2017 is kicking off to be an eventful year in the healthcare space. Regeneron was handed a devastating blow in federal court in a lawsuit filed by Amgen surrounding its cholesterol-lowering drug Praluent. Amgen claimed that Regeneron’s Praluent infringed on Amgen’s patents and competing drug Repatha in a long-standing patent lawsuit. Amgen previously won a trial in which Regeneron was shown to have infringed on two patents covering a class of cholesterol-lowering drugs. The most recent ruling stipulates that Regeneron must stop selling Praluent in the U.S. altogether due to “irreparable harm” to Amgen. It’s extremely rare to see a ruling in which a drug is ordered to be removed from the market as opposed to a financial penalty or royalties. Monetary implications at the moment are minor as Praluent and Repatha have had minimal sales through the first 9 months of 2016 of $75 million and $83 million, respectively. Despite these numbers, if positive data comes to fruition that extends a clinical benefit to more patients in lowering rates of heart attacks, strokes and death then Amgen’s drug could gain broader insurance coverage and ultimately sell $2-$4 billion on an annual basis worldwide. Amgen shares popped 5% on the news while Regeneron shares sank 6% albeit shares were halted once the ruling came down.
Today, I'm going to be looking at nine individual sectors and analyzing each one. I am going show you a quick and easy way to tell which sectors are trending and which ones are stuck in a trading range.
I will also be looking at the top three stocks in each of those sectors that are trending to the upside.
As America ages, healthcare is going to be an important issue. How companies approach this is going to make a big difference to their bottom line.
The new Affordable Care Act, which is slowly being implemented, is another dimension that will have to be factored into the future. How companies adapt and make money in the future may have more to do with how they do business, rather than the drugs they are pushing.
Today, I'll be looking at four stocks, two that are in strong bullish trends according to the Trade Triangle technology, and two that are in downtrends.
From the long side based on the Trade Triangle technology:
Abbott Laboratories (NYSE:ABT)
Johnson & Johnson (NYSE:JNJ)
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 26th of August.
The big news today is that Amgen (NASDAQ:AMGN) has agreed to buy Onyx Pharmaceuticals (NASDAQ:ONXX) for $10.4 billion. Amgen, the world's biggest biotechnology company, was missing from one of the biggest and fastest growing markets, cancer drugs. With the acquisition of Onyx Pharmaceuticals, Amgen will gain access to the company's three anticancer treatments. I will be analyzing Amgen today using our Trade Triangle technology and will share with you the trading results for the year so far. Continue reading "Today's Video Update: Amgen moves into the big business of cancer drugs"→