Cantor Morning News | Healthcare

Genzyme continues to play out with a New York Times article says 2 major SNY investors will not be pleased if the French company pays higher than $70 range for GENZ, and that Genzyme will likely reject a bid for under $80. Many analysts still anticipate a deal to be done in the mid-70’s range.. WSJ saying today that Evolution Securities did some work and that the sum of GENZ’s parts equates to $55-65 p/share while they continue to be investigated for contamination issues. SNY could pay more than $80 but the firm says that would be a mistake..

Active Names

Biotech/Pharma: LIFE PFE FRX WCRX VVUS ISIS NABI

Healthcare Services: BIOS XRAY PRXL MDF IDXX ANGO DVA INMD BKD AET ABMD

Restaurants/Publishing/Retail: BKC TXRH

Earnings

DNDN Dendreon (1.04) vs (.50c). Revs $2.8M vs $4.4M

CRA Celera Guides full year EPS to ($0.30)-($0.25) vs ($0.21)-($0.15) vs Reuters ($0.24); revenues to $135-145m vs prior $145-155m and vs $148.8M.

BIO Bio-Rad Laboratories reports Q2 EPS $1.35 vs Reuters $1.28. Company reports revenues of $467.7M vs Reuters $473.9M

RHB RehabCare Group reports Q2 EPS $0.59 including items (.04c included) vs .60c Company reports revenues of $334.0M vs Reuters $337.2M.

PZZA Papa John's reports Q2 EPS $0.49 vs Reuters $0.43. Company reports revenues of $280.6M vs Reuters $272.4M.

DENN Denny's reports Q2 EPS $0.05 vs Reuters $0.07. Company reports revenues of $135.1M vs Reuters $140.2M.

MRT Morton's Restaurant reports Q2 EPS $0.02 ex-items vs Reuters $0.03. Company reports revenues of $70.5M vs Reuters $70.6M.

ABMD Abiomed reports Q1 EPS ($0.10) ex-items vs Reuters ($0.14). Company reports revenues of $22.0M vs Reuters $22.9M.

ARQL ArQule (.18c) vs (.20c). Revs $7M v $6.6M. Guides FY to higher end.

MDF Metropolitan Health Networks reports Q2 EPS $0.14 vs Reuters $0.08. Company reports revenues of $92.6M vs Reuters $90.3M.

ENZN Enzon (.08c) vs (.07c). Revs $13.7M vs $17.3M

Sector News, M&A, Capital Raises

DNDN Dendreon earnings 10Q said they see supplying Provenge to 2,000 patients in 1^st 12 months, and that they’ve received 500 scripts since May.

CYPB Cypress Bioscience, Inc. Wednesday said it is discontinuing its rights under its agreement with Forest Laboratories to co-promote Savella,

its drug for fibromyalgia.

MDCO announced that the U.S. District Court for the Eastern District of Virginia has granted the company's motion for summary judgment and ordered the United States Patent and Trademark Office to consider MDCO's patent term extension application timely filed. (THE STOCK TRADED UP INTRADAY ON SPECULATION OF THIS NEWS)

DEPO Depomed receives confirmation from Pfizer (PFE) that no infringement suit to be filed on dm-1796 nda

Research Away

PRXL Parexel upgraded to Conviction Buy from Buy at Goldman - Target $28.

SQNM Sequenom upgraded to buy from hold at Soleil Securities. Tgt $8

BKC Burger King Holdings downgraded to neutral from outperform at RW Baird. Tgt $19

CMG Chipotle Mexican Grill initiated buy at Janney Capital. Tgt $166

ARNA Arena Pharmaceuticals downgraded to hold from buy at Hapoalim Securities

LLY Eli Lilly downgraded to hold from buy at Jefferies Tgt $38

Cantor Research

Yesterday, after the close, Enzon reported 2Q:10 EPS of $(0.09), in-line with our estimated EPS of $(0.07) and consensus EPS of $(0.06), and ended the quarter with cash and equivalents of approximately $504.0 million.
The company continues to focus on transformation and we expect Enzon to monetize its PEGINTRON royalty stream adding to its cash position that we anticipate could be used in a share buy-back and/or dividend.
We had expected ENZN-2208 Phase II colorectal cancer clinical trial data 4Q:10; however, management stated data from this indication, and the Phase II breast cancer trial, will instead be presented at a major 2011 oncology meeting, likely ASCO, in our view.
Data from Enzon's emerging antisense Locked Nucleic Acid (LNA) RNA pipeline, including Phase I clinical trials of HIF-1 alpha and survivin, are also expected in 2011. Preclinical data on the androgen receptor, HER3 and beta-catenin, three of six additional RNA antagonists Enzon is developing under its Santaris (private) license, will be presented at the EORTC-AACR-NCI meeting in November 2010, according to the company.
The company appears focused on advancing its preclinical pipeline toward ENZN-LNA early-stage-proof-of-technology. While Enzon's core competencies potentially enable LNA-based therapeutics enhancement, the company's lack of platform control/improvement/expansion and inability to engage pharma for access alliances could limit upside, in our view. Further, Enzon does not have ex-U.S. product rights—a key pharma commercialization negotiation card, in our view.

We view clinical data as meaningful and necessary toward validating a commercial value-creation relationship the company may seek and recommend waiting for a key de-risking point. We maintain our HOLD rating.

AFTER BELL

After Market Close	Actual	Reuters*	Actual	Reuters*
	ALNY	Alnylam Pharmaceuticals		(0.30)	25.8M
	BNVI	Bionovo		n/a	n/a
	CATM	Cardtronics		0.21	134.0M
	CBOU	Caribou Coffee		0.09	68.3M
	CHSI	Catalyst Health Solutions		0.44	849.7M
	CSU	Capital Senior Living		0.04	50.3M
	DRRX	DURECT Corp		(0.08)	7.1M
	GHDX	Genomic Health		(0.02)	44.4M
	HNSN	Hansen Medical		(0.22)	7.9M
	IMGN	Immunogen		(0.24)	3.4M
	ISTA	ISTA Pharmaceuticals		0.01	37.2M
	JACK	Jack In The Box		0.53	521.2M
	KND	Kindred Healthcare		0.36	1.10B
	KNDL	Kendle International		0.08	87.4M
	LHCG	LHC Group		0.69	153.8M
	MOH	Molina Healthcare		0.31	1.00B
	NPSP	NPS Pharmaceuticals		(0.16)	23.1M
	ONXX	Onyx Pharmaceuticals		0.03	67.7M
	OSUR	OraSure Technologies		(0.08)	17.5M
	PDII	PDI Inc		(0.20)	32.2M
	PSYS	Psychiatric Solutions		0.61	482.3M
	SDIX	SDIX		n/a	n/a
	TRGT	Targacept		0.13	20.8M
	TSCM	TheStreet.com		0.00	14.8M

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