Alzheimer’s disease (AD) is a devastating neuro-degenerative disease that affects people over the age of 60. The onset of the disease is often so gradual and the early signs are so mild that they are often mistaken as common traits of ageing. Early detection of the disease is significant as many of the available treatment options [...]

(PFE) Bayer Advances on Alzheimer’s Plan

With Pfizer’s (NYSE: PFE) dividend announcement date approaching nearer, the market is heatedly anticipating the quantum of increase in dividend amount. According to a report released by JPMorgan (NYSE: JPM), Pfizer is expected to increase its dividend in a meaningful way in coming years.

The report also expressed its optimism about paying down of company debts and maintenance of free cash flows. Pfizer is also expected to maintain its financial flexibility. The company is likely to declare its dividend in mid-December. The report states that the dividend is expected to be higher than the earlier years and that such consistent increase in dividends signify company’s healthy financials. However, Pfizer's management has acknowledged that the current annual dividend of $0.64 is lower than the average group payout ratio. Based on current dividend, payout ratio comes out to be 32% whereas group payout ratio hovers around 40%-50% range.

Despite increase in dividend, Pfizer is expected to generate enough cash flows to not only pay down its Wyeth-related debts but also to carry out other developmental activities. Pfizer is expected to pay $49 Billion in dividends during 2010-2015 time period.

Alzheimer’s disease (AD) is a devastating neuro-degenerative disease that affects people over the age of 60. The onset of the disease is often so gradual and the early signs are so mild that they are often mistaken as common traits of ageing. 

Early detection of the disease is significant as many of the available treatment options are most effective in the early stages. However, there is no such detection test available currently although some are under trial. 

The situation may change completely if Bayer (BAYRY) accomplishes its objective. The company recently decided to go ahead with the development of florbetaben to support the proper diagnosis of AD. 

At the recently held 95th Scientific Assembly and Annual Meeting of the Radiological Society of North America (RSNA), Bayer announced the enrollment of the first patient in a phase III clinical trial to evaluate the efficacy and safety of its Alzheimer's marker florbetaben in the detection of the disease. The trial will include patients with and without AD. 

Earlier, in the phase II trial, florbetaben had demonstrated its potential to successfully diagnose the disease in 80% of the cases. The pivotal phase III trial is expected to be conducted with approximately 400 patients. 

The study will determine the effectiveness of the marker in highlighting beta-amyloid plaques – associated with Alzheimer's – in patients' brains under a positron emission tomography (PET) scan. While the primary completion of the study is expected by 2011, the study is not anticipated to be completed before 2014. 

We note that the progress of Bayer on successful completion will change the situation of AD patients for the better. As per estimates, in 2006, more than 26 million people worldwide were suffering from the disease which could reach more than 100 million by 2050. 

At present there is no cure for the disease, but a few treatment options are available. These include Eisai and Pfizer's (PFE) Aricept, Exelon from Novartis (NVS), Ebixa from Lundbeck and Reminyl from Shire (SHPGY).
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Results from Studies in Early Breast Cancer and Advanced Disease to be Presented

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Genzyme Corp. (GENZ) recently reported progress on the resumption of supply of new lots of Cerezyme from its Allston Landing manufacturing facility, which was temporarily shut down due to contamination issues. The company announced that it has started shipping vials of the newly produced Cerezyme. The initial lot of the Cerezyme shipment will be used to [...]

(GENZ) Genzyme Resumes Cerezyme Shipment

Pfizer PFE can't catch a break in Canada right now. It's being blasted for a C$780,000 continuing medical education program it has set up through the Canadian Medical Association. Critics believe that doctor education should not be influenced by drug companies, which have a different set of interests than patients....

Pfizer PFE can't catch a break in Canada right now. It's being blasted for a C$780,000 continuing medical education program it has set up through the Canadian Medical Association. Critics believe that doctor education should not be influenced by drug companies, which have a different set of interests than patients....

As some big-name hospitals and drugmakers back away from industry-funded medical education, the Canadian Medical Association has anted up. The CMA has teamed up with Pfizer on a nationwide educational campaign, backed by $780,000 in Pfizer funding. Predictably, the move has ignited criticism from ethicists and others. "[T]he pharmaceutical industry...

Eric Lau, the Pfizer PFE worker wanted in connection with the beating and stabbing death of a neighbor, was arrested Wednesday and charged with murder. Lau, 32, a contract worker at Pfizer's Pearl River, N.Y., plant, was arrested after a sniffer-dog manhunt in a wooded area near New City, N.Y....

Eric Lau, the Pfizer PFE worker wanted in connection with the beating and stabbing death of a neighbor, was arrested Wednesday and charged with murder. Lau, 32, a contract worker at Pfizer's Pearl River, N.Y., plant, was arrested after a sniffer-dog manhunt in a wooded area near New City, N.Y....

Genzyme Corp. (GENZ) recently reported progress on the resumption of supply of new lots of Cerezyme from its Allston Landing manufacturing facility, which was temporarily shut down due to contamination issues. The company announced that it has started shipping vials of the newly produced Cerezyme. 

The initial lot of the Cerezyme shipment will be used to provide uninterrupted treatment to the most vulnerable patients. By the end of Dec, the company expects to expand supply so as to cover those patients who had experienced interruptions in treatment due to the shortage in supply. 

Genzyme believes it will be able to meet worldwide demand for the product in the first quarter of 2010. Genzyme also provided an update on the resumption of supply of Fabrazyme, indicated for Fabry disease, which was also affected by the temporary shutdown of the manufacturing facility. The company is preparing to ship vials of the newly produced Fabrazyme. 

However, supply will be low initially due to lower productivity at the manufacturing plant. Genzyme will ship 30% of Fabrazyme demand during the first quarter of 2010 and will start shipping 70-100% of demand in the second quarter. Further details regarding Fabrazyme supply will be available in Feb 2010. 

Although we are pleased to hear that Genzyme has resumed supply of Cerezyme, we are concerned about potential competition in the form of Shire plc’s (SHPGY) velaglucerase alfa and Protalix BioTherapeutics Inc.’s (PLX) Uplyso, both of which are currently available under the US Food and Drug Administration’s (FDA) expanded access program. 

Competition for Cerezyme will heat up given Protalix’ agreement with pharmaceutical giant, Pfizer, Inc. (PFE) which recently acquired worldwide rights to Ulypso for approximately $115 million ($60 million in an upfront payment and $55 million in regulatory milestones). With Pfizer’s marketing muscle behind it, Ulypso could prove to be a formidable competitor for Cerezyme. 

We currently have an Underperform recommendation on Genzyme.
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