Aveo (Nasdaq: AVEO) Shares Decline Early After Cancer Data Misses Investor Expectations

Palm Beach, FL 1/3/12 (StreetBeat) -- Aveo Pharmaceuticals Inc. (Nasdaq: AVEO), maker of an experimental medicine for kidney cancer, declined the most in four months after data from a late-stage trial missed investors’ “ultra-high expectations,” an analyst said.

Aveo dropped 6.2 percent to $16.13 at 9:37 a.m. New York time, after earlier sinking to $16.10 for the biggest intraday decline since Sept. 9. The Cambridge, Massachusetts-based company’s shares rose 18 percent in 2011.

Aveo’s tivozanib helped patients with advanced renal cell carcinoma live for 11.9 months without their disease progressing, compared with 9.1 months for those on Nexavar, a medicine sold by Onyx Pharmaceuticals Inc. and Bayer AG (BAYN), Aveo said today in a statement. Investors may have expected progression-free survival of at least 13 months on tivozanib, Jason Kantor, an analyst with RBC Capital Markets in San Francisco, wrote today in a research note.

“The data looks good from both a regulatory and commercial perspective,” Kantor wrote. “However, it may have slightly missed the high efficacy hurdle set by the Street.”

Aveo’s medicine was “well-tolerated,” showing a safety profile similar to earlier results. The 517-patient study was from the third and final phase of trials generally required for regulatory approval. Aveo and partner Astellas Pharma Inc. (4503), of Tokyo, plan to apply for approval in the U.S. and Europe this year, they said in the statement.

Renal cell carcinoma forms in the lining of the small kidney tubes that filter blood and remove waste products, according to the National Cancer Institute. There were an estimated 60,920 new cases of kidney cancer in the U.S. in 2011, with 13,120 deaths, the institute said on its website.

StreetBeat Disclaimer

Distributed by Viestly

Orchard Supply Hardware Stores (Nasdaq: SHLD) Launches as an Independent Public Company

Palm Beach, FL 1/3/12 (StreetBeat) -- Orchard Supply Hardware Stores Corporation, a specialty retailer serving homeowners with repair, maintenance and improvement needs, announced that its spin-off from Sears Holdings Corporation (Nasdaq:SHLD) was completed at 11:59 p.m. EST on December 30, 2011. Trading of Orchard’s Class A Common Stock will begin today on the Nasdaq Capital Market under the symbol “OSH”. Orchard also has Series A Preferred Stock that will be quoted on the OTCQB under the symbol “OSHSP”.

Mark Baker, President and Chief Executive Officer of Orchard commented on the spin-off, "We look forward to Orchard being an independent publicly traded company. During the past year, our team has made significant progress toward developing a differentiated home improvement retail experience. We’re implementing new customer service initiatives and merchandising strategies, and have begun transitioning our stores to a new updated and customer-friendly format that more effectively showcases our merchandise and service offerings. We believe these actions will enable us to leverage the 80-year history of the Orchard brand in order to drive long-term growth and build value for our shareholders.”

Baker continued, “We are thankful for the dedication and hard work of Orchard’s operating team, associates and store employees. We have a remarkable company culture and a talented group of people who are committed to building on Orchard’s long history of superior customer service, selection and convenience.”

StreetBeat Disclaimer

Distributed by Viestly

Rambus (Nasdaq: RMBS) raises Q4 revenue outlook, shares jump

Tallahassee, FL 1/3/12 (StreetBeat) -- Rambus Inc (Nasdaq:RMBS) raised its fourth-quarter revenue outlook, despite losing a major lawsuit late last year, helped by new deals.

The technology licensing company said it expects fourth- quarter revenue of about $83 million, above the $66-$71 million it projected earlier.

The two analysts who follow Rambus, according to Thomson Reuters I/B/E/S, were on average expecting $69 million in revenue for the three-month period.

The company signed a patent licensing deal with Broadcom Inc (Nasdaq:BRCM) last month, its latest in a string of deals.

Rambus shares rose nearly 10 percent in pre-market trading following the announcement. They have lost about 60 percent of their value since November, after the company lost a $4 billion antitrust lawsuit against Micron Technology Inc (Nasdaq:MU) and Hynix Semiconductor Inc.

The company's shares closed at $7.55 on Friday on Nasdaq.

StreetBeat Discalimer

Distributed by Viestly

Comtech Telecommunications Corp. (Nasdaq: CMTL) Receives $16.6 Million of Orders From the U.S. Army

Tallahassee, FL 1/3/12 (StreetBeat) -- Comtech Telecommunications Corp. (Nasdaq:CMTL) announced today that its Maryland-based subsidiary, Comtech Mobile Datacom Corporation, received multiple orders totaling $16.6 million to support the U.S. Army's Movement Tracking System ("MTS") and Blue-Force Tracking-1 ("BFT-1") programs. These orders were placed under the auspices of the BFT program office and brought the total orders received to-date under Comtech's $384.0 million BFT-1 contract to $378.2 million.

The first order for $12.0 million included the supply of MT-2012 mobile satellite transceivers to support the MTS program and MT-2011 mobile satellite transceivers to support the BFT-1 program. The second order was for the continued supply of satellite bandwidth, satellite network operations, engineering services and program management to support the MTS program for the period January 1, 2012 through March 31, 2012. Pricing for the second order has not yet been finalized with the U.S. Army and related funding cannot exceed $4.0 million. Additional orders aggregating approximately $0.6 million primarily related to engineering services to develop an operational interface between the MTS network and a standard FBCB2 protocol currently being used by the BFT-1 system.

None of the above orders included a separate fee for the use of Comtech's intellectual property. Comtech continues to have ongoing discussions with the U.S. Army related to a potential multi-year sustainment contract including the licensing of its intellectual property to support the BFT-1 and MTS programs.

Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "We are pleased to receive these orders which provide for the uninterrupted delivery of MTS services to the U.S. Army and which continues our long standing support of the MTS and BFT-1 programs. We also believe the receipt of additional hardware orders demonstrates the ongoing importance of the U.S. Army's BFT-1 and MTS satellite tracking communication systems which currently support deployed U.S. forces worldwide."

StreetBeat Disclaimer

Distributed by Viestly

Brekford Corp (BFDI) Stock Chart Analysis Video

The BFDI stock chart has been in a solid uptrend for nearly a year. After a brief consolidation which dipped the price to support, a push at the end of 2011 has the chart kicking-off the new year at resistance and looking for a blue sky breakout passed 70 cents.

Distributed by Viestly

Raven Industries (Nasdaq: RAVN) to Acquire Vista Research, Inc.

Tallahassee, FL 1/3/12 (StreetBeat) -- Raven Industries, Inc. (Nasdaq:RAVN) today announced that its Aerostar division has signed a stock purchase agreement to acquire Vista Research, Inc., a leading provider of surveillance systems that enhance the effectiveness of radars using sophisticated algorithms. Vista's smart sensing radar systems (SSRS) are employed in a host of advanced detection and tracking applications, including wide-area surveillance for the border patrol and the military. This acquisition will immediately allow Raven Aerostar to enhance its tethered aerostat security solutions. Longer-term, the company is positioned to meet growing global demand for low-cost detection and tracking systems used by government and law enforcement agencies. Under the terms of the agreement, Raven will acquire Vista Research for an initial cash purchase price of approximately $12 million, with up to $38.5 million in additional benchmark and earn-out payments over the next seven years. The transaction is expected to close in January and is subject to customary closing conditions.

"Raven is excited to acquire a highly regarded developer of smart radar and sensing processors, including an extremely talented team," said Lon Stroschein, Aerostar division vice president and general manager. "Together we will bring new innovations for detecting and tracking small objects over the land, on the water and in the air. Our solutions can replace or enhance traditional, high-cost radar systems used today. Our unique proposition is improved security in all types of weather at a lower total cost of ownership."

"Vista Research has pioneered innovative detection and tracking processing systems for more than 25 years, and we have developed smart radar surveillance processors that can help identify threats to critical assets," said Joe Maresca, CEO and co-founder of Vista Research, Inc. "Today, we join forces with Raven Industries, which shares a common vision for peace and stability through innovation and high quality products, and together we look forward to extending our presence in the global radar surveillance market. We are excited about the opportunity to leverage Raven's world-class organization to deliver new feature-rich detection and tracking solutions to customers."

Acquisition Fits the Raven Model for Growth and Value Creation

"After collaborating with Vista Research for the past 18 months, we are confident this transaction meets all of our acquisition criteria for growth and creating shareholder value," said Daniel A. Rykhus, Raven's president and chief executive officer. "First and foremost, we are acquiring a highly-engineered niche product with a unique market position. Vista's radar processing technology enables our Aerostar Division to offer more competitive end-to-end aerostat systems, as well as gain access to a much broader customer base. We also see opportunities to integrate Vista's technology with our Marine navigation products for enhanced port security. Importantly, Raven has a proven approach for commercializing acquired technologies and leveraging our strengths in manufacturing, market development, sales and customer service.

"Vista's current office locations and engineering resources will continue to support their existing government contracts, including several recent orders for radar systems. Raven will provide a full suite of engineering services to support new product introductions and quality manufacturing through our Electronic Systems Division. With high-level security clearances and extensive contacts, Vista creates a new path for Raven to pursue next-generation surveillance and security solutions."

Rykhus concluded, "The ability to sustain our growth requires a constant search for new markets. This is one of those unique opportunities in which a breakthrough technology can be another catalyst driving future growth at Raven. We expect that this acquisition will be additive to our earnings in the course of the coming year. More importantly, we believe this acquisition meets our goal of allocating capital to generate attractive returns on investment with increasing cash flows."

StreetBeat Disclaimer

Distributed by Viestly

Apricus Biosciences (Nasdaq: APRI) and Stellar Pharmaceuticals Announce Exclusive License Agreement

Tallahassee, FL 1/3/12 (StreetBeat) -- Apricus Biosciences, Inc. (Nasdaq:APRI) and Stellar Pharmaceuticals Inc. (Pink Sheets:SLXCF), a Canadian public company, announced today the signing of an exclusive license agreement. Under the agreement, Stellar Pharma has the exclusive right to sell Apricus Bio's MycoVa(TM) product for the treatment of onychomycosis (nail fungus) in Canada, following receipt of Canadian regulatory approval for such product. The exclusive license agreement provides for an upfront payment, regulatory approval milestone, sales achievement milestones and royalty payments during the term of the agreement.

Onychomycosis is a chronic persistent fungal infection of the nail bed resulting in thickening and discoloration of the nail, which sometimes can be accompanied by serious pain and disability. According to the Merck Manual, the worldwide incidence rate of onychomycosis is approximately 10%. As described by Iorizzo and Piraccini (2007), the incidence has been increasing due to diabetes, immunosuppression and an aging population. While occurring in approximately 2.6% of children younger than 18 years, it occurs in as much as 90% of the elderly population (eMedicine.medscape.com). As of 2008, Thomson Reuters Pharma had stated that the worldwide market was approximately $2.8 billion in size and is expected to grow to approximately $2.9 billion by 2014.

The advantage of Apricus Bio's MycoVa(TM) product is that it is easy to apply, and is therefore believed to improve patient compliance. MycoVa(TM) is applied to the infected nails, typically at bedtime, with minimal preparation, such as simply washing with soap and water. The formulation allows significant amounts of the drug to penetrate through the nail plate to the nail bed and surrounding area where fungus is located without significant systemic exposure.

Dr. Bassam Damaj, Chairman, President and Chief Executive Officer of Apricus Bio commented, "We are very pleased with our exclusive license agreement with Stellar Pharma and we look forward to the future commercialization in the Canadian market of MycoVa(TM), our second major product utilizing our proprietary NexACT(R) technology. We are very impressed with the experience of Rob Harris and his team at Stellar Pharma, and we are very excited about this first potential launch of this important drug in that market. We also hope that our partnership with Stellar Pharma will produce additional collaborations among multiple NexACT(R) products in the future."

Rob Harris, President and Chief Executive Officer of Stellar Pharma stated, "We are excited about this opportunity and are very pleased to be able to strengthen our dermatology portfolio in Canada. I would like to thank Bassam and his excellent team at Apricus Bio for providing us with this opportunity to launch MycoVa(TM) in the Canadian market. We will be assisting Apricus Bio in the filing of a New Drug Submission for MycoVa(TM) for onychomycosis and look forward to its commercial launch in Canada following Canadian regulatory approval."

StreetBeat Disclaimer

Distributed by Viestly