You may chase Pfizer up if you want. It's still a cheap stock (and will remain so by my definition until the high teens). You get a mature company, but one with a high yield (even after the recent halving of the dividend) a broad portfolio of drugs aimed at global markets--and a likely merger with Wyeth.
That said, you can get Pfizer cheaper by buying the shares of Wyeth, each of which will give you $33 in cash and .985 shares of Pfizer. On this basis, the &... price of Pizer is less than $12 a share, versus over $15 a share in the open market. ... has always been a discount, but one that has widened recently, because Wyeth shares have been "disconnected" from Pfizer shares.
Could the deal fall apart? It's possible but not likely. Pfizer needs Wyeth to round out its line of drugs, and maintain its leadership position against the recent merger of Merck-Schering Plough. And Wyeht wants this deal because it will likely end up as a "reverse merger" (its middle management is better regarded than Pifzer's, by both sides, and Wyeth's chairman offered to step aside to make this deal happen). I don't usually do risk arbitrage plays, but like this one, having made (almost) "free" money on the takeover of Anheuser Busch last year.
Long both PFE and WYE