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

Allergan, Anacor, and Sinovac are the top health care stocks to watch this Monday morning.

Jul 21, 2014 at 9:05AM


Let's take a look at three stocks -- Allergan (NYSE:AGN), 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.


Leo Sun has no position in any stocks mentioned. The Motley Fool recommends Valeant Pharmaceuticals. The Motley Fool owns shares of Valeant Pharmaceuticals. 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

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, 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