E Friday Of The Heavy Week

There is nothing like a pending weekend to push Wall Street into recuperation and this worked today, in particular for my largest and highest risk sectors, drug companies, one of which reported after hours yesterday. Today the Dow Jones gained 400 points.So without further ado, here we go into the drug dealer's world.

Note that foreign stock news and results are being delayed by brokerages which are leaving it to paid sites to collect money for result news. This is not fair to those who expect the data from our brokers. The problem is particularly acute with India shares reporting Fridays when the country is in lock-down already and there is a weekend to come. I have been asked why I have subscribers who are either zionists or Muslims. The reason is that they want to own stocks from their homeland but not to be pulled around by their countrymen. The largest group of exotics in my subscriber base, as well as two reporters, in India and South Africa, are of probable Hindu heritage, why our 2nd result today was so important and hard to get.

Photo by Annie Spratt on Unsplash

*The1st reporting company was AbCellera which reported on its Q1. Revenues hit $203 mn this Q1, up from a mere $4.7 mn a year ago. Basic eps was 43¢ and diluted 37¢, missing the forecast by 1c. Net profits hit $117 mn, compared to a $2 mn loss a year ago. New programs under contract rose 63% to 119 contracts with 29 different partners.

ABCL's bamlanivimat covid-19 drug developed with Eli Lilly has been licensed to 15 countries for emergency treatment of the virus. However it is no longer licenses for solo use, but only together with LLY's etiscovimat, in the US. There is more bad news. ABCL missed its estimates which were even higher than the smashing results and the stock opened down 6.7% to $31.75. Crédit Suisse set a target price for the stock at $51. It is still down 4.86% at $32.05.

Last month ABCL used its options to take over a new channel transfer drug LY-Cov1404, for the same virus. This has been among the worst performing shares we hold, down 30% YTD.

*India's Dr. Reddy's Labs also worked with LLY on covid-19 medicines for its country, India. The high-flyer share today reported on its Q4 in rupees Rs47.28 bn vs prior year's 44.32 bn. Because of the weekend our local reporter there is not covering it. Q4 dollar earnings were $646 mn and gross profits $347 mn or crore 25.375. Net profit was $76 mn and eps 0.464 cents/ Indian share, not per ADR. Prior Q4 revenues were 63 mn and gross profits $312 mn. Last year's eps was 63¢ so business was hurt by the pandemic. Full FY after tax profits hit 1915 crore, down 2% from last year. Revenue in Q4 was below the $740 mn consensus forecast. I was ready to sign up for the San Antonio Express which published more data but it didn't like my email address. I do not have data for the earlier FY quarters.

Other news is that RDY yesterday was licensed to produce 36 mn doses the Russian covid-19 jab Sputnik V in beleagured India by the drug controller after RDY did phase II-III trials which showed an efficacy rate of 91.6%, higher than expected. It also revealed today that it got a US FDA license to produce a generic Invance intervenous antibiotic used for severe infections affecting skin, lung, stomach, pelvis, and the urinary tract, and pneumonia, and as an infection prevention in colorectal surgery.

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