Pfizer is actively working to enhance its pipeline in the increasingly competitive GLP-1 market dominated by Eli Lilly and Novo Nordisk. Despite facing some setbacks, Pfizer continues to strategize its way into this lucrative space, evidenced by a substantial $5 billion investment in acquiring Metsera, a company specializing in weight management medicines.
This acquisition brings Pfizer MET-097i, an investigational GLP-1 drug currently in phase 2 trials, and MET-233i, a potential monthly weight loss therapy. Metsera is also developing two other oral GLP-1 therapies poised to enter clinical trials soon. The focus on more convenient oral medications with varying dosing schedules aligns with market needs, which could pave the way for their accelerated development under Pfizer’s expansive resources.
The GLP-1 market is poised for growth, potentially reaching $150 billion in sales by 2035. Pfizer doesn’t need to dethrone the giants to succeed; even a small market share would be significant, given the company’s diverse product lineup and fiscal strength.
Pfizer’s recent acquisitions, alongside new product approvals, are gradually enhancing its financial performance. Notably, during the second quarter, Pfizer’s revenue grew by 10% year-over-year, with earnings per share up by 30%. The approval of Abrysvo, an RSV vaccine, is also promising, having generated substantial sales in its initial phases.
The company’s stock appears undervalued, trading at a mere 7.7 times forward earnings estimates, considerably lower than the healthcare industry’s average. With ongoing cost-saving measures, a robust pipeline with over 100 active programs, and a solid dividend strategy, Pfizer presents an attractive opportunity for long-term investors. Despite past challenges, the company’s strategic moves, including the Metsera acquisition, bolster its potential for growth and stability in the pharmaceutical industry.