CHICAGO, Sept. 16, 2014 /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 the Merck KGaA (OTC:MKGAF-Free Report), Lannett Company, Inc. (NYSE:LCI-Free Report), Avanir Pharmaceuticals, Inc. (Nasdaq:AVNR-Free Report), Anacor Pharmaceuticals, Inc. (Nasdaq:ANAC-Free Report) and Helen of Troy Limited (Nasdaq:HELE-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Merck KGaA Stops All Tecemotide Studies for Lung Cancer
Merck KGaA's (OTC:MKGAF-Free Report) biopharmaceutical division, Merck Serono, announced that it will discontinue all studies on its cancer immunotherapy candidate, tecemotide (L-BLP25), as a monotherapy for non-small cell lung cancer (NSCLC). The company intends to focus on the development of other oncology candidates including MSB0010718C.
Tecemotide was in two phase III studies − START2 and INSPIRE − for the treatment of unresectable, locally advanced stage III NSCLC.
Merck KGaA's decision to discontinue all studies on tecemotide in NSCLC was based on results from a randomized, double-blind, placebo-controlled phase I/II study (EMR 63325-009) on tecemotide. Merck KGaA said that a planned analysis of the EMR 63325-009 study in Japanese patients with stage III unresectable, locally advanced NSCLC, who had received concurrent or sequential chemoradiotherapy, showed disappointing results.
This lowered tecemotide's chances of achieving the objectives in ongoing studies. The company has voluntarily stopped experimental treatment of the patients in the EMR 63325-009 study in Japan.
We remind investors that Merck KGaA had initiated the START2 study based on the results of an exploratory analysis of a patient subgroup in an earlier study (START) on tecemotide. Notably, tecemotide had failed to meet the primary endpoint of overall survival in the START study.
However, Merck KGaA will continue to supply tecemotide to the sponsors of other investigator-sponsored studies in other indications.
Meanwhile, MSB0010718C is in a multi-center, single-arm, open-label phase II study in patients suffering from metastatic Merkel cell carcinoma who have previously received one line of chemotherapy. Additionally, MSB0010718C is being evaluated in a phase I study for the treatment of solid tumors.
Merck KgaA carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Lannett Company, Inc. (NYSE:LCI-Free Report), Avanir Pharmaceuticals, Inc. (Nasdaq:AVNR-Free Report) and Anacor Pharmaceuticals, Inc. (Nasdaq:ANAC-Free Report). While Lannett carries a Zacks Rank #1 (Strong Buy), Avanir and Anacor hold a Zacks Rank #2 (Buy).
Helen of Troy Slips to Strong Sell After Guidance Cut
Zacks Investment Research downgraded Helen of Troy Limited (Nasdaq:HELE-Free Report) to a Zacks Rank #5 (Strong Sell) on Sep 13, following a cut in the fiscal outlook.
Why the Downgrade?
Helen of Troy has been witnessing downward estimate revisions since cut its fiscal 2015 outlook earlier this month. It also reported sluggish first quarter fiscal 2015 earnings due to soft sales and weak margins.
On Sep 3, 2014, Helen of Troy slashed its fiscal 2015 outlook. A weak retail environment and sluggish growth in the Personal Care segment prompted Helen of Troy to lower its outlook. The company now expects fiscal 2015 sales in the range of $1.275 to $1.30 billion, down from $1.325 to $1.375 billion expected previously during the first-quarter fiscal 2015 conference call reported in July 2014. Earnings per share are now expected in the range of $4.55 to $4.65 lower than $5.15 to $5.25 as expected earlier. (Read: Helen of Troy Lowers FY View on Weak Retail Conditions.)
Helen of Troy also issued a bleak outlook for second-quarter fiscal 2015. The company expects net sales in the range of $291 to $294 million compared with $319.4 million reported a year ago. The company expects earnings per share in the range of 79 to 82 cents compared with 72 cents in second-quarter 2013.
The company has been witnessing weak earnings and sales trends for the past few quarters due to tough retail conditions, slower store traffic and mass market retail sales at large retail outlets. The Personal Care segment has experienced soft results and its decline has accelerated recently.
In the first-quarter of fiscal 2015, the company posted disappointing revenues due to soft sales in the Personal Care segment. Earnings of 83 cents also lagged the Zacks Consensus Estimate by 12.6% due to lower-than-expected revenues. (Read: Helen of Troy Misses Q1 Earnings & Revs Ests.)
Management has taken several strategic initiatives to improve sales in the Personal Care segment. However, the initiatives are expected to take some time to yield results.
Almost all the estimates for fiscal 2015 were revised downward following cut in fiscal 2015 outlook. The Zacks Consensus Estimate for second-quarter 2015 slipped 21.7% to 65 cents per share from 85 cents over the last 30 days. IFor fiscal 2015, the Zacks Consensus Estimate slipped 10.4% to $3.94 per share over the same time frame.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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