Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (4715)	8/4/1998 3:00:00 AM
From: Anthony Wong	Read Replies (1) \| Respond to of 9523

Deal seen near for Pfizer's Howmedica unit Monday August 3, 4:56 pm Eastern Time By Kevin Drawbaugh CHICAGO, Aug 3 (Reuters) - U.S. drug giant Pfizer Inc. was seen Monday as nearing a decision on divestment of its Howmedica orthopedics unit, with analysts tagging Swiss-owned Sulzer Medica Ltd. (SM - news) as a possible bidder for it. Pfizer has been expected to spin off Howmedica and analysts still did not rule that out, but they said that Sulzer has been openly shopping for a major orthopedics acquisition. ''Howmedica is for sale. Sulzer is buying. Everybody knows that, but I haven't heard anything specific,'' said Robin Young, medical technology analyst at Stephens Inc. Analysts put the market value of Howmedica, if it were sold and not spun off, at $1.5 billion to $3 billion. New York-based Pfizer in February said it would divest its three medical device units, including Howmedica, the world's third-largest maker of artificial hips and knees. The announcement helped start a wave of consolidation in the $9 billion global orthopedics market, topped so far by the late July agreement by Johnson & Johnson (JNJ - news) to acquire DePuy Inc. (DPU - news) from Roche Holding Ltd. (ROCZg.S) in a deal valued at about $3.5 billion. ''Our sense is that it's kind of down to the wire on Howmedica. If I had to bet, I would probably put Sulzer as the front-runner,'' said Katherine Martinelli, medical technology analyst at Cowen & Co. Sulzer, U.S. unit of Switzerland's Sulzer Medica AG (SMENn.S), said in June that it would sell its Intermedics subsidiary, a major manufacturer of cardiac pacemakers. Analysts said the sale may fetch more than $1 billion. After putting Intermedics on the block, Sulzer also said it was evaluating acquisitions in several markets, including orthopedics, heart valves, bone growth and vascular grafts. That shopping list suggested several possible Sulzer targets, in addition to Howmedica, analysts said. Among them could be Swiss-controlled orthopedic trauma devices maker Synthes Inc., as well as Osteotech Inc. (OSTE - news), which is developing a bone-growth agent, analysts said. They also said that major drug maker Bristol-Myers Squibb Co. (BMY - news) may be eyeing options for its Zimmer orthopedics unit, the world's largest artificial hip and knee maker. Sulzer in January completed a $595 million acquisition of Spine-Tech Inc., a maker of spinal fusion cages, the fastest-growing segment of the orthopedics market. Sulzer Medica AG is majority-owned by Swiss industrial giant Sulzer AG (SULZn.S) after a partial spin-off last year. ''We've been hearing things for weeks (on Howmedica) ... The rumor on an ongoing basis has been Sulzer,'' said Wade King, medical technology analyst at BancAmerica Robertson Stephens. Sulzer was seen as capable of getting financing for a major deal, even if it does not first sell Intermedics. ''I'm sure someone would lend them the money,'' said medical technology analyst Robert Faulkner at Hambrecht & Quist. biz.yahoo.com

To: Anthony Wong who wrote (4715)	8/4/1998 3:07:00 AM
From: Anthony Wong	Respond to of 9523

Monsanto, Merck pain drugs face FDA side-effect scrutiny Monday August 3, 6:08 pm Eastern Time By Ransdell Pierson NEW YORK, Aug 3 (Reuters) - Monsanto Co. (MTC - news) and Merck & Co. (MRK - news) are racing to launch the first in a new class of pain and arthritis drugs but the rival companies first have to persuade U.S. regulators the medicines cause fewer ulcers and less gastrointestinal bleeding than existing remedies, analysts say. The companies aim to introduce competing products in the class of drugs known as ''Cox-2'' inhibitors. They hope to snatch sales away from so-called NSAID drugs, which include over-the-counter standards like aspirin and ibuprofen, as well as prescription medicines like naproxen. ''Cox-2 drugs could be the next blockbuster pharmaceuticals area because they will begin displacing NSAIDs (non-steroidal anti-inflammatory drugs), a huge market now worth $10 billion'' in annual sales, said ABN-AMRO drug analyst Mario Corso. Monsanto's G.D. Searle pharmaceuticals unit is expected to seek U.S. Food and Drug Administration marketing approval any day for its experimental Cox-2 class drug Celebra (celecoxib) and to launch its product by early 1999, analysts said. Merck has said it will file a New Drug Application with the FDA for its contender, Vioxx, by December. Merck's later filing is expected to give Searle a three-to-four-month jump in getting its product to market. Corso said Celebra and Vioxx could each command annual sales of $2 billion globally within four years of their launch. They work by blocking the enzyme cyclooxygenase-2, known as Cox-2, which has been linked to pain and inflammation. NSAIDs also work by inhibiting the Cox-2 enzyme. But they also block Cox-1, a related enzyme that protects the stomach lining, resulting in such side effects as ulcers and gastrointestinal bleeding, believed to be responsible for more than 7,000 deaths in the United States each year. Searle and Merck have been secretive about their rival drugs, presumably because of an ongoing patent dispute. Corso said limited clinical data released by the companies hint that their drugs are as effective as NSAIDs but spare patients the gastrointestinal side-effects by leaving the Cox-1 enzyme unaffected. ''The clear excitement about these drugs is that they have a superior side-effect profile to NSAIDs. And to prosper, they will have to be able to champion that advantage on their drug labels,'' Corso said. But Neil Sweig, a Southeast Research Partners drug analyst, cautioned that it is yet far from certain the FDA will allow either drug to make such superior safety claims. ''Being able to make a claim of better safety than NSAIDs will be the Holy Grail for these drugs. To succeed, they must show a significantly lower incidence of GI bleeding and ulcers,'' Sweig said. ''The jury is still out when it comes to the FDA and what safety claims it will allow,'' EVEREN Securities analyst Jeffrey Kraws said. Even so, Kraws said he believes both drugs would win the right to make ''compelling'' claims of equivalent or better pain relief than NSAIDs with a lower incidence of GI effects. Searle is expected to seek FDA approval to market Celebra for osteoarthritis, rheumatoid arthritis and pain, analysts said. Officials at the Monsanto drug unit told Reuters they could not comment on Celebra because of regulatory restrictions on public statements posed by Monsanto's pending merger with Madison, N.J., drugmaker American Home Products Corp. (AHP - news). But Pfizer Inc. (PFE - news), which will co-market Celebra for Searle, indicated at a July 24 analyst meeting its belief that Celebra would be able to win FDA permission to claim on its label that its side effects are less than those of NSAIDs, Corso said. Merck spokeswoman Rebecca Higbee said her company initially would seek approval to market Vioxx for osteoarthritis and acute and chronic pain, while continuing studies of the drug for rheumatoid arthritis. ''Our studies to date show our drug is as effective as NSAIDs with the safety profile of placebo,'' or dummy pills, she said. Analysts noted that Vioxx would be a once-a-day drug, a possible marketing advantage to Celebra's twice-a-day dosing. biz.yahoo.com