SurModics’ (SRDX) fourth-quarter earnings per share came in at 18 cents, below the Zacks Consensus Estimate of 20 cents. The company reported revenues of $19.2 million, down 17% compared to the year ago period. In addition to quarterly results, SurModics came out with fiscal year 2009 results. The company recorded revenues of $121.5 million in 2009, up 25%, compared to $97 million in the previous year and earnings per share of $1.07 for 2009.

On a business unit basis, apart from Diagnostic, revenues from the other three segments – Cardiovascular, Ophthalmology and Other Markets, recorded a decline in revenues for the fourth quarter. While Diagnostic revenues increased 2% year over year to $4.6 million, revenues for the other three segments declined 12% to $9.8 million, 29% to $1.9 million and 41% to $2.9 million, respectively.

Cardiovascular segment results were impacted by the continuing decline in Cypher sales. SurModics derives a substantial

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On Tuesday, SurModics Inc. (SRDX) announced that it licensed its drug delivery technology to Roche (RHHBY) and its wholly owned subsidiary, Genentech. Drug delivery technologies create and support site specific drug delivery polymers and coating technologies for use in drug/device combination products in chosen markets.    Under the terms of the agreement, SurModics is entitled to an up-front payment of $3.5 million. Furthermore, the deal could be worth up to $200 million in delayed payments if multiple products are successfully developed. SurModics will also receive royalties on product sales. SurModics will receive payments for its development services. Under the terms of the agreement, Roche and Genentech have the right to obtain manufacturing services from SurModics.   The transaction provides Roche and Genentech complete access to the biodegradable microparticles developed by SurModics. They intend to use the products in a long-lasting version of their optical drug Lucentis ...

SurModics, Inc. announced yesterday that it has signed an exclusive agreement with the Roche Group and Genentech for the licensing of its proprietary drug delivery system. This agreement will also establish a development process whereby a new, sustained-delivery formulation for the highly successful Lucentis® (ranibizumab) injection will be commercialized and brought to market using SurModics’ technology, logistics and expertise.

This incredibly lucrative agreement includes an initial, up-front licensing fee of $3.5 million, and an estimated $200 million in payments if development of the Lucentis formulation and other products is successful. In addition, the agreement indicates that SurModics will be used to develop and manufacture the drug. With the potential to develop other drugs in the future via this agreement, SurModics will also obtain certain undisclosed royalties on sales of developed products.

Lucentis is the only FDA-approved treatment for neovascular (wet) age-related macular degeneration (ARMD), a degenerative condition of the central retina,

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Last week, Array BioPharma Inc. (ARRY) reported a fourth-quarter net loss of 55 cents per share which was in line with the Zacks Consensus Estimate. The company had a loss of 68 cents in the year-ago quarter. Net loss for fiscal 2009 was $2.67 per share, compared with $2.04 last year.

Quarterly revenue came in at $5.5 million, representing a 10% decline from the comparable quarter in 2008. Sales for the full year fell by 13% to $25 million.

The narrower quarterly loss was primarily attributable to lower spending on research and development. The company spent $21.3 million towards research and development for the quarter for the clinical advancement of its wholly owned drugs versus $28.4 million in year-ago quarter.

Last January, Array had announced a restructuring plan of scaling down its research and development costs and accelerating partnership initiatives to ensure sustainable growth under current market conditions.

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Currently, medicine is, to a large degree, a “one size fits all” proposition. Doctors watch for adverse effects and check personal and family histories. Medical technologies, however, are designed for the general population, not individuals. That’s going to change.

Moreover, there will be huge profit opportunities, in many enabling technologies, for those who invest accordingly. And today I’m going to tell you about a company that will hand you your best chance to make a transformational fortune.

We know that many current treatments work on some people, yet not others. Some drugs are safe for many people, but have dangerous side effects for others. This is because all of us have individual differences in our genetic code based on heredity and environment. Even slight differences can lead to very different reactions to medications.

This has created serious regulatory problems. Drugs are denied regulatory approval not because they do not work, but because some

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I recently highlighted a small biotech firm, ISIS Pharmaceuticals, as a potential “value” growth play. ISIS took a tumble after earnings despite being just a penny off of estimates. Despite slightly lower than expected earnings, the Company showed a strong cash position, moderate cash burn, and a likelihood that it would be able to at least make it through full trials for its most promising drug. I know that for some even this doesn’t count as value. Afterall, the Company is not free cash positive and any value ascribed to the Company is derived from future expectations of its drug pipeline of which there are none currently in distribution.

For those looking for more proven business models but still looking to take advantage of the coming shift towards genetic pharmaceuticals as opposed to small molecule pharmaceuticals, a look at ISIS’s partners may clue you into some

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This week, biopharmaceutical company Human Genome Sciences Inc. (HGSI) announced the commencement of an underwritten public offering of up to 18 million shares of its common stock. The Maryland-based company stated that the underwriters would be given a month’s period to buy up to an additional 2.7 million common shares. While the company should be able to raise funds sufficient to finance operations through this operation, the issuance of shares will lead to considerable dilution in the shareholder base. The company intends to use the proceeds for general corporate and acquisition or investment purposes. Additionally, this funding arrangement is also expected to provide cash for further development of the pipeline.

As a reminder, Human Genome has a robust and diversified pipeline, which includes drugs to treat hepatitis C, lupus, anthrax disease, cancer, rheumatoid arthritis and HIV/AIDS. The company has recently filed a Biologics License Application (BLA) for ABthrax for

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For Immediate Release

Chicago, IL - June 9, 2009 - Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst Jason Napodano, CFA, who talks about the Pharmaceuticals & Biotech Industry, including Wyeth (WYE), Merck (MRK), Schering-Plough (SGP), Bristol-Myers (BMY) and Johnson & Johnson (JNJ).

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

M&A activity remains the wildcard for investment in the sector. We have already seen three significant mega-deals so far in 2009, with Pfizer's $62 billion acquisition of Wyeth (WYE) leading the way. Roche's $46 billion takeover of Genentech and Merck's (MRK) $42 billion acquisition of Schering-Plough (SGP) prove that companies are desperately seeking for ways to grow the top-line while cutting-costs all at the same time.

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The pharmaceutical industry is entering a period of substantial change in 2009. Most of the names in the industry are facing significant patent challenges in the years to come. U.S.-based firms are facing foreign exchange headwinds, as well. Revenue growth is non-existent, and earnings growth is being driven primarily by mergers, cost-cutting and share buybacks. Knowing that investors rarely pay-up for this type of manufactured earnings growth, we struggle to see a broad-based out-performance for the large-cap pharmaceutical sector in 2009.Valuations, however, are attractive, with several of the largest players trading at PEs below 10x, including: Pfizer (PFE, 7.5x), Eli Lilly (LLY, 8.1x), Merck (MRK, 8.3x), Sanofi (SNY, 7.5x), AstraZeneca (AZN, 7.6x) and GlaxoSmithKline (gsk, 9.3x) based on our fiscal 2009 estimates. Attractive valuations, along with big dividend yields, should protect investors against significant downside risk even if the economy continues ...

* Garmin (NASDAQ:GRMN) reported first quarter earnings of 25 cents a share, a 17 cent miss, as revenues declined 34.2% year-over-year to $437 million

* Agrium (NYSE:AGU) reported first-quarter earnings of 4 cents a share, a 20 cent miss, as revenues jumped 58.4% year-over year to $1.75 billion.  The Company said it expects second quarter earnings of $2.00 to $2.40 a share, versus consensus estimates of $2.77

* Foster Wheeler (NASDAQ:FWLT) reported first quarter earnings of 59 cent a share, a 9 cent miss, as revenues declined 29.6% year-over-year to $1.3 billion

* Devon Energy (NYSE:DVN) reported earnings of 48 cents a share, beating Street estimates by 20 cents, as revenues plunged 31.8% year-over-year to $2.0 billion

* Genentech (NYSE:DNA) received accelerated FDA approval of its Avastin drug for the treatment of brain cancer patients

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