Pfizer (NYSE: PFE) It made headlines this week after Monday’s promising results regarding the coronavirus vaccines it is developing in conjunction with BioNTech (NASDAQ: BNTX). On top of that, the US government said it will pay companies $ 1.95 billion to insure up to 600 million doses of any successful vaccine they produce, provided they are licensed by the Food and Drug Administration (FDA) from the USA
Not surprisingly, that double whammy has given a boost to the shares of the pharmaceutical company. At the close of the market on Friday, Pfizer shares were $ 37.66 per share, nearly 6% above what it was when it closed last Friday.
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Looking beyond the vaccine news
Forget about vaccines for now. There are many other things you like about having Pfizer stocks.
Once you complete your Upjohn spinoff for Mylan (NASDAQ: MYL) This year, the New York City-based pharmaceutical giant will be a much more profitable company. For example, in the first quarter, Pfizer’s biopharmacy division, which does not include Upjohn’s numbers, reported an 11% year-over-year revenue increase to $ 10 billion. However, including the Upjohn group, Pfizer’s overall revenue decreased 8% year-over-year.
Then there is the company’s robust portfolio of 91 drugs, including 21 in phase 3 trials and four in the registration phase. That includes two vaccines that, unlike the proposed coronavirus vaccine, have already been determined to be safe.
The company said it saw good results from its PCV-20 vaccine to prevent invasive and non-invasive pneumococcal infections, and expects to market the drug in the fourth quarter of this year. Another likely one on the way is his vaccine against clostridium difficile, an infection commonly found in hospital settings. The PF-06425090 vaccine has just completed its phase 3 trial and is awaiting FDA approval.
While King Lipitor’s sales to lower cholesterol and erectile dysfunction drug Viagra have declined due to generic competition, the company still reports strong sales of the Prevnar 13 pneumococcal disease vaccine ($ 1.45 billion in revenue in first trimester), anti-blood-Eliquis clot ($ 1.3 billion in the quarter), and breast cancer medication Ibrance ($ 1.25 billion in the quarter).
Its new cancer drugs, led by prostate cancer drug Xtandi, which reported a 38% year-over-year sales increase in the first quarter, have been particularly strong, with first-quarter revenues of more than 25%.
The company also pays a good dividend, which has grown over the past 11 years. This year, it is paying a quarterly dividend of $ 0.38 per share, with a strong 3.89% 12-month yield (TTM). Even with all the good news, it can be a bit pricey, with a price / earnings (P / E) ratio of 13.6 (TTM) versus the drug sector average of about 22.
There is a lot of optimism about Pfizer
Pfizer is a great stock to keep in the portfolio, a reliable income generator with some growth potential. But is it a millionaire action?
Well, if you already have nearly a million dollars, it could be, but what about an action that would double your investment? I do not see it
A million dollar stock needs rapid growth, and even Pfizer is not predicting that. In the first quarter earnings call, CEO Abert Bourla said the company is on track for a compound annual growth rate of 6% over the next five years. That’s what you can expect from a mature, profitable pharmacist, but it’s not the kind of exponential growth needed to be considered a million dollar action.
However, with its reliable income and dividends, it is a great stock for someone who wants to retain $ 1 million.
