Morgan Stanley Reports Early Generic Lipitor Risk Explained And Quantified For Pfizer

In a report published by Morgan Stanley, Pfizer's (NYSE: PFE) early generic Lipitor risk is explained and quantified.

Morgan Stanley said that Mylan filed a lawsuit to compel FDA to act on generic Lipitor. “Mylan believes that FDA should deny Ranbaxy's exclusivity if FDA invoked its Application Integrity Policy against Ranbaxy's Lipitor application. Mylan's lawsuit states that FDA has not responded to repeated requests to discuss the matter, and it is attempting to compel FDA to approve its generic Lipitor in June '11. We estimate $0.11 (5%) downside risk to our 2011E of $2.23 if Mylan succeeds.”

Pfizer closed yesterday at $20.18.