After Abandoning Allergan Deal, Pfizer Optimistic For Strong Year Ahead
The drug maker reported strong first quarter profits of $3.02 billion. In other news, CVS Health also had a good first quarter, with an 18.9-percent revenue boost, while pharmaceutical companies take the top spots on a global ranking of large-cap stocks.
The Wall Street Journal:
Pfizer Reports Rock-Solid Quarter, Sees Stronger Year Ahead
Pfizer Inc. raised its earnings outlook for the year, and said it isn’t planning to pursue another tax-inversion merger due to White House opposition. Pfizer and Ireland-based Allergan PLC last month canceled their planned $150 billion merger after the U.S. Treasury Department issued new rules designed to stymie such tax-lowering deals, known as inversions, which move the tax residences of companies to countries with lower corporate tax rates. (Rockoff and Hufford, 5/3)
The Associated Press:
CVS Health Tops Street 1Q Forecasts
Specialty drugs and retail expansions boosted CVS Health's first-quarter revenue by 18.9 percent, helping to offset higher costs and push results above Wall Street expectations. The nation's second-largest drugstore chain also confirmed its full-year profit outlook, though second-quarter forecasts are short of expectations. First-quarter profit fell 6.1 percent during the period to $1.15 billion, or $1.04 per share, mainly on higher acquisition-related costs. Excluding certain expenses, the company earned $1.18 per share. (5/3)
The Wall Street Journal:
CVS Health’s Results Top Views As Prescription Volumes Climb
CVS Health Corp.’s first-quarter sales surged, helped by more prescription claims and specialty drug sales at its pharmacy-benefits business, and added revenue from recent acquisitions on its drugstore side. Its pharmacy-service division, which includes the specialty pharmacy businesses and its pharmacy benefit manager, posted a 21% increase in sales. The retail division logged growth of 19%, primarily from the addition of roughly 1,600 Target Corp. pharmacies that CVS now runs as well as the acquisition of Omnicare Inc., which dispenses drugs to places like nursing homes. CVS completed both deals in the last year. (Ziobro and Beilfuss, 5/3)
Reuters:
Big Pharma Dominates Ranking Of Stocks With Best Five-Year Returns
U.S. pharmaceutical companies dominated an annual global ranking of top 10 large-cap stocks with the best five-year returns, according to an analysis released on Tuesday by Boston Consulting Group. Drug company Regeneron Pharmaceuticals, which had an average annual total share return of 75.3 percent, was the top performer. Allergan and Gilead Sciences, with 43.3 percent and 41.4 percent average annual returns, respectively, took second and third place. (Kearney, 5/3)
Meanwhile, the FDA issues a warning about antipsychotic medication Abilify, and Martin Shkreli could face more charges —
The Wall Street Journal:
FDA Warns Of Rare Impulse Reactions To Abilify Medication
The Food and Drug Administration on Tuesday warned of rare cases in which patients taking the antipsychotic medication Abilify have experienced uncontrollable urges to gamble, binge eat, shop and engage in sex. The drug is also sold under the generic name aripiprazole and the brand names Abilify Maintena and Aristada. The FDA noted that such cases, while rare, can in theory affect anyone taking the medication. (Burton, 5/3)
The Wall Street Journal:
Prosecutors Say More Charges Against Martin Shkreli Likely
Prosecutors are likely to file additional charges against former pharmaceutical executive Martin Shkreli and his onetime lawyer Evan Greebel, prosecutors have told defense lawyers. Lawyers for. Messrs. Shkreli and Greebel, who were arrested on fraud charges last year, told a federal judge on Tuesday that prosecutors informed them of the possible new charges in a recent meeting. Assistant U.S. Attorney Winston Paes confirmed during the hearing the government is considering filing new charges related to the pair’s alleged defrauding of pharmaceutical company Retrophin Inc., where Mr. Shkreli was previously chief executive. (Matthews, 5/3)
Bloomberg:
U.S. Warns Shkreli May Face More Charges In Securities Case
Disgraced drug company founder Martin Shkreli isn’t rushing to have his next showdown with the government. The 33-year-old former executive asked a judge to wait before setting a trial date for his securities fraud case because he could soon face more charges. (Smythe, 5/3)
For more drug pricing news, check out our weekly feature, Prescription Drug Watch, which includes more coverage and perspectives of the issue.