Wyeth Pressured by Generics

Wyeth Pharmaceuticals (WYE) is one of the world's largest research-driven pharmaceutical and healthcare products companies. It focuses on the discovery, development, manufacturing and marketing of pharmaceuticals, vaccines, biotechnology products and non-prescription medicines.

Wyeth's recent performance has been stunted due to the entry of generic Protonix in late 2007. EPS growth through 2009 will benefit from recently implemented productivity initiatives and share repurchases. Recent pipeline setbacks and generic competition will cause a drag on financial performance.

The next wave of sustainable revenue growth will not come until 2012. We believe the current valuation is fair and rate the shares a Hold with a $42 price target.

Jason Napodano, CFA contributed to this report.

Read the full analyst report on WYE

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