Friday, October 3, 2008

Merrill Lynch Downgrades Schering to Underperform: "Continuing" Vytorin® Safety Woes. . . .


I think, at the same moment an anonymous commenter posted this, I must have been reading it, as well. Perhaps the worst of it for CEO Hassan, Cox, and the Top Six in Kenilworth is that Merrill pegs the Schering-Plough price target at $18. Ouch.

This, from a firm whose new-parent-to-be (Banc of America) bought (and hawked to its clients -- see prospectus page, below) over $800 million of Schering-Plough equity securities just a year ago now, at $27.50. This is truly a slice of humble pie, being served:

. . . .LONDON (MarketWatch) -- Merrill Lynch cut its rating on Schering-Plough to underperform from neutral and lowered its price target to $18 from $22, saying it expects the efficacy and safety controversies around Vytorin®/Zetia® to continue. In addition, the broker told clients that the drugmaker has the greatest currency risk of U.S. peers. . . .


3 comments:

Anonymous said...

Condor~

A WSJ article quotes--

Schering-Plough may be more aware of the vicissitudes of overseas markets than other American pharma companies. International sales account for about 70% of the company’s revenue, Hassan said.


ow~~~

but on the plus side, he said Russia, Brazil and Slovenia were places of growth (???)

Any idea on the potential of these markets to 'fund' the growth of S/P?

Anonymous said...

Slovenia?!

C'mon -- I am as big a believer in a central European economy as the next evangelist -- but geez, the loss of US cholesterol share will be replaced by Slovenia sales?

How many of these emergent Slovaks are overweight, eating fatty diets, largely inactive (or sedentary) -- AND have the disposable income to pay 3X for Vytorin? C'mon, man, Fred -- tell some truths, dude.

I suspect what health care funds there are in Slovenia will go to critical care capabilities (infectious diseases, Hep C, etc.), and related drugs for treatment of the same, in Slovenia -- even if we accept the premise.

Anonymous said...

One more note -- conservative Russian doctors will write statin scrips -- not Vytorin.