Issue #15: Healthcare Earnings, Cardinal Health/Becton Dickinson Acquisitions and Clinical Trial Updates

INO Health & Biotech Stock Guide

Issue #15

BIOTECH, HEALTH & PHARMA NEWS

Healthcare sector earnings are underway and thus far overall earnings have been robust overall with pockets of softness. From the health insurer side, UnitedHealth (UNH) beat on both EPS and revenue with revenue coming in at a 9.4% year-over-year growth. From the pharmaceutical supply chain, Cardinal Health (CAH) beat on EPS, missed on revenue and disappointed investors when they offered a softer outlook for fiscal 2017 and 2018. This set off a sell-off in the pharmaceutical supply chain stocks. In the biotech space, AbbVie (ABBV) beat on both EPS and revenue with revenue coming in at 9.7% year-over-year growth, Celgene (CELG) beat on EPS and missed on revenue, however revenue came in at a 17.9% increase year-over-year, Regeneron (REGN) missed on EPS, but beat on revenue with a 10% year-over-year growth, Amgen (AMGN) beat on EPS however missed on revenue with a year-over-year decline of 1.3%. In the pharmacy and PBM side, CVS Health (CVS) beat on both EPS and revenue with a 3.0% year-over-year increase and Walgreens (WBA) met EPS and missed on revenue with a year-over-year decline of 2.4%. As Q1 comes to a close, it appears the healthcare cohort has some softness in the pharmacy and pharmaceutical supply chain spaces however biotech and health insurers have posted robust revenue growth.

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Issue #14: Walgreen and Rite Aid Deal, Eli Lily and Incyte Fail and NASH Market Heating Up

INO Health & Biotech Stock Guide

Issue #14

BIOTECH, HEALTH & PHARMA NEWS

The proposed Walgreens Boots Alliance, Inc. (NASDAQ:WBA) and Rite Aid Corporation (NYSE:RAD) deal continues to be drawn out and increasingly tumultuous between the companies involved and federal regulators. Recently,  Rite Aid and Fred's Inc. (NASDAQ:FRED) shares dropped amid talk the Federal Trade Commission is leaning towards filing a lawsuit seeking to block Walgreens' planned acquisition of Rite Aid. In December of 2016, the companies announced an agreement to sell 865 stores to Fred’s for $950 million in cash. Earlier this year, Walgreens and Rite Aid agreed to divest more stores, boosting the number to 1,200 and to reduce their merger price.

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Immunotherapy Showing Potential Promise - Immunotherapy ETF

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Immunotherapy has emerged as a new potential frontier in treating a variety of diseases. Immunotherapy has risen to national attention via being showcased on the front cover of Time magazine in 2016 (Figure 1). Now, immunotherapy has been thrust into the forefront as an emerging and exciting therapeutic area that has experienced massive growth in terms of potential pipeline candidates across all capitalization biotech companies. Immunotherapy ushers in a new class of potentially promising therapies by harnessing the body’s immune system to recognize and eradicate debilitating diseases, specifically cancer and chronic viral infections. This immunotherapy approach may inevitably result in a paradigm shift from traditional medical intervention. Immunotherapy possesses holistic attributes by harnessing the body’s immune system to contend with or in some cases prevent disease. In addition to the holistic aspects, immunotherapy has been shown to have a favorable side effect profile and best-in-class efficacy across many different disease states. These therapies may provide a powerful technology to contend with a host of diseases, and in a future state, may potentially serve as a preventative technology similar to a traditional vaccine. Immunotherapy has evolved into many different classifications with differing modalities over the past several years, which has given rise to a growing number mid and small-cap biotechnology companies with potential investment opportunities via an immunotherapy ETF. In late 2015,Loncar Cancer Immunotherapy launched the Loncar Cancer Immunotherapy ETF (NASDAQ:CNCR) and provided investors with an opportunity to invest in this unique cohort.

Time Magazine Immunotherapy Cover
Figure 1 - TIME magazine cover showcasing immunotherapy and its potential in treating disease

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Issue #13: Icahn's Bristol-Myers Stake, Biotech Cohort Rallies and Eli Lilly's CEO Speaks

INO Health & Biotech Stock Guide

Issue #13

BIOTECH, HEALTH & PHARMA NEWS

Ever since President Trump met with a group of pharmaceutical executives at the White House, the entire biotech cohort has witnessed a resurgence as of late. This meeting was perceived as a positive interaction between the nascent government and the industry on a whole. This coincides with a consortium of big pharma companies joining forces to address transparency on drug price increases. Allergan (AGN), J&J (JNJ), Novo Nordisk (NVO), Merck (MRK) and AbbVie (ABBV) have committed to limiting any annual drug pricing increases to less than 10%. J&J, AbbVie and Merck all published annual reports regarding its portfolio and the price increases they’ve implemented. This transparency coalition is a step in the right direction to appease the general public and governmental officials that have been very critical of drug price increases. To add icing on the cake, Amgen’s CEO stated “We look forward to working collaboratively with the new administration.” Pharmaceutical executives are being proactive to be part of the conversation and be present at the table when it comes to working with Trump and his hardline stance regarding jobs and drug prices. The collaborative approach will hopefully bode well for the industry as a healthy relationship is fostered perceived on Wall Street.

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Issue #12: Trump’s Love-Hate Relationship With Pharma, Amgen Promises Jobs and Sector Earnings Underway

INO Health & Biotech Stock Guide

Preview Issue #12 - March 20, 2017

BIOTECH, HEALTH & PHARMA NEWS

President Trump met with a group of pharmaceutical executives at the White House where he voiced his concerns over their pricing, stating that pricing “has been astronomical.” In the same meeting, President Trump said “You folks have done a very great job over the years,” and “but we have to get the prices down.” In a separate press conference, Trump said that big pharma was “getting away with murder”. Big pharma companies are joining forces as of late to address the price increases that the public and governmental officials have been demanding. Allergan (AGN), J&J (JNJ), Novo Nordisk (NVO) and AbbVie (ABBV) have committed to limiting any annual drug pricing increases to less than 10%. J&J went further stating that they will be publishing an annual report regarding its portfolio and the price increases they’ve implemented. AbbVie released data on its increases as well stating that Humira was increased by 8.4% with an only once annual increase moving forward. Merck (MRK) becomes the latest pharma to join this drug pricing transparency coalition. Merck raised list prices by an average of 9.6% with an average net price increase of 5.5%. This transparency is a step in the right direction to appease the general public and governmental officials.

President Donald Trump

Figure 1 - President Trump met with pharmaceutical industry leaders at the White House on Tuesday. From left are PhRMA President Stephen Ubl, Merck CEO Kenneth Frazier, Trump, Celgene CEO Robert Hugin and Amgen CEO Robert Bradway. (Evan Vucci / Associated Press)

WHAT'S NEXT

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