Analyst Comments

Shares of Apple Inc. (NASDAQ: AAPL) fell sharply in the final minutes of trading today and one analyst has predicted that it will open its iPhone to T-Mobile users in 2010 when its current exclusive contract with AT&T (NYSE: T) expires. It is unclear if the two are related, but it is an interesting coincidence.

According to AppleInsider.com, Doug Reid of Thomas Weisel Partners stated that his firm believes that the T-Mobile, and not the rumored Verizon (NYSE: VZ), will be the initial beneficiary of the mega-popular Apple mobile device when it ends next year.

"AT&T advertising in the United States has in recent weeks clearly shifted away from iPhone as the carrier likely readies itself to lose exclusivity in the United States (to T-Mobile and not to VZ, we believe) while VZ ads promoting Droid and other anti-iPhone devices appear to have intensified markedly," Reid said.

Rumors that sprung up earlier this year that AT&T was attempting to reach an agreement with Apple to extend the exclusive agreement for the iPhone have since cooled down, leading to the speculation that the device will be made available on another carrier in the near future.

The current Apple device would have to be altered to work with T-Mobile 3G network.

With the sell-off, investors could be sending a message that either they don't want Apple to leave the high margin deal with AT&T, or if they do leave they should strike a deal with a carrier with much larger reach.

Apple shares closed the regular session down 1.47 percent to $196.97, but is back up to $197.80 in after-hours action. Shares of AT&T are up 0.85 percent to $27.17 in aftermarket hours.

Get Market Moving News Alerts - 2 Week Free Trial http://www.streetinsider.com/premium_content.php

Shares of BioCryst Pharmaceuticals (Nasdaq: BCRX), maker of experimental influenza drug peramivir, rallied in the final hours of trading today after an analyst at JMP Securities made positive comments following news that partner Shionogi was granted priority review of the drug in Japan.

JMP Securities analyst Charles Duncan, PhD said the priority review in Japan could have a positive read through in U.S. and other key markets. Duncan stated "this provides recognition of the medical need for a rescue medication during the current H1N1 pandemic."

Based on the news from Japan, he expects peramivir could be approved in Japan in mid 2010, versus prior expectations of early 2011.

But more importantly, he said the rapid approval of peramivir in Japan may enhance investor conviction for the drug both in the U.S. and globally where additional orders for emergency stockpiling of the drug remain a possibility. Duncan believes the approval and adoption in Japan could reduce both regulatory and commercial risk in the U.S. and Europe.

Duncan said industry sources have confirmed that BioCryst's partner Shionogi has been notified of priority review, although an anticipated timeline was unable to be confirmed.

Royalties on peramivir in Japan could conservatively be worth $1 per share in 2015, Duncan said. He is reiterating his Outperform rating and $15 price target on the stock.

Shares of BioCryst are up over 500 percent year-to-date due to the swine flu concerns and peramivir potential. Recently BioCryst received orders from the U.S. for 10,000 courses of intravenous peramivir for H1N1 after the company was granted emergency use authorization from the FDA after a request by the CDC. The stock fell since mid-November after selling 5,000,000 shares of its common stock at $9.75. Shares are currently at $8.33, up 2.7 percent on the session.

Get Market Moving News Alerts - 2 Week Free Trial http://www.streetinsider.com/premium_content.php

Robert W. Baird commented on Onyx Pharmaceuticals Inc. (Nasdaq: ONXX), following the China NDRL updated, which did not included Nexavar. The firm reiterated their Outperform rating and $35 price target.

Analyst Chris Raymond, "While China's NDRL update yesterday was not exactly what we had hoped for - Nexavar is not included on this draft - we understand from management this is just the first step in a long negotiation process. That said, we are encouraged that healthcare reform in China is officially underway, and remain optimistic as to Nexavar's eventual inclusion. We remain ONXX buyers into the mid $30s."

WellCare Health Plans, Inc. (NYSE: WCG) is higher today after Goldman Sachs lifted their price target on the stock this morning to $40 from $34, and reiterating their Conviction Buy List rating. The firm said they would be aggressive buyers of WellCare shares following their 3Q2009 stat filing analysis.

The firm raised 2010 EPS estimates to $3.30 from $3.20 and 2011 EPS estimate to $3.48 from $3.38.

The has a three-pronged thesis on WCG: unappreciated near-term earnings power, longterm benefit from the secular Medicaid growth opportunity, and likely acquisition candidate.

Shares of WCG are up 5% today to $34.63.

Applied Materials Inc. (Nasdaq: AMAT) shares and options are seeing interest today. Shares are up 4.8% on volume that is already above the norm.

Options analyst at Susquehanna Financial noted that opening investors bought 25,000 December 13 (.45d) calls for $0.30, which equates to roughly two-and-a-half times the average daily call volume. On this the firm said, "these front-month call buyers could be either banking on further near-term upside or protecting short underlying positions. One potential near-term catalyst includes a company presentation at the Credit Suisse Annual Technology Conference tomorrow during market hours."

Get Market Moving News Alerts - 2 Week Free Trial http://www.streetinsider.com/premium_content.php