Opioid talks set to resume

Four large drug distributors, including Teva (NYSE:TEVA), McKesson (NYSE:MCK), AmerisourceBergen (NYSE:ABC) and Cardinal Health (NYSE:CAH), could resume talks today on reaching a $48B settlement of all opioid litigation against them.

It follows yesterday’s $260M deal with two Ohio counties that averted the first federal trial over their role in the U.S. opioid epidemic.

According to data from S3 Partners, October has been a rough month for short sellers betting against companies at the heart of the opioid crisis, although those traders still have paper profits of almost $600M for the year.

https://seekingalpha.com/news/3507563-opioid-talks-set-resume

Centene EPS beats by $0.01, beats on revenue

Centene (NYSE:CNC): Q3 Non-GAAP EPS of $0.96 beats by $0.01; GAAP EPS of $0.23 misses by $0.58.

Revenue of $18.98B (+17.3% Y/Y) beats by $590M.

Press Release

https://seekingalpha.com/news/3507578-centene-eps-beats-0_01-beats-revenue

Novartis beats Q3 consensus; guidance revised upwards

Novartis (NVS) Q3 results: Revenues: $12,172M (+10.5%); Innovative Medicines: $9,688M (+12.7%); Sandoz: $2,484M (+2.6%).

Net Income: $2,041M (+8.4%); EPS: $0.90 (+11.1%); Non-GAAP Net Income: $3,212M (+4.8%); Non-GAAP EPS: $1.41 (+15.6%); CF Ops: $10,007M (+4.1%).

Top sellers: Cosentyx: $937M (+25%); Entresto: $430M (+59%); Promacta/Revolade: $380M (+29%); Tafinlar + Mekinist: $345M (+19%); Kisqali: $123M (+71%); Jakavi: $279M (+13%); Lutathera: $119M (+113%); Kymriah: $79M; Ilaris: $177M (+26%); Xolair: $299M (+17%); Tasigna: $487M (+10%).

2019 Guidance: Net sales growth: grow high-single digit from mid to high-single digit; Innovative Medicines: grow high-single digit to low double digit from mid to high-single digit; Sandoz: grow low-single digit from braodly in line to low-single digit growth.

https://seekingalpha.com/news/3507603-novartis-beats-q3-consensus-guidance-revised-upwards

Biogen EPS beats by $0.90, beats on revenue

Biogen (NASDAQ:BIIB): Q3 Non-GAAP EPS of $9.17 beats by $0.90; GAAP EPS of $8.39 beats by $0.61.

Revenue of $3.6B (+5.0% Y/Y) beats by $70M.

https://seekingalpha.com/news/3507615-biogen-eps-beats-0_90-beats-revenue

Eton Pharma up on FDA nod for Biorphen

Thinly traded nano cap Eton Pharmaceuticals (NASDAQ:ETON) is up 20% premarket on increased volume in reaction to the FDA’s approval of Biorphen, a ready-to-use formulation of phenylephrine for the treatment of hypotension (low blood pressure) resulting primarily from anesthesia-associated vasodilation (widening of blood vessels from relaxation of smooth muscle cells within vessel walls).

Previously, phenylephrine injection was only available in a highly concentrated formulation requiring dilution prior to use or in ready-to-use formulations from compounding pharmacies.

https://seekingalpha.com/news/3507682-eton-pharma-20-percent-premarket-fda-nod-biorphen

Quest Diagnostics beats Q3 consensus

Quest Diagnostics (DGX) Q3 results: Revenues: $1,956M (+3.5%).

Net Income: $215M (+0.9%); EPS: $1.56 (+2.0%); non-GAAP Net Income: $241M (+2.6%); non-GAAP EPS: $1.76 (+4.8%).

CF Ops: $895M (-1.1%).

2019 guidance: Revenues: ~$7.72B from $7.60B – 7.75B; EPS: $5.48 – 5.53 from >$5.29; non-GAAP EPS: $6.45 – 6.50 from >$6.40; cash flow ops: ~$1.3B (unch).

https://seekingalpha.com/news/3507701-quest-diagnostics-beats-q3-consensus

Provention Bio down on PRV-6527 flop

A Phase 2a clinical trial, PRINCE, evaluating Provention Bio’s (NASDAQ:PRVB) PRV-6527, a small molecule oral inhibitor of CSF-1R in-licensed from Janssen Pharmaceutical Company, in 93 patients with moderate-to-severe Crohn’s disease who were either naïve to biologic therapy or failed to adequately respond to at least one prior biologic drug showed a treatment effect but did not sufficiently separate from placebo.

Specifically, the study failed to achieve the primary endpoint of a statistically significant change in a scale called CDAI at week 12 compared to control due to a higher-than-expected placebo response possibly related to the background medication used in ~85% of the participants.

On the positive side, PRV-6527 was safe and well-tolerated.

Under the terms of the license agreement, Janssen has 90 days to exercise its option to re-acquire the candidate for $50M and single-digit royalties on net sales. If it declines to do so, Provention may sublicense the program on a global basis.

The company will host a conference call momentarily to discuss the results.

https://seekingalpha.com/news/3507702-provention-bio-9-percent-premarket-prvminus-6527-flop