Why Pfizer Stock Fell 10.2% in 2019
Pharmaceutical mega-titan Pfizer (NYSE: PFE) lost an eye-catching 10.2% of its value over the course of 2019, according to data from S&P Global Market Intelligence. Investors avoided this top drugmaker last year for two major reasons.
First, the drugmaker's decision to spin off its generic drug business, known as Upjohn, and merge it with Mylan, was not a big hit with Wall Street. Although this strategic move will remove a key overhang in the form of ongoing patent losses, it will also significantly reduce the company's free cash flow, lessening its firepower for value-creating business development transactions.
Second, Pfizer's top-selling pain medication, Lyrica, officially began facing generic competition in the middle of 2019. Unsurprisingly, its sales plummeted during the third quarter.
Source Fool.com
