Schering-Plough drops another 6% and is now below $14.
Things are going from bad to worse to unbelievable over at Schering-Plough. Normally we'd have expected the dead cat bounce by now, but Schering-Plough stock, in spite of being quite oversold, is not bouncing; it is dropping faster than a cheap penny stock scam.
I guess releasing the full email record that demonstrated the rage of the ENHANCE lead investigator didn't help.
Meanwhile, the company today announced it will cut costs in the range of $1.5 billion. This indicates that Fred thinks Vytorin/Zetia sales will drop from $5 billion to around $2 billion, and his share of the loss will be about $1.5 billion.
With less than 10% cost of goods for pharmaceuticals, it is likely that his 50% share of a $3 billion loss, $1.5 billion, would result in a a profit decrease of around $1.3 billion.
New prescriptions were already down by 50% before the ACC meeting this weekend.
Meanwhile, credit rating agency Fitch Ratings said Wednesday it placed Schering-Plough on negative rating watch.