Healthcare Stocks Sell Off Amid Middle East Turmoil
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Source: NASDAQ.COM
- Reasons for Sell-Off: Healthcare stocks are experiencing a sell-off due to turbulence in the Middle East, despite typically being resilient during global uncertainties; the sector has been weighed down for months by Medicaid cuts and pharmaceutical tariffs, impacting investor confidence.
- Pfizer's Outlook: Pfizer (PFE) shares are currently worth half of their value from 2021, facing a patent cliff that could affect $17 billion in annual revenue by 2030; while the company is pursuing new drug developments through acquisitions, it still grapples with declining COVID drug sales in the short term.
- Alexandria Real Estate's Performance: Alexandria Real Estate Equities (ARE) has seen its stock plummet nearly 75% since its 2022 peak, primarily due to rising interest rates and an oversupply of lab space; although it is leasing to tech companies to offset demand issues, it still faces ongoing financial pressures and plans to cut its dividend by 45%.
- Healthpeak Properties IPO Plans: Healthpeak Properties (DOC) is set to launch an IPO for its senior housing portfolio, which will expose it to greater market risks despite retaining a majority stake; currently, its dividend coverage is slightly above 70%, but the company must demonstrate recovery potential in the life sciences sector.
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Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 26.300
Low
24.00
Averages
28.56
High
35.00
Current: 26.300
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, and others. Its PF-08653944 is an ultra-long-acting fully biased GLP-1 receptor agonist.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Sentiment: Over the past month, Pfizer's stock has declined by 5.2%, contrasting sharply with peers like Eli Lilly and Merck, which reported revenue growth of 55.5% and 4.9%, respectively, indicating Pfizer's competitive disadvantages.
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- Innovation-Driven Transformation: Despite a decline in China's generic drug market due to price restrictions, the development of innovative drugs is reshaping the landscape, with contract manufacturers rapidly scaling up to manage the entire process from discovery to development, aiming to create entities akin to Pfizer or AstraZeneca.
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- Favorable Legal Developments: Recent settlements regarding Vyndamax patent infringements and the Belgian Comirnaty contracts are anticipated to significantly enhance cash flow and revenue growth prospects post-2029, with management expressing confidence in a high single-digit CAGR over the next five years.
- Strong Product Growth: Launched and acquired products achieved 22% operational growth in Q1, with Nurtec contributing 41% operational growth, demonstrating the company's competitive strength and robust product demand, further solidifying its market position.
- Ongoing Cost Control: Pfizer's adjusted operating margin stood at 38%, with expectations to achieve $7.2 billion in net cost savings by the end of 2026, showcasing effective cost management and resource allocation that supports dividend maintenance and future capital returns.
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See More
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