Today’s Research Reports on Stocks to Watch: AbbVie and Pfizer

NEW YORK, NY / ACCESSWIRE / March 23, 2018 / AbbVie was crushed in Thursday trading after the company revealed that it would not be trying for accelerated approval of small cell lung cancer drug Rova-T. Shares of Pfizer Inc. also went lower after Reckitt Benckiser pulled their bid for the company’s consumer healthcare business this week.

RDI Initiates Coverage on:

AbbVie Inc.
https://rdinvesting.com/report/?ticker=ABBV

Pfizer Inc.
https://rdinvesting.com/report/?ticker=PEE

AbbVie Inc. shares closed down 12.76% yesterday on about 26.8 million shares traded. The biotech stock saw its shares drop after a cancer drug it bought back in 2016 have traders worried that it may have been a risky investment. The small cell lung cancer drug Rova-T was purchased when AbbVie bought Stemcentrx for $5.8 billion. Rova-T was the company’s lead product. According to phase 2 trial results and conversations with the FDA, citing “magnitude of effect across multiple parameters,” the company won’t be applying for accelerated approval of the drug in one type of small cell lung cancer. Yesterday’s drop was the biggest one day drop for the company. According to cancer research expert Brad Loncar, “This was a crown jewel acquisition from their standpoint. However with the news, “it seems all the skeptics were right… [Rova-T] does have a chance of succeeding — it’s not over yet — but it’s definitely not looking good.”

Access RDI’s AbbVie Inc. Research Report at:
https://rdinvesting.com/report/?ticker=ABBV

Pfizer Inc. shares closed down 1.85% on nearly 21 million shares traded. According to sources that are familiar with the situation, it seems that GlaxoSmithKline has put in a bid to buy Pfizer’s consumer healthcare business. The business according to Pfizer, could be valued as high as $20 billion. Reckitt Benckiser had announced on Wednesday that it had pulled its bid from the auction. Reckitt CEO Rakesh Kapoor, had said, “we always approach inorganic growth opportunities in a … financially responsible manner. He remarked that “an acquisition for the whole Pfizer consumer health business did not fit our acquisition criteria and an acquisition of part of the business was not possible.” According to someone familiar with the matter, Reckitt was going after Advil. Pfizer’s consumer healthcare business includes over-the-counter brands Advil, Centrum multivitamins and Chapstick lip balm.

Access RDI’s Pfizer Inc. Research Report at:
https://rdinvesting.com/report/?ticker=PEE

Our Actionable Research on AbbVie Inc. (NYSE: ABBV) and Pfizer Inc. (NYSE: PFE) can be downloaded free of charge at Research Driven Investing.

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