WebMD: An Interesting Backdoor Specialty Pharma Growth Play
WebMD: Checkup Reveals Unhealthy Conditions
Darspal S Mann
Darspal S Mann
Mon, Sep. 19, 11:34 AM
- In a surprise move, Dr. Steven L. Zatz has been named the CEO of WebMD Health WBMD -6.5%, effective immediately.
- David J. Schlanger , who served as a CEO since 2013 is leaving the company by mutual agreement.
- Dr. Zatz has been a member of the senior leadership of WebMD and its predecessor companies for 17 years. As a result of this transition, Dr. Zatz's responsibilities will expand to include WebMD Health Services.
Mon, Sep. 19, 11:21 AM
Mon, Aug. 8, 8:19 PM
- WebMD (WBMD -0.9%) saw profits and revenues rise in a Q2 earnings report where net income grew 33% and EBITDA rose 23%.
- Traffic fell, however: Users dropped 6% Y/Y to 199M uniques, while page views rose 3% to 4.23B.
- In the second quarter, WebMD reported 13% advertising revenue growth on 3% page view growth," said CEO David Schlanger. "We are able to achieve that because the majority of our advertising revenue is driven by certain highly targeted audiences.
- Revenue breakout: Advertising and sponsorship, Biopharma and medical device: $100.6M (up 17%); Advertising and sponsorship, OTC, CPG and other: $31.1M (up 2.9%); Health services, $28.6M (up 8.3%); Information services, $7.2M (up 27.4%).
- It's guiding to Q3 revenues of $168M-$171M (in line, and up 10-12% from last year), net income of $17M-$18.5M and EBITDA of $50.5M-$52.5M (light of consensus for $54M).
- For the full year, it now guides to net income of $82M-$89.5M (EPS of $1.78-$1.90, light of consensus for $1.92).
- After hours: WBMD -0.1%.
- Press Release
Mon, Aug. 8, 4:04 PM
Sun, Aug. 7, 5:35 PM
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Fri, Jun. 10, 7:28 AM
- Sarepta Therapeutics (NASDAQ:SRPT) upgraded to Outperform from Neutral by Wedbush. Price target raised to $36 (71% upside) from $14.
- EnteroMedics (NASDAQ:ETRM) downgraded to Neutral from Buy by Roth Capital Partners. Price target is $0.50 (11% upside).
- Relypsa (NASDAQ:RLYP) downgraded to Underweight from Equal Weight by Morgan Stanley. Price target maintained at $9 (52% downside risk).
- Mirati Therapeutics (NASDAQ:MRTX) downgraded to Hold from Buy by Jefferies. Price target lowered to $17 (77% upside) from $27.
- AbbVie (NYSE:ABBV) downgraded to Market Perform from Outperform by Cowen & Company. Price target lowered to $70 (15% upside) from $77. Downgraded to Equal Weight from Overweight by Morgan Stanley. Price target lowered to $65 (7% upside) from $73.
- WebMD (NASDAQ:WBMD) downgraded to Market Perform from Outperform by William Blair.
Thu, May 26, 1:13 PM
- WebMD (WBMD -5.9%) is selling $300M worth of convertible notes due 2023. The notes carry a 2.625% interest rate, and a conversion price of $87.07 (38% above current levels).
- Net proceeds will be used for "general corporate purposes, which may include acquisitions, repurchases of WebMD common stock, repurchases of outstanding convertible notes and for working capital." WebMD had $593M in cash and $700M in convertible debt at the end of Q1. $397M worth of convertible notes were due in 2018, and $295M due in 2020.
Wed, May 25, 5:39 PM
Fri, May 13, 11:35 AM
- Prothena (PRTA +7.6%) initiated with Overweight rating and $60 (44% upside) price target by Barclays.
- Pfizer (PFE +0.5%) initiated with Hold rating and $38 (12% upside) price target by Berenberg.
- Amarin (AMRN +1.9%) initiated with Buy rating and $3.50 (111% upside) price target by Jefferies.
- Align Technology (ALGN +0.9%) initiated with Outperform rating and $84 (10% upside) price target by Credit Suisse.
- Presbia (LENS +2.9%) initiated with Buy rating and $14 (254% upside) price target by Rodman & Renshaw.
- LabStyle Innovations (OTCQB:DRIO +5.4%) initiated with Buy rating and $12 (121% upside) price target by Rodman & Renshaw.
- Juno Therapeutics (JUNO +1.5%) initiated with an Outperform rating and $55 (48% upside) price target by Cowen & Co.
- WebMD Health (WBMD +0.4%) upgraded to Buy from Neutral by SunTrust Robinson Humphrey. Price target increased to $75 (18% upside) from $57.
- Sanofi (SNY +0.3%) upgraded to Overweight from Equal Weight by Barclays. Price target maintained at €84 (20% upside).
- Depomed (DEPO +4.1%) upgraded to Buy from Neutral by Mizuho Securities. Price target raised to $19 (4% upside) from $18.
Wed, May 4, 4:16 PM
Tue, May 3, 5:35 PM
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Wed, Mar. 30, 5:39 PM
Thu, Mar. 24, 4:05 PM
- Accelerate Diagnostics (AXDX +12.7%) initiated with Overweight rating and $17 (26% upside) price target by JP Morgan.
- Inogen (INGN -2.1%) initiated with Neutral rating with a $46 (15% upside) price target by Piper Jaffray.
- Incyte (INCY +3.3%) initiated with Overweight rating and $85 (21% upside) price target by Morgan Stanley.
- West Pharmaceutical Services (WST -0.1%) initiated with Outperform rating with a $69 (6% upside) price target by Wells Fargo.
- Ironwood Pharmaceuticals (IRWD +1%) initiated with Neutral rating and $14 (35% upside) price target by Goldman Sachs.
- HeartWare International (HTWR -0.4%) upgraded to Buy from Neutral by Bank of America.
- WebMD (WBMD +0.4%) upgraded to 3.5 stars from 3.0 stars (out of 5.0) by top raters at Vetr community. Price target is $62.50 (7% upside).
- Tandem Diabetes (TNDM -15.7%) downgraded to Underperform from Neutral by Bank of America.
- EndoChoice (GI -9.1%) downgraded to Underperform from Buy with a $10 price target by Bank of America.
- DENTSPLY (XRAY -1.6%) downgraded to Equal Weight from Overweight by Morgan Stanley. Price target is $65 (9% upside).
- Novartis (NVS -0.8%) downgraded to Market Perform from Outperform by Leerink. Price target lowered to $85 (16% upside) from $98.
- Infinity Pharmaceuticals (INFI -4.3%) downgraded to Underperform from Neutral by Wedbush. Price target lowered to $3 (40% downside risk) from $8.
- Valeant Pharmaceuticals (VRX -7%) downgraded to Equal Weight with $34 (10% upside) price target by Barclays. Downgraded to Underperform from Neutral by Mizuho. Price target lowered to $18 (42% downside risk) from $70.
Tue, Feb. 23, 5:30 PM
- WebMD's (NASDAQ:WBMD) Q4 beat has been accompanied by guidance for Q1 revenue of $154.5M-$157.5M (+8%-10% Y/Y) and 2016 revenue of $685M-$705M (+8%-11%), favorable at the midpoints to consensus estimates of $154.6M and $689.9M. In addition, 2016 EPS guidance of $1.75-$1.90 (compares with 2015 EPS of $1.48) is above a $1.66 consensus.
- Top-line performance/metrics: Ad/sponsorship revenue rose 25% Y/Y in Q4 to $$158.3M. Private portal services revenue fell 5% to $27.2M, and information services revenue 7% to $6.6M. Traffic rose 6% Y/Y to 3.97B page views; monthly unique users rose 7% to 201M.
- Financials: Cost controls lifted EPS: G&A spend fell by $600K Y/Y to $24.2M. Sales/marketing spend rose by $3.1M to $40.1M. $34M was spent on buybacks. WebMD ended 2015 with $641M in cash and $803M in convertible debt.
- WBMD +4% after hours to $54.00 The 52-week high is $58.25.
- WebMD's Q4 results, earnings release
Tue, Feb. 23, 4:05 PM
- WebMD Health Corp (NASDAQ:WBMD): Q4 EPS of $0.60 beats by $0.03.
- Revenue of $192.1M (+18.0% Y/Y) beats by $2.17M.
- Shares +3.5%.
Mon, Feb. 22, 5:35 PM
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