Pfizer Inc. (NYSE:PFE) 15 Blockbuster Drugs, Improving Margins, M&A

Pfizer Inc. (NYSE:PFE) is moving after the company said it was planning to sell or spin-off its consumer healthcare business. The segment is based on over-the-counter business sales of several famous drugs and personal care items, including Centrum, Advil ChapStick and Anbesol. Pfizer CEO said in a statement that the consumer health business has the potential to grow and expand outside the company.

Pfizer Inc. (NYSE:PFE) has been making an effort to expand and diversify its pipeline after losing the patent for Lipitor, one of the best selling drugs in the world. Pfizer has also lost patent exclusivity for Celebrex and Zyvox. However, the negative impact of loss of patents will decrease over time. In 2018, the company is expected to take a hit of $2 billion due to patent losses. But from 2022 till the end of 2025, the loss will decrease to $500 million per year.

The company is now making several acquisitions. Pfizer Inc. (NYSE:PFE) pipeline is also promising. Pfizer’s biosimilar pipeline got a major boost after the company acquired Hospira. Similarly, the company plans to launch several cancer treatments after its recent buyout of Medivation.

Pfizer has a strong presence around the world. The company makes about 50% of its revenue from the US, while the rest comes from emerging markets and Europe. Pfizer has at least 32 late stage treatments that are currently undergoing clinical trials. At least 15 of these drugs have the potential to become blockbusters. Almost all of them are expected to be launched before 2022.

Analysts are extremely bullish on Pfizer Inc. (NYSE:PFE) rheumatoid arthritis drug Xeljanz. There is a scarcity of effective treatments in the market for RA. The market is full of anti-TNF drugs. These drugs account for about $37 billion in sales. Over 1.3 million people in the US are suffering from Rheumatoid Arthritis. Unlike anti-TNF drugs, Xeljanz is an oral therapy with less side effects.

Investors are also bullish on the growth prospects of Eucrisa, breast cancer drug Ibrance and Eliquis.

Pfizer Inc. (NYSE:PFE) shares are up 11% since the start of the year. The stock has an excellent dividend yield of 3.5%. Pfizer gross margins remain healthy. Last year, the company’s gross margins came in at 81%.