Business Watch -- WSJ
September 08 2016 - 3:04AM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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