Today's Coverage: Hospira Takes a Hit, Elan Bounces Back After Tysabri Sale-Off

    Today's Coverage: Hospira Takes a Hit, Elan Bounces Back After Tysabri

PR Newswire

LONDON, February 20, 2013

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

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 

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  

Early February, Elan announced restructuring the terms of agreement of its
collaboration with Biogen Idec over Tysabri®, 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

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