Food distributor Sysco Corp said on Friday that a record U.S. outbreak of avian flu would limit its chicken and egg supply for nine to 18 months, based on information provided to the company by its suppliers.
Sysco is the biggest U.S. food distributor, whose clients include restaurants, hotels and hospitals. The company is discussing options with its customers, including creating alternative menu items during the period, a Sysco spokesman said in an email.
It is too soon to tell whether the supply squeeze will have a material impact on financial results, spokesman Charley Wilson said. Poultry accounted for 10 percent of Sysco's revenue in 2014, according to filings.
Read MoreNebraska declares state of emergency over bird flu
The U.S. poultry and egg industry is grappling with the country's biggest outbreak on record of avian influenza, which has proven highly infectious and deadly for poultry. Governors in Nebraska, Wisconsin, Minnesota and Iowa have declared a state of emergency, and the outbreak has shown few signs of waning.
Earlier this week, Cargill Inc said it has implemented increased biosecurity measures at its facilities receiving liquid egg tankers and shell eggs from impacted states and that it is working with egg suppliers to ensure they are employing measures to prevent spread of the flu.
Meanwhile, on Thursday, Post Holdings Inc, calling the flu a "force majeure event," said it now estimates that 25 percent of its egg supply has been affected. Sysco is a major customer for Post's Michael Foods business, which sells egg products, according to filings.
Stifel Nicolaus analyst Christopher Growe expects Post's previous estimate of a $20 million financial impact in 2015 to at least double, according to a research note.
Growe said that Post's contracts require the company to go to the open market and to third parties to replace the lost supply at high prices. "We believe that by declaring force majeure, the company will be able to either pass higher
Yes, I think there is an excellent chance that the FDA will approve for elderly AML. In fact, I am optimistic that the filing will get fast track status. There is a compelling need for new Rx.
I think that the pipeline of early stage drugs is under appreciated.
This stock is a strong recommendation of the medical G news letter. They point out that the current price of the stock has already discounted the walls of Angiomax, and they emphasize the powerful pipeline. There are three other drugs likely to get FDA approval this year.
VRTX down 6% today since apparently data did not live up to expectations
I suspect it had to do with either low $ offered by Takeda, or conflict with one of the many other collaborators already under SGEN's umbrella
MEIP dropped 66% this morning after disclosing the failure of its drug, pracinostat in ph2, to help patients with myelodysplastic syndrome in conjunction with azacytidene(Vidaza). CELG is a big player in the MDS area with both Reviled and Vidaza(the latter still has patent exclusivity in EU through 2018, although now generic in US). In addition, CELG also has under development CC-486, an oral version of vidaza, which is felt to be more effective. Pracinostat was felt to be very promising and likely the lead candidate for MDS, and having it knocked out of the box, shifts leadership back to CELG. I would also note that CELG is attacking the most prominent symtom of MDS, anemia, by exercising its collaboration option with XLRN to develop luspaterecpt and sotatercept, the data for which looked most exciting based on data presented at ASH 2014. MDS could easily be 1Bil market for CELG
just completed Palestine, Tx plant and starting new plant, all WITHOUT debt. Patience will win out here. Also a good chance that they will be bought out as the smallest co. in the field.
You are wrong! SNSS hopes to get FDA approval based on approval of a pre-defined sub-group of 60 years old, which was highly statistically significant. The head of FDA Heme/Onc Division, Richard Pazdur, seems much more amenable to approving a sub-group that demonstrates OS, which is the toughest parameter to obtain in a study.
Stock seems way undervalued by every metric. Unfortunately, my sense is that management is very conservative and unlikely to make a significant special dividend or borrow$$ to initiate a share buy back