Pfizer Just Reminded Investors Why You Should Never Count Its Stock Out

Core Viewpoint - Pfizer is making strategic acquisitions to enhance its growth prospects, particularly in the GLP-1 obesity market, despite facing challenges in its stock performance and growth outlook [1][2]. Acquisition Details - On September 22, Pfizer announced the acquisition of Metsera, a clinical-stage pharmaceutical company focused on obesity and cardiometabolic diseases [3]. - Metsera's lead candidate, MET-097i, is a potential monthly injectable GLP-1 drug currently in phase 2 trials, showing a 7.5% body weight reduction after 36 days [4]. - The acquisition could cost Pfizer up to $7.3 billion, contingent on the success of Metsera's drug candidates [4]. Financial Strength and Pipeline Expansion - Pfizer has a robust financial position, generating $12.4 billion in free cash flow over the past 12 months, which supports its dividend payments and acquisition strategy [7]. - The company has 108 drug candidates in its portfolio, with a notable gap in GLP-1 obesity drugs, a market projected to reach $120 billion by 2035 [6]. Market Potential and Investor Sentiment - Analysts suggest that Pfizer's focus on the GLP-1 market could significantly strengthen its pipeline and future growth potential [6]. - Despite current challenges, Pfizer's stock is considered undervalued with a price-to-earnings ratio of less than 13, indicating potential upside for long-term investors [10].