Dear Mr. Berko: I own 200 shares of Pfizer, which I bought at $26 in late 2011. I have a nice profit in Pfizer, but I’m concerned that Hillary Clinton’s rightful criticism of high drug prices will hurt Pfizer’s profits. Is the outlook still bullish?
— S.K., Minneapolis
Dear S.K.: Pfizer is here to stay, and so are high drug prices. In the constant conflict between corporate America and the government, the government wins the battles, corporate America wins the wars and taxpayers foot the bill.
Pfizer (PFE-$32.50) started in 1849, when cousins Charlie Pfizer and Charlie Erhart combined their chemistry and confectionery expertise to produce santonin. A tasty almond-flavored remedy for intestinal worms, a common ailment of the times, it was an instant success. Pfizer’s office, warehouse, factory and laboratory occupied 2,800 square feet in Brooklyn.
During the Civil War, they manufactured and sold painkillers, preservatives, disinfectants, iodine, morphine, chloroform and other products, helping patients be more comfortable. By 1906, revenues exceeded $3 million, and the Two Charlies were on their way to making history. They found a Golconda in 1941. In response to Uncle Sam’s request to provide World War II service members with a new antibiotic, Pfizer mass-produced penicillin and cemented its place in medical history. Today Pfizer does business in 181 countries, has 110,000 employees and produces over 340 prescription drugs and vaccines, generating $49 billion in annual revenues this year. And 60 percent of those revenues derive from overseas.
