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

To: S. HYDER who wrote (236)	6/7/1998 5:24:00 PM
From: James Baker	Respond to of 1722

The article that has mentioned several big pharma stocks favorably is the one entitled BEYOND VIAGRA in the health care cover story in the current BARRON'S dated 6/8/98 on news stands or if you subscribe it is on the Barron's web site. Here is the Lilly material abstracted: Paul A. Brooke, of Morgan Stanley Dean Witter. One of Brooke's favorite stocks is Eli Lilly. The Indianapolis firm's prospects had seemed clouded by the expiration of its U.S. patent on Prozac in 2003. But some recent studies of a new Prozac formulation raise hopes that the antidepressant may find extended patent life. The studies show that a combination of Prozac and the Lilly antipsychotic Zyprexa appears to lift depression in many patients for whom drugs like Prozac by themselves haven't worked. This combination has been shown to work on patients who have refractory depression, and this group may account for up to 25% of all depressed souls. So if the combination treatment proves out, says Brooke, it may reach the market around the time of Prozac's patent expiration. A more exciting dose of new revenues for Lilly will come from its new osteoporosis drug, Evista, launched in January of this year. Recent studies show that Evista doesn't aggravate breast cancer risk, as do other osteoporosis drugs. To that claim, Lilly may eventually be able to add the boast that Evista reduces risk of heart disease. Within five years, Brooke estimates, Evista could be nearly a $3 billion product for Lilly. These developments could boost the earnings multiple of the $62 stock, says the Morgan Stanley analyst, above its current level of 27 times his 1999 estimate of $2.25 a share. ''The psychology is clearly bottoming out,'' says Brooke. ''And the issue is not the numbers, it's the psychology.''

To: S. HYDER who wrote (236)	6/7/1998 5:50:00 PM
From: James Baker	Read Replies (1) \| Respond to of 1722

Rueters has Barron's article summary: Sunday June 7, 5:01 pm Eastern Time Health stocks seen safe in bad times - Barron's NEW YORK, June 7 (Reuters) - Health care stocks, hit in the early 1990s by talk of nationalized medicine and by expiring patents at drug makers, may be seen as better investment in an economy and stock market that shows signs of stalling, Barron's reported. In its June 8 issue, Barron's noted that the industry does well in good times and bad because health knows no business cycles. Paul Brooke of Morgan Stanley Dean Witter said Pfizer Inc.(PFE - news), WAS boosted recently by its anti-impotence drug Viagra, has even more potential. NEW YORK, June 7 (Reuters) - Health care stocks, hit in the early 1990s by talk of nationalized medicine and by expiring patents at drug makers, may be seen as better investment in an economy and stock market that shows signs of stalling, Barron's reported. In its June 8 issue, Barron's noted that the industry does well in good times and bad because health knows no business cycles. Paul Brooke of Morgan Stanley Dean Witter said Pfizer Inc.(PFE - news), WAS boosted recently by its anti-impotence drug Viagra, has even more potential. Pfizer antidepressant Zoloft maintains strong sales and U.S. Food and Drug Administration recently approved the antibiotic Trovan against a wide spectrum of germs. Brooke also likes Eli Lilly and Co. (LLY - news), which may get a boost by combining its popular Prozac antidepressant with its antipsychotic Zyprexa, Barron's said. If the combination treatment is approved, it may hit the market at the same time Prozac's patent it set to expire in 2003, Brooke said. Arnold Snider, general partner of Deerfield Management, told Barron's that Merck and Co. Inc. (MRK - news) is the only big name drug company he favors. He said the company has the lowest price-to-earnings multiple in the group, trading at 22 times its 1999 earnings per share estimate of $5.15. Snider said he likes smaller drug stocks such as Forest Laboratories Inc. (FRX - news), which plans to launch an antidepressant called Celexa this summer. The drug reportedly has fewer harmful interactions with other drugs than does Prozac, Barron's reported. As for medical equipment makers, Glenn Reicin, an analyst with Morgan Stanley Dean Witter, said he thinks Medtronic Inc.(MDT - news) and Guidant Corp. (GDT - news) will capture the pacemaker market and Guidant and Boston Scientific Corp. (BSX - news) will lead the way in the catheter business. ------------------------------------------------------------------------ More Quotes and News: Boston Scientific Corp (NYSE:BSX - news)Eli Lilly and Co (NYSE:LLY - news)Forest Laboratories Inc (AMEX:FRX - news)Guidant Corp (NYSE:GDT - news)Medtronic Inc (NYSE:MDT - news)Merck & Co Inc (NYSE:MRK - news) Pfizer Inc (NYSE:PFE - news) Related News Categories: health