Trading Alerts

Shutterfly Discusses Q2 Results and Outlook; Falls to New 52-Week Low

OTCBlog — Fri, 01 Aug 2008 01:30:00 GMT

FRIDAY, AUGUST 1, 2008..... Wall Street sank Thursday, after weak readings on economic growth and the job market touched off renewed concerns about the financial health of businesses and consumers. The Dow Jones industrial average fell more than 200 points. The Commerce Department's report that gross domestic product grew at a 1.9 percent pace in the second quarter disappointed investors. Economists polled by Thomson Financial/IFR had expected growth of 2.4 percent in the broad measure of the economy's health. Investors were also concerned about Labor Department data saying that the number of people seeking jobless benefits jumped to the highest level in five years. Economists warned the weekly figures can be volatile, however, and some dismissed them as an aberration. A $4.5 billion cash offer from Bristol-Myers Squibb Co. for its cancer drug partner ImClone Systems Inc. kept the Nasdaq composite index from falling as sharply as other indexes. In other positive news, oil prices declined, and an index of Midwestern business activity indicated growth. But Wall Street could not shake off its worries about the economy -- particularly after sobering remarks from Former Federal Reserve Chairman Alan Greenspan on CNBC late in the afternoon. Greenspan said he would be more surprised if the United States did not enter recession than if it did. The comments came after Treasury Secretary Henry Paulson said in a speech in Washington that the economy will continue to grow at a moderate pace for the rest of the year, and the government's $168 billion stimulus package had helped grease the economy's wheels.

But Larry Smith, chief investment officer at Third Wave Global Investors in Greenwich, Conn., said tightness in credit markets and high oil prices continue to weigh on the economy and the stimulus package won't deliver a permanent fix. "Tax rebates have been a very effective way of propping up the economy in the second quarter, and less so in the third quarter," Smith said. "To fix the economic growth problems, you have to restore liquidity to the system." According to preliminary calculations, the Dow Jones industrial average fell 205.67, or 1.78 percent, to 11,378.02, continuing its string of erratic, triple-digit daily swings. Broader stock indicators also declined. The Standard & Poor's 500 index fell 16.88, or 1.31 percent, to 1,267.38, while the Nasdaq fell 4.17, or 0.18 percent, to 2,325.55. During the month of July, the Dow inched up 0.25 percent, the S&P fell 0.99 percent, and the Nasdaq rose 1.42 percent. It was certainly a better showing than in June, during which the Dow dropped 10.19 percent, the S&P fell 8.60 percent, and the Nasdaq lost 9.10 percent.

Bond prices jumped following the economic readings. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.95 percent from 4.05 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose. Light, sweet crude fell $2.69 to settle at $124.08 a barrel on the New York Mercantile Exchange after rising more than $4.50 on Wednesday. Oil has fallen more than $20 since hitting a high above $147 on July 11, raising hopes that inflation pressures could ease. Thursday's stock market pullback follows bets investors made this week that the beaten-down financial sector would rebound and that the Labor Department's employment report on Friday would show a less gloomy jobs market. But other stock rallies have fizzled in recent weeks. Investors have remained concerned about the housing and credit markets, the health of financial companies and the effect of high commodities prices.

The latest GDP reading, which reflected consumers cashing tax rebate checks, still shows the economy grew at a faster pace than the weak 0.9 percent seen in the first quarter. But revised numbers also revealed for the first time that the economy shrank in the fourth quarter last year. The mixed economic figures are making it hard for investors to have much conviction, observers say. "I think in the short run, it's going to be a tug-of-war between the optimists and the pessimists," said Jack Caffrey, equities strategist at JPMorgan Private Bank. "I think both sides are going to be able to find enough information to support their case." At some point one side will give in, he said. "The challenge is, you can't identify what the catalyst is that will change psychology."

Investors sifted through a flurry of quarterly profit reports for clues about the economy. Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion, the largest quarterly profit ever by a U.S. corporation. But the per-share earnings fell well short of Wall Street's forecast, which assumed that record crude prices would push earnings even higher. The stock fell $3.95, or 4.7 percent, to $80.43 and weighed on the Dow industrials. The Walt Disney Co. fell $1.32, or 4.2 percent, to $30.35 after the company reported a slowdown in the U.S. advertising market in the current quarter and weak box office results in the period that ended in June. Motorola Inc. jumped 96 cents, or 12.5 percent, to $8.64 after posting a surprise profit for its second quarter. The company said it shipped more cell phones than in the first quarter.

Eastman Kodak Co. reported a second-quarter profit but the results missed Wall Street's forecast. The stock declined $1.13, or 7.2 percent, to $14.64. In other news, Wall Street applauded Bristol-Myers' offer $60 per share for ImClone, a 30 percent premium to ImClone's closing price of $46.44 Wednesday. Bristol-Myers, which already owns about 17 percent of ImClone, is a U.S. partner for the colon and head and neck cancer drug Erbitux. ImClone surged $17.49, or 37.7 percent, to $63.93. Bristol-Myers slipped 39 cents to $21.12. Declining issues outpaced advancers by about 3 to 2 on the New York Stock Exchange, where volume came to 1.45 billion shares.

Top Stories

Shutterfly Discusses Q2 Results and Outlook;
Falls to New 52-Week Low
Shares of Shutterfly, Inc. (SFLY) hit a new 52-week low on Thursday after the Company reported second quarter 2008 financial results for the period ended June 30, 2008. Net revenues totaled $35.4 million, a 19% year-over-year increase. GAAP net loss per diluted share was $(0.16), as compared to $(0.10) in Q2 2007. The Company’s financial expectations for the third quarter included net revenues to range from $33 million to $36 million and GAAP diluted loss per share to range from ($0.15) to ($0.30). For FY08, the Company expects net revenues to range from $225 million to $240 million and GAAP diluted income per share to range from $0.01 to $0.20. On a non-GAAP basis, diluted income per share is expected to range from $0.30 to $0.50. Jeffrey Housenbold, President and CEO of Shutterfly, explained in a conference Wednesday night, "Despite a tough economic enviroment, we delivered our 30th consecutive quarter of year-over-year revenue growth and better-than-expected gross and net margins. While we are not satisfied with our top line growth, we are confident that our compelling suite of products and services and continued innovation positions us well to continue leading in these early and large markets." "We are focused on improving free cash flow in a sustained and long term manner. During the first half of 2008, and especially Q2, we are beginning to realize leverage in our business model. This leverage and our disciplined expense management demonstrates that we can achieve sustained margin improvement in a competitive marketplace." Mr. Housenbold added, "We continue to build for the future. We are strengthening our brand and franchise, and we are innovating with new products and services to increase our customers’ loyalty and evangelism of Shutterfly. We are also incubating a sponsorship in advertising and commercial printing business. If successful, both initiatives have the potential to deliver new revenue streams, higher margins and increased free cash flow." "we are making smart and well-considered decisions that balance both the short and long term objectives. We are building on our market leadership by investing in products, services, people and processes. We are demonstrating strong fiscal and operational discipline, and we are subjecting every aspect of the business to intense cost management scrutiny." Mark Rubash, CFO of Shutterfly, added, "We have been working very hard to insure that every dollar goes to its highest and best use. As evidenced by our improved profitability this quarter, these efforts are beginning to yield sustainable operating leverage. We are improving our manufacturing cost structure; increasing our use of outsourcing; implementing more efficient production techniques; and leveraging our scale across all of our materials and shipping vendors. On the technology side, we have improved our platform architecture; integrated new storage solutions; and organized for rapid innovation and development cycles. We have also optimized our sales and marketing initiatives." He concluded, "Although we don’t know how long these economic conditions will continue, we are confident in our strategy. We will continue to build on our long track record of industry-leading innovation, quality and execution." Piper Jaffray downgraded SFLY to Neutral from Buy and cut the price target to $10 from $18. The firm said it downgraded the shares to reflect slower consumer spending and the high negative operating leverage implied in Q3 guidance. Intellect Neurosciences Obtains EU Patent re ANTISENILIN(R) Monoclonal Antibody Intellect Neurosciences, Inc. (ILNS) has obtained a European patent relating to the Company’s ANTISENILIN(R) monoclonal antibody platform for the treatment of Alzheimer’s disease. The claims of the issued patent cover the ANTISENILIN(R) "free-end specific" antibodies that bind to beta amyloid and use of the antibodies in preventing or inhibiting the progression of Alzheimer’s disease. The technology is designed to promote the clearance of beta amyloid which accumulates to reach toxic concentrations in the brains of Alzheimer’s patients while reducing the potential for adverse side-effects. Importantly, such drugs avoid binding and thereby potentially interfering with the functions of the Amyloid Precursor Protein, which is an important physiological regulator in the body implicated in controlling essential brain functions as well as blood coagulation. The Company has granted a royalty-bearing license to Wyeth and Elan Pharma International Ltd. regarding patents and patent applications related to antibodies and methods of treatment for Alzheimer’s disease, including Bapineuzumab, currently in Phase 3 clinical trials.

Today's Headlines

MANAGEMENT COMMENTS ON RECORD Q2 EARNINGS: Shares of iCAD, Inc. (ICAD) were higher on Thursday after the Company reported record financial results for the three months ended June 30, 2008. Total revenue for the second quarter of 2008 was $10.5M, a 73 percent increase compared with total revenue of $6.1M for the second quarter of 2007. The Company posted net income of $2.4M, or $0.06 per basic share, compared with a net loss of ($866,000) or ($0.02) per basic share in the second quarter of 2007. The Company expects total revenue for the second half of 2008 to be in the range of $21M to $22M. On a full year basis, total revenue is projected to be in the range of $38M to $39M. The Company also expects to achieve second half gross margins consistent with or better than Q2 of 2008 of 83.6 percent, and anticipates operating expenses for the second half to be between $14.5M and $15.3M and weighted more heavily in the fourth quarter. Darlene Deptula-Hicks, Executive Vice President and CFO of iCAD, commented in a conference call, "We delivered extraordinary revenue growth this quarter along with strong bottom line earnings and positive cash flow. These record results represent our eighth consecutive quarter of comparative financial improvement." Ken Ferry, iCAD’s President and CEO, added, "These results underscore that our growth strategy and financial controls are on track in delivering meaningful results. We believe that we are well-positioned to take the business to the next level of growth and continued profitability for the rest of 2008 and beyond." "Even with this continued strong growth, only 38% of U.S. mammography systems have converted to digital technology, leaving considerable room for growth in the coming years. In addition, our international business demonstrated strong growth this quarter. In the first half of 2008, our international business has nearly doubled versus last year," noted Mr. Ferry. He concluded, "Our goal moving forward is to deliver strong net earnings in the low-to-mid teens range, while increasing investment in new business segments. In achieving this balance, we believe that we can expand our addressable market in a timely manner and sustain our growth in earnings trajectory."

ENTERS AGREEMENT TO ACQUIRE FIVE COMMUNITIES FOR $62.5M: Emeritus Corporation (ESC) has entered into an agreement to acquire five communities currently leased by the Company for a purchase price of $62.5 million, plus estimated closing costs of approximately $2.8 million. The five communities are comprised of 432 units and are located in Ohio, Florida, California and Michigan. The Company intends to finance this transaction through mortgage debt equal to approximately 75% of the purchase price, seller-provided financing of $10.0 million, and the balance from the refund of certain security deposits and cash on hand. The seller-provided financing is for a term of 3 years at an annual interest rate of 8.0%, increasing annually by 25 basis points, and monthly payments equal to accrued interest plus a $40,000 monthly principal payment.

ACQUIRES TIAPAMIL COMPOUND: Ore Pharmaceuticals Inc. (ORXE) has acquired from Roche the clinical-stage compound tiapamil. Ore Pharmaceuticals had previously identified potentially novel therapeutic uses for tiapamil in central nervous system (CNS) disease and recently filed for patent protection regarding the use of the compound. The Company plans to further develop tiapamil, and will select the most appropriate of several potential indications, prepare for Phase II clinical trials, and initiate out-licensing activities.

COURT ISSUES MARKMAN ORDER IN LITIGATION: Cabot Microelectronics Corporation (CCMP) announced that the United States District Court for the District of Arizona issued its patent claim construction, or "Markman" Order, in Cabot Microelectronics’ ongoing patent infringement litigation against DuPont Air Products NanoMaterials, LLC. In a Markman ruling, a district court hearing a patent infringement case interprets and rules on the scope and meaning of disputed patent claim language regarding the patents in suit. In the recently issued Markman Order, the Court adopted interpretations that Cabot Microelectronics believes are favorable to Cabot Microelectronics on all claim terms that were in dispute in the litigation. The litigation involves DA Nano’s manufacture and marketing of certain CCMP slurries that the Company believes infringe five patents owned by Cabot Microelectronics. The affected DA Nano products include certain products used for tungsten CMP. Cabot Microelectronics is seeking damages and injunctive relief against DA Nano in the litigation.

ANNOUNCES ACQUISITION: Ness Technologies, Inc. (NSTC) has signed a share purchase agreement to acquire 100% of the shares of Logos a.s., a privately-held, Czech-based leading IT services and consulting company. For the fiscal year ended March 31, 2008, Logos generated revenues of EUR29.7 million and was profitable. Logos has approximately 570 employees.

AWARDED 18.2M EURO MAINTENANCE AND REPAIR CONTRACT: Telvent (TLVT) has been awarded with the Maintenance and Repair of the Electronic Toll Registry System for the MTA Bridges and Tunnels E-ZPass System. The contract is valued at approximately 18.2 million euros. The contract involves the upgrade, enhancement, and maintenance of an E-ZPass electronic toll collection system, with electronic E-ZPass and manual collection lanes. Telvent will implement its Remote Operations and Maintenance System (ROMS), an operations and maintenance monitoring tool, which will improve maintenance and operations efforts, further increasing system availability for MTA Bridges and Tunnels E-ZPass patrons.

Align Technology Plunges to 52-Week Low on Lower Guidance; Launches Invisalign Teen(TM)

OTCBlog — Thu, 31 Jul 2008 13:30:00 GMT

THURSDAY, JULY 31, 2008..... Wall Street soared for the second straight day Wednesday, rallying in the last hour of trading after a rebound in financial stocks and optimism about private sector jobs. Investors brushed off a sharp jump in oil prices. The Dow Jones industrials rose more than 180 points, bringing its two-day gain to more than 450. Bank and brokerage stocks, many trading at multiyear lows, turned higher and led the late advance. There was some relief in the market after the Federal Reserve said it would extend and expand its program to lend money to investment banks. The central bank's move reassured the market that the banks would have cash if they needed it. Investors have been worried that some of Wall Street's biggest names will be slashing prices on more of their assets -- and needing more money -- after Merrill Lynch & Co. unexpectedly announced a $5.7 billion write-down late Monday. "There's a growing sense that what we saw out of Merrill Lynch is the beginning of the end for the financial cleanup," said Craig Peckham, market strategist at Jefferies & Co. He added that the ADP number was also a good sign for the economy. Earlier, Automatic Data Processing said private sector employment rose by 9,000 this month. After seeing jobs disappear by the thousands in recent months, the stock market is eager for any insights into the Labor Department's take on the job market on Friday. The ADP news helped offset a big spike in the price of oil after a weekly Energy Department report on domestic supplies showed a surprise increase. Israeli Prime Minister Ehud Olmert's announcement that he plans to resign in September stirred concerns about the viability of Middle East peace efforts and rising tensions with Iran. Light, sweet crude rose $4.58 to settle at $126.77 on the New York Mercantile Exchange. Oil has fallen sharply, however, since hitting a high above $147 on July 11. A drop in oil prices Tuesday contributed to a huge gain on Wall Street.

The late rally may also have been due to technical trading; in times of great volatility, many institutional investors start adjusting their holdings before the closing bell. According to preliminary calculations, the Dow rose 186.13, or 1.63 percent, to 11,583.69. On Tuesday, the blue chips jumped 266 points, more than wiping out a nearly 240-point loss from the previous session. Broader stock indicators also surged. The Standard & Poor's 500 index advanced 21.06, or 1.67 percent, to 1,284.26, and the Nasdaq composite index rose 10.10, or 0.44 percent, to 2,329.72. Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to 1.48 billion shares. Bond prices fell as stocks advanced, diminishing demand for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.05 percent from 4.04 percent late Tuesday. The dollar was higher against other major currencies, while gold prices fell.

Shares of Morgan Stanley and Lehman Brothers Holdings Inc. climbed more than 5 percent, while Citigroup Inc. and Merrill Lynch rose about 2 percent. Fannie Mae and Freddie Mac, the government-chartered mortgage companies which together hold or back nearly half of all U.S. mortgage debt, also rose on news of the Fed's latest moves. Fannie Mae advanced 45 cents, or 3.9 percent, to $12.05, while Freddie Mac rose 6 cents to $8.48. Wall Street has been juggling a number of intertwined worries in recent months as it tries to determine where the economy is headed. There is continued concern about bad mortgage debt that many banks are holding because homeowners swept up in the pullback in the housing market are missing mortgage payments.

And the rapid rise in oil and other commodity prices this year has only made it harder for many consumers to keep up with their bills. Any sign of an easing in the credit and housing markets, or a drop in energy prices, offers some investors hope that the economy could begin to recover. Investors are anxious for the government's advance reading on second quarter gross domestic product, which is due Thursday. Economists expect that, while it might not feel like it to many consumers, the economy is still eking out growth. A good chunk of it may be due to government tax rebates. In earnings news, Starbucks Corp. said costs related to its closure of 600 underperforming stores led it to post a loss in its fiscal third quarter. However, it matched Wall Street projections. The Walt Disney Co. said third-quarter profits surged nearly 9 percent thanks to revenue growth at ESPN and strong results from its theme park near Paris, where the weak U.S. dollar was helpful.

Top Stories

Align Technology Plunges to 52-Week Low on Lower
Guidance; Launches Invisalign Teen(TM)
Shares of Align Technology, Inc. (ALGN) fell to a 52-week low on heavy volume Wednesday after the Company reported financial results for the second quarter of fiscal 2008, ended June 30, 2008. Total net revenues for the Q2 of fiscal 2008 were a record $79.9 million. This reflects a year-over-year increase of 4.3 percent compared to $76.6 million in Q2 of 2007. Net profit for Q2 was $4.0 million, or $0.06 per diluted share. This is compared to net profit of $13.6 million, or $0.19 per diluted share in Q2 07, and net profit of $5.3 million, or $0.07 per diluted share in Q1 of 2008. For the third quarter, Align Technology expects net revenues to be in a range of $74 million to $76 million. Non-GAAP earnings per diluted share for Q3 08 is expected to be in a range of $0.04 to $0.06. For fiscal 2008, Align Technology expects net revenues to be in a range of $309 million to $314 million. Non-GAAP earnings per diluted share for fiscal 2008 is expected to be in a range of $0.29 to $0.33. Kenneth B. Arola, CFO of Align Technology, explained in a conference call, "We believe the continuing challenges in the U.S. economy and weak consumer spending will continue. Given this enviroment, we are more cautious about our ability to accelerate growth in our base business over the back half of the year. We are expecting gross margins in the second half of the year to be impacted by about 50 basis points from increases in fuel charges and raw material costs. "We are implementing cost saving measures that include a reduction of 38 full-time headcount and discretionary spending cuts. This will have the effect of reducing expenses by $5 million to $6 million over the second half of the year, while allowing us to continue critical investments in our new products and strategic initiatives. In addition, we plan a phase consolidation of our order acquisition operations from Santa Clara to Juarez, Mexico. We anticipate completing this by the end of 2008. We should realize cost savings from this of $1.0 million-$1.5 million in 2009." Mr. Arola added, "Our outlook for growth is not as robust as we had planned, but in this economic enviroment, we believe it is reasonable. We are committed to delivering shareholder value and are positioning the company for increased growth and profitability as the market improves. The cost saving actions that we announced today are only the first steps in actively reducing our cost structure and moving towards a financial model with greater operating leverage. Beyond this year, as we deliver on product innovation and gain efficiencies, we have a great opportunity to flatten our expense growth and take structural costs out of the business." Thomas M. Prescott, President and CEO of Align Technology, commented, "As a result of economic conditions, we have adopted a more conservative outlook for revenue growth. We are committed to our new investments, but we are reducing overall company spending and slowing headcount growth, while preserving the important investments in strategic priorities. We are confident that we have the right long term strategy." In a separate announcement yesterday, Align announced a new addition to its Invisalign product family: Invisalign Teen(TM) for non-adult, comprehensive orthodontic treatment. Darrell Zoromski, VP of Global Marketing and Chief Marketing Officer of Align Technology, explained in the conference call, "Teenagers are a significant portion of the orthodontics practice. Patients aged 12-17 represent half of all patients. Until now, only a small number of doctors have treated their nonadult patients with Invisalign(R). The most often cited barriers have been patient compliance and the need to accommodate permanent teeth that are still coming in. We have addressed these issues with Invisalign Teen(TM), so that orthodontists will have confidence that they can treat their teen patients successfully with Invisalign." He added, "Our goal over the next six to eighteen months is to gain initial trial among our core orthodontist customers (approximately 3,000 doctors). Orthodontists are conservative by nature and teen cases make up the majority of their cases. We expect the product to ramp gradually over time as orthodontists experience outstanding clinical results with a product that we know can deliver. We expect our share gains to play-out over a number of years. We believe the adoption will significantly accelerate in the long term." Leerink downgraded ALGN to Market Perform from Outperform to reflect the Company’s lowered guidance and cut their target to $9 from $16.

Today's Headlines

SEC TERMINATES FORMAL INVESTIGATION WITHOUT ANY ACTION: The Fort Worth office of the SEC has provided a letter to Exobox Technologies Corp. (EXBX)indicating that the Commission’s formal investigation of the Company and its management commenced in 2006 has been terminated. The Termination Letter states that the Commission’s investigation of the Company, "has been completed as to Exobox Technologies Corp., its Chief Executive Officer, Robert Dillon and its other officers and directors, against whom we do not intend to recommend any enforcement action by the Commission."

TERMINATES CEO; APPOINTS REPLACEMENT: United PanAm Financial Corp. (UPFC) announced the appointment of Jim Vagim as chief executive officer and announced the termination of Ray Thousand as chief executive officer and Stacy Friederichsen as chief operating officer, all effective as of July 25, 2008. Mr. Vagim was formerly President of Westlake Financial, a nonprime automobile finance company of similar size to UPFC, where Mr. Vagim spent more than 20 years in various executive positions until his resignation in 2007.

AWARDED $1.029M CONTRACT FROM DEPT. OF DEFENSE: Intevac Photonics, a division of Intevac, Inc. (IVAC), announced that its DeltaNu business unit has been awarded a $1.029 million contract from the Department of Defense to develop advanced Raman spectroscopy systems for both military and civilian applications. Applications include detection of toxic material and pathogens for the military, and detection of hazardous materials for civilian applications. Under this year-long contract, new capabilities for ultra-sensitive detection and detection at long distances will be developed.

BEGINS PHASE I/II TRIAL: Hollis-Eden Pharmaceuticals, Inc. (HEPH) has commenced a Phase I/II clinical trial with its oral drug candidate APOPTONE(TM) (HE3235) in late-stage prostate cancer patients who have failed hormone therapy and at least one round of chemotherapy treatment. Potential activity of the compound will be measured by standard prostate-specific antigen (PSA) tests and effect on well-established markers of progression free survival (PFS). In addition, the clinical trial will evaluate circulating tumor cell (CTC) enumeration as a marker for effectiveness for tumor treatment. Previous studies have shown that metastatic prostate cancer patients with less than 5 CTCs per 7.5 ml of blood have statistically better survival than patients with greater than 5 CTCs. APOPTONE has been tested in a number of preclinical cancer models and has been shown to date to be active in controlling the incidence, growth and development of new tumors. Hollis-Eden believes that APOPTONE may be directly inducing apoptosis, or cell death, in tumor cells, as opposed to traditional hormone blockade therapies directed at simply interrupting either the synthesis or the signaling of the tumor cell growth through the androgen or estrogen receptor. While hormone blockade therapy can effectively control prostate cancer for a period of time, it will eventually fail and the cancer can continue to grow and spread.

ANNOUNCES PHASE II MEETING WITH FDA: IntelGenx Corp. (IGXT) and Cary Pharmaceuticals Inc. have met with the FDA in an End-of-Phase II meeting for its antidepressant, CPI-300 at which the FDA indicated that it will accept a recently completed pivotal food effect study as sufficient to support a 505(b)(2) NDA submission. After reviewing the study results, the FDA confirmed that it will accept a labeling that the product may be taken without regard to food. With respect to the remaining clinical program, the FDA confirmed that it will require a single-dose, fasting, two-way crossover study vs. the Reference Listed Drug (RLD) to support the 505(b)(2) NDA submission. The companies anticipate that the remaining clinical development will be completed in Q3, 2008 and plan to submit the 505(b)(2) NDA in Q4, 2008.

INITIATES PHASE 2 CLINICAL TRIAL: ARIAD Pharmaceuticals, Inc. (ARIA) has initiated a Phase 2 clinical trial to examine the efficacy and safety of oral deforolimus, its investigational mTOR inhibitor, in patients with advanced breast cancer. In collaboration with Merck & Co. Inc., deforolimus is currently being evaluated in multiple clinical trials, both alone and in combination with other therapies, for the treatment of patients with several different cancer types. Under terms of the agreement, ARIAD will receive a $15 million milestone payment from Merck for treating the first patient in the breast cancer clinical trial. The multi-center, single-arm, Phase 2 study will evaluate oral deforolimus in combination with intravenous trastuzumab (Herceptin(R)) in patients with metastatic, HER2-positive breast cancer who have developed resistance to trastuzumab therapy. The primary endpoint for the study is clinical response to the experimental combination therapy.

ANNOUNCES ACQUISITION: Cubic Corporation (CUB) announced the acquisition of privately held Omega Training Group, Inc., of Columbus, Georgia. Located in close proximity to the U.S. Army Infantry Center and School at Fort Benning, Georgia, Omega provides training, testing, analysis, logistics and staffing services. The company plays a key role in training U.S. Army Soldiers at Fort Benning, Georgia; Fort Bliss and Fort Hood, Texas; and Fort Jackson, South Carolina. It has been involved with the transformation of the U.S. Army Infantry Center and School at Fort Benning, and Omega instructors also teach the U.S. Army’s Reconnaissance and Surveillance Leaders Course there.

Wall Street shot higher Tuesday

OTCBlog — Wed, 30 Jul 2008 13:30:00 GMT

WEDNESDAY, JULY 30, 2008..... Wall Street shot higher Tuesday, gaining back the previous session's sharp losses and then some, after a drop in oil prices and a rise in consumer confidence gave investors some hope for a letup in Americans' financial woes. The Dow Jones industrial average rose 266 points. Crude oil prices sank $2.54 to $122.19 a barrel on the New York Mercantile Exchange, extending their two-week-long retreat from record highs above $147. The prospect of lower energy costs for U.S. consumers, along with a modest uptick in the Conference Board's July index of consumer confidence to 51.9 from 51 in June, came as welcome news. Consumer spending accounts for more than two-thirds of U.S. economic activity. "The thinking is that oil prices are heading lower, and that's obviously a positive for the market," said Richard E. Cripps, chief market strategist for Stifel Nicolaus. A stock bounce was hardly unexpected, though, after the Dow lost nearly 240 points Monday on worries about the sagging financial sector. Wall Street is torn: Energy prices, if they continue on their downward path, could provide big relief to consumers and in turn help the economy, but credit losses keep mounting at the nation's major banks. The result is big swings in the market but little consistent direction. "We're living from one piece of news to the next," said Alan Gayle, senior investment strategist for RidgeWorth Capital Management. The market's volatility is likely to continue unless it gets further evidence that oil prices are, indeed, on their way down, and that banks have already seen the bulk of their losses.

In a sign that there could be additional asset markdowns for banks, Merrill Lynch & Co. announced late Monday that it was writing down another $5.7 billion and selling assets tied to risky debt at a steep discount to Lone Star Funds, a distressed debt investor. Still, Merrill's moves at least answered lingering questions about the health of the brokerage's balance sheet. And many analysts said the asset sale could help to finally establish a market for all the hard-to-value securities held by various financial institutions. "The bad news is, there's going to be write-downs. The better news is, we can estimate those write-downs with better clarity," Gayle said. The Dow gained 266.48, or 2.39 percent, to 11,397.56. Broader stock indicators also climbed. The Standard & Poor's 500 index rose 28.83, or 2.34 percent, to 1,263.20, and the Nasdaq composite index rose 55.40, or 2.45 percent, to 2,319.62. The Dow and the S&P are now less than 20 percent below their Oct. 9 record peaks -- technically out of bear market territory. The Nasdaq is less than 19 percent below its Oct. 31 peak. Still, another downturn will put the market back into bear territory, and some analysts would call an advance like Tuesday's a bear market rally. Advancing issues outnumbered by nearly 4 to 1 on the New York Stock Exchange. Consolidated volume came to a moderate 5.11 billion shares, up from 4.16 billion shares Monday.

Bond prices fell after advancing a day earlier. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.04 percent from 4.01 percent late Monday. The dollar was mostly higher against other major currencies, while gold prices fell. Merrill, which plans to issue new stock to raise $8.5 billion, initially saw its stock drop. But shares later rallied to finish up $1.92, or 8 percent, at $26.25. Most other financial stocks also bounced higher. Citigroup Inc. rose $1.03, or 5.9 percent, to $18.46; Washington Mutual Inc. rose 46 cents, or 11.7 percent, to $4.40; Bank of America Corp. rose $3.97, or 14.2 percent, to $32.03; and Wachovia Corp. rose $1.98, or 14.5 percent, to $15.61. Airline stocks also jumped due to slumping oil prices. AMR Corp., the parent of American Airlines, rose $1.47, or 18.4 percent, to $9.47; Delta Air Lines Inc. rose $1.01, or 14.6 percent, to $7.91; and United parent UAL Corp. rose $1.50, or 21.4 percent, to $8.51. Better-than-expected quarterly earnings helped shore up sentiment as well. United States Steel Corp.'s profit more than doubled in the second quarter following an increase in demand and pricing. The stock jumped $20.43, or 14 percent, to $165.76. Colgate-Palmolive rose $5.59, or 8.2 percent, to $74.15 after reporting that its second-quarter earnings rose 19 percent. Price increases helped the consumer products company offset rising input costs. But on the downside, there was more data pointing to a still sinking housing market. S&P/Case-Shiller said its 20-city index for May fell 15.8 percent from a year earlier -- the sharpest drop since its inception in 2000. The narrower 10-city index is down 16.9 percent, the biggest decline in its 21-year history.

Investors head into the week with a bit more resolve

OTCBlog — Mon, 28 Jul 2008 13:30:00 GMT

MONDAY, JULY 28, 2008..... THE WEEK AHEAD: Investors head into the week with a bit more resolve that U.S. companies are doing a better-than-expected job managing their way through an economy stifled by unprecedented turmoil in the housing and credit markets. Wall Street is about midway through second-quarter earnings season, and the overall results haven't been as dreary as some analysts feared. About 61 percent of the Standard & Poor's 500 index companies reporting results so far have surpassed projections, and 72 percent of them were able to top last year's sales figures. Expectations were low for the quarter and that helped some companies beat forecasts. But if you strip out the market's problem child -- the financial sector -- S&P said companies are headed for a 10 percent growth rate from last year. "Regardless of the estimates or hype, a double-digit gain from non-financials is impressive -- in any economy," said Howard Silverblatt, S&P's senior index analyst.

The fact that earnings have withstood the second-quarter turmoil might help put a more positive spin on the coming week. Investors are awaiting reports from several members of the Dow Jones industrial average and dozens of S&P 500 companies. And, there also won't be a shortage of data that might offer some clarity about where the economy is heading. Readings are due on employment, gross domestic product and the manufacturing sector. As the volatility of recent months has shown, investors are clamoring for more data and earnings to help justify a return to stocks. Last week's seesaw trading pattern indicated more clarity is needed -- stocks began the week with a rally on hope about banks, then fell sharply Thursday on fears about banks, and clawed its way back on Friday to end moderately higher. The Dow Jones industrial average ended the week down 1.09 percent and the S&P 500 fell 0.23 percent. The technology-heavy Nasdaq composite index rose 1.22 percent, helped by a tech rally Friday. With many stocks trading at multiyear lows, and the major indexes down nearly 20 percent from their October highs, some investors are hoping the market is poised for a rebound.

"Calling the bottom will be easy, six months after the fact," Silverblatt said. "As for now, it is a stock-pickers market for most investors, with short-term speculators playing the sectors." This week, investors will be watching to see if oil prices will keep falling -- they closed below $124 a barrel Friday. The retreat could give the economy a boost, helping everything from consumers' wallets to corporate profit margins. Dozens of major companies release their quarterly results this week, including Amgen Inc., Verizon Communications Inc., Northrop Grumman Corp., MetLife Inc., United States Steel Corp., Starbucks Corp., Visa Inc., MasterCard Inc., Walt Disney Co., Eastman Kodak Co. and Motorola Inc. Investors will also be watching closely to see what both Chevron Corp. and ExxonMobil Corp. have to say about the oil markets. Both companies, which are Dow components, are expected to yet again post record profits because of high oil prices.

In economic news, investors on Thursday will get a look at the first report on gross domestic product for the second quarter. Economists polled by Thomson Financial/IFR expect the Commerce Department to report that gross domestic product rose at a 2.4 percent pace thanks in part to the government's tax rebate checks, which appeared to boost the economy sooner than expected. In the first quarter, GDP, the broadest gauge of economic health, rose at a feeble 1 percent pace. Perhaps the most notable economic reading will be Friday's July employment report. The Labor Department report is expected to show the seventh month of jobs losses and that the unemployment rate ticked higher. Also Friday, the Institute for Supply Management is expected to release its July index on the manufacturing sector and the Commerce Department is slated to report on construction spending.

Wall Street abruptly ended an earnings-driven rally and closed sharply lower Thursday

OTCBlog — Fri, 25 Jul 2008 13:30:00 GMT

FRIDAY, JULY 25, 2008..... Wall Street abruptly ended an earnings-driven rally and closed sharply lower Thursday after a steeper-than-expected decline in existing home sales and worries about the financial sector chilled the market's recent optimism. The major indexes fell about 2 percent, including the Dow Jones industrial average, which lost more than 275 points. The National Association of Realtors said sales resumed their decline in June after a slight rebound in May. Existing home sales declined by 2.6 percent in June, well beyond the 1 percent drop economists had forecast. Investors punished shares of homebuilders and financial companies Thursday because both sectors have struggled with the declining housing market. Alan Lancz, director at investment research group LanczGlobal, said investors are concluding that while financials had been oversold and were due for a rebound, problems remain with tight credit and souring mortgage debt. "You have the rally and you almost get the hangover now where you say 'You know, we're not out of the woods yet,'" he said. According to preliminary calculations, the Dow fell 283.10, or 2.43 percent, to 11,349.28. It was the biggest decline for the Dow since June 26. The pullback erased the nearly 170 points added in the two prior sessions. Last week, the Dow gained nearly 400 points. While some declines after the latest rally wouldn't have come as a surprise, the drop Thursday revealed fresh unease about the economy.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 29.65, or 2.31 percent, to 1,252.54. A jump in Amazon.com Inc. shares helped contain some of the decline in the technology-heavy Nasdaq composite index, which fell 45.77, or 1.97 percent, to 2,280.11. Stocks had risen in the prior two sessions as the price of oil declined. Oil is now down more than $20 after just weeks ago hitting a record above $147 a barrel. A barrel of light, sweet crude rose $1.05 Thursday to settle at $125.49 on the New York Mercantile Exchange. Bond prices jumped Thursday as some investors looked for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.02 percent from 4.12 percent from late Wednesday. The dollar was mixed against other major currencies, while gold prices rose. Financial stocks declined again Thursday after rising sharply in the past week from their recent lows. Washington Mutual Inc. fell 62 cents, or 13 percent, to $4.03 after falling 20 percent Wednesday as concerns persisted about the company's mortgage portfolio. The nation's largest thrift this week posted a $3 billion loss due to increases in its loss reserves to cover souring loans in its mortgage holdings. Other financials lost ground. Citigroup Inc. fell $2.06, or 9.8 percent, to $19.06, while Merrill Lynch & Co. fell $4.77, or 14 percent, to $29.04. Wachovia Corp. declined $1.96, or 11 percent, to $15.69.

Fannie Mae and Freddie Mac fell sharply after rallying earlier in the week on legislation speeding through Congress that would grant the Treasury Department power to extend the government-sponsored mortgage companies an unlimited line of credit and to buy an unspecified amount of their stock, if necessary. The companies together back or own $5 trillion in mortgages -- nearly half the nation's total. Fannie Mae fell $2.98, or 20 percent, to $12.02, while Freddie Mac fell $1.99, or 18 percent, to $8.81. Lancz said the run-up in previous sessions may have led some investors to become too optimistic about the overall market's prospects for a speedy recovery. Stocks are still down nearly 20 percent from the highs seen in October. "You're going to have these starts and stops but it's going to be a really long-term process," he said.

Adding to investors' pessimism, the Labor Department reported Thursday that the number of people filing first-time claims for unemployment benefits bolted past 400,000 last week as companies trimmed their work forces to cope with a slowing economy. Investors also absorbed a mix of earnings reports from names like Ford Motor Co., which reported a big loss, and Dow Chemical Co., which said higher costs for raw materials sent earnings down sharply. But drug makers Bristol-Myers Squibb Co. and Eli Lilly & Co. both reported higher earnings as the weak dollar boosted foreign sales, and Amazon.com Inc. turned in a solid report that beat expectations. Analysts have said that so far, second-quarter earnings reports have been better than many investors expected. That had lifted the market's mood in recent sessions. Ford said it lost $8.67 billion in the second quarter, largely because of a reduction in the value of assets. The company also said it will bring six European small car models to North America by the end of 2012 as it adjusts production because of high gasoline prices. The stock fell 92 cents, or 15 percent, to $5.11. Dow Chemical fell $1.13, or 3.3 percent, to $33.11 after reporting sharply higher costs for energy and raw materials contributed to a 27 percent decline in profit.

Bristol-Myers beat expectations with an 8 percent rise in quarterly profit, while Eli Lilly reported a 44 percent jump in earnings. Bristol-Myers rose 23 cents to $22.12 and Eli Lilly advanced 38 cents to $48. Amazon.com jumped $8.18, or 12 percent, to $78.72 after reporting late Wednesday that second-quarter earnings more than doubled to easily top analysts' expectations. The Internet retailer also raised its full-year revenue projections. Stephen Goddard, co-portfolio manager of the AFBA 5Star Balanced Fund, said the decline in housing numbers alongside some better-than-expected earnings reports shouldn't be surprising because mixed reports are common during economic downturns. "All the numbers don't turn at the same time," he said of economic readings. "It's usually one by one by one. You start seeing incremental improvement." Declining issues outnumbered advancers by about 4 to 1 on the New York Stock Exchange, where volume came to 1.65 billion shares compared with 1.72 billion shares traded Wednesday. The Russell 2000 index of smaller companies fell 16.80, or 2.34 percent.

Nabi Announces Positive Interim Results from Ph 2 Trial of NicVAX(R) Nicotine Vaccine

OTCBlog — Thu, 24 Jul 2008 13:30:00 GMT

THURSDAY, JULY 24, 2008..... Stocks advanced for the second straight session Wednesday as another decline in oil prices and several upbeat profit reports eased some of Wall Street's concerns about the economy. Investors expect that a sustained pullback in oil prices would give a crucial boost to the economy. Crude has retreated as oil investors have worried that high prices and a sluggish economy are reducing demand. The government reported Wednesday that domestic inventories increased last week as consumers curbed their energy use. Oil is down more than $20 a barrel since hitting a record above $147 just weeks ago. A barrel of light, sweet crude fell $3.98 to settle at $124.44 a barrel on the New York Mercantile Exchange. While oil again tugged at stocks as it has for months, investors also examined a raft of earnings reports that indicated not all corporate profits were suffering because of the slower economy. That left some investors more upbeat about the prospects for the overall economy. AT&T Inc., McDonald's Corp. and Pfizer Inc., all among the 30 stocks that make up the Dow Jones industrial average, weighed in with reports that generally pleased investors. "Oil is a positive but I think bigger than that is the earnings news is not as catastrophic as people were thinking," said Noman Ali, portfolio manager of U.S. equities for MFC Global Investment Management in Toronto. "Some of the bellwethers are reporting earnings that are better-than-expected. And outside of the financials things, aren't so bad."

According to preliminary calculations, the Dow rose 29.88, or 0.26 percent, to 11,632.38 after rising nearly 100 points early in the session. On Tuesday, the blue chips gained 135 points. Broader stock indicators also advanced. The Standard & Poor's 500 index rose 5.19, or 0.41 percent, to 1,282.19 and the technology-laden Nasdaq composite index rose 21.92, or 0.95 percent, to 2,325.88. Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 1.72 billion shares compared with 1.57 billion shares traded Tuesday. Bond prices slipped as some investors moved from the safety of government debt to stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.12 percent from 4.10 percent from late Tuesday. The dollar was mostly higher against other major currencies, while gold prices fell. The stronger dollar also helped push oil lower. The drop in oil helped a range of sectors like airlines. Delta Air Lines Inc. rose 89 cents, or 12 percent, to $8.60, while Continental Airlines Inc. jumped $1.54, or 12 percent, to $14.80. Energy companies lost ground as oil fell. Exxon Mobil Corp. fell $1.87, or 2.3 percent, to $80.99 and Chevron Corp. slid $2.98, or 3.5 percent, to $82.65.

Investors appeared unfazed by the Federal Reserve's Beige Book, which provides readings on the U.S. economy by region and indicated that business conditions have slowed in recent months as consumer spending has turned sluggish. The report arrives two weeks before policymakers' next meeting but seemed to hold few surprises for investors. Investors instead appeared more focused on oil and corporate news. AT&T rose $1.24, or 3.9 percent, to $33.06 after the company said quarterly profits rose amid a big spike in wireless subscribers that offset its shrinking landline business. Pfizer, the world's biggest drug maker, said its second-quarter earnings more than doubled as restructuring charges declined and the weak dollar helped lift overseas revenue. The stock rose 72 cents, or 3.9 percent, to $19.07. McDonald's credited strong overseas sales with driving the company's second-quarter profit. The stock fell 46 cents to $59.66. Boeing Co. fell $2.54, or 3.7 percent, to $66.72 after reporting second-quarter earnings fell 19 percent due to a $248 million charge related to a defense program. The world's second-largest commercial airplane maker had already warned it would book the expense.

Washington Mutual Inc. fell $1.17, or 20 percent, to $4.65 after the nation's largest thrift reported a $3 billion loss due to increases in its loss reserves to cover souring loans in its mortgage portfolio. Costco Wholesale Corp. warned that its fiscal fourth-quarter and full-year profits will fall short of Wall Street's expectations. The warehouse club operator expects higher energy costs to hurt its results. The stock fell $8.57, or 12 percent, to $63.43. Fannie Mae and Freddie Mac advanced as the House planned to vote Wednesday on legislation that would tap the mortgage giants' profits to cover any losses from saving 400,000 homeowners from foreclosure. The measure would give the Treasury Department authority to extend the companies a temporary lifeline. Fannie Mae rose $1.59, or 12 percent, to $15, while Freddie Mac rose $1.10, or 11 percent, to $10.80. Bill Stone, chief investment strategist for PNC Wealth Management, said some investors had been overly concerned about some financials and that some companies' quarterly reports had quelled some of the worst fears.

"They were pricing some of these companies seemingly for the end. And when you don't get the worst possible outcome you get at least a jump out of them," he said. MFC's Ali said that while the government's action to help Fannie Mae and Freddie Mac has reassured investors he remains cautious. "Some of the biggest rallies happen in bear markets. The outlook for the market is still pretty negative," he said, pointing to a general decline in earnings, a slowdown in international growth, rising prices and a weak dollar.

Top Stories

Nabi Announces Positive Interim Results from Ph 2
Trial of NicVAX(R) Nicotine Vaccine
Nabi Biopharmaceuticals (NABI) announced positive interim results from its Phase 2 NicVAX(R) (Nicotine Conjugate Vaccine) schedule optimization immunogenicity study to assess the antibody response and safety of a 400 microgram, six dose immunization schedule. Interim results from the study indicate that significantly higher anti-nicotine antibody levels can be generated three months earlier and in a much higher percentage of subjects than observed in previous NicVAX studies. Nabi’s new immunization schedule, which included an additional injection at three months, resulted in an immune response at 14 weeks that was higher than the peak antibody level achieved following the six month booster in the Phase 2b proof of concept study. Significantly, the data indicated that more than 80% of subjects achieved the target antibody level at 14 weeks compared to 50% of subjects in the Phase 2b proof of concept study at the same time point. The revised schedule was well tolerated with an adverse event profile comparable to previous NicVAX clinical studies.

Rimage Discusses Q2 Earnings and
Gives Q3 Guidance
Shares of Rimage Corporation (RIMG) saw healthy gains after the Company reported sales of $22,686,000 for the second quarter of 2008 ended June 30, compared to $25,486,000 in the year-earlier period. Second quarter earnings of $1,927,000 or $0.19 per diluted share were down from $2,921,000 or $0.28 per diluted share in the comparable period of 2007. Bernard P. Aldrich, President and CEO, commented in a conference call Wednesday, "Although our performance continued to be affected by weak economic conditions, Rimage’s second quarter results exceeded the downwardly revised guidance that we issued on June 9, due primarily to higher than forecasted sales transacted through our global distribution channel during the latter stages of the quarter. At this time, we believe our performance should remain relatively stable, and consistent with this outlook, we are forecasting earnings of $0.17 to $0.23 per diluted share on revenues of $21 to $23 million for the third quarter of 2008." Robert M. Wolf, CFO of Rimage, added, "We believe that our gross margins and R&D spending in Q3 will be at or near the Q2 level." Mr. Aldrich explained, "We expect our results to become less ‘lumpy’ in the future and somewhat more predictable. We expect our European business to continue to show strength throughout 2008. We have also added more than thirty value-addded resellers focused on the video market and established strategic partnerships with key industry players." He concluded, "We have also instituted cost reductions which will take full effect in the third quarter, and we have every reason to believe that Rimage’s future is very promising."

Progen Pharmaceuticals Terminates Phase 3
Trial of PI-88 in Liver Cancer
Progen Pharmaceuticals Limited (PGLA) has discontinued the PI-88 phase 3 study in liver cancer. Progen confirmed its strategic direction to develop its existing portfolio of compounds and the company will actively seek to acquire additional compounds and opportunities through Merger & Acquisition activity. The trial is unlikely to meet the forecast patient recruitment timetable and further significant delays were expected due to: slower than expected regulatory processes in China, Korea and Vietnam; slower than expected initiation of clinical sites; slower than expected recruitment of patients into active sites; and the recent launch of a competitive phase 3 trial, assessing Bayer/Onyx Nexavar(R) in the same indication. Due to a lack of a global partner willing to meaningfully develop and commercialize PI-88, the commercial opportunity is much less than previously expected. Without a significant global partner contributing, Progen will be less able to expand into additional indications and exploit all potential PI-88 commercial opportunities. The next step is that Progen will seek expressions of interest in PI-88, at a regional level, initially from amongst those parties that had entered into Non-Disclosure Agreements and Due Diligence on PI-88.

Today's Headlines

CEO DISCUSSES FINANCIAL RESULTS FOR Q2: Dyax Corporation (DYAX) announced financial results Wednesday for the second quarter ended June 30, 2008. The Company reported a net loss of $24.9 million, or $0.41 per share, as compared to a net loss of $17.9 million, or $0.37 per share, for the comparable quarter in 2007. Total revenues for the second quarter ended June 30, 2008 increased to $3.8 million versus $2.6 million for the comparable quarter in 2007. As of June 30, 2008, Dyax had a total of $67.9 million in cash, cash equivalents, and short-term and long-term investments, exclusive of restricted cash. Henry E. Blair, Chairman, President and CEO of Dyax commented in a conference call, "Our cash consumption is already projected to be significantly lower than our 2007 cash burn of $38 million. From the closure of our Belgian facility alone, we will save $7 million a year. Currently, we have sufficient cash reserves to fund operations well into 2009. We expect additional reductions to cash burn through new partnerships and collaborations. We will continue with efforts to improve our balance sheet by reducing expenses and accessing external sources of cash." He added, "Over the coming months, we look forward to reporting on the next clinical and regulatory milestones of the DX-88 HAE program, including the announcement of EDEMA4 topline data and submission of the last sequence of our rolling BLA. Our accomplishments this year reflect a commitment to growth and transformation. We look forward to building on this momentum."

SIGNS MARKETING AND DISTRIBUTION AGREEMENT: International Fuel Technology, Inc. (IFUE) has signed an exclusive marketing and distribution agreement with VOS for the continent of Africa. The agreement is the results of an effort by both to successfully introduce DiesoLIFT(TM) 10 to African markets in conjunction with LOH as an additive to LOH’s diesel products for sale in its home and export markets. LOH will launch a premium diesel fuel additized with DiesoLIFT(TM) 10 to be sold initially in five countries.

RECEIVES UK APPROVAL FOR PHASE II TRIAL: Chelsea Therapeutics International, Ltd. (CHTP) has received approval from the United Kingdom’s Medicines and Healthcare products Regulatory Agency (MHRA) to begin a Phase II trial of Droxidopa, alone and in combination with carbidopa, for the treatment of Fibromyalgia. Chelsea intends to initiate a multi-centre, randomized, double-blind, placebo-controlled, dose response, factorial 12-arm parallel group Phase II trial in September. The 12-arm trial will evaluate 120 patients equally randomized to receive Droxidopa monotherapy, carbidopa monotherapy, Droxidopa/carbidopa combination therapy or placebo.

ISSUED THREE U.S. PATENTS: Monogram Biosciences, Inc. (MGRM) announced that three key United States Patents for its proprietary VeraTag(TM) technology have been issued (United States Patent numbers 7,402,397; 7,402,398 and 7,402,399). The patents are broad and relate to the use of Monogram’s VeraTag technology for methods of detecting and profiling protein complexes, including protein homodimers and heterodimers. A European Patent (number 1278760) has also been issued in respect of these claims.

COMPLETES PHASE 3 ENROLLMENT: Optimer Pharmaceuticals, Inc. (OPTR) has completed enrollment in the first of two pivotal Phase 3 clinical trials evaluating the safety and efficacy of OPT-80 for the treatment of Clostridium difficile infection, or CDI. OPT-80, with its narrow spectrum profile, may eradicate C. difficile selectively with minimal disruption to the normal intestinal flora. This may facilitate the return of the normal physiological condition in the colon and reduce the probability of CDI recurrence.

AWARDED $1.1M CONTRACT BY U.S. DEPARTMENT OF ENERGY: BluePhoenix Solutions (BPHX) has won a major project estimated at $1.1 million to migrate and modernize several key applications and databases to the Java/Oracle environment for the U.S. Department of Energy. The legacy technology includes ADABAS/Natural, VSAM/COBOL, JCL, Assembler, CLIST, SuperWylbur, PL/I, CA Easytrieve and SAS. This project will be executed in conjunction with BluePhoenix partner EES (Energy Enterprise Solutions), to whom BluePhoenix is serving as subcontractor.

ANNOUNCES RESIGNATION OF CEO AND DIRECTOR: Tefron Ltd. (TFR) announced that Mr. Yos Shiran, the Company’s CEO for the last seven and a half years, has notified the Company of his decision to resign as the CEO and as a director of the Company in favor of pursuing other business opportunities. Mr. Shiran’s resignation as CEO will take effect in 90 days. His resignation as a director of the Company is effective immediately.

RECEIVES CONTRACT TO PROVIDE BIOTERRORISM DETECTION EQUIPMENT: Universal Detection Technology (UDTT) has received a contract to provide handheld assays for bioterrorism detection for the 2008 Beijing Olympics. The handheld devices are designed to detect Anthrax, Ricin, Botulinum Toxin, Plague and SEBs in as little as 3 minutes. "The contract for the bioterrorism detection kits comes on the heels of our contract to provide radiation detection equipment for the Olympics," said Mr. Jacques Tizabi, UDTT’s Chief Executive Officer. "We are proud to have contributed to the safety of the Olympics games," he added.

Ceragon Networks Discusses Increased Q2 Revenues and Raises FY08 Guidance

OTCBlog — Tue, 22 Jul 2008 13:30:00 GMT

TUESDAY, JULY 22, 2008: Wall Street turned in a mixed performance Monday as investors watched the price of oil regain ground and decided to cash in some of their gains from the stock market's big rally last week. While the market's major indexes showed modest losses, the number of stocks advancing outpaced decliners by about 2 to 1 on the New York Mercantile Exchange, and by about 4 to 3 on the Nasdaq Stock Market. The tame session unfolded as oil rose on concerns that the threat of new sanctions against Iran over its nuclear program could escalate tensions in the Middle East. Light, sweet crude rose $2.16 to settle at $131.04 a barrel on the New York Mercantile Exchange. The rise in oil offset initial market enthusiasm after Bank of America Corp. posted results that beat expectations, raising hope the credit crisis might be easing for the nation's biggest retail banks. The second-largest U.S. bank by assets reported that higher investment banking and record revenue helped drive earnings during the second quarter. With Bank of America's results, four of the nation's five biggest banks have now reported better-than-expected earnings, and that's raising hopes that the financial sector is starting to recover from the year-old credit crisis. Still, "with crude trading up near $130, and a big advance last week, some investors are taking chips off the table," said Jim Herrick, manager of equity trading at Baird & Co. "We're going to be in a tight trading range this week based on earnings and oil prices. I expect more of the same." The market was also uneasy about drug makers Merck & Co. and Schering-Plough Corp. Both pharmaceutical companies fell after a new study showed their cholesterol drug Vytorin did not meet its main goals.

The Dow Jones industrial average fell 29.23, or 0.25 percent, to 11,467.34 after moving in and out of positive territory. Broader indexes showed more modest declines. The Standard & Poor's 500 index slipped 0.68, or 0.05 percent, to 1,260.00; and the Nasdaq composite index dropped 3.25, or 0.14 percent, to 2,279.53. The moves follow a strong week for the markets. The Dow last week rose 3.57 percent, while the S&P rose 1.71 percent and the Nasdaq increased 1.95 percent. Bond prices rose Monday as the major stock indexes declined. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.04 percent from 4.09 percent late Friday. The dollar was mixed against other major currencies, while gold prices rose. Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, said the market is still feeling somewhat upbeat about how earnings are shaping up so far this quarter. And that's helped to maintain some of last week's market gains, despite the pullback on Monday. "We're having some more good news from the financials -- it wasn't as bad as feared," he said. "And we've also got some buyout deals."

Some 158 members of the Standard & Poor's 500 index and 10 of the 30 Dow industrials are slated to post results this week. One of the biggest Monday was Bank of America, which reported that increased bad debt due to the housing slump pushed profits down 41 percent. However, it still surpassed expectations due to a solid performance in its business not tied to real estate. The stock rose $1.07, or 3.9 percent, to $28.56. But another Dow component weighing in after the closing bell could rattle investor sentiment. American Express Co.'s second-quarter profit tumbled 38 percent -- results that came in well short of expectations -- as consumer spending slowed and credit indicators deteriorated beyond the company's expectations. The stock fell $1.29, or 3.1 percent, to $40.90 on the day and declined more than 10 percent in after-hours electronic trading. Investors were somewhat optimistic during Monday's session that mergers and acquisitions, which have been sluggish since the credit crisis began last year, might be reviving. Swiss drug maker Roche Holding announced plans to acquire the stake in Genentech Inc. it doesn't already own for $43.7 billion, making it the seventh-largest pharmaceuticals company in the U.S. Shares of Genentech were among the best performers during the session, rising $12.06, or 14.7 percent, to $93.88. Yahoo Inc. fell 78 cents, or 3.5 percent, to $21.67 after the Internet portal staved off an attempt by activist shareholder Carl Icahn to take control and sell it. Icahn, who has argued in favor of selling Yahoo to Microsoft Corp., will become a Yahoo director along with two of his nominees.

In economic news, Treasury Secretary Henry Paulson sought to reassure the public Sunday that the banking system is sound, while also preparing people for more troubled times ahead. "I think it's going to be months that we're working our way through this period -- clearly months," he said. And that was confirmed by more economic data Monday. The Conference Board said the economy contracted in June as factories cut workers' hours and stocks tumbled. The research group's index of leading economic indicators, a gauge of future economic activity, fell 0.1 percent, in line with estimates by Wall Street economists surveyed by Thomson Financial/IFR. It also revised its May figure to show a decline instead of slight growth. The Russell 2000 index of smaller companies rose 4.55, or 0.66 percent, to 697.63. Consolidated volume on the New York Stock Exchange came to 4.50 billion shares, compared with 5.49 billion shares traded Friday. Overseas, markets in Japan were closed for a holiday. Britain's FTSE 100 rose 0.52 percent, Germany's DAX index added 0.66 percent, and France's CAC-40 rose 0.65 percent.

Top Stories

Ceragon Networks Discusses Increased Q2
Revenues and Raises FY08 Guidance
Shares of Ceragon Networks Ltd. (CRNT) were higher on Monday after the Company reported results for the second quarter which ended June 30, 2008. Revenues for the second quarter of 2008 were $55.2 million, up 47.9% from $37.3 million for the second quarter of 2007 and 17% from $47.2 million in the first quarter of 2008. Non-GAAP net income was $0.13 per diluted share, compared to net income of $0.12 per diluted share for the same period in 2007. Cash and cash investments at the end of the quarter were $108 million. Mr. Ira Palti, President and CEO of Ceragon, explained in a conference call today, "We flew past the top-end of our target range in Q2, reaching al all-time record of $55 million. Bookings remained very strong. We continue to benefit from the growing worldwide demand for high-capacity technology, and we are seeing a global migration earlier than expected." "North America continues to be the only weak spot. We believe that this will continue to be weak for the balance of 2008. In 2009, we expect improvements from the growth in data usage from the iPhone launch and similar devices. Furthermore, once the merger of Sprint and Clearwire receive regulatory clearances, this could provide a boost to demand next year." Mr. Palti added, "With strong demand on a global basis, execution remains the critical success factor. We continue to emphasize technological innovation, as well as product cost production with stringent expense control." The CFO of Ceragon, Mr. Tali Idan, commented, "The Asia-Pacific region continued to grow rapidly, accounting for 57% of total revenue for the quarter. India accounted for 22% of revenue and Latin America increased to 15%. North America accounted for the remaining 6%. We had two 10% customers, with one accounting for almost 37% of total revenue." "Our gross margin in Q2 was 34%. Our operating margin was 7.8%, reflecting the lower gross margin. We expect our gross margin to return to the 35%-36% range in Q4 and beyond." Mr. Idan added, "If the dollar remains at current levels, it will have a negative impact of $600,000 in each of Q3 and Q4. We are not hedged for this impact, but we are looking for ways to mitigate the impact. If we see no improvement in the dollar, it will be quite challenging to reach our goal of 10% operating margin by the end of the year." He concluded, "We continue to have a backlog that is more than one quarter ahead. We expect Q3 revenues to be in the range of $56 million-$60 million. For FY08, we are raising our revenue growth target to 35%+ over last year’s revenues."

iCAD Completes Acquisition of
CAD Sciences for $5M
iCAD, Inc. (ICAD) announced the completion of its agreement to purchase the principal assets of CAD Sciences, a privately-held medical technology company based in White Plains, NY. The purchase price was $5 million, comprised of $2 million in cash and 1,086,957 shares of iCAD common stock.

i2Telecom Executes Joint Venture and $9M Funding
Agreement w/Kuwaiti Businessman
i2Telecom International, Inc. (ITUI) announced that it has executed a Memorandum of Understanding for a strategic joint venture with Raed A.H. Rajab, a prominent businessman in Kuwait, to expand the Company’s operations into a number of international markets by the end of this year. Through established sales channels, the Investor will provide $9 million in funding for operating and marketing expenses incurred by the joint venture during the next twelve months involving the launch of i2Telecom’s award-winning MyGlobalTalk(TM) and other telecom offerings into these markets. The joint venture will establish wholly-owned subsidiaries in each country and transfer exclusive rights to the Company’s technology to that country in exchange for the Capital Commitment. The Company will consolidate the operating results of the joint venture in its financial results beginning with the third quarter. Revenue from the joint venture is not included in i2Telecom’s previously announced guidance.

Today's Headlines

BEGINS PH III TRIAL: Exelixis, Inc. (EXEL) announced that the phase 3 registration trial of XL184 as a potential treatment for medullary thyroid cancer (MTC) has been initiated. XL184 is a small molecule anticancer compound targeting the MET, RET, and VEGFR2 receptor tyrosine kinases. Recently, Exelixis and the FDA reached agreement on the phase 3 registration trial via the Special Protocol Assessment process. Exelixis has also discussed the trial design with European regulatory agencies.

RECEIVES ORDER FOR MUNICIPAL COMMAND & CONTROL SYSTEM: Magal Security Systems, Ltd. (MAGS) has received an order for the installation of a municipal security command and control system in a capital city in Asia, based on its FORTIS System. The first stage of this order which is expected to be completed by the end of August 2008 is approximately US$650,000. Following completion of the initial stage, management expects the project to be expanded, and the total sum of the whole project is expected to reach approximately US$3 million.

ENTERS INTO SALES CONTRACT: ICP Solar Technologies Inc. (ICPR) has entered into a sales contract with Nissan in Europe and North America for OEM solar charger. A discharged battery is one of the most common problems facing the automotive industry with cars sitting in parking lots for a long period of time in cold or hot conditions. The ICP Solar OEM solar charger will help reduce the related costs and will avoid strong 12V battery drain using the power of the sun.

NAMES INTERIM CEO: The Board of Directors of Charlotte Russe, Inc. (CHIC) announced that Board member Leonard Mogil, formerly Group Executive Vice President of Phillips-Van Heusen Corporation (PVH), has been named interim Chief Executive Officer of the Company, effective immediately. He replaces Mark Hoffman, who has retired as Chief Executive Officer and a Director of the Company. The Board of Directors is commencing a search for a permanent CEO, which will begin immediately.

BEGINS ENROLLMENT FOR PHASE 2 TRIAL: Allos Therapeutics, Inc. (ALTH) today announced the initiation of patient enrollment in a Phase 2, open-label, single-arm, multi-center study of PDX (pralatrexate) in patients with advanced or metastatic relapsed transitional cell carcinoma (TCC) of the urinary bladder. The primary endpoint of the study is objective response rate (complete and partial response). Secondary endpoints include duration of response, clinical benefit rate, progression-free survival (PFS), overall survival and the safety and tolerability of PDX. The study will seek to enroll approximately 41 patients in up to 20 investigative sites worldwide.

RECEIVES $2.5M LOAN: Vyteris, Inc. (VYTR) has received $2.5 million principal amount of financing from Ferring Pharmaceuticals, Inc., which represented an advance on a potential milestone payment for a Phase II clinical trial of a product for female fertility treatment. The $2.5 million was advanced in the form of a loan and bears interest at the rate of 10 percent per annum. If Ferring elects to proceed with the Phase II trial, the principal amount of the loan will be paid off through application of the Phase II payment which would otherwise be due under the License Agreement between Vyteris and Ferring.

POSITIVE STUDY PUBLISHED: Alfacell Corporation (ACEL) announced that a paper published in Molecular Cancer Therapeutics (2008; 7(7):1871-9) reports that a combination of ONCONASE(R)(ranpirnase) and the thiazolidinedione antidiabetic drug rosiglitazone shows a promising effect for cancers with increased expression of PI3K-dependent Fra-1 expression or Survivin. The paper is the result of NIH-funded in vitro research conducted at the University of Vermont in Burlington, Vt., investigating two known phosphatidylinositol 3-kinase (PI3K) downstream proteins, Fra-1 and Survivin, as potential targets for cancer therapy. The study demonstrated that the combination of ONCONASE and rosiglitazone synergistically decreased cell viability and increased cell apoptosis in several cancer cell lines, including lung, breast, prostate and ovarian, due to decreased Fra-1 and Survivin expression. The results also suggest that combined therapeutic use may overcome the resistance produced in some cancer cells by the activation of survival pathways and their targets. The study concludes the novel drug combination of ONCONASE and rosiglitazone is a promising combination.

ANNOUNCES RETIREMENT OF CEO: Powell Industries, Inc. (POWL) announced that Tom Powell will retire as Chief Executive Officer, effective September 30, 2008, the end of the current fiscal year. At that time Patrick L. McDonald, current President and Chief Operating Officer, will succeed Mr. Powell as President and Chief Executive Officer. Mr. Powell will continue to serve as non-executive Chairman of the Board.

BEGINS PH 2B TRIAL: Targacept, Inc. (TRGT) has initiated a Phase 2b clinical trial of TC-5214 as an augmentation therapy in subjects with Major Depressive Disorder (MDD). TC-5214 is a broad spectrum neuronal nicotinic receptor (NNR) antagonist and represents a promising new mechanism in development for the treatment of MDD.

CEO of Momenta Discusses FDA Acceptance of ANDA Application for Generic Copaxone(R)

OTCBlog — Mon, 14 Jul 2008 13:30:00 GMT

MONDAY, JULY 14, 2008..... Investors already disheartened about the growing problems of the financial sector and the soaring price of oil are facing more depressing news with the release of second-quarter earnings reports. The coming week will bring the first big wave of results from America's largest companies, including seven Dow Jones industrial average components and 53 members of the Standard & Poor's 500 index. Investors shouldn't expect much: Earnings for all the companies in the S&P 500 index are forecast by the rating agency to be down 10 percent from a year earlier. Thomson Financial, which compiles forecasts from analysts at banks and brokerages, estimates the decline at 13.5 percent. Either way, Wall Street is well past the nearly five years of double-digit growth that ended as the subprime mortgage crisis spilled into the credit markets last summer. The credit crisis is responsible for the earnings plight; financial companies that have written down an aggregate of $300 billion in soured mortage-related assets remain the biggest drag on S&P 500 earnings. Results are expected this coming week from Merrill Lynch & Co., JPMorgan Chase & Co. and Citigroup Inc. But profits and outlooks for the future are expected to be sobering for U.S. companies as a whole.

"The feeling is that this will be a sloppy earnings season, the tone of the which is going to be very much like the previous three quarters," said Phil Orlando, chief equity market strategist at Federated Investors. "The banks and the housing sector, on through autos and retailers, are the problem children." Financial company earnings are forecast to fall by 69 percent year-over-year, according to Thomson. Meanwhile, consumer discretionary companies -- which includes auto manufacturers and home builders -- are expected to see their profits fall by 19 percent. There are some bright points, with energy companies expected to turn soaring oil prices into a 28 percent jump in profits. Crude oil is up nearly 50 percent this year, and hit a record on Friday over $147 a barrel. With both oil and financial earnings certainly at extremes, analysts like Orlando find it useful to strip out their performance to get a better idea of how the broader market performed. If you remove the financials, Thomson forecasts the companies in the index would post an average earnings growth rate of about 9 percent; and if you remove financials and oil, the rest of the S&P 500 would have a 4 percent profit growth rate.

"There's some growth there, but nothing like we've seen in past years," said John Butters, director of U.S. earnings research for Thomson Financial. "You also have to take into consideration that the forecasts have come down during the quarter." He said that at the start of the quarter, analysts expected the financial sector to tumble 31 percent year-over-year. The barrage of bad news during the quarter forced analysts' to rethink their forecasts, causing both expectations and stock prices to fall. Concerns about financials didn't let up on Friday, when the Dow Jones tumbled nearly 130 points on concerns about the viability of Fannie Mae and Freddie Mac. Fannie Mae lost 22.35 percent of its value, while Freddie Mac lost 3.13 percent.

Investment banks -- many of which carry significant investments in mortgage-backed securities -- also fell. Lehman Brothers Holdings Inc., the weakest of Wall Street's firms, tumbled 16.59 percent by the end of the session. And amid this uncertainty, analysts don't expect companies to be very optimistic about the future. By most accounts, lackluster second-quarter results are already factored into stock prices. That makes it even more important for corporate executives to manage expectations going forward. For instance, the CEOs of both General Electric Co. and aluminum maker Alcoa Inc. -- the first of the Dow's 30 components to report -- issued lukewarm guidance. GE matched forecasts on Friday, while Alcoa surpassed them on Tuesday. "Any guidance that management provides, from a self-serving standpoint, will be downbeat and cautious," Orlando said. "They will try to set the bar as low as possible to engineer an upside surprise in the third quarter."

Top Stories

CEO of Momenta Discusses FDA Acceptance of
ANDA Application for Generic Copaxone(R)
Momenta Pharmaceuticals, Inc. (MNTA) announced that the FDA has accepted for review the Abbreviated New Drug Application (ANDA) for a generic version of Copaxone(R)(glatiramer acetate injection), submitted by Sandoz Inc., Momenta’s 50/50 development and commercialization partner for this product. Copaxone is indicated for the reduction of the frequency of relapses in patients with Relapsing-Remitting Multiple Sclerosis (MS). Teva Pharmaceutical Industries, Ltd. (TEVA) reported U.S. sales of $1.1 billion for Copaxone for the twelve months ended 2007. Craig A. Wheeler, President and CEO of Momenta, commented in a conference call Friday, "Clearly, a generic version of Copaxone represents a significant market opportunity for us." He added, "This ANDA provides additional evidence of our ability to apply our technology to the characterization of complex mixtures." Teva stated today that it intends to file a patent infringement lawsuit against Momenta/Sandoz. Teva believes the suit will stay the ANDA filed by Momenta/Sandoz.

Hydrogenics to Provide Hydrogen Electrolyzer and
Fuel Cell for Project in Wales
The President, COO and Chief Scientific Officer of DARA BioSciences, Inc. (DARA), John Didsbury, Ph.D., presented Thursday at the Collins Stewart’s 4th Annual Growth Conference in New York, NY. DARA Bio- Sciences is a development-stage pharmaceutical company that acquires and develops promising drug candidates. DARA focuses its therapeutic development efforts on small molecules from late preclinical development through phase 2 clinical trials. DARA has a portfolio of therapeutic candidates for neuropathic pain, type 2 diabetes, and psoriasis. Dr. Didsbury explained at the conference, "We are executing a unique pharmaceutical product development business model. This model is designed to maximize returns to shareholders, minimize risk, and dramatically reduce the revenue generation time frame in the pharmaceutical industry sector." "We develop drugs that address large markets. We are very product-focused, beginning with identified drug molecule candidates with strong patent production. We are reducing product development risks.We are opportunistic and not therapeutically-focused. We are also focused on the lower-cost, higher-return stages of development. These include late preclinical through to Ph IIa stages," added Dr. Didsbury. "Our corporate strategy is unique. We are not involved in early drug research, which has the highest risk. We also do not participate in Phase III studies, which incur the highest costs. We are very flexible, and we cut programs quickly that have adverse results. We don’t hang on to ‘dogs’." He concluded, "We have a clearly defined business strategy that addresses pharmaceutical pipeline gaps. We are not relying on one candidate or one therepeutic category. We have a diverse portfolio. We are a lean and nimble organization with a proven management team."

President of DARA BioSciences Discusses Unique
Business Model at Collins Stewart Conference
The President, COO and Chief Scientific Officer of DARA BioSciences, Inc. (DARA), John Didsbury, Ph.D., presented Thursday at the Collins Stewart’s 4th Annual Growth Conference in New York, NY. DARA Bio- Sciences is a development-stage pharmaceutical company that acquires and develops promising drug candidates. DARA focuses its therapeutic development efforts on small molecules from late preclinical development through phase 2 clinical trials. DARA has a portfolio of therapeutic candidates for neuropathic pain, type 2 diabetes, and psoriasis. Dr. Didsbury explained at the conference, "We are executing a unique pharmaceutical product development business model. This model is designed to maximize returns to shareholders, minimize risk, and dramatically reduce the revenue generation time frame in the pharmaceutical industry sector." "We develop drugs that address large markets. We are very product-focused, beginning with identified drug molecule candidates with strong patent production. We are reducing product development risks.We are opportunistic and not therapeutically-focused. We are also focused on the lower-cost, higher-return stages of development. These include late preclinical through to Ph IIa stages," added Dr. Didsbury. "Our corporate strategy is unique. We are not involved in early drug research, which has the highest risk. We also do not participate in Phase III studies, which incur the highest costs. We are very flexible, and we cut programs quickly that have adverse results. We don’t hang on to ‘dogs’." He concluded, "We have a clearly defined business strategy that addresses pharmaceutical pipeline gaps. We are not relying on one candidate or one therepeutic category. We have a diverse portfolio. We are a lean and nimble organization with a proven management team."

Today's Headlines

AGREES TO SELL DIVISION FOR $24.5M: Trans-Lux Corporation (TLX) has reached an agreement to sell its Entertainment division to private equity firm Marwit Capital of Newport Beach, CA. The Entertainment division operates 10 theatres and 69 screens in New Mexico, Colorado, Arizona and Wyoming. The purchase price of $24.5 million includes the assumption of approximately $16.0 million in debt, and with potential additional purchase price of up to $2.3 million based on the performance of increased theater operations at the DreamCatcher Cinema, which just expanded from a six-plex to a 10-plex. Marwit Capital also has an option to purchase raw land from the Company in Silver City, New Mexico. The transaction is expected to close in July, subject to the purchaser obtaining certain bank and landlord consents, bank financing, release of the Trans-Lux entities from mortgages being assumed and completion of other customary conditions. If the transaction is not closed by August 31, 2008, the agreement may be canceled by either party.

SIGNS TWO SUPPLY CONTRACTS: Chindex International, Inc. (CHDX) has signed two contracts for the supply of EUR10.8 million of laboratory and hospital products to Centers for Disease Control in China’s Gansu and Inner Mongolia provinces. The projects were awarded to Chindex’s German subsidiary, Chindex China-Export GmbH, in late January, and the contracts were signed on Monday in a ceremony in Beijing attended by officials from the Chinese National Development and Reform Commission, Ministry of Finance, Ministry of Health, Ministry of Commerce, the German Embassy, and the German KfW Development Bank.

RELEASES POSITIVE RESULTS IN PH 2 TRIAL: Repros Therapeutics Inc. (RPRX) released positive results from an interim analysis of its U.S. Phase 2 endometriosis trial. The study was designed to assess the effect of Proellex on symptom control in women with endometriosis who have moderately severe to severe pain. The data show that pain, the most troublesome symptom associated with endometriosis, is statistically and clinically meaningfully reduced in one to two months of treatment compared with placebo. These results clearly confirm and extend the positive results that were obtained from the initial proof of concept study done in Europe 18 months ago. In that study relief of pain was also rapid and sustained but most pronounced with the Proellex 50 mg dose which was superior to the active control Lupron(R).

ANNOUNCES FIRST COMMERCIAL PRODUCT LAUNCH OF JOINT VENTURE: Akorn- Strides, LLC, a Joint Venture that was formed in 2004 by Akorn, Inc. (AKRX) and Strides Arcolab Limited, announced the first commercial product launch for the Joint Venture, Rifampin for Injection USP, 600 mg/vial. Rifampin is used in the treatment of all forms of tuberculosis in conjunction with Isoniazid and Ethambutol. To date, the company has filed for 18 ANDAs and received nine ANDA approvals. Five additional products are under development and expected to be filed in the next 12 months. The Joint Venture expects to generate immediate revenue from this product launch and from several other new product launches in the second half of 2008. The approximate annual IMS market value of the nine approved products is $192 million.

RECEIVES APPROVAL OF FIRST INTERNALLY DEVELOPED PATENT: Vonage (VG) has received approval of its first internally developed patent, called "Method and Apparatus for Placing a Long Distance Call Based on a Virtual Phone Number." The invention allows customers to use a virtual number to contact parties at distant locations without incurring long distance charges. A virtual number allows a Vonage customer to have a secondary number where they can be reached. For example, a Vonage customer can get a secondary phone number with the same area code as his mother, so when his mother tries to contact him, she can as a local call even if he lives across the country.

BEGINS DOSING IN PH IIA TRIAL: Nile Therapeutics, Inc. (NLTX) has dosed the first acute setting heart failure patient in its Phase IIa, multi-center, open-label, ascending dose clinical study of the company’s lead product candidate, CD-NP, a novel chimeric natriuretic peptide, in development for the treatment of acute decompensated heart failure. The primary objective of the Phase IIa study is to assess hemodynamic effects of intravenous infusions of CD-NP in patients with heart failure. Key assessments include measurement of pulmonary capillary wedge pressure (PCWP), plasma cGMP, a secondary messenger of the target receptor, blood pressure, heart rate, serum potassium and renal function. Nile expects up to 30 heart failure patients will be enrolled in the trial.

ANNOUNCES ACQUISITION: American Reprographics Company (ARP) announced the acquisition of the assets of The Blueprint Company ("TBC"), a provider of reproduction, document management and related services to the architectural, engineering and construction industry in Hawaii. Terms of the acquisition were not disclosed. TBC services all of Hawaii’s major islands and is headquartered on the island of Oahu, in Honolulu. The acquisition established a leading position in major metropolitan, but it also helps close the geographical gap between the Company’s U.S.-based operations, eastern Asian markets, and UDS, ARC’s joint venture with Beijing-based Unisplendour in China.

Wall Street tumbled Wednesday

OTCBlog — Thu, 10 Jul 2008 13:30:00 GMT

THURSDAY, JULY 10, 2008..... Wall Street tumbled Wednesday as investors grappled with renewed worries about the soundness of the financial sector. The major indexes fell more than 2 percent, including the Dow Jones industrial average, which lost more than 230 points. While many financial services companies logged steep declines during the session, government-sponsored lenders Freddie Mac and Fannie Mae were among those hardest hit. Investors are worried that the mortgage finance companies will have to sell more shares than anticipated to compensate for losses from the housing slump. Merrill Lynch & Co. also dropped, after Fitch Ratings put its long-term credit default rating on watch for a possible downgrade. With dismal bank and lender earnings expected in the coming weeks, investors were unable to keep buying a day after stocks, including financials, had logged sharp gains. Investors are bracing for financial companies to take another series of major credit-related write-downs, but the uncertainty about how large they'll be is weighing on the market, said Scott Wren, senior equity strategist at Wachovia Securities. "As we go into earnings season, it's going to be much of the same as the first quarter," Wren said. "Financials are going to suffer the worst comparisons again; consumer discretionary earnings are going to be down, too." Selling accelerated amid light volume, which tends to skew price moves. Meanwhile, oil remained a concern although it had dropped by more than $9 a barrel over the last two days. Crude fluctuated before settling up a penny at $136.05 a barrel on the New York Mercantile Exchange.

According to preliminary calculations, the Dow fell 236.77, or 2.08 percent, to 11,147.44. The Standard & Poor's 500 index fell 29.01, or 2.28 percent, to 1,244.69, while the Nasdaq composite index fell 59.55, or 2.60 percent, to 2,234.89. The pullback left both the Dow and S&P 500 back in bear market territory, with both indexes having logged declines of more than 20 percent since their October highs. Declining issues outnumbered advancers by nearly 2 to 1 on the New York Stock Exchange, where volume came to 1.49 billion shares compared with 1.73 billion shares traded Tuesday. Bond prices edged higher Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.81 percent from 3.89 percent late Tuesday. The dollar fell against other major currencies. Gold prices rose.

"Nervousness breeds volatility," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. "It's a challenging environment." He contends investors are hesitant to buy before getting a better read on the economy. Conroy said eventually, investors will start jumping in again -- but it's unlikely to happen until the market gets through more second-quarter earnings and starts to see signs of a pick-up in the housing market. "That would give the financials a platform to stand on," he said.

Freddie fell $3.20, or 24 percent, to $10.26, while Fannie fell $2.31, or 13 percent, to $15.31. The two companies also dragged the broader stock market lower on Monday as worries arose about their cash levels. Merrill Lynch fell $3.03, or 9.3 percent, to $29.74. "I think that news is really causing tarnish in the marketplace," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners Inc., referring to Merrill Lynch. A negative analyst note about Cisco Systems Inc. weighed on the technology sector. After hitting a new 52-week low of $21.54, Cisco ended down $1.30, or 5.7 percent, at $21.58 after an RBC Capital Markets analyst cut his price target on the network equipment maker. The CEO recently said technology spending will recover later than the company originally thought. In other corporate news, Northwest Airlines Corp. said it will cut 2,500 jobs, or about 8 percent of its work force, and begin charging $15 to check a single piece of luggage in an attempt to offset high oil prices. Shares dropped $1.17, or 16 percent, to $6.30.

Wall Street finished sharply higher Tuesday

OTCBlog — Wed, 09 Jul 2008 13:30:00 GMT

WEDNESDAY, JULY 9, 2008..... Wall Street finished sharply higher Tuesday as oil prices dropped sharply for the second straight day and investors were encouraged by the possibility of more help for the ailing financial system. The Dow Jones industrials gained more than 150 points, and all the major indexes were up more than 1 percent. Crude prices tumbled, falling $5.33 to settle at $136.04 a barrel on the New York Mercantile Exchange, bringing oil's two-day drop to more than $9. The average U.S. retail price of a gallon of gasoline remains at a record $4.108, according to AAA auto club, the Oil Price Information Service and Wright Express. Speeches by Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and JPMorgan Chase & Co. Chief Executive Jamie Dimon gave the market some reassurance about the financial sector. Investors have been concerned this week about the health of government-backed lenders Fannie Mae and Freddie Mac; the two companies' troubles helped send prices lower on Monday, but they also helped lead the rebound Tuesday. The market was relieved to hear Bernanke say in a speech the central bank might extend its lending efforts to investment banks; the Fed began allowing the big companies to borrow after the near-collapse of Bear Stearns Cos. earlier this year. At the Federal Deposit Insurance Corp.'s forum on mortgage lending, where Bernanke spoke, Dimon said "the future is very, very bright," but that "I do think we have some very serious issues to face." Paulson, meanwhile, made an upbeat assessment of the government's efforts to prevent the volume of mortgage foreclosures that touched off the credit crisis last year, although he also said he expects foreclosures to continue. The Treasury secretary also said he was pleased at steps taken by Freddie Mac and Fannie Mae to raise money: "Fresh capital will strengthen their balance sheets and allow them to provide additional mortgage capital, as they balance their responsibilities to their mission and to their shareholders."

All that helped stocks stage a late-afternoon rebound after choppy trading throughout most of the session. "A lot of money is flowing into the previous laggards," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, pointing to financials, health, and housing stocks. "It really seems like an oversold bounce." According to preliminary calculations, the Dow rose 152.25, or 1.36 percent, to 11,383.21, after moving in and out of positive territory. Broader stock indicators rose as well. The Standard & Poor's 500 index rose 21.39, or 1.71 percent, to 1,273.70, while the Nasdaq composite index rose 51.10, or 2.28 percent, to 2,294.42. Bond prices edged higher Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.89 percent from 3.91 percent late Monday. The dollar rose against other major currencies, while gold prices fell.

Concerns about the housing market had weighed on investors the past few sessions. On Tuesday, the National Association of Realtors said Tuesday that pending sales of U.S. homes fell by 4.7 percent in May from the previous month. The worsening housing market not only stifles consumer spending, but also hurts the chances of a recovery at the banks that make loans and are invested in risky mortgage debt. But by afternoon, the market's mood was lifting. Shares of Fannie Mae rose $1.62, or 10.3 percent, to $17.39; and Freddie Mac jumped $1.18, or 9.9 percent, to $13.09. Both mortgage lenders would need capital if a new accounting rule is enacted that would force them to put investments used as a main revenue driver off their balance sheets. "There was just a little light today that things might be better, a real relief bounce," said Ryan Larson, senior equity trader at Voyageur Asset Management. "Things have been beaten up so bad the past couple of weeks that investors are finding a little bit of value down here." Anemic economic conditions led Office Depot Inc. to forecast a nearly 10 percent drop in quarterly sales at the office supplies retailer's North American stores that have been open at least a year. Office Depot shares fell $3.29, or 31 percent, to $7.12. EMC Corp., tumbled $1.75, or 11.5 percent, to $13.39. The company is the majority owner of VMware, whose co-founder and CEO is leaving the company. The Russell 2000 index of smaller companies rose 24.46, or 3.72 percent, to 682.72. Advancing issues outnumbered decliners by a 2 to 1 basis on the New York Stock Exchange, where volume came to 1.73 billion shares.

Wall Street lost more ground

OTCBlog — Tue, 08 Jul 2008 13:30:00 GMT

TUESDAY, JULY 8, 2008..... Wall Street lost more ground in extremely volatile trading Monday, as investors recoiled at a cautious economic outlook from a Federal Reserve official and the possibility of more financial troubles of Fannie Mae and Freddie Mac. The market found only slight solace in retreating oil prices. San Francisco Federal Reserve President Janet Yellen said in a speech the financial markets remained fragile, and that it will take time for conditions to improve. "My expectation is that market functioning will improve markedly by 2009," she said. "But things could get worse before they get better." The comments added to concerns raised in a note by Lehman Brothers analysts that Fannie and Freddie may need to raise more capital as the credit crisis continues. Worries about the ailing financial sector deflated a stock rally early in the day that had been fueled by a $4-a-barrel pullback in oil prices. The market managed, however, to rebound from its lows of the day, when the Dow Jones industrial average sank to its worst level since mid-August of 2006. Some investors bought back into the market to take advantage of the low prices. "The market is so skittish and so scared that half the people believe that this is just another leg of the down market and the other half believes that we're forming a bottom," said Frank Ingarra, assistant portfolio manager at Hennessy Funds. The Dow fell 56.58, or 0.50 percent, to 11,231.96. Over the course of the day, the blue chips rallied, tumbled, rebounded, and then fell once more. The Dow fell as much as 167.80 to 11,120.74 -- its lowest trading level since Aug. 15, 2006 -- but was also up more than 100 in early trading.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 10.59, or 0.84 percent, to 1,252.31, and the Nasdaq composite index fell 2.06, or 0.09 percent, to 2,243.32. The technology-dominated Nasdaq got a modest boost from Yahoo Inc., which rose $2.56, or 12 percent, to $23.91 after Microsoft Corp. expressed support for investor Carl Icahn's effort to oust Yahoo's board next month. Microsoft said a successful rebellion would encourage it to renew its takeover bid for Yahoo, or negotiate another deal. Light, sweet crude fell $3.92 to close at $141.37 a barrel on the New York Mercantile Exchange, after falling by more than $5 a barrel at times. The retreat did little to assuage fears about high energy prices, however. Wall Street, which has been hurtling stocks lower for the past few weeks, remains fearful that consumers are trimming their spending to pay for gasoline. With consumer spending accounting for more than two-thirds of U.S. economic activity, a pullback could create big ripples. Volatility on Wall Street, as measured by the Chicago Board Options Exchange's volatility index, on Monday briefly hit its highest point since March, when worries about the financial markets peaked during the buyout of Bear Stearns Cos.

"It indicates that there was more fear entering the market than there had been in previous weeks," said Todd Salamone, director of trading and vice president of research at Schaeffer's Investment Research. Fannie Mae fell $3.04, or 16.2 percent, to $15.74 and Freddie Mac fell $2.59, or 17.9 percent, to $11.91, after Lehman Brothers analysts said new accounting rules could require Fannie to raise $46 billion more capital and Freddie to raise $29 billion. Citigroup Inc., JPMorgan Chase & Co., and Bank of America Corp. also saw their shares fall ahead of their earnings reports later this month. Citi fell 42 cents, or 2.5 percent, to $16.40; JPMorgan dropped $1.27, or 3.6 percent, to $34.04; and Bank of America fell 87 cents, or 3.9 percent to $21.53. In addition to financials, Merck & Co. dragged on the Dow, falling $1.85, or 4.8 percent, to $36.60. A UBS analyst downgraded the drug maker, citing slowing sales of its HPV treatment Gardasil.

Meanwhile, General Motors Corp. is considering cutting more white-collar jobs and getting rid of some brands, according to a person familiar the company's discussions. The person asked not to be identified because no decisions have been made. GM shares, which recently sank to all-time lows, rose 12 cents to $10.24. Investors haven't been as optimistic lately about the prospects for an economic recovery in the second half of 2008 as they once were. The Dow has fallen the last three weeks while the S&P 500 index and the Nasdaq have logged five straight weeks of declines. With drops of more than 20 percent from their October highs, the Dow and the S&P 500 entered bear market territory last week as rising oil stirred inflation concerns. Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York, said some negative technical indicators on Thursday presaged the market's weakness Monday. Notably, there were no companies that set 52-week highs on the New York Stock Exchange on Thursday, Fullman said. "It's unusual to see a drop-off like that." Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where volume came to 1.52 billion shares.

Famous Hot Dog Eating Contest; But What About the Company?

OTCBlog — Thu, 03 Jul 2008 13:30:00 GMT

THURSDAY, JULY 3, 2008..... Wall Street resumed its sell-off Wednesday after oil hit a new record and a bearish analyst report renewed concerns that General Motors Corp. could run out of cash. The stock market's pullback, which accelerated in the final hours of the week's last full trading day, left the Dow Jones industrial average officially in bear market territory, with the blue chips having fallen more than 20 percent from their October highs. Oil surged to new records above $144 a barrel as the government reported a bigger-than-expected drop in U.S. supplies and as investors worried about tensions in the Middle East. Worries that GM could go so far as to declare bankruptcy only added to investors' unease. The stock fell $1.77, or 15 percent, to $9.98 -- the first close below $10 since September 1954 when Dwight Eisenhower was president. Investors shrugged off better-than-expected sales figures from June and fretted about the company's cash needs. According to preliminary calculations, the Dow fell 166.75, or 1.46 percent, to 11,215.51, the lowest close since August 2006. Broader stock indicators also posted big losses after showing gains for much of the morning. The Standard & Poor's 500 index fell 23.39, or 1.82 percent, to 1,261.52, and the technology-laden Nasdaq composite index fell 53.51, or 2.32 percent, to 2,251.46. The S&P is just shy of the 20 percent pullback that signals a bear market. While the Nasdaq is also in bear market territory, it hit that mark in March, moved higher and has now returned to a bear level. Bond prices rose as investors exited stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.97 percent from 4.01 percent late Tuesday. The dollar slipped versus other major currencies, while gold prices fell.

Gasoline prices hit a fresh high ahead of the July 4th holiday weekend, increasing half a penny overnight to $4.092 a gallon on average, according to AAA, the Oil Price Information Service and Wright Express. Higher energy prices have caused consumers to pare their spending. Crude oil hit a record $144.32 a barrel in after-hours trading after reaching a record settlement of $143.57, up $2.60 on the New York Mercantile Exchange. The Energy Department reported Wednesday that U.S. crude oil supplies fell more than expected last week. Businesses are also struggling with elevated energy costs, and demand is weakening for autos, heavy machinery and steel. The Commerce Department said Wednesday that factory orders rose by 0.6 percent in May. The result was in line with a consensus of Wall Street economists surveyed by Thomson Financial, but was much smaller than the gain of 1.3 percent for April. Traders were trading cautiously ahead of the three-day weekend. The stock market closes three hours early, at 1 p.m. EDT, on Thursday before the Fourth of July holiday on Friday.

"It's your typical holiday week for the summer time," said Stephen Carl, principal and head of equity trading at The Williams Capital Group in New York. "I think we're all familiar with the economic problems out there," he said, and given how weak stocks have been, the market is "staying the course." Lately, that course has been a downward one. Though stocks mostly posted modest gains in the first two sessions of the week, Wall Street saw a steep sell-off last week. The Dow lost 4.2 percent last week while the S&P and Nasdaq fell more than 3 percent amid concerns about the ability of the economy to move ahead with energy prices racing higher.

Top Stories

Famous Hot Dog Eating Contest; But What
About the Company?

With the July 4th holiday approaching, many will spend it with family and friends at local barbeques and celebrate the nation’s birthday. Others will spend it on vacations to exotic locations or at local beaches gathering the sun’s rays while others who are more susceptible to higher energy prices will just spend it watching the television and the many programs that are geared around the holiday.

One of those annual programs is Nathan’s Famous Hot Dog Eating Contest. Since 1916, the competition has been held at the corner of Surf and Stillwell in Coney Island. The widely viewed contest has lately pitted a group of underdogs versus the 5 time champion, Kobayashi, whose small stature leaves the audience in disbelief in the amount of hotdogs he puts down.

While the hotdog competition is very recognizable, the Company’s stock is not. In early June, the Company reported earnings that should have excited many investors looking for top line growth. Revenues from Nathan’s company-owned restaurants, restaurant franchising, retail licensing and sales to their television marketer increased by $2,018,000, to $10,274,000, or 8.6% for the fifty-three weeks ended March 30, 2008 as compared to the fifty-two weeks ended March 25, 2007.

Going forward the Company has some other initiatives to continue that growth. The Branded Product Program sells Nathan’s products at 7700 locations and accounts for 40% of revenue. The new "Frank and Fry" program are miniature outlets of which the Company has opened 28 this year. Additionally, the Company reported that they will begin selling hotdogs in special vending machines.

Comparatively, the Company trades at a P/E of 19, which is somewhat in line with peers. McDonald’s trades at 26, while Yum! trades at 19. Their top line growth though is higher than McDonald’s and Yum!. With quarterly year over year revenue growth of 14% and year end revenue growth of 10%, the name handily outperforms the competition.

While margins were a bit depressed due to rising costs of beef, most notably in their Branded Product Program, the Company has implemented a price increase in an attempt to mitigate the increased cost of beef. If beef prices hold steady or decelerate compared to their top line growth, bottom line income shouldn’t be affected in a profound way. On the balance sheet side, with over $42 million in current assets and only $8.5 million in total liabilities, the Company should be sufficiently capitalized and has responded with a 12% return on equity and an 8% return on assets which are also in line with comparables.

The Company also recently announced a new rights offering to shareholders to thwart any takeover attempts at extremely low prices considering the environment for restaurants in general. Though it may keep investors from realizing short gains in the event of a takeover or unsolicited offer, it should keep long term evaluations and value intact for those that covet a longer term investment. Add to the fact that the Company CEO holds about 10% of the outstanding and one can easily see the Company is geared towards a more longer term growth strategy in nature.

While many in the restaurant industry have seen some substantial decline in value over higher food prices, lower sales, and a difficult economic environment, the Company has stood strong with new product placements and outlets, expanding locations, and growing sales. With their famous competition this weekend and the branding and marketing exposure that will ensue, an increase in consumer awareness is sure to follow, which should benefit their Branded Products Program. With that in mind, investors would be wise to watch.

Today's Headlines

EXPECTS FAVORABLE Q2: AgFeed Industries, Inc. (FEED) announced that Ag- Feed expects to report favorable 2nd quarter financial results before the August 14 reporting deadline. During the 2nd quarter ended June 30, 2008, AgFeed sold a record number of hogs. The Company experienced significant revenues and earnings in a continued, favorable market environment in China. The Company believes that lowered overall production costs due to greater operating efficiency resulted in expanded profit margins in both of our two synergistic business lines -- premix animal feed and hog production.

WITHDRAWS CIRCUIT CITY BID: Blockbuster Inc. (BBI, BBI.B) announced that it has decided to withdraw its proposal to acquire Circuit City. "Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster’s shareholders to proceed with an acquisition of Circuit City," said Jim Keyes, Blockbuster Chairman and CEO. "We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand. We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment."

EARNINGS MISS: Isle of Capris Casinos Inc (ISLE) reported Q4 results ended April 2008. Q4 Revenues were $298.30M; +17.74% vs yr-ago; MISSING revenue consensus by -0.96%. Q4 EPS was ($1.66); -245.83% vs yr-ago; MISSING earnings consensus by -1,283.33%. Co. also reported Year-End results ended April 2008. FY Revenues were $1,125.40M; +12.38% vs yr-ago; MISSING revenue consensus by -0.25%. FY EPS was ($3.16); -2,006.67% vs yr-ago; MISSING earnings consensus by -192.59%. The Company’s loss from continuing operations of ($51.3) million or ($1.66) per share during the quarter ended April 27, 2008 includes a ($78.7) million pretax impairment charge or ($1.60) per share net of income taxes relating to its UK operations. ISLE also recorded a $39.1 million income tax benefit in Q4. ISLE reported $110 million in cash and marketable securities, down from $205 million a year earlier. Debt increased by $89 million to $1,507 million.

BUYBACK: Morgans Hotel Group Co. (MHGC) announced that the Company’s Board of Directors has authorized a repurchase of up to $30 million of MHG common stock, or approximately 9% of its outstanding shares, based on the current market price. The Company has previously completed two stock repurchase programs, totaling $75 million.

MERGER COMPLETED: Two of the country’s original craft breweries, Portland, Ore.- based Widmer Brothers Brewing Company and Woodinville, Wash.-based Redhook Ale Brewery, Incorporated (HOOK), announced the completion of their merger, renaming the combined company Craft Brewers Alliance, Inc. The merger brings together two like-minded craft brewers, each with more than two decades of dedication and passion for great beer. As a united company, the breweries will share ideas, build on their respective legacies and continue to craft the innovative beers for which they are known.

AGREEMENT W/ BAYER: Bayer HealthCare is expanding its commitment to hemophilia with the acquisition of Maxygen’s (MAXY) hemophilia program assets, including a next-generation recombinant Factor VIIa protein known as MAXY-VII. The lead therapeutic candidate is expected to enter Phase 1 clinical testing in the third quarter of 2008. The total transaction is valued at $90 million upfront with a final, potential milestone payment of $30 million. This agreement includes a license to use Maxygen’s MolecularBreeding(TM) technology, a novel research platform, for exploiting gene targets.

PHASE IIB RESULTS: Titan Pharmaceuticals, Inc. (TTP) announced initial analyses show that Spheramine(R) did not meet the Phase IIb clinical study’s primary or key secondary endpoints, with no significant differences detected between the Spheramine and sham surgery arms of the study after 12 months of follow-up. The Phase IIb trial was designed to explore the safety, tolerability and efficacy of Spheramine, the company’s novel cell-based therapy for the potential treatment of moderate to advanced Parkinson’s disease.