PFIZER INC. $35 - New York symbol PFE

PFIZER INC. $35 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 6.3 billion; Market cap: $220.5 billion; Price-to-sales ratio: 4.4; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.pfizer.com) has received approval from the U.S. Food and Drug Administration for new breast cancer drug palbociclib. Pfizer will market this treatment under the Ibrance brand.

Ibrance will probably contribute $4 billion to the company’s annual revenue by 2020; last year, Pfizer’s revenue was $49.6 billion.

The company spends a high 17% of its revenue on research. This hurts its short-term earnings but lets it develop innovative drugs like Ibrance. New treatments like these help Pfizer offset sales of other drugs that have lost their patent protection, like Lipitor (cholesterol) and Celebrex (arthritis).

Pfizer is a buy.

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