Pfizer's Patent Exclusivity Set to Expire: A Threat to Dividend Payouts and Stock Value

Pfizer's stock has declined by 60% from its 2021 peak, but it has maintained its dividend payout since 2009. At its current price, the stock offers a 7.1% yield, which is more than four times the average dividend payer in the S&P 500. However, Pfizer faces a loss of exclusivity wave, which is expected to reduce annual revenue by $17 billion to $18 billion over the next several years. The biggest loss of exclusivity will be Eliquis, an oral blood thinner, which is expected to face generic competition starting in 2026 in the EU and 2028 in the US.