E Nuclear Winner

Having lived in France for many years while dependent on power generated in its nuclear plants along the River Loire, I am an authorized atom supporter. France has to spend money to upgrade these venerable plants, but there now seems to be a push to do so even if it means building an atom power plant in western England which will probably have left the European Union before it comes on stream.

The era of no-atom power has come to an end also in the only country run by a physicist, Germany. Its supreme court has ruled that its ban on electricity companies using nuclear energy is unconstitutional and has forced the tax authorities to reimburse fines imposed on the power generating sector. Since Germany has a huge budget surplus this will not hurt its accounts—but it just may help the world become more green. While many people are terrified of atom power given the Chernobyl disaster, in fact far more people die annually because of filthy air from coal-burning plants than have ever died because of atom disasters, not just in Chernobyl in the former Soviet Union, but also at Three Mile Island in the US, and in Japan'sTepco meltdown.

PM Merkel in 2011 (despite knowing better) backed a law requiring that operators of nuclear plants pay for shutting them down and dealing with nuclear waste.

This will have important consequences on our portfolio. And on a new addition to it today. We have news from Canada, Colombia, Germany, Israel, Finland, Iceland, Denmark, Spain, Sweden, India, and Britain.

Healthcare

*A huge earnings surprise came from Danish Novo Nordisk.

It beat handily with H1 profits and issued a rosy outlook for the full year after operating profits rose 8% year on year to DKK 26.9 bn ($4.25 bn). This despite an expected US slowdown because of lower rebates for insulin.

Its sales rose 4% to DKK 57 bn, also beating consensus. For H2 it now expects a 1-3% rise in sales in constant currencies, up from earlier 0-2%.

“We are well on track to deliver on our targets for 2017 based on sales growth driven by our new, innovative products within diabetes and obesity care and a continued focus on cost control," said CEO Lars Fruergaard Jorgensen. "Although the formulary negotiations in the USA reflect the tough competitive environment, we remain confident that our long-term financial growth targets are achievable." NVO rose 5.3% in European trading and is up 8.7% so far on Wall St.

“It’s important to not only focus on price,” Jorgensen said in an interview with FiercePharma, a blog.

Novo sales grew 7% in the first half of the year, despite price declines. “If you have a strong portfolio of products you can still go out and drive volume,” he added. “You can prioritize products with a slightly higher clinical profile,” such as NOV’s newer basal insulin Tresiba.

Tresiba now commands 8.5% of the new insulin market, up from 5% at the beginning of 2017, according to the conference call. Moreover, execs expect to hit 10% of the market this year. This, moreover, despite an FDA delay on updating its label with new cardiovascular safety information.

*Today news that Mylan will delay its generic Copaxone for the rest of this year took up its maker, Teva, which again worked upward by over 2% before falling back into its funk as the market realized that generics overall are in trouble.

But it looks like GlaxoSmithKline got a real boost because Mylan also will not be doing a generic of the UK major's Advair. GSK.

Teva also indicated that it will sell its contractor generics production arm in Iceland, Medis, which it acquired with Activis generics a year ago. The buyer is allegedly Finnish. This is not the only spin-off planned by the Israeli firm. It will also flog off its women's health arm.

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