Zacks Analyst Blog Highlights: Biogen Idec, Elan, UnitedHealth Group Inc., Forest Laboratories, Inc. and Cypress Biosciences

For Immediate Release

Chicago, IL – October 21, 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: Biogen Idec (BIIB - Analyst Report), Elan (ELN - Snapshot Report), UnitedHealth Group Inc. (UNH - Snapshot Report), Forest Laboratories, Inc. (FRX - Analyst Report) and Cypress Biosciences (CYPB - Analyst Report).

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Here are highlights from Tuesday’s AnalystBlog:

Biogen Reports Higher Earnings

Today morning, Biogen Idec (BIIB - Analyst Report) reported third quarter earnings per share of $1.12, beating the Zacks Consensus Estimate of $1.02. The company reported earnings of 98 cents in the year-ago period. Revenues increased 3% to $1.12 billion, with Tysabri being the primary growth driver.

Tysabri sales came in at $207 million, up 21% from the prior period. The company estimates that as of the end of September 2009, about 46,200 patients were on commercial and clinical Tysabri therapy worldwide. This represents an increase from the 43,300 patients reported by the company in the second quarter of 2009.

Tysabri is an important growth driver and we expect the product, which is partnered with Elan (ELN - Snapshot Report), to cross $1 billion in worldwide sales in 2009.

UnitedHealth Ahead of Estimates

UnitedHealth Group Inc. (UNH - Snapshot Report) third quarter earnings came in at 89 cents per share, ahead of the Zacks Consensus Estimate of 76 cents. The earnings showed an improvement over the prior year EPS of 75 cents per share mainly due to an uptick in net earnings.

As reported by the company, earnings from operations (EBIT) were $1.5 billion and net earnings were $1.0 billion, an increase from $1.4 billion and $0.9 billion, respectively, in the prior-year quarters. Operating margin of 7.7% remained stable on a year over year basis.

Operating costs increased to $20.0 billion from $18.6 billion last year. The consolidated medical care ratio remained within the range of management expectations at 82.0%, up 30 basis points year over year. The increase includes the mix effect of an increased proportion of public and senior markets risk-based business year over year, as well as from elevated medical costs related to the H1N1 influenza virus.

UnitedHealth realized $90 million in net favorable development in its estimates of medical costs incurred during the quarter.

Forest Reports In-Line

This morning, Forest Laboratories, Inc. (FRX - Analyst Report), reported earnings per share of 85 cents for the second quarter of fiscal 2010, in-line with the Zacks Consensus Estimate. Product sales increased 4% to $962.7 million.

Although Lexapro sales declined 3.1% to $566 million, Namenda, which is approved for the treatment of moderate and severe Alzheimer’s disease, delivered sales of $275.3 million, recording a growth of 11.9% from the year-ago period. Improved patient access and increased promotional efforts should help keep Namenda sales strong.

Bystolic, Forest’s beta-blocker for the treatment of hypertension, posted sales of $40.7 million. This was significantly higher than the year ago sales of $14.2 million. Contract revenue, consisting primarily of Benicar co-promotion income, increased 7.2% to $50.6 million.

Forest’s most recent product launch, Savella, which is approved for the management of fibromyalgia, posted sales of $10.2 million. The product, which has been developed in collaboration with Cypress Biosciences (CYPB - Analyst Report), was launched in late April 2009. We believe Savella may have multi-hundred million dollar potential.

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