Will Pfizer Cut Its Own Throat? (PFE)

Pfizer is raising prices on its drugs an average of about 5% going into 2007. Lipitor, the world’s top-selling drug, will see of price increase of at least that much.

After the failure its next big drug, torcetrapib, in trial, Moody’s cut Pfizer’s debt rating while the company raised its dividend to help placate investors. But, at $26, the company still trades at below the $27.86 level where it changed hands before the news of the failed trial.

Pfizer’s timing on the price increases is expecially bad, even if it needs the money to hit revenue goals. With the new Democrat lead Congress coming into Washington, Pfizer has pinned a "Kick Me" sign to its back.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.