<BREAKFAST WITH THE FOOL>

Friday, July 9, 1999

"I have an idea that the phrase 'weaker sex' was coined by some woman to disarm the man she was preparing to overwhelm." -- Ogden Nash

Latest Market Numbers

Biogen Earnings Soar

Biopharmaceutical company Biogen Inc. (Nasdaq: BGEN) posted second-quarter earnings of $0.34 a share, before charges, up 70% from $0.20 a year ago and ahead of analysts' mean estimate of $0.32. Revenues gained 47% to $188.9 million. Including a non-cash charge of about $15.3 million to write down certain publicly traded securities tied to collaborations with smaller biotechnology companies, earnings came in at $0.28 a share.

The Cambridge, Massachusetts-based company attributed the strong quarterly performance to the success of its drug for multiple sclerosis, Avonex. Sales for the drug jumped 67% year-over-year to around $145.9 million during the quarter. Avonex is the world's leading drug for multiple sclerosis with roughly 70,000 patients now using it worldwide.

Looking forward, Biogen said it is "proceeding aggressively" to start Phase III trials of its Amevive treatment for moderate-to-severe psoriasis. The company has begun human trials with Antova in islet cell transplantation for diabetes, in renal transplantation, and in lupus.

News To Go

In an effort to streamline operations, Walt Disney Co. (NYSE: DIS) is consolidating its Walt Disney Television Studio, including Buena Vista Television Productions, with ABC's Prime Time Division to form a single organization called ABC Entertainment Television Group. The new group will be headed by Stuart Bloomberg and Lloyd Braun, who will report to Patricia Fili-Krushel, president of ABC Television Network. The new unit will produce prime-time TV series for ABC and other networks and increase in-house development at ABC.

Loser of the week Waste Management's (NYSE: WMI) No. 2 executive, Rodney Proto, made $16.5 million by selling shares in the waste company during the second quarter, the same period for which the company just warned of a significant earnings shortfall, The Wall Street Journal reported. In all, Waste Management insiders unloaded more than one million shares in May at prices between $51.94 and $56.41. The stock closed yesterday at $33 15/16 ($33.9375).

Medical device maker Abbott Laboratories (NYSE: ABT) said it will acquire Perclose Inc. (Nasdaq: PERC), which makes arterial closure devices, in an all-stock deal valued at around $680 million, or $54 a share. That's a 37% premium to the price at which Perclose was trading yesterday before it was halted. Perclose shares fell 18% yesterday ahead of the company's announcement that it would voluntarily recall certain Techstar XL 6F percutaneous vascular surgery products due to a manufacturing problem that has been resolved.

Real estate services and investment management company Jones Lang LaSalle (NYSE: JLL) warned that it expects earnings for the second quarter and the year to be "substantially below" analysts' estimates. The company anticipates a Q2 loss and full-year earnings that "will not be below $1.00 per share." The company will announce Q2 results July 30.

Standard & Poor's announced it will add wireless communications company Qualcomm (Nasdaq: QCOM) to the S&P 500 Index to replace Transamerica Corp. (NYSE: TA), which is being acquired by Aegon NV, a Dutch company. Compass Bancshares (Nasdaq: CBSS) will take Qualcomm's spot in the S&P MidCap 400 Index.

Meanwhile, enterprise software developer Clarify Inc. (Nasdaq: CLFY) will replace Whittaker Corp. (NYSE: WKR) in the S&P SmallCap 600 Index after the close of trading next Tuesday. Whittaker is being acquired by U.K.-based Meggit PLC.

Also, staffing services firm StaffMark Inc. (Nasdaq: STAF) will be added to the S&P SmallCap 600 Index after next Friday's close, replacing Superior Services (Nasdaq: SUPR), as the latter is being bought by Vivendi, a French company.

Food distributor Performance Food Group (Nasdaq: PFGC) will replace Executive Risk (NYSE: ER) in the S&P SmallCap 600 Index pending S&P 500 component Chubb Corp.'s (NYSE: CB) proposed acquisition of Executive Risk.

More Foolishness

Recap June retail same-store sales figures... Check out this week's Dueling Fools over Dell Computer... Read the latest StockTalk interview with Launch Media... Get a closer look at Disney in this Foolish special... See what Fools are talking about on our message boards.

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Yi-Hsin Chang (TMF Puck), Writer
Jennifer Silber (TMF Amused), Editor