Wyeth shares could rise more than 20 pct: Barron's
|
|
|
NEW YORK (Reuters) - Wyeth shares may rise 20 percent or more because its business is improving, its experimental drugs to treat patients with Alzheimer's disease are promising, and it could be an attractive takeover target, Barron's newspaper said in its April 2 edition.The company's shares could rise into the 60s from Friday's close of $50.03, where the ratio of price to expected 2007 profit is 15 percent below typical peers among big drug companies, the newspaper said.Wyeth shares trade at 14.5 times the average analyst forecast for $3.45 profit per share in 2007, according to Reuters Estimates. Fourth-quarter profit totaled $855 million, or 63 cents per share, and excluding items totaled 66 cents per share.Barron's said Madison, New Jersey-based Wyeth should increase profit at 15 percent annually, regardless of whether any of its dozen Alzheimer's drugs under development pay off.But it said if only a few of the drugs succeed, the company could generate hefty revenue should many of the 5 million Alzheimer's patients in the United States spend a few thousand dollars a year on treatments for the disease.The newspaper said Enbrel, a product designed to treat arthritis, and Prevnar, a strep vaccine, should help lift cash flow and profit.Another big product is the antidepressant Effexor, which generated about 18 percent of the fourth quarter's $5.22 billion of revenue.The newspaper said Wyeth may also be near the end of incurring costs for its discontinued fen-phen diet drug, following a nationwide settlement and $21 billion of charges.In addition, the newspaper said Wyeth is one of only a handful of drug companies that might be attractive merger partners for big rivals such as Pfizer Inc. and Switzerland's Novartis AG .Wyeth's stock peaked at $70.25 in April 1999. Its shares' 52-week high is $54.10, set on October 19, 2006.
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
