For Immediate Release
Chicago, IL – September 18, 2009 – Zacks Equity Research highlights ON Semiconductor (ONNN) as the Bull of the Day and Developers Diversified (DDR) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alcon Inc.(ACL), AstraZeneca (AZN) and Allergan, Inc.(AGN).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2676
Here is a synopsis of all five stocks:
ON Semiconductor (ONNN) is an OEM of primarily analog semiconductors used within a diverse set of end markets. June quarter results beat consensus expectations, with management guiding for stronger results in the September quarter.
Recent acquisitions, a broad product portfolio, a well diversified business across end markets and geographies, restructuring actions and debt reduction initiatives are other positive factors.
While competition is strong as ever and restrictive covenants and some residual integration risk remain, we believe the positives far outweigh these negative factors. Consequently, we are reiterating our OUTPERFORM rating on the stock.
Developers Diversified (DDR) has a relatively high leverage compared to its peers due to acquisitions over the past several years. Developers Diversified is raising cash through asset sales, debt, and by selling 30 million shares and additional warrants to the Otto family, a shopping center developer in Germany.
The equity sale is dilutive and the long-term sustainability of the company is under doubt. Our recommendation for the company is Underperform as we anticipate it to perform well below the broader market. However, if Developers Diversified can tide over the current storm, the share price can rise.
Latest Posts on the Zacks Analyst Blog:
Alcon Expands Pipeline
Earlier this week, Alcon Inc.(ACL) signed a definitive agreement for the acquisition of Swiss biotech company ESBATech AG. Alcon will pay $150 million in cash at closing. Besides this, Alcon may pay up to $439 million on the achievement of future research and development milestones.
With this acquisition, Alcon will gain access to ESBATech’s proprietary antibody fragment technology, which is used for the development of compounds for the treatment of eye diseases like age-related macular degeneration, diabetic macular edema, glaucoma, dry eye and uveitis.
ESBATech has several stable and soluble single-chain antibody fragments in development. ESBATech’s lead antibody fragment, ESBA105, is a recombinant humanized scFv antibody fragment directed against human tumor necrosis factor-alpha (TNFα). ESBA105 is being developed for a number of therapeutic indications and is currently in a phase IIa study for uveitis and a phase Ia/IIb study for cataract surgery.
We view this acquisition as a positive as it reinforces Alcon’s commitment towards building its pipeline through in-licensing deals and acquisitions. The transaction should allow Alcon to strengthen its ophthalmic product pipeline.
The ESBATech acquisition is the latest in a series of deals entered into by Alcon to build its pipeline. In July 2009, Alcon entered into a five-year collaborative research agreement with AstraZeneca (AZN) for the exclusive ophthalmic discovery and potential development rights to AstraZeneca’s compound library.
Alcon also entered into a research and licensing agreement with PhiloGene Inc. for rights to a vascular endothelial growth factor (VEGF) protein, which will be developed for the treatment of wet age related macular degeneration and diabetic macular edema.
Alcon’s primary competitor in the ophthalmology market is Allergan, Inc.(AGN).
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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