Regardless of which company investors think Pfizer should buy, such a move seems unlikely unless CEO Ian Read has a change of mind. Read’s philosophy so far has been that the company’s money is better spent on buybacks than acquisitions or dividend increases.
While buying other companies hasn’t been a priority, partnering certainly has — and not just with small biotechs. Pfizer and Bristol Myers Squibb Co. (NYSE:BMY) collaborated on blood-thinning drug Eliquis. The two companies received FDA approval for the drug in late 2012 and previously received regulatory clearance in Europe and Japan.
Pfizer announced a major partnership with Merck & Co., Inc. (NYSE:MRK) earlier this year. The two big pharma organizations joined forces on development and marketing of diabetes drug ertugliflozin. They will also collaborate on using the experimental drug with Merck & Co., Inc. (NYSE:MRK)’s Januvia.
Pfizer Inc. (NYSE:PFE)’s new buyback is a good move for investors. Shares are more than 9% lower than this year’s high reached in April. The stock looks to be valued attractively.
With Pfizer itself wanting more of Pfizer stock, should investors jump on board also? While economic issues could make the rest of the year less rosy than the first part of 2013, I think Pfizer is a good buy over the long run. My view is that the $10 billion the company uses to buy shares back will end up being a pretty good investment.
The article Who Really, Really Wants Some More Pfizer Stock? originally appeared on Fool.com and is written by Keith Speights.
Fool contributor Keith Speights and The Motley Fool have no position in any of the stocks mentioned.
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