ICOS Plunges as FDA Reconsiders Cialis Drug

P&G posts higher earnings; Dynegy reports flat results; plus more of today's stocks in the news

The FDA said approval for ICOS Corp.'s (ICOS ) and Eli Lilly's (LLY ) Cialis, its treatment for erectile dysfunction, is contingent upon successful completion of more studies. S&P keeps hold. Earlier, the companies said it received an approvable letter from the FDA for Cialis. Separately, Lilly lowered its 2002 operating 2002 EPS to $2.60-$2.65 and sees 2003 operating EPS growth in teens. Lilly cited new launch timelines for Cialis, atomoxetine, and uncertainty about Xigris sales growth. Merrill downgraded. S&P reiterates sell.

Dynegy (DYN ) posted $0.41 vs. $0.41 Q1 recurring EPS on 37% lower operating revenue. Wachovia reportedly upgraded to buy. S&P keeps hold.

Genesis Microchip (GNSS ) posted $0.32 Q4 EPS (pro forma) vs. $0.15 loss on sharply higher revenues and sees $60M+ Q1 fiscal 2003 revenue, and $250M-$270M for full-year fiscal 2003. Prudential and Needham upgraded.

Terayon Communication (TERN ) posted a $0.21 Q1 loss vs. a $0.43 loss on a 6% revenue rise and sees a $0.25-$0.40 Q2 loss (pro forma) on revenue of $50M-$60M, and a $0.75-$1.00 2002 loss. Deutsche Bank and Lehman downgraded.

Jefferson-Pilot (JP ) posted lower than expected $0.78 vs. $0.72 Q1 EPS. Lehman downgraded to market perform from strong buy.

Proctor & Gamble (PG ) posted $0.74 vs. $0.63 Q3 EPS on 10% higher unit volume, and sees Q4 volume growth in the high single digits; P&G also sees fiscal 2003 sales growth of 4%-6%.

Micron Technology (MU ) says Hynix Semiconductor's Board did not accept the restructuring plan proposed by Hynix Creditors' Council, and as a result, the sale of its semiconductor memory operations to Micron did not become effective.

Qwest Comminications (Q ) posted a $0.10 Q1 loss vs. $0.13 EPS on 14% lower revenues, and expects to be free cash flow positive in Q2.

Rent-A-Center (RCII ) posted $1.20 vs. $0.86 Q1 EPS (before goodwill) on 7.7% higher same store sales, and 13% higher total revenue. The company sees $4.30-$4.40 2002 EPS on 4%-6% higher same store sales.

Sierra Health (SIE ) posted $0.25 vs. $0.13 Q1 EPS from continuing operations on a 15% revenue rise, and sees $1.02-$1.05 2002 EPS.

Microsoft (MSFT ) is in final talks to buy Danish software firm Navision for $1.2B, according to press reports.

WorldCom (WCOM ) CEO Bernard Ebbers resigned, according to press reports.

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