Visualization of growth in the COVID-19 impacted quarters

The first and second quarter of 2020 were unusual in many ways. More than a third of S&P500 companies temporarily or permanently withdrew guidance for the full year due to uncertainty surrounding impacts from COVID-19 according to FactSet. This article seeks to visualize the growth in each of the two quarters by sector and industry. […]

Best selling and fastest growing drugs in the 2nd quarter of 2020

Best selling drugs Once more Humira® from AbbVie is the best selling drug of the quarter ($4,837M) despite headwinds in Europe from biosimilars Amgevita®, Amsparity®, Halimatoz®, Hefiya®, Hulio®, Hyrimoz®, Idacio® and Imraldi®. In the US Humira® will in 2023 lose market exclusivity to the biosimilars Amjevita®, Cyltezo®, Hyrimoz®, Hadlima®, Abrilada® and Hulio®. AbbVie upon acquisition […]

Novo Nordisk grows GLP-1 market share in Q2 in the US with Ozempic® and Rybelsus®

Novo Nordisk has reported their 2nd quarter results. Financials For the 2nd quarter sales were DKKm 30,006 (-0%), gross profit was DKKm 25,234 and operating income was DKKm 13,838 (+3%). In the US GLP1 for diabetes increased by 19%, whereas insulin decreased by 34%. CEO Lars Fruergaard Jørgensen “The U.S. sales decline was driven by […]

Sector sizes of the S&P 500 over time

Dot-com bubble The largest sectors and companies of the S&P 500 by market capitalization have changed over time. Prior to the dot-com bubble bursting in March 2000 the technology sector made up a third of the S&P 500 thanks to companies such as Microsoft, Cisco, Intel, Lucent Technologies, IBM, America Online and Oracle. 2007-2008 financial […]

Novo Nordisk mostly unaffected by COVID-19 in Q1

Novo Nordisk is with the exception of the postponement of new clinical trials mostly unaffected by COVID-19. Sales in Q1 were however positively affected by stock piling of insulin. Growth continues to be spearheaded by Ozempic®, whereas Victoza® and Levemir® in the US continue to lead the decline. Rybelsus® revenue totaled DKKb 229 in the […]

Kraft Heinz can pay down its $29B debt and maintain its $2B dividend

Organic net sales down 2% due to volume/mix declines in response to higher pricing in the US and to a lesser extent lower pricing in Canada Further impairments of goodwill (453 USDm) and intangible assets (224 USDm) Strategy presentation will be in early May and not in March. No guidance or outlook for 2020 has […]

AB InBev continues to deleverage and offers value

AB InBev ($BUD, $ABI.BR) issued a press release on their Q4 earnings on February 27th. The company has maintained its dividend while continuing to deleverage. Accounting for the proceeds expected to be received from the divestment of the Australian operations (while excluding the last 12 months EBITDA from the Australian operations), the net debt to […]

Hanesbrands debt reduced from 3.3 to 2.9 times EBITDA and share repurchase of $200M planned in early 2020, but shares remain undervalued

Record net cash from operations of $803 million for full year. Guidance for 2020 is $700-800M. Expectation of $200 million in share repurchases early in 2020. Debt repayments greater than $600 million in 2019 and year-end inventory 7% lower. Net debt reduced from 3.3 to 2.9 times adjusted EBITDA. Shares seems undervalued given low multiples, […]

Novo Nordisk poised to fire on all new GLP1 cylinders following the fourth quarter of 2019, but shares fairly valued

Anti-diabetic oral GLP1 drug Rybelsus® (semaglutide) received FDA approval on September 20th and 70%-80% of patients are not coming from other injectables. GLP1 drug segment is growing led by the weekly injectable anti-diabetic drug Ozempic® (semaglutide) approved for CV risk reduction in the US. Revenue in US diabetes segment is flat due to declining revenue […]

BorgWarner to Acquire Delphi Technologies in All-Stock Transaction to Strengthen Propulsion Systems Leadership

BorgWarner ($BWA) is to acquire Delphi Technologies ($DLPH) to strengthen its propulsion systems leadership. The all-stock transaction happens at a time, when both companies are trading at low multiples. $DLPH is up ~60%, whereas $BWA is down ~7%. Below is a summary of the segments of the two S&P500 companies and some of the powertrain […]