Friday, August 24, 2007

Pfizer may very well buy Wyeth, and here is why.

Barbara Ryan, an analyst at Deutsche Bank who rates Pfizer stock a "buy," says she expects Pfizer to "trade like a treasury bond" until Pfizer takes a big strategic step, like a major acquisition.

Due to a raft of upcoming patent expirations, the future is bleak for Pfizer. Among others, Pfizer will lose the blockbuster Lipitor, as early as 2010. Lipitor generated 2006 revenues of $13.6 billion, which was 28% of Pfizer's $48 billion in revenues. And Lipitor is already being hurt by generics, because Lipitor’s competition is their losing patents. In Pfizer’s most recent quarterly report, U.S. sales of Lipitor dropped 25% from a year ago; worldwide, Lipitor sales were down 13% to $2.7 billion.

Continue reading my article, here.

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