Typical of the big drugmakers, Pfizer is facing many challenges including: patent expirations, pricing pressures and developing blockbuster drug replacements. I think Pfizer has to redefine how they develop and market drugs. Until there is evidence of a turnaround, I think the stock will range trade, supported by a good dividend yield. An interesting approach to this development is buying the biotechs that are potential buyout candidates for the big pharmas.

Besides Pfizer, the major drug companies are also going through the same challenges. I think a better play is Johnson and Johnson. They have exposure to different parts of the healthcare industry.