NEW YORK (TheStreet) -- Pfizer (PFE) shares are showing volatility, though it is currently up 0.07% to $30.36 in trading on Monday, after the biopharmaceutical company issued 2014 full year guidance that was lowered due to the company's pending drug development deal with Germany's Merck KGaA (MKGAY) .
The company agreed to pay $850 million to Merck KGaA for the rights to jointly develop and commercialize the company's anti-PD-L1 antibody cancer treatment, though Pfizer could end up making additional $2 billion in regulatory and commercial milestone payments, according to the terms of the deal.
Merck KGaA shares are up 3.1% to $31.90 today as a result of the deal.
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Pfizer lowered its full year 2014 EPS outlook as a result of the deal and now expects to earn between $1.40 and $1.49 per diluted share, down from its previous guidance of between $1.50 and $1.59 per diluted share.
TheStreet has further coverage of the deal here.
TheStreet Ratings team rates PFIZER INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PFIZER INC (PFE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."