(Bloomberg) — Qualcomm Inc. gave a strong sales forecast for the current quarter, signaling that fifth generation mobile phone services are taking off. The chipmaker also announced a new licensing deal with China’s Huawei Technologies Co., sending shares up more than 12% in extended trading.Revenue excluding certain items will be $5.5 billion to $6.3 billion in the period ending in September, the San Diego-based company said Wednesday in a statement. Analysts, on average, estimated $5.77 billion, according to data compiled by Bloomberg. Including back payments from Huawei, sales will be $7.3 billion to $8.1 billion, the company said. Profit, excluding some items, will be $1.05 to $1.25 cents a share.The smartphone industry, which has suffered declining unit shipments since 2016, is pinning its hopes for a rebound on 5G, which will bring faster data speeds for consumers and add connections and services to currently stand-alone electronics. Investors are looking at Qualcomm, whose chips are the main component in smartphones, for assurances that major markets are ready to build out 5G networks as the world economy emerges from the coronavirus pandemic.“The recovery that we’d forecast from Covid in the June quarter was stronger than we’d expected primarily on the strength of the developed world and China,” Chief Executive Officer Steve Mollenkopf said in a telephone interview. “And now we’re heading into the second inflection point which is more global launches of 5G.”Shares jumped to a high of $106.50 in extended trading after closing at $93.03 in New York. Qualcomm’s stock had gained 5.4% this year, trailing a general rally by semiconductor companies.In the fiscal third quarter, Qualcomm said adjusted revenue was little changed from a year earlier at $4.89 billion. Analysts, on average, projected $4.8 billion. Net income was $845 million, or 74 cents a share. Excluding certain items, profit was 86 cents, compared with Wall Street’s average estimate of 70 cents.Qualcomm provides the modems and processors that let handsets connect to networks and turn the data they receive into the smartphone features consumers have come to depend on. The company has said it’s the first to field 5G parts and aims to gain back market share that was eroded as the previous 4G network technology matured and its customers began to look elsewhere.The chipmaker has repaired a once-broken relationship with Apple Inc. and will be returning to a role in the iPhone models debuting later this year. The company, however, has lost share in China as Huawei has focused on its home market and built devices with its own silicon.The delay of the launch of one “5G flagship phone” will cause a “partial impact” on revenue in the current period, Qualcomm said. Bloomberg has reported that the next iPhone will likely debut later in the year than usual.Qualcomm is unique in the chip industry because it gets the bulk of its profit from licensing patents that cover the fundamentals of modern phone systems. The company charges a percentage of the selling price of each handset, payable by phone makers regardless of whether they use its chips.The reach of its intellectual property and the profits they generate has attracted legal and regulatory challenges around the world. Most have been settled and with the “long-term” agreement reached this month with Huawei, Qualcomm said it has signed up all major phone makers to license its patents.It is still seeking to overturn a sweeping U.S. antitrust decision against the company.(Updates with CEO comments in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Eastman Kodak Company (NYSE: KODK) shares are up another 300% on Wednesday and are now up 1,490% since last Friday on news that the company is once again pivoting its business, this time to producing generic drug ingredients.The rally was fueled in part by President Donald Trump mentioning the company by name on Tuesday evening, noting that the government is funding Kodak with a $765 million loan under the Defense Production Act.Chairman's Stock Purchase: While the stock's reaction to the news is understandable, its 25% gain on Monday ahead of the public announcement has raised some eyebrows on Wall Street. Kodak Chairman Jim Continenza has also taken some head for buying 46,737 shares of Kodak stock on June 23 at an average price of $2.22.Roughly a month later, that $103,575 investment is now worth more than $1.5 million."We're here to make continued KSMs and APIs and help fight the pharmaceutical blockage in the U.S. and the lack of supply. So we're really here for the right reasons, and I don't speculate on the stock price," Continenza told Fox Business on Wednesday morning.Follows A Pattern: Continenza's June purchase was certainly well-timed, but neither he nor any other Kodak insider has disclosed purchases of stock since Monday. In addition, Continenza has regularly purchased shares of Kodak since August of last year. After buying 100,000 shares in August 2019, Continenza bought 53,263 shares in November and 50,000 shares in March.The June purchase was seemingly neither unusually large nor unusually timed based on this pattern.See Also: Why You Should Pay Attention To Insider TransactionsThe Plot Thickens: Continenza's lack of direct involvement doesn't dismiss Monday's huge move on heavy volume ahead of the news.Rochester local CBS news affiliate WROC-TV reported a story with the headline "Kodak, US Government To Unveil A New Manufacturing Initiative In Response To COVID-19 Pandemic" on Monday, July 27 at 11:56 a.m. ET, according to a cached version of the story. The original story has been taken down.The official press release addressing the news was issued on Tuesday.Pivot To Drugs: "[W]hen the pandemic hit — we — what can we do? We started making hand sanitizer," Continenza said on Fox Business. "We started making face shields, and then we started doing printed circuit board for ventilators, and that kind of got us within the context of how can we help with this pandemic."And we were working another partner who was working on this with the government and we were just there making them for this particular partner; and that kind of got the introduction. Meanwhile the government was looking at who can make these inside of Dr. Navarro's group and Kodak was on their list. So the two things kind of met and married."Benzinga's Take: Regardless of whether or not company management profited off of the leak, it''s clear this information made it out to somebody on Monday and triggered heavy buying activity in the stock.Traders who got in early on the big move have made a killing on Kodak this week, but the company's questionable moves from cameras to blockchain technology to generic drug ingredients in a matter of years make it a risky bet at this point up nearly 1,500% in three days.See more from Benzinga(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Which stocks have been the stars of 2020? Biotechs. Amid the onset of the global health crisis, companies advancing COVID-19 vaccines, treatments and testing kits have seen their shares take off rapidly on an upward trajectory. That said, Wall Street focus has locked in on the space for a different reason, namely merger & acquisition (M&A) activity.Sure, against the backdrop of the pandemic and the resulting economic downturn, some names have opted to put a temporary hold on deal activity given the uncertainty that remains. That’s not to say deals aren’t being made. Based on data from Refinitiv, in the first half of 2020, there have been 20,664 mergers announced globally, totaling $1.2 trillion as of June 30.With deals still being inked, the Street’s pros argue that there’s an opportunity for investors, as buyouts represent one of the fastest ways to see returns. Why? If a particular name is snapped up by another at a premium, the former can see its shares notch a percentage gain that’s close to that of the premium.Bearing this in mind, we used TipRanks’ database to take a closer look at two healthcare stocks that reflect strong M&A targets, according to Wall Street analysts.Cellectar Biosciences (CLRB)Using its patented phospholipid drug conjugates (PDCs) delivery platform to specifically target cancer cells, Cellectar Biosciences wants to improve the lives of patients battling the deadly disease. Should its CLR-131 candidate ultimately gain approval, some members of the Street believe it would make a great buyout target.Writing for Oppenheimer, 5-star analyst Kevin DeGeeter tells clients that several factors are driving his bullish thesis. First and foremost, CLR-131 could get the FDA’s stamp of approval by the end of 2022 for lymphoplasmacytic lymphoma (LPL). To back up this prediction, the analyst stated, “There are no approved therapies for r/r LPL. Based on 100% response rate in four patients, including one CR, we expect management to advance CLR-131 into an abbreviated registration study by the end of 2020.” On top of this, DeGeeter cites the therapy’s differentiated AE profile and competitive objective response rate (ORR) as suggesting that material off-label use could be a possibility. “While the market is highly competitive with potential for BCMA compounds to change SOC in early lines of therapy, clinical outcomes for triple refractory patients that account for about 15% of all cases remain poor with response rates of ~30% and PFS of four months,” he explained.To this end, assuming a 60%/40% revenue split for the LPL and multiple myeloma markets, CLR-131 could generate peak sales of $290 million. If that wasn’t enough, development in rare pediatric cancers, including the potential for a priority review voucher, could drive even more upside. Speaking to the possibility of M&A, DeGeeter commented, “We view M&A following CLR-131's potential FDA approval as a likely outcome. Recent consolidation in the radiopharmaceutical market includes acquisitions of Advanced Accelerator Applications for $3.9 billion and of Endocyte for $2.1 billion (both in 2018). Given complex supply chains for radiopharmaceuticals, larger companies enjoy favorable economies of scale on distribution and cost of goods, in our view.”To this end, DeGeeter rates CLRB an Outperform (i.e. Buy) rating, along with a $5 price target. This figure implies shares could soar 283% in the next year. (To watch DeGeeter’s track record, click here)The rest of the Street agrees. Only Buy ratings, 3, in fact, have been issued in the last three months, which add up to a Strong Buy analyst consensus. At $3.67, the average price target puts the upside potential at 181%. (See CLRB stock analysis on TipRanks)Immunomedics (IMMU)With the goal of providing patients with better and more effective treatments, Immunomedics develops immunotherapeutics that target cancer, autoimmune and other serious diseases. Following a recent pipeline win that de-risked one of its assets, M&A discussions could be on the horizon.5-star analyst Michael Schmidt, of Guggenheim, points to the recent FDA approval of Trodelvy in triple-negative breast cancer (TNBC) as reflecting a “major de-risking pipeline event,” and as such, he thinks “IMMU could potentially be perceived as a theoretical acquisition candidate by investors.”Expounding on this, Schmidt stated, “In addition, we think IMMU is well-positioned as a potential acquisition candidate based on our analysis of 69 new chemical entities and new biologics US-approved in the past 12 months given that it ranks 3, only after Vertex Pharmaceuticals’ Trikafta and Seattle Genetics’ Padcev in terms of product revenue potential, while being the smallest among these three companies.”After assessing the clinical pipelines and commercial presence of 19 large-cap biopharmaceutical companies for potential synergies and strategic fit with IMMU, Schmidt argues several have significant overlap with Trodelvy’s potential target markets. Scoring each name based on their late-stage clinical pipeline in breast cancer, bladder cancer and lung cancers as well as their existing commercial footprint in those indications and revenue growth rates, the analyst concluded Pfizer, Merck, Rogers and Eli Lilly are the most likely to acquire IMMU.How much would IMMU actually be worth in an M&A scenario? $50-$60 per share, in Schmidt’s opinion. That being said, even if IMMU isn’t ultimately acquired, the analyst still likes what he’s seeing.“We currently value IMMU at $41/share as a standalone company, based on probability-of-success (PoS) adjusted peak U.S. sales of Trodelvy of $790 million, $354 million, and $1,465 million, in 3rd-line TNBC, 2nd/3rd-line bladder cancer, and 4th-line HER2-/HR+ breast cancer, and 100%, 50%, and 80% PoS, respectively… Other signal finding studies are exploring opportunities in multiple tumor types, including NSCLC, endometrial, earlier lines of metastatic breast cancer and bladder cancer, as well as early stage breast cancer, which represent potential sources of upside for the stock,” he explained.In line with his optimistic take, Schmidt stayed with the bulls. In addition to reiterating a Buy recommendation, he left the price target at $52, which implies nearly 23% upside from current levels. (To watch Schmidt’s track record, click here) The bulls represent the majority on this one. Out of 9 total reviews published in the last three months, 8 analysts rated the stock a Buy, while 2 said Hold. So, IMMU gets a Strong Buy consensus rating. The $46.44 average price target suggests shares could rise nearly 10% in the next twelve months. (See IMMU stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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Every investor in Lumber Liquidators Holdings, Inc. (NYSE:LL) should be aware of the most powerful shareholder groups…

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Amazon founder and CEO Jeff Bezos testifies before the House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law.

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German lawmakers on Wednesday questioned Finance Minister Olaf Scholz over his failure to detect and prevent the Wirecard [WDIG.DE] accounting scandal, one of the biggest in post-war history. Payment services company Wirecard filed for insolvency last month after admitting that 1.9 billion euros ($2.2 billion) supposedly held in trustee accounts by overseas partners probably did not exist. Prosecutors have arrested former Wirecard Chief Executive Markus Braun and two other former executives on suspicion of orchestrating a years-long criminal racket to inflate revenue and balances to hide losses dating back at least to 2015.

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(Bloomberg Opinion) — Kodak, the once-iconic photo company that’s been languishing for years, surprised the world this week by announcing a pivot into the pharmaceuticals business with a $765 million head start from the U.S. government. Somehow, that was enough to send the stock soaring more than 1,000% and add more than $1 billion to the company’s market value. Really? Let’s discuss. The Defense Production Act loan, announced Tuesday, is part of a Trump administration effort to bring the manufacture of drug ingredients back to U.S. shores to reduce dependence on other countries and ensure consistent supply. It's a reasonable if challenging policy goal. The loan and new business line for Eastman Kodak Co. isn't, however, anything close to a justification for its massive share-price gains — whatever day traders and Robinhood investors may say.Kodak is attempting to enter a low-margin commodity market with no particular advantage outside of the current administration's industrial policy. Unless the government money spigot keeps flowing, it's hard to imagine the company ever living up to its lofty valuation.Many of the world's pharmaceutical ingredients come from China or India. This has become a concern in recent years because of quality-control issues and the recent specter of pandemic-related shortages. However, shifting the supply chain back to the U.S. isn't the work of a few loans or a few years.Re-shoring sounds appealing, but it's challenging to successfully break into a commodity business from a standing start even with a boost from the government. And drug ingredients made in America by an inexperienced new entrant are likely to be more expensive than those available abroad in the absence of extreme and rare supply shocks. Many large generic drugmakers that also make and use drug ingredients have been facing significant pricing pressure and slashing costs for years; few are likely to consistently buy American from a new source unless the government forces them. What’s more, higher ingredient costs would potentially filter through to higher drug prices, which is not exactly a popular idea.Part of the enthusiasm may stem from the fact that Kodak reportedly aims to make drug ingredients used in the fight against Covid-19, including hydroxychloroquine, a medicine that President Donald Trump continues to tout as a possible treatment even though it has repeatedly failed to show a benefit in clinical trials. To turn that into an investment thesis for Kodak, you have to believe that the medicine will finally succeed in a well-controlled trial, or that off-label prescriptions will be common. You have to think that the company, which has been out of the drug business for decades, will be able to retrofit factories and significantly ramp up production before vaccines or more effective treatments emerge. You have to believe that the company can compete on cost giants that have been in this business for decades or that Congress will pass a mandate handing it a market.  It's unclear if anyone's buying Kodak because they truly believe in the long-term potential of this project, as opposed to just day trading. Either way, good luck. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Inovio Pharmaceuticals Inc (NASDAQ: INO) shares were volatile Wednesday after the company announced Orphan Drug Designation for one of its pipeline drugs.What Happened: The Plymouth, Pennsylvania-based company said the FDA granted ODD for INO-3107, a DNA medicine that's being evaluated in a Phase 1/2 trial for treatment of recurrent respiratory papillomatosis, or RRP.RRP is a rare disease caused by human papillomavirus types 6 and 11 infections that causes non-cancerous tumor growths leading to life-threatening airway obstructions, the company said.Why It's Important: The ODD from the FDA qualifies INO-3107 for various development incentives, including a tax credit on expenditures incurred in clinical studies; a waiver of the new drug application fee; a research grant awarded by the FDA; and most importantly, seven years of U.S. market exclusivity upon approval for the treatment of RRP, Inovio said."Receiving FDA's orphan drug designation for INO-3107 is an important milestone in the development of Inovio's DNA medicine for this rare disease and clearly underscores the importance of addressing the unmet medical need for this debilitating condition," Ami Shah Brown, Inovio's senior vice president fo regulatory affairs, said in a statement.Inovio is developing a DNA vaccine for SARS-CoV2, the virus that causes COVID-19. The vaccine program is embroiled in litigation with its CDMO partner, as well as a shareholder lawsuit accusing the company of stock pumping.The company is scheduled to report second-quarter results Monday, Aug. 10.INO Price Action: At last check, Inovio shares were sliding 4.23% to $19.91.Related Links: The Week Ahead In Biotech: Spotlight On GW Pharma, Ultragenyx FDA Decisions, Pfizer Earnings Inovio Analyst Downgrades COVID-19 Vaccine Developer, Says Risk Higher After Rally See more from Benzinga * Inovio Subcontractor Hits Back With Lawsuit Against Coronavirus Vaccine Developer * The Week Ahead In Biotech: Endo, Eagle Pharma FDA Decisions, ObsEva Late-Stage Readouts In Focus(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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