Quote:
Pfizer Drops
Pfizer was the biggest drag on the S&P 500 and Dow average. The stock tumbled $1.46 to $24.29, bringing its two-day slide to 16 percent, the steepest such decline since October 1987.
The No. 1 drugmaker on Dec. 17 said its Celebrex painkiller more than doubled the risk of heart attacks in a study. Credit Suisse First Boston today cut Pfizer's 12-month share-price forecast to $24 from $28.
The Amex pharmaceutical index has dropped 8.4 percent this year, paced by Pfizer and Merck & Co., which in September withdrew its rival Vioxx painkiller because of safety concerns. Pfizer and Merck shares trade for about 12 times estimated earnings, while the S&P 500 has a multiple of 18.
``Pharmaceutical stocks are cheap, but the one thing that has us concerned has been headline risk,'' said Knott Capital's Barron. ``There could be news coming out about the efficacy or safety of a major drug, or about disclosure of its research.''
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What do you guys see in the shareholders future, if Celebrex ends up getting pulled completely?
I have a tendency of jinxing myself, so I'll stay quiet for now.