There are other drugs in various stages of development as well, and could generate up to $5 billion annually for Bristol-Meyers and Pfizer when the drug is approved. Competing drugs include Pradaxa, from Germany’s Boehringer Ingelheim, which was approved for use last year, Rivaroxaban from Johnson & Johnson Co. (NYSE: JNJ) and Bayer AG (OTC: BAYRY), Edoxaban from Japan’s Daiichi Sankyo (OTC: DSKYY), and Betrixaban from privately held Portola Pharmaceuticals.

The new drug, called apixaban, is competing directly with Pradaxa (dabigatran) as a treatment for stroke prevention due to a condition known as atrial fibrillation. Over 10 million people in the US and Europe are affected by the condition.

And even though apixaban appears at this stage to be more effective than Warfarin, cost will play a role in how widely the drug is eventually used. According to the Wall Street Journal, Pradaxa costs $6.75 a day for its twice-daily dose, compared to just pennies for generic warfarin.
The number of competing products could keep the cost down, but there’s no question that the new drugs will be very much more expensive.

The study is good news for Pfizer, which will soon lose patent protection on its Lipitor cholesterol drug, and Bristol-Meyers, also set to lose patent protection on its best-selling blood thinner Plavix. Pfizer’s world-wide revenue from Lipitor is nearly $11 billion, and Plavix hauls in nearly $7 billion annually for Bristol-Meyers.

Shares of Bristol-Meyers are up nearly 2% at mid-day today, at $29.28, near the top of the 52-week range of $24.97-$29.73. Pfizer shares are up more than 3.5%, at $18.86, in a 52-week range of $15.77-$21.45. Shares of the Pharmaceutical HOLDRs ETF (AMEX: PPH) are up nearly 2%, to $66.91, in a 52-week range of $60.11-$72.71.

Paul Ausick

• STOCK TICKERS: ABT, BSX, MDT, JNJ, SRDX, ANPI, BAYRY, MAXY, AMGN, CRA, INGN, CELG, MRK, SNY, GSK, AKRX, ARYX

This week we saw another FDA Approval in stents as Abbott’s (NYSE: ABT) XIENCE drug-eluting coronary stent was approved for marketing.  While this is causing a resurgence in stents, this space is about to become highly competitive (stocks covered: ABT, BSX, MDT, JNJ, SRDX, ANPI).  Introgen (NASDAQ: INGN) has a new twist for head and neck cancer… give it a cold, literally.  Celgene Corp. (NASDAQ: CELG) actually won out as a competitor’s bone marrow disease trials failed to meet expectations.  Merck (NYSE: MRK) was an FDA decision winner as it gets to keep its lead on the cervical cancer vaccine market in the U.S. tied up for at least 6-months longer than it was anticipated (stocks covered: MRK, SNY, GSK).

This may be a tiny company, but a patent was awarded in bone marrow and stem cell transplants.  While a biotech turned over its hemophelia treatments to a larger company, hemophelia treatments may be better off now (stocks covered: BAYRY, MAXY, AMGN).  Vaccine awards are going to keep sales up at one small vaccine maker.  One Alzheimer’s Disease treatment that originally had high hopes has bitten the dust.  P&G walked away from a partner this week, killing a tiny biotech (stocks covered: PG, ARYX).

And on the front for reviews:

• Do you remember all the hype and hopes for synthetic blood?  This looks like the last player has gone on to greener pastures.
• What is a good investment that has backed way off from highs that should show steady growth in the China health care sector?  We evaluated one potential company for this.

These issues are more stock issues than anything else:

• Celera Corporation (NASDAQ: CRA) completed its journey to independence and took its 3-letter ticker over to NASDAQ.
• Bayhill Therapeutics withdrew its plans for an IPO.  MS and diabetes patients will have to look elsewhere, for now.

Have a happy and safe LONG Fourth of July weekend.  I think there is a new treatment on the market for burnt hand trauma from fireworks, but the FDA has it on hold until next February.

Jon C. Ogg
July 4, 2008