H&Q Analyst Still Likes Pfizer Despite Zeldox Setback
June 22, 1998 1:59 PM
NEW YORK (Dow Jones)--Hambrecht & Quist Inc.
drug sector analyst Alex Zisson favors shares of Pfizer
Inc. (PFE), despite the regulatory setback the company
received on a new antipsychotic product.
The Wall Street Journal reported Monday that the Food
and Drug Administration surprised Wall Street by
sending pharmaceutical giant Pfizer a "nonapprovable"
letter for its Zeldox medicine, intended for patients with
serious mental illness such as schizophrenia.
But Zisson told CNBC Monday that Pfizer's overall
sales picture is strong, especially with its impotence drug
Viagra now being launched in Europe.
"They still, even with Zeldox on the sidelines, have a
very strong pipeline," he said.
Zisson said the drug group in general and Pfizer in
particular are expensive stocks, but he sees Viagra's
sales growth as likely to continue even if insurers or
health-care organizations refuse to pay for patients to
use the drug.
On Friday, health care organization Kaiser Permanente
announced it will exclude coverage of Viagra, citing cost
concerns.
The analyst also likes Abbott Laboratories (ABT),
Merck & Co. (MRK), Alza Corp. (AZA) and Johnson
& Johnson (JNJ), which Zisson described as "halfway
between a drug and device stock."
He said minimal exposure to Asia and good
fundamentals make drug stocks good defensive stocks.
-Ted W. Kemp; 201-938-5392 |
