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Dear Max: Own Pfizer and intend to buy more right after the first of the year. PFE is a bellweather drug stock with a decent dividend. I see it in the $24 range by 2012 year end. Regards, Ted
Can't get excited. Pfizer has reduced expenses by cutting R&D spending and is losing ground to generic versions of Liptior, one of it's biggest cash machines. While they may have some new products coming down the pipes, it will be hard to sustain dividend growth without R&D other than through acquisitions like Wyeth.
Next dividend will be .22 cents, growing 10% from the present .20 cents. I saw the announcement just a week or two ago. I'm holding it, not buying more. Ethical qualms. But though PFE was in the doldrums for several months, it surged just lately at the end of '11.
Interestingly, FAIRX sold PFE in early 2010 and started buying financials. Talk about perfect timing. See the chart of pfe vs. bac for the last two years.
Reply to @Maurice: Lipitor patent has expired already (June 2011). Pfizer had made an agreement with India based Ranbaxy Laboratories to keep it out of market until November 30th which also expired.
Now, Pfizer has its own "authorized" generic Lipitor manufactured by Pfizer and sold by Watson Pharmaceuticals. FDA has already approved one from Ranbaxy as another generic for sale. There is another one from coming from Israel based Teva Pharmaceutical soon.
Right now Pfizer has cut deals with insurance companies for 6 months and it will slow down initial ramp-up but also cost Pfizer some revenue. After 6 months the generic will sell up to 80% less. When generic supply is more common, the insurance companies will force users to switch to the generic. There will be a very significant drop in sales/revenue for Pfizer. Has it been fully baked to the price, I don't know. I believe Pfizer will get a hit more.
Just started reading a fascinating book on patents and pharmaceutical industry called "Deadly Monopolies: The shocking corporate takeover of life itself - and the consequences for your health and our medical future./ by Hariet A. Washington".
Comments
Regards,
Ted
http://seekingalpha.com/article/304106-ranking-drug-company-dividend-stocks-by-risk-and-growth
Talk about perfect timing. See the chart of pfe vs. bac for the last two years.
http://finance.yahoo.com/q/bc?t=2y&s=PFE&l=on&z=l&q=l&c=bac
Now, Pfizer has its own "authorized" generic Lipitor manufactured by Pfizer and sold by Watson Pharmaceuticals. FDA has already approved one from Ranbaxy as another generic for sale. There is another one from coming from Israel based Teva Pharmaceutical soon.
Right now Pfizer has cut deals with insurance companies for 6 months and it will slow down initial ramp-up but also cost Pfizer some revenue. After 6 months the generic will sell up to 80% less. When generic supply is more common, the insurance companies will force users to switch to the generic. There will be a very significant drop in sales/revenue for Pfizer. Has it been fully baked to the price, I don't know. I believe Pfizer will get a hit more.
Just started reading a fascinating book on patents and pharmaceutical industry called
"Deadly Monopolies: The shocking corporate takeover of life itself - and the consequences for your health and our medical future./ by Hariet A. Washington".
http://www.npr.org/2011/10/24/141429392/deadly-monopolies-patenting-the-human-body
http://www.npr.org/books/titles/141429504/deadly-monopolies-the-shocking-corporate-takeover-of-life-itself-and-the-consequ
I put the forbes and huffington posts links in for maurice (don't know if he listens to public radio
http://www.forbes.com/sites/michaeltobias/2011/12/20/biological-shock-treatment-a-discussion-with-deadly-monopolies-author-harriet-a-washington/
http://www.huffingtonpost.com/2011/10/21/deadly-monopolies-an-excerpt-from-harriet-washingtons-book_n_1024356.html
http://www.facebook.com/Israpalestine/posts/305646269473795?notif_t=share_reply