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

To: Anthony Wong who wrote (564)	3/1/1999 8:05:00 PM
From: keta	Respond to of 942

from www.techstock.com :::: Feb 26, 1999 Warner Lambert To get The Internet Financial Connection newsletter e-mailed to you for FREE, send an e-mail to ifc-request@mLists.net and only write "subscribe" in the body of the letter. Scott Schuppie of Grace Equity Management provides the following stock idea on Warner Lambert (WLA 67 1/4). Below is the write up. Warner Lambert essentially has three divisions; consumer healthcare (which makes Sudafed, Rolaids and Listerene), confectionery (Halls, Certs and Dentene) and the pharmaceutical area that develops and distributes drugs. "The bulk of Warners' profits come from their pharmaceutical division," says Scott Schuppie President of Grace Equity Management (which was up 64% in 98). "Warner is undergoing a change in management and I think they will eventually sell or spin-off their consumer healthcare and confectionery businesses. We would view that as a major positive." Warner recently announced that they would acquire Agouron for $2.1 billion in stock. Schuppie views this acquisition as positive because Agouron is one of the few biotech companies that are profitable. Their primary product is Viracept. "It is the number one protease inhibitor against HIV and will immediately make Warner the leader in that area and increase their bottom line," says Schuppie. He is looking for the stock to be in the $100 to $110 range by late 99' Schuppie notes that a dark cloud has been looming over Warner. One of their drugs, Rezulin, which is used in the treatment of Type II Diabetes, is being reviewed by the FDA. Of 1.4 million prescriptions for Rezulin, 33 people that were using the drug have died. Scott adds that when Eli Lilly introduced Prozac, there was a similar occurrence and a small number of people were badly effected by the drug. The FDA reviewed Prozac but did not call for any more clinical trials. He thinks that when the FDA reviews Rezulin they will not call for more clinical trials because only a small number of people were affected, relative to the people that use the drug. He estimates that Rezulin should generate revenues of $780 million in 99'. Warner currently has compounds in development for prostate cancer, arthritis, Alzheimer's, and the very promising new YMO87 for congestive heart failure. They are coming to market with a new drug called Celexa which should add another nice revenue stream to the company. Lipitor, Warner's blockbuster cholesterol drug will remain the main driver for the company. Lipitor had $2.2 billion in revenues in 98' and Schuppie predicts that number to grow to around $3 billion in 99'. He rates the stock a buy and estimates they should earn $1.96 in 99' and $2.39 in 00'. He is looking for the stock to be in the $100 to $110 range by late 99', early 00'.