Pfizer is going down Monday...

[PMitc34947]

"NEW YORK (Reuters) - With the sudden failure of torcetrapib, Pfizer Inc.'s most important experimental product, financial analysts predict shares of the world's largest drugmaker could fall from 5 to 25 percent on Monday and that Pfizer will need to buy other products to fill the void."

Read the article here...

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyID=2006-12-03T215713Z_01_N02413159_RTRUKOC_0_US-PFIZER-TORCETRAPIB.xml&WTmodLoc=NewsHome-C3-businessNews-2

I think Monday will be a buy day for me...

[metalheadrr3]

30 Billion .... poof .... gone.

[deerhunter]

down 4.00 already... damn.

[metalheadrr3]

A bounce back to 25.50 - 26 sounds like a reasonable short range target. Given time could fill the whole gap potentially. Could also drop back down to the 20 range as well.

[Albert0373]

Is this one gonna start filling the gap soon? Or will it continue to tumble in the coming week, I'm really considering this one. Any words?

[PMitc34947]

Here are two articles from the New London Day, the local paper in one of Pfizer’s major R & D facilities here in Connecticut. The first article provides some insight into the company’s possible stock performance in the near term.

http://www.theday.com/re.aspx?re=1c07028b-9d50-47b6-b2c9-9cd9b8709b0c

http://www.theday.com/re.aspx?re=84c11ea6-66a5-4d64-b71a-1906aeb9b494

PFE stock is down 12% at 1 PM.

[Albert0373]

edit: nvm sorry

[Albert0373]

Interesting news:

Shares of Pfizer Inc. were smacked Monday on the news that it was halting all clinical development on the successor to its best-selling cholesterol lowering drug, Lipitor, over safety concerns.

The drug, torcetrapib/atorvastatin, known as torcetrapib was pulled after independent safety monitors determined there was an unexpectedly high death rate during a key clinical trial. Atorvastatin is the generic name for Lipitor.

The main problem for Pfizer is that the drug was being developed as a possible successor to Lipitor, which had been the company's revenue driver. Lipitor is the world's best selling branded prescription drug, with 2005 sales a whopping $12.9 billion. This amounts to about 25% of Pfizer's total sales.

Pfizer had been hoping the new drug would continue the Lipitor bonanza. The problem: Lipitor loses its patent protection in 2010, which is right around the corner. On top of this negative news, Pfizer's sales have recently been hit on other important drugs’ patent expirations, Zithromax and Zoloft. We are now talking about a triple whammy!

As a result of all this, Pfizer has announced that it doesn't see revenue growing until 2009. This is something Wall Street does not want to see — it hates negative surprises. Employees are also in for some bad news as Pfizer all but telegraphed accelerating layoffs as part of its ongoing restructuring. Just last week, Pfizer announced that they were going to cut 20% of their sales force.

Most analysts are not worried about the next year or two; they are now worried for down the road. This drug was expected to be important because it was going to cover the massive hole left by Lipitor's patent expiration. Earnings are now in question going further out.

Pfizer is affirming its recent forecasts but could also have another problem near-term called credibility. Pfizer's timing, to say the least, is horrendous. Just a few short days ago, they held an analyst meeting telling everyone how well things were going with the new drug in trials. Just a couple of days later, they throw this bomb to Wall Street.

If there is anything Wall Street does not like, it is not being able to depend on a company's words and then to be buried with those words just a few days later. Many are not sure if Wall Street is going to forgive Pfizer so quickly, and many believe it will cast a skeptical eye the next time Pfizer officials open their mouths again.

[metalheadrr3]

This was looking promising early in the morning. Was encroaching on the large gap down, but just recently turned south 25.30 down to 24.90. I'd like to see it reach $26 at least.

[ub3rn00ber]

So you think it will go lower before it goes higher?

[hondadriver4life]

this looks like it is going to be a good buy if it stays where it is right now and then starts going up... no tthat im pointing out the obvious now. sorry im still new to this game.....

[PMitc34947]

Pfizer has had trouble in spades recently developing new products. They have resorted to developing and marketing drugs with other companies that are certainly successful, but on their own they have had trouble developing the next Viagra and Lipitor mega drugs in their pipeline which is the metric to follow when looking at pharma stocks.

When they can develop these drugs again on their own will be the day when the stock starts ramping up and that sort of growth looks a long way off. Now the Lipitor patent will expire in the next few years, so it might be wise to look elsewhere.

Alternately, the dividend at Pfizer has always been very attractive so PFE might be of interest to you as a longterm investment with a good dividend.
Best of luck here.