Pfizer recently announced the completion of its purchase agreement with Anacor Pharmaceuticals. According to the pharmaceutical giant, the terms of acquisition offered each outstanding share of Anacor to be converted into the right to obtain $99.25 net in cash, without any interest subject to necessary withholding of taxes.
Pfizer’s Innovative Health Group President, Albert Bourla, explained, "Now that Anacor is part of Pfizer, we can accelerate our shared commitment to help patients with inflammatory disease, an area of high unmet medical need. We believe that Pfizer is in a position to quickly capitalize on the benefits offered by the combination with Anacor, including the potential for a near-term U.S. product launch and subsequent commercialization of crisaborole, a differentiated asset with compelling clinical data. If approved, crisaborole has the potential to be an important first-line treatment option for patients with mild-to-moderate atopic dermatitis and the physicians who treat them."
The recent transaction will not affect the leading pharmaceutical company’s existing year adjusted financial forecast. Pfizer also continued to view the transaction to be slightly dilutive to Adjusted Earnings Per Share next year with gradual growth for adjusted commencing in 2018 and boosting thereafter.
Shares of Pfizer ended the last trading session up 1.79 percent at $33.97, with a volume of 23,824,699 shares traded. That figure is lower than the stock’s average daily trading volume of 44,600,831.
The stock is trading lower than it was last year, with shares dropping 0.76 percent. On the other hand, Pfizer stock price has a 52 week high of $36.46, while its 52 week low is $28.25. Pfizer’s existing market capitalization is 210,338,163,000.
Pfizer Stock is Good for the Long Run
Pfizer is one of the biggest pharmaceutical companies in the world, with a market capitalization of more than $200 billion. Furthermore, the company has a strong dividend, great fundamentals, as well as a broad set of household drug labels which drive considerable profit. Therefore, Pfizer is a good addition to investors’ portfolio for the long run.
The pharmaceutical giant raised its quarterly dividend payout per share by 87.5 percent since 2009. After that, Pfizer has consistently increased its dividend by $0.02 per share every year. Considering the company’s cash flows, Pfizer can definitely afford to boost its current dividend payout extensively. Its yield is also appealing, and it stands near 3.5 percent.
While revenue has declined by a huge margin since 2013, the company still generated sales at a high level. Last year’s revenue came out to nearly $48.8 billion, and the company had a positive outlook going into fiscal year 2016, reporting sales guidance in a range between $49 and $51 billion. However, the company increased its guidance even higher after the first quarter of fiscal year 2016, and it now predicts revenue to drop between $51 billion and $53 billion this year.
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