Guidance and Visibility Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Guidance and Visibility

AAPL 278.28

+0.1%

Dec 12 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Brasco One who wrote (208231)	8/16/2011 11:59:41 AM
From: Brasco One	of 208838

We like PFE! Pfizer Wins Viagra; Bumping Estimates ?? What’s new? District Court rules in Pfizer’s favor against Teva Pfizer initially sued Teva for patent infringement on the ‘012 patent in March 2010. On Friday, the US District Court in Virginia ruled that Teva did not show the ‘012 patent to be invalid for obviousness nor for double-patenting, and that Pfizer did not commit inequitable conduct. Thus, the patent is valid and enforceable until October 2019 (excluding pediatric exclusivity). ?? Our takeaway: Upside to Pfizer, we had been expecting generics The fact that Pfizer will retain Viagra until 2019 is a substantial positive and counter to our expectations that Teva would enter sooner. We have updated our model to reflect patent protection through 2019, which on its own represents an upside in EPS of ~$0.08-0.12 per year through 2016. For now, we assume 50% of this upside will flow to the bottom line, with the rest being reinvested in spending, resulting in an increase of ~$0.04-0.06 per year in our numbers. ?? Thoughts on the stock: Further upside in an already undervalued stock We believe PFE is undervalued and the Viagra win is substantial upside to our existing numbers. We look for Apixaban data at ESC and Tofacitinib data at ACR to be the major catalysts for the remainder of the year. ?? Valuation: We maintain our Buy rating and $23 PT based on our DCF The implied P/E multiple from our DCF is 10x our 2012E EPS of $2.30.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next