May 21, 2015, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
May 1, 2015, 11:00 AM
- Pharmacyclics (PCYC) Q1 results: Revenues: $205.8M (+72.4%); COGS: $16.7M (+173.8%); R&D Expense: $49.4M (+39.9%); SG&A: $49.5M (+42.7%); Operating Income: $3.8M (-79.1%); Net Income: $4.1M (-77.6%); EPS: $0.05 (-78.3%); Quick Assets: $886.6M (+3.5%).
- No guidance given.
May 1, 2015, 9:38 AM
- Pharmacyclics (NASDAQ:PCYC): Q1 EPS of $0.43 beats by $0.32.
- Revenue of $205.78M (+72.4% Y/Y) misses by $20.49M.
Apr. 9, 2015, 10:42 AM
- A 63-subject Phase 2 study evaluating Pharmacyclics' (PCYC -0.1%) Imbruvica (ibrutinib) in patients with the blood cancer Waldenstrom's macroglobulinemia (WM) showed an overall response rate (ORR) of 91% after a median of 19.1 months of treatment and a two-year overall survival (OS) rate of 95% in a group of difficult-to-treat patients. Trial participants had received an average of two prior therapies and 40% were non-responsive to the prior treatments.
- Imbruvica, jointly developed and commercialized by Pharmacyclics and Janssen Biotech (JNJ +0.7%), is a Bruton's tyrosine kinase (BTK) inhibitor approved for certain lymphocytic leukemia patients, mantle cell lymphoma and WM.
- Waldenstrom's macroglobulinemia is a type of non-Hodgkin lymphoma in which cancer cells make large amounts of a certain type of antibody, immunoglobulin M, that accumulates in the blood.
Mar. 19, 2015, 9:23 AM
- Eli Lilly (NYSE:LLY) inks an exclusive license and collaboration agreement with South Korea-based Hanmi Pharmaceuticals for the latter's oral Bruton's tyrosine kinase (BTK) inhibitor, HM71224, for the treatment of autoimmune and other diseases, currently ready to enter Phase 2 development.
- The companies plan to investigate the molecule for the treatment of a variety of conditions including rheumatoid arthritis, lupus, lupus nephritis and Sjorgren's syndrome.
- Under the terms of the agreement, Lilly will receive worldwide rights to HM71224 exclusive of China, Hong Kong, Taiwan and Korea. Hanmi will receive an upfront cash payment of $50M, up to $640M in milestones and tiered double-digit royalties on net commercial sales.
- BTK is an enzyme that plays a key role in B-cell development. Molecules that inhibit its action have shown anti-tumor and anti-inflammatory activity, exemplified by Pharmacyclic's (NASDAQ:PCYC) (NYSE:ABBV) Imbruvica (ibrutinib).
Mar. 16, 2015, 8:50 PM
- A pre-planned interim analysis of the Phase 3 HELIOS study evaluating Imbruvica (ibrutinib) plus bendamustine and rituximab (BR) versus placebo plus BR in patients with relapsed/refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) showed the trial met is primary efficacy endpoint of a statistically significant improvement in progression-free survival (PFS). An Independent Data Monitoring Committee has recommended that the study be unblinded and patients receiving placebo plus BR be offered the option to receive Imbruvica.
- Bendamustine is a nitrogen mustard used to treat CLL. Rituximab (Biogen Idec's Rituxan) is a CD20-directed monoclonal antibody. CD20 is a protein found on the surface of B cells.
- HELIOS is the second randomized study to demonstrate that treatment with Imbruvica significantly improved PFS in CLL or SLL. The Phase 3 RESONATE trial showed similar results for Imbruvica as monotherapy compared to ofatumumab (Glaxo's Arzerra).
- Imbruvica is being co-developed and commercialized by Janssen Biotech (NYSE:JNJ) and Pharmacyclics (NASDAQ:PCYC).
- AbbVie (NYSE:ABBV) is undoubtedly appreciative of the encouraging results.
Mar. 10, 2015, 3:51 PM
- Traders spread their love beyond the rumored acquisition target-stoked up move of Acadia Pharmaceuticals (ACAD +17.7%) to Geron (GERN +12.3%). Shares are up on a whopping 24M shares. Speculators are betting that Geron will be taken out, possibly by Johnson & Johnson (JNJ -0.8%), after the latter was outbid by AbbVie (ABBV +0.9%) for Pharmacyclics (PCYC).
- Previously: Geron gets boost from AbbVie-Pharmacyclics deal (March 5)
- Previously: Acadia Pharma now +17.7% as it cancels out of another conference (March 10)
Mar. 5, 2015, 12:15 PM
- Small cap Geron (GERN +17.8%) jumps on a 3x surge in volume as traders take positions speculating on the potential for a move by imetelstat collaboration partner and exclusive licensee Johnson & Johnson (JNJ +0.8%) after it was apparently outbid by AbbVie (ABBV -3.5%) for Pharmacyclics (PCYC +10.5%).
- SA Contributor Stock Doctor recently published an article on why Geron may be worth a close look.
- Previously: Geron wins deal to develop blood disorder drug, could get $935M (Nov. 13, 2014)
Mar. 5, 2015, 10:07 AM
- On its conference call this morning to discuss the acquisition of Pharmacyclics (PCYC +10.6%), AbbVie (ABBV -2.4%) CEO Rick Gonzalez said that three companies were in the final bidding for the Imbruvica maker in an intensely competitive process. He said that a disclosure will be forthcoming that will provide additional details of the bids.
- The transaction will be accretive to earnings beginning in 2017, adding $0.60 to EPS in 2019 and more than $1.00 by 2021. The incremental sales in 2019 are projected to be >$4B.
- Imbruvica sales should be >$1B in the U.S. this year and peak at >$7B (ABBV's portion). Peak global sales may be ~$11.5B, but J&J's (JNJ +1.1%) contribution is its responsibility so no firm forecast is appropriate.
- Peak sales of the oncology portfolio of both companies could be >$20B by the mid-2020s.
- Mr. Gonzalez said that Humira's status had no bearing on the deal. He was confident with his top seller's long-term prospects, citing two new indications and the pending new formulation that will provide patent protection until the early 2030s. He also said AbbVie will vigorously defend Humira's IP against biosimilars.
- The transaction is 58% in cash and 42% in stock. The final number of ABBV shares will be determined at the time of closing in Q2. About 50% of the stock will be sourced from buybacks and half newly issued. The Board has authorized a $5B increase in its share repurchase program. There will be a 20% dilution to current shareholders. Updated 2015 Non-GAAP EPS is now $4.05 - 4.25 from $4.25 - 4.45.
Mar. 5, 2015, 9:15 AM
Mar. 5, 2015, 8:52 AM
- AbbVie's (NYSE:ABBV) extraordinarily generous buyout of Pharmacyclics (NASDAQ:PCYC) is a crystal clear example of how keen big pharma is to boost its prospects with biotech drugs with blockbuster potential. The transaction's $20B tab, backing out PCYC's $1B cash balance, values Imbruvica (ibrutinib) at $40B since Pharmacyclics' commercial partner Johnson & Johnson (NYSE:JNJ) gets 50% of Imbruvica's revenue. This implies a multiple of almost 7x Imbruvica's projected peak sales of $6B. By comparison, Amgen's (NASDAQ:AMGN) takeout of Onyx Pharma and Sanofi's (NYSE:SNY) takeout of Genzyme were both at 5x premiums.
- The looming patent expiration for Humira ($12.5B in sales the past four quarters) undoubtedly provided AbbVie extra incentive to get the deal done.
- Adding 50% of Imbruvica's sales to AbbVie's top line should increase its revenue growth 3 - 7% and EPS growth 8 - 11% through 2020.
- According to RBC analyst Michael Yee, other biotechs on the big ticket acquisition radar are: BioMarin Pharmaceuticals (NASDAQ:BMRN), Dyax (NASDAQ:DYAX), Esperion Therapeutics (NASDAQ:ESPR), United Therapeutics (NASDAQ:UTHR), Vertex Pharmaceuticals (NASDAQ:VRTX), Intercept Pharmaceuticals (NASDAQ:ICPT), Juno Therapeutics (NASDAQ:JUNO), Kite Pharma (NASDAQ:KITE), PTC Therapeutics (NASDAQ:PTCT) and Receptos (NASDAQ:RCPT).
Mar. 4, 2015, 11:39 PM
- Both boards have signed off on AbbVie's (NYSE:ABBV) $21B surprise acquisition of Pharmacyclics (NASDAQ:PCYC), announced a short while ago amid speculation that Johnson & Johnson (NYSE:JNJ) (or, earlier, Novartis (NYSE:NVS)) would be the one to acquire the cancer biotech.
- With the deal, AbbVie gets Pharmacyclics' blockbuster Imbruvica drug for hematologic malignancies -- which logged $548M in revenues in 2014 (Q4 earnings) and might go all the way to $5B/year. Imbruvica has received four indications in less than 15 months -- the latest being for Waldenström's Macroglobulinemia at the end of January.
- And with Imbruvica, AbbVie can lessen its reliance on its key drug Humira, an aging rheumatoid arthritis medication.
- The acquisition is expected to close in the middle of the year.
- Question: What happened to Pharmacyclics' Imbruvica partner JNJ on this deal?
- Previously: Pharmacyclics Q4 revenue up 135%, Imbruvica growing exponentially (Feb. 18 2015)
Mar. 4, 2015, 11:04 PM
- AbbVie (NYSE:ABBV) says it will be the one to acquire cancer biotech Pharmacyclics (NASDAQ:PCYC), with a surprise bid of about $21B: $261.25/share in cash and equity.
- Pharmacyclics closed up 6.3% today to $230.48 (and gained another 2.9% after hours) on rumors that Johnson & Johnson (NYSE:JNJ) was making a bid for the $17B company.
- Previously: Pharmacyclics up on rumored J&J interest (Mar. 04 2015)
- Previously: Pharmacyclics up on potential buyout (Feb. 25 2015)
Mar. 4, 2015, 4:32 PM
- Pharmacyclics (NASDAQ:PCYC) jumps in apparent response to rumors that Johnson & Johnson (NYSE:JNJ) is close to making a premium bid for the $17B biotech. Shares were up 6% in today's session on double normal volume and are up another 2% after hours.
- The two companies have a history of working together. Pharmacyclics and J&J's Janssen Biotech inked a collaboration deal in late 2011 to develop PCI-32765 for a variety of blood cancers.
- The transaction would be the largest for J&J since its takeout of Synthes in 2011 for $21.3B.
Feb. 25, 2015, 1:43 PM
Feb. 18, 2015, 4:24 PM
- Pharmacyclics (NASDAQ:PCYC) Q4 results ($M): Total Revenues: 290.2 (+134.8%); Product (Imbruvica) Revenue: 185.1 (+999%); License & Milestone Revenue: 100.0 (-9.1%); Operating Income: 93.0 (+8.9%); Net Income: 63.5 (-1.1%); EPS: 0.81 (-1.2%).
- Revenue growth led by Imbruvica which generated $730M in global sales for the year, including $492M in the U.S. In Q4, Imbruvica sales increased $172M.