Can Pfizer's New & Acquired Drugs Offset Its Looming Patent Cliff?

Sales of Pfizer’s PFE COVID products, Comirnaty and Paxlovid, declined from their peak with the end of the pandemic. Their sales came down to around $11 billion in 2024 and $6.7 billion in 2025 from $56.7 billion in 2022. In addition to lower sales of its COVID products, Pfizer faces some other challenges, like U.S. Medicare Part D headwinds and the upcoming loss of exclusivity (“LOE”) cliff in the 2026-2030 period as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, face patent expirations.

However, Pfizer’s non-COVID revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products.

Year 2023 was a record year for Pfizer in terms of FDA approvals. It received nine new medicine/vaccine approvals in 2023 that have begun to contribute to top-line growth. A couple of new product approvals were also received in 2024 and 2025.

Revenues from Pfizer’s non-COVID products rose 6% operationally in 2025. Pfizer's recently launched and acquired products delivered $10.2 billion in revenues in 2025 while growing approximately 14% operationally year over year. In 2026, Pfizer expects its recently launched and acquired products to record continued double-digit growth.

Pfizer is also trying to rebuild its pipeline through acquisitions to maximize post-2028 growth. Seagen, Metsera and Biohaven are the most significant strategic acquisitions in recent years. In 2025, Pfizer invested around $9 billion in M&A deals, including the acquisition of Metsera and the licensing deal with Chinese biotech 3SBio. Pfizer plans to start 20 pivotal studies in 2026, which include 10 pivotal studies for the ultra-long-acting obesity candidates added from the Metsera acquisition and four for PF-08634404, the dual PD-1/VEGF inhibitor in-licensed from 3SBio in 2025.

Pfizer expects its recently launched and acquired products and a strong pipeline in obesity and oncology to help revive top-line growth toward the end of the decade. However, in the 2026 to 2028 period, it is not very clear if Pfizer’s new and acquired products can help the company offset the impact of the LOEs.

Competition in the Oncology Space

Pfizer is one of the largest drugmakers of cancer medicines. Other large players in the oncology space are AstraZeneca AZN, Merck MRK, J&J JNJ and Bristol-Myers.

For AstraZeneca, oncology sales now comprise around 44% of total revenues. Sales in its oncology segment rose 14% at constant exchange rate (CER) in 2025. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).

Merck’s key oncology medicines are PD-LI inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for more than 50% of Merck’s pharmaceutical sales. Keytruda recorded sales of $31.7 billion in 2025, up 7% year over year.

J&J’s oncology sales now comprise around 27% of its total revenues. Its oncology sales rose 20.9% on an operational basis in 2025 to $25.4 billion. While J&J’s older cancer drugs, multiple myeloma treatment Darzalex and prostate cancer drug Erleada, are key contributors to its top-line growth, new drugs such as Carvykti, Tecvayli, Talvey and Rybrevant, plus Lazcluze, hold the key to long-term growth.

Bristol-Myers’ key cancer drug is PD-LI inhibitor, Opdivo, which accounts for around 21% of its total revenues. Opdivo’s sales rose 8% to $10 billion in 2025.

PFE’s Price Performance, Valuation and Estimates

Pfizer’s stock has risen 8.4% in the past year compared with an increase of 17.3% for the industry. 

From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, the company’s shares currently trade at 9.33 forward earnings, lower than 18.65 for the industry and the stock’s 5-year mean of 10.23.

The Zacks Consensus Estimate for 2026 earnings has declined from $2.99 per share to $2.98, while that for 2027 has been stable at $2.83 per share over the past 30 days.

Pfizer has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research