This Hated Stock Suddenly Looks Like An Obesity Bargain

[keangkong]

WSJ, This Hated Stock Siddenly Looks Like An Obesity Bargain: Pfizer’s latest deal could make it the budget entry-point to the weight loss bonanza.

https://www.wsj.com/health/pharma/pfizer-stock-obesity-investment-bargain-7cdb6ca2?st=Samwmz

 

[byefatlicia]

If I were a gambler, cool I would bet on this being successful. But I'm okay with once a week shots at Grey prices.

 

[vewdew34]

budget entry-point for them or us?

 

[keangkong]

If I were a gambler, cool I would bet on this being successful. But I'm okay with once a week shots at Grey prices.

I realize that I'm unlikely to correctly figure out how the markets will react to something. In terms of investing, I don't try to pick winners and I invest in either target date retirement funds or S&P 500 index funds.

Some things about what happened don't make sense to me: Amgen was selling for a given price. However, it sold itself for a much higher price. If it had such hot prospects, it would seem that it ought to already be valued higher. Then when Pfizer buys amgen, the value of Pfizer immediately goes up. Why? Did Pfizer pay far less than what the market thinks the other company is worth? I understand that a smaller company might be better off being part of a larger company because it then has more of an ability to conduct trials and market and produce a drug. But then the value, it seems, of the smaller company (here that is Amgen) should have already been higher. I'm just throwing out thoughts. As a I mentioned earlier, I don't ever invest choosing to pick winners. I follow the advice of Jack Bogle as to investing. Jack Bogle is the first person to make index funds available to folks other than the super wealth. Jack Bogle created the Vanguard Group, which is the biggest provider, by money invested, of mutual funds in the world and the second biggest provider of exchange traded funds.

I also don't understand why Pfizer didn't proceed with its phase 3 trial of a weight loss drugs due to elevated liver enzymes by only one individual. I suspect that either Pfizer was concerned about other side effects or the liver injury was more severe than has been described.

 

[Benito Camela]

The interesting part is they made it a biologic; they do that to get more favorable patent rules and timelines.

 

[skunknuts]

PFE is known historically as never making a good acquisition. I think they really fucked up by cheaping out and not buying viking, especially with what I see as a market overreaction/ misinterpretation of its recent oral data.