Showing posts with label treatment. Show all posts
Showing posts with label treatment. Show all posts

Friday, July 31, 2015

Israeli & Canadian Pharmaceutical Companies Leapfrog their way to the top Teva, Valeant VRX game changing drugs ms

Attention investors: take a long hard look at Teva Pharmaceutical Industries of Jerusalem and Valeant Pharmaceutricals of Montreal - you won't regret it !

pharmaceutical companies, pharmacies, industries, drug therapy, botox, skin, salix pharmaceuticals, ms treatment, xifaxan, salix pharmaceuticals, valeant pharmaceuticals, teva allergan, reaction, pharmaceuticals, drugs, ms, multiple sclerosis, muscle, pain management, subsidiaries, divisions, therapy,
Just last week nyse:TEVA paid $40.4 billion for Allergan's nyse:AGN generic drug business giving the world's largest generic drug maker an even bigger international presence (Allergan was/is present in more than 100 countries).

This also gives them more leverage because more revenue spreads fixed costs over more units of output - which is important in the business of low margin generic drugs.

Though ms drug Copaxone faces increased competition from Novartis and Momenta among others, their proprietary brand continues to grow (last quarter both in terms of sales +12% = 50% of company profit and about a fifth of company revenue) and share of the market for MS prescriptions (31%) - thanks in part to more innovative ways of introducing the drug to patients (3X a week 40mg version vs 6X by competing brands).  And don't forget about the over-the-counter products - Teva has hugely benefited from key partnerships with companies like Proctor and Gamble and even Canada's Life brand (Shoppers Drug Mart).  For instance in Canada products include sea salt for baths.

Another overlooked aspect of the company - it is deeply rooted in Israel and has strong connections with Israeli universities - this is key since these institutions are credited with having developed important drugs such as Copaxone and Azilect.

Financials - Teva was doing well even before taking into considering recent acquisitions - in GAAP terms operating income and net income more than doubled last year despite revenue being stable.  All major metrics have been stable since 2010 with non GAAP earnings per share up steadily : 4.54 in 2010, 4.97 in 2011, 5.01 in 2013 to 5.14 in 2014.

Teva - making Israel proud : The deal for Allergan is the biggest in Israel's corporate history !

Valeant Pharmaceuticals nyse: VRX - merging its way to the top one company at a time - acquiring game changing drugs


According to CEO Mike Pearson, Valeant remains focused on medium sized acquisitions - this, despite the fact that the more recent deals have been game changing (Salix Pharmaceuticals ltd for $10.1 billion) and the tug-of-war for control of privately held botox maker Allergan plc.

July 2015 - Just this month Valeant took control of one of Egypt's leading drugmakers Amoun Pharmaceutical by taking over parent company Mercury Holdings ($800 million deal).


Sunday, May 31, 2015

Alexion Pharmaceuticals Inc ALXN Organic Growth Potential Kanuma, Transforce Inc TFI a powerhouse trucking company acquisitions

Alexion Pharmaceuticals (ALXN) is a global leader in the development and commercialization of transformative therapies for patients with rare diseases.  Since taking over Synageva Biopharma (GEVA) the company now operates in more than 50 countries.

Last year at this time Alexion was rumored as a takeover target - today it is the one doing the takeovers !
transport companies, trucking, eculizumab, rare diseases, organic growth stocks, enzyme replacement, mergers, aquisitions, mergers and acquisitions, alexion pharmaceuticals, alxn, market leader, rare, medical, medicine, ecoli, treatment, kanuma, genetic mutations, shareholders, cost savings, soliris,
ALXN experienced lots of organic growth during the past few years and that isn't expected to change with little to no competition (thanks in part to successful takeover bids for rivals Enobia and Synageva Biopharma Corp (GEVA).  Also notable is that the company has high institutional ownership (97%) meaning that many of its shareholders are leading investment firms.

What is clear is this - the company is growing fast and no wonder

  • it owns the patent rights to three of the hottest (and priciest) drugs on the market for rare diseases: Kanuma (treats LAL a life threatening disease caused by genetic mutations leading to liver and other tissue problems), Soliris ($2 billion in revenue last year just from this one drug) and Eculizumab.  Its latest acquisition has eight other product candidates including one relating to enzyme replacement therapy for patients with MPS a genetic metabolic disease - 30 pre clinical programs in total.
  •  recently initiated multinational trial of Eculizumab for prevention of delayed graft function.
  •  is on an acquisitions spree !  and the takeovers are aggressive and that's leading to more successful bids.
  • June 2015 acquires Synageva for $8.4 billion
  • average price target set by the sixteen major equity research groups is $210.07 or 28% higher than the stock is currently trading at.
  • price remains above the most conservative estimate of $173 set by Citigroup.
  • cost savings from acquisitions will allow it to spend more in the future
  • between June 2014 and March 2015 the company's cash and equivalents rose by 50% to $916.81 million with total debt down 40% to $45.5m and long term debt down to zero.
  • only drawback is that there are dividends.

latest financials
-- 1q2015 Alexion revenue of $600.3 million beats estimates ($594.4 million).  Earnings were as expected ($1.28 vs $1.32 est).

 

Montreal-based Transforce Inc (TSX:TFI) another growth stock

Canada's largest trucking company has grown into one of North America's three largest transport companies.
notes
  • significant growth stateside in just four years (key acquisitions include Dynamex, IE Miller, Concord Transport).
  • May 20, 2015 - acquires US based Hazen Final Mile, a last minute delivery company.
  • takeover of Contrans Group ($580 million, early 2015) makes TransForce a powerhouse in Canada.
  • unlocking value from its waste management business presents unique opportunity for organic growth.