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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) 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: tips@thestreet.com.

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

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