7 Pharma Stocks and the Prognosis for Profits #pharma #marketing


Posted On Aug 11 2017 by

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7 Pharma Stocks and the Prognosis for Profits

Which pharma stock is the best?

Pharmaceutical firms benefit from a crucial fact of life for consumers. You can always slash the grocery list, stall a new car purchase or shunt that shot of retail therapy. But cutting back on the pills that maintain health and treat chronic conditions? That’s not a wise area, nor a tailor-made one, for trimming the household budget. Yet not all pharma companies deliver that prescribed dose of healthy gains in metered doses: A drug that costs millions to develop can flop during testing phases. Here’s how seven companies stack up in terms of their positions and prospects. When you invest, use as directed, lest portfolio side effects may occur.

Johnson Johnson (ticker: JNJ ): Strike up the Band-Aid.

Johnson Johnson (ticker: JNJ ): Strike up the Band-Aid.

(Neilson Barnard/Getty Images for NYCWFF)

JNJ has increased dividends 54 consecutive years and earnings for 32. Since 1986, the stock has skyrocketed from $3.16 per share to about $120. It’s not a spotless investment, though. “Despite a recent fifth consecutive quarter of organic sales growth acceleration, the price-earnings ratio based on consensus estimate for the next four quarters has recently declined,” says Steven N. Violin, senior vice president and portfolio manager at F.L.Putnam Investment Management Co. in Wellesley, Massachusetts. Still, “that level is roughly in line with the S P 500.”

Acadia Pharmaceuticals (ACAD ): Parkinson’s promise.

Acadia Pharmaceuticals (ACAD ): Parkinson’s promise.

Acadia is sitting on a potential billion-dollar breakthrough. Nuplazid, a drug approved for Parkinson’s disease psychosis in April. “It is also in phase two of testing for Alzheimer’s and schizophrenia,” says K C Ma, director of the George Investments Institute at Stetson University in DeLand, Florida. Despite negative earnings. “Acadia has a textbook profile for a pharmaceutical takeover target,” he says. “It is rumored that Biogen (BIIB ) is eyeing them.”

Pfizer (PFE ): Blood thinner winner.

Pfizer (PFE ): Blood thinner winner.

(TIMOTHY A. CLARY/AFP/Getty Images)

One thing worse than Viagra wearing off is your Viagra patent wearing off. Pfizer has lost protections on that drug and other cash cows, including Celebrex, Zyvox, Lyrica and Lipitor. But newer products have picked up the slack. “Breast cancer drug Ibrance is off to a great start after launching in early 2015, logging more than $500 million in sales last quarter,” says James Brumley, analyst and feature writer at InvestorPlace.com. “Blood thinner Eliquis has made strong showings recently as well.” Meanwhile, Pfizer has 17 drugs in late testing stages.

Portola Pharmaceuticals (PTLA ): Pfizer’s blood brother?

Portola Pharmaceuticals (PTLA ): Pfizer’s blood brother?

This year hasn’t been kind to Portola stock, off 60 percent in 2016 and trading at $20 per share. But AndexXa, a reverse anti-coagulant to stop bleeding for those on blood thinners, could stanch the hemorrhage. The drug is in final tests. “More than 100,000 patients in the U.S. need it and it’s the only one of its kind,” Ma says. If it succeeds, AndexXa would pair ideally with Pfizer’s anti-coagulant Eliquis – and could presage a major move. “The Street speculates Portola could be Pfizer’s next takeover target.”

Eli Lilly and Co. (LLY ): All in on Alzheimer’s drug.

Eli Lilly and Co. (LLY ): All in on Alzheimer’s drug.

If you bought Eli Lilly stock a year ago, you’re within pennies of where you are today, with share prices shy of $80. There have been some marked bounces along the way – as high as $90, as low as $69 – but those in the buy-and-hold crowd now grasp some solid gains. LLY has more than doubled over the last five years and expect explosive earnings if solanezumab, the drug Lilly is developing to halt the course of Alzheimer’s, emerges from its current trials as a success.

Eagle Pharmaceuticals (EGRX ): Patented profits.

Eagle Pharmaceuticals (EGRX ): Patented profits.

Last year, Eagle’s share price quadrupled to $89 following a blockbuster licensing deal with Teva Pharmaceuticals (TEVA ). Though EGRX has dropped a third this year, share prices spiked 28 percent June 9 after Treanda, a Teva drug used to treat leukemia and lymphoma, won patent protection through 2026. Eagle makes Bendeka, a fast-acting version of Teva’s drug and a follow up to bendamustine, the first leukemia-lymphoma medication Teva licensed. Eagle also hopes to win FDA approval this year on Kangio, a blood thinner that also promises to attract licensing interest.

Bristol-Myers Squibb Co. (BMY ): Opdivo dive bomb.

Bristol-Myers Squibb Co. (BMY ): Opdivo dive bomb.

That thud you heard a few weeks back was BMY stock losing 20 percent of its value in just two days, following news that its drug Opdivo flunked trials for treating advanced non-small cell lung cancer. “The company and its stock are in trouble,” says Jeffrey Zucker, president of Green Lion Partners. “While many investors feel the company’s stock is showing signs of a reversal, I’d venture to say that it’s too soon to buy in, especially after having taken such a beating.”

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Last Updated on: August 11th, 2017 at 8:35 am, by


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