Pfizer Inc's earnings are likely to slump further this year and its recently released plan to return to double-digit earnings growth next year and in 2007 could be in jeopardy because of Thursday's decision by federal regulators to ban the sale of Bextra, one of its blockbuster pain relievers, analysts said.
The US Food and Drug Administration (FDA) asked Pfizer to halt the sale of Bextra, which has been linked to increased risk of heart attacks and a rare skin condition. The FDA also said another Pfizer pain medication, Celebrex, must carry a black box warning -- the agency's sternest admonishment -- about its potentially negative cardiovascular and gastrointestinal side effects.
Pfizer shares initially fell almost 5 percent in trading on Thursday on the New York Stock Exchange, but ended the day little changed at US$26.90.
Pfizer officials did not return calls seeking comment. In a statement, Pfizer said it respectfully disagreed with the FDA decision's on Bextra and that it would work with the agency on Celebrex's label.
As part of an announcement on Tuesday that it would slash US$4 billion in costs, Pfizer estimated it would earn US$2 a share this year, down from US$2.12 a share earned last year. Analysts said that was no longer feasible and estimated Pfizer would miss the target by anywhere from US$0.03 to US$0.07.
Company officials also had expressed confidence in their ability to revitalize sales of Celebrex and Bextra, which have declined in recent months because of safety concerns. But with Bextra now off the market, Celebrex's sales prospects are uncertain.
Last year, Celebrex sales totaled US$3.3 billion while Bextra sales were US$1.3 billion.
Celebrex and Bextra belong to class of drugs known as Cox-2 inhibitors, as does Vioxx, a medicine taken off the market last September by Merck & Co after it was linked to increased risk of heart attack and strokes.
"I don't think Celebrex takes a huge hit but I am not comfortable saying this will be a growth product," said Carl Seiden, an analyst at UBS AG.
Doctors said the FDA announcement wouldn't necessarily prompt them to abandon Celebrex, but they also said more tests are needed to quantify the drug's cardiovascular risk and prove whether it reduces problems such as stomach bleeding than can be caused by aspirin and other pain relievers.
Cox-2 were developed to be gentler on the stomach but Celebrex's label doesn't say it reduces gastrointestinal side effects.
"Pfizer needs to do more studies," said Dr. Steven Abramson, chairman of rheumatology at the New York University-Hospital for Joint Diseases.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS