Valdecoxib: A new COX-2 inhibitor arthritis med

[Guest guest]

Pfizer Sees 25 Percent Earnings Growth: " ... Pfizer said it would also

seek approval for Valdecoxib, a second-generation member of the COX-2

inhibitor family of drugs for treatment of pain and arthritis... "

Monday December 11 5:32 PM ET

http://dailynews./h/nm/20001211/bs/pfizer_outlook_dc_4.html

NEW YORK (Reuters) - Pfizer Inc.(NYSE:PFE - news) forecast on Monday

that its earnings would keep growing faster than other pharmaceutical

companies, with new diabetes, epilepsy and arthritis drugs soon

bolstering a lineup that already includes anti-impotence drug Viagra and

cholesterol fighter Lipitor.

Officials of the world's largest drug company told industry analysts in

New York the firm expects to spend an industry-topping $5 billion next

year on research and development, up from $4.5 billion projected for

2000. In recent years, R & D budgets for large drug makers have risen 10

to 15 percent a year.

``We have outstanding prospects for continuing growth,'' said Henry

McKinnell, Pfizer president and chief operating officer. ''Our momentum

is based on four drivers: a broad base of key products, a diverse new

product pipeline, continuing profit margin expansion, and investment for

future growth.'' The New York-based company reiterated it expects annual

earnings growth of 25 percent or more through 2002, a rate that would

outpace all U.S. rivals.

On a negative note, however, Pfizer disclosed that U.S. regulators have

asked it to conduct an additional safety study of Relpax, an

experimental migraine drug now awaiting approval from the U.S. Food and

Drug Administration (FDA). Analysts said after the meeting that the new

study could delay by six months or longer the launch of Relpax, which

could generate annual sales of $500 million or more if approved.

The FDA has sought ``an additional short-term cardiovascular physiology

study'' of Relpax, said Niblack, a Pfizer executive. Pfizer, with

annual global revenue of about $30 billion, said it remains comfortable

with earnings per share estimates of $1.01 for 2000, $1.27 or better for

2001, and $1.56 or better for 2002, before unusual items.

Wall Street analysts polled by First Call/Thomson Financial expect the

firm to earn $0.27 per share in the fourth quarter and $1.02 for the

full year 2000. Analysts foresee profits of $1.30 per share for 2001 and

$1.59 for 2002.

Pfizer warned it expects the strength of the dollar to cut growth of its

fourth-quarter revenues by more than $250 million, dwarfing the currency

drag seen in previous quarters this year. Shares of Pfizer (PFE.N) held

steady in afternoon activity on the New York Stock Exchange, closing up

1/8 at $43-5/8. The stock is up about 38 percent for the year and just

below a 52-week high of $49-1/4.

``There were no great surprises at the meeting,'' said Banc of America

Securities analyst Len Yaffe. Nonetheless, he said Pfizer's outlook and

plans for launching new drugs made him more comfortable about his strong

buy rating on Pfizer.

Pfizer said it plans to seek U.S. marketing approval in the next year on

three new drugs, including treatments for diabetes, epilepsy and

arthritis. ``The company indicated at least four drugs could be approved

in the next 24 months, each of which could pull in revenue of $300

million to $1 billion a year,'' Yaffe said. They include two drugs

already awaiting market approval, Zeldox for schizophrenia and a

decongestant form of its already marketed allergy drug Zyrtec.

Among the Pfizer drugs on deck for FDA scrutiny in the next year is

inhaled insulin, which would allow diabetes patients to drop their

regimen of daily injections and instead inhale the hormone that controls

blood sugar levels.

The company also will seek approval for its Pregabalin treatment for

neuropathic pain and epilepsy. It is a successor to Pfizer's hot-selling

anti-convulsant Neurontin, which is expected to lose its U.S. market

exclusivity in another two or three years.

Pfizer said it would also seek approval for Valdecoxib, a

second-generation member of the COX-2 inhibitor family of drugs for

treatment of pain and arthritis. Pfizer is co-developing it with

Pharmacia. The two companies now co-market Celebrex, the first COX-2

inhibitor, which was launched in early 1999 and is expected to rake in

sales of more than $2.5 billion this year.

Pfizer, which became the world's largest drug maker this year when it

acquired Warner-Lambert Co. and gained total control of Lipitor, said it

is on target to achieve cost savings of $400 million in 2000, twice the

initially targeted amount. It expects cumulative cost-saving from the

merger of about $1.2 billion in 2001 and more than $1.6 billion in 2002.

Katen, Pfizer's president of U.S. pharmaceuticals, said that in

coming years the company expects to widen the prescription of Lipitor to

include the prevention of strokes and for patients with peripheral

artery disease.

Although some analysts expect annual sales of Lipitor to skyrocket to as

much as $10 billion by 2004, AstraZeneca (AZN.ST) is expected to launch

ZD4522, an even more potent cholesterol fighter, by 2002. Pfizer also

forecast that sales of anti-impotence drug Viagra will grow 31 percent

in 2000, and revenues from the anticonvulsant Neurontin will increase 46

percent.