Those who have been reading my posts about Pfizer Inc. (NYSE:PFE) already know my doubts about Prizer's new blockbuster drugs. These are the drugs that should replace the ones going off patent and into the hands of the generics companies. As I have said about the most important drug, torcetrapib, which had a high blood pressure side effect, it fixes one thing and damages another.
Yesterday, Pfizer pulled the drug [subscription required] as too many people were dying in the clinical trials. In a test with 15,000 patients, 81 of those taking torcetrapib and Lipitor died while only 52 people taking Lipitor alone passed away. With Lipitor going off patent in 2010, the new drug was the company's big bet to replace the $12 billion a year in annual revenue.
Watch the stock drop off the edge of the earth on today and stay down for some time. It already fell nearly 15 % in pre-market trading.
By the way, why do companies always release bad news on weekends?
Douglas McIntyre is a partner at 24/7 Wall St.
GM Kills $10 Million Facebook Ad Campaign Because It Didn't Work
JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'


Reader Comments (Page 1 of 1)
12-04-2006 @ 10:45AM
Leonard Sogoloff said...
Mr McIntyre knows nothing about clinical research. Many investigational studies are stopped for side effects including death. How many of the 29 deaths on torcetrapib alone can be attributed to concurrent diseases in these patients? This "death drug" article is fit for a tabloid paper. I spent 35 years in clinical research and have never seen such trash. When Merck pulled Vioxx the stock took a dive and is now almost twice the price it dropped to. My advice is to keep your Pfizer stock.
12-04-2006 @ 11:13AM
douglas mcintyre said...
I suppose that is why they pulled the drug and their stock is dropping.
Doug McIntyre
12-04-2006 @ 11:16AM
Dr. Evan S. Levine said...
As I wrote in my book, What Your Doctor Won't (or Can't) Tell You, PFE is a great marketing company. The world would be just fine without PFE- most of their drugs are either copy-cats or drugs from companies PFE bought (Liptor is an example). So, who gives a crap if PFE is gone? Only the investors
12-04-2006 @ 12:13PM
JR Ewing said...
Have to look into the study design and profile of the dead patients. PFE pulled the drug because they had no choice. The noise will subside, cooler heads will prevail and pfe will go back to the drawing board, buy some science or construct a new study design with better inclusion criteria. IMO it is dead money for a while. May get a nice bump in dividend, but the revenue side will keep the stock price from upward movement. good luck
12-04-2006 @ 12:12PM
AJ Rhinoturd said...
Oath of "Do no harm", requires drug to be pulled. PFE stock will come back, won't be tomorrow. Dividend is attractive.
12-04-2006 @ 12:18PM
Bar McDonough said...
pfe took the high road and made a decision to stop trials that could have bite them in the ass down the road. I don't think that this will hurt them as much as the street analyists predict (these people are manipulating our investments anyway).
They have in the pipeline a bunch of new drugs and will now look at cutting more costs for the future.
I worked for Warner Lambert for 18 years and have some pfe stock and I am holding my position, because in the long run they will come out ahead.
I say we will be winners, but it may take a few more years. We have to put up with some downturn for a while, but they are the largest drug company in the world, and are not going out of business tomorrow there will be some major aquistions coming soon now that the news has gone south with this one particular drug............Right?
Bar
12-05-2006 @ 8:35PM
MIRIAM BELL said...
LIPATOR HAS BEEN A BIG HELP IN CONROLLING MY CHOLESTEROL. I HAVE BEEN TAKING IT FOR MANY YEARS.AND HAVE NEVER HAD ANY SIDE EFFECTS. PLEASE COMMENT.
12-05-2006 @ 3:01PM
STEVE DiPASQUALE said...
PFIZER IS A GREAT COMPANY AND ALWAYS HAS BEEN. NOBODY MENTIONED THE $80MILLION DOLLARS AND 15 YEARS OF R/D THAT HAS GONE INTO THIS PRODUCT SO FAR. PEOPLE WONDER WHY DRUGE COST SO MUCH. THIS IS A PERFICT EXAMPLE OF WHY.THERE WILL HAVE TO BE SOME CHANGES AT THE COMPANY TO OFFSET THIS KIND OF A HIT BUT GREAT COMPANIES WITH GREAT PRODUCTS AND GREAT PEOPLE WILL ALWAYS DO THE RIGHT THING AND WILL GET THE RESPECT OF THE INDUSTRY AND THE PEOPLE THAT THEY ARE SERVING AND THAT MEANS ALL OF US.