Latest news with #Danuglipron
Yahoo
24-05-2025
- Business
- Yahoo
Down 63%, Should You Buy the Dip on Pfizer?
Pfizer's woes range from a failed weight loss drug to tariffs and political uncertainty. Yet, Pfizer maintains a strong financial foundation and a promising pipeline. The stock's valuation is so low that even modest success could jumpstart the shares. 10 stocks we like better than Pfizer › It's been a tough go for Pfizer (NYSE: PFE). Shares of the pharmaceutical giant are down over 60% from their highs, a multi-year slide since pandemic-related sales peaked a few years ago. But that's not all. Now, new challenges are putting pressure on the stock. Stocks aren't always on sale just because their prices went down, but Pfizer's storied history and 7.3% dividend yield make it worth checking under the hood to see if the company has what it takes to get back on track. So, that's precisely what this Fool did. Here is why Pfizer can't seem to get off the mat and whether it's worth buying the dip on today. I won't rehash Pfizer's pandemic journey too much. The company developed and sold a vaccine (Comirnaty) and an antiviral drug (Paxlovid) that made billions of dollars during COVID-19. Then, as those sales dried up, the company's top and bottom lines shrank, taking Pfizer's stock price down, too. But that's old news. More recently, Pfizer has endured a barrage of additional bad news. The company ceased development of Danuglipron, an experimental weight loss pill after it potentially caused a liver injury in a patient. That was supposed to be Pfizer's entrance into one of healthcare's fastest-growing markets. The political headaches are stacking up, too. New Secretary of Health and Human Services Robert F. Kennedy Jr. has been a vocal critic of the pharmaceutical industry and is no friend of Pfizer's. Earlier this month, President Trump issued an executive order to lower drug prices in the United States. Then, you have potential tariff policies that could make it harder for Pfizer to strategize how it develops and manufactures its drugs. Lastly, Pfizer is anticipating a $1 billion revenue hit in 2025 due to Medicare changes stemming from the Biden Administration's Inflation Reduction Act. Phew. It's a mouthful, but these problems seem more like paper cuts than fatal wounds. Danuglipron's failure hurts, but Pfizer still has a healthy pipeline that will heavily focus on oncology over the coming years. Then there is the political noise, which investors shouldn't rush to panic over. For example, President Trump's executive order on drug prices lacked a clear framework for what drugs might be susceptible to pricing pressure or how exactly the government would force drug companies to comply. Acknowledging risks is fair, but try not to overreact to them. Pfizer has a solid financial foundation. The company's credit is investment-grade, and its dividend payout ratio is only 61% of the bottom end of management's 2025 earnings guidance. Pfizer is also beginning a cost-savings program that it anticipates will save it $7.7 billion by the end of 2027. So, that juicy 7.3% dividend yield is likely not a warning sign of a looming cut. It seems the market may be assuming the worst. Pfizer trades at less than 8 times its 2025 earnings guidance, which practically values the stock like it's on death's door. For reference, the S&P 500's price-to-earnings ratio is 28. You can see below how the market's expectations for Pfizer's long-term growth have plunged since October: The great thing about setting a low bar is that it's easy to step over. With Pfizer's 7.3% dividend, investors only need low-single-digit earnings growth to generate 10% annualized investment returns. Barring Pfizer utterly imploding, that could be a lowball scenario. Simply meeting 5% growth estimates with no change in Pfizer's dirt-cheap valuation would produce over 12% annually -- boom, Pfizer could be a market-beating stock. The S&P 500 averages 10% returns historically, and its high valuation could drag on the market's future performance. If Pfizer's growth winds up higher, near where analysts thought it could be last fall, then you might see the stock's valuation rise, which would only turbocharge returns. There are no guarantees, of course. That's why you diversify and own many stocks. That said, Pfizer stands out in a broader stock market that doesn't seem to have many potential home runs right now. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy. Down 63%, Should You Buy the Dip on Pfizer? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Down 63%, Should You Buy the Dip on Pfizer?
Pfizer's woes range from a failed weight loss drug to tariffs and political uncertainty. Yet, Pfizer maintains a strong financial foundation and a promising pipeline. The stock's valuation is so low that even modest success could jumpstart the shares. 10 stocks we like better than Pfizer › It's been a tough go for Pfizer (NYSE: PFE). Shares of the pharmaceutical giant are down over 60% from their highs, a multi-year slide since pandemic-related sales peaked a few years ago. But that's not all. Now, new challenges are putting pressure on the stock. Stocks aren't always on sale just because their prices went down, but Pfizer's storied history and 7.3% dividend yield make it worth checking under the hood to see if the company has what it takes to get back on track. So, that's precisely what this Fool did. Here is why Pfizer can't seem to get off the mat and whether it's worth buying the dip on today. I won't rehash Pfizer's pandemic journey too much. The company developed and sold a vaccine (Comirnaty) and an antiviral drug (Paxlovid) that made billions of dollars during COVID-19. Then, as those sales dried up, the company's top and bottom lines shrank, taking Pfizer's stock price down, too. But that's old news. More recently, Pfizer has endured a barrage of additional bad news. The company ceased development of Danuglipron, an experimental weight loss pill after it potentially caused a liver injury in a patient. That was supposed to be Pfizer's entrance into one of healthcare's fastest-growing markets. The political headaches are stacking up, too. New Secretary of Health and Human Services Robert F. Kennedy Jr. has been a vocal critic of the pharmaceutical industry and is no friend of Pfizer's. Earlier this month, President Trump issued an executive order to lower drug prices in the United States. Then, you have potential tariff policies that could make it harder for Pfizer to strategize how it develops and manufactures its drugs. Lastly, Pfizer is anticipating a $1 billion revenue hit in 2025 due to Medicare changes stemming from the Biden Administration's Inflation Reduction Act. Phew. It's a mouthful, but these problems seem more like paper cuts than fatal wounds. Danuglipron's failure hurts, but Pfizer still has a healthy pipeline that will heavily focus on oncology over the coming years. Then there is the political noise, which investors shouldn't rush to panic over. For example, President Trump's executive order on drug prices lacked a clear framework for what drugs might be susceptible to pricing pressure or how exactly the government would force drug companies to comply. Acknowledging risks is fair, but try not to overreact to them. Pfizer has a solid financial foundation. The company's credit is investment-grade, and its dividend payout ratio is only 61% of the bottom end of management's 2025 earnings guidance. Pfizer is also beginning a cost-savings program that it anticipates will save it $7.7 billion by the end of 2027. So, that juicy 7.3% dividend yield is likely not a warning sign of a looming cut. It seems the market may be assuming the worst. Pfizer trades at less than 8 times its 2025 earnings guidance, which practically values the stock like it's on death's door. For reference, the S&P 500's price-to-earnings ratio is 28. You can see below how the market's expectations for Pfizer's long-term growth have plunged since October: The great thing about setting a low bar is that it's easy to step over. With Pfizer's 7.3% dividend, investors only need low-single-digit earnings growth to generate 10% annualized investment returns. Barring Pfizer utterly imploding, that could be a lowball scenario. Simply meeting 5% growth estimates with no change in Pfizer's dirt-cheap valuation would produce over 12% annually -- boom, Pfizer could be a market-beating stock. The S&P 500 averages 10% returns historically, and its high valuation could drag on the market's future performance. If Pfizer's growth winds up higher, near where analysts thought it could be last fall, then you might see the stock's valuation rise, which would only turbocharge returns. There are no guarantees, of course. That's why you diversify and own many stocks. That said, Pfizer stands out in a broader stock market that doesn't seem to have many potential home runs right now. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy. Down 63%, Should You Buy the Dip on Pfizer? was originally published by The Motley Fool
Yahoo
29-04-2025
- Business
- Yahoo
Pfizer profits dip on lower Paxlovid sales
Pfizer reported a dip in profits Tuesday, driven partly by lower sales of Covid-19 therapeutic drug Paxlovid, as it maintained a 2025 forecast that does not include potential tariff effects. Sales of Paxlovid slid 75 percent amid lower Covid-19 infections and reduced government purchases of the medication. But Pfizer scored higher revenues for its Covid-19 vaccine, along with some other products, including the heart medication Vyndaqel and the cancer drug Padcev. Profits in the first quarter fell five percent to $3.0 billion, while revenues dropped eight percent to $13.7 billion. Pfizer Chief Executive Albert Bourla said the company's discontinuation earlier this month of the Danuglipron obesity drug was the right call after a participant in a trial experienced a liver injury that cleared up after the treatment was stopped. Pfizer is developing other medications in the obesity and related areas and could pursue "external opportunities" such as partnerships or acquisitions, Bourla said. Pfizer is also working on treatments for a number of other ailments, including bladder cancer and multiple myeloma, Bourla said. "We are on track for a strong year of anticipated pipeline catalysts," he said. The drugmaker maintained its full-year sales forecast of between $61-64 billion. In 2024, Pfizer's revenues were $63.6 billion. The projection "does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time," Pfizer said. Pfizer said it is on track to deliver $4.5 billion in cost savings through the end of 2025. It also is implementing a reorganization of its research and development, and a manufacturing "optimization" program. Shares rose 0.5 percent in pre-market trading. jmb/aha Sign in to access your portfolio
France 24
29-04-2025
- Business
- France 24
Pfizer profits dip on lower Paxlovid sales
Sales of Paxlovid slid 75 percent amid lower Covid-19 infections and reduced government purchases of the medication. But Pfizer scored higher revenues for its Covid-19 vaccine, along with some other products, including the heart medication Vyndaqel and the cancer drug Padcev. Profits in the first quarter fell five percent to $3.0 billion, while revenues dropped eight percent to $13.7 billion. Pfizer Chief Executive Albert Bourla said the company's discontinuation earlier this month of the Danuglipron obesity drug was the right call after a participant in a trial experienced a liver injury that cleared up after the treatment was stopped. Pfizer is developing other medications in the obesity and related areas and could pursue "external opportunities" such as partnerships or acquisitions, Bourla said. Pfizer is also working on treatments for a number of other ailments, including bladder cancer and multiple myeloma, Bourla said. "We are on track for a strong year of anticipated pipeline catalysts," he said. The drugmaker maintained its full-year sales forecast of between $61-64 billion. In 2024, Pfizer's revenues were $63.6 billion. The projection "does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time," Pfizer said. Pfizer said it is on track to deliver $4.5 billion in cost savings through the end of 2025. It also is implementing a reorganization of its research and development, and a manufacturing "optimization" program.
Yahoo
18-04-2025
- Business
- Yahoo
Pfizer (NYSE:PFE) Gets CDC Recommendation to Expand ABRYSVO Vaccine Use for RSV Prevention
Pfizer recently received a CDC recommendation for wider use of its RSV vaccine, ABRYSVO, in adults aged 50-59 at increased risk. Despite this positive development, Pfizer's shares saw a 2% decline over the past week. This move is in line with broader market trends, as the market dropped by 3% during the same period. The company's decision to halt development of Danuglipron, an oral weight loss drug, due to safety concerns, may have also added weight to the downward pressure on its shares, amid wider concerns impacting the healthcare sector and investor sentiment surrounding safety in drug development. Pfizer has 3 possible red flags (and 2 which shouldn't be ignored) we think you should know about. We've found 28 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The recent CDC recommendation for Pfizer's RSV vaccine, ABRYSVO, is a promising development that could positively impact the company's revenue and earnings forecasts; however, the decision to halt development of the Danuglipron weight loss drug amplifies concerns over safety in drug development. This mix of news, coupled with Pfizer's shift towards enhancing R&D productivity, could moderate future growth expectations as ongoing savings measures aim to boost margins. Investors might anticipate a measured but cautious optimism as outcomes of these initiatives unfold. Over the past year, Pfizer's total shareholder return stands at a 7.86% decline, underperforming the broader US market, which posted a 4.6% gain. Compared to the US Pharmaceuticals industry, which experienced an 8% decrease, Pfizer also lagged slightly. The price movement aligns somewhat with the bears' price target of $25.56, which remains 13.8% above the current share price of $22.04, indicating some market skepticism about reaching consensus targets of $30.45. As Pfizer faces pressures from legislative changes impacting revenue, careful monitoring of pipeline developments and cost strategies will be crucial to adapting earnings forecasts going forward. Our valuation report here indicates Pfizer may be undervalued. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:PFE. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
