Pfizer Inc. (NYSE:PFE) spent the last trading session almost flat as it ended the day with a minor loss of 0.55% but the next trading may take a different color after the announcement of the last quarterly results. The company has beat the street estimates overcoming the patent expirations and Dollar strength but the guidance for the year has been lowered exactly for these two factors.
Pfizer Inc. (NYSE:PFE) has increased the earnings by 2% to $0.38 per share or just under $2.38 billion. The adjusted profit of $0.51 beat the estimates by $0.01. The revenue dropped by 4% to $10.86 billion but still above the expectations. In the guidance on revenue for 2015, a negative impact of $3.5 billion due to generic competition is included, coupled with another negative impact of $3.3 billion from currency exchange.
The sales of Celebrex, the pain and arthritis drug of the company, dropped by 67% to $205 million as the generic rivals ate up the market, just like the case of the antibiotic Zyvox, which dropped by 10% to $271 million. The company thinks that the solution lies in acquiring new companies like Hospira Inc. for approximately $15.23 billion, to tap into the growing market of the biosimilars.
Now there is a rumor in the air that Pfizer Inc. (NYSE:PFE) has fixed GlaxoSmithKline plc (ADR) (NYSE:GSK) as its major acquisition target, which is even bigger than AstraZeneca plc (ADR) (NYSE:AZN), the target of the last failed acquisition attempt. GSK has 115,000 workers all over the world, including 13,000 in UK. If this rumor turns out to be true and the company really manages to get GSK, then that could be a fantastic boost to the stock price.
The price is already testing the technical support band of $33.50-$34.00 and that may push the price higher to $35.50 once again.