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Successful drug approvals by the FDA and innovations in the treatment of cancer could provide relevant stocks a boost.
Accuray Inc (ARAY) files its latest 10-K with SEC for the fiscal year ended on June 30, 2019. Accuray Inc is a radiation oncology company that develops, manufactures, sells and supports precise treatment solutions. Continue reading...
CEO of Fibrogen Inc (30-Year Financial, Insider Trades) Thomas B Neff (insider trades) sold 39,636 shares of FGEN on 08/22/2019 at an average price of $44.33 a share. Continue reading...
Chinook Therapeutics is based in Vancouver, B.C., but its CEO lives and works in Seattle — and he's looking to for space in the city to support six to 12 additional employees.
Johnson & Johnson (NYSE:JNJ) stock is blue chip with a capital B. With its solid dividend and AAA credit rating, there's no denying that JNJ stock is high quality. But can the company's legal issues bring it to its knees?Source: Sundry Photography / Shutterstock.com The likely answer is no. While multi-billion dollar judgements sound scary, the company's sheer size may help insulate it from these issues. Let's take a closer look at JNJ, and see whether the risks outweigh opportunity with Johnson & Johnson stock. What's the Worst That Can Happen?As InvestorPlace contributor Josh Enomoto discussed Aug. 21, JNJ stock has two material legal risks. The first is the company's asbestos-contamination scandal. For decades, Johnson & Johnson allegedly kept quiet about the cancer risks of its baby powder products. Civil litigation has been going on for years. But only recently did federal authorities announce an investigation. Recent civil judgements were for $4.7 billion in July 2018, and $300 million in June 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy on the Dip But JNJ's liability could be much less. As discussed in this Bloomberg article, most product liability judgements are reduced on appeal. But, as Enomoto discussed in his analysis, bad PR from the litigation could taint Johnson & Johnson stock. This scandal has been going on for years. While the story is well-known, it has not dominated the headlines.How about the Oklahoma opioid suit? After years of ignoring the opioid crisis, federal and state authorities are getting their act together. This puts opioid manufacturers in their cross-hairs, including JNJ. The Oklahoma suit alleges JNJ's Janssen Pharmaceuticals unit aggressively marketed opioids. Oklahoma is looking for $17 billion in damages, but JNJ could end up paying significantly less. Previous Oklahoma opioid suits ended with settlements. Purdue Pharma settled for $270 million. Teva Pharmaceuticals (NYSE:TEVA) settled for $85 million. This means that JNJ could avoid a multi-billion dollar judgement. But JNJ is likely not out of the woods just yet. Other states (or the Federal Government) could pursue action.Do these legal risks impact the valuation of JNJ stock? Let's see if shares are selling at a discount (or a premium) to its peers. JNJ Stock Trades at a Fair ValuationJohnson & Johnson currently trades at a forward price-to-earnings (forward P/E) ratio of 14.1. The company's Enterprise Value/EBITDA (EV/EBITDA) is currently 13. Here are the valuations of some of JNJ's competitors in the pharmaceutical space:Bristol-Myers Squibb (NYSE:BMY): Forward P/E of 10, EV/EBITDA of 9.8Eli Lilly (NYSE:LLY): Forward P/E of 16.5, EV/EBITDA of 15.7Merck (NYSE:MRK): Forward P/E of 15.6, EV/EBITDA of 14.1Pfizer (NYSE:PFE): Forward P/E of 15.9, EV/EBITDA of 10.1Based on this peers comparison, Johnson & Johnson stock appears fairly valued. On a forward P/E-basis, JNJ stock trades higher than BMY. On a EV/EBITDA basis, JNJ trades in the middle of the pack. It appears that the recent legal issues have barely impacted the JNJ stock price. Shares are down just about 12% from their 52-week high. It may take more to sink a stock with a $346.4 billion market cap.JNJ stock may be attractive to dividend investors. While the 2.91% yield is not particularly high, JNJ is a dividend aristocrat. The company has raised the dividend 57 years in a row. But investors should be cautious given the legal risks. While JNJ may be on the hook for much less than anticipated, it's tough to predict litigation outcomes. Not a Big Risk, But Not a Big OpportunityJohnson & Johnson will likely weather the litigation storm. The talcum powder judgement sound high, but the company could appeal and reduce the final amount. The Oklahoma opioid case also features an eye-popping number. Given the Purdue and Teva settlements, a multi-billion dollar verdict would be surprising.However, the stock offers limited upside. Shares appear fairly valued relative to peers. The company's dividend aristocrat status is a strong selling point. But for short-term plays, better opportunities lie elsewhere. If the legal issues result in a short-term hit to JNJ's stock price, investors may find opportunity. Keep Johnson & Johnson on your radar, and consider a position if the stock sees a material drop in price.As of this writing, Thomas Niel did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Will Lawsuits Sink Johnson & Johnson Stock? appeared first on InvestorPlace.
These days, the healthcare stocks are looking pretty healthy compared to stocks in other spaces. Despite political pressures about lowering costs, "Medicare for All" and importing drugs, the sector has been riding high on a wave of optimism and growth. Demand for various healthcare solutions continues to rise as our aging population simply requires more. And that story is pretty much the same across the world.Even better is that recent market volatility has sent many investors into healthcare stocks for their high cash flows and strong dividend potential. Many healthcare stocks have long been dividend champions -- offering both high initial yields and overall strong dividend growth. For investors looking for income and the ability to keep that income rising over the long haul, healthcare stocks can't be beaten.The best part is that the sector's overall growth rates don't seem to be slowing anytime soon. That makes healthcare a prime destination for long-term investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Own Through a Global Recession So, which healthcare stocks have great growth trajectories and can pay you plenty of dividends for the long-term? Here's a prescription for five that fit the bill. Healthcare Stocks to Buy Today: Baxter International Inc (BAX)Source: Shutterstock Dividend Yield: 1.1%If you've ever been in the hospital, there's a good chance that you've used products made by Baxter International (NYSE:BAX). That bag of Ringer's solution connected to your I.V. is one of its most famous products. However, Baxter's catalog spans not only all the stuff needed for running intravenous drugs, including the tubing, pumps and connectors, but also a variety of premixed drugs and therapies as well.Those bags of basic Ringer's solution, tubes, and other hospital must-haves create plenty of repeat orders from facility administrators. You can't really operate a hospital without them. As a result, BAX ships more than one million sterile units each day.This niche has served BAX well over the years and has made it a profit machine. Last quarter, Baxter saw a 4% jump to its operational revenues and managed to see an adjusted profit gain of 16% year-over-year. This follows great results for the first quarter of 2019 and the fourth quarter of last year. These wins plus its recent top-notch results allowed management to boost its full-year 2019 earnings guidance.And there's a good chance that it'll beat even those better numbers. BAX has several new approved products hitting the market this year, including the only intravenous insulin product Myxredlin and new nutritional products. Meanwhile, Baxter is poised to see growth from increased home dialysis patients.With strong revenues already in the tank and future growth on the horizon, BAX should be able to keep growing its dividend as well. While it only yields 1.1% today, that payout has increased by 156% over the last 10 years. Bristol-Myers Squibb (BMY)Source: Shutterstock Dividend Yield: 3.43%The major pharmaceuticals are some of the best healthcare stocks to comb for dividends and Bristol-Myers Squibb (NYSE:BMY) could be one of the best. The firm has a huge portfolio of drugs, including many blockbusters than produce ample amounts of cash flow. That plus its 3.43% yield is worth the price of admission alone. However, the real reason to buy BMY is its status as a major cancer fighter.That title comes from blockbuster cancer drug Opdivo. The oncology medicine pulls in more than $2 billion in quarterly revenues for the firm and continues to see growth. Last quarter, sales of Opdivo managed to grow by 12%. Meanwhile, Bristol-Meyers continues to pivot the success of Opdivo in other directions as well. And we can't forget the other cancer fighters under its umbrella -- such as Yervoy -- which also grew by double digits.The best part is BMY is going to need a bigger oncology umbrella. That's because of its pending buyout of Celgene (NASDAQ:CELG). CELG's portfolio and pipeline of cancer drugs will fit perfectly with BMY's. While the integration and antitrust issues are taken a bit longer than expected, the deal is moving forward and when it's finally done, Bristol Meyers will have one of the best overall cancer portfolios around. This should lead to plenty of growth down the road. Especially when considering that the government may have little ability to regulate them. * 10 Small-Cap, Up-And-Coming Stocks to Keep on Your Radar For income seekers, this could make BMY a top healthcare stock to buy for years' worth of dividend growth. Physicians Realty Trust (DOC)Source: Shutterstock Dividend Yield: 5.3%It's not just the drugs or equipment in a hospital that can pay some hefty dividends. The owners of the hospital itself could be the real income play. And that makes Physicians Realty Trust (NYSE:DOC) one of the best sleepier healthcare stocks to buy.DOC is a real estate investment trust (REIT) that owns 250 properties across 30 different states. The bulk of these -- around 93% of its total portfolio -- are medical office buildings. Medical office buildings are one of the more stable varieties of medical properties as they are generally constructed for this purpose only. Secondly, most of DOC's properties are signed to long-term leases and are located on major health campuses that are affiliated with leading health systems. This provides a very stable base of rental income for the REIT's bottom line.Even better is that 78% of DOC's portfolio is triple-net leased. This holy grail of leases means that tenants are responsible for paying items like taxes, maintenance and insurance costs. This provides better margins and cash flows for DOC's buildings. Those cash flows have been growing. since its IPO in 2013, DOC's FFO has grown by a staggering 195%. And while that torrid growth has slowed a bit in recent years, the healthcare stock still pumps out plenty of cash to fund its steady dividend. Moreover, DOC continues to use its strong balance sheet to perform smart M&A transactions to boost its portfolio further.In the end, Physicians Realty Trust is a great healthcare stock to add some yield to your portfolio. Cardinal Health (CAH)Source: Shutterstock Dividend Yield: 4.42%Truth be told, Cardinal Health (NYSE:CAH) has a few warts and isn't a pristine member of the best healthcare stocks club. The firm's two main lines of business -- drug distribution and medical devices -- aren't doing so hot right now. For one thing, the distributors are being taken down as they are the main targets of lower-price political punditry, while the kinds of devices it makes are directly in the line of fire from Medicare for All plans. Add in pending opioid legislation and Cardinal has been hit hard. Shares of CAH are around 23% lower from their peaks this year.But the drop has pushed shares into bargain territory. Today, CAH can be had for a P/E of under 10 and a dividend yield of 4.42%. That's dirt cheap, especially considering that its situation may not be that bad.For one thing, CAH is expected to see steady growth. As one of the space's largest distributors of drugs, including low-price generics, the firm has an entrenched position among hospitals and doctors. Cardinal did see its full-year revenues increase by 6% to a whopping $145.5 billion for fiscal 2019. And that leadership position throws off a lot of cash. Adding its low debt compared to peers and CAH has plenty of wiggle room to navigate the challenges, with a payout ratio of just 40%. Right now, it's priced as it won't be able to survive. That's just ridiculous. * 7 "Boring" Stocks With Exciting Prospects While it may seem like a risky play, CAH is priced cheap enough and it has a strong enough yield that it's worth the gamble. Becton Dickinson (BDX)Source: Shutterstock Dividend Yield: 1.25%On the surface, Becton Dickinson (NYSE:BDX) looks like one of the most boring healthcare stocks. That's because the firm is one of the largest producers of so-called sharps products. We're talking needles and syringes.BDX's product catalog spans everything from insulin needles and catheters to more advanced regional anesthesia and drug delivery products. The real win for Becton is that these items are one-time only products. Just like Baxter, hospitals and doctors have to keep calling their BDX sales rep for more. This niche produces ample cash flow and its integration of rival Bard only boosted its catalog further.But BDX isn't simply staying in its lane. In recent years, it has expanded its portfolio into some high-tech devices. This includes intravenous pumps, surgery products and even PCR/life science equipment. These divisions have been growing nicely and are starting to contribute significantly to Becton's bottom line.The best part is that BDX's ample cash flows are allowing it to pay down the debt it took out to buy Bard faster than expected. Management expects to use that future cash flows to fund tuck-in acquisitions, conduct buybacks and boost its dividend further. Already, BDX has grown its payout by 42% over the last five years.Given its steady revenues and future potential, BDX makes an ideal dividend growth play among the healthcare stocks.At the time of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post 5 Healthcare Stocks to Buy for Healthy Dividends appeared first on InvestorPlace.
(Bloomberg) -- Progenics Pharmaceuticals Inc.’s disappointing performance has driven some investors to side with activist shareholder Velan Capital LP as they push for significant changes.A slow launch for its sole wholly owned drug Azedra has prompted Velan, the company’s second-largest holder, and others to threaten to shake up the drugmaker’s board. One of Progenics’s top 10 stakeholders told Bloomberg that they have more confidence in Velan’s team than the drugmaker’s current management.The investor, who asked not to be named due to a company policy, would still support the company if the board replaced Chief Executive Officer Mark Baker. The holder cited Azedra’s “botched” commercial launch as a reason for discontent. Shares of the biotech company have erased most of their 2019 gains after being up almost 50% in late June.Investors see Progenics as significantly undervalued for the assets that it holds. Besides Azedra, a therapy for rare endocrine tumors, the drugmaker gets royalties for opioid-induced constipation drug Relistor, which is partnered with Bausch Health Companies Inc. It also has a few other clinical trials ongoing.A second investor, who has owned Progenics shares for years, is willing to give the company and its CEO another year to improve execution, while waiting for the activist to put forward board nominations and more formal plans. The holder said the Progenics board has been in touch recently to ask for investor feedback, which is “good progress.”“We take the views of our shareholders seriously,” New York-based Progenics said in a statement. “The board is working with urgency to make the changes necessary to improve the company’s performance.”The biotech’s shares have declined 45% over the past 12 months and were trading Friday at about $4 apiece. That’s nearly two-thirds lower than what they traded for in early 2017.All the analysts tracked by Bloomberg share the holders’ view that the stock has more upside from current levels. They expect the stock will more than double in the next 12 months.The shares plunged last week after the company reported that it had only treated two patients with Azedra, nearly a year after the cancer medicine won approval from the FDA. The drugmaker received 32 additional requests for treatment, although management said on a recent earnings call that it’s hard to forecast how quickly those will turn into actual sales.Previously, Progenics said it took time to get the different specialized centers ready to administer the medicine and work through the logistics of getting patients ready to be dosed.In the second quarter, the drugmaker spent $5.5 million in legal and advisory fees to fight Velan for the re-election of its board members, unsuccessfully. Last month, shareholders voted against re-appointing board members Michael Kishbauch and former chairman Peter Crowley. Both men stepped down and will leave the company soon. A majority of holders voted for the re-election of CEO Baker as director.Cash ConcernsWith about $85 million in cash and equivalents at the end of the second quarter, Progenics may need to raise money soon, Velan said in a recent statement. BTIG analyst Tim Chiang, a long-term bull on the stock, recently wrote that Progenics is “well-funded” to support the launch of Azedra and fund key pipeline programs.Progenics said it’s “regularly” exploring all its financing options.Without an appropriate settlement with the biotech company, Velan said it could look to remove other members of the board. The Alpharetta, Georgia-based firm could wait till next year’s annual meeting, or try to seek a vote earlier via consent solicitation from major shareholders, according to a person close to the firm.To contact the reporter on this story: Tatiana Darie in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
CFO of Seattle Genetics Inc (30-Year Financial, Insider Trades) Todd E Simpson (insider trades) sold 12,500 shares of SGEN on 08/20/2019 at an average price of $80 a share. Continue reading...
AstraZeneca's (AZN) roxadustat gets a second marketing approval in China for treating anaemia caused by chronic kidney disease in non-dialysis-dependent patients.
Here's a roundup of top developments in the biotech space over the last 24 hours. Scaling The Peaks (Biotech stocks hitting 52-week highs on Aug. 21) Apellis Pharmaceuticals Inc (NASDAQ: APLS ) Arrowhead ...
CEO and President of Blueprint Medicines Corp (30-Year Financial, Insider Trades) Jeffrey W. Albers (insider trades) sold 20,000 shares of BPMC on 08/19/2019 at an average price of $81.73 a share. Continue reading...
AstraZeneca's (AZN) Imfinzi fails to improve overall survival in a study for previously treated stage IV non-small cell lung cancer (NSCLC) patients.
Seeking to win where no one has succeeded before in cancer and build out its own manufacturing, this Mountain View company takes its place in a growing line of Bay Area biotech IPOs.
Inovio (INO) closes enrollment in the phase II study evaluating VGX-3100 for the treatment of HPV-related high-grade anal dysplasia. Shares up.
The FDA approves Nabriva's (NBRV) new drug application for both intravenous and oral formulations of Xenleta to treat adult patients with community-acquired bacterial pneumonia.
Pharmaceutical company Bristol-Myers has been in a downtrend since 2016 and after unveiling its merger with Celgene. Is now the right time to buy BMY stock?