Drugmaker Pfizer has agreed to lower drug costs under a deal struck with the Trump administration, President Donald Trump said Tuesday, as he promised similar deals will be struck with other drugmakers facing a threat of tariffs.The announcement, which Trump made with Pfizer CEO Albert Bourla at the White House, came as the Republican president has for months sought to lower drug costs. It also came as Washington faced a federal government shutdown at midnight amid a standoff between Democrats and Republic ...

Pfizer has agreed to lower the cost of prescription drugs for Medicaid under a deal struck with the Trump administration, President Donald Trump said Tuesday as he promised similar deals with other drugmakers under the threat of tariffs.Trump made the announcement at the White House alongside Pfizer CEO Albert Bourla just hours ahead of a possible government shutdown in a partisan standoff over health care and spending.Pfizer Inc., one of the largest U.S. drugmakers, produces the COVID-19 vaccine Comirnaty ...

Core Insights - Pfizer reported strong Q2 2025 results, with adjusted EPS of 78 cents, a 30% increase year-over-year, and revenues of $14.7 billion, up 10% [1][9] - The company reaffirmed its revenue outlook for 2025 while raising its adjusted EPS guidance, indicating strong fundamentals despite short-term fluctuations [2] - Pfizer's oncology segment is a key growth driver, with revenues rising 9% in H1 2025, bolstered by the Seagen acquisition and new product launches [3][9] Financial Performance - Revenues from key products such as Vyndaqel, Padcev, Lorbrena, Paxlovid, and Comirnaty vaccine contributed positively, while Ibrance saw a decline [1] - The company expects a revenue CAGR of approximately 6% from 2025 to 2030, supported by a diversified portfolio and new product launches [6] - Pfizer's non-COVID operational revenues improved, with new and acquired products generating $4.7 billion in H1 2025, a 15% operational increase year-over-year [5] Strategic Developments - Pfizer's acquisition of Seagen is expected to contribute over $10 billion in risk-adjusted revenues by 2030, enhancing its oncology pipeline [7] - The company is expanding its oncology biosimilars portfolio and advancing several candidates in late-stage development [3][4] - Pfizer is also working on label expansions for existing products across oncology and non-oncology categories [4] Market Challenges - Sales of COVID-related products have significantly declined, with projections of around $11 billion in 2024 compared to $56.7 billion in 2022, leading to uncertainty in future revenues [10] - The company anticipates a $1 billion unfavorable impact from the Medicare Part D redesign under the Inflation Reduction Act [12] - Pfizer faces potential revenue impacts from the loss of exclusivity for several key products between 2026 and 2030 [11] Valuation and Investment Outlook - Pfizer's stock is trading below industry averages, with a forward P/E ratio of 7.93 compared to the industry average of 13.71, making it attractive for value investors [19] - The Zacks Consensus Estimate for earnings has seen upward revisions for 2025 and 2026, indicating positive market sentiment [22] - The company plans to achieve $7.7 billion in cost savings by the end of 2027, which should support profit growth despite anticipated revenue challenges [26]

Core Insights - Pfizer (PFE) reported strong second-quarter 2025 results with adjusted earnings per share of 78 cents, exceeding the Zacks Consensus Estimate of 58 cents, and reflecting a 30% year-over-year increase [1] - Total revenues reached $14.65 billion, a 10% increase from the previous year, significantly surpassing the Zacks Consensus Estimate of $13.78 billion [1] Revenue Breakdown - Revenues from key products such as Vyndaqel, Padcev, Lorbrena, Paxlovid, and the BioNTech-partnered Comirnaty vaccine increased during the quarter, while U.S. revenues were impacted by higher manufacturer discounts due to the Inflation Reduction Act [2] - International revenues rose 6% operationally to $5.76 billion, while U.S. revenues increased 13% to $8.9 billion [2] Expense Management - Adjusted selling, informational, and administrative (SI&A) expenses decreased 8% operationally to $3.4 billion, and adjusted R&D expenses fell 9% to $2.44 billion [3] Segment Performance - Primary Care segment sales declined 12% operationally to $5.54 billion, while Specialty Care sales increased 7% to $4.38 billion, and Oncology sales rose 11% to $4.39 billion [4] - Eliquis sales rose 6% to $2.0 billion, Prevnar family revenues increased 2% to $1.38 billion, and Comirnaty sales surged 95% year over year to $381 million [5][6][7] Guidance and Future Outlook - Pfizer raised its 2025 adjusted EPS guidance to a range of $2.90 to $3.10, while maintaining total revenue guidance of $61 billion to $64 billion [11][17] - The company expects R&D expenses to be between $10.4 billion and $11.4 billion, and SI&A spending to range from $13.1 billion to $14.1 billion [20] Challenges and Strategic Initiatives - Pfizer faces challenges including declining sales of COVID-19 products, U.S. Medicare Part D headwinds, and potential patent expirations for key products between 2026 and 2030 [24] - The company anticipates cost cuts and internal restructuring to yield savings of $7.2 billion by the end of 2027, aiming to drive profit growth despite expected revenue volatility [26]

Industry Overview - The second-quarter earnings season for the drug and biotech sector is in full swing, with major companies like Pfizer, Eli Lilly, Amgen, Gilead Sciences, and Novo Nordisk set to announce results [1] - The earnings season began mid-July with Johnson & Johnson reporting strong results, exceeding estimates for both earnings and sales [1] Company Performance Pfizer (PFE) - Pfizer has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 43.49% [6] - The Zacks Consensus Estimate for second-quarter sales and earnings is $13.78 billion and 58 cents per share, respectively [6] - Higher sales from products like Vyndaqel and Padcev are expected to offset weaker sales from Prevnar and Ibrance [8] Eli Lilly (LLY) - Eli Lilly's performance has been mixed, exceeding earnings expectations in two of the last four quarters, with an average earnings surprise of 6.69% [11] - The Zacks Consensus Estimate for second-quarter sales and earnings stands at $14.75 billion and $5.61 per share, respectively [11] - Strong demand for Mounjaro and Zepbound is anticipated to drive top-line growth [12] Amgen (AMGN) - Amgen has shown strong performance, beating earnings estimates in each of the last four quarters, with an average earnings surprise of 8.34% [14] - The Zacks Consensus Estimate for second-quarter sales and earnings is $8.86 billion and $5.26 per share, respectively [14] - Sales growth is expected to be driven by products like Evenity and Repatha, despite price declines due to higher rebates [15] Gilead Sciences (GILD) - Gilead's performance has been mixed, with earnings beating estimates in three of the last four quarters, averaging a surprise of 16.48% [17] - The Zacks Consensus Estimate for second-quarter sales and earnings is $6.95 billion and $1.95 per share, respectively [17] - Increased demand for HIV therapies like Biktarvy is expected to boost sales [18] Novo Nordisk (NVO) - Novo Nordisk's performance has been mixed, with earnings beating estimates in one of the last four quarters, delivering an average surprise of 0.02% [20] - The Zacks Consensus Estimate for second-quarter sales and earnings is $11.79 billion and 93 cents per share, respectively [20] - The company lowered its 2025 sales and operating profit growth outlook due to weaker momentum in key markets for its semaglutide-based drugs [21]

Core Viewpoint - Pfizer is at a critical juncture as it approaches the release of its Q2 earnings on August 5, 2025, with analysts expecting an EPS of $0.58 and revenue of $13.78 billion, reflecting a 3.3% decline in profit year-over-year and a 3.7% increase in revenue, indicating a delicate balance between growth momentum and structural pressures [1] Financial Performance - Over the past four quarters, Pfizer's average earnings have exceeded expectations by 43.49%, with the most recent quarter showing a 43.75% surprise, driven by cost control measures and strong demand for niche products like Vyndaqel and Padcev [1] - Analysts have slightly lowered EPS expectations by $0.23, reflecting concerns over pricing pressures from the Inflation Reduction Act (IRA) and weakened competitiveness of core products like Ibrance and Xeljanz [1] - The probability of exceeding earnings expectations this quarter is +1.43%, but historical data shows that such surprises have led to average returns of -0.90%, -2.13%, and -2.76% over 3, 10, and 30 days post-announcement, respectively, with a 41.67% success rate indicating that market expectations may have already been priced in [1] Revenue Structure - The oncology segment is a growth driver, with Padcev and Lorbrena performing well, and the acquisition of Seagen continuing to yield synergies; Padcev's consensus forecast is $494 million, closely aligning with model predictions of $499.2 million [2] - Vyndaqel is expected to exceed $1.6 billion in sales, while the primary care sector faces headwinds, with Prevnar sales projected to decline to $1.36 billion and Eliquis under pressure from IRA pricing restrictions [2] - Comirnaty vaccine sales are expected to reach $193 million due to international demand, but Paxlovid's outlook is weakening as infection rates decline [2] Valuation Insights - Pfizer's current P/E ratio of 17.49 is at a 12% discount to its ten-year average of 19.82, appearing attractive; however, compared to the pharmaceutical industry average P/E of 25.27 and peers like Eli Lilly, Johnson & Johnson, and Novartis, Pfizer's valuation advantage is not significant [2] - A five-year EBITDA growth rate of -2.60% raises concerns about growth potential, leading to a lack of PEG ratio, highlighting fundamental growth issues [2] - The 7.32% dividend yield is appealing to income-focused investors, but a 123.62% payout ratio suggests that dividend payments exceed earnings, raising questions about long-term sustainability [2] Short-term Strategy - Zacks ranks Pfizer at 3 (Hold), with a +1.43% probability of exceeding earnings expectations and a historical surprise rate above 43%, supporting a pre-earnings report positioning [3] - Long-term concerns include potential IRA pricing pressures on U.S. market profitability, delays in the R&D pipeline affecting the transition from older drugs like Ibrance, and the risk of dividend adjustments due to high payout ratios amid declining earnings [3] - Overall, Pfizer's Q2 earnings report is seen as a significant short-term trading catalyst, with historical performance and low valuations providing a basis for buying; however, long-term value realization depends on breakthroughs in the innovation pipeline and improvements in profit margins [3]

Core Viewpoint - Pfizer is at a critical juncture as it approaches the release of its Q2 earnings on August 5, 2025, with a complex performance landscape characterized by resilience and challenges, as analysts project an EPS of $0.58 and revenue of $13.78 billion, reflecting a 3.3% decline in profit year-over-year and a 3.7% increase in revenue [1] Financial Performance - Pfizer's average earnings have exceeded expectations by 43.49% over the past four quarters, with the most recent quarter showing a 43.75% surprise, driven by cost control measures and strong demand for niche products like Vyndaqel and Padcev [1] - Analysts have slightly lowered EPS expectations by $0.23, indicating concerns over pricing pressures from the Inflation Reduction Act (IRA) and weakened competitiveness of core products like Ibrance and Xeljanz [1] Revenue Structure - The oncology segment is identified as a growth engine, with Padcev and Lorbrena performing well, and the acquisition of Seagen continuing to yield synergistic benefits; Padcev's consensus forecast aligns closely with model predictions at approximately $494 million [4] - Vyndaqel is expected to exceed $1.6 billion in sales, while primary care faces headwinds, with Prevnar sales projected to decline to $1.36 billion and Eliquis facing revenue pressure due to IRA pricing restrictions [4] Valuation and Dividend Concerns - Pfizer's current P/E ratio of 17.49 is at a 12% discount to its ten-year average of 19.82, appearing attractive but not significantly better than the pharmaceutical industry average of 25.27 [4] - The five-year EBITDA growth rate of -2.60% raises concerns about growth sustainability, and a high dividend yield of 7.32% coupled with a payout ratio of 123.62% suggests that dividend payments exceed earnings, casting doubt on long-term sustainability [5] Short-term and Long-term Outlook - Short-term strategies are supported by Zacks' ranking of 3 (hold), a +1.43% probability of earnings surprises, and historical surprise performance exceeding 43%, indicating potential for pre-earnings positioning [5] - Long-term value realization is contingent upon breakthroughs in the innovation pipeline and improvements in profit margins, with caution advised due to concerns over EBITDA decline and dividend sustainability [5]

Core Viewpoint - Pfizer is at a critical juncture as it approaches its Q2 earnings release on August 5, 2025, with a complex performance landscape characterized by resilience and challenges, as analysts project an EPS of $0.58 and revenue of $13.78 billion, reflecting a 3.3% decline in profit year-over-year and a 3.7% increase in revenue [1] Financial Performance - Over the past four quarters, Pfizer's average earnings have exceeded expectations by 43.49%, with the most recent quarter showing a 43.75% surprise, driven by cost control measures and strong demand for niche products like Vyndaqel and Padcev [1] - Analysts have slightly lowered EPS expectations by $0.23, indicating concerns over pricing pressures from the Inflation Reduction Act (IRA) and weakened competitiveness of core products like Ibrance and Xeljanz [1] Revenue Structure - The oncology segment has emerged as a growth engine, with Padcev and Lorbrena performing well, and the acquisition of Seagen continuing to yield synergistic benefits; Padcev's consensus forecast aligns closely with model predictions at approximately $494 million [4] - Vyndaqel is expected to exceed $1.6 billion in sales, while primary care is facing headwinds, with Prevnar sales projected to decline to $1.36 billion and Eliquis experiencing revenue pressure due to IRA pricing restrictions [4] Valuation and Dividend Concerns - Pfizer's current P/E ratio of 17.49 is at a 12% discount to its ten-year average of 19.82, appearing attractive; however, compared to the pharmaceutical industry average P/E of 25.27, Pfizer's valuation advantage is not significant [4] - A five-year EBITDA growth rate of -2.60% raises concerns about growth sustainability, and a high dividend yield of 7.32% coupled with a 123.62% payout ratio suggests that dividend payments exceed earnings, casting doubt on long-term sustainability [5] Short-term and Long-term Outlook - Short-term strategies are supported by Zacks' ranking of 3 (hold), a +1.43% probability of earnings surprises, and historical surprise performance exceeding 43%, indicating potential for positioning before the earnings report [5] - Long-term value realization depends on breakthroughs in the innovation pipeline and improvements in profit margins, with caution advised due to concerns over EBITDA decline and dividend sustainability [5]

Core Viewpoint - Pfizer is set to report its second-quarter 2025 earnings on August 5, with sales and earnings estimates of $13.78 billion and $0.58 per share, respectively. Recent estimates for 2025 earnings have increased slightly from $3.06 to $3.07 per share over the past month [1][7]. Earnings Performance - Pfizer has consistently exceeded earnings expectations in the last four quarters, achieving an average earnings surprise of 43.49%. The most recent quarter saw an earnings surprise of 43.75% [3][7]. Earnings Surprise Prediction - Pfizer has an Earnings ESP of +1.43% and holds a Zacks Rank 3 (Hold), suggesting a potential positive surprise in the upcoming earnings report [4][5]. Sales Expectations - Strong sales from products like Vyndaqel and Padcev are anticipated to counterbalance declines in sales from Eliquis, Ibrance, and Prevnar. The Zacks Consensus Estimate for Eliquis alliance revenues is $1.95 billion, while the estimate for Prevnar family vaccine sales is $1.36 billion [7][9][10]. Impact of Legislation - The redesign of Medicare Part D under the Inflation Reduction Act (IRA) is expected to negatively affect U.S. revenues, particularly for higher-priced drugs such as Vyndaqel and Ibrance [8]. Segment Analysis - In the Primary Care segment, alliance revenues from Eliquis are projected to decline due to IRA-driven lower pricing. In Oncology, Ibrance sales are likely to be impacted by competitive pressures and generic entries, while sales of Xtandi and Lorbrena are expected to rise [9][14]. Product Performance - Sales of the COVID-19 vaccine Comirnaty are expected to have increased, while sales of the antiviral pill Paxlovid are likely to have declined due to lower infection rates. The Zacks Consensus Estimate for Comirnaty revenues is $193 million, while for Paxlovid it is $299 million [11][12]. Valuation and Stock Performance - Pfizer's stock has decreased by 7.5% this year, compared to a 2.9% decline in the industry. The stock is currently trading at a price/earnings ratio of 7.61, which is lower than the industry average of 14.30 and its own 5-year mean of 10.82 [18][21]. Investment Outlook - Despite challenges such as declining COVID-19 product sales and upcoming loss of exclusivity, Pfizer is expected to see growth from key products and cost-cutting measures. The company anticipates savings of $7.7 billion by the end of 2027, and its dividend yield exceeds 7%, making it attractive for value and income investors [24][26][27].

Core Viewpoint - Pfizer is expected to grow significantly over the next five years despite facing a patent cliff and declining sales from its COVID-19 vaccine [2] Group 1: Drug Portfolio Changes - Pfizer's current top-selling drugs include Eliquis, Prevnar, Vyndaqel/Vyndamax, and Ibrance, but this list will likely change by 2030 [3] - Eliquis and Prevnar 13 will lose U.S. patent protection next year, followed by Ibrance in 2027, with other drugs like Inlyta, Xeljanz, and Xtandi also going off-patent within the next two years [4] - Pfizer has already launched Prevnar 20 as a successor to Prevnar 13 and is expanding its portfolio through acquisitions and internal R&D [5] Group 2: Oncology Focus - Pfizer is expected to become a larger player in oncology, with rapid sales growth in drugs like Padcev, Lorbrena, Elrexfio, and Talzenna [6] - Of the 30 late-stage programs in Pfizer's pipeline, 20 are targeting cancer indications, including new target indications for existing drugs and promising new candidates [7] Group 3: Operational Efficiency - Pfizer aims to be more efficient by optimizing operations, expecting to save around $1.5 billion from the first phase of this effort, with a total goal of $4.5 billion in savings [9] - The company anticipates that operational efficiencies will also enhance its R&D efforts, focusing on potential blockbuster therapies [10] Group 4: Company Growth and Market Cap - Pfizer is predicted to be a larger company in five years, with modest growth expected beyond that [11] - The company's market cap could approach $200 billion by 2030, up from around $137 billion today, if negative sentiment around its prospects diminishes [12] Group 5: Dividend Commitment - Pfizer is expected to continue paying a strong dividend in 2030, as management views the dividend as a critical component of its capital allocation strategy [13] - The company is unlikely to jeopardize its dividend program, which remains a key reason for investor interest [14]