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Pfizer Inc. Message Board

  • performer_one performer_one Nov 15, 2005 3:43 PM Flag

    Pfizer Share Sell-Off Seen As 'Overdone

    Bear Stearns maintained an "outperform" rating on Pfizer (nyse: PFE - news - people ) after the drug giant announced disappointing clinical study data for cholesterol drug Lipitor.

    The study, known as IDEAL, monitored almost 9,000 patients and compared the top dose of Lipitor with lower doses of Zocor, a similar drug marketed by Merck (nyse: MRK - news - people ).

    The results showed Lipitor patients had an 11% percent reduction in heart attacks compared to Zocor patients but did not reach statistical significance. The findings were presented today at the annual meeting of the American Heart Association.

    Bear Stearns analyst John Boris said selling pressure was "overdone" for Pfizer shares. The research analyst maintained the 2006 earnings-per-share estimate of $2.06 for Pfizer.

    "We believe Lipitor's vast body of clinical data coupled with IDEAL narrowly missing statistical significance does not support generic Zocor use over Lipitor," Boris wrote in a note to clients. "We expect Pfizer's multiple (29% discount to peers) to expand as investors regain confidence in Pfizer's ability to return to EPS growth in 2006 and 2007 from a combination of more than $4 billion of cost cuts realized by 2008 coupled with the unfolding of its new product cycle."

    Boris maintained a target price of $30 on the stock and said the next catalyst for Pfizer is a ruling in the U.S. patent trial for Lipitor, expected before the end of the year.


    Link: http://wtw.forbes.com/markets/2005/11/15/pfizer-merck-lipitor-1115markets16.html
    ?partner=yahootix

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    • Thanks for this post. In fact, only Wall Street has the authority to interprent the result,.., "We believe Lipitor's vast body of clinical data coupled with IDEAL narrowly missing statistical significance does not support generic Zocor use over Lipitor," this is the interpretation.

      • 1 Reply to wy10002001
      • "We believe Lipitor's vast body of clinical data coupled with IDEAL narrowly missing statistical significance does not support generic Zocor use over Lipitor,"

        This is true. But investors go on expectations, and the expectation was the the IDEAL study would provide additional ammunition for Pfizer to counter pressure by generic Zocor. This additional ammunition disappeared, so the Lipitor task is now harder than anticipated and the stock has been punished as a result.

        As I said earlier, the result is disappointing and mildly negative, but not disasterous by any means.

        A 1-2% drop in the stock price is a logical reaction to the disappointment.

 
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