(EMAILWIRE.COM, April 23, 2012 ) New York, NY -- VFC's Stock House, an information and research outlet that brings ideas and opens discussions to a broad spectrum of investors, believes that recent moves to sell off non-core assets by Pfizer may be an indication that company will look to replenish its pipeline by making some major purchases.
It has been mentioned, however, that Pfizer will initiate some share buybacks and utilize the new found spare cash to boost investor value in other ways, but it's also fair to speculate that the pharmaceutical powerhouse might look to complete a key acquisition or two - and the season for such a move is ripe.
With Pfizer's significant cash infusion, it wouldn't surprise anyone to see the company join the ranks of acquiring companies on the move. PFE already has relationships with a few smaller, developing companies - such as Lpath Inc. (LPTN) - that would make for nice, cheap acquisitions to start pumping the pipeline full of technology and new product candidates, but it would also be expected to see a move towards closer-to-market candidates and/or companies who might already have a product on the market, although still in the early stages of full commercialization.
Synergy Pharmaceuticals (SGYP) is another example of an earlier-stage company that could be had for a relative fraction of its market potential right now. Boasting only a market cap of just over two hundred million, this company's main product - Plecanatide - is more than halfway through a Phase II/III trial that - if successful - would position the product to be approved in the multi-billion dollar chronic idiopathic constipation (CIC) and constipation-predominant irritable bowel syndrome (IBS-C) markets.
Regardless of the strategy that Pfizer undertakes to replenish its pipeline, I think it's safe to say that Pfizer's plan to sell off its business assets not related to the core drug unit could have as much to do with preparations to enter the buyer's market as it does to carry out the share buybacks discussed in recent news articles.
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