Specialty drugmaker Mallinckrodt (MNK) offered fiscal 2016 guidance Tuesday following the sale of one of its imaging units, with revenue growth solid and EPS on the light side. The stock briefly rallied before being dragged down in another drug-stock sell-off. Mallinckrodt said that in the fiscal year ending Sept. 30 it expects to make $7.70 to $8.20 a share, bracketing analysts’ consensus of $8.00 but with the midpoint a bit below, according to
Biotechs, generic-drug makers and ethical-drug makers are some of the highest-ranked industry groups among the 197 that IBD tracks, and with recent view-topping earnings reports, FDA approvals and strategic divestments, they’re proving their strength. Five hot drug stocks lead IBD’s Screen Of The Day, Big Cap Leaders: Gilead Sciences (GILD), Jazz Pharmaceuticals (JAZZ), Allergan (AGN), Regeneron Pharmaceuticals (REGN) and Mallinckrodt (MNK).
The recent flurry of deal-making in the drug sector has put the spotlight on other top-rated drugmakers that have grown with the help of savvy mergers and acquisitions. In just the past week, AbbVie (ABBV) agreed to buy Pharmacyclics (PCYC) for $21 billion, beating out Johnson & Johnson (JNJ), and Mallinckrodt (MNK) announced a $2.3 billion deal to acquire privately held Ikaria. The latest IBD 50 includes five drugmakers that are growing quickly