Because the company has little power to control pricing, it's at best a mid single-digit percentage earnings grower and even most of that is due to stock buybacks - not internal growth.
Honestly now - why would investors want to pay more than the current 13 PE multiple for 5% growth and a rather pedestrian 3.3% dividend? Especially when down the road it's very likely that we will see "negotiated" domestic Medicare.
I see Pfizer at $29 as being essentially dead money. That's not to say it can't get to say $32 or so but there are plenty of companies out there with much much better prospecte than that. Topping my list right now is the dominant search engine BIDU which is selling for only about the same multiple as Pfizer relative to 2014 consensus expectations but which after 2013 is expected to be a 25% annual earnings grower as compared to 5% for Pfizer.
The bottom line is this: When paying 12 to 13 times expected 2014 earnings, which would you rather have - a 5% earnings grower paying a 3.3% dividend or a 25% earnings grower paying no dividend? For me, the choice is clear - to hell with the dividend - give me the growth.