Rise and shine, everyone. Another day is on the way. And here on the frosty Pharmalot corporate campus we are bounding with energy thanks to the ritual cup of stimulation, or three. The special flavor today is Golden French Toast. Of course, this makes it all the more possible to hunt down those interesting tidbits. Here are a few to help you get started. Hope your day goes well and do stay in touch...
Komen Advocacy Group Is Cautious On Avastin (Wall Street Journal)
Merck 2011 Misses Estimate And Takes $1.7M Drug Write-Off (Bloomberg News)
Teva Receives FDA Warning Letter For Jerusalem Plant (Reuters)
Merck's Gardasil Prevents HPV And Genital Warts In Men (Bloomberg News)
Glaxo Profits Slump On Legal Costs And Avandia Slowdown (PharmaTimes)
Painkiller Prescription Errors Due To Name Confusion (HealthDay)
UN Joins Kenyan Case Against Generic ARV Ban (The Standard)
Coffee pix thx to chichcacha flickr creative commons
1 Comment
On the Merck story today -- New CEO Ken Frazier has decided NOT to follow Pfizer's lead (accelerating cost-cutting announced by Pfizer a day ago) -- with decidedly downbeat results:
New CEO Ken Frazier takes a $1.7 billion writeoff on Hassan's hype-candidate TRA (vorapaxar) -- and is left holding Fred's steaming bag of dung (again).
NASDAQ Pre-Market -- Shares Now Off Over 3.4% -- to $32.65 My overall impression is that the most of the larger stock analysis houses came off as pretty justifiably skeptical -- at least about New Merck's proffered reasons for the withdrawal of its 2012-2013 guidance.
Lowers long term guidance to high-single digits EPS growth; posts a GAAP Q4 2010 loss per share. Vorapaxar is 4 percent; with other 2010 impairments, now nearly 6 percent of Schering-Plough's $41.5 billion purchase price has been written off, as worthless, in 2010 alone.
I live blogged the earnings call; here is some of it:
▲ Q: Tim Anderson (Sanford Bernstein) -- I hate to say it, but the explanation for 2013 guidance downturn seems to be about things known for months and months now -- at least it sure sounds like it. . .? And when will there be a buyback re-up?
▲ A: Ken Frazier -- We knew about EU pricing pressure, but it is increasing; incremental other pipeline set-backs were "tipped" when vorapaxar made a big difference. We have 20 late stage clinical trials underway, we intend to keep funding the vast majority of them. Launch of boceprevir will be a big cost. . . we have decided not to go for short term cost cutting (as Pfizer just did). It is not that we CAN'T get there -- we are choosing to keep spending. No update on Remicade or Simponi -- won't comment on whether there are negotiations with J&J.
▲ Q: David Risinger (Morgan Stanley) -- Your 2011 sales guidance is above our estimate; EPS is below -- so, are you suggesting that you will be reinvesting the synergies in 2011?
▲ A: Ken Frazier -- Yes, but recall that Venezuela will be $0.06 off the top in 2011. So we are investing in our portfolio -- this is the right time to do this. . . we have no guidance beyond 2011, to be clear. . . .
▲ Q: Seamus Fernandez (Leerink Swann) -- So are we supposed to remove Remicade/Simponi from 2011 through 2013 guidance? What has happened to the $15 billion of operating cash flow over 2011 to 2013?
▲ A: CFO Peter Kellog -- We expect to keep Remicade; it is in our guidance. We are focused on generating cash in 2011-- we are focused on returning to shareholders as well. . . . no other specifics at this point.
[Editor: Call ended at 9:14 AM EST.]
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Namaste