Zacks Analyst Blog Highlights: Lloyds Banking Group plc, CBS Corporation, Somaxon Pharmaceuticals, Alexza Pharmaceuticals and NeurogesX, Inc.

For Immediate Release

Chicago, IL – May 11, 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: Lloyds Banking Group plc (LYG - Analyst Report), CBS Corporation (CBS - Analyst Report), Somaxon Pharmaceuticals (SOMX - Analyst Report), Alexza Pharmaceuticals (ALXA - Snapshot Report) and NeurogesX, Inc. (NGSX - Analyst Report).

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Here are highlights from Friday’s Analyst Blog:

Lloyds Still Expects a Loss

Today in its first quarter trading update, Lloyds Banking Group plc (LYG - Analyst Report, or Lloyds) announced that it still expects to post a loss for full-year 2009 (excluding an accounting gain from negative goodwill) on the back of rising loan impairment charges due to continued economic deterioration.

Lloyds now expects a 50%-plus increase in corporate impairments, largely from commercial real estate losses in the UK and Ireland, in addition to significantly higher impairments in the retail secured and unsecured loan portfolios.

CBS Ad Revs Tumble As Expected

CBS Corporation (CBS - Analyst Report) reported that as expected it lost $0.08 per share in 1Q09, a sharp drop from the $0.36 per share it earned in the year-ago quarter.

Two-thirds of the company's revenues come from advertising, which has been falling sharply for several quarters in all medias, with the Internet providing the lone engine of growth -- and even that began to slide in 4Q08.

Revenue slumped 13% to $3.16 billion, as falling revenue in the company's TV, radio, outdoor and publishing businesses was partially offset by the acquisition of CNET Networks. EBITDA plunged disproportionately -- down 42% to $249 million-- eviscerated by heavy fixed costs.

Somaxon - Too Much Risk

Somaxon Pharmaceuticals (SOMX - Analyst Report) is running dangerously low on cash. Management exited the second quarter with $4.4 million in cash and restricted cash. Based on our financial model, Somaxon will run out of cash in July 2009. Therefore, the company plans to enter into a financing in May or June 2009.

The company noted on its first quarter conference call that this financing will be enough to fund operations through the FDA review of Silenor. Therefore, we believe management will seek to raise roughly $10 million in new capital. Given the current market value of only $9 million, we see the upcoming financing as potentially 100% dilutive.

ALXA's Symphony Allegro Squeeze

Management at Alexza Pharmaceuticals (ALXA - Snapshot Report) is focused on completing the necessary non-pivotal safety and supportive work, as well as the chemical and manufacturing scale-up on AZ-004 in preparation of the planned NDA filing in early 2010.

The only clinical trial program that will run in 2009 is the recently initiated phase IIb program on AZ-104. No clinical work is being done on AZ-007 or AZ-001 at this point. Besides the preparation that is being done for the AZ-004 new drug application (NDA), management will also focus on partnering opportunities for AZ-004 and AZ-001.

NGSX's Qutenza Nearing Approval

NeurogesX, Inc. (NGSX - Analyst Report) filed a new drug application (NDA) on Qutenza (formerly NGX-4010) for post-herpetic neuralgia (PHN) in October 2008. The filing includes data from 2,300 patients and two positive phase III trials, C116 and C117, discussed below.

The FDA accepted the application in December 2008 and established a PDUFA action date of August 16, 2009. However, in recent discussions with the FDA, NeurogesX was asked for additional information around the topical anesthetic used in the phase III program.

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