The earnings season for Big Biotech kicks of later this month when Biogen (BIIB) unveils second quarter financial results on July 21. But will those reports be enough to reverse the negative sentiment surrounding the sector?
The biotech analyst team at Cowen expects strong earnings driven by ,solid demand, an open pricing environment in the U.S. and a currency tailwind. But, they warn, the sector may lack sizzle.
Steady financial performance in the absence of an exciting new product cycle may not be enough to overcome negative sentiment toward the groupInvestors are increasingly of the view that biotech fundamentals have deteriorated. They cite disappointing drug launches, a lack of pipeline catalysts, heightened payor pressures, and earnings growth that appears more dependent on financial engineering. While we admit that biotech is lacking an exciting new product cycle, we are not aware of any changes to the drug development process or commercial landscape that could have altered the industry’s fundamental value proposition. Rather we suspect that poor stock performance and investor sentiment may be engendering a “glass half empty” view toward fundamentals that are largely unchanged relative to a year ago when investors were touting biotech for its innovation cycle and increased R&D productivity. Earnings are the most objective metric for gauging perfor mance, and we expect Q2 to support the notion that biotech’s growth outlook and value proposition remain favorable relative to other sectors. As such, Q2 should provide the sector with a firmer level of support. However, more substantial upside is likely to be dependent on a change in sentiment, which is subjective and always difficult to predict in terms of timing.
Hot Casino Stocks To Watch For 2016: Portola Pharmaceuticals, Inc.(PTLA)
Portola Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics for patients in the areas of thrombosis, other hematologic disorders, and inflammation. Its lead compound, Betrixaban, is an oral, once-daily Factor Xa inhibitor in Phase III clinical trial for venous thromboembolism prophylaxis in acute medically ill patients in-hospital and post discharge. The companys other lead development candidate, Andexanet alfa, a recombinant protein that is in Phase III registration studies designed to reverse the anticoagulant activity in patients treated with a Factor Xa inhibitor who suffer an uncontrolled bleeding episode or undergo emergency surgery. It has collaboration agreements with Biogen Idec Inc.; Bristol-Myers Squibb Company; Pfizer Inc.; Bayer Pharma, AG; Janssen Pharmaceuticals, Inc.; Daiichi Sankyo, Inc.; and Lees Pharmaceutical (HK) Ltd. The company is also developing Cerdulatinib, which is in Phase I/IIa proof-of-concept study, an orally available kinase inhibitor that inhibits spleen tyrosine kinase and janus kinases enzymes, which regulate signaling pathways, as well as for hematologic, or blood, cancers, and inflammatory disorders. In addition, it is involved in the development of PRT2607, a selective Syk inhibitor. Portola Pharmaceuticals, Inc. has a collaboration with Bristol-Myers Squibb and Pfizer Inc. to develop and commercialize apixaban, an oral anticoagulant. The company was founded in 2003 and is headquartered in South San Francisco, California.
- [By Lisa Levin]
Portola Pharmaceuticals Inc (NASDAQ: PTLA) shares dropped 30 percent to $20.08 after announcing Phase III Betrixaban results.
Shares of Spark Energy Inc (NASDAQ: SPKE) were down 14 percent to $20.96. Spark Energy reported Q4 GAAP EPS of $(0.01) and adjusted EBITDA of $16.3 million.
- [By Lisa Levin]
Portola Pharmaceuticals Inc (NASDAQ: PTLA) shares dropped 23 percent to $21.92 after announcing Phase III Betrixaban results.
Shares of Spark Energy Inc (NASDAQ: SPKE) were down 16 percent to $20.43. Spark Energy reported Q4 GAAP EPS of $(0.01) and adjusted EBITDA of $16.3 million.
Hot Casino Stocks To Watch For 2016: Merck & Company, Inc.(MRK)
Merck & Co., Inc. provides health care solutions worldwide. The company offers therapeutic and preventive agents to treat cardiovascular, type 2 diabetes, asthma, nasal allergy symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, intra-abdominal infections, hypertension, arthritis and pain, inflammatory, osteoporosis, male pattern hair loss, and fertility diseases. It also provides neuromuscular blocking agents for use in surgery; anti-bacterial products for skin and skin structure infections; cholesterol modifying medicines; non-sedating antihistamine; and vaginal contraceptive products. In addition, the company offers products to prevent chemotherapy-induced and post-operative nausea and vomiting; treat brain tumors; treat melanoma and metastatic non-small-cell lung cancer; and prevent diseases caused by human papillomavirus, as well as vaccines for measles, mumps, rubella, varicella, c hickenpox, shingles, rotavirus gastroenteritis, and pneumococcal diseases. Further, it provides antibiotic and anti-inflammatory drugs to treat infectious and respiratory diseases, fertility disorders, and pneumonia in cattle, horses, and swine; vaccines for poultry; parasiticide for sea lice in salmon; and antibiotics for the treatment of C. difficile, and vaccines against bacterial and viral disease in fish. Additionally, the company offers companion animal products, such as ointments for acute and chronic otitis; diabetes mellitus treatment for dogs and cats; anthelmintic products; chewable tablets to treat fleas and ticks in dogs; and products for protection against bites from fleas, ticks, mosquitoes, and sandflies. It serves drug wholesalers and retailers, hospitals, government agencies and entities, physicians, physician distributors, veterinarians, distributors, animal producers, and managed health care providers. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.
- [By Ben Levisohn]
The main conclusions we draw from the abstracts (lacking information about late breakers) is that Gileads dominance of HCV seems secure for the immediate future, with sof/vel (sofosbuvir/velpatasvir) showing impressive efficacy in difficult-to-treat patient subsets. Competitors have early data for their new HCV development efforts (Merck (MRK) [MP], Johnson & Johnson (JNJ) [OP], AbbVie (ABBV)) but will not present new clinical data at this meeting.
Top 5 New Stocks To Invest In 2016: Brookline Bancorp Inc.(BRKL)
Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, and The First National Bank of Ipswich, which provide commercial and retail banking services, and cash management and investment services to customers in Central New England. The company accepts various deposit products, including non-interest-bearing checking accounts, interest-bearing NOW accounts, savings accounts and money market savings accounts, certificate of deposit accounts, individual retirement accounts, and other qualified plan accounts. Its loan portfolio comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; auto loans; loans to business entities consisting of commercial lines of credit; and loans to condominium associations, as well as loans for financing equipment used by small businesses. Brookline Bancorp, Inc. also provides financing for construction and development projects, home equity, and other consumer l oans; and loans to finance coin-operated laundry, dry cleaning, and convenience store equipment and businesses. As of January 25, 2012, it operated 43 branches in Massachusetts and Rhode Island. The company was founded in 1871 and is headquartered in Brookline, Massachusetts.
- [By Dividends4Life]
Memberships and Peers: PBCT is a member of the S&P 500 and a member of the Broad Dividend Achievers Index. The company’s peer group includes: Bank of America Corporation (BAC) with a 0.3% yield, Brookline Bancorp, Inc. (BRKL) with a 3.7% yield and Westfield Financial Inc. (WFD) with a 3.5% yield.
Hot Casino Stocks To Watch For 2016: Retail Properties of America, Inc.(RPAI)
Retail Properties of America, Inc. is a real estate investment trust. It engages in acquisition, development and management of properties. The trust invests in the real estate markets of United States. Its portfolio consists of retail properties, including lifestyle, power, neighborhood, and community centers, in addition to single-user net lease properties. The firm was formerly known as Inland Western Retail Real Estate Trust, Inc. Retail Properties of America, Inc. is based in Oak Brook, Illinois.
- [By Ant贸nio Costa]
Retail Properties of America Inc (NYSE: RPAI) has been in an impressive rebound since the lows of August and the stock price action continues to become Bullish. However, RPAI has run into the downtrend line resistance again and this could lead to a brief period of sideways consolidation or price correction from current levels. On watch.
Hot Casino Stocks To Watch For 2016: Ascent Capital Group, Inc.(ASCMA)
Ascent Capital Group, Inc., through its subsidiary, Monitronics International, Inc., provides security alarm monitoring and related services to residential and business subscribers in the United States and Canada. The company monitors signals arising from burglaries, fires, medical alerts, and other events through security systems at subscribers premises. It offers a range of residential security services, including hands-free two-way interactive voice communication with the monitoring center, cellular options, and an interactive service option, which allows the customer to control their security system remotely using a computer or mobile device. The company also provides third party contract monitoring services to other security alarm companies for monitoring their accounts on a wholesale basis. It markets and sells its products through a network of authorized dealers. The company was formerly known as Ascent Media Corporat ion and changed its name to Ascent Capital Group, Inc. in July 2011. Ascent Capital Group, Inc. was incorporated in 2008 and is based in Greenwood Village, Colorado.
- [By Ian Wyatt, Publisher & Chief Investment Strategist, Wyatt Investment Research]
Both of these stocks are overlooked, undervalued, and cash flow machines. The companies are Ascent Capital Group (ASCMA) and Covanta Holdings (CVA).
Hot Casino Stocks To Watch For 2016: Marvell Technology Group Ltd.(MRVL)
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers mobile and wireless products comprising communications and applications processors; thin modems; and connectivity solutions, including Wi-Fi, Bluetooth, near field communication, and FM; and mobile computing products, as wain, Sweden, Switzerland, and Taiwan. Marvell Technology Group Ltd. was founded in 1995 aell as silicon solutions and Kinoma software. The company also provides a range of data storage products, such as hard disk drive and solid-state drive controllers. In addition, it offers networking products comprising Ethernet solutions; embedded communication processors; network processors; and Ethernet passive optical network and gigabit passive optical network products. Further, the company provides printer system-on-a-chip products, as well as custom printer ASICs; and smart home products that are designed to enable the next generation of connected consumer platforms, and to enhance the eco-friendly Connected Lifestyle throughout the home, incluidng platforms for set-top boxes, video dongles, and lighting and smart appliances. It operates in the United States, Canada, China, India, Israel, Italy, Japan, Malaysia, Singapore, South Korea, Spnd is headquartered in Hamilton, Bermuda.
- [By Lisa Levin]
On Wednesday, technology shares climbed by 0.94 percent. Top gainers in the sector included Marvell Technology Group Ltd. (NASDAQ: MRVL) and Medidata Solutions Inc (NASDAQ: MDSO).