Biotech Values

[DewDiligence]

PFE’s 2012 non-GAAP EPS guidance is $2.20-2.30, a reduction of $0.05 relative to the prior range (#msg-65791666) that is entirely due to the effects of foreign exchange. (I.e. the US Dollar has strengthened relative to most major currencies since the prior EPS guidance was issued, which reduces PFE’s 2012 foreign earnings when expressed in dollars.) Here is PFE’s 4Q11 PR:

http://ih.advfn.com/p.php?pid=nmona&article=50964778

At the $2.25 midpoint of the new 2012 guidance range, PFE is trading at a P/E of only 9.6x; it remains a compelling buy, IMO, despite having been one of the best performers in the S&P 500 during the past year or so.

As has been stated on this board ad nauseam, PFE is a strong beneficiary of The Global Demographic Tailwind. Regardless of what happens with PFE’s pipeline of patented drugs—which includes such standout opportunities as Eliquis and Tofacitinib—PFE will make a lot of money selling branded generics in emerging markets.