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To: W. Clinton Terry who wrote (13791)	12/1/1997 6:19:00 PM
From: Sonki	Read Replies (1) \| Respond to of 27012

WARNER-LAMBERT CO. (WLA) 139 7/8 CLOSED. This pharmaceutical concern is expected to be a big loser this morning as the company announces new label changes for its Rezulin drug (troglitazone). The drug is used for type 2 diabetes, but it has received much attention in the past month due to concern that Rezulin may cause liver dysfunction in certain patients. This renewed awareness has generated some additional reports of hepatic dysfunction and has led Bear Stearns to make negative comments about Warner-Lambert, prompting the firm to lower its 1998 and 1999 EPS estimates due to slower growth associated with more monitoring of this particular drug. According to Bear Stearns it has cut its 1998 EPS estimate by $0.35 to $4.00 a share and lowered its 1999 EPS to 5.00-$5.25 from $5.45 a share. Meanwhile, Morgan Stanley has followed suit by cutting its rating on the stock to an "outperform" from a "strong buy." Reflecting its dimmer view on the stock, Morgan has also cut the growth rate of Warner-Lambert from 19%-20% to 16%-17%. Given the renewed concerns regarding Rezulin, Glaxo Wellcome (GLX 45 11/16), the manufacturer of Romozin in the U.K., also a new diabetes drug, has decided to temporarily suspend marketing of the drug pending its review of the safety data. Hence, these label changes and renewed concerns regarding the liver problems they may cause will pressure these stocks today, as Wall Street has turned negative towards Warner-Lambert at the moment. from briefing.