Stocks and Sectors

Zacks.com submits:

Abbott (ABT) continues to be in an acquisition mode, recently announcing its intention to acquire Facet Biotech Corporation (FACT) for $27 per share. The total purchase price is approximately $722 million, including Facet’s projected cash and marketable securities of approximately $272 million.

Last year, Facet rejected an offer from Biogen Idec Inc. (BIIB) on the ground that it was inadequate and not in the best interests of Facet’s stockholders. Abbott’s offer price of $27 is well above Biogen’s last offer of $17.50 and represents a 67% premium to Facet’s closing price on March 9, 2010. Facet shares were up 67.2% in after market trading.

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George Chadwick submits:

Much of this research on Human Genome Sciences Inc. (HGSI) was performed just prior to the company’s earnings release on March 2, 2010, in large part to help decide whether or not to continue to hold after an 80% gain (now a 90% gain) in one of our portfolios.

It is interesting to note that the language used in HGSI’s earnings report very closely matched what was unearthed during the research (see below). This should exemplify the usefulness of doing the research!

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Flamel Technologies S.A. (FLML)

Q4 2009 Earnings Call

March 9, 2010 8:30 am ET

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Tom Lindmark submits:

Paul Krugman posted this chart today. It’s the current Intrade betting on the passage of healthcare.

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David Greene submits:

With the announcement after yesterday’s market close that Abbott Laboratories (NYSE:ABT) is buying Facet Biotech Corp. (NASDAQ:FACT) for approximately $450 million in cash or $27/share – a nice 67% premium to yesterday’s closing market price – the focus will be on other potential targets for acquisition. Abbott said the Facet Biotech acquisition expands the company’s access in immunology and oncology. The compounds include daclizumab that is expected to move into Phase III development in the second quarter 2010 to treat multiple sclerosis (MS).

But there are more companies with promising drugs under development which could attract generous valuations by other Big Pharma’s. Cancer Therapeutics (NASDAQ:CTIC) recently announced that the Food and Drug Administration (FDA) approved a third-party manufacturing site for the production of the company’s experimental cancer drug. CTIC’s drug, Pixantrone, is being reviewed by the FDA as a potential therapeutic for aggressive non-Hodgkin’s lymphoma that has not responded to other approved therapies or if the lymphoma returned after initially appearing to be responding to other therapies. The FDA had expressed concerns on the efficacy and safety of Pixatrone in early February, prompting a sharp selloff in CTIC stock which is just recently rebounding from.

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Zacks.com submits:

Salix Pharmaceuticals, Ltd. (SLXP) reported a net loss of 13 cents per share in the fourth quarter, a penny better than the Zacks Consensus Estimate and company guidance of a net loss of 14 cents. Salix reported a net loss of 12 cents in the year-ago period. Higher product sales helped the company beat expectations despite an increase in costs.

Full year net loss came in at 88 cents, a penny better than the Zacks Consensus Estimate and flat from the year-ago net loss. Revenues increased 30.3% to $232.9 million in 2009.

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Wall Street Strategies submits:

The President keeps promoting an up and down vote on healthcare and he is beating up the Republicans; however, once again, the real opposition comes from within his own political party. The sob stories of people losing their homes over a lack of healthcare insurance don’t resonate in the shadow of how many people lost their homes because they’ve lost their jobs. If we are to be motivated by tear jerking tales, then certainly nothing is crushing America more than not having a job. Record numbers of people on unemployment benefits longer than six months is the real destroyer of the fabric of the nation.

I want jobs to be the number one mission of the White House and not that saved or created stuff, real jobs. In some respects, the President is part Capitan Bligh and part Captain Ahab. I don’t care about the rhetoric that ramming this deal down the throats of Americans will sink the Democrats; I’m more concerned that the bill is flimsy in so many ways that it will not make healthcare better for the overwhelming majority of people, all the while jobs go lacking. Attacking the insurance companies for not having competition, but fighting against the idea of knocking down state barriers to competition, confuses me as it sounds like a plea for the public option.

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optionMONSTER submits:

By Jon Najarian

FDA Decision on Byetta Due Friday

On Friday, Amylin (AMLN) and partner Eli Lilly (LLY) are expected to get a decision by the Food and Drug Administration on Byetta, its once-a-week treatment for Type II diabetes. We’ve been watching Alkermes (ALKS), which supplies the technology that makes the drug last longer and therefore allow the weekly regimen. In pre-market trading today ALKS is up 5 percent, AMLN is up 0.6 percent, and LLY is up 0.06 percent.

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Zacks.com submits:

AstraZeneca (AZN) has received a pipeline setback with a mid-stage candidate failing to meet the primary endpoint of its study. The company was evaluating the effectiveness of Recentin (cediranib) in a phase II/III study (Horizon III) compared with Roche’s (RHHBY.PK) Avastin (bevacizumab), both in combination with chemotherapy in patients with first-line metastatic colorectal cancer (mCRC).

AstraZeneca is conducting another study with Recentin (Horizon II) in first-line mCRC. The effectiveness of the drug in combination with chemotherapy is being studied against chemotherapy alone. AstraZeneca is awaiting data from this study, which is expected shortly, before taking a final decision on its regulatory filing. In addition, results from a phase III study evaluating the effectiveness of Recentin in treating recurrent glioblastoma are expected in the first half of 2010.

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Tom Lindmark submits:

From Keith Hennessey, here is his take on the public optimism of Nancy Pelosi, Harry Reid and the Obama administration display with regard to the vote in the House on Obamacare:

Public signs of optimism from the President, his team, and Democratic Congressional leaders tell us little. We don’t know if they actually think they will have the votes, or if they are asserting that to try to make it true. Imagine the impact if Speaker Pelosi were to tell the press “We might not succeed.” Doing so would further embolden those marginal Members she is trying to convince to vote aye. They are telling us they think they will succeed, but they have to say this whether or not it’s true.

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