For Immediate Release
Chicago, IL – January 13, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: SUPERVALU Inc (SVU), Target (TGT), Novartis (NVS), Vanda Pharmaceuticals (VNDA) and Eli Lilly (LLY).
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Here are highlights from Tuesday’s Analyst Blog:
SUPERVALU Beats Zacks Estimate
SUPERVALU Inc (SVU) reported results for the third quarter of fiscal 2010 with earnings of 51 cents per share. Earnings were above the Zacks Consensus Estimate of 48 cents, but were 17.7% below the prior-year quarter.
Net sales for the quarter declined 9.4% year-over-year to $9.2 billion primarily due to declines in the Retail Food segment and Supply Chain Services segment. Net sales in the Retail Food segment were down 9.4% to $7.1 billion due to a 6.5% negative impact from the same-store sales, the exit from the Salt Lake City Retail market and previously announced store closures.
Net sales in the Supply Chain services segment declined 8.7% year-over-year to $2.1 billion. The decline was due to the impact of the previously announced plans by Target (TGT) to transition some of the volume to self-distribution.
Total retail square footage at the end of the third quarter was approximately $67 million, reflecting a 5.3% decline from the third quarter of fiscal 2009.
Gross margin for the quarter was almost flat year-over-year, declining marginally by 7 basis points (bps) to 22.3%, as benefits from pricing and promotional activities were offset by a lower LIFO (Last-In, First-Out) charge.
The company reported an operating profit of $308 million as compared to an operating loss of $2.9 million in the prior-year quarter.
Competitive Schizophrenia Market
Recently, Novartis (NVS) launched Fanapt (iloperidone) in the U.S. Its twice daily tablets are for the treatment of schizophrenia in adults. Fanapt received approval from the US Food and Drug Administration (FDA) in May 2009.
Clinical trials have shown that Fanapt improved symptoms in schizophrenic patients compared to a placebo therapy. The most common adverse drug reactions were dizziness, dry mouth, fatigue, nasal congestion, orthostatic hypotension, somnolence, tachycardia and weight gain.
Under an agreement with Vanda Pharmaceuticals (VNDA), Novartis acquired exclusive commercialization rights to Fanapt in the U.S. and Canada in October 2009. In addition, Novartis has the rights to develop and commercialize an injectable form of the drug for these markets. Vanda will receive an upfront payment of $200 million as well as the potential to receive milestone payments of up to $265 million. Vanda also will receive royalties on the US and Canadian net sales of Fanapt.
In December 2009, Eli Lilly (LLY) received FDA approval for Zyprexa Relprevv (olanzapine), the new extended-release injectable version of its blockbuster drug Zyprexa for the treatment of schizophrenia in adults. With respect to treatment option, the approval is significant as the Zyprexa Relprevv injection maintains therapeutic drug levels for up to four weeks, when the disease relapses following irregular intake of prescribed medications. Long-acting treatments play a beneficial role since non-adherence to medication is a big problem for the patients.
Schizophrenia is a chronic, severe and disabling mental disorder affecting 2.4 million Americans or about 1.1% of the adult population in the U.S. While there is no cure for the disease, proper medication can keep it in check. As per estimates, the global schizophrenia market was valued at $15.9 billion in 2008 which is expected to reach $17.2 billion by 2015.
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