Tag Archives: CAH

Merck, Cardinal Health Drop into Monday’s 52-Week Low Club

November 20, 2017: Here are four stocks trading with heavy volume among 64 equities making new 52-week lows in Monday’s session. On the NYSE advancers led decliners by about 3 to 2 and on the Nasdaq, advancers led decliners by about the same spread.

Merck & Co. Inc. (NYSE: MRK) dropped about 2.9% Monday to post a new 52-week low of $53.63 after closing at $55.02 on Friday. The 52-week high is $66.80. Volume was around 12.7 million, more than 25% above the daily average of about 10 million. The company’s chief competitor in a combo therapy for lung cancer reported a successful phase 3 trial.

Omega Healthcare Investors Inc. (NYSE: OHI) dropped about 2.6% Monday to post a new 52-week low of $26.43 after closing at $27.14 on Friday. The 52-week high is $35.14. Volume was around 5.3 million, more than double the daily average of around 2.3 million. The healthcare REIT had now specific news.

Curis Inc. (NASDAQ: CRIS) matched a 52-week low of $0.88 set Friday. The 52-week high is $3.48. Volume was about 4 million, four times the daily average of around 1 million. The drugmaker had no specific news Monday.

Cardinal Health Inc. (NYSE: CAH) dropped about 4.9% Monday to post a new 52-week low of $54.67 after closing at $57.51 on Friday. The stock’s 52-week high is $84.88. Volume of around 4 million was about 40% above the daily average. The drug distributor was named by Morgan Stanley as the most susceptible to an Amazon attack on the pharmaceuticals business.

24/7 Wall St.
Why This May Be the Perfect Time to Chase Warren Buffett’s Largest Stock Picks

Session Starts to the Upside; Watch for Economic Data, Earnings Reports

(Tuesday Market Open) The three major benchmarks were heading to the upside in the early going today as Wall Street seems like it might want to shake off the doldrums of the last two weeks.

Yesterday, volume was low—as is typical during a shortened holiday week with an early closing on Friday—but the Dow Jones Industrials ($DJI), the S&P 500 (SPX), the Nasdaq Composite (COMP) and the Russell 2000 (RUT) all found higher ground on which to settle. It was the third straight day of gains for the RUT.

The RUT comeback, coupled with the declines seen in the Volatility Index (VIX) ahead of Thanksgiving might typically signal a strong market. But there’s still plenty of day ahead and low volume could lead to high volatility, so watch trading patterns.

If COMP stays on the track it’s treading in the early going it might post another record peak at the close. As of Monday’s close, the three major benchmarks were pacing annual gains of 15% to 26%.

Earnings are still in the spotlight this week. Shares of Campbell Soup Company (NYSE: CPB) tumbled nearly 8% in pre-market trading after missing expectations, citing higher costs for carrots and other produce. Lowe's Companies, Inc. (NYSE: LOW) shares moved higher after beating Wall Street’s forecasts, helped somewhat by post-hurricane sales, the home-improvement retailer said. Farm-equipment maker Deere & Company (NYSE: DE) is scheduled to report earnings after the bell today and might be an interesting story to watch.

Yesterday’s session ended higher, possibly helped by economic data. The Conference Board’s Leading Economic Index (LEI) surged 1.2% in October, soundly outpacing the 0.1% gain it posted after hurricane-battered September. The LEI is considered a leading indicator of business peaks and valleys. All 10 components of the indicator rose yesterday, which could be an indication that the economy is in growth mode.

This morning, more economic news is on the docket from the Chicago Federal Reserve Bank’s national activity index and the October numbers for existing-home sales.

Shares of AT&T Inc. (NYSE: T) were moderately lower while shares of Time Warner Inc (NYSE: TWX) headed to the upside in early trading today. Late yesterday, the Department of Justice (DoJ) surprised market observers by filing an antitrust lawsuit to block T’s $85.4 billion takeover of TWX. In the complaint, DoJ said the merger would harm competition, stifle innovation and drive up prices.

DoJ said it believes that a combination of T’s AT&T and DirectTV division—one of the largest providers of Internet and subscription TV in the U.S.—with TWX’s Turner Broadcasting unit, which includes CNN, TBS, TNT, Cartoon Network, HBO and Cinemax, “would have the incentive and ability to charge more for Time Warner’s popular networks and take other actions to discourage future competitors from entering the marketplace altogether,” according to the government’s press release.

As a condition for approving the merger, the government has been pressuring for a sale of Turner Broadcasting, according to published reports last week. At a press conference later yesterday, T Chief Executive Randall Stephenson said the suit “defies logic and is unprecedented,” noting that the two companies “do not even compete with each other.” He reiterated his earlier stance that he has no intention of selling CNN. The merger is considered a vertical one, in which two companies produce different products or services within the same industry, or in this case content and distribution.

Elsewhere yesterday, the SPX telecom sector was the strongest, climbing 1%. Shares of Verizon Communications Inc. (NYSE: VZ), for example, climbed higher by 1.8% after a Wells Fargo & Co (NYSE: WFC) analyst upped VZ stock to “outperform” from “market perform,” noting the impending rollout of its next-generation 5G network.

Health care stocks were mostly depressed. Shares of Cardinal Health Inc (NYSE: CAH) fell 4.4%, for instance, after a Morgan Stanley (NYSE: MS) analyst cut the stock to “underweight” from “equal weight”

Crude oil prices stumbled Monday ahead of next week’s oil ministers meeting and were moving slightly higher early today. Though the Organization of Petroleum Exporting Countries is largely expected to extend its caps on production, analysts told MarketWatch they expected oil trading to be mostly muted ahead of the Nov. 30 meeting. West Texas Intermediate crude closed off by $0.46 to finish at $56.09 a barrel.

FIGURE 1: TELECOM INDEX CLIMBS. The S&P Telecom Index (SPSITE) finished the sector higher as it tries to rebound from the 52-week low it hit earlier this month. Data source: CME Chart source: The thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results.
Good Bye Janet: Federal Reserve Chair Janet Yellen turned in her letter of resignation to the White House yesterday, despite having six more years on her term as a member of the board of governors. Yellen, who was the first woman to lead the Fed since its inception in 1913, has been the chair since 2014, replacing Ben Bernanke.

Her four-year term as chair expires Feb. 3, when her successor Jerome Powell will take the reins. She also heads the Federal Open Market Committee, the Fed’s principal monetary policy-making body. Yellen was first appointed to the Fed board by President Clinton in August 1994 and served until February 1997, when she was named the chair of the President’s Council of Economic Advisers. Her 14-year term as a Fed board member began in 2010.

Lessons Learned from GE Dividend Cut: Never trust a dividend from a company that is paying out nearly 120% of its earnings to support its 5%-plus yield, according to Sam Stovall, CFRA chief investment strategist. That was the position that General Electric Company (NYSE: GE) was in last week when it had to cut its dividend in half amid a widespread restructuring.

“Investors can use the payout ratio to see if the company is living beyond its means by paying out in dividends more than it is earning,” Stovall said. A payout ratio is determined by dividing the annual dividend by the company’s annual net income. If the payout is over 100%, then the company is returning more money to shareholders than it is making. If it does that over a long period of time, it is not likely that the company will be able to support that payout, he said.

Happy New Year: We have not yet ended 2017 and already economists are talking about 2018. Goldman Sachs Group Inc (NYSE: GS) Research economists Jan Hatzius and Jari Stehn said yesterday that the global economy is outperforming most predictions for the first time since 2010 and they see that “amplifying” next year.

Their forecast for global gross domestic product is at 4%, “a forecast notably above consensus expectations and supported by still-easy financial conditions and fiscal policy,” Goldman Sachs said. It’s still far too early to tell how close that projection might be.

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.

Merck, Cardinal Health Drop into Monday’s 52-Week Low Club

November 20, 2017: Here are four stocks trading with heavy volume among 64 equities making new 52-week lows in Monday’s session. On the NYSE advancers led decliners by about 3 to 2 and on the Nasdaq, advancers led decliners by about the same spread.

Merck & Co. Inc. (NYSE: MRK) dropped about 2.9% Monday to post a new 52-week low of $53.63 after closing at $55.02 on Friday. The 52-week high is $66.80. Volume was around 12.7 million, more than 25% above the daily average of about 10 million. The company’s chief competitor in a combo therapy for lung cancer reported a successful phase 3 trial.

Omega Healthcare Investors Inc. (NYSE: OHI) dropped about 2.6% Monday to post a new 52-week low of $26.43 after closing at $27.14 on Friday. The 52-week high is $35.14. Volume was around 5.3 million, more than double the daily average of around 2.3 million. The healthcare REIT had now specific news.

Curis Inc. (NASDAQ: CRIS) matched a 52-week low of $0.88 set Friday. The 52-week high is $3.48. Volume was about 4 million, four times the daily average of around 1 million. The drugmaker had no specific news Monday.

Cardinal Health Inc. (NYSE: CAH) dropped about 4.9% Monday to post a new 52-week low of $54.67 after closing at $57.51 on Friday. The stock’s 52-week high is $84.88. Volume of around 4 million was about 40% above the daily average. The drug distributor was named by Morgan Stanley as the most susceptible to an Amazon attack on the pharmaceuticals business.

24/7 Wall St.
Why This May Be the Perfect Time to Chase Warren Buffett’s Largest Stock Picks

Week In Review: Shanghai Pharma Acquires Cardinal’s China Drug Distribution Network For $1.2 Billion

Shanghai Pharma (SHA: 601607) paid $1.2 billion to win the bidding war for Cardinal Health’s (NYSE:CAH) China drug distribution operations. Cardinal was China’s eighth-largest drug distribution company, with $3.5 billion in 2016 China revenues, while Shanghai Pharma is number three. After the companies are combined, Shanghai Pharma will become number one. In 2010, Cardinal got a foothold in the China market by paying $440 million to acquire Zuellig Pharma, a company that in-licensed China marketing rights to western drugs.

Arcus Biosciences, a Bay Area biotech, announced a $107 million Series C financing. The round was led by GV (formerly Google Ventures) and included participation from China investors Decheng Capital, BVF Partners and Hillhouse, among others. Arcus will use the capital for two clinical programs: AB928, a first-in-class dual adenosine receptor antagonist, and AB122, a PD-1 antibody for which Arcus in-licensed ex-China rights from WuXi Biologics (HK: 2269) and Harbin Gloria Pharma (SHZ: 002437) in a $816 million deal announced in August.

Adlai Nortye, a Hangzhou company, entered a $86.6 million in-licensing agreement to develop and market a novel immuno-oncolytic virus in Greater China that was discovered by Canada’s Oncolytics Biotech (OTCQX:ONCYF). Reolysin is an intravenously delivered immuno-oncolytic virus that activates the innate and adaptive immune systems. Oncolytics plans a US Phase III trial of Reolysin in patients with HR+/HER2 metastatic breast cancer. Adlai Nortye will be responsible for all China clinical development of the candidate.

Zensun (Shanghai) Science & Technology raised $76 million from a group of investors led by SDIC Venture Capital Management, which contributed half of the funding itself. Zensun’s lead drug is Neucardin, a novel treatment for chronic heart failure that is aimed at building the heart muscle. Zensun believes the drug, which has completed several Phase II trials in China and the US, will prove to improve cardiac function rather than treating the symptoms of cardiac disease.

Cygnus Biosciences, a Beijing company developing a novel sequencing technology, raised $19.6 million in a B Round. Cygnus is built on sequencing breakthroughs that it acquired from a Peking University team. Combining an innovative fluorogenic sequencing method with an information theory error-correction algorithm, Cygnus’s technology offers error-free sequences of up to 200 base pairs. The financing was led by Zhonguancun Development Group and Shanghai Creation Investment Management.

Pfizer (NYSE:PFE) sold its 49% stake in a China generic drug JV it formed five years ago with Zhejiang Hisun Pharma (SHA: 600267). The company sold the stake to Sapphire I Holdings at an undisclosed price. In 2016, Pfizer signaled it intended to end the partnership because the JV’s profits had not lived up to expectations. In 2012, when the JV was formed, it was said to be worth $545 million, with both companies contributing assets to the JV, not cash.

Corestone Biosciences, a Beijing novel medical device startup, formed a JV with Respiratory Motion of Boston. The JV will manufacture and offer a new generation of respiratory volume monitors, based on Respiratory Motion’s ExSpiron platform, in China and other global markets. The ExSpiron monitors are intended for post-operative hospital care and home use. Founded by industry veterans, CorestoneBio plans to focus on anesthesia and pain management.

Shanghai Pharma (SHA: 600607) told Bloomberg that it wants to keep doing international deals to expand its portfolio of drug offerings. The company plans to acquire specialty drugs from foreign manufacturers, products that target cancer and cardiovascular disorders, along with branded generics from US or European (especially Switzerland or Germany) pharmas. It also hopes to acquire foreign manufacturing facilities and to sell its own products in large western markets. The news follows Shanghai Pharma’s announcement yesterday that it will acquire Cardinal Health’s China drug distribution business for $1.2 billion.

Trials and Approvals

Ascentage Pharma, a China-US company, reported the US FDA accepted its IND submission to begin clinical trials of APG-1387, a novel small molecule targeting pathways that inhibit apoptosis. Ascentage hopes to test the candidate in patients with advanced solid tumors and hematologic malignancies. If approved for human testing, APG-1387 will be the second of Ascentage’s apoptosis-promoting candidates to start US and China clinical trials. Ascentage is headquartered in Hong Kong with an R&D lab in Shanghai and a lab-manufacturing facility in Taizhou’s China Medical City.

Kunshan RiboQuark Pharma has dosed the first person in a China trial of a siRNA ocular neuroprotectant therapy. The therapeutic (QPI-1007) treats a “stroke in the eye,” known more technically as acute non-arteritic ischemic optic neuropathy (NAION). QPI-1007 temporarily inhibits expression of the apoptotic protein, Caspase 2. RiboQuark is a JV formed by two siRNA companies: Ribo Life Science, headquartered in Kunshan, Jiangsu Province, and Quark Pharma, a US-Israeli company.

Disclosure: None

Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

SeekingAlphaAbout this article:ExpandTagged: Investing Ideas, Quick Picks & ListsWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here