|'Show-Me Stock'? |
American Home rebounding
Obesity and lawyers are on the rise in the U.S., and American Home ( AHP) can't shake either, it seems.
The lawsuit-weary drug maker now says it could be forced to pay up to $9 billion in legal claims and fees to finally settle a blizzard of litigation over Redux and Pondimin, two diet drugs that were withdrawn in 1997. And the battles could drag on for ten years, the company now says. The good news is that American Home, best known as the maker of drugs such as Premarin for osteoporosis, has never been in better shape, with seven recent product approvals, a roster of promising drugs in development and little patent expiration exposure. And in spite of having held merger talks with three different drug companies in the past three years, the company now says it's strong enough to compete without merging with a rival, a course most recently taken by Pfizer ( PFE) with onetime AHP suitor Warner-Lambert and Glaxo ( GLX) with SmithKline ( SBH). American Home shares rose 94 cents Tuesday to $62.19, leaving them just a quarter shy of their 52-week high.