This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – April 2, 2012 – 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 AstraZeneca ( (AZN - Analyst Report), Teva Pharmaceuticals Limited (TEVA - Analyst Report), Mylan Inc. (MYL - Analyst Report), Dr Reddy's Laboratories ( (RDY - Snapshot Report) and POSCO ( .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
U.S. Court Rejects AstraZeneca’s Case
Recently, AstraZeneca ( (AZN - Analyst Report) announced that US District Court for the District of Columbia has dismissed the lawsuit filed by the company against the US Food and Drug Administration (FDA).
AstraZeneca had taken legal action against the FDA, challenging the agency’s decision to reject AstraZeneca’s Citizen Petitions.
The Citizen Petitions were filed by the company for Seroquel (quetiapine fumarate) and Seroquel XR. The Citizen Petitions were filed to bar the FDA from approving any generic versions of the drug that do not include warnings related to hyperglycemia and suicidality in its label. With this move, AstraZeneca was looking to delay the launch of generic versions of Seroquel considering the company has marketing exclusivity for the data associated with the hyperglycemia warning till December 2, 2012.
Meanwhile, the UK High Court has ruled against the formulation patent protecting Seroquel XR and rendered it invalid. Seroquel XR is marketed as Seroquel XL in the UK.
Teva UK Limited and Teva Pharmaceuticals Limited (TEVA - Analyst Report) had challenged AstraZeneca’s Seroquel XR patent in December 2010. Similar challenges were made by Accord Healthcare Limited, Intas Pharmaceuticals Limited, Hexal AG and Sandoz Ltd. in March and April 2011. We note that the patent covering the formulation of Seroquel XR expires in 2017 in both the EU and the US.
In contrast to this decision, on March 7, 2012, the District Court in The Hague, Netherlands, ruled in favor of AstraZeneca and found Seroquel XR’s formulation patent to be valid. The company is engaged in several other lawsuits related to Seroquel XR’s patent.
Mylan Inc. (MYL - Analyst Report), Dr Reddy's Laboratories ( (RDY - Snapshot Report) and Teva have launched their generic version of Seroquel in late March. The Seroquel franchise generated sales of $5.8 billion in 2011. The loss of patent protection and entry of generic drugs in the market will hit AstraZeneca’s topline.
Neutral on AstraZeneca
We currently have a Neutral recommendation on AstraZeneca. The stock carries a Zacks #3 Rank (Hold rating) in the short run. Even though we are encouraged by the company’s focus on the high-potential emerging markets, we remain concerned about the generic competition faced by its key products. In 2011, the company lost revenues worth almost $2 billion to generic competition.
The company is looking to drive the bottom-line through cost-cutting initiatives and share buybacks. The weak late-stage pipeline coupled with the slow Brilinta uptake also bothers us.
POSCO Downgraded to Underperform
We recently downgraded our recommendation on the South Korean steelmaker POSCO ( , from Neutral to Underperform.
The company, considered to be the third largest steelmaker on the basis of output, failed to impress the market which witnessed a fall in the company’s ADR prices, post the release of the fiscal year 2011 financial results.
The company posted roughly a 12% decline in its net earnings in 2011, despite registering revenue growth of 44%. Its margins weakened as higher raw material costs were not fully reflected in the sales price. Further, in 2012, coking coal spot prices are expected to remain flat while limited increase is likely in iron ore prices.
Considering the broader perspective, we believe POSCO remains in an advantageous position to leverage benefits from the growing steel demand both in the global and domestic markets. Also, efforts are being made to expand operations in the fast growing markets and industries.
In 2011, facility expansion and sales increase led to a 2% growth in the company’s domestic market share to 41%. Moreover, POSCO’s investment in a graphene making company and development of new steel for electric vehicles would probably open up new avenues of growth for POSCO.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339