Wednesday proved to be a full news day with no less than 4 drug companies reporting. This is my favorite sector but I am overwhelmed with work.

There was also important data on energy. The US greatly increased its exports of liquified natural gas in the first half-year, to 9.6 billion cubic feet per day, a rise of 42% from a year earlier. The main reason was higher demand and higher spot prices. Most of the LNG went to Asia, where the growth from prior year was 46%. European demand was up only 37%. We have important reports on the energy sector too. The Dow Jones was down along with the S&P this morning, but the tech-heavy Nasdaq was up. A Fed taper was closer to coming after new data on economic recovery came out.

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So it's off to the races.

Pharmaceuticals

*Novartis's consensus target prices was cut to $1.634/sh for the current quarter from $1.668. NVS is Swiss. Its share barely moved.

*Dublin-based Alkermes plc ALKS reported sales in Q2 of $160.8 mn up from prior Q2 level of $130.715 mn. The cost of goods sold came to $53.124 mn from $54.144 mn a year earlier, moving to a pretax gain of $1234 mn versus a loss a year ago. After tax earnings came in at $23.64 mn of one US cent per share compared to prior year's loss of 43¢.

*Israeli Compugen CGEN reports that it has no debt and cash on hand of $111 mn, down from $124 mn at the start of the year. It had a net loss of $9.5 mn in Q2, equivalent of 11¢/sh. A year go it had a loss of $62 mn or 84¢/sh. It mainly told the world about how it Is working on combinations of its drug COM 701 to block tumors in various types of cancer, currently to all comers, but moving to working with specific types of tumors going forward. Its cancer treatments hit and bind with tumors and inhibit their growth, confirmed by periferal blood tests of those treated. There are now 3 targets for the cancer blockers, T stem-like cell expressing PVRIG, PVRL2, and tecentriq. These are now being tested in tumors with and without inflammation, in various cominations with Opdivo and its own anti-tigit and anti-PD1 drugs, in lympoi and a further refinement. The stock rose 9.1% at the US opening.

*Glaxo Smith Kline was up fractionally after it beat in both sales and earnings thanks to favorable comparisons with last year's Q2. Pharmaceutical sales were up 3% to £42 bn while vaccines sales were 39% higher at £1.6 bn. However, the sale of over-the-counter drugs was lower by 4% at £2.3 bn. Sales were up 15% to £8.1 bn at a constant exchange rate4s. Operating margins were 20.7%, down 39% from prior Q2 while adjusted margins were 26.7%, down 2.3%.

Net cashflow was £9.3 bn and free cashflow £31 bn. Obviously, inter-year comparisons reflect the covid-19 crisis. But other meds also did well, to treat HIV, kidney disease, immuno-oncology, and immuno-neurology meds. The group and French Sanofi was close to having a jab against covid -19, according to CEO Emma Walmesley. GSK is still planning to spinoff its OYC (consumer health products) by the middle of next year.

The bad news is that it has cut its forecasts for the full year to mid to high single digits at constant exchange rates and now only expects better revenues and margins in 2022.--not including vaccines against Covid-19. The stock barely moved. I am too pressed for time to convert sterling into $s.

*Teva reported Q2 sales off 2% at $3.9 bn, missing the consensus forecast of $4.04 bn, with North America the culprit along with Covid-19. Adjusted eps at 59¢ was in line with forecasts and adjusted gross margins at 53.3% beat the forecast of 52%. Operating income at 1 bn, up 6% from prior Q2 was mainly thanks to Europe. Its adjusted cash flow (earnings before interest, taxes, depreciation, and amortization) was up 5% to $1.2 bn, GAAP net profit was $207 mn or 19¢/sh up from prior year's $140 mn or 13¢/sh. New drugs Austedo and Ajovy, are doing well.

However, TEVA cut its guidance for the full year, calling for sales of $16-16.4 bn, from prior $16.4-16.8 bn. The consensus forecast was $16.5 bn. It predicts eps this year at $2.50-2.70, topping the consensus of $2.45, all in constant currencies. It predicts fuly EBITDA at $4.8-5.1 bn and free cash flow at $2-2.3 bn. Teva fell in the pre-market in Europe but is up 15.07% right now in US trading. That is not a mispricing.

*Japan's Eisai gained 0.8% today hitting $84.85. ESALY.

*Takeda, TAK, gained 1.46%

*Bristol-Myers BMY reported but I am not discussing it today. It was rated buy by CFRA. Thermo-Electron TMO also was rated buy by CFRA.

*Novacure rose 2.2%% at the opning and is now up 1.81% at $183.6. NVCR.

*Grifols of Spain is up 2.27%. GRFS.

*Genfit of France is up 5.43%. GNFT.

*Dr. Reddy's is down another 0.71% because of Indian virus contagion, RDY.

Finance

*Spanish Banco Santander reported net operating income up 13% from prior year thanks to digitization now applying to 52% of operations, vs 44% a year ago. This boosted Q2 profits to euros 2.067 mn, up 8% y/y, helped also by other matters like lower provisions of euros 10.798 mn and acquisitions, the latest of which is a buy of Amherst Pierpont and the rest of its Santander stock in the US announced today. It also gains from lower loan loss reserves but the cost of credit rose to .94%. Loan loss reserves were euros 24 bn, covering 73% of loans. Capital gains and provisions topped euros 3.675 mn, much lower than the euros 10.798 mn last year. But of course, that was the start of the covid crisis. Loans were 2% higher in the half and 1% higher in the quarter. The efficiency ratio was 45.7% down 159 basis points. EPS was euros 22.74 up 4 cents from the start of the year. NAV/sh was lower at euros 3.98 vs prior 4%. Results were good, said Jefferies, but its capital is weakening, with its tier 1 ration now 11.7% vs 11.9% 3 months ago. The brokerage fears there will be regulatory issues ahead. Its results for Q2 were less brilliant than those for Q1 which hurt the share price.

The situation by country of SAN's business was very variable with trouble in Brazil. SAN booked losses in the USA (excluding Puerto Rico) and Mexico where it had expanded. It lost 9% in the quarter in the US. It lost 1% in the Q2 in Mexico and 6.1% there in H1. On the other hand, its older business in Britain was highly profitable with income hitting euros 1.24mn in Q2, up 7.6%, and 1.1 mn in the half, up 21.5%. SAN stock is off 2.41%.

*Lazard the manager is up 1.55%,(LAZ) while its fund we own, Lazard Global Total Return & Income Fund, LGI, was up 0.84% at the opening but now is down 0.095.

*Gold-miner Kirkland Lake is up 0.5%. KL.

Backdoors

*Dutch Prosus PROSY rose 4.5% today while Naspers NPSNY of South Africa rose 5.51%. Both are viewed as backdoor plays on Tencent. Tencent suspended registering people for WeChat under Chinese pressure.

*However despite Q rising our Swedish Investor A/B has not budged. It owns a chunk of Q but trades little outside Sweden. IVSBF.

Energy

*NIO recouped some of its recent losses, up 5.34% at the opening and 4.97% now.

*Royal Dutch Shell B's consensus target price was upped to $38.25 from $38.15. RDS-B.

*Cameco, CCJ, opened up 6% but then fell back to rise only 4.2%.

*Canadian Solar is up 3.41% because CSIQ is becoming less Chinese.

*Plug Power, PLUG, rose 4,12%.

*Schlumberger Ltd is up. SLB.

*UUUU, Energy Fuels, gained 7.14% on a new negativism about China, so its Utah-Europe rare earths operations will get backing.

*Hoegh, HMLP, fell 10.52% today. We sold over its decision to give its Norwegian parent the right to also sell LNG ship charters. Now it has slashed its dividend. We got out in good time.

*Coupang gained 2.34% on the two Koreas resuming telephone conversations by their rulers. CPNG.

*Mercado Libre, MELI, rose 2.225%. Both sell and finance goods on-line.

*Taiwan Semiconductor rose 1.525% on the plan to build more western plants to ease the shortage of chips even if they cost more. TSEM.

*Tower Semiconductor of the US and Israeli rose 1.14% on the chip shortage.

*Ute Veolia VEOEY of France is up 1.5%. German ute Eon-SE, EONGY, is up 0.81%.