Elan Corporation, plc : Today's Coverage: Hospira Takes a Hit, Elan Bounces Back After Tysabri Sale-Off
02/20/2013| 08:05am US/Eastern
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LONDON, February 20, 2013 /PRNewswire/ --
The drug delivery sector deals with methods and processes of administering
pharmaceutical product for its therapeutic effect in humans (and animals). This is a giant
industry with a market cap of over $43 billion. While some of the major drug manufacturers
also have drug delivery subsidiaries, some companies specialize almost exclusively in this
sector, such as Hospira Inc. (NYSE:HSP) and Elan Corporation (NYSE:ELN). StockCall
initiated free in-depth technical analysis on Hospira and Elan which are currently
available upon sign up at
http://www.stockcall.com/research
Hospira Inc. in Brief
Hospira provides injectable drugs and infusion technologies. It offers generic
acute-care and oncology injectables, and products related to integrated infusion therapy
and medication management. It is a global company that manages its operations in the
Americas, EMEA (Europe, Middle-East and Africa) and APAC (Asia/Pacific). Sign up for the
free technical analysis on Hospira Inc. at
http://www.StockCall.com/HSP022013.pdf
Hospira is a mid-cap company with market cap of $4.97 billion against an enterprise
value (as of February 20, 2013) of $5.94 billion. The stock is trading at 1.58x its book
value of 18.40. Its shares took a hit a few days back after it announced that the FDA
banned a few of its products made in its Costa Rica plant. As a result, it withdrew
guidance one day after its earnings announcements, and management said that "it could see
sales drop by $50M to $100M, and earnings fall by $0.05 to $0.15 a share."
Elan Corporation in Brief
Elan is a bio-technology company focused on discovery and development of advanced
therapies in the field of neuroscience, particularly neurodegenerative and auto immune
diseases. ELN has a market cap of $6.20 billion, which is greater than its enterprise
value of $6.16 billion. At $10.42, the stock trades at 10.03 times its book value of
$1.04. Download the free report on Elan Corporation plc by registering at
http://www.StockCall.com/ELN022013.pdf
Early February, Elan announced restructuring the terms of agreement of its
collaboration with Biogen Idec over Tysabri(R), an alpha-4 integrin inhibitor, which is a
therapy for MS, a neurological disorder involving central nervous system dysfunction among
adults. From an equal sharing collaboration, the company agreed to an upfront payment of
$3.25 billion and a double digit tiered royalty structure. The stock went down slightly
after the announcement, but has bounced back into the green at present.
According to the company's CEO, Kelly Martin, the restructured agreement enables the
company "shareholders to realize, upon close, a meaningful percentage of the current value
of Tysabri while maintaining long term cash flow realization through the multi-tiered
royalty structure of the complete asset."
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