Business

Biotech investors interested in seeing more details about these companies and a full list of their related stories can do so by typing the stock ticker symbol into the Stock Quotes box on the right side of the page.Amarin Corporation plc (NASDAQ: AMRN) announced today that it has sent to its shareholders a Notice of the Annual General Meeting of the Company, which will be held on December 21, 2009 in Dublin, Ireland.ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) today announced that the Company and collaborating investigators from five major oncology research centers in the United States will present data from a Phase 1 clinical trial of ARIAD’s investigational, multi-targeted kinase inhibitor and pan-BCR-ABL inhibitor, AP24534, at the 51st Annual Meeting of the American Society of Hematology (ASH) being held in New Orleans, Louisiana, December 5-8, 2009.Array BioPharma Inc. (Nasdaq: ARRY) today announced that its Chief Executive Officer, Robert E. Conway, will speak at the 21st Annual Piper Jaffray Healthcare Conference on December 1 in New York City.Catalyst Rx, the pharmacy benefit management (PBM) subsidiary of Catalyst Health Solutions, Inc. (NASDAQ: CHSI), announced today that its member-focused Web site, www.CatalystRx.com, won a Platinum award in the Strategic Health Care Communications’ annual eHealthcare Leadership Awards for Best Interactive Site.The clouds of darkness that have been hanging over over CytRx Corporation (NASDAQ:CYTR) may soon be cast aside. CDEX Inc. (OTCBB:CEXI) (www.cdexinc.com) and All Business Machines, Inc. ("ABMI") (www.abmicorp.com) announce that the ValiMed™ MVS (Medication Validation System) and ID2 Meth Scanner™ product lines by CDEX have been placed on the ABMI GSA Contract Schedule.ValiMed MVS puts a technological safety net between the patient and errors made in the compounding of high risk medications and guards against narcotic diversion.MedPro Safety Products, Inc. (OTCBB: MPSP), a pioneer in the development and marketing of passive needlestick injury prevention technology, today reported on the company’s recent progress.NanoViricides, Inc. (OTC BB: NNVC.OB) (the "Company"), announced today that Dr. Eugene Seymour, MD MPH, CEO of the Company, presented lifetime data from the recent FluCide™ animal study on November 19th at the Influenza Congress USA 2009 in Washington, DC (www.terrapinn.com/usaflu).Neogen Corporation (Nasdaq: NEOG) announced today that Richard T. Crowder, Ph.D., was elected to Neogen's Board of Directors at the company's recentannual meeting of shareholders.Origin Agritech Limited (NASDAQ GS: SEED) (“Origin”), a leading technology-focused supplier of crop seeds and agri-biotech research in China, today announced it has received the Bio-safety Certificate from the Ministry of Agriculture as a final approval for commercial approval of the world’s first genetically modified phytase corn.Oncolytics Biotech Inc., (TSX:ONC; NASDAQ:ONCY) announced today that it has closed its previously announced US$12,750,00 offering in which a syndicate of underwriters purchased 4,250,000 units of the Company, each unit comprised of one common share and 0.4 of a common share purchase warrant, at a price of US$3.00 per unit.As part of its drug pipeline Ohr Pharmaceutical (OTCBB:OHRP) is developing a wet AMD (Macular Degeneration) therapy, based on technology acquired from Genaera Liquidating Trust.Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), a specialty pharmaceutical company, today announced it has closed its previously announced public offering of 5,500,000 shares of its common stock at a price of $21.00 per share.TapImmune, Inc. (OTCBB:TPIV) announced that they have agreed with QualityStocks to be featured in The Small Cap QualityStocks Daily Newsletter, QualityStocks Daily Blogs and Message Boards. QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report.Walgreens (NYSE, NASDAQ: WAG), the nation’s largest drugstore chain and a leading destination for health and wellness services, today announced the re-launch of Walgreens.com (www.walgreens.com), offering users a variety of new healthy living and product resources, along with expanded yet simplified shopping tools and services.Walgreens (NYSE:WAG)(NASDAQ:WAG) today announced the appointment of two new executives. Kathleen Wilson-Thompson has been named senior vice president and chief human resources officer, and Charles V. Greener has been named to the new position of vice president of corporate affairs and communications.ZOLL Medical Corporation (NasdaqGS: ZOLL) announced today that the LifeVest® wearable defibrillator was discussed in three separate scientific presentations at the American Heart Association 2009 Science Session in Orlando, Florida last week.

Biotech investors interested in seeing more details about these companies and a full list of their related stories can do so by typing the stock ticker symbol into the Stock Quotes box on the right side of the page.Alnylam Pharmaceuticals, Inc. (Nasdaq:ALNY), a leading RNAi therapeutics company, today announced that it will webcast its upcoming R&D Day live on the "Investors” section of the company’s website at www.alnylam.com.Biogen Idec Inc. (NASDAQ:BIIB) announced today that its presentation at the 2009 Annual Credit Suisse Healthcare Conference will be webcast live via the internet , on Friday, November 13, 2009 at 8:30 a.m. MST, 6:30 a.m. EST.

BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) today announced its third quarter 2009 financial results.

CEL-SCI Corporation (NYSE:CVM) announced today that Dr. Kenneth S. Rosenthal, Professor of Immunology and Microbiology of Northeastern Ohio Universities College of Medicine and Pharmacy, reported on work conducted in collaboration with scientists at the Cleveland Clinic and CEL-SCI on CEL-SCI's LEAPS vaccine technology.

Clinical Data, Inc. (NASDAQ:CLDA) announced the Company’s operational and financial results for its second fiscal quarter ended September 30, 2009.Compugen Ltd. (NASDAQ:CGEN) announced the discovery and experimental confirmation of a genetic biomarker, CGEN-40001 for predisposition to type 2 diabetes the most common form of diabetes.Commonwealth Biotechnologies, Inc. (NASDAQ:CBTE) is pleased to announce it has completed the divestment of the assets (excluding land and buildings) of its bioanalytical and genetic testing business units, CBI Services and Fairfax Identity Laboratory (FIL) for a cash consideration and an ongoing lease commitment for 5 years.EpiCept Corporation (Nasdaq:EPCT) announced Health Canada has accepted for review the Company’s New Drug Submission (NDS) for Ceplene® (histamine dihydrochloride) for the remission maintenance of acute myeloid leukemia (AML) patients in first complete remission.Global Health Ventures Inc. (OTC:GHLV), or the "Company" a Specialty Pharma is pleased to announce it has completed the prototype manufacturing of the drug "X-Excite" Global's male enhancement drug.Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), the leading specialty finance company providing venture debt and equity to venture capital and private equity-backed technology and life science companies at all stages of development, announced it has committed to provide Labcyte, Inc. (www.labcyte.com) $5.5 million in credit facilities.Lannett Company, Inc. (NYSE:LCI) reported financial results for the fiscal 2010 first quarter ended September 30, 2009.Mentor Capital, Inc.'s (OTC:MNTR) major investee, Quantum Immunologics, reported significant advances in its recent Quarterly Conference Call. Monsanto Company (NYSE:MON) and Pfizer Inc (NYSE: PFE) announced they have entered into an agreement for Monsanto to acquire Pfizer's Chesterfield Village Research Center located in Chesterfield, Mo.OSI Pharmaceuticals, Inc. (NASDAQ:OSIP) announced OSI Management will present at the Lazard Healthcare Conference in New York, NY on Tuesday, November 17, 2009 at 8:55am (Eastern Time) and will provide an overview on the Company’s product portfolio and business developments.Repros Therapeutics (Nasdaq:RPRX) announced financial results for the third quarter ended September 30, 2009.SuperGen, Inc. (Nasdaq:SUPG), a pharmaceutical company dedicated to the discovery and development of novel cancer therapies, announced the acceptance of seven abstracts for poster presentations on November 16, 17 and 18, 2009 at the 2009 AACR-NCI-EORTC Molecular Targets and Cancer Therapeutics conference in Boston, MA.Walgreens (NYSE:WAG)(NASDAQ:WAG), Monthly total increases 185 percent over year ago E-prescribing promotes goals of health care reform as it lowers cost and improves adherence to drug therapy Federal stimulus package further bolsters electronic prescribing.Walgreens (NYSE:WAG)(NASDAQ:WAG), President and CEO Greg Wasson will present during the Morgan Stanley Global Consumer and Retail Conference in New York on Thursday, Nov. 19, 2009 at approximately 8:20 a.m. EST.Yasheng Group (OTC:YHGG), announced an agreement between Yasheng Group's majority shareholder Yasheng Group BVI and Yasheng ECO Trade Corp wherein Yasheng Eco Trade was to acquire 75,000,000 shares of Yasheng Group has been terminated due to a clause in the agreement that either party could terminated if the acquisition was not concluded by the end of September 2009.

($WMT) Easy Comparisons Help Retail Sales

(AXP) More Information on Unemployment Duration

Fortunately during recessions, the federal government usually will step in and provide emergency extended benefits. However this recession has gone on for so long, and we have so many long-term unemployed, that millions were in danger of losing even those extended benefits. Fortunately the Senate finally got around to extending those benefits for up to another 20 weeks (depending on the overall level of unemployment in that state). Still, unemployment benefits only replace a fraction of what people were earning before they lost their jobs. This means that as soon as people get their pink slips, they will reduce their spending. However, depending on how long they expect to be out of work, they do not bring their spending levels down all the way to their new unemployment insurance income level. There are all sorts of spending categories that are at least semi fixed. If you think you will get a new job soon, you don't cancel little Jimmy's ballet lessons, or Betty's karate lessons. Instead you draw down your savings and use your American Express (AXP) card more.

However, as the weeks go by and you get no response from all the resumes you sent out, more and more things start to go by the wayside. But still does it make sense to quit the country club and lose the $20,000 initiation fee you paid, especially now that you actually have time to use it? Well after a few months you have to bite that bullet too. In the meantime, your non-retirement savings are probably about gone. Going into this recession the savings rate had been close to zero, so it is a pretty safe bet that most people did not have a lot of savings outside their 401-ks or IRAs. You have probably run up your balance on your credit card, but the card companies are getting wise to that and are starting to cut back the available credit limits for millions of accounts. That is a wise move on their part individually, but collectively for the economy, it acts to reduce overall demand.

Oh, and since a big factor in your credit rating is how much credit card debt you have relative to your available limit, both increasing your balance and the bank cutting back your maximum availability will conspire to knock off more than a hundred points from your FICO score. In past downturns, especially recent ones, if the unemployed person were a homeowner, he could tap the equity in the house. Now with millions and millions of homes worth less than the amount of the mortgage, or at least very close to it, that option is not open. Indeed this time around it seems that people are more likely to go in the other direction.

To survive, they are simply not paying on their mortgage and waiting for the sheriff to show up at the door to kick them out. Given the huge numbers of people who are falling behind on their mortgages, and to political efforts to slow the rate of foreclosures, this is actually a very rational strategy. In many parts of the country it has been possible to live rent and mortgage free for well over a year before actually getting kicked out of the house. That can free up a lot of cash to spend on other things. However, it is very bad news for the banks that lent the money like Bank of America (BAC) and Wells Fargo (WFC). It is also going to become a serious issue for the Federal Reserve since it is in the process of buying $1.25 trillion worth of mortgaged backed paper. True, the paper is guaranteed by Fannie (FNM) and Freddie (FRE), but since the taxpayers own 80% of both of them, what is the difference? People have to start tapping their 401-ks and IRAs. While the stock market has recovered nicely, it is still far below its peak, making that option even more painful, along with the 10% penalty imposed if you start to withdraw money from those accounts before retirement age.

By the time people have been out of work for six months or more, they have usually depleted their financial resources. Remember that on average, someone who is out of work has been out of work for 26.9 weeks now, and half of all the unemployed have been looking for work for more than 18.7 weeks. That smashes any record prior to this downturn. At the worst point in the Reagan recession, half of all the unemployed were out of work for more than 12.3 weeks. In fact, since the median duration started being tracked at the beginning of 1967, the median duration has only been in the double digits for 36 of those 502 months, and 14 of those have been during his downturn.

To those who say the stimulus bill has not helped, tell that to the almost 5.6 million people who have been out of work for more than six months. If not for the emergency benefits in that bill, they would be left with no income as soon as they passed that mark. I suspect that the vast majority of people who are in that category assumed that they would have found a new job by now when they first got laid off, and thus did not cut back their spending as fast as, in retrospect, they should have when they first got their pink 
slip.



It is long term unemployment that is the hallmark of a recession. The graph below shows the number of unemployed (in thousands) in each duration group back to 1960. This is not adjusted for the rather substantial increase in the total population over that period, so some upward trend to the numbers would be normal. Notice how stable the pink short term unemployment line is. There are always people getting laid off, and people getting hired. In good times, the number of people becoming unemployed does not really fall that much, it is just that they don't stay unemployed for all that long. They are either able to find a new job quickly, or in the case of many manufacturing jobs, get called back to work by their previous employer.

The light blue line of moderate length unemployment (5 to 14 weeks) shows a little bit more cyclical behavior, but nothing like the two longer term measures, the yellow 15 to 26 week group and the dark blue over 26 week long term group. What is striking about this recession is just how high that long term dark blue line has soared. While these graphs do not have the recession bars in, I would note that the level of long term unemployment usually continues to rise for many months after a recession ends. The shorter term groups tend to turn down well before the long term group does. This means that the situation is likely to continue to get worse before it gets better.



When these people do return to work, it is highly unlikely that they will be earning anything close to what they were earning before they got laid off. Many will be homeless, without any savings and in pretty desperate shape. We have already seen a steep rise in the poverty rate, which rose to 13.2% in 2008 from 12.5% in 2007 (see Census Bureau: Poverty Rising and Income, Poverty & Health Insurance).

Among children, the poverty rate rose to 19.0% in 2008 from 18.0% in 2007. I would be shocked if it does not exceed the one in five level when the statistics come out next summer for 2009. Since health care coverage is largely tied to employment in this country, the rising number of unemployed means that the number of people without health insurance, already at 46.3 million in 2008, is likely to jump further. While it is true that the stimulus package did subsidize COBRA insurance by as much as 65%, by the time people are unemployed for more than six months, it is very difficult for most of them to be able to afford even those subsidized premiums. When those people get sick, their only option is to go to the hospital emergency room, which is a very expensive and inefficient way of being treated. It is not free either, the hospital will try to bill them for the services, and even send debt collectors on them, although in most of these cases they will be trying to get blood from a stone.

For many, it simply means that they go without treatment, other than over-the-counter medicines they buy at Walgreen's (WAG). If it turns out to be something more serious, it very often results in death. A Harvard study recently estimated that 46,000 Americans die prematurely each year because of a lack of health care coverage. That is a national disgrace.

While unemployment is a lagging indicator of the economy, it does play a role in the economy going forward. It will be very hard to sustain the surprisingly strong growth we have seen in recent months if we don’t start to see some improvement in the employment picture. Yes, huge improvements in productivity are good, but people on the ground need jobs.

Fellow Masters, Earnings calls of interest this week are the following:

Monday - 3/24

3Com (COMS) - The Drama Award Today goes to 3Com Corp.

Walgreen (WAG) - Stocks to Watch: Stocks in focus for Monday
- Earnings Preview: Walgreen

Tuesday - 3/25

Yamana Gold (AUY) - Yamana Gold Rush Quiets Down

Wednesday - 3/26

Oracle (ORCL) - This is the big one America.  Related reading for betting on Oracle:
- Earnings Outlook: Oracle expected to post gains despite economy
- Market highlights for next week: Jabil, Oracle to report earnings

Pep Boys (PBY)

Thursday - 3/27

Finish Line (FINL)

Red Hat Inc (RHT) - Trading less than $1 away from a 52-week low.
-  Red Hat, Inc. Earnings Call scheduled for Thu, Mar 27

Friday - 3/28

Coca-Cola Hellenic Bottling Company SA (CCH)

Happy Trading this week and best of luck to all the longs and shorts.