Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Thursday, April 8, 2016

Article Excerpt

PFIZER INC., $32.50, New York symbol PFE, is the world’s largest pharmaceutical company. It has cancelled its merger with Irish drugmaker Allergan plc (New York symbol AGN), which is best known for the anti-wrinkle drug Botox. The deal was meant to cut the combined firm’s corporate tax rate to 18% from 25%. New U.S. tax rules now prevent that savings. Under the terms of the agreement, Pfizer must pay Allergan a $150-million break-up fee. To put that in context, Pfizer earned $3.3 billion, or $0.53 a share, in the three months ended December 31, 2015. The company will now speed up plans to divide its operations into two separate companies: one would focus on patent-protected drugs. The other would own established products without patent protection. Pfizer will make a final decision by the end of 2016. In addition, the company will expand by acquiring smaller companies. That should help offset lower revenue as more of its prescription drugs lose their patent protection. The…