MRK Merck and Co Inc

MERCK

FDA to Review Immunotherapy Drug

The U.S. Food and Drug Administration will review Merck & Co.'s immunotherapy cancer drug Keytruda as a first-line treatment for patients with the most common form of lung cancer, the company said Wednesday.

The FDA granted Keytruda, or pembrolizumab, breakthrough therapy designation and priority review status with a target action date of Dec. 24.

In October, Keytruda was cleared for use as a second-line treatment in patients with nonsmall-cell lung cancer whose tumors contain a certain level of a protein known as PD-L1, and whose disease continued to worsen after the patient received chemotherapy or other drugs. Merck is now seeking approval for the drug as a standalone treatment option.

--Anne Steele

TRACTOR SUPPLY

Retailer Lowers Guidance for Year

Tractor Supply Co. again reduced its guidance for the year, saying that weakness in the agricultural and energy sectors is weighing on consumer spending in many of the rural communities that the retailer serves.

For 2016, Tractor Supply cut its per-share earnings estimate to between $3.22 and $3.26 on net sales of between $6.7 billion and $6.75 billion. The company previously had projected per-share profit of $3.35 to $3.40 on net sales of $6.8 billion to $6.9 billion. The retailer also cut its forecast for 2016 comparable sales, which include stores open at leastayear and online sales, to an increase of between 1% and 1.7% from its previous view for growth of between 2.5% and 3.5%.

For the third quarter, Tractor Supply expects per-share earnings of 65 cents to 67 cents and net sales of $1.54 billion to $1.55 billion, with comparable sales between flat and a down 1%. Analysts polled by Thomson Reuters expected per-share profit of 72 cents and revenue of $1.61 billion.

--Tess Stynes

ZIO'S RESTAURANT

Casual Eatery Chain Files for Chapter 11

The owner of Zio's Italian Kitchen restaurant chain filed for bankruptcy protection Wednesday, joining a wave of casual eateries struggling as consumer preferences shift to cheaper, faster alternatives.

Dallas-based Zio's Restaurant Co., which filed for chapter 11 bankruptcy in U.S. Bankruptcy Court in San Antonio, operates 15 restaurants located primarily in the Southwest and employs 875 employees.

Zio's is shuttering five of its restaurants and is "evaluating" the remaining locations for closings as well, according to court papers.

Like other casual eateries, Zio's has suffered in recent years as cash-strapped diners cut back on eating out. Those financial woes have been exacerbated by Zio's presence in an area that has been buffeted by the distress in the oil and natural gas industry, said David W. Parham, Zio's bankruptcy lawyer.

--Sarah Chaney

VALSPAR

Volumes Increase at Paint Maker

Valspar Corp., in the midst of a merger with rival paint maker Sherwin-Williams Co., posted volume growth but said currency fluctuations caused revenue to fall.

The Minneapolis-based paint maker in March agreed to be acquired for $9.3 billion in cash.

Across the company, volume increased 2%. International growth drove a 3% increase in its paint segment. Coil and wood product lines drove 1% growth in its coatings segment. Revenue in its coatings segment fell 1.4% to $631 million as sales in its paints segment rose 0.4% to $445.4 million.

Over all for the quarter, Valspar reported a profit of $117 million, or $1.44 a share, up from $102.9 million, or $1.25 a share, a year prior. Excluding merger and restructuring costs, earnings per share was $1.57.

Sales fell less than 1% to $1.14 billion. Analysts polled by Thomson Reuters projected $1.45 in per-share profit on $1.18 billion in revenue.

--Austen Hufford

(END) Dow Jones Newswires

September 08, 2016 02:49 ET (06:49 GMT)

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