Search This Blog

Wednesday, January 15, 2020

Mylan up 3% on bullish forecast for Viatris

Mylan N.V. (MYL +3.3%) perks up on below-average volume on the heels of a presentation this morning at JPM20 by Executive Chairman Robert Coury that focused Viatris, its planned combination with Pfizer’s (PFE +1.3%) Upjohn unit that is expected to close mid-year. Key points:
Target leverage no greater than 2.5x.
Dividend will be at least 25% of free cash flow (2.7 – 3.9% yield).
Estimated 2020 EBITDA margin of ~40% which could translate into a share price of $37 – 50 at a 10x multiple (on par with Perrigo, Hikma and Amneal), implying a potential upside of 68 – 127%.
Expected to achieve ~$1B in cost synergies by the fourth year.
Targeting ~$3B in revenue from products launched by year 4.
#JPM20

UnitedHealth bets on government health plan growth in 2020

UnitedHealth Group Inc, the largest U.S. health insurer, reported a better-than-expected fourth-quarter profit on Wednesday, and said it expects strong sales of its government health plans this year.

The company also reported solid sales growth in its pharmacy benefits business.
UnitedHealth expects to enroll 700,000 more people in its Medicare Advantage plans in 2020, Chief Executive Officer David Wichmann said on a call to discuss the quarterly results. That was at the upper end of the Medicare Advantage forecast the company provided at its investor conference in December.
The plans provide health benefits to older Americans and the disabled.
Shares of UnitedHealth, the first major U.S. insurer to report earnings this season, were up more than 2% at $294.65, lifting shares of rivals Anthem Inc, Humana Inc and Cigna Corp by about 1%.
Evercore ISI analyst Michael Newshel said the stock was likely reacting to the solid Medicare Advantage enrollment forecast.
Newshel also cited the industry bellwether’s comments regarding limited cost impact from the current flu season, which picked up pace in the last few weeks, according to the U.S. Centers for Disease Control and Prevention.
Wednesday’s share rise comes on the back of gains in insurer shares over the last two months as fears eased that the 2020 presidential election would lead to a major overhaul of the U.S. healthcare system.
UnitedHealth affirmed its full-year forecast for 2020 adjusted earnings of $16.25 to $16.55 per share, with a midpoint a bit below analysts’ average estimates of $16.46, according to Refinitiv data.
Total revenue rose 4.3% to $60.90 billion, just shy of Wall Street expectations of $61.04 billion.
Sales of the company’s core business selling health insurance plans rose 4.4% to $48.25 billion.
Revenue from the Optum unit, which manages drug benefits and offers healthcare data analytics services, rose about 8% to $29.8 billion.
UnitedHealth has bolstered its Optum business with a string of small acquisitions, the latest a $300 million purchase of Diplomat Pharmacy.
On an adjusted basis, the company earned $3.90 per share, exceeding analyst estimates of $3.78.

Cuomo: NY to Provide Puerto Rico Mental Health Professionals, Help For Power

 Gov. Andrew Cuomo is on his way back from Puerto Rico after pledging more resources to help the island recover from recent earthquakes.
The additional help is not just about rebuilding, but also helping residents who are living in fear.
After touring the significant earthquake damage on Puerto Rico’s southern coast and meeting with residents sheltering at a high school due to fears of further seismic danger, Cuomo wrapped up his visit announcing New York Power Authority would help with electrical infrastructure repair. New York will also push an effort to get extra mental health professionals to Puerto Rico.

“This is a particular problem. Your home is where you go to be safe. Your home is your refuge. Your home is your place where you go for comfort. Now you were in the home and you experienced a great fear that the house itself could become problematic. And this is a psychological issue, this is a mental health issue that needs special attention.  And we will be working on that providing bilingual mental health experts who can help,” Cuomo said.

“The call has been put out by me to all the health care systems of New York to send volunteers that are bilingual and mental health professionals to come down. We will organize it… we will pay for it,” said Ken Raske of the Greater New York Hospital Association.
The refugees CBS2’s Tony Aiello met are down but not defeated by the challenges of being chased from their homes by the historic cluster of quakes and aftershocks.
Former Bronx priest Roberto Gonzalez Nieves is now Archbishop of San Juan.
“It’s quite moving to witness the resilience of the people, their deep faith, the way they come together to help one another,” he said.
Cuomo and other New York Democrats have criticized the Trump administration for the slow rollout of Hurricane Maria recovery aid from 2017. The feds have cited concerns about fraud and waste, but during Cuomo’s visit agreed to release $8 billion.
“He’s not doing us a favor. This is from Hurricane Maria. Now we have to talk to about what is he doing relating to the earthquakes,” said Bronx Borough President Ruben Diaz, Jr.
Earthquake damage will top $100 million, but it is isolated to the south coast. San Juan is open for business and welcoming visitors. If you have plans to come, they hope you will fulfill those plans, Aiello reported.
The U.S. Department of Health and Human Services also announced Wednesday it is activating its emergency prescription assistance program for uninsured Puerto Rico residents who need medications. For more information, click here.
“When a disaster strikes, medications can get lost or damaged, putting people’s health and well-being at risk and straining local healthcare systems,” said HHS’ Assistant Secretary for Preparedness and Response Dr. Robert Kadlec.
For a list of eligible products, click here.
Uninsured Puerto Rico residents affected by the earthquakes can call Express Scripts, 855-793-7470, to learn if their medication or specific DME is covered by EPAP and to find a participating pharmacy.

ChromaDex announces regulatory approvals of Tru Niagen

ChromaDex (NASDAQ:CDXCannounces the approval of dietary ingredient Tru Niagen (nicotinamide riboside chloride) in Australia and the European Union.
The product has market exclusivity in the former until December 2021 and the latter until February 2025.

Acorda sees 2019 total revenue as high as $188M

Acorda Therapeutics (NASDAQ:ACORprovides 2019 highlights and 2020 guidance at the Annual JPM Conference in San Francisco.
2019 total and product revenue of ~$188M and $178M, respectively.
2019 AMPYRA sales of $162.6M.
2019 INBRIJA net revenue of $15.3M.
2020 total revenue expected in the range of $130M-$160M.
2020 product revenue to be $120M – $150M.
2020 INBRIJA revenue is expected to be $35M – $40M.
2020 AMPYRA revenue is expected to be $85M – $110M.
#JPM20

FDA accepts Bristol-Myers Squibb’s application for lung cancer combo

Under Priority Review status, the FDA has accepted Bristol-Myers Squibb’s (NYSE:BMY) marketing application for Opdivo (nivolumab) + Yervoy (ipilimumab) for the first-line treatment of metastatic or recurrent non-small cell lung cancer with no EGFR or ALK mutations.
The agency’s action date is May 15.

FDA accepts Neovasc’s Reducer application; shares up

Nano cap Neovasc (NASDAQ:NVCN) is up 26% premarket on light volume in reaction to its announcement that the FDA has accepted for review its marketing application for its Reducer device for the treatment of refractory angina.