In this article, we discuss the 5 pharma companies making treatment for opioid overdose. If you want to read our detailed analysis of these stocks, go directly to the 10 Pharma Companies Making Treatment for Opioid Overdose.
5. Novartis AG (NYSE: NVS)
Number of Hedge Fund Holders: 19
Novartis AG (NYSE: NVS) is a Switzerland-based biotechnology and pharmaceutical firm founded in 1996. It is placed fifth on our list of 10 pharma companies making treatment for opioid overdose. In 2019, Sandoz, a Novartis subsidiary, and Pear Therapeutics announced that they would begin selling reSET-O(TM), a drug developed by both firms for treatment of patients with Opioid Use Disorder. The companies had begun working on the drug in late 2018 and obtained approval for it from authorities in the US the next year.
In earnings results for the second quarter, posted on July 21, Novartis AG (NYSE: NVS) reported earnings per share of $1.66, beating market estimates by $0.17. The revenue over the period was more than $12.9 billion, up over 14% year-on-year.
At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Novartis AG (NYSE: NVS), down from 23 the preceding quarter worth $1.6 billion.
In its Q4 2020 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Novartis AG (NYSE: NVS) was one of them. Here is what the fund said:
“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”
4. Teva Pharmaceutical Industries Limited (NYSE: TEVA)
Number of Hedge Fund Holders: 24
Teva Pharmaceutical Industries Limited (NYSE: TEVA) is a pharmaceutical company based in Israel. It is placed fourth on our list of 10 pharma companies making treatment for opioid overdose. In earnings results for the second quarter, posted on July 28, the firm reported earnings per share of $0.59, in line with estimates. The revenue over the period was close to $4 billion, up close to 1% year-on-year. In 2019, while settling an opioid-related case, the firm offered to provide $23 billion worth of opioid addiction treatment drugs.
On April 6, investment advisory RBC Capital maintained a Sector Perform rating on Teva Pharmaceutical Industries Limited (NYSE: TEVA) stock with a price target of $11. Daniel Busby, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Teva Pharmaceutical Industries Limited (NYSE: TEVA) with 42 million shares worth more than $493 million.
3. West Pharmaceutical Services, Inc. (NYSE: WST)
Number of Hedge Fund Holders: 26
West Pharmaceutical Services, Inc. (NYSE: WST) is a Pennsylvania-based company that makes and sells injectable drugs and other healthcare products. It is ranked third on our list of 10 pharma companies making treatment for opioid overdose. The firm sells non-opioid analgesics like Diclofenac ophthalmic. The company has a market cap of over $30 billion and posted more than $2 billion in revenue last year. It was founded in 1923 and employs over 9,000 people across the world.
In earnings results for the second quarter, posted on July 29, West Pharmaceutical Services, Inc. (NYSE: WST) reported earnings per share of $2.46, beating predictions by $0.72. The revenue over the period was $723 million, up 37% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in West Pharmaceutical Services, Inc. (NYSE: WST) with 378,363 shares worth more than $106 million.
In its Q3 2020 investor letter, Baron Asset Fund, an asset management firm, highlighted a few stocks and West Pharmaceutical Services, Inc. (NYSE: WST) was one of them. Here is what the fund said:
“West Pharmaceutical Services, Inc. manufactures components and systems for the packaging and delivery of injectable drugs. Shares rose on strong second quarter financial results and raised 2020 guidance. Business is benefiting from strong demand for West’s products and services, as the large majority of newly approved biologic drugs utilize the company’s packaging. We think demand should further accelerate as COVID-19 vaccine manufacturers come to market. We continue to believe West has a promising long-term growth outlook and a secure competitive position.”
2. Alkermes plc (NASDAQ: ALKS)
Number of Hedge Fund Holders: 31
Alkermes plc (NASDAQ: ALKS) is placed second on our list of 10 pharma companies making treatment for opioid overdose. The company operates as a biopharma firm focusing on the development of drugs for various therapeutic needs. It is headquartered in Ireland. On June 1, the company announced that it obtained regulatory approval for Lybalvi, a drug marketed by the firm for the treatment of schizophrenia and bipolar I disorder. The drug is made from samidorphan, a newly developed opioid antagonist.
On August 3, investment advisory Mizuho maintained a Buy rating on Alkermes plc (NASDAQ: ALKS) stock with a price target of $33, noting that there for additional upside as a new drug by the firm proceeded through registration processes.
At the end of the first quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $595 million in Alkermes plc (NASDAQ: ALKS), up from 30 the preceding quarter worth $678 million.
1. Pfizer Inc. (NYSE: PFE)
Number of Hedge Fund Holders: 65
Pfizer Inc. (NYSE: PFE) is ranked first on our list of 10 pharma companies making treatment for opioid overdose. The company makes and sells pharmaceutical products and is based in New York. Amid reports of an increase in drug overdose deaths in the US due to the COVID-19 lockdowns, the company pledged in April this year to donate more than 1 million doses of naloxone, a drug developed by firm that saves lives by reversing opioid overdoses, to California-based non-profit group Direct Relief.
On July 30, investment advisory Mizuho kept a Neutral rating on Pfizer Inc. (NYSE: PFE) stock but raised the price target to $43 from $42, noting that the firm delivered strong earnings in the second quarter that easily beat market expectations.
At the end of the first quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Pfizer Inc. (NYSE: PFE), up from 63 in the preceding quarter worth $1.8 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE: PFE) was one of them. Here is what the fund said:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
You can also take a peek at 10 Best Medical Stocks Under $10 and 10 Best Stocks to Buy According to Senvest Management.
