CHICAGO, Aug. 1, 2012 /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 Regeneron Pharmaceuticals Inc. (Nasdaq:REGN), AFLAC Inc. (NYSE:AFL), Morgan Stanley (NYSE:MS), Unum Group (NYSE:UNM) and Employers Holdings Inc. (NYSE:EIG).
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Here are highlights from Tuesday's Analyst Blog:
Regeneron Gets CRL
Regeneron Pharmaceuticals Inc. (Nasdaq:REGN) recently suffered a setback in its efforts to expand the label of its drug Arcalyst. The US Food and Drug Administration (FDA) declined to approve Arcalyst for preventing gout flares in patients initiating uric acid-lowering therapy on the basis of the submitted data.
The US regulatory body issued a complete response letter (CRL) to the company after reviewing the supplemental biologics license application (sBLA) for Arcalyst submitted last year. While issuing the CRL, the FDA asked for additional data, apart from additional Chemistry, Manufacturing and Controls (CMC) information related to a proposed new dosage form. Regeneron is currently reviewing the contents of the CRL.
We note that Arcalyst is available in the US since 2008 as an injection for subcutaneous use for the treatment of cryopyrin-associated periodic syndromes (CAPS), a group of rare genetic inflammatory conditions, including familial cold auto-inflammatory syndrome and Muckle-Wells Syndrome. The drug is marketed for treating adults and children 12 years and above.
Regeneron has two more action dates this year. The FDA is expected to decide on whether to approve its pipeline candidate Zaltrap for treating previously treated patients suffering from metastatic colorectal cancer by August 4, 2012.
The other action date corresponds to Regeneron's efforts to expand the label of its other marketed product – Eylea. Regeneron is looking to get eye-drug Eylea approved for central retinal vein occlusion in the US (action date: September 23). Regeneron would be hoping for positive news from the FDA on those two dates. Moreover, multiple pipeline related news is expected in 2012.
Aflac Prices Notes Worth $250M
In a concerted effort to fortify its financials, AFLAC Inc. (NYSE:AFL) has increased the size of its debt issuance. The company said that it has priced senior unsecured notes worth $250 million. This follows a $400 million offering that was issued on February 10, 2012.
The $250 million long-term unsecured notes, due in 2017, will be issued at a price of $103.105. They bear a coupon rate of 2.65% with yield of 1.932%. The proceeds from the issue of this debt will be used to finance the company's daily operations. Additionally, it might be used to augment the capital position of Aflac's subsidiaries.
According to a Reuters report, Morgan Stanley (NYSE:MS) is the bookrunning manager for the sale of these notes. Following the news, Aflac's shares gained 5.3% over last Thursday's closing price of $41.48.
A.M. Best Co. conferred a rating of "a-" to the senior unsecured notes issued by Aflac, with a stable outlook. The rating agency has not changed the existing issuer credit and debt ratings. It expects the company's interest coverage to remain over 10x and financial leverage to stay below 25%.
The rating comes on the back of the company's leading position in both Japan and the U.S., further strengthened by growth in sales, improved earnings and satisfactory risk-adjusted capital ratios maintained since 2011. However, certain impairments in Aflac's investment portfolio continue to blemish the positives.
Aflac recently announced its second quarter 2012 operating earnings per share of $1.61, which came in line with the Zacks Consensus Estimate, but surpassed the year-ago quarter's earnings of $1.55. Operating earnings climbed 3.9% year over year to $755 million. A stronger yen/dollar exchange rate boosted the operating earnings by 1 cent per share.
The company seems to be in a formidable position currently and is well prepared to face its competitors such as Unum Group (NYSE:UNM) and Employers Holdings Inc. (NYSE:EIG).
Both Unum and Employers Holdings are slated to release their second quarter earnings on August 1 and August 7, respectively. According to the Zacks Consensus Estimate, Unum is expected to report operating earnings of 76 cents a share, while Employers Holdings is projected to report 3 cents per share.
Aflac currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also maintain a long-term Neutral recommendation on its shares.
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