< Return to Bulls pageStrong Post-Lipitor Prospects
Pfizer's in a good spot. Its Lipitor is the number one pharmaceutical currently on the market, raking in over $12.9 billion in 2006. Lipitor's patent is good through 2010, giving Pfizer both the time and the money to develop its next blockbuster from the 42 products it has in Phase II clinical trials or later. As a pharmaceutical powerhouse, Pfizer has one of the highest profit margins in the industry, with 2006 margins of 22.82%, compared to Merck at 19.59%, Sanofi-Aventis at 14.28%, and AstraZeneca at 16.9%. While generics and political pressure could pose some risks to Pfizer's continued success, the company has a large enough bank account to effectively ward off these threats. Even though Lipitor won't always be there to pump cash into the Pfizer coffer, a number of the drugs in its pipeline are showing particular promise, such as the surprisingly well-selling pain medicine Lyrica, currently being tested as a treatment for fibromyalgia, and the HIV drug Maraviroc, which is on the fast track to approval. With a current P/E ratio of 9.89 times earnings (the lowest of any of its competitors for the last 12 months), there could be significant upside to Pfizer's stock price when these drugs hits the market.
