Stock Market Today, Dec. 16: Pfizer Falls After Cutting 2025 Revenue Forecast

Core Viewpoint - Pfizer's declining COVID-19 cash flows are expected to result in minimal growth for 2026, with mergers and acquisitions taking time to yield results [1][3]. Financial Performance - Pfizer's stock closed at $25.53, down 3.41%, with a market capitalization of $150 billion [2]. - The company has trimmed its 2025 revenue guidance to $62 billion, down from a previous range of $61 billion to $64 billion, and reaffirmed its adjusted EPS for 2025 at $3.00 to $3.15 [5]. - For 2026, Pfizer anticipates flat growth with revenues projected between $59.5 billion and $62.5 billion, primarily due to declining revenue from COVID-19 drugs and expiring patents [5]. Market Impact - Pfizer's announcement led to a negative impact on its industry peers, with Merck and Johnson & Johnson experiencing declines of 1.99% and 2.27%, respectively, as investors reassessed the earnings potential of large pharmaceutical companies [4]. Strategic Initiatives - The company is implementing cost-cutting measures and reallocating funds towards research and development, including a recent acquisition of a biopharmaceutical company focused on obesity and cardiometabolic diseases [6]. - Pfizer plans to advance obesity drug trials in 2026, although it may take time for these new initiatives to generate significant results [6].