Pfizer, Merk report Q4 results: Citi's Geoff Meacham on key takeaways

Group 1: Company Performance - Pfizer's stock is down by 5%, while Merck is holding up better [1] - Merck's guidance raised concerns due to loss of exclusivity (LOE) issues, but investors are more optimistic about its pipeline following numerous business development (BD) deals [2][3] - Pfizer's fourth quarter performance was solid with no change to guidance, but competitive metadata in phase two development of their GLP-1 drug indicates potential [3] Group 2: Investment Outlook - A neutral rating is given for both Pfizer and Merck, with a preference for Merck due to its aggressive business development efforts, despite ongoing patent cliff concerns [3][4] - The focus is on growth-oriented stocks in the sector, with Eli Lilly, Gilead, and Vertex being favored for their clean growth stories [5][6] - Future stock performance will depend on capital deployment strategies such as business development, dividend hikes, and buybacks [7]