Pfizer shares close lower on Wednesday, company to be reorganized into three units

According to an announcement by Pfizer Inc (PFE) on Wednesday, the company is to be split into three units – Innovative Medicines, Established Medicines and Consumer Healthcare. At present, Pfizer is organized in two units – Innovative Medicines, which also encompasses the companys consumer business, and Essential Health.

The reorganization is to come into effect at the beginning of fiscal 2019.

Pfizer shares closed lower for the first time in the past seven trading sessions in New York on Wednesday. The stock went down 0.59% ($0.22) to $37.21, after touching an intraday low at $37.16, or a price level not seen since July 9th ($37.01).

Shares of Pfizer Inc have risen 2.73% so far in 2018 compared with a 3.76% gain for the underlying index, S&P 500 (SPX).

In 2017, Pfizer Inc’s stock went up 11.51%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

Once the changes take place, Pfizers Innovative Medicines business will also encompass biosimilars and a new hospital business unit. Innovative Medicines, together with Consumer Healthcare, is expected to generate about three-quarters of Pfizers annual revenue.

At the same time, the Established Medicines business is to encompass most of Pfizers off-patent brands. The latter include neurological disease treatment Lyrica, Viagra and several generic drugs.

Last October, Pfizer announced that it was exploring the spin-off or sale of its Consumer Healthcare unit, while in May this year it said that an acceptable offer had not yet been received. Pfizers Consumer Healthcare business is evaluated at approximately $15 billion.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Pfizer Inc’s stock price, have a median target of $41.00, with a high estimate of $48.00 and a low estimate of $31.00. The median estimate represents a 10.19% upside compared to the closing price of $37.21 on July 11th.

The same media also reported that 9 out of 20 surveyed investment analysts had rated Pfizer Inc’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Pfizer stock are presented as follows:

R1 – $37.23
R2 – $37.26
R3 (Range Resistance – Sell) – $37.28
R4 (Long Breakout) – $37.35
R5 (Breakout Target 1) – $37.43
R6 (Breakout Target 2) – $37.46

S1 – $37.19
S2 – $37.16
S3 (Range Support – Buy) – $37.14
S4 (Short Breakout) – $37.07
S5 (Breakout Target 1) – $36.99
S6 (Breakout Target 2) – $36.96

By using the traditional method of calculation, the weekly levels of importance for Pfizer Inc (PFE) are presented as follows:

Central Pivot Point – $36.78
R1 – $37.57
R2 – $38.02
R3 – $38.81
R4 – $39.59

S1 – $36.33
S2 – $35.54
S3 – $35.09
S4 – $34.63