- 3 Dow Stocks to Take Seriously in 2023
Nov 29, 2022
The Dow Jones Industrial Average is down more than 6% year-to-date. With slightly more than half of the index in negative territory for the year, it is easier to come up with three of the top Dow stocks for 2023.
While there appears to be a recession in the cards, Wells Fargo senior global market strategist Sameer Samana believes it will be far more moderate than in 2008, when consumers were overextended.
Each of the names making my list of excellent businesses do so because of their strong free cash flow generation. Together, they have generated nearly $140 billion in trailing 12-month free cash flow.
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Two of the three names are down approximately 20% on the year, while the third is up big time in 2022. Can you guess which it is?
With a strong December, it’s possible that the Dow could get back to breakeven by New Year’s Eve. But even if it doesn’t, all three of these Dow stocks are excellent long-term holds.
AAPL Apple $144.22 HD Home Depot $318.92 MRK Merck $108.45
Apple (AAPL) Apple store. Apple Inc. (AAPL) sells consumer electronics, computer software, services and personal computers.
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL) stock dropped nearly 2% on Black Friday. Investors were concerned that the labor unrest at Foxconn’s factory in China, which makes iPhones, would hurt supply this holiday season.
I recently read an article from TheStreet.com entitled “How Warren Buffett Got Apple Stock Wrong.” The gist of the article was that Buffett sold 94 million of Berkshire Hathaway’s (NYSE:BRK-A, NYSE:BRK-B)Apple stock from Q2 2020 to Q4 2021, missing out on approximately $8.4 billion in unrealized gains [$177.57 (price on Dec. 31, 2021) less $88.41 (price at the end of June 2020) multiplied by 94 million shares (981 million shares Q2 2020 less 887 million Q4 2021)].
To determine if Buffett made a genuine mistake, one would first have to calculate where the proceeds were reinvested and how those purchases performed in 2022. I’m not going to do that.
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What I do know is that many people thought he got Occidental Petroleum (NYSE:OXY) wrong when he made the initial investment back in 2019. In hindsight, it was excellent timing on Buffett’s part.
Apple reported its Q4 2022 results in late October. For the full year, its revenues were $394 billion, with an operating profit of $119 billion, good for an operating margin of 30.2%. That puts it seventh out of 30 DJIA companies, and high on my list of Dow stocks for 2023.
However, the gross margin for its services business is notable, at 71.7% in 2022, almost double that of its products business.
So, if Apple had no services revenue, it would have needed to generate product revenues of close to $632 billion in fiscal 2022.
That’s why Tim Cook has been good for Apple.
Home Depot (HD) Home Depot (HD) storefront on a sunny day
Source: Jonathan Weiss / Shutterstock.com
Barron’s reported on Nov. 25 that Paula Santilli, one of Home Depot’s (NYSE:HD) newest directors — Santilli and Caryn Seidman-Becker joined the board on March 1 — bought 1,583 shares of HD for $315.80 each on Nov. 16.
As far as I can tell, Home Depot doesn’t have any minimum stock ownership requirements for its directors, just its named executive officers. So, the purchase of just less than $500,000 in stock is a vote of confidence by Santilli, who also runs Pepsi’s (NASDAQ:PEP) Latin American operations.
As I like to say, “There are plenty of reasons why people sell a stock, but only one reason they buy.”
Home Depot reported Q3 2022 results in mid-November that were better than expected. HD stock has gained about $20 since.
On the top line, its revenues were $38.87 million, $910 million higher than analyst expectations, while its earnings per share were $4.24, 12 cents better than the consensus.
Interestingly, inflation and higher interest rates might help Home Depot because consumers are staying home more often to cut down discretionary spending. Still, home improvements are one thing they’ve been unwilling to put on hold.
I guess we’ll find out in 2023, but it’s been growing sales per square foot by 5% through the first nine months of 2022’s fiscal year. A positive Q4 2022 earnings report would likely push it near $400, where it traded earlier this year.
HD stock trades at 2.09x sales, its lowest level since 2018.
Merck (MRK) Merck (MRK) logo outside of corporate building
Source: Atmosphere1 / Shutterstock.com
The last of our three Dow stocks to take seriously is a pharmaceutical powerhouse. It’s been more than a year since Merck (NYSE:MRK) spun offOrganon (NYSE:OGN), its former operating segment focused on women’s health. It now has six years of exclusivity left on Keytruda, its blockbuster PD-1 (programmed death receptor-1) immunotherapy, before it loses its market exclusivity.
In Q3 2022, Keytruda accounted for 36% of its $15.0 billion revenue. Its next best-selling drug was Gardasil and Gardasil 9 — a vaccine used to prevent HPV (human papillomavirus) that can lead to cancer if undetected — with revenues less than half that of Keytruda.
Merck is doing two things to prepare for the loss of exclusivity in 2028.
First, it uses Keytruda, combined with other drugs, to help treat various cancers. The company recently revealed positive results from a phase 3 trial combining Keytruda with chemotherapy to treat gastric cancer. In combination, they’ve helped patients live longer.
Secondly, it’s making big and small acquisitions to replace some of the revenue that will be lost in 2028. Most recently, it acquired Imago BioSciences (NASDAQ:IMGO) for $1.35 billion. This clinical stage biopharmaceutical company is developing new medicines for treating bone marrow diseases. Another large acquisition was Acceleron (NASDAQ:XLRN) in November 2021. It paid $11.5 billion for the developer of cardiovascular-related treatments.
Merck’s trailing 12-month free cash flow is $15.2 billion [key ratios]. Based on a market cap of $272.6 billion, it has a free cash flow yield of 5.6%. I consider anything between 4% and 8% to be fair value.
Up nearly 40% on the year, it looks ready to finish the year on a high note.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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- Merck's blood vessel disorder drug succeeds in late-stage study
Oct 10, 2022
Merck & Co said on Monday a therapy it gained through the drugmaker's $11.5 billion acquisition of Acceleron Pharma last year met the main goal of a late-stage study in patients with a progressive blood vessel disorder.
- Merck Scores A 'Must-Win' For Its $11.5 Billion Acceleron Buyout
Oct 10, 2022 · investors.com
Merck stock jumped Monday after a drug its acquired for billions scored a "must-win" in patients with a rare blood pressure condition. The post Merck Scores A 'Must-Win' For Its $11.5 Billion Acceleron Buyout appeared first on Investor's Business Daily.
- Did Hedge Funds Catch A Break With Henry Schein, Inc. (HSIC)?
Feb 7, 2022
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Henry Schein, Inc. (NASDAQ:HSIC) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Is Henry Schein, Inc. (NASDAQ:HSIC) ready to rally soon? The best stock pickers were in a pessimistic mood. The number of long hedge fund positions fell by 8 recently. Henry Schein, Inc. (NASDAQ:HSIC) was in 31 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 40. Our calculations also showed that HSIC isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 39 hedge funds in our database with HSIC positions at the end of the second quarter.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let's take a peek at the key hedge fund action surrounding Henry Schein, Inc. (NASDAQ:HSIC). Justin John Ferayorni - Tamarack Capital Management
Justin John Ferayorni of Tamarack Capital Management
Do Hedge Funds Think HSIC Is A Good Stock To Buy Now?
At third quarter's end, a total of 31 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -21% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards HSIC over the last 25 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
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The largest stake in Henry Schein, Inc. (NASDAQ:HSIC) was held by Generation Investment Management, which reported holding $1006.3 million worth of stock at the end of September. It was followed by D E Shaw with a $96.4 million position. Other investors bullish on the company included Millennium Management, AQR Capital Management, and Woodline Partners. In terms of the portfolio weights assigned to each position Tamarack Capital Management allocated the biggest weight to Henry Schein, Inc. (NASDAQ:HSIC), around 9.62% of its 13F portfolio. Lodge Hill Capital is also relatively very bullish on the stock, designating 6.24 percent of its 13F equity portfolio to HSIC.
Because Henry Schein, Inc. (NASDAQ:HSIC) has faced a decline in interest from the smart money, logic holds that there lies a certain "tier" of funds that slashed their full holdings by the end of the third quarter. It's worth mentioning that Ken Griffin's Citadel Investment Group cut the biggest investment of all the hedgies followed by Insider Monkey, worth about $15.1 million in stock, and Greg Eisner's Engineers Gate Manager was right behind this move, as the fund sold off about $2.9 million worth. These transactions are important to note, as total hedge fund interest fell by 8 funds by the end of the third quarter.
Let's now review hedge fund activity in other stocks similar to Henry Schein, Inc. (NASDAQ:HSIC). We will take a look at Dicks Sporting Goods Inc (NYSE:DKS), GDS Holdings Limited (NASDAQ:GDS), Cemex SAB de CV (NYSE:CX), Ozon Holdings PLC (NASDAQ:OZON), Regal Beloit Corporation (NYSE:RBC), Acceleron Pharma Inc (NASDAQ:XLRN), and Global-E Online Ltd. (NASDAQ:GLBE). This group of stocks' market values match HSIC's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DKS,36,1615509,0 GDS,24,1018195,-14 CX,19,438842,-4 OZON,13,203434,-6 RBC,30,526548,-1 XLRN,58,2613991,15 GLBE,22,1002171,22 Average,28.9,1059813,1.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 28.9 hedge funds with bullish positions and the average amount invested in these stocks was $1060 million. That figure was $1483 million in HSIC's case. Acceleron Pharma Inc (NASDAQ:XLRN) is the most popular stock in this table. On the other hand Ozon Holdings PLC (NASDAQ:OZON) is the least popular one with only 13 bullish hedge fund positions. Henry Schein, Inc. (NASDAQ:HSIC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HSIC is 40.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately, HSIC wasn't nearly as popular as these 5 stocks and hedge funds that were betting on HSIC were disappointed as the stock returned -1.1% since the end of September (through 1/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as all of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
- 10 Biotech Stocks to Buy According to Matthew Strobeck’s Birchview Capital
Feb 3, 2022
In this article, we discuss 10 biotech stocks to buy according to Matthew Strobeck's Birchview Capital. If you want to skip our detailed analysis of Strobeck's history, investment philosophy, and hedge fund performance, go directly to 5 Biotech Stocks to Buy According to Matthew Strobeck's Birchview Capital.
Matthew Strobeck earned his Ph.D. from the University of Cincinnati and worked as a partner at Westfield Capital Management and as a consultant for Thomas Weisel Asset Management before launching Birchview Capital in 2014. He has held the position of chief investment officer and managing partner at Birchview Capital since February 1, 2014.
Birchview Capital is a Vermont-based hedge fund, which is primarily interested in investing in biosciences firms, spanning a wide range of areas from healthcare to the environment. Birchview Capital's purpose is to invest in undervalued growth possibilities and, if possible, participate in the development of these companies. The fund filed third-quarter 13F filings with the Securities and Exchange Commission (SEC), which revealed a $146.96 million US equities portfolio. Birchview Capital's top 10 holdings alone accounted for nearly 70.43% of the fund's total investments at the time, despite having 64 positions in its portfolio.
Among the essential large-cap biotech stocks are Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), Amgen, Inc. (NASDAQ:AMGN), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). 10 Biotech Stocks to Buy According to Matthew Strobeck's Birchview Capital
Matthew Strobeck of Birchview Capital
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) develops, produces, and sells pharmaceuticals to treat various medical problems across the world. On January 5, BofA analyst Geoff Meacham downgraded Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to Underperform from Neutral with a price target of $575, down from $675. Even though Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)'s Eylea and Dupixent are likely to grow in 2022, according to Meacham, consensus projections for both programs remain cautious and they face competitive hurdles.
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Another notable biotech company is Amgen, Inc. (NASDAQ:AMGN). On January 26, BofA analyst Geoff Meacham initiated coverage of Amgen, Inc. (NASDAQ:AMGN), rating the stock as Overweight and setting a price target of $255.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a multinational biotechnology business. After Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) posted Q4 earnings and provided a 2022 outlook, Jefferies analyst Michael Yee called Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) the top big-cap biotech company in the market. Therefore, on January 27, Yee kept a Buy rating on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) shares and gave a price target of $275.
However, in this article, we lay our focus on biotech stocks to buy according to Matthew Strobeck's Birchview Capital.
Our Methodology
Here is a list of 10 biotech stocks to buy according to Matthew Strobeck's Birchview Capital. We used Strobeck's 13F portfolio for Q3 2021 for this analysis. The hedge fund data discussed is based on the 867 funds being tracked by Insider Monkey as of the third quarter of 2021.
Biotech Stocks to Buy According to Matthew Strobeck's Birchview Capital
10. Acceleron Pharma Inc. (NASDAQ:XLRN)
Birchview Capital Stake Value: $1,837,000
Percentage of Birchview Capital’s 13F Portfolio: 1.25%
Number of Hedge Fund Holders: 58
Acceleron Pharma Inc. (NASDAQ:XLRN) is a biotech business specializing in researching, developing, and marketing new treatments. Birchview Capital holds 10,672 shares in Acceleron Pharma Inc. (NASDAQ:XLRN), worth over $1.84 million, representing 1.25% of its Q3 portfolio.
On September 30, Merck & Co., Inc. (NYSE:MRK) purchased Acceleron Pharma Inc. (NASDAQ:XLRN) through a subsidiary for an estimated total equity value of $11.5 billion. On January 28, JPMorgan analyst Chris Schott cut his price objective on Merck & Co., Inc. (NYSE:MRK) to $95 from $100 and maintained an Overweight rating on the stock. The analyst does not foresee any big surprises with Merck & Co., Inc. (NYSE:MRK)'s 2022 projection.
The number of hedge funds tracked by Insider Monkey having stakes in Acceleron Pharma Inc. (NASDAQ:XLRN) grew to 58 in Q3, up from 43 funds in the preceding quarter. These stakes hold a consolidated value of $2.61 billion, up from $1.58 billion.
Just like Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), Amgen, Inc. (NASDAQ:AMGN), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Acceleron Pharma Inc. (NASDAQ:XLRN) is one of the notable biotech stocks gaining the attention of investors.
9. Prothena Corporation plc (NASDAQ:PRTA)
Birchview Capital Stake Value: $2,867,000
Percentage of Birchview Capital’s 13F Portfolio: 1.95%
Number of Hedge Fund Holders: 25
Prothena Corporation plc (NASDAQ:PRTA) is a global biotechnology company specializing in the research, production, and marketing of immunotherapies for disorders involving protein misfolding and cell adhesion. According to the 13F filings for the third quarter of 2021, Birchview Capital holds 40,247 shares of Prothena Corporation plc (NASDAQ:PRTA), amounting to more than $2.87 million, representing 1.95% of the fund’s portfolio value.
On November 19, JMP Securities analyst Gobind Singh initiated coverage of Prothena Corporation plc (NASDAQ:PRTA), rating the stock as Outperform and setting a price target of $77. EcoR1 Capital, with 11.28 million shares, is the most significant stakeholder in the company.
As of the end of the third quarter, 25 hedge funds in Insider Monkey's database held stakes in Prothena Corporation plc (NASDAQ:PRTA), an increase as compared to 20 funds in the preceding quarter.
8. United Therapeutics Corporation (NASDAQ:UTHR)
Birchview Capital Stake Value: $3,322,000
Percentage of Birchview Capital’s 13F Portfolio: 2.26%
Number of Hedge Fund Holders: 52
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology business that develops and commercializes treatments for people suffering from chronic and life-threatening illnesses. UHeart, the world's first recipient of a genetically modified xenotransplanted organ created by United Therapeutics (NASDAQ:UTHR), reached the two-week milestone in January.
The hedge fund of Matthew Strobeck entered the third quarter of 2021 with 18,000 shares of United Therapeutics (NASDAQ:UTHR) in its portfolio, worth around $3.32 million. United Therapeutics (NASDAQ:UTHR) has featured on Strobeck’s portfolio since the fourth quarter of 2019.
United Therapeutics (NASDAQ:UTHR) is also getting the attention of the smart money, as 52 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 45 funds a quarter earlier.
7. Albireo Pharma, Inc. (MASDAQ:ALBO)
Birchview Capital Stake Value: $3,526,000
Percentage of Birchview Capital’s 13F Portfolio: 2.39%
Number of Hedge Fund Holders: 13
Albireo Pharma, Inc. (MASDAQ:ALBO) is a biotechnology firm that focuses on developing therapeutic medications for gastrointestinal disorders. H.C. Wainwright analyst Ed Arce boosted his price objective on Albireo Pharma, Inc. (MASDAQ:ALBO) to $80 from $79 on November 5, and maintained a Buy rating on the stock following the Q3 results.
Matthew Strobeck's Birchview Capital increased its position in Albireo Pharma, Inc. (MASDAQ:ALBO) by 2% in the third quarter, ending the period with 113,000 shares of the company. The fund has a $3.53 million stake in the company.
At the end of the third quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $143.41 million in Albireo Pharma, Inc. (MASDAQ:ALBO), down from 15 funds in the preceding quarter, holding stakes in the company equalling $168.81 million.
6. Biogen Inc. (NASDAQ:BIIB)
Birchview Capital Stake Value: $3,566,000
Percentage of Birchview Capital’s 13F Portfolio: 2.42%
Number of Hedge Fund Holders: 66
Biogen Inc. (NASDAQ:BIIB) is a biotechnology business that focuses on neurological disorders such as multiple sclerosis, Alzheimer's disease, Parkinson's disease, and amyotrophic lateral sclerosis. Biogen Inc. (NASDAQ:BIIB) decided to participate in the research and commercialization of the treatment for B-cell non-lymphoma Hodgkin's on February 1.
Before Biogen Inc. (NASDAQ:BIIB)'s Q4 earnings, Barclays analyst Carter Gould trimmed his price objective on Biogen Inc. (NASDAQ:BIIB) to $244 from $280 and maintained an Equal Weight rating on the stock on January 20. Gould wrote in a research note that the company is at a decision point ahead of near-term events.
66 hedge funds in our database held stakes in Biogen Inc. (NASDAQ:BIIB) at the end of the third quarter, compared to 67 funds in the second quarter.
Along with Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), Amgen, Inc. (NASDAQ:AMGN), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Biogen Inc. (NASDAQ:BIIB) is one of the biotech stocks on the radar of smart investors.
In its second-quarter 2021 investor letter, Miller Value Partners highlighted a few stocks and Biogen Inc. (NASDAQ:BIIB) is one of them. Here is what the fund said:
“We started building a position in Biogen (BIIB) following the approval in early June of Aduhelm, their controversial Alzheimer’s drug. The stock initially traded up to an intra-day high of $468.55 and subsequently traded down to a low of $340.27 near the end of June. We believe the significant unmet need will lead to higher than expected demand for the drug.”
Click to continue reading and see 5 Biotech Stocks to Buy According to Matthew Strobeck's Birchview Capital.
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Disclosure: None. 10 Biotech Stocks to Buy According to Matthew Strobeck's Birchview Capital is originally published on Insider Monkey.
- Here is What Hedge Funds Think About American Financial Group (AFG)
Dec 15, 2021
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of American Financial Group (NYSE:AFG).
American Financial Group (NYSE:AFG) was in 23 hedge funds' portfolios at the end of September. The all time high for this statistic is 30. AFG investors should be aware of an increase in hedge fund sentiment recently. There were 19 hedge funds in our database with AFG holdings at the end of June. Our calculations also showed that AFG isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Jim Simons of Renaissance Technologies
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we're going to take a look at the fresh hedge fund action regarding American Financial Group (NYSE:AFG).
Do Hedge Funds Think AFG Is A Good Stock To Buy Now?
At third quarter's end, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards AFG over the last 25 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions). Is AFG A Good Stock To Buy?
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Gavin M. Abrams's Abrams Bison Investments has the number one position in American Financial Group (NYSE:AFG), worth close to $72.4 million, comprising 5.4% of its total 13F portfolio. The second most bullish fund manager is Millennium Management, managed by Israel Englander, which holds a $65.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions comprise Dmitry Balyasny's Balyasny Asset Management, Thomas Rigo's Bishop Rock Capital and Steve Cohen's Point72 Asset Management. In terms of the portfolio weights assigned to each position Abrams Bison Investments allocated the biggest weight to American Financial Group (NYSE:AFG), around 5.39% of its 13F portfolio. Bishop Rock Capital is also relatively very bullish on the stock, earmarking 4.99 percent of its 13F equity portfolio to AFG.
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As aggregate interest increased, specific money managers were leading the bulls' herd. Abrams Bison Investments, managed by Gavin M. Abrams, created the largest position in American Financial Group (NYSE:AFG). Abrams Bison Investments had $72.4 million invested in the company at the end of the quarter. Michael Gelband's ExodusPoint Capital also made a $2.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Greg Eisner's Engineers Gate Manager, and Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as American Financial Group (NYSE:AFG) but similarly valued. These stocks are Henry Schein, Inc. (NASDAQ:HSIC), Dicks Sporting Goods Inc (NYSE:DKS), GDS Holdings Limited (NASDAQ:GDS), Cemex SAB de CV (NYSE:CX), Ozon Holdings PLC (NASDAQ:OZON), Regal Beloit Corporation (NYSE:RBC), and Acceleron Pharma Inc (NASDAQ:XLRN). This group of stocks' market caps match AFG's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HSIC,31,1483481,-8 DKS,36,1615509,0 GDS,24,1018195,-14 CX,19,438842,-4 OZON,13,203434,-6 RBC,30,526548,-1 XLRN,58,2613991,15 Average,30.1,1128571,-2.6 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.1 hedge funds with bullish positions and the average amount invested in these stocks was $1129 million. That figure was $240 million in AFG's case. Acceleron Pharma Inc (NASDAQ:XLRN) is the most popular stock in this table. On the other hand Ozon Holdings PLC (NASDAQ:OZON) is the least popular one with only 13 bullish hedge fund positions. American Financial Group (NYSE:AFG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for AFG is 43.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. A small number of hedge funds were also right about betting on AFG as the stock returned 12.4% since the end of the third quarter (through 12/9) and outperformed the market by an even larger margin.
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- Henry Schein, Inc. (HSIC) Fell Out Of Favor With Hedge Funds
Dec 9, 2021
As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds' thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Henry Schein, Inc. (NASDAQ:HSIC).
Henry Schein, Inc. (NASDAQ:HSIC) investors should be aware of a decrease in activity from the world's largest hedge funds recently. Henry Schein, Inc. (NASDAQ:HSIC) was in 31 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 40. Our calculations also showed that HSIC isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let's review the recent hedge fund action encompassing Henry Schein, Inc. (NASDAQ:HSIC). Joel Greenblatt Gotham Asset Management
Joel Greenblatt of Gotham Asset Management
Do Hedge Funds Think HSIC Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of -21% from one quarter earlier. On the other hand, there were a total of 40 hedge funds with a bullish position in HSIC a year ago. With hedge funds' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).
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More specifically, Generation Investment Management was the largest shareholder of Henry Schein, Inc. (NASDAQ:HSIC), with a stake worth $1006.3 million reported as of the end of September. Trailing Generation Investment Management was D E Shaw, which amassed a stake valued at $96.4 million. Millennium Management, AQR Capital Management, and Woodline Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Tamarack Capital Management allocated the biggest weight to Henry Schein, Inc. (NASDAQ:HSIC), around 9.62% of its 13F portfolio. Lodge Hill Capital is also relatively very bullish on the stock, setting aside 6.24 percent of its 13F equity portfolio to HSIC.
Since Henry Schein, Inc. (NASDAQ:HSIC) has witnessed declining sentiment from the aggregate hedge fund industry, we can see that there lies a certain "tier" of fund managers who were dropping their full holdings by the end of the third quarter. Intriguingly, Ken Griffin's Citadel Investment Group dumped the largest stake of the 750 funds monitored by Insider Monkey, worth an estimated $15.1 million in stock, and Greg Eisner's Engineers Gate Manager was right behind this move, as the fund said goodbye to about $2.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 8 funds by the end of the third quarter.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Henry Schein, Inc. (NASDAQ:HSIC) but similarly valued. We will take a look at Dicks Sporting Goods Inc (NYSE:DKS), GDS Holdings Limited (NASDAQ:GDS), Cemex SAB de CV (NYSE:CX), Ozon Holdings PLC (NASDAQ:OZON), Regal Beloit Corporation (NYSE:RBC), Acceleron Pharma Inc (NASDAQ:XLRN), and Global-E Online Ltd. (NASDAQ:GLBE). This group of stocks' market caps match HSIC's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DKS,36,1615509,0 GDS,24,1018195,-14 CX,19,438842,-4 OZON,13,203434,-6 RBC,30,526548,-1 XLRN,58,2613991,15 GLBE,22,1002171,7 Average,28.9,1059813,-0.4 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 28.9 hedge funds with bullish positions and the average amount invested in these stocks was $1060 million. That figure was $1483 million in HSIC's case. Acceleron Pharma Inc (NASDAQ:XLRN) is the most popular stock in this table. On the other hand Ozon Holdings PLC (NASDAQ:OZON) is the least popular one with only 13 bullish hedge fund positions. Henry Schein, Inc. (NASDAQ:HSIC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HSIC is 40.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately HSIC wasn't nearly as popular as these 5 stocks and hedge funds that were betting on HSIC were disappointed as the stock returned -6.7% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
- 10 Best Healthcare Stocks to Buy According to Greg Martinez’s Parkman Healthcare Partners
Dec 4, 2021
In this article, we discuss the 10 best healthcare stocks to buy according to Greg Martinez's Parkman Healthcare Partners. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners.
Greg Martinez has been the portfolio manager and managing member at Parkman Healthcare Partners since April 2019, which is a Connecticut-based healthcare focused investment firm. Martinez manages a portfolio valued at over $395 million at Parkman Healthcare Partners, in addition to assets under management of $440 million, according to the Q3 13F filings.
Martinez completed his Bachelor’s in history and political science from Duke University, and earned an MBA from the Kellogg School of Management at Northwestern University, where he specialized in finance, strategy, and accounting. Throughout his tenure, Martinez has served across multiple investment management firms. He was the senior vice president at Pequot Capital from 2004 to 2008, switching to Diamondback Capital Management in 2008 as a portfolio manager. Martinez also worked at Norumbega Capital and Schonfeld Strategic Advisors as a portfolio manager over the years, before joining Parkman Healthcare Partners in 2019.
93.65% of the 13F securities at Parkman Healthcare Partners are concentrated in the healthcare, pharmaceutical, and life sciences industries. The firm purchased 11 new stocks, reduced holdings in 29 securities, made additional purchases in 18 companies, and sold out of 19 holdings, as of September this year. Martinez’s top buys for Q3 include Fulcrum Therapeutics, Inc. (NASDAQ:FULC), AbbVie Inc. (NYSE:ABBV), and Amgen Inc. (NASDAQ:AMGN), whereas, he reduced holdings in Intuitive Surgical, Inc. (NASDAQ:ISRG), Charles River Laboratories International, Inc. (NYSE:CRL), and Acceleron Pharma Inc. (NASDAQ:XLRN), among others.
The most notable stocks in George Martinez’s Q3 portfolio include AbbVie Inc. (NYSE:ABBV), Danaher Corporation (NYSE:DHR), United Therapeutics Corporation (NASDAQ:UTHR), and Avantor, Inc. (NYSE:AVTR), among others discussed in detail below.
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Our Methodology
We used the Q3 portfolio of Greg Martinez's Parkman Healthcare Partners to select the top 10 healthcare stocks that the firm currently holds, ranking them according to the firm’s stake value in each holding.
Trong Nguyen / Shutterstock.com
Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners
10. Natera, Inc. (NASDAQ:NTRA)
Parkman Healthcare Partners’ Stake Value: $10,035,000
Percentage of Parkman Healthcare Partners’ 13F Portfolio: 2.53%
Number of Hedge Fund Holders: 50
Natera, Inc. (NASDAQ:NTRA) is a Texas-based genetic testing company, focused on improving treatments for women’s health, cancer, and organ health, via non-invasive DNA testing expertise. Greg Martinez holds a $10 million stake in Natera, Inc. (NASDAQ:NTRA) via Parkman Healthcare Partners, which accounts for 2.54% of the firm’s Q3 portfolio.
Natera, Inc. (NASDAQ:NTRA) posted on November 4 its Q3 results. EPS in the quarter came in at -$1.63, missing analysts’ consensus estimates by -$0.34. The $158.12 million revenue gained 61.11% on a year-over-year basis, and exceeded estimated revenue by $6.19 million.
Baird analyst Catherine Ramsey Schulte on November 5 raised the price target on Natera, Inc. (NASDAQ:NTRA) to $152 from $145 and kept an Outperform rating on the shares, stating that the core momentum of the stock remains strong despite COVID-19 pressures.
Samuel Isaly’s OrbiMed Advisors holds a $175.2 million stake in Natera, Inc. (NASDAQ:NTRA) as of Q3 2021, making it one of the leading stakeholders of the company. Overall, 50 hedge funds monitored by Insider Monkey were bullish on Natera, Inc. (NASDAQ:NTRA), down from 52 in the preceding quarter.
In addition to AbbVie Inc. (NYSE:ABBV), Danaher Corporation (NYSE:DHR), United Therapeutics Corporation (NASDAQ:UTHR), and Avantor, Inc. (NYSE:AVTR), Natera, Inc. (NASDAQ:NTRA) is a notable stock from George Martinez’s Q3 investment portfolio.
Here is what Baron Funds has to say about Natera, Inc. (NASDAQ:NTRA) in its Q3 2021 investor letter:
“We initiated a position in Natera, Inc., a diagnostics company with a cell free DNA platform that enables it to detect tiny amounts of DNA in a blood sample. Natera first applied its technology platform to women’s health, where the company markets a blood test that can detect fetal DNA in the blood of pregnant women, enabling early detection of chromosomal abnormalities with a non-invasive test. Through the strength of its technology platform, clinical data, and customer service, Natera has established itself as a market leader in non-invasive prenatal testing. Natera is seeing tailwinds in its women’s health business from recently expanded insurance coverage for average risk pregnancies. Natera is now applying its technology platform to other markets, including the oncology market and the organ transplant market. In the oncology market, Natera offers a personalized blood-based DNA test called Signatera, which detects and quantifies how much residual cancer DNA remains in the body after surgery. Signatera helps physicians determine whether chemotherapy is necessary after surgery and monitor for cancer recurrence before the cancer is detectable with standard imaging. We think Signatera will change the standard of care and is in the early innings of adoption in a market we estimate to be over $15 billion. We think Natera has a long runway for growth with expanding margins and profitability.”
9. Charles River Laboratories International, Inc. (NYSE:CRL)
Parkman Healthcare Partners’ Stake Value: $10,317,000
Percentage of Parkman Healthcare Partners’ 13F Portfolio: 2.61%
Number of Hedge Fund Holders: 46
Charles River Laboratories International, Inc. (NYSE:CRL), a pharmaceutical company offering biologics testing, vaccine services, microbial solutions, and preclinical testing, is one of the top stock picks of George Martinez from the third quarter, with his investment firm owning 25,000 Charles River Laboratories International, Inc. (NYSE:CRL) shares, worth $10.31 million, accounting for 2.61% of the firm’s Q3 portfolio.
Charles River Laboratories International, Inc. (NYSE:CRL), on November 3, posted its Q3 earnings. EPS in the third quarter amounted to $2.70, outperforming estimates by $0.12. Revenue for the company equaled $895.54 million, up 20.54% year-over-year, yet missing estimates by -$6.21 million.
After the Q3 performance, on November 16, Deutsche Bank analyst George Hill raised the price target on Charles River Laboratories International, Inc. (NYSE:CRL) to $409 from $354 and kept a Buy rating on the shares.
The leading stakeholder of Charles River Laboratories International, Inc. (NYSE:CRL) as of Q3 2021 is Gabriel Plotkin’s Melvin Capital Management, with 375,000 shares worth almost $155 million. Overall, 46 funds out of the 867 elite hedge funds monitored by Insider Monkey as of September were bullish on Charles River Laboratories International, Inc. (NYSE:CRL), up from 44 funds in the preceding quarter.
Here is what ClearBridge Investments has to say about Charles River Laboratories International, Inc. (NYSE:CRL) in its Q2 2021 investor letter:
“The Strategy also received strong contributions from several companies in the health care sector. Charles River Laboratories provides products and services to support pharmaceutical and biotechnology clinical research. The market reacted positively to the company’s announced acquisition of Vigene Biosciences, a gene therapy development and manufacturing company, which will allow Charles River to expand its cell and gene therapy portfolio.”
8. Seagen Inc. (NASDAQ:SGEN)
Parkman Healthcare Partners’ Stake Value: $12,340,000
Percentage of Parkman Healthcare Partners’ 13F Portfolio: 3.12%
Number of Hedge Fund Holders: 40
Seagen Inc. (NASDAQ:SGEN) is a biotech company from Washington, working on revolutionizing oncology treatments and care, via developing monoclonal antibody-based therapies for cancer. Greg Martinez holds a $12.34 million position in Seagen Inc. (NASDAQ:SGEN) as of September this year, which accounts for 3.12% of his total investments at Parkman Healthcare Partners. Martinez increased his stake in Seagen Inc. (NASDAQ:SGEN) by 61% in Q3, as compared to the preceding quarter.
On October 28, the Q3 EPS for Seagen Inc. (NASDAQ:SGEN) totaled -$1.61, missing estimates by -$1.04. The $424.06 million revenue was down almost 60% from the prior-year quarter, but outperformed estimated revenue by $38.91 million. Wolfe Research analyst Andrew Galler on November 8 initiated coverage of Seagen Inc. (NASDAQ:SGEN) with a Peer Perform rating and a $195 price target.
As of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey were bullish on Seagen Inc. (NASDAQ:SGEN), with stakes amounting to $9.4 billion. This is an increase as compared to Q2, with 37 funds owning stakes worth $8.7 billion in Seagen Inc. (NASDAQ:SGEN).
Here is what Carillon Tower Advisers has to say about Seagen Inc. (NASDAQ:SGEN) in their Q4 2020 investor letter:
“Seagen is a biotechnology company engaged in the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer. The stock slumped a bit in the quarter after the firm announced it was lowering guidance for its drug Adcetris, which is an antibody medication used to treat lymphoma. We remain optimistic on the stock, primarily due to the company’s appealing pipeline of new products as well as the continued growth of Padcev (for metastatic urothelial cancer) and Tucatinib (for breast cancer).”
7. Danaher Corporation (NYSE:DHR)
Parkman Healthcare Partners’ Stake Value: $13,798,000
Percentage of Parkman Healthcare Partners’ 13F Portfolio: 3.49%
Number of Hedge Fund Holders: 74
Danaher Corporation (NYSE:DHR) is a conglomerate involved in the life sciences industry, diagnostics, and environmental and applied solutions. As of Q3 2021, Greg Martinez’s Parkman Healthcare Partners holds 45,324 shares in Danaher Corporation (NYSE:DHR), valued at $13.79 million, representing 3.49% of the firm’s total securities.
Fisher Asset Management holds a leading stake in Danaher Corporation (NYSE:DHR), with 3.44 million shares worth over $1 billion. Overall, 74 hedge funds monitored by Insider Monkey reported owning stakes worth $6.94 billion in Danaher Corporation (NYSE:DHR) as of September this year.
The Q3 earnings were announced on October 21 by Danaher Corporation (NYSE:DHR). EPS for the third quarter amounted to $2.39, topping estimates by $0.24. The $7.23 billion revenue was up 22.88% from the previous-year quarter, outperforming analysts’ consensus estimates by $226.84 million.
On October 22, Baird analyst Catherine Schulte raised the price target on Danaher to $340 from $305 and kept an Outperform rating on the shares. The analyst observed that company management raised 2021 guidance owing to market share and competitiveness, normalized customer activity, and solid funding environments.
Here is what ClearBridge Investments has to say about Danaher Corporation (NYSE:DHR) in its Q2 2021 investor letter:
“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector. Danaher, for example, is seeing customer activity approach pre-pandemic levels and is executing well. In addition to improving health through its life sciences (research tools for biopharmaceutical, food and beverage, medical, aerospace and microelectronics industries) and diagnostics (tools for use in labs and critical care settings) businesses, Danaher offers environmental and applied solutions that keep global food and water supplies safe.”
6. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Parkman Healthcare Partners’ Stake Value: $14,155,000
Percentage of Parkman Healthcare Partners’ 13F Portfolio: 3.58%
Number of Hedge Fund Holders: 40
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a company focused on RNA interference therapeutics for genetically defined diseases, is one of Greg Martinez’s top stock picks from the third quarter. Parkman Healthcare Partners holds 74,967 shares in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), worth $14.1 million, representing 3.58% of the firm’s Q3 portfolio.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), on October 28, posted Q3 earnings. The EPS totaled -$1.72, missing estimates by -$0.15. Revenue for the quarter came in at $187.63 million, up 49.09% from the prior-year quarter, yet missed estimated revenue by -$31.06 million.
Needham analyst Joseph Stringer on November 22 raised the price target on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) to $205 from $180 and kept a Buy rating on the shares, stating that the company’s balance sheet is strong, and the top and bottom line is improving.
Eli Casdin’s Casdin Capital holds a leading position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), with 1 million shares amounting to $188.8 million. As per Insider Monkey’s Q3 database, a total of 40 hedge funds were bullish on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), up from 33 funds in the preceding quarter.
In addition to AbbVie Inc. (NYSE:ABBV), Danaher Corporation (NYSE:DHR), United Therapeutics Corporation (NASDAQ:UTHR), and Avantor, Inc. (NYSE:AVTR), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a notable stock from George Martinez’s Q3 investment portfolio.
Click to continue reading and see 5 Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners.
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Disclosure: None. 10 Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners is originally published on Insider Monkey.
- Merck Closes Biggest Biotech Deal of the Year
Nov 22, 2021
The purchase of Acceleron Pharma gives Merck one more arrow in its quiver as it prepares for the patent on its blockbuster cancer therapeutic Keytruda to expire.
- Merck Completes Acquisition of Acceleron Pharma Inc.
Nov 22, 2021
KENILWORTH, N.J., November 22, 2021--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced the successful completion of the acquisition of Acceleron Pharma Inc. (Nasdaq: XLRN).
"This is an important and strategic opportunity for our company to continue growing our cardiovascular portfolio and pipeline, that builds on our long and proud legacy in cardiovascular disease and further bolsters our business development strategy," said Rob Davis, chief executive officer and president, Merck. "Fueled by Acceleron’s groundbreaking research, we are excited to explore the opportunities and possibilities ahead to reach even more patients by addressing this critical health need."
Acceleron is focused on harnessing the power of the transforming growth factor (TGF)-beta superfamily of proteins that is known to play a central role in the regulation of cell growth, differentiation and repair. Acceleron’s lead therapeutic candidate, sotatercept, has a novel mechanism of action with the potential to improve short-term and/or long-term clinical outcomes in patients with pulmonary arterial hypertension (PAH), a progressive and life-threatening blood vessel disorder. Sotatercept is in Phase 3 trials as add-on to current standard of care for the treatment of PAH.
About Merck
For over 130 years, Merck, known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the world’s most challenging diseases in pursuit of our mission to save and improve lives. We demonstrate our commitment to patients and population health by increasing access to health care through far-reaching policies, programs and partnerships. Today, Merck continues to be at the forefront of research to prevent and treat diseases that threaten people and animals – including cancer, infectious diseases such as HIV and Ebola, and emerging animal diseases – as we aspire to be the premier research-intensive biopharmaceutical company in the world. For more information, visit www.merck.com and connect with us on Twitter, Facebook, Instagram, YouTube and LinkedIn.
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Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA
This news release of Merck & Co., Inc., Kenilworth, N.J., USA (the "company") includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of the global outbreak of novel coronavirus disease (COVID-19); the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s 2020 Annual Report on Form 10-K and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
View source version on businesswire.com: https://www.businesswire.com/news/home/20211122005755/en/
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