Pfizer Eyes $20 Billion Revenue From Acquisitions Amid Patent Cliff Challenges

While presenting at the JP Morgan Healthcare Conference, Pfizer Inc. PFE Albert Bourla, Chairman and CEO, said, “I think we did significant transformative changes in Pfizer.”

Pfizer’s CEO stated that the company revamped its commercial strategy, brought in new leadership, and exceeded market share expectations. On the cost side, Pfizer achieved $4 billion in savings and announced an additional $1.5 billion in margin improvements.

In R&D, leadership changed for the first time in 15 years, with Mikael Dolsten stepping down, and the team underwent a restructuring. Bourla also highlighted returns to shareholders, including over $7 billion in dividends and $4.5 billion toward debt repayment in the first nine months.

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Looking at the period from 2025 to 2030, Pfizer is facing a significant loss of exclusivity (LOE) wave that will reduce revenues by about $17-18 billion between 2026 and 2028.

Bourla said the products acquired are projected to bring in $20 billion in revenue by 2030, which should offset those losses and provide some growth.

Additionally, the company is counting on revenues from products already launched and others in the pipeline. This is where the gap lies between Pfizer’s outlook and market expectations.

While new product launches in 2023 were underwhelming, Pfizer made significant progress in 2024, which makes the company optimistic about future performance.

When asked about the visibility into the business, Albert Bourla added that the main difference between 2024 and 2025 is the stabilization of the COVID business.

In 2024, guidance reflected significant uncertainty, partly due to miscalculations in COVID-19 revenue, the transition of Paxlovid to a commercial model, and contract renegotiations with Europe. As a result, Pfizer was cautious when setting expectations.

For 2024, the company reconfirmed guidance in December. For 2025, projections are similarly strong, with COVID revenues expected to remain stable.

Vaccination rates are low but consistent, and Pfizer anticipates achieving similar results in 2025 as in 2024.

For Paxlovid, demand closely tracks COVID waves, which have followed a predictable pattern over the last three years—two waves annually. Overall, the company foresees stability in our COVID business moving forward.

Price Action: PFE stock is down 1.49% at $26.40 at the last check on Tuesday.

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