Wyeth (WYE) Hits New 52-Week Low on Generic Protonix News

Shares of Wyeth (NYSE: WYE) are tumbling today after the Company announced yesterday after the market closed that it launched a generic version of its own Protonix acid-reflux and ulcer drug. Wyeth's stock fell by more than a dollar in morning trading, hitting a new 52-week low at $39.25, but has since pulled off its lows of the session and is now trading down $0.87, or 2.1%.

Today's 52-week low marks Wyeth's lowest stock price in more than three years. Investors are speculating that the impending wide-spread availability of generic versions of Protonix, which generated about $425 million in sales during the fourth quarter, will dampen Wyeth's sales over the next year. Wyeth said that it released its own generic version of Protonix in response to Teva Pharmaceutical's (Nasdaq: TEVA) recent launch of its generic Protonix on December 21.

Furthermore, several analysts made comments on Wyeth's launch of its generic version of Protonix, also adding to today's downside. A Citi analyst cut his FY08 EPS estimate on Wyeth from $3.96 to $3.48 on the news, and a Morgan Stanley analyst lowered her price target on the Company from $49 to $46, calling the news "disappointing".

Wyeth engages in the discovery, development, manufacture, distribution, and sale of pharmaceuticals, consumer healthcare, and animal health products.

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