NEW YORK, NY / ACCESSWIRE / July 21, 2017 /
Abbott Laboratories saw its shares climb higher yesterday after announcing Q2 results that narrowly beat Wall Street's expectations. Shares of Pfizer saw a loss after it was revealed that the pharmaceutical giant is facing two patent expirations, for Viagra, and Lyrica, two drugs that accounted for 4.2 billion or more in domestic sales in 2016.
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Abbott Laboratories shares closed up 2.87% yesterday and hit a new high of $51.13. Volume for the stock was also nearly double compared to usual. So why was the stock near its all-time new high? The American worldwide health care company reported its second quarter financial results and both profits and revenue narrowly topped what analysts had been expecting. For the second quarter ended June 30th, the company reported income of 62 cents a share. Wall Street had been looking for 60 cents a share. The medical giant also increased its forecast for 2017 profits from $2.43 to $2.53. According to RBC analyst Glenn Novarro, analysts had called for $2.47 earnings per share. RBC has an "outperform" rating on the stock.
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Pfizer Inc. shares closed down a modest 0.24% on Thursday with nearly 17 million shares traded. It was a bad news day for the company. According to analysts at Credit Suisse, Pfizer is looking at not one, but two patent expirations for its male impotency treatment drug Viagra and its drug Lyrica, which treats nerve damage. The patents were described as "meaningful." Analyst Vamil Divan stated, "We have been long-time supporters of the PFE story and see opportunities for upside over the long-term, but see more limited drivers of upside over the next 6-12 months." Divan expects Pfizer to lose the U.S. patent exclusively for Viagra in December of this year and to lose the patent for Lyrica next year. He reduced his earnings per share targets for next year to $2.71 from $2.78. He also cut his price target on the stock from $38 to $36.
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Our Actionable Research on Abbott Laboratories (NYSE: ABT) and Pfizer Inc. (NYSE: PFE) can be downloaded free of charge at Research Driven Investing.
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