Wyeth Deal by Pfizer will add to cash flow and pipeline.

For fiscal 2008 the following were Wyeths top products by Revenue:

Effexor $3.9 billion
Prevnar $2.7 billion
Enbrel (outside US and Canada) $2.6 billion
Enbrel (in US and Canada) $1.2 billion
Nutritionals $1.6 billion
Zosyn/Tazocin $1.3 billion
Premarin $1.1 billion
Protonix $806 million
Centrum $728 million
Advil $673 million

All of these were increases from fiscal 2007 except Protonix, as it lost about half its revenue to generic competition, and Advil, which had a small two percent decrease. Enbrel increased twenty seven percent outside of the United States and twenty percent within North America.

A couple years ago Pfizer sold its consumer goods business to Johnson and Johnson and now with a new CEO they appear to be getting back into the cash flow created by consumer healthcare brands. With the deal they gain the following consumer brands:

Advil, Centrum, Chap-Stick, Dimetapp, Premarin, Preparation H, Robitussin

The deal also adds a nice animal health product line that will make Pfizers one of the leading animal healthcare companies.

In the pipeline for Wyeth, the biggest is an alzheimers drug in Phase III that could turn out to be a blockbuster. The combination of Pfizers pipeline and research being applied to Wyeths pipeline could find a couple blockbusters.

I am a Pfizer stockholder in my real life Sogotrade account. I like the stock a lot right now under $15. There will be pressure on the company to find a blockbuster to replace Lipitor for a couple of years. This deal creates much needed cash flow from consumer products to help reincrease the recently cut dividend.

Buy Pfizer at under $17. The stock will be hitting $20 after this deal goes through.