Pfizer Makes a Deal, Wyeth and Elan Release Alzheimer's Drug Results

Last week, Pfizer (PFE) made a major announcement regarding the world's top-selling statin, Lipitor. Pfizer struck a deal with the Indian generic drugmaker Ranbaxy to ward off the threat of generic competition for Lipitor until late 2011. I know there were a lot of market pressures last week, but how frustrating must it have been for Pfizer Chairman and CEO Jeff Kindler and his team to negotiate that agreement only to see the stock go up a whole nickel that day on the news? Five cents.

The market reacted much more positively last week to the mid-stage test results Wyeth (WYE) and Elan (ELN) released on their Alzheimer's drug bapineuzumab. I'm never gonna call it that on air; many analysts have taken to calling it "Bap" or "Bappy" for short. I'll have an opportunity to talk about it toward the end of next month at the International Conference on Alzheimer's Disease  where researchers will be presenting the detailed data.

ELN is traded at a new high Monday morning, after Goldman Sachs added the stock to its "Conviction Buy" list.

Next up on the beat is the Food and Drug Administration decision on Eli Lilly's (LLY) bloodthinner Effient. It's expected to come this Thursday. If the agency approves the drug, that could have a negative effect on Sanofi-Aventis (SNY) and Bristol-Myers Squibb (BMY), which market the top-selling bloodthinner Plavix.

And one more thing. While I was out, billionaire activist investor Carl Icahn entered the blogosphere.  Welcome, Carl. I look forward to reading entries on his biotech forays. Meantime, we're still waiting for Biogen Idec (BIIB) to announce the actual tally from Icahn's failed proxy fight last week to put his people on the BIIB Board. Could it have been close? We should find out in a Securities and Exchange Commission filing within the next few weeks.

Comments

[Bluehorsesh...:]

Mike, I don't know if you read these comments but I want to thank you for the great work you do.

You also made me some money this year on ISIS. You popped up on CNBC back in April and mentioned that some company was investing in ISIS at $25 a share. You were emphatic that ISIS was going up huge that day on the news.

I jumped on the phone 1 second after you said that and picked up some ISIS. I sold ISIS 2 hours later and made some substancial bank.

I'm not rich or some big time trader. You helped me out a lot.

Once again, thanks for that and all the other good work you do.

2008 Jun 24 02:57 PM

[DRich:]

PFE going up a nickel is like Krakatoa erupting. This stock, hence company, has only managed to perfect achieving the well funded attainment of daily, weekly, yearly, decade long lows. Are they going for a Guinness world record? Saving some dying patent for another year no longer qualifies as successful business management. IMHO

2008 Jun 24 11:06 PM

[farouk:]

investors are dumping pfizer's shares whether the news is good or bad, i think they are over doing it

2008 Jun 25 04:08 AM