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Biotech / Medical : Pharma News Only (pfe,mrk,wla, sgp, ahp, bmy, lly) -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (173)	6/2/1998 9:59:00 PM
From: Anthony Wong	Respond to of 1722

Judy, thanks for the link to the thread, bookmarked it already. Don't follow biotechs now, but I'd post upgrades/articles of big biotechs and those pharmas that I am not following if I happen to see them. Actually of the big pharmas, I'm only following PFE, LLY, WLA and MTC (beause of Celebra).

To: Judy who wrote (173)	6/2/1998 11:58:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 1722

Boston Scientific, AVE Seen as Likely Buyers of Pfizer Unit [Thread, if PFE spins off one of the units to its shareholders, it would certainly boost the share price] Bloomberg News June 2, 1998, 3:47 p.m. PT Boston Scientific, AVE Seen as Likely Buyers of Pfizer Unit New York, June 2 (Bloomberg) -- Boston Scientific Corp. and Arterial Vascular Engineering Inc. are the most likely buyers for Pfizer Inc.'s cardiology devices unit, analysts said, which may sell for as much as $2 billion. Pfizer said in February that it was considering selling or spinning off its medical technology group as it focused on its more profitable drug business. Its Schneider unit sells devices used in angioplasty, a procedure done to open clogged arteries. Other potential acquirers either have less need for the products that Schneider is offering or have said that they're not looking for acquisitions, analysts said. Either Boston Scientific and Arterial Vascular would benefit from the acquisition and would be able to pay the $2 billion price analysts have said Pfizer is asking. ''Both would benefit strategically,'' said Sam Navarro, an analyst at Furman Selz LLC. Pfizer declined to comment. Arterial Vascular and Boston Scientific couldn't be reached for comment. Schneider's products include stents, small devices used to hold open clogged arteries. Estimates for the 1998 U.S. demand for stents have risen to as much as $1.4 billion. Focus on Drugs New York-based Pfizer, though, wants to concentrate on its strong drug line. Pfizer's pharmaceutical sales rose 13 percent in 1997 to $2.58 billion, as sales from its medical technology unit rose less than one percent to $424 million from $421 million. Pfizer's Viagra became one of the best-selling U.S. drugs within weeks of its April introduction. The impotence pill is expected to have $1 billion in sales in its first 12 months on the market. Shares of Santa Rosa, California-based Arterial Vascular, one of the top stent makers, have increased along with its earnings on the rising demand for stents. Natick, Massachusetts- based Boston Scientific is expecting to receive approval for its stents later in this year. Schneider is strong in the peripheral stent market -- stents used for blood vessels outside the heart in areas such as the kidneys and the neck. Buying Schneider would make either Boston Scientific or Arterial Vascular the dominant player in the peripheral stent market, analysts said. Bids Submitted Though there are other stent makers, analysts consider them less likely to be interested in buying Schneider, either because of internal problems or because they wouldn't find the company worth the price Pfizer would want. ''We've heard speculation that Boston and AVE submitted bids,'' said Sheryl Zimmer, an analyst at Deutsche Bank Securities. Buying Schneider would come with some risks, though, analysts said. The acquisition is likely to hurt earnings at either Boston Scientific or Arterial Vascular and it could increase debt significantly. ''I'm getting a wind shift here that it may become a buyers' market,'' said Kurt Kruger, an analyst at NationsBanc Montgomery Securities, referring to the speculation about the sale. ''People dropped out.'' Pfizer has two other divisions in its medical technology group. The Howmedica unit sells orthopedic devices and the American Medical Systems unit sells urological implants used to treat impotence and incontinence. Pfizer said in February that it could to sell or spin off its medical technology group. Morgan Stanley & Co. will serve as Pfizer's investment banker and Lazard Freres will serve as a consultant. Boston Scientific rose 1 15/16 to 63. Arterial Vascular rose 1/32 to 29 3/32. Pfizer rose 23/32 to 104 19/32. --Marion Gammill (609) 279-4097 and Kerry Dooley (609) 279-4016