Pfizer Sees Potential for Comeback After Three-Year 50% Drop in Shares

Pfizer, once a dominant healthcare stock, has seen its shares drop 50% over the past three years due to waning demand for its coronavirus treatment and vaccine, and the loss of exclusivity on other blockbuster products. However, the company is refocusing on its internal pipeline, refining its portfolio, and acquiring oncology assets, which could lead to a comeback.

Title: Pfizer's Rebound: Refocusing on Internal Pipeline and Oncology Acquisitions

Pfizer, once a dominant healthcare stock, has seen its shares drop 50% over the past three years due to waning demand for its coronavirus treatment and vaccine, and the loss of exclusivity on other blockbuster products [1]. However, the company is refocusing on its internal pipeline, refining its portfolio, and acquiring oncology assets, which could lead to a comeback.

Key Points

# Refocusing on the Internal Pipeline
Pfizer has shifted its strategy to focus on its internal pipeline, advancing only the most promising candidates with blockbuster or mega-blockbuster potential [1]. This approach aims to dedicate resources to a smaller, high-quality number of candidates, rather than diluting resources across too many projects.

# Acquisition of Oncology Assets
One of the significant moves for Pfizer has been the acquisition of Seagen almost two years ago [1]. This acquisition brought four growing oncology drugs and a portfolio of candidates to Pfizer's portfolio. One of Seagen's products, Padcev, combined with pembrolizumab (Keytruda), is the most prescribed first-line treatment for locally advanced/metastatic bladder cancer in the U.S. [1]. Pfizer aims to double the potential patient population by possibly expanding into another type of bladder cancer, with data expected to be reported later in the year.

# Upcoming Catalysts
Pfizer predicts as many as nine phase 3 readouts in the second half of 2025 and several pivotal trial starts [1]. Additionally, the company is waiting for at least four regulatory decisions in 2025. These upcoming catalysts could attract investors and fuel growth in Pfizer's stock price.

Financial Performance
Pfizer's recent quarterly revenue was approximately $13 billion, reflecting a 2.36% rise from the equivalent quarter last year [2]. The upcoming earnings report on August 5, 2025, is projected at $0.59 per share, signifying a 1.67% drop compared to the same quarter of the previous year. The company's full-year Zacks Consensus Estimates call for earnings of $3.05 per share and revenue of $63.4 billion, representing year-over-year changes of -1.93% and -0.36%, respectively [2].

Valuation and Zacks Rank
Pfizer is currently trading at a Forward P/E ratio of 8.41, which is a discount relative to the industry average Forward P/E of 13.66 [2]. The PEG ratio of 0.93 further indicates a favorable valuation compared to the industry average PEG ratio of 1.27. The Zacks Rank for Pfizer is currently #3 (Hold), suggesting a neutral outlook [2].

Conclusion
While Pfizer's recent financial performance has been challenging, the company's strategic refocusing on its internal pipeline and oncology acquisitions could position it for a comeback. The upcoming catalysts and favorable valuation make Pfizer an interesting investment opportunity for those looking to capitalize on the long-term potential of this healthcare giant.

References

[1] https://www.fool.com/investing/2025/07/16/this-once-dominant-healthcare-stock-down-__-is-fin/
[2] https://finance.yahoo.com/news/pfizer-pfe-stock-sinks-market-214502489.html