Chantix, a drug developed by Pfizer (NYSE:PFE) for the purpose of helping patients quit smoking, is receiving unwanted attention as an Alabama judge set trial dates for the first of over 2,400 pending lawsuits filed nationwide against Pfizer over Chantix. Separately, the company has recently acquired a private company Alacer Corp, popularly known as vitamin C maker because of its Emergen-C brands, which is the largest selling vitamin C product in the US. Pfizer is one of the largest company in the healthcare industry having operations in only pharmaceuticals. Key competitors to Pfizer are Merck (NYSE:MRK), Johnson & johnson (NYSE:JNJ) and Abbott Labs (NYSE:ABT).
Chantix Drug Trial
An Alabama court has scheduled to conduct a couple of trials stemming from several lawsuits filed against Chantix. Given the severity of some of the victims, which include suicides blamed on the drug, Pfizer may need to discontinue the drug in the near future.
Pfizer markets Chantix in the U.S. and a similar drug Champix outside U.S., under Cardiovascular drugs. The drug has been found to raise heart risks by 72% instead of reducing it, according to a study. Cardiovascular diseases form nearly 14% of the $25 Trefis price estimate for Pfizer. You can drag the trend line below to see the impact on the overall Pfizer price estimate.
Alacer Corp Acquisition
Alacer Corp produces about 500 million packets of its Emergen-C brand of vitamin C. Pfizer is expected to consider Alacer’s operations under its Diversified Legacy Drugs and Alliances segment which produces products related to animal health, consumer healthcare & nutrition.
Pfizer is also considering to divest its nutritional and animal health brands because it wants to have only consumer healthcare business. In view of this, it will be expected that the market share for Diversified Legacy Drugs and Alliances will improve but may also decline if company chooses to divest part of its businesses in future. Pfizer derives nearly 32% of its value from Diversified Legacy Drugs and Alliances.