Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 2, 2019

Article Excerpt

PFIZER INC., $38.00, New York symbol PFE, is one of the world’s largest makers of prescription drugs. Its top-selling brands include Lyrica (epilepsy), Celebrex (arthritis pain), Prevnar (pneumonia) and Enbrel (rheumatoid arthritis). The company has agreed to combine its Upjohn division, which holds its off-patent and generic drug businesses, with Mylan N.V. (New York symbol MYL). That’s a Netherlands-based maker of generic drugs. Under the terms of the deal, Pfizer shareholders will receive 0.12 of a share in the new company for every PFE they currently hold. Investors are only liable for capital gains tax when they sell their new holdings. As a group, Pfizer investors will own 57% of the combined company while Mylan shareholders will own the remaining 43%. The deal should lower costs and improve profitability in the face of declining prices for generic drugs. The two companies expect to complete the merger in mid-2020. Meantime, Pfizer’s earnings in the quarter ended June 30, 2019, fell 1.6%, to $4.52 billion from $4.59…

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