3 days ago
7
Jeff Siegel, The Motley Fool
Tue, May 12, 2026 astatine 5:50 AM CDT 4 min read
A fewer years ago, Pfizer (NYSE: PFE) looked unstoppable. The institution generated much than $100 cardinal successful yearly gross aboriginal successful the pandemic, powered by its COVID-19 vaccine and antiviral treatment. Investors piled into the stock, expecting the pharmaceutical elephantine to person its pandemic windfall into a caller epoch of semipermanent growth.
That didn't happen. COVID gross collapsed. The banal fell much than 60% from its pandemic highs. Now, let's reevaluate the question: Is Pfizer a buy, sell, oregon hold?
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected a little-known company, called an "Indispensable Monopoly," providing the captious exertion Nvidia and Intel some need.
Patent-cliff blues
Pfizer banal presently trades astatine little than 9 times guardant net portion yielding much than 6%, making it 1 of the cheapest large-cap pharmaceutical stocks connected the market. That instantly gets income investors interested. But debased valuations unsocial don't marque a banal a buy.
The existent contented is whether Pfizer tin successfully navigate what Wall Street calls "patent cliffs." A patent cliff occurs erstwhile a cause institution loses exclusivity connected a blockbuster treatment, allowing generic competitors to flood the marketplace with cheaper versions and rapidly erode revenue. This is what Pfizer is facing now, arsenic respective of its blockbuster drugs -- including Eliquis, Ibrance, Xtandi, and Xeljanz -- are expected to suffer exclusivity betwixt 2026 and 2030.
The institution itself expects patent expirations unsocial to trim 2026 gross by astir $1.5 billion. That's not trivial.
At the aforesaid time, income of COVID products proceed to diminution sharply. They generated astir $56.7 cardinal for Pfizer successful 2022. By 2025, that fig had fallen to astir $6.7 billion, and absorption expects astir $5 cardinal successful COVID gross for 2026.
And yet, contempt each of this, Pfizer is inactive expecting to bring successful betwixt $59.5 cardinal and $62.5 cardinal successful gross during 2026.
Risks and rewards
Although plummeting gross from COVID merchandise income and patent cliffs person pressured the stock, the institution has been aggressively rebuilding done acquisitions, oncology expansion, and pipeline development. Perhaps the astir important determination was Pfizer's acquisition of Seagen, which dramatically expanded its cancer-drug business.
Seagen is simply a person successful antibody-drug conjugates, an emerging people of targeted crab therapies that galore analysts judge could go 1 of the pharmaceutical industry's biggest semipermanent maturation markets. For Pfizer, the woody was little astir short-term gross and much astir rebuilding itself astir oncology for the adjacent decade.
English (CA) · 
English (US) · 
Spanish (MX) ·