this is the first full quarter without lipitor sales. the drug lost its patent protection last fall. lipitor sales plunged 71%, thanks to generic versions. the stock fell a fraction. just last week, it was at a 52- week high. shares have been rallying as pfizer concentrates on its drug- making businesses. last week, it sold its nutrition unit to nestle for almost $12 billion. it's also considering separating its animal health unit, possibly in a stock spin-off. it is a private equity deal for restaurant chain p.f. chang's china bistro. the company will go private in a $1 billion buyout as it works to turnaround its struggling business. shares shot up 30%, and closed just above the buyout price of $51.40 per share. that indicates the market thinks a higher price could be coming. but the chain can entertain competing buyout offers for the next month. another struggling business is sears. it's talked about selling its lands' end unit, while it closes some of its stores in an effort to turn around sales. today, the company told shareholders,

the second drug, lipitor, everybody knows about lipitor. it's a cholesterol-lowering drug.he best-selling pharmaceutical ever in the history of the world. according to a 2008 "new york times" rofrt, a pay -- report, a pay for delay settlement delayed generic entry into that market, the entry of a generic version of lipitor by 20 months. the same report stated that the generic version of the drug was estimated to sell for less than a third the cost of the brand name, brand-name lipitor. and it pointed out that the brand-named lipitor had earned $12.7 billion in sales the year before. according to a letter sent to the f.d.a. director hamburg last year from some of my colleagues in the senate indicating that the federal government was spending $2.4 billion a year on lipitor, they estimated that bringing a generic version to market would generate somewhere between $4 billion and $6.7 billion in savings annually. two people who are -- to people who are purchasing this drug in this country. the second example is provigil. this is a sleep-disorder drug. and due to the pay for dela

we're admitting new medicines that will add as much value as a lipitor would've a decade ago. >> now're seeing human genome, suddenly like glaxo which i've recommended, they've had to resort to a hostile takeover to get new drugs. >> this is not an unusual story. all the big pharma companies are big, they have huge revenue bases and they're losing big products. so they have to go out and get more products. their labs are only a certain amount of productivity they can expect. but there's so much excitement out in biotech, it's a good place to go hunting. >> we know that the fda costs a fortune to develop a new drug. maybe only those kinds of companies have the financial wherewithal. how can companies like alkermes compete? >> there's a sweet spot for companies about our size. you don't want to be so small where you don't have enough money, people, and experience to develop drugs, but if you get too big, you're bureaucratic and slow and risk-averse. so a company about our size, $2.5 billion market cap, we've done this before, know how to make medicines and know how to get them approved

i have to take lipitor. it would be a good idea. >> is that a drug of some kind?ion figure. >> it is called living a balanced existence. the thinking is nobody can control himself enough to have one or two cookies. >> did you have baked koala? >> you start with the koala and go to the kangaroo. >> you said kids should start selling drugs which i condemn completely. but how will they be able to pay for their instruments for their school band if they can't sell food. >> i will see you school bands and raise you athletic equipment. that's where the bake sales go to. a case could be made that was the athletic equipment and not having the bake sales you are making them fatter rather than thinner. >> you have to work it off. >> and i tell you something, i like making cases. >> is it a case full of cakes? >> it is a case full of kisses. >> what is going on between you two? >> he is gay for me. >> isn't this a great way to make money? it is a great lesson for kids. they will learn more from selling something in a capitalistic society than they would learn in the classroom

psst lipitor of california's halfway down with four stages let left to go.ere is how the 49ers look at their may minicamp. >>gary: we have our first american female boxer to qualify for the olympics. she will represent the united states at the live big games it landed a bit of this summer. >>pam: we will see you tonight at 11:00 p.m..

this is nothing compared to when muhammad ali lipitor to.i cannot be on the outside looking in, but i cried for five minutes when it was over. tavis: that is a great story. thanks for sharing. >> thank you very much. tavis: good to have you here. we will be talking months from now. good to see you. that is our show for tonight. see you back here. thanks for watching, and as always, keep the faith. >> for more information on today's show, visit tavis smiley at pbs.org. tavis: hi, i'm tavis smiley. join me next time for a conversation with -- matthew weiner on the return of "madf men." see you then. >> every community has a martin luther king boulevard. it's the cornerstone we all know. it's not just a street or boulevard, but a place where walmart stands together with your community to make every day better. >> and by contributions to your pbs station from viewers like you. thank you. >> be more. >> be more.

or i go to my doctor's office, and this is based on your gino and lifestyle, we need to put you on lipitor and need to exercise more, right? that is service, right? let me take you to computers. visualize the amazon website for a second. what are they trying to do there? they are not trying to deliver information that is personal to you, right? people like you bought this. people like you listen to this, right? i will ask a question. for the technical people in the room, where is the transaction processing system on that web page? i will tell you the answer -- it is that little shopping cart in the upper right-hand corner. most of us in the tech field -- i have been around for a while -- we have all worked on the shopping cart. we have worked on transactions, processing systems, they met. how important is it on the web site -- it has to work, and has to work in scale, and all that, but it is not very important, right? what is important is they are trying to deliver information that is personal to you. let's take our favorite banking website. go to the website. you have to log in, right? fr

lipitor. league.

i said because of lipitor. do you take lipitor? he size i do. >> what about you?n't. >> former new hampshire senator judd gregg. >> do you help fiez they are quarter? >> you guys used up by my calculation $4 a gallon. you guys used up my entire salary -- >> you know, what i watched -- it has a digital read out for the guest host and as far as i drive it it did not move. >> by an eighth of a tank. >> how big are the tanks? >> it doesn't get great -- >> it not going to hit the cafe standard. >> can you turn on a dime. >> if they're not going to hit the cafe standard -- >> they shouldn't be in business, i agree. >> profits are so over. >> they make a profit? >> yeah, they do. they pry trito. we'll hear about that. >> we have richard branson in the 8:00 hour. he has interesting views about profits. >> this is such a neat case, delta airlines confirming it's biography conoco phillips refinery near philadelphia. this is the first ever attempt by an airline to own a refinery as they look for ways to battle -- usually i get a "seinfeld" sound. there it is. >> joining us f

but lipitor is a well-telegraph story. only 10 milligrams, though. so i'm very proud of that. haven't they put it in the water yet? >> they should. >> we should mention chesapeake is out a point or two. it does appear to have reached assetlement. by the way, he will no longer be chairman. and you heard kate kelly, their biggest shareholder, 13% holder really seems to have spoken up and said you guys have got to do something about this. as somebody has said on twitter, the board has gotten real. pf chang is being bought. >> yes, 30% premium. it's a private equity deal. despite incredibly low financing and willingness to finance deals, certainly of this side, i'm surprised we haven't seen more activity like this. >> they were trying to install new lunch menus and wundt happening quite fast enough. >> right. a true leverage buy out where a current company will stay in. >> of course, they do get a better tax rate because they get to treat it as a capital gain from here for the ceo. it's another reason why p-e can compete very effectively. >>. >> net income is up by a third. but th

with sales of lipitor rapidly declining, pfizer is counting on drugs in late-stage development to reviet lies growth. >>> another major pharma story as well. vertex up 47.5%. >> it's because of better than expected result out of a still on gone phase-two study on adults with cystic fibrosis so far they have all seen improved lung function of the very good news. they're hoping sales will be very very strong in the coming years. back in november there were worries it was losing grournd as it tries to compete. as you can see here shares have almost doubled making up considerable ground since november. >>> summer movie season under way. superheros leading the charge. lights, camera. >> after john carder bomb, disney needed a hit. marvel's "the avengers" had the biggest hit in the u.s. opening ever bringing in $207 million in the box office. the movie is on track to surpass $1 billion of the global box office justifying disney's $4 billion acquisition of marvel and it will help compensate for the write down they're taking on "john carter." we'll have a interview with bob iger. sue, over to yo

i take lipitor, i pay much more than if i ran across the border to buy it, and that's because there's a lobby to ensure that it's brought in by the pharmaceutical corporations that want to make sure that prices are kept at a certain level. they have a connection with congress, it's not to help me or anybody else buying lipitor or anybody else in the middle-class they want to make sure that the pharmaceutical companies make a lot of money and keep their money, isn't that true? it's sort of an unfair, uneven playing field. >> we would all agree that we have to guard against any sort of rent seeking on the part of political interest groups when it comes to our government. we got to guard against it is every possible way we can and it's always a risk -- >> but that's lobbying in general. >> when you look at the micro you see a lot of lobbying going on back and forth between all sorts of different groups. when you step up to the macro, let's look at the two most important issues, taxes, in the u.s. the top 1% is paying a much higher percentage of the taxes than europe and japan, if you loo

they're not just -- people pop lipitor before they have a steak, i kid you not.y're loaded with caffeine and sugar, two that i don't want to be in. monster uses an ingredient called gaurana, not gauno, but gaurana, a berry that's packed with naturally occurring caffeine. and more important, fda hasn't checked off on gaurana. a couple serious health incidents here and there and you can see the government causing some real problems. that is a risk. plus, there's always a chance that red bull goes after monster on price, creating the kind of -- hmm? maybe it's better than i thought. creating the kind of vicious profit-killing competition we've seen between coke and pepsi over the years. i point all this out because it's easy to imagine how monster could hit a wall and get crushed like an empty can. make sure that people don't know that we shook them up. anyway, so what do you do when you have this combination of hypergrowth and high risk? listen, guys, it is speculative friday, after all. we've been on data by can request for options strategies. i think options are

this fake lipitor pill looks so authentic, they had to superimpose a diagram of an actual pill to seeat the number 20 did not match up. >> with the naked eye, you cannot see this. >> as they say in india, you could manufacture anything. there's no limit. >> balbir bhogal was arrested in madison, wisconsin, for allegedly trafficking counterfeit drugs. he's also accused of providing millions of antianxiety pills from india to a website operator for a site with a common, seemingly harmless name. >> he was running an internet pharmacy, which is actually, i discovered recently that it's a website, "easy meds 4 u." >> easy meds 4 u? >> yes. he had lots of lots of supplies. >> you've never met him. >> never met him. >> it's a total virtual world. >> absolutely never met him, and i didn't even believe what his name was real or not. >> bhogal maintains his innocence and claims he was only supplying anti-anxiety medicines with the proper formulation and thought it was for the asian market. the government says he knew the pills were illegally coming into the united states. were you worried at al

. >>> first it was pfizer's blockbuster drug, lipitor. now bristol-myers top selling drug. you see shares a penny higher right now. seema mody's on the pharma beat. >> last quarter plavix brought in about a fifth of bristol's total revenue. but sales are expected to plunge after the blood thinner goes off patent and lower cost generics become available. analysts at isi group tell me they estimate a 40% drop in quarterly sales. so to compensate, bristol has been working to develop the next blockbuster drug. at the top of its list, an experimental drug thinner awaiting fda decision in late june. bristol among several players competing to launch new hepatitis c treatments recently making a $2.5 billion acquisition. bristol is on a spending spree buying up promising early to mid-stage sized biotech firms. analysts say future acquisitions will most likely be in the cancer and immunology space. all in all, tyler, bristol is hoping its strong pipeline and series of smart acquisitions will carry the company through the losses of plavix. back to you. >>> matt cheslock back with me.

. >>> pfizer has lipitor for cholesterol. i'll take three.ol myers, common drugs to treat common conditions and investors have made big bets based on them. but are disease fighters a possible good bet for your money? seema mody on the pharma beat. >> that's right, tyler. pfizer thinks so. in an effort to deal with the loss, pfizer is presenting a drug to a panel that advises the fda. it treats a rare genetic disease that impacts a small patient pool of 8,000 people worldwide. yes, limited customer base, but pfizer could essentially own a piece of what could be a lucrative market. a trend we witnessed in the pharma space, getting that first-mover advantage allows the drug giants to dictate pricing. while the advisory panel will make their decision tomorrow, the fda has already expressed a lot of concern around this drug. but pfizer telling cnbc that its data provides substantial evidence that support an approval. ahead of that meeting the stock trading in negative territory. sue, over to you. >> thank you very much, seema. so let's bring in je

and it doesn't come with lipitor.i'm going right for a big mac, fries and a diet coke. >> the trading day is young. and so is jim crimer. a lot more "squawk on the street" still ahead. i'm freaking out man. why? i thought jill was your soul mate. no, no it's her dad. the general's your soul mate? dude what? no, no, no. he's, he's on my back about providing for his little girl. hey don't worry. e-trade's got a totally new investing dashboard. everything is on one page, your investments, quotes, research... it's like the buffet last night. whatever helps you understand man. i'm watching you. oh yeah? well i'm watching you, watching him. [ male announcer ] try the new 360 investing dashboard at e-trade. >>> cut the theme, carl. as we get the options trading. what will they tell us about when the next faisbook is likely to trade. we'll have someone on the program who thinks they can make 40% over the next nine months. and also we'll kwft qualify for the next stock market what a great exit would do here. of course, not a g

it is the best-selling pharmaceutical drug in the history of the world, lipitor. according to a 2008 "new york times" report, pfizer and generic manufacturer brann baxby laboratories agreed to a settlement with the entry of a generic into the market by 24 months. the same agreement reported that a generic of the drug was estimated to sell for less than a third of the cost of the brand name lipitor, which had earned $12.7 billion in sales the year before. a letter sent to the f.d.a. director, director hamburg last year by some of my colleagues in the senate indicated that the federal government was spending $2.4 billion a year on lipitor and that a generic version was expected to generate $3.97 billion to $6.7 billion in savings annually. a final example on this chart here that i wanted to mention is provigil. this is a sleep disorder drug, a generic version of which could have come to market as early as december of 2006. however, due to pay-for-delay settlements, a generic version of provigil just entered the market this year instead of 2006. in addition, in octob

. >> biggest news is clearly this is the first quarterly earnings report after lipitor went off patentrotection. obviously this is not new news. the contingency planning around this has been will place for years. but nonetheless, this is the first earnings report after that happened at the end of november. so we'll see how sthat shapes u. paramount in invest ors minds when looking at phase epfizer i are they doing for not just the short term, but for the long term. how will they spend that amazing war chest of cash that they've got, will they do stock buy backs, will they potentially acquire small bioteches. or will they look for a massive acquisition along the lines of the $68 billion wyeth deal. it's always interesting to watch. in many ways it's a bit of a dinosaur, on the other hand, it's a dinosaur with teeth. and it can go and gobble something up in a big way. so always interesting to see what their earnings reports will reveal. >> we also have the recent sale of the resin fapt nutrition business to nestle. is there any chance we could hear there will be a dividend hike? >> my un

lipitor, a lot of people, so many people ask minute that you might know, so many people take this.treet journal" reports that the generic is coming in today. pfizer pulling the plug on the catch cow. company spent more than 87 million promoting the medicine, but now said to be quietly giving up on its once great cash generator. big gest drug in the world because more generics will soon be going on sale. >> they thought maybe this was the way that other companies would deal as generics came on, but thatment would be the case. >> and how to today's national weather service. raining again here. alex wallace joins us from the weather channel. >> how is it going? you named it, wet for sure. and socked in across the northeast. but the good news is there is a back edge to this mess and it's just about on top of new york city. so maybe another couple of minutes of some of the light rain in new york and then things will start to dry out. all thanks to this will storm system starting to exit, so we'll again start to see shinkss improving there. so the forecast for today, more than rain acros