Pfizer Acquires Smaller Drug Company to Revitalize GLP-1 Drug Pipeline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Decline: Pfizer's stock has dropped approximately 60% from its 2021 highs, reflecting significant challenges including declining vaccine sales and patent expirations, which raise investor concerns about future earnings.
- R&D Setback: The failure of Pfizer's GLP-1 weight loss drug candidate to meet expectations represents a major setback, impacting the company's competitiveness in a high-demand market and exacerbating market worries about its drug pipeline.
- Acquisition Move: Pfizer swiftly acquired a smaller pharmaceutical company with a promising GLP-1 drug candidate and agreed to distribute a GLP-1 drug for a Chinese company, demonstrating management's commitment to long-term success.
- Dividend Risk: With a current dividend yield of 6.8%, Pfizer's payout ratio exceeding 100% indicates a risk of dividend cuts, prompting investors to carefully assess potential financial instability.
Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFE is 29.08 USD with a low forecast of 24.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
4 Buy
10 Hold
1 Sell
Hold
Current: 24.990
Low
24.00
Averages
29.08
High
34.00
Current: 24.990
Low
24.00
Averages
29.08
High
34.00
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, BeneFIX, Xyntha, Somavert, Ngenla, Hympavzi, Sulperazon, Zavicefta, Octagam and others.
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.
