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

To: BigKNY3 who wrote (6818)	1/26/1999 6:17:00 PM
From: BigKNY3	Read Replies (2) \| Respond to of 9523

Monsanto Drug Seen as Blockbuster on Early Sales St. Louis, Jan. 26 (Bloomberg) -- Monsanto Co.'s new arthritis drug Celebrex could have one of the most successful introductions ever in the history of the U.S. drug industry, according to NDC Health Information Services. The first of a new class of painkillers that appear to have fewer side effects than existing drugs, Celebrex had 1,047 prescriptions on Jan. 19, its first official day on the market, NDC said. Three days later, Celebrex had 3,411 prescriptions. While the numbers only reflect a few days of prescription data, they suggest the drug is off to a very strong start, analysts said. That's key for Monsanto, which is relying on Celebrex to help tide it over as it integrates the seed and technology companies it has acquired to compete in the emerging market for genetically improved crops. ''They really need the resources and cash flow, and Celebrex is what is giving them the fuel to build up in the future,'' said Sergio Traversa, an analyst with Mehta Partners. Shares of St. Louis-based Monsanto rose 3 13/16 to close at 44 7/8. Over the past two years, Monsanto has spent about $6 billion on seed companies such as DeKalb Genetics Corp. and $2 billion on biotechnology companies such as Calgene Inc. Seed companies are key distribution vehicles for genetic technology that confers characteristics on plants such as insect-resistance. Monsanto had wanted the cost of integrating its acquisitions to be borne by American Home Products Corp., a drug company with which Monsanto planned to merge last year. When that fell through, the cash-strapped company turned to the capital markets for funds. Asset Sales The company expects to raise $1 billion from the sale of assets such as its Stoneville Pedigreed Seed Co. cotton-seed company and its algins business. Since November it has raised $1 billion in stock, $500 million in units convertible to stock, and $2.5 billion in long-term debt. Monsanto is cutting about 1,700 jobs across the company, higher than its original prediction of 1,000. The initial report on prescriptions makes Celebrex a rival to Warner-Lambert Co.'s cholesterol-reducing drug Lipitor, which had the best introduction of any drug in the U.S. until Pfizer Inc.'s anti-impotence pill Viagra reached the market last year. Introduced in 1997, Lipitor had 1,058 prescriptions the first day and 1,084 three week days later, NDC said. ''The numbers are incredibly strong,'' said Hemant Shah, an independent analyst. Pfizer, considered one of the world's best marketers for pharmaceuticals, helps Warner-Lambert sell Lipitor and Monsanto sell Celebrex. Shares of New York-based Pfizer rose 2 5/8 to 120 1/8. Free Samples The company crafted a plan under which doctors will soon be giving free samples of Celebrex to patients. That may affect weekly prescription numbers in the near term, said Richard Stover, an analyst with Arnhold & S. Bleichroeder who rates Monsanto ''attractive.'' Stover said investors shouldn't draw too much from the early numbers. ''At the end of February, early March is where you're going to see the real numbers hit,'' he said. Still, ''There's no question that this is going to be a very sizable drug.'' Celebrex and Vioxx, a drug developed by Merck & Co., are part of a class of drugs known as Cox-2 inhibitors, designed to offer the same benefits as current painkillers with fewer side effects such as bleeding and ulcers for people who take pain medication for chronic conditions such as arthritis. Monsanto's Searle drug unit won U.S. approval on Dec. 31 to sell Celebrex for treating osteoarthritis and rheumatoid arthritis, putting it months ahead of Merck, the world's biggest drugmaker, in introducing the first of the new drugs. Analysts have said the Cox-2 drugs can achieve annual sales of as much as $5 billion. The Cox-2 drugs will compete with painkillers sold by a range of companies, including SmithKline Beecham Plc, American Home Products Corp. and Roche Holding AG.