Is Pfizer Stock the Only Big Pharma Name I'd Buy and Hold Through Any Market Crash?

Pfizer (PFE 1.86%) is the name behind one of the world’s top-selling products: the coronavirus vaccine. It brought in more than $37 billion at its peak in 2022 and helped the company achieve $100 billion in annual revenue.

Since that time, demand for coronavirus vaccines has declined, and Pfizer also faces the loss of exclusivity of certain older blockbuster drugs. But this pharma giant is managing this transition period well and may be heading into a new era of growth.

Is Pfizer stock the only big pharma name I’d buy and hold through any market crash? Let’s find out.

Image source: Getty Images.

Losing exclusivity

As mentioned, Pfizer looked different a few years ago than it does today. The company generated an enormous amount of revenue from the coronavirus vaccine as well as some of its older blockbusters, such as blood thinner Eliquis and breast cancer drug Ibrance. But these products no longer represent major growth for Pfizer. The former has seen a decline in demand, and the latter, as well as others, face patent expiration.

Pfizer saw this coming and prepared. The pharma company realigned costs to reflect the coronavirus vaccine revenue opportunity and shifted its focus to in-house research and development as well as growth through acquisition. In fact, key acquisitions may help supercharge growth as of now and into the coming years.

Pfizer’s purchase of Seagen offered it several commercialized drugs, including Padcev for bladder cancer – that product has been delivering double-digit growth and reached blockbuster status, generating more than $1 billion in annual revenue. The pharma giant has put a focus on oncology, and the Seagen purchase helped it gather momentum in this area.

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NYSE: PFE

Pfizer

Today’s Change

(-1.86%) $-0.51

Current Price

$26.86

Key Data Points

Market Cap

$153B

Day’s Range

$26.58 - $27.40

52wk Range

$20.91 - $27.94

Volume

40M

Avg Vol

49M

Gross Margin

76.10%

Dividend Yield

6.40%

A path to the weight loss drug market

Another key business development move was Pfizer’s purchase of Metsera, a company developing candidates for weight loss. The weight loss drug market, led by Eli Lilly and Novo Nordisk today, represents great opportunity, and there’s room for several players to succeed. Analysts expect that market to approach $100 billion by the end of the decade.

Pfizer is investigating monthly dosing for the Metsera candidate – that could be a plus, as today’s weight loss drugs dose weekly. And 10 obesity studies taking place this year are in phase 3, suggesting a candidate may not be too far from commercialization.

Meanwhile, during this transition stage, Pfizer has reported double-digit revenue growth from recent launches and acquired products. They brought in more than $10 billion last year, up from $8.9 billion a year earlier. And the company is on track to meet cost-savings goals by the end of this year and reinvest $500 million in research and development.

Pfizer is firing on all cylinders and building a surefire path to growth – that’s why it may be the best big pharma name to hold during any difficult time, such as a future market crash.