Mike Huckman of CNBC reported earlier this week here that Pfizer's streak raising dividends ended after 40 years. What does this signify for Pfizer?
Huckman reports that Miller Tabak, healthcare analyst Les Funtleyder, feels that -
"The dividend is still above seven percent which makes the company seem almost distressed." Yet, the cash hoard could turn out to be a major advantage. Funtleyder continues by writing..."longer the cost of capital stays high, the more cash on a balance sheet becomes a competitive advantage. Should we be in for a prolonged lull in the capital raising cycle, PFE may be able to buy its way out of some of its pipeline deficiency."
So say Pfizer is looking to 'buy its way out of some of its pipeline deficiency'. That could be a viable strategy. So what type of deals would they look to strike? What type of cutting edge drugs would they deem worthy to invest in? How would Pfizer strategically spend their cash?
Late this week we got an answer. Pfizer signed a drug development partnership with Auxilium Pharmaceuticals and is paying $75 million up and and up to $410 million over time if additional milestones are met. But as Huckman writes....this is not your "typical" drug partnership -
"So what makes this so unusual? Well, it's the drug AUXL is developing. It's a two-in-one for a rare disease that causes fingers to curl toward the palm and--and, no, I'm not making this up and it's not a joke--for penises that curve. The "problem" is called Peyronie's disease and it reportedly affects one to four percent of men. I'd never heard of Peyronie's until I read the press release."
I don't know about you...but if I still owned Pfizer stock...I think I would rather that they just gave me the dividend.
Subscribe to:
Post Comments (Atom)
.jpg)
3 comments:
For those of us who have Peyronie's Disease, Pfizer's decision to become involved financially is a welcome one. The reports of 1-3% of the male population is most certainly incorrect. Two of the top Urologists treating this condition report that it is more in the area of up to 9%. Most men who have this insidious condition do not even know they have it. Besides the fact that most men do not feel comfortable speaking to their own wives much less go see a doctor about their penile condition. Men fear ridicule not to mention the condition is a blow to their masculinity.
Until Auxilium and now Pfizer have stepped up to put finances into the development of a viable treatment, men have had no hope to return to a normal sex life and emotional stability. At the very least this move by Pfizer has given Peyronie's Disease the needed public attention instead of being pushed under the rug. Until one can no longer perform sexually as before, it is impossible to relate to those who cannot.
The amount of return that is possible through this decision by Pfizer remains to be seen, but knowing what men have spent chasing a cure so far, they made a good decision.
Stan,
You are correct. And I will be publishing a revision to my original comments in my next post. But again - thank you for your comments!!
Scott:
As someone who has had Peyronie's Disease for over a decade, and have worked as a moderator on a web site devoted to sufferers of the disease, allow me to add some additional thoughts to this discourse.
What it is and what it does:
Peyronie's Disease ("PD") is thought to be a wound healing disorder that occurs in the penis. When a trauma to the penis occurs, say for example, when it is bent or otherwise injured during sex, the body detects the wound and begins to apply scar tissue to the wound, much as a scar might form on a badly cut finger. The problem arises because, for reasons yet unknown, the body continues to place layer after layer over the site of the wound, and receiving no "stop" signal this process continues until the formerly elastic tissue in the penis -- responsible for the expansion and contraction during erection -- is overtaken and replaced by inelastic scar tissue. The area on the penis where this occurs then begins to pull the penis in the direction of the scar (think of pulling the reins of a horse to one side).
Instead of a normal straight erection, the penis begins to curve and can, in some cases, turn the penis into a variety of shapes, including, in a worst case scenario, what would like an upside U. Needless to say, one cannot have intercourse with a member shaped in the letter U. Often the curve is not so severe, but nonetheless, can leave a penis so bent that intercourse becomes difficult, painful, or impossible. When the latter scenario occurs, the only hope a man has at this point is to seek corrective surgery. (A highly experienced surgeon can restore function; an inexperienced surgeon can leave a man with more problems than he came in with).
There is more: along with the deformity or deformities (as this can occur on several locations on the penis) the penis may start to thin to the point where it appears as an hourglass. Or worse, one can end up with what is known as a hinging effect; that it, the penis will be erect to the point of the scar tissue deformity, and then literally, flop over like a hinge.
But we're not even close to being done describing all that PD can reap. Next comes the shortening of the penis, which can cost a man several inches of his manhood. As one might expect, erectile dysfunction is also seen as the disease progresses.
The disease process can take a few years, but a curve may literally appear overnight. When the disease finally stabilizes, several portions of the penis (the affected areas) may calcify and turn hard, like a rock. Those areas cannot fill with blood, and thus sections of the penis will have "dents" where this occurs.
As Stan has mentioned, many men are ill equipped to deal with this cruel disease. It goes directly to their sense of self confidence and that of being a man. As renown urologist Laurence Levine once observed, "Peyronie's Disease is a psychologically devastating disease". Indeed, in a well known survey more than 75% of all men admitted that they thought about their affliction "all the time".
Men will frequently withdraw from their partners due to fear of sexual failure, or at the prospect of no longer being able to satisfy their partner. They are often embarrassed but their deformity and with the shortening. The effect on the health of a marriage can likewise be devastating. Many men will not go to the doctor, and will not talk to their partner about their fears and feelings.
While most men will retain sufficient functionality to engage in sexual intercourse, it will never be the same as it was before PD. And their penis will never be the same. For many men, this leads to depression.
Who gets Peyronie's Disease?
Though the disease is most often seen in men of European descent, no race is immune. I have corresponded with men from every continent.
PD typically affects men in middle age, but has been seen in teenagers.
How big is the market for a successful cure or treatment? Well, 6 to 9% of percent of men is a lot of men. Next time you are in a movie theater or at a ball game, look at the audience. Count every six men or every nine men. That's a lot of men. A very large patient population.
How come you have not heard of it? As you might imagine, men are not eager to talk about it, and certainly not in public. It's a private disease that sadly one cannot -- or does not -- share with friends. Support groups are very hard to organize as men are too ashamed to publicly discuss what is fundamentally a very private issue.
What would people pay for a cure? In a word, anything! Men are desperate to arrest the disease before it wreaks havoc with their penis. They are desperate to avoid risky surgery which can in some instances leave a man worse off than before the surgery. In short, there are millions and millions of men who would pay almost any amount if they could get a cure, or even arrest the disease.
Peyronie's Disease, and it's cousin, Dupuytren's Contracture (of the hand) are serious diseases that, in an advanced stage, can render a penis or a hand virtually useless. (Dupuytren's could easily end the career of a surgeon or a pianist, or anyone who works with their hands).
The prospect of meaningful treatment would be a god send, and the Pharma company that steps forward with a successful course of treatment stands to reap huge rewards.
Post a Comment