|Healthcare Review: Cryolife Inc, Vertex Pharmaceuticals, Zalicus, Actavis, Pfizer|
|By Staff and Wire Reports|
|Tuesday, 29 October 2013 13:35|
Shares of Cryolife Inc. (NYSE:CRY) are up sharply on the heels of the company's Q3 beat.Net income for the quarter rose 106%, while product revenues jumped 11%.BioGlue revenues (which made up 80% of total product sales) rose 12% for the period. FY13 outlook: EPS of $0.58-0.60 on sales of $139-141M. $0.29/share is attributable to CRY's investment in Medafor, which C.R. Bard recently acquired. See: CRY makes nice profit on Medafor stake.
Wells Fargo is out defending Vertex Pharmaceuticals ($VRTX). The stock is trading notably lower after Incivek sales came in sharply below expectations for Q3. The company is cutting jobs related to the HCV drug. "Overall we did not see any major surprises on the call; we believe the continuing Incivek decline and cuts to the commercial team were mostly expected," analyst Brian Abrahams says, adding that the company may now be in a better position to focus on cystic fibrosis. Abrahams also sees "a reasonable probability that expected Q1 2014 data [on VX-135] in combo with daclatasvir (BMY) will demonstrate competitive SVRs."
For the second time in four sessions, Zalicus ($ZLCS) looks to be getting a lift from an SA contributor.Last time it was Jason Napodano, this time it's MarketScanners. The FDA's move to reclassify hydrocodone-based painkillers as Schedule II substances "is calling attention to ZLCS," the author says, before noting that ZLCS should perhaps be considered "a short-term" trade.
Actavis' ($ACT) Q3 prints in line as both revenue and adjusted earnings post double-digit growth.Adjusted gross margin rises 430 bps. Revenue growth by segment: Pharma, +69%; Specialty Brands, +27%; Distribution, +26%.FY13 outlook (including Warner Chilcott): Adjusted EPS of $9.26-9.39 on sales of $8.6B. Consensus is $8.35 on sales of $8.08B.FY14 outlook (including Warner Chilcott): Adjusted EPS of $12.25-13.
Pfizer ($PFE) net profit -19% to $2.59B.Revenue of $12.64B was down 2% on year.Changes FY EPS guidance to $2.15-2.20 from a prior forecast of $2.10-2.20 and vs Street expectations of 2.16. Adjusted revenues seen at $50.8-51.8B vs $50.8-52.8B prior and consensus of $51.45B.Repurchased $3.8B in shares. Revenue breakdown: Primary Care -10% to $3.26B; Emerging Markets +2% to $2.43B; Established Products -4% to $2.3B; Consumer Healthcare +1% to $788M; Oncology +24% to $407M.