|Bid||0.00 x 21500|
|Ask||0.00 x 1400|
|Day's Range||47.85 - 47.97|
|52 Week Range||12.56 - 47.98|
|Beta (3Y Monthly)||1.65|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Pfizer (NYSE:PFE) is spinning-off its off-patent drugs business, Upjohn, into a new venture with Mylan N.V. (NYSE:MYL), maker of the EpiPen. The PFE stock price dropped and MYL shares popped on the news of the all-stock pharma mega-deal.Source: Shutterstock Under the deal, Mylan shareholders get 1 share of the new company for each of their shares, and 43% of the resulting stock. Pfizer shareholders will get new shares representing the balance. Mylan shares initially jumped 20% on the news but quickly lost half that gain by July 30, opening at $20.66, offering a market cap of $10.7 billion. Pfizer stock was down 6.43% yesterday.In the process, Mylan CEO Heather Bresch gets to retire ahead of her father. Bresch is the genius behind the 500% EpiPen price hike that followed her taking over the role in 2011. Her father is West Virginia Sen. Joe Manchin.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMylan chairman Robert Coury, who will be executive chairman of the new company under Pfizer executive Michael Goettler, threw Bresch under the bus during a conference call. He promised a "180-degree turn" in the company's direction. Remember TevaMylan would have done better had the company taken a $40 billion merger offer from Teva Pharmaceuticals (NYSE:TEVA) in 2015, but it refused to go along. Teva later spent that money on the generics business of Allergan (NYSE:AGN) but has since fallen hard and is worth just $8.6 billion under the lead of Kare Schultz, the would-be savior who was id'd last week as the second-highest paid CEO in pharma. * 7 Oversold Stocks To Buy Right Now Something like that may be in store for the new company. Generic drugs are a low-profit, commodity business. Such drugs, lacking patent protection, are subject to global competition. Among the products that will go into the new business from Pfizer are former blockbusters like Lipitor, Viagra and Celebrex. Total revenue from the new company is estimated at $20 billion. Mylan had 2018 sales of $11.4 billion and net income of $352 million. Pack Up Your TroublesMylan stock had fallen almost 40% in 2019 prior to the news. A big revenue miss in its first quarter report, announced in May, initially sent the stock down over 20%. Analysts then told investors to sell amid an EpiPen shortage.The deal is classified as a "reverse Morris trust" to avoid taxes, with Pfizer divesting the Upjohn business, then merging it with Mylan. Upjohn production is based in China, and first quarter sales were estimated at $3 billion. Pfizer had first quarter sales of $13.1 billion.The EpiPen scandal has proven embarrassing to the whole industry. After becoming Mylan CEO Bresch put TV ads and extensive lobbying behind the EpiPen. She pushed it as a must-have for schools and parents. She also pushed wholesale prices from $103 for a two-pack of plungers in 2010 to $608 in 2016. The drug administered by the EpiPen, epinephrine, costs just 33 cents per dose, and the EpiPen itself was said to cost $5 to make. * 7 Semiconductor Stocks to Buy for Your Inner Geek The deal also buries a Q2 revenue miss for Pfizer, which earned $5.05 billion, 80 cents per share fully adjusted, on revenue of $13.26 billion. The revenue number fell $70 million short of analyst estimates, and the company cut revenue guidance for the full year by $1.5 billion. Pfizer is shedding low-margin businesses and buying higher margin ones like Array BioPharma (NASDAQ:ARRY) as it tries to get its stock price higher. Bottom Line on Pfizer StockThe Pfizer-Mylan deal is a way to bury the EpiPen scandal. A lot of lobbyists and marketing people are likely to lose jobs as the companies consolidate. Mylan shares that were worth nearly $80 each are now worth barely $20. Pfizer stock is off more than 11% in the past month.On the other hand, Pfizer has a chance to increase its margins, as it won't have low-margin generics in its portfolio. Investors buy Pfizer for its 35-cents per share dividend, which yields 3.37% at the company's July 30 price and is well-supported by earnings. That remains the play.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Here's How Pfizer Stock (and Pharma) Stand to Benefit From Mylan Deal appeared first on InvestorPlace.
Pfizer (PFE) beats estimates for second-quarter earnings but misses on sales. The company also lowers 2019 earnings and sales guidance.
Shares of Pfizer Inc. fell 3% in premarket trade Monday after the company announced a deal to merge its Upjohn business with Mylan and reported second-quarter earnings that topped profit expectations, though the drugmaker fell short of revenue estimates. Profit for the latest quarter rose to $5.046 billion, or 89 cents a share, from $3.872 billion, or 65 cents a share, a year ago. Adjusted EPS was 80 cents a share, topping the 75 cents a share predicted by analysts polled by FactSet. Revenue fell 2% to $13.264 billion from $13.466 billion in the year-earlier quarter, missing the FactSet consensus of $13.396 billion. Sales from the company's biopharma business rose 2% to $9.595 billion, while Upjohn sales fell 11% to $2.807 billion. Consumer healthcare sales fell 3% to $862 billion. Pfizer also updated its full-year guidance, taking into account its upcoming consumer-healthcare joint venture with GlaxoSmithKline Plc and the near-term closings of the company's acquisitions of Array BioPharma Inc. and biotech Therochon Holding AG. The drugmaker slashed its 2019 revenue guidance to between $50.5 billion and $52.5 billion a share from the previous guidance of between $52 billion and $54 billion a share. Expected full-year adjusted EPS is also expected to fall to between $2.76 and $2.86 a share from between $2.83 and $2.93 a share. Shares of Pfizer have fallen 1.3% so far this year, while the S&P 500 has gained 20.7%.
While Pfizer's (PFE) key drugs like Ibrance and Xeljanz are likely to drive Q2 sales, genericization of some older drugs will hurt the same.
Investors have shrugged at Pfizer’s acquisition of Array BioPharma. Cantor Fitzgerald analyst Louise Chen says it could be a huge opportunity.
Array BioPharma (ARRY) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
New results from a colorectal cancer study by Array BioPharma appear to validate Pfizer’s decision last month to acquire the drug company.
As we start the latter half of the year, markets face uncertainty as to how the trade wars will develop, what the Federal Reserve will do next and whether the tensions with Iran will keep heating up. I am going to discuss three Dow Jones Industrial Average stocks that are appropriate for long-term portfolios: Pfizer (NYSE:PFE), Coca-Cola (NYSE:KO) and McDonald's (NYSE:MCD).Having a long-term focus enables investors to patiently get through the weekly noise of the markets while they relax with the knowledge that their portfolio stocks have the quality to weather short-term adverse developments. These investors do not need to make constant plans for the payment of capital gains taxes as they do not have to worry about selling their shares in the short-run. * 7 F-Rated Stocks to Sell for Summer Finally, all three stocks pay stable dividends, which adds up over the years. Income investors know that they can compound their returns through reinvesting dividends from high-yielding shares.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (PFE)Source: Shutterstock Pfizer is one of the world's largest prescription drug companies. Its global portfolio includes medicines, vaccines, and consumer healthcare products.PFE stock's commercial operations fall under three segments: * Pfizer Biopharmaceuticals Group (Biopharma), a science-based innovative medicines business * Upjohn, a global, off-patent branded and generic established medicines business * Consumer Healthcare, which includes Pfizer's over-the-counter medicinesPfizer's robust clinical pipeline has provided the company with impressive returns over the past few years. The group owns two of the world's best-selling drugs: the breast cancer treatment Ibrance and the blood thinner Eliquis (co-owned by Bristol-Meyers Squibb (NYSE:BMY)).2019 has been a big year for pharma mergers and acquisitions (M&A). In June, Pfizer announced that it would be acquiring Array BioPharma (NASDAQ:ARRY), the cancer-fighting specialist biotech, in a deal worth $11.4 billion. ARRY's two drugs, Braftovi and Mektovi, have already been approved for treating metastatic melanoma. In Array BioPharma's last quarter results, the two drugs combined achieved $35.1 million in sales.This acquisition is likely to strengthen Pfizer's long-term position in oncology, which is regarded as one of the fastest-growing segments of the pharmaceutical industry. Although analysts regard this buyout as a good decision for Pfizer, it is likely to be several quarters before the positive financial effects appear in PFE's balance sheet.On April 30, the company reported Q1 2019 earnings that came to 85 cents. Total revenue stood at $13.1 billion, higher by 1.64% year-over-year (YoY). The next earnings report will be out in late July. Most investors don't think of Pfizer as a high-growth biotech, but they do recognize it as a mature and defensive big pharma with stable revenues.If you are interested in buying into PFE stock, you may want to study the next earnings release to decide whether you should own it for the long-term. With its robust balance sheet, low volatility, and strong AA S&P rating, the shares could be suitable for diversified portfolios.PFE stock could also provide shareholders with a steady stream of income for decades to come. Pfizer's dividend, which currently stands at about 3.3%, has increased for nine of the last 10 years. Pfizer's cash flow is strong and should allow a dividend increase well into the future. Coca Cola (KO)Source: Coca-ColaCoca-Cola is the world's largest beverage company with 20 different brands that generate more than $31 billion dollars in annual revenues. Many investors have regarded KO stock as a reliable investment over the years.Coca-Cola stock tops the list of Warren Buffet's longtime favorite holdings. The Oracle of Omaha's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) owns 400,000,000 shares of Coca-Cola, worth over $18 billion. In the last quarter of 2018 when many stocks suffered sizable losses, KO was the only green stock among the top 10 holdings of Berkshire Hathaway.Yet most of this decade, KO has had its share of challenges and seen declining revenues. There has been a drop in soda sales as the U.S. consumer moves towards healthier beverages like flavored water. It is worth mentioning that despite the decline in soda sales, gross margins have remained stable at about 60%.Management has steered the company toward offering a beverage portfolio that seizes on the public's increased appetite for flavored drinks. In 2016, the company announced its "One Brand Strategy" and introduced a common visual identity and creative campaign for all brands.This year, the company introduced a U.S.-wide ad campaign for its new flavor, Orange Vanilla Coke. As a result of the changes in product offerings, cherry and vanilla-flavored Cokes account for about 9% of the dollar volume but bring in 18% of the dollar growth.KO also recently completed the acquisition of Costa Coffee, the biggest coffee chain in the U.K. Wall Street believes the purchase could lead to increased diversification away from soda and revenues, especially prompted by growth in the Chinese market, where Costa Coffee has almost 500 stores.Offering hot beverages for the first time is yet another strategic step for the group as it addresses the shift in consumer taste and purchasing behavior.As you decide what may be next for KO stock fundamentally, you may also want to think about whether the global economy or the U.S. is headed for a slowdown or recession.During periods of market volatility or economic downturn, consumer staples tend to be among the last products removed from household budgets. In other words, defensive stocks like KO may help your portfolio when the going gets tough in the markets.Despite the question marks regarding future growth at Coca-Cola, its dividends make the shares rather attractive. In February, the company increased its dividend and declared a new share buyback program. * The 7 Top Small-Cap Stocks Of 2019 The current dividend yield stands at 3.1% -- another reason why I believe KO stock belongs to a capital-growth portfolio. The next dividend payment is scheduled for July 1, 2019 to shareholders who purchased Coca-Cola stock prior to the ex-dividend of June 13. McDonald's (MCD)Source: Shutterstock McDonald's operates in the fragmented food service industry, which includes competitors like Yum Brands (NYSE:YUM), Restaurant Brands International (NYSE:QSR), and Starbucks (NASDAQ:SBUX). It has over 36,000 restaurants in over 100 countries.McDonald's latest earnings results came in better than expected. Group revenues of $4.95 billion topped analysts' estimates of $4.94 billion. Management gave an upbeat outlook on long-term growth and profitability.In addition to the acceleration of U.S. sales, McDonald's stock has benefited from international growth. Comparable U.S. store sales rose 4.5%. Global comparable-store sales rose 5.4%, mostly thanks to promotional mixed-priced deals, as well as store renovations.As one of the largest fast food chains around the globe, over 90% of the restaurants are currently franchised. The franchising business gives McDonald's a competitive edge as the initial fees and ongoing royalties mean high margins. MCD's operating margins now stand at almost 30%. As the franchisees carry the operating costs and business risks, McDonald's does not have to worry about the expenses of running those operations.The company owns most of the properties where their restaurants operate and collects rent from franchisees. MCD leases those out to the franchisees, often at significant markups. It may not be wrong to say that the company is in the real estate business as much as food services.In 2015, management initiated a turnaround plan focused on making MCD more agile by slimming down the corporate structures, improving menu quality, and delivering better customer service. Almost five years later, the steps have been paying off.As part of its efforts to improve shareholder value, McDonald's has increased dividend payments since its first-ever dividend payment in 1976. The next dividend payment of $1.16 per share is expected to be paid out on Sep. 17. The current dividend yield stands at over 2.2%.On June 25, MCD stock price saw an all-time high of $206.39. Year-to-date, the stock is up 18%. Although there might be some profit-taking in the MCD stock price in the coming weeks, I'd regard any dip as an opportunity to go long the shares. The company is a core consumer staples holding for a well-diversified portfolio.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks to Buy and Hold Forever * 10 Small-Cap Stocks That Look Like Bargains * 10 Names That Are Screaming Stocks to Buy The post 3 Dow Jones Stocks to Buy for the Second Half appeared first on InvestorPlace.
Eldorado Resorts (ELR) has agreed to buy Caesars (CZR) for $8.6 billion, and a bipartisan bill in the Senate holds Big Tech accountable for monetized user data.
The S&P; 500 hit a new high as stocks soared on Fed rate cut and China trade hopes. Facebook unveiled a cryptocurrency and Boeing got a big 737 Max order. Adobe, Oracle broke out on earnings.
We highlight a few leading players from the biotech sector, having surpassed the same so far in 2019 and are likely to put up a good show during the second half of 2019 as well.
The index enjoyed another week of strong gains after the Federal Reserve indicated that a rate cut would likely occur next month.
Dow Jones component Pfizer could become a leader in colon cancer treatment with its looming $11.4 billion acquisition of biotech company Array BioPharma, an analyst said Wednesday.
A few biotechs focused on oncology or gene therapies are potential acquisition targets following the announcement by Pfizer to acquire Array BioPharma.