CHICAGO, Feb. 17, 2011 /PRNewswire/ -- Zacks.com Analyst
Blog features: Penske Automotive Group Inc. (NYSE:
PAG), Alkermes Inc. (Nasdaq: ALKS), Johnson &
Johnson (NYSE: JNJ), Eli Lilly and
Company (NYSE: LLY), and Amylin
Pharmaceuticals, Inc. (Nasdaq: AMLN).
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Here are highlights from Wednesday's Analyst Blog:
Penske Profit Jumps 52%
Penske Automotive Group Inc. (NYSE: PAG) posted a
whopping 52% increase in profit to $29.5
million or 32 cents per share
(excluding a net after-tax gain) in the fourth quarter of 2010 from
$19.4 million or 21 cents per share in the corresponding quarter
of previous year. With this, the company also beats the Zacks
Consensus Estimate of 26 cents per
share.
The higher profit was attributable to an improvement in retail
environment in the U.S. as reflected in a 9.4% increase in same
store retail units to 64,043 vehicles and a 9.1% rise in same store
retail revenues to $2.5 million. Same
store retail sales increased 13.5% in the U.S. and 2.0% in the
international market.
Revenues in the quarter grew 13.5% to $2.8 billion, driven by a 14% rise in total
retail sales to 66,738 units. It was higher than the Zacks
Consensus Estimate of $2.6 billion.
Total retail units rose 18.9% in the U.S. and 3.7% in the
international market.
New Vehicle revenues appreciated 16% to $1.5 billion on an 11% rise in sales to 39,033
units. Used Vehicle revenues went up 12% to $728.4 million based on an 18% increase in sales
to 27,705 units. Revenues in the Service and Parts segment rose 6%
to $342.8 million.
Meanwhile, revenues in the Fleet and Wholesale Vehicle segment
increased 20% to $175.5 million and
6% to $61.8 million in the Finance
and Insurance segment. However, revenues in the Distribution
segment dipped 13% to $8.2
million.
Pipeline at Alkermes Advances
Alkermes Inc.'s (Nasdaq: ALKS) pipeline received a shot
in the arm with its candidate ALKS 37 faring well in a mid-stage
study (n=87) in patients suffering from opioid induced
constipation.
Results revealed that treatment with ALKS 37 reduced
constipation arising out of the intake of opioid pain therapies
without compromising on the efficacy of the drugs. Alkermes intends
to present complete results from the study at an upcoming medical
conference.
The multi-center, randomized, double-blind, placebo-controlled
study evaluated the safety, efficacy and tolerability of the
candidate in patients suffering from opioid-induced bowel
dysfunction (OBD) while undergoing opioid treatment for chronic,
non-cancer pain. The patients were treated with either ALKS 37
(once daily) or placebo for 14 days.
Preliminary results from the multi-dose study revealed a
significant increase in the weekly number of bowel movements in
patients treated with 30 mg and 100 mg (the two highest doses
evaluated) of the candidate compared those treated with placebo.
ALKS 37 was well tolerated.
The study was characterized by the absence of serious
side-effects, the most common being abdominal pain and diarrhea.
The positive results have encouraged the company to plan a pivotal
study of the candidate in mid calendar 2011.
Alkermes has many pipeline events lined up. The company intends
to present data regarding another pipeline candidate, ALKS 33, in
multiple indications during the course of calendar 2011. Alkermes
has many other candidates in development.
Alkermes has two approved products on the market. The lead
product is Risperdal Consta approved for the treatment of
schizophrenia and bipolar disorder. The drug is marketed worldwide
by Johnson & Johnson (NYSE: JNJ) and
manufactured by Alkermes.
The other approved product is Vivitrol for the treatment of
alcohol dependence. The label of the product was expanded in
October 2010 when the US Food and
Drug Administration (FDA) approved the drug for the prevention of
relapse to opioid dependence after opioid detoxification.
The drug is expected to be launched for the additional
indication during calendar 2011. We believe that the approval of
Vivitrol for the additional indication will bring in additional
revenues at Alkermes.
Even though October 2010 saw the
FDA clearing Vivitrol for an additional indication, the same month
brought distress to Alkermes. The FDA issued a second complete
response letter (CRL) for its lead pipeline candidate, Bydureon,
for treating type II diabetes. Bydureon has been co-developed
by Eli Lilly and Company (NYSE: LLY),
Alkermes and Amylin Pharmaceuticals, Inc. (Nasdaq:
AMLN).
A response to the CRL will be submitted in the second half of
2011. We note that Bydureon is currently under review in
Europe with a decision expected
during the course of 2011.
Our View
Going forward, we expect investor focus to remain on the
approval process for Bydureon and see limited upside potential from
current levels. Consequently, we retain our Neutral stance on the
stock which is supported by the Zacks #3 Rank (Hold rating) carried
by Alkermes in the short run.
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