Do More With Reuters
Partner Services

ANALYSIS-Wyeth may be dead money after Alzheimer's setback

Wed Jul 30, 2008 11:44pm IST
 
Email | Print | | Single Page
[-] Text [+]

By Lewis Krauskopf

NEW YORK, July 30 (Reuters) - Wyeth WYE.N shares may be slow to recover after crashing near a four-year low on Wednesday following disappointing data for its experimental Alzheimer's disease drug.

With enthusiasm now muted for the U.S. drugmaker's most important experimental product -- the Alzheimer's medicine bapineuzumab -- investors may turn their attention to Wyeth's daunting growth outlook, as the company grapples with patent expirations plaguing the entire sector.

Generic competition to top medicines through 2010 threatens up to 40 percent of Wyeth's earnings, according to Deutsche Bank.

Although Wyeth's potential as a takeover target could buoy the stock, analysts see few events in the near future that would excite investors.

"I think it's kind of at best probably dead money just because the earnings profile through the end of the decade is not very interesting," said Deutsche Bank analyst Barbara Ryan.

"The major shot on goal in terms of the pipeline is bapineuzumab, and obviously we're not going to get any new information on that for quite a long time."

Indeed, 10 analysts have the equivalent of "hold" ratings on Wyeth shares, with one "sell" rating, compared with only five "buys," according to Thomson data.

Citigroup analyst John Boris cut his rating on Wyeth shares to "sell" from "hold" on Wednesday. Boris said bapineuzumab was now unlikely to succeed, while other negative catalysts loom, including possible slow adoption of new Wyeth products.  Continued...

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
Pledge to support economies

G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.  Full Article | Related Story 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SHOWCASE

Sanjay Sinha
Balancing Act

In India, it is a tough choice between growth, managing inflation and financial stability.  Full Article 

 
Nipun Mehta
Road to Recovery

There needs to be an acceptable balance created between education and healthcare and infrastructure spend, says Nipun Mehta of SG Private Banking.   Full Article 

 
Robot Asimo

Snapshots of Honda Motor's humanoid robot Asimo  Slideshow 

 
Marketing Strategy
Marketing Strategy

Companies are now using direct marketing methods to sell their products.  Full Article 

 
Exit Plans
Exit Plans

Factbox - Stimulus exit plans for Asia-Pacific's big 5 economies  Full Article