Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Monday’s Top Biotech Stories: Allergan, Anacor, and Sinovac Biotech

Let's take a look at three stocks -- Allergan (NYSE: AGN.DL  ) , Anacor Pharmaceuticals (NASDAQ: ANAC  ) , and Sinovac Biotech (NASDAQ: SVA  ) -- which could all loom large in health care headlines this Monday morning.

Allergan tops earnings estimates for the second quarter
Allergan just posted its second quarter earnings. The company's non-GAAP earnings per share rose 23.8% year-over-year to $1.51 per share, topping analyst estimates by $0.07. Total revenue rose 16.7% to $1.86 billion, topping expectations by $80 million.

Allergan's top line growth improved across the board. Revenue at Allergan's largest business, its eye care segment, rose 14.5% year-over-year to $827 million. Sales of Botox and neuromodulators rose 12.9% to $579.4 million. Sales of core medical devices, consisting of facial and breast aesthetic products, climbed 25.8% to $288.5 million. Looking ahead, Allergan expects to full year Botox sales between $2.2 billion to $2.28 billion. It expects sales of Restasis, its top dry eye treatment, to come in between $1.04 billion to $1.07 billion.

Investors should remember that Allergan is currently being targeted by Valeant Pharmaceuticals (NYSE: VRX  ) in a $53 billion hostile takeover attempt. Valeant also recently complained to U.S. and Canadian regulators, alleging that Allergan made false statements to investors regarding sales at the former's Bausch & Lomb eye care unit.

Anacor signs a deal with Sandoz to commercialize Kerydin
Anacor Pharmaceuticals just announced that it entered an exclusive agreement with Novartis' (NYSE: NVS  ) Sandoz subsidiary to commercialize and distribute Anacor's Kerydin topical solution. Kerydin is a treatment for a fungal infection of the toenail which affects roughly 35 million people in the United States. The FDA approved Kerydin earlier this month. Wedbush Securities expects the drug to generate sales of $16 million next year and peak sales of $347 million by 2021.

Last month, the FDA approved a rival drug, Jublia, from Valeant Pharmaceuticals. Anacor's stock plunged last year when clinical data showed Kerydin's degree of benefit appeared to be lower than Jublia's.

The deal entitles Anacor to upfront payments up to $40 million and an additional milestone payment of $25 million expected in January 2015. Sandoz and Anacor will share gross profits equally, but starting in 2015, profit sharing payments will be made to Anacor only after Sandoz accrues the first $50 million of gross profits. The long-term profit-sharing arrangement includes minimum cumulative profit-sharing payments to Anacor totalling $45 million. All these payments should significantly boost Anacor's revenue, which came in at $17.2 million in 2013.

Anacor also gets an option to repurchase all rights to Kerydin from Sandoz either three years after launch or by December 31, 2017, whichever comes first. Anacor expects the drug to be launched as early as the end of the quarter in the United States. Shares of Anacor are up more than 7% in pre-market trading this morning.

Sinovac receives tender to supply the Beijing Health Bureau with vaccines
Chinese vaccine maker Sinovac Biotech just announced that the Beijing Health Bureau has selected it as the sole supplier of inactivated hepatitis A vaccine in pre-filled syringes to the EPI (Expanded Program of Immunization). The tender is valued at roughly 16 million RMB ($2.58 million). The vaccines purchased by the Beijing Health Bureau will be used between 2014 to 2016. Sinovac expects to start deliveries within the next few months.

Sinovac's inactivated vaccine, Healive, was launched in 2002 and is currently available in adult and pediatric doses. China has used Healive in China's national immunization program since February 2008. Last month, Sinovac announced that its value added tax (VAT) applied to the sales of Sinovac's vaccine products will be reduced from 6% to 3% effective July 1.

Both developments are positive ones for Sinovac, which has rallied 44% over the past 12 months.  

Leaked: This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool’s new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3036127, ~/Articles/ArticleHandler.aspx, 9/4/2015 9:18:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Leo Sun

Leo has covered the crossroads of Wall Street and Silicon Valley since 2012. Follow him on Twitter for more updates!

Today's Market

updated 2 minutes ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
AGN.DL $0.00 Down +0.00 +0.00%
Allergan, Inc. CAPS Rating: ****
ANAC $132.95 Up +0.74 +0.56%
Anacor Pharmaceuti… CAPS Rating: *
NVS $94.55 Down -0.81 -0.85%
Novartis CAPS Rating: ****
SVA $5.10 Down -0.10 -1.92%
Sinovac Biotech Lt… CAPS Rating: **
VRX $229.53 Up +1.06 +0.46%
Valeant Pharmaceut… CAPS Rating: ***