• Obamacare and Generic Pharmaceuticals

    By Daniel Jennings - August 9, 2013 | Tickers: ACT, PRGO, TEVA

    Will generic pharmaceutical makers like Teva Pharmaceutical (NYSE: TEVA) and Perrigo (NYSE: PRGO) continue to be a value play after Obamacare kicks in next year?

    That’s a fair question to ask because some of these companies seem to be on shaky ground now. Revenues and free cash flow have been falling without Obamacare.

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    Teva saw its revenues fall by 8% in the fourth quarter of 2012 and a pretty more »

  • This Deal Could Shake Up the Generic Drug Business

    By Mike Thiessen - August 8, 2013 | Tickers: ACT, ELN, PRGO

    Many market-watchers are scratching their heads about the pharmaceutical industry's latest blockbuster deal. Although it had been expected to make such a move for some time, Perrigo Company (NYSE: PRGO) is not regarded as the "ideal" buyer for Dublin-based Elan (NYSE: ELN). Both firms operate as generic drug-makers, but the synergies between the two are not immediately obvious. 

    Moreover, Elan is coming off of a long, painful battle to more »

  • A Closer Look at Pfizer’s Three-Way Split

    By Leo Sun - August 7, 2013 | Tickers: ABT, ACT, MRK, PFE, TEVA

    Last week, pharma giant Pfizer (NYSE: PFE) announced that it was planning to split the company into three businesses -- a move that had been long anticipated by analysts and investors alike. Although this move streamlines the company’s core businesses’ financials, does it change anything for investors?

    Prelude to a spin-off

    In its first business segment led by Geno Germano, Pfizer intends to group immunology and metabolic treatments together with more »

  • Is This Acquisition a Game Changer?

    By Awais Iqbal - August 5, 2013 | Tickers: ACT, ELN, PRGO

    A patented drug is a cash cow for drug manufacturers. There are two ways to have a patented cash generating drug on a pharmaceutical company’s pipeline. Either conduct research and organically develop the medicine, or acquire a company with a strong pipeline. The latter option is what Perrigo (NYSE: PRGO) recently opted for by acquiring Elan (NYSE: ELN). Additionally, Perrigo looks forward to increasing its international presence with this more »

  • Should Companies Use Acquisitions and Financial Engineering to Reduce Corporate Taxes?

    By Leo Sun - August 2, 2013 | Tickers: ACT, AAPL, ELN, PRGO, WCRX

    Perrigo (NYSE: PRGO), an American company best known for selling generic medication, baby formula and nutritional supplements, recently acquired Irish drugmaker in Elan (NYSE: ELN) for $8.6 billion in an unexpected deal that initially left investors puzzled. After all, what would Perrigo gain by acquiring Elan, a biotech primarily focused on experimental treatments for neurodegenerative and autoimmune diseases? The answer was simple - lower tax rates.

    A big buy for more »

  • Conquer the Generic Drug Market With Taro

    By Jaiyant Cavale - July 31, 2013 | Tickers: ACT, TARO, TEVA

    Taro Pharmaceutical Industries (NYSE: TARO) hardly gets the attention it deserves. The Israel-based generic-pharmaceutical manufacturer supplies in Israel, the U.S., Canada, the U.K., Ireland and in a few other countries. The company was listed on New York Stock Exchange Euronext in March 2012 and is currently one of the best pharmaceutical companies to invest in. In this article, I shall profile this relatively unknown company and discuss why more »

  • How Acquisitions Mean Growth for These Generic Drug Makers

    By Madhukar Dubey - July 22, 2013 | Tickers: ACT, MYL, WCRX

    The global generic drug industry will reach $169 billion in 2014 with a compounded annual growth rate of 15% over five years. The patent expiration of branded drugs opens the door for generic versions, fueling the growth of the generic drug industry. Additionally, the companies in this industry are adopting strategies to maintain growth momentum and investor confidence, including focusing on emerging markets and acquisitions.

    This article analyzes three companies more »

  • Generics Set to Soar

    By Marshall Hargrave - July 22, 2013 | Tickers: ACT, HSP, MYL, TEVA

    IMS Health pegs the worldwide generic drug market at an impressive $240 billion, which should only grow over the long-term as a large number of branded drugs lose patent protection -- pushing the total generic drug market to over $420 billion in 2016. 

    Other key factors driving generic market growth will be a rapidly aging population and the healthcare reform in he U.S., which will give more people access to more »

  • Can Fish Oil Help This Drug Giant Regain its Mojo?

    By Robert Hanley - July 15, 2013 | Tickers: ACT, AZN, OMTH

    AstraZeneca’s (NYSE: AZN) financial results have been on a downward spiral lately, as patent expirations have led to sharp declines in sales of its leading drugs.  In 2012, the company lost $4.5 billion of sales due to exclusivity expirations in various regions, a portion of which was attributable to its top-selling Crestor cholesterol drug.  In response, management went outside the company to try to protect its cardiovascular franchise more »

  • Value Investor Francis Chou’s Top Picks

    By Meena Krishnamsetty - July 15, 2013 | Tickers: ACT, DELL, RFP, SHLD

    Francis Chou, of Chou Associates Management, was recognized by Morningstar with the Fund Manager of the Decade award in 2004. We track his quarterly 13F filings alongside those of hundreds of hedge funds and other notable investors as part of our work developing investment strategies (for example, we’ve found that the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 more »

  • Is This Large Pharma Acquisition Worth Its Price?

    By Sherrie Stone - July 12, 2013 | Tickers: ACT, WCRX

    If you are an Actavis (NYSE: ACT) investor, then maybe you’ve enjoyed the 16% gain since the pharmaceutical company's announced acquisition of Warner Chilcott (NASDAQ: WCRX). Therefore, you might be a little frightened by reports that the FTC is requesting more information regarding the acquisition. Clearly, the FTC could block the deal -- but would this be good or bad for Actavis?

    Does The FTC News Have Meaning?

    Like more »

  • Will New Competition Be the End of This Rally?

    By Sherrie Stone - July 9, 2013 | Tickers: ACT, RB

    In the last decade, Reckitt Benckiser (LSE: RB)  has seen its market capitalization increase from just $8.25 billion to nearly $35 billion -- a gain of more than 300%! For a non-cyclical company, such gains are very impressive.

    So what is it that has created such large gains? Most of the company’s segments have only grown at the rate of GDP. In fact, its biopharmaceutical segment is the only more »

  • Turing the “Risk-On” Switch Off

    By Michael Mandala - July 9, 2013 | Tickers: ACT, BAMXF, CAKE

    Today's investing environment is one that forces decisions to be made and, consequently, many errors.  In so many cases, investors take an emotional approach to their portfolio, resulting in impaired profit-taking or riding the bull to the bear without letting go. Additionally, I've witnessed many astute men and women rely on countless research reports just to buy a stock and stay up all night worrying about it.  

    My more »

  • Do Generic Drugs Drastically Alter Market Dynamics?

    By Kanak Kanti - July 9, 2013 | Tickers: ABBV, ACT, AMGN

    Pharma companies have been paying off generic drug makers so that cheap generic drugs do not enter the market. In a settlement case involving AbbVie (NYSE: ABBV), the U.S. Supreme Court dealt a blow to this practice, allowing the FTC to take action against these deals. The judgment is seen as a “significant victory for the consumers and free trade.” However, the market remains relatively unaffected.

    The case

    The more »

  • Can You Profit From This Pharma Tie-Up

    By Robert Hanley - June 27, 2013 | Tickers: ACT, CBM, WCRX

    Niche biotech company Warner Chilcott (NASDAQ: WCRX) has been looking for an exit strategy ever since announcing strategic alternatives back in August 2012.  The company has strong product lines in women’s health and gastroenterology, but it has had trouble finding success in its quest for new blockbuster drugs.  Compounding Warner’s problems, the generic drugmakers have been nipping away at its market share in key areas, including its osteoporosis more »

  • Companies With Upcoming Legal Decisions

    By Alexander Maxwell - June 21, 2013 | Tickers: ACT, DELL, MNTA, WILN

    Filing a lawsuit, and seeing the lawsuit through to fruition can have substantial ramifications for any company. Whether the outcome of the lawsuit is good for the investors in the company, or bad the ramifications for the lawsuit can be enormous.


    Momenta Pharmaceuticals (NASDAQ: MNTA) is engaged in litigation versus Actavis (NYSE: ACT) and its partner Amphaster. The lawsuit is over a generic version of Lovenox. Originally, Momenta and more »

  • "Pay-For Delay" Was Fun While It Lasted

    By Sherrie Stone - June 18, 2013 | Tickers: ABBV, ACT, PFE

    When the FTC and the U.S. Supreme Court start breathing down your neck it’s not a pleasant thing, and could become very expensive for certain companies. Yet, not many people are talking about the trouble that generic and brand-name drug makers are finding themselves in.

    Uncovering a costly practice

    Last year, the FTC uncovered a number of agreements between large pharma and generic drug companies, which it called more »

  • Warner Chilcott: Should You Buy Joel Greenblatt's Latest Pick?

    By Zarr Pacificador - June 13, 2013 | Tickers: ACT, MYL, VRX, WCRX

    Searching for potential stock investments can be a daunting task. With so many stocks to choose from – more than 2,300 listed on the NYSE and around 2,800 on Nasdaq – how do you find good ideas?

    One way, and the probably the most common way, is the use of stock screens. With information on publicly listed companies increasingly available online, it is easier now to come up with a more »

  • Is This Hurting Healthcare Company Priced for a Recovery?

    By Bob Chandler - June 13, 2013 | Tickers: ACT, HSP, MYL

    Nothing interests a value investor more than bad news. Where there's a lack of enthusiasm, there's usually a cheap stock. Hospira (NYSE: HSP), a leading manufacturer of generic specialty injectable drugs and infusion pumps, looked a likely candidate. Since mid-2010, the company has delivered a litany of bad news but instead of a depressed bargain the share's look surprisingly fit.

    A chronic case of unsettling news

    The more »

  • Bunavail Looks Promising: If The Cards Are Played Right!

    By Sherrie Stone - June 11, 2013 | Tickers: ACT, BDSI, RB

    Since the end of 2011, BioDelivery Sciences International (NASDAQ: BDSI) has traded higher by almost 400%. The excitement surrounding the stock is with its two late-stage products, especially Bunavail for the treatment of opioid dependence.

    BioDelivery plans to submit its New Drug Application (NDA) in late summer, meaning a decision should be expected sometime early next year. If approved, Bunavail would compete directly with the blockbuster drug Suboxone; a drug more »

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