Please ensure Javascript is enabled for purposes of website accessibility

Amgen's Win, Netflix's Hire Send Nasdaq Higher

By Dan Caplinger - Jul 1, 2020 at 3:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Nasdaq scored some more gains Wednesday.

The first half of 2020 was turbulent, but it was generally good to the Nasdaq stock market, and that momentum continued on the first day of July. The Nasdaq Composite (^IXIC 0.00%) and the Nasdaq 100 climbed around 1%, outpacing much of the rest of the market.

Some big-name players on the stock exchange made major contributions to the advance. Amgen (AMGN 1.50%) celebrated a valuable legal win, while Netflix (NFLX 6.16%) made a strategic hire and got praise from stock analysts. Let's look more closely at the news that moved the Nasdaq higher Wednesday.

A big patent win

Amgen shares moved higher by 8% after the U.S. biotech giant got a favorable ruling from an appellate court. The victory over the Sandoz division of Novartis (NVS 0.32%) could put an end to the long-held dispute, although Novartis hopes that the U.S. Supreme Court might be willing to take a look at the case.

In August 2019, a federal district court upheld Amgen's patents protecting its best-selling anti-inflammatory Enbrel from biosimilar competition. The judgment prevented Novartis from launching a biosimilar version of the treatment, Erelzi, without working out a licensing agreement with Amgen first. Novartis chose not to give up and instead appealed the decision.

All-wood courtroom as seen from the jury section, with rows of chairs, American flag, and arched doors.

Image source: Getty Images.

Today's decision from the U.S. Federal Circuit Court of Appeals upheld the lower court's ruling. By a 2-1 decision, Amgen will now have protection for Enbrel through late 2028.

Interestingly, Novartis shares didn't drop after the decision. The Supreme Court hears only a tiny fraction of the appeals it's invited to consider, and so it's more likely that if Novartis wants to move forward with Erelzi, then the biotech stock will have to work out some kind of deal with Amgen to do so.

Tuning In to Netflix

Shares of Netflix were also sharply higher Wednesday, rising 7%. The streaming video giant got some reviews from stock analysts today, perhaps in part because of the company's decision to bring on new talent to its executive team.

Netflix announced late Tuesday that it had named former Apple senior executive Bozoma Saint John to be its chief marketing officer. Most recently having worked at the marketing agency Endeavor, Saint John has been responsible for high-profile marketing campaigns that Netflix hopes will help boost the streaming video company's creativity and connection to viewers.

Stock analysts like what they're seeing from Netflix as well. One analyst boosted its price target by $50 to $550 per share, while another included Netflix on its list of top investment ideas.

Netflix has benefited greatly from rising viewership and subscriber interest during the coronavirus pandemic, which has encouraged many viewers to stay at home. Even as competition continues to emerge in the streaming video space, shareholders have high hopes that Netflix has the first-mover edge to stay ahead of the pack well into the future.

Dan Caplinger owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Netflix. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Netflix, Inc. Stock Quote
Netflix, Inc.
$244.11 (6.16%) $14.17
Amgen Inc. Stock Quote
Amgen Inc.
$252.09 (1.50%) $3.73
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
$12,493.93 (0.00%) $0.00
Novartis AG Stock Quote
Novartis AG
$87.43 (0.32%) $0.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.