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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers