Is Pfizer Stock a Buy After Its $5 Billion GLP-1 Bet?

Core Insights - The GLP-1 market is dominated by Eli Lilly and Novo Nordisk, with Pfizer making significant investments to enter this space [1][2] - Pfizer's recent acquisition of Metsera for $4.9 billion aims to enhance its GLP-1 pipeline, which includes investigational drugs MET-097i and MET-233i [3][5] - The weight loss market is projected to grow from $15 billion in 2024 to $150 billion by 2035, presenting a substantial opportunity for Pfizer [8] Company Developments - Pfizer has made a series of acquisitions, including a notable $43 billion buyout of Seagen, to strengthen its pipeline [3] - The acquisition of Metsera is expected to expedite the development of oral GLP-1 therapies and less frequent dosing options [7] - Pfizer's financial performance is improving, with a 10% year-over-year revenue increase to $14.7 billion and a 30% rise in adjusted earnings per share to $0.78 in Q2 [10][11] Market Position - Pfizer's stock is currently undervalued, trading at 7.7 times forward earnings estimates, significantly lower than the healthcare industry average of 16.5 [12] - The company has received new approvals, such as the RSV vaccine Abrysvo, contributing to its revenue [11] - Pfizer's extensive pipeline, featuring over 100 active programs, is expected to yield significant clinical and regulatory successes in the future [11]