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

To: flickerful who wrote (5276)	8/27/1998 9:06:00 PM
From: BigKNY3	Read Replies (1) \| Respond to of 9523

Tough day for investors...but the Dow Jones has reassuring news: BigKNY3 Dow Jones Newswires -- August 27, 1998 Drug Stocks Seen As Safe Haven In Volatile Market By Melanie Trottman NEW YORK (Dow Jones)--Investors trying to weather the recent stock market volatility view drug stocks as a safe-haven. Shares of the largest pharmaceutical and biotechnology companies, though down Thursday, are holding up well under current market conditions, due largely to their steady and reliable earnings stream, built-in market demand and limited exposure to emerging markets experiencing trouble, industry observers said. "The drug companies are essentially your classic defensive plays," said Dresdner Kleinwort Benson pharmaceutical analyst Premal Rajwani. And in a market filled with uncertainty, investors want to avoid risk, said Lehman Brothers biotechnology analyst Matt Murray. Stocks like Merck & Co. (MRK), Pfizer Inc. (PFE) and Eli Lilly & Co. (LLY) are "less volatile because they're generally valued based upon more stable variables," Murray said. The Dow Jones pharmaceutical index is trading off 1.6%, compared with a 2.7% drop for the broad-based Dow Jones Equity Market Index. The biotechnology index is off 1.8%. Mining is the biggest loser, off 7.4%. Boasting double-digit earnings growth of 15%-20%, compared with 5%-10% for the S&P 500 Index, drug companies remain fundamentally strong, making investors flock to them in uncertainty. "This is flight to quality in the equity sector," Murray said. Demand for drugs is high and a market downturn isn't likely to change that, market watchers said. "People still fall sick in bad times or in good times." Rajwani said. Ken Kam, a portfolio manager for First Hand Funds, agreed. "Drugs are one of the things that people cut back on last," he said. His funds hold shares of Amgen Inc. (AMGN) and Centocor Inc. (CNTO). Even as the overall market has suffered a beating recently, Eli Lilly reached a 52-week high Wednesday of 77 11/16, a gain of about 13% in just two weeks. The FDA on Wednesday approved the company's anticancer agent Gemzar for an additional use. The stock closed Thursday at 74, down 3 1/8, or 4.1%. Merck closed at 129 1/8, which represents a decline of about 7% from the stock's 52-week high of 139 1/8 set on July 17. Similarly, Schering-Plough Corp.'s (SGP) shares closed at at 97 1/16, which is down about 8% from its 52-week high of 105 1/2 set July 16. Johnson & Johnson (JNJ) closed at 73 15/16, which is a decline of about 7.5% from its 52-week high of 79 3/8 reached July 30. Not all drug stocks have weathered the downturn as well. For instance, Warner-Lambert Co.'s (WLA) shares closed at 74 15/16, down about 13% from their 52-week high of 85 15/16 on July 20. If the volatility were taken out of the market, investors might move more of their money to the smaller-cap biotechnology firms, Lehman Brothers' Murray said. But for now, drug stocks are seen as a safety net.

To: flickerful who wrote (5276)	8/28/1998 7:45:00 AM
From: Anthony Wong	Read Replies (2) \| Respond to of 9523

08/28 06:54 FOCUS-Rouble crisis chokes off arrival of medicine (Releads with new quotes, detail) By Adam Tanner MOSCOW, Aug 28 (Reuters) - The sudden halt in the convertibility of Russia's rouble has choked off the arrival of new medicine and could endanger the nation's health if current uncertainty continues, experts said on Friday. "The importation has almost stopped," said Manfred Hollstein, president of Swedish-Americian group Pharmacia & Upjohn Inc <PHU.ST> <PNU.N> in Moscow. "The banking system is not working, that means no bank transfers, no payments, no guarantees." "From the beginning of the chain outside of Russia right up to the pharmacies there is an unclear situation," said Hollstein, whose company's sales to Russia include cancer drugs. "The pharmacies don't know what to charge, the international companies don't know how to receive money." Moscow's main currency exchange has cancelled foreign trading for the past three days. Companies know the Russian rouble is worth far less than it was earlier this month, but they do not know precisely by how much. As a result, importers of all goods into Russia face an anarchic market, but the potential for disaster is especially critical with medications. "Everything is pretty much gummed up at the moment," said Kenneth Peterson, local marketing manager for Pfizer Inc <PFE.N> of the United States. "And until the rouble re-emerges again, it's probably going to stay pretty much gummed up, but after that it may start moving again." Pfizer's best selling drug in Russia treats hypertension. The halt in trade could even affect the sex life of some. Peterson said plans to introduce Pfizer's impotence drug Viagra to Russia scheduled for October could be delayed if importers simply cannot afford the popular new medication. Anton Katlinsky, the Health Ministry official responsible for Russia's drug and medical equipment supplies, said 60 percent of Russia's medicine is imported. "If the financial crisis in Russia worsens over the next few months, then a disruption of medicine is possible," he said in a statement on Friday. "The supply of life-vital drugs is enough for up to a three-month period." The statement said that the Health Ministry was taking steps to assure the flow of needed medicine, but it was unclear what the Russian government, on the verge of bankrupcy, could do. The ministry said it was attempting to work with large suppliers to build a backlog of essential medicines. Russia already has a poor, underfunded health care system which is a factor in the average male mortality age of 58. Some pharmacies in Moscow closed altogether on Friday as they did not know what prices to charge. Because middlemen who distribute medicine to pharmacies often pay a month later, they do not know what prices to charge, and are mostly deciding to defer sales for the time being, officials say. The freeze of official trade in the rouble has also left importers unable to raise large quantities of hard currency to pay for new shipments. Hollstein of Pharmacia & Upjohn said ordinary toiletries. including diapers, were becoming hard to come by. "It's difficult or very expensive to find things like Pampers or vitimins," he said.