With a market capitalization north of $200 billion, you can
bet that Dow componentPfizer (
) has a lot going on in its pipeline.
On Monday, the company released results of a post-approval
study that showed its pneumonia vaccine Prevenar 13 prevented the
disease in a study of elderly subjects. Pfizer said the study met
its primary endpoint. Full results will be released at a
conference in India on March 12.
The drug could significantly increase sales for Pfizer down
the line. Initially, the drug was approved only for infants but
in 2012 received approval for adults over age 50. The drug
competes with Merck's Pneumovax.
Late last week, Pfizer also announced encouraging phase three
results for Eliquis -- a blood-thinner drug it's developing
withBristol-Myers Squibb (
Earlier this month, Pfizer won a court ruling that will block
generic versions of its No. 1 product, Lyrica, until December
2018. The drug, used to treat shingles, fibromyalgia, epilepsy
and hot flashes, made up 9% of total revenue in 2013. It's become
an important drug for Pfizer since the company lost patent
protection on its cholesterol pill Lipitor.
Robust earnings growth has been hard to come by for Pfizer in
recent years. In 2013, annual earnings grew a scant 6% from 2012.
This year, annual profit is seen rising 2%, with growth seen
picking up a bit in 2015 to 4%. The good news is that annual
pretax margin in 2013 accelerated for the third straight year,
coming in at 41%, up from 38% in 2010.
Fundamentals matter to many dividend investors, but so does a
healthy yield, and that's where Pfizer shines with a current
yield of 3.3%. It's one of 12 stocks currently in the Dow that
yield more than 3%.
Pfizer is currently setting up in a base-on-base pattern. It
closed Monday just below a potential buy point of 32.10, although
shares aren't under meaningful accumulation yet.