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

To: BigKNY3 who wrote (7406)	4/15/1999 11:15:00 PM
From: BigKNY3	Read Replies (1) \| Respond to of 9523

Pfizer hits Q1 mark, falls on weak Viagra sales By Ransdell Pierson NEW YORK, April 15 (Reuters) - Pfizer Inc. <PFE.N> said on Thursday that profits rose 18 percent in the first quarter, but its stock was pounded after the U.S. drugmaker reported slumping sales of its impotence drug Viagra. Shares of the New York-based Pfizer sank $14.25 to $130.375 on the New York Stock Exchange, also because of Wall Street disappointment over Pfizer's expectations for full-year profits. Earlier Thursday, Pfizer posted profits of $815 million, or 62 cents per diluted share in the first quarter, compared to $692 million, or 53 cents, a year ago. Pfizer's per-share results matched the consensus estimate of analysts polled by First Call Corp. The profit gains were fueled by strong sales of newer drugs such as antibiotic Trovan and popular co-promoted products including anti-cholesterol agent Lipitor and arthritis treatment Celebrex. Older key drugs such as Norvasc and Procardia XL, which both treat hypertension, helped boost global drug sales 33 percent to $3.64 billion. Viagra, launched in April 1998, had first-quarter 1999 sales of $193 million, down 18 percent from fourth quarter 1998 revenues of $236 million. "Pfizer's stock is getting punished today, and it basically comes down to Viagra. It's not doing as well as last year's initial hype suggested," said Mike Krensavage, an analyst for Brown Brothers Harriman & Co. Krensavage said he had been counting on Viagra to post first-quarter sales of $275 million. Viagra's introduction made front-page news globally, helping the blue diamond-shaped pill make history as the fastest-selling new drug ever. But sales peaked within two months and then plateaued as pent-up demand was met, and safety concerns arose over scores of deaths among users. "There was a lot of curiosity about Viagra among many men who apparently didn't need the drug after all, and in whose nightside tables the pills probably remain unused," Krensavage said. Still, he predicted the drug would achieve blockbuster sales of $1.3 billion this year. Pfizer said total revenues jumped 29 percent to $3.93 billion, with changes in foreign exchange rates adding 0.3 percent to sales growth -- a favorable turnaround from the 1998 quarter, when a stronger U.S. dollar trimmed global sales by 4.5 percent. "It was a great quarter for Pfizer," said Carl Seiden, a J.P. Morgan drug analyst, who added that total drug sales were better than he had forecast. Pfizer said it was comfortable with the "current range" of 1999 analyst earnings estimates from $2.40-$2.50 per diluted share, a gain of 20-25 percent over last year. The First Call consensus estimate had been $2.49. "So Pfizer is actually driving down earnings expectations to a lower range, another reason investors are expressing concern today," Krensavage said. Pfizer cautioned that second-quarter per-share earnings growth would be held to the single digits, with growth crimped by a 23 percent boost in research and development spending to $2.8 billion this year. Seiden theorized the biggest reason for today's selloff was not because of Viagra, but over disappointment with expected second-quarter earnings growth. "But in terms of the whole year of 1999, nothing has really changed," Seiden said, adding that the 20-25 cent earnings growth promised by Pfizer was within the ballpark of analyst hopes.

To: BigKNY3 who wrote (7406)	4/15/1999 11:19:00 PM
From: BigKNY3	Read Replies (2) \| Respond to of 9523

Pfizer's 1Q Profit Up 18%, But 2Q Outlook Drags Down Stk By Melanie Trottman 04/15/99 Dow Jones News Service NEW YORK (Dow Jones)--Pfizer Inc. (PFE) posted an 18% increase in net income on revenue growth of 29%, as sales of products like anti-impotence drug Viagra and hypertension drug Norvasc drove the gains. But shares of the drug-making giant fell 16, or 11.1%, as the company said it expects second-quarter earnings-per-share growth will only be in the single-digits. "Short-term, that's probably going do have the biggest impact on the stock," said Hambrecht & Quist analyst Corey Davis. Indeed, Pfizer's market capitalization lost $20 billion Thursday, and has gone down $27 billion since the stock's 52-week high of 150 1/8 on Monday. The decline is about equivalent to the entire market caps of other drug companies, like Pharmacia & UpJohn (PNU). Currently, Pfizer's own market capitalization is about $169 billion. Viagra, launched last April, had peak sales in last year's second quarter of $400 million after a highly successful launch. Pfizer noted in a statement Thursday that the large initial trade stocking and sales of the drug in that quarter will affect expected year-over-year growth. "It's a really tough comparison to match," Davis said. Viagra sales fell off in the third quarter of last year, but continue to contribute strongly to earnings. In this year's second quarter, sales of the drug will likely be between $200 million and $250 million said, HKS & Co. analyst Hemant Shah. That's an increase from worldwide first-quarter sales of $193 million - $149 million of which was in the U.S. The first-quarter sales were off from the $236 million in the previous quarter, but that quarter was helped by a number of international launches. Shah said he expects that, incrementally, sales overseas will fuel his $1 billion Viagra sales estimate for 1999. Other major products also added to Pfizer's first-quarter, double-digit earnings and sales growth. Norvasc, for example, is still selling "amazingly well" despite being on the market for several years, Davis said. Worldwide sales of the drug rose 24%, to $703 million, beating his expectation of $656 million. Zithromax, an antibiotic, had worldwide sales of $441 million, up 44% from a year-earlier. "There were no disappointments in any major product category," said Shah. In total, worldwide pharmaceutical sales were $3.64 billion, up 33% from a year earlier. Pfizer reported net income of $815 million, or 62 cents a diluted share, compared with $692 million, or 53 cents a diluted share. The year-ago quarter included a gain of $157 million, or 12 cents a share from discontinued operations. Revenue for the quarter was $3.93 billion, compared with $3.04 billion a year earlier. Pfizer said that despite the circumstances that will affect the second-quarter growth, it believes full-year 1999 growth prospects remain solid. The company said it is comfortable with the current range of the "majority of analysts"' estimates for diluted earnings per share of $2.40 to $2.50 for 1999. A survey of analysts conducted by First Call Corp. indicates the average estimate is at the high end of that range. The consensus estimate of the 30 analysts surveyed is $2.49 a share.