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

To: Barron Von Hymen who wrote (5332)	9/1/1998 6:28:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 9523

Drug group, minus AHP , partially rebounds Tuesday September 1, 5:51 pm Eastern Time NEW YORK, Sept 1 (Reuters) - The largest U.S. drugmakers Tuesday collectively recovered over half the losses they suffered in Monday's sharp decline, with only American Home Products Corp. (AHP - news) bucking the bounce-back trend. Analysts said AHP was left behind after quietly lowering its earnings guidance slightly for the third quarter and for 1998 on Monday. The American Stock Exchange Pharmaceutical Index, comprised of 11 of the largest U.S. drug companies and several European players, rose 4.96 percent -- recouping the majority of its 8.4 percent loss from Monday. The Dow Jones Industrials Average finished up 288 points, or 3.82 percent. It had plunged 512 points, or 6.37 percent on Monday. ''The drug stocks have recaptured a big part of yesterday's losses in line with the recovery we've seen today in the (broad) U.S. stock market,'' said Southeast Research Partners drug analyst Neil Sweig. ''There's nothing wrong with the fundamentals or the operating earnings of these pharmaceutical companies, so they're recovering,'' Sweig said, adding most of them were swept along willy-nilly in Monday's market selloff. American Home Products, however, skipped Tuesday's festivities, instead edging down 7/8 to 49-1/4. Its shares had fallen 6-3/16 on Monday. Salomon Smith Barney drug analyst Christina Heuer issued a research call note Tuesday saying American Home had ''talked down'' its earnings guidance to $0.46 for the third quarter of 1998 and to $1.80 for the full year of 1998. She said AHP's new third quarter guidance was one cent below the consensus forecast of analysts polled by First Call and that its 1998 guidance was three cents below the First Call projection. Heuer was not immediately available for comment, but a member of her staff told Reuters that AHP had lowered its guidance in a telephone conversation with Salomon Smith Barney on Monday. AHP spokesman Lowell Weiner said he could not comment on the reported change in AHP's earnings guidance, adding the company had made no news announcements of any kind Tuesday. Shares of Bristol-Myers Squibb Co. (BMY - news) jumped 7-1/4 to 105-1/8 on Tuesday. They had plunged 10-15/16 on Monday. Warner-Lambert Co (WLA - news), which markets the blockbuster anti-cholesterol drug Lipitor, rose 6-3/8 to 71-5/8. It had fallen 9-1/4 on Monday. Drug giant Merck & Co (MRK - news) reclaimed 6-1/8 of its 11-7/16 loss from Monday, closing Tuesday at 122-1/16. Schering-Plough Corp (SGP - news), which fell 9 points on Monday, snatched back 5-3/8 to close at 91-3/8. Eli Lilly and Co (LLY - news), which markets the antidepressant Prozac and schizophrenia drug Zyprexa, rose 3-15/16 to 69-7/16. It had fallen 6-3/4 on Monday. Pfizer Inc (PFE - news), which fell 8-5/8 on Monday, recouped 3-9/16 to 96-9/16. Johnson & Johnson, which slipped 5-3/16 on Monday, rose 3-1/2 to 72-1/2. And Pharmacia & Upjohn, which dropped 3-1/4 on Monday, edged 11/16 higher to 42-1/4. Although most major U.S. drug companies are well off their highs for 1998, the American Stock Exchange Pharmaceutical Index remains ahead 19.7 percent for the year to date.