Will Pfizer Split Into Two?Shorts Favoured Despite Strong Results
Pfizer Inc. released its Q2 results ahead of the open on Tuesday, reporting 64 cents per share earned in the second quarter upon revenue of $13.15 billion. Despite a decline in sales of the vaccine Prevnar – Pfizer Inc.’s biggest product, revenue rose 11 percent compared to the same period last year and beat projections of $13.01 billion.
The spurt in revenue was based on strong sales of two of its newest drugs namely Ibrance, Pfizer’s new breast cancer treatment and Xeljanz, a new rheumatoid arthritis pill. While sales of Ibrance more than tripled to $514 million, Xeljanz brought in $217 million. Projections for the former were for $498 million while sales forecast for the latter had come in at $199 million.
However, the blue-chip drug star closed down 2.47% at $36.39 due to uncertainty over the future of the world’s largest drug maker. Pfizer is considering splitting into two entities, one would produce older drugs, and the other would focus on newer and upcoming products. The proposal is expected to be discussed today when the drug maker holds a call with investors.
Sell Stop at 36.35, Take profit 36.00, Stop loss at 36.50