Is It Time to Dump Your Shares of Pfizer?

Core Insights - Pfizer's stock has declined nearly 50% over the past three years due to reduced demand for coronavirus products, approaching patent expirations for key drugs, and overall revenue decline [2][4]. Financial Performance - Pfizer achieved record high revenue exceeding $100 billion in 2022, driven by demand for its coronavirus products and contributions from established drugs like Eliquis and Ibrance [3]. - However, revenue fell to approximately $63 billion in the most recent full year as demand for coronavirus products waned and the company faced a patent cliff [4]. Strategic Initiatives - Pfizer has initiated a cost realignment plan aimed at delivering over $7 billion in cost savings by 2027 and has launched several new drugs expected to generate about $20 billion in revenue by 2030 from non-coronavirus products [5]. - The acquisition of Seagen in 2023 is part of Pfizer's strategy to expand its oncology portfolio, with Seagen's products showing double-digit growth [6]. Market Opportunities - Pfizer is targeting the obesity drug market, projected to reach nearly $100 billion by the end of the decade, through a proposed acquisition of biotech Metsera, which is in phase 2 development [8]. - The recent bid by Novo Nordisk for Metsera introduces uncertainty for Pfizer, as it challenges their acquisition plans [9][10]. Long-term Outlook - Despite current challenges, Pfizer's ongoing efforts to improve its cost structure and develop new products suggest a gradual recovery, with the potential for meaningful revenue growth in the coming years [11][12]. - The stock is considered reasonably priced at about 8x forward earnings estimates, indicating it may be a good time for investors to hold rather than sell [12].