Was Pfizer's miss, a prescription for disaster in Big Pharma? Should you sell drug makers ahead of earnings next week?
Pfizer the world's biggest drugmaker, reported an 18 percent drop Thursday in its first-quarter profit on tougher generic competition but said it still expects to meet profit expectations for the full-year.
Its profit fell because of sharp declines in sales of the blood-pressure drug Norvasc and allergy drug Zyrtec. Both have lost patent protection and compete against cheaper, generic drugs. Wall Street expects the biggest blow to revenue in 2010, when sales of the world's best-selling drug Lipitor are sure to fall after it loses patent protection, explains Melissa Lee
Merck (MRK),Lilly (LLY) and Novartis (NVS) report earnings in the week ahead but I recommend watching Amylin (AMLN), counsels Pete Najarian. Their once a week diabetes drug could be huge for them. Also keep an eye on Biogen (BIIB).
The whole space terrifies me, exclaims Jeff Macke. I’d put my money in tech instead.
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Trader disclosure: On Apr. 18, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (AMR), (BIIB), (CSCO), (MSFT), (NOK), (TSO), (XLF), (YHOO), (ETFC), (EMC), (NVS); Najarian Owns (BKC); Najarian Owns (BHI) Calls, (BSC) Calls, (COP) Calls, (DD) Calls; Finerman Owns (GS); Finerman's Firm Owns (JCP), (MSFT), (NOK), (PZN), (TSO), (VCLK), (VLO), (YHOO), (GE), (NOK); Finerman's Firm Owns (FNM) Calls; Finerman's Firm Is Short (COF); Charles Schwab Is A Sponsor Of "Fast Money"; GE Is The Parent Company Of CNBC