Pfizer Stock Down 20%: Should You Buy the Dip?

Pfizer's stock has fallen 15.5% in the last year due to declining pandemic-related sales and increased competition in key therapeutic areas. Despite this, the company reported Q1 revenues of $13.7 billion, down 8% YoY, but adjusted diluted EPS of $0.92, exceeding consensus expectations. Pfizer anticipates total net savings of $7.7 billion by 2027 and plans to reinvest in pipeline development, which could boost earnings growth and innovation.

Title: Pfizer's Q1 Earnings and the Path Forward

Pfizer Inc. (PFE) has seen its stock price fall by 15.5% over the past year, largely due to declining pandemic-related sales and increased competition in key therapeutic areas. Despite this challenging environment, the company reported Q1 2025 revenues of $13.7 billion, down 8% year-over-year (YoY), but managed to exceed consensus expectations with adjusted diluted earnings per share (EPS) of $0.92. Pfizer anticipates total net savings of $7.7 billion by 2027, with plans to reinvest these savings in pipeline development, which could boost earnings growth and innovation.

Pfizer's Q1 2025 earnings report highlighted the company's ongoing transformation and cost-cutting initiatives. The adjusted gross margin increased to 81%, reflecting improved product mix and reduced royalty obligations. The company's CEO, Albert Bourla, emphasized the focus on late-stage, high-potential assets in oncology, vaccines, inflammation and immunology (I&I), and internal medicine. Notably, Pfizer discontinued danuglipron, an obesity drug in its internal pipeline, reflecting a renewed willingness to cut losses early and redirect efforts.

The company's pipeline development remains a critical focus for investors. Pfizer has around 108 clinical programs underway, with 2025 shaping up to be a pivotal year for regulatory decisions and Phase 3 readouts. Key assets include sasanlimab, a promising treatment for non-muscle invasive bladder cancer (NMIBC), and Padcev, a first-line treatment for locally advanced/metastatic urothelial cancer. Additionally, Elrexfio, a therapy for relapsed/refractory multiple myeloma, is expected to have a Phase 3 readout this year.

Pfizer's cost-cutting strategy and pipeline development are designed to stabilize margins and drive long-term growth. The company's stock is currently trading at $25.35, down 1.17% from the previous day's close. Wall Street analysts rate Pfizer as a "Moderate Buy," with an average price target of $27.71, suggesting a potential 12.7% increase over current levels.

Investors with a long-term outlook may find Pfizer's stock an appealing entry point, given its 22% discount from its 52-week high of $31.54. However, the stock's revival will depend on the success of its maturing pipeline in generating significant new revenue streams.

References:
[1] https://www.barchart.com/story/news/33433394/this-blue-chip-stock-is-20-off-its-highs-should-you-buy-the-dip
[2] https://finance.yahoo.com/news/pfizer-pfe-stock-sinks-market-214502489.html
[3] https://finance.yahoo.com/news/albertsons-companies-inc-aci-q1-070409227.html