Wednesday, December 30, 2009

Eli Lilly's Wrong Road With Livalo


Eli Lilly (LLY-$35.01) chairman and chief executive office John Lechleiter stated that the drug maker’s deal to co-promote Japan-based Kowa Pharmaceuticals’ new lipid-modifying med Livalo would permit Lilly to expand its “product offerings in the cardiovascular therapeutic area and more efficiently utilize [its] existing cardiovascular sales force.” Corporate-speak, no doubt, to signal that its representatives need something to do. Although still in the early phases of launch in the U.S., worldwide sales for Effient (prasugrel), used to prevent clots in patients undergoing artery-opening stent procedures, were just $22.6 million in the third quarter of 2009.

Continue Reading at BNET Pharma….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Wednesday, December 23, 2009

Ford Motor to Ask Santa For More Common Stock


The VEBA-UAW deal eerily resembles other debt reduction initiatives undertaken by Ford Motor Company (F-$10.00) — improving liquidity and rinsing its balance sheet clean of debt, in part, by issuing new stock and swapping debt for stock. For example, during the first-half 2009 the company exchanged $4.3 billion in convertible debt for 467.9 million shares of common stock.

In the last seven quarters, common stock outstanding rose by some 65 percent to 3.24 billion, which does not include almost 933.6 million in additional shares reserved for issuance under executive bonus plans, VEBA contributions, and debentures/notes with convertible options; yet, in the same period of time stockholder equity plummeted from $5.63 billion to negative $7.3 billion, as the company burned through piles of cash and quarterly losses to survive the dark days of the Great Recession.
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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Friday, December 18, 2009

Tamiflu Infected With the Truth -- How Debilitating to Health of Roche and Gilead Sciences?


Gilead Sciences ($43.20) receives a blended royalty on sales of Tamiflu (oseltamivir), marketed by Roche Holdings. Leveraging global concerns over avian and swine flu, Roche has skillfully raised awareness of the purported need to treat the complications associated with seasonal flu in otherwise healthy adults. The Swiss drug maker’s demonstrated success in challenging the conventional wisdom that “rest and aspirin” be the preferred treatment option for seasonal flu is found in sales of Tamiflu, up 362 percent to $1.93 billion in the first nine months of 2009.

Allegations have surfaced, however, that Roche has misled governments and physicians alike on the actual effectiveness of Tamiflu in preventing complications, such as hospitalization from pneumonia or death, in otherwise healthy people afflicted with the seasonal flu….
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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Wednesday, December 16, 2009

How Much For Life? Allos Therapeutics Says $30,000 - Per Month

The cost of Folotyn (pralatrexate injection) runs about $120,000 a year, a price tag that few drugs for incurable, rare cancers can match. With the runaway cost of healthcare under intense debate, critics contend that Allos Therapeutics' (ALTH-$5.99) drug for for relapsing or refractory peripheral T-cell lymphoma is excessive — especially since clinical benefit, such as improvement in progression-free survival or prolonging life, has not been demonstrated. In the pivotal PROPEL trial that led to FDA approval, duration of response was, on average, 9.4 months and the mean overall survival time was 14.7 months.

Will insurers push back on the cost of Folotyn treatment?
Continue Reading at BNET PHARMA….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Monday, December 14, 2009

Abbott Labs Looks to TriLipix and Certriad for Future Success'


The success behind Abbott Laboratories’ (ABT-$53.78) patent-expiry settlement with Teva Pharmaceutical is that it buys the drug maker more time to switch patients from its blockbuster drug TriCor to the brand sequel TriLipix.

Efforts to broaden the commercial appeal of Abbott’s lipid franchise, which also includes Niaspan (extended-release niacin) and Simcor (simvastatin/niacin extended release), hinges on a fixed-dose combination of TriLipix and Crestor, to be called Certriad.

What are the competitive threats coming down the pipeline? Continue Reading at BNET Pharma….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Tuesday, December 08, 2009

GameStop's Gamer Hell


In fiscal 2008, GameStop (GME-$21.35) generated approximately 40 percent of its sales and 56 percent of its operating profit during the all-important fourth-quarter holiday selling season. Christmas is also critical to the company’s cash flow. For the first half of fiscal 2009, GameStop bled $261 million. Nonetheless, the nation’s largest video game retailer expects to generate free cash flow in the range of $400 million to $425 million this fiscal year — fueled by holiday sales.

Last week Wal-Mart declared “Game On,” announcing 15-20% savings on 25 top video game titles, including bestsellers Rock Band: Beatles (Wii) and Left 4 Dead 2 (Xbox 360). Could GameStop find coal in its Christmas stocking this year?
Read more at BNET Retail….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Monday, December 07, 2009

Valero 'Fills 'Er Up With Ethanol Profits

Valero (VLO-$16.36) is looking to improve margins by shifting its crude diet away from heavy sours to lighter “sweet” (lower sulfur content) grades of oil. Prior to the shuttering of doors at the 200,000 barrel-per-day heavy crude facility in Delaware City, Valero had idled about 20 percent of its total capacity of 2.8 million barrels of oil a day — with another 24 percent of refinery utilization down for maintenance.

Cost cutting will not be enough to shore up weak fundamentals. Though refineries coming online in China and Brazil are expected to serve domestic markets, capacity expansions in the Middle East and India are expected to cater to export markets, dampening any hoped for recovery in near-term refinery margins at Valero.
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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Sunday, December 06, 2009

More on Novartis' Promising MS Drug Fingolimod


Novartis’ (NVS-$55.78) fingolimod, first in a new class of immunomodulatory drugs called S1P-receptor modulators, reduces circulating levels of white blood cells (by bottling them up in lymph nodes). Though effective in relapsing forms of MS, treatment with fingolimod – like all disease-modifying agents – is not without risk Skin cancer being Novartis’ alleged alabatross. The FDA will likely weigh the drugs promising efficacy, however, against this adverse event by requiring Novartis to develop a RiskMap protocol.

Can fingolimod cross the finish line before German drug maker Merck KgaA’s cladribine tablet and be the first oral MS treatment to market?

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Wednesday, December 02, 2009

Second Life for Pfizer's HIV Drug Selzentry



Pfizer’s (PFE-$18.85) anti-HIV drug Selzentry is now approved for combination use with other antiretroviral agents for treatment-na├»ve patients infected with CCR5-tropic HIV-1. Granted accelerated approval by the FDA in August 2007 for treatment-experienced patients infected with the R5 HIV-1 strain, industry pundits forecasted sales of more than $500 million by 2012. Uptake of Selzentry by HIV specialists has been less than expected — a marketing disaster — with Pfizer reporting paltry sales of just $46 million in 2008.

Will expanded labeling lead to usage beyond salvage therapy for this entry inhibitor?
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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Tuesday, December 01, 2009

Jacked up Dreams at Incyte


In the newly inked commercial deal with Novartis, drug designer Incyte (INCY-$8.39) retained exclusive rights for the development and potential commercialization of INCB18424 in the US. With more than 100,000 patients suffering from MF or related disorders, on the surface this looks like a sound commercial strategy. Think again — although the company had about $361 million in cash available as of November 5, no revenue stream currently exists to fund in-house development.

With an accumulated deficit of $1.3 billion sitting on its balance sheet, Incyte knows first hand the financial risks that coincide with navigating a small molecule compound from proof-in-principle and clinical trials to FDA approval and commercial viability.

Read more at BNET Pharma….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.