Pfizer: The Floor To This Decline Remains To Be Seen

Summary:

  • The decelerating COVID-19 portfolio and underperforming bolt-on acquisitions have directly contributed to PFE’s lowered FY2023 guidance range.
  • In an attempt to boost its pipeline, thanks to the patent cliff from 2025 onwards, the company has also embarked on aggressive R&D efforts, comprising 20.5% of its overall revenues.
  • With its COVID windfall depleted and long-term debts growing to $61.67B, PFE also faces inflated annualized interest expenses of $2.03B.
  • Thanks to the massive dividend obligations worth $9.24B annually, we do not expect any share repurchases over the next few quarters as well.
  • PFE shareholders may want to brace for impact, due to the potential new normal in its profit margins, possibly further impacting its stock valuations/ prices in the intermediate term.

economyis bad

tiero

The PFE Investment Thesis Remains Shaky Here

We previously covered Pfizer (NYSE:PFE) in May 2023, discussing its mediocre historical stock performance compared to its pharmaceutical peers. Most of the pessimism was attributed to the decelerating COVID-19 portfolio and $22B


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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