Technical Trade Alerts on Drug Manufacturing Stocks: NVS, JNJ, PFE, GSK, ABT, AZN for Nov. 20

Novartis AG (NVS) Trade Alert – NVS Adopts More Efficient Research Strategies

Novartis AG (NVS) shares slipped 2.06% to trade at $46.70 Thursday morning. Novartis provides healthcare solutions that address the needs of patients and societies worldwide. The company recently disclosed to analysts the adoption of a research strategy that helps the company get more compounds into human testing by particularly focusing on diseases where the underlying genetics are well understood.

According to Dr. Mark Fishman, president of the Novartis Institutes for BioMedical Research, a related new approach also proving successful is to start research by focusing on a narrow group of patients with the same genetic variant or other characteristics related to a disease, then figure out how to fight it in that small group.

With the intention to eventually expand it to large populations, the strategy has enabled the company to do human testing quicker, with fewer patients and with more success, according to Dr. Fishman.

Like most of its competitors, the company is also putting more effort into diseases with unmet need and into biotech research. Novartis now has 14 biological drugs, compounds made through genetic engineering or grown in living cells, in human testing and many more in pre-clinical testing, particularly ones containing antibodies that can zero in on targets such as cancer cells.

Novartis also recently said its Rasilez HCT, a single-pill combination of two high blood pressure medicines, has been approved by Swissmedic as a new treatment for high blood pressure. The company said Rasilez HCT is twice as effective at reducing blood pressure compared to HCT alone.

Its Pharmaceuticals division researches, develops, manufactures, distributes and sells pharmaceuticals in therapeutic areas, including cardiovascular and metabolism; oncology and hematology; neuroscience; respiratory; infectious diseases, transplantation and immunology; ophthalmics, dermatology, gastrointestinal and urinary; and arthritis and bone.

The company's Vaccines and Diagnostics division focuses on the development of preventive vaccine treatments and diagnostic tools. It offers meningococcal, pediatric and travel vaccines; and blood testing and molecular diagnostics for preventing the spread of infectious diseases. The Novartis Sandoz division develops, produces and markets drugs, as well as pharmaceutical and biotechnological active substances.

Its Consumer Health division includes three units: Over-The-Counter Medicines (OTC), Animal Health and CIBA Vision. OTC unit offers self medications; Animal Health unit provides veterinary products for farm and companion animals; and CIBA Vision unit markets contact lenses, lens care products and ophthalmic products.

Novartis has strategic alliance with Morphosys AG for the discovery and development of biopharmaceuticals; and with Intercell AG to develop and manufacture various vaccines to prevent life-threatening viral and bacterial diseases and influenza vaccines.

In today's daily chart, NVS's MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line and also below the critical 0 level, indicating that moving averages are trending lower. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving average.

Johnson & Johnson (JNJ) Trade Alert – FDA Considers Approval of JNJ's Thermocool Catheters for Atrial Fibrillation Treatment

Johnson & Johnson (JNJ) shares slipped 1.81% Thursday morning to trade at $57.07. Johnson & Johnson engages in the research and development, manufacture and sale of various products in the health care field worldwide. The company's Thermocool family of catheters for the treatment of atrial fibrillation or irregular heart rhythms is under consideration by the Food and Drug Administration for approval.

The Federal health advisers will decide this week on whether a catheter from Johnson & Johnson should be approved to treat irregular heart rhythms that often cause stroke and affect more than 2.3 million adults in the United States.

Johnson & Johnson's device, already approved to treat other heart conditions, uses extreme heat to carefully destroy muscle cells that cause irregular heart beats. The company reported that, on average, 62.7% of patients treated with the catheter were free from fibrillation symptoms after nine months, compared with 17.2% of patients taking traditional drug therapy.

The company recently declined to renew its global sponsorship of the International Olympic Committee (OIC). As confirmed by the IOC, Johnson & Johnson would not renew its top-level sponsorship worth up to $100 million and passed on the chance for the lucrative global sponsorship deal.

As stated by Johnson & Johnson spokeswoman Lorie Gawreluk in an e-mail, "Our sponsorship of the International Olympic Committee concludes at the end of 2008 and will not be renewed."

For the Beijing Games, Johnson & Johnson manufactured its signature adhesive bandages with Olympic mascots on them and set up a pavilion for fans to come see terra-cotta warriors from the time of emperor Qin Shi Huang.

Johnson & Johnson's Consumer segment provides products used in baby care, skin care, oral care, wound care and women's health care fields, as well as nutritional and over-the-counter pharmaceutical products under AVEENO, BAND-AID, CAREFREE, CLEAN & CLEAR, JOHNSON'S, LISTERINE, MOTRIN IB, NEUTROGENA, RoC, PEPCID AC, REMBRANDT, SPLENDA, STAYFREE, SUDAFED, TYLENOL and Vend'me brands.

The company's Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology. It offers RISPERDAL to treat the symptoms of schizophrenia, bipolar mania and irritability associated with autistic behavior in indicated patients; RISPERDAL CONSTA, an injectable and INVEGA Extended-Release tablets, for treating schizophrenia; REMICADE, a biologic for treating Crohn's disease, ankylosing spondylitis, psoriasis, psoriatic arthritis, ulcerative colitis and used in the treatment of rheumatoid arthritis; PROCRIT that stimulates red blood cell production; TOPAMAX for adjunctive and monotherapy use in epilepsy, as well as for the treatment of migranes; LEVAQUIN and FLOXIN anti-infective products; and ACIPHEX/PARIET, a proton pump inhibitor. This segment also provides DURAGESIC to treat chronic pain; CONCERTA for treating attention deficit hyperactivity disorder; and ORTHO EVRA, a contraceptive patch.

Johnson & Johnson's Medical Devices and Diagnostics segment offers circulatory disease management, orthopaedic joint reconstruction and spinal care, wound care and women's health, minimally invasive surgical, blood glucose monitoring and insulin delivery and diagnostic products, as well as disposable contact lenses.

In today's daily chart, JNJ's MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently below the stock's 13-day moving average, a bearish trend is generally indicated.

Pfizer Inc. (PFE) Trade Alert – PFE Launches Pfizer Regenerative Medicine, a New Research Unit

Pfizer Inc. (PFE) shares dropped 1.22% Thursday morning to $15.36. Pfizer engages in the discovery, development, manufacture and marketing of prescription medicines for humans and animals worldwide. The company recently announced the launch of a new research unit known as Pfizer Regenerative Medicine. This independent research unit will build on recent scientific progress in understanding the biology of stem cells and the opportunity to discover and develop a new generation of regenerative medicines for major medical needs.

According to Pfizer spokeswoman Kristen Neese, the company plans to invest about $100 million in the project over the next three to five years.

Pfizer said the unit, designed to operate with the flexibility and independent culture of the biotech industry, will collaborate with researchers at biotech and drug companies and universities around the world. With the ultimate goal to deliver new medicinal products that can pave the way for the use of cells as therapeutics, scientists at Pfizer Regenerative Medicine will explore the use of stem cells to develop future treatments that may prevent disability, repair failing organs and treat degenerative diseases.

According to the company, Pfizer Regenerative Medicine will operate as one of Pfizer’s new small, independent research units to help it foster a biotechnology culture and environment. A key component to the success of the units will be collaboration with leading academic, biotech and pharmaceutical partners around the world.

Pfizer's Pharmaceutical segment offers Lipitor for elevated cholesterol levels in the blood; Norvasc for hypertension; Caduet for cardiovascular events; Chantix/Champix for smoking cessation; Lyrica for neuropathic pain; Geodon/Zeldox, a psychotropic agent; Aricept for Alzheimer�s disease; and Zoloft for various disorders. It also offers Celebrex for arthritis pain and inflammation and acute pain; Vfend for esophageal candidiasis and blood stream infections; Zyvox for bacterial infections; and Selzentry/Celsentri for adults infected with only CCR5-tropic HIV-1 detectable. In addition, this segment provides Viagra for erectile dysfunction; Detrol for overactive bladder; Camptosar for metastatic colorectal cancer; Sutent, an oral multi-kinase inhibitor; Xalatan/Xalacom for open-angle glaucoma and ocular hypertension; Genotropin for growth disorders; and Zyrtec/Zyrtec for allergies and hives.

The company's Animal Health segment offers parasiticides, anti-inflammatories, antibiotics, vaccines, antiemetics and anti-obesity agents. It also provides Revolution/Stronghold for dogs and cats; Rimadyl for pain and inflammation associated with canine osteoarthritis and soft tissue orthopedic surgery; Clavamox/Synulox for skin and soft tissue infections; RespiSureOne/StellamuneOne to prevent pneumonia in swine; Bovi-Shield Gold for reproductive and respiratory protection; Dectomax, an injectable and pour-on formulations; Draxxin, an antibiotic for infections in cattle and swine; and Excede to treat infections.

Pfizer also involves in contract manufacturing and bulk pharmaceutical chemicals businesses. It serves doctors, nurse practitioners, physician assistants, pharmacists, hospitals, pharmacy benefit managers, managed care organizations and government agencies.

In today's daily chart, PFE's Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

GlaxoSmithKline plc (GSK) Trade Alert – GSK's Subsidiary Commences Cash Tender Offer to Purchase Genelabs Common Stock

GlaxoSmithKline plc (GSK) shares fell 2.37% to $34.22 Thursday morning. GlaxoSmithKline, together with its subsidiaries, engages in the creation, discovery, development, manufacture and marketing of pharmaceutical and consumer health-related products.

The company recently announced its wholly owned subsidiary, Gemstone Acquisition Corp., is commencing a cash tender offer to purchase all outstanding shares of common stock of Genelabs Technologies Inc. for $1.30 in cash without interest. This tender offer is being made pursuant to an Agreement and Plan of Merger dated October 29, 2008 among Genelabs, Gemstone and SmithKline Beecham Corporation, a wholly owned subsidiary of GlaxoSmithKline.

To expire Wednesday, December 10, 2008, at midnight ET, the tender offer is subject to various conditions, including the acquisition by GlaxoSmithKline of 90% of the outstanding shares of Genelabs' common stock on a fully diluted basis.

GlaxoSmithKline also recently announced its plan to close one of its English plants, which employs 620 people, by 2013. According to the company, majority of drugs made at the plant are losing their patent protection and facing generic competition within a year. The company said that 60% of the production at its Dartford plant is of two drugs: Lamictal, which is used to treat epilepsy and bipolar disorder and Valtrex, which is used to treat herpes.

Lamictal's patent expired earlier this year, making it vulnerable to generic drug competition in U.S. pharmacies; while Valtrex's patent will expire next year. The company said it makes economic sense to shut the plant down by 2013 since sales of the two drugs are set to dry up over the next several years.

GlaxoSmithKline's Pharmaceuticals segment manufactures prescription drugs and vaccines that are used in various therapeutic areas, including central nervous system, respiratory, anti-viral, anti-bacterial, oncology and emesis, metabolic, cardiovascular and urogenital. This segment offers Seretide/Advair for asthma and chronic obstructive pulmonary disease (COPD); Avandia for the treatment of type 2 diabetes; Lamictal for epilepsy and bipolar disorder; Wellbutrin, an anti-depressant; Zofran to prevent nausea and vomiting associated with chemotherapy and radiotherapy for cancer; Valtrex for herpes; Coreg for heart disease; and Imigran/Imitrex for migraine and cluster headache. Its products also include Augmentin for the treatment of bacterial infections; Seroxat/Paxil for the treatment of depressive disorder, panic, obsessive compulsive disorder, post traumatic stress disorder, social anxiety disorder and generalized anxiety disorder; and Flixotide/Flovent, an inhaled steroid for the treatment of inflammation associated with asthma and COPD.

The company's Consumer Healthcare segment offers over-the-counter medicines, oral care and nutritional healthcare products. Its products comprise Lucozade energy and sports drinks; Aquafresh and Sensodyne toothpastes and mouthwashes; Aquafresh and Dr Best toothbrushes; Panadol, a paracetamol/acetaminophen analgesic; Horlicks, a milk-based malted food and chocolate drinks; and Ribena, a blackcurrant juice-based drink. GlaxoSmithKline operates in the United States, Europe, Japan, the Asia Pacific, the Middle East, Latin America, Africa and Canada.

It has agreements with Anacor Pharmaceuticals Inc.; Oncomed Pharmaceuticals Inc.; Santaris Pharma A/S; and Targacept Inc.

In today's daily chart, GSK's MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

Abbott Laboratories (ABT) Trade Alert – ABT Receives Award from Deal Magazine, Reports Favorable Test Results for TriLipix

Abbott Laboratories (ABT) shares dropped 2.75% to $53.06 Thursday morning. Abbott engages in the development, manufacture and sale of health care products worldwide. Because of Abbott's most effective strategic use of acquisitions and divestitures, the Deal magazine has recently named the company as the healthcare sector winner of its inaugural Most Admired Corporate Dealmakers Awards.

Companies considered for the survey have a market capitalization of $5 billion or more as of June 30, 2008, and closed the highest number and dollar value of acquisitions and divestitures in the past three years.

With a focus on high-growth, innovation-driven businesses with market-leading potential, Abbott has reshaped its business portfolio over the past decade.

As stated by Miles D. White, Abbott's chairman and CEO, "Abbott has taken a deliberate approach to acquisitions, identifying and pursuing transactions that either complement our existing portfolio or allow us to enter new innovation-driven markets with leadership potential. This strategic approach, combined with our internal R&D efforts, has enabled Abbott to consistently deliver industry-leading performance and generate double-digit returns for our shareholders."

Abbott also recently reported its experimental drug TriLipix was able to improve cholesterol and triglyceride levels significantly in patients for a year after earlier three-month trials. TriLipix is a derivative of Abbott's $1.2 billion-a-year TriCor treatment for triglycerides, which is awaiting U.S. marketing approval. The favorable results for TriLipix were presented at the annual scientific meeting of the American Heart Association in New Orleans. The company expects approval of TriLipix this year, well before TriCor.

Abbott operates in four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. The Pharmaceutical Products segment offers adult and pediatric pharmaceuticals for the treatment of dyslipidemia, cholesterol, rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, hypothyroidism, obesity, HIV infection, epilepsy and bipolar disorder, migraines, prostate cancer, endometriosis and central precocious puberty, anemia, duodenal ulcers, gastric ulcers, erosive esophagitis and gastroesophageal reflux diseases.

The Diagnostic Products segment provides diagnostic systems and tests for blood banks, hospitals, commercial laboratories, physician's offices, alternate-care testing sites and plasma protein therapeutic companies. This segment's products include immunoassay systems; chemistry systems; assays for screening and diagnosis for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological diseases and infectious diseases, such as hepatitis and HIV; genomic-based tests; hematology systems and reagents; and point-of-care diagnostic systems and tests for blood analysis.

The Nutritional Products segment offers pediatric and adult nutritional products through its own distribution centers or public warehouses to retailers, wholesalers, health care facilities and government agencies.

The Vascular Products segment provides a line of coronary, endovascular and vessel closure devices for the treatment of vascular diseases. It also offers blood glucose monitoring meters, test strips, data management software and accessories for people with diabetes.

Abbott has a 50% owned joint venture with TAP Pharmaceutical Products Inc.; a strategic alliance with Celera Group; and a collaboration with Genentech Inc. to develop anti-cancer compounds.

In today's daily chart, ABT's MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. With share prices currently below the stock's 13-day moving average, a bearish trend is generally indicated.

AstraZeneca PLC (AZN) Trade Alert – AZN Launches Own Generic Version of Pulmicort, Reports Mixed Results for Zactima Late-stage Trial

AstraZeneca PLC (AZN) shares slipped 1.33% Thursday morning to trade at $36.38. AstraZeneca discovers, develops, manufactures and markets prescription pharmaceuticals, biologics and vaccines in the areas of cardiovascular, gastrointestinal, neuroscience, oncology, respiratory and inflammation and infection worldwide.

After the U.S. Food and Drug Administration approved Teva Pharmaceutical Industries Ltd.'s version of the company's asthma medication Pulmicort Respules, AstraZeneca said it is launching a generic version of its own child asthma medication Pulmicort.

AstraZeneca filed for a temporary restraining order to stop Teva's launch until an existing patent challenge is settled in the U.S. courts, saying that lost sales would put its full-year earnings-per-share at the bottom of the $4.90 to $5.05 range it had already forecast.

The company also reported mixed results for the late-stage trial of its lung cancer drug Zactima. Combined with Sanofi-Aventis' Taxotere, Zactima improved the progression-free survival for lung cancer patients. But, the drug failed to meet the same goal when combined with Eli Lilly & Co.'s Alimta and in a head-to-head study with Tarceva, which is made by Genentech Inc. and OSI Pharmaceuticals Inc.

However, the company said it plans on continuing development of the drug and aims for a regulatory filing in the first half of 2009.

AstraZeneca's products include Arimidex for hormonal breast cancer; Crestor that provides treatment for managing cholesterol levels; Nexium for acid-related diseases; Seroquel, an atypical anti-psychotic therapy for treating schizophrenia and bipolar mania; and Symbicort for the maintenance treatment of asthma in patients.

The company also engages in the research, development, manufacture and marketing of medical devices and implants for use in urology, surgery and odontology.

In addition, it develops and manages hospital-based outpatient cancer centers in the United States; and produces individually adapted abutments for dental implants using a patented CAD/CAM method.

AstraZeneca markets its products to primary care and specialist physicians, as well as to other healthcare professionals, governments and healthcare buying groups through sales and marketing network, local marketing companies, distributors, or local representative offices.

It has strategic alliances with Bristol-Myers Squibb Company; WuXi Pharmatech Co. Ltd; and ChemBridge, as well as a strategic partnership with Peking University Third Hospital.

The company also has collaborations with Palatin Technologies Inc.; Schering AG; Targacept Inc.; Abbott Laboratories; Silence Therapeutics plc; University of Texas Southwestern Medical Center; Washington University; Argenta Discovery Limited; Tripos International; and The University of Texas M. D. Anderson Cancer Center.

In today's daily chart, AZN's MACD reflects a strong bearish signal, with the indicator below the 9-day moving average signal line and also below the critical 0 level, indicating that moving averages are trending lower. Trading near its lower Bollinger Band, the stock reflects a low price relative to its recent price trend. With share prices currently below the stock's 13-day moving average, a bearish trend is generally indicated.

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