Pfizer faces risks from patent expirations, increasing generic competition, government pricing pressures (e.g., IRA, Medicare negotiations), potential legal costs (patent litigation, product liability), supply chain disruptions (including recalls and natural disasters), and macroeconomic/geopolitical instability (e.g., conflicts in Israel/Palestine, Russia/Ukraine). The company's acquisition of Seagen, while potentially beneficial, also carries integration and cost-synergy realization risks. Uncertainties surrounding the effectiveness of cost-reduction programs also pose a risk.
Financial Upside
Pfizer anticipates revenue growth from Paxlovid, Seagen products, and the Vyndaqel family. The company's cost-reduction programs (Realigning Our Cost Base Program and Manufacturing Optimization Program) aim for margin expansion. Potential gains from equity securities and the partial sale of Haleon investment represent additional upside. The company also expects to benefit from the transition of COVID-19 products to commercial markets.
