Tuesday’s Top Health Care Stories: Johnson & Johnson, Teva, Mylan, and Dynavax

Johnson & Johnson, Teva, Mylan, and Dynavax could all loom large in health care headlines this Tuesday morning.

Apr 15, 2014 at 9:22AM


Let's take a quick look at four stocks -- Johnson & Johnson (NYSE:JNJ), Teva (NYSE:TEVA), Mylan (NASDAQ:MYL), and Dynavax (NASDAQ:DVAX) -- which could all loom large in health care news this Tuesday morning.

Johnson & Johnson reports first quarter earnings, raises full-year guidance
Johnson & Johnson just reported its first quarter earnings, topping analyst estimates on both the top and bottom lines. J&J's first quarter revenue climbed 3.5% year-over-year to $18.1 billion while adjusted earnings per share climbed 6.9% to $1.54. Analysts had expected the diversified medical giant to earn $1.48 per share on revenue of $18 billion.

J&J's Pharmaceuticals segment was the standout performer during the quarter, reporting that revenue increased 10.8% year-over-year jump to $7.5 billion. Pharmaceuticals revenue growth was fueled by strong demand for the psoriasis treatment Stelara, the antipsychotic Invega Sustenna/Xeplion, the HIV treatment Prezista, and the multiple myeloma treatment Velcade. Newer products like the hepatitis C treatment Olysio/Sovriad, prostate cancer drug Zytiga, the blood thinner Xarelto, and the diabetes drug Invokana also generated strong sales growth during the quarter.

Revenue from J&J's Medical Devices Diagnostics unit came in flat at $7.1 billion, while the Consumer Segment slid 3.2% to $3.6 billion. However, J&J raised its full year earnings forecast to a range between $5.80 to $5.90, up from a prior estimate of $5.75 to $5.85 per share. Shares of J&J are up more than 2% in pre-market trading.

Momenta, Novartis, and Mylan take on Teva over generic Copaxone
Momenta, Novartis' Sandoz unit, and Mylan asked the U.S Supreme Court to allow Copaxone generics to be sold while it considers the Copaxone patent. Teva had previously asked Chief Justice John Roberts to block sales of generic Copaxone while the Supreme Court resolves a patent claim which could shield Copaxone from generic competition until September 2015.

Copaxone is Teva's top-selling drug with $3.2 billion in annual U.S. sales, and accounts for more than half of its profit. The patents protecting Copaxone were originally expected to expire on May 24.

Momenta, Sandoz, and Mylan claimed that they would suffer "immense harm" if they were barred from selling generic versions of Teva's blockbuster multiple sclerosis (MS) drug Copaxone next month. The three companies haven't stated if they will launch generic Copaxone before the Supreme Court reaches a decision early next year.

However, they stated that blocking generic versions for such a long period would "decide this litigation for Teva" by giving the company time to switch patients over from a 20 mg dose to a 40 mg dose currently covered by other patents before generic competition begins.

Mylan signs a partnership with Prosonix to market generic Flixotide and Flovent
Meanwhile, Mylan just announced a partnership with specialty pharmaceutical company Prosonix to develop for its leading inhaled respiratory products, PSX1001 and PSX1050. Those two drugs are being developed as generic versions of GlaxoSmithKline's asthma treatments Flixotide and Flovent, which generated sales of approximately $1.3 billion in fiscal 2013.

Prosonix expects the first market authorization application for PSX1001 to be submitted in Europe this year. Under the terms of the agreement, Prosonix will file PSX1001 in the EU and retain marketing rights in some areas. Mylan will get the marketing rights for PSX1001 and PSX1050 in the U.S., Canada, the EU, and the Russian Federation, as well as several other countries. The financial terms of the deal were confidential.

Dynavax initiates HBV-23 for Heplisav-B
Last but not least, Dynavax just announced the initiation of a new phase 3 clinical trial for Heplisav-B, its investigational adult hepatitis B vaccine, known as HBV-23. The study, which includes approximately 8,250 patients aged 18 to 70, is intended to address safety concerns outlined in the complete response letter the company received from the FDA last February. The company expects that all subjects will be enrolled by the end of 2014.

The larger study is intended to provide better clarity regarding the vaccine's safety profile by expanding the database of vaccinated subjects. Heplisav-B has demonstrated a higher degree of seroprotection (an anti-hepatitis B concentration of 10 mIU/mL or greater) than Engerix-B in two previous trials (HBV-10 and HBV-16).

Dynavax issued a secondary offering last October to raise $125 million to fund HBV-23. If approved, analysts expect Heplisav to generate peak sales of up to $775 million by 2020. Dynavax does not currently have any marketed products.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Leo Sun has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson, Momenta Pharmaceuticals, and Teva Pharmaceutical Industries. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers