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Pfizer: Drug Promising, Trial Ends Early

Posted on: Tuesday, 8 February 2005, 18:00 CST

NEW YORK - Pfizer Inc. said Tuesday that a study of one of its cancer drugs was ended early and all patients in the trial are being offered the medication because it was found to be safe and effective.

The positive news came on the same day an analyst predicted Pfizer could fire up to 30 percent of its sales force as part of a restructuring.

Pfizer spokesman Paul Fitzhenry said the company had initiated a comprehensive review of its business but that it was premature to discuss any layoffs. The company has about 38,000 sales people worldwide, with between 11,000 and 12,000 in the United States.

Pfizer has been under pressure because several of its major drugs are losing patent protection and one of its biggest sellers, the pain reliever Celebrex, has been linked to increase risk of heart attack and strokes. Celebrex belongs to the same class of drugs as Vioxx, the Merck & Co. medication that was withdrawn from the market last September because it doubled patients risk of heart attack and strokes.

Pfizer's cancer drug known as SU11248 was being tested to treat patients with gastrointestinal atromal tumors who had grown resistant to Gleevec, a medicine made by Novartis AG. It was designed to both stop the blood supply to the tumors and directly attack the cancerous tissue in the tumors.

Because of positive results for those using the drug, the independent panel recommended halting the study seven months ahead of schedule and that patients in the trial who were receiving a placebo now be given the option of being given the drug.

There were 342 patients in the phase III trial, with 110 receiving placebo. Patients that had been receiving the drug showed positive signs such as tumor shrinkage or a delay in disease advancement when compared to those in the placebo group, said Dr. Charles Baum, Pfizer's global clinical leader.

A Pfizer spokeswoman said the company hopes to seek formal approval for the drug from federal regulators sometime this year. It is also testing the drug in other types of cancers including those attacking lungs, breasts and kidneys.

Bert Hazlett, an analyst at Suntrust Robinson Humphrey, said the drug's potential sales could reach between $800 million and $1 billion if it is approved for other types of cancers.

Meanwhile, Lehman Brothers analyst Tony Butler issued a report which said Pfizer was embarking on an ambitious plan to reduce its headcount. Depending on the magnitude of the restructuring, Butler said the savings could add 15 cents to earnings after severance and restructuring charges. Analysts surveyed by Thomson First Call had been expecting Pfizer to earn $2.13 this year and $2.21 in 2006.

Next week the Food and Drug Administration will hold a meeting to discuss the safety of cox-2 inhibitors, the class of drugs that includes Celebrex and Vioxx. Celebrex prescriptions have skidded since it was linked to heart problems last December. Analysts have speculated that even if the drug is deemed safe by the FDA panel, it will be a challenge to rebuild confidence in Celebex.

Pfizer shares rose 64 cents, or nearly 3 percent, to close at $25.55 in trading Tuesday on the New York Stock Exchange. It has traded as high as $38.85 in the last 52 weeks,

Source: Associated Press/AP Online

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