Pfizer Inc. (NYSE:PFE) surged nearly 14% after announcing a landmark drug pricing agreement with the Trump administration. The deal eases two major investor concerns—tariffs and price regulation—while reaffirming Pfizer’s commitment to U.S. innovation. For those evaluating Pfizer stock analysis, the key question is whether PFE is now a buy.
Under the deal, Pfizer will reduce drug costs to align with prices in other developed countries, offering discounts of up to 85% on some treatments through TrumpRx.gov. In exchange, Pfizer gains a three-year exemption from pharmaceutical import tariffs while committing $70 billion in U.S. investments.
The stock’s jump reflects optimism that this framework could expand to other drugmakers such as Merck (NYSE:MRK), AstraZeneca (NASDAQ:AZN), AbbVie (NYSE:ABBV), and Eli Lilly (NYSE:LLY), further stabilizing the pharmaceutical sector.
PFE’s Strength in Oncology
One of the strongest arguments in favor of PFE in any Pfizer stock analysis is its growing oncology business. Pfizer’s acquisition of Seagen bolstered its cancer pipeline, adding promising therapies to its arsenal. Oncology revenues rose 9% in the first half of 2025, powered by Xtandi, Lorbrena, Padcev, and other key drugs.
The company also markets six biosimilars in oncology and continues to expand its late-stage pipeline, with candidates such as sasanlimab and sigvotatug vedotin in development. Pfizer expects to have at least eight blockbuster oncology drugs by 2030. This growth trajectory positions PFE as a top contender in one of the most lucrative pharmaceutical markets.
New Drugs and Seagen Acquisition Driving Growth
Beyond oncology, Pfizer is benefiting from newly launched and acquired products. In the first half of 2025, new and recently acquired products generated $4.7 billion in revenue, a 15% operational increase year over year.
The Seagen acquisition alone is expected to contribute over $10 billion in risk-adjusted revenue by 2030, with further upside potential beyond that. Meanwhile, products like Vyndaqel, Eliquis, and Nurtec continue to underpin revenue growth. Analysts estimate Pfizer’s revenue CAGR between 2025 and 2030 will be around 6%, reinforcing a stable long-term outlook.
COVID Products: Stabilization and Uncertainty
A critical factor in Pfizer stock analysis is the company’s shrinking COVID revenue. Sales of Comirnaty and Paxlovid collapsed from $56.7 billion in 2022 to just $11 billion in 2024. While sales have stabilized in 2025, they remain unpredictable, tied closely to infection rates.
This volatility makes Pfizer more dependent on its non-COVID pipeline, which explains the emphasis on oncology, new launches, and acquisitions. Investors should prepare for further COVID-related declines in the years ahead.
Headwinds: LOE and Policy Risks
Pfizer faces significant challenges from loss of exclusivity (LOE) beginning in 2025, with a larger wave hitting between 2026 and 2030. Drugs like Eliquis, Xtandi, and Ibrance will lose patent protection, pressuring revenue.
The company also expects a $1 billion hit from the Medicare Part D redesign under the Inflation Reduction Act. These headwinds underscore the importance of Pfizer’s restructuring efforts, which aim to cut $7.7 billion in costs by 2027.
PFE Valuation and Outlook
From a valuation perspective, Pfizer looks appealing. Shares trade at just 8.7x forward earnings—well below the industry average of 15.9 and its five-year mean of 10.6. Compared with other large drugmakers like AbbVie, AstraZeneca, and Eli Lilly, Pfizer stock is relatively cheap.
The dividend yield of roughly 7% is another attraction for income investors. Coupled with rising earnings estimates, this makes Pfizer a compelling hold with long-term upside.
Final Word: Is PFE Stock a Buy?
Pfizer’s 14% surge reflects renewed investor confidence following its deal with the Trump administration. While risks remain—particularly from COVID product uncertainty, patent expirations, and Medicare pricing reforms—the company’s oncology strength, new products, cheap valuation, and high dividend yield provide a strong foundation.
For long-term investors, Pfizer stock analysis suggests that PFE deserves a place in a diversified portfolio. It may not deliver explosive near-term growth, but its stability, pipeline strength, and income potential make it a solid long-term hold.
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