PFE's New & Acquired Drugs Hold Key to Revenue Growth Amid Headwinds

Core Insights - Pfizer's COVID product sales have declined post-pandemic, but non-COVID operational revenues have improved in 2024 and early 2025, driven by key products and acquisitions [1][4][8] Group 1: Product Performance - Pfizer had a record year in 2023 with nine new drug approvals contributing to revenue growth [2] - The acquisition of Seagen in December 2023 added four antibody-drug conjugates (ADCs) to Pfizer's oncology portfolio, significantly boosting revenues in 2024 and early 2025 [3][8] Group 2: Competitive Landscape - Major competitors in the oncology space include AstraZeneca, Merck, and Bristol-Myers, with AstraZeneca's oncology sales comprising about 41% of total revenues and growing by 13% in Q1 2025 [5] - Merck's Keytruda accounts for approximately 50% of its pharmaceutical sales, while Bristol-Myers' Opdivo represents around 20% of its total revenues [6] Group 3: Financial Performance and Valuation - Pfizer's stock has declined by 4.4% in 2023, contrasting with a 3.1% increase in the industry [7] - The company's shares are trading at a forward P/E of 7.97, below the industry average of 15.54 and its 5-year historical mean of 10.91 [8][9] - Zacks Consensus Estimate for 2025 earnings has increased from $2.98 to $3.06 per share over the past 60 days [11]