Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Pfizer and Other Drug Makers Report Higher Profits [New York Times]
Summary: Pharmaceutical companies Pfizer, Eli Lilly, Novartis and Wyeth all reported profit gains yesterday, driven in part by a rise in prescriptions written in the U.S. as a result of the new Medicare Part D drug insurance program. Pfizer did caution, however, that it expects flat revenues for the next two years as patents expire on Zoloft, a popular antidepressant, and Norvasc, a high blood pressure drug. Pfizer is also delaying distribution of Exubera, its highly touted, FDA-approved inhaled insulin, until January over concerns about its effect on the lungs. Still, Pfizer expects EPS to grow 7-9% in both 2007 and 2008 through cost-cutting and share buybacks. Novartis AG reported a 12% Q3 net profit rise and Eli Lilly a 10% jump.
Related links: With Pfizer Bigger is Better • Merck Wins FDA Approval for New Type-2 Diabetes Drug • Drug Companies Report Solid 3Q Results [Newsday]
Potentially impacted stocks and ETFs: Pfizer Inc. (NYSE:PFE), Merck & Co. (NYSE:MRK), Eli Lilly & Co. (NYSE:LLY), Novartis AG (NYSE:NVS), Wyeth (WYE) • First Trust Morningstar Dividend Leaders Index Fund (NYSEARCA:FDL), iShares Dow Jones U.S. Pharmaceuticals Index Fund (NYSEARCA:IHE), WisdomTree Trust WisdomTree HighYielding Equity (NYSEARCA:DHS)
Seeking Alpha is not affiliated with New York Times.