Health and Healthcare
6 BioPharma Movers That Cannot Be Ignored
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Last week, a few biotech companies made absolutely massive runs, and some had serious falls. In the past year, the health care sector was on fire from positive trials, U.S. Food and Drug Administration (FDA) approvals and mergers and acquisitions. The companies that 24/7 Wall St. has picked stood out from the rest with large swings over the course of the week. We have included information about each company, as well as recent trading activity and the consensus price target.
Valeant Pharmaceuticals International Inc. (NYSE: VRX) was compared to Enron in a recent research report from Citron Research, a short-selling firm. On this news, shares sank by over 26%. Since then the company has defended itself and its relationship with Philidor, which was questioned in the report, as well as its accounting practices. The company has cut ties with Philidor and activist investor Bill Ackman has come to its aid. By the end of the week, shares still were down 13%, and year to date they are down 34%. Shares closed at $93.81 on Friday. The stock has a consensus analyst price target of $52.38 and a 52-week trading range of $88.50 to $263.81.
Endo International PLC (NASDAQ: ENDP) announced Monday morning that the FDA had approved its long term opiod treatment Belbuca, a joint effort by Endo and another mover on this list. The drug is intended for use in patients with chronic pain severe enough to require daily, around-the-clock, long-term treatment for which alternative treatment options are inadequate. Over the week, shares rose more than 8%, but year to date shares are down roughly 17%. Endo shares closed out the week at $59.99, within a 52-week trading range of $46.66 to $96.58. The consensus analyst price target is $92.47.
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BioDelivery Sciences International Inc. (NASDAQ: BDSI) partnered with Endo in the production of the Belbuca treatment. As a result of the approval, Endo now owes a milestone payment of $50 million to BioDelivery Sciences, pursuant to their 2012 worldwide license and development agreement for the commercialization of Belbuca. The company estimates that this milestone payment will provide it with sufficient capital to operate its business through roughly the middle of 2017. Last week, shares dropped 10%, and year to date shares are down 55%. Shares of BioDelivery closed at $5.38 on Friday. The consensus price target is $15.50, and the 52-week trading range is $4.66 to $18.33.
Allergan PLC (NYSE: AGN) issued a press release early in the week noting that it had been approached by another major biopharma company and is in “preliminary friendly discussions regarding a potential business combination transaction.” In short, Allergan is in merger talks. Shares rose 17% last week, and year to date shares are up nearly 20%. The stock ended the week at $308.47, within the 52-week range of $237.36 to $340.34. The consensus price target is $356.88.
Pfizer Inc. (NYSE: PFE) is potentially looking to acquire Allergan, but what would a combined Pfizer-Allergan actually look like? The deal would offer a potential tax-inversion strategy, at least in some part, and that would bring political attacks. The combination in effect would merge multiple companies, given that both Allergan and Pfizer have made recent mergers (Actavis and Hospira) and both are restructuring. Pfizer shares rose more than 5% but then gave up that gain last week, but year to date shares are up more than 8%. The stock closed at $33.82 on Friday. Its consensus price target is $40.06, and it has traded between $28.47 and $36.46 in the past year.
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Boston Scientific Corp. (NYSE: BSX) posted its third-quarter results on Wednesday. The reported $0.24 in earnings per share and $1.89 billion in revenue, compared to consensus estimates from Thomson Reuters of $0.23 per share on $1.86 billion. The same period of the previous year had $0.20 in per-share earnings, as well as revenue of $1.85 billion. Investors were especially happy with these results, and that Boston Scientific said it closed the acquisition of its AMS male urology portfolio from Endo, further strengthening its leadership in the field. Over the week, shares rose more than 9%. They are up 38% year to date, closing at $18.28 on Friday. The 52-week range is $12.56 to $18.62. The consensus price target is $20.76.
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