Pfizer to Provide The Only Pill We’ll Need

Pfizer

Pfizer (NYSE:PFE) is one of the top pandemic stocks. The U.S. company cooperated with BioNTech (NASDAQ:BNTX) early on, making the vaccine success possible in the first place. My analysis explains what else Pfizer’s stock has to offer and whether it’s worth buying. The company has much more to offer than a COVID-19 vaccine.

Pfizer was founded in 1849 and is now one of the world’s largest pharmaceutical companies. Since 2020, the group has focused only on patent-protected drugs. The generics and non-patent protected drugs (Upjohn) and consumer products have been spun off. The product portfolio includes ten blockbusters with annual sales of more than $1 billion. The essential drugs are Eliquis, Prevnar, and Ibrance. 

A Great 2021

Pfizer had an excellent start to the year. Its Q1 sales jumped 44.6%, and profits added 43.7%. The No. 1 growth driver was vaccines, with sales more than tripling to $4.9 billion. 

The COVID-19 vaccine Comirnaty was developed with BioNTech. This vaccine alone brought in almost $3.5 billion. But cancer drugs were also impressive, with a growth of 17.5% to $2.9 billion. Given the strong business performance, management has raised its full-year guidance significantly. It now expects sales of $70.5 billion to $72.5 billion and adjusted earnings of $3.50 to $3.65 per share. I estimate actual earnings of $3 per share. 

The group forecast Corona vaccine sales at $26 billion. The targets appear realistic. In May, the U.S. Food and Drug Administration (FDA) and its European counterpart, the EMA, granted expanded approval. As a result, the Corona vaccine may now be injected into children and adolescents between 12 and 15. Safety and efficacy in children aged six and older are also being tested. Robust data could be available in September.

Is the Corona pill coming?

A pill against Corona is also in clinical development. The drug is to be taken at home by infected persons at the first symptoms of the disease. The aim is to slow down the progression of the disease and avoid severe courses and thus hospitalization. Approval could be granted before the end of this year. 

Because of the good prospects, attractive dividend yield, and favorable valuation by historical standards, we are fully convinced of the value of the stock. We’ll look for other ways to profit from this trend in the weeks ahead.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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