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Wednesday, August 7, 2019

CVS And Walgreens Unfairly Fighting Back Against Amazon’s PillPack?

E-commerce giant Amazon.com, Inc. AMZN 0.02% bought the online pharmacy company PillPack last year, and legacy pharmacy retailers may be unfairly fighting back, CNBC reported.
PillPack offers a mail delivery service and offers consumers an alternative to traditional companies like CVS Health Corp CVS 6.88% and Walgreens Boots Alliance Inc WBA 1.01%.
CVS and Walgreens are rejecting many customer requests to move their profiles over to Amazon’s business, according to CNBC.
PillPack doesn’t have the necessary consent from patients to switch, according to the pharmacy chains.

A Fight Over Valuable Customers

In some instances, pharmacists hang up on PillPack or toss a transfer request directly into the trash, CNBC said.
In a response to CNBC, PillPack spokeswoman Jacquelyn Miller said it is “unacceptable to make unsubstantiated allegations” about its practices while making it more difficult for customers to switch.
On its end, CVS said it doesn’t indiscriminately reject transfer requests; rather the company reaches out to customers to confirm their validity, according to CNBC.
Amazon is keeping note of each case a transfer request is refused, according to CNBC. This is notable for both sides, as one single client can account for thousands of dollars in revenue through copays and insurance coverage.
It is possible patients with memory issues don’t recall signing up for PillPack, or become embarrassed about acknowledging the switch with their pharmacist.
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Weight Watchers Soars, But These Analysts Remain On The Sidelines

Weight Watchers International, Inc. NASDAQWTW soared 40% on Wednesday after reporting impressive second-quarter results, but two analysts are hesitant in recommending investors buy shares.

The Analysts

Morgan Stanley’s Brian Nowak maintains an Equal-Weight rating on Weight Watchers with a price target lifted from $23 to $25.
KeyBanc Capital Markets’ Edward Yruma maintains at Sector Weight.

Morgan Stanley: Impressive Steps But Further Signs Needed

WW, as it is known now, reported second quarter EBITDA 16% above expectations as cost cutting initiatives flowed to the profit line, Nowak wrote in a note. The company also delivered gross margins and gross profits ahead of expectations, mostly from cost rationalizations.

Nowak said the company continues to take the right steps in improving personalization with users and data-driven targeting efforts. Over time, this should result in notable improvements to subscriber acquisitions.
However, WW’s subscriber count at the end of the quarter of 4.6 million was consistent with expectations while revenue fell short of consensus estimates by 2%. As such, management needs to demonstrate signs that 2020 will be a year of re-acceleration after a difficult start to 2019.

KeyBanc: ‘Modern Voice’ But Valuation Concerns

WW’s second quarter shows the company is now reaching out to customers with a “more modern voice,” including a refresh of the studio experience and new packaged goods products, Yruma wrote in a note. The launch of a new program next year adds to the encouraging narrative and a continued focus on highlighting the health benefits will be well received.
Despite improving retention rends in the quarter and revenue tailwinds in 2020 from new initiatives, shares of WW are trading at a “fair” valuation of 8.4 times 2019 EV/EBITDA. Nevertheless, a “positive bias” is warranted after the company showed improving results in its earnings release.
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BioVie IPO: What You Need To Know

A biotech company that has a mid-stage asset targeting a disease, and currently has no FDA-approved therapies, is eyeing a Nasdaq listing this week.

The IPO Terms

Santa Monica, California-based BioVie Inc. is set to offer 1.26 million shares in an IPO, according to a S-1/A filing.
The company’s shares are currently traded on the OTC market under the ticker symbol BIVI.
BioVie said it will use the $11.88 per share at which the shares closed on the OTC market July 8, after giving effect to the 1:125 reverse stock split, as an indicative price for the offering.
The company has applied for listing its shares on the Nasdaq under the ticker symbol BIVI.
ThinkEquity, a division of Fordham Financial Management, is the underwriter for the offering.

The Company

BioVie is a clinical-stage company developing and commercializing innovative drug therapies. The company currently focuses on developing BIV201, a novel approach to treat ascites – abnormal build up of fluid in the abdomen – due to chronic liver cirrhosis.
BIV201, with a potent vasoconstrictor as an active ingredient, is based on a drug approved in about 40 countries to treat liver cirrhosis-related complications, although it is not yet available in the U.S.
Following the recent completion of a Phase 2a trial, the company had a Type C meeting with the FDA June 19 to discuss the clinical development efforts with the FDA and proposed trial endpoints.
BioVie estimates the U.S. patients targeted for the BIV201 therapy to be 20,000 and the addressable U.S. market size to be $500 million, plus.

The Finances

BioVie is yet to turn in revenues. For the fiscal year ended June 30, 2018, the company reported a net loss of $2.434 million compared to the year-ago loss of $1.33 million.
For the nine-month period ended March 31, the company reported a net loss of $1.837 million, narrower than the year-ago loss of $1.858 million.
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Moderna up 11% after business update, extension of Vertex partnership

Messenger RNA (mRNA) therapeutics developer Moderna (MRNA +11%) is up on over 40% higher volume following its Q2 report released this morning that included a pipeline update and an announcement that collaboration partner Vertex Pharmaceuticals (VRTX -1.4%) has extended their exclusive research partnership aimed at developing mRNA therapies for cystic fibrosis through Q1 2020 with options to extend further depending on progress.
Moderna will host its annual R&D Day in New York on September 12.
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Triple-net, healthcare REITs gain amid market decline

Amid a sea of red, REITs have pockets of green as investors turn to traditionally defensive real estate sector. By sector, triple-net, healthcare, self-storage, and correctional/detention center are gaining.
With Vereit (VER +4.9%) and Spirit Realty (SRC +3.8%) turning in better-than-expected Q2 FFO, other triple-nets, such as Store Capital (STOR+1.6%), National Retail Properties (NNN +1.3%), and Realty Income (O+1.6%), join the advance.
Healthcare REITs also gain — Omega (OHI +1.3%), Ventas (VTR +2.1%), HCP (HCP +2.5%), Welltower (WELL +1.9%), and Medical Properties Trust (MPW +1.5%).
Add senior housing to the list of advancers — Senior Housing Properties (SNH +2.1%), New Senior Investment (SNR +0.5%), and National Health Investors (NHI +0.7%).
Self-storage stocks Public Storage (PSA +1.5%), Extra Space Storage (EXR+1.1%), and CubeSmart (CUBE +1%) pile on.
CoreCivic (CXW +1.8%) and GEO Group (GEO +0.9%) also gain as they’re not as likely to feel the effects of a recession.
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Cambrex Cancels 2Q Conference Call and Will Not Update Financial Guidance

Cambrex Corporation (NYSE: CBM), the leading small molecule company providing drug substance, drug product and analytical services across the entire drug lifecycle, today announced that it will not hold a second quarter 2019 earnings conference call and will not update previously provided financial guidance given the pending acquisition by an affiliate of the Permira funds.
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Clovis down 5% on positive data for PARP competitor Lynparza

Clovis Oncology (CLVS -4.8%) is down, albeit on below-average volume, in apparent response to positive Phase 3 data announced this morning on AstraZeneca and Merck’s PARP inhibitor Lynparza (olaparib) in certain metastatic castration-resistant prostate cancer (mCRPC) patients.
Clovis is currently enrolling patients in two Phase 3 studies, TRITON2& TRITON3, evaluating its PARP inhibitor, Rubraca (rucaparib), in mCRPC patients. Preliminary data from TRITON2, presented at ESMO in October 2018, showed a 44% objective response rate (ORR). Management plans to update investors on the TRITON program later this month.
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