Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 17, 2023

Article Excerpt

PFIZER INC., $40.10, New York symbol PFE, is a buy. The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Enbrel (arthritis), Ibrance (breast cancer) and Prevnar (pneumonia). Pfizer has agreed to acquire Seagen Inc. (Nasdaq symbol SGEN), which specializes in treatments for various forms of cancers. Seagen is a leader in antibody-drug conjugate (ADC) technologies, which use human antibodies to better target cancer cells without damaging healthy cells. It currently has four drugs on the market that should generate revenue of $2.2 billion in 2023. Seagen also has 11 more treatments in various stages of clinical trials. Pfizer will pay $43 billion, which includes Seagen’s debt. To put that in context, Pfizer’s market cap (the total value of all outstanding shares) is $225.3 billion. Assuming Seagen shareholders and regulators approve, Pfizer expects to complete the purchase in late 2023 or early 2024. The company will borrow $31 billion to help fund the purchase. That will roughly double its…