Pharmaceutical giant Pfizer is navigating a critical strategic shift, moving decisively away from reliance on its declining COVID-19 business and toward new growth engines in oncology and obesity treatments. Recently confirmed financial guidance for 2025 and 2026 suggests this corporate transformation is beginning to yield results. Investors are now closely watching to see if the company’s development pipeline can successfully fill the revenue gap left by the fading pandemic-related products.
Pipeline Potential Takes Center Stage
The market’s primary focus rests squarely on Pfizer’s research and development efforts. Just this Tuesday, the company released encouraging Phase 2b trial data for a novel weight-loss drug candidate. Acquired through the purchase of Metsera, the treatment demonstrated significant weight reduction compared to a placebo. In a swift response to these positive results, Pfizer has announced plans to initiate higher-dosage Phase 3 studies.
This aggressive move into the highly competitive obesity drug market forms part of a broader R&D acceleration. The company intends to launch approximately 20 registration-enabling clinical trials in 2026 alone.
Strengthening the Core Business
As revenues from COVID-19 products continue their anticipated decline, Pfizer has managed to offset this through operational growth in its established portfolio. Strong commercial performance from the blood thinner Eliquis and the Vyndaqel product family has been instrumental in supporting the overall financial picture. This stability is crucial for rebuilding investor confidence, which has been contingent on seeing a clear post-pandemic growth strategy.
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Concurrently, management is streamlining its asset portfolio to unlock capital. Pfizer has reached an agreement to divest its stake in ViiV Healthcare. This transaction is expected to conclude within the ongoing first quarter of 2026, providing a significant cash infusion that can be directly channeled into research initiatives.
Key Developments at a Glance:
- Stable Foundation: Operational growth from non-COVID products is providing revenue stability.
- Guidance Reaffirmed: The full-year 2026 revenue forecast remains unchanged.
- R&D Momentum: New data for the obesity drug paves the way for Phase 3 trials.
- Enhanced Liquidity: The sale of the ViiV stake will bolster the balance sheet in the near term.
Market Sentiment and Technical Position
Despite these fundamental strides, market sentiment remains cautiously optimistic. Since the start of the year, the share price has managed to advance by nearly 7%. A noteworthy technical indicator is the Relative Strength Index (RSI) reading of 21.6, which points to a technically oversold condition and could signal potential for a near-term rebound.
The stock’s performance in the coming months will largely hinge on the precise execution of its clinical trial roadmap. With the anticipated closure of the ViiV sale this quarter, company leadership is securing the financial resources needed to maintain a high-paced development schedule for potential new blockbuster therapies.
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