F) was in talks to sell Volvo to Renault.
The Wall Street Journal writes that federal authorities want the names of UBS (UBS) clients who may have used the bank to dodge taxes.
The Wall Street Journal writes that Sirius (SIRI) put out financial forecasts for the firm once it combines with XM Radio (XMSR).
The Wall Street Journal writes that the US corn crop is mostly intact even after Midwest flooding.
The Wall Street Journal reports that UBS is likely to issue another profit warning.
The Wall Street Journal writes that Starbucks (SBUX) new coffee has attracted new customers and some critics.
The Wall Street Journal reports that Ford (F) is trying to maintain the vitality of its flagship product, the F-Series pick-up.
The Wall Street Journal reports that Teva (TEVA) has begun to ship a generic version of schizophrenia treatment Risperdal.
The New York Times reports that the Saudi Khurais oil field, one of the largest in the world, may not do as well as many had hoped.
The New York Times writes that business activity in the Midwest remained weak in June.
The FT reports that Warner Music (WMG) has signed up for Nokia’s (NOK) music service.
Bloomberg reports that Eli Broad says the current recession is the worst since WWII and believes the housing market will not recover for years.
Bloomberg writes that Bank of America (BAC) will pay about one-third less for Countrywide (CFC) than it had planned.
Douglas A. McIntyre
These are ten of the analyst calls we have seen in the early hours of trading this Monday morning:
Jon C. Ogg
June 30, 2008
One key stock to watch next week is Pfizer Inc. (NYSE: PFE). While it has been in the land of the boring forever, watchers are looking to see if it will put in a rival bid over the $4.6 Billion Daiichi Sankyo bid from Japan for a majority stake in India’s number one generic drug maker Ranbaxy.
Speaking of Generics, Teva Pharmaceutical Industries (NASDAQ: TEVA) was weak all week after Mylan Inc. (NYSE: MYL) has signed a pact with India’s NATCO Pharma Ltd. to produce a generic version of Teva’s multiple sclerosis treatment called Copaxone. As this was an old favorite buy in generic investor hearts you can imagine this will be covered frequently this next week since the stock is now 15% off of its highs and closer to a 52-week low.
We know that Invitrogen (NASDAQ: IVGN) is buying Applera’s Applied Biosystems (NYSE: ABI) unit. But what about Celera Group (NYSE: CRA)? Traders may be looking for the "next merger candidate"and that might fit logically.
China Medical Technologies Inc. (NASDAQ: CMED) went up big on earnings news this last week and continued to rise even by the end of the week further than the initial reaction. Technicians may have this one on a momentum screen now.
Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI) may be of interest after it showed some positive stent data, and its launch of QUILL may all help the perceptions next week on this small molecule company.
It’s always good to know what short sellers are targeting. The last short selling report showed a huge drop off in the short interest compared to prior reports in large cap biotech stocks like Amgen Inc. (NASDAQ: AMGN), Biogen Idec Inc. (NASDAQ: BIIB), Celgene Corporation (NASDAQ: CELG), and others. FULL SHORT INTEREST DETAILS HERE.
Intuitive Surgical Inc. (NASDAQ: ISRG) was defended by William Blair this last week and shares managed to rally during the week after that news was out. After seeing a 3-month low traders may focus here next week as a short bottom fishing attempt.
Vivus Inc. (NASDAQ: VVUS) is hanging tough after a huge gap up in its QNEXA treatment for obesity and for diabetics. Shares barely closed down on the week, rather impressive for a small cap with a history of not holding gains. Traders will definitely be keeping their radar eyes on this one for opportunities to buy it up or short it.
Lastly, there was a lot of news on the rheumatoid arthritis front with many companies delivering solid data for drug studies in the debilitating area from companies such as Abbott Laboratories, Array, Eli Lilly, Incyte, J&J, Schering-Plough, and Roche. Much of the news seems overlooked by the end of a summer week, so watch these for next week. Solid Developments for Rheumatoid Arthritis (ABT, ARRY, LLY, INCY, JNJ, SGP, RHHBY)
Jon C. Ogg
June 14, 2008
Here are some of the top stories today that affecting key drug and biotech stocks:
GlaxoSmithKline (NYSE: GSK) reorganized its corporate structure, increasing focus on emerging markets such as China, Russia, Brazil, India and the Middle East. New CEO Andrew Witty, who will take over on May 22, approves the moves. Shares are down $0.25 to $44.64 in mid-day trading. The 52-week range is $40.51 to $58.23.
Merck (NYSE: MRK) down slightly despite news Monday that they are to cut 1,200 sales jobs to cut costs. Yesterday, shares dropped $0.47. Shares are down $0.13 to $38.85 in mid-day trading on thin volume. The 52-week range is $36.80 to $61.62.
Obagi Medical Products, Inc. (NASDAQ: OMPI) dropping over 20% today after earnings reported Monday missed Street estimates. The skin care products maker showed a profit of $3 million for EPS of $0.13. Thomson analysts estimated $0.18 EPS. The company also reduced its yearly outlook. Shares are down $1.81 to $6.98, grazing new lows. The 52-week range is $6.80 to $25.60.
StemCells Inc. (NASDAQ: STEM) sinking after first quarter earnings were reported this morning. They showed a net loss of $6.5 million or -$0.08 EPS, wider that -$0.06 EPS in 2007. Shares are down over 5% to $1.58. The 52-week range is $1.00 to $2.69.
Teva Pharmaceuticals (NASDAQ: TEVA) reported solid first quarter earnings that beat estimates. Excluding a large charge for the $382 million acquisition of CoGenesys, Teva showed a net income of $529 million or $0.64 EPS, beating estimates of $0.63 EPS. Shares are down marginally to $46.49. The 52-week range is $38.13 to $50.00.
Vanda Pharmaceuticals, Inc. (NASDAQ: VNDA) shares are dropping today after rising almost 40% yesterday after reporting narrower first quarter losses last Thursday, beating expectations. Also yesterday, Caris initiated coverage on the company with a “Buy” rating and a $22.00 price target, specifically citing the expectation that schizophrenia treatment Fanapta, will gain regulatory approval in July. Today, shares are down over 6% to $5.10 on unusually high trading volume. The 52-week range is $2.70 to $22.49.
Rachel Lopez
May 6, 2008
Bentley Pharmaceuticals Inc. (NYSE: BNT) will be purchased by Teva Pharmaceutical Industries (NASDAQ: TEVA) for $360 million. Bentley shareholders will receive $15 per share and an undisclosed amount of shares in CPEX Pharmaceuticals, a drug-delivery Bentley spin-off. Bentley sells about 130 products in Spain and the transaction will allow Teva to meet its strategic Spain target. Bentley is up 15% to $15.70 on a 52-week range of $8.06 to $15.89. Teva is up marginally, almost 2% to $46.81 on the announcement. Their 52-week range is $35.90 to $50.00.
BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) announced Friday they are to begin Phase III late stage studies for their “Viagra for Women” treatment, LibiGel, which attempts to remedy a loss of libido in women. Shares are not stimulated, down by $0.55, a 12% drop, to $4.13. The 52-week range is $2.05 to $8.00.
Nucryst Pharmaceuticals Corporation (NASDAQ: NCST) up over by over $0.60, a whopping 60% jump, to $1.64 in mid-day trading on new news. Friday, the stock dropped $0.50 to a new 52-week low. This volatile infection and inflammation biotech company has a 52-week range of $1.01 to $1.85.
Repros Therapeutics (NASDAQ: RPRX) reported some interim safety results from its ongoing One-Year open label study of its Proellex(R) for the indicated treatment of uterine fibroids. Its shares are up 2.4% today. We just covered this one in our weekly "10 Stocks Under $10" subscriber newsletter this morning ahead of the news. It’s still under that $10.00 threshold, for now.
Vertex Pharmaceuticals Inc. (VRTX) and their hepatitis C competitor, Schering-Plough, released clinical data on their respective drugs today. Schering-Plough’s drug, boceprevir, did not stack up to Vertex’s previously presented similar clinical data, hinting that Schering-Plough may not be as big as a competitor in the market as previously expected. Paired with positive results on Vertex’s drug, the stock is up almost 20% to $22.34 in mid-day trading. The 52-week range is $19.99 to $22.61.
Rachel Lopez
March 31, 2008
Below are the top 10 analyst calls we are focusing on this morning:
Jon C. Ogg
March 14, 2008
Teva Pharmaceutical (NASDAQ: TEVA – News) has some pretty loft goals for itself at its Investor Day presentation. If you trust the company’s history and its pipeline of candidates under trials and under pending FDA review, these goals are attainable.
Teva has presented the results of its strategic review and identified its growth and long term goals of doubling the size of its business by 2012, and generating revenues of $20 billion and net income margins exceeding 20%.
What is both interesting and intriguing about Teva is that while it has its Copaxone for MS, it has become essentially the largest clearing house for generics out there. Regardless of who wins the US presidential election, all indications point to generic drugs winning in a world where Big Pharma drug companies, and even some biotechs, have been under fire for pricing.
Teva’s current market cap is just over $37 Billion. Teva had already given 2008 and 2009 guidance that is in-line with today’s growth, and it also recently bumped up its dividend. At the time, Teva said expected net sales for 2008 to be roughly $10.75 billion with earnings between $2.60 to $2.75 on non-GAAP EPS. For 2009, it had also reiterated guidance of greater than $3.00 EPS.
Teva shares are up almost 1% this morning at $48.35 and the 52-week trading range is $34.52 to $50.00. Analysts have an average price target of just under $52.00 on the stock.
Jon C. Ogg
February 21, 2008
Teva Pharmaceuticals (NASDAQ: TEVA) posted earnings at $0.69 EPS on revenues of $2.58 Billion; First Call had consensus at $0.66 EPS on $2.48 Billion in revenues.
There are some big numbers ahead for Teva if it sees approvals on its generics: Teva had 160 applications awaiting final FDA approval, and the brand names for the generic drugs had annual U.S. sales of some $101 Billion; it also noted that it was first-to-file on what would be some $40 Billion in annual U.S. brand drug sales.
Gross profit margin reached 52.3 percent in Q4-2007. As of December 31, 2007, Teva’s cash and equivalents were listed as $3.3 billion and shareholders equity reached $13.7 billion. Teva also raised its dividend by about 12% to roughly $0.124 after currency conversions.
Its total shares outstanding were listed as 834 million shares, and it sees some 837 million shares being the "going forward" share count.
Jon C. Ogg
February 12, 2008
These are not the only analyst impact calls, but these are the top research notes that 247WallSt.com is focusing on:
Jon C. Ogg
December 18, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.
Bear Stearns Upgrades PCAR to outperform.
Think Equity downgrades YHOO to accumulate.
LXK cuts guidance for Q2.
TEVA upgraded to outperform at Bear Strearns.
ESV downgraded to underperform at Credit Suisse.
GOOG target upped to $700 at Think Equity.
TYC downgraded to sell at Citi.
Douglas A. McIntyre
AGN started as Buy at Jefferies.
AW started as Outperform at Credit Suisse.
BAY started as Overweight at JPMorgan.
CACH cut to Neutral at Merriman Curhan Ford.
CIEN started as Outperform at Piper Jaffray.
CPNO started as Outperform at Morgan Keegan.
EPD started as Outperform at Morgan Keegan.
EPE started as market perform at Morgan Keegan.
ETE started as Outperform at Morgan Keegan.
ETP started as Outperform at Morgan Keegan.
GILD cut to Neutral at Credit Suisse.
IMA started as Buy at Stifel Nicolaus.
JCI raised to Outperform at Credit Suisse.
KMP started as Outperform at Morgan Keegan.
KSE raised to Neutral at Credit Suisse.
LOOP started as Buy at Sun Trust Robinson Humphrey.
MNT started as Buy at Jefferies.
NTEC started as Outperform at Rodman & Renshaw.
ORBC started as Outperform at CIBC.
RSG started as Outperform at Credit Suisse.
SINT cut to Hold at Stifel Nicolaus.
TEVA raised to Outperform at Credit Suisse.
VLTR cut to Sector Perform at CIBC.
VRUS started as Buy at B of A.
WMI started as Outperform at Credit Suisse.
Jon C. Ogg
June 6, 2007
Mylan Labs (MYL-NYSE) is seeing its shares take a beating because it is acquiring Merck KGaA’s generic unit and Mylan is the acquirer in what is a very leveraged buyout. It isn’t just the fact that there will be dilution, it’s the fact that the leverage today and tomorrow is going to be a large burden for years ahead. This also just took away almost any shot that Mylan Labs could ever be considered a potential takeover target itself.
The company is taking 2 steps back to jump 6 steps forward and the 6 steps forward won’t come for several years. This merger is supposed to be dilutive to earnings in year one, earnings neutral the following year and won’t be accretive to earnings until year three. The value of the acquisition is a massive sum of $6.6 Billion in cash.
Mylan has a market cap of $4.4 Billion and its Q4 sales data is still outstanding with results due in 10 days. Wall Street estimates put the current salesat roughly $1.6 Billion, so its price/sales ratio is about 2.75 after today’s 10% stock drop. Merck KGaA’s generic unit had $2.4 Billion in its last fiscal sales, so based on a $6.6 Billion price tag this also gives the Merck KGaA a 2.75-times sales value. Mylan isn’t overpaying on any ratios per se, except that it will be leveraging its balance sheet drastically because it will need to have more share sales and will need to issue more debt to cough up $6.6 Billion.
Teva Pharmaceuticals (TEVA-NASDAQ) trades at roughly 3.6-times sales with its approximate $30 Billion market cap and was deemed a competing bidder for the unit, and it essentially said the deal at the Mylan price didn’t make financial sense for it to pursue.
Mylan is at least skipping the private equity cycle and offering existing and new shareholders the long-term leverage and upside. If you owned Mylan prior to today, you see that the cost for this is at least a 10% haircut off the top. Private equity firms are looking for more than 10% gains over the long-haul, so hopefully the Mylan equity holders pre-LBO are understanding and can see the long-term picture.
Jon C. Ogg
May 14, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
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