For Immediate Release
Chicago, IL – October 14, 2010 – Zacks Equity Research highlights: Shutterfly (SFLY) as the Bull of the Day and BioMarin Pharmaceutical Inc. (BMRN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eli Lilly (LLY), Amgen (AMGN) and Teva (TEVA).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.
Here is a synopsis of all five stocks:
Shutterfly‘s (SFLY) second quarter earnings were well ahead of the Zacks Consensus Estimate, driven primarily by higher revenues from the photo book. Increased usage of digital cameras combined with accessibility of high-speed Internet provides significant expansion potential for the company.
Product innovation, a focus on developing a successful commercial printing business, strategic partnerships with retailers and opportunistic acquisitions also bode well for the company. Although we find the ongoing economic weakness and rising unemployment hurting the company’s profitability, we believe margin will further expand in the coming quarters backed by technology leverage, lower material costs and labor efficiency.
Interface with social media and the approaching fourth quarter, which is a holiday season, will also act as key drivers of the stock, going forward. Hence, we upgrade the rating from Neutral to Outperform.
We are downgrading BioMarin Pharmaceutical Inc. (BMRN) to Underperform from Neutral based on the continuous disappointing performance of the company’s key product, Aldurazyme and the later-than- expected European launch of Firdapse for the treatment of a rare autoimmune disorder.
The later-than-expected European launch of the drug was primarily responsible for the company trimming its 2010 revenue outlook. Moreover, the early/mid-stage pipeline at BioMarin also concerns us.
We expect cash burn to increase since the company is investing heavily on developing its pipeline. These headwinds cause us to believe that there is little reason for investors to own the stock.
Latest Posts on the Zacks Analyst Blog:
Eli Lilly’s Alimta Disappoints
Eli Lilly’s (LLY) oncology pipeline suffered a setback recently with the company reporting disappointing results on Alimta from a phase III study. Data, presented at the annual meeting of the European Society for Medical Oncology (ESMO), showed that Alimta failed to achieve its primary endpoint in a phase III study that was being conducted in patients suffering from recurrent or metastatic squamous cell cancer of the head and neck (SCCHN).
The study was conducted with 795 patients who received treatment with a combination therapy of Alimta and cisplatin. The primary endpoint was overall survival. Although the median overall survival was higher in patients receiving Alimta and cisplatin compared to patients receiving placebo and cisplatin (7.3 months versus 6.3 months), the improvement was not statistically significant.
Eli Lilly also said that there was no significant difference in the “quality of life” analysis of patients in the Alimta arm compared to the placebo arm. Based on these disappointing results, Eli Lilly said that it will not seek approval for Alimta for the head and neck cancer indication in either the US or the EU. We note that another company, Amgen (AMGN), faced failure with the development of its oncology product, Vectibix, for the treatment of head and neck cancer.
Alimta is one of the most promising products in Eli Lilly’s portfolio and the company has been working on expanding the product label for additional indications. Alimta is currently approved for the first-line combination treatment of non-small cell lung cancer for patients with non-squamous histology; for the second-line treatment of non-small cell lung cancer; and for the combination treatment of malignant pleural mesothelioma.
Alimta sales came in at $1.71 billion in 2009 and approval for additional indications would help boost sales further. We note that generic player Teva (TEVA) is seeking approval for its version of the product.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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AMGEN INC (AMGN): Free Stock Analysis Report
BIOMARIN PHARMA (BMRN): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
SHUTTERFLY INC (SFLY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
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