Biotechnology company OSI Pharmaceuticals, Inc. (OSIP) announced that a randomized phase III study evaluating Avastin in combination with Tarceva in patients with advanced non-small cell lung cancer failed to meet its primary endpoint of improving overall survival compared to Tarceva in combination with a placebo. We believe the data will have a negative effect on the share price in the short term and since the price has already achieved our target, we are downgrading the shares from Buy to Hold.However, we think the impact of the data is limited in the long run, as the results do not affect Tarceva's approved indication for non-small cell lung cancer, and the median survival actually supports the role of Tarceva in the treatment of the advanced indication. Strong domestic sales and robust growth in ex-U.S. sales have us modeling over $1.1 billion in Tarceva sales in 2008 and beyond. ...

Indianapolis-based Eli Lilly and Co.Â’s (LLY) leading product is Zyprexa, a treatment for schizophrenia and bipolar disorder. Zypadhera, the trade name in Europe for the long-acting formula of Zyprexa, was recommended for approval by the Committee for Medicinal Products for Human Use in September. We expect to hear back from E.U. regulators within the next few months.

In April and September, Alimta received approval in combination with cisplatin in the E.U. and U.S. for first-line treatment of non-small cell lung cancer. According to the management, the drug currently holds 20% market share in the second-line indication.

We also expect Lilly to follow the approval of Cymbalta with the launch of a DTC campaign for the fibromyalgia indication, which should help to extend the very strong sales growth of the drug.

Although we believe the underlying fundamentals of the company remain solid, the recent pipeline setbacks and lack of clarity surrounding antiplatelet

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Sonus Pharma (SNUS) is on the verge of a major catalyst in the form of pivotal Phase 3 clinical trial results