Inflectra's U.S. Launch Incrementally Positive for Pfizer (PFE), Negative for AbbVie (ABBV) - BMO

October 18, 2016 7:08 AM EDT
Get Alerts PFE Hot Sheet
Price: $32.22 +0.28%

Rating Summary:
    13 Buy, 10 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 18 | New: 30
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BMO Capital analyst, Alex Arfei, reiterated his Outperform rating on shares of Pfizer (NYSE: PFE) after announcing Inflectra's U.S. launch; 1.5 years earlier than expected.

The analyst highlighted 3 key takeaways:
1) The announcement is incrementally positive and the "at risk" launch is clearly indicative of Pfizer's confidence regarding the outcome of Remicade patent litigation.
2) The 15% discount relative to WAC price of Remicade is lower than expected; however, we expect Pfizer to provide additional discounts during negotiations with payers.
3) Pfizer's leadership in biosimilars is a key reason the analyst is bullish on the stock.

The flip side of this announcement is that the news is negative for AbbVie (NASDAQ: ABBV). The analyst has also been cautious regarding biosimilar risk for Abbott Laboratories's (NYSE: ABT) Humira.

price target of $40.00

For an analyst ratings summary and ratings history on Pfizer click here. For more ratings news on Pfizer click here.

Shares of Pfizer closed at $32.50 yesterday.

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