Predictions on Biotech Sector’s Two-year Boom
Curator: Aviva Lev-Ari, PhD, RN
This article has the following FOUR parts:
- New Trends in Organization of Pharmaceutical & Genomics R&D
- The Top 5 Dividend-Paying Pharmaceutical Stocks
- How 2014 Business Climate will Impact Biotech Companies?
- New Trends in BioTechnology & Medicine
In Forbes, 3/27/2014, Matthew Herper concluded: “investors should avoid thinking that the drug business has undergone a fundamental change in the past few years. It hasn’t.”
New Trends in Organization of Pharmaceutical & Genomics R&D
At Sachs Associates Conference in NYC on 3/19, these very changes were discussed as the following article presents the EXCHANGE among Biotech CEOs, Venture Capitalists, Big Pharma, Private and Public Universities, Govermental Agencies, For Profit Foundations and Not for Profit Foundations.
The Business Climate change is occurring as Big Pharma companies realize that it is a MUST to collaborate on R&D with agents of innovations representing “Not-invented-Here-Technologies.”
In the coming years the further emerging changes in the landscape of Big Pharma and Biotech R&D, Translational Medicine and Commercialization of innovation aka Transfer of technologies will intensity and will involve multiple agencies, such as the emergence of a SEAMLESS lab development reality and new types of scientific interactions cross institutional and among multiple contributing independent entities i.e., Big Pharma, Private and Public Universities, Govermental Agencies, For Profit Foundations and Not for Profit Foundations.
The Top 5 Dividend-Paying Pharmaceutical Stocks
For decades, buying shares of such franchise players as Coca-Cola, Johnson & Johnson, Altria and General Electric have been great dividend-paying stock plays.
In the current market, I like pharmaceutical stocks because the largest have become virtual cash machines. The dividends offer a protection against dramatic drops in share price. In addition to Pfizer…
- Johnson & Johnson (NYSE: JNJ) yields 2.6%
- Novartis (NYSE: NVS) yields 2.6%
- Glaxosmithkline (NYSE: GSK) yields 4.4%
- And Eli Lilly (NYSE: LLY) yields 4.0%.
All these are outstanding yields for growing firms. Pfizer grew revenue 9.4% last quarter. JNJ grew 8.7%, Novartis grew 14.7%, Glaxo grew 3.5% and Lilly grew 11.20% in the last quarter.
While a number of these drug firms have been under pressure from market perceptions of slow growth, shallow pipelines of new drugs and patent expirations, these negatives are already priced into the shares.
SOURCE
http://www.investmentu.com/article/detail/3099/dividend-paying-stocks-2#.UzRrbBy7Rwg
How 2014 Business Climate will Impact Biotech Companies?
This week’s 10% drop in the Nasdaq iShares’ Biotechnology Index — not to mention the fact that biotech stocks, after a torrid two years, are up less than 4% year-to-date — has investors worrying that the sector’s two-year boom is over.
Investors should avoid thinking that the drug business has undergone a fundamental change in the past few years. It hasn’t, said Matthew Herper, below.
The Nasdaq iShares Biotechnology Index, by YCharts
Matthew Herper in his Forbes article Biotech Stocks: Seeing Rainbows, Missing The Rain presents
a critical view regarding the Optimism expressed about the Biotech Sector in the follwoing Three points:
1. We have not reversed the decline in R&D productivity. We probably haven’t even slowed it.
Celgene’s success has come through drugs derived from its original success, repurposing thalidomide as a treatment for multiple myeloma and from Abraxane, an improved version of the 1990s cancer drug Taxol. Biogen’s big hit, Tecfidera for multiple sclerosis, is a new formulation of a drug that had been used to treat psoriasis in Germany. Porges points out that Celgene is now betting on a new first-in-class molecule, sotatercept. And Biogen’s big event this year will be data for its anti-LINGO program, which is a brand new way to treat multiple sclerosis. He says Alexion and Vertex are likely facing longer odds than they have in the past. Drug research: it’s really, really hard.
2. The FDA is not fundamentally friendlier to companies than it was in the past.
Novo Nordisk found itself years behind competitors because the FDA insists on a heart safety study of its new insulin. Amarin and Omthera, both makers of fish oil pills, both told investors the FDA said it would allow them to market their products to a broader population if they started big studies to prove the pills prevent heart attacks and strokes; then the FDA apparently changed its mind.FDA’s goal was to “avoid accountability for its role in the Avandia tragedy.” – Avandia got back on the Market.
3. Pricing Power May Not Last Forever
Matthew Herper writes: “Fears surrounding Congressional noise about the high price of Gilead’s Sovaldi for hepatitis C seem to have started the current drop in stock prices.”
Cystic Fibrosis drug Kalydeco, saying it won’t pay the full price of $307,000 per patient per year.
Joseph Jimenez, the CEO of Novartis,foresees governments become much tougher negotiators, forcing drug companies to become much more focused of providing services along with their medicines.
The Well Positioned Biotech Companies
Regeneron and partner Sanofi have several potential blockbusters in their shared pipeline, including not only their PCSK9 cholesterol drug but medicines for rheumatoid arthritis and asthma.
Gilead’s Sovaldi has a medicine that seems likely to have some of the best annual sales ever, has got to be worth something
Vertex’s combination therapy for cystic fibrosis could show positive results later this year.
New Trends in BioTechnology & Medicine
1. Genomics Research
Lev-Ari, A. 3/25/2014. Evaluate your Cas9 Gene Editing Vectors: CRISPR/Cas Mediated Genome Engineering – Is your CRISPR gRNA optimized for your cell lines?
Genomics Orientations for Individualized Medicine. Volume One in Series B: Frontiers in Genomics Research
2. Cancer Research
Cancer Biology and Genomics for Disease Diagnosis. Volume One in Series C: e-Books on Cancer & Oncology
Bernstein, H Larry, 3/26/2014. A Synthesis of the Beauty and Complexity of How We View Cancer
3. Alzheimers’ Disease
2014 Seven Laureates of Dan David Prize – 1Million US$ each for Outstanding Scientific, Technological, Cultural, or Social Achievements Having an Impact on Our World
3. Cardiovascular
Etiologies of Cardiovascular Diseases: Epigenetics, Genetics and Genomics. Volume Three in Series A: e-Books on Cardiovascular Diseases
4. Biologicals
Lev-Ari, A. 4/3/2013 Fight against Atherosclerotic Cardiovascular Disease: A Biologics not a Small Molecule – Recombinant Human lecithin-cholesterol acyltransferase (rhLCAT) attracted AstraZeneca to acquire AlphaCore
Lev-Ari, A. 7/30/2012 Biosimilars: Intellectual Property Creation and Protection by Pioneer and by Biosimilar Manufacturers
Lev-Ari, A. 7/29/2012 Biosimilars: Financials 2012 vs. 2008
http://pharmaceuticalintelligence.com/2012/07/30/biosimilars-financials-2012-vs-2008/
Lev-Ari, A. 7/29/2012 Biosimilars: CMC Issues and Regulatory Requirements
http://pharmaceuticalintelligence.com/2012/07/29/biosimilars-cmc-issues-and-regulatory-requirements/
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