Worldwide Medical Devices sales increased 5.5% on a reported basis in the first quarter and increased 9.5% on an organic basis, led by double-digit growth in Electrophysiology, Heart Failure, Structural Heart and Diabetes Care.
Wednesday, April 17, 2019
MacroGenics initiated at Credit Suisse
MacroGenics initiated with an Outperform at Credit Suisse. Credit Suisse analyst Michael Morabito started coverage of MacroGenics with an Outperform rating and a $29 price target. The analyst believes MacroGenics is an opportunity driven by a pipeline with multiple upcoming proof-of-concept data readouts. Clinical updates on lead asset margetuximab in breast cancer are likely to drive the stock in the short term, but the base platform holds the most potential value, he contends.
Issues facing healthcare sector now ‘modest’ compared to 2008-10: Stephens
Stephens analyst Scott Fidel noted that the managed care group has sharply underperformed the S&P 500 over the last month amid “political rhetoric” around point-of-sale drug rebates and Medicare for all policy proposals, though he believes the issues facing the sector right now “seem modest in comparison” to the “dark days of 2008-2010.” While recent Medicare for all proposals have rattled investors, “they will face enormous uphill battles,” Fidel tells investors. Hospital stocks have outperformed MCOs year-to-date, but the group declined about 9% yesterday and underperformed the MCO group, which Fidel attributes to acknowledgement by industry bellwether UnitedHealth (UNH) of the significant disruptive nature of Medicare for all, which may have sparked additional fears, as well as one less calendar day being called out by UnitedHealth as benefiting Q1 MLRs and Johnson & Johnson’s (JNJ) earnings call commentary on declining sequential hospital admissions from Q4. Publicly traded companies in the hospital space include Community Health (CYH), HCA Healthcare (HCA), LifePoint (LPNT), Tenet (THC) and Universal Health (UHS). Publicly traded companies in the managed care space include Anthem (ANTM), CVS Health (CVS), Centene (CNC), Cigna (CI), Health Net (HNT), Humana (HUM), Molina Healthcare (MOH), UnitedHealth (UNH) and WellCare (WCG)
Sarepta remains in leading position on DMD and LGMD, says BTIG
BTIG analyst Timothy Chiang kept his Buy rating and $190 price target on Sarepta after attending the MDA Clinical & Scientific Conference this week, saying that its AAVrh74 gene therapies have received “a lot of attention” in the areas of Duchenne Muscular Dystrophy, or DMD, and Limb Girdle Muscular Dystrophy, or LGMD. The analyst also notes that many of the sessions discussing novel potential gene therapies for DMD/LGMD have been “packed with physicians / scientists / industry reps”, adding that manufacturing scale up for gene therapies has also been widely discussed.
Veeva price target raised to $150 from $135 at Needham
Needham analyst Scott Berg raised his price target on Veeva to $150 and kept his Buy rating after the company announced its “first significant win” for its Clinical Data Management System in a global contract with a Top 20 pharma company. While it may not reflect a “new trend”, the analyst believes that the transaction “signifies the growing momentum of Veeva’s broader Vault solution across clinical operations.” Berg adds that the contact will have minimal FY20 financial impact, but is likely to ramp up to a sizable revenue stream over a multi-year period.
Arcadia Biosciences initiated at National Securities
Arcadia Biosciences initiated with a Buy at National Securities. National Securities analyst Ben Klieve initiated Arcadia Biosciences with a Buy rating and $15 price target, telling investors in a research note that Arcadia is a small cap investment that is addressing a large scale market opportunity by utilizing gene technology to develop crops with enhanced nutritional profiles and growth characteristics. “A number of development initiatives” are starting to transition to commercialization, Klieve says, adding that he expects the company will move to a $100M revenue business in 2023 from a pre-commercial revenue business in 2018
Brainsway opens at $11.14, IPO priced at $11.00 per share
Brainsway (BWAY) priced 2.5M shares at $11.00. Cantor Fitzgerald, Raymond James and Oppenheimer are acting as joint book running managers for the offering.
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