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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (19830)	1/8/2002 4:53:41 PM
From: Softechie	Respond to of 99280

Market is ignoring overpriced comments from many sources. Very interesting.

To: Softechie who wrote (19830)	1/8/2002 4:58:52 PM
From: Sully-	Respond to of 99280

Andrx Sees Significantly Lower Earns By Jed Seltzer NEW YORK (Reuters) - Drugmaker Andrx Corp. (NasdaqNM:ADRX - news) said on Tuesday it expects its fourth-quarter earnings to be ''significantly lower'' than third-quarter profits of 35 cents per share, citing delays in launching generic versions of lucrative drugs and plunging sales of asthma medicine albuterol. The Fort Lauderdale, Florida-based company did not indicate whether earnings would be below the analysts' consensus estimate of 26 cents per share, as compiled by Thomson Financial/First Call. Forecasts range from 20 cents to 39 cents per share. Analysts have speculated that Andrx's albuterol sales would suffer for the quarter because a competitor, Schering-Plough Corp. (NYSE:SGP - news), is making inroads into Andrx's market share and eroding the price level for the drug. Andrx said fourth-quarter albuterol sales plunged to about $7 million from $22 million in the third quarter. The company reported total drug sales of $72.7 million in the third quarter, with albuterol sales accounted for 30 percent of the total. Andrx also runs a drug distribution unit that generated $132.8 million in revenues in the third quarter. Shares of Andrx fell $1.35, or 2.1 percent, to close at $64.18 on Nasdaq on Tuesday, well above the low of $38.50 during the past year. But the stock traded as high as $76.52 just a month ago. Several analysts slashed their estimates after the announcement, including Raymond James & Associates, which reduced its fourth quarter forecast to 20 cents per share from 34 cents per share. DELAYED DRUG LAUNCHES, RISING EXPENSES Andrx was expected to launch a copycat form of diabetes blockbuster drug Glucophage during the fourth quarter. However, the drug's maker, Bristol-Myers Squibb Co. (NYSE:BMY - news), successfully thwarted the launch of rival generics through legal arguments to the U.S. Food and Drug Administration. In addition, Andrx has been waiting for more than a year for final approval to make a copycat form of hypertension drug Tiazac, sold by Biovail Corp. (Toronto:BVF.TO - news). But Biovail has so far successfully staved off Andrx by making patent infringement contentions in courts and to the FDA. Andrx warned investors on Oct. 25 that legal and regulatory obstacles could delay the launch of generic versions of some drugs, putting ``pressure on near-term earnings.'' Andrx's stock fell more than 8 percent last Friday after Goldman Sachs lowered its fourth-quarter estimate for Andrx to 20 cents per share from 31 cents. ``Earnings being sequentially down was something they clearly talked about in October in their last earnings conference call, and I think some people just failed to get the message,'' said analyst Robert Uhl of Leerink Swann & Co. ``Our view is the stock is still a buy, because you're buying it for the future, not for fourth-quarter earnings,'' he added. The company's stock often swings with prospects for copycat forms of heartburn and ulcer pill Prilosec, the world's top-selling drug with more than $6 billion in annual sales. Andrx could receive six months as the only generic in the U.S. market if it wins an ongoing New York court case against Prilosec's maker, AstraZeneca Plc (quote from Yahoo! UK & Ireland: AZN.L). Andrx also cited higher legal costs associated with the Prilosec case for its earnings shortfall. The company has been incurring costs from hiring a sales force that would help promote its branded cholesterol drug awaiting FDA approval. The company is also losing a $3 million quarterly payment from Geneva Pharmaceuticals, a division of Novartis AG , to help develop the cholesterol drug, Altocor, and diabetes treatment Metformin XT. Andrx in October said it was retaining rights to the drugs.