Sunday, October 09, 2005

The Lipitor case: Pfizer down, Ranbaxy up...

Forbes says: Credit Suisse First Boston maintained a "neutral" rating on Pfizer and said the drug giant has an 80% chance of maintaining exclusivity on best-selling cholesterol drug Lipitor.

"If Pfizer prevails in the suit, we would expect the stock to trade up to $29 to $32, which reflects not only full credit for Lipitor earnings, but also a rise in the U.S. Major Pharmaceutical sector between 100% and 110% of the S&P," said CSFB. "Immediate downside to $19 is likely if Pfizer loses exclusivity in 2006."

Currently, Pfizer shares are down. The research firm said Pfizer shares are currently discounting a 65% to 70% probability of a Lipitor win. "We believe investor risk aversion is weighing on Pfizer's price.

Meanwhile, Indiatimes reports Ranbaxy stock going up:

The Ranbaxy stock has surged by 7% on the BSE in the past week alone. The case has also sparked off a spate of analytical reports from major global brokerage houses, each detailing how the benefits would boost the drug major. Ranbaxy could also lose, particularly in the crucial US market, in which case there would be no gains. Reports indicate that possible sales from the UK market alone could boost Ranbaxy’s fortunes.

Hmmm, Pfizer stock going down, Ranbaxy stock going up...


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