Healthcare Business Recap: Novartis’ Loss, Analyst Cuts Illumina Price Target
Novartis (NYSE:NVS) posted a first quarter net profit loss of 16.6 percent, down to $2.31 billion, against a consensus of $2.16 billion, while revenue was flat as its new products could not offset the slumped sales of the company’s hitherto star Diovan. Further, CEO Joe Jimenez says that when the drug’s U.S. patent expires in the third quarter, it will ‘take an even bigger hit’. Meanwhile, NVS is seeking a U.K. court review to cause some hospitals there to cease the use of Roche’s (RHHBY.PK) Avastin for treating AMD, a common cause of blindness that’s normally treated with Novartis’ top performing drug Lucentis. Though Avastin is far less expensive, it hasn’t been licensed for AMD and also has more side effects.
Illumina (NASDAQ:ILMN) gets its price target dropped by JP Morgan from $70 to $55, after its first quarter returns posted earlier on Tuesday. The statement gave conservative guidance, and sparked worries over execution and visibility in the second half of the year.
AngioDynamics (NASDAQ:ANGO) shares continued its prior day’s upward momentum, following the firm’s report that it has resumed shipments of its NanoKnife System in the U.S. market following a voluntary software modification.
The Inspector General’s office of the Department of Health and Human Services recommends that the centers for Medicare and Medicaid set up a national payment code for Roche’s Avastin, and Regeneron (NASDAQ:REGN) shares slide in response. Also recommended was that physicians become more educated regarding clinical and payment issues related to the medicine.