PFE stock fell from above the $42.50 price level to as low as $33.97 per share. Pfizer’s transfer agent, Computershare Trust Company, N.A. ("Computershare") administers our direct stock purchase and dividend reinvestment plan for Pfizer common stock. Ticker symbol not specified yet. Pfizer stock may have been a “Dog of the Dow” in 2019. See slide 4. For each Pfizer Share you own you will receive 0.12 shares of Viatris . It is expected that in the coming months, shareholders of Mylan will vote on the proposed combination of Mylan and Upjohn. This move could improve both earnings growth and valuation. You may request stock certificates for the whole shares in your book-entry account at any time. The company is taking a big risk trading security for opportunity. Per the transaction agreement, Pfizer shareholders will receive about 0.12 shares of Viatris for each share of PFE stock. You won't see your income reduced. Pfizer shareholders will receive shares in Viatris, the new entity created by the merger of Upjohn and Mylan. Direct Deposit of Pfizer Dividends As a Pfizer shareholder of record (if your shares of Pfizer common stock are held in your own name), you have the option of depositing your dividends electronically into your bank account on each dividend payment date. The company will then distribute Viatris shares to holders of Pfizer stock. Growth, or the lack thereof. This past year wasn’t a great one for Pfizer (NYSE:PFE) stock. 1125 N. Charles St, Baltimore, MD 21201. More information regarding Viatris, including the company’s full executive management team, board of directors, stock symbol, and logo will be available at a later date. As Barron’s reported back in July, analysts were skeptical Pfizer could command a high multiple even after the spinoff. All stock picks. Pfizer will hold majority ownership of the merged entity (named Viatris). Copyright © The company will then distribute Viatris shares to holders of Pfizer stock. Per the transaction agreement, Pfizer shareholders will receive about 0.12 shares of Viatris for each share of PFE stock. Non-GAAP measures. Piper Sandler doesn’t expect the stock to rise any time soon. Let’s dive in, and see why this “Dog of the Dow” may be a great buy for 2020. To drive shares upward, management is pursuing biotech acquisitions in order to bolster its pipeline. This includes famous pharmaceutical brands such as Viagra and Lipitor. Yet, if the company’s current slate of drugs (including Ibrance) continues to perform well, Pfizer stock may get the sales boost needed to push up valuation. Pfizer shareholders will receive shares in Viatris, and it should generate annual revenue of between $19 billion and $20 billion with free cash flow of more than $4 billion. What amount of Viatris Shares will be issued per Pfizer Share ? 2020 InvestorPlace Media, LLC. To learn more, please contact Computershare at: +1-800-PFE … Pfizer’s off-patent portfolio generates consistent cash flow. Pfizer shareholders will receive shares in Viatris, the new entity created by the merger of Upjohn and Mylan. Pfizer will merge its off-patent business with generic drug maker Mylan (NASDAQ:MYL). Last summer, the investment community gave their opinion on Pfizer’s divestiture plans. Management believes shedding legacy assets could jump-start growth. Pfizer retains 32% ownership in this joint venture, which combines Pfizer brands like Advil with GSK’s consumer health brands like Sensodyne. You’ll get the name & ticker of Matt McCall’s top pick when you tune in to his FREE event. Is now the time to buy Pfizer stock? However, there are some caveats. Mylan is set to merge with Pfizer’s (PFE) generic-drug unit, called Upjohn, later this year to become a new generic-drug company called Viatris. But Pfizer faces patent expiration on Ibrance and other current drugs in a few years. Conversely, if the company wins with its current and upcoming drug slate, shares of PFE stock could soar past the $40 share price level. Subscribe. Shares have rebounded since, but as I mentioned above, the stock ended up in the red for the year. On the other hand, who’s to say Pfizer’s strategy will pay off? Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Shareholder … Compare this to Merck (NYSE:MRK) or Johnson & Johnson (NYSE:JNJ), which trade for 23.9 and 22.3 times forward earnings, respectively. If its valuation moves closer to that of MRK or JNJ, shares could be worth around $50, give or take a few bucks. Here’s a breakdown of the off-patent divestiture. In addition, Pfizer stock is becoming less of a consumer products company. Pfizer Shareholders will get Viatris Stock. The reason behind Pfizer’s restructuring moves? Last year, Pfizer closed on its deal to merge its over-the-counter unit with GlaxoSmithKline’s (NYSE:GSK) OTC business. All rights reserved. Nasdaq At the current valuation, PFE stock offers upside potential via multiple expansion. From Mylan’s perspective, the deal is considered a strategic move. Through the Viatris spinoff, holders of PFE stock retain exposure to the cash-generating off-patent business. All rights reserved. As a result, PFE stock has underperformed the S&P 500 for years. PFE stock is trading its status as a staid “dividend-and-buyback” stock for the uncertainty of becoming what InvestorPlace’s Ian Bezek referred to as a “dynamic biopharma company.”. I believe Pfizer is making the right move. We need to factor in the Viatris shares holders of Pfizer stock will receive after the spinoff. Post spinoff, PFE stock may end up not trading at multiples on par with MRK or JNJ. But that’s not all. The Man Who Recommended 23 1,000% Winners Is Revealing His #1 Stock for 2020. Stock Picks. Adjusted for the spinoff, PFE stock will trade for 15 times estimated 2020 earnings of $2.25 per share. ("Computershare") administers our direct stock purchase and dividend reinvestment plan for Pfizer common stock. 1 Assumes estimated pro forma shares of 1.215bn and Mylan price per share as of … Pfizer is in the process of divesting its off-patent drug business. But it hasn’t moved the needle in terms of revenue growth. So, what’s the call? Wall Street isn’t so keen on its proposed restructuring. Pfizer shareholders will own 57% of the combined company while Mylan’s stockholders will get a 43% stake in the new entity. The transaction is your classic “reverse Morris trust,” a great move to avoid taxes. With quarterly earnings set to be released later this month, it may be safer to wait things out. Note: Market data as of 08/28/2020. Shares trade at a forward price-to-earnings ratio of 11.5. Article printed from InvestorPlace Media, https://investorplace.com/2020/01/after-lackluster-2019-pfizer-stock-could-rebound-in-2020/. For each Pfizer Share you own you will receive 0.12 shares of Viatris. The heat is on for the recent biotech acquisitions to produce new blockbuster drugs. If the company’s acquisition spree fails to yield new blockbuster drugs, shares could fall further. 1125 N. Charles St, Baltimore, MD 21201. Copyright © 2020 InvestorPlace Media, LLC. But post-divestiture, shares could see a boost in 2020. So, what’s Pfizer’s move post-divestiture? Pfizer stock trades at a discount to peers. Stock Trading Strategies. While the S&P 500 soared 29%, shares in the pharma giant fell to $39.18 per share, making for a 9.1% loss. Wall Street disagrees, discounting Pfizer’s ability to improve its drug pipeline by pursuing biotech deals like its acquisition of Array. Pfizer will hold majority ownership of the merged entity (named Viatris). Pfizer plans to sell two assets to its Mylan-Upjohn spinoff Viatris, adding $598 million in yearly revenues, but that's not doing much to raise profitability expectations, analysts warned. The reason? But Pfizer stock is a buy at these levels, and a screaming buy if shares retreat back to their 52-week low. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. Based on Mylan’s recent closing price of $20.65, this implies a distribution around $2.47 per share. 57% of the outstanding shares of Newco common stock, and Mylan shareholders as of immediately before the Combination will ... existing Pfizer common stock or take any other action to receive Newco common stock in the Distribution, other than to hold Pfizer ... Newco will be renamed “Viatris… By shedding low-growth assets, Pfizer could command a higher valuation multiple down the road. Investor skepticism over the restructuring is already priced into shares. However, post spinoff, shares could eventually trade at a higher multiple. Under the deal, Mylan shareholders get 1 share of the new company for each of their shares, and 43% of the resulting stock. Source: Company filings, Capital IQ. After Lackluster 2019, Pfizer Stock Could Rebound in 2020, 3 Reasons to Inject Your Portfolio with Sorrento Therapeutics, Matt McCall and the InvestorPlace Research Staff, Buy Piedmont Lithium Stock Now for Unique EV Exposure, Louis Navellier and the InvestorPlace Research Staff, Trump vs. Biden: Stocks to Buy No Matter Who Wins the White House, 7 Big Tech Stocks to Buy for Blockchain and Crypto Exposure, Exxon Mobil Stock Is Still a Buy and for the Right Reasons, 7 Highly Rated Pharmaceutical Stocks for Q4, Pricey Plug Power Stock Could Keep Moving Higher, or Attract a Buyer, 7 Value Stocks To Buy in an Overvalued Market. quotes delayed at least 15 minutes, all others at least 20 minutes. Pfizer shareholders will own 57% of Viatris and receive a significant dividend from the new company.
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