Zacks Analyst Blog Highlights: Novartis, Biogen Idec, Teva, Apache and Devon Energy - Press Releases

For Immediate Release

Chicago, IL – June 14, 2010 – Zacks.com Analyst Blog features: Novartis (NVS), Biogen Idec (BIIB), Teva (TEVA), Apache Corporation (APA) and Devon Energy Corporation (DVN).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

FDA Panel Backs Novartis Drug

Recently, Novartis' (NVS) FTY720 (fingolimod) received a favorable recommendation from an advisory committee of the US Food and Drug Administration (FDA). The drug has been developed for the treatment of patients with relapsing multiple sclerosis (MS) orally. Although the FDA is not bound to follow the panel’s recommendation, it generally does so.

We are pleased to note that the committee unanimously concluded that FTY720 (0.5 mg) demonstrated safety and effectiveness in treating relapsing remitting MS.

Novartis submitted the application for regulatory approval of FTY720 to the FDA and European Medicines Agency (EMA) in December 2009. The FDA granted priority review status to the drug in February 2010, which reduced the standard 10-month review period to six months (June 2010). However, since the FDA asked for an advisory committee meeting, the review process has been extended by another three months till September 2010.

In April 2010, Novartis presented positive data for FTY720 which showed the drug’s effectiveness irrespective of the treatment history of patients. It was observed that the drug reduced annual relapse rates (ARR) by 62% in treatment naïve patients compared to placebo, and by 44% for patients who have undergone treatment.

Another study, conducted for over a period of one year, was aimed at evaluating the efficacy of FTY720 compared to Biogen Idec's (BIIB) Avonex (injectable). It was observed that the drug reduced relapse rates by 52% compared to Avonex.

MS is an inflammatory and neurodegenerative condition that affects almost 2.5 million people globally. However, the market is highly competitive with the presence of products such as Biogen’s Avonex ($2.3 billion in revenues in 2009) and Tysabri ($1.1 billion), Teva's (TEVA) Copaxone ($2.8 billion) and Merck KGaA’s Rebif (€1.5 billion).

We believe a unanimous decision from the panel and encouraging data so far might fetch Novartis the approval from the FDA. If approved, FTY720 would potentially be the first oral therapy for treating relapsing MS.

Apache Closes GoM Assets Deal

Independent oil and gas exploration company Apache Corporation (APA) procured the oil and gas assets from Devon Energy Corporation (DVN) for $1.05 billion, almost 8 weeks after the announcement of the acquisition. The assets were in the shallow waters of the Gulf of Mexico Shelf with an estimated net proved and probable reserves of 83 million barrels of oil equivalent (about 41 million barrels equivalent are oil and natural gas liquids) at year-end 2009.

The acquired properties are expected to produce approximately 9,500 barrels of liquid hydrocarbons and 55 million cubic feet of gas per day (net). Nearly 90% of the proved reserves are held by seven major fields with Apache expected to operate 75% of the production. Initial evaluation by Apache resulted in identifying 79 recompletion opportunities and 26 drilling prospects across the acquired assets.

Devon's quest to divest all Gulf assets comes to an end with this transaction diverting the company’s focus to onshore assets in North America. The company will distribute the proceeds from the sales among onshore property expansion, debt reduction and share buybacks.

Following the acquisition, Apache’s Gulf assets portfolio has been enhanced and it will account for almost 20% of the company’s estimated worldwide production. Management is guiding toward annual production growth of approximately 5 – 10% in 2010 as the long-term production growth visibility has significantly improved. The acquisition will not only boost Apache’s per share earnings, cash flow, production and reserves in 2010, but will also augment its track record of value creation.

Although the acquisition has its positive impacts, we do not expect Apache’s shares to outperform its peers in the next couple of quarters as the company will take time to absorb the benefits of the transaction.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com