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

To: Anthony Wong who wrote (5837)	10/7/1998 3:03:00 PM
From: Anthony Wong	Respond to of 9523

Dow Jones: Pfizer Flat, Schering-Plough, Eli Lilly Dn In Weak Sector October 07, 1998 2:11 PM By Victor Ozols NEW YORK (Dow Jones)--A slew of rumors have been infecting pharmaceutical stocks, causing a downdraft Wednesday for many in the sector, except Pfizer Inc. (PFE), which has been punished in recent sessions. An analyst attributed the moves to weakness in the pharmaceutical sector based on rumors and negative perceptions of recent news from the companies. "It looks like it's their turn in the barrel," said ABN Amro Inc. analyst James Keeney. But he added that sector fundamentals were still strong and he sees income for companies like Pfizer, Schering-Plough Corp. (SGP) and Eli Lilly Co. (LLY) growing at a strong pace for the year. However, market talk was hurting the shares Wednesday. Schering-Plough and Eli Lilly recently were down 6.4% and 6.3%, respectively. Pfizer was up 0.8%, but has lost 15% in October. A Schering-Plough spokesman said the company does not comment on its stock price. Pfizer and Eli Lilly officials were not immediately available to comment. Regarding Pfizer, Keeney cited a rumor that in order for patients to obtain prescriptions for its lead drug, Viagra, men will need to undergo an electrocardiogram. This would hurt sales of Viagra, which has already registered a mild weekly drop-off in prescriptions after a sharp run-up when the drug hit the market. To his understanding, Keeney said, the rumor isn't true. In addition, Pfizer is facing a lawsuit by Schering-Plough. The suit, announced late Monday, alleges Pfizer broke an agreement that resolved a dispute between the two companies over their competing allergy drugs. The suit isn't particularly significant, Keeney said. Two traders also said there was talk that some key financial advisers were recommending investors sell positions in other drug companies to buy Pfizer because of the recent decline in Pfizer's price. Further details were not immediately available. In the case of Schering-Plough, Keeney said, market players might be reacting to an announcement that its gross margins for the second half of the year would be flat with the first half. This doesn't come as a big surprise, Keeney said, adding that 80% margins are nothing to sneeze at. Keeney said investors are worried about Eli Lilly because the company said Wednesday it received a non-approvable letter from the Food and Drug Administration for the use of Zyprexa in the treatment of acute manic or mixed episodes associated with bipolar disorder. "The fact is (Zyprexa) does work in manic depressive disease and the FDA is just asking for a second study," Keeney said. "It's more the mechanics of the FDA's approval process" than a problem with the drug, he said. He said Zyprexa will continue to be used to treat schizophrenia, and, in fact, its sales are slated to rise markedly. NYSE-listed Pfizer shares recently were up 3/4, or 0.8%, to 90 1/8 on volume of 5 million, compared with average daily volume of 4.4 million. NYSE-listed Schering-Plough recently was down 6 1/4, or 6.4%, to 91 1/4 on volume of 2.1 million, compared with average daily volume of 1.9 million. NYSE-listed Eli Lilly shares were down 4 7/8, or 6.3%, to 72 5/8 on volume of 4.1 million, compared with average volume of 3 million. -Victor Ozols; 201-938-5394