Pfizer (PFE), Sanofi-aventis (SNY) And Infant Deaths

Pfizer (NYSE:PFE) and Sanofi-aventis (NYSE:SNY) are under intense scrutiny in Japan concerning their Prevnar and ActHIB drugs, having them suspended in the country as a result of the death of four infants.

The four babies died after they were vaccinated with the drugs in combination with other vaccines.

While the U.S. and some analysts are already circling the wagons around the two companies, there can be no doubt something is wrong in light of the four deaths.

That's not to say it's not a narrow circumstance like a bad batch, although that's unlikely because they came from different lots. Problems in multiple lots could be a possibility, although not a probability.

The problem when dealing with the death of children is the emotional attachment to the situation makes it almost impossible to undo the damage from the situation.

It could have a profound long-term impact on both companies whether their vaccines are cleared or not.

With many pharma companies struggling because of weak pipelines, this is a potential disaster.

Sanofi-Aventis closed Monday at $35.31, down $0.23, or 0.65 percent. Pfizer closed at $19.61, down 0.05, or 0.25 percent.