PFE - Pfizer: Headwinds Dissipating New Obesity Pipeline Update Coming Soon

2024-06-13 02:30:42 ET

Summary

• A difficult period for Pfizer might be coming to an end, as serious setbacks and tough Y/Y comps are in the rearview mirror.
• The first quarter performance of the commercial business exceeded Street expectations, and the company maintained its full-year revenue guidance while slightly increasing the EPS guidance range.
• The new Chief Strategy and Innovation Officer may lead to changes in business development approach, although his hands may be tied by the debt burden in the near-term.
• The upcoming update on danuglipron in obesity should shed more light on Pfizer's position and plans for this side of the pipeline.

A difficult period for Pfizer ( PFE ) might be coming to an end. The series of setbacks, such as the failures of the obesity pipeline during 2023, and the commercial underperformance that led to expectations reset with a “kitchen sink” guidance for 2024, are now behind us, and the COVID-19 franchise-led declines in revenues are finally in the rearview mirror. My share price bottom call from last year was premature, but I believe better times are ahead and that a return to growth led (among others) by the expansion of the oncology business that I covered in my March article , should drive the stock to higher levels in the following quarters and years....

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