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Biotech / Medical : wla(warner lambert) -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (465)	1/25/1999 2:30:00 PM
From: Greg Jenkins	Read Replies (1) \| Respond to of 942

The following is from Individual Investor online website. www.iionline.com Warner Lambert Reports Fourth Quarter In Line With Expectations (1/25) Individual Investor Online Analysis Tell us what you think in WLA's Board. Warner Lambert released fourth quarter earnings today in line with analyst's expectations. The company earned $0.40 per share on sales of $2.9 billion. This compares with $0.28 per share in earnings on sales of $2.3 billion for the fourth quarter in 1997. For the year worldwide sales increased 25% to $10.2 billion compared with $8.2 billion in FY 1997. Earnings for the year were $1.48 per share, up from $1.04 in FY 1997. Driving the growth in revenues and earnings was the pharmaceutical business, which boosted sales 55% from $3.6 billion in 1997 to $5.6 billion in FY 1998. Sales of Lipitor (a cholesterol-lowering agent) rose 73% to $704.9 million. Rezulin, the controversial product for Type II diabetes also performed as expected. In FY 1998 sales of Rezulin climbed 78% to $748 million in sales, and are expected to break the $1 billion mark in 1999. Consumer health care sales increased 1% to $2.7 billion in revenues. Listerine, Schick and Benadryl are key consumer brands in this division. In the confectionery segment, worldwide sales increased 1% to sales of $1.9 billion. The stalwart products in this segment were Trident gum, Dentyne gum, and Certs. Both Warburg Dillon Read and Merrill Lynch issued reports in January reiterating their "buy" and "long-term buy" recommendations respectively. Contrary to public opinion, the analyst community appears very positive about the fact that the FDA Advisory Committee will review Rezulin in March. The theory is that this meeting will deem the Type II diabetes product safe and effective, giving a clean bill of health, and removing the cloud of doubt surrounding its tendency for increased rates of toxicity in a patients liver. This review came about due to reports that up to 33 patients have died after taking the Rezulin. To date however, there has been no conclusive evidence that these deaths can be blamed on the product. And, it should be noted that the FDA was already aware of the potential for toxicity in the liver. They approved it for the very reason that its existence did more good for patients suffering from the effects of diabetes than bad. Therefore, we do not foresee any recall of Rezulin, despite what the press might imply. Both management and the analyst community appear upbeat about the company's prospects of growing earnings by 30% in FY 1999. For the record estimates have the company earnings between $1.94 and $2.00 per share, on increased revenues of both Lipitor and Rezulin. In the short-term, the stock will be under pressure as the result of uncertainty regarding Rezulin, and the meeting of the Advisory Committee in March. We would advise investors to take advantage of any weakness in the company's shares, as it appears that Warner Lambert will rank among the fastest growing public companies in the pharmaceutical industry in 1999. Analyst: Glenn S. Curtis Updated with WLA trading at $68.06 per share Recommended 11/16/98 at $73.63