This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pfizer Faces Hazy Future Beyond Lipitor

More growth could come from additional acquisitions. The company has made five deals this year alone.

Gabelli's Jonas also points to Pfizer's partnership with Bristol-Myers Squibb (BMY - Get Report) for Eliquis as potentially generating more than $3 billion in annual sales to be split between the two companies. The drug, which is used in atrial fibrillation, is currently under priority review by the FDA and Jonas anticipates a decision being made by the end of March.

Those points aside, "Near-term, nothing will make up for the loss of Lipitor," Jonas said. "It's even too late to acquire something to try to fix it ... You've not going to see really great growth from this company through 2015."

Pfizer's own outlook for fiscal 2012 reflects this as the company is targeting revenue of $62.2 billion to $64.7 billion, down from its projection for revenue of $66.2 billion and $67.2 billion for fiscal 2011, which ends this month.

So why own the stock in the meantime?

Jonas cited Pfizer's quarterly dividend of 20 cents a share, which translates to a forward annual dividend yield of 4% at current stock levels. That's more than double what the 10-year Treasury bond is paying these days. Jonas also notes that the company's valuation lags most of its peers.

Pfizer trades at a little less than 9X the consensus estimate for earnings of $2.31 per share in fiscal 2012. Bristol-Myers Squibb has a forward P-E ratio of 16.7X, while Merck's P-E ratio sits at 9.3X, and GlaxoSmithKline (GSK) trades at 12.8X. Pfizer shares were trading at $20.55 in afternoon action, up 1.7%.

-- Written by Alexandra Zendrian in New York.

>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to:

>To follow the writer on Twitter, go to Alexandra Zendrian.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WPI $85.73 0.00%
ABT $38.90 0.00%
BMY $72.18 0.00%
PFE $32.71 0.00%
TEVA $54.45 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs