CHICAGO, June 15, 2011 /PRNewswire/ -- Today, Zacks Equity Research discusses the Pharma & Biotech industry, including: Bristol-Myers Squibb (NYSE: BMY), Vertex Pharma (Nasdaq: VRTX), Abbott Labs (NYSE: ABT), Allergan Inc. (NYSE: AGN) and Biogen Idec (Nasdaq: BIIB).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
A synopsis of today's Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/55127/Pharma+%26amp%3B+Biotech+Stock+Outlook+-+June+2011
We currently have a neutral outlook on large-cap pharma stocks (Zacks #3 Rank). While the companies will continue to face challenges like pricing pressure and genericization, growth in emerging markets and product approvals could help reduce the impact.
According to the IMS Institute, 44 new branded products were launched in 2010. However, the new product approval mix was more towards orphan drugs and medicines with the same mechanism of action as existing treatments. While 10 products represented new mechanisms of action, five orphan drugs and six new chemical entities using existing mechanisms were approved.
Important product approvals in 2011 so far include the approval of Johnson & Johnson's prostate cancer therapy, Zytiga, Merck's hepatitis C virus (HCV) treatment, Victrelis, Bristol-Myers Squibb's (NYSE: BMY) melanoma treatment, Yervoy, and Vertex Pharma's (Nasdaq: VRTX) HCV treatment, Incivek, among others.
We currently have Neutral recommendations on companies like Abbott Labs (NYSE: ABT), Allergan Inc. (NYSE: AGN) and Pfizer. We believe that Allergan's presence across different segments and geographies will help maintain decent growth going forward. We believe the company will be back on its historical mid-to-high teens earnings growth trajectory from 2011.
In the biotech space, we are positive on Biogen Idec (Nasdaq: BIIB). Biogen started 2011 on a strong note with revenues being driven by Tysabri and Avonex. Earnings estimates for Biogen have been increasing based on continued strong performance of the multiple sclerosis franchise. Longer term, we are optimistic on BG-12, the company's oral multiple sclerosis candidate.
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
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article