Headlines
--------------------------------------------------------------------------------
02/01 15:53 Special "Pharmaceutical Industry" Edition of The Wall Street
Transcript
Special "Pharmaceutical Industry" Edition of The Wall Street Transcript
NEW YORK--(BUSINESS WIRE)--Feb. 1, 1999--Leading analysts examine the Pharmaceutical in the just-published edition of The Wall Street Transcript, a vital review for investors and companies. 1) An in-depth roundtable forum featuring five distinguished analysts: Jeffrey Chaffkin of PaineWebber, Mara Goldstein of CIBC Oppenheimer, Hemant Shah of HKS & Company, Sergio Traversa of Mehta Partners and Leonard Yaffe of NationsBanc Montgomery Securities. The panel discusses drug product failures, drug prices, Medicare coverage expansion, product flow, development trends, market share shifts, the role of biotech/gene therapy, overseas markets and M&A prospects. Mergers are difficult in this sector due to the size, complex organizations, and unique cultures that exist in pharmaceuticals. But Chaffkin asserts, "Market forces will drive consolidation. The industry is very fragmented, with no company controlling even a 5% global market share. Costs for R&D and marketing are rising, and everyone wants more U.S. exposure. Importantly, mergers can lead to cost savings opportunities. Bottom line is that we believe you are going to continue to see mergers, but only a few each year."
Traversa looks for mergers and consolidation in Europe and eventually Japan. Regarding U.S pharmaceutical companies, he declares, "In the U.S., I don't think the strongest pharmaceutical companies, namely Lilly (NYSE:LLY), Pfizer (NYSE:PFE), Schering-Plough (NYSE:SGP), will merge anytime soon, because they don't need to. They are growing their earnings in the high teens without any outside help and without the need to cut costs. I see possible activity in term of mergers and acquisitions for Abbott (NYSE:ABT), American Home (NYSE:AHP), Bristol-Myers (NYSE:BMY) and potentially Johnson & Johnson (NYSE:JNJ)."
Other topics addressed by this eminent panel: drugs going off-patent, direct to consumer advertising, new products, investment approaches, and the future outlook for the sector.
The panel offers several investment recommendations, including: Forest Labs (AMEX:FRX), Lilly (NYSE:LLY) and Pfizer (NYSE:PFE), about which Yaffe states, "Pfizer had the Rookie of the Year' three years in a row in terms of new drug launches. There is no generic competition of significance in the near future." 2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or criticize 17 Pharmaceutical companies and managements, includes several recommendations and a few admonishments. High praise for Fred Hassan from Pharmacia & Upjohn (NYSE:PNU) because he "has done a spectacular job turning around a company that appeared to be a sinking ship. He has rejuvenated the whole organization."
Accolades for William Steer, Jr. of Pfizer (NYSE:PFE) as "well-respected" and "a tremendous leader."
But, another pharmaceutical CEO is labeled a "disappointment" whose firm has "done a terrible job at managing expectations." 3) Pharmaceutical Stocks - Alex Zisson - Hambrecht & Quist. An extensive interview in which he shares his top small cap recommendation, stating, "My favorite is actually ALZA (NYSE:AZA). I think the way to invest in any drug company, big or small, is ahead of a new product cycle." 4) Pharmaceutical Stocks - Mariola Haggar - Deutsche Bank Securities. A thorough interview in which she asserts, "As for Schering-Plough (NYSE:SGP), I think a significant event for that stock in 1999 will be a drug that many people have discounted, i.e., Vasomax, the second pill for male impotence." 5) Pharmaceutical Stocks - Jeffrey Kraws - EVEREN Securities. A comprehensive interview in which he asserts, "I would expect to see pharmaceutical companies, through their research and development collaborations, as well as their product development internally, get much more involved in the genomics area because this is the technology of the future." 6) In-depth interviews with the CEOs from ChiRex (Nasdaq:CHRX), Elite Pharmaceuticals (OTC:ELIP), CytRx (Nasdaq:CYTR), Alliance Pharmaceutical Corp.(Nasdaq:ALLP), Restrac (Nasdaq:RTRK), and Sheldahl (Nasdaq:SHEL).
Other companies mentioned in this special 48-page Pharmaceutical Industry section include: Alkermes (Nasdaq:ALKS), ALPHARMA (NYSE:ALO), AmeriSource (NYSE:AAS), Astra (NYSE:A), Barr Labs (NYSE:BRL), Bayer ADR (OTC:BAYZY), Bergen Brunswig (NYSE:BBC), Cardinal Health (NYSE:CAH), Centocor (Nasdaq:CNTO), DuPont (NYSE:DD), Dura (Nasdaq:DURA), Elan (NYSE:ELN), Genentech (NYSE:GNE), Glaxo Wellcome (NYSE:GLX), Hoechst (NYSE:HOE), INCYTE (Nasdaq:INCY), Inhale Immunex (Nasdaq:IMNX), Inhale Therapeutic (Nasdaq:INHL), JONES PHARMA (Nasdaq:JMED), Kodak (NYSE:EK), McKesson (NYSE:MCK), MEDCO Research (NYSE:MRE), Medicis (NYSE:MRX), Merck (NYSE:MRK), Monsanto (NYSE:MTC), Novartis (Nasdaq:NOVT), PharMerica (Nasdaq:DOSE), Rhone-Poulenc (NYSE:RP), Roche ADR (OTC:ROHNY), Sepracor (Nasdaq:SEPR), SmithKline Beecham (NYSE:SBH), Teva (Nasdaq:TEVIY), Warner-Lambert (NYSE:WLA), Watson Pharmaceuticals (NYSE:WPI), Zeneca (NYSE:ZEN), and Zonagen (Nasdaq:ZONA).
For information on how to obtain a copy of this issue, see twst.com or call (212) 952 - 7433. The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.
The Wall Street Transcript is a premier weekly investment publication serving serious long-term investors for over 35 years. The Transcript publishes industry roundtables and interviews with Wall Street analysts, money managers, and company CEOs, and is read by top money managers, brokers, and individual investors. --30--rc/ny*
CONTACT: The Wall Street Transcript
Barbara Diliberti, 212/952-7455
or
(800) 246-7673
twst.com Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com (c) 1998 Business Wire
|
