ViroPharma, Quest Diagnostics, Goldman Sachs Group, Royal Bank of Scotland
Group and Deutsche Bank highlighted as Zacks Bull and Bear of the Day
CHICAGO, Oct. 23, 2013
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:
Bull of the Day:
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
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.
Bear of the Day:
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
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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About the Bull and Bear of the Day
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