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

To: BigKNY3 who wrote (7470)	4/20/1999 8:47:00 PM
From: BigKNY3	Read Replies (2) \| Respond to of 9523

AG Edwards' Nover:Drug Stks Undervalued, Fundamentals Sound 04/20/1999 Dow Jones News Service NEW YORK (Dow Jones)--Pharmaceutical stocks are currently undervalued because Wall Street tends to overreact to short term negative news surrounding the sector, said Kenneth Nover, drug analyst for A.G. Edwards & Sons Inc. "The macro trend of the elderly and the increased usage of innovative drugs bodes very well for the sector long term," Nover said in a CNBC interview Tuesday. "We think investors should overweight this group." Warner-Lambert Co. (WL), one of Nover's picks, is the victim of such short term bad news. In late March, the company reported that its diabetes drug, Rezulin, has liver side-effects when used alone. Nonetheless, Nover likes Warner Lambert because "it has taken itself from the middle tier to the top tier." He praised the company's research efforts and the products in its pipeline. Other companies in the sector Nover strongly recommends are Schering-Plough Corp. (SGP), Pfizer Inc. (PFE) and American Home Products Corp. (AHP). "So far we have had no negative surprises for what the year looks like, and the fundamentals remain excellent for this group," Nover said, referring to his favorite companies in the sector. Nover estimates earnings per share growth of 17% for the group this year, a figure that compares favorably with the overall market's 7% to 8% growth, Nover said. Of American Home Products, Nover said that although the company's earnings won't rise this year, he expects the company to report 15% higher earnings in the next two years. American Home Products will be aided by the release of some "underrated" products currently in the pipeline and slated to hit the market later in the year, he said.