Updated Aug 13 at 11:20am ET.
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CEO Albert Bourla purchased about $1 million worth of shares this week. This was an open-market purchase, meaning he used his own cash to buy the stock at current prices rather than just receiving shares as part of his pay package.
While $1 million is a small amount compared to the company's total size, it is a notable signal of confidence from the person running the business. It follows similar purchases by two other directors last week, suggesting that the leadership team believes the stock is undervalued after its recent pivot toward new cancer treatments.
Two members of the board of directors made large open-market purchases of stock this week. Ronald Blaylock and Mortimer Buckley each bought about $1 million worth of shares.
When insiders buy with their own cash rather than just receiving stock as part of their pay, it often signals they believe the current price is lower than what the business is actually worth. These purchases come immediately after the company reported quarterly results and raised its full-year sales outlook.
The company reported quarterly profit of $0.77 per share, which was higher than the $0.68 analysts expected. Total revenue reached about $15 billion, driven by 18% growth in products the company has recently launched or acquired. This growth is helping the business move past the sharp decline in sales of its COVID-19 vaccines and treatments.
Management raised its sales target for the full year by $500 million, now expecting between $60.5 billion and $62.5 billion. This shift is important because it shows the company's plan to replace older revenue with new cancer drugs and specialty medicines is working. While the business still faces patent expirations later this decade, the strong performance of newer products like those from the Seagen acquisition provides a clearer path to future growth.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company announced that its oral drug, LITFULO, met its goals in two late-stage clinical trials for patients with vitiligo, a condition where the skin loses its pigment. The studies showed that the drug helped restore skin color for patients with both active and stable forms of the disease.
These results allow the company to move forward with applications for official approval. Success in specialty dermatology is a key part of the plan to grow revenue as older blockbuster drugs lose their patent protection. If approved for this new use, it would expand the market for a drug that is already used to treat certain types of hair loss.
Source: Business Wire
The European Commission has authorized an updated version of the COVID-19 vaccine developed by Pfizer and BioNTech. This new formula is designed to target the XFG variant and will be used for the 2026-2027 vaccination season. While COVID-19 products no longer drive the massive growth they once did, these annual updates help maintain a steady, though smaller, stream of revenue from the existing vaccine infrastructure.
Source: GlobeNewsWire
Analysts have recently adjusted their outlooks following the company's second-quarter earnings report. Most experts are cautious, with 23 of 39 analysts holding a neutral or negative view and an average price target that suggests the stock is fairly valued.
Pfizer has a perfect track record of beating analyst profit targets over the last two years. Management consistently sets a bar they can clear, often by a wide margin.
| Expectation | |
|---|---|
| EPS | $0.79 |
| Revenue | $15.93B |
