Pfizer raised the list prices of its manufactured drugs in the United States by an average of 8.8 percent in the previous week. This indicates the second time this year that the pharmaceutical giant has notably increased prices for its prescription drugs. On January 1, the company lifted prices by an average of 10.4 percent.
On the other hand, the recent increases do not mirror any rebates or discounts. After taking the price breaks into consideration, analysts projected that the actual net price growth was marginally lower than half of the increases included in the list prices.
However, it remains uncertain how much of those rebates and discounts are then driven by pharmacy benefit managers and health plans to their clients, which would involve firms and unions. By any means, several people with health insurance are likely to observe higher costs as they are required to absorb a portion of increasing prices.
According to a Pfizer representative, the company paid nearly $4.6 billion in rebate to Medicare, Medicaid and commercial insurers last year. “Some of our most widely used medicines, including lyrics, Xalkori, Ibrance and Prevnar will not have an increase,” he stated.
Pfizer’s decision comes amid growing controversy over prescription drug pricing.
Over the last few years, the increased cost for a number of medicines has triggered resentment over the extent to which Americans can afford their medication. Although the focus has mainly been on newer drugs for hard-to-treat diseases, fears have also extended to some generic medicines, which have typically been cheaper alternatives.
Pfizer is raising drug prices by significant amounts on a regular basis.
Shares of Pfizer ended the last trading session up 0.17 percent at $35.3, with a volume of 22,488,801 shares traded. That figure is lower than the company’s average daily trading volume of 24,136,766.
Meanwhile, the stock is trading higher than it was during the same period last year, with the share price climbing by 3.82 percent.
Pfizer’s stock has a 52 week high of $36.46, while its 52 week low is $28.25. On the other hand, it has an existing market capitalization of 218,625,282,000.
Pfizer last posted its quarterly earnings result on May 23. The company reported earnings of $0.67 per share for the quarter, beating estimates of $0.55. During the same period in the previous year, the drug manufacturer posted earnings of $0.51 per share.
Why Pfizer is the Best Choice
Pharmaceutical stocks provide a solid investment opportunity, with strong dividends, high stock price appreciation and defensive stability. However, the best selection is Pfizer, which is also America’s largest drug manufacturer.
The company is a colossal profit machine, with years of rich profit growth history. Pfizer is out for every aspect of growth in the industry of drug making.
Moreover, with its assured dividend each year and the potential to keep increasing its payout, the company certainly belongs in investors’ portfolio. The company can easily cover and raise dividends with cash from operations, even as cash dividend ratios remain at 48.8 percent, with any figure below 75 percent indicating that dividends are safe.
Pfizer is projected to grow by 7.2 percent, exceeding expectations of declines at rivals Amgen, AstraZeneca, Gilead and Novartis, and a flat growth at Merck.
1. FSM News keeps all the information it provides both unbiased and professional. Subcribe now and get the most recent financial news.