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

To: Solid who wrote (5086)	8/21/1998 3:18:00 PM
From: WS_DE	Respond to of 9523

Big drug stocks mirror market pain, biotechs wince Friday August 21, 1:36 pm Eastern Time Big drug stocks mirror market pain, biotechs wince NEW YORK, Aug 21 (Reuters) - Losses by major U.S. drug stocks mirrored a sharp decline in the broad equity market on Friday, while biotechs took a more severe beating because of their poorer liquidity and weaker earnings prospects, analysts said. The American Stock Exchange Pharmaceutical Index, which includes 11 of the largest U.S. drugmakers and several large European pharmaceutical companies, was off 2.66 percent in early afternoon trade -- compared with a 2.83 percent decline in the Dow Jones Industrial Average. Among the big drug stocks, Pfizer Inc. (PFE - news) was off 3-1/4 to 102-7/16, or 3.1 percent, while Merck & Co. (MRK - news) -- a Dow component -- declined 2-11/16 to 126, or 2.1 percent. Bristol-Myers Squibb Co. (BMY - news) slipped 2-11/16 to 106-3/8; Schering-Plough Corp. (SGP - news) fell 2-5/16 to 94-7/8; diversified Johnson & Johnson (JNJ - news) dropped 2-1/16 to 73; and Indianapolis drugmaker Eli Lilly and Co. (LLY - news) slipped 1-13/16 to 71-1/16. ''Most of the big drug stocks are down about 2 or 3 percent, essentially in line with the broad market. It's nothing to get excited about,'' said Southeast Research Partners analyst Neil Sweig. Sweig said shares of U.S. big pharmaceutical stocks were collectively up 25 percent for the year to date as of the market close on Thursday, double the 12.5 percent gain for the broad-based Standard & Poor's 500 Index. ''So today the drug stocks are giving up just a fraction of their gains for the year. They're still way out in front,'' Sweig said. J.P. Morgan drug analyst Carl Seiden said many investors were concerned the broad market could recede further this year amid concerns about corporate earnings. But Seiden said he believed big pharmaceutical stocks were in a better position to hold their ground than other sectors because of major drugmakers have prospects of double-digit earnings growth for years to come, fueled by profitable new prescription drugs and expanded uses of existing ones. ''In general, they are well positioned for the kind of anxiety and panic selling we're seeing today. The drug group is where you want to be,'' he said. The Nasdaq Biotech Index was off 4.35 percent in early afternoon trade, creating a year-to-date decline of 2 percent. Among the leading biotechs, Chiron Corp. (CHIR - news) was off 7/8 to 15-11/16; Genzyme General Corp. (GENZ - news) fell 1-5/8 to 30-3/8; and Amgen Inc. (AMGN - news) fell 3 to 66-7/16. Lehman Brothers drug analyst Anthony Butler said larger biotech stocks were holding up better than most of the smaller ones because of their better liquidity and the fact they already have products on the market to generate earnings. ''Companies with consistency of earnings and the possibility of introducing new products will do better; it's a product-driven business,'' Butler said, adding that the smaller, more-vulnerable biotechs tended to be research outfits with drugs merely on the horizon. Help Copyright c 1998 Reuters Limited. All rights reserved. biz.yahoo.com