Jefferies analyst Randal Konik raised his price target for Planet Fitness (PLNT) to $85 from $75 saying the company reported “great” Q1 results with comps and margins ahead of consensus. However, the shares are trading lower due to elevated expectations, Konik tells investors in a research note. He continues to believe Planet Fitness’ investments in marketing, expanding affinity programs, increasing Black Card penetration, and membership growth resemble a business model similar to that of Amazon.com (AMZN). The analyst sees upside in the shares and reiterates a Buy rating on the name.
Friday, May 3, 2019
Jefferies says it’s time to own shares of Abiomed
Weakness in Abiomed’s fiscal Q4 had been well telegraphed but was still worse than expected, Jefferies analyst Raj Denhoy tells investors in a research note. However, he believes issues with Impella use are being addressed and points out that April saw an uptick from March. The company’s fiscal 2020 guidance of 17%-23% “seems doable,” adds Denhoy. He lowered his price target for the shares to $330 from $460 and keeps a Buy rating on the name. The analyst believes now is the time to own Abiomed.
LivaNova to present new data stressing Perceval valve durability at AATS
LivaNova announced that new clinical data for its sutureless surgical aortic valve, Perceval, will be unveiled at this year’s American Association for Thoracic Surgery meeting. On May 4, Prof. Bart Meuris from Leuven University Hospital will present the data from his center’s 11-year clinical experience with Perceval, which represents the longest clinical follow-up for the valve that has been published. The results demonstrate the strong performance of the Perceval valve both in terms of durability and outcomes, which reaffirm its position as a trusted platform. Of particular significance in the findings is the absence of explants due to structural valve deterioration, as well as the low rate of paravalvular leak reported. The retrospective, observational, single-center study included 468 consecutive patients implanted with Perceval between 2007 and 2017: Patient mean age was 79, mean EuroSCORE II was 5.0 and STS score was 5.8. The majority of the cases treated were all-comers, including emergencies. 55% of cases were conducted as part of concomitant procedures, while a high rate of the isolated aortic valve replacement cases was carried out through minimally invasive surgery.
https://thefly.com/landingPageNews.php?id=2903137
https://thefly.com/landingPageNews.php?id=2903137
Athenex announces preliminary Oraxol data
Athenex announced preliminary data showing early clinical responses in the first part of a two part study of Oraxol monotherapy in patients with unresectable cutaneous angiosarcoma. To date, 10 patients have been enrolled in the clinical study, which is being conducted in four sites in the U.S. and Hong Kong. The first seven patients have received at least six weeks of treatment, which is the timepoint for the first response assessment; three patients have not yet reached the first assessment timepoint. Oraxol is being administered once daily for three consecutive days every week during the treatment period. All seven patients showed significant and visible reduction of the cutaneous angiosarcoma within one or two weeks of treatment. Three patients had complete responses based on Recist v1.1 criteria, with two complete responses occurring by six weeks of treatment. None of the patients enrolled have discontinued treatment due to death, disease progression, or adverse events. No peripheral neuropathy has been reported. Based on the preliminary data, the study has met the criteria required to proceed to full enrollment.
Emergent BioSolutions (EBS) Misses Q1 EPS by 22c, Offers Guidance
Emergent BioSolutions (NYSE: EBS) reported Q1 EPS of ($0.13), $0.22 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $190.6 million versus the consensus estimate of $201.16 million.
GUIDANCE:
Emergent BioSolutions sees Q2 2019 revenue of $200-220 million, versus the consensus of $254.14 million.
Emergent BioSolutions sees FY2019 revenue of $1.06-1.14 billion, versus the consensus of $1.08 billion.
Novo Nordisk Diabetes and Obesity Drugs Boost Net Profit
Danish pharmaceutical company Novo Nordisk AS (NOVO-B.KO) on Friday posted forecast-beating first-quarter net profit on the strength of its diabetes and obesity treatments, but the negative effects of foreign-exchange hedges weighed on the result.
Net profit for the three months ended March 31 fell to 10.45 billion Danish kroner ($1.57 billion) from DKK10.75 billion a year earlier, beating the DKK9.74 billion forecast by analysts in a FactSet poll. Sales rose 8.8% to DKK29.29 billion against analysts’ expectations of DKK28.93 billion.
“We delivered very solid performance in international operations, driven by sales growth in all regions, meanwhile, sales in the U.S. were negatively impacted by inventory reductions,” said Chief Executive Lars Fruergaard Jorgensen.
Sales in the quarter were boosted by Novo Nordisk’s diabetes and obesity treatments, but margins came under pressure due to lower margin insulin products and lower prices, primarily related to the insulin market in the U.S.
The company reiterated intensifying global competition both within diabetes and biopharmaceuticals, especially within the hemophilia-inhibitor segment.
In addition, continued pricing pressure within diabetes is expected, especially in the U.S.
Foreign-exchange losses totaled DKK876 million in the quarter compared with a gain of DKK1.11 billion last year.
“This development reflects a loss on foreign-exchange hedging, involving especially the U.S. dollar versus the Danish krone,” the company said.
For 2019, sales growth measured in local currencies is still seen at 2% to 5%, but reported growth is now expected to be around three percentage points higher, from a previous expectation of around two percentage points higher.
Operating profit growth is still expected to be 2% to 6% measured in local currencies, while reported figures are now expected to be around five percentage points higher from previous guidance of around 4 percentage points higher.
However, the company said it now sees a loss of around DKK3.3 billion under financial items this year, due to foreign-exchange hedging losses. It previously saw a loss of around DKK2.4 billion.
5 things to know about telehealth fraud
Telehealth fraud appears to be on the rise, as more patients are opting into virtual appointments with their physicians via audio and video technology, Legal Reader reports.
Five things to know about telehealth fraud:
1. Numerous states have their own laws and regulations for telehealth services, so Medicare or Medicaid patients should check whether their state insurance can reimburse for telemedicine transactions.
2. Telehealth fraud initially began with improper coding and billing of services, which grew through practices such as claims from non-eligible or non-listed institutional providers as well as claims from unacceptable means of communication.
3. Telehealth transactions are susceptible to kickback measures. An example of this is the federal government’s recent charging of 24 defendants, who included top executives from telehealth companies and owners of medical equipment companies, for their alleged participation in a $1.2 billion telehealth fraud scheme.
Federal prosecutors claim telemarketers would call Medicare beneficiaries to get them to accept free or low-cost DME braces, regardless of medical necessity. The telemarketers would transfer the beneficiaries to telehealth companies for consultations, and those physicians would allegedly prescribe the orthopedic braces to patients without in-person consultations. The alleged defendants received kickbacks from the medical brace companies.
4. Physicians are the most common victims of telehealth schemes, according to the report. Physicians’ names and accounts can be used to collect payment from insurance companies for patients who haven’t visited the clinic in-person yet.
5. Fast daily patient turnover rates, difficulty communicating with the clinic’s management and issues with contacting patients are some signs physicians can look out for to avoid becoming a victim of a telehealth scheme.
To access the full report, click here.
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