The FDA issued a second approvable letter for Eli Lilly 's (LLY) Cymbalta, its treatment for depression. Approval is contingent upon the resolution of manufacturing issues. The FDA confirmed that Cymbalta can be approved without any additional studies. S&P keeps hold.
3Com (COMS) says its targeted joint venture partner, Huawei Technologies, signed an agreement with Cisco Systems to halt a patent lawsuit filed by Cisco. According to 3Com, the settlement means 3Com can boost up the supply lines to China and focus on developing new equipment with Huawei.
Clear Channel Communications (CCU) reportedly says it expects to meet its guidance that EBITDA will rise in the mid-to-high single digit percentage in the third quarter.
ST Robinson Humphrey upgraded Sports Authority (TSA) to overweight from equal-weight.
Legg Mason initiated coverage of Hollis-Eden Pharmaceuticals (HEPH) with sell.
Christopher & Banks (CBK) posted 3% higher September same-store sales, and 21% higher total sales. Brean Murray reportedly upgraded to strong buy from buy.
Moody's lowered its senior unsecured debt ratings of Sun Microsystems (SUNW) to Baa3 from Baa1, reflecting the company's continued decline in operating performance, profitability, and limited expectations of improvements in the near term.
Janus Capital Group (JNS) says, in an 8-K, the total amount of management fees earned across the U.S. mutual-fund business from market timing and frequent trading was approximately $1 million in September. S&P reiterates hold.
Actuant (ATU) posted 82 cents, vs. 58 cents, fourth-quarter earnings per share (GAAP) on 22% higher sales, and set a 2-for-1 stock split. Actuant upped the fiscal 2004 earnings per share guidance to $3.20-$3.50 on a pre-split basis, excluding bond buyback costs. It sees $625 million to $650 million in fiscal 2004 sales.
ST Robinson Humphrey upgraded K2 (KTO) to overweight from equal- weight on more attractive valuation and a continued solid fundamental outlook
LaBranche (LAB) sees 3 cents to 5 cents third-quarter earnings per share, vs. the consensus estimates of 17 cents. LaBranche says a New York Stock Exchange investigation of specialist trading practices, as it relates to the company, amounts to a very small fraction of its trading revenues -- less than 1%.
Vaxgen (VXGN) was awarded a three-year, $80.3 million contract from the National Institute of Allergy and Infectious Diseases for advanced development of its anthrax vaccine candidate, rPA102.
Constellation Brands (STZ) posted 34 cents, vs. 53 cents, second-quarter earnings per share (GAAP) as restructuring and unusual charges offset a 32% net sales rise. The company sees 65 cents to 69 cents third-quarter earnings per share, and $1.89 to $2.19 in fiscal 2004 (GAAP). S&P reiterates buy.
Ford (F) plans to cut about 12,000 jobs worldwide in the face of fierce competition from foreign rivals and the impact of the U.S. automobile market's price war. DaimlerChrysler will also cut several thousand positions, according to The Wall Street Journal .
Genentech (DNA) and Roche said that two first-line Phase III studies of Tarceva, plus standard chemotherapy, did not meet their goals of improving overall survival of patients with metastatic, non-small cell lung cancer.
CS First Boston upgraded Coca-Cola Enterprises (CCE) to outperform from neutral.
A U.S. Attorney's Office in New Jersey closed its investigation on Schering-Plough (SGP), which focused on selected company products manufactured in Puerto Rico.
Pharmaceutical Resources (PRX) sees $90 million to $95 million in third-quarter sales of paroxetine, its generic version of Paxil. The company sees roughly $90 million in fourth-quarter sales, and $180 million in 2003. CIBC World raised its estimates.
Solectron (SLR) signed an agreement to design and manufacture products for Nortel Networks, replacing a four-year supply agreement the companies signed in 2000. S&P maintains hold.