Making Commercial Sense of Isis Pharmaceuticals' Cholesterol Drug Mipomersen

Isis Pharmaceuticals (ISIS-$10.31) sold development and marketing rights of its flagship antisense drug mipomersen to Genzyme in January 2008. Mipomersen, a first-in-class apo-B synthesis inhibitor, works by decreasing the production of apo-B, a protein critical to the synthesis and transport of LDL and VLDL cholesterol — the “bad” lipids involved in the buildup of plaque in the arteries and the development of heart disease — through the bloodstream.

Whether mipomersen rises to $1 billion-plus blockbuster status or remains a niche drug with $250 million peak sales will depend on how the FDA feels about approving the drug for use in a broad pool of high-risk patients (refractory to existing lipid-lowering therapy) with uncontrolled LDL.

Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Bearish on China Sunergy

With its domestic market becoming even more crowded with silicon, solar cell, and module makers, China Sunergy (CSUN-$3.91) is looking abroad to stabilize margins. In first-quarter 2010, management expects domestic shipments to be only 35 percent of forecasted 68 - 75 MW (down from 56 percent of total 2008 shipments).

Adding scale and market share — at least near-term — will pressure margins. It is difficult to comprehend how recent downstream acquisitions of solar module makers will stabilize margins — as predicted by chairman Lu. Positioning itself as a player in new markets, like Ontario and Italy, will require even more aggressive price breakpoints: Blended ASP during the fourth quarter declined year-on-year 57.5 percent to US$1.26 per watt. Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Anchors Away for Crude Carriers' Common Stock?

Crude Carriers (CRU-$16.30) is using all of its approximately $254 million in proceeds from its recent IPO to immediately purchase one 2006-built Suezmax vessel, the Miltiadis M II, at a price of $71.25 million. This is to be followed by the acquisition of two new-built, very-large crude carriers (VLCCs) for $96.5 million each, with expected delivery dates in late March and June 2010.

After hitting eight-year lows, spot rates for most VLCC and Suezmax carriers reversed in the fourth quarter. Is now a good time for a new oil tanker venture to set sail?

Read More at BNET Energy > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

No Fun in Sun at Solarfun Power Holdings

Solarfun Power Holdings’ (SOLF-$6.54) finance officer Gareth Kung stressed on the fourth-quarter earnings call that 50 percent of shipments to German-based customers were, in fact, installed in other European end markets. Contrary to expressed optimism, however, megawatt volumes installed in these other markets may prove too small to offset lost sales in Germany through (at a minimum) 2012.

In particular, proposals to decelerate subsidies or delayed feed-in-tariff initiatives in markets outside Germany signal less – not more – visibility in growth for channel demand of Solarfun’s PV modules: Continue Reading > …

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Chesapeake Energy's "Clean and Green" Campaign Fails to Convince Critics

If environmentalists have their way, the flame in Chesapeake Energy’s (CHK-$23.79) “green” logo would be snuffed out. Critics howl that the energy company’s drilling method (like all shale exploration companies), known as hydraulic fracturing, used to extract its gas deposits is toxic.

Thanks to dead cows, water-well explosions, and contaminated groundwater from drilling, Chesapeake Energy’s effort to market natural gas as an environmentally friendly option to “filthy coal” hasn’t gained much traction lately. Now comes word of another public relations disaster for the company: its wastewater wells apparently caused a series of small earthquakes at the Dallas/Fort Worth airport.

Read More at BNET Energy > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Burger King Launching New Assault on Breakfast

Burger King (BKC-$19.60) has yet to win any of the breakfast sandwich battles – whether they be against McDonald’s or Dunkin Donuts. Management is hoping that the national rollout of Seattles “Best Coffee” (lesser-known line of Starbuck’s premium-coffee brands) in its U.S. stores and launches of BK’s Breakfast Muffin sandwich and Breakfast Bowl will attract traffic to the otherwise struggling fast-food chain.

With $1 billion in debt maturing and comparable same-store sales still in free-fall, the company needs to put more than just flame-broiled sizzle and discounted sales of its signature Whopper sandwiches on its balance sheet.

Continue Reading at BNET Food > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Novartis Crazy to Buy Vanda Pharma?

Shares of Vanda Pharmaceuticals (VNDA-$11.80) rallied 15 percent in the last two days after rumors resurfaced that partner Novartis AG might be interested in a takeover. The drug maker has a total market capitalization of $328 million – less than the value of the companies' drug pact, worth an estimated $465 million. Whether a merger makes financial sense, however, will ultimately depend on the sales performance on Vanda's drug of mutual interest -- the schizophrenia treatment Fanapt.

Is Fanapt more than just another “me-too” second-generation antipsychotic? Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Hey Burger King, Where's Herb?

Comparable same store sales at Burger King (BKC-$17.90) operations in North America (more than 7,500 stores) declined three percent versus a year ago.

Consumers are eating out less in this economy — and when dining out they are choosing less expensive restaurants. With the price-value proposition shifting to the value side, Burger King needs to figure out how to retain customers — and their loyalty – in an industry dominated by burger pricing wars.

Patrons at a BK restaurant in Concord, NH, keep coming back for more – as much for a singing server as the food. Of course, such an inexpensive loyalty program makes no sense to management: and Chuck Murphree was told to do it management’s way – no more singing.

Maybe management would prefer another "Where's Herb?" disaster (circa 1985)? Read More > ....






Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

First Solar Forgets an Understanding Is NO Signed Deal

Chief executive Rob Gillette confidently predicted on the fourth-quarter 2009 earning call that demand for larger-scale utility projects, particularly in North America, India, and China, will provide sustainable, long-term growth for First Solar’s (FSLR-$109.00) products. But lack of financing, planned cuts in subsidies, and regulatory issues could eclipse estimated manufacturing demand by quite a bit.

Investors ought be reminded, too, that a Memorandum of Understanding is not a signed agreement.
Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.