Pfizer-Hospira Deal: A Win-Win Situation
Recently, Pfizer announced its plans to acquire Hospira. It’s a leading provider of injectable drugs and infusion technologies. It’s a global leader in biosimilars.
Pfizer (PFE) is one of the oldest and largest pharmaceutical companies. It focuses on biopharmaceutical and consumer healthcare products.
Pfizer (PFE) faces foreign exchange, global, legal, and integration risks. These risks are in addition to the pharmaceutical industry’s risks.
Leverage ratios determine the company’s ability to repay its debt. Leverage ratios directly affect the credit ratings. Pfizer has good credit ratings.
Research and development, or R&D, is the most crucial part of business for large pharmaceutical companies like Pfizer. Its R&D expenses were $8.4 billion in 2014.
Pfizer’s (PFE) net revenue decreased by nearly 4% to $49.6 billion in 2014. For the total revenue, biopharmaceuticals’ contributions decreased to 92% in 2014.
The Global Established Pharmaceutical segment deals with products that have or are expected to lose market exclusivity through 2015 in most major markets.
The global GVOC segment is focused on developing and commercializing the vaccines, oncology products, and consumer healthcare products.
The GIP (Global Innovative Pharmaceutical) segment is focused on developing, registering, and commercializing value-creating medicines.
In the last three years, Pfizer (PFE) consistently recorded direct product sales of over $1 billion for each of its ten biopharmaceutical products.
Most of Pfizer’s revenue comes from its biopharmaceutical business. In 2014, over 92% of the total revenue was from the Biopharmaceutical segment.
Pfizer (PFE) is one of the oldest and largest pharmaceutical companies in the US. The company deals in two major business segments.
By revenue, Pfizer is one of the largest pharmaceutical companies. It’s headquartered in New York City. It focuses on prescription and OTC drugs.
Walter Energy (WLT) is clearly the weakest link among US metallurgical coal producers in terms of operations as well as finances.
Thermal or metallurgical US coal stocks have been on a massive decline, especially since the last few quarters.
In essence, tightening monetary policy in the US will result in a stronger dollar, while rate cuts in Australia will result in AUD depreciation.
American coal producers (KOL) spent billions buying other coal companies, mainly with exposure to met coal or metallurgical coal.
Metallurgical coal (or met coal) is used to make coke for iron and steel as well as foundries. Most metallurgical coal produced in the US is exported.
According to the Wine Institute, US wine exports declined by 3.9% to $1.49 billion in 2014 in terms of value.
Table wine is the major US wine category. Other categories include dessert wine, champagne, and sparkling wines.
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