When Pfizer announced that it was scrapping its worldwide trials for its potential new blockbuster, torcetrapib, the market reacted with surprise (¨Pfizer hit by failure of cholesterol drug¨ Financial Times, Monday, December 3 2006).
Given that a blockbuster drug implies a billion dollar revenue potential, it is not surprising that the financial markets, who did not expect it, marked down the share price on the announcement.
This decision should not damage the image of the company, as you suggest. On the contrary, cancelling a program with such major revenue potential in a timely fashion shows that Pfizer has its priorities exactly right and its shareholders should reward them accordingly.
Onésimo Alvarez-Moro
See article:
Pfizer has scrapped its most important pipeline drug because of safety concerns, damaging the image of the world’s largest drugmaker and throwing its outlook into jeopardy.
The failure of torcetrapib, a late-stage experimental cholesterol drug, clouds Pfizer’s financial outlook from 2010 and is likely to put pressure on the group’s shares on Monday.
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