Biotech Values

[DewDiligence]

BI et al re PFE pipeline:
These guys are more positive than you
are, evidently. They don’t even mention
Exubera and Indiplon, perhaps because
they’re shared products…

http://www.forbes.com/2006/01/11/pfizer-earnings-0111markets07.html

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Pfizer's Drug Pipeline Is 'Underappreciated'

Peter Kang
01.11.06

Bear Stearns maintained an "outperform" rating on Pfizer and said with the stock trading at historically low values, investors are underestimating the strength of the drug giant's developmental pipeline.

"The three most important products in Pfizer's arsenal are Lyrica, Sutent and Lipitor plus torcetrapib," wrote analyst John Boris, in a client report.

"We see the company's pipeline as underappreciated, given the seven new products in launch/awaiting regulatory approval."

Boris said Pfizer's new products will account for a large portion of the estimated $11.5 billion in five-year incremental revenue. He added that Pfizer should be able to offset the loss of several key patents thanks to the aforementioned increase in revenue, $4 billion in planned cost cuts and an aggressive stock buyback program.

"The company has enormous financial strength, both from a tactical and strategic perspective," Boris said, citing unprecedented positive cash flow from ongoing operations coupled with a financial position bolstered by the repatriation of approximately $37 billion of overseas earnings by the end of 2005.

The research analyst maintained a $30 price target on the stock. "We view Pfizer's growth prospects in 2006 and beyond as attractive and above the average for the group."
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