This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pfizer Seeks Pricing Perfection

Sanderson has an outperform rating on Nektar Therapeutics (NKTR), the developer of the inhaler and a partner of Pfizer. He doesn't own shares of Nektar, which also developed the dry-powder insulin formulation, as well as other Exubera technologies. His firm has had a recent investment-banking relationship with the company. Another Cowen analyst follows Pfizer and has an underperform rating on the stock.

Other analysts are more cautious. Morgan Stanley's Jami Rubin attended the recent American Diabetes Association annual scientific session in Washington, and told clients afterward that her informal poll indicated that "many physicians felt that two years of lung-safety data was not enough data to feel comfortable" about Exubera.

On the basis of her conversations with Pfizer sales representatives, Rubin says Exubera's launch "will be tempered by the large amount of education required" for both diabetes specialists and general practitioners. She frets that Exubera could be affected by "a tough reimbursement environment, which means that patients may not be so excited, presuming they have to pay out of pocket or pay a high co-payment."

She predicts that Exubera will record a little more than $1.1 billion in sales in 2010. Rubin has an underweight rating on Nektar and an overweight rating on Pfizer. Her firm has had investment-banking relationships with both companies, and Rubin owns shares of Pfizer.

Selling Convenience

Analysts and doctors will be watching how patients and insurers respond, because Pfizer is heavily promoting Exubera for its convenience.

"We believe that Exubera will improve patients' acceptance of insulin and thereby reduce the risk for serious complications in the future," said Dr. Jack Watters, vice president for medical affairs at Pfizer. Watters made his comments after the company issued surveys earlier this month showing that many patients delay taking insulin because they don't like injections .

Some of Pfizer's patient-preference research has been criticized by regulators in the U.K. where the National Health Service is deciding whether to pay for Exubera. Previously, some drug companies, and their stockholders, have been disappointed when enthusiastic market-research findings weren't matched by patient and physician acceptance.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs