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Stocks in Focus: Conditional Approval for America West, Sales Drop for Federated Department Stores, FDA Rejects Imclone's Cancer Drug

Strategic Insights

— 1 min read

In the aftermath of the September 11 terrorist attacks, Congress passed a $10 billion package to provide loan guarantees to struggling airlines. As a result, America West Holdings Corp. received conditional approval for $380 million in loan guarantees, which helped the airline avoid bankruptcy. However, not all companies are experiencing a positive turn of events, as Federated Department Stores reported a decline in comparable sales, and Imclone Systems Inc. faced rejection of its cancer drug application by the FDA.

Key Takeaways:

  • America West Holdings Corp. received conditional approval for $380 million in loan guarantees under a $10 billion package passed by Congress after the September 11 terrorist attacks, saving the airline from bankruptcy.
  • Federated Department Stores reported a decline in comparable sales, down 9 to 9.5 percent for the month, a smaller decline than initially expected.
  • Imclone Systems Inc.'s application for a new cancer drug, Erbitux, was refused by the FDA, prompting the company to plan refile the application.
  • Microsoft Corp. faced opposition from nine states to a request for time to gather evidence in the antitrust case against the company.
  • The stock prices of America West Holdings Corp., Federated Department Stores, and Imclone Systems Inc. were significantly affected by these developments.

Statistics:

  • America West Holdings Corp. stock price increase: $0.64 at $3.11
  • Federated Department Stores comparable sales decline: 9 to 9.5 percent for the month
  • Imclone Systems Inc. stock price decrease: $9.51 at $45.74
  • Microsoft Corp. stock price decrease: $0.64 at $67.23
  • States opposing Microsoft Corp.'s request: 9
  • FDA application refile rate for biotech companies: Unknown
  • Antitrust case law against Microsoft Corp. cases: Ongoing

Sources:

  • (AP) - December 31, 2001
  • (PROFILE (CO:Federated Department Stores; TS:FD; IG:RTS;) (CO:Imclone Systems Inc; TS:IMCL; IG:PBT;) (CO:Microsoft Corp; TS:MSFT; IG:SOF;) )
  • (AP info: 1326)
  • (C) Copyright 2001 FWN News Provided by COMTEX (http://www.comtexnews.com)

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