Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Monsanto Co. -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (844)	1/7/1999 8:39:00 PM
From: jopawa	Respond to of 2539

Thursday January 7, 6:00 pm Eastern Time Pioneer posts wider-than-expected Q1 loss DES MOINES, Iowa, Jan 7 (Reuters) - Leading U.S. seed maker Pioneer Hi-Bred International Inc. said Thursday it lost $74.8 million, or $0.31 a share, in its fiscal first quarter, a sharper loss than analysts had expected, as it spent more money on research and development. Pioneer said its loss in its first quarter ended November 30 exceeded last year's first quarter loss of $51.0 million, or $0.24 a share. Sales slipped to $75.6 million from $79.4 million a year ago. Analysts had expected Pioneer to lose $0.23 a share, according to First Call, which tracks such estimates. Pioneer's stock was down 1-5/16 at 28-1/2. Because of the seasonality of the seed business, first-quarter losses are typical for Pioneer. The company makes the bulk of its profit in the fiscal third quarter ending May 31, when most farmers buy corn and soybean seeds for spring planting. First-quarter sales generally represent less than 5 percent of Pioneer's annual sales. ''Operating results in the first quarter of fiscal 1999 were affected by lower sales of wheat in North America,'' Pioneer said. ''First quarter results were also affected by planned increases in investments in product development, in genomics research and in other targeted programs.'' Pioneer said it expects strong sales of corn and soybean seeds this spring as farmers take advantage of pricing and financing offers. Pioneer said in September it would not raise seed prices in 1999. In October it said it would offer discounts and financing deals to farmers after a year of low commodity prices slashed farm income. The company said it had received ''a very positive response'' to its pricing and financing offers. ''Farmers want to do business with suppliers like Pioneer that are willing to step up and work with them through these challenging economic conditions,'' Charles Johnson, chairman, president and chief executive officer, said in a statement. ''This program, along with high returns per acre from our strong product performance, will be key in our effort to gain share in the North American market in 1999,'' he said. Last year, Pioneer lost some market share to rival DeKalb Genetics Corp., which was acquired by Monsanto Co. (NYSE:MTC - news). Analysts have said DeKalb aggressively discounted its seeds last year in a bid to raise its market share.

To: Anthony Wong who wrote (844)	1/7/1999 8:40:00 PM
From: jopawa	Read Replies (1) \| Respond to of 2539

Thursday January 7, 7:28 pm Eastern Time Low Celebrex cost seen curbing price of Merck drug By Ransdell Pierson NEW YORK, Jan 7 (Reuters) - A lower-than-expected price for Monsanto Co.'s (NYSE:MTC - news) new arthritis drug Celebrex will crimp the future price of Vioxx, Merck & Co. Inc.'s (NYSE:MRK - news) rival potential blockbuster now awaiting U.S. approval, analysts said. The two drugs are the first members of a promising new class of medicines designed to treat pain and arthritis without causing serious side effects commonly seen in current non-steroidal anti-inflammatory drugs (NSAIDs) such as aspirin and ibuprofen. Celebrex and Vioxx block the enzyme cyclooxygenase, or Cox-2, which has been linked to inflammation. NSAIDs also work by inhibiting Cox-2. But they also block Cox-1, a related enzyme that protects the stomach lining -- thereby causing ulcers and gastrointestinal bleeding that lead to thousands of annual deaths in the United States. Monsanto's drug was approved by the U.S. Food and Drug Administration on December 31 for treatment of osteoarthritis and rheumatoid arthritis. Monsanto said Celebrex would have an average wholesale price of $2.42 a day -- far below prices some analysts had forecast. Merck in November asked the FDA for permission to market Vioxx for treatment of osteoarthritis and relief of pain. Merck spokesperson Rebecca Higbee told Reuters her company has not yet decided how it would price Vioxx if the drug passed FDA muster. But analysts said even if Vioxx proved safer or more effective than Celebrex, Merck would likely have to keep its eventual price in line with that of the rival Monsanto product. ''I had expected Celebrex and Vioxx to both be priced at up to $4.00 a day, and some people had predicted up to $5,'' said ABN-AMRO drug analyst James Keeney. ''Now, it looks like the wholesale price of both drugs will be in the $2.50 range.'' Keeney said Monsanto felt compelled to price its drug only at parity with popular prescription NSAIDs such as naproxen because the FDA is not yet convinced Celebrex has milder side effects than NSAIDs, although clinical trials suggest that is the case. Neil Sweig, an analyst for Southeast Research Partners, predicted Merck would set a wholesale price for Vioxx of ''no higher than $2.75 per day,'' about 20 percent lower than the figure he had forecast before Monsanto set its Celebrex price. Sweig said he had trimmed his 1999 Celebrex sales estimate by about $100 million, to between $300 million and $400 million, because of its disappointing price. Likewise, Sweig said he was cutting his 1999 sales forecast for Vioxx by $50 million to about $200 million on the assumption that Merck would price Vioxx to match or only slightly exceed the cost of Celebrex. ''Merck will not undercut the price of Celebrex, however, because they consider Vioxx the superior drug,'' Sweig added. EVEREN Securities analyst Jeffrey Kraws said Merck might be able to prove to the FDA what Celebrex has so far failed to do -- that its drug is safer than NSAIDs. ''In that case, I would anticipate that Vioxx could be priced higher than Celebrex. On the other hand, Merck could decide instead to offer a competitive price in order to increase Vioxx market share,'' Kraws said. Madison Securities analyst Sharon Doering said both drugs ''will achieve huge sales. But the cost of Celebrex will definitely put pressure on Vioxx.''