Gilead Sciences, Inc. (NASDAQ:GILD) is falling over 2% following a jury decision. Last night, a jury ruled in favor of Merck in its patent dispute with Gilead regarding the latter’s Hep C drugs, Harvoni and Sovaldi. Merck sued Gilead claiming that Pharmasset, a company Gilead bought in 2011, illegally used Merck’s patents to manufacture sofosbuvir, the active ingredient of Hep C drugs. Merck is seeking billions of dollars in damages as well as royalties from sales, which will be decided in the next phase of the case.
Analyst Brian Skorney of Robert W Baird commented on the verdict, reiterating an Outperform rating and $135 price target. He states, “However, we believe any damages/royalties are likely to be far below the 10% royalty Merck is seeking and believe Gilead stands a good chance of overturning the verdict on appeal based on a number of factors.” He continued, “Although we cannot discount a material impact completely, we believe the probability remains low.”
According to TipRanks’ statistics, out of the 18 analysts who have rated the company in the past 3 months, 15 gave a Buy rating while 3 remain on the sidelines. The average 12-month price target for the stock is $116.07, marking a 24% upside from where shares last closed.
Nike Inc (NYSE:NKE) is falling over 5% in pre-market trading after the company released Q3:16 earnings yesterday after market close. The company posted revenues of $8.03 billion, compared to estimates of $8.2 billion, and earnings of $0.55 per share, surpassing estimates of $0.49 per share. The company also posted double-digit sales growth in the U.S. and abroad.
However, investors were more focused on the negative aspects of the report, such as missed future orders growth expectations, excess inventory, a lack of information on its declining core basketball business. Specifically, weaker than expected EPS guidance worries investors coming into the Olympic games when demand for Nike products is usually higher.
Following earnings, Sam Poser of Sterne Agee weighed in on the stock, reiterating a Buy rating and $75 price target. He states, “The Nike business remains very healthy. Reported revenue missed expectations due to a larger FX impact than anticipated. The inventory levels in North America will be normalized by the end of FY16. Initial FY17 guidance is a first look and is in line with Nike’s 5-year plan. The guidance is likely a base case scenario, and should increase as time proceeds. The product and innovation pipeline remains incredibly robust. FX-neutral future orders increased 17% which will likely pave the way for revenue and EPS acceleration into the European Championships & the Rio Olympics.”
According to TipRanks’ statistics, all 13 analysts who have rated the company in the past 3 months are bullish. The average 12-month price target $74.58, marking a 15% upside from where shares last closed.
Sequenom, Inc. (NASDAQ:SQNM) is up 6 % in pre-market trading after the company announced an agreement with Anthem Blue Cross and Blue Shield Health Plans for the states of Connecticut, Maine, and New Hampshire. The agreements provide pregnant women in-network coverage for Sequenom’s noninvasive prenatal tests. President and CEO of Sequenom Dirk van den Boom stated, “Our commitment to women’s health means doing all we can to ensure affordable access to our testing services. In keeping with this commitment, we continue to gain in-network status with the nation’s leading health plans and are encouraged by increasing payor support of NIPT for average-risk pregnancies.”
According to TipRanks’, both of the analysts who have rated the company in the past 3 months remain on the sidelines. The average 12-month price target for the stock is $2.10, marking a 29% upside from where shares last closed.