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The Zacks Analyst Blog Highlights: Medicines Co., Bristol-Myers Squibb, Biogen Idec, Anika Therapeutics and Zumiez

Zacks Equity Research

For Immediate Release

Chicago, IL – August 9, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include The Medicines Company (MDCO-Free Report), Bristol-Myers Squibb (BMY-Free Report), Biogen Idec (BIIB-Free Report), Anika Therapeutics (ANIK-Free Report) and Zumiez Inc. (ZUMZ-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

Medicines Co. Acquires ProFibrix

The Medicines Company (MDCO-Free Report) recently exercised its option to purchase all the outstanding capital stock of Dutch company, ProFibrix B.V.

The company exercised its option following the announcement of positive phase III data on Fibrocaps, ProFibrix's lead biologic. Fibrocaps, a dry powder topical formulation of fibrinogen and thrombin, is being developed to halt bleeding during surgery.

In the pivotal FINISH-3 study, Fibrocaps met all primary and secondary hemostasis efficacy endpoints in four separate surgical indications - spinal surgery, hepatic resection, soft tissue dissection and vascular surgery.

The Medicines Co. believes these results will support regulatory filings in the U.S. (first quarter of 2014) and the EU (fourth quarter of 2013). Fibrocaps, if approved, may have an advantage over existing products, as it can be used at room temperature and does not require thawing before use. The Medicines Co. believes that Fibrocaps peak sales could exceed $300 million provided it gains approval in major markets.

With The Medicines Co. deciding to exercise its option, all outstanding equity of ProFibrix was acquired for an upfront payment of $90 million. Additional payments of up to $140 million may be made on the achievement of U.S. and EU regulatory approvals and sales milestones.

Our Take

This acquisition makes strategic sense – the successful launch of Fibrocaps will allow The Medicines Co. to strengthen its position in the hemostasis market. Moreover, the company will be able to leverage its activities in surgery centers in the U.S. and speed up its entry in Europe.

We note that The Medicines Co. has an agreement with Bristol-Myers Squibb (BMY-Free Report) for marketing Recothrom, an FDA approved recombinant thrombin used as a topical hemostat to control non-arterial bleeding during surgical procedures.

The Medicines Co. currently carries a Zacks Rank #4 (Sell). At present, companies like Biogen Idec (BIIB-Free Report) and Anika Therapeutics (ANIK-Free Report) look well-positioned with both being Zacks Rank #1 (Strong Buy) stocks.

Zumiez Records Positive July Comps

Wash.-based retailer of sports-related teen apparel, Zumiez Inc. (ZUMZ-Free Report) reported 0.8% increase in comparable-store sales for the four weeks ended Aug 3, 2013. This compares unfavorably with a comps rise of 7.5% for the four weeks ended Jul 28, 2012. The marginal comps growth was due to rise in dollars per transaction, partially offset by lower comparable store transactions.

Net sales for July increased 19.3% to $56.1 million from $47.0 million reported in the year-ago period.

Of late, the company’s comps have been witnessing a declining trend due to the persistent fall in comparable store transactions. Looking at the trailing seven months’ performance, we observe that the company’s comps growth rate has plunged lower every month, with the exception of April when it rose 4.6% and February, when the company posted negative 8.9% comps.

Further, the company posted a comps rise of 0.9% in the second quarter of fiscal 2013 and 0.2% hike in year-to-date comparable store sales.  The reported performance was well within the company’s earlier guided range of flat to 2% increase. Zumiez is slated to announce second-quarter 2013 earnings result on Aug 26, 2013.

The company had earlier projected revenues in the range of $155–$158 million for the second quarter. Based on sales projections, the company had anticipated earnings per share to be 12–14 cents.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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