Today's Coverage: Hospira Takes a Hit, Elan Bounces Back After Tysabri Sale-Off
LONDON, February 20, 2013 /PRNewswire/ --
The drug delivery sector deals with methods and processes of administering pharmaceutical product for its therapeutic effect in humans (and animals). This is a giant industry with a market cap of over $43 billion. While some of the major drug manufacturers also have drug delivery subsidiaries, some companies specialize almost exclusively in this sector, such as Hospira Inc. (NYSE:HSP) and Elan Corporation (NYSE:ELN). StockCall initiated free in-depth technical analysis on Hospira and Elan which are currently available upon sign up at
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Hospira Inc. in Brief
Hospira provides injectable drugs and infusion technologies. It offers generic acute-care and oncology injectables, and products related to integrated infusion therapy and medication management. It is a global company that manages its operations in the Americas, EMEA (Europe, Middle-East and Africa) and APAC (Asia/Pacific). Sign up for the free technical analysis on Hospira Inc. at
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Hospira is a mid-cap company with market cap of $4.97 billion against an enterprise value (as of February 20, 2013) of $5.94 billion. The stock is trading at 1.58x its book value of 18.40. Its shares took a hit a few days back after it announced that the FDA banned a few of its products made in its Costa Rica plant. As a result, it withdrew guidance one day after its earnings announcements, and management said that "it could see sales drop by $50M to $100M, and earnings fall by $0.05 to $0.15 a share."
Elan Corporation in Brief
Elan is a bio-technology company focused on discovery and development of advanced therapies in the field of neuroscience, particularly neurodegenerative and auto immune diseases. ELN has a market cap of $6.20 billion, which is greater than its enterprise value of $6.16 billion. At $10.42, the stock trades at 10.03 times its book value of $1.04. Download the free report on Elan Corporation plc by registering at
http://www.StockCall.com/ELN022013.pdf
Early February, Elan announced restructuring the terms of agreement of its collaboration with Biogen Idec over Tysabri®, an alpha-4 integrin inhibitor, which is a therapy for MS, a neurological disorder involving central nervous system dysfunction among adults. From an equal sharing collaboration, the company agreed to an upfront payment of $3.25 billion and a double digit tiered royalty structure. The stock went down slightly after the announcement, but has bounced back into the green at present.
According to the company's CEO, Kelly Martin, the restructured agreement enables the company "shareholders to realize, upon close, a meaningful percentage of the current value of Tysabri while maintaining long term cash flow realization through the multi-tiered royalty structure of the complete asset."
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