The company expanded during the late 1800s and early 1900s, remaining a privately held company until June 1942, when it offered shares of its common stock to the public for the first time. It was the first mass producer of the “miracle drug” penicillin in the 1940s and was generating more than a billion dollars in sales by the early 1970s. Pfizer has become one of the biggest pharmaceutical companies in the world, with a market capitalization of $251.3 billion as of Nov. 3, 2021. It engages in the discovery, development, manufacture, marketing, sales and distribution of biopharmaceutical products worldwide. The firm works across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases. The company was founded by Charles Pfizer Sr. and Charles Erhart in 1849 and is headquartered in New York, NY.
- Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
- That would give the stock a forward P/S ratio of around 3.08, excluding COVID altogether.
- Pfizer stock still has to prove its fundamental and technical merit.
- Pfizer is classified as a member of the S&P 500 healthcare sector and operates within the biotechnology and pharmaceutical industry.
- It hopes to supplement that amount with another $25 billion in revenue by 2030 from business development deals.
Promisingly, the European Commission signed off on Elrexfio for relapsed or refractory — not treatable by other means — multiple myeloma. The drug is now allowed in patients who have had at least three prior treatments and still worsened. The agency also approved Pfizer’s Talzenna on top of Xtandi for patients with castration-resistant prostate cancer that has spread to other organs. The approval is based on a Phase 3 study showing the regimen nearly doubled the median overall survival — how long patients lived before dying of any cause — and progression-free survival.
Beyond the COVID business, bright spots included Pfizer’s Vyndaqel family of drugs, which treat a rare but severe cause of heart disease. Pfizer stock still has to prove its fundamental and technical merit. Also, shares aren’t forming a chart pattern with a clear entry for investors, despite recently regaining ground and briefly retaking their 50-day line. Pfizer stock is trading well below its 200-day moving average and sank back below its 50-day line on Jan. 10, according to MarketSmith.com.
The big reason for the drop was a decline in revenue for Comirnaty, its COVID-19 vaccine. And Paxlovid, its COVID pill, generated just $143 million in sales versus the $8.1 billion it brought in during the prior-year period. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. A sweeping cost-cutting program, which Pfizer first announced in October, is now expected to generate annual savings of at least $4 billion, the company said, up from $3.5 billion forecast previously. About 70% of the anticipated savings will come out of research and development, Pfizer chief financial officer Dave Denton said on the call with investors Wednesday.
Pfizer Inc News
Significant earnings growth on the back of Vyndaqel and Padcev should keep its bottom line moving in the right direction for the foreseeable future. Plus, the stock offers a 6.3% dividend yield that you get to keep even https://g-markets.net/ if its price unexpectedly tanks. Although PFE stock is trading at just 2.2x sales compared to the last five-year average of 5.4x, the multiple expanded meaningfully in 2021 due to the high demand for Covid-19 vaccines.
The company expects adjusted earnings per share to range from $2.05 to $2.25, while the FactSet consensus is $3.17. Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems, as well as disease control and prevention centers. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York. Pfizer reported fourth-quarter earnings ahead of our expectations, largely due to lower-than-expected research and development spending.
Pfizer Inc PFE
It wasn’t long ago that the two products generated combined sales of more than $56.7 billion. Pfizer expects its total COVID sales to be only around $12.5 billion in 2023. Moreover, Pfizer doesn’t necessarily need to merge with Seagen to achieve growth. It has several growth drivers right now, including Vyndaqel, a rare disease drug with sales that jumped 47% year over year to an annualized $3.6 billion in the third quarter. Padcev’s sales jump is the result of a recent label expansion to treat newly diagnosed bladder cancer patients, in combination with Keytruda from Merck. Currently, patients must be ineligible for treatment with standard chemotherapy to receive Padcev plus Keytruda.
For the full year 2023, the company expects total revenue to decline over 41% y-o-y to $59.5 billion. The pharmaceutical company’s EPS Rating, a measure of profitability, is 35 out of a best-possible 99. The EPS Rating compares a stock’s recent and longer-term earnings growth against all other stocks. For the fourth quarter, Pfizer reported an unexpected profit of 10 cents per share, minus some items. The profit was due to better-than-expected gross margins and low research and development spending. The company traces its origins to the founding of Charles Pfizer & Co. in Brooklyn, N.Y., in 1849 by Charles Pfizer and Charles Erhart.
Drugmaker reaffirms full-year 2024 guidance, ducks questions on experimental obesity drug
At $2.3 billion, Pfizer’s net income was down a massive 77% from the same period last year. It’s possible that we could see analyst downgrades for Pfizer after its disappointing 2024 guidance. However, some on Wall Street think the drugmaker’s valuation is too compelling to pass up. Pfizer (PFE Quick QuotePFE – Free Report) has been one of the most searched-for stocks on Zacks.com lately.
Brian’s Big Idea on Low Priced Stocks
Pfizer is now awaiting decisions in the U.S. and Europe for marstacimab, a potential treatment for hemophilia A and B. Marstacimab is a once-weekly under-the-skin shot, compared with standard intravenous infusions for hemophilia patients. If approved, it would be the first hemophilia drug that uses a flat dose, meaning all patients receive the same amount of drug regardless weight. Pfizer recently gained approval for a combination of Padcev and Keytruda in patients with advanced or metastatic bladder cancer. This is the first combination approved as an alternative to platinum-containing chemotherapy, the current standard of care for previously untreated patients.
An impressive record for paying dividends
Shares of Pfizer tanked Wednesday as investors digested the subpar guidance, falling as much as 9% to below $26 in morning trading, hitting their lowest intraday share price since 2013. Notably, Pfizer said it expects 2024 sales for its Covid products—Paxlovid pills and the Comirnaty vaccine—to be about $8 billion, a nearly 90% drop from the roughly $57 billion of revenue its Covid series brought in last year. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.
Now, with declining sales, investors have assigned a lower valuation multiple for Pfizer. However, with 2023 being the slump year for Pfizer and revenues rising from 2024, along with continued strength in its non-Covid products, it should bode well for its stock. But sales of some other key products, including cancer drug Ibrance and ig sentiment indicator the Prevnar family of pneumococcal vaccines, fell short of analysts’ fourth-quarter expectations. Investors are encouraged to seek stocks with 20%-25% recent sales and earnings growth. Big institutional investors — who account for up to 70% of all market trades — usually look for stocks with accelerating earnings and sales growth.
Pfizer in October cut $9 billion from its full-year 2023 sales outlook as COVID revenues came in below expectations. Products from the Seagen portfolio are expected to contribute $3.1 billion in 2024 revenues, Pfizer said. The company said earlier this week that it has received all regulatory approvals for the planned acquisition and expects to close the deal on Thursday. While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues.
For those with a long-term perspective who are seeking juicy dividends, however, buying Pfizer after today’s sell-off could be a smart move. If the negative impact of its COVID-19 products is factored out, Pfizer’s year-over-year operational revenue growth in 2024 should be between 8% and 10%. However, investors can’t ignore the big hole that the slumping demand for Comirnaty and Paxlovid is causing. Pfizer expects 2024 revenue of between $58.5 billion and $61.5 billion.
