Zacks Analyst Blog Highlights: Millennium Pharmaceuticals, Celgene, Merck and PetMed Express

Business Wire, Dec 18, 2006

CHICAGO -- 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: Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM), Celgene (Nasdaq: CELG), Merck & Co. (NYSE: MRK) and PetMed Express (Nasdaq: PETS).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Friday's Analyst Blog:

Millennium Mixed

Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM) is a drug discovery and development company, incorporating large-scale genetics, genomics, high throughput screening and informatics in an integrated science and technology platform. We currently rate the shares a Hold based on mixed business fundamentals.

Velcade, the company's oncology product for multiple myeloma, will start to see growth slow in 2006 due to stiff competition from Celgene's (Nasdaq: CELG) Revlimid. However, Millennium's Velcade and other pipeline candidates offer the potential to reinvigorate growth in the years to come. Our price target is $13.

Less Optimism on MRK

Merck (NYSE: MRK) has been able to successfully return to growth given the launch of four new vaccine products and the recent approval of Januvia for diabetes. Sales of existing drugs are tracking on plan, with earnings upside being driven by sales of the cholesterol franchise drugs Zetia and Vytorin. However, Merck's Zocor lost patent protection at the end of June 2006, and there are some 27,200 Vioxx lawsuits.

The company's stock has risen over 52% so far this year. Investors seem almost universally bullish on the Dow component, giving management the benefit of the doubt that it will successfully navigate what we see as a very challenging operating environment over the next few years. We are not as optimistic and would avoid the name until rationalization returns and risk / reward improves.

Initiating PetMed a Hold

We are initiating coverage of PetMed Express (Nasdaq: PETS) with a Hold rating and a target price of $14.50. The bullish factors in the company's outlook include favorable industry trends, strong repeat business and the potential for profit margin expansion.

However, these bullish factors are offset by a highly competitive environment, increasing customer acquisition costs, and geographic and seasonal risks. All told, we think the stock is fairly valued and should perform in line with the overall market for the next six months.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2674.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.