We still prefer the parent a year later

Article Excerpt

In 2019, Pfizer decided to focus on its main prescription drug business, which offers investors higher long-term returns than either over-the-counter and generic drugs. As part of that plan, on November 16, 2020, the pharma giant combined its Upjohn division (generic pharmaceuticals) with Netherlands-based Mylan N.V. (Nasdaq symbol MYL). Pfizer shareholders received 0.124079 of a share in the new firm (called Viatris) for each share they held. Since the split, Pfizer’s shares have gained roughly 40%, mainly due to the huge success of the company’s COVID-19 vaccine. We feel Pfizer’s outlook is even brighter now in light of its promising new COVID-19 treatment pill. While Viatris’s shares are down 20%, its aggressive cost-cutting plan sets its up for future growth. PFIZER INC. $51 is a buy. The company (New York symbol PFE; Manufacturing & Industry sector; Shares outstanding: 5.55 billion; Market cap: $283.1 billion; Dividend yield: 3.1%; Takeover Target Rating: Lowest; www.pfizer.com) is one of the world’s leading maker of prescription drugs. Its top-selling brands include Lyrica…