Four Pharma Stocks On Move: ABC, AZN, DPH, HIK

Four Pharma Stocks on Move: ABC, AZN, DPH, HIK

Abcam PLC

Abcam plc (ABC) is a producer of reagents and tools in the realm of life sciences to support researchers and clinical communities. The company shares data concerning life sciences, which helps in understanding the causes of diseases to deduce new treatments and cure for improving health.

Unaudited trading update for FY19 released on July 22, 2019

The company expects total revenue (reported) to be of £259.9 million this year as against £233.2 million in FY18. Also, the company expects the gross margin to be better than the previous year and EBITDA margin to be in accordance with the management guidelines. Overall, the business did well and is in line with management expectations.

Financial highlights for H1 FY19

The company’s total revenue stood at £124.7 million (grew by 10.8 per cent on a reported basis) for the period, as against £112.5 million in H1 FY18. The company’s catalogue revenue(reported) stood at £117.0 million for the period as against £105.2 million in H1 FY18. The company’s gross margin stood at 70.2 per cent in H1 FY19 as against 69.8 per cent in H1 FY18. The company’s EBITDA margin stood at 32.3 per cent in H1 FY19 as against 34.7 per cent in H1 FY18. The company’s operating margin (reported) stood at 26.8 per cent in H1 FY19 as against 29.1 per cent in H1 FY18. The company’s operating margin (adjusted) stood at 32.7 per cent in H1 FY19 as against 34.8 per cent in H1 FY18.

The company’s PBT (reported) stood at £33.7 million in H1 FY19 as against £32.8 million in H1 FY18. The company’s PBT (adjusted) stood at £41.1 million in H1 FY19 as against £39.3 million in H1 FY18. The company’s diluted EPS (reported) stood at 13.4 pence in H1 FY19 as against 15.7 pence in H1 FY18. The company’s diluted EPS (adjusted) stood at 16.3 pence in H1 FY19 as against 15.5 pence in H1 FY18. The company’s cash from operations stood at £36.4 million in H1 FY19 as against £32.9 million in H1 FY18. The company has announced an interim dividend of 3.55 pence in H1 FY19 as against 3.42 pence in H1 FY18. 

 

Share price performance

Daily Chart as at July-23-19, before the market close (Source: Thomson Reuters)

On July 23, 2019, at the time of writing (before the market close, at 11:10 AM GMT), ABC shares were trading at GBX 1,287, up by 5.66 per cent against the previous day closing price. Stock’s 52 weeks High and Low are GBX 1,643.80/GBX 1,006.00. At the time of writing, the share was trading 21.70 per cent lower than the 52w High and 27.93 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 491,743.20; 30 days – 326,558.20 and 90 days – 346,265.04. The average traded volume for 5 days surged by 50.58 per cent as against 30 days average traded volume. The company’s stock beta was 0.72, which makes it less volatile in comparison to the benchmark index. The outstanding market capitalisation was around £2.51 billion, with a dividend yield of 1 per cent.

 

AstraZeneca PLC

AstraZeneca PLC (AZN), headquartered in Cambridge, the United Kingdom, is a biopharmaceutical company engaged in the development and commercialization of prescription medicines with operations in more than 100 countries. It’s primary focus areas for the treatment of diseases include oncology, respiratory, inflammation & autoimmunity, neuroscience, cardiovascular, renal & metabolism, infection & vaccines.

Recent developments

Farxiga (New Drug Application by the company) is known for controlling the glycaemic index in the body along with supporting weight loss and keeping check on blood-pressure, when used in combination with diet and exercise in adults with diabetes. FDA (Food and Drug Administration, United States) issued complete response letter regarding the use of Farxiga (dapagliflozin) for adult patients with type-1 diabetes. The company is awaiting FDA guidelines to proceed further.

Financial Highlights (Q1 FY19, US$ million)

In the first quarter of the year, driven by the sustained performance of new medicines and Emerging Markets, the company reported product sales growth of 10% on the actual exchange rate basis to $5,465 million. Reflecting the growth in product sales, core gross profit increased by 7% (13% at CER) to $4,425 million, while reported gross profit increased by 7% in the quarter (13% at CER) to $4,362 million. The Core EPS was $0.89 in Q1 FY19 and surged by 85 per cent (AER basis).

Share price performance

Daily Chart as at July-23-19, before the market close (Source: Thomson Reuters)

On July 23, 2019, at the time of writing (before the market close, at 11:15 AM GMT), AZN shares were trading at GBX 6,449, up by 1.08 per cent against the previous day closing price. Stock’s 52 weeks High and Low are GBX 6,634.00/GBX 5,312.00. Stock’s average traded volume for 5 days was 1,375,870.20; 30 days – 1,594,572.00 and 90 days – 2,049,840.64. The average traded volume for 5 days plunged by 13.72 per cent as against to 30 days average traded volume. The company’s stock beta was 0.91, which indicates it was slightly less volatile as compared to the benchmark index. The outstanding market capitalisation was around £83.87 billion, with a dividend yield of 3.37 per cent.

 

Dechra Pharmaceuticals PLC

Dechra Pharmaceuticals PLC (DPH) is into development, manufacturing and commercialisation of veterinary pharmaceuticals and related products business. It manufactures Companion Animal, Equine and Animal food & nutrition.

Unaudited trading update for FY19 released on July 09, 2019

The company’s trading was in accordance with the management during the period. The company’s revenue (reported) surged by 17 per cent for the period at CER (constant exchange rate) and rose 18 per cent at AER (actual exchange rate). The company’s European Pharmaceuticals segment turnover grew by 18 per cent (CER) and 17 per cent (AER). The company’s North America Pharmaceuticals segment turnover grew by 15 per cent (CER) and 20 per cent (AER). The company acquired Caledonian (New Zealand and Australia) and Venco (Brazil). The company has increased its stake in Medical Ethics Pty Limited to 48 per cent from 33 per cent post year period. The company will announce its preliminary results in September.

Financial highlights for H1 FY19

The company’s revenue (reported) surged by 19.1 per cent at CER and 19.2 per cent at AER for the six months ended 31 December 2018. The company’s European Pharmaceuticals segment turnover grew by 18.9 per cent (CER) and 18.1 per cent (AER). The company’s North America Pharmaceuticals segment turnover grew by 19.3 per cent (CER) and 21 per cent (AER). The company’s underlying operating profit grew by 28 per cent (CER), and 28.2 per cent (AER) and operating margin stood at 26.3 per cent. The dip in operating profit (reported) for the period was due to amortisation of the intangible assets (acquired). The company has a strong cash conversion ratio of 1.1 due to the unwinding of working capital. The company’s underlying diluted EPS stood at 41.76 pence (grew by 11.4 per cent).  The company announced an interim dividend of 9.5 pence (up by 29.6 per cent).

Share price performance

Daily Chart as at July-23-19, before the market close (Source: Thomson Reuters)

On July 23, 2019, at the time of writing (before the market close, at 11:30 AM GMT), DPH shares were trading at GBX 2,868, which is same as the previous day closing price. Stock’s 52 weeks High and Low are GBX 3,180.48/GBX 1,992.00. At the time of writing, the share was trading 9.82 per cent lower than the 52w High and 43.97 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 123,748.20; 30 days – 183,505.80 and 90 days – 181,906.06. The company’s stock beta was 0.61, which makes it less volatile as compared to the benchmark index. The market capitalisation stood at £2.95 billion.

 

Hikma Pharmaceuticals Plc

Hikma Pharmaceuticals Plc (HIK) is engaged in the development, manufacturing, and marketing of pharmaceutical products in all forms. The company has three reporting segments being Injectables, Generics and Branded. The group has more than 650 products selling in over 50 countries.

Recent developments

The company and Civica Inc together agreed upon a five-year agreement. The company will manufacture medications (new drug applications) and supply in US hospitals where Civica’s membership has grown. As per the agreement, the company will use Abbreviated New Drug Applications (ANDAs) to manufacture fourteen essentials sterile (injectable) medications and supply with Civica’s labelling along with National Drug Code (NDC).

Financial Highlights – FY2018 (US$, million)

The Group’s reported revenue grew by around 7 per cent to $2,070 million in FY18, and the core revenue surged by 7 per cent to $2,076 million in FY18 as compared to $1,936 million in FY17, reflecting good demand for in-market products and new product launches. In FY18, the Gross profit stood at $1,050 million as compared to $967 million in FY17. There was an increase of 9 per cent due to the restructuring of the Columbus facility and the consolidation of Generics manufacturing and US distribution facilities.

Excluding the impact of amortisation other than software and exceptional items, group’s core operating profit surged by 19 per cent to $460 million in FY18 against $386 million in FY17. Reported profit attributable to shareholders stood at $282 million in FY18 as against a loss of $843 million in FY17. The basic EPS for FY2018 stood at 117 cents against a loss per share of 351.3 cents.

Share price performance

Daily Chart as at July-23-19, before the market close (Source: Thomson Reuters)

On July 23, 2019, at the time of writing (before the market close, at 11:47 AM GMT), HIK shares were trading at GBX 1,804.5, up by 0.13 per cent against the previous day closing price. Stock’s 52 weeks High and Low are GBX 2,089.00/GBX 1,491.50. At the time of writing, the share was trading 13.61 per cent lower than the 52w High and 20.98 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 403,258.60; 30 days – 627,348.00 and 90 days – 589,736.79. The company’s stock beta was 0.90, which makes it slightly less volatile as compared to the benchmark index. The market capitalisation of the company stood at £4.37 billion, along with a dividend yield of 1.64 per cent.