What good are analysts who are consistently wrong? For instance, take Arena Pharmaceuticals (ARNA) after FDA Panel Votes Against Arena's Diet Drug Lorcaserin. How much money did their clients lose? Not all analysts work for brokerage houses, but many do, and their pay is not determined by the accuracy of their calls but the increase in sales.

How do they explain their backpedaling? One day they are pushing the stock and the next they are running for cover. Clearly they have to change their opinions based on new information, but perhaps there was too much wild speculation to begin with. More likely, they made too many false assumptions, which they love to do in a crowd so as not to be the lone incompetent.

Continue reading Chasing Value: Analysts' Bad Advice on Arena

Chasing Value: Analysts' Bad Advice on Arena originally appeared on BloggingStocks on Wed, 22 Sep 2010 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Looking to Play Defense? Buy Pfizer

Looking to Play Defense? Buy Pfizer originally appeared on BloggingStocks on Tue, 03 Aug 2010 17:20:00 EST. Please see our terms for use of feeds.

Drug manufacturer Allergan, Inc. (AGN) will be reporting its second quarter results on Monday, with analysts expecting to see an 8% earnings increase from the same period last year.

Analysts have forecast earnings of $0.81 for the quarter, versus $0.75 during the same period last year.

Allergan has managed to outpace analyst estimates for each of the past six quarters, and has not failed to at least match estimates since the first quarter of 2007.

Continue reading Allergan Second Quarter Earnings Preview

Allergan Second Quarter Earnings Preview originally appeared on BloggingStocks on Fri, 30 Jul 2010 18:00:00 EST. Please see our terms for use of feeds.

CVS Caremark (CVS) has received notice from Walgreen (WAG) that the latter would not participate as a provider in any new prescription drug plans awarded to CVS's pharmacy benefit manager after June 7.

Walgreen feels that it's no longer "in the best interests of its customers, pharmacists and shareholders to grow its future business" with CVS. Any current CVS plans in which Walgreen is already a service provider will not be impacted.

Continue reading Walgreen and CVS Caremark in Benefits Row

Walgreen and CVS Caremark in Benefits Row originally appeared on BloggingStocks on Mon, 07 Jun 2010 12:20:00 EST. Please see our terms for use of feeds.

Continue reading $75 Million in Drugs Stolen from Eli Lilly Warehouse

$75 Million in Drugs Stolen from Eli Lilly Warehouse originally appeared on BloggingStocks on Thu, 18 Mar 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Pfizer Sees Some Disappointing Study Results

Pfizer Sees Some Disappointing Study Results originally appeared on BloggingStocks on Fri, 12 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

Insurance companies just bought themselves a year. Claiming that a proposed tax on health insurance would force them to charge higher premiums, carriers were able to convince senators to defer this particular measure for a year.

This comes as a benefit to UnitedHealth Group (UNH), WellPoint (WLP) and smaller companies writing health insurance policies. Manufacturers of medical devices have won some relief, as well, though the drug business didn't. An earlier plan to tax cosmetic medical procedures was also scrapped.

Continue reading Health Insurers Get Brief Relief on Proposed Tax

Health Insurers Get Brief Relief on Proposed Tax originally appeared on BloggingStocks on Mon, 21 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

Bernie Madoff is getting used to his new neighbors. Gone are the days of Montauk and Manhattan, and he isn't sharing his space with topless dancers.

Now, he says goodnight to a drug pusher, chills with a former mobster, and hangs with a convicted spy ... and these guys are probably saying, "I hang around with Bernie Madoff." The former financier Ponzi schemer spends his evenings walking laps around the prison track at the Butner Federal Correctional Complex, not far from Raleigh, N.C.

Continue reading Madoff: Chillin' with mobsters and spies

Madoff: Chillin' with mobsters and spies originally appeared on BloggingStocks on Thu, 22 Oct 2009 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Some big names setting new highs today: STAR, GG, PIR, EBAY

Some big names setting new highs today: STAR, GG, PIR, EBAY originally appeared on BloggingStocks on Tue, 13 Oct 2009 17:45:00 EST. Please see our terms for use of feeds.

• Intel Corporation (NASDAQ: INTC): Chipmaker Intel Corp. traded up to a new 52 week high today of $20.65. It set its 52 week low of $12.05 back on 2/23/09. The stock is trading higher today ahead of the company's third quarter earnings numbers, which are due out tomorrow following the market close. Analysts are expecting the company to show earnings of 27 cents per share. The company reported a loss of 7 cents per share for its second quarter. The stock closed the day up 1.1% at $20.40, up $0.23 on the day.

Continue reading Some big names setting new highs: INTC, STX, SGP

Some big names setting new highs: INTC, STX, SGP originally appeared on BloggingStocks on Mon, 12 Oct 2009 18:00:00 EST. Please see our terms for use of feeds.

The dealmaking continues apace in the drug sector. Today, Warner Chilcott plc (NASDAQ: WCRX) agreed to shell out $3.1 billion for the global pharma business of Procter & Gamble (NYSE: PG). The deal is all-cash.

There are several megatrends driving the pharma deals. First, it's getting tougher to produce new drugs. And unfortunately, many pharma companies are running out on the patent protection of key money-makers. At the same time, President Obama is intent on getting some type of reform in health care.

Continue reading Warner Chilcott strikes a healthy deal for P&G unit

Warner Chilcott strikes a healthy deal for P&G unit originally appeared on BloggingStocks on Mon, 24 Aug 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Wyeth (WYE) shareholders approve sell to Pfizer (PFE)

Wyeth (WYE) shareholders approve sell to Pfizer (PFE) originally appeared on BloggingStocks on Mon, 20 Jul 2009 16:30:00 EST. Please see our terms for use of feeds.

Merck (NYSE: MRK) lost a lot of legal cases over whether its arthritis drug caused heart problems in patients. It even spent $4.85 billion to settle a lot of the claims against it. But, that did not end every suit, and the company is faced with new data that raises questions about the dangers of the drug.

Tough for Merck. But, putting out dangerous drugs can have side affects for both patient and company. According to Reuters, " A long-term analysis of people who took the arthritis drug Vioxx confirms it doubles the risk of strokes and heart attacks."

Most of these lawsuits come down to "did the company know of the danger, and, if so when?" Merck probably did not settle so many cases because it believed it was entirely in the right. It is hard to imagine that it did not have some sense that the data from the new study is true. It did test its own drug before it went on the market. But, did it test it well? Or, did it find that there were possible health risks but that they were acceptable? At least from a monetary standpoint.

The cynical observers of drug company practices say that the firms balance litigation costs against the money that they get from sales. If a product has some danger, it does not matter too much if it makes a great deal more money than the cost of legal consequences.

If the cynics are right, Merck has a tough road ahead.

Douglas A. McIntyre is an editor at 247wallst.com.

New Vioxx study: more trouble for Merck (MRK) originally appeared on BloggingStocks on Tue, 14 Oct 2008 09:25:00 EST. Please see our terms for use of feeds.

Continue reading Government diabetes study hits a speed bump

Government diabetes study hits a speed bump originally appeared on BloggingStocks on Thu, 07 Feb 2008 15:00:00 EST. Please see our terms for use of feeds.

Pfizer's on the rebound originally appeared on BloggingStocks on Fri, 01 Feb 2008 12:22:00 EST. Please see our terms for use of feeds.

Covance (CVD) is not recession-proof, but it's close originally appeared on BloggingStocks on Wed, 16 Jan 2008 16:43:00 EST. Please see our terms for use of feeds.

Continue reading Genentech (DNA) shares dip on underwhelming earnings

Genentech (DNA) shares dip on underwhelming earnings originally appeared on BloggingStocks on Tue, 15 Jan 2008 14:51:00 EST. Please see our terms for use of feeds.

Continue reading Biomarin Pharma has what investors call a 'pipeline of significance'

Biomarin Pharma has what investors call a 'pipeline of significance' originally appeared on BloggingStocks on Fri, 11 Jan 2008 18:09:00 EST. Please see our terms for use of feeds.

Pfizer (NYSE: PFE) shares are slightly cheaper now than a decade ago, even though the company's per-share profits are more than 70% higher. The stock is unloved for a reason: Pfizer, like many drug makers at the moment, is finding it difficult to develop new medicines.

The company's biggest seller, Lipitor for lowering cholesterol, faces the loss of patent protection in 2011. Two of Pfizer's past hits, Zoloft for depression and Norvasc for high blood pressure, are already losing sales to generic competitors. Last year, a promising inhaled insulin flopped in the marketplace. The year before, a drug that raises levels of so-called good cholesterol proved too risky, and research was halted.

And Pfizer isn't alone. Last year, the Food and Drug Administration approved just 16 first-of-its-kind drugs, a 20-year low.

All that said, I think the stock warrants a purchase at today's price for five reasons.

Continue reading Five reasons to buy Pfizer (PFE)

Five reasons to buy Pfizer (PFE) originally appeared on BloggingStocks on Fri, 11 Jan 2008 16:31:00 EST. Please see our terms for use of feeds.

Salix (NASDAQ: SLXP) has announced it will launch a generic version of its Colazal (treatment for ulcerative colitis) with Watson Pharma (NYSE: WPI). Mylan (NYSE: MYL), Apotex, and Roxane have received FDA clearance to market their own generic versions of SLXP's Colazal.

SLXP is recently down $1.01 to $8.00 in pre-open trading. Wachovia says, "Valuation range: $9 to $10."

SLXP January option implied volatility of 104 is above its 26-week average of 72 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options update 12-31-07: Salix volatility jumps on generic Colazal plans originally appeared on BloggingStocks on Mon, 31 Dec 2007 08:55:00 EST. Please see our terms for use of feeds.