Warner-Lambert sees $3.3 bln in '99 Lipitor sales
By Ransdell Pierson
NEW YORK, May 18 (Reuters) - Warner-Lambert Co.<WLA.N> said on
Tuesday it expects its flagship anti-cholesterol drug Lipitor to have
booming sales in 1999 and beyond, but cautioned that its controversial
diabetes drug Rezulin would likely have flat sales this year amid safety
concerns.
Warner-Lambert gave analysts its own estimates of potential sales for its
leading drugs, most notably saying it agrees with Wall Street expectations
that its flagship anti-cholesterol drug Lipitor would garner 1999 sales of
$3.3 billion, growing to more than $4 billion in the year 2000.
Lipitor had sales of $2.2 billion in 1998.
The company's newly installed chief executive officer, Lodewijk de Vink,
reaffirmed the company's previously stated goal of achieving 30 percent
growth in diluted per share earnings in 1999 of $1.92. Earnings growth
was 40 percent last year thanks mostly to the stellar performance of
Lipitor.
Wall Street has been riveted in the past year with safety concerns over
Warner-Lambert's second best-selling drug, Rezulin, for Type II diabetes.
Wall Street had expected Rezulin to become at least a $1 billion
blockbuster when it was launched by Warner-Lambert in early 1997,
about the same time that Lipitor was introduced to U.S. markets.
But sales of Rezulin began faltering last year after dozens of deaths were
linked to the drug, the first in a promising new class of oral diabetic
medicines known as glitazones.
Rezulin works by improving the ability of the body's hormone, insulin, to
remove glucose from the bloodstream.
The U.S. Food and Drug Administration is currently in the process of
deciding whether to allow the drug to be given by itself, or only in
combination with other diabetes drugs such as insulin or sulfonylureas.
Warner-Lambert told analysts at its annual research and development
meeting here it expected Rezulin sales in 1999 to be about equal to 1998
sales of $748 million.
But analysts have said Rezulin sales in 2000 and beyond could actually
fall amid expected new competition from Avandia and Actos, two new
glitazones being developed respectively by Britain's SmithKline Beecham
Plc. <SB.L><SBH.N> and Japan's Takeda Chemical Industries Ltd.
<4502.T>.
The company also said it was testing its epilepsy drug Neurontin in
combination with conventional painkilling drugs after discovering that
together they had a "strong analgesic effect."
Warner-Lambert said it was conducting a Phase II trail of Neurontin in
combination with naproxen, a member of the family of conventional
painkilling medicines known as non-steroidal anti-inflammatory drugs
(NSAIDs).
Company officials said that two separate studies using both drugs
together were targeting dental pain and osteoarthritis "flare."
Neurontin is one of Warner-Lambert's best selling drugs, but is facing the
loss of U.S. patent protection next year. Officials said however, that if the
combination trials with NSAIDs succeed, Neurontin could find new
markets.
Donald Wild, the head of New Jersey-based Warner-Lambert's global
pharmaceuticals division, projected that Neurontin would have sales of
about $800 million in the year 2000.
Last year Neurontin, an anticonvulsant, had sales of $514 million.
Warner-Lambert also said that it had signed a collaboration deal with
Germany's Schering AG to conduct research in drugs focused on
preventing blood clots.
It said the research involves drugs to inhibit blood-clotting factor "Xa." The
experimental drugs were "nearing Phase I" trials.
The company said the drugs would target deep-vein thrombosis and also
acute coronary syndromes. Additionally, the company said it expected
sales of its hypertension drug Accuser in 1999 to reach about $500
million, compared with $454 million in 1998.
The drug maker co-markets a hot new anti-depressant known as Celexa
with Forest Laboratories<FRX.A>.
Celexa, launched in the U.S. in 1998, has wrested away sales of Eli Lily &
Co's<LYNN> best-selling drug Prozac, also a member of the class of
drugs known as SSRI's.
Warner-Lambert expects Celexa to garner annual sales of $1 billion in
future years, and sees 1999 sales reaching $300 million.
Warner-Lambert's stock fell $1 to $65.94 on the New York Stock
Exchange.
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