Does This Billion-Dollar Deal Solve Pfizer's Biggest Problem?
Pfizer (NYSE: PFE) brought in more than $100 billion in revenue last year -- a record. But investors know it may be difficult for the pharmaceutical giant to reach that level again anytime soon. That's because Pfizer's coronavirus vaccine and treatment drove revenue -- and now, vaccine demand is on the decline.
At the same time, Pfizer is facing a patent cliff. That means several top drugs soon will lose exclusivity. So today, Pfizer's biggest problem is slowing growth. Meanwhile, Pfizer has invested in its pipeline and bought several companies over the past few years. And now, Pfizer is making its biggest recent acquisition. The company plans to buy oncology specialist Seagen for $43 billion. Does the deal solve Pfizer's growth problem? And does this make Pfizer stock a buy? Let's find out.
First, let's take a closer look at Pfizer's growth situation. We'll start with the coronavirus vaccine, Comirnaty, and treatment, Paxlovid. They brought in more than $37 billion and $18 billion in revenue last year, respectively.
Source Fool.com
