Is Pfizer Inc. (PFE) the Best Drug Stock to Buy Now?

Pfizer Inc. (PFE) has been a prominent player in the pharmaceutical industry, known for its innovative products and significant contributions to global health. As the company looks to the future, investors may wonder if PFE is the best drug stock to buy now. To answer this question, we must examine Pfizer's recent performance, its pipeline, and the broader market landscape.



Pfizer's recent performance has been mixed, with the company's stock price declining by approximately 44% in 2023 compared to its peak in December 2021. This decline can be attributed to several factors, including the waning demand for COVID-19 products, patent expirations, and regulatory headwinds. However, it is essential to note that the broader market has also experienced a downturn, with the S&P 500 Index ($SPX) falling by around 19% during the same period. This suggests that Pfizer's stock performance may not be entirely disconnected from broader market trends.



One of the key drivers of Pfizer's recent revenue growth has been its COVID-19 products, specifically the Comirnaty vaccine and the Paxlovid antiviral pill. In 2022, these products generated a combined revenue of $57 billion, which accounted for a significant portion of Pfizer's total revenue that year. However, the company's revenue from these products is expected to decline in the coming years, with management expecting combined sales of $8 billion in 2024. This decline in sales is likely to impact Pfizer's overall revenue growth and, consequently, the stock's performance.



Despite the expected decline in COVID-19 product sales, Pfizer's pipeline remains robust, with several promising candidates in various stages of development. The company's research and development efforts are focused on addressing unmet medical needs and developing innovative therapies for a wide range of diseases. Some of Pfizer's most promising pipeline candidates include:

1. Talazoparib (TALZENNA®): An oral poly ADP-ribose polymerase (PARP) inhibitor for the treatment of metastatic castration-resistant prostate cancer.
2. Enfortumab vedotin-ejfv (PADCEV®): An antibody-drug conjugate for the treatment of locally advanced or metastatic urothelial cancer.
3. Tezepelumab (AMG 741): A monoclonal antibody for the treatment of recurrent glioblastoma, a type of brain cancer.



Pfizer's acquisition of Seagen in 2023 for $43 billion is also expected to contribute to the company's revenue growth in the coming years. Seagen's product portfolio, which includes the bladder cancer drug Padcev, is expected to generate revenues of $3.1 billion in 2024, gradually rising to at least $10 billion by 2030. The integration of Seagen's products and pipeline is likely to support Pfizer's growth potential through 2024 and drive growth potential into 2025.



In conclusion, Pfizer Inc. (PFE) remains a strong player in the pharmaceutical industry, with a robust pipeline and a history of innovation. While the company's stock performance has been mixed in recent years, the broader market trends and the expected decline in COVID-19 product sales have also contributed to this volatility. Pfizer's future growth will likely depend more on new product development and sales contributions from Seagen, rather than its COVID-19 portfolio. As such, investors should closely monitor the company's progress in developing and commercializing its pipeline candidates, as well as its integration of Seagen's products and pipeline. With a strong pipeline and a commitment to innovation, Pfizer remains a compelling choice for investors seeking exposure to the pharmaceutical industry.