It's almost hard to believe that Pfizer (PFE) carried a P/E ratio of more than 20 within the last decade. Generic competition has walloped many major pharmaceutical companies and Pfizer has responded in a pretty typical way – large-scale efficiency-driven acquisitions and significant internal cost-cutting efforts. And while it is true that no company on Earth has ever cost-cut its way into lasting prosperity, investors who may have once left Pfizer for dead as a no-growth has-been may want to take another look at this cornerstone member of Big Pharma.
Not Much Excitement In Q2
To be sure, there is not a lot going on in Pfizer's business today that should excite growth-oriented investors. Revenue was down about 1% as reported and down about 5% on a currency-adjusted basis as patent expirations and generic introductions continue to bleed away lucrative revenue. In fact, pharmaceuticals sales were down about 7% on an operational basis, with Pfizer's primary care business taking a 10% hit from generics.
To read the complete piece at Seeking Alpha, click below:
The Storm Is Almost Over at Pfizer
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