Will Pfizer Inc. (PFE) Help You Retire Rich?

Pfizer managed to make the most of a tough situation last year as its Lipitor cholesterol drug went off patent toward the end of 2011. With sales of the all-time best-selling drug down by more than 50%, Pfizer has implemented cost-cutting measures like further reductions in staffing in order to sustain profits.

But recently, Pfizer has managed to use its extensive bench of low-volume drugs to boost overall sales. In its most recent quarter, Pfizer predictably saw big drops in revenue, but it still topped expectations because of contributions from its lesser-known products.

Looking forward, Pfizer has some big prospects coming from its pipeline. Its Eliquis blood-clot treatment got FDA approval in late December, with both Pfizer and partner Bristol Myers Squibb Co. (NYSE:BMY) looking for the drug to deliver blockbuster potential. Meanwhile, in November the FDA approved Pfizer’s rheumatoid arthritis drug Xeljanz, which will go up against AbbVie Inc (NYSE:ABBV)‘s Humira and tap into what could become a $2 billion market for the drug.

One big move Pfizer made was to spin off its Zoetis Inc (NYSE:ZTS) animal health business. Although Zoetis is now separately traded, Pfizer retains an 80% stake in the company. With the shares having risen modestly since the IPO earlier this month, Pfizer could see further gains if the spinoff successfully unlocks more of Zoetis’ value.

For retirees and other conservative investors, Pfizer’s dividend cut during the financial crisis still stings, but the company has avoided major stock losses and has raised its payout for four straight years. Recent share-price gains make the stock look a bit expensive, but Pfizer still represents a reasonably solid play for retirement investors.

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The article Will Pfizer Help You Retire Rich? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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