Pfizer Secures Patent Win, Stock Surges 25 Percent

Pfizer, a pharmaceutical giant, has been dealt a significant victory in a patent case involving its statin medication Lipitor. A court ruling in its favor has sent the company's stock soaring, increasing by 25 percent, including late Friday trading. This development comes as a welcome respite for Pfizer, which has been facing declining sales and intense competition from generic versions of Lipitor. The patent win grants the company an additional year to continue selling Lipitor, a lucrative medication with annual sales of $12 billion, until 2011.

Key Takeaways:

• Pfizer's stock surged 25 percent after a court ruling in its favor in the Lipitor patent case, including late Friday trading.
• The patent win provides the company with an additional year to continue selling Lipitor, a high-priced statin with annual sales of $12 billion.
• Pfizer's CEO, Hank McKinnell, will be interviewed on CNBC to discuss the company's strategy and plans for the pipeline.
• Merck, another pharmaceutical giant, may also benefit from the patent win, with its stock potentially increasing due to a move by Deutsche Bank.
• Merck's CEO, Richard Clark, has outlined aggressive plans for cost-cutting and increasing efficiency, which may have contributed to the stock's target price increase to $36.

Statistics:

• Pfizer's stock increased by 25 percent, including late Friday trading.
• The company generates $14 billion annually in cash.
• Pfizer is investing $7.5 billion in R&D this year and has already invested $2 billion in licensing opportunities.
• The company buys back about 2 percent of its stock every year.
• Merck's target price is $36.

Sources:

• CNBC/Dow Jones Business Video Analyst Interview with Joe Kernan
• CNBC/Dow Jones Business Video Interview with Hank McKinnell, Chief Executive Officer, Pfizer
• CNBC/Dow Jones Business Video Interview with Barbara Ryan, Senior Pharmaceutical Analyst, Deutsche Bank
• CNBC/Dow Jones Desktop Video, LLC.