Back to top

Press Releases

The Zacks Analyst Blog Highlights: Gilead Sciences, Abbott Labs, Alliance Data Systems Corporation, Blue Nile and Bristol-Myers Squibb

GILD ABT ADS NILE BMY

 ZacksTrade Now

For Immediate Release

Chicago, IL – May 15, 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 Gilead Sciences (GILD - Analyst Report), Abbott Labs ((ABT - Analyst Report)), Alliance Data Systems Corporation (ADS - Analyst Report), Blue Nile (NILE - Snapshot Report) and Bristol-Myers Squibb ((BMY - Analyst Report)).

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 Monday’s Analyst Blog:

Good News for Gilead

 

Gilead Sciences (GILD - Analyst Report) received some encouraging news recently when an advisory panel of the U.S. Food and Drug Administration (FDA) recommended the approval of the company’s HIV combination pill Quad. A final decision from the FDA regarding the matter is expected by August 27, 2012 (target date).

We note that the Quad pill is a combination of elvitegravir, cobicistat and Truvada. Gilead is looking to get the pill (once daily) approved as a first-line therapy for treating adults infected with the HIV virus.

The FDA’s advisory panel met to review the new drug application (NDA) submitted by Gilead in October 2011 for getting Quad approved in the U.S. The NDA included positive data from two late-stage studies - 102 which compared Quad to Atripla and 103 which compared Quad to Norvir (ritonavir)-boosted Reyataz plus Truvada. While Norvir is marketed by Abbott Labs ((ABT - Analyst Report)), Reyataz is marketed by Bristol-Myers Squibb ((BMY - Analyst Report)).

While reviewing the application, the panel voted overwhelmingly (13-1) in favor of clearing the combination pill (a single tablet regimen) in the U.S. Even though the U.S. agency is not bound to follow the advice of its advisory committee, the recommendation of the panel is usually considered by the agency while deciding the fate of a candidate.

Positive news from the FDA in August would further boost the top line at Gilead and strengthen its already established HIV portfolio. The Quad pill is also under review in the E.U, Australia and Canada. Approval in additional territories would increase the drug’s sales potential.

Neutral on Gilead

We have a Neutral recommendation on Gilead. Our long-term stance is in line with the Zacks #3 Rank (Hold rating) carried by the company in the short run. We remain optimistic on the growth prospects of Gilead's HIV drugs, Truvada and Atripla. We are also encouraged by the approval of Complera/Eviplera, which together with Quad, once approved, will further fortify the HIV franchise and help mitigate the impact of the upcoming patent expirations.

Gilead is looking to combat the threat of genericization by inking deals and making acquisitions and introducing new products. To further strengthen its hepatitis C virus (HCV) portfolio, Gilead purchased Pharmasset in January 2012, for approximately $11.1 billion.

ADS-Blue Nile Ink Long-Term Deal

 

Alliance Data Systems Corporation (ADS - Analyst Report) inked a long-term agreement with Blue Nile (NILE - Snapshot Report) in order to initiate and control a new private label credit card program for the latter. Seattle-based Blue Nile is the leading online retailer of diamonds and fine jewelry.

The card program will encompass customized financing options and online account management without charging any annual card fee. The program enables customers to choose from financial options including 6 and 12 months which would ultimately be equivalent to the cash payment that the customers had to pay. On the other hand, customers have the ease to make payments over a period of 24 or 48 months.

Alliance Data will also partner Blue Nile in bringing added incentives for cardholders and marketing initiatives through advanced analytics capabilities, direct mail and email, web and mobile channels.

In the first quarter of 2012, the Private Label Services and Credit segment revenue registered a 7% growth. We expect this transaction to help the company generate additional revenue as well as help the segment to continue delivering robust growth going forward.

Alliance Data posted strong first quarter results with operating earnings substantially ahead of the Zacks Consensus Estimate and year-ago earnings. The strong results came on the back of solid performances across all segments.

The quantitative Zacks #2 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the stock over the near term.

 

 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

About Zacks

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.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIM'S P… PPC 31.52 +3.72%
CLAYTON WIL… CWEI 138.97 +3.55%
CALLON PETE… CPE 11.50 +3.14%
ACTELION LT… ALIOF 124.80 +2.97%