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SOURCE Zacks Investment Research, Inc.
CHICAGO, Oct. 23, 2013 /PRNewswire/ -- Zacks Equity Research highlights ViroPharma (Nasdaq:VPHM-Free Report)as the Bull of the Day and Quest Diagnostics (NYSE:DGX-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis ontheGoldman Sachs Group, Inc. (NYSE:GS-Free Report), Royal Bank of Scotland Group plc (NYSE:RBS-Free Report) and Deutsche Bank AG (NYSE:DB-Free Report).
Here is a synopsis of all five stocks:
ViroPharma (Nasdaq:VPHM-Free Report) is up about 60% this year and nearly half of that gain came in one day last month when rumors were swirling about potential buyout suitors. According to Bloomberg News, Sanofi and Shire have shown interest in acquiring ViroPharma.
Now that ViroPharma has earned a Zacks #1 Rank (Strong Buy), this pullback to $37 looks even more interesting than just a bull flag consolidation in the wake of the rumors.
We'll look at the analyst estimates and recent EPS beats that have made VPHM a #1 in a moment, but first, here's the compelling chart with that big green candle on September 13 worth 11.7 million shares, which clearly indicates institutional accumulation...
ViroPharma develops and commercializes drugs specifically targeting unmet medical needs with particular focus on orphan diseases, which the FDA defines as rare conditions affecting less than 200,000 people, or that affect more than 200,000 persons but are not expected to recover the costs of developing and marketing a treatment drug. In essence, the FDA grants special "Orphan Drug Designation" status to drugs and biologics targeting these diseases.
ViroPharma's key drugs include Cinryze for hereditary angioedema (HAE), Plenadren for the treatment of adrenal insufficiency (AI), Buccolam in Europe for the treatment of pediatric seizures, and Vancocin for the treatment of C. difficile- associated diarrhea (CDAD).
ViroPharma's growth story currently revolves around Cinryze, which is approved in the U.S. for routine prophylaxis against angioedema attacks in adolescent and adult patients with HAE.
Cinryze accounted for 76% of total sales in 2012. In the EU, Cinryze received approval for routine prevention, pre-procedure prevention and acute treatment of angioedema attacks in adults and adolescents in 2011.
Cinrzye has been granted marketing exclusivity by the U.S. Food and Drug Administration (FDA) until 2015 under the Orphan Drug Act.
I last wrote about Quest Diagnostics (NYSE:DGX-Free Report) as a "Bear of the Day" in February of this year. Since then, the stock has continued to occupy the cellar of the Zacks quantitative model, consistently holding a #4 (Sell) or #5 (Strong Sell) Rank.
And that should have been enough to keep investors away, unless they like trading a stock that has only treaded water between $55 and $63 and basically flat-lined for the year while the S&P is up over 20%.
This week, DGX dropped once again from a #4 to a #5 Rank.
Quest Diagnostics is the leading provider of diagnostic testing, information and services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic testing services through its national network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff.
With a new high of $405 million in quarterly net income in their report last week, you would think that things were looking up for Quest. But the continued decline in the top line, along with an actual earnings miss, is what must have concerned analysts most.
Goldman to Buy RBS Money Market Funds
Goldman Sachs Asset Management (GSAM), a division of Goldman Sachs Group, Inc. (NYSE:GS-Free Report), announced its plans to acquire the Global Treasury Funds from RBS Asset Management (RBSAM), an arm of The Royal Bank of Scotland Group plc (NYSE:RBS-Free Report). The Global Treasury Funds comprise money market funds.
According to Goldman, the deal could nearly double its Sterling-denominated offering in the European market. GSAM has 33% share in Europe of its total money market funds worth $195 billion as of Sep 30, 2013.
RBS, in order to increase focus in its core operations, has decided to exit the money market fund arm, entrusting Goldman with client service. Until the transition is complete, RBS and GSAM will work together to ensure proper service to RBS' money market fund clients. Further, there will be no changes in the management of accounts. Alongside, funds or investors will not bear any expenses during the transition period.
The deal is likely to close in first-quarter 2014. Since the Global Treasury Funds are based in Ireland, approval by the Central Bank of Ireland and the Irish Stock Exchange is required to close the deal.
In Sep 2013, GSAM announced its decision to acquire Deutsche Asset & Wealth Management (DeAWM), a part of Deutsche Bank AG (NYSE:DB-Free Report), with total assets worth $21.6 billion (as of Jun 30, 2013). The deal is likely to close in first-quarter 2014. In May 15, 2012, GSAM had acquired Dwight Asset Management (Dwight) from Old Mutual Asset Management (OMAM). Both the transactions will expand its defined contribution (DC) franchise.
Goldman currently carries a Zacks Rank #3 (Hold).
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