Healthcare Business Report: Pfizer’s SEC Inquiry, Exact Science’s Potential
The Security and Exchange Commission is looking deeply into Pfizer’s (NYSE:PFE) aggressive tax-avoidance scheme, and has sent the firm a letter asking how it could earn record profit abroad with domestic losses, while generating 40 percent of its sales in the United States. It seems the trick is to put its cash in low-tax jurisdictions.
Exact Sciences Corporation (NASDAQ:EXAS) shares could go up if its test that targets early detection of colon cancer really works, says Barron’s. Trial results are expected early in 2013, and if favorable, the test could be allowed to be sold in 2014. The firm’s annual revenue might exceed $500 million or even $1 billion by the end of this decade, if the test gains wide acceptance. But first things first.
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Savient Pharmaceuticals (NASDAQ:SVNT) sees its price target raised by William Blair, after the latter hosted an investor meeting with the firm’s management in New York. Blair points to Krystexxa price increase assumptions for the elevated target, and maintains its Outperform.
Shares of Questcor Pharmaceuticals (NASDAQ:QCOR) move up nicely on the day after SunTrust and Lazard responded positively to a UnitedHealth/Oxford policy update letter concerning Acthar gel coverage. SunTrust contends that the update should reassure investors Acthar has value in treating nephrology and MS, while Lazard claims that it’s positive given investor fears after Aetna’s move to limit coverage.