Continue reading GlaxoSmithKline Hurt by Generic Valtrex Approval

GlaxoSmithKline Hurt by Generic Valtrex Approval originally appeared on BloggingStocks on Wed, 26 May 2010 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Teva (TEVA): Generic Gains from Health Care Reform

Teva (TEVA): Generic Gains from Health Care Reform originally appeared on BloggingStocks on Thu, 13 May 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading GlaxoSmithKline Benefits from the Flu During the Fourth Quarter

GlaxoSmithKline Benefits from the Flu During the Fourth Quarter originally appeared on BloggingStocks on Thu, 04 Feb 2010 10:20:00 EST. Please see our terms for use of feeds.

Early this morning, Societe Generale cut GlaxoSmithKline (GSK) to "sell" from "hold." The brokerage blamed the downgrade on the "looming threat" of generics to GSK's respiratory drug Advair. SocGen believes the market is "underestimating" the chances for a generic competitor to Advair in the U.S. by 2011.

Technically, the stock is facing resistance at the $40 level -- a level that has provided a hurdle in the past. Along with this potential resistance is the possibility that the equity may slip back below its 20-month moving average. This trendline has acted as resistance in the past, and now that the shares are positioned north of this trendline, it could act as support. The problem is that this trendline is in a sharp descending pattern.

It isn't all bad news for GSK, the good news is that the equity should find some support from its 10-week moving average. With this trendline providing support, any potential drop from this morning's news could be limited.

Continue reading GlaxoSmithKline downgraded by SocGen

GlaxoSmithKline downgraded by SocGen originally appeared on BloggingStocks on Thu, 10 Sep 2009 08:00:00 EST. Please see our terms for use of feeds.

Lately, the Japanese pharma industry has flexed its M&A muscle, trying to find opportunities in global markets. And, the latest deal came this week: Dainippon Sumitomo Pharma agreed to shell out $2.6 billion for Sepracor Inc. (NASDAQ: SEPR). The deal is all-cash.

Why all the interest? There are several drivers. First, the strong yen has made deals fairly cheap. Next, the Japanese market is expected to be slow because of government mandates. And finally, Japanese pharma companies are coming up against expirations of major drugs.

Continue reading Sepracor gets a healthy buyout

Sepracor gets a healthy buyout originally appeared on BloggingStocks on Thu, 03 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

Bright and early this morning, Roche Group (OTC: RHHB) announced first-half earnings and upped its annual earnings goal, thanks to impressive sales of Tamiflu. Roche's first-half profit (it only reports earnings twice) dropped 29% to $3.8 billion as the company was hit by costs related to its purchase of Genentech. That said, Roche upped its earnings guidance and forecast double-digit core earnings growth in both 2009 and 2010 -- the earlier forecast called for earnings to stay at 2008 levels.

Continue reading Roche sees solid first-half profits

Roche sees solid first-half profits originally appeared on BloggingStocks on Thu, 23 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

"Like others, I've been trying to figure out how to play President Obama's policy initiatives in healthcare," says Glenn Rogers.

The contributing editor to Internet Wealth Builder adds, "I think the generic drug makers have the best chance of coming out of the upheaval in healthcare smelling like roses." Here, he looks at one favorite: Perrigo (NASDAQ: PRGO).

"I've chosen a lesser-known generic drug maker that I think should reward investors over the next 12 months with a market-beating performance; Perrigo Company is a leading manufacturer of generic over-the-counter and prescription pharmaceuticals.

Continue reading Generic gains with Perrigo (PRGO)

Generic gains with Perrigo (PRGO) originally appeared on BloggingStocks on Thu, 09 Jul 2009 13:20:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: When 2009 highs are under-covered (BAC, ETFC, MYL, PFE, QCOM, STAA)

Closing Bell: When 2009 highs are under-covered (BAC, ETFC, MYL, PFE, QCOM, STAA) originally appeared on BloggingStocks on Thu, 11 Jun 2009 16:10:00 EST. Please see our terms for use of feeds.

In a period of economic distress, owning stocks with stable cash flows is a great way to avoid the carnage found in other parts of the market. One sector traditionally known to provide consistent cash flow to investors is the pharmaceutical industry.

Patent protection on drugs provides the industry with the ability to generate revenue unencumbered by competition. Investors generally pay a premium to own a piece of that stream -- no matter what is happening in the economy.

During the last few years, market premium for drug companies has been diminished. As drugs from the major pharmaceutical makers come off patent, revenues and cash flow suffers.

That fact explains why drug companies invest so much money on research and development. When older drugs come off patent they are replaced by a steady stream of new drugs.

What happens when that pipeline goes dry? Obviously, the company is not worth as much.

That has been the situation at Pfizer (NYSE: PFE). During the last five years, we have been hearing about a dwindling drug pipeline with no sign of abating. During that time, patents for working drugs only aged

Continue reading Pfizer 'admits' it's in trouble

Pfizer 'admits' it's in trouble originally appeared on BloggingStocks on Tue, 06 Jan 2009 11:25:00 EST. Please see our terms for use of feeds.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Teva's $7.46 billion drug deal originally appeared on BloggingStocks on Fri, 18 Jul 2008 09:45:00 EST. Please see our terms for use of feeds.

Pfizer's path forward: To generics? To biotech? originally appeared on BloggingStocks on Fri, 13 Jun 2008 13:30:00 EST. Please see our terms for use of feeds.

A graph from the May 2008 issue of Harvard Business Review tells a story about the dumbing down of the global economy.

From an article, Rebuilding the R&D Engine in Big Pharma [subscription required] the graph shows the total shareholder returns for various industries in two time periods: from 1985 to 2000 and from 2001 to 2007. Here are three of the leading sectors from 1985 to 2000 (average annual shareholder returns are in parentheses):

• Pharmaceuticals (20.0%)
• Financials (18.8%)
• IT (17.4%)

Between 2001 and 2007, three of the leading sectors were:

• Energy (15.2%)
• Materials (14.3%)
• Financials (7.0%)

Continue reading The dumbing down of the global economy

The dumbing down of the global economy originally appeared on BloggingStocks on Mon, 02 Jun 2008 17:34:00 EST. Please see our terms for use of feeds.

Chantix, an anti-smoking drug from Pfizer (NYSE: PFE), would seem to be good for people. Smoking causes heart and lung problems and who knows what else. The trouble with the drug is that it seems to cause heart problems, called cardiac arrhythmia, all on its own. That seems counter-productive.

The drug may also make some people crazy, at least to the level of causing suicide and depression in a portion of patients.

The Institute for Safe Medication Practices said, "Based on the data available now, the existing warnings are completely inadequate," according to The Wall Street Journal.

The news points to an ongoing problem in the drug industry. Big Pharma wants to get products to market fast and sell as much as it can. Many of the current drugs that get them revenue are going "off patent" and will be sold by generic drug companies. That kills most of the profits on the treatments.

But, in the race to get the drugs out, it seems that side effects are overlooked and overlooked often.

Profits versus people being sick or dead. Hard decision.

Douglas A. McIntyre is an editor at 247wallst.com. and author of the Ten Stocks Under $10 letter.

Pfizer (PFE): Another drug may harm its users originally appeared on BloggingStocks on Thu, 22 May 2008 09:50:00 EST. Please see our terms for use of feeds.

At their investor day, Teva Pharmaceutical Industries Ltd. (ADR) (NASDAQ: TEVA), the world's largest generic drug maker, said that they expect to double revenues over the next 4 years. Teva predicts that they will grow faster than the generic market. While that is interesting in its own right, their view on the generic market in general is astounding.

"By 2012, Teva expects to have 30% of the U.S. market for generic prescriptions, up from about 20% now. Over 75% of U.S. prescriptions will be filled by a generic by 2012," the company said.

Wow! Three out of every four prescriptions will be filled by a generic in just four years from now. That's huge. If that is indeed the case Big-pharma needs to look out. Where are their profits going to come from? Even the big Bio-tech players are squirming over the possibility of bio-generics.

Continue reading Teva sees strong generic growth

Teva sees strong generic growth originally appeared on BloggingStocks on Thu, 21 Feb 2008 17:31:00 EST. Please see our terms for use of feeds.

Teva Pharmaceutical Industries (NASDAQ: TEVA), the world's largest generic drug maker, yesterday announced a change in top management. George S. Barrett, Chief Executive Officer, Teva North America, Corporate Executive VP, Global Pharmaceutical Markets has resigned from the Company. William S. Marth, currently President and Chief Executive Officer of Teva USA, will replace Mr. Barrett and assume the additional role of Chief Executive Officer of Teva North America effective immediately.

Marth is no newcomer to the Israeli TEVA. He has been a key player in the launch of new drugs in recent years. He knows the organization well, and I expect business to continue as is. With a really strong pipeline for '08 and '09, yesterday's 5% drop on the news, presents an attractive entry point for investors who want to catch the generic wave and invest in the 'best of breed' company.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has a position and owns stock in TEVA and is long the stock. He has no positions in any other stock mentioned as of 1/11/08.

Management changes at TEVA: No big deal originally appeared on BloggingStocks on Fri, 11 Jan 2008 10:35:00 EST. Please see our terms for use of feeds.

Salix (NASDAQ: SLXP) has announced it will launch a generic version of its Colazal (treatment for ulcerative colitis) with Watson Pharma (NYSE: WPI). Mylan (NYSE: MYL), Apotex, and Roxane have received FDA clearance to market their own generic versions of SLXP's Colazal.

SLXP is recently down $1.01 to $8.00 in pre-open trading. Wachovia says, "Valuation range: $9 to $10."

SLXP January option implied volatility of 104 is above its 26-week average of 72 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options update 12-31-07: Salix volatility jumps on generic Colazal plans originally appeared on BloggingStocks on Mon, 31 Dec 2007 08:55:00 EST. Please see our terms for use of feeds.

Continue reading For Teva Pharmaceutical, generic is designer chic

For Teva Pharmaceutical, generic is designer chic originally appeared on BloggingStocks on Thu, 27 Dec 2007 17:13:00 EST. Please see our terms for use of feeds.

Teva Pharmaceuticals (NASDAQ: TEVA) raised its guidance for '07 after Teva launched a generic version of Wyeth (NYSE: WYE) Protonix over the weekend, to the apparent surprise of Wyeth management. It's clear that Teva must have started shipping the drug, and that's why it is raising guidance. Goldman Sachs analyst Randall Stanicky reaffirmed a "Buy" rating on Teva, saying the launch was unsurprising and the company has likely already shipped a decent amount of the generic drug to pharmacies.

This is just the latest in a long line of setbacks for big pharma, as generics continue to scoop up market share of drugs that come off patent. Teva, as the world's leading generic company, continues to grow and has a great pipeline for '08, and as a result the stock should continue climbing as well.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has a position in TEVA and is long the stock. Writer has no position in any other stock mentioned as of 12/24/07.

Teva launches generic of Wyeth's Protonix, raises guidance originally appeared on BloggingStocks on Wed, 26 Dec 2007 08:45:00 EST. Please see our terms for use of feeds.

Continue reading Novartis plans 2,500 more job cuts in reaction to generic drug war

Novartis plans 2,500 more job cuts in reaction to generic drug war originally appeared on BloggingStocks on Thu, 13 Dec 2007 14:56:00 EST. Please see our terms for use of feeds.

Friday's news that the Israeli generic drug maker Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA), has received tentative approval from U.S. health regulators to market its generic version of GlaxoSmithKline Plc's (NYSE: GSK) Requip (Ropinirole HCl) tablets is just more proof that for investors, generics are the way to go. The tablets treat idiopathic Parkinson's disease and primary restless leg syndrome. The brand product had annual sales of approximately $455 million in the United States.

The bigger fundamental question has to do with the future of "big pharma"? Certainly companies like Merck and Co. (NYSE: MRK) and GlaxoSmithKline aren't going away anytime soon. The question is over the long run, with drug's continuously coming off patent, where is the growth going to come from? Generic makers like Teva (the world's largest generic firm) keep waiting for drugs to come off-patent, get approval to market a generic version, and immediately take significant market share away from the big pharma company. (Check out Zack Miller's analysis of this and other generic trends.) According to a report published by PriceWaterhouseCooper, by 2020 the pharmaceutical market is anticipated to more than double to US$1.3 trillion, but with weak pipelines, and soaring R&D costs, as well as higher legal costs, the big-pharma industry is at a crossroads.

Until we hear of a real long-term growth plan for big pharma, it seems like the best way to play the surging growth in he pharmaceutical market is to buy the generics.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer owns stock and is long TEVA. He has no position in any other stock mentioned as of 12/2/07.

Big pharma? Generics are the way to go originally appeared on BloggingStocks on Sun, 02 Dec 2007 13:10:00 EST. Please see our terms for use of feeds.