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Recently some investors have been negative on the pharmaceutical industry, but Pfizer looks good here.

With a market cap of $190 billion, Pfizer is the world's largest research pharmaceutical company, and the company is set to report its quarterly results this Friday.

Analysts expect 57 cents in EPS on a 12.3% increase in sales and a 9.3% increase in profits.

Over the past year, shares have traded in a fairly narrow range, and the stock has been hemmed in by the loss of its patent-protected monopoly on several highly profitable drugs.

In order to address the loss of revenue, management has cut costs by laying off 10,000 workers and closing or selling five plants.

Although the word "layoffs" makes people cringe, they ultimately benefit a corporation's bottom line.

The loss of patents does hurt the company, but it is part of the normal cycle with pharmaceutical researchers and producers.

With its huge free cash flow of nearly $20 billion and its investment into research and development, Pfizer has the capacity to replace lost patents.

In its R&D role, Pfizer is engaging in an important role for society in seeking new solutions to medical ailments, while at the same time boosting its profits.

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