In 2023, it earned FDA approval for nine new drugs and last year it reported over a dozen product approvals from the agency. With plenty of new products coming online, Pfizer had a good chance to overcome upcoming patent cliffs and maintain its dividend-raising streak. Many investors expect pharmaceutical industry lobbyists to prevent the Trump administration from rendering CDER incapable of reviewing new drug applications at its usual pace. They could be right, but I won’t support an investment thesis that relies on industry lobbyists protecting a regulatory agency. A disappointing outcome for a weight-management candidate isn’t anywhere near the top of Pfizer’s list of problems. Investors should be far more concerned with an upcoming loss of patent-protected market exclusivity for Eliquis.
Pfizer has been looking to address the falling sales, eyeing both organic and inorganic growth. Pfizer expects to have eight blockbuster drugs by 2030, thanks to Pfizer’s acquisition of Seagen for $43 billion in December last year that will help achieve this target. Some of the potential blockbuster drugs include Atirmociclib, Vepdegestrant, Mevrometostat, and Disitamab Vedotin. Pfizer Inc.’s stock is trading at $22 with an 8% dividend yield, driven by market fears over losing vaccine revenues.
Does Pfizer pay a dividend?
We estimate Pfizer’s Valuation to be $36 per share, more than 35% above its current price of around $26. Our forecast is based on a 11x P/E multiple for PFE and expected earnings of $3.15 on a per-share and adjusted basis for the full year 2025. The 11x figure is lower than the stock’s average forward P/E ratio of over 14x over the last five years. A lower valuation multiple seems reasonable given the decline in sales and uncertainty about future revenue drivers.
China and Japan make up roughly 12% of the business, while the rest come from the “rest of the world”. It employs roughly 79,000 people and is headquartered in New York state. Pfizer (PFE) is ending a late-stage trial of its once-daily GLP-1 pill, Danuglipron, after a participant experienced a liver injury. Yahoo Finance Senior Reporter Anjalee Khemlani joins Market Domination Overtime to break down the details, as well as preview what to watch as Johnson & Johnson (JNJ) prepares to report earnings.
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- That said, at current levels of $26, PFE stock is trading at just 8x forward earnings, which seems very low.
- As per the strategist, the valuations are required to adjust further before equities can shift into the “hope” phase of the next cycle.
- On Oct. 29, 2021, the FDA extended the EUA for the vaccine to include children ages 5–11.
As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics. This plan includes massive layoffs and cutting down on its research and development spending. Separately, the company intends to shift to biologics drugs for higher reliance on revenues. Biologics are more expensive and could drive up Pfizer’s pricing and margins. Pfizer has faced headwinds post-COVID, but remains a key player with a robust R&D pipeline and an attractive 7.5%+ dividend yield. The pharmaceutical industry thrives on high R&D investment and patent…
By the time he 80s rolled around, the company was trading on the New York Stock Exchange and on the path to developing today’s blockbuster lineup. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Please bear with us as we address this and restore your personalised lists.
Analyst Price Targets
The drugmaker said one patient became ill after being treated with its experimental weight-loss drug, danuglipron. U.S. President Donald Trump said on Monday that he expects to impose tariffs on imported pharmaceuticals in the not-too-distant future. Dr. Scott Gottlieb, former FDA Commissioner, joins ‘Squawk Box’ to discuss current pharmaceutical imports under investigation, moving production for branded and generic drugs elsewhere, and much more.
- Therefore, the impact on the company’s real value is expected to be muted.
- Looking at Pfizer’s profitability, its adjusted net margin rose from 28.5% in 2021 to 37.6% in 2022 before declining to 18.0% in 2023.
- Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.
- Discover which analysts rank highest for PFE overall weighted by direction, price target, and price movement.
Discover which analysts rank highest for PFE overall weighted by direction, price target, and price movement. A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. A crippled FDA could be a huge problem for Pfizer and its peers who must constantly launch new drugs to overcome exclusivity losses for established products. Having the former CDER director on staff could be advantageous for Pfizer, but I’ll be pleasantly surprised if the FDA completes new drug approvals at half the usual pace this year.
Eliquis is expected to lose patent-protected exclusivity in 2026, although generic competition in the U.S. market isn’t expected to begin until 2028. Pfizer’s second-largest revenue stream in 2024 could also start drying up soon. The Prevnar family of vaccines was responsible for over 10% of total sales last year. Prevnar 13 is expected to lose patent-protected exclusivity in the U.S. next year. The Trump administration’s proposed tariffs on pharmaceuticals have caused significant market turmoil today, with major Pharma stocks plummeting globally.
US Advisory Panel Votes To Expand Recommendation For Pfizer, GSK’s RSV Vaccines For Older Adults Below 60 Years
Sales of the oral blood thinner it markets in partnership with Bristol-Myers Squibb rose to $7.4 billion, or 11.6% of total revenue last year. The end of Pfizer’s danuglipron program highlights just how risky the drug-development process can be. According to the company, it discontinued development after just one patient in a dose-optimization study experienced a liver injury that could have been caused by the experimental GLP-1 pill. That said, at current levels of $26, PFE stock is trading at just 8x forward earnings, which seems very low. We think the potential headwinds for Pfizer are well priced in, and investors will likely be better off picking bull flag rules PFE stock in the current fall for robust long-term gains. On the positive side, a plug on falling sales this year and an improvement in profitability are some of the factors that bode well for Pfizer.
About Pfizer Stock (NYSE:PFE)
The two companies completed their submission of the BLA in May 2021. It was the first COVID-19 vaccine to receive full approval from the FDA. In 2020, Pfizer co-developed with BioNTech SE a vaccine against COVID-19, the virus whose rapid spread prompted the World Health Organization (WHO) to declare a global pandemic in March 2020. On Dec. 11, 2020, the Pfizer-BioNTech vaccine became the first COVID-19 vaccine to receive emergency use authorization (EUA) from the U.S. The vaccine was approved for emergency use for individuals 16 years of age and older. On May 10, 2021, the axitrader review FDA expanded the EUA for the Pfizer-BioNTech vaccine to include adolescents ages 12–15.
Returns for PFE stock were 67% in 2021, -10% in 2022, and -41% in 2023. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, is considerably less volatile. And it has outperformed the S&P 500 each year over the same period.
Pfizer said it would end development of its experimental daily weight loss pill after a patient experienced a liver injury that was potentially caused by the drug in a trial. Pfizer was founded in 1849 and is headquartered in New York, NY. As of 2022, the company had a robust pipeline of potential treatments, with more than 220 in some stage of clinical trials. Among its leading candidates is a vaccine for RSV, a life-threatening respiratory disease affecting children.
Financial Performance
According to reporting from STAT, more than a few FDA employees involved in the new drug approval process were among thousands recently fired from the agency. Drug developers need to communicate with regulators at the Food and Drug Administration (FDA) before, during, and after they run clinical trials for new drug candidates. Tensions between Washington and Beijing remain high, however, with Trump ratcheting up duties… Nine out of ten “Safest” BBB dividend dogs are ready to buy, with annual dividends from $1K invested exceeding single share prices. Analysts expect 32.86% to 53.48% net gains from top-ten BBB dogs by …
Pfizer Inc. was founded in 1849 and is headquartered in New York, New York. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average how to research a stock with pictures gain of +23.89% per year. These returns cover a period from January 1, 1988 through March 3, 2025.