Business & Finance
Business and Finance
Business and Finance
Thu, July 1, 2010 3M, Forest Laboratories, Pfizer, Rambus and General Electric
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: 3M Co. (NYSE: [ MMM ]), Forest Laboratories, Inc. (NYSE: [ FRX ]), Pfizer (NYSE: [ PFE ]), Rambus Inc. (Nasdaq: [ RMBS ]) and General Electric Company (NYSE: [ GE ]).
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Here are highlights from Wednesdaya™s Analyst Blog:
3M Guides Second Quarter Sales
3M Co. (NYSE: [ MMM ]) announced its second quarter 2010 sales guidance of $6.6 billion to $6.75 billion, reflecting organic growth of 16% to 18% compared with the second quarter of 2009.
The median of the companya™s guidance is above the Zacks Consensus Estimate of $6.58 billion.
For the first quarter of 2010, 3M reported revenues of $6.3 billion and earnings from continuing operations of $1.40 per share, exceeding the Zacks Consensus Estimate of $1.21. During the quarter, the company experienced a double-digit growth in each of its six business segments: Display and Graphics, Electro and Communications, Industrial and Transportation, Safety, Security and Protection Services, Consumer and Office and Health Care.
The company has also shown double-digit expansion in all geographic regions. Results were the strongest in the emerging economies, where sales grew by 47% versus the first quarter of 2009.
Forest Labsa™ Pain Drug Fails
Forest Laboratories, Inc. (NYSE: [ FRX ]) recently suffered a setback when its mid-stage pain drug candidate failed to achieve the primary endpoint in a phase II study. Radiprodil (RGH-896) is being developed under a collaboration agreement with Gedeon Richter.
Top-line results demonstrated that radiprodil failed to show statistically significant or clinically meaningful reductions in the primary endpoint (mean daily pain scores) compared to placebo.
The results were presented from a placebo and positive comparator-controlled, parallel-arm, double-blind, dose-response study that was conducted to evaluate the candidate for the treatment of neuropathic pain associated with diabetic peripheral neuropathy.
Three doses (15mg, 30mg, and 45mg) of radiprodil were evaluated in the study which was conducted with 458 patients who were randomized to receive either radiprodil, or Pfizera™s (NYSE: [ PFE ]) Lyrica or placebo.
Following these disappointing results, Forest Labs and Gideon intend to review the entire database before deciding on the future development path for the candidate. We would not be surprised to see Forest Labs discontinue development of the candidate.
We note that Forest Labs is developing another candidate in collaboration with Gideon. Cariprazine (RGH-188) is being studied for the treatment of schizophrenia, bipolar mania and other psychiatric conditions. The candidate is currently in phase III studies for schizophrenia and bipolar mania disorder.
Rambus Signs Licensing Deal with GE
Chip interface technology and architecture licensing company Rambus Inc. (Nasdaq: [ RMBS ]) announced that it has signed a licensing agreement with GE Lighting, a unit of General Electric Companya™s (NYSE: [ GE ]) Appliances & Lighting business, for the enhancement of LED (light emitting diode) products.
As per the agreement, GE Lighting will license Rambusa™ patented processes and technologies for manufacturing its own LED lighting solutions. Rambusa™ lighting innovations will therefore enable GE to create a new generation of advanced LED-based lighting products specifically targeted at architectural and commercial applications.
Though financial terms were not disclosed, we believe Rambus is well positioned as a key player to meet the escalating demand for LED lighting technology.
LED as a lighting source has evolved as a substitute for incandescent light sources with proven advantages like lower energy consumption, longer lifetime, smaller size, faster switching, and greater durability and reliability. The major downside to the technology is the significantly higher initial price.
However, the technology continues to evolve, with significant advancements in brightness of the LED devices that would make them all the more suitable for the lighting revolution. Rambusa™ entry into this $100 billion LED chip market is an attempt to capitalize on the opportunities that continue to unfold in the LED lighting market.
In keeping with its growth strategy, Rambus had stepped into the Lighting and Display Technology business in 2009, which was a vertical shift influenced by its traditional licensing business.
Notably, Rambus strengthened its new business area with the acquisition of a portion of Uni-Pixel's intellectual property portfolio in the beginning of the year. The portfolio comprises dynamic backlighting based on Time Multiplexed Optical Shutter (TMOS) display technology. The TMOS display technology can be applied to modern LCD display panels to create more efficient and cost-effective devices.
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