Q: Hi, Peter For info only, publish at will
Another reason Health Care was weak Monday, was the passing of the TPP (or Trans Pacific Patrnership), which according to The Hill, a Beltway newsletter which provides daily updates,
” Trade officials from 12 countries agreed Monday to shrink the length of time that pharmaceutical companies can receive monopoly rights for certain drugs, a provision that is already threatening to incite a Big pharma rebellion on Capitol Hill…Brand-name companies would receive up to eight years of monopoly rights for drugs known as biologics — a decrease from the current 12 years provided under U.S. law, according to officials involved. The final language of the deal has not yet been released.”
Q: Both Concordia and Valeant are down 8.5 and 10% respectively at the moment. Is this due to normal volatility or any consequence of the TPP deal? Would you consider either a bargain over the next three years and which one would you prefer?
Thank you.
Q: Hello Peter & Co,
A follow-up on my previous question regarding your ranking of my holdings CRH,CXR,GUD,PHM,PLI,RX and VRX; you ranked GUD,CXR and VRX as the best by a wide margin and that PLI is good but expensive; you did not comment on or ranked CRH, PHM and RX
Thanks,
Antoine
Q: Just wandering about the recent pullback in these two stocks do you think it's just collateral damage from Hilary's remarks or are the underlying stories still intact,would you consider this a buying opportunity at these levels thanks Greg.
Q: Hi, Valeant's share price took huge hit over past two weeks, after Hilary Clinton comments and Democrats' request for a subpoena for drug pricing. There are two drugs in question, where price increases were 225% and 550% appx. As per analysts covering the stock, even if price of these two drugs is reversed, it should impact the share price by about $8-$9. Except one major brokerage, no one has changed rating of the stock (Most have Buys). Although a few have adjusted price targets between $10-$15 but average is still about CAD$325. Last week stock traded as low as $204.50 and has now stabilized in $230-$240 range. Only a few weeks ago it traded as high as $347. Despite the near term headline risk (although it is not known if house committee will even accept the democrats request for a subpoena and US history of very limited success with drugs price control), is it reasonable to accumulate shares at these levels, in your view? Valeant still appears to be the only choice in large cap pharma sector in Canada (of course Concordia being the other)and I am wondering if there is an opportunity here. Thanks, as always for your valued comments.
Q: Hello Peter & Co,
10% of my portfolio is in that sector
CRH,CXR,GUD,PHM,PLI,RX and VRX
With the intent to shifting funds from what I perceive to be lower ranked to higher ranked ones, I would appreciate your input.
Thanks,
Antoine
Q: Hi- just thought my fellow subscribers who own Valeant might be interested in this article, which, in brief, states that Valeant is one of the greatest increasers of drug prices and may be affected by the Hilary Clinton furor.
http://www.zerohedge.com/news/2015-10-04/more-pain-biotechs-ahead-valeants-astronomical-price-increases-take-center-stage-pfi
I have owned JNJ for many years and it really has not performed up to my expectations.
Would you sell JNJ today and replace it with UnitedHealth Group (UNH)for a 5 year hold. I require something to stay in the drug/healthcare area of my portfolio.
Q: Nice bounce on news! I have a small weighting and am willing to add more on a pull back. Does this news really make a 20plus% difference from the day before?
Q: Could you please give an update on TRX in regards to the takeover by POZN. The sector is out of favour now but these two stocks are taking a beating. Could they walk away from this deal. Thanks
Q: Hello Peter & Co.
9% of my portfolio is in Health/Pharma and the above are my main holdings; I was ready to pull the plug on both of them early this week but I held steady.
If I did not own them and wanted to buy either one; which would you suggest I buy and why and when?
I appreciate the fact that you hold the line despite the treacherous movements of the market.
Thanks,
Antoine
Q: Yesterday,shortly before the market close,a reporter on BNN when commenting on Concordia's share issue stated "clearly this issue will have to be repriced" or words very close to this quote.My question is:Do you consider the above quote to be appropriate considering the attack to which this stock has been subjected?I can understand an analyst or a money manager making such a statement but for a BNN reporter it seems to me to be irresponsible.The statement seemed to have no effect on the stock price but not long after CXR reported that the issue was completed and the money was"in the bank".Publish at your discretion.I thank you for your continued guidance and advice. Don.
Q: Four days ago, when Concordia had dropped to $80 I wrote that if this keeps up this will be a $40 stock in a couple of weeks. It's now down another 16% on the day and hovering around $47. Fundamentals seem to be of no interest in this market, and at this rate it will be a $20 stock in a few days. Bearing in mind nothing about the underlying value of the company diminished does there come a point where someone decides to simply buy this out for a fraction of its actual value, or even take it private, screwing everyone who is holding on in hopes of its eventual recovery? Also in line with speculation, if Concordia backed out of its agreement to buy Amdipharm would that likely halt the stock's disintegration?
Q: A little perspective for all the Concordia owners: Since Sept 21, when they admitted they basically committed massive fraud, VW is down about 36 percent. In that same time, Concordia is down 50 percent. The market isn't always rational, or even sane.
Q: Hello Peter,
If one owns Concordia Healthcare and Valeant Pharma, is the best course of action to stay put? I hope it does not take shape as in the oil stocks sector. Once the sector took a hit, it just kept on declining and has not recovered? For some reason, I do not feel it is the same and both companies should recover after a few months of volatility. Can you please shed light on this? Thanks
Read Answer
Asked by umedali on September 29, 2015
Q: With the volatility happening in Healthcare stocks, can you recommend a Canadian ETF that covers the US Healthcare Sector? I think ZUH is one, what is your opinion on this ETF, are there better ones out there?
Q: Andrew McCreath on BNN this morning had some very negative comments on CXR's debt in relation to being forced to reprice its drugs. How do you view this potential problem?