Zacks Industry Outlook Highlights: Eli Lilly, Forest Labs, ViroPharma, Novartis and United Therapeutics - Press Releases
April 27 2012 - 4:30AM
Zacks
For Immediate Release
Chicago, IL – April 27, 2012 – Today, Zacks Equity Research
discusses the Pharmaceuticals & Biotech Industry, including
Eli Lilly ( LLY), Forest Labs (
FRX), ViroPharma ( VPHM),
Novartis ( NVS) and United
Therapeutics ( UTHR).
A synopsis of today’s Industry Outlook is presented below. The
full article can be read at
http://www.zacks.com/stock/news/73859/pharma-biotech-stock-outlook-april-2012
We recommend avoiding names that offer little growth or
opportunity for a take-out. These include companies which are
developing drugs that are likely to face regulatory hurdles. The
FDA has been exercising more caution in granting approval to new
products and several candidates are facing delays in receiving
final approval.
We would also avoid companies like Eli Lilly (
LLY), which are facing patent expirations on key products and whose
new products may not be enough to make up for the loss of revenues
that will take place once generics enter the market. 2012 will be a
challenging year for Eli Lilly, with the company losing patent
exclusivity on Zyprexa in October 2011. Zyprexa sales should erode
rapidly with the entry of generics. Moreover, we expect continued
erosion of Gemzar sales due to genericization. Another company that
is highly exposed to a patent cliff is Forest Labs
( FRX).
Another company facing generic competition is
ViroPharma ( VPHM). Estimates are down
significantly as the company’s lead product, Vancocin, began facing
generic competition recently. The entry of generic versions will
lead to a rapid decline in branded Vancocin sales. We expect
ViroPharma to remain under pressure as generic players launch their
versions of the drug.
We currently have a Zacks #4 Rank on Novartis (
NVS). We expect 2012 to be a challenging year for the company given
manufacturing issues, pricing headwinds, generic competition and
unfavorable currency movement. The company’s first quarter 2012
results were below expectations.
United Therapeutics ( UTHR) also carries a Zacks
#4 Rank. We are not too bullish on the company’s chances of gaining
US approval for oral treprostinil, given the mixed data on the
candidate. Moreover, the company’s weak late-stage pipeline
concerns us.
Zacks "Profit from the Pros" e-mail newsletter provides
highlights of the latest analysis from Zacks Equity Research.
Subscribe to this free newsletter today by visiting
http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leonard 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=4581.
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/ZacksInvestmentResearch
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
FOREST LABS A (FRX): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
UTD THERAPEUTIC (UTHR): Free Stock Analysis Report
VIROPHARMA (VPHM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Forest Road Acquisition (NYSE:FRX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Forest Road Acquisition (NYSE:FRX)
Historical Stock Chart
From Jul 2023 to Jul 2024