A big-market, wealthy team, the Yankees haven't won a World Series since 2000. In trying to recapture past glory, they have invested heavily in veterans and youngsters alike who frequently failed to live up to expectations.
For Pfizer, instead of a roster filled with aging players with diminishing skills, the drugmaker has an aging pipeline with a roster of former stars that have lost patent protection or will lose exclusivity in the near future. Internal R&D and collaborations haven't produced enough big winners, and Pfizer certainly hasn't been able to match the success it has had with Lipitor.
Lipitor, a cholesterol drug that is the world's top-selling medication, was acquired in the blockbuster acquisition of Warner-Lambert, which just happened to be the same year as the Yankees' last World Series victory. The approaching trouble is that Lipitor loses U.S. patent protection in late 2011, taking out 26% of corporate sales. Lipitor produced $12.4 billion in sales last year, down 2% from 2007.For several years, generic competitors have been eating into sales of former Pfizer hits such as the blood pressure drug Norvasc, the cancer drug Camptosar, the allergy drug Zyrtec and the antidepressant Zoloft. At the same time, Pfizer has endured disappointments with failed products -- the inhaled insulin Exubera and experimental compounds, most notably the cholesterol drug torcetrapib, come to mind. What Wyeth brings is a roster mixed with solid performers, untested products, aging drugs nearing patent expiration and assorted role players that will probably be shed. The question is whether Wyeth in the end offers enough to help Pfizer get back to championship form. Investors didn't appear to have much faith that that would be the case, at least in the early going. Shares of Pfizer fell 10.3% to $15.65, while Wyeth edged down 0.8% to $43.39 after spending much of the session in positive territory.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV