Please ensure Javascript is enabled for purposes of website accessibility

Let's Hand Out Crestor Like Candy

By Brian Orelli, PhD – Updated Apr 6, 2017 at 12:04AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

That sure would increase sales.

AstraZeneca (NYSE:AZN) moved one step closer to sending sales of cholesterol-lowering drug Crestor to Jupiter. Step two should be easy, but it's step three that investors should be worried about.

A Food and Drug Administration advisory committee voted 12 to 4 (with one abstention) to recommend broadening Crestor's label to include the treatment of people with normal cholesterol levels and no history of heart disease. That's not a typo. A study named JUPITER ("Justification for the Use of statins in Prevention: an Intervention Trial Evaluating Rosuvastatin") showed that perfectly healthy older people can benefit from taking Crestor. Their low risk of heart-related problems becomes even lower when taking it.

The FDA still needs to sign off on the label change, but given the positive recommendation from the experts, and the fact that Crestor is already on the market, an FDA approval seems more likely than not.

The big question is whether the label change will actually increase sales. It'll open up the market to an additional 6.5 million people, but remember, we're talking about changing a small risk of heart issues into an even smaller one. Will people and their insurance agencies be willing to pay for it? After all, we're in a financial health-care crisis, you know.

AstraZeneca plans to market the drug to people who might have other risk factors for heart issues, like smokers. It won't be trying to get doctors to hand it out like candy -- for now, at least.

The billion-dollar question is whether the added protection is specific to Crestor or if other statins like Pfizer's (NYSE:PFE) Lipitor would also offer the same benefit. With Merck's (NYSE:MRK) Zocor and Bristol-Myers Squibb's (NYSE:BMY) Pravachol already available as cheap generics, it seems likely that some academic is bound to test the hypothesis if they can get funding. A cheap generic a day might actually be worth the added benefit.

AstraZeneca better have its promotional materials ready. Who knows how long the window in the candy store will be open?

Pfizer is a recommendation of the Inside Value newsletter. If you're interested in picking through the wreckage for possible turnaround candidates, you should have the Inside Value team on your side. Check it out for free with a 30-day trial.

Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
$54.58 (-3.07%) $-1.73
Merck & Co., Inc. Stock Quote
Merck & Co., Inc.
MRK
$86.78 (-0.83%) $0.73
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$44.08 (-1.10%) $0.49
Bristol Myers Squibb Company Stock Quote
Bristol Myers Squibb Company
BMY
$70.71 (-0.81%) $0.58

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.