GSK may venture into rare disease treatments
LONDON GlaxoSmithKline has identified more than 5,500 rare diseases it could potentially target as part of a new drug-development initiative, the British drug maker announced Thursday.
GSK said it would start a new standalone business unit specializing in creating drugs for treating rare diseases, many of them genetic disorders that can cause lifelong disability or premature death. The company plans to work with Netherlands-based Prosensa and Japan-based JCR Pharmaceuticals, which it entered collaborations with in 2009.
The partnership with Prosensa, which started in October, focuses on drugs based on nucleic acid for Duchenne muscular dystrophy. With JCR, GSK will help develop drugs for Hunter syndrome, Fabry disease and Gaucher disease.
“The entry into this new therapeutic area forms part of GSK’s strategy to deliver more products of value and improve returns in R&D through a focus on areas with a higher probability of success,” GSK SVP drug discovery Patrick Vallance stated. “The risk associated with product discovery and development in rare diseases is generally lower than other disease areas as disease definitions are very clear and clinical trials tend to be small with robust endpoints.”
Fred’s reports dim January sales, highlights key initiatives for 2010
MEMPHIS, Tenn. Pharmacy was about the only sales highlight for Fred’s Inc. through its fiscal 2009, the Southern discounter reported Wednesday evening.
“January sales were below expectation, with the miss resulting mainly from multiple ice and snow storms blanketing the majority of our stores in the Southeast,” commented Bruce Efird, Fred’s CEO. “While December’s sales and traffic demonstrated that our customers were willing to stretch for the holidays at Fred’s, our January sales – outside of ongoing strong results in our pharmacy department – offer a fresh reminder that the consumer remains under considerable pressure.”
Fred’s Inc. posted a 1% drop in fiscal 2009 total sales, generating $1.8 billion for the 52 weeks ended Jan. 30, the chain announced Wednesday evening. Same-store sales were up 0.4%.
For the four weeks ended Jan. 30, total sales declined 1% to $125 million. Comparable store sales fell 2%.
The company’s performance underscores the importance of the implementing new sales- and profit-driving initiatives for 2010, Efird noted. Fred’s key initiatives include:
- Fred’s Core Five Program, which highlights trip-driving differentiation from small-box competitors, in terms of both price and selection, in the areas of pharmacy, pet products, celebration, paper and chemical, and home products departments
- Expanded marketing efforts in mailed circulars, in-store marketing, and direct mail advertising
- Increased investment in its stores, remodeling and updating more than 200 in 2010 with a customer-friendly layout developed in Fred’s pilot program. This initiative includes upgraded fixtures, a cleaner look, improved adjacencies, relocating the pharmacy to the front in some stores, and signage upgrades inside and out
- Increased advertising and additional in-store marketing to support Fred’s rollout of the new look that is specific to both urban and rural markets
- The restructuring in January of its merchandising and marketing responsibilities, including the addition of two new divisional merchandise managers in the hard lines area. That increased the number of DMMs to five, adding expertise in three of the core “five program” areas — celebration, pet and home — and bringing new skills to product sourcing; and
- The addition of new product lines, leading with Coca Cola, Purina pet products, and Energizer batteries, with additional new product introductions to be rolled out in the coming year.
Based on the sales shortfall Fred’s experienced in the fourth quarter 2009, management now expects earnings for the quarter to be in the range of 14 cents to 16 cents per diluted share. For the year 2009, the Company estimates earnings of 59 cents to 61 cents per diluted share, a 40% to 45% increase over 2008.
Looking ahead to 2010, management is optimistic that financial improvement will continue, with diluted earnings per share reaching the range of 68 cents to 75 cents for 2010.
Spartan Stores reports rise in Q3 sales
GRAND RAPIDS, Mich. Spartan Stores saw an increase in sales from $781.9 million to $786.9 million during the third quarter of fiscal year 2010, according to an earnings report released Wednesday.
The Grand Rapids, Mich.-based supermarket operator said the increase resulted from incremental sales from the acquisition of VG’s Food and Pharmacy stores and the opening of additional gas stations. Weak economic conditions, price deflation, competition and a shift toward private label sales offset the increase. Profits for the quarter were $26 million, down from $29.7 million in third quarter 2009.
“We are pleased with our ability to profitably work through this prolonged weak economic environment,” Spartan president Dennis Eidson said. “Michigan has experienced a slight loss in its population base and has also led the nation in unemployment for 45 consecutive months.”