PFE Analysts React to the 4th Qt Earnings
Listed below is a summary of the published analyst reactions to PFE's 4 Qt earnings.
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Pfizer had three drugs bring in more than $1 billion in sales in 1998: Norvasc, a high blood pressure and angina medication; Zoloft, for depression; and Zithromax, an antibiotic. Diflucan, a drug for yeast infection, reached $916 million in sales last year. All four of the drugs saw double-digit growth in 1998. "Based on these numbers, Pfizer is poised to have a superior 1999," said Hemant Shah, a drug industry analyst with HKS & Co. in Warren, N.J.
"Pfizer's fourth-quarter results were a little better than our optimistic expectations and show the company is in very, very good condition with its biggest drugs going strong," said Sergio Traversa, a drug analyst for the New York research firm Mehta Partners. Viagra, launched in April, 1998, contributed much of the growth. It had fourth-quarter global sales of $236 million and 1998 sales of $788 million. Traversa said annual Viagra sales, based upon current growth trends, are likely to hit $2 billion by the year 2001. "That may be below the bullish $5 billion or $10 billion annual forecasts that some analysts had originally made for Viagra, but $2 billion is an impressive reward for Pfizer," Traversa said. Traversa said Pfizer was trading at 41 times its projected diluted per-share earnings for the year 2000, versus an average share price/earnings ratio of just 32 for large U.S. pharmaceutical companies. "It's a premium for Pfizer that is fully deserved because the company is growing faster than its peers and has such a strong research and development effort," Traversa said, noting Pfizer's 1998 R&D budget of almost $2.3 billion surpassed all other U.S. drugmakers.
''It was a blowout quarter,'' said Charles Engelberg, an analyst with AmeriCal Securities, who has an ''outperform'' rating on Pfizer. ''There's nothing not to like.''
Celebrex could give Pfizer the third ''rookie of the year'' product, the best drug introduction for 1999 following similar success in 1997 and 1998, said Leonard Yaffe, an analyst with NationsBanc Montgomery Securities.
Lipitor's 1998 sales are expected to top $2 billion. Warner- Lambert will report its full 1998 results Monday. ''Merck and Bristol convinced everyone that lowering LDL was good and then Warner-Lambert came out with a drug that lowers LDL even more,'' said Alex Zisson, an analyst with Hambrecht & Quist.
"I think it showed the breadth of the portfolio here," said PaineWebber Inc. analyst Jeffrey Chaffkin, who said that excluding Viagra, sales of all the drugs beat his estimates. "We were looking for closer to $300 million" in worldwide Viagra sales, he said.
But Viagra sales didn't disappoint Gruntal & Co. analyst David Saks, who said sales of the drug are still strong amid concerns by some that the drug was dying. "Pfizer is very strong across the board," said Saks. He stressed the company has several strong drugs, and is not reliant merely on Viagra . Indeed, Viagra is Pfizer's fifth best-selling drug, though easily the most recognized.
Pfizer Inc. (PFE US) was reiterated ''buy'' by analyst Kenneth R. Nover at A.G. Edwards & Sons Inc.
Pfizer Inc. (PFE US) was maintained ''buy'' by analyst Jerome R. Brimeyer at Warburg Dillon Read Inc.. The 12-month target price is $140.00 per share.
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