For Immediate Release
Chicago, IL - April 12, 2012 - Zacks.com announces the list of
stocks featured in the Analyst Blog. Every day the Zacks Equity
Research analysts discuss the latest news and events impacting
stocks and the financial markets. Stocks recently featured in the
blog include
The Goldman Sachs Group Inc.
(
GS
),
Lloyd's
(
LYG
),
Bank of America Corporation
(
BAC
),
JPMorgan Chase & Company
(
JPM
) and
Amgen
(
AMGN
).
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free Profit from the Pros newsletter:
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Here are highlights from Wednesday's Analyst
Blog:
Goldman Acquires Ariel Reinsurance
The Goldman Sachs Group Inc.
(
GS
) completed the purchase of Ariel Reinsurance's Bermuda-based
insurance and reinsurance operations from Ariel Holdings Ltd. The
terms of this deal were undisclosed.
Goldman will combine the acquired business with its existing
Lloyd's business. The combined entity will work as part of Goldman
Sachs Reinsurance Group (GSRG) with the brand name Ariel
Reinsurance (Ariel Re). GSRG covers the property and casualty
reinsurance business in London.
Founded in 2005, Ariel Holdings Ltd. provides a wide range of
property and casualty insurance and reinsurance products to
companies and policyholders across the globe. It focuses on
achieving above-average economic returns for the risks taken and
maintains adequate financial availability to meet the requirements
of underwriting businesses.
Managers at Ariel Re find the acquisition quite opportunistic.
They look forward to the combined business with superior
underwriting of track records at both. They also expect strong
performance to continue. However, the deal excludes Ariel's credit
and surety business operated at the Zurich branch office, and
Atrium Underwriting Group at
Lloyd's
(
LYG
).
As a part of deal, GSRG's Lloyd's syndicate will reinsure the
current business of Ariel Reinsurance. In the combined structure,
most of Bermuda-based Ariel Re's staff will remain employed.
The acquisition will expand Goldman's property and casualty
coverage, and the name of Ariel franchise will help the company to
serve its clients in a better way.
Through acquisitions and global expansions, Goldman is trying to
grab every opportunity to leverage its strong reputation in
corporate trust market. The expansion mode of the company is
mounting since the beginning of 2012.
The acquisition spree of Goldman indicates that the company is
moving ahead on the path of improving its financial position. Like
other Wall Street biggies such as
Bank of America Corporation
(
BAC
) and
JPMorgan Chase & Company
(
JPM
), the company has been buckled under the weakness in the wider
economy and the fundamental pressures on the banking sector.
Completion of deals like this will enable the bank to enjoy a
better position in the ongoing uncertain global economic scenario
compared to its peers.
Goldman currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. Considering the fundamentals, we also
maintain our long-term Neutral recommendation on the stock.
Amgen Reaches for KAI Pharma
Amgen
(
AMGN
) recently announced its intention to acquire privately-held KAI
Pharmaceuticals. With this acquisition, Amgen will gain global
rights (excluding Japan) to KAI Pharmaceuticals' lead pipeline
candidate, KAI-4169.
Terms of the Agreement
Amgen will make a cash payment of $315 million for the
acquisition. The company has already loaned an undisclosed amount
to support KAI Pharmaceuticals' phase III development plans for
KAI-4169.
KAI-4169
KAI-4169, the lead candidate at KAI Pharmaceuticals, is being
evaluated for the treatment of secondary hyperparathyroidism (SHPT)
in chronic kidney disease (CKD) patients on dialysis. SHPT is a
common and serious complication for the above patient
population.
KAI Pharmaceuticals has already presented encouraging phase IIa
data on the candidate. Patients in the KAI-4169 arm experienced a
sustained reduction in parathyroid hormone (
PTH
), phosphorus, calcium and FGF-23.
KAI-4169 was found to be well tolerated with adverse events
including nausea, headache, anxiety and vomiting. While there were
no discontinuations due to adverse events, the incidence of
gastrointestinal adverse events was similar in both the KAI-4169
and placebo arms.
KAI-4169 is currently in a second phase II study which is being
conducted in CKD patients on dialysis.
KAI Pharmaceuticals has a partnership with Ono Pharmaceutical
Co., Ltd. for the development and commercialization of KAI-4169 in
Japan. KAI Pharmaceuticals is also evaluating the use of KAI-4169
in pre-hemodialysis applications.
Our Take
We note that Amgen already has a presence in the CKD market in
the form of Sensipar (EU trade name: Mimpara). Sensipar, approved
for the treatment of CKD patients on dialysis who suffer from SHPT,
posted sales of $808 million in 2011.
By developing KAI-4169, Amgen is most likely looking to maintain
its share in this market once Sensipar loses patent protection.
KAI-4169 could represent a different and convenient treatment
option for patients as it is being developed as an intravenous (IV)
formulation that will be administered at the time of dialysis while
Sensipar is a tablet. However, KAI-4169 is yet to enter phase III
development and is still a few years from commercialization.
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AMGEN INC (
AMGN
): Free Stock Analysis Report
BANK OF AMER CP (
BAC
): Free Stock Analysis Report
GOLDMAN SACHS (
GS
): Free Stock Analysis Report
JPMORGAN CHASE (
JPM
): Free Stock Analysis Report
LLOYDS BANK GRP (LYG): Free Stock Analysis
Report
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