Where Will Pfizer Be in 5 Years?

Most investors who have been following Pfizer for awhile can’t be overly pleased with how it has fared over the last five years. The big drugmaker badly underperformed the S&P 500 during the period. Its trailing-12-month revenues are lower today than they were at the end of 2015. And even after adjusting for divestitures, it hasn’t delivered tremendous sales growth.

However, Pfizer today is in a far different position than it was even in its recent past. There are definitely reasons to be more optimistic about the company’s future. Where will Pfizer be in five years? Here’s my best-guess scenario.

What’s happening at Pfizer now?

Perhaps the best way to predict what will happen with Pfizer is to look at its present situation and attempt to predict which of the current trends are likely to continue. Arguably the most important factor to consider is that the company’s results will no longer be dragged down by the declining sales of its older, off-patent drugs. Thanks to the recent merger of the company’s former Upjohn unit with Mylan, Pfizer is in a stronger position to grow than it has been in for quite a while.

CEO Albert Bourla forecasts that the company will deliver annual revenue growth of around 6% on a risk-adjusted basis over the next five years with adjusted earnings per share increasing by 10% per year. Those targets seem attainable. Pfizer has several solid growth drivers, notably including Vyndaqel, which is approved for treating the rare genetic disease transthyretin amyloid cardiomyopathy, and blood thinner Eliquis.

READ FULL ARTICAL HERE