This big pharma stock still faces significant challenges in the new year.A rising tide doesn't lift all boats. For example, a boat with gaping holes in its hull will sink regardless of how high the tide rises. Pfizer (PFE 0.59%) seemed to be the investing equivalent of such a boat in 2025.Shares of the pharmaceutical giant declined 6% last year, experiencing several significant fluctuations along the way. Can Pfizer's stock bounce back in 2026? NYSE : PFEPfizerToday's Change( -0.59 %) $ -0.15Current Price$ ...

Key Takeaways Amgen acquired Dark Blue Therapeutics for about $840M, strengthening its oncology pipeline.AMGN gains a preclinical small-molecule degrader targeting MLLT1/3 proteins tied to certain AML types.Amgen has no marketed AML therapy, but sells Blincyto for ALL and has early AML bispecifics.Amgen (AMGN) announced that it has acquired U.K.-based private biotech company, Dark Blue Therapeutics, for approximately $840 million.The acquisition will strengthen Amgen’s oncology pipeline by adding Dark Blue’ ...

Core Viewpoint - Pfizer's dividend is considered relatively safe as 2026 begins, despite concerns regarding its high payout ratios and upcoming patent expirations [1][12][14] Financial Performance - Pfizer reported earnings of over $9.4 billion in the first nine months of 2025, with a market capitalization exceeding $140 billion [1] - The company has a forward dividend yield of 6.9% and a high dividend payout ratio of 99.4%, indicating it is barely covering its dividend with earnings [3][1] Cash Flow Analysis - Pfizer generated free cash flow of $10.4 billion in the 12 months ending September 30, 2025, while paying out $9.7 billion in dividends, resulting in a free cash flow payout ratio of 93.3% [6][12] - The free cash flow payout ratio is viewed as less concerning compared to the earnings-based payout ratio [12] Dividend History - Pfizer has increased its dividend for 16 consecutive years and has declared dividends for 349 consecutive quarters since 1937, showcasing a strong track record [7][10] Management Commitment - Pfizer's management, including CEO Albert Bourla and CFO David Denton, has reaffirmed a strong commitment to maintaining and growing the dividend over time [10][9] Patent Expiration Concerns - The company faces a significant patent cliff with key drugs like Eliquis and Xeljanz losing U.S. patent exclusivity, which could impact earnings and cash flow [10][11] - Management believes that investments in newly acquired and launched products will help offset the losses from patent expirations [11]

NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has acquired the final portion of PTC Therapeutics’ remaining royalty on Roche’s Evrysdi for $240 million upfront and up to $60 million in sales-based milestones. Evrysdi, marketed by Roche, is an orally administered survival motor neuron-2 (SMN2) splicing modifier for the treatment of spinal muscular atrophy. Evrysdi was approved by the FDA in 2020 and has treated over 21,000 patients worldwide. In 2024, E ...

Core Insights - Pfizer anticipates a significant revenue decline due to the loss of exclusivity for key products between 2026 and 2030, including Eliquis, Vyndaqel, Ibrance, Xeljanz, and Xtandi, all facing patent expirations [1][9] - The company has bolstered its R&D pipeline through mergers and acquisitions, successful data readouts, and pivotal program initiations, positioning itself for sustainable growth post-LOE [1][7] Oncology Pipeline - Pfizer has advanced its oncology pipeline with several candidates in late-stage development, including vepdegestrant for ER+/HER2- metastatic breast cancer, atirmociclib for HR+/HER2- metastatic breast cancer, and sigvotatug vedotin for metastatic non-small cell lung cancer [2] - By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio [4] Non-Oncology Developments - In non-oncology areas, Pfizer is developing an mRNA flu/COVID combination vaccine and osivelotor for sickle cell disease, both in late-stage development [4] - The company is also expanding the labels of approved products like Padcev, which was recently approved by the FDA in combination with Merck's Keytruda for specific bladder cancer patients [5] Obesity Market Expansion - Pfizer is strengthening its presence in the obesity market, currently dominated by Eli Lilly and Novo Nordisk, through the $10 billion acquisition of Metsera and the in-licensing of YP05002, an oral GLP-1 receptor agonist [6] - The Metsera acquisition added four novel clinical-stage programs for obesity, expected to generate billions in peak sales [6] Competitive Landscape - Pfizer faces revenue headwinds from patent expirations but is positioned for long-term growth through its expanding late-stage pipeline in oncology and investments in obesity, vaccines, and rare diseases [7] - The oncology market is competitive, with major players like AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers also focusing on oncology sales [10][11][12][13] Financial Performance - Pfizer's stock has declined 7% over the past year, while the industry has seen a 16% increase [14] - The company's shares are trading at a forward price/earnings ratio of 8.18, below the industry average of 17.40 and its own 5-year mean of 10.39, indicating attractive valuation [16] - The Zacks Consensus Estimate for 2025 earnings has increased slightly to $3.10 per share, while the estimate for 2026 has decreased to $3.04 per share [18]

Core Insights - Pfizer's stock has declined approximately 3% this week following the announcement of its financial guidance for 2026, which did not meet investor expectations [1] Financial Guidance - Pfizer anticipates total revenues for 2026 to be between $59.5 billion and $62.5 billion, reflecting modest growth from the revised 2025 revenue expectation of around $62 billion, primarily due to lower revenues from COVID products and the impending patent cliff [2] - The company expects adjusted earnings per share in the range of $2.80 to $3.00 for 2026, a decline from the 2025 expected range of $3.00 to $3.15, influenced by the dilutive impact of recent deals and lower COVID revenues [3] Oncology Segment - Pfizer holds a strong position in oncology, with oncology sales accounting for approximately 28% of total revenues, which have increased by 7% in the first nine months of 2025 [4][5] - The company is advancing its oncology pipeline and expects to have eight or more blockbuster oncology medicines by 2030 [5] Product Development and Acquisitions - Pfizer is focusing on expanding its product labels and has in-licensed rights for new oncology treatments, including a dual PD-1 and VEGF inhibitor [6][7] - The company has reduced its dependence on COVID-related revenues, with non-COVID operational revenues improving due to key products and new acquisitions, which are expected to deliver double-digit growth in 2026 [8][9] Challenges and Headwinds - Pfizer is facing a significant revenue impact from the loss of exclusivity for several key products between 2026 and 2030, which is projected to reduce sales by approximately $1.5 billion in 2026 [15] - The company is also experiencing lower sales of COVID products due to decreased vaccination and infection rates, with expected COVID revenues around $5 billion in 2026, down from $6.5 billion in 2025 [12][14] Stock Performance and Valuation - Pfizer's stock has underperformed compared to the industry and the S&P 500, losing 4.9% year-to-date [17] - The stock is currently trading at a price/earnings ratio of 8.04, significantly lower than the industry average of 17.11 and its five-year mean of 10.41, indicating potential attractiveness for investors [20] Future Outlook - Despite current challenges, Pfizer's key drugs and new product launches are expected to help offset losses from patent expirations, with anticipated cost savings of $7.7 billion by the end of 2027 [26] - The company is viewed as a hold in investment portfolios as it rebuilds its pipeline in oncology and obesity, which could drive growth from 2029 onwards [27]

Core Viewpoint - Pfizer is making a significant return to the GLP-1 drug market by acquiring the global rights to the oral small molecule GLP-1 receptor agonist YP05002 from Huayou Pharmaceutical for up to $20.85 billion, marking a record for early-stage Chinese innovative drug transactions [1][2] Group 1: Pfizer's Strategic Move - After three failed attempts in developing its own GLP-1 drugs, Pfizer's acquisition reflects its urgency to secure a position in the competitive GLP-1 market, especially against leaders like Novo Nordisk and Eli Lilly [1][4] - The deal includes an upfront payment of $150 million, with potential milestone payments of up to $1.935 billion and future sales royalties [1] - This acquisition follows Pfizer's recent $10 billion purchase of Metsera, indicating a strong commitment to the metabolic disease sector as a core growth area [1][8] Group 2: Challenges in GLP-1 Development - Pfizer has faced multiple setbacks in the GLP-1 space, including the termination of clinical development for Lotiglipron and Danuglipron due to safety concerns and adverse effects [4][7] - The company has nearly exhausted its pipeline in the GLP-1 area, with only one candidate remaining in the II phase, highlighting the need for external acquisitions to regain competitiveness [7][8] Group 3: Market Potential and Competitive Landscape - The global market for GLP-1 drugs is projected to reach $95 billion by 2030 and potentially $120 billion by 2035, emphasizing the importance of this market for Pfizer's future growth [7] - Pfizer's CEO has indicated that weight loss drugs could become a major product for the company, with expected annual sales of $10 billion [8] Group 4: Rationale for Choosing Huayou Pharmaceutical - YP05002 is a fully proprietary oral small molecule GLP-1 receptor agonist with demonstrated pharmacokinetic advantages in preclinical studies, making it a promising candidate [9][10] - Huayou Pharmaceutical's strong industrialization capabilities and established production credentials, including FDA certification, enhance the attractiveness of this acquisition [10][11] - The collaboration reflects a broader trend of Chinese innovative drugs entering international markets, showcasing the growing value of Chinese pharmaceutical R&D [11]

Core Insights - Pfizer is making a significant return to the GLP-1 market after three failed attempts with its own GLP-1 drugs, indicating a strong commitment to the weight loss drug sector valued at over $100 billion [1][4] - The company has signed a deal with Fosun Pharma's subsidiary, YaoYao Pharmaceutical, for the global exclusive rights to the oral GLP-1 receptor agonist YP05002 for a total transaction value of up to $2.085 billion, marking a record for early-stage Chinese innovative drug deals [1][2] Group 1: Strategic Intent - Pfizer's acquisition reflects its urgent need to establish a foothold in the GLP-1 space, especially in light of the dominance of competitors like Novo Nordisk and Eli Lilly, and the impending patent cliffs for its core products [1][9] - The company has recently invested heavily in the metabolic disease sector, having acquired Metsera for approximately $10 billion just a month prior, underscoring its strategy to position weight loss drugs as a core growth area [1][4] Group 2: Historical Context - Pfizer has faced multiple setbacks in the GLP-1 field, including the termination of clinical development for Lotiglipron and Danuglipron due to safety concerns and adverse effects observed in trials [4][5][8] - Following these failures, Pfizer attempted to revive Danuglipron with a new formulation but ultimately decided to terminate its development after further safety issues arose [5][8] Group 3: Market Potential - The global market for GLP-1 drugs is projected to reach $95 billion by 2030 and potentially expand to $120 billion by 2035, highlighting the significant growth opportunity in this sector [8] - Pfizer's CEO has indicated that weight loss drugs could become a major product for the company, with potential annual sales reaching $10 billion, making acquisitions a practical strategy in the face of internal development challenges [9]

Core Insights - AbbVie is significantly expanding its oncology presence, moving from a two-drug franchise to include solid tumors, with new drugs like Epkinly, Elahere, and Emrelis contributing to over 11% of total revenues in the first nine months of 2025, reflecting a 3% year-over-year growth [1][9] Expansion Strategies - The expansion is driven by both organic and inorganic strategies, with Emrelis being AbbVie's first internally developed solid tumor drug, while Epkinly and Elahere were acquired through collaborations [2] - Sales from newer drugs and rising Venclexta sales have offset the decline in Imbruvica sales due to competition from novel therapies [2] Pipeline Development - AbbVie has a diverse pipeline of new therapies for blood cancers and solid tumors, including antibody-drug conjugates (ADCs), which are seen as a disruptive innovation in cancer treatment [3] - A regulatory filing for the ADC therapy pivekimab sunirine is under FDA review for treating a rare blood cancer, which could add a third ADC to AbbVie's portfolio [4] - The company is also developing Temab-A for metastatic colorectal cancer and other cancers in various stages of clinical trials [4][5] Competitive Landscape - Major competitors in the oncology space include AstraZeneca, Merck, and Pfizer, with AstraZeneca's oncology sales accounting for 43% of total revenues and growing 16% year-over-year [6] - Merck's Keytruda accounted for about 48% of its total revenues, while Pfizer's oncology revenues grew 7%, making up over 27% of its total revenues [7] Financial Performance - AbbVie shares have outperformed the industry year to date, trading at a slight discount with a P/E ratio of 15.87 compared to the industry average of 16.31 [8][11] - EPS estimates for 2025 and 2026 have declined in the past 60 days, indicating potential challenges ahead [13]

Core Insights - Johnson & Johnson (JNJ) and Pfizer (PFE) are both prominent players in the healthcare sector, with extensive drug portfolios and diversified revenue streams, making them direct competitors in the blue-chip healthcare market [1][2] - JNJ has a strong presence in oncology, immunology, neuroscience, cardiovascular and metabolic diseases, pulmonary hypertension, and infectious diseases, while PFE excels in inflammation, immunology, rare diseases, and vaccines [1][2] Summary of J&J - JNJ's diversified business model, which includes pharmaceuticals and medical devices, allows it to better withstand economic fluctuations [3] - In 2025, JNJ's Innovative Medicine unit saw a 3.4% organic sales increase despite the loss of exclusivity for its product Stelara, driven by key drugs like Darzalex, Erleada, and Tremfya, along with new launches [4] - The MedTech segment has shown improvement due to acquisitions in cardiovascular businesses and advancements in electrophysiology [5] - JNJ plans to separate its Orthopaedics franchise into a standalone company, which is expected to enhance growth and margins in its MedTech unit [6] - Sales in China are negatively impacted by the volume-based procurement program, but JNJ anticipates accelerated growth in both Innovative Medicine and MedTech segments in 2026 [7] - JNJ has made significant progress in its pipeline, gaining approvals for new products that could drive growth through the latter half of the decade [8] - JNJ estimates that 10 of its new products have the potential to achieve peak sales of $5 billion [9] Summary of Pfizer - PFE is a leading drugmaker in oncology, with oncology sales accounting for approximately 28% of its total revenue, which has increased by 7% year-to-date [11] - Non-COVID operational revenues are improving, supported by key products and new launches, with a projected revenue CAGR of about 6% from 2025 to 2030 [12][13] - PFE has invested significantly in business development, including a $10 billion acquisition to re-enter the obesity market, which is expected to generate substantial peak sales [14] - A recent drug pricing agreement with the U.S. government provides clarity on PFE's strategic investments [15] - PFE faces challenges, including declining sales of COVID products and significant impacts from upcoming patent expirations [16][17] Financial Estimates - The Zacks Consensus Estimate for JNJ's 2025 sales and EPS indicates a year-over-year increase of 5.5% and 8.9%, respectively [18] - In contrast, PFE's 2025 sales are expected to decline by 1.08%, although earnings are projected to increase by around 1% [18] - JNJ's stock has risen 38.3% year-to-date, while PFE's stock has declined by 4.5% [22] - JNJ's dividend yield is 2.6%, compared to PFE's 6.8% [28] Investment Comparison - JNJ's improving growth prospects and rising estimates suggest it may be a better investment option compared to PFE, which has faced revenue declines due to lower sales of COVID products [31][33] - Despite challenges, JNJ's consistent revenue and EPS growth, along with strong cash flows and a long history of dividend increases, position it favorably [31][32]