2009-06-26 23:07:02 -

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: Sanofi-Aventis (NYSE: SNY : ), Biogen-Idec (Nasdaq: BIIB : ), Marathon Oil Corporation (NYSE: MRO : ),

Shell (NYSE: RDS.A : ) and StatoilHydro (NYSE: STO : ).

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Here are highlights from Thursday’s Analyst Blog:



Sanofi Doing Deals



Sanofi-Aventis (NYSE: SNY : ) posted EPS of €5.36 in 2008, an increase of just 2% from 2007. Revenue fell 1% in 2008 as a number of products experienced significantly declining sales including Ambien, Tritace and Copaxone.

For 2009 we expect revenue growth to return, as generic erosion is more than offset by strong growth of Taxotere, Lantus, Avapro and the vaccines business. We expect revenue growth of 6% in 2009 and EPS of €5.93 ($4.10), up 11% from 2008. EPS should continue to benefit from strong contributions to royalty income from U.S. Plavix sales and operating margin improvement as a result of cost-cutting. We also expect foreign exchange to benefit both revenue and EPS in 2009 as the U.S.
dollar strengthens against the Euro.

Generic competition will continue to be a concern, however. While we expect new product launches to make significant revenue contributions in the early part of the next decade, they will not be enough to compensate for increased generic erosion. Gross margins will likely contract now that Lovenox and Plavix (E.U.) sales are at or near peak levels, combined with softer pricing on current and soon-to-be off-patent drugs.

We expect Sanofi to continue look to contain operating costs in order to grow EPS in the face of weakening sales of some of its biggest products.

This should help keep EPS at positive, albeit modest, growth over the next few years.

We also expect the company to look to grow revenue through additional partnering deals and acquisitions. We expect Sanofi to look for a small-to-mid sized deal in the high-growth biotech space in order to help plug revenue holes left by patent expirations. We believe Biogen-Idec (Nasdaq: BIIB : ) makes the most sense as an acquisition candidate.


Marathon Leaving Irish Project

On Wednesday, June 24, 2009, Texas-based Marathon Oil Corporation (NYSE.
MRO : ) announced the sale of its interest in the Corrib offshore natural gas development project on Ireland's northwest coast, a joint-venture between Shell (NYSE: RDS.A : ), StatoilHydro (NYSE: STO : ) and Marathon. The company has reached an agreement in this regard with Alberta-based oil and gas company Vermilion Energy Trust.

Per the agreement, Marathon will sell its wholly owned Irish subsidiary, Marathon International Petroleum Hibernia Ltd. (having an 18.5% interest in the Corrib development) to Vermilion in a deal worth between $235 million and $400 million, subject to the timing of first commercial gas at Corrib.

Under the terms of the deal, Vermilion will pay Marathon an initial payment of $100 million at the closure of the transaction, expected during the second half of 2009, subject to government and regulatory approvals. The remaining portion will be due at the time of first production from the site, which is expected between late 2010 and late 2011. Additionally, Vermilion is slated to invest up to $300 million to complete the facilities needed to reach the gas.

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