Is the tap running dry for Pfizer Inc. (PFE)? Pfizer’s tap sprung a leak in 2011 when U.S. patent protection for two of its biggest drugs, Lipitor and Protonix, ended. Generics were quickly waiting in the wings to start a new flow of cash away from Pfizer. Other major drugs will face similar demise into the generic watershed over the next few years.
Pfizer is a biopharmaceutical company, focusing on the discovery, development, manufacturing and sale of drugs for people and animals globally. Pfizer’s market cap of $177.59 billion and P/E ratio of 20.1, higher than the industry average of 17.6, makes it a worthy stock to investigate. The company provides a solid stock price performance, growth in earnings per share and net growth that is compelling.
Is Pfizer’s pipeline of possible replacement drugs large enough to open the waterfall of investments? Currently, Pfizer has 87 drugs in its pipeline in either early or mid-stage trials. Eleven drugs, however, are reaching registration. Nineteen are approaching registration in Phase 3 trials.
Pfizer is smart enough to have a broad range of drugs in the pipeline. The basket mix breaks out with a balanced blend of drugs – Vaccines 5%, Inflammation and Immunology 14%, Cardiovascular and Metabolic Disease 17%, Neuroscience and Pain 20%, Oncology 26% and other drugs complete the pipeline at 18%.This strategy appears to have Pfizer out in front over its rivals. Eli Lilly and Company (LLY) is also gazing into a bucket of loss of revenue due to patent expiration. Eli Lilly finds itself with a similar pipeline of 62 drugs in phase 1 through phase 3 stages. To continue reading, click here.