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

To: Ron Flanigan who wrote (6018)	10/14/1998 2:39:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 9523

All, a very positive Bloomberg report (despite the heading). Read on... Pfizer Falls on Lower '98 EPS Estimate, 3rd-Qtr Disappointment Bloomberg News October 14, 1998, 1:17 p.m. ET Pfizer Falls on Lower '98 EPS Estimate, 3rd-Qtr Disappointment New York, Oct. 14 (Bloomberg) -- Pfizer Inc. fell as much as 7.5 percent as lower-than-expected sales of the impotence pill Viagra and increased spending for a new drug led to disappointing third quarter profit and a reduced estimate for 1998 earnings. Pfizer fell 1 1/4 to 94 1/2 in midday trading on the New York Stock Exchange. It earlier touched a low of 88 1/2. Viagra had second-quarter sales of $141 million, below the $150 million to $200 million some analysts had expected. Third-quarter profit from operations rose to $667 million, or 51 cents a share, from $579 million, or 45 cents, a year earlier, less than the 57 cents analysts expected. Pfizer didn't include profit from a business it is selling. Adding that would make profit from operations of about 52 or 53 cents a share, still short of the average estimate, analysts said. ''It should not be a huge surprise. Pfizer is not focused on guiding (analysts),'' said Michael Yellen, portfolio manager of AIM Global Health Care Fund, which holds about 300,000 Pfizer shares. ''It's focused on the future.'' Pfizer yesterday lowered its expectations for 1998 earnings to $1.95 to $2 a share, excluding gains and charges, after the sales of its medical-device businesses. Pfizer earlier had said it was comfortable with a range of $2.05 to $2.10. Still, Pfizer's long-term prospects outweigh the third- quarter disappointment, said Seiden, who has a ''buy'' on the company. In composite trading, Pfizer rose 6 13/16 to 94 5/16 in midday trading, after falling 5 1/2 to 87 1/2 yesterday. The disappointment in the third quarter stems more from Pfizer preparing for the introduction of new potential blockbuster than from the lower-than-expected Viagra sales, said Carl Seiden, an analyst with J.P. Morgan. Seiden had expected about $170 million in third-quarter Viagra sales. Prepared for Celebra Launch New York-based Pfizer is hiring new salespeople and spending to prepare to introduce Monsanto Co.'s Celebra, an arthritis drug seen as the successor to Viagra. Monsanto, which chose Pfizer as a marketing partner, could have the industry's next blockbuster with Celebra. The drug appears to reduce pain and inflammation without irritating the lining of the stomach. For Pfizer, Celebra could be its third blockbuster in three years. In 1997, Pfizer helped Warner-Lambert Co. introduce its cholesterol-reducer Lipitor, which topped $1 billion in sales in its first 12 months on the market. Lipitor was considered the U.S. drug industry's best ever introduction until Viagra sales began this year. In the second quarter, its first three months on the market, Viagra had $411 million in sales. Pfizer also is working on other new drugs, on its own and in collaborations, including an insulin diabetics could inhale instead of inject. Nothing's Changed ''When you talk about sustained growth of the company, nothing has changed at all,'' said AIM's Yellen. ''They just don't really manage their numbers that well.'' Pfizer's third-quarter sales rose to $3.33 billion from $2.75 billion a year earlier. Its high blood pressure drug Norvasc rose 17 percent to $671 million. Sales of the antidepressant Zoloft rose 24 percent to $489 million. In the third quarter, a gain of $867 million and charges of $152 million made net income $1.4 billion. The charges include a $140 million, pre-tax, payment to Monsanto for the licensing agreement for Celebra. --Kerry Dooley in the Princeton newsroom (609) 279-4016 /mfr