NEW YORK (AP) — Shares of the major U.S. pharmaceutical companies declined across the board Tuesday, with British drug maker AstraZeneca PLC down sharply after a Citi analyst said generic competition could pose significant risk to the company's best-selling drug in 2008.
Meanwhile, the overall markets plummeted as recession fears pressured markets worldwide.
The Amex Pharmaceutical Index, which tracks several bellwether stocks, fell about 3 percent. The Dow Jones industrial average fell about 1 percent, while the Standard & Poor's 500 index fell just less than 1 percent.
British drug maker AstraZeneca PLC trailed key drug makers on both continents, after Citi analyst Kevin Wilson said the generic risk for the company's blockbuster drug Nexium increases after August. That's when Teva Pharmaceutical Industries Ltd. is expected to launch a generic version of the drug.
Wilson lowered the drug company's price target to $49 from $50.
AstraZeneca fell $2.24 to $43.46.
Meanwhile, shares of Kenilworth, N.J.-based Schering-Plough Corp. and Whitehouse Station, N.J.-based Merck & Co. Inc. continued to struggle, following study results released on the cholesterol drug Vytorin last week. The study showed the drug was no more effective than Zocor alone in clearing plaque from arteries in patients with a genetic predisposition to high cholesterol.
In a note to clients late Monday, Banc of America Securities analyst Chris Schott reduced his Vytorin forecasts by $200 million to $400 million per year between 2008 and 2012.
Schott also lowered his Schering-Plough price target by $2 to $30 and kept a ''Neutral'' rating on shares.
Schering-Plough fell 92 cents to $20.36, while Merck gave up $1.97 to $51.35.
Wyeth was another big decliner Tuesday, falling $1.87 to $41.97. Wyeth's stock is down roughly 10 percent since September, when it failed to get a court to halt generic Protonix sales.
On Tuesday, Israeli generic drug maker Teva Pharmaceutical Industries Ltd. said the company agreed to extend its deal with Wyeth not to market a generic version of heartburn drug Protonix and continue discussions for a patent settlement.
However, Schott said such a settlement is unlikely and predicted further stock volatility ahead of Jan. 31, the date when the extended agreement ends.
Elsewhere in the sector, New York-based Pfizer Inc. fell 27 cents to $22.23 and New Brunswick, N.J.-based Johnson & Johnson fell $1.02 to $65.27.
Johnson & Johnson said earlier that its profit rose nearly 10 percent in the fourth quarter, as revenues jumped by double digits despite sales drops for two key product lines.
