Biotech Values

[DewDiligence]

Sanford Bernstein’s Tim Anderson is at it again; he’s now touting the notion that PFE will sell off “non-core” businesses. This is hardly an original idea, but Anderson is dead wrong, IMO, about PFE’s plans for its so-called Established Products division:

http://online.wsj.com/article/BT-CO-20110314-708734.html

Anderson sees the potential for Pfizer to spin off five of its nine distinct business units: animal health, consumer health, nutritionals, Capsugel, and established products. The biggest unit would be Pfizer's established-products division, which includes generic drugs. Anderson said this unit generated sales of $10 billion for 2010, but probably would grow to $17 billion in coming years when Lipitor and other products lose patent protection.

He doesn’t get it—PFE’s Established Products division is the vanguard of the global pharmaceutical industry, as detailed in #msg-59590951.

Anderson gets my vote for the honor of least trustworthy drug/biotech analyst on Wall Street. For those who may have forgotten, Anderson is the analyst who trumpeted in Aug 2010 that Teva’s Lovenox approval was imminent (#msg-52999229).