Chicago, IL – November 10, 2010 – Today, Zacks Equity Research discusses the Steel Industry, including Bayer (BAYRY), Sanofi-Aventis (SNY), Alcon (ACL), Gilead Sciences (GILD) and Biogen Idec (BIIB).
A synopsis of today's Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/42996/Pharma+%26amp%3B+Biotech+Industry+Outlook+-+Nov.+2010.We currently have a positive outlook on large-cap pharma stocks, supported by the Zacks #1 Rank. This indicates that most of the companies falling in this category have seen their estimates being revised upwards due to an improved outlook. While the companies will continue to face challenges like pricing pressure and genericization, growth in emerging markets and product approvals could help reduce the impact.
In the pharma space, we are positive on companies like Bayer (BAYRY) and Sanofi-Aventis (SNY), which have seen upward estimate revisions over the past 7 days. In addition to posting a strong performance in the recently reported third quarter, Sanofi raised its outlook for 2010.
The company's diversified product portfolio, robust pipeline, strong vaccine segment and expanding presence in emerging markets should hold it in good stead even though the company is facing patent expires for certain products. Sanofi recently announced its intention to acquire BMP Sunstone, a leading consumer healthcare company in China. This deal should help boost Sanofi's presence in the over-the-counter as well as emerging markets.
Bayer delivered better-than-expected third quarter results and maintained its outlook. The company's Crop Science segment seems to be on the path to recovery thanks to improved market conditions.
Although we have a Neutral rating on Abbott, we maintain a positive outlook on the company given its diversified revenue base, strong business segments, and contributions from recent acquisitions and impressive late-stage pipeline. We also have a positive outlook on Alcon (ACL). We believe Alcon will continue witnessing revenue growth based on continued international penetration, new product launches and market share expansion.
In the biotech space, we are positive on names like Gilead Sciences (GILD) and Biogen Idec (BIIB). Gilead's HIV franchise has been helping the company post better-than-expected earnings over the past few quarters, and we expect this trend to continue. Gilead is looking at increasing its presence in the Asian market for hepatitis B virus (HBV), where the infection is quite prevalent. We are encouraged by progress made by the company with its pipeline.
Celgene also posted solid third quarter results, with Revlimid continuing to exceed expectations. The company raised its outlook for 2010 -- this resulted in estimates being revised upwards for 2010 and 2011. Celgene's prospects remain bright given its promising pipeline and the continued solid performance of Revlimid. Label expansion should help boost Revlimid sales further.
Meanwhile, Biogen delivered a strong third quarter with revenues being driven by Tysabri and Avonex. Earnings estimates for Biogen have gone up significantly for 2010 and 2011 based on strong growth prospects.
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ALCON INC (ACL): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
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