Pfizer Stops Trial on Torcetrapib Cholesterol Pill (Update4) By Shannon Pettypiece and Michelle Fay Cortez Dec. 2 (Bloomberg) -- Pfizer Inc., the world's biggest drugmaker, said it is ending development of its most important experimental drug, the torcetrapib cholesterol pill, after patients using the medicine died during a study. Pfizer had expected torcetrapib would help replace revenue lost when its Lipitor cholesterol pill, the world's biggest selling drug, loses patent protection in 2010. The New York- based company said in a statement it has notified both U.S. regulators and doctors that the patients involved in the trial should no longer use the drug. While Pfizer didn't say how many people died or give the circumstances related, torcetrapib was tied in recent research to high blood pressure in some patients. The drug had been expected to eventually generate as much as $20 billion in annual revenue, said Trevor Polischuk, an analyst with Orbimed Advisors LLC in New York, in an interview last week. ``I'm terribly disappointed on behalf of our patients,'' said Steven Nissen, head of cardiology at the Cleveland Clinic, the top heart hospital in the U.S. News & World ranking, in a telephone interview today. Drugs like Lipitor, which lower so-called bad cholesterol, or LDL, ``only reduce cardiovascular events by about one third,'' Nissen said. ``We were very hopeful'' use of drugs like torcetrapib, which raise HDL, the good cholesterol, ``would improve patient outcomes.'' ``It didn't work out for Pfizer, but stopping the trial was obviously the right thing to do,'' Nissen said. `Interests of Patients' Pfizer Chief Executive Officer Jeffrey Kindler said in the statement that the company halted the trial, which involves about 15,000 people, in the ``interests of patients and making sure all this information is communicated to appropriate medical and regulatory authorities as quickly as possible.'' Pfizer is in need of torcetrapib to replace the $13 billion in annual revenue the company may lose from sales of Lipitor, when that drug's patent protection ends and cheaper generic copies are allowed on the market. Lipitor was the source of a quarter of last year's revenue for Pfizer, and almost half of the company's earnings. Ofizer spent $1 billion already in its development of torcetrapib. The announcement comes two days after Pfizer said it planned to seek U.S. marketing approval of torcetrapib in the second half of 2007. The company also said during a Nov. 30 meeting with analysts that it was in the early stages of studying two other drugs, beyond torcetrapib, as potential candidates to replace Lipitor. `Understand the Challenge' ``With regard to our business, we understand the challenge that this represents and we will respond quickly and aggressively to it,'' Kindler said in the statement. Pfizer said during the analyst meeting that early results from its last-stage human testing showed the drug elevated patients' blood pressure an average of three to four millimeters in patients taking the drug, combined with Lipitor. Raising blood pressure that much could cause complications in patients already at risk of having a heart attack, analysts said. All three candidates to replace Lipitor are designed to elevate levels of good, or HDL, cholesterol. Good cholesterol helps sweep LDL from arteries, doctors say. Pfizer is in a race with other drugmakers to develop the new class of cholesterol drugs. Roche is studying a drug that works the same way as torcetrapib, and Merck may be developing a similar product, according to analysts and researchers. Abbott Laboratories is acquiring Kos Pharmaceuticals, the maker of Nias pan, the strongest HDL-raising drug on the market. ``We are first in class, best in class and I believe we wil own this class for as long as it exists,'' said John LaMattina, Pfizer's senior vice president for global research, in a Nov. 30 meeting with analysts. To contact the reporter on this story: Shannon Pettypiece in Washington at spettypiece@bloomberg.net Last Updated: December 2, 2006 23:20 EST
Pfizer May Plunge After Cholesterol Trial Is Halted (Update1) By Shannon Pettypiece and Michelle Fay Cortez Dec. 3 (Bloomberg) -- Pfizer Inc.'s shares will likely plunge after the world's biggest drugmaker unexpectedly ended development of its most important new drug, a cholesterol medicine expected to replace Lipitor when its patent expires. Pfizer said it was ending all trials using torcetrapib after an independent board told the New York-based company that a higher number of patients died when torcetrapib was used with Lipitor than when Lipitor was taken alone. Chief Executive Officer Jeffrey Kindler said in a statement yesterday that Pfizer will ``accelerate'' plans to reduce costs and acquire products through acquisitions. Pfizer invested $1 billion in developing torcetrapib and had planned to seek U.S. marketing approval in the second half of 2007. Analysts have said they expected the drug to eventually generate $20 billion a year. Lipitor produces about $13 billion annually, or about half of Pfizer's profit, and will lose patent protection in 2010, opening the way to generic competition. ``I'm terribly disappointed on behalf of our patients,'' said Steven Nissen, head of cardiology at the Cleveland Clinic, the top heart hospital in the U.S. News & World ranking, in a telephone interview late yesterday. Shares of Pfizer, which has a market value of $200.9 billion, gained 37 cents, or 1.4 percent, to $27.86 on Dec. 1. Drugs like Lipitor, which lower so-called bad cholesterol, or LDL, ``only reduce cardiovascular events by about one third,'' Nissen said. ``We were very hopeful'' use of drugs like torcetrapib, which raise HDL, the good cholesterol, ``would improve patient outcomes.'' ``It didn't work out for Pfizer, but stopping the trial was obviously the right thing to do,'' Nissen said. FDA Informed Pfizer immediately informed the U.S. Food and Drug Administration about the decision and told research physicians to make certain all study participants stopped treatment, the company's statement said. Eighty-two patients taking the combination of torcetrapib and Lipitor died compared with 51 deaths among patients who were only given Lipitor, Pfizer spokesman Andy McCormick said in an e- mailed response to questions. Kindler said in the statement that Pfizer ended the trial, which involved about 15,000 people, in the ``interests of patients and making sure all this information is communicated to appropriate medical and regulatory authorities as quickly as possible.'' The announcement came two days after Pfizer, for the first time, told analysts and investors in a meeting that the company was in the early steps of studying two other drugs, in addition to torcetrapib, as potential candidates to replace Lipitor. Torcetrapib was in the third of three stages of trials needed for U.S. approval. ``With regard to our business, we understand the challenge that this represents and we will respond quickly and aggressively to it,'' Kindler said in the statement. Blood Pressure Pfizer said last month early results from its last-stage human testing showed the drug elevated patients' blood pressure an average of three to four millimeters in patients taking the drug, combined with Lipitor. Raising blood pressure that much could cause complications in patients already at risk of having a heart attack, analysts said. All three candidates to replace Lipitor are designed to elevate levels of good, or HDL, cholesterol. Good cholesterol helps sweep LDL from arteries, doctors say. Pfizer is in a race with other drugmakers to develop the new class of cholesterol drugs. Roche is studying a drug that works the same way as torcetrapib, and Merck may be developing a similar product, according to analysts and researchers. Abbott Laboratories is acquiring Kos Pharmaceuticals, the maker of Niaspan, the strongest HDL-raising drug on the market. ``We are first in class, best in class and I believe we will own this class for as long as it exists,'' said John LaMattina, Pfizer's senior vice president for global research, in a Nov. 30 meeting with analysts.
Can any of you experts here tell if there was any unusual high volume of options traded on Pfizer? (before this over the weekend major negative news) I ask cause didn't they just say that the are hopeful that Torcetrapid would get some kind of approval in spring or something like that? How does the options look to those who know how to read them?
Nevermind. I think I just answered my own question regarding the options.. Take it look at the number of options for the $27.50 strike price ( and remember, there was no negative news until the weekend ,hehe http://finance.yahoo.com/q/op?s=PFE&m=2006-12
Yes Pfizer is going to plunge pretty bad tomorrow. With the CEO mentioning this drug 4 days ago with potential application next spring, you bet PFE will be facing a lot of angry shareholders and a lot of lawsuits.