1.TEVA
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a pharmaceutical company that develops, manufactures and distributes generic medicines worldwide. Teva Pharmaceutical was founded in 1901 and is headquartered in Israel. This month TEVA received FDA approval for its generic version of Mylan’s EpiPen, an epinephrine auto-injector. This is the first generic EpiPen approval and could prove to be very favorable to Teva, as Mylan (NASDAQ:MYL) have experienced inconsistent supply of product this year. However, the financial results may be delayed until next year, as there is a ramp up period and sales profits will produce higher 2019 results as it is expected that the Teva product could capture approx. 40% of the market share for epinephrine auto-injectors. Looking at the daily TEVA chart below, Teva looks to follow the age-old adage, buy the rumor, sell the news, in the short term, as it traded higher on the news release and has moved down since. But, if it finds near term support, TEVA could be a good buy opportunity back to the top and beyond.
2.Verastem Inc (NASDAQ:VSTM)
Verastem, Inc. a company established in 2010 in Needham, Mass is a biopharmaceutical company which focuses on developing drugs for the treatment of cancer. The companies lead drug to date is the defactinib, an orally taken combination therapy with immune-oncology agents and other anti- cancer compounds. Defactinib is in phase 1b study for treatment of pancreatic cancer, as well as in Phase 1 and 2 clinical trials of the treatment of ovarian cancer, non-small cell lung cancer, mesothelioma and pancreatic cancer. Along with other drugs in clinical trials for hematologic (blood) cancers such as Chronic lymphocytic leukemia and small lymphocytic lymphoma and non-Hodgkin lymphoma. The company just released 2018 2nd Quarter results with a smaller loss than expected and a solid balance sheet and the stock reacted positively. This is a good Biopharma stock to put on your watch list. Watch for the stock to dip back down to support between $7.50 and $8.00 per share and think about entering if it bounces off support, (see chart below)
3.MRK
Merck (NYSE:MRK) is a major drug manufacturer with a large portfolio of therapeutic and preventive drugs to treat cardiovascular diseases, Type 2 diabetes, asthma, nasal allergy symptoms, chronic hepatitis C, HIV-1 infections, hypertension, arthritis and pain, inflammatory and osteoporosis diseases and cholesterol modifying medicines among others. As the population ages, many of these agents become even more important. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey. While this stock is already up significantly on the year, many analysts feel Merck is well positioned to move much higher as it is a good position to ride the current demographic wave of population aging and as investors look to move from high growth stocks into more defensive growth stocks, Big Pharma is a solid choice. Looking at the chart below, the stock is in a good technical trend and is good to watch for a pull back before entering long.
4.ABBV
AbbVie (NYSE:ABBV), Inc is a major drug manufacturer with products ranging from treating autoimmune diseases , oral therapies for patients with chronic lymphocytic leukemia, (this drug is keeping a friend of mine alive as I write this). This large drug maker has a good portfolio of drugs with a lineup that promises to service the ageing population that is slated to have the adults over the age of 85 double over the next couple of decades and as this population becomes older they also become more dependent on drug therapies. One of AbbVie’s most important drugs is Humira a rheumatoid arthritis drug therapy with around $20 Billion in sales this year. Also, they are not just sitting back but are working on new drugs for Rheumatoid arthritis and other long-term drug therapies as well. Plus, the stock is offering a nice 3.9% dividend yield which could rise in the future as some of these new drugs come online. The stock has recently been in a sideways move and is a good long-term Big Pharma play as some of the new drugs come online and the population ages. Look for the long trade as it bounces off current support. (see Chart below)
5.PFE
Pfizer Inc (NYSE:PFE) is a major drug manufacturer that develops and sell drug therapy products worldwide. Pfizer was founded in 1849 and is headquartered in New York City. Among their many drug therapies, they focus on vaccines, oncology, inflammation, and immunology and rare diseases. Common brand names include Lipitor, Lyrica, Celebrex, Viagra, as well as consumer over the counter products such as Advil and Centrum vitamins. These are drugs that are well suited to take advantage of chronic diseases that are more and more important as the general population age increases. Plus, Pfizer is investing over $3.5 Billion in R & D for future growth and has a nice dividend yield of over 3%. The stock has found some solid footing over the last couple of months but is still a good longer-term hold with good growth potential and a good yield to boot.
