And I'm not talking about Vegas hookers either. In the last hour, PFE mounted a pretty decent rally - going from $23.08 to $23.39.
An excerpt from your post: 'I don't care where those drugs initially came from' - Unfortunatley investors do care. It is possible that PFE can buy another successful drug such as Lipitor that they purchased from Warner-Lambert. Generally speaking however, it more expensive to buy drugs compared to developing them which PFE doesn't seem to be able to do. Buying drugs is okay once in a while. If it is done too often it cast serious doubts on the capability of the pharma's R&D staff. Perception or 'image' is everything when it comes to investing and this inability to internally develop new drugs represents a serious 'image' problem for investors. Also why should PFE fork out billions of dollars for buying a new drug when it already invests 8 billion dollars a year to its own R&D staff for developing new drugs. Even PFE doesn't have infinite funds to sink into new drug development. Investors are well aware of this shortcoming and, on the other hand, they have also been shown time and time again that MRK can sucessfully develop drugs from its own pipeline with a lower R&D budget than that of PFE. Therefore, in the minds of investors, MRK appears to be technically more savvy and efficient than PFE and therefore MRK is getting their investment dollars, not PFE, even in spite of the Vioxx issue. The ball is clearly in PFE's court to prove to investors that it too can successfully develop new drugs with that 8 billion dollar budget which they have not been able to do for a long time. Until that happens, PFE stock will continue to flounder and MRK stock will continue to go up. Plain and simple.
I knew that. I'm being lenient. Counting both pipeline and acquired drugs, 3 in 6 years for a $155 Billion market cap company, after the decline, none of which are even mega blockbusters, just isn't good enough.
For a company Pfe's size, and given the loss of Torcetrapib and Exubera and the fact that nothing else meaningful is coming before Lipitor goes generic, these 3 drugs are hardly impressive. Aren't they basically the pipeline results for a total of 6 years, i.e., 2005-2010? Unless I'm missing something important, (spare me the animal drugs) that is NOT very good at all.
<<<What DOES mean a lot is PFE's best-in-the-business net margins with attendant low costs and its ability to continue buying back shares. Much of the lost revenues are made up naturally by annual drug price hikes, population growth in developed countries, ramp-ups of previous launches, much more business from populous third-world countries and baby boomers starting to turn 65 in 2011. And then of course utilization of PFE's large and growing cash hoard either to make accretive acquisitions or to buy back shares or both.>>>
The margins are deceptively high. Once Lipitor goes generic and all the benefits in joint sales, marketing and advertising and the heavy allocation of S,I&A to Lipitor are gone, margins will be similar to other big pharma. All your add-ons are dubious and invalid without being offset with subtractions, including serious regulatory risks and new competition coming for e.g., Sutent. Acquisitions, even according to you, will be 20% in the Coly mode, i.e., dilutive. It could be much more.
Beyond all that, the Kindler discount cannot be ignored. While things can change, FOR NOW there is a complete lack of confidence by big money in Kindler to accurately give guidance, to make the right acquisitions, to skillfully decide which drugs in the pipeline should be pushed, or anything else. More than anything, Kindler's non-performance, obviously acquiesced in by the Board, is killing the stock.
And I don't hear the Dumbass talking about how the JFM's caused the PFE price to rise before the ex-divided date!
Or how he forgot something that was posted to him a dozen times in the past few months.
You stupid dumbfuck!
All it did was follow the S&P, while underperforming both indices & its sector!
Price action is meaningless unless it diverges from programmed buy & sell massive index trading.
When has PFE ever shown that "pros" were buying rather than selling since 1999?