Zacks Analyst Blog Highlights: General Motors Corp., Durect Corp., Endo Pharmaceuticals, Onyx Pharmaceuticals and Supertex Inc.
For Immediate Release
Chicago, IL – May 8, 2009 - 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: General Motors Corp. (GM), Durect Corp. (DRRX - Snapshot Report), Endo Pharmaceuticals (ENDP - Snapshot Report), Onyx Pharmaceuticals (ONXX - Analyst Report) and Supertex Inc. (SUPX - Snapshot Report).
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Here are highlights from Thursday’s Analyst Blog:
GM Reports - Is Bankruptcy Near?
General Motors Corp. (GM) posted a reported net loss of $6.0 billion, including special items, or $9.78 per share in the first quarter of 2009. This compares with a reported net loss of $3.3 billion, or $5.80 per share, in the year-ago quarter.
Excluding special items, the company reported an adjusted net loss of $5.9 billion, or $9.66 per share, in the first quarter of 2009 compared to an adjusted net loss of $381 million, or $0.67 per share, in the first quarter of 2008. The reported results for the first quarter of 2009 include special items and charges netting to a loss of $73 million.
Durect at Attractive Entry Point
Durect Corp. (DRRX - Snapshot Report) has had a rocky past few months. The stock was hit harder than we expected in December 2008 when the FDA rejected the application on Remoxy. From our standpoint, the rejection of the NDA was not a surprise, but the reaction on Durect stock was.
Nevertheless, we think the FDA’s issues, most likely around the labeling, the abuse ability, and the risk management program, should only delay final approval by a year. We think that Remoxy will be on the market and generating royalties for Durect by the middle of 2010.
The second big sell-off in the stock came in early March 2009 when Durect announced that Transdur development partner, Endo Pharmaceuticals (ENDP - Snapshot Report), was returning U.S. and Canadian rights to the product to Durect. The news came as a big shock to us, considering the duo just recently met with the FDA for an “end-of-phase II” meeting and outlined a path to approval with a phase III program.
Onyx Misses, but Outlook Positive
On May 6, 2009, Onyx Pharmaceuticals (ONXX - Analyst Report) reported 1Q09 earnings.
Despite the turbulent economic conditions, worldwide Nexavar sales still increased by 17% to $178.1 million in 1Q09, compared to $151.9 million in 1Q08. Much of the growth was driven by its ex-US sales increase, which reached $130 million, up 29% year over year. US Nexavar sales were $48 million, down 6% year over year.
Supertex: LED Only "Bright" Spot
Shares of Supertex Inc. (SUPX - Snapshot Report, Hold) are tracking lower in a weak session today following its release of fiscal Q4 and year-end results yesterday. Q4 revenues of $15 million were light compared to our and consensus estimates of $16.1 million and $15.6 million, respectively. Non-GAAP EPS of $0.12 was also lower compared to our estimate of $0.15 and consensus of $0.17. Earnings were negatively impacted by lower gross margin of 42% resulting from weak overhead absorption and lower fab utilization.
LED backlighting for LCD televisions was the only "bright" spot in the quarter, and appears to be the driver for Q1 revenues. Sales of medical electronics products, imaging products and industrial electronics products declined sequentially during the reported quarter. Medical electronics product sales performed relatively well in Asia and imaging products, which consist of EL inverter products and commercial printer products, were lower due to reduced overall demand. Revenues from high voltage ICs for industrial and other markets were also lower due to the global economic decline.
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