Among the companies whose shares are expected to actively trade
in Monday's session are Idenix Pharmaceuticals Inc. (IDIX),
Inhibitex Inc. (INHX) and GlaxoSmithKline PLC (GSK, GSK.LN).
Idenix surged 44% to $10.16 in recent premarket trading in the
wake of fellow Hepatitis C drug developer Inhibitex's planned $2.5
billion purchase by Bristol-Myers Squibb Co. (BMY). But Brean
Murray Carret says Idenix's effort in the space "will ultimately
yield results that do not match what we have become accustomed to"
from others. The investment bank keeps its 7-month-old sell rating
and $3 price target on Idenix, noting that "although the gut
reaction will be to view Idenix as a similar investment as
Pharmasset Inc. (VRUS) and Inhibitex, we strongly caution against
viewing these assets as being equivalent as we believe there are
deficiencies in the clinical profile" of Idenix's effort. Inhibitex
soared 148% to $24.50 in recent premarket trading and Achillion
Pharmaceuticals Inc. (ACHN) is also receiving a boost, soaring 31%
to $10.24.
GlaxoSmithKline's American depository shares are down 2.9% at
$44.86 premarket after the company said it completed Phase III
studies for Relovair. The results are mixed and some risk is
involved, according to Shore Capital. "The data are probably not as
clean as we would have liked and although the lack of superiority
versus Advair probably has little relevance to approvability, we
believe that it could limit [Relovair's] commercial positioning,"
the firm says.
Questcor Pharmaceuticals Inc. (QCOR) said the number of paid
prescriptions of its treatment for the flare-up of multiple
sclerosis more than doubled in the fourth quarter from a year
earlier. Shares rose 9.9% to $42.80 in premarket trading as the
pharmaceutical company said H.P. Acthar paid prescriptions for MS
rose about 165% in the latest period to an estimated 935 to 950
paid prescriptions.
IPC The Hospitalist Co. (IPCM) lowered its full-year guidance
and gave fourth-quarter guidance below analyst expectations, noting
unexpected softness in patient volumes in certain practices hurt
revenue in the latest quarter. Shares slid 16% to $38.34 in
premarket trading as the provider of hospitalist services also said
the continued use of temporary staffing at several of its larger
practices, and start-up costs to open several new practices, hurt
profits.
Lululemon Athletica Inc. (LULU, LLL.T) said Friday that founder
Chip Wilson would step down from his position as chief innovation
and branding officer Jan. 29 but will remain chairman of the
yoga-wear maker. The company's common stock traded in New York was
down 2.1% at $52.56 in light premarket trading.
Vivus Inc.'s (VVUS) shares surged 18% to $12 premarket as the
pharmaceutical company said the U.S. Food and Drug Administration
has asked the company to remove the restriction against use by
women of childbearing age on the proposed label for the weight-loss
drug Qnexa.
Biotechnology firm Acorda Therapeutics Inc. (ACOR) said it
expects sales of its Ampyra drug to rise to $255 million to $275
million in 2012, up from $210 million last year. Shares edged up
0.3% to $25.75 premarket.
Watch List:
Baker Hughes Inc. (BHI) said the number of drilling rigs
actively exploring or developing oil during December decreased by
1.9% from November.
Diamond Offshore Drilling Inc. (DO) ordered a moored
semisubmersible rig from Keppel AmFELS shipyard in Brownsville,
Texas, at an estimated cost of $300 million. The rig, to be named
the Ocean Onyx, will be able to operate in water as much as 6,000
feet deep and is scheduled for delivery in the third quarter of
2013.
Emergent BioSolutions Inc. (EBS) projected revenue for 2012
below analysts' expectations and the vaccine and drug developer
narrowed its profit estimate for 2011.
Humana Inc. (HUM) predicted sales of Medicare Advantage plans
for 2012 would be somewhat higher than previously expected.
InfoSpace Inc. (INSP) said it agreed to acquire tax-preparation
company TaxACT for $287.5 million in cash, giving the Internet
search company new exposure to the growing online tax-preparation
market.
Jones Group Inc. (JNY) is shelving plans to sell its jeanswear
division, saying it will instead focus on ownership and normal
operations of the business. The owner of such brands as Nine West,
Jones New York and RachelRoy last year had been exploring a
potential sale of the business to private-label apparel maker Delta
Galil Industries Inc. (DELTY, DELT.TV) for between $350 million and
$400 million.
Mistras Group Inc.'s (MG) fiscal second-quarter earnings rose
40% on a sharp increase in products and systems revenue. The
company, which provides software and inspection services to test
and monitor the safety of critical infrastructure, such as nuclear
power plants and bridges, also raised its full-year revenue
estimate.
Motorola Mobility Holdings Inc. (MMI) predicted it was modestly
profitable excluding one-time items in the fourth quarter on sales
of about $3.4 billion, saying mobile-device competition increased
along with its legal costs.
Regis Corp. (RGS), the parent of haircut chains such as
Supercuts, reported fiscal second-quarter revenue that missed
analysts' expectations, saying its same-store sales came in lower
than expected.
TranSwitch Corp. (TXCC) said its fourth-quarter revenue will be
lower than previously expected due to a contractual dispute on a
service agreement with a North American customer. The company said
it now expects revenue of about $6.3 million, down from its
November projection of about $7 million.
United Technologies Corp.'s (UTX) Carrier business and GD Midea
Holding Co. (000527.SZ) agreed to form an air conditioning
manufacturing and distribution venture in India, a deal that will
grow the companies' international partnerships and help them
increase manufacturing scale.
Brazilian miner Vale SA (VALE, VALE5.BR), said Monday that heavy
rains are leading to "momentary halts" in production at its iron
ore mines in Minas Gerais state, south east Brazil.
Zep Inc.'s (ZEP) fiscal first-quarter earnings slumped 28% as
revenue slipped more than expected and higher raw material costs
outpaced the cleaning-products maker's ability to raise prices for
its products.
-Edited by Ian Thomson and Maya Pope-Chappell; write to
ian.thomson@dowjones.com and maya.pope-chappell@dowjones.com
