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20、Pfizer falls 10 pct in Europe after key drug fails
Mon Dec 4, 2006 3:50am ET

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More Business News... Email This Article | Print This Article | Reprints [-] Text [+] By Ben Hirschler

LONDON (Reuters) - Shares in Pfizer Inc, the world's biggest drugmaker, fell more than 10 percent in early trade in Europe on Monday, after news it had scrapped its most important experimental drug.

Pfizer halted development of torcetrapib, which was designed to raise levels of "good" HDL cholesterol, after an independent safety monitoring board cited increased deaths and heart problems among patients given the product in a late-stage trial.

Torcetrapib had been expected to fill a sales gap left when Lipitor, the world's biggest-selling drug, loses U.S. patent protection in 2011.

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Its failure leaves Pfizer with a multibillion-dollar hole in its anticipated future revenue stream which the company will now have to try and fill by buying in other products.

Pfizer stock was off 10.6 percent in Frankfurt at 3:30 a.m. EST at 18.56 euros, equivalent to $24.72 and compared with a closing level in New York on Friday of $27.86.

For some of Pfizer's rivals, however, the problems facing the New York-based giant are good news.

Industry analysts at Morgan Stanley said the failure of torcetrapib was an "important positive" for AstraZeneca Plc, since the product had been the biggest potential competitor to its fast-growing cholesterol drug Crestor.

After a shaky start, Crestor has established itself as an important driver of AstraZeneca sales and profits, thanks to clinical tests this year showing it can reverse the build-up of arterial plaque linked to heart attacks.   Continued...

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21、Pfizer falls 10 pct in Europe after key drug fails
Mon Dec 4, 2006 3:50am ET

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Business News
Bank of New York to buy Mellon
Pfizer shares plunge after key drug fails
Pilgrim's Pride, Gold Kist reach deal
VIDEO: Drugmakers in focus
More Business News... Email This Article | Print This Article | Reprints [-] Text [+] By Ben Hirschler

LONDON (Reuters) - Shares in Pfizer Inc, the world's biggest drugmaker, fell more than 10 percent in early trade in Europe on Monday, after news it had scrapped its most important experimental drug.

Pfizer halted development of torcetrapib, which was designed to raise levels of "good" HDL cholesterol, after an independent safety monitoring board cited increased deaths and heart problems among patients given the product in a late-stage trial.

Torcetrapib had been expected to fill a sales gap left when Lipitor, the world's biggest-selling drug, loses U.S. patent protection in 2011.

Reuters Pictures

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from the last 24 hours.
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Its failure leaves Pfizer with a multibillion-dollar hole in its anticipated future revenue stream which the company will now have to try and fill by buying in other products.

Pfizer stock was off 10.6 percent in Frankfurt at 3:30 a.m. EST at 18.56 euros, equivalent to $24.72 and compared with a closing level in New York on Friday of $27.86.

For some of Pfizer's rivals, however, the problems facing the New York-based giant are good news.

Industry analysts at Morgan Stanley said the failure of torcetrapib was an "important positive" for AstraZeneca Plc, since the product had been the biggest potential competitor to its fast-growing cholesterol drug Crestor.

After a shaky start, Crestor has established itself as an important driver of AstraZeneca sales and profits, thanks to clinical tests this year showing it can reverse the build-up of arterial plaque linked to heart attacks.   Continued...

22、Macklowe leaves Icahn alone on Reckson bid, source says
Sun Dec 3, 2006 7:13pm ET

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NEW YORK (Reuters) - New York real estate magnate Harry Macklowe backed away from a bid for Reckson Associates Realty Corp. (RA.N: Quote, Profile , Research), leaving former partner Carl Icahn alone to pursue an offer for the commercial real estate firm, a source familiar with the situation said on Sunday.

The reason Macklowe abandoned the bidding partnership was not immediately known, the source said. Icahn still plans to pursue the offer, the source said.

Reckson, a real estate investment trust (REIT) that owns office buildings in New York City and its suburbs, declined to comment. Icahn and Macklowe could not be immediately reached for comment.

Icahn and Macklowe had formed Rome Acquisition L.P. to pursue an $4.6 billion acquisition of Reckson, which previously agreed to be bought by SL Green Realty Corp. (SLG.N: Quote, Profile , Research) for about $3.99 billion.


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Macklowe's move to abandon the bid followed a decision by Mack-Cali Realty Corp. (CLI.N: Quote, Profile , Research) on Saturday to drop out of the Rome Acquisition bidding partnership. Mack-Cali had previously agreed to contribute $400 million in cash to the deal.

Shareholders of Reckson, which owns 101 properties in New York City, its suburbs and in New Jersey, are scheduled to vote on SL Green's offer on December 6.

Reckson said on Saturday that Rome Acquisition still had not shown any documentation on its financing arrangements and had not responded to requests for information regarding a number of outstanding financial, legal and structural issues on its proposal.

Reckson also said Rome Acquisition had not made a firm proposal to acquire Reckson. Rome Acquisition previously said it would deliver a definitive offer by Monday. Reckson said Saturday that it continued to remain subject to a binding merger agreement with SL Green.

23、DuPont to sell coatings arm to Switzerland's Sika
Mon Dec 4, 2006 1:05am ET

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NEW YORK (Reuters) - Chemicals maker DuPont Co. said on Monday it would sell its protective coatings product lines and related assets to Swiss chemicals firm Sika AG.

Financial terms of the sale were not disclosed.

The protective coatings business makes products designed to protect concrete, steel and other materials from corrosion, water, fire and environmental forces, DuPont said in a statement.

Sika will buy products sold under a number of brands including Permacor, Unitherm and Betonol as well as DuPont's manufacturing site at Vaihinger, Germany, where the coatings are made.


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DuPont said the sale was part of a strategy it announced in March to focus its performance coatings business more effectively on global growth.

24、EMI set to reject Permira offer
Sun Dec 3, 2006 11:07pm ET

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LONDON (Reuters) - EMI Group Plc (EMI.L: Quote, Profile , Research) is expected to reject a potential 2.5 billion pound ($4.92 billion) bid from private equity firm Permira as being too low, the Times newspaper said on Monday.

Permira could make an offer of 310 pence per share within days, but the music company, home to the likes of Kylie Minogue, Robbie Williams and Cold Play, is thought to want at least 350 pence per share, the newspaper said in an unsourced report.

EMI said last Tuesday it had received a bid approach and a source familiar with the situation said private equity firm Permira had made contact with the music company.

A comment was not immediately available from EMI.


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Shares in the company ended last week at 290 pence.

25、Oil market is still oversupplied - OPEC president
Mon Dec 4, 2006 2:40am ET

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ABU DHABI (Reuters) - The global oil market is still oversupplied and prices could be higher despite a rally that has taken them above $60 a barrel, OPEC President Edmund Daukoru of Nigeria said on Monday.

"The price is firming somewhat, but against a weakening dollar, and there is still a lot of excess volume out there," Daukoru told reporters in Abu Dhabi, capital of the United Arab Emirates.

The global economy would be comfortable with U.S. crude prices near $60 a barrel, he said.

"I don't want to pin down a number but prices could be a little better than they are now," he said.


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U.S. crude <CLc1> was off 13 cents at $63.30 a barrel, holding last week's near 7 percent gains, after earlier reaching a high of $63.82.

The Organization of Petroleum Exporting Countries is scheduled to meet on December 14 in Nigeria to assess the impact of the group's 1.2 million barrel per day cut, decided at an emergency meeting in October.

Daukoru has said OPEC could trim output again, but in Abu Dhabi he declined to say whether consensus was building for another cut.

26、Euro hits 20-mth peak vs dollar
Mon Dec 4, 2006 3:25am ET

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TOKYO (Reuters) - The euro inched up to a 20-month high against the dollar and touched its highest level ever versus the yen on Monday, boosted by expectations that the European Central Bank will boost interest rates this week.

The dollar remained under broad selling pressure after soft U.S. factory data late last week reinforced forecasts that the Federal Reserve could cut rates next year.

The euro was well supported by prospects for a shrinking yield gap between the single currency and the dollar, with rates in the euro zone expected to rise to 3.5 percent at a policy meeting on Thursday while those in the United States hold at 5.25 percent.

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Meanwhile Japanese yields continue to be dwarfed despite a looming 25 basis point rate hike by the Bank of Japan to 0.50 percent.

The dollar pared losses as traders took profits on the currency's ongoing woes, but expectations for a deteriorating rate advantage will likely keep hurting the dollar, market players said.

"On the whole, the market is being driven by people who expect more weakness in the U.S. economy," said Fumihiko Kawano, forex manager at Nomura Securities.

After rising to a 20-month high around $1.3370 in early trade, the euro pared gains to stand at $1.3325 as of 0625 GMT, down slightly on the day.

Market talk that sovereign names, probably Asian, may have sold euros above $1.3350, might have helped push the currency off its highs, said a senior trader for a major Japanese bank.   Continued...

27、OPEC frets over dollar's fall
Mon Dec 4, 2006 4:36am ET

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More Business News... Email This Article | Print This Article | Reprints [-] Text [+] ABU DHABI/VIENNA (Reuters) - OPEC is concerned by the fall in the dollar and the producer group will take up the issue when it meets next week to chart supply policy.

A weaker dollar erodes income from the dollar-denominated oil sales of OPEC members and could encourage them to seek a higher price. The currency is at a 20-month low against the euro.

"We are now concerned about the weak dollar," Qatari Oil Minister Abdullah al Attiyah told reporters in Abu Dhabi.

The Organization of Petroleum Exporting Countries is scheduled to meet on December 14 in Nigeria to assess the impact of the group's 1.2 million barrel per day cut, decided at an emergency meeting in October.

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U.S. crude <CLc1> was off 47 cents at $62.96 a barrel, holding last week's near 7 percent gains, after earlier reaching a high of $63.82.

But OPEC officials say prices could be higher still.

"The price is firming somewhat, but against a weakening dollar, and there is still a lot of excess volume out there," OPEC President Edmund Daukoru said in Abu Dhabi.

In the past, OPEC has said it needed higher oil prices to offset the impact of a falling dollar, but that was in late 2003 and early 2004 when U.S. crude was trading in the $30s.

Many in the group support a further cut in the group's output at the December meeting.   Continued...

28、Pfizer falls 11 pct in Europe after key drug fails
Mon Dec 4, 2006 4:51am ET

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Bank of New York to buy Mellon
Pfizer shares plunge after key drug fails
Pilgrim's Pride, Gold Kist reach deal
VIDEO: Drugmakers in focus
More Business News... Email This Article | Print This Article | Reprints [-] Text [+] By Ben Hirschler

LONDON (Reuters) - Shares in Pfizer Inc fell 11 percent in Europe on Monday after the world's biggest drugmaker scrapped development of its most important experimental medicine.

Pfizer halted work on torcetrapib, which was designed to raise levels of "good" HDL cholesterol, after an independent safety monitoring board cited increased deaths and heart problems among patients given the product in a late-stage trial.

Torcetrapib had been expected to fill a gap left when the patent on Lipitor, the world's biggest-selling drug with annual sales of $13 billion, expires in 2010 or 2011.

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Its failure leaves Pfizer with a multibillion-dollar hole in its anticipated future revenue stream which the company will now have to try and fill by buying in other products.

"These guys were already on the acquisition trail for new products and new technologies but the scale of what they would consider might now change," said Mike Ward, an analyst with Nomura Code Securities in London.

"Rather than the $1 billion to $4 billion range of acquisitions which has been fairly consistent Pfizer policy for a while, there will now be speculation that it could be almost anything."

Pfizer stock was off 10.9 percent in Frankfurt at 0920 GMT at 18.50 euros, equivalent to $24.64 and compared with a closing level in New York on Friday of $27.86.

The decision to scrap torcetrapib took investors by surprise, although there had been concerns that the drug caused elevations in blood pressure, itself a major risk of heart disease.   Continued...

29、Pfizer falls 11 pct in Europe after key drug fails
Mon Dec 4, 2006 4:51am ET

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More Business News... Email This Article | Print This Article | Reprints [-] Text [+] By Ben Hirschler

LONDON (Reuters) - Shares in Pfizer Inc fell 11 percent in Europe on Monday after the world's biggest drugmaker scrapped development of its most important experimental medicine.

Pfizer halted work on torcetrapib, which was designed to raise levels of "good" HDL cholesterol, after an independent safety monitoring board cited increased deaths and heart problems among patients given the product in a late-stage trial.

Torcetrapib had been expected to fill a gap left when the patent on Lipitor, the world's biggest-selling drug with annual sales of $13 billion, expires in 2010 or 2011.

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Its failure leaves Pfizer with a multibillion-dollar hole in its anticipated future revenue stream which the company will now have to try and fill by buying in other products.

"These guys were already on the acquisition trail for new products and new technologies but the scale of what they would consider might now change," said Mike Ward, an analyst with Nomura Code Securities in London.

"Rather than the $1 billion to $4 billion range of acquisitions which has been fairly consistent Pfizer policy for a while, there will now be speculation that it could be almost anything."

Pfizer stock was off 10.9 percent in Frankfurt at 0920 GMT at 18.50 euros, equivalent to $24.64 and compared with a closing level in New York on Friday of $27.86.

The decision to scrap torcetrapib took investors by surprise, although there had been concerns that the drug caused elevations in blood pressure, itself a major risk of heart disease.   Continued...