Archive for June, 2011

Regeneron Pharmaceuticals Inc. (REGN) jumps on OK for eye drug

Wednesday, June 15th, 2011

Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) shares rose 8.4% to $59.65 after U.S. regulators had released a report saying its experimental treatment prevents a cause of vision loss. Volume for the stock registered 1.29 million, just outdistancing its all-day average of 1.24 million.

The Food and Drug Administration said the company’s drug, VEGF Trap-Eye, worked as well as Roche (RHHBY.PK)‘s Lucentis in treating an eye condition that is the leading cause of blindness in American seniors.’

On Friday, an outside panel of experts will vote on whether the drug should be approved. The FDA is not required to follow the group’s advice, though it often does.
Analysts have high expectations for Regeneron’s drug because it designed to be injected less frequently than Lucentis: once every two months, versus once a month.

Dr. Michael Aberman, Regeneron’s vice president of strategy and investor relations, was quoted in a Forbes article on June 15 as saying, “It’s a big deal for patients and caregivers if you can get less frequent injections in the eye. It’s a great advancement in quality of life and compliance.”

The FDA said studies of VEGF Trap-Eye showed it worked as well as Lucentis in maintaining patients’ vision after one year of treatment.

If approved, VEGF Trap-Eye will be the first drug to compete with Roche’s Lucentis, which posts sales of about $1.5 billion annually.

Founded on the principle that strong science would lead to important new medicines, according to the company website, the Tarrytown, New York-based Regeneron has become an integrated biopharmaceutical company that discovers, develops, and commercializes medicines for the treatment of serious medical conditions.

DST Systems Inc. (DST) races ahead on word of several suitors

Wednesday, June 15th, 2011

DST Systems Inc. (NYSE: DST) shares gained 14.2% to $55.19 after Reuters reported that the accounting-software company had drawn interest from private equity firms in recent months. Volume for the stock was 1.5 million shares, compared to an all-day average of 288,000.

The exclusive story that broke this morning quoted sources close to the situation as saying the Kansas City-based DST had received several buyout overtures from private equity firms in recent months, including one led by activist investor Russell Glass.

Glass, founder and head of New York investment firm RDG Capital, told Reuters he had teamed up with a private equity firm and approached DST management within the last 30 days to talk about a buyout of the diversified data processing company in the mid-$60s per share range.

DST also held discussions in March and April with another private equity firm that was also eyeing a mid-$60s price range, a source close to the situation said.

The news agency also quotes Glass as saying he was rebuffed by DST management on grounds that the company did not want to sell while it is grossly undervalued.

The other private equity firm had also been rejected, while the mid-$60s range appears to be the starting point, said the source, adding, “You have to be prepared to bump or compete with other buyers.”

The source requested anonymity because the talks are not public. A DST spokeswoman declined to comment.

DST Systems, Inc. provides sophisticated information processing and computer software products and services to support the mutual fund, investment management, insurance and healthcare industries.

EMS Technologies Inc. (ELMG) has honey of a day on Honeywell deal

Monday, June 13th, 2011

EMS Technologies Inc. (Nasdaq: ELMG) shares gained 32.3% to $32.82 Monday, after Honeywell International Inc. (NYSE: HON) said it would acquire the maker of wireless-communications products for $33 a share. Volume for EMS stock topped the 4.7-million mark, far greater than its daily average of just above 80,000 shares.
Under the terms of the agreement, which has been unanimously approved by both companies’ Boards of Directors, a wholly-owned subsidiary of Honeywell will commence a tender offer within ten business days to purchase all of EMS’s outstanding shares for $33.00 per share in cash. The transaction represents a 33% premium to EMS’s closing stock price on June 10, and a 59% premium to EMS’s closing price on April 18, one day prior to the Company’s announcement that it was reviewing strategic alternatives.

The Board of Directors of EMS will recommend that EMS shareholders tender their shares in the tender offer. The transaction, which is subject to successful completion of the tender offer, regulatory approval and customary closing terms and conditions, is expected to be completed in the third quarter of 2011.

“This announcement is the culmination of the robust strategic review process we have been engaged in since April,” said Jack Mowell, Chairman of EMS’s Board of Directors in the June 13 press release trumpeting the deal. “With the assistance of experienced outside advisors, we determined that this transaction is the best way to maximize value for our shareholders.”

EMS, located in Norcross, Georgia, keeps people and systems connected – on land, at sea, in the air or in space. EMS offers industry-leading technology to support Aero Connectivity and Global Resource Management markets though a broad range of cutting-edge satellite and terrestrial network products; helping businesses, assets and people stay connected and promoting universal mobility, visibility and intelligence

Timberland Co. (TBL) races north on VF takeover

Monday, June 13th, 2011

Timberland Co. (NYSE: TBL) shares jumped 42.6% to $42.76 Monday after clothing-brand owner VF Corp. (NYSE: VFC) said it would acquire the shoe seller. Volume for Timberland neared 13 million shares in the first two hours of trading Monday, routing an all-day average of 717,303.

The announcement came down early Monday that VF, a leader in branded lifestyle apparel, will pay Timberland shareholders $43 per share, representing a total enterprise value of approximately $2 billion net of cash acquired. The merger agreement was unanimously approved by both companies’ Boards of Directors.

In the June 13 press release outlining the details surrounding the purchase, VF CEO Eric Wiseman exulted, “the Timberland® brand is synonymous with high quality outdoor footwear and apparel.

Wiseman continued, “This will be a winning combination, leveraging VF’s international and direct-to-consumer platforms to drive growth in the Timberland® and Smartwool® brands globally. At the same time, VF will benefit from Timberland’s rugged outdoor footwear expertise, international penetration in markets such as Japan, and leadership position in sustainability.”

Concurred Timberland CEO Jeffrey Swartz in the same release, “Timberland is proud of its rich heritage, its track record of success and its reputation as a responsible and environmentally-conscious global citizen, all of which will be preserved and enhanced by becoming part of the VF family of brands.”

Headquartered in Greensboro, North Carolina, VF Corporation is a global leader in branded lifestyle apparel with more than 30 brands, including Wrangler®, The North Face®, Lee®, Vans®, Nautica®, 7 For All Mankind®, and Splendid®.

Based in Stratham, New Hampshire, Timberland is a global leader in the design, engineering and marketing of premium-quality footwear, apparel and accessories for consumers who value the outdoors and their time in it. Timberland markets products under the Timberland®, Timberland PRO®, Mountain Athletics®, SmartWool®, Timberland Boot Company® and howies® brands, among others.

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) has beautiful bottom line, stock hikes

Wednesday, June 8th, 2011

Ulta Salon, Cosmetics & Fragrance Inc. (Nasdaq: ULTA) shares gained 8.7% to $53.92, a day after the beauty-products maker posted better-than-expected first-quarter results. Volume for the stock topped 1.9 million shares, towering over a daily average of 639,000.

Tuesday, Ulta, based in Bolingbrook, Ill., announced comparable store sales (sales for stores open at least 14 months) increased 11.1% in the period ended April 30, 2011, compared to an increase of 10.8% in the first quarter of fiscal 2010. Net income increased 70.5% to $23.3 million compared to $13.7 million in the first quarter of fiscal 2010.

In the June 7, 2011 press release which divulged these numbers, Ulta CEO Chuck Rubin commented, “We had a terrific start to the year with total sales, comparable store sales and net income per share solidly ahead of our guidance, demonstrating the ongoing preference of our beauty experience and the continued success of our growth strategies.

Rubin continued, “Our first quarter results included net sales growth of 20.6% driven by an 11.1% increase in comparable store sales and the expansion of our store base. Operating income grew faster than sales climbing 67.4% from the first quarter last year to 10.1% of net sales. During the quarter, we gained market share advancing each of the priorities we set at the beginning of the year. To this end, we were pleased with our new store performance and remain on track to expand square footage by 16% this year.”

Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States.