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Prediction: This $43 Billion Bet Will Help Pfizer Stock Take Off in 2025.
PFEPfizer(PFE) The Motley Fool·2024-12-29 09:15

Pfizer's Strategic Moves - Pfizer launched a record 19 new products or indications in 18 months to compensate for declining coronavirus product sales [2] - The company made a 43billionacquisitionofSeagen,anoncologyspecialistfocusedonantibody−drugconjugates(ADCs)[2]−Pfizeraimstohaveeightormoreoncologyblockbustersonthemarketby2030,leveragingSeagen′sstrongADCpipeline[11]FinancialPerformanceandMarketPosition−Pfizer′soncologyportfolio,includingSeagenproducts,deliveredover3043 billion acquisition of Seagen, an oncology specialist focused on antibody-drug conjugates (ADCs) [2] - Pfizer aims to have eight or more oncology blockbusters on the market by 2030, leveraging Seagen's strong ADC pipeline [11] Financial Performance and Market Position - Pfizer's oncology portfolio, including Seagen products, delivered over 30% revenue growth in the recent quarter [3] - The company became the third-largest U.S. oncology company by sales in the first half of the year [3] - Pfizer generated over 100 billion in total revenue in 2022, largely due to its coronavirus vaccine and treatment [8] Challenges and Future Outlook - Pfizer's earnings and share price have declined by over 50% in the past three years due to waning demand for coronavirus products [4] - The company expects to lose 17billioninrevenuefrom2025through2030duetotheexpirationofkeypatentsfordrugslikeEliquisandIbrance[10]−TheSeagenacquisitionispredictedtohelpPfizerstocktakeoffby2025,makingitanopportunetimetoinvestinthecompany[7][9]Seagen′sContributiontoGrowth−Seagen′sdrugs,includingAdcetris,Padcev,Tukysa,andTivdak,haveseensignificantrevenuegrowth,withPadcev′srevenuedoublingtoover17 billion in revenue from 2025 through 2030 due to the expiration of key patents for drugs like Eliquis and Ibrance [10] - The Seagen acquisition is predicted to help Pfizer stock take off by 2025, making it an opportune time to invest in the company [7][9] Seagen's Contribution to Growth - Seagen's drugs, including Adcetris, Padcev, Tukysa, and Tivdak, have seen significant revenue growth, with Padcev's revenue doubling to over 400 million [11] - The acquisition has strengthened Pfizer's expertise in oncology and is expected to drive future growth [9][11] Historical Context - Pfizer has been in operation for 175 years, historically selling a broad range of drugs for various indications [5] - The company gained significant attention during the pandemic with the development of its coronavirus products, which initially drove substantial growth [5]