Four Major Players In Pharmaceuticals & Biotechnology Industry: MYL, ALKS, ABC, and GNS

  • Jul 17, 2019 BST
  • Team Kalkine
Four Major Players In Pharmaceuticals & Biotechnology Industry: MYL, ALKS, ABC, and GNS

Mylan N.V.

Mylan N.V. (MYL) is a Canonsburg, Pennsylvania-based international pharmaceutical company. The group licenses, develops, manufactures, brand name, markets and distributes generic, and OTC (over the counter) products in a variety of therapeutic categories and dosage forms. The company’s operations are differentiated in three geographic segments, namely, North America, Europe and ROW (Rest of World). The group's Cold-EEZE family of brands comprises gummies, caplets, OTC cold remedies sold as lozenges, QuickMelts, oral sprays, and oral liquid dosage forms in the United States. The company offers 7 billion people access to high quality and provides an increasing portfolio of more than 7,500 products. The products are sold in more than 165 territories and countries, and around 35,000-solid workforce is devoted to creating better health for a better world.

Recent News

On 8th July 2019, the company announced that the Mylan HIV Self-Test received Prequalification approval by the WHO PQ (World Health Organization). The Mylan HIV Self-Test is designed to be held in hand in vitro HIV fast diagnostic test for self-testing.

Financial Highlights (Q1 FY2019, US$ million)

(Source: Quarterly Update, Company Website)

In Q1 FY19, the company’s total revenue decreased by 7 per cent to $2.50 billion in Q1FY19 as compared with the corresponding period of the last year data. Net sales from the Rest of World segment increased by 3 per cent to $642.4 million and surged by 11 per cent on a constant currency basis; Europe segment net sales declined by 14 per cent to $895.3 million and decreased by 6 per cent on a constant currency basis; and North America segment decreased by 6 per cent to $922.9 million on an actual and constant currency basis. The North America segment net sales were down because of the impact of the Morgantown plant remediation activities and changes in the competitive environment. Adjusted gross profit decreased by 6 per cent to $1,340.7 million in the quarter as compared with the previous year same period data, while adjusted gross margin stood at 53.7 per cent. Adjusted net earnings declined by 15 per cent to $421.9 million against the $495.6 million in Q1 FY18. Adjusted earnings per share were $0.82, a decrease of 15 per cent over the previous year period. Reported EBITDA declined by 20 per cent to $534.2 million as compared with the corresponding period of the last year, while adjusted EBITDA stood at $710.2 million.

U.S. GAAP diluted loss per ordinary share was $0.05 in Q1FY19 as compared to earnings per ordinary share of $0.17 in the prior year same period data. U.S. GAAP net cash used in operating activities stood at negative $39.7 million as compared to $621.8 million for the previous year same period data and adjusted free cash flow was $27.1 million against the $663.6 million in the prior year same period, due to a higher investment in working capital.

Share Price Performance

Daily Chart as at July-17-19, after the market closed (Source: Thomson Reuters)

Its shares are listed on the Nasdaq Stock Exchange. On 17th July 2019, Mylan N.V.  shares closed at USD 17.91 and decreased by 2.82 per cent against the previous day closing price. Stock's 52 weeks High and Low is USD 39.59/USD 16.63. Total outstanding market capitalisation was US$9.23 billion.

Alkermes PLC

Alkermes plc (ALKS) is a Dublin, Ireland-based biopharmaceutical company. The group is involved in the commercializing, developing, and researching pharmaceutical products that are designed to address the medical desires of patients in therapeutic zones. The group has a portfolio of a clinical pipeline of products and market drug products that address CNS (central nervous system) disorders, such as addiction, depression, MS (multiple sclerosis), and schizophrenia. The company's products comprise ALKS 5461, ARISTADA, ALKS 3831, AMPYRA, INVEGA TRINZA, ALKS 6428, FAMPYRA, ALKS 7119, INVEGA SUSTENNA, ALKS 4230, RISPERDAL CONSTA, ALKS 8700, TREVICTA, XEPLION, Aripiprazole lauroxil, VIVITROL, and BYDUREON. The group's product platform includes LinkeRx technology, OCR (oral controlled release) technology, injectable extended-release microsphere technology, and NanoCrystal technology.

Recent News

On 15th July 2019, the company announced an update on a regulatory plan for ALKS 3831, an oral atypical antipsychotic drug candidate. It has been developed to provide effectiveness of olanzapine, minimizing the weight gain associated with olanzapine. The company is planning to expand the NDA (New Drug Application) after a meeting with the United States FDA (Food and Drug Administration). The NDA will include data in identifying signs for the treatment of manic or mixed episodes associated with bipolar I disorder and for maintenance treatment of bipolar I disorder; and an indication for the treatment of schizophrenia.

Financial Highlights (Q1 FY2019)

In Q1 FY19, the company’s total revenues decreased to $223.1 million as compared with the corresponding period of the last year, due to a decrease in AMPYRA® revenues and an increase in the proprietary product net sales. Net sales of VIVITROL stood at $69.2 million, an increase of around 10 per cent against the previous year same period data. Net sales of ARISTADA stood at $30.3 million, an increase of around 4 per cent as compared with the corresponding period of the last year. Manufacturing and royalty revenues from RISPERDAL CONSTA®, INVEGA SUSTENNA®/XEPLION® and INVEGA TRINZA®/TREVICTA® stood at $75.6 million, an increase from the previous year same period data. Manufacturing and royalty revenues from AMPYRA/FAMPYRA® stood at $12.2 million, a decrease against the $28.3 million in Q1 FY18, driven by the generic rivalry to AMPYRA entering the market in late 2018. Research and development revenues from the collaboration with Biogen for diroximel fumarate stood at $13.9 million as compared to $17.5 million in Q1 FY18.

In Q1 FY19, net loss according to generally accepted accounting principles in the U.S. (GAAP) increased to $96.4 million as compared with the corresponding period of the last year data. Basic and diluted GAAP net loss per share was $0.62, an increase from the Q1 FY18 net loss of $0.40. Non-GAAP net loss surged to $26.0 million against the loss of $14.2 million in Q1 FY18. Non-GAAP basic and diluted net loss per share stood at $0.17.

Share Price Performance

 Daily Chart as at July-17-19, after the market closed (Source: Thomson Reuters)

Its shares are listed on the Nasdaq Stock Exchange. On 17th July 2019, ALKS shares closed at USD 23.09 and decreased by 1.24 per cent against the previous day closing price. Stock's 52 weeks High and Low is USD 46.98/USD 21.29. Total outstanding market capitalisation was US$3.62 billion.

Abcam PLC

Abcam PLC (ABC) is a leading global life sciences company in the United Kingdom. The group is into providing scientific support and tools for the research and clinical community and provides validated antibodies and other binders and assays. The company serves researchers in more than 140 countries with the help of across 1,100 people spread over 11 locations.

Recent News

On 16th July 2019, the company announced the acquisition of the whole lysates portfolio and live-cell line of the company, EdiGene Inc, a leading company mainly attention on developing genome editing technologies into novel therapeutics for a wide range of diseases and into creative solutions to advance drug discovery.

Financial Highlights (H1 FY19, £ million)

(Source: Interim Report, Company Fillings, LSE)

In the H1 FY2019, revenue surged by 10.8 per cent to £124.7 million, while it increased by 10 per cent on a constant currency basis. While Catalogue revenue, which accounted for approximately 94 per cent of total revenue, surged by 10.5 per cent on a constant currency basis to £117 million, Custom Products & Licencing (CP&L) revenue climbed by 2.3 per cent on a constant currency basis to £7.7 million, lower than anticipated. While gross profit surged to £87.6 million from £78.5 million in H1 FY18, gross margins were modestly ahead of the previous year at 70.2 per cent.

Reported EBITDA increased to £40.3 million, and adjusted EBITDA surged by 4 per cent to £44.4 million, giving an adjusted EBITDA margin of 35.6 per cent. The margin reduced from 38 per cent reported in H1 FY18, driven by an increase in the investment to support the long-term growth of the business. While adjusted operating profit stood at £40.8 million, reported operating profit stood at £33.4 million. Given an adjusted profit before tax margin was 33 per cent, adjusted profit before tax stood at £41.1 million, while reported profit before tax stood at £33.7 million. Adjusted diluted EPS surged by 5.2 per cent to 16.3 pence, while reported diluted EPS stood at 13.4 pence (H1 FY18: 15.7 pence).

The company, through acquisition and investment, is looking for expansion into new markets, geographic areas and technologies and applications to drive low digit growth trajectory with good-looking margins. While higher investments have led to downward expectations for an annual adjusted cash profit margins to 35 per cent from 36 per cent, yearly revenue growth is estimated to be in line with the H1 only. The continued smoothness in Japan is impacting top-line numbers, and the company is facing a risk from the surged competition as well.

Share Price Performance

Daily Chart as at July-17-19, after the market closed (Source: Thomson Reuters)

On 17th July 2019, ABC shares closed at GBX 1,378 and increased by 1.03 per cent against the previous day closing price. Stock's 52 weeks High and Low is GBX 1,643.80/GBX 1,006. Total outstanding market capitalisation was £2.83 billion.

Genus PLC

Genus plc (GNS) is a Basingstoke, the United Kingdom-based animal genetics company, which offers farmers with high quality genetics that helps them to produce animal protein, in the form of milk and meat. The company’s business is differentiated in four segments: Genus Asia, Genus PIC, Genus ABS, and Research and Development. The company’s main product is bull semen in the dairy and beef markets. The group provides embryos through its subsidiary, In Vitro Brasil S.A.

Recent News

On 16th May 2019, the company had reached a collaboration deal with a Chinese rival to work towards regulatory approval in the country for an “elite” breed of pigs resistant to significant disease.  The agreement will see Genus work with Beijing Capital Agribusiness (BCA) to “research, develop, register and market” pigs it has bred to be resistant to porcine reproductive and respiratory syndrome (PRRS) virus — a disease that can cause reproductive failure, reduced growth and early death for the farm animals.

The company will receive an initial $20 million cash payment and a further $120-160 million following the creation of a joint venture after the receipt of regulatory approval.

Financial Highlights (H1 FY2019, £ million)

(Source: Interim Report, Company Website)

In H1 FY19, on an adjusted basis, the company’s revenue slightly increased to £238.8 million as compared with the corresponding period of the last year. Profit before tax surged by 1 per cent to £29.2 million against the £29 million in H1 FY18 and increased by 2 per cent at constant currency. Basic earnings per share stood at 35.8 pence, a decrease of 12 per cent from the previous year same period data. Basic EPS declined by 11 per cent at constant currency.

In H1 FY19, on Statutory basis, the operating loss was £6.3 million, loss before tax was £6.8 million, and loss per share was 11.7 pence. Dividend per share increased by 10 per cent to 8.9 pence as compared to 8.1 pence in H1 FY18.

The company performed decently in the first half of the financial year 2019, despite ASF (African Swine Fever) headwinds in China. Though the situation in China remains challenging and volatile, the company expects to make continued strategic and financial progress in the H2 FY19 and to perform in line with the Board’s prospects in constant currency.

Share Price Performance

Daily Chart as at July-17-19, after the market closed (Source: Thomson Reuters)

On 17th July 2019, GNS shares closed at GBX 2,614 and decreased by 0.31 per cent against the previous day closing price. Stock's 52 weeks High and Low is GBX 2,998/GBX 2,090. Total outstanding market capitalisation was £1.70 billion.

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