"People forget how fast you did a job -- but they remember how well you did it."
-- Howard Newton, American advertising executive
BREAKFAST WITH THE FOOL
By
News to Go
American Airlines (NYSE: AMR) and Delta Air Lines (NYSE: DAL) have held recent discussions about consolidation in the industry and have even talked about a possible merger between the two companies, a feat that would be very difficult to manage, The Wall Street Journal reported. More Foolishness
An amazing family manages to cope with unexpected retirement... You can win $1000 or a computer when you play Stock Madness... Is it smart to borrow from your broker?
The company's shares rose almost 10% in European trading after the U.S. Food and Drug Administration approved Enbrel for treatment of moderate to severe rheumatoid arthritis. Under its original label, Enbrel could only be used to treat patients who hadn't responded to disease-modifying anti-rheumatic drugs.
Some analysts believe the expanded indication could double Enbrel's addressable market, according to a Bloomberg story, and Immunex has said the label expansion will ultimately push Enbrel sales over the $2 billion threshold.
Last year, Enbrel had sales of $367 million, its first full year on the market. Analysts expect sales in the $600 million to $650 million range this year, and some expect it to break the $1 billion barrier as early as 2001. Enbrel is the workhorse for Immunex, generating 73% of the company's $179 million in first-quarter revenues.
No doubt the approval is good news for the company, but it's worth keeping in mind that the FDA approval was widely expected, meaning it was already priced into the company's shares.
As with all biotechnology and pharmaceutical companies, investors should keep an eye on Immunex's pipeline. The company hopes to use Enbrel to treat patients with chronic heart failure as well as those who suffer from a combination of ailments, such as rheumatoid arthritis and psoriasis.
Immunex shares were rocked in late May after the company reported disappointing statistical results from Phase II trials of its asthma drug Nuvance. The company said some results from the trial were positive and it's pursuing additional tests.
Immunex is majority controlled by pharmaceutical company American Home Products (NYSE: AHP).
Network management software company Computer Sciences (NYSE: CSC) has been awarded a seven-year, $280 million service contract to provide DuPont Pharmaceuticals Company with information technology infrastructure services.
Auto parts, chemicals, and accessories retailer AutoZone (NYSE: AZO) plans to repurchase an additional $250 million of its common stock, a move that increases to total repurchase authorization to $1.25 billion. As of May 6, the company had bought back 34.6 million shares worth $907 million.
RSS Headlines
Fool UK
