2 Healthcare Stocks for Individual Investors With a 20-Year Time Horizon

Industry Overview - The healthcare industry is characterized by continuous innovation in biotechnology, pharmaceuticals, medical devices, and digital health, leading to new treatments and care delivery models that can drive significant growth for leading companies in the coming decades [1] Company Analysis: Pfizer - Pfizer has faced a significant revenue decline due to reduced sales of its COVID-19 products, resulting in a corresponding drop in stock price [4] - The company is focusing on transitioning to a new growth phase through strategic acquisitions, cost-cutting initiatives, and expanding its product pipeline [4][5] - Non-COVID operational revenue is improving, driven by strong performance from products like Vyndaqel, Abrysvo, and Padcev [5] - Pfizer is implementing a cost-realignment program aimed at achieving net savings of $7.2 billion by 2027, with a major focus on oncology following the $43 billion acquisition of Seagen [6] - The current pipeline includes candidates for ulcerative colitis, hemophilia, and obesity, with promising results from Metsera's GLP-1 candidate showing a mean weight loss of up to 14.2% in a phase 2a trial [7] - In the first half of 2025, Pfizer reported net income of $5.9 billion on revenue of $28.4 billion, marking an 86% improvement in net income from the same period in 2024, with Q2 revenue growing by 10% [8] - Despite recent stock price challenges, Pfizer's dividend yield is close to 7%, and the company has a strong history of increasing its dividend [8]