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!

Legal Questions Still Dogging Wyeth

The settlement was a bargain on Wall Street. Many analysts feared Merck could have lost $10 billion to $20 billion.

"Arguably, the strategy has paid off for Merck," says Darren McKinney, a spokesman for the American Tort Reform Association. "Tort reformers, generally, would like to see defendants fight all the way to verdict as a means of discouraging abusive and frivolous litigation in the future."

The Premarin family was once Wyeth's biggest seller, peaking at $2.1 billion in 2001. By 2004, sales dropped to $880 million, but they have climbed back to $1.06 billion last year.

Sales skidded after the federal research report was released in 2002 when early results showed increased risks of breast cancer. A follow-up study, published this year, said the risk of breast cancer could remain elevated "even years after stopping therapy."

Wyeth said the follow-up report didn't detract from "the appropriate use" of hormone therapy. Wyeth said researchers "selectively" released information "without providing the full context of the data assessed."

Wall Street analysts rarely mention these drugs in their recent reviews, most likely due to Wyeth's string of court victories, an uncertain legal climate and the fact that the company has many moving parts affecting its future results. Some moving parts are experimental alternatives to the Premarin family.

"Perhaps more than any other major pharma organization, Wyeth's pipeline has been significantly impacted by an increasingly conservative FDA," says a June 23 report by Chris Schott of JPMorgan. Schott, who doesn't own shares, has a neutral rating. His firm has had a recent investment banking relationship.

4 of 5

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