Business Briefs - Thursday

MEDICAL

Panel rejects Vioxx alternative

Merck's newest proposed pain reliever, seen as a successor to the recalled pain reliever Vioxx, should not be approved for use in the U.S., an FDA advisory panel ruled after the market closed. The panel of outside experts voted 20-1 against the drug. The FDA is not required to follow panel recommendations, but usually does. Merck argued that Arcoxia, which like Vioxx targets the Cox-2 enzyme tied to inflammation, was as safe as other approved pain relievers. Arcoxia is sold in more than 60 countries. Merck, which rose 1.6% during the day, fell 1% after hours.

MedImmune to consider buyout

The drug company changed its previous stance and said it will consider buyout offers. The news sent MedImmune surging 15.3% to 43.63. The company has $9 bil in market capital and posted $1.28 bil in sales last year, mostly by childhood respiratory drug Synagis. MedImmune MEDI expects to nearly triple its Q2 earnings and is optimistic as a new formula of its FluMist drug was found to be more effective. The company hired Goldman Sachs to advise it on a possible sale.

Results lift Advanced Magnetics

The drug company surged 9.6% to 71.34 after it announced positive results for 2 late-stage trials of Ferumoxytol, an intravenous iron-replacement therapy in patients with chronic kidney disease. Ferumoxytol is Advanced Magnetics' AMAGtop product candidate. A lead researcher called the trials "very promising because they demonstrate a statistically significant improvement" in patients using Ferumoxytol.

TRANSPORTATION

Toyota names American to board

The Japanese automaker named an American to its board, the first non-Japanese citizen ever appointed. The promotion of James Press, president of Toyota TM's North American operations, appeared aimed at quelling concerns over the company's growing dominance in the U.S. Last month, Hiroshi Okuda, a former president of Toyota, suggested the automaker add foreigners to its board to avoid a backlash in the U.S., such as it faced in the '80s when U.S. officials and consumers blamed Japanese automakers for layoffs at U.S.-based carmakers. Toyota dipped 14 cents to 124.40.

TECHNOLOGY

Audible search battle heats up

Google, the Web search leader, released a free voice-based search technology, squaring the company off with Microsoft. Their goal is to replace conventional directory assistance with a call-in number, such as Google's new Voice Local Search at (800) GOOG-411. Less than a month ago, Microsoft announced plans to buy Tellme that some close to the matter estimate at $800 mil. Yahoo YHOOis expected to enter the race soon. Google rose 0.6%, Yahoo edged up 0.1%, and Microsoft climbed 1.5%.

Mobius bought by Allen Systems

The maker of data storage software agreed to be acquired by Allen Systems Group for $10.05 a share in cash, or $197.2 mil. Before announcing the sale, the company warned of a Q3 net loss of 8-10 cents a share on sales of $18.7 mil-$19.2 mil. Analysts on average had been expecting Mobius to break even on sales of $22.2 mil. Shares surged 31.6% to 9.79.

CONSUMER

Sony sells next-gen flat-panel TV

The Japanese electronics giant said it plans to sell an 11-inch TV using a new technology that should produce sharper, more colorful images on an ultrathin screen. The TVs will be made with organic light-emitting diodes, or OLEDs, which are currently used in advanced mobile phones, personal digital assistants and camcorders. Unlike LCDs, OLED screens don't require a backlight, dramatically reducing power consumption and thickness of the screen. Sony's new TV screen will be only 0.12 inches thick. Sony SNE rose 2.2% to 54.54.

Sony SNE has discontinued the $500 20-gigabyte PlayStation 3 game console so it can focus on the more popular $600 60-gigabyte model. Retailers still have several thousand 20-gigabyte models on store shelves, Sony said. MEDIA

CBS unveils Web site for shows

The network said it created an Internet distribution channel for its TV programs with Time Warner, AOL, Microsoft, MSN and Comcast. The move is an attempt to increase online ad revenue for its shows. News Corp. and NBC Universal teamed up last month to challenge Google's YouTube with a similar site. Shares rose 1.4% to 31.41.

FINANCE

Countrywide's subprime declines

One of the largest mortgage lenders said subprime loans decline to $2.4 bil in March. Countrywide said 5% of its total monthly loans were subprime, while in Q1 it was 7%. The company said its mortgage loans grew 5% to $43 bil in March. Its home equity loans fell 5% to $4 bil. The company's COO said March activity was dominated by refinancing and fixed-rate loans. Shares edged up 0.6% to 33.61.

Intercontinental Exchange, the electronics futures market, said it will buy Intelligence Press and its Natural Gas Intelligence newsletter. Financial terms were not disclosed. Shares dipped 0.2% to 126.66. BofA reassures U.S. Trust clients

Seeking to quell rumors and retain the wealthy clients of U.S. Trusts, which Bank of America BAC is acquiring from Charles Schwab SCHW for $3.3 bil, BofA CEO Ken Lewis and Charles Schwab sent letters to customers that dismissed recent critical media reports that suggested clients would pay higher fees and lose access to key research. Customer defections could potentially undermine the deal, analysts have warned. Rivals have seized upon the rumors to woo potentially disgruntled U.S. Trust clients. BofA is also seeking to keep top U.S. Trusts' workers from leaving with key clients. BofA fell 0.5% to 50.28.

TELECOM

VimpelCom misses, revenue up

Russia's No. 2 mobile phone company raised Q4 profit 30.4% to $198 mil, missing views. Revenue rose 6.6% to $1.45 bil. Costly year-end promotional campaigns affected the result. VimpelCom VIP took $42.5 mil in charges related to litigation with Russia's tax office, according to analysts. Analysts also noted sales and revenue per user were were than forecasts. Monthly average revenue per user rose $8.9 vs. views of $8.4. Shares rose 1.6% to 96.22.

Vonage CEO quits, Q1 results weak

The troubled Internet phone company's CEO Michael Snyder resigned and the company announced weak preliminary Q1 result and job cuts. Vonage VG expects Q1 revenue of $195 mil. Vonage was found guilty of infringing on patents held by Verizon Communications VZ. Vonage attempted to overturn the federal jury's verdict, but a judge ordered the company to stop signing up new customers if it continues using the disputed technology. Despite the negative news, the announcement of cost cuts lifted shares 6.7% to 3.20.

Qualcomm rejects Nokia's offer

The wireless technology company said it has rejected Nokia NOK's $20 mil payment offer for the use of its patent licenses during Q2. A licensing agreement between two companies expired on Tuesday. Qualcomm wants to renew terms of an '01 licensing pact, but Nokia, the largest cell phone maker, wants to reduce payments to Qualcomm. Nokia edged up 0.4% to 23.48. Qualcomm rose 1.2% to 42.60.

METALS

Posco beats, sales rises 22%

South Korea's steel maker raised Q1 profit 37.7% to $1.05 bil, above views. Sales rose 22.3% to $6.1 bil above views. Posco PKX raised 2007 sales forecast to $24.26 bil above views. The company recently announced it would raise steel plate prices by around 3% from April 19. Posco was also boosted by market speculation that Arcelor Mittal MT, the world's largest steel maker, might be interested in buying the company. Shares rose 2.2% to 105.09.

ENERGY

Mixed results at Energy Transfer

The operator of transportation and storage assets said Q2 earnings jumped nearly fourfold to 67 cents a share, topping views by a dime. Energy Transfer Equity ETEsaid revenue fell 16% to $2.06 bil, far short of $3.07 bil expectations. The company said its sales, storage and transportation costs decreased 36%. Shares fell 0.5% to 36.44.

GAMING

MGM Mirage plans new chain

The casino operator signed an agreement to develop a new hotel company with United Arab Emirates company Mubadala Development. Mubadala is owned by the Government of the Emirate of Abu Dhabi. Financial terms were not disclosed. MGM Mirage MGM and Mubadala plan to develop luxury non-gaming hotels and resorts globally, initially targeting Abu Dhabi and Las Vegas. MGM said the joint company will develop its own hotel management platform and brands. MGM rose 1.2% to 71.89. 0

Copyright 2007 Investor's Business Daily, Inc.