On Tuesday, Pfizer said it expects regulators to approve its $43 billion acquisition of cancer drug maker Seagen, first announced in May. Seagen will account for about 5% of Pfizer’s 2024 sales, according to Wednesday’s guidance. Founded in 1993, The Motley Fool is a financial services https://www.forexbox.info/ company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
I would expect momentum to continue through the early 2030s as pipeline programs reach the finish line, adding to revenue. Now, let’s get back to our question about where Pfizer will be 10 years from now. Pfizer is executing its 19 launches over a pretty short period of time; if those products perform as expected, they could meet the company’s revenue goal and continue to drive growth in the next decade. In total, Pfizer predicts that its business deals may add $25 billion to revenue in 2030. And thanks to Pfizer’s own products and its series of acquisitions, the company sees potential for 2030 non-COVID revenue of as much as $84 billion, for a 10% compound annual growth rate from 2025 through 2030.
Pfizer expects to add $20 billion in new revenue by 2030 from new drugs and new indications for existing drugs. It hopes to supplement that amount with another $25 billion in revenue by 2030 from business development deals. Notably, these numbers don’t include any sales from Pfizer’s experimental oral weight loss drug danuglipron, which flopped in a late-stage study. There’s perhaps no sadder picture for Pfizer (other than its stock chart) than the sales trajectory for Comirnaty and Paxlovid.
- But Pfizer aims to launch a combined coronavirus/influenza vaccine later this decade, and that product could interest people who generally go for an annual flu shot — that’s nearly half of the U.S. population.
- The bad news is that it’s a far cry from the ginormous sales made in 2022.
- The vaccine was approved for emergency use for individuals 16 years of age and older.
- Pfizer reported adjusted net income attributable to its common shareholders of $25.2 billion on $81.3 billion in annual revenue in its 2021 fiscal year (FY).
The company had pulled off a near miracle with its rapid development of a COVID-19 vaccine. 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.
What’s happening with the Pfizer COVID-19 vaccine?
Pfizer’s shares currently trade at a trailing-12-month price-to-sales (P/S) ratio of 2.37. Based on the company’s guidance for 2024, the stock’s forward P/S multiple is roughly 2.67 (using the midpoint of the guidance range). In fact, right now it’s amid its biggest https://www.dowjonesanalysis.com/ string of product launches ever new products or indications released over a period of 18 months. Pfizer expects these products to generate $20 billion in revenue in 2030. There’s no question that Pfizer’s COVID products won’t be its crown jewels going forward.
Pfizer continues to experience a steep decline in sales for COVID-19 vaccine Comirnaty and antiviral drug Paxlovid. The company expects combined sales for the two products in 2024 will total only $8 billion, down from a projected $12.5 billion this year. It’s also important to consider the long-term potential of Pfizer’s coronavirus portfolio. But Pfizer aims to launch a combined coronavirus/influenza vaccine later this decade, and that product could interest people who generally go for an annual flu shot — that’s nearly half of the U.S. population. Even if Pfizer faces competition from Moderna and Novavax, it still could bring in significant recurrent revenue from an eventual combined vaccine.
From February 2016 to December 2018, Bourla was group president of Pfizer’s Global Vaccines, Oncology, and Consumer Healthcare business. He was president and general manager of the company’s Established Products business from 2010 to 2013. Bourla served in a number of other roles from 1993, when he joined the company, to 2010. As of Aug. 9, 2021, Pfizer had 5,606,688,356 shares of voting common stock outstanding. On Oct. 29, 2021, the FDA extended the EUA for the vaccine to include children ages 5–11.
Where Will Pfizer Be in 10 Years?
The acquisitions of clinical-stage companies also could offer growth — if acquired pipeline candidates reach the finish line. Albert Bourla, who has been with Pfizer for more than 25 years, is currently the company’s chief executive officer (CEO) and chairman. Before assuming the CEO position in January 2019, he was chief operating officer (COO) starting in January 2018.
On May 10, 2021, the FDA expanded the EUA for the Pfizer-BioNTech vaccine to include adolescents ages 12–15. Albert Bourla is the pharmaceutical giant’s current chief executive officer (CEO). Pfizer is classified as a member of the S&P 500 healthcare sector and operates within the biotechnology and pharmaceutical industry. Inc. (MRK), Switzerland-based Roche Holding AG (RHHBY), and Eli Lilly and Co. (LLY). Pfizer reported adjusted net income attributable to its common shareholders of $25.2 billion on $81.3 billion in annual revenue in its 2021 fiscal year (FY). On the other hand, I think that Pfizer is a no-brainer stock to buy right now for two types of investors.
Does Pfizer pay a dividend?
My view is that Pfizer isn’t likely to rebound until it beats quarterly earnings estimates. I think, though, that the stock should be attractive to income investors with its dividend yield now close to 6.3%. I also expect that Pfizer will return to solid growth https://www.topforexnews.org/ once it moves past the challenging year-over-year comparisons for its COVID-19 products. Pfizer projects combined sales of Comirnaty and Paxlovid will be only around $8 billion. The good news for the company is that’s still a sizable amount of money.
Who is the chief executive officer (CEO) of Pfizer?
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. Some of these deals — such as Arena — offer Pfizer pipeline candidates, representing future potential launches.
Income investors should love the company’s dividend yield of over 5.9%. Value investors should salivate at Pfizer’s bargain-basement price. All of this means that Pfizer should be in the middle of a new era of growth 10 years from now. So, today, when the shares are down, is the perfect time to get in on this promising long-term story. The FDA gave the vaccine full approval on Aug. 23, 2021, after reviewing the biologics license application (BLA) submitted by Pfizer and BioNTech.
Other publicly traded Covid vaccine makers have struggled mightily over the last two years as demand and government subsidies for the shots dried up. Shares of Moderna are down roughly 85% from their 2021 high and shares of Johnson & Johnson are down about 15% from their 2022 peak. Pfizer’s foray into weight loss treatments have yet to impress investors, and its stock dove 5% earlier this month after it revealed discouraging clinical results for its GLP-1 drug.
Others, like Seagen, offer immediate revenue through already approved products, as well as growth potential down the road. Pfizer forecasts more than $3 billion in Seagen revenue this year, and as much as $10 billion in 2030. The big pharma company took center stage earlier in the COVID-19 pandemic when it became the first to launch a coronavirus vaccine. That product, Comirnaty, and the treatment Paxlovid, released later, helped Pfizer’s revenue reach a record level of $100 billion in 2022; the two products made up more than half of that. Still, growth investors will probably find other stocks more attractive than Pfizer. Even factoring out the drag from its COVID products, the company won’t generate jaw-dropping growth.