The Zacks Analyst Blog Highlights:Elan, Biogen Idec, Cytokinetics, QLT and Medtronic

News provided by

Apr 04, 2013, 09:30 ET

CHICAGO, April 4, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Elan Corporation plc (NYSE:ELN), Biogen Idec (Nasdaq:BIIB), Cytokinetics Inc. (Nasdaq:CYTK), QLT Inc. (Nasdaq:QLTI) and Medtronic, Inc. (NYSE:MDT).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday's Analyst Blog:

Elan Sells Off Tysabri Stake

Elan Corporation plc (NYSE:ELN) recently closed its Tysabri (natalizumab) collaboration transaction with Biogen Idec (Nasdaq:BIIB). As a result, Biogen gained full strategic, commercial and operational control over the multiple sclerosis drug.

The transaction was initially announced in Feb 2013. As per the terms of the transaction Biogen made an upfront payment of $3.25 billion to Elan. Elan stated that it will invest a portion of the amount in different business assets. The company intends to refinance its outstanding debt through a share repurchase program by utilizing $1 billion of the upfront proceeds.

Elan is also eligible to receive a royalty payment of 12% on worldwide net sales of Tysabri (for all indications) for the first year. After the first year, Elan will receive a royalty of 18% on up to $2 billion of global net sales of Tysabri and 25% thereafter. Tysabri sales came in at $1.6 billion in 2012.

We note that last month encouraging data was announced on Tysabri. Data showed that Tysabri treatment resulted in lower rate of first relapse compared to other multiple sclerosis drugs.

We believe that the loss of Tysabri is huge setback at to Elan, since the product was its primary source of revenue. We expect Elan to actively pursue in-licensing deals or acquisitions to boost its product portfolio.

Elan, a biotechnology company, currently carries a Zacks Rank #5 (Strong Sell). Currently, well-placed biotech stocks include Cytokinetics Inc. (Nasdaq:CYTK) and QLT Inc. (Nasdaq:QLTI). Both the stocks carry a Zacks Rank #1 (Strong Buy). Biogen also carries a Zacks Rank #1 (Strong Buy).

FDA Clears Affinity, Boosting Medtronic

The recent US Food and Drug Administration ("FDA") 510(k) clearance for Affinity Fusion oxygenation system has enhanced the structural heart business of medical devices major Medtronic, Inc. (NYSE:MDT). The company also announced the first US clinical use of this new oxygenation system. Notably, last September, the company gained CE Mark for this system in Europe.

According to Medtronic, this new system, which combines several advanced features, oxygenates and removes carbon dioxide from blood during several open-heart surgical procedures. The company claims that these new features potentially reduce the risk of stroke, preventing the entry of air bubbles in blood during the surgery procedure. According to the company, this system can be helpful for hospitals, which are focusing on implementation of patient blood management programs and other initiatives.

With a number of heart patients undergoing cardiac surgery annually, Medtronic remains hopeful about the greater adoption of this oxygenation system among physicians and hospitals. The company encouragingly noted that, this year, there would be about 1 million cases of cardiopulmonary bypass worldwide. The process has already included the collaboration between the company and more than 500 perfusionists globally.

OurTake

Medtronic's consistent expansion of its portfolio via approvals in the domestic and international market is encouraging. With the FDA approval for Affinity Fusion oxygenation system, the company extended its structural heart portfolio. Medtronic's focus on the structural heart business is likely to deliver positive results, as substantial adoption of newer products should leverage the top line.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon 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=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.