PFE - Embedded Expectations Analysis - 2020 01 15
ï€ Pfizer Inc. (PFE:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 15.1x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about biopharma growth, the strength of their pipeline, and oncology biosimilar launchesï€ Specifically, management may lack confidence in their ability to sustain growth in Ibrance and their biopharma business, find accretive bolt-on acquisition opportunities, and manage SI&A expenses. Furthermore, they may be exaggerating expectations for 2019 revenue and EPS, the strength of their late-stage pipeline, and their ability to meet mid-to-high single digit growth expectations in their Upjohn business in China. In addition, they may be downplaying concerns about Lyrica sales volume declines and potential government regulations, and they may be overstating the ability of their hospital business unit to strengthen relationships with hospitals. Management may also be concerned about uninsured patients' ability to switch to biosimilar alternatives, and may be overstating the potential of abrocitinib and Inlyta plus KEYTRUDA
Pfizer is a research-based biopharmaceutical company. The company is engaged in discovering, developing, manufacturing and distributing of healthcare products, including medicines and vaccines. The company manages its commercial operations through three businesses: Pfizer Biopharmaceuticals Group, which includes Oncology, Inflammation and Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine business units, as well as a hospital business unit; Upjohn, which includes the company's solid oral dose brands such as Lyrica, Lipitor, Norvasc, Celebrex, Viagra, and certain generic medicines; and Consumer Healthcare, which is an over-the-counter medicines business.
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