Pfizer has entered an agreement to license Sciwind Biosciences' type 2 diabetes treatment ecnoglutide, with potential payments of up to $495 million if milestones are met, the Chinese drugmaker said on Tuesday.
Pfizer (PFE) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Pfizer offers a 6.3% yield, but its high dividend reflects weak growth prospects and looming patent cliffs. PFE's dividend is currently covered by cash flow, but payout ratios are stretched, and sustainability is questionable beyond 2027 without new revenue streams. Recent acquisitions, notably Metsera, increase leverage and are dilutive near-term but aim to offset $17–18B annual patent expirations by 2028.
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PFE's oncology sales rose 8% in 2025 as Padcev, Lorbrena and new launches offset Ibrance declines.
Our comprehensive evaluation suggests that divesting from Pfizer stock (NYSE: PFE) may be the most prudent course of action. Our analysis points a bearish outlook on the stock, with a plausible price target of $20.
Despite the recent recovery, I explain why Pfizer remains materially undervalued, trading near 10-year lows with a 6.4% dividend yield. Pfizer faces multi-year headwinds from loss of exclusivity and COVID franchise decline, but management highlights transformative M&A and pipeline optionality. Obesity drugs, particularly via Metsera, represent a potential $150B TAM, though market skepticism persists until Phase III data matures.
Pfizer Inc. delivered a 17% total return since early November, but I remain cautious. I do not recommend buying PFE stock, as the recent rally is not supported by fundamentals. Valuation analysis and mitigating factors do not justify a bullish stance on PFE.
Pfizer remains a Strong Buy, offering compelling value with a 6.32% dividend yield and a P/E Non-GAAP of 8.43. PFE's non-COVID portfolio posted 6% operational growth in 2025, with international markets and Pfizer CentreOne driving resilience. Productivity initiatives are on track to deliver $7.2B in net cost savings, supporting margin improvement despite patent cliff and pricing headwinds.
PFE bets on new and acquired drugs to reignite growth as COVID sales fade and a 2026-2030 patent cliff threatens key blockbusters.
Pfizer (PFE) is confronting challenges. Even the most prominent companies are not beyond reach.
Pfizer agreed to accept $29 million to resolve a dispute with the U.S. Securities and Exchange Commission stemming from the regulator's 2013 insider trading settlement with billionaire Steven A. Cohen's former hedge fund SAC Capital Management.