Pfizer (PFE) Braces for Bumpy Years as Growth Pushed Out to 2029

Core Viewpoint - Pfizer Inc. is expected to face challenging years ahead, with revenue growth not anticipated until 2029 due to declining sales from COVID-related products and patent expirations on key drugs [2][3]. Group 1: Revenue and Growth Outlook - Pfizer's management forecasts that revenue will not return to growth until 2029, primarily due to lower sales of its COVID vaccine and treatment, as well as price cuts promised to the US government [2][3]. - The company is focusing on developing new blockbuster medicines, particularly in the obesity treatment market, to drive future growth [3][4]. Group 2: Cost Control and Efficiency - Pfizer aims to save over $7 billion annually through 2027 as part of a broader efficiency initiative [4]. - The company is actively rebuilding its drug pipeline through internal development and acquisitions, such as the recent purchase of Metsera, which is working on obesity treatments [4]. Group 3: Shareholder Returns - Despite muted revenue growth, Pfizer offers a dividend yield of approximately 6.9%, which management supports despite concerns about sustainability [5]. - Earnings coverage is expected to provide additional support for the dividend payout [5].