Pfizer Nears Pre-Pandemic Levels: Is the Stock Ready to Bottom Out?

investing.com:

After experiencing a surge during the pandemic, Pfizer (NYSE:PFE) entered a long-term downtrend in December 2021. The stock showed signs of a potential recovery in the October-December period last year. However, it struggled to fend off the persistent selling pressure, ultimately resulting in the price returning close to pre-pandemic levels.

The company reaped substantial cash flow from the COVID-19 vaccine and Paxlovid sales. However, instead of resting on its laurels, the New York-based company chose to invest in its non-COVID-19 product portfolio and pursued growth through various mergers and acquisitions.

While the pharmaceutical giant faced some challenges in this process, it's clear that it still maintains significant potential, even though the expected returns from these investments haven't materialized yet.

A hiccup in Pfizer's journey occurred when it had to halt production of a drug used in the treatment of type 2 diabetes and obesity due to elevated liver enzyme levels. Nevertheless, the company has another drug in the pipeline for these conditions, which is considered a promising alternative.

So far, trials of this alternative drug, named Danuglipron, have not encountered any issues. The results of these studies are expected to be available towards the end of the year, and it will be interesting to see how much of the market it can capture.

Pfizer's stock took another hit in August when the company reported negative second-quarter earnings. The report revealed a 54% decline in total revenue for the last quarter, primarily due to reduced sales of non-COVID-19 products. This followed a 28% revenue decline in the previous quarter, further exacerbating concerns about pricing and performance.

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